Delivering on our climate commitment

We were one of the first Danish companies to have its CO₂ reduction target approved by the Science Based Target initiative, a collaboration between the Carbon Disclosure Project (CDP), UN Global Compact (UNGC), World Resources Institute (WRI) and World Wide Fund for Nature (WWF). Read more about the Science Based Target Initiative.

2023 is the 9th consecutive year of achieving a Climate Disclosure Project (CDP) Leadership where Lundbeck scored “A” score and is placed amongst the 353 best-scored companies globally out of more than 21,000 responding companies. The CDP rates the disclosure and management or organizations towards climate change risk. Thus, for more than a decade, we have consistently reported annual reduction in both energy consumption and CO₂ emissions.

Up to date, we have reduced emissions from our sites by 34% compared to our target baseline in 2019.

Despite our achievements, we still have a long way to go and the next decade is critical. In 2019, we joined the global movement “Business for 1.5°C” of leading companies aligning their business actions with the most ambitious aim of the Paris Agreement.

We have achieved excellent results within our direct emissions (Scope 1) and purchase of electricity and heat (Scope 2). However, around 80% of our total CO₂ emissions are derived from our value chain (Scope 3). This includes where the goods and services we need are produced, the distribution of our products to patients, when our employees travel, and how our waste is treated.

Our current near-term CO₂ targets are to:

• Reduce absolute scope 1 and 2 greenhouse gas (GHG) emissions 42% by 2029 from a 2019 base year.*
  
• Reduce absolute scope 3 GHG emissions from purchased goods and services, upstream transportation and distribution and business travel 25% within the same timeframe.
  

Our current long-term CO₂ target is to reduce absolute scope 1, 2 and 3 GHG emissions 90% by 2050 from a 2019 base year.*

*The target boundary includes land-related emissions and removals from bioenergy feedstocks.

Additionally, we have an overall Net-Zero Target that we commit to reach net-zero greenhouse gas emissions across the value chain by 2050. 

Historically, we have demonstrated our commitment to cut carbon emissions. A main part of the reduction comes from the optimization of existing buildings, plants and installations, as well as investments in new low-energy machines and plants. Lundbeck has also made a shift from conventional fuel to bio-fuel.

In parallel, we are accelerating the transition to renewable energy in our manufacturing and headquarter facilities. The main elements are changing our energy sources to renewable electricity or other renewable fuels, primarily using Power Purchasing Agreements (PPA). A solar park built following an agreement between Lundbeck and the energy provider Better Energy providing our two Danish sites with renewable electricity from 2022. We are exploring similar solutions for our electricity consumption in Europe.

The carbon footprint we leave outside our fence is approximately nine times as high as inside the fence. We take responsibility for this by addressing carbon emissions across our entire value chain – from operations and products to raw material production, clinical trials, distribution and end-of-life.

In 2023, the implementation process of our new Global travel policy began, covering an area that had previously been managed locally. The new policy sets out the key principles for business travel in Lundbeck’s global organization considering our climate commitment. The policy will be implemented by promoting climate awareness among employees, setting targets for all Executive Vice Presidents, monitoring emissions and putting effective controls in place.

The financial sector and investors increasingly ask companies to disclose their climate-related risks and opportunities. Lundbeck supports the TCFD recommendations and believes they provide a useful framework to increase transparency on climate-related risks and opportunities within financial markets. As part of our support for the TCFD recommendations, Lundbeck comprehensively reports on governance, strategy, business opportunities, and risks related to climate change through the Climate Disclosure Project (CDP).