Greenhouse Gas Emissions
Climate change poses risks to the pharmaceutical industry. Through our Sustainability 2020 Goals and our corporate greenhouse gas management directive, we are committed to making progress in reducing greenhouse gas emissions from our operations.
Our Sustainability 2020 Goal
Our Sustainability 2020 Goal for greenhouse gas emissions (GHG) calls for a 5 % reduction of our total emissions (baseline year 2015) .
Performance against this goal currently stands at a 9.1% reduction through 2017. This correlates to a reduction of our total annual greenhouse gas emissions by approximately 37,400 metric tons, which is equivalent to:
- The annual greenhouse gas emissions of about 8,000 passenger vehicles
- The carbon dioxide emissions from electricity use of over 4,000 homes per year
- The carbon dioxide emissions from burning 4.2 million gallons of gasoline
- The carbon sequestered annually by 44,000 acres of U.S. forests (based on U.S. EPA’s Greenhouse Gas Equivalencies Calculator).
 For the purpose of our Sustainability 2020 Goal, “total emissions” are defined as Scope 1 & 2 only; Scope 1 is inclusive of sales fleet vehicle emissions. We do track and verify business air travel (Scope 3) emissions, but these are not included within the 2020 Goal boundary.
How We Reach Our Goal
To help reduce our greenhouse gas emissions, we support:
- Voluntary reporting of greenhouse gas emissions
- Funding energy efficiency and greenhouse gas reduction projects
- Implementing high efficiency and innovative technologies
- Procurement of green/clean power for certain sites
- Selecting fleet vehicles to reduce fleet emissions
- Voluntary participation in multi-stakeholder initiatives
Our Cruiserath, Ireland facility utilizes 100% “green power,” and our Redwood City, California and Munich, Germany sites consume significant percentages of “green power,” relative to their annual electrical usage. Several sites have switched from burning diesel and kerosene as their primary fuels, to natural gas.
We’ve also incorporated green building design into a few of our facilities. For example, our Munich, Germany office building is heated 100% by renewable geothermal energy.
How We Calculate Our Results
We report greenhouse gas emissions in the form of carbon dioxide (CO2) equivalents. This includes:
- Direct CO2 from fuels used and other greenhouse gases from our operations
- Indirect carbon dioxide equivalent (CO2e) from purchased electricity
- CO2e from United States/Canada sales fleet
- CO2e from the use of sulfur hexafluorides for laboratory fume hood testing
- Indirect carbon dioxide equivalent (CO2e) from global business air travel
We calculate greenhouse gas emissions from fuel use, using emissions factors from:
- U.S. EPA Mandatory Reporting Rule – Final Rule (40 CFR 98) – Industrial Sector, 2013 Publication
- U.S. EPA eGRID 2018 (w/2016 data)
- RE-DISS Residual European Mix – European Residual Mix 2016
- International Energy Agency (IEA) - CO2 Emissions from Fuel Combustion 2017-Year 2015
- IPCC AR4 (for sulfur hexafluorides)
- 2017 DEFRA Guidelines
- GHG Protocol, IPCC 4th Assessment Report
We report our emissions through multiple external surveys, including for the Dow Jones Sustainability Index and CDP.
The Risks and Opportunities Associated with Climate Change
Our enterprise risk management process identifies, quantifies and addresses the risks facing the company. Climate change poses potential commercial risks for our company and the pharmaceutical industry in general.
Bristol-Myers Squibb has commercial operations worldwide, exposing us to diverse climates and regulatory environments. Contingency plans are in place to mitigate potential risks associated with operating globally, including supply chain, weather patterns, regulations, and energy costs.
Our long-term ability to operate and provide patients with the medicines they need is at risk without reliable sources of energy and clean water. We have therefore identified these as key sustainability issues for our company and have implemented programs to maximize our efficient use of these resources.
The ability of our global operations to manage energy efficiently, reduce operating costs and GHG emissions, leverage innovative technologies and quickly adapt to changing physical conditions resulting from climate change may produce sources of competitive advantage.
Health care needs may also change as a result of regional climate changes, potentially resulting in shifting or new markets for medicines. Climate change may result in outbreak or spread of diseases, and possibly an urgent need to develop new medicines to address unmet needs.
We continue to closely monitor regulatory developments in the U.S. and abroad. We anticipate continued volatility and potential increases in the cost of energy commodities. In the EU, our operations have been, and we expect will continue to be, directly impacted by various elements of the Kyoto Protocol and Annex B country-specific national allocation plans (e.g., emission allocations, taxes, and regulatory standards, etc.).