We continually strive to reduce our impact on natural systems and the environment, with a focus on energy, greenhouse gases, water and waste. To achieve our goals, we have set specific environmental targets.
2030 Targets and 2024 Progress
The targets also reflect our diverse and evolving product portfolio, which includes the manufacturing of pharmaceutical ingredients, capsules, food supplements, gene therapy and cell media, and the licensing of technologies and systems.
With a long-term view to 2030, we want to reduce consumption considerably to align with the broadly accepted greenhouse gas reduction targets, with an ambition of reaching net-zero greenhouse gas (GHG) emissions by 2050. In February 2024, the Science-Based Targets initiative (SBTi) validated our near-term GHG emission reduction targets that were submitted in July 2023. We have committed to reducing absolute Scope 1 and 2 GHG emissions by 42% by 2030, from a 2021 base year. We also set a supplier engagement target for Scope 3 emissions, committing that 79% of our suppliers by emissions (covering purchased goods and services, capital goods and upstream transportation and distribution) will have science-based targets by 2028.
Our Focus Areas
Energy
Our operations require energy, typically in the form of natural gas and electricity, which is consumed at our sites for manufacturing or infrastructure processes. This is the largest contributor to our climate-relevant emissions. We therefore focus our efforts on reducing GHG emissions by improving energy efficiency at our sites. It is our priority to source electricity from renewable sources to decouple electricity consumption and GHG emissions.
Our footprint-reduction goals encompass existing facilities, as well as investments in new assets, buildings and facilities. Our sites include energy efficiency and waste reduction measures in their roadmaps, and in some cases apply low-carbon energy alternatives, such as biomass. For new assets and buildings, our Sustainable Design Standard requires energy and water efficiency and the use of sustainable technologies.
Progress
Our energy consumption intensity (GJ/revenue) has steadily been decreasing. This decrease is driven by strong growth and is tempered by a minor increase in energy consumption as new assets came online, supported by many energy reduction projects. We also benefit from an increasing proportion of modern, energy-efficient buildings, assets and production technologies.
Energy Consumption Intensity
GJ/mio CHF
Climate Change
GHG emissions are categorized into three groups: Scope 1 and Scope 2 cover emissions from our operations and energy use, while Scope 3 includes all other indirect emissions that occur in our value chain.
Our ambition is to achieve net zero by 2050 or earlier. To enable focused progress and achievement, we submitted a letter of commitment to the Science-Based Targets initiative (SBTi) and near-term targets to reduce absolute Scope 1 and 2 GHG emissions by 42% by the end of 2030 (2021 base year) and to set a supplier engagement target for Scope 3. Our targets were approved in early 2024. Once the near-term process has been established, we will focus on long-term targets and define the next level to achieve net zero.
Furthermore, we have initiated a program to replace our traditional power mix with renewable power, which forms a major pillar of our GHG reduction strategy and support our ambition to purchase all electricity from renewable sources where available by 2025. We aim to do this by establishing virtual power purchase agreements (VPPAs), installing onsite capacity, and purchasing renewable energy certificates from projects, where available.
Climate Transition Plan
Progress
In 2023, we signed a ten-year VPPA with a renewable energy company to generate more than 300 GWh of solar power annually. We also have secured an industry-first renewable power purchase agreement in China together with four other global pharma companies. In 2024, we signed three Renewable Energy Certificate (REC) purchase agreements in the United States (US). Collectively, these agreements will decarbonize our Scope 2 electricity emissions across Switzerland, the European Union, China and our current US facilities.
Greenhouse Gas Emissions Intensity
Scope 1 and Scope 2 location-based tons CO2-eq/mio CHF
In 2024, 52% of the electricity we consumed was procured and sourced from renewable sources
Water is used for a variety of purposes across our business, including heat transfer and cooling, steam generation, washing and cleaning, sanitization, and as a product ingredient. As a precious natural resource it should be actively managed – especially in water-scarce locations. We are taking multiple measures to minimize downstream effects and water withdrawal impacts on our communities and the local environment. Internal standards on water and wastewater include a water balance at a site level to optimize usage and limit losses. We require sites to reduce water usage through asset optimization and process changes, and to promote water recycling and reuse, and to treat effluents according to permits and internal limit values.
Our water usage is divided into two main categories: industrial process water and non-contact cooling water. Industrial water - or water consumed - may be altered chemically and physically by the manufacturing processes. All cooling water cycles are closed-loop systems, whereby the exchanged heat is dissipated by air and evaporation (cooling tower) or by river water as in Visp (CH).
Each site is responsible for keeping the water balance updated, which serves as the basis to define areas of focus for projects to reduce water consumption and/or increase water recycling. The effectiveness of these measures has delivered a continuous improvement of our industrial water intensity, as shown in the chart below. Each site is also working to improve its understanding of water consumption by asset or building, where additional metering may be required.
Target
Globally, in line with our commitment to SDG 6 (Clean Water and Sanitation), we plan to build on the completed risk and opportunity assessment with a mid-term action plan to reach our target of reducing industrial water intensity by 2030 by approximately 50%.
Progress
Industrial Water Intensity
m3/m CHF
Each manufacturing site maintains a waste disposal operation tailored to relevant waste streams for the efficient and environmentally sound treatment and disposal of waste outputs. All sites are committed to our waste reduction principles and to treating and disposing of all waste materials (including wastewater) in full compliance with local regulations and international standards.
We carefully select our partners for waste transportation and treatment based on performance and capabilities in Environment, Health and Safety (EHS). We operate our own waste and wastewater treatment facilities at specific locations, such as Visp (CH) and Nansha (CN). Additionally, the energy from on-site incineration of residues and waste gases at these two sites is used for heat energy generation in order to conserve resources.
We are committed to increasing the efficiency of input materials in production processes, including yield improvement, reworking out-of-specification production, and the re-use of ancillaries wherever possible. We strive to reduce effluent by controlling and reducing water inputs and effluent pre-treatments. Final effluents are managed and controlled according to the parameters permitted by local authorities.
Progress
In 2023, we had sustained progress towards our 2030 target of a 50% reduction in waste generation per CHF million of sales. The effectiveness of our waste management measures lead to a continuous reduction in total waste intensity.
Waste Intensity
tons/mio CHF
Air Emissions
Lonza applies state-of-the-art technology for air emission control. The focus is on greenhouse gas emissions, and volatile organic compounds (VOC), as precursors to low atmospheric ozone. Other parameters monitored are nitrogen oxides, sulfur dioxide and particulate matter. Continuous investment, technical improvements at emission points and emission control equipment contribute to the control and reduction of such emissions.
Water Emissions
Parameters monitored for water pollution are total organic carbon (TOC) or chemical oxygen demand (COD), heavy metals, nitrogen and phosphorus. Depending on the site-specific processes and production, local requirements may also include other relevant parameters. Heavy metals are also monitored, when applicable, e.g. cadmium, copper, nickel. The main source of heavy metals is the usage of metal-containing catalysts.