Novartis

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.

Committed to RE100: 100% renewable electricity across operations by 2025. In 2024, 96% of purchased electricity was renewable (up from 92% in 2023). Already at 100% renewable electricity in North America (US and Canada) and Europe through virtual power purchase agreements. Expanded renewable sourcing to sites in Asia and South America in 2024. Also participating in Energize industry initiative with Schneider Electric to facilitate renewable electricity procurement for suppliers.

Primary focus is on absolute emission reductions. For 2025 carbon neutrality target in own operations (Scope 1+2 from energy), plan to neutralize residual emissions using a mix of high-quality biomethane certificates and nature-based carbon removal solutions. For 2040 net-zero, will invest in high-quality carbon removals to neutralize unavoidable emissions (<10% of 2022 base year), in line with SBTi Corporate Net-Zero Standard. Stress-tested offsets outlook using BNEF voluntary market scenario, BECCS and direct air capture forecasts.

• Sustainable product design via life-cycle assessment

  Systematically integrating LCA methods in R&D pipeline to calculate and improve environmental impact of products. Implemented measures to reduce waste and emissions from clinical trials. Obtained My Green Lab certification for 96% of laboratories in technical R&D.

• Site energy efficiency and green technologies

  Deployed USD 40 million capital expenditure in 2024 on environmental projects to improve energy efficiency, adopt renewable energy solutions, and reduce natural resource consumption. Activities led to 20% reduction in Scope 1+2 emissions YoY and 71% vs 2016 baseline. Initiatives include optimizing HVAC, upgrading to energy-efficient equipment, and improved building insulation.

• Fleet electrification by 2030 (EV100)

  Transitioning vehicle fleet to electric vehicles by 2030 in line with EV100 commitment, where technically feasible based on availability of public charging, home charging feasibility, and OEM/EV model availability per market.

• Downstream transport and distribution

  Downstream transportation emissions rose to 111.3 ktCO2e in 2024 (vs 77.2 in 2023), driven by growth in product volumes. Upstream transport at 166 ktCO2e. Engaging with logistics suppliers as part of broader Scope 3 supplier engagement program.

• Supplier engagement on Scope 3 (76% of emissions in contracts)

  95% of emissions are Scope 3 (outside own operations). Embedding environmental sustainability criteria into procurement: contracts with such criteria now cover 76% of Scope 3 emissions (up 19ppts YoY), targeting 100% by 2025. Engaged with suppliers covering >two-thirds of Scope 3 emissions. Launched Environmental Sustainability Supplier Playbook shared with 1,000+ suppliers and integrated into PSCI standard learning plans. Participating in Energize initiative for supplier renewable energy procurement.