AstraZeneca & GSK Unite to Cut Healthcare Emissions in China
According to the International Renewable Energy Agency (IRENA), 90% of the world's electricity can – and should – be renewable by 2050.
A key way to research, develop and manufacture renewable energy methods is through collaborations.
Collaborations across the health sector in China could result in annual emissions savings of 250,000 tonnes – equivalent to taking 50,000 cars off the road.
Climate tackling collaborations
AstraZeneca and GSK, members of the Sustainable Markets Initiative (SMI), have partnered with Takeda and suppliers to collectively procure renewable power in China. These suppliers include:
- Lianhe Aigen
- ICON
- Porton Pharma Solutions
- Aurisco
- Charioteer
- Asymchem
The collaboration involves 12 companies who are planning to unlock 225 GWh of renewable electricity annually, all in the name of medicine.
The renewable energy, a mixture of solar and wind, will provide research, development and the manufacturing of medicine.
“The transition to net zero health systems requires collaboration at scale across the entire value chain,” said Tony Pusic, SVP Regional Supply, Asia Pacific, AstraZeneca.
“AstraZeneca is delighted to see the platform we jointly established for the collective purchase of renewable power in China expand – now suppliers and industry partners can contribute to decarbonisation in this major market for medicines R&D and manufacturing.”
This joint decarbonisation initiative builds on the success of the industry-first, multi-party agreement to access renewable power in China – announced in January 2024.
The previous agreement was convened through the Sustainable Markets Initiative and established by AstraZeneca, Lonza, Novartis, Novo Nordisk and Roche.
The combination of the original programme from 2024 and this new agreement represents a doubling of impact by switching to renewable electricity sources.
This new project is expected to save approximately 250,000 tonnes of CO₂e annually.
Decarbonising China
The programme marks the first time that global healthcare companies, including local suppliers, have come together in China to support decarbonisation of healthcare manufacturing.
The expanded renewable energy supply in China will serve manufacturing sites in four additional provinces:
- Jiangxi
- Liaoning
- Tianjin
- Zhejiang
These four sites build on the four provinces covered in Beijing, Guangdong, Jiangsu and Shanghai in the 2024 agreement.
The development, supply and delivery of medicines and related products is energy intensive, with the healthcare sector responsible for approximately 5% of global GHG emissions.
More than half of these emissions originate in manufacturing supply chains including from Asian markets – especially in China and India given the high presence of pharmaceutical manufacturers.
“We are thrilled to be co-leading this collaboration with the Sustainable Markets Initiative which aims to enable our suppliers to access renewable energy,” said Lisa Martin, Chief Procurement Officer, GSK.
“This deal demonstrates the power of partnerships in driving meaningful change, supporting business resilience, ensuring energy security and improving cost predictability in the long term.”
Collaboration with domestic and regional suppliers is therefore critical to decarbonise the health sector.
All about the SMI
The SMI is a global private-sector-led organisation founded in 2020 by His Majesty King Charles III (then Prince of Wales) at the World Economic Forums annual meeting in Davos.
The aim of the SMI is to accelerate the transition to sustainable markets and a net zero economy.
As the ‘go-to’ organisation, it aims to align private-sector actions with climate, biodiversity and Sustainable Development Goals (SDGs) through collaborative efforts across industries, finance and governments.
The Terra Carta, launched by King Charles III in 2021 under the SMI, is a business-led sustainability charter.
It aims to integrate nature, people and the planet into the global economy by encouraging companies to adopt decarbonisation, circular economy and nature-positive strategies.
Businesses signing up commit to sustainable investments and climate action, supporting the goal of mobilising US$10tn by 2030.
The Terra Carta Seal recognises corporate leaders in sustainability. It serves as a guiding framework for businesses aligning with net zero and ESG goals.
The Sustainable Markets Initiative’s Health Systems Task Force is committed to accelerating the transition to net zero health systems and is focused on decarbonising supply chains, patient care pathways, clinical research as well as consumer health and wellbeing.
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