Inside Novo Nordisk's 'Suppliers for Zero' Climate Campaign

The Danish pharmaceutical manufacturer Novo Nordisk has launched a structured environmental sustainability programme targeting its suppliers, manufacturers and contractors in an effort to meet its ambitious climate and nature targets by 2045.

The initiative, named 'Suppliers for Zero', centres on the fact that more than 95% of the company's environmental impact come from Scope 3 emissions. These are those emissions that occur outside a firm's direct operations.

"With more than 95% of our environmental impact coming from our supply chain, working closely with our suppliers and CMOs is essential," said Dorethe Nielsen, VP at Novo Nordisk.

Where is the Suppliers for Zero initiative focusing?

The programme centres on three primary environmental domains: climate action including greenhouse gas emissions and energy use, nature protection encompassing land use and water management, and plastic reduction focusing on material circularity and packaging.

Rather than imposing uniform requirements across its supplier base, Novo Nordisk has designed the programme to enable collaboration with partners prepared to align with the company's environmental priorities.

All suppliers and CMOs are expected to comply with the company's Responsible Sourcing Standard and source renewable electricity for goods and services delivered to Novo Nordisk.

Additional initiatives will be defined through individual supplier engagements.

Sustainable progress in the value chain

The company has already demonstrated progress in specific areas of its supply chain.

Since 2021, lower-carbon fuels in the Maersk shipping network have reduced CO₂ emissions by up to 84% on a well-to-wake basis compared to conventional fossil fuels for Novo Nordisk's distribution.

The pharmaceutical manufacturer is exploring fossil-free alternatives including e-methanol produced through Power-to-X technology in partnership with the LEGO Group and European Energy.

This development could potentially replace conventional plastic in insulin pens and other medical devices.

In agriculture, Novo Nordisk has begun sourcing glucose from regenerative farming practices to mitigate land degradation.

The company has signed initial contracts with suppliers currently covering more than 10% of its glucose supply and aims to source all glucose from regenerative agriculture by 2033.

This shift has potential to reduce greenhouse gas emissions and water pollution whilst improving soil health and biodiversity.

Behind Novo Nordisk's collaborative spirit

Novo Nordisk has positioned the programme within broader industry partnerships promoting standardisation and supplier training.

"Years of collaboration with like-minded partners have gotten us far, but we want to take the collaboration across our entire value chain even further," says Dorethe.

"Let's face it: we get nowhere alone," she adds.

The company actively participates in three key supplier initiatives: Energize, which focuses on renewable energy for pharmaceutical suppliers, the Pharmaceutical Supply Chain Initiative, and the Sustainable Markets Initiative.

How long will it take for Novo Nordisk to roll out the Suppliers for Zero programme?

The company acknowledges varying levels of supplier readiness and maturity in environmental practices.

In its official communications, the firm says: "We acknowledge that fulfilling our expectations will be a journey – some suppliers and CMOs have made significant progress, while others are just beginning."

However, Novo Nordisk expects all suppliers and CMOs to demonstrate advancement on outlined priorities to meet the company's 2033 interim targets.

The environmental priorities outlined in Suppliers for Zero are expected to evolve as solutions mature and new high-impact opportunities are identified.

"Building on our Circular for Zero strategy, Suppliers for Zero aims to support the dialogue on our key environmental challenges with suppliers and CMOs and is a necessary tool in executing on our environmental roadmaps," Dorethe explains.

The company has made the programme details available through an Environmental Guide for Suppliers and CMOs, with implementation to be coordinated through local procurement and category managers.

Suppliers and CMOs already implementing relevant initiatives are encouraged to communicate progress through ongoing dialogues with Novo Nordisk procurement contacts.