Wedoany.com Report-Mar 4, AstraZeneca and GSK have partnered with pharmaceutical suppliers to collectively procure renewable power in China.

This collaboration among the 12 companies will unlock approximately 225GWh of renewable electricity annually to supply energy for operations that include the research, development and manufacture of medicines.

The latest supply deal among the companies, which are part of the Sustainable Markets Initiative, will serve manufacturing sites in Jiangxi, Liaoning, Tianjin and Zhejiang.

The electricity is provided through a mix of wind and solar energy.

The other offtakers in the supply deal comprise Takeda and nine suppliers, including Lianhe Aigen, ICON, Porton Pharma Solutions and Aurisco.

This joint decarbonisation initiative builds on the success of the industry-first, multi-party agreement to access renewable power in China announced in January 2024.

That agreement was convened through the Sustainable Markets Initiative and established by AstraZeneca, Lonza, Novartis, Novo Nordisk and Roche.

The combination of the original programme from 2024 and this new agreement represents a doubling of impact by switching to renewable electricity sources.

This is expected to save approximately 250,000 tonnes of carbon dioxide equivalents (CO2e).

The expanded programme marks the first time that companies from across the global healthcare value chain, including local suppliers, have come together in China to support decarbonisation of healthcare manufacturing and follows extensive engagement with suppliers.

The expanded renewable energy supply in China serving the factories in Jiangxi, Liaoning, Tianjin and Zhejiang builds on the four provinces covered in Beijing, Guangdong, Jiangsu and Shanghai in the 2024 agreement.

The development, supply and delivery of medicines and related products is energy intensive, with the healthcare sector responsible for approximately 5% of global greenhouse gas emissions.

Over half of these emissions originate in manufacturing supply chains across Asian markets, especially in China and India given the high presence of pharmaceutical manufacturers in these countries.

“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, 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, said: “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.