Sandoz Sets SBTi-Validated Targets to Cut Operational Emissions 42% by 2030

Swiss pharmaceutical company Sandoz has announced new interim climate targets validated by the Science Based Targets initiative, including a 42% reduction in Scope 1 and 2 emissions by 2030 and a 63% reduction by 2035, both measured against a 2024 baseline. The company is also targeting 79% of suppliers by emissions to hold science-based targets by 2030.

Sandoz's new targets follow a 2024 commitment to set interim science-based carbon emission reduction targets with the SBTi, advancing the company's path to net zero by 2050. Between 2023 and 2025, the company reported a 3% absolute reduction in emissions and a 15% improvement in emissions intensity. The targets cover purchased goods and services, capital goods, and upstream transportation and distribution for the supplier science-based targets requirement. Sandoz said it has established a 'sustainability blueprint' encompassing energy efficiency improvements, renewable energy procurement, packaging circularity, logistics decarbonisation, and supplier engagement.

As a producer of generic and biosimilar medicines, Sandoz operates across a complex global supply chain with significant emissions exposure in raw material production and logistics. The SBTi validation of its interim targets provides independent credibility for its climate commitments, which is increasingly important for pharmaceutical companies facing customer and investor expectations around Scope 3 emissions. Operating sustainably is described by the company as a key contributor to its purpose of improving patient access, as well as a driver of operational efficiency and cost reduction.

The pharmaceutical sector's engagement with science-based targets is growing as large hospital systems, insurers, and government procurement agencies increasingly require climate credibility from their suppliers. Sandoz's publicly validated targets set a benchmark for generics manufacturers, a segment in which Indian producers — including major exporters to regulated markets — are significant participants. The emphasis on supplier-level SBT adoption may translate into increased expectations for Indian API and formulation manufacturers operating in Sandoz's value chain.

Key figure — 42% reduction in Scope 1 and 2 emissions targeted by Sandoz by 2030 on a 2024 baseline