Pharmaceutical supply chain decarbonization initiative Energize announced today a new aggregate power purchase agreement (PPA) with renewable energy developer X-ELIO, providing healthcare companies Haleon and GSK, Gilead Sciences and Thermo Fisher Scientific with 245 GWh of renewable energy annually over 10 years.

Managed by energy and automation digital solutions provider Schneider Electric together with the Pharmaceutical Supply Chain Initiative, the Energize program is a collaboration of 24 pharmaceutical and healthcare companies, aimed at engaging suppliers in climate action and decarbonization of the pharma value chain, including providing renewable electricity education and procurement support at no cost for their suppliers.

The new agreement marks the second PPA cohort under Energize, following an initial 8-company deal in September 2024. Schneider Electric said that its Sustainability Business served as the advisor to the four companies throughout the PPA procurement and negotiation process.

John Powers, Vice President, Global Renewable at Schneider Electric, said:

“Making the most of our energy and resources is crucial as we collectively move towards more sustainable solutions across industries and around the world. The Energize program aims to drive supply chain carbonization across the pharmaceutical and healthcare industries while serving as a playbook for other sectors as they look to tackle the most notoriously challenging aspects of decarbonization – Scope 3 emissions.”

Under the new cohort, Energize sponsors Haleon and GSK and industry suppliers Thermo Fisher and Gilead collaborated on the execution of the new aggregate PPA. Renewable energy for the agreement will be sourced from X-ELIO’s Lorca Solar Project in Spain. The companies said that the new agreement represents and estimated 41,748 million metric tons of CO2 avoided per year.

Lisa Martin, Chief Procurement Officer at GSK, said:

“We are excited to be part of this Energize cohort that will add new renewable energy to the grid in Europe for our operations and our suppliers. Our work through Energize, which we co-founded in 2021, showcases the power of partnerships in driving meaningful change, supporting business resilience, ensuring energy security and improving cost predictability in the long term.”

According to Thermo Fisher, the new agreement, alongside a solar power purchase agreement signed by the company in 2023, will enable it to match all of its addressable European sites with 100% renewable electricity, in addition to accelerating progress toward the company’s goal of achieving 80% global renewable electricity by 2030.

Konrad Bauer, Senior Vice President, Global Business Services at Thermo Fisher, said:

“When we collaborate with our customers and suppliers, we accelerate our collective progress toward net-zero emissions. Achieving 100 percent renewable electricity for our European sites is a significant milestone on our journey, and as cohort lead for this agreement facilitated by the Energize initiative, we are committed to leveraging our experience and insights to help enable similar milestones for our partners.”