FAMAR's approach to Climate Change - Protecting the Environment
ENVIRONMENT
BUSINESS: 326 PRACTICES
TOPIC:
Initiative
SUBMITTED FROM:
FAMAR
Objective Action
Within FAMAR Group, we meet our responsibility to protect the environment in many different ways. We are continuously working with the goal to reduce the environmental impact of our business activities and develop product solutions that benefit the environment. For FAMAR Group, an efficient approach to raw materials and energy makes both ecological and economic sense. Our measures help reduce environmental impact and at the same time cut the costs associated with materials, energy, emissions and disposal.
Climate change affects us all and is one of the greatest challenges that humankind will face in the future. FAMAR Group considers climate protection and the related reduction of greenhouse gas emissions to be a top priority. We anticipate that our business areas of health care will be impacted by climate change but will also be part of the solution.
Responsibility for steering and monitoring health, safety and environmental protection (HSE) across the Group lies with the enabling function of the same name. It establishes targets, key performance indicators and framework conditions in the form of corporate policies and other measures. HSE management systems are integrated into business processes across the Famar Group. Operational implementation is effected in the divisions. The continuous review and revision of corporate policies by the HSE function and regular mandatory internal audits and external certification processes ensure that the systems at all sites meet the requirements in each case.
Target Audience
Famar Group‘s products and services are designed to help people thrive within the planetary boundaries. We want to contribute to decrease the environmental footprint within our operations and our value chain.
Duration
2020-ongoing
Description
Famar´s Sustainability Strategy
FAMAR´S Sustainability Strategy, with a time horizon of 2030 and a milestone in 2025, focuses on actions and results based on four main axes: zero carbon footprint, zero water waste, zero accidents at work, reduction of gas emissions through electrification, as well as promoting diversity and inclusion in the working environment.
In particular, in FAMAR Group, by incorporating green practices, we ensure the safe management of expired or altered pharmaceuticals and the recycling of packaging materials, in the context of sustainable development and Preservation of biodiversity.
We aim at the proper management of water resources, the use of sustainable raw materials and the development of products with improved sustainability performance packaging, i.e. with the possibility of recycling, the use of alternative materials, saving the volume or weight of packaging materials, etc.
Sustainable Packaging
We are advancing our sustainable packaging activities. Key actions are reducing, designing for recycling, recollecting and reusing / usage of recycling material, and responsible sourcing. We are aligned with the circular economy principles of Minimize (waste and pollution), Recirculate (circulate products and materials – at their highest value), Regenerate (reduce emissions and regenerate natural systems), and Partnerships (collaboration across the value chain).
The pharmaceutical as well as the self-care sector are highly regulated, operating effectively within an evidence-based framework to maintain the highest standards. Famar Group uses a variety of materials for its product packaging, with the most common being paper and plastic. Within our area of influence, we seek to address sustainable packaging along the value chain.
Sustainable packaging should offer maximum functionality with the best possible product protection, avoiding health and safety risks, cause minimal ecological impact, and be as circular as possible. We support regulatory frameworks and policy initiatives that promote and incentivize innovative sustainable packaging technologies, processes and business models, digitalization, strengthens industry competitiveness and reflects evolving market conditions.
Energy
Famar Group’s energy needs have the greatest direct impact on our greenhouse gas emissions. Production accounts for the most significant share of our energy requirement, which depends on the production operations at the sites and the depth of our value chain.
Among the targets we have set within the context of our climate strategy is to cover 100% of purchased electricity needs with renewable energies by 2024, with the aim of creating a framework to improve adaptation to climate change and ensure climate neutrality. To achieve this objective, we have produced concluded additional supply agreements for electricity from renewable energies in Spain, Italy and Greece in 2024. We are thus on track to achieve our target of 100% in 2024.
Greenhouse Gas Emissions
At Famar Group, air emissions are primarily caused by the combustion of primary energy sources such as gas and oil. These are used to generate electricity, steam and auxiliary energy (such as for heating and cooling) for the manufacture of our products. Further emissions derive from chemical processes in which coal and other energy sources are required to produce chemical reactions. Emissions are also generated by our vehicle fleet and in the extraction and processing of raw materials. Direct emissions from our own power plants, vehicles, waste incineration plants and production facilities (Scope 1) and indirect emissions from the procurement of electricity, steam and cooling energy (Scope 2) are determined at all environmentally relevant sites whose annual consumption exceeds 1.5 Terajoules. In this connection, we have drafted Group regulations for the Group-wide recording of greenhouse gas emissions. In line with the GHG Protocol, we report indirect emissions (Scope 2) according to both the location-based and market-based methods. Famar Group’s greenhouse gas emissions fell further in 2023 compared to 2020.
Famar Group secures 100% Green Certificates for 2024
We are proud to announce that FAMAR Group has secured 100 Green Certificates for the electrical supply in our Baranzate and Greek BUs for 2024. Following Alcorcón's certification in 2022 these efforts collectively result in a 100 sourcing of electricity from renewable sources all electricity purchased by FAMAR comes from renewable sources!
A major milestone in our sustainability journey, with the ambitious sustainability goal of 30 % reduction in terms of CO2 emissions, compared to 2020 baseline. A result expected in 2030 but achieved already in 2024 in only 3 years. This accomplishment underscores our engagement and commitment in terms of “Green initiatives” and environmental impact, supporting our broader goal of achieving net zero emissions by 2050 and putting our Company in a real advanced position not only in comparison to our competitors but also our customers
100% renewable energy is an energy system where all energy use is sourced from renewable energy sources. The endeavor to use 100% renewable energy for electricity, heating/cooling and transport is motivated by global warming, pollution and other environmental issues, as well as economic and energy security concerns.
Compliance with EUDR
The EU Deforestation-free Regulation (EUDR) is a policy framework to address and mitigate the environmental impacts of deforestation. It is an integral part of the EU Green Deal and is in line with the broader EU strategy to protect forests worldwide.
The regulation sets out criteria for which products can be classified as deforestation-free and requires companies to implement sustainable sourcing practices and traceability measures to ensure that their supply chains do not contribute to deforestation. By promoting transparency and accountability in the production of key commodities, the EU aims to reduce pressure on forests and protect biodiversity.
Biodiversity
Preservation of biodiversity, Natural environment, waste and usage of natural resources are included in FAMAR´s Sustainability Strategy.
Moreover, in Suppliers´ Code of Conduct the following biodiversity clause is described.
Suppliers need to:
• Implement policies or programs to prevent deforestation, pollution, or species endangerment in connection with the supply of their materials.
• Where relevant, develop systems and processes that maintain, enhance or restore the integrity, connectivity and resilience of all ecosystems and halt or restore biodiversity loss, in accordance with the UN Global Biodiversity Framework.
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Impact on Society
Internal understanding around FAMAR´s Group impacts and risks and opportunities associated with climate change, is ensured by monthly Sustainability update and communication initiatives; Additionally, a common tool for Energy tracking purposes has been developed and maintained with contribution of different functions at site level, consolidated at group level.
Decarbonization Plan
Famar´s Decarbonization Action Plan 2024 – 2026 in 5 steps is depicted below:
1. Measure Carbon footprints
2. Set Reduction Targets (Science Based Targets, Net Zero Targets, like 30% up to 2030)
3. Implement Reductions - Create a Carbon Management Plan
4. Finance Climate Projects (Solar Panels installation)
5. Communicate transparently
It is a Holistic approach to decarbonization, including emissions calculation, reporting and reduction.
Climate Targets
Without suitable countermeasures, global temperatures will rise by well over 2 degrees Celsius. This will threaten our planet’s ecosystems, jeopardize the health of people, animals and plants, and place the food supply for a growing world population at risk. FAMAR Group is taking broad climate action to reduce greenhouse gas emissions within our company and along our entire value chain in accordance with the Paris Agreement. At the same time, we are working on drastically reducing the Group’s environmental impact.
Famar Group is committed to mitigating climate change and limiting global warming to 1.5 degrees Celsius in line with the EU Green Deal. We are looking to achieve this with an absolute reduction of 30 percent in our emissions (scope 1 and 2) by 2030. We have included making our own sites climate-neutral in our Group targets to be met by 2050. To achieve this, we are about to implement a number of measures focusing on energy efficiency, energy sources, offsetting and the value chain.
Famar Group’s products and services are also linked to emissions that are generated before and after the company’s activities, for instance in the supply chain or by customers (scope 3 emissions).
Famar Group measures Scope 1 and 2 from FY2021, with energy baseline of FY2020.
Scope 3 is measured for FY 2023 and onwards.
As per the EU Green Deal and EU Climate Law, we have a roadmap of reducing the CO2 emissions by 30% until 2030.
For FY 2023, we achieved to reduce emissions by 29%, compared to 2020, very close to the FAMAR’s Group Sustainability target of reducing emissions by 30% by 2030 compared to 2030.
This decline compared to 2020 is primarily due to energy consumption reduction and CO2 reduction initiatives between the Group sites, such as the following:
1. New LED technology lighting, installed in 8 industrial units, a total investment cost of 500,00 euros, with annual savings of 2,087,000 KWh
2. Solar Panels installation in 4 production units, with a total cost of investment of 2,700,000 euros and photovoltaic contribution to electrical energy up to 50%
3. 8 Energy Leaders, as Experts communities, participating in Cross-Energy Internal Audits between the sites and contributing in 2,000,000 euros costs savings from Expert Communities proposal.
4. Investments in Best Value Energy Efficiency Equipment of 300, 000 euros, in cooling units, air distribution networks and automations, air cooling units, air compressors, inverter motors, etc.
5. Energy saving campaigns to raise energy saving awareness to Famar employees, explaining the reasons and the urgency of the topic,
6. Sharing the energy saving initiatives and plans within the Group and requesting their contribution to that critical for the company and our customers’ objective.
For FY 2024 and onwards, we are planning to have electricity from 100% renewable energy sources for all Famar’s Group sites, with the aim of creating a framework to improve adaptation to climate change and ensure climate neutrality.
The target is to develop a roadmap to deliver net zero emissions across all of FAMAR’S operations by 2050, with the final desired result that by 2050 greenhouse gas emissions and removals must be balanced and to promote policies that reduce greenhouse gas emissions and policies for the Group's better adaptation to climate change.
Initiative Location
Famar Group & across the value chain
Working with Organization
In reporting greenhouse gas emissions, we consider the recommendations of the Greenhouse Gas Protocol (GHG Protocol).
Furthermore, our company is using Ecovadis and its platform as the one source of truth for its sustainability performance with ratings on four themes (Environment, Labor & Human Rights, Ethics and Sustainable Procurement), including details of relevant strengths and improvement areas.
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Workers Participation
ESG initiative is considered a Strategic Objective for FAMAR, endorsed by the Board and monitored at Executive level. Under the umbrella of Legal Department, the aim is to publish the ESG Report to consolidate achievements and guarantee sustainable and continued growth in the coming years.
To reach climate neutrality, we know we can’t do this alone. So, we’re collaborating with other entities to create new pathways for reducing Famar Group’s emissions. When we combine our expertise with the knowledge, technologies and power of suppliers, providers, consultants, consumers and pharma chain members, together we can achieve profound impact.
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Benefits for Οrganization
FAMAR is building a strong relationship of trust with its customers, who are very sensitive in Corporate Social Responsibility (CSR) topics and who appreciate and recognize the efforts of our company to ensure that it is situated within the Group of Global Leaders that are strongly performing in the Corporate Social Responsibility area.
CSR demonstrates that FAMAR is a business that takes an interest in wider social issues, which will attract customers who share the same values.
Benefits of Corporate Social Responsibility are:
• Improved public image
• Increased brand awareness and recognition
• Cost savings
• Advantage over competitors
• Increased customer engagement
• Greater employee engagement
• More benefits for employees
FAMAR, as a Leader in its sector takes Corporate Social Responsibility and Sustainability aspects of the business very seriously and makes every effort to continually improve its performance to be considered a trusted partner for its customers.
Connection with Global Goals
