Schneider Electric launches programme to increase access to renewable energy for pharmaceutical suppliers

Schneider Electric has launched Energize – a programme to increase access to renewable energy for pharmaceutical suppliers. The Energize programme is a collaboration among 10 global pharmaceutical companies to engage hundreds of suppliers in bold climate action and decarbonisation of the pharmaceutical value chain. The programme is a first-of-its-kind effort to leverage the scale of a single industry’s global supply chain in a pre-competitive fashion to drive system-level change, the company said in a statement.

The pharma companies involved in the programme are AstraZeneca, Biogen, GSK, Johnson & Johnson, MSD, Novartis, NovoNordisk, Pfizer, Sanofi and Takeda, added the statement.

It also said that the programme will help pharmaceutical and healthcare suppliers to address their own operational Scope 2 greenhouse gas emissions through green power procurement, which, in turn, will reduce the participating companies’ Scope 3 emissions. The programme will be designed and delivered by Schneider Electric; the pharmaceutical companies will promote the programme collectively, and individually invite their suppliers to participate.

The Energize programme will enable pharmaceutical suppliers to learn more about renewable energy adoption and contracting. In practice, this will mean giving suppliers – who may not otherwise have the internal resources or expertise available – the opportunity to participate in the market for power purchase agreements (PPAs), mentioned the statement.

“Today marks ‘Energy Day’ of the 2021 United Nations Conference of Parties (COP26) on climate change, where representatives from around the globe come together to accelerate action towards the mitigation of climate change,” said Susan Uthayakumar, President, Sustainable Business, Schneider Electric.

“In support of that mission, we’re honoured to launch the Energize programme and collaborate with the pharmaceutical industry to drive emissions reductions, ultimately benefitting both people and our planet.”

Adding to it, Sam Kimmins, Head, RE100, Climate Group, said, “We believe Energize will be a really effective collaboration of pharmaceutical companies looking to take bold climate action. Every business should be moving aggressively towards using 100 per cent renewable electricity, and supporting their supply chains to do the same.”

Renewable energy procurement can be challenging for companies of all sizes for a variety of reasons. The Energize programme is designed to overcome typical market barriers such as inadequate knowledge about renewable energy transactions, load size, lack of credit, and the need for guidance throughout a complex and protracted contracting process. Participating suppliers will learn about the renewable energy market and receive guidance on PPAs, and have the opportunity to access and contract for renewable energy on their own or as part of a collaborative buyers’ cohort, according to the statement.