In early 2024, we completed our carbon footprinting exercise in respect of our Scope 1 & 2 emissions during 2023. The results of this exercise are set out below (excluding entities acquired during 2023). In 2023, we saw a slight increase in Scope 1 & 2 emissions of 0.5% on an absolute basis. This represents a 21.8% overall reduction in absolute Scope 1 & 2 carbon emissions since our baseline reporting year of 2019. The Group calculates its total portfolio carbon intensity by the volume of carbon emissions against our total revenue: the carbon intensity measurement decreased by 21% during the year.

According to the analysis carried out, a large proportion of the reduction in Group emissions, to date, has arisen as a result of a reduction in company car usage across the Group. We believe the rationale for this is that in recent years and post-Covid-19, our Pharma Division has shifted to an omni-channel engagement model which facilitates the teams to engage with healthcare professionals through media other than in-person office visits. We believe that the transition to the omni-channel model and modifications in the preferences of healthcare professionals will mean that emissions from company cars will remain significantly lower than pre-Covid levels. It is also noted with the increasing accessibility of electric vehicles, we anticipate this reduction to continue.

Uniphar will continue to ensure that our activities are aligned to energy reduction efforts through existing and new builds as well as the implementation of energy efficiency initiatives.

In 2023, we completed our second Scope 3 emissions screening with the support of external environmental consultants. This process identified the immense significance of purchased goods and services as a contributor to the Group’s overall carbon footprint. Our purchased goods and services category analysis was based on spend data which was inputted to the EEIO spend-based tool.

Targets

The Group formally committed through the Science Based Target Initiative (SBTi) to setting a science-based target in 2023 and, in early 2023, we submitted our targets for validation to the SBTi. We have progressed onto the final stage of validation and our pending validated SBTi targets are set as internal targets to reduce our absolute Scope 1 & 2 emissions by 5% per annum between 2019 and 2030, in line with the SBTi 1.5˚ C aligned pathway for targets which would see us achieve our climate ambition of at least 50% reduction in our absolute Scope 1 & 2 emissions by 2030. As of 31 December 2023, the Group has reduced absolute Scope 1 & 2 emissions by 21.8% from our baseline reporting year of 2019.

As part of our commitment to SBTi, we have also submitted a target that 71% of our suppliers covering purchased goods and services will have science-based targets for emissions by 2027. In order to achieve this, we have started an active supplier engagement programme to work with our suppliers and partners in tackling the challenges of reducing emissions and identifying ways in which we can work together with them to reduce our collective emissions. 

Decarbonisation

Our ‘Green Teams’ functioning as part of the Environmental Working Group represent each division and assist with the technical information and implementation of environmental programmes. Uniphar Group supported externally facilitated training on the topic of decarbonisation, whereby each division member was tasked with assessing the emissions for their respective divisions and developing a decarbonisation plan outlining how that division could achieve our climate ambition of at least 50% reduction in our absolute Scope 1 & 2 emissions by 2030. A consolidated output from that exercise is presented below and the Group is completing its decarbonisation plans which involves the timelines for implementation of these decarbonisation initiatives.