Schneider Electric recently announced that both Amgen and Bristol Myers Squibb have joined Energize – a program designed to increase access to renewable energy for pharmaceutical suppliers. Convened by Carnstone, an independent management consultancy specializing in corporate responsibility and sustainability, the Energize program is designed and delivered by Schneider Electric, the global leader in the digital transformation of energy management and automation.
Launched at the United Nations Conference of Parties (COP26) in November 2021, the Energize program is a collaboration among now 12 global pharmaceutical and biotechnology companies to engage hundreds of suppliers in bold climate action and decarbonization of the pharmaceutical value chain. The program will help pharmaceutical suppliers to address their own operational Scope 2 greenhouse gas emissions through renewable energy procurement, which in turn will reduce the participating companies’ Scope 3 emissions. The original Energize announcement can be found here.
“Amgen is well on the path to deliver net-zero for Scope 1 and Scope 2 carbon footprints as part of its 2027 ambition. Our suppliers’ carbon footprints comprise most of Amgen’s Scope 3 carbon footprint. Collaboration with suppliers to reduce our Scope 3 carbon footprint is integral to collectively mitigate climate change impacts. Renewable energy procurement can be a game changer as companies decarbonize.” said Sam Guhan, Vice President of Operations Engineering.
“To make progress toward our goals to mitigate climate change it is imperative that we at Bristol Myers Squibb take action to decarbonize our value chain. That’s why the collaboration enabled by the Energize program is so important,” said Danielle Menture, Vice President, Environment, Occupational Health, Safety and Sustainability. “By empowering our suppliers to make better use of renewable energy, we are not only helping them reduce their GHG emissions in the short term but also making strides toward our longer-term goals across Scopes 1, 2 and 3 by 2050.”
The Energize program enables suppliers in the pharmaceutical and biotechnology industry to learn more about renewable energy procurement. In practice, this means 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) and purchase energy attribute certificates (EACs).
“Renewable energy procurement can be challenging for companies of all sizes for a variety of reasons,” said Steve Wilhite, President, Schneider Electric Sustainability Business. “The Energize program was created to overcome typical market barriers for renewable energy transactions and the need for guidance throughout a complex contracting process. In its first nine months, the program has educated hundreds of pharmaceutical suppliers and is well on its way to forming the first collaborative buyers’ cohort in this sector for a PPA in both the European and North American market.”
Schneider’s team of leading renewable energy experts engages with participating pharmaceutical suppliers and facilitates education and project selection processes to advance supplier progress towards the execution of individual and aggregated renewable energy purchases. Schneider Electric is the leading global consultant on corporate renewable purchasing, having advised companies on over 150 utility-scale PPA purchases across North America, Europe, India, Australia and Latin America for a total of more than 14,000 megawatts of wind and solar power. The Energize program is powered by Schneider’s NEO Network™, a global collaboration platform and community designed to accelerate renewable energy decision-making and decarbonization.