How Schneider Electric Boosts Supply Chain Decarbonisation
Schneider Electric, a global leader in digital energy management, has made strides with its Energize programme – a collaborative initiative designed to decarbonise healthcare supply chains.
The programme recently marked a key milestone with eight healthcare companies joining forces to procure renewable energy for their operations through seven new solar projects in Spain.
Partnering with two developers, the Energize programme is set to significantly reduce supply chain emissions and promote sustainable practices in the healthcare sector.
The healthcare sector is responsible for nearly 5% of all global carbon emissions, much of which arises from indirect supply chain emissions, often classified under Scope 3 emissions.
These emissions are notoriously challenging to mitigate due to the extensive production, distribution and service processes involved.
Energize helps healthcare companies address this impact by offering resources and strategies to adopt renewable energy, track progress and meet ambitious sustainability goals.
Thomas Wozniewski, Global Manufacturing and Supply Officer at Takeda Pharmaceuticals, one of the programme’s participants, stresses the importance of such initiatives: “Planetary health is critical for patient health and it is our responsibility to do everything we can to reduce the environmental impact of our business and our value chain.”
The Energize programme’s success highlights how the healthcare sector can lead in supply chain sustainability by adopting innovative, collaborative approaches to energy procurement.
The programme’s coordinated renewable energy investments in Spain mark a significant step toward decarbonisation across the healthcare industry, supporting wider environmental goals and encouraging a sustainable future.
Takeda has set a target to reach net-zero emissions across its supply chain by 2040, viewing participation in Energize as a crucial part of its strategy.
For these companies, Energize represents more than a collaboration; it’s an essential tool in the transition to renewable energy, particularly in addressing the healthcare sector’s considerable carbon footprint.
Collaboration driving lasting impact
Through Energize, Takeda Pharmaceuticals, Teva Pharmaceuticals, UCB, Avantor, Organon, Perrigo and West Pharmaceutical Services have collectively committed to purchasing a substantial amount of renewable energy – 563.7 GWh per year through Power Purchase Agreements (PPAs) over the next decade.
This energy supply stems from agreements with solar energy providers Zelestra and Bruc, companies developing three and four solar projects, respectively, in Spain.
PPAs are agreements where companies agree to purchase electricity from renewable projects at fixed prices, a strategy that helps drive down emissions while securing energy supply for a set period.
This aggregated approach, also known as a multi-buyer PPA, allows multiple organisations to pool resources, increasing purchasing power and making large-scale renewable energy projects more accessible and cost-effective.
By aligning in this way, companies within Energize demonstrate a commitment to setting benchmarks for industry sustainability. The total energy procured through these agreements equates to roughly 393,795 metric tons of CO2 emissions avoided each year, comparable to the annual energy use of 51,355 households.
“As a collaborator of this virtual Power Purchase Agreement, we are demonstrating leadership and commitment to renewable energy,” says Amalia Adler Waxman, Head of Sustainability at Teva Pharmaceuticals.
“By covering most of our electricity needs in Europe and nearly half globally, we are setting the standard for responsible energy use and driving toward our long-term goal of net-zero emissions.”
A path forward for sustainable supply chains
The Energize programme is proving to be a crucial pathway for healthcare companies aiming to achieve measurable decarbonisation goals.
GSK, a Co-Founder of Energize, plays a key role in these developments, supporting the healthcare industry’s shift toward renewable energy sources.
Lisa Martin, Chief Procurement Officer at GSK, highlights the significance of Energize’s accomplishments in the industry’s sustainability journey: "We are thrilled the first Energize deal has been announced, marking an important milestone in the collaboration’s history.
"We co-founded Energize in 2021 and the programme is an important part of our plan to reduce value chain emissions by 80% from 2020 to 2030.”
Such partnerships represent a growing trend in supply chain sustainability as companies take collective action to reduce emissions and meet environmental targets.
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