Global pharmaceutical giant GSK has announced a transformative step towards sustainability by entering into a decade-long agreement with Sembcorp Industries. This partnership will supply renewable electricity to all three of GSK’s manufacturing facilities in Singapore starting January 1, 2025.
Under the terms of the agreement, Sembcorp will provide renewable energy certificates sourced from its solar projects in Singapore, complemented by GSK’s existing on-site solar panels. This initiative is expected to deliver up to 87,600MWh annually, equivalent to reducing approximately 36,500 metric tons of CO2 emissions per year. This represents a substantial 9% increase in GSK’s global purchased renewable electricity usage.
GSK’s manufacturing operations in Singapore are pivotal in producing critical medicines and vaccines for diseases such as HIV, oncology, and infectious diseases. This move underscores GSK’s commitment to sustainable practices in a region where it has maintained a presence since 1959, employing over 1,500 people and investing more than S$2.5 billion (£1.5 billion) to date.
Regis Simard, President of Global Supply Chain at GSK, emphasized, “Signing this deal to transition our Singapore manufacturing sites to renewable electricity is a proud moment for GSK. It aligns with our strategy to decarbonize our global manufacturing footprint, combining purchased renewable electricity with investments in on-site renewable generation to reduce the carbon impact of our pharmaceutical products.”
Vickrem Vijayan, Head of Energy Commercial at Sembcorp, highlighted the company’s role in supporting corporate sustainability goals, stating, “As a leader in renewable energy across Asia, Sembcorp is thrilled to contribute to GSK’s decarbonization journey. We are committed to providing comprehensive renewable energy solutions that help corporates like GSK achieve their sustainability ambitions.”
GSK’s transition to renewable energy is part of its broader commitment to reduce greenhouse gas emissions. The company aims for an 80% reduction in emissions across all scopes by 2030 and a 90% reduction by 2045, based on a 2020 baseline. This includes ambitious targets under the RE100 initiative to achieve 100% purchased renewable electricity by 2025 and 100% renewable electricity (purchased and generated on-site) by 2030.
This initiative not only supports GSK’s environmental goals but also contributes to improving air quality and promoting better respiratory health, reinforcing the company’s dedication to sustainable healthcare solutions globally.
