Sandoz Group AG

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.

Sandoz uses 100% renewable electricity at manufacturing sites in Austria and Brazil. Kundl (Austria) sources electricity from renewables since 2014, with 95% from hydropower in 2024 plus wind and photovoltaics. India share of renewables is increasing. Final stages of securing renewable PPAs to further decarbonize European operations. Also joined Schneider Electric's Energize program (PSCI-endorsed) to help suppliers access renewable electricity procurement.

No narrative on durable removals approach in the firm's most recent reports.

• Manufacturing energy efficiency & site certifications

  Nine sites covered by ISO 14001 and six by ISO 50001. Launched energy audit program for manufacturing sites in 2024 to inform 2030/2035 decarbonization plans. Kundl achieved 40,000 MWh/year energy savings via fermenter geometry improvements with Graz University. Hyderabad office achieved LEED platinum.

• Antibiotics vertical integration with lactose substitution

  USD 200m Kundl penicillin capacity expansion (+20% vs 2023, 2× vs 2021). Since spring 2024, lactose (cheese by-product) replaces other sugar sources for penicillin fermentation, strengthening regional supply and cutting transport CO2. Biosol bio-fertilizer from fungal mycelium distributed since 1981.

• Packaging redesign via Design-to-Sustainable-Value

  Introduced 'Design-to-Sustainable-Value' workstream in 2024 examining key products with material and emissions reduction opportunities. Product Carbon Footprint analysis identified products where packaging drives significant lifecycle emissions; actively investigating ways to improve.

• AMR-aligned wastewater treatment

  Targeting PEC/PNEC<1 for active pharmaceutical ingredient discharge at all manufacturing and API supplier sites by 2030; 84% of wastewater by volume compliant in 2024. Kundl was first Sandoz site to achieve BSI's international AMR standard in 2023; Pallafols and Lendava under assessment.

• Supply chain decarbonization (Scope 3 cat 1)

  Supplier emissions account for majority of Sandoz's footprint. Engaged key suppliers in 2024 to agree emissions reduction action plans; all supplier contracts now include updated ESG requirements. Built Scope 3 monitoring methodology, trained category managers, ran supplier workshops, and joined Schneider Electric Energize program to help suppliers procure renewables.

• Logistics modal shift from air to sea

  In 2024, worked with logistics suppliers to shift shipping from air to sea, reducing shipping costs by USD 3.6 million and CO2e logistics emissions by 10,000 tonnes.