Colorcon Inc

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.

Colorcon sources 24% of electricity from renewables in 2024 (up from 0% in 2021 baseline) through a mix of on-site solar generation and renewable energy credits. India locations have implemented on-site solar providing 30% and 5% of electricity at two sites respectively. The remainder is from purchased renewable energy credits. Climate action goal is to achieve a minimum of 90% renewable electricity usage by 2030.

The report does not discuss durable carbon removals (DAC, BECCS, biochar) or nature-based removal credits. Decarbonisation strategy relies on direct emissions reduction (renewable electricity procurement, energy efficiency, HVAC upgrades) rather than removals or offsets.

• HVAC and natural gas reduction (Scope 1)

  Since 2021, natural gas consumption has declined 23% (from 2,503,509 m³ to 1,933,328 m³), contributing to a 39% reduction in Scope 1 emissions through upgrades such as new HVAC systems. Energy audit plan to be developed by end of 2025 followed by comprehensive action plan.

• Renewable electricity procurement and on-site solar (Scope 2)

  Scope 2 market-based emissions reduced 14% vs 2021 baseline despite adding 8 new sites, driven by 24% renewable electricity sourcing in 2024. Plans for additional PPAs and on-site solar at India sites (30% and 5% of electricity already supplied at two sites). Target 90% renewable electricity by 2030.

• Natural gas reduction via HVAC upgrades

  Since 2021, natural gas consumption has declined 23% (from 2,503,509 m³ to 1,933,328 m³), contributing to a 39% reduction in Scope 1 emissions. Achieved through HVAC upgrades and resource-efficient operations including energy, compressed air, lighting and water systems mandated for all new facilities.

• Water recycling at scarcity-risk sites

  In India and China (water scarcity risk areas), Colorcon recycles water where possible — 23,627,874 L recycled in 2024 vs zero in 2021. Municipal water use down 38% vs 2021 baseline. Water audits planned with goal to cut cleaning water use 30% by 2027.

• Energy efficiency at facilities (LEED, airflow optimization)

  All new Colorcon facilities required to incorporate resource-efficient operations including energy, HVAC, compressed air, lighting and water systems. Corporate HQ in Harleysville, PA has LEED Gold certification; LEED Silver is minimum standard for new construction. Optimizing airflow and upgrading air conditioning has lowered electricity consumption 1.6% since 2021 despite four additional sites.

• Energy efficiency in operations

  Measures such as optimizing airflow and upgrading air conditioning systems have helped lower electricity consumption by 1.6% since 2021 even with additional sites added. All new construction must meet LEED Silver minimum (HQ in Harleysville is LEED Gold). Energy audit plan to be developed by end of 2025.

• Supplier engagement and CSR risk assessment

  All suppliers assessed for CSR risks (corruption, slavery, child/forced labor, environmental). Goal: 100% supplier Code of Conduct signatures by 2030; physical audits for all high-risk suppliers by 2030. New/renewed contracts to contain formal environmental, labor and human rights clauses by 2027. Colorcon has conducted webinars and developed supplier engagement plan targeting highest CSR-risk suppliers.

• Product life cycle assessment and recycled packaging

  Life cycle assessment process to be implemented in 2025; target of LCAs for 25% of products by 2026. 100% of new controlled atmosphere packaging products to be tested for recyclability starting 2025. Assessing use of recycled materials in packaging where regulatory limits (pharmaceutical/food contact) allow.

• Product life cycle assessment & recycled packaging

  Life cycle assessment program launching 2025, targeting LCA for 25% of products by 2026. 100% of new controlled atmosphere packaging products tested for recyclability starting 2025. Colorcon assessing use of recycled materials in packaging within regulatory constraints for pharma/food contact.

• Sustainable procurement / supplier engagement

  All suppliers assessed for CSR risk including environmental risk. Supplier Code of Conduct signature target 100% by 2030. High-risk suppliers undergo physical audit by 2030. New/renewed contracts will include formal environmental, labor and human rights clauses by 2027.