Climate Change Data

Hovione

Climate Impact & Sustainability Data (2017-04 to 2019-03, 2019-2020)

Reporting Period: 2017-04 to 2019-03

Environmental Metrics

Total Carbon Emissions:74,640 tCO2e/year (2018)
Scope 1 Emissions:17,606 tCO2e/year (2018)
Scope 2 Emissions:8,764 tCO2e/year (2018, market-based)
Scope 3 Emissions:48,267 tCO2e/year (2018)
Renewable Energy Share:72% (2018)
Total Energy Consumption:404,088 GJ/year (2018)
Water Consumption:426 million liters/year (2018)
Waste Generated:19,326 tons/year (2018)

ESG Focus Areas

  • Product Safety and Quality
  • Research, Development and Innovation
  • Energy and Climate Change
  • Water and Wastewater
  • Waste Management
  • Supply Chain Management
  • Employee Engagement, Talent Retention and Compensation
  • Occupational Health and Safety
  • Community Engagement

Environmental Achievements

  • 8% CO2 emission reduction in 2018 compared to 2016 baseline.
  • 72% of electricity consumed from renewable energy sources in 2018.
  • 85% waste recycled, reused, and recovered in 2018.
  • 14 tons of CO2 equivalent avoided in 2018 by switching to electric forklifts.

Social Achievements

  • Launched a new performance and evaluation system, training 1700 employees.
  • Improved employee engagement survey response rate to 80% in 2018.
  • Sponsored 32 PhD and 54 MSc students under the Hovione Research Program.
  • Donated 1,626k USD to the community.

Governance Achievements

  • Certified as a B Corp in 2017.
  • Two-tier management structure with a Board of Directors and Executive Committee.
  • Established a Speak Up ethics line.

Climate Goals & Targets

Long-term Goals:
  • Become the #1 innovative, integrated pharmaceutical solution provider by 2028.
Medium-term Goals:
  • Reduce total GHG emissions by 15% during 2017-2021 compared to 2016 baseline.
Short-term Goals:
  • Reduce water consumption by 25% at Macau site (ongoing).

Environmental Challenges

  • Increasing energy consumption (8% in 2017, 23% in 2018 compared to 2016).
  • Increase in hazardous waste (6% in 2018 compared to 2016).
  • Increase in Scope 3 emissions (11% in 2018, mainly due to increased capital expenditures and purchased goods).
Mitigation Strategies
  • Increased use of renewable energy sources.
  • Implemented energy efficiency measures.
  • Improved waste recycling and reuse processes.
  • Updated Deviation Management System based on risk management principles.

Supply Chain Management

Supplier Audits: High-impact suppliers undergo extensive audits covering quality, environmental, and social programs.

Responsible Procurement
  • Global Procurement and Supplier Qualification Policies.
  • 57% of acquisitions made with local suppliers in 2018.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: B Corp, ISO 45001 (Loures site)

UN Sustainable Development Goals

  • SDG 3
  • SDG 6
  • SDG 7
  • SDG 12

Hovione's sustainability policy and strategy are aligned with these goals.

Awards & Recognition

  • B Corp certification

Reporting Period: 2019-2020

Environmental Metrics

Total Carbon Emissions:65,244 tCO2e/year (2020)
Scope 1 Emissions:20,164 tCO2e/year (2020)
Scope 2 Emissions:7,363 tCO2e/year (2020)
Scope 3 Emissions:37,717 tCO2e/year (2020)
Renewable Energy Share:53% (2020)
Total Energy Consumption:431,936 GJ/year (2020)
Water Consumption:533,978 m3/year (2020)
Waste Generated:18,314 tons/year (2020)
Carbon Intensity:139 tCO2e/ton of product (2020)

ESG Focus Areas

  • Governance and Business Ethics
  • Legal and Compliance
  • Community Engagement
  • Energy and Climate
  • Waste and Circular Economy
  • Water Management
  • Inclusion, Diversity, and Non-Discrimination
  • Safety
  • Wellbeing
  • Talent Management
  • Innovation and R&D
  • Supply Chain Management
  • Product Safety, Quality and Supply

Environmental Achievements

  • GHG emissions (Scope 1,2 & 3) declined by about 7% per annum within the last three years.
  • In 2020 the GHG emissions were reduced in 21% compared to the baseline year 2016.
  • From FY18 to FY20 we have reduced the generation of waste by 10,6% across all our installations.
  • Hovione recycles and recovers every year over 80% of all waste produced, of which more than 37% are recycled internally and externally.
  • In FY20 our waste footprint per finished product decreased 65%.
  • Increase of renewable energies weight in the total energy consumption value, from 39% in 2018 to 43% in 2020.
  • Reduction of 1,328 MWh across the financial years FY19 and FY20 in Cork site, the equivalent reduction of 3,676 tons of carbon dioxide released into the environment for that period.

Social Achievements

  • Employee engagement and enablement survey showed 53% of employees engaged and enabled.
  • More than 40 non-profit organizations were supported by Hovione.
  • Implemented a Health and Well-being Policy to promote healthy behaviors, reduce stress and provide the conditions for Team Members to take care of their own health.
  • Partnership with AsIAm, Ireland’s National Autism Charity to increase awareness of autism and make sites autism friendly.
  • Partnership with APSA (Associação Portuguesa de Síndrome de Asperger) to manage the integration of people with Asperger syndrome.

Governance Achievements

  • Established Speak-Up Policy to address potential wrongdoing or unethical behaviours.
  • Hovione Code of Ethics establishes fundamental rules of conduct.
  • Operationally, Sustainability is led by the Global Health, Safety & Sustainability team, reporting directly to the CEO.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Climate Change
  • Increased disparities and augmented social fragmentation due to Covid-19 pandemic.
  • High water physical quantity risk for Loures and New Jersey facilities due to climate change.
  • Solvent intensive API manufacturing processes.
Mitigation Strategies
  • Codify Environment, Social and Governance within our business systems, so that performance with respect to people and planet is measured.
  • Ensure that improved performance is targeted, supported and rewarded.
  • Minimize our reliance on fossil fuels.
  • Develop and implement strategies that promote less consumption and make the best use of what we consume.
  • Develop “Greener” production processes, working with our customers and utilizing Innovation and Development by Design approach to target processes and materials which have a lesser Environmental Impact.
  • Optimizing the cleaning strategy and the purification steps to reduce water requirements of Captisol® manufacturing process.
  • Recycling and reuse of solvents such as dichloromethane and methanol.

Supply Chain Management

Supplier Audits: High Risk suppliers are audited. The audit covers social criteria.

Responsible Procurement
  • Sustainable Procurement Principles policy stating responsible business practices (Labor, Ethics, Environment, Health and Safety).

Climate-Related Risks & Opportunities

Physical Risks
  • Droughts
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001:2015, ISO 45001:2018, ISO 50001:2018, B Corp, LEED

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • CPhI Pharma Awards (highly commended for PRIME tool)
  • Irish Business in the Community Sustainability Mark
  • BLab “Best for the World” Honoree
  • NJDEP Environmental Stewardship Award
  • Product Design Award for Inhaler for High-Dose Delivery
  • Leading Contract Manufacturing Organization Award
  • Ecovadis bronze and silver awards