AstraZeneca’s Sustainability Initiatives & Supply Chain

As sustainability becomes a requirement in business, AstraZeneca’s sustainability strategy is setting a strong example, especially for its suppliers. Whether you’re currently part of their network or aiming to be, understanding AstraZeneca’s expectations is essential for maintaining or winning that partnership.

In this post, we’ll break down what the pharmaceutical giant is doing around sustainability, how it impacts their supply chain, and what steps suppliers need to take to stay aligned.

AstraZeneca’s Approach to Sustainability

AstraZeneca doesn’t treat sustainability as a buzzword, it’s embedded in everything they do. Their approach is science-based, aligning with global standards such as the Science-Based Targets initiative (SBTi) and frameworks like GRI and SASB. From emissions reductions to healthcare access and gender equity, the company’s performance is transparent and measurable.

Key sustainability highlights:

• 77.5% reduction in Scope 1 and 2 emissions since 2015
• 90.4 million people reached through healthcare programs
• 50.6% of senior and middle management roles held by women

But their expectations don’t stop at internal operations. If you’re in the AstraZeneca supply chain, your sustainability game needs to be just as strong.

Supply Chain Impacts: What Suppliers Need to Know

AstraZeneca is asking a lot from its suppliers, and for good reason. They want to ensure that the sustainability values they commit to are reflected throughout their entire value chain.

Here’s what that means for suppliers:

1. Certifications Are Crucial:
   • EcoVadis is a must, about 70% of AstraZeneca’s supplier spend is with vendors rated by EcoVadis.
   • Other certifications like ISO 14001 (environmental), ISO 45001 (health & safety), and ISO 9001 (quality) add credibility and compliance.
2. Science-Based Targets:
   • Suppliers are expected to disclose to CDP and commit to SBTi.
   • 707 suppliers reported via CDP in 2023 alone.
3. Prove It, Don’t Just Say It:
   • Ethical, environmental, and social responsibility claims must be backed by real data.
   • You’ll need to track emissions, water and waste usage, inclusion, anti-corruption efforts, and more.
4. Audits and RFP Requirements:
   • Sustainability is now a factor in yearly audits and procurement decisions.

Data and Compliance: The New Normal

AstraZeneca isn’t just looking for words, they want numbers. That means collecting:

• Energy data (kilowatt hours across all sites)
• Natural gas use
• Water consumption (m³/year)
• Waste and recycling volumes
• Diversity stats and incident reports

This raw baseline data allows for accurate calculation of Scope 1 and 2 emissions, and eventually Scope 3, those indirect emissions from suppliers themselves.

Opportunities and Challenges for Suppliers

Even with AstraZeneca’s progress, there are still areas for growth, especially for their suppliers. Four key challenges were identified:

1. Rising Scope 3 Emissions:
   Despite success in Scopes 1 and 2, Scope 3 emissions rose by 18.6% since 2019, revealing gaps in supply chain carbon control.
2. Sustainability Resource Allocation:
   Without proper budgeting, sustainability efforts can get deprioritized. AstraZeneca emphasizes keeping ESG goals at the forefront.
3. Simplified Reporting Risks:
   Oversimplifying data into one spreadsheet risks missing crucial environmental or social impacts.
4. Superficial Compliance:
   Focusing only on “good scores” in platforms like EcoVadis can lead to hollow efforts. AstraZeneca seeks genuine, impactful actions.

How to Prepare Your Business

If you’re hoping to work with AstraZeneca, or keep working with them, here’s where to start:

1. Track Emissions:
   Set a baseline year, collect 12 months of energy data, and calculate Scope 1 and 2 emissions.
2. Get Certified:
   Begin your EcoVadis submission and review ISO certifications that apply to your operations.
3. Implement Governance Policies:
   Include anti-bribery, data privacy, whistleblower policies, and diversity strategies.
4. Document Everything:
   You’ll need records and data to prove your sustainability claims during audits or RFP evaluations.

AstraZeneca Sustainability as a Competitive Advantage

It may feel overwhelming at first, but aligning with AstraZeneca sustainability goals is not just good ethics, it’s good business. Tracking energy and emissions can help you reduce costs, improve efficiency, and strengthen client relationships.

And AstraZeneca won’t be the only company asking for this. ESG compliance is fast becoming a standard requirement across industries.

Need support navigating these requirements? At ThisRock Inc., we help suppliers meet ESG demands and gain certifications like EcoVadis and SBTi alignment.

Ready to make your business more sustainable? Book a free 15-minute consult to get started.

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