Greenhouse gas emissions (GHG)

 

In 2008, Novartis achieved a small reduction in greenhouse gas (GHG) emission for Scope 1 emissions (on-site), while Scope 2 emissions (from purchased energy) increased.

The total amount of Scope 1 GHGs (mainly CO₂) emitted from on-site combustion in 2008 was 404kt, a 1% reduction compared to 2007 (408kt). Emission of other GHGs (hydro-fluorocarbons from refrigeration systems), included in the above amount, totaled 3.4kt. GHG emissions from processes and of Kyoto gases other than CO₂ and HFCs are zero. GHG emission of non-Kyoto GHGs, such as HCFCs and certain chlorinated solvents, totaled approximately 12kt.

Scope 1 GHG emissions from the use of company owned or leased vehicles is reported separately. In 2008 this totaled 175kt, compared to 186kt in 2007 (a 6% decrease). This decrease is due to our move to more efficient fleet vehicles – in the same period the number of cars slightly increased by 2%.

Scope 2 GHG emissions (mainly from electricity generation) totaled 937kt, up by approximately 5% from 891kt in 2007.

Sandoz and Consumer Health reduced on-site Scope 1 GHG emissions by around 2.5kt each, while this indicator remained more or less constant for other Divisions.

Scope 3 GHG emissions from our global business flights totaled an estimated 182kt (175kt in 2007). The GHG emissions from company owned/leased aircrafts has been included in the Scope 1 company vehicle fleet reporting, and totaled 8.7kt.

Other Scope 3 GHG emissions, e.g. from waste water treatment and waste disposal and production, mainly packaging material disposal--are estimated to be small compared to Scope 1 and Scope 2 emissions. Scope 1 and Scope 2 emission intensity (per sales) has been reduced over the last five years from 16 to below 10 t CO₂e/million USD (Scope 1, on-site) and from 28 to 22 t CO₂e/million USD (Scope 2, purchased), respectively.

 

GHG emission targets and outlook

In 2005, Novartis made a voluntary commitment to reduce global direct on-site GHG emissions (from on-site combustion and processes) to the level prescribed in the Kyoto Protocol, i.e. 5% below the 1990 level by 2012. This commitment forms a major part of the Novartis Group environmental target set during 2005. It strongly correlates with the targets already set on energy efficiency improvement and energy projects.

In relation to the above GHG target, emissions for the 1990 base year have been assessed, based on the level of Novartis business activities in 1990. Global direct on-site GHG emission in 1990 have been calculated at 308kt. Taking the continued growth of business and energy efficiency and emission reduction initiatives into account, emissions were expected to rise on average by some 3% per year. While this was the case between 2003 and 2006, total emissions have now been reduced by 1% since 2006. This is the result of an increasing number of improvement actions for energy efficiency, the use of renewable energy, and other GHG emission reduction measures. However, increased efforts and investments in more efficient energy technology and renewable sources will be needed to continue on this path in the coming years.

In 2006, Novartis also set a target on CO₂ emission from the company’s owned or leased vehicle fleet, an additional relevant area of GHG emissions. CO₂ emission from vehicles will be reduced by 10% by 2010, compared to 2005 levels. Further reduction of the environmental impact of the vehicle fleet is intended through the introduction of hybrid gasoline-electric cars, increased use of diesel engines fitted with particulate filters, and other emission reduction options such as liquid natural gas or bio-fuels. At the end of 2008 the Novartis vehicle fleet in the US includes 1 209 fuel-efficient hybrid and 146 diesel cars (18% of the US fleet).

While the long-term goal is to lower GHG emissions through internal improvement programs, Novartis is taking advantage of carbon-offset options included in the Kyoto Protocol, such as the United Nations Clean Development Mechanism. These options are designed to offset the amount of carbon released into the atmosphere by providing the option of removing GHG elsewhere through use of renewable energy, energy conservation or carbon sequestration projects.

Carefully considered carbon-offset projects represent a useful tool to foster long-term economic growth for the local population in developing economies, while also helping to meet the Group’s CO₂ reduction target. In 2007, Novartis purchased 34 square kilometers of pasture land in Argentina with the objective of establishing a forest to sequester carbon. Plantations were started during 2007 and to date, 1,850 hectares have been planted with approximately 2.2 million young trees. Ultimately the goal is to establish a sustainable mixed forest with 75% native tree species. In February 2008, the Forest Stewardship Council certified the Argentina afforestation project.

A second carbon-offset project sponsored by Novartis is a Jatropha plantation and biodiesel project in Mali, West Africa. The seeds of this shrub contain a high proportion of oil that can be pressed and used in production of biodiesel fuel, a natural fertilizer and potentially biogas energy from the residues.

Because Jatropha is a perennial and non-edible crop, it could provide local farmers with additional income from their traditional land, complementing cultivation of food crops and feed for animals. Growing Jatropha can help protect fields from soil erosion and counter desertification, a major environmental hazard in western Africa. During 2007, the Novartis plantation project started with 350 hectares of Jatropha and an additional 1,000 hectares were planted during 2008. The two projects are being validated for registration under the UN Clean Development Mechanism.

Novartis supports emission reduction targets and the use of market-based instruments such as emission trading schemes and sector approaches directed at a necessary decarbonisation of the world’s energy systems. Novartis looks forward to an effective post-2012 global climate policy framework to be developed soon, as the definition of these important framework conditions are the prerequisite for business target setting and effective energy management.

 

Back to top