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Respondent CDP 2007: AstraZeneca

General Introduction
<>If like introduction answers enter

 
Section A – 1 Climate Change Risks, Opportunities and Strategy
Question 1(a)(i) – Regulatory risks
<>For question state time period possible associated financial implications commercial risks does climate change present company including regulatory risks associated current and/or expected government policy climate change e g emissions limits energy efficiency standards
Seven AstraZeneca facilities hold CO2 emission permits EU Emissions Trading Scheme (ETS) total sites received allocations 226 thousand tons years phase EU ETS result internal abatement efforts position trade allocation surplus predicted emissions phase approach € 2 5 million revenue company reinvested energy efficiency inside AZ preparing anticipated lower allocations second phase EU ETS 2008 2012 financial impact mitigated existing planned emission abatement activities anticipate needing net purchaser credits meet compliance commitments EUETS Phase II foresee existing reasonably predictable regulatory frameworks having significant financial impact organization far greater importance maintaining reputation organization responsible proactive action mitigate climate change emissions role contributing societal response adaptation especially area healthcare provision changing disease patterns

 
<>Would like provide additional information relating question provided
 No 

 
Question 1(a)(ii) Physical risks
<>For question state time period possible associated financial implications commercial risks does climate change present company including physical risks business operations scenarios identified Intergovernmental Panel climate Change expert bodies sea level rise extreme weather events resource shortages
Currently AstraZeneca felt little actual impact climate disruption 65 000 employees operating 100 countries 11 research development centres seven countries 27 manufacturing sites 19 countries dedicated ensuring deliver secure high quality cost effective supply effective prescription medicines bring benefit patients add value shareholders wider society Climate induced changes disrupt ability operate effectively realise benefits include interruption energy transport infrastructures scarcity water resources disruption key supply chain products services combine global capabilities high quality relationships local markets enable respond quickly effectively changing business needs confident rise adaptive challenges presented climate change instance · invested combined heat power plants manufacturing sites UK Puerto Rico delivering reduced operating costs CO2 emissions giving sites degree protection future energy supply instabilities · increasingly encouraging uptake electronic communication technologies video conferencing netmeeting reduce reliance transport systems · manufacturing sites located countries water resources classified ‘ highly stressed’ ‘ medium stressed’ UNEP (geodata grid unep ch) 11% total water use globally areas water scarcity recognise responsibility use water wisely protecting ability operate effectively areas China example active programme minimize water use place including efficient use cooling water Similarly India R& D site effluent treatment plant process water recycled 90% used purposes maintaining landscaped garden Australian manufacturing site joined national “ Drop Counts” water minimization programme

 
<>Would like provide additional information relating question provided
 No 

 
Question 1(a)(iii) risks
<>For question state time period possible associated financial implications Apart regulatory physical risks described answers questions 1(a)(i) 1(a)(ii) commercial risks does climate change present company including shifts consumer attitude demand
ready react changing world healthcare needs result climate change ceremony held Boston USA July 2006 AstraZeneca received 2006 Frost & Sullivan Global Excellence Philanthropy Pharmaceuticals & Biotechnology Award Frost & Sullivan particularly singled “ Access Medicines” programmes total $443m worth medicines (valued average wholesale price) available 2006 years ago joined forces British Red Cross help combat TB Central Asia specifically Kyrgyzstan Turkmenistan high proportion population live poverty line incidence TB remains seriously high levels funding AstraZeneca Red Cross/Red Crescent‘ s community based work focused raising awareness TB fighting stigma associated disease encouraging early diagnosis improving patient compliance building local capabilities prevention control January 2007 expanded partnership British Red Cross supporting years work hard hit areas South Africa Lesotho increased geographic footprint support activity partnership African Medical Research Foundation (AMREF) focuses helping strengthen healthcare systems integrate delivery TB/HIV/malaria programmes Uganda country high burden diseases combination diseases widely addressed programme presents opportunity develop innovate new model Africa availability appropriate medicines access healthcare depends having functional healthcare trained healthcare staff effective supply distribution mechanisms place ensure medicines used effect overall healthcare management parts developing world particular challenge explore best help meeting challenge 2005 AstraZeneca began pilot project Ethiopia designed build local capability managing breast cancer – second common cancer young women country

 
<>Would like provide additional information relating question provided
 No 

 
Question 1(b) Opportunities
<>For question state time period possible associated financial implications commercial opportunities does climate change present company existing new products services
opportunities largely represented potential reduce operating costs environmental impacts enhance stakeholder acceptability organization

 
<>Would like provide additional information relating question provided
 No 

 
Question 1(c) Strategy
<>For question state time period possible associated financial implications objectives targets strategies undertaken planning manage risks opportunities detailed questions 1(a) 1(b) include adaptation physical risks
AstraZeneca aims conduct business way seeks avoid detrimental impact global climate Board AstraZeneca routine review business processes approved strategy deliver aim essence strategy requires company 1 reduce emissions controllable internally 2 manage responsibly emissions irreducible including engaging key elements supply chain reduce indirect impacts exploring potential role carbon offsetting enhance management efforts and3 communicate internal external stakeholders clear transparent manner understand concerns key stakeholders understand approve strategy inform internal control efforts process discovering developing manufacturing distributing innovative medicines patients increasingly complex uses energy facilities travel transport addition size Company increases total energy consumed rises 2006 AstraZeneca sales approximately times combined predecessors 1990 Controlling transport related emissions remains huge challenge continue expand business activities invested electronic communication systems expanded use limited impact emissions sources investing heavily advanced driver training improve safety efficiency associated road travel increasingly using range hybrid alternative fuel vehicles 2000 greenhouse gas emissions associated products declined phasing CFC based pMDIs market share products changed patent expiries 2006 received approval market new asthma treatment Symbicort 30 million people suffer debilitating disease new therapy provides rapid effective asthma control pMDI containing HFA propellant launch new therapy world’ s largest pharmaceutical market inevitably lead increase emissionsof HFAs patients benefit new medicine Despite potential climate change implications believe expanded treatment choice potential benefits Symbicort pMDI offers asthma sufferers outweigh potential impact environmental performance identified areas business improvements reduce emissions global warming gases include things · Implementation energy conservation programmes particularly related fume cupboards laboratories · Implementation green technology principles process design · investment greener energy supply external power suppliers · Installation additional combined heat power plants · Investment ‘ cleaner’ vehicles (See response Question 4(a)(v) Reduction programmes information )Nevertheless major challenge continues reducing emissions quickly offset impact growing business continue work hard manage impact new climate change target aims ensure absolute emissions 2010 greater start decade 55% 1990

 
<>Would like provide additional information relating question provided
 No 

 
Section A – 2 Greenhouse Gas Emissions Accounting
Question 2(a)(i) – Methodology – Accounting Year
<>Please state accounting year used report GHG emissions
Financial accounting year 31 December 2006

 
<>Would like provide additional information relating question provided
 No 

 
Question 2(a)(ii) – Methodology
<>Please state methodology emissions calculated
 GHG Protocol 

 
<>Please provide additional information

 
<>Please state reporting boundaries data provided questionnaire
Option 1 – consolidated financial statements

 
<>Please provide additional information

 
<>Would like provide additional information relating question provided
 No 

 
Question 2(a)(iii) – Methodology – External verficiation
<>Please state information provided externally verified audited
 Yes 
Bureau Veritas verification statement included 2006 AstraZeneca CR Summary Report http //www astrazeneca com/sites/7/imagebank/typeArticleparam511715/astrazeneca cr report 2006 pdf

 
<>Would like provide additional information relating question provided
 No 

 
Question 2(a)(iv) – Methodology – Variations emissions
<>Please provide explanation significant variations emissions year year major acquisitions divestments introduction new technologies
significant variations accounting year previous years

 
<>Would like provide additional information relating question provided
 No 

 
Question 2(b) – Scope 1 Scope 2 GHG Protocol Year 1 answers
state direct indirect GHG emissions metric tonnes CO2e global Annex B countries having difficulty reporting emissions figures CO2e metric tonnes guidance answering CDP5 questionnaire available
<>Please enter accounting year used report GHG emissions details
31 December 2006

 
<>Total Global Emissions

 
<>Total Emissions Annex B countries

 
<>Scope 1 activity emissions globally
<>299000 CO2e metric tonnes

 
<>Scope 1 activity emissions Annex B
<>264000 CO2e metric tonnes

 
<>Scope 2 activity emissions globally
<>288000 CO2e metric tonnes

 
<>Scope 2 activity emissions Annex B
<>225000 CO2e metric tonnes

 
<>Please state MWh electricity purchased consumed company globally
923000 MWh

 
<>Please state MWh electricity purchased consumed company Annex B countries
835000 MWh

 
<>Please state percentage purchased consumed MWh electricity renewables globally
22 %

 
<>Please state percentage purchased consumed MWh electricity renewables Annex B countries
21 %

 
<>Would like provide additional information relating question provided
 No 

 
Question 2(c) – Scope 3 GHG Protocol Year 1 answers
<>Please enter accounting year used report GHG emissions details
31 December 2006

 
<>If possible provide estimates metric tonnes CO2e following categories emissions Use/disposal company’ s products services
<>358000 CO2e metric tonnes

 
<>Your supply chain

 
<>External distribution/logisitics
<>133000 CO2e metric tonnes

 
<>Employee business travel
<>209000 CO2e metric tonnes

 
<>Other
<>28000 CO2e metric tonnes

 
<>Please provide details sources emissions entered figure "Other" box
Waste incineration

 
<>Please provide information measurement scope 3 emissions

 
<>Would like provide additional information relating question provided
 No 

 
Section B – 3 Additional Greenhouse Gas Emissions Accounting
Question 3(a) – Scope 1 Scope 2 GHG Protocol emissions country
Using methodology set 2(a) state emissions country NB practical list emissions country country basis list countries significant emissions context business combine remainder “ rest world” information format (e g Excel) attach
<>
Country Scope 1
Emissions (Tonnes CO2e)
Scope 2
Emissions (Tonnes CO2e)
Sweden 24000 29000
United Kingdom 156000 45000
USA 42000 95000
Rest World 66000 173000

 
<>Would like provide additional information relating question provided
 No 

 
Question 3(b) – Facilities covered EU Emissions Trading Scheme
provide details total emissions metric tonnes CO2e facilities covered EU ETS details allowances issued applicable National Allocation Plans
<>Emissions total facilities covered EU ETS figure metric tonnes CO2e
179000 metric tonnes CO2e

 
<>Total number allowances issued National Allocation Plans applicable installations covered EU ETS
226000 metric tonnes CO2e

 
<>Would like provide additional information relating question provided
 No 

 
Question 3(c) – EU ETS impact
<>What impact profitability EU Emissions Trading Scheme
EU ETS visible impact profitability

 
<>Would like provide additional information relating question provided
 No 

 
Section B – 4 Greenhouse Gas Emissions Management
Question 4(a)(i) Reduction programmes
emission reduction programs does company place include reduction programs related operations energy consumption supply chain product use/disposal
<>Does company emissions reduction program
 Yes 

 
<>What baseline year emissions reduction program (YYYY format 1990)

 
<>If use baseline year reduction programme provide details reference point programme
reference point reduction objectives average emissions 2001 2002

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(a)(ii) Reduction programmes
emissions reduction targets period targets extend
<>Emissions reductions target (%)

 
<>Time frame reduction target
2006 2010

 
<>Further information
2006 – 2010 climate change target aims ensure absolute emissions 2010 greater start decade 55% 1990 greenhouse gas emissions business operations continue fall result planned launch Symbicort pMDI 2007 able continue achieve reductions total greenhouse gases (including emissions products) delivered year 2000 committed achieving 2010 target compromising ability provide new inhalation therapies bring benefit patients climate change objectives approved AstraZeneca Board 2005 require substantial efforts business produce 2010 absolute reduction 12% global warming emissions sources otherthan pMDIs compared 2005

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(a)(iii) Reduction programmes
<>What investment been/will required achieve targets (In $)

 
<>Over time period (In years)

 
<>More
believe revenue savings improved energy efficiency outweigh investment costs example higher efficiency low emission vehicles lower operating fuel costs tend retain higher resale values end working life Similarly new construction refurbishment existing assets delivered building sustainability features embedded small incremental capital cost offset lower lifetime costs

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(a)(iv) Reduction programmes
<>What emissions reductions associated costs savings achieved date result program
new Objectives Targets implemented 2006 data available financial impacts previous round targets reduce overall greenhouse gas emissions 10% 2001/2 reference point end 2005 saw key performance metric MWh energy used $million sales value generated fall 133 93 1 2001 2006 today’ s energy prices equates revenue saving $65 million 2006

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(a)(v) Reduction programmes
<>What renewable energy energy efficiency activities undertaking manage emissions
concentrating efforts areas activity FACILITIESReducing total energy demand facilities encouraging highest standards sustainability new assets optimising efficiency existing ones includes focus research development facilities efficiency fume hoods used contain harmful vapours heating ventilation air conditioning systems office manufacturing environments Continually seeking reduce carbon intensity energy sources energy procurement fuel switching house renewable technology Whilst seek opportunities build house use renewable low carbon technologies combined heat power plants installed major manufacturing bases Cheshire UK Puerto Rico using electricity supply contracts procure renewable electricity possible Currently obtaining 22% electricity use renewable sources TRAVEL & TRANSPORTSeeking minimise need travel goods transport use video netmeeting technologies optimizing freight logistics routes supply chain Optimising environmental impact necessary travel & transport including trialing use sea freight replace air freight long distance product movements increasing fuel efficient alternate fuelled vehicles sales force engaging company drivers eco driver training programmes PRODUCTSMinimising release non energy related greenhouse gases applying principles Green Chemistry process development refinement activities seeking improve energy efficiency manufacturing processes minimize release materials solvents Global Warming Potential reduce climate impacts waste streams

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(b) Emissions trading
company’ s strategy trading EU Emissions Trading Scheme CDM/JI projects trading systems (e g CCX RGGI etc) relevant Explain involvement following
<>EU ETS
managing emissions seven sites inside EU Emissions Trading Scheme net purchaser allowances second phase scheme EUETS Phase anticipate able sell net surplus amounting € 2 5 million money reinvested energy efficiency seven sites

 
<>CDM/JI
mandatory commitments trading schemes intend use CDM/JI voluntary emission reduction credits support strategy reduce emissions instance developing pilot trial UK business apply internal tax car users used partly fund purchase carbon credits offset emissions car use partly fund awareness campaigns incentivise emission reduction plans stage use offset make company carbon neutral believe work internal drive reduce emissions far possible

 
<>CCX
involvement

 
<>RGGI
involvement

 
<>Others
involvement

 
<>More

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(c) Emissions intensity
state measurement believe best describes company’ s emissions intensity performance historical current emissions intensity measurements targets
<>Best measurement emissions intensity company
appropriate indicator emission intensity business sales value measured US$ product small drug blister pack weighs information leaflet let packaging mass outputs unhelpful purpose indicator impact/benefit ratios

 
<>Historical intensity details
Year 2002 2003 2004 2005Group sales ($million) 17481 18849 21426 23950Total greenhouse gas (million tons CO2 – equivalent) 1 69 1 58 1 49 1 43Emission intensity (tons CO2 equivalent $million sales) 95 84 69 60

 
<>Current intensity details
Year 2006Group sales ($million) 26475Total greenhouse gas (million tons CO2 – equivalent) 1 31Emission intensity (tons CO2 equivalent $million sales) 50

 
<>Target details
set targets absolute emissions emission intensity perceive global climate systems finite carrying capacity anthropogenic emissions irrespective economic activity

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(d) Energy costs
total costs energy consumption e g fossil fuels electric power percentage total operating costs does represent
<>Total costs energy consumption (in US$)
152000000 US$

 
<>Percentage total operating costs (%)
0.5 %

 
<>More Details

 
<>Would like provide additional information relating question provided
 No 

 
Question 4(e) Planning
estimate company’ s future emissions provide details estimates summarize methodology factor cost future emissions capital expenditure planning considerations impact investment decisions
<>Do estimate company’ s future emissions
 Yes 

 
<>Please provide details estimates summarize methodology provide details estimate company's future emissions
projected future emissions 2010 order predict attainment 2006 2010 emissions targets projections use actual figures previous years emissions establish intensity trends incorporate actuarial estimates future corporate sales growth predict base case emissions Overlain estimates information sales forecasts established planned introductions new inhalation products projected attainment emission control activities analysis indicates able exit decade emitting greenhouse gases did start decade 55% did 1990

 
<>How factor cost future emissions capital expenditure planning
direct costs emissions small impact overall financial position capital investments account indirect costs utility costs

 
<>Have considerations impact investment decisions
 No 

 
<>Please provide details

 
<>Would like provide additional information relating question provided
 No 

 
Section B – 5 Climate Change Governance - Responsibility
Question 5(a)(i) Responsibility
<>Which Board Committee executive body overall responsibility climate change
AstraZeneca Board owns Corporate Responsibility (CR) strategy includes Climate Change Non Executive Director (Dame Nancy Rothwell) specific responsibility overseeing implementation strategy Company Dame Nancy supported Global CR Committee leads development CR framework Senior Executive Team (SET) senior managers accountable CR management areas based global CR framework taking account national functional site issues priorities Individually AstraZeneca responsibility integrate CR considerations day day decision making actions behaviours common platform supports effort worldwide includes Group CR Policy Group CR Standards Global CR Priority Action Plan provide framework understanding managing delivery CR commitment

 
<>Would like provide additional information relating question provided
 No 

 
Question 5(a)(ii) Responsibility
<>What mechanism Board executive body reviews company’ s progress status regarding climate change
CR targets included Business Performance Management framework relevant CR related objectives included personal targets new performance management regime implemented Company SET senior managers objectives reflect responsibility ensuring management systems action plans place manage CR integrated way areas standard performance management annual employee review process includes assessment employee’ s adoption compliance AstraZeneca business standards ethics

 
<>Would like provide additional information relating question provided
 No 

 
Question 5(b) Individual performance
<>Do provide incentive mechanisms managers reference activities relating climate change strategy including attainment GHG targets
 Yes 

 
<>If provide details
Remuneration senior management assessed basis attainment targets climate change objectives included process CR related objectives

 
<>Would like provide additional information relating question provided
 No 

 
General Information
<>Please add general information attachments related specific question like include response

 
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