BALLERUP, Denmark--(BUSINESS WIRE)--LEO Pharma today announced its commitment to achieving a net-zero climate target by 2050. It involves developing an extensive decarbonization plan across the company’s operations, aligning with the Paris Agreement and climate science recommendations to limit global warming to 1.5⁰ C.
This commitment builds on LEO Pharma’s earlier ambition to reduce carbon emissions by more than 50% by 2030 from a 2019 baseline.
“The climate crisis is the most urgent issue of our time, and companies must take action to find necessary solutions. We acknowledge our impact on the planet as a result of our operations and therefore, a net-zero target is a natural continuation of our current commitments. We need to run a sustainable business to ensure that we can help people with skin diseases for the next many years to come,” said Christophe Bourdon, CEO, LEO Pharma.
“Committing to a net-zero target is becoming a license to operate, and we will engage our colleagues, suppliers and business partners to help achieve this goal. This commitment is not only an environmental necessity but also a real driver of the business. We observe a growing emphasis on climate requirements in European tender processes and welcome this change. It emphasizes that our responsibility is not only for the solutions we bring to patients, but also how we do so,” said Christina Dahl, Head of ESG, DE&I and Public Affairs, LEO Pharma.
Taking action in own operations and beyond
To achieve a net-zero target by 2050, LEO Pharma will continue to implement a number of energy-saving measures in its operations and significantly expand its use of renewable energy. In 2023, LEO Pharma optimized energy efficiency, using renewable energy and transitioning towards a more sustainable car fleet, resulting in a reduction of the company’s Scope 1 and 2 emissions by 39%, compared to the 2019 baseline.
Reducing emissions across LEO Pharma’s value chain
Emissions from suppliers and other sources outside of LEO Pharma’s operations account for the majority of the company’s carbon footprint. In 2023, 83% of LEO Pharma’s suppliers by emissions had set their own science-based climate targets or announced commitments to reduce CO2, representing a significant first step towards greater carbon reductions. However, achieving the 2050 net-zero target requires a long-term deep decarbonization across all scopes, making collaboration with key suppliers to further reduce carbon emissions essential. This will involve considering SBTi commitments in our supplier assessment and selection process.
LEO Pharma will develop a detailed Carbon Reduction Plan subject to validation from the Science-Based Target initiative (SBTi) within 24 months of the public commitment.
As a purpose-driven company, we aim to make a positive impact on patients, people, and the planet. We recognize our responsibility to minimize negative environmental impacts and contribute to a more sustainable future. Compliance, transparency, and integrity are key to our approach, helping us build trust with stakeholders and drive responsible business practices. Thus, our commitment to sustainability is central to leaving a legacy that future generations will be proud of.
The net-zero commitment was approved by LEO Pharma’s Executive Management and Board of Directors.
About LEO Pharma
LEO Pharma is a global company dedicated to advancing the standard of care for the benefit of people with skin conditions, their families and society. Founded in 1908 and majority owned by the LEO Foundation, LEO Pharma has devoted decades of research and development to advance the science of dermatology, and today, the company offers a wide range of therapies for all disease severities. LEO Pharma is headquartered in Denmark with a global team of 4,000 people, serving millions of patients across the world. In 2023, the company generated net sales of DKK 11.4 billion.
