We continually strive to reduce our impact on natural systems and the environment, with a focus on energy, greenhouse gases, water and waste. Our ambition is the reach net-zero greenhouse gas (GHG) emissions by 2050.
2030 Targets and 2025 Progress
With a long-term view to 2030, we want to reduce consumption considerably to align with the broadly accepted greenhouse gas reduction targets, with an ambition of reaching net-zero greenhouse gas (GHG) emissions by 2050. In February 2024, the Science-Based Targets initiative (SBTi) validated our near-term GHG emission reduction targets.
In 2025 our 2025 GHG intensity (Scope 1 and Scope 2 location-based) represented a 53% reduction compared to the 2018 base year, already achieving our 50% target for 2030. This achievement is a result of our energy efficiency efforts, including an increase in the efficiency of our manufacturing operations. We have generated 50% more value with the same GHG footprint, a significant contribution in our efforts against climate change. We also achieved a 50% reduction in waste intensity. Therefore, noving forward, we aligned the base year of all intensity targets to 2021, while keeping the reduction target at 50%. This base year realignment provides a clean state for the One Lonza CDMO model and also aligns with the SBTi near-term targets base year.
Our Focus Areas
Energy
Our operations require energy, typically in the form of natural gas and electricity, which is consumed at our sites for manufacturing or infrastructure processes. This is the largest contributor to our climate-relevant emissions. We therefore focus our efforts on reducing GHG emissions by improving energy efficiency at our sites. It is our priority to source electricity from renewable sources to decouple electricity consumption and GHG emissions.
Our footprint-reduction goals encompass existing facilities, as well as investments in new assets, buildings and facilities. Our sites include energy efficiency and waste reduction measures in their roadmaps, and in some cases apply low-carbon energy alternatives, such as biomass. For new assets and buildings, our Sustainable Design Standard requires energy and water efficiency and the use of sustainable technologies.
Progress
Our energy consumption intensity (GJ/revenue) has steadily been decreasing. This decrease is driven by strong growth and is tempered by a minor increase in energy consumption as new assets came online, supported by many energy reduction projects. We also benefit from an increasing proportion of modern, energy-efficient buildings, assets and production technologies.
Climate Change
GHG emissions are categorized into three groups: Scope 1 and Scope 2 cover emissions from our operations and energy use, while Scope 3 includes all other indirect emissions that occur in our value chain.
Our ambition is to achieve net zero by 2050 or earlier. We have SBTi verified targets to reduce absolute Scope 1 and 2 GHG emissions by 42% by 2030, from a 2021 base year. We also set a supplier engagement target for Scope 3 emissions, committing that 79% of our suppliers by emissions (covering purchased goods and services, capital goods and upstream transportation and distribution) will have science-based targets by 2028. Once the near-term process has been established, we will focus on long-term targets and define the next level to achieve net zero.
Furthermore, we have a program to replace our traditional power mix with renewable power, which forms a major pillar of our GHG reduction strategy. This is done by establishing virtual power purchase agreements (VPPAs), installing onsite capacity, and purchasing renewable energy certificates from projects, where available.
Climate Transition Plan
Progress
As of 2026, we have agreements in place that decarbonize our Scope 2 electricity emissions across Switzerland, the European Union, China and our current US facilities. These include a ten-year VPPA, an industry-first renewable power purchase agreement in China together with four other global pharma companies and three Renewable Energy Certificate (REC) purchase agreements in the United States (US).
Water is used for a variety of purposes across our business, including heat transfer and cooling, steam generation, washing and cleaning, sanitization, and as a product ingredient. As a precious natural resource it should be actively managed – especially in water-scarce locations. We are taking multiple measures to minimize downstream effects and water withdrawal impacts on our communities and the local environment. Internal standards on water and wastewater include a water balance at a site level to optimize usage and limit losses. We require sites to reduce water usage through asset optimization and process changes, and to promote water recycling and reuse, and to treat effluents according to permits and internal limit values.
Our water usage is divided into two main categories: industrial process water and non-contact cooling water. Industrial water - or water consumed - may be altered chemically and physically by the manufacturing processes. All cooling water cycles are closed-loop systems, whereby the exchanged heat is dissipated by air and evaporation (cooling tower) or by river water as in Visp (CH).
Each site is responsible for keeping the water balance updated, which serves as the basis to define areas of focus for projects to reduce water consumption and/or increase water recycling. The effectiveness of these measures has delivered a continuous improvement of our industrial water intensity, as shown in the chart below. Each site is also working to improve its understanding of water consumption by asset or building, where additional metering may be required.
Target
Globally, in line with our commitment to SDG 6 (Clean Water and Sanitation), we plan to build on the completed risk and opportunity assessment with a mid-term action plan to reach our target of reducing industrial water intensity by 2030 by approximately 50%.
Progress
All sites are committed to our waste reduction and circularity principles (avoid, reduce, recycle). We are working to increase the efficiency of input materials in production processes, including yield improvement, reworking off-specification production, and reusing auxiliary materials wherever possible. Sites develop their own circularity measures, such as increasing the number of reuse cycles of solvents or using biomass waste as fuel.
Each manufacturing site across our network maintains an efficient and environmentally sound waste disposal process, tailored to relevant waste streams. All sites are committed to regularly monitoring and assessing waste streams and to reduce both hazardous and non-hazardous waste, aiming to reuse, treat and dispose all waste materials in full compliance with local regulations and international standards.
At most of our locations, our waste is managed by third parties that have been approved by the relevant authorities. Sites carefully select, oversee and audit these companies based on performance and capabilities, taking into account safety and sustainability criteria. We operate our own waste and wastewater treatment facilities at specific locations, such as Visp (CH) and Nansha (CN).
As a CDMO, we have limited influence on the type of waste generated by customer-defined manufacturing processes. We therefore focus on working with our customers to improve material efficiency where possible.The production technology and quality requirements for bio-pharmaceutical production have changed in recent years. Improved cleaning practices and Single Use Technologies (SUT), such as plastic bag reactors and appliances instead of stainless steel, are reducing water usage for cleaning. On the other hand, this shift has increased SUT plastic waste. As this technology continues to develop, and in the absence of alternative disposal and recycling solutions, we have adopted local approaches to disposal in the meantime.
Progress
In 2025, we had sustained progress towards our 2030 target of a 50% reduction in waste generation per CHF million of sales. The effectiveness of our waste management measures lead to a continuous reduction in total waste intensity.
Within Advanced Synthesis, organic solvents play an important role in the manufacturing process and we continue to improve our efficient use, reuse and recycling of solvents. We continue to work on increasing recycling capacity in 2025 with a new pervaporation unit that is now operational, and achieved a record in recovering almost 2,000 tons of tetrahydrofuran solvent. Our solvent recovery rate continues to increase, from 20% in 2021 to almost 40% in 2025. We also perform streamlined carbon footprint assessments of specific products to review and identify hot spots and improvements, including from the implementation of solvent recycling and reuse.
We work closely with our major customers to validate the technical and quality viability of greater solvent reuse, which is essential for meeting mutual decarbonization targets. This includes a pilot for a concentrated process that uses less water and less solvent per kilogram of API. As part of this, we are now reusing solvents for the first time as part of a GMP process.
Together, these projects reduce production downtime, bottlenecks and simplify logistics. The solvent recycling implemented in Advanced Synthesis processes in Switzerland and China avoided in excess of 5,000 tons of wastewater using modern technologies and more than 1,000 tons of fuel-related CO2eq in 2025. In addition, we currently recycle over 9,000 tons of solvents each year, reducing incineration and consumption of fresh solvents, avoiding more than 45,000 tons of CO2eq per year.
To further optimize resource use, we have introduced a platform for reutilizing or selling excess equipment. This platform supports asset utilization and aims to avoid waste and create further savings opportunities. Equipment not requested internally is being offered externally. To date, we have made around 1,900 assets available across our network.
Air Emissions
Our focus is on greenhouse gas emissions, and volatile organic compounds (VOC), as precursors to low atmospheric ozone. Other parameters monitored are nitrogen oxides, sulfur dioxide and particulate matter. Continuous investment, technical improvements at emission points and emission control equipment contribute to the control and reduction of such emissions.
Water Emissions
Parameters monitored for water pollution are total organic carbon (TOC) or chemical oxygen demand (COD), heavy metals, nitrogen and phosphorus. Depending on the site-specific processes and production, local requirements may also include other relevant parameters. Heavy metals are also monitored, when applicable, e.g. cadmium, copper, nickel. The main source of heavy metals is the usage of metal-containing catalysts.
