In 2014 GlaxoSmithKline (GSK) awarded its first “supplier environmental sustainability award” to the supplier that makes its toothpaste tubes, in recognition of a programme that reduced energy use across 20 sites and resulted in a 9% drop in energy intensity.
The award is part of the pharmaceutical company’s innovative programme to reduce scope 3 emissions across its supply chain.
With 40% of GSK’s carbon footprint coming from the procurement of raw materials, the company recognised that tackling its own emissions wouldn’t be enough to reduce its carbon footprint – it would need to support suppliers to do the same.
GSK would like to be the most sustainable healthcare company and has set a target to reduce its carbon footprint by 25% by 2020 and have a carbon-neutral value chain by 2050.
Its supply chain programme has three strands. Ecodesk, an easy-to-use online platform, helps suppliers understand and measure their environmental impacts.
In two years participation has increased from 30 to 260 suppliers. More than £0.9bn [45%] of GSK’s spend on raw materials is linked to suppliers disclosing their environmental performance.
In 2014 the company launched another online platform, the GSK “knowledge information exchange”, which allows suppliers and GSK to share practical ideas about improving energy efficiency. A programme of workshops is helping the largest energy users in the company’s supply chain identify and implement energy saving opportunities.
The company is building the disclosure of environmental data into its supply chain contracts and equipping its procurement team to understand the issues and questions they need to ask suppliers. Alongside cost and quality targets the team has carbon emissions reduction targets, with CO2 ready reckoners to help them measure the benefits.
