Activate program launches with Active Pharmaceutical Ingredients (API) suppliers

Specifically targeting the production of active pharmaceutical ingredients (APIs), founding members AstraZeneca, Bristol Myers Squibb, GSK, Johnson & Johnson, Pfizer, and Sanofi have now rolled out the program in 21 countries around the globe.

Initially announced at the 2022 United Nations Conference of Parties on Climate Change (COP27), the program is built on opportunities identified for cross-industry collaboration. The program aims to make an impact across a key segment of the pharmaceutical industry’s value chain.

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 demanding processes and waste recovery.

With high levels of interconnectivity, a global footprint and hundreds of supplier sites across the industry’s supply chains, there is a substantial opportunity to drive positive impact through collaboration in the sector.

M2030 are independently facilitating the program, maintaining confidentiality, convening pharmaceutical companies, and leading on supplier engagement using their pioneering carbon reduction software, climate action managers and extensive network of expert partners.

The program supports the decarbonization of a key segment of the pharmaceutical value chain through measurement, provision of practical tools, expert advice, and access to green financing.

Activate begins with onboarding API suppliers, capturing footprint data, establishing a reference point baseline, and tackling the most prominent areas of environmental impact. This will run in parallel with the development of several key resources and initiatives including:

1. Support in the development of new green chemistry solutions.
2. Access to dedicated green finance opportunities to enable transformational decarbonization projects.
3. Training and development to support the creation of SBTs and PCFs.
4. Development of a dedicated playbook of API best practices.
5. Access to renewable technologies.

These are funded by Activate through contributions from the founding member companies, allowing the first 200 API supplier sites that join to have their first year’s membership fees fully sponsored.

The second phase of Activate will 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.

Participating pharmaceutical companies 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 mark the roll out of the pioneering Activate program. Collaboration between companies and their suppliers is critical to tackle shared challenges. With improved access to the knowledge, expertise and support they need to drive measurable climate action, API suppliers will now be empowered to play a key part in decarbonizing the pharmaceutical value chain.”

Stuart Whinney, Chief Commercial Officer at Manufacture 2030 added: “There is a great opportunity to drive positive impact across this key segment of the pharmaceutical value chain, and today highlights the intent of the industry to do so. Through shared initiatives like Activate, we can empower suppliers with the tools, knowledge and finance, helping them accelerate environmental sustainability, while removing barriers to change. This is just the beginning, and we look forward to welcoming more pharmaceutical companies on this journey towards a more sustainable future.”