On Friday 22nd October 2021, KTN hosted a webinar on Net Zero in Medicines Manufacturing, aimed at medicines manufacturers to learn about systems and tools for measuring and reporting on Scope 1, 2 and 3 carbon outputs. The webinar was hosted by the KTN Medicines Manufacturing Challenge Community in partnership with Innovate UK, Medicines Manufacturing Industry Partnership and Association of the British Pharmaceutical Industry, featuring presentations and discussion from GSK, AstraZeneca and Pfizer on reporting and science-based targets.

1. www.ktn-uk.org
Net Zero in Medicines Manufacturing:
Measuring and Reporting Carbon
Footprint
Friday 22nd October 2021
Medicines Manufacturing Challenge Community

2. Agenda
Time Topic Presenter
10:00 - 10:10 Welcome and introduction Karen Wilkinson, KTN
Ling Xu, Natural Environment Research Council
10:10 - 10:25 Introduction to carbon reporting (Scope 1,2 &3) and
science-based targets
Richard Henderson Sustainability Reporting Lead, GSK
10:25 - 10:40 Scope 1 & 2 practical application case studies from
Pfizer UK
Roos Bruggink, Global Health and Social Impact Manager and
Steph Barnes, HCP Channel & Content Lead, Vaccines
10:40 - 10:55 Scope 3 - the challenges and opportunities to
decarbonise the whole value chain
Jason Snape, Global Head of Environment, Global
Sustainability, AstraZeneca
10:55 - 11:10 Business as a Force for Good – Putting shared value at
the heart of business strategies
Paolo Sacco, Head of Global Public Affairs, Rossella Ferri,
HSE Specialist, Shared Value Team, Chiesi Group
11:10 - 11.25 NHS Sustainable Procurement - Supplier
Decarbonisation Roadmap
Alexandra Hammond, Head of Sustainable Procurement &
Claire Foreman, Director of Medicines Policy and Strategy
11:25-12:00 Panel discussion and Q&A featuring all presenters Chaired by Mark Talford, Deputy Challenge Director, Medicines
Manufacturing Challenge, Innovate UK
12:00 Close

3. Natural Environment Research Council (NERC)
Environmental solutions as part of a systems/multidisciplinary approach to address grand challenges
Investment
Talent & Skills
Collaboration
Infrastructure
• 2nd largest funder of environmental science globally
• A budget of £519M in FY2020-21
• UK national capability:
4 ships, 7 aircraft, 6 polar stations, 6 data centres, 32 community facilities
• 3,000 scientists and 1,000 PhD students
• Across 55 universities and 20 research institutes
• Full range of atmospheric, Earth, biological, terrestrial and aquatic science
• 1,000 research projects and 60 UK or international programmes

4. Helping the UK reduce its carbon footprint
CCaLC ‘Carbon Calculations over the Life Cycle of Industrial Activities’*
• A suite of software tools to calculate the carbon footprint of their products or services, and take steps to
reduce it, taking into account:
o emissions generated along the whole supply chain
o other environmental impacts, e.g. water footprint of a product, or how much it contributes to ozone layer
depletion.
• 9,000 users in more than 90 countries, manufacturers from the chemical, food and drink, and bio-sectors.
• GSK used CCaLC to estimate the carbon footprint of 20 of their key products, including asthma inhalers and
Horlicks. CaLC showed that Ventolin, used by ~300 million asthma sufferers worldwide, is one of the main
contributors to the company’s carbon footprint. Since then, GSK have started to collect and recycle waste
inhalers, saving upwards of 682 tonnes of CO2.
*Supported by funding from NERC, EPSRC and the Carbon Trust

5. Developing environmental standards to limit discharge
UK/India bilateral on AMR in the environment from antimicrobial manufacturing
waste (£8m 2020 to 2023)
• Extent, pathways and role of pharma waste in driving emergence and circulation of AMR
in the environment.
• Methods and tools for detection of active antimicrobials in effluents and receiving
environments.
• Impact on human and animal health from environmental exposure to high levels of
antimicrobial pollution.
Ecotoxicological risk assessment for sustainable chemical use
ECORISC Centre for Doctoral Training on ecotoxicology (£3.5m 2021 to 2027)
• 39 new studentships with broad training to better assess and manage the potential
environmental risks of chemicals
• opportunities to partner with a range of stakeholders to advance how they develop and
manage sustainable chemicals, including pharmaceuticals
Other environmentall solutions for medicines manufacturing
© Getty Images
© Getty Images

6. NERC: Natural Environment Research Council @NERCscience NERCscience
Ling Xu
Ling.xu@nerc.ukri.org

7. Carbon emissions
and reporting
Richard Henderson

8. Environmental sustainability expectations are rising
significantly across our stakeholders
4
Society &
employees
Pharma Sector
Investors &
shareholders
Governments &
regulations

9. Human emissions of greenhouse gases are warming the
earth
5

10. Which countries and sectors contribute to global
emissions
6
The hard truths of climate change — by the numbers (nature.com)

11. Carbon emissions are defined under 3 groups
– scopes 1, 2 and 3
7
Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Standard

12. GSK Carbon Footprint
8
Carbon | GSK

13. – An initiative to drive the private sector to set
ambitious carbon reduction targets that align with
the scientific opinion of what action is needed to
limit global warming
– SBTi review and approve the targets that
companies propose
– For companies it is a public commitment to
carbon footprint reductions that are meaningful
– SBTi can demonstrate to governments that the
private sector is taking action
Science Based Targets
9
https://sciencebasedtargets.org/

14. Insert your date / confidentiality text here
16x9 core template 10

15. 11
Confidential
Breakthroughs that change patients’ lives
A Pfizer UK Case Study:
Measuring Scope 1 & 2
Emissions
Steph Barnes
HCP Channel and Content Lead
Roos Bruggink
Global Health & Social Impact Manager
Friday 22nd
October

16. Scope 3 - the
challenges and
opportunities to
decarbonise the
whole value chain
Jason Snape, James Cunningham
and Ben Norbury
October 2021
Company Restricted

17. 13
Ambition Zero Carbon
Greenhouse Gas Protocol and Scope 3
Reporting
Insights into AstraZeneca Scope 3 Data
Challenges and Opportunities to decarbonise
the value chain
1
2
3
4
Contents

18. Ambition Zero Carbon
1
14

19. 21 October 2021
15
Ambition Zero Carbon
We will eliminate GHG emissions
from our operations by 2025 –
Scopes 1 and 2 – and we have
committed to:
• double energy productivity
• use 100% renewable energy for
power and heat
• switch to a fully electric vehicle
fleet
• eliminate F-Gas emissions at our
sites
We will become carbon negative across
the entire value chain by 2030 – GHG
Scope 3 – and we have committed to:
• transitioning to our next-generation
respiratory inhaler with near-zero
climate impact propellants
• ‘design in’ sustainability across
product lifecycles and embed net zero
into cost of goods
• engage with our suppliers to reduce
emissions in the network
Eliminate greenhouse gas (GHG) emissions from our sites
and fleet by 2025 and become carbon negative across our
entire value chain by 2030

20. 11 March 2021
16
Source: Sustainability Report 2020
Decarbonisation – our approach
Avoid
Reduce
Substitute
Compensate
1
2
3
4
Through green
product and asset
design and new
ways of working
Improve efficiencies
and change energy
use behaviour
Substitute energy use
with renewables and
lower impact fuels
Invest in credible
carbon removal
projects
Ambition
Zero
Carbon
2025
Plan:
no
residual
emissions
AstraZeneca
2020
corporate
footprint
3% 97
%
Our decarbonisation
plans fall under three
Scopes:
Scope 3
Our indirect footprint —
our value chain
Scopes 1 and 2
Our direct emissions from
the combustion of fuels
and release of F-Gases,
and indirect emissions
from imported energy
F

21. Our progress and priorities out to 2025 goals
17
We are on track to deliver our 2025 goals
Science-based target (1.5∘
C)
F-Gas process emissions
Road fleet
Heat
Backup fuel, refrigerants etc.
Imported electricity
Performance versus 2015
• AZC 2025 Emissions 60% reduction
379K tonnes CO2
e reduced
• Total Energy Use 13% reduction
233 MWh saved
• Energy Productivity 23% increased productivity
• Renewable Power 76% renewable power
• Renewable Energy 38% renewable energy
• Logistics 24% migration to sea/ rail
• Business Air Travel 76% reduction
91K tonnes CO2
e reduced
• Vehicle fleet 56% reduced emissions
Members of RE100 – 100% Renewable Energy; EP100 – Double Energy Productivity; EV 100 – 100% Electric Vehicles; Carbon Disclosure Project ‘AA’ rated for 5 x years in a row for Water and Climate; UN Race to Zero early supporter

22. Our 2020 Greenhouse Gas Footprint
Scope 1 and 2 are
approximately 3% of
our footprint
Scope 3 is
approximately 97% of
our footprint, three
quarters is estimated
based on spend
2025 Target
2030 Target
10 20 30 40 50 60 70
% GHG Footprint

23. Greenhouse Gas
Protocol and Scope 3
Reporting
2
19

24. • GHG Protocol establishes comprehensive global standardized frameworks to measure
and manage greenhouse gas (GHG) emissions from private and public sector
operations, value chains and mitigation actions
• In 2016, 92% of Fortune 500 companies responding to the CDP used GHG Protocol
directly or indirectly through a program based on GHG Protocol.
We Report our GHG Data according to the GHG Protocol
What is the GHG protocol?
20
https://ghgprotocol.org/sites/default/files/standards/Corporate-Value-Chain-Accounting-Reporing-Standard_041613_2.pdf

25. Reporting our Scope 3 data
21
1 https://www.astrazeneca.com/media-centre/articles/2020/ambition-zero-carbon-22012020.html
Description: Scope 3 covers all other indirect emissions that occur in a companies value chain which are not covered
within Scope 1 or 2.

26. Scope 3 emissions categories
22

27. Category 1 – Purchased Goods and Services
• All procurement spend (Jan – Dec) is mapped to CEDA1
database to assign appropriate cost-based emission factors.
• Spend associated with other Scope 3 categories is removed, along with spend associated with primary data
• Formula for estimating emissions is as follows:
• Procurement Spend X CEDA Emission Factor = CO2e Emissions
• Primary data is collected one year in arrears for >90% of GES suppliers. A supply specific carbon intensity figure
replaces the CEDA emission factor for these suppliers [limited to Bulk Drug & Contract Formulation & Packaging procurement spend categories]
23
1
Comprehensive Environmental Data Archive (CEDA) provides information about embodied lifecycle emissions per unit spent on items used in close to 400 sectors of the economy. Updated annually to account for inflation
Description: All upstream (i.e., cradle-to-gate) emissions from the production of products purchased or acquired by
AstraZeneca in the reporting year. Products include both goods (tangible products) and services (intangible products).

28. Category 2 – Capital Goods
• All procurement spend (Jan – Dec) is mapped to CEDA1
Database to assign appropriate cost-based emission factors.
• Spend associated with other Scope 3 categories is removed
• Formula for estimating emissions is as follows:
• Procurement Spend X CEDA Emission Factor = CO2e Emissions
24
1
Comprehensive Environmental Data Archive (CEDA) provides information about embodied lifecycle emissions per unit spent on items used in close to 400 sectors of the economy. Updated annually to account for inflation
Description: Includes all upstream (i.e., cradle-to-gate) emissions from the production of capital goods purchased or
acquired by AstraZeneca in the reporting year.

29. Category 4 – Upstream Transportation & Distribution
• AstraZeneca currently collect primary air, sea, rail freight & European road freight data
• Emissions are calculated using the formula:
• Tonne.km X DEFRA1
specific emission factor = CO2e Emissions
• DEFRA emission factors are specific to freight type & include WTT2
emissions
• Air freight emission factors account for flight distance and include radiative forcing3
• Distance travelled – Short <500km, Medium > 500km & <3700km, Long >3700km
• Where primary data is unavailable, estimates are calculated using procurement spend and CEDA4
cost-based emission
factors i.e. Warehousing spend
25
1 Department for Environment, Food and Rural Affairs (DEFRA)
2 Well-to-tank (WTT)
3 There are two types of air-freight factors: with/without radiative forcing (RF), which is the influence of the other climate change effects of aviation (such as water vapour and nitrogen oxides). Organisations should include the
influence of RF in air-freight emissions to capture the maximum climate impact of their travel habits. However, it should be noted that there is very significant scientific uncertainty around the magnitude of the additional
environmental impacts of aviation.
4 Comprehensive Environmental Data Archive (CEDA) provides information about embodied lifecycle emissions per unit spent on items used in close to 400 sectors of the economy. Updated annually to account for inflation
Description: Transportation and distribution of products purchased in the reporting year, between AstraZeneca’s tier 1
suppliers

30. Category 6 – Business Travel
• AstraZeneca currently collect primary air data via BCD Travel
• Emissions are calculated using passenger per km DEFRA1
emission factors
• Emission factors are assigned based on:
• Distance travelled – Short <500km, Medium > 500km & <3700km, Long >3700km
• Haul class - Economy, Premium Economy, First & Business
• Emissions associated with our ‘greyfleet’ are included within business travel
• Direct emissions are calculated using market specific CO2
e per KM emission factors
• Well-to-Tank emissions associated with extraction, refining and transportation of the raw fuels before they are
used to power the transport mode are calculated using DEFRA CO2
e per KM emission factors
• Procurement spend multiplied by associated CEDA2
emission factor is used to estimate emissions not covered by the
primary data
26 1 Department for Environment, Food and Rural Affairs (DEFRA)
2 Comprehensive Environmental Data Archive (CEDA) provides information about embodied lifecycle emissions per unit spent on items used in close to 400 sectors of the economy. Updated annually to account for inflation
Description: Emissions from the transportation of employees for business related activities in vehicles owned or
operated by third parties, such as aircraft, trains, buses, and passenger cars.

31. Category 7 – Employee Commuting
• Emissions estimated based on average FTE’s at AstraZeneca sites.
Commuting
• Average country commuting distance X FTE (commercial employees excluded)
• Distance then proportion based on country specific public/private transportation figures
• Each category multiplied by associated DEFRA emission factors
Homeworking
• Number of homeworking days estimated based on function level assumptions
• Emissions estimated based on: kWh per month per FTE for gas use, desk electricty & lighting electricity
• Country specific emission factors used.
27 1 Department for Environment, Food and Rural Affairs (DEFRA)
Description: Emissions from the transportation of employees between their homes and their worksites. Also included
are emissions from homeworking

32. Category 9 – Downstream Distribution
Onward Distribution
• Calculation: (Gross weight of goods X 500km) X DEFRA1
emission factor
• Gross weight is the value transported by Freight & Logistics (air, sea, rail). Road fleet weight not included as
considered to be double counting.
• Average distance of transport (estimated 500km)
Patient Travel
• (Gross weight X weight of product) X CPSM2
emission factor
• Gross weight multiplied by estimated weight of product creates an estimated number of trips value
• CPSM2
emission factor is kgCO2e/single trip
28 1 Department for Environment, Food and Rural Affairs (DEFRA)
2 The Coalition for Sustainable Pharmaceuticals and Medical Devices (CSPM) Care Pathways 2015 (p17) – Self travel for elective care
Description: Emissions that occur in the reporting year from transportation and distribution of sold products in
vehicles and facilities not owned or controlled by AstraZeneca.

33. Category 11 – Use of Sold Products
• Emissions from the use of sold inhalation devices containing greenhouse gas propellant (HFA)
• Product production volumes
• Calculation is: Product production amount X (HFA fill weight X GWP)
29
Description: Emissions from the use of goods and services sold by AstraZeneca in the reporting year. AstraZeneca’s scope 3
emissions from use of sold products include the scope 1 and scope 2 emissions of end users. End users include both consumers
and business customers that use final products.

34. Insights into
AstraZeneca Scope 3
Data
3
30

35. Our environmental data is in the public domain
31

36. Supplier engagement on sustainability
32
https://www.astrazeneca.com/content/dam/az/PDF/Sustainability/2021/Sustainability%20Partner%20Guide%20and%20Framework.pdf

37. Challenges and
opportunities to
decarbonise the value
chain
4

38. Reduction opportunities and challenges across the value
chain
34
• Skills and awareness
• Lack of reporting/ accuracy of data
• Primary availability for some
categories
• Regulation as a barrier to process
change and adopting circularity
• Common approach/ metrics for LCA

39. Product stewardship in action
35

40. References & Links
• DEFRA Emission Factors: https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2020
• GHG Protocol: https://ghgprotocol.org/scope-3-technical-calculation-guidance
• IEA: https://www.iea.org/
• EGriD: https://www.epa.gov/egrid
• AZ Environmental Protection: https://www.astrazeneca.com/sustainability/environmental-protection.html
• AZ Supplier Sustainability Framework:
https://www.astrazeneca.com/content/dam/az/PDF/Sustainability/2021/Sustainability%20Partner%20Guide%20and%20Framework.pdf
• AZ Sustainability data summary: https://www.astrazeneca.com/content/dam/az/Sustainability/2021/pdf/Sustainability_Data_Summary_2020.pdf
36

41. Business as a Force for Good
– Putting shared value at the
heart of business strategies
22nd
October 2021

42. Key Facts
• Founded in 1935/ Privately owned
• Employees: 6,389; 2,119 in Italy
• Revenues: 2,229 M €
• R&D Investments: 448 M €
• Direct presence: 30 countries
• Sales with licensees: 59 countries
Chiesi Group Facts & Figures 2020
CONSOLIDATED REVENUES (million €)
EMPLOYEES
WORLDWIDE
Chiesi Annual & Sustainability Report 2020 on www.chiesi.com
Business as a Force for Good –
Putting shared value at the heart of
business strategies

43. Therapeutic focus
72%
7%
21%
Chiesi Group Facts & Figures 2020
7 R&D centres across the globe
Chiesi Annual & Sustainability Report 2020 on www.chiesi.com
Business as a Force for Good –
Putting shared value at the heart of
business strategies

44. Benefit Corporations and certified B corp: the concept of Shared Value
BUSINESS
VALUE
For profit
SHARED VALUE
For Benefit
SOCIAL
VALUE
No profit
Benefit
Corporation as a
legal form
• Continuously innovate towards
sustainability of processes and
practices.
• Improve the quality of life of patients
and people.
• Contribute to the development of
local communities in which the
company operates.
• Promote a conscious and sustainable
way of doing business, through
collaborative dialogue between
stakeholders.
Chiesi Annual & Sustainability Report 2020 on www.chiesi.com
• A third-party certification administered by the independent non-profit
organization B Lab.
• B Corps are companies that balance profit and purpose, meeting the highest
standards of social and environmental performance, public transparency,
and legal accountability.
Business as a Force for Good –
Putting shared value at the heart of
business strategies

45. Chiesi’s engagement for sustainability
Sustainable Development
Goals (SDGs) are a key
framework to define
institutions and companies’
long-term prospects.
COVID 19 is accelerating the
need for sustainable and
resilient business models.
Chiesi Annual & Sustainability Report 2020 on www.chiesi.com
Business as a Force for Good –
Putting shared value at the heart of
business strategies

47. Our strategy on Carbon Neutrality
OPTION 01
• Within all major business decisions, investigate options to eliminate carbon.
• Ensure design principles and specifications lead to low carbon design.
Avoid
OPTION 01 • Efficient use of energy within operations through energy management,
increasing energy efficiency measures throughout.
• Increase the resource efficiency per unit.
Reduce
OPTION 01
• Adopt on site renewable energy in all feasible areas of heat, power and
transport.
Substitut
e
OPTION 01
• Purchase of carbon credits.
Offsetting
RETURNS
ON
INVESTMENT
We are committed to becoming carbon neutral by 2030 on scope 1&2 emissions and by 2035 on scope 3 emissions
13
Business as a Force for Good –
Putting shared value at the heart of
business strategies

48. 100% TRANSPARENCY
Business as a Force for Good – Putting
shared value at the heart of business
strategies

49. Chiesi Press Release, May, 10 2021

50. The need to be transparent
NHS England
CHIESI
Request
environmental
information
through CDP
Measure the
impact to
improve
performance
We provide data on environmental impacts,
risks, opportunities, investments and strategies.
Chiesi has submitted the
climate change survey in
July
Climat
e
chang
e
Business as a Force for Good – Putting
shared value at the heart of business
strategies

51. Innovation for Carbon Minimal Inhalers
With the objective of perserving both
patient choice and the environment, we
have agreed to a €350 million investment
plan in order to introduce the first carbon
minimal pMDI by 2025.
A new generation propellant (HFA 152a)
with a low Global Warming Potential will be
adopted with the aim of reducing pMDIs
carbon footprint by 90% to a level within
the range of DPIs.
Now
2025
Panigone S, Sandri F, Nicolini G, “An Environmentally Sustainable, Patient-Centred Solution for Asthma & COPD”. ONdrugDelivery
Magazine, Issue 106 (Apr 2020), pp 14-19.
Chiesi Press Release, December, 4 2019
pMDIs carbon footprint reduced by 90%
Business as a Force for Good –
Putting shared value at the heart of
business strategies

52. • Business as a Force for Good –
Putting shared value at the heart
of business strategies

53. Thank You

54. NHS England and NHS Improvement
NHS Net Zero Supplier Roadmap to 2030
‘Measuring and Reporting Carbon Footprint for Medicines
Manufacturers’
22 October 2021
Claire Foreman, Director of Medicines Policy & Strategy
Alexandra Hammond, Head of Sustainable Procurement and Supply Chain

55. For a Greener NHS
51 |
Reaching the UK’s ambitions under the Paris
Climate Change Agreement could see:
• over 5,700 lives saved every year from
improved air quality,
• 38,000 lives saved every year from a more
physically active population
• over 100,000 lives saved every year from
healthier diets.
Why a Net Zero Health Service?

56. For a Greener NHS
52 |
Medicines Sustainability Programme: An Overview
Data and analytics
Communications
Direct emissions Indirect emissions
Inhalers Medical gases
Supply Chain
Further carbon emission
reductions from
optimisation
Medicines
Sustainability
Programme

57. For a Greener NHS
53 |
Overview of the Inhalers Workstream
Manufacturing
low carbon
propellants
Inhaler prescribing
and demand
behaviours
Greener inhaler
disposal
• To improve the outcomes
of patients who use inhalers
while introducing measures to
lower carbon emissions.
• To ensure the correct inhaler is
prescribed to the individual and
where clinically appropriate to
ensure this is a low carbon
device.
• To reduce excessive use of
SABA inhalers (indicated by high
rates of SABA prescriptions)
while lowering NHS carbon
emissions and prescribing lower
carbon SABA inhalers.
• Enable and encourage patients to
return their used inhalers to
pharmacies, so that they can be
incinerated.
• To identify innovative ways we
can support patients to return their
inhalers, taking into consideration
barriers certain patient cohorts
may face.
• To support pharmacies to collect
and destroy used inhalers.
• Support and encourage
manufacturers to develop
and release to market lower
carbon propellant inhalers.
• To understand the potential
financial implications and
carbon savings by
introducing and adopting
these news products

58. For a Greener NHS
54 |
Overview of the Anaesthetics Workstream

59. For a Greener NHS
55 |
Next steps for the Medicines Sustainability Programme
• Further recruitment to a dedicated Medicines Net Zero team which will sit as part of
the Medicines Policy Unit, working closely with commercial, analytical and central
Greener NHS programme teams
• Building on the outputs of two focus groups held in the summer with NHS
stakeholders and interested organisations to identify, scope and plan additional
priority areas of work for the wider programme and support the development of
action –focussed delivery plans
• Continue to work closely with industry to identify opportunities for greater
collaboration to achieve Medicines Net Zero ambitions relating to the supply chain
faster and in a more impactful way
• Continue to support NHS organisations and systems with practical actions and
support to deliver on Medicines Net Zero targets in a consistent way e.g. through
sharing of case study examples, practical tools etc.
• Continue to understand and evolve our methodologies and approach to measuring
carbon emissions from medicines

60. Net Zero and Sustainable Procurement and
Supply Chain: Background

61. For a Greener NHS
57 |
Sixty-two percent of the NHSEI carbon emissions occur in the supply chain. Nearly one-third (30%) of
emissions come from medicines, chemicals and medical equipment.
The NHSE&I Supply Chain (outlined in red) accounts for 62% of the NHSE&I
Carbon Footprint, known as the Carbon Footprint Plus.
(Source: Net Zero report)
Location of suppliers by category: the NHSE&I Supply Chain emissions are
global, but a large proportion occur in the UK. (Source: 2016 UK-MRIO model)
Background: The NHSEI Supply Chain

62. For a Greener NHS
58 |
Emissions reduction
Residual
Present day emissions
Suppliers Are Key to Achieving Our Ambition
In the Net Zero report, 13 interventions were identified within the Supply Chain workstream. These form the foundation of the sustainable
procurement and supply chain workstream programme plan for the next five years.
While the NHS can modify the way it
consumes goods and services to reduce
carbon emissions, part of our supply chain
emissions can only be reduced by suppliers
themselves. This is the focus of the “end of
the decade commitment” to “no longer
purchase from suppliers that do not meet
or exceed our commitment to net zero”
(mostly impacting the areas outlined in red)

63. Net Zero Procurement and Supply Chain:
Accelerating Carbon Reduction

64. For a Greener NHS
60 |
Net Zero Report: The Opportunity One Year On

65. For a Greener NHS
61 |
Amanda Pritchard
Chief Executive Officer of NHS
England, 30 September 2021
“The effects of poor air quality and climate
change are already being seen in our GP
practices, and in our hospitals, and it is
absolutely right that we are part of the
solution.
But we can’t do this alone,
which is why it is so important that we
throw down the gauntlet today to our
suppliers too.”

66. For a Greener NHS
62 |
Building Net Zero into NHS procurement:
The Supplier Roadmap
2022
NHSE&I will launch the Sustainable Supplier
Framework
NHS will adopt PPN 06/20 so that all NHS tenders
include a minimum 10% net zero and social value
weighting
April
2024
April
2027
All suppliers* will be required to publicly report
emissions and publish a carbon reduction plan
aligned to the NHS’ net zero target for their direct
emissions, irrespective of contract value
April
2028
All suppliers* will be required to publicly report
emissions and publish a carbon reduction plan
aligned to the NHS’ net zero target, for both their
direct and indirect emissions (Scope 1, 2, and 3)
April
2030
All suppliers will be required to demonstrate
progress in-line with the NHS’ net zero targets,
through published progress reports and
continued carbon emissions reporting
April
2023
NHS will adopt PPN 06/21 so that all
contracts above £5m will require
suppliers* to publish a carbon reduction
plan for their direct emissions as a
qualifying criteria
April
2022
2045
New requirements will be introduced
overseeing the provision of carbon
footprinting for individual products supplied to
the NHS
• Net Zero Supply Chain
• Net Zero NHS
*To account for the specific barriers that Small & Medium Enterprises and Voluntary, Community & Social Enterprises encounter, a two-year grace period on the requirements leading up to
the 2030 deadline, by which point we expect all suppliers to have matched or exceeded our ambition for net zero.

67. For a Greener NHS
63 |
Evergreen: The NHS Sustainable Supplier Framework
• Acknowledge and comply with the NHS Terms and Conditions and Supplier Code of Conduct
• For contracts over £5 mln per annum, suppliers must have a publicly available carbon reduction plan from April 2023
• Large suppliers must have a public commitment to scopes 1 and 2 targets and publicly available carbon reduction plan by April 2024
• All suppliers (incl. SME/VCSE) must have a public commitment to scopes 1 and 2 targets and publicly available carbon reduction plan
by April 2026
Minimum expectation
of suppliers
Meets the minimum expectation of all suppliers, plus:
• Has publicly committed to robust GHG reductions targets in line with NHS targets for Scopes 1, 2 (net zero by 2040 with 80% reduction
by 2032) and has publicly published a carbon reduction plan that includes carbon emissions reporting
• Has a public ethical sourcing policy and conducts a supply chain risk assessment
Level 1: Early Adopter
Operational emissions
targets and plan
All of level 1, plus:
• Publicly demonstrates progress towards net zero goals through quantifiable GHG emission reduction
• Has publicly committed to robust GHG reductions targets in line with NHS targets Scope 3 (net zero by 2045 with 80% reduction by
2039) and has publicly published a carbon reduction plan that includes carbon emissions reporting
• Conducts modern slavery audits in hotspot areas of their supply chain
Level 2: Mature
Comprehensive targets,
plans, and action
Level 3: Influencer
Leaders in sustainability
All of level 2, plus:
• Recognised as a high performer by a global sustainability reporting platform (e.g. CDP A rating, Supplier Reg, B Corp, EcoVadis)
• Has publicly set targets in line with NHS ambitions that are independently verified
• Can demonstrate active participation in Evergreen supplier collaboration activities
And at least one of the following:
• Embeds circular economy principles in and measures the carbon footprint of products and shares that with the NHS
• Can demonstrate other proactive actions to show leadership across the UN Sustainable Development Goals (SDGs)
Evergreen creates a single centralised source of information recording how suppliers are aligning with our net zero trajectory.
Suppliers will be able to self-certify their achievement of our requirements, initially voluntarily.

68. For a Greener NHS
64 |
Product innovation and supplier
recognition
Learning from our suppliers’
progress and scaling the
approach
Our Sustainability Asks
Supplier sustainability
Framework
Supporting our suppliers
Demonstrate progress towards
net zero and circular economy
Be transparent
on carbon emissions
Set net zero targets and
cascade action
Supplier Engagement: A Partnership-Based Approach

69. Alignment with UK Government Policy

70. For a Greener NHS
66 |
Adopting ‘PPN 06/20’: Net Zero is a Key Part of
the Social Value Model
The adoption by the
whole NHS of Public
Procurement Note
(PPN) 06/20 will ensure
Net Zero is embedded
in all procurement
decisions
By ensuring that a minimum evaluation
weighting of 10% is applied to all new
contracts, the NHS will be able to
demand continuous improvement from
our suppliers to deliver on net zero and
social value.
PPN 06/20 came into effect from January 2021. It
mandates that a minimum weighting of 10% of
the total score for the tender evaluation should
apply to social value across five themes:
• Fighting climate Change
• Tackling Economic Inequality
• COVID-19 recovery
• Wellbeing
• Equal Opportunity
NHSEI has adopted the PPN
06/20 for non-medicines
contracts from April 2021.
From April 2022, all NHS tenders will require
the inclusion of a minimum 10% net zero and
social value weighting – net zero will be
required in all procurements.

71. For a Greener NHS
67 |
Adopting PPN 06/21: Taking account of Carbon Reduction Plans in
the procurement of contracts above £5m
In April 2023, the NHS will adopt PPN 06/21 Taking Account of Carbon Reduction Plans, requiring all suppliers of new contracts
with an anticipated value above £5 million per annum to publish a carbon reduction plan.
Application of this PPN
reflects a central
Government
commitment that will
come into effect from 30
September 2021.
Analysis of key supplier
markets has informed the
development of the NHS
approach and timing,
which gives suppliers an
additional 18 months to
prepare for its
application.
From April 2024, this will
apply to all contracts with
large companies, and
from April 2026, will
include SMEs and
VCSEs.

72. NHS England and NHS Improvement
Thank you
Follow us on | Search “NHS Procurement Transformation”
ClaireForeman@nhs.net
Alexandra.Hammond2@nhs.net
Draft for discussion

73. Panel Q&A

74. www.ktn-uk.org
Thankyou!
karen.wilkinson@ktn-uk.org
Medicines Manufacturing Challenge Community:
https://ktn-uk.org/programme/medicines-manufacturing-challenge-community/