Industry Context
The pharmaceutical sector is a significant contributor to global greenhouse gas emissions, producing 55% more CO₂ per million dollars of revenue than the automotive industry1. As a world-leading Contract Development and Manufacturing Organization (CDMO), PCI Pharma Services supports 200 clinical trial protocols annually across more than 100 countries. Our Storage, Distribution, and Returns services rely extensively on depot storage facilities and a combination of ground and air transportation, provided through one of our strategic partners, Marken, UPS Healthcare Precision Logistics, to ensure the timely and secure delivery of life-saving medications worldwide.
The Challenge
PCI Pharma Services has committed to reducing Scope 3 emissions intensity by 25% by 2030, a target pending validation from the Science Based Targets Initiative (SBTi). Achieving this ambitious goal necessitated the identification of a cost-effective emissions reduction strategy for our specialized shipping and logistics operations; one that would maintain the highest standards of quality and operational efficiency.
The Solution: Green Investment Pilot
To address this challenge, PCI partnered with Marken to participate in its three-month Green Investment Pilot. This initiative sought to generate measurable and cost-effective reductions in carbon emissions while maintaining uninterrupted service. The pilot prioritized the integration of sustainable fuels, such as Hydrotreated Vegetable Oil (HVO) for ground transportation and Sustainable Aviation Fuel (SAF) for air transport, alongside renewable energy adoption for warehouse operations.
Framework of the Green Investment Pilot
Marken designed the pilot to streamline and incentivize corporate investment in emissions reduction through a book-and-claim system. This approach ensured immediate carbon capture recognition upon processing, aligned with the Smart Freight Centre’s (SFC) Market-Based Balance Model (MBBM) framework. The initiative also fostered supplier partnerships to improve long-term biofuel accessibility and drive demand. To ensure data integrity and procedural transparency, Marken collaborated with an SFC-accredited emissions calculation provider and an independent audit firm for validation across both air and ground transport modalities.
“Reducing supply chain emissions in pursuit of our joint climate goals requires close collaboration, and flexible, cost-effective solutions that don’t disrupt operations. At Marken, we are grateful to work with ambitious partners like PCI Pharma Services, proving that together, real and scalable impact is possible.” — Sandra Voss, Director, Global Sustainability, Marken, UPS Healthcare Precision Logistics
PCI’s Role in the Pilot
As a participant in the Green Investment Pilot, PCI:
- Identified High-Impact Sites: We selected three high-volume sites in the UK and the US to maximize the potential benefits of the initiative.
- Seamless Integration: As an established Marken partner, PCI leveraged existing account numbers for streamlined emissions tracking and billing.
- Tailored Investment Strategy: We set investment levels on an account basis, applying them at the shipment level to align with actual fuel consumption.
The pilot aimed to assess whether a minimum standard investment rate of 0.5% of invoiced services could yield up to an 8% reduction in carbon emissions across all participating accounts. Marken’s operational teams facilitated this by utilizing a network of certified, second-generation biofuels for air and ground transportation.
Outcomes and Impact
The pilot successfully reduced over 150 metric tons of carbon emissions across all participants, with PCI alone achieving a total reduction of 13.9 metric tons. With minimal financial investment, PCI realized an absolute emissions reduction of over 18% across specialty clinical shipments, primarily driven by SAF utilization.
Beyond carbon reductions, the pilot demonstrated significant operational and strategic benefits:
- Effortless Implementation: The initiative required no operational disruptions, serving as an all-in-one solution to reduce Scope 3 emissions.
- Alignment with Sustainability Targets: Marken’s annual emissions reductions align with SBTi criteria, enhancing PCI’s ability to report progress on its sustainability commitments.
- Regulatory Compliance Risk Mitigation: The initiative supports compliance with global and local emission reduction regulations, reducing future regulatory risks.
- Industry-Wide Decarbonization Support: By participating in this initiative, PCI contributed to accelerating decarbonization efforts within the logistics sector.
Looking Ahead
Tim Hansen, ESG Director at PCI Pharma Services, remarked: “The pilot seamlessly integrated into our operations and provided a cost-effective approach to reducing emissions within our supply chain. Marken proved to be a highly reliable partner throughout the program, and the results have surpassed our expectations. We eagerly anticipate expanding our collaboration in the future.”
As PCI advances toward its Net Zero emissions goal, we remain committed to engaging with clients and suppliers, sharing insights, and fostering innovation in sustainable logistics solutions.
Sources:
Malm, Alexander. “Big Pharma Emits More Greenhouse Gases than the Automotive Industry.” Brighter World, 12 June 2019, https://brighterworld.mcmaster.ca/articles/big-pharma-emits-more-greenhouse-gases-than-the-automotive-industry/.
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