Teva Pharmaceutical Industries Ltd. has announced long-term environmental sustainability commitments and targets to provide direction and drive action in this area. Our new goals are part of Teva’s commitment to Environmental, Social and Governance (ESG) measurement, a key focus area for the business. ESG details how we achieve our business goals, underscores non-financial performance, and is considered critical to our long-term sustainability and success.
These environmental sustainability commitments are aligned to three areas of focus that were identified during the company’s recently completed ESG materiality analysis, which informed the development of our renewed strategy:
- Climate Action and Resilience
- Responsible Use of Natural Resources
- Emissions, Effluents and Waste
Specifically, the company has committed by 2030 to:
- Reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 33% versus 2017 levels to support efforts to limit the global temperature increase to well below 2°C, aligning with the 2015 Paris Climate Agreement.
- Improve transparency of Scope 3 GHG emissions and increase engagement on climate issues with key suppliers throughout the value chain.
- Increase energy efficiency by 10% and the total proportion of energy purchased or generated from renewable sources to 50%.
- Reduce total water withdrawal by 10% in areas projected to be in water stress.
- Assess and mitigate the environmental impact of pharmaceutical ingredients used in operations.
- Reduce the overall mass of secondary and tertiary packaging materials per unit dose and increase the proportion of recycled and responsibly-sourced materials by 10%.
- Assess the environmental lifecycle impact of key products.
- Continue to minimize waste generated from operations and the environmental impact of its disposal.
- Meet existing AMR Industry Alliance commitments to minimize antimicrobial discharges from the supply chain.
Eric Drape, Executive Vice President, Global Operations at Teva, said the targets are challenging but achievable, particularly given the size and complexity of Teva’s global operations.
“With over 60 manufacturing sites across many countries, we realize the meaningful impact we can have on the planet,” Mr. Drape said. “But we are – and want to remain – a leader in our industry in terms of environmental performance. We continue to monitor our progress and periodically re-evaluate our targets in order to continue to challenge ourselves.”
Industry approved standards
The company’s science-based target to reduce GHG emissions has been established to provide a level of decarbonization required to keep the global temperature increase to well below 2°C. This is compared to pre-industrial temperatures, as described in the Fifth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC).
Teva is also enhancing its disclosures by aligning reporting with robust international standards, including Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) and Task Force on Climate-Related Financial Disclosures (TCFD).
Leading the way
Teva’s current environmental performance has been recognised by a number of external benchmarks:
- Sustainalytics ranked Teva in the top 10% of pharmaceutical companies and named the organization as an “outperformer for environmental performance”.
- Our Dow Jones Sustainability Index performance improved from the 55th to 70th percentile in our industry over the last year.
- Our CDP climate change score improved from a B to an A- in the last year, ranking Teva in the top 38% of companies.
- We received a silver medal from EcoVadis, representing the top 23% of pharmaceutical companies in 2020.
New goals for a new era
The new measures replace targets that were set in 2014 and retired in 2019 after they were either achieved or were no longer applicable, as a result of the integration of Actavis Generics operations into the wider business.
The 2030 timeline will help us align with the United Nations Sustainable Development Goals (SDGs). The 17 goals set by the UN in 2015 aim to end poverty, protect the planet and ensure all people enjoy peace, prosperity and health, as part of the 2030 Agenda for Sustainable Development.
Our new goals are part of Teva’s commitment to ESG and builds off our ongoing commitment to helping achieve the SDGs. Our business is inherently tied to ESG and reinforces our mission to be a global leader in generics and biopharmaceuticals, improving the lives of patients.
We are in the process of developing long-term commitments under the ‘Social’ and ‘Governance’ pillars that focus on expanding access to medicines to patients with unmet needs, ensuring that inclusion and diversity are embedded into our company’s culture and operations, and that ethics and compliance remain the touchstone for how we make business decisions and how we lead.