Climate Change Data

Recipharm AB

Climate Impact & Sustainability Data (2019, 2020, 2021, 2023)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:61,224 tCO2e/year
Scope 1 Emissions:22,293 tCO2e/year
Scope 2 Emissions:37,713 tCO2e/year
Scope 3 Emissions:1,218 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:1,972,639 m3/year
Waste Generated:9,852 tons/year
Carbon Intensity:0.008 tonnes CO² per 1,000 SEK turnover

ESG Focus Areas

  • Reduce greenhouse gas emissions
  • Supplier assessment and monitoring
  • Develop internal governance

Environmental Achievements

  • Reduced greenhouse gas emissions per employee by 22% compared to the previous year

Social Achievements

  • 93 suppliers audited in connection to quality audits (31% increase compared to last year)
  • Wasserburg sterile manufacturing facility in Germany became the first site certified to ISO 45001 occupational health and safety management system

Governance Achievements

  • Cross-functional risk assessment of corruption risks conducted and mitigation plan established
  • 85% of manufacturing operations certified according to ISO 14001

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Conduct 40 additional on-site reviews at suppliers
Short-term Goals:
  • Reduce greenhouse gas emissions per employee by at least 3% each year

Environmental Challenges

  • Supply chain disruptions due to Covid-19 pandemic (mentioned in CEO statement, not explicitly in sustainability section)
Mitigation Strategies
  • CEO statement mentions anticipation of customers reevaluating supply chains and business continuity plans, favoring localized production and reliable suppliers. No specific mitigation strategies detailed in the sustainability report itself.

Supply Chain Management

Supplier Audits: 93/year

Responsible Procurement
  • Recipharm Supplier Code of Conduct covering business ethics, labour practices, anti-corruption, human rights and environmental management

Climate-Related Risks & Opportunities

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

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • CDP rating improved to B-

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:76,506 tCO2e/year
Scope 1 Emissions:32,243 tCO2e/year
Scope 2 Emissions:43,958 tCO2e/year
Scope 3 Emissions:305 tCO2e/year
Water Consumption:2,342,961 m3/year
Waste Generated:20,344 tons/year
Carbon Intensity:6.9 tCO2e/SEKm sales

ESG Focus Areas

  • Reduced greenhouse gas emissions
  • Supplier assessment and monitoring
  • Develop internal governance

Environmental Achievements

  • Reduced greenhouse gas emissions per employee by 4.5% in 2020
  • Achieved ISO 14001 certifications in Paderno Dugnano, Masate, and Bengaluru.

Social Achievements

  • Conducted 24 on-site supplier reviews (fewer than planned due to COVID-19)
  • Implemented a comprehensive business continuity plan to protect employee wellbeing and ensure continued support for customers during the COVID-19 pandemic.
  • No suppliers with potential negative environmental and/or social impact were identified in 2020.

Governance Achievements

  • Further developed guidelines around processes for review, communication, and training to prevent corruption.
  • Established organisation and processes for internal control.
  • Three cases were reported through the whistleblowing system, with one leading to further investigation, but no misconduct was identified.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions
Medium-term Goals:
  • Complete the overview of Recipharm’s manufacturing of antibiotics as part of the commitment to antimicrobial resistance (AMR).
Short-term Goals:
  • Reduce greenhouse gas emissions per employee by 3%.

Environmental Challenges

  • COVID-19 pandemic posed operational challenges, including high absenteeism and restrictions on movement of people.
  • Supply chain disruptions due to the COVID-19 pandemic.
  • An incident in Monts, France, where an anesthetic product was accidentally released into the water treatment system and a nearby river.
  • Remediation of an incident in Consort’s Cramlington operations (from 2019) took longer than expected.
Mitigation Strategies
  • Implemented business continuity plans to protect employees and maintain customer support.
  • Took immediate actions to investigate and mitigate the impacts of the incident in Monts, France, and implemented processes to prevent recurrence.
  • Implemented further activities in Q4 2020 to improve operations in Cramlington, with expected improvements in 2021.
  • Adjusted supply chains to mitigate the impact of external events.

Supply Chain Management

Supplier Audits: 24/year in 2020 (fewer than planned due to COVID-19)

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact

Certifications: ISO 14001, ISO 45001

Sustainable Products & Innovation

  • Softmist spray nozzle technology (Resyca joint venture)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:61,577 tCO2e
Scope 1 Emissions:22,461 tCO2e
Scope 2 Emissions:43,616 tCO2e
Scope 3 Emissions:1,178 tCO2e
Renewable Energy Share:100% (offset through EACs)
Water Consumption:2,249,101 m3
Waste Generated:18,729 tons
Carbon Intensity:5.7 tonnes CO2e per SEK million sales in 2021

ESG Focus Areas

  • Enabling Good Health
  • Fair and Equal Workplace
  • Responsible Resource Management
  • Reduce Climate Impact

Environmental Achievements

  • Reduced greenhouse gas emissions per employee by 27.2% in 2021
  • Reduced waste by 8% and hazardous waste by 33% in 2021 compared to 2020
  • 100% of electricity consumption covered by Energy Attribute Certificates (EACs) in 2021 to offset non-renewable sources

Social Achievements

  • Launched new product quality KPIs
  • Manufactured one of the Covid-19 vaccines
  • Involved in SENSYO Pharmatech facility promoting vaccine independence in Morocco and Africa
  • Code of Conduct training for all employees started, with around half completing it in 2021
  • Accident rate decreased to 1.06 (from 1.92) per 1,000,000 hours worked

Governance Achievements

  • Refined sustainability strategy and governance structure
  • Created a new Head of Sustainability position
  • A dedicated sustainability person joined the Board
  • Conducted a materiality analysis with a third party

Climate Goals & Targets

Long-term Goals:
  • Investigating alignment with Science Based Targets initiative (SBTi)
Medium-term Goals:
  • Source 85% of electricity from certified renewable sources by 2023
Short-term Goals:
  • Reduce, reuse and recycle waste towards local site-level waste objectives
  • Continue ISO 45001 certification for remaining sites

Environmental Challenges

  • Two sites still send waste to landfill
  • Data consolidation difficulties due to new centralized governance model
  • Covid-19 restrictions impacting supplier audits
Mitigation Strategies
  • Initiatives to explore new waste management alternatives
  • Plans to fine-tune and better consolidate Group’s HR reporting
  • Plans to ramp up on-site supplier audits following easing of Covid-19 restrictions

Supply Chain Management

Supplier Audits: 40 in 2021

Responsible Procurement
  • Supplier Code of Conduct covering business ethics, labour practices, anti-corruption, human rights, and environmental management

Climate-Related Risks & Opportunities

Opportunities
  • Development of alternative inhaler propellants with lower GWP

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact

Certifications: ISO 14001, ISO 45001

Sustainable Products & Innovation

  • Alternative inhaler propellants with lower GWP

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:69,932 tCO2e (74,574)
Scope 1 Emissions:65,466 tCO2e
Scope 2 Emissions:4,466 tCO2e
Scope 3 Emissions:515,791 tCO2e
Renewable Energy Share:93%
Total Energy Consumption:374,654 MWh
Water Consumption:1,990,498 m3
Waste Generated:10,136 tons
Carbon Intensity:9.4 tCO2e per employee

ESG Focus Areas

  • Reduce climate impact
  • Increase resource efficiency
  • Drive safe and ethical business
  • Enable good health

Environmental Achievements

  • Reduced greenhouse gas emissions (scope 1 and 2) by 13.5% compared with 2021.
  • Reduced greenhouse gas emissions (scope 3) by 35.8% compared with 2021.
  • 93% of electricity sourced from renewables.

Social Achievements

  • First global Safety Week held, resulting in a 51% reduction in the lost-time accident rate for employees compared to 2022.
  • 84% of permanent employees completed the employee engagement survey, with 65% responding positively to diversity and inclusion.

Governance Achievements

  • Launched a new global Whistleblowing Policy and Hotline.
  • Revised Recipharm Code of Conduct (to be launched in 2024).

Climate Goals & Targets

Long-term Goals:
  • Zero waste to landfill
  • 100% of waste recycled
Medium-term Goals:
  • 42.1% reduction of scope 1 and 2 emissions by 2030
  • 25% reduction of scope 3 emissions by 2030
Short-term Goals:
  • 100% renewable electricity by 2024
  • Maximum Lost Time Incident Rate of 0.2 by 2025

Environmental Challenges

  • Sourcing renewable electricity in some markets.
  • Supply of biogas.
  • Ensuring optimal emission reduction investments across the global organization.
  • Measuring water consumption at some sites.
  • Some sites use chemicals that cannot be discharged into municipal wastewater drains.
  • Promoting a safety reporting culture.
  • Limited global overview of diversity and inclusion due to local approach.
  • Customers often require the use of specific suppliers.
  • Changing materials or suppliers can be a long administrative process.
  • Dependence on single suppliers for particular products.
Mitigation Strategies
  • Developing solutions with local partners for renewable electricity.
  • Investigating improvements to biogas supply or switching to electrical boilers.
  • Improving procurement capabilities, emission monitoring, and emission assessment during CAPEX evaluation.
  • Improving data reporting on water consumption.
  • Operating wastewater treatment plants at some sites.
  • Improving near miss incident reporting.
  • Developing structured processes for stakeholder dialogue and global D&I initiatives.
  • Ensuring all suppliers work according to Recipharm standards.
  • Developing a new policy, systems, and processes on third-party due diligence.

Supply Chain Management

Supplier Audits: 94 in 2023

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Power outages
  • Increasing temperatures
  • Extreme heat waves
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2021, UN Global Compact

Certifications: ISO 14001, ISO 45001

Third-party Assurance: KPMG AB

UN Sustainable Development Goals

  • Not disclosed

Each sustainability focus area is aligned with a corresponding UN Sustainable Development Goal.

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed