Five Global Healthcare Leaders Secure Industry-first, Multi-party Agreement to Access Renewable Power in China 18th January 2024
To accelerate the transition to net zero health systems, five global healthcare companies, including four members of the Sustainable Markets Initiative Health Systems Task Force, have signed an industry-first, multi-party renewable power agreement in China. This is the first time that companies from across the global healthcare sector – AstraZeneca, Lonza, Novartis, Novo Nordisk and Roche – have come together to decarbonise their operations in China.
The three-year renewable energy supply agreement, announced at the World Economic Forum in Davos, Switzerland, supports China’s journey towards carbon neutrality and will unlock around 200 gigawatthours (GWh) of renewable electricity annually from 2024 onwards in Jiangsu, Guangdong, Shanghai and Beijing. This will result in annual emissions savings of approximately 120,000 tonnes of carbon dioxide equivalent (CO2e), comparable to taking 25,000 cars off the road.1
The completion of this agreement follows the announcement of advanced discussions ahead of COP28 and opens up additional opportunities for companies in the healthcare supply chain to join and decarbonise their operations. The electricity will be supplied by Envision Energy, one of China’s largest renewable energy companies.
The healthcare sector contributes approximately 5% of global emissions 2. Over half of the sector’s emissions are created in manufacturing supply chains, and energy consumed in these supply chains accounts for around 25% of total healthcare emissions. China is a key market for pharmaceuticals manufacturing, making collaboration with this market critical to reduce carbon emissions at scale.
The four participating members from the Sustainable Markets Initiative Health Systems Task Force are: AstraZeneca, Novartis, Novo Nordisk, and Roche.
Envision Energy is a member of the China Council Health Working Group which was launched by the Sustainable Markets Initiative‘s China Council in November 2023. This Working Group aims to accelerate the delivery of sustainable healthcare in China, with broader global impact and is comprised of 16 Chinese companies from the health, energy and digital sectors, alongside members of the Health Systems Task Force.
The Sustainable Markets Initiative’s Health Systems Task Force is committed to continued delivery across its initiatives in 2024, including the development of frameworks to measure the environmental impact of medicines and delivery of patient care.