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NEW REPORT FROM ECONOMIST IMPACT:
Climate Change Threatens Respiratory Patients’ Quality of Life Stretching Beyond Physical Health to Overall Wellbeing

“Cleaner air, clearer lungs, better lives: exploring the intersection of air quality, health inequalities and lung health” focuses on how respiratory patients experience the adverse effects of poor air quality, and recognises that climate-related factors have a significant impact on lung health.

We need to act now to halt the climate health crisis!

Click below to read the full report
Full report

THE CLIMATE CRISIS IS A HEALTH CRISIS

We all know global warming has devastating effects on the planet and on human health1. Governments, NGOs, international organisations, and citizen groups are calling for urgent, pervasive change.

Many companies are joining the movement, responding with bold and far-reaching sustainability announcements. Their commitments talk passionately about reducing the carbon footprint of operations, people and products and many promise to also uphold quality, access and safety for end users.

But are these words enough?

We invite accountability

Behind the words…

We’ve looked at what the terms used really mean.2

“Net zero”

In 2021, the Science Based Targets initiative (SBTi) developed the first global science-based standard for companies to set net zero targets3 by:

  • Reducing scope 1, 2, and 3 emissions4 to zero or to a residual level that is consistent with reaching net-zero emissions at the global or sector level in eligible 1.5°C-aligned pathways.
  • Neutralising any residual emissions at the net-zero target year and any greenhouse gas (GHG) emissions released into the atmosphere thereafter.

“Carbon neutral”

Means having a balance between emitting carbon and absorbing carbon from the atmosphere in carbon sinks – which are systems that absorb more carbon than they emit. There are no specific requirements on the percentage of greenhouse gas emissions to be reduced in order to achieve carbon neutrality. This is different from Net Zero, which specifies the percentage of emissions reduction required.

“Climate neutral”

Means reducing (GHG) and all other radiative emissions forcing to have no net effect on the climate system. While carbon neutrality focuses on CO2 only, climate neutrality takes into consideration all types of GHG emissions. Climate neutrality has been defined by the UN’s IPCC, but there are no criteria or measurements yet.

Sustainability commitments stand or fall based on the actions taken to reach the goal. If these actions are not independently verified by international standards, the commitments themselves are just words5.

We believe in action over words

At Chiesi, we stand with all those doing their part to halt climate change. Our strong beliefs define our actions, and the way we do business. That means we make commitments which are clear and can be measured. We also commit to report transparently on our environmental impact and progress every year6.

We gain yearly verification of our GHG inventory by a third party against ISO14064 standard and GHG Protocol.

Chiesi’s reduction targets were approved in April 2021 by the Science-Based Target Initiative (SBTi)7 and are in line with the Paris Agreement’s most ambitious goal to limit global temperature rise to 1.5°C above pre-industrial levels by 21008.

And today, we are aiming to go beyond our verified carbon neutrality target.

When Chiesi unveiled its plan to become carbon neutral in April 2021, carbon neutrality was the most ambitious science-based standard at the time. Now, we are aiming to stretch beyond this target, striving towards achieving net zero emissions, based on the latest Corporate Net Zero Standard by SBTi9.

Chiesi’s emissions reduction plan

-90%

direct greenhouse gas emissions generated (scope 1) and emissions associated with the purchase of electricity and heat (scope 2) by 2030, compared to 2019.

This will be achieved by reducing processes emissions with our abatement system – a specialized engineering or environmental control system used to reduce or eliminate the release of pollutants, contaminants, or nuisances into the environment. Our abatement system specifically captures propellant losses during manufacturing phases, avoiding the loss of these gases into the atmosphere. We also have a target to constantly improve energy efficiency and achieve 100% renewable electricity consumption by 2025. In 2022, 99% of electricity consumption came from renewable sources across all Chiesi sites apart from one. Our mobility team is working to transition our fleet to electric vehicles to reduce emissions from mobile sources.

-90%

absolute scope 3 greenhouse gas emissions from the use of sold products by 2035, compared to 2019, thanks to the introduction of a low global warming potential propellant used in our inhaler devices10.

100% Transparency

A commitment to disclose our emissions inventory through the Carbon Disclosure Project11 including direct and indirect emissions (scope 1, 2 and 3) annually. This will make Chiesi even more transparent and benchmark our emissions inventory against industry peers.

In 2021, we successfully reduced our direct and indirect emissions compared to the reference year of 2019, as planned. However, our emissions in 2020 were significantly impacted by the Covid-19 pandemic and emissions from our company’s car fleet (Scope 1 emissions) increased between 2020 and 2021. This was due to employees returning to the office and the overall business car fleet growing again at the Group level.

As a B Corp, Chiesi Group is serious about behaviour change. We believe protecting patient health and the environment should not be a matter of compromise. We will not only reduce our environmental footprint by managing our operations but by rethinking and innovating our products – for the benefit of patients, people and planet.

With the decision to change our legal status to a Benefit Corporation12, Chiesi has made sustainability contractually and legally binding, by incorporating a dual purpose for the creation of shared value, and therefore to generate value for its business, for society and the environment.

By achieving B Corp certification in 2019 and re-certification in 202213, measuring and reporting both its positive and negative impact transparently and amplifying it throughout our value chain through the Code of Interdependence14, Chiesi is going far beyond carbon reduction.

In March 2021, Chiesi joined the B Corp Climate Collective (BCCC), committing to the United Nations Framework Convention on Climate Change (UNFCCC) “Race to Zero”15. This is a global campaign to rally leadership and support from businesses, cities, regions, and investors for a greener future. The objective is to build momentum around the shift to a decarbonised economy.

In May 2021, Chiesi unveiled its plan to become carbon neutral, the most ambitious science-based standard at the time16. Our carbon neutrality strategy already had a strong focus on emissions reduction, so this was a natural evolution of our existing plans.

In October 2021, following the publication of the new SBTi Corporate Net-Zero Standard Chiesi decided to transition from carbon neutrality to the new standard of net zero emissions. This choice has increased our ambitions: we are now working to revise our reduction targets to fully adopt the more stringent requirements of the new standard.

In June 2022, Chiesi signed17 the White House Climate Pledge to decarbonise the healthcare sector in the US and reduce greenhouse gas emissions by 50% by 203018. In December 2022, Chiesi was included on CDP’s Climate Change A List19 for its commitment to climate action and transparency. Only 283 out of 15,000 companies who submitted data received the A grade recognition.

We are proud to have taken decisive and ambitious action to ensure patients can continue to access the therapeutic options that best suit their needs, whilst simultaneously innovating our production to find the most environmentally conscious solution available20. We strongly believe that patients should not have to shoulder the burden of environmental responsibility when considering treatment options that affect their health.

As we continue to set more ambitious emissions reduction targets, our sustainability journey remains an ongoing process. We are dedicated to constant improvement, consistently raising the bar for ourselves, and committing to increasingly challenging goals.21

We have a clear action plan to reduce our emissions where possible: our mitigation strategy focusses on avoiding and reducing carbon-intensive processes so that we can reach our targets without the need for significant emissions removals. As set out by the SBTi, an overreliance on carbon offsets creates multiple problems around land use, equity, fairness, and climate justice22. SBTi’s net-zero standard focusses on significant emissions reductions of at least 90%, leaving a small proportion which can be accounted for via emission neutralisation23. Our plan is bold and ambitious, and we believe in it.

In the face of a global climate crisis, we must all share the burden of action.

Breaking down Chiesi’s commitments and progress

Products and Patient Use

In 2019, Chiesi was the first pharmaceutical company to publicly announce a solution to address the carbon footprint of pressurized metered dose inhalers (pMDIs) while continuing to invest in dry powder inhaler (DPI) technology to provide the full range of therapeutic options that patients need33. The new formulation replaces the current hydrofluorocarbon (HFC) propellant (HFA 134a) with a new low global warming potential propellant (HFA 152a) which is in development by Koura. Chiesi is actively investing €350M to fast-track development and bring this innovative solution to market. By using the new propellant, Chiesi will reduce the carbon footprint of the product by 90%.

In May 2022, Chiesi completed pharmacokinetic (PK) studies on a leading product with positive results showing evidence of similar lung deposition, systemic exposure, safety and tolerability of the new formulation when compared to the current one34. With these first PK studies completed, Chiesi is on track in the development of the new platform of carbon minimal pMDIs, to enable a seamless transition for patients and to benefit the planet.

In 2021, Chiesi adopted 100%35 use of Forest Stewardship Council (FSC) paper36 for all the secondary packaging boxes.

With the aim of developing products that are sustainable by design, the Life Cycle Perspective (LCP) was launched in 2019 and was extended to all products in R&D in 2020. LCP will continue to be implemented in the direction of creating a sustainable, future-fit R&D process where sustainability is integrated from the beginning through green design. By collecting inputs from the different development phases, the LCP tool enables informed choices through the measurement of the sustainability profile of each product. The tool analyses four main areas – chemistry, design and materials, natural resources and ethics – and provides a score for each area. The tool is also being applied to products already on the market to further explore life cycle management opportunities to improve their sustainability profile.

Human Transportation

In terms of mobility, Chiesi aims to reduce the environmental impact of its transportation structure. This includes encouraging our employees to opt for more environmentally friendly transportation means, such as cycling or using public transport.

Chiesi has developed a “Human Transportation Policy” along three key streams:

  • Business Travel: Chiesi aims to limit business travel to what is strictly necessary as in many cases, traveling can be replaced by digital meetings. When traveling is necessary, Chiesi supports more sustainable travel options (i.e. taking a train instead of flying).
  • Commuting: We aim to facilitate the use of alternative means of transport for commuting rather than a car, fostering cycling or the use of public transport. Chiesi offers several alternatives to the use of private cars to its employees: contributions for train subscription, free urban bus subscription, dedicated shuttles to/from our facilities; free secure bike parking (at the Train Station); cyclist services (shower, changing rooms, dedicated storage); and incentives (app with cashback for each certified sustainable home-to-work journey).
  • Car Fleet: We have put in place a global project for the electrification of the car fleet that relies on new technologies and involves selected partners. In Italy, the electrification project of our Sites is almost complete and the replacement of fossil fuel cars with plug-in hybrid or electric cars is following our plan. We are introducing home charging points and increasing training and education opportunities for our employees on sustainable driving.

Buildings and industrial operations

The Better Building Program is a project focused on improving the sustainability performance of Chiesi sites. The starting point of this program is a Sustainability Assessment, which evaluates the sustainability impact of our existing buildings in terms of people welfare, mobility policies, waste management, energy and water consumption. This assessment is a benchmark with other companies both locally and internationally and it aims to measure Chiesi buildings using a common metric in order to evaluate if the minimum requirements for a Leadership in Energy and Environmental Design (LEED) certification32 are met.

The main targets of the program are:

  • Creating awareness and consciousness among the people using those buildings, so that they can actively contribute to a better future;
  • Making buildings sustainable when evaluating existing locations and designing sustainable buildings and offices when building new ones. In this way, Chiesi offices become models of local biosphere restoration (Planet) and to improve people’s wellbeing (People).

We achieve progress by taking into account the entire building lifecycle, from its design to construction and, finally, to its operation, by carrying out continuous monitoring to track the progress of improvement processes. The program is designed to develop a conscious community through a proactive ecosystem, where everyone of us is a leader and a contributor. Buildings are initially evaluated during an assessment phase, which is followed by a specific Action Plan aimed at improving the building’s environmental performance. After the implementation of the Action Plan, the building remains in a path of continuous improvement, which is also driven by a process of best practice sharing among different sites. Seven operational global green guidelines were drawn up for sharing best practices for the management of existing buildings and the construction of new ones, covering the following aspects: office purchases, food and beverage, facility maintenance, green cleaning, green IT, site management, pest control and general management.

To date, the Better Building program has been implemented in 31 of our existing locations worldwide; in 2023 we plan to extend the program to further 12 locations.

  • Parma HQ: LEED Platinum, ISO 14001, ISO 45001
  • Parma R&D Centre: LEED Gold, ISO 14001, ISO 45001, ISO 50001
  • Blois (production site): LEED Gold, ISO 14001, ISO 45001, ISO 50001
  • Parma (production site): ISO 14001, ISO 45001, ISO 50001
  • Santana de Parnaiba (production site): ISO 14001, ISO 45001, ISO 50001
  • Fontevivo (Logistic site): LEED Gold, ISO 14001, ISO 45001, ISO 50001

LEED Certification: in 2020, Chiesi’s new headquarters in Parma was awarded the highest-level LEED Platinum for new building design and construction protocol. The Parma Research Center was awarded the LEED Gold for Existing building and operation maintenance (EB:OM) protocol and certification. This effort has gradually scaled up to all our local sites, with the aim of reaching and connecting all our sites.

In 2021, three sites are undergoing the path to be LEED standard certified: Fontevivo logistics site (Italy), Pilotis building (Italy), Blois manufacturing site (France). There are an additional four projects under alignment with Chiesi internal standards: Shanghai new location (China), new Biotech facility (Italy), new packaging department (Italy), and Stability Hub (Italy). Six sites are supported in applying Green Operating Guidelines.

Propellant capture (industrial operations): abatement systems have now been installed in the Parma and Blois manufacturing sites; since the beginning of 2021 in Parma and 2023 in Blois. This system is able to condensate the propellant losses in the manufacturing phases, preventing the F-gas propellant from being released into the atmosphere. The propellant recovered is then sent to a high temperature incinerator that safely and effectively destroys it.

Emissions removal

The climate crisis is confronting us with urgent and dramatic choices. Reducing emissions is an immediate and fundamental commitment that all businesses need to take to avoid the average global temperature increasing beyond 1.5 degrees.

However, we will also need to remove part of the CO2 that is already in the atmosphere. Chlorophyll photosynthesis is among the best technologies for CO2 removal29 – in other words: trees. During the November 2021 G20 meeting, the participating countries committed to planting 1 trillion trees30.

Chiesi is doing its part by developing important projects regarding the planting of trees. An example of this commitment is the not-for-profit Forestry Consortium KilometroVerdeParma (‘Green Kilometer Parma’), a project of urban and suburban reforestation in the province of Parma. Thanks to the involvement of all social groups, as well as citizens, students, companies, public administrations, associations and landowners, the Consortium aims to create permanent forests which, while capturing CO2, could also positively impact climate change that is already underway. This would help improve air quality, mitigate heatwaves and urban heat, promote better water management and the societal appreciation of green areas, and raise awareness within the whole community of protecting and taking care of the environment. In the three years of activity of the Consortium, over 55,000 trees have been planted, amounting to a reforested surface area of approximately 49 hectares. Chiesi, one of the co-founders, is actively taking part in the consortium activities, by setting up reforestation initiatives31.

Energy

Chiesi’s energy policy is focused on both energy purchasing and energy consumption.

Electricity is purchased according to sustainable models accredited by the reference bodies and 99% of electricity consumed comes from renewable energy sources. Where possible, we are using biogas and bioethanol as energy sources, instead of non-renewable fuels to increase the amount of energy we produce ourselves.

We have adopted special models for buying electricity that offer more support for eco-friendly changes and the development of renewable energy (Power Purchase Agreement). These models provide flexibility and quick responses to meet our energy needs sustainably.

With regards to Scope 2 emissions, our strategy is focused on improving energy efficiency (thanks to the implementation of ISO 50001: 2018 energy management systems) and fostering 100% electric energy from renewable sources. In 2022, 99% of electricity consumed by Chiesi was from renewable sources, up from 93% in 2021. All sites, except for one and the off-site car fleet charging stations, managed to purchase 100% renewable electricity24. Moreover, Chiesi aims to reduce scope 1 and 2 emissions through the electrification of the company’s car fleet (both assigned cars and pool cars used for business travel).

Supply Chain and Logistics

Another area where we aim to create an impact in terms of GHG emission reduction is our value chain. Encouraging our suppliers and partners to reduce their carbon footprints also helps Chiesi to reach its own climate targets. To this end, we share information with our suppliers on sustainability topics and advise them on possible pathways towards achieving their goals and emissions reductions targets.

Chiesi’s Code of Interdependence is a co-created code of conduct for Chiesi suppliers25 developed in 2019 with our strategic partners. It aims to restructure the relationship between Chiesi and its suppliers from a shared value perspective. The Code is based on the principles of the B Corp movement, but also those of the Pharmaceutical Supply Chain Initiative (PSCI) 26, the International Labour Organization (ILO)27, and the 2030 Agenda for Sustainable Development28. With this Code, we define shared guidelines and require every part of Chiesi’s Value Chain to adhere to a common set of principles to achieve a more sustainable and inclusive business model.

From 2020, a specific contractual clause dedicated to the Code of Interdependence acceptance and inspiration has been included at Group level in all our new third-party agreements.

In 2022, the Code of Interdependence was revised to include two new sustainable development goals (SDGs), now reaching 11 SDGs in total. These new additions include UN SDG #5 Gender Equality, and UN SDG #11 Sustainable Cities and Communities. By incorporating such a large number of SDGs into the Code, Chiesi ensures we are always pushing the boundaries further, to deepen our impact while guiding and supporting our suppliers to do the same. Several partners of ours have been inspired to follow our lead to start the process of B Corp certification.

We designed the Logistics Impact Meter (LIM), a tool to assess the effects on the environment, people and communities of all actors in logistics and distribution operations and refers to best practices and innovative solutions available. Thanks to the LIM, we mapped our logistic network and identified the parameters that determine the impact of each actor (warehouses, hub, transit points). Within the corporate supply chain department some procedures have already been reviewed: for example: when possible, sea shipments are preferred to air, and sustainability is a key point in the selection of logistics partners. Through the involvement of Chiesi’s local sites on our sustainability journey, we are evaluating logistics partners and looking for optimisations with the final target to reduce our GHG emissions, with the aim to find the best sustainable solutions for our supply chain.

Products and Patient Use

In 2019, Chiesi was the first pharmaceutical company to publicly announce a solution to address the carbon footprint of pressurized metered dose inhalers (pMDIs) while continuing to invest in dry powder inhaler (DPI) technology to provide the full range of therapeutic options that patients need33. The new formulation replaces the current hydrofluorocarbon (HFC) propellant (HFA 134a) with a new low global warming potential propellant (HFA 152a) which is in development by Koura. Chiesi is actively investing €350M to fast-track development and bring this innovative solution to market. By using the new propellant, Chiesi will reduce the carbon footprint of the product by 90%.

In May 2022, Chiesi completed pharmacokinetic (PK) studies on a leading product with positive results showing evidence of similar lung deposition, systemic exposure, safety and tolerability of the new formulation when compared to the current one34. With these first PK studies completed, Chiesi is on track in the development of the new platform of carbon minimal pMDIs, to enable a seamless transition for patients and to benefit the planet.

In 2021, Chiesi adopted 100%35 use of Forest Stewardship Council (FSC) paper36 for all the secondary packaging boxes.

With the aim of developing products that are sustainable by design, the Life Cycle Perspective (LCP) was launched in 2019 and was extended to all products in R&D in 2020. LCP will continue to be implemented in the direction of creating a sustainable, future-fit R&D process where sustainability is integrated from the beginning through green design. By collecting inputs from the different development phases, the LCP tool enables informed choices through the measurement of the sustainability profile of each product. The tool analyses four main areas – chemistry, design and materials, natural resources and ethics – and provides a score for each area. The tool is also being applied to products already on the market to further explore life cycle management opportunities to improve their sustainability profile.

Human Transportation

In terms of mobility, Chiesi aims to reduce the environmental impact of its transportation structure. This includes encouraging our employees to opt for more environmentally friendly transportation means, such as cycling or using public transport.

Chiesi has developed a “Human Transportation Policy” along three key streams:

  • Business Travel: Chiesi aims to limit business travel to what is strictly necessary as in many cases, traveling can be replaced by digital meetings. When traveling is necessary, Chiesi supports more sustainable travel options (i.e. taking a train instead of flying).
  • Commuting: We aim to facilitate the use of alternative means of transport for commuting rather than a car, fostering cycling or the use of public transport. Chiesi offers several alternatives to the use of private cars to its employees: contributions for train subscription, free urban bus subscription, dedicated shuttles to/from our facilities; free secure bike parking (at the Train Station); cyclist services (shower, changing rooms, dedicated storage); and incentives (app with cashback for each certified sustainable home-to-work journey).
  • Car Fleet: We have put in place a global project for the electrification of the car fleet that relies on new technologies and involves selected partners. In Italy, the electrification project of our Sites is almost complete and the replacement of fossil fuel cars with plug-in hybrid or electric cars is following our plan. We are introducing home charging points and increasing training and education opportunities for our employees on sustainable driving.

Buildings and industrial operations

The Better Building Program is a project focused on improving the sustainability performance of Chiesi sites. The starting point of this program is a Sustainability Assessment, which evaluates the sustainability impact of our existing buildings in terms of people welfare, mobility policies, waste management, energy and water consumption. This assessment is a benchmark with other companies both locally and internationally and it aims to measure Chiesi buildings using a common metric in order to evaluate if the minimum requirements for a Leadership in Energy and Environmental Design (LEED) certification32 are met.

The main targets of the program are:

  • Creating awareness and consciousness among the people using those buildings, so that they can actively contribute to a better future;
  • Making buildings sustainable when evaluating existing locations and designing sustainable buildings and offices when building new ones. In this way, Chiesi offices become models of local biosphere restoration (Planet) and to improve people’s wellbeing (People).

We achieve progress by taking into account the entire building lifecycle, from its design to construction and, finally, to its operation, by carrying out continuous monitoring to track the progress of improvement processes. The program is designed to develop a conscious community through a proactive ecosystem, where everyone of us is a leader and a contributor. Buildings are initially evaluated during an assessment phase, which is followed by a specific Action Plan aimed at improving the building’s environmental performance. After the implementation of the Action Plan, the building remains in a path of continuous improvement, which is also driven by a process of best practice sharing among different sites. Seven operational global green guidelines were drawn up for sharing best practices for the management of existing buildings and the construction of new ones, covering the following aspects: office purchases, food and beverage, facility maintenance, green cleaning, green IT, site management, pest control and general management.

To date, the Better Building program has been implemented in 31 of our existing locations worldwide; in 2023 we plan to extend the program to further 12 locations.

  • Parma HQ: LEED Platinum, ISO 14001, ISO 45001
  • Parma R&D Centre: LEED Gold, ISO 14001, ISO 45001, ISO 50001
  • Blois (production site): LEED Gold, ISO 14001, ISO 45001, ISO 50001
  • Parma (production site): ISO 14001, ISO 45001, ISO 50001
  • Santana de Parnaiba (production site): ISO 14001, ISO 45001, ISO 50001
  • Fontevivo (Logistic site): LEED Gold, ISO 14001, ISO 45001, ISO 50001

LEED Certification: in 2020, Chiesi’s new headquarters in Parma was awarded the highest-level LEED Platinum for new building design and construction protocol. The Parma Research Center was awarded the LEED Gold for Existing building and operation maintenance (EB:OM) protocol and certification. This effort has gradually scaled up to all our local sites, with the aim of reaching and connecting all our sites.

In 2021, three sites are undergoing the path to be LEED standard certified: Fontevivo logistics site (Italy), Pilotis building (Italy), Blois manufacturing site (France). There are an additional four projects under alignment with Chiesi internal standards: Shanghai new location (China), new Biotech facility (Italy), new packaging department (Italy), and Stability Hub (Italy). Six sites are supported in applying Green Operating Guidelines.

Propellant capture (industrial operations): abatement systems have now been installed in the Parma and Blois manufacturing sites; since the beginning of 2021 in Parma and 2023 in Blois. This system is able to condensate the propellant losses in the manufacturing phases, preventing the F-gas propellant from being released into the atmosphere. The propellant recovered is then sent to a high temperature incinerator that safely and effectively destroys it.

Emissions removal

The climate crisis is confronting us with urgent and dramatic choices. Reducing emissions is an immediate and fundamental commitment that all businesses need to take to avoid the average global temperature increasing beyond 1.5 degrees.

However, we will also need to remove part of the CO2 that is already in the atmosphere. Chlorophyll photosynthesis is among the best technologies for CO2 removal29 – in other words: trees. During the November 2021 G20 meeting, the participating countries committed to planting 1 trillion trees30.

Chiesi is doing its part by developing important projects regarding the planting of trees. An example of this commitment is the not-for-profit Forestry Consortium KilometroVerdeParma (‘Green Kilometer Parma’), a project of urban and suburban reforestation in the province of Parma. Thanks to the involvement of all social groups, as well as citizens, students, companies, public administrations, associations and landowners, the Consortium aims to create permanent forests which, while capturing CO2, could also positively impact climate change that is already underway. This would help improve air quality, mitigate heatwaves and urban heat, promote better water management and the societal appreciation of green areas, and raise awareness within the whole community of protecting and taking care of the environment. In the three years of activity of the Consortium, over 55,000 trees have been planted, amounting to a reforested surface area of approximately 49 hectares. Chiesi, one of the co-founders, is actively taking part in the consortium activities, by setting up reforestation initiatives31.

Energy

Chiesi’s energy policy is focused on both energy purchasing and energy consumption.

Electricity is purchased according to sustainable models accredited by the reference bodies and 99% of electricity consumed comes from renewable energy sources. Where possible, we are using biogas and bioethanol as energy sources, instead of non-renewable fuels to increase the amount of energy we produce ourselves.

We have adopted special models for buying electricity that offer more support for eco-friendly changes and the development of renewable energy (Power Purchase Agreement). These models provide flexibility and quick responses to meet our energy needs sustainably.

With regards to Scope 2 emissions, our strategy is focused on improving energy efficiency (thanks to the implementation of ISO 50001: 2018 energy management systems) and fostering 100% electric energy from renewable sources. In 2022, 99% of electricity consumed by Chiesi was from renewable sources, up from 93% in 2021. All sites, except for one and the off-site car fleet charging stations, managed to purchase 100% renewable electricity24. Moreover, Chiesi aims to reduce scope 1 and 2 emissions through the electrification of the company’s car fleet (both assigned cars and pool cars used for business travel).

Supply Chain and Logistics

Another area where we aim to create an impact in terms of GHG emission reduction is our value chain. Encouraging our suppliers and partners to reduce their carbon footprints also helps Chiesi to reach its own climate targets. To this end, we share information with our suppliers on sustainability topics and advise them on possible pathways towards achieving their goals and emissions reductions targets.

Chiesi’s Code of Interdependence is a co-created code of conduct for Chiesi suppliers25 developed in 2019 with our strategic partners. It aims to restructure the relationship between Chiesi and its suppliers from a shared value perspective. The Code is based on the principles of the B Corp movement, but also those of the Pharmaceutical Supply Chain Initiative (PSCI) 26, the International Labour Organization (ILO)27, and the 2030 Agenda for Sustainable Development28. With this Code, we define shared guidelines and require every part of Chiesi’s Value Chain to adhere to a common set of principles to achieve a more sustainable and inclusive business model.

From 2020, a specific contractual clause dedicated to the Code of Interdependence acceptance and inspiration has been included at Group level in all our new third-party agreements.

In 2022, the Code of Interdependence was revised to include two new sustainable development goals (SDGs), now reaching 11 SDGs in total. These new additions include UN SDG #5 Gender Equality, and UN SDG #11 Sustainable Cities and Communities. By incorporating such a large number of SDGs into the Code, Chiesi ensures we are always pushing the boundaries further, to deepen our impact while guiding and supporting our suppliers to do the same. Several partners of ours have been inspired to follow our lead to start the process of B Corp certification.

We designed the Logistics Impact Meter (LIM), a tool to assess the effects on the environment, people and communities of all actors in logistics and distribution operations and refers to best practices and innovative solutions available. Thanks to the LIM, we mapped our logistic network and identified the parameters that determine the impact of each actor (warehouses, hub, transit points). Within the corporate supply chain department some procedures have already been reviewed: for example: when possible, sea shipments are preferred to air, and sustainability is a key point in the selection of logistics partners. Through the involvement of Chiesi’s local sites on our sustainability journey, we are evaluating logistics partners and looking for optimisations with the final target to reduce our GHG emissions, with the aim to find the best sustainable solutions for our supply chain.

We are committed to ACHIEVING NET ZERO EMISSIONS by 2035. We have done our homework and know how we will hit our targets and when we will make this happen.

For us, the path to net zero is one which starts with real-world action across every element of the business. As a B Corp and Benefit Corporation we are committed to sharing our goals, our progress and our enthusiasm for action with our peers, wherever we meet them. Our ideas start with getting rid of the concept of business as usual; there is no room for normal if we are to change the world.

It’s why we are already sharing our progress, and will continue to do so until we meet our goals37.

Do you dare to share?

Check on our progress

“Climate change and its impact on lung health: a focus on Europe,” The Economist Intelligence Unit

https://eiuperspectives.economist.com/healthcare/climate-change-and-its-impact-lung-health-focus-europe

Several studies show the impact of climate change on health issues – especially respiratory – and of the use of some medication on carbon footprint:

Climate change: challenges and opportunities for global health. Patz JA, Frumkin H, Holloway T, Vimont DJ, Haines A. JAMA. 2014 Oct 15;312(15):1565-80. doi: 10.1001/jama.2014.13186.

Climate change and respiratory diseases: a 2020 perspective. Joshi M, Goraya H, Joshi A, Bartter T. Curr Opin Pulm Med. 2020 Mar;26(2):119-127.

New data show overuse of reliever medication in asthma is responsible for 250,000 tonnes of greenhouse gas emissions every year in the UK, Astra Zeneca. M2 PressWIRE. 2021 Feb.

The Science-based Targets Initiative, “Foundations For Science-based Net-Zero Target Setting in the Corporate Sector”

www.sciencebasedtargets.org

The Science-based Targets Initiative, “The Net Zero Standard”

https://sciencebasedtargets.org/resources/files/Net-Zero-Standard.pdf

Scope 1 emissions are direct emissions from owned or controlled sources. Scope 2 emissions are indirect emissions from the generation of purchased energy. Scope 3 emissions are all indirect emissions (not included in scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions.

https://ghgprotocol.org/sites/default/files/standards_supporting/FAQ.pdf

British Standards Institution, “PAS 2060 Carbon Neutrality”

www.bsigroup.com

Certified Carbon Neutral Global Standard, “The Carbon Neutral Protocol January 2021”

www.carbonneutral.com

Chiesi Limited. Annual & Sustainability Report. 2021

https://www.chiesi.uk.com/pdf/Chiesi_A&S_Report_2021_EN_Long_Digital_v.6.0.pdf 

The Science-based Targets Initiative, “How it works?”

www.sciencebasedtargets.org

United Nations Framework Convention on Climate Change, “The Paris Agreement”

www.unfccc.int

The Science-Based Targets Initative, “The Corporate Net-Zero Standard”

https://sciencebasedtargets.org/net-zero

Chiesi Group, press release on low carbon sustainable inhalers
https://www.chiesi.com/en/first-carbon-minimal-pmdi-is-on-track-with-the-goal-to-benefit-patients-and-planet/

Carbon Disclosure Project

www.cdp.net

In December 2018, Chiesi changed its structure and by-laws, adopting the new legal status of Benefit Corporation, introduced in Italy and in the United States.

With the B Corp Certification, Chiesi reinforces its mission to improve the quality of human life, by acting responsibly towards the society and the environment and by adopting a unified standard of measurement within the Group.

B Corporation, “B Corp Directory: Chiesi Group”
https://www.bcorporation.net/en-us/find-a-B Corp/company/chiesi-group/

Chiesi requires every part of its value chain to fulfil certain environmental and social standards. With our suppliers, we co-created the first SDG-enabled Code of Conduct to define shared guidelines – also called “Code of Interdependence”. We involved about 70 of our strategic supply partners to design this code of conduct to create a sustainable ecosystem.

Chiesi Group, “Code of Interdependence”
www.chiesi.com

UNFCCC: Race To Zero
https://unfccc.int/climate-action/race-to-zero-campaign#Race-to-Zero-Partners

Chiesi Group, press release on carbon neutrality ambitions: “Chiesi Group calls for #ActionOverWords in the fight against climate change”
https://www.chiesi.com/en/chiesi-group-calls-for-actionoverwords-in-the-fight-against-climate-change/

Chiesi Group, press release on decarbonisation: “Chiesi Group joins Biden Administration pledge to decarbonize healthcare sector”
https://www.chiesi.com/en/chiesi-group-joins-biden-administration-pledge-to-decarbonize-healthcare-sector/

The White House: Health sector leaders join Biden administration pledge to reduce greenhouse gas emissions 50% by 2030. https://www.whitehouse.gov/briefing-room/statements-releases/2022/06/30/fact-sheet-health-sector-leaders-join-biden-administrations-pledge-to-reduce-greenhouse-gas-emissions-50-by-2030/

CDP: The A List 2022
https://www.cdp.net/en/companies/companies-scores

In 2019, Chiesi was the first pharmaceutical company to publicly announce a solution to address the carbon footprint of pressurised metered dose inhalers (pMDIs) while continuing to invest in DPI technology to provide the range of therapeutic treatment options that patients suffering from asthma and chronic obstructive respiratory disease (COPD) need.

Chiesi Group, “Chiesi outlines €350 million investment and announces first carbon minimal pressurised Metered Dose Inhaler (pMDI) for Asthma and COPD”

https://www.chiesi.uk.com/img/news/613_final-021219_chiesi-investment-in-carbon-minimal-pmdis-december-2019.pdf

In March 2021, Chiesi joined the initiative from the UNFCCC “Race To Zero”.

https://sciencebasedtargets.org/blog/science-based-net-zero-targets-less-net-more-zero

The Science-Based Targets Initative: “Corporate Net-Zero Standard Version 1.1”
https://sciencebasedtargets.org/resources/files/Net-Zero-Standard.pdf

Chiesi Group, Annual & Sustainability report 2022: https://www.chiesi.com/flipbook.php?url=https://www.chiesi.com/img/annual_report/documenti/100_sustainability-report-2022-sd.pdf

Chiesi Group, Code of interdependence
https://www.chiesi.com/documenti/30_code-of-interdependence.pdf

The Pharmaceutical Supply Chain Initiative (PSCI) is a group of pharmaceutical and healthcare companies who share a vision of better social, health, safety and environmental outcomes in the communities where we buy.
https://pscinitiative.org/home

The only tripartite U.N. agency, since 1919 the ILO brings together governments, employers and workers of 187 Member States, to set labour standards, develop policies and devise programmes promoting decent work for all women and men.
https://www.ilo.org/global/lang–en/index.htm

This 2030 Agenda for Sustainable Development is a plan of action for people, planet and prosperity. It also seeks to strengthen universal peace in larger freedom. All countries and all stakeholders, acting in collaborative partnership, will implement this plan.
https://sdgs.un.org/2030agenda

Chiesi Group, Annual & Sustainability report 2022: https://www.chiesi.com/flipbook.php?url=https://www.chiesi.com/img/annual_report/documenti/100_sustainability-report-2022-sd.pdf

European Council: Main results of G20 summit in Rome, Italy, on 30-31 October 2021
https://www.consilium.europa.eu/en/meetings/international-summit/2021/10/30-31/

Chiesi: Code of conduct (page 21), segment on reforestation activities:
https://www.chiesi.be/documenti/Codice_di_condotta_EN_def.pdf

U.S. Green Buildings Council: Leadership in Energy and Environmental Design (LEED)
https://www.usgbc.org/leed

Chiesi Group, press release on low carbon sustainable inhalers: https://www.chiesi.com/en/first-carbon-minimal-pmdi-is-on-track-with-the-goal-to-benefit-patients-and-planet/

Chiesi Group, press release on low carbon sustainable inhalers: https://www.chiesi.com/en/first-carbon-minimal-pmdi-is-on-track-with-the-goal-to-benefit-patients-and-planet/

One of the first actions taken by Chiesi in this regard concerns the use of FSC (Forest Stewardship Council) certified paper for the secondary packaging of major products at all our production sites.

Chiesi Group, Annual & Sustainability report 2021: https://www.chiesi.com/flipbook.php?url=https://www.chiesi.com/img/annual_report/documenti/74_chiesi_aas_report_2021_en_long_final_.pdf

Forest Stewardship Council label: https://fsc.org/en/what-the-fsc-labels-mean

Chiesi has an Impact Committee dedicated to the monitoring and management of purposes of common benefit.

In 2018, Chiesi launched the program “We ACT – We actively Care for Tomorrow” showing the expression of Chiesi’s commitments towards sustainability.

Chiesi Group, “We Act Sustainability Manifesto”
www.chiesi.com

Chiesi publishes its sustainability report annually.

Chiesi Group, “Sustainability Report”
www.chiesi.com

Chiesi also contributes to the Sustainable Developments Goals (SDGs) set up by the United Nations in 2015 and measures its impact through the SDG Action Manager.

United Nations Global Compact, “SDG Action Manager”
www.unglobalcompact.org