DFE Pharma

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.

All EU sites are running with 100% green electricity. The new MCC plant in Cuddalore, India is fueled by a biomass boiler, nearly doubling renewable energy consumption from 73,498 GJ (2023) to 143,037 GJ (2024). Renewables now exceed 51% of total energy. Old fossil-fuel boiler at Cuddalore to be phased out in Q1 2025. Renewable energy projects have been partly carbon-credit sourced in the interim, until sufficient direct renewable supply is available.

DFE Pharma is aiming to prioritize emissions reduction through direct abatement, rather than using carbon credits. The firm plans to avoid the use of offsets to achieve 2030 reduction targets. Has invested in carbon-credit-sourced renewable energy projects in the interim until sufficient renewable sources are available. No removals (DAC, BECCS, etc.) disclosed.

• Fossil oil phase-out at Cuddalore site

  In 2025 DFE Pharma will phase out the use of fossil oil at its Cuddalore site, marking a significant step in reducing Scope 1 emissions. Biomass boiler at the new MCC plant replaces the old fossil fuel boiler. All EU sites already on 100% green electricity for Scope 2.

• Fleet electrification (Germany & Netherlands)

  In 2024 the car lease policy was updated so every newly ordered vehicle in Germany and the Netherlands is electric. Whole fleet expected to be fully electrified within 4 years.

• Manufacturing energy efficiency + fossil fuel switching

  Two key drivers: optimizing manufacturing processes for efficiency and transitioning away from fossil-based energy sources. All production sites are ISO 14001 certified. Phase-out of fossil oil at Cuddalore planned for Q1 2025. Energy management software being adopted where applicable. Roadmaps in place to monitor progress toward 42% near-term Scope 1&2 reduction target by 2030 vs 2021 baseline.

• Fleet electrification

  Updated 2024 car lease policy: every newly ordered vehicle in Germany and the Netherlands will be electric. Whole company fleet expected to be fully electrified within 4 years.

• Sustainable packaging — 100% recyclable by 2030 and 25% plastic reduction

  Three-pronged circular packaging strategy: Recycle (100% recyclable packaging by 2030), Reduce (25% plastic reduction by 2030), Reuse (promote re-use across operations). Degree of packaging material separability improved from 77% (2021) to 92% (2024). Comprehensive database built to assess current status; active engagement with contract manufacturers to close data gaps.

• FLAG/lactose supplier engagement (75% of Scope 3)

  FLAG emissions constitute 75% of Scope 3 and 74% of total carbon footprint, driven by dairy/lactose raw materials. 80% of Scope 3 calculation comes directly from farm-level data provided by lactose suppliers. SBTi 30.3% Scope 3 FLAG reduction target by 2030 vs 2021. Strategy relies on supplier collaboration to drive sustainable practices and zero-deforestation commitment by end-2025.

• End-of-life and upstream/downstream transport (Scope 3 non-FLAG)

  SBTi-validated 42% reduction in Scope 3 emissions from purchased goods and services, upstream transportation and distribution, and end-of-life treatment of sold products by 2030 vs 2021 baseline. Non-FLAG Scope 3 represents ~25% of footprint with >90% of 'other' category being end-of-life and transport.

• FLAG supplier engagement (lactose dairy farms)

  FLAG emissions dominate the carbon footprint: 75% of Scope 3 is FLAG and Scope 3 is 98% of total emissions. 80% of Scope 3 now comes directly from farm-level data provided by lactose suppliers — a rare level of granularity. DFE Pharma launched a Biodiversity Rating process for suppliers (49% of revenue-based volume already evaluated, focused on FLAG suppliers) covering deforestation, biodiversity, and animal welfare. SBTi 30.3% Scope 3 FLAG reduction target by 2030 vs 2021.

• Sustainable packaging (recycle, reduce, reuse)

  Three-pillar packaging circularity strategy: (1) Recycle — 100% recyclable packaging by 2030; (2) Reduce — 25% reduction in plastic use by 2030; (3) Reuse — promote re-use of packaging across operations and with partners. Packaging material separability improved from 77% (2021) to 92% (2024). Comprehensive packaging database developed to assess current status and close gaps with contract manufacturers.

• Supplier ESG risk management via EcoVadis IQ Plus

  In 2024, DFE Pharma began using EcoVadis IQ Plus to assess 100% of suppliers (by external spend) for sustainability and CSR risk. 11 on-site supplier ESG audits conducted in 2024 (vs 1 in 2023). Responsible Sourcing Policy mandatory from 2025. Engagement focused on energy, GHG emissions and waste reduction in supplier operations.