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The effects of climate change, from worsening air quality and extreme weather to increased pressure on healthcare systems and communities, are increasingly impacting people’s health across the world - with the most vulnerable often impacted first and hardest.
That's exactly why health inclusivity and sustainability are deeply embedded into Haleon's purpose and long-term strategy. As a consumer company solely focused on better everyday health, we recognise that creating a more resilient future requires action across our entire value chain, including the suppliers, manufacturers and partners that help us deliver our trusted brands to the 1.4 billion consumers we serve worldwide.
Reducing our environmental footprint by cutting carbon emissions is a critical part of this mission, with Haleon aiming to achieve Net Zero carbon emissions from source to sale by 2040. In March 2025, we reported that we had reduced net Scope 1 and 2 emissions by 55%i and source-to-sale Scope 3 emissions by 13%ii.
Reaching our target to reduce source-to-sale Scope 3 emissions by 42% by 2030iii remains a significant challenge, as most of our emissions sit beyond our direct suppliers. Purchased goods and services, such as active pharmaceutical ingredients and other raw materials – are the biggest driver of our Scope 3 footprint.
Further progress depends on systemic change and collaboration across our value chain, including sourcing renewable electricity, cleaner heating and cooling and driving collective action with suppliers and partners.
A significant proportion of these electricity-related emissions sit deeper in our supply chain, beyond our direct suppliers, where we often have no direct commercial relationship.
Through the Haleon Sustainable Supply Chain Pledge, we’re actively working with suppliers to drive decarbonisation across our value chain, including making the switch to renewable energy.
Our innovative Renewable Electricity in the Value Chain (REV) solution addresses the challenge of reducing Scope 3 carbon emissions through renewable electricity procurement, supplier engagement and a novel commercial structure.
REV works by helping address electricity-related emissions across our supply chain, including beyond our direct suppliers, with Haleon buying and retiring renewable energy certificates against its own value-chain inventory, complementing the action our suppliers are taking. Together, supplier-led renewable electricity action and REV have the potential to deliver approximately 40 per cent of the emissions reduction needed to meet our 2030 Scope 3 source-to-sale goal.
As part of this approach, we’ve established renewable electricity agreements across key regions, creating a scalable, market-led approach that supports supply-chain decarbonisation while strengthening long-term resilience.
In Europe, we’ve entered a long-term Virtual Power Purchase Agreement with Lightsource bp supporting new solar developments in Valladolid, Spain. With a combined capacity of 137 MWac, the projects are expected to generate up to 360 GWh of renewable electricity a year. The agreement is designed to reduce electricity-related emissions across Haleon’s European supply chain by increasing new renewable energy production, while its commercial structure provides greater certainty in a volatile energy market.
Elsewhere, in the US, Haleon has entered two 10-year agreements with Greenalia Solar Power linked to the Misae III Solar Project in Texas. Combining renewable energy certificates with an innovative Production Tax Credit Transfer structure, the agreements support new renewable infrastructure and help address North American supply-chain emissions.
The project is expected to begin operating in late 2027, with Haleon taking 100 GWh of renewable energy certificates annually for value-chain decarbonisation.
Sarah McDonald, VP, Health Inclusivity and Sustainability, Haleon:
"Climate change is increasingly becoming a health issue. The communities most vulnerable to worsening environmental impacts are often the same communities that face the greatest barriers to good health.
At Haleon, sustainability and health inclusivity go hand-in-hand. That's why we are focused on building resilience across our value chain, while supporting the transition to renewable energy.
These agreements demonstrate how innovative partnerships and scalable solutions can help address supply-chain emissions while advancing our ambition to create a healthier and more sustainable future for people and planet."
Tackling Scope 3 emissions requires businesses to think differently, collaborate across their value chains and develop solutions that can scale.
Haleon’s Renewable Electricity in the Value Chain (REV) strategy shows what that can look like in practice: bringing together climate action, commercial viability and long-term resilience.
It’s part of a broader ambition to create a healthier future, recognising that the health of people and the health of our planet are deeply connected.
We’re making good progress, having achieved 100% renewable electricity across all our manufacturing sites in 2022. We also have firm plans to transition all of our manufacturing sites to carbon neutrality by 2030, with half of our 24 manufacturing sites now completed.
Across our global manufacturing footprint, we are using a combination of heat pumps, electric steam generators, bio-mass boilers and bio-methane boilers to reduce our fossil fuel emissions and operating costs.
The five key asks that we require our suppliers to commit to as part of the pledge are:
Yes, Haleon is one of the few companies that has carbon pricing integrated into its procurement tenders, aligned to the EU Emission Trading Scheme cost of carbon. This gives suppliers with a lower carbon footprint a competitive advantage, driving business towards proactive suppliers that have taken steps to decarbonise their operations and those of their suppliers. To date, more than £1 billion of our annual supplier spend has been assessed in this way – encouraging suppliers to improve energy efficiency, adopt renewable electricity and replace fossil fuel-powered heating and cooling with lower-carbon alternatives.
Footnotes:
i Against a 2020 baseline.
ii Against a 2022 baseline.
iii Against a 2022 baseline.
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