Sandoz Group AG

Carbon per million dollars of revenue. The legacy industry-standard reference (CDP, MSCI). Useful for cross-sector context, but distorted by margin — high-margin firms appear artificially efficient. Read alongside the operational and asset intensities for the full picture.

OpEx (operating expenditure) is the running cost of the business — staff, services, energy, materials. This shows how carbon-intensive operations are per million dollars of spend. Removes the margin distortion that revenue-based ratios introduce.

EVIC (Enterprise Value Including Cash) is the firm's total capital footprint — equity + debt + cash + minority interest. The EU's standard intensity measure (SFDR PAI 3) — answers: how much carbon does each million of capital deployed in this business produce?

PP&E (Property, Plant & Equipment) plus leased real-estate assets is the firm's physical infrastructure on the balance sheet. This shows the carbon intensity of that physical footprint — uses Scope 1+2+3 for consistency with the other headline intensities. Surfaces stranded-asset risk for asset-heavy firms.

Sandoz uses 100% renewable electricity at manufacturing sites in Austria and Brazil, and is increasing renewable share in India. At Kundl, electricity has come exclusively from renewable sources since 2014; in 2024, 95% from hydropower with the rest from wind and photovoltaics. The company is in the final stages of securing renewable power purchase agreements (PPAs) to further decarbonize European operations. Joined Schneider Electric's Energize program (PSCI-endorsed) to help suppliers procure renewable electricity, with first joint renewable energy procurement project with suppliers planned for 2025.

Sandoz does not disclose a formal carbon removals strategy (DAC, BECCS, biochar). Decarbonization plans are heavily geared towards supply chain emissions reduction and operational efficiency rather than removals or offsets. No volumes of removal credits or offsets retired are reported. The approach focuses on absolute Scope 1, 2, and 3 reductions, with SBTi-validated targets expected by January 2026 aligned to a 1.5°C scenario.

• Vertically-integrated antibiotic production at Kundl with circular byproducts

  Kundl uses lactose (milk sugar) from regional cheese production as alternative sugar source for penicillin production, minimizing transport CO2 and promoting local circularity. Fungal mycelium byproducts from penicillin production are converted to Biosol bio-fertilizer (since 1981), distributed worldwide. Fourth-stage wastewater treatment implemented in 2023 to eliminate organic pollutants and APIs.

• Product and packaging design-to-sustainable-value

  Sandoz introduced a 'Design-to-Sustainable-Value' workstream in 2024 to identify products with materials and emissions reduction opportunities. As part of Product Carbon Footprint analysis, identified products where packaging drives significant lifecycle emissions and proactively investigating ways to improve. Focus on circular economy opportunities in product design and manufacturing processes.

• Operational energy efficiency and renewable electricity at manufacturing sites

  Sandoz invests in energy-efficient equipment and pursues environmental management certifications. Nine sites have ISO 14001 and six have ISO 50001. In 2024 launched an energy audit program for manufacturing sites to inform 2030 and 2035 decarbonization plans. Hyderabad office achieved platinum LEED certification. Investments in Kundl reduced ecological footprint by 40,000 MWh/year energy and 8,000 tonnes CO2/year.

• Supply chain decarbonisation via supplier engagement (Energize program)

  Supplier-related emissions account for a majority of Sandoz's total carbon footprint. Sandoz joined Schneider Electric's Energize program endorsed by PSCI to help suppliers access sustainability expertise and renewable electricity education. In 2024, the first cohort of suppliers joined Energize following Sandoz invitation. ESG requirements integrated into all supplier contracts; engaged with key suppliers to agree emissions reduction action plans.

• Logistics modal shift from air to sea freight

  In 2024, Sandoz worked with logistics suppliers to shift some shipping from air to sea, reducing shipping costs by USD 3.6 million and CO2e logistics emissions by 10,000 tonnes. This is part of the broader Scope 3 upstream transportation reduction strategy.