Highlights From My Green Lab’s 2024 Carbon Review of Biotech and Pharma
The two sectors may be more committed to net zero than other industries, but improvements can still be made.
Complete the form below to unlock access to ALL audio articles.
The biotech and pharmaceutical sectors have reached a sustainability milestone. According to My Green Lab – a non-profit organization that recognizes lab companies which demonstrate a commitment to net zero – over 25% of biotech and pharma companies now have medium-term carbon emissions targets that align with a 1.5°C pathway.
This proportion makes biotech and pharma two of the most committed sectors to net zero, after financial services, consumer goods, fashion and IT.
Yet, according to My Green Lab, more progress is still needed. Just under 75% of biotech and pharmaceutical companies still do not have medium-term net zero carbon emissions targets – and the 25% that do, only have targets for the emissions they directly admit; emissions linked to the companies’ supply chains are still concerningly high.
All these insights and more were gathered and published in “My Green Lab’s 2024 Carbon Impact of Biotech & Pharma Report”.
A carbon overview
Since 2021, My Green Lab has produced annual reports summarizing the strides biotech and pharmaceutical companies have made toward lowering their carbon emissions.
Its 2024 report leveraged data from 638 publicly listed companies and 290 privately held ones, and included emissions information from as far back as 2015.
Want more breaking news?
Subscribe to Technology Networks’ daily newsletter, delivering breaking science news straight to your inbox every day.
Subscribe for FREEAmong the 149 biotech and pharmaceutical companies with high-quality emissions data, 31% have set medium-term Scope 1 and 2 targets (2026–2035) that are aligned with the 1.5°C pathway. However, to fully meet climate goals, companies must expand these targets to include Scope 3 emissions, which cover indirect emissions throughout the value chain.
My Green Lab’s scopes
Scope 1 emissions – direct emissions from owned or controlled sources, such as a natural gas boiler burning fuel onsite.
Scope 2 emissions – indirect carbon emissions from purchased energy consumed by the reporting company, such as electricity.
Scope 3 emissions – all other indirect emissions upstream or downstream in a company’s value chain. For example, upstream could include the materials required to make a vaccine, while downstream would include the energy used to store and dispose of the vaccine.
Total emissions from public companies amounted to 259 million tons of equivalent CO₂ (tCO₂e). Private companies accounted for 138 million tCO₂e, bringing the total to 397 million tCO₂e in 2023. Scope 3 emissions were significantly higher than Scope 1 and 2, 5.4 times greater for public companies and 6.5 times greater for private companies.
Despite these high supply chain emissions, My Green Lab says the biotech and pharmaceutical sectors’ growing commitment to the UN’s Race to Zero campaign is a positive sign.
Its 2024 report found that leading companies are accelerating their sustainability commitments, with 36 companies (representing 56% of the sector’s revenue) joining the UN’s Race to Zero campaign, up from 28 companies (46% by revenue) the previous year.
“What the industry has started to realize is that it can’t say ‘we’re about protecting human health’ while, on the other hand, be creating a huge amount of pollution, which is ultimately damaging to human and environmental health,” My Green
Lab’s chief executive officer, James Connelly, told Technology Networks.
“This industry has recognized that health and climate change are interrelated and that they have a responsibility.”
Most of the companies in the report (61%) have now begun one of My Green Lab’s certification programs to lower their emissions further.
