AstraZeneca and GSK, along with 10 other pharmaceutical companies, have formed a collaboration to procure renewable electricity for their operations in China. The initiative, which involves suppliers including Takeda and several others, is expected to unlock approximately 225GWh of renewable electricity annually. This will power facilities engaged in the research, development, and manufacturing of medicines across the country.
The renewable electricity is sourced from a combination of wind and solar energy and will serve manufacturing sites in the Chinese provinces of Jiangxi, Liaoning, Tianjin, and Zhejiang. This latest agreement follows a similar deal announced in January 2024, which covered other regions such as Beijing, Guangdong, Jiangsu, and Shanghai. Together, the two agreements represent a significant step forward in the industry's push to decarbonize its operations in China.
The collaboration builds on the success of a previous, industry-first multi-party agreement, convened through the Sustainable Markets Initiative. This initiative was initially established by AstraZeneca, Lonza, Novartis, Novo Nordisk, and Roche. The expansion of this program is expected to save approximately 250,000 tonnes of carbon dioxide equivalents (CO2e), doubling the impact of renewable energy adoption within the sector.
AstraZeneca and GSK are joined in this effort by nine pharmaceutical suppliers, including Lianhe Aigen, ICON, Porton Pharma Solutions, and Aurisco. The initiative marks the first time that companies from across the global healthcare value chain, including local suppliers, have come together in China to support decarbonization efforts in the healthcare manufacturing sector.
The healthcare sector is responsible for about 5% of global greenhouse gas emissions, with over half of those emissions originating from manufacturing supply chains in Asia, particularly in China and India. By switching to renewable power, the initiative aims to reduce the sector's environmental footprint while improving energy security and cost predictability.
“We are thrilled to be co-leading this collaboration with the Sustainable Markets Initiative, which aims to enable our suppliers to access renewable energy,” said Lisa Martin, Chief Procurement Officer at GSK. “This deal demonstrates the power of partnerships in driving meaningful change, supporting business resilience, ensuring energy security, and improving cost predictability in the long term.
Tony Pusic, SVP Regional Supply, Asia Pacific, AstraZeneca, added, “AstraZeneca is delighted to see the platform we jointly established for the collective purchase of renewable power in China expand. Now suppliers and industry partners can contribute to decarbonization in this major market for medicines R&D and manufacturing.
