Environment
Environment
Climate change is putting the health of people and the health of the environment under severe strain. The case for action is clear. We’re taking positive steps to reduce our carbon footprint.
We have committed to significant near-term carbon reduction by 2030, and Net Zero source to sale carbon emissions by 2040 aligned to guidance from The Climate Pledge and Race to Zero.
Scope 1 and 2 emissions reduction
Scope 1 emissions are the emissions we directly generate, and Scope 2 emissions are the indirect emissions that come from the use of fossil fuel-generated electricity. Reducing these emissions is central to achieving our Net Zero ambition. We’re making progress here through steps such as investing in local renewable energy contracts and installing solar power across our manufacturing facilities, including sites in Cape Town, Nairobi and Jacarepaguá. These actions have underpinned our achievement of 100% renewable electricity across the sites we own and control in 2022.
Case study: Harnessing solar power at our Oak Hill site
We launched a long-term Power Purchase Agreement (PPA) at our facility in Oak Hill, New York, which manufactures oral health products including Sensodyne and Pronamel for the North American market. We’re partnering with Ameresco Solar Energy Solutions to supply Oak Hill with 70% of its electricity from a new, dedicated off-site solar park. This is designed to reduce the site’s carbon footprint by 60%.
Scope 3 emissions reduction
Around half of our carbon footprint is driven by the ingredients, packaging and services we buy and use to make our products. Key drivers of these emissions are sixteen raw and packaging materials, which is where we’re focussing our efforts first.
Where feasible, we’re removing carbon emission-intensive raw or packaging materials and replacing these materials with a lower footprint alternative. We’re also working with suppliers and through industry coalitions to support decarbonisation in our upstream supply chain. For instance, we’re collaborating with Manufacture 2030 and industry peers to help suppliers map their carbon emissions and switch to using renewables.
We also work with partners to raise awareness of the impact climate change has on everyday health. We are a co-founder of Forum for the Future’s Climate and Health Coalition. Alongside coalition partners, we’re aiming to highlight the human health impacts of climate change and to mobilise and equip the private sector to accelerate much-needed action.
These actions are part of our commitment to decarbonisation. Achieving Net Zero will require concerted action across the value chain and is dependent on wider systems change – for example, the increased greening of the electricity grid and industry collaboration to create the scale needed to commercialise new technologies. It will also depend on launching disruptive low carbon product innovation and the use of high-quality offsets where technical solutions are not yet available.
Footnote
1 Versus our 2020 baseline. Our goal to reduce net Scope 1 and 2 carbon emissions by 100% by 2030 is underpinned by a 95% absolute reduction target. We have submitted our Scope 1, 2 and 3 goals to the Science Based Targets Initiative for verification and have registered our commitment to Net Zero.
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