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.

Novartis is committed to using 100% renewable electricity across operations by 2025 following RE100 principles. In 2024, 96% of purchased electricity was renewable (up from 92% in 2023). Uses 100% renewable electricity in North America and Europe through virtual power purchase agreements (VPPAs). Participates in Energize, an industry initiative led with Schneider Electric to facilitate market access for renewable electricity procurement among suppliers.

While prioritizing absolute emission reductions, Novartis plans to neutralize any Scope 1 and 2 emissions from energy that remain in 2025 using a mix of high-quality biomethane certificates and nature-based carbon removal solutions. For 2040 net-zero targets, will align with SBTi Corporate Net-Zero standard (max 10% of Scope 1, 2, 3 emissions via offsets). Stress-tested against BNEF forecasts including BECCS and direct air capture.

• Site energy efficiency + electrification of fleet (EV100)

  Reducing energy demand through efficiency initiatives and process innovations, implementing green technologies across operating sites. Transitioning fleet to electric vehicles by 2030 in line with EV100 commitment. Deployed USD 40 million capital expenditure on environmental projects in 2024. Scope 1+2 emissions reduced 20% YoY and 71% from 2016 baseline.

• PVC elimination and packaging circularity

  By end of 2024, eliminated 100% of PVC in secondary and tertiary packaging at 24 manufacturing sites handling final product packaging (vs 2016). Established baseline for reducing plastics in packaging and devices. Improved process efficiencies and used more recycled plastics and reusable shipping boxes. Continuing to remove single-use plastics in workplaces.

• Sustainable product design via life-cycle assessment

  Systematically integrate life-cycle assessment (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.

• Upstream/downstream logistics decarbonisation

  Transportation Scope 3 emissions managed across upstream (cat 4: 166 ktCO2e) and downstream (cat 9: 111 ktCO2e). Cold-chain and radioligand therapy delivery require quick transport given short isotope half-lives. Investing in regional RLT manufacturing facilities (Indianapolis, Carlsbad CA, Italy, Slovenia) to shorten supply chains.

• Supplier engagement for Scope 3 (95% of emissions)

  95% of emissions are Scope 3 generated outside operations. Embedded environmental sustainability into core procurement processes; contracts including environmental sustainability criteria now cover 76% of Scope 3 emissions (up 19 ppts YoY). Onboarded suppliers covering more than two-thirds of Scope 3 emissions. Introduced Environmental Sustainability Supplier Playbook shared with 1000+ suppliers. Participating in WBCSD Partnership for Carbon Transparency.