GlaxoSmithKline PLC (GSK) is a global pharmaceutical company headquartered in Brentford, United Kingdom. The company operates in the large pharma sector and has a significant presence in over 150 countries worldwide. GSK's mission is to improve the quality of human life by enabling people to do more, feel better, and live longer. The company is committed to sustainability and has set ambitious targets to reduce its carbon footprint and transition to renewable energy sources.
Decarbonisation is a key focus area for GSK. The company has set a science-based target to reduce its Scope 1 and 2 emissions by 50% by 2030, and to achieve net-zero emissions by 2050. GSK is also working to reduce its Scope 3 emissions, which account for the majority of its carbon footprint, by engaging with suppliers and customers to reduce their emissions. The company has identified energy efficiency, renewable energy, and low-carbon transport as key areas to achieve its decarbonisation goals.
Corporate energy is another important aspect of GSK's sustainability strategy. The company is committed to reducing its energy consumption and increasing the share of renewable energy in its energy mix. GSK has implemented a range of energy efficiency measures across its operations, including the installation of LED lighting, energy-efficient HVAC systems, and building automation systems. The company has also invested in on-site renewable energy generation, such as solar PV and wind turbines, to reduce its reliance on grid electricity.
Corporate power purchase agreements (PPAs) are a key mechanism for GSK to procure renewable energy. PPAs allow companies to purchase renewable energy directly from generators, often at a lower cost than grid electricity. GSK has signed several PPAs with renewable energy developers, including a 25-year agreement with Ørsted for the supply of offshore wind power to its UK operations. The company has also signed a PPA with Enel Green Power for the supply of renewable energy to its manufacturing facilities in Italy.
Renewable energy is a key component of GSK's energy mix. The company has set a target to source 100% renewable electricity for its operations by 2030. GSK is working to achieve this goal through a combination of on-site renewable energy generation, corporate PPAs, and the purchase of renewable energy certificates (RECs). The company has already made significant progress towards this target, with 44% of its electricity consumption coming from renewable sources in 2020.
In addition to its decarbonisation and renewable energy goals, GSK is committed to reducing its water consumption and waste generation. The company has set targets to reduce its water consumption by 20% and its waste generation by 25% by 2030. GSK is also working to improve the sustainability of its supply chain by engaging with suppliers to reduce their environmental impact and improve social sustainability.
GSK's sustainability strategy is aligned with the United Nations Sustainable Development Goals (SDGs). The company has identified six SDGs where it can make the most significant impact: SDG 3 (Good Health and Well-being), SDG 6 (Clean Water and Sanitation), SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action).
GSK's sustainability efforts have been recognized by several external organizations. The company has been included in the Dow Jones Sustainability Index (DJSI) for 20 consecutive years and was named the most sustainable pharmaceutical company in the Corporate Knights Global 100 Most Sustainable Corporations in the World index in 2021. GSK has also received several awards for its sustainability initiatives, including the 2020 CDP A List for Climate Change and the 2020 Responsible Business Awards for Sustainability.
In conclusion, GlaxoSmithKline PLC is a global pharmaceutical company committed to sustainability and decarbonisation. The company has set ambitious targets to reduce its carbon footprint, increase the share of renewable energy in its energy mix, and improve the sustainability of its supply chain. GSK's sustainability efforts are aligned with the United Nations Sustainable Development Goals and have been recognized by several external organizations. The company's commitment to sustainability is a key driver of its long-term success and will enable it to continue to improve the quality of human life for generations to come.