Activate program launched to accelerate decarbonization in active pharmaceutical ingredient (API) supply chains

LONDON, UK – 9^th November 2022

Global pharmaceutical companies are working with active pharmaceutical ingredient (API) supply chains to enable environmental impact reduction of the healthcare sector through the Activate program.

Activate will support the decarbonization of a key segment of the pharmaceutical value chain through measurement, provision of practical tools, expert advice, and access to green financing.

Manufacture 2030 (M2030), the leading supply chain decarbonization platform, today announced Activate – an innovative new program to help reduce environmental impacts associated with the pharmaceutical industry’s value chain.

Activate launches as part of this years United Nations Conference of Parties on Climate Change (COP27) and was initially co-developed with GSK, who identified the opportunity for cross-industry collaboration on this major source of impact. The program brings together AstraZeneca, Bristol Myers Squibb, GSK, Johnson & Johnson, and Pfizer as founding members, to engage with a global network of API suppliers.

APIs, a key constituent in medicines and vaccines that produce the intended health effects, can be resource intensive to manufacture due to material use, energy intensive processes and waste recovery.

With high levels of interconnectivity across the industry’s supply chains, there is a substantial opportunity to drive positive impact through collaboration across the sector.

M2030 will independently facilitate the program, maintaining confidentiality, convening pharmaceutical companies, and leading on supplier engagement by using its innovative carbon reduction software, climate action managers and its extensive network of expert partners including Edison Energy, Ricardo and RENEW Energy Partners.

Activate is committed to going beyond data collection and working closely with API suppliers to strengthen relationships, align with science-based decarbonization targets, drive more sustainable procurement, and identify opportunities for operational and resource efficiency.

Beginning in May 2023, Activate's immediate focus will include onboarding API suppliers, capturing footprint data, establishing a reference point baseline, and tackling the most prominent areas of environmental impact. This will be funded by Activate through contributions from the founding member companies, allowing the first 200 API supplier sites that join to have their membership fees fully sponsored.

The second phase of Activate is intended to launch in spring 2024 and will see M2030 bring participants together to explore solutions to more complex challenges. These could include support for building product carbon footprints (PCFs) at scale; deploying new tools and technologies collaboratively; and promoting access to green finance for decarbonization projects via independent financial partners.

Participating pharmaceutical companies will gain access to projections of the decarbonization pathway for API suppliers. This increased visibility can aid climate risk assessment and empower supply chain owners to support suppliers in meeting their climate targets.

Martin Chilcott, Chairman and CEO at Manufacture 2030, said: “We are delighted to be launching Activate at COP27. Collaborations between companies and their suppliers provide the opportunity to identify shared challenges and unlock major barriers to progress. With easier access to the knowledge, expertise and support they need to drive measurable climate action, API suppliers can play a key part in solving the greatest challenge of our time.”

Glynn Roberts, Senior Partner at Carnstone, commented: “The pharmaceutical industry has a solid track record of working together to tackle environmental challenges. We are proud to have brought the industry together through initiatives such as the Pharmaceutical Environment Group, and welcome Activate as exactly the type of action-based, collaborative program that is needed to identify and accelerate the decarbonization of known areas of high carbon impact in the pharma value chain.”