Delhi, 20 August 2019: Novartis is pioneering a new approach to how it procures and uses energy. Recognizing that Novartis is part of a broader energy system, and that this energy system is changing rapidly, they are working with their energy and technology providers and supply chain partners, to develop an integrated energy strategy which takes into consideration all energy uses across its value chain, as opposed to a traditional energy strategy which is inward-looking and only focusses on company operations.
Approximately 80% of global CO2 emissions can be attributed to the way we source our energy. However, the energy sector worldwide is experiencing a rapid transformation now - driven by newer technologies, innovative business models, the need to combat climate change and to address concerns of energy supply. Leading companies are leveraging this energy system transformation to drive their companies to become more efficient, more circular and low-carbon.
Through its New Energy Solutions project, WBCSD provides support and guidance for companies to develop integrated low-carbon energy strategies.
“Energy users can take a strategic approach in the way that they source their energy and then manage the energy to make their business more low-carbon, more efficient and more circular. An integrated strategy is two-fold. Firstly, companies should involve all relevant functions from their business from strategy, procurement, sustainability, manufacturing and from finance and secondly this means that companies should engage with their supply chain as well as their customers in unlocking new business opportunities with these new partners,” said Mariana Heinrich, Manager, Climate & Energy at WBCSD.
Pioneering this approach, Novartis and WBCSD organized a workshop on 27 June 2019 at the Novartis Knowledge Centre in Hyderabad. It brought together the Novartis strategy, finance, energy and procurement teams along with the managers of their tier 1 and tier 2 energy suppliers in India, manufacturing suppliers and representatives from other pharmaceutical companies.
Through this workshop, key people from Novartis and their Indian value chain learned about Novartis’ approach to energy procurement and management, India's commitment in carbon reduction, and the technology solutions available in the market. Technologies presented at the workshop were:
- Procurement of electricity through renewable sources, state-wise power tariffs, commercial benefits of renewables and an overview of Power Purchase Agreements.
- E-Mobility and upcoming policies, economic viability of electric vehicles (EVs), and the benefits of EV-only employee transport services.Trigeneration solutions that produce electricity, heat and cooling in one process.
- Concentrated solar thermal to generate heat and steam, kitchen solutions and solar drying of Effluent Treatment Plant Sludge.
- Energy efficiency in pharmaceutical processes and utilities.
“It is not about we (Novartis) and them (our suppliers), it is about us and the difference we can make. We see our role as being a catalyst for positive change around environmental sustainability,” said Daniela Kessler, Head of Environmental Supply Chain, Global HSE, Novartis.
Find out more about WBCSD’s Guidelines for an Integrated Energy Strategy
Find out more about WBCSD’s India activities
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