Carbon dioxide (CO₂), one of the six key greenhouse gases identified in the Kyoto Protocol of the United Nations Framework Convention on Climate Change (UNFCCC), is emitted during the generation of the energy used at our facilities, when some of our wastes are incinerated and for transport. Other air emissions of materials with global warming potential are volatile organic compounds (VOCs), hydrofluorocarbons (HFCs) and chlorofluorocarbons (CFCs). VOCs can contribute to the generation of ozone at ground level, leading to urban smog as well as being greenhouse gases. CFCs are both ozone depleters and potent greenhouse gases.

The pie chart below gives the overall picture of our performance in 2007. It shows the proportion of our greenhouse gas emissions from various sources. Major sources are from the energy used at our sites, from travel and transport and from the release of the propellant gas that is an essential part of our pMDIs.

More details about our energy use, waste incineration, transport and the use of VOCs and CFCs in 2007 are provided in subsequent sections.

Total GWP emissions 2007: 1.29 million tonnes

We follow the GhG Protocol guidelines to calculate our emissions and to ensure that the data that we publish are as accurate and meaningful as possible. All gases are not equally potent in their contribution to the greenhouse effect and Global Warming Potential (GWP) is a way to measure their relative potencies, expressing each gas in the equivalent tonnes of CO₂, the gas primarily responsible for global warming. Our total greenhouse gases from all sources in 2007 amounted to 1.29 million tonnes CO₂-equivalent, compared to 1.31 million tonnes CO₂-equivalent during 2006. Of the total in 2007, 0.29 million tonnes arose as direct emissions from our activities classed as Scope I emissions by the GhG Protocol. The remainder are indirect emissions: 0.28 million tonnes are Scope II emissions from the generation of electricity, steam and district heating supplied to our sites by utility companies and 0.73 million tonnes are Scope III emissions, arising largely from transport activities and our products when they are used. Emissions of CO₂ from incineration of waste represent about 2% of total emissions (see the Waste management section for further information about how we are managing our waste). 

Emissions from energy use
We use energy to manufacture our products and to heat, cool, ventilate and light our facilities. Using fossil fuels, either directly or to generate electricity, results in the emission of CO₂.

Different energy sources give rise to different levels of CO₂ emissions. For instance district heating, primarily used in Nordic countries, normally uses bio-fuel, a renewable energy source, and results in very low net CO₂ releases compared with burning coal, oil or gas. We follow the GhG Protocol guidelines to calculate our emissions. Specific emission factors for direct combustion of fuels are taken from the IPCC (Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories, Workbook, Volume 2), and those for purchased electricity are sourced from the International Energy Agency ( www.iea.org.)

Third parties also undertake some of our manufacturing and we have been making efforts to understand what emissions may come from this activity. See the section on Sustainable production for further details of this exercise.

Our approach
Although AstraZeneca does not use a large amount of energy relative to its size, we recognise the importance of implementing programmes to maximise efficiency and minimise emissions.

Some progress is being made at a corporate level, such as building a proportion of renewable energy into energy procurement contracts and considering the energy impact of capital programmes. In addition, many of our sites around the world are pursuing energy efficiency projects and have made significant improvements.

For example, our sites in the USA have collaborated to establish a local Green Strategy, including energy efficiency improvement targets and a commitment that all new construction and major renovations will be designed to achieve sustainability certification. During the year, AZ became a member of the US Green Building Council and three current US projects are on track to receive certification through the USGBC program. At the end of December 2007, a contract was signed to purchase renewable energy credits from windpower covering 2% of the electricity used at US sites, making us an EPA Greenpower Partner and the EPA has accepted AZ as an Energy Star Partner.

The market for renewable electricity remains volatile as the growth in demand far outstrips increases in supply capacity. Nevertheless, our take-up of electricity from renewable sources has exceeded our expectations. A three-year supply contract with nPower to provide the majority of our UK facilities with Climate Change Levy exempt electricity for three years from July 2004 has now been successfully extended to December 2008. Furthermore, our headquarters building in London, our environmental science facility in Devon and our large research site in Leicestershire now have their electricity needs supplied from guaranteed CO₂-free renewable resources. 41 kte CO₂ has been avoided by these measures.

Our performance
During 2007, total energy use at our facilities was 2390 GWh; 2% less than 2006 consumption. The main energy sources were natural gas (49%) and electricity (40%). The energy consumed in manufacturing activities accounts for 70% of the total. The Group's energy costs are approximately $149 million. CO₂ emissions from energy in 2007 were 541 kte, a decrease of 4% from 2006. The nature and scale of our energy use and emissions of CO₂ are shown in the charts.

Total energy consumption in 2007: 2,390GWh


CO₂ emissions from facility energy consumption in 2007: 0.54 million tonnes

Emissions from the use of Volatile Organic Carbon Compounds (VOCs)
See Emissions to air and water

Emissions of CFCs, HCFCs and HFCs
See Ozone depletion

Emissions from transport
Emissions from transport have an impact on climate change, acidification and photochemical smog. In a complex global organisation such as AstraZeneca it is difficult to produce precise data for emissions from transport. Furthermore, different calculation methods for estimating acidification and photochemical smog give very different results and we therefore only report our emissions of CO₂. We use the GhG Protocol guidelines to calculate transport emissions.

Our approach  
We have selected a few logistic and road haulage companies to partner for our main distribution routes. Priority is given to companies who have good procedures for safety, health, environment and quality management, modern trucks with efficient engines and drivers trained in eco- and safety driving. For airlines, the age and type of their fleet is taken into consideration in the selection of partners.

A reduction in the demand for freight transport can be achieved by either reducing the volume of goods or reducing the distance for movements. Bulk transport and final packing of our products at our marketing companies reduce our demand for freight. Internally, efforts have been made to make transport more efficient and to use more environmentally friendly packaging options. The special handling aircraft shipment, using slip-sheet techniques, reduces volume significantly. Normal handling would require pallets, which have a much bigger volume than the slip-sheets. Wherever possible, reusable blankets have replaced polystyrene boxes for temperature-controlled transport.

AstraZeneca’s sales forces have tested bio-ethanol powered cars and hybrid cars. From 2005 and onwards, all new cars purchased for the sales force in Brazil can be refuelled with ethanol 'Flex Fuel'. Today more than 96% of the cars in the Brazilian Marketing & Sales’ car fleet can be powered by either ethanol or petrol. Ethanol is a non-fossil fuel from renewable resources and has much lower impact on climate change than equivalent use of petrol.

Following a successful pilot program in 2006, which used partial-zero emissions hybrid vehicles at 21 locations across the US, drivers in metropolitan areas are now encouraged to choose a hybrid vehicle. By end 2007, we had 54 hybrid vehicles in our US fleet. The careful selection of vehicles, combined with programs to maximise fuel efficiency by maintaining vehicles properly and training drivers in fuel-efficient behaviours, has put US Fleet Services on track to achieving their goal to reduce greenhouse gas emissions from vehicles by 12% - about 9,000 tonnes - by 2010.

10 SAAB Bio-power were tested in Sweden during the winter 2005-6. The result was positive and by end of 2007 there were 100 'Flex Fuel' vehicles in the Swedish fleet (approximately 10%). These vehicles can be powered by either petrol or E85 (85% ethanol and 15% petrol.) Our ‘Flex Fuel’ cars have the potential to deliver a reduction in CO₂ emissions each year of around 400 tonnes. We also provide our drivers with training in “eco-driving” techniques, which encourages them to think ahead, planning acceleration and deceleration, anticipating traffic flow and maintaining a steady speed to improve fuel efficiency as well as safety.

Local initiatives are in place at many of our sites to encourage more energy-efficient "green" commuting. Web-based tools for car-share are in place in for all employees in Sweden and at Alderley Park and Macclesfield sites in the UK. These are used to match people for commuting, business travel and private trips. Green Commuter Plans have been established in Sao Paolo, Brazil and Alderley Park, UK, where the company supports bus-links designed to match the commuting habits of our employees. In Sweden the travel patterns of employees have been mapped and this survey will be used to promote more environmentally friendly commuting behaviour. In the US, to help reduce emissions associated with employee travel to and from work, we provide employees who commute to work with a variety of options and services, including carpool networks and telecommuting opportunities. Our US headquarters, again in 2007, was recognised by the Department of Transportation for continuing to be a model in Delaware and nationally in the area of traffic mitigation – providing opportunities and encouragement for employees to use alternate modes of transportation and/or to commute outside of peak travel times.

Our performance
During 2007, CO₂ emissions from transport activities, including transport of products and business travel by road and air, totalled 0.35 million tonnes. The biggest single contribution to these emissions is associated with business car travel for sales and marketing activities. Our growing business makes travel-related reductions an ongoing challenge.

In 2007, business air travel contributed 63 thousand tonnes to our CO₂ emissions, an increase of 2% from 2006, though effective use of video and teleconferencing is helping limit the need for our personnel to travel.

During 2007 the reported business travel by car amounted to 730 million kilometres, a distance equivalent to 18,300 times around the world. This is an increase on last year of 4% and is mainly attributable to an increase in sales and marketing activity and improved reporting. More than 90% of the miles driven are associated with sales and marketing.

Total travel & transport CO₂ emissions 2007: 0.35 million tonnes