Supplier engagement

We are continuously looking for ways to catalyze our supply base – identifying actionable ways to minimize impacts, provide resources, and use third party verification for accountability.

With approximately ~80% of our carbon footprint coming from Scope 3 emissions, we are continuously looking for ways to catalyze our supply base – identifying actionable ways to minimize impacts, provide resources, and use third party verification for accountability. We have many efforts underway to engage our suppliers through education and awareness, help ensure the integrity and accuracy of our data and support in the decarbonization of our supply chain.

Some of our efforts include:

Responsible Sourcing program:


BMS’ Responsible Sourcing program helps us support our supply chain partners in many ways, including:

  • Monitor supply chain sustainability risks and performance;
  • Support suppliers through a journey of continuous improvement;
  • Increase supplier due diligence;
  • Embed ESG principles across BMS sourcing and procurement.
Inaugural supplier sustainability summit


In 2022, we galvanized our suppliers to accelerate our collective actions to reduce emissions, waste, social and other environmental impacts. We mapped capabilities, commitments, and near-term opportunities while identifying 90 shared initiatives in areas like energy management, water and fleet electrification.

Data integrity


Data integrity is a critical component in addressing the challenge of Scope 3 emissions. We have been working hard to develop a comprehensive process for Scope 3 data because you can’t manage what you don’t measure. We use the GHG Protocol – Scope 3 Standard and GHG Scope 3 Technical Guidance as our guiding principles for data collection, aggregation, and verification.

We have designed an end-to-end program which allows us to understand the nature of the data we are collecting. Whenever possible, we work with our suppliers to source primary data which allows us to have a more accurate picture of emissions data. We have also been expanding our tracking and management of Scope 3 emissions to include 10 categories; all of our categories are third party audited and verified.

We also leverage data to inform our engagement strategy with procurement colleagues, business partners and suppliers to understand where we are more hands-on with piloting new technologies versus where we support through capability-building and information.

Transparency in reporting
 

We are a member of the Carbon Disclosure Project (CDP) Supply Chain program, requesting disclosure of environmental information and data from strategic suppliers to improve visibility of our Scope 3 emissions. In 2022, we also added new factors to our supplier contracts to improve transparency.

Industry partnerships and collaborations

Manufacture 2030 (M2030): We are a founding member of Activate, a collaboration launched in May 2023 between global pharmaceutical companies and active pharmaceutical ingredient supply chains (API), to decarbonize this environmentally intensive part of the value chain. APIs can be resource intensive due to material use, energy-intensive processes and waste recovery so this is a critical element in the decarbonization efforts of our API suppliers. Activate is now rolling out in 20+ countries and includes expert advice and trainings, support in the development of new green chemistry solutions, and assistance in the creation of science-based targets. 

Energize: We joined other pharmaceutical companies in August 2022 to leverage the expertise of Schneider Electric and offer renewable energy education and access to our suppliers, providing a pathway for them to purchase renewable energy through a cohort and avoid the immense work and expense of having to do it alone. Programs like Energize are looking to find solutions to problems at scale and are a great additional lever that we leverage as part of our Scope 3 program. Together with our supplier partners, we know we can make a significant impact on our commitment to the environment and how we serve our patients.

PSCI: We are continuously incorporating industry best practices into the way we work with suppliers. One way we do this is through the Board of the Pharmaceutical Supply Chain Initiative (PSCI), where we collaborate with peers and suppliers discussing and sharing perspectives on environmental sustainability best practices.