Lonza Group Ltd

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.

Lonza targets 100% renewable electricity where available by 2025. Signed an industry-first multi-party PPA in China with four other pharma companies (wind, delivering ~60,000 tCO2eq reduction in 2024); a VPPA in Spain with Ignis covering EU and Swiss sites began producing renewable electricity in 2024 via Guarantees of Origin (>9,000 tCO2eq reduction); and a long-term Renewable Energy Certificate linked to a new Texas solar field will offset majority of US emissions from end of 2025. In 2024, 52% of consumed electricity was renewable. Instruments meet RE100 criteria.

Lonza states explicitly: 'We do not use offsets, as we focus on actual reduction measures.' No durable removals (DAC/BECCS/biochar) program disclosed. Decarbonisation pathway relies on renewable electricity, electrification (heat pumps), fuel switching to biogenic sources, energy/process efficiency, and supplier engagement rather than removal credits.

• Renewable electricity procurement (PPAs/VPPAs/RECs)

  Globally executing PPAs and VPPAs to switch to renewable electricity by 2025 where available. China PPA (wind) reduced 60,000 tCO2eq in 2024; EU/Swiss VPPA produced first MWh in 2024 (>9,000 tCO2eq); US long-term REC linked to Texas solar from end-2025 will cover >90% of US electricity.

• Fuel switching and electrification (heat pumps, biogenic solvents, biomass)

  Two sites use biomass boilers (3,200 tCO2eq reduction vs natural gas in 2024). Gradual reduction of a steam turbine, switching from natural gas to renewable electricity, delivering 7,500 tCO2eq staged Scope 1 reduction by 2026. Use of biogenic solvents reduced Scope 1 by 2,800 tCO2eq in 2024. Heat pumps and membrane water processes being pursued for steam/hot water.

• Solvent recycling and circular process design

  Currently recycle >10,000 tons of solvents annually, avoiding >45,000 tCO2eq per year and reducing fresh solvent consumption. Solvent recycling in Switzerland and China avoided >5,000 tons wastewater and >900 tons fuel-related CO2eq in 2024.

• Energy & process efficiency at manufacturing sites

  Sustainable Design Standard applied to all new assets and refurbishments. HVAC optimization using risk-based air exchange, CIP optimization, in-house process improvements. Examples: Slough (UK) AHU recirculation saving 300 GJ/yr; Suzhou (CN) high-efficiency chiller saving >700 MWh/yr; Portsmouth (US) steam microturbine generates electricity for ~300 households. 31% energy intensity reduction vs 2018 baseline.

• Supplier engagement for Scope 3 decarbonisation

  SBTi engagement target: 79% of suppliers (by emissions across cat 1, 2, 4) to have science-based targets by 2028; 33% achieved in 2024. Engaged >400 suppliers through events and Responsible Supplier Toolkit; collaborated with Emitwise to help suppliers calculate Scope 1/2/3 emissions. Solvent recycling avoided ~20,000 tCO2eq in Scope 3 cat 1 in 2024.