Articles

Polpharma Group's environmental policies and objectives

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Environmental management at Polpharma Group is based on and compliant with ISO 14001, ISO 45001, and ISO/IEC 17025 Integrated Environmental, Occupational Health & Safety Management System. In 2023, In addition to periodic third-party reviews, 41 internal system audits took place.  

We also have an Environmental Policy in place, which covers the following key areas:

• reducing the impact on climate change;

• water conservation;

• transition to circular economy;

• minimizing impacts throughout the value chain.

To reduce our impact on the climate and the environment, we have committed to achieve the following environmental objectives:

• reduce GHG emissions (CO₂ equivalent) by 17% by 2025 in Scopes 1 and 2 (relative to 2021);

• develop and implement ecodesign standards for the development of new substances and drugs;

• reduce waste from production and auxiliary processes in relation to production volume by 5% until 2025 (relative to 2021).

To achieve our goals, we will also continue our environmental education programmes for our employees and other stakeholders (suppliers, pharmacists and patients).

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Handling greenhouse gas emissions

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We seek to achieve climate neutrality in Scopes 1 and 2 our operations. We are implementing solutions to curb greenhouse gas emissions and we are planning similar measures in cooperation with our suppliers and other value chain partners. We have identified the most important climate risks and carried out a scenario analysis process. We aim for a portion of our consumed energy to come from renewable sources. We take measures to reduce energy consumption in operations.

We analyse the carbon footprint, i.e. greenhouse gas (GHG) emissions in Scope 1, 2, and 3. Fuel and energy consumption is tracked in the companies’ internal records.  

GHG emissions were calculated according to the following standards:

• The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard REVISED EDITION, WRI, WBCSD;

• The Greenhouse Gas Protocol: Scope 2 Guidance: An amendment to the GHG Protocol Corporate Standard WRI, WBCSD;

• Corporate Value Chain (Scope 3) Accounting and Reporting Standard.  

The analysis and calculations undergo an annual third-party verification. CO₂ is included in emission disclosures for fuel, electricity, and steam. Calculations also include gases from released refrigerants.

In 2023, the total market-based carbon footprint of Polpharma Group in Poland was 123,858 tonnes CO₂e (29.77% lower than in 2022 and 28.47% lower than in 2021), while the total location-based carbon footprint was 138,681 tonnes CO₂e (20.47% less than in 2022 and 18.42% less than in 2021).¹

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Scope 1², or direct emissions from fuel combustion and released refrigerants, accounted for 7.0% of the carbon footprint. The top contributor was fuel consumption by company cars. We have recently replaced diesel-powered vehicles to advanced gasoline engines or hybrid drives.

Scope 2², which represents indirect energy emissions, accounted for 41.3% of the carbon footprint, of which 51.7% was due to the consumption of purchased electricity. The Pharmaceutical Plant in Starogard Gdański was responsible for 68.8% of Scope 2 emissions. Scope 2 emissions decreased due to the launch of own photovoltaic installations, producing energy from renewable sources, solutions implemented as part of the Energy-Saving Programme (ESP) and the use of sustainable biomass for the production of steam at the CHP Plant, which is purchased by Polpharma. In addition, a significant drop in emissions was associated with switching the electricity supplier to a company with a lower emission rate per MWh of energy generated.

Scope 3², or indirect emissions in the value chain, accounted for 51.7% of the organisation’s carbon footprint. The top contributor in Scope 3 were emissions from raw materials purchased, a category with the highest share of all three scopes², accounting for 23.0%² of the carbon footprint.

In the coming years, we aim to reduce GHG emissions from thermal energy production for Polpharma by a minimum of 50%. As a first step, we implemented a sustainable biomass combustion process, which replaced 18% of the coal fired by the CHP Plant in 2023. As a next step, we are contemplating abandoning coal completely and switching to gas-fired steam production. Ultimately, we are considering a transition to hydrogen-based installations.

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Energy consumption at Polpharma Group

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In response to the rise and volatility of energy costs, which significantly affect manufacturing costs, we took steps to make smarter energy purchases. These included:

• purchasing energy on the Polish Power Exchange (TGE) using price optimization tactics;

• purchasing natural gas with anticipatory tactics;

• analyzing the option to purchase green energy through a PPA (power purchase agreement).

We are also investing in diversifying energy sources to improve our energy mix. In 2023, we switched our electricity supplier to one with a lower emission rate. A 2.4 MWp photovoltaic farm with an area of over 25 thousand m² has been in operation in Starogard Gdański since 2023, with 24 rows of structures and over 4 thousand photovoltaic panels. It provides an 8% share of green electricity for the plant’s energy demand. The resulting zero-emission energy is used by our production plants for internal consumption, allowing us to change the daily power consumption and reduce the amount of third-party electricity.

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Energy Saving Programme

We continue our Energy-Saving Programme (ESP) across all plants.

Within the ESP, a cross-functional team of engineering specialists looks for opportunities to improve energy efficiency during audits of equipment, processes, and work organization. Subsequently, with the support of controlling department staff, it conducts a technical and economic analysis of the proposed improvements. The effects of implemented solutions are monitored by means of control audits and measurements from automation systems. Owing to the initiatives, we have saved about 10,000 MWh of electricity and almost 52,000 GJ of heat over the last 5 years. Our efforts will be continued in the following years.

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In 2023, the programme allowed us to save approx. 3,645 MWh of electricity and approx. 17,494 GJ of heat.

The main drivers of these savings in 2023 were:

• construction and commissioning of renewable generation systems in every location;

• upgrades of indoor lighting systems in manufacturing, laboratory, warehouse and office facilities;

• upgrade of the outdoor lighting system;

• optimization of contracted power for each location;

• implementation of cost-effective operation modes for ventilation and air conditioning systems;

• optimization of chilled water system operation;

• heat recovery from utility systems;

• thermal upgrading of production facilities;

• upgrades to heat transmission networks and boiler plants.

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Water, effulents and waste

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Water consumption and treatment

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Reduction of water consumption, presence of active substances in wastewater, or antibiotic resistance are particularly relevant for the pharmaceutical industry; these considerations will increasingly affect the pharmaceutical business in the coming years.

Polpharma Group in Poland aims to reduce its water consumption, also by means of planned circuit-closing measures. Furthermore, it takes steps to minimize API content in wastewater.

The plant in Starogard Gdański has its own river water intake and four groundwater wells. Other plants of Polpharma Group in Poland use groundwater from public supply wells. For many years, we have been running a campaign to raise employee awareness about reasonable water use for domestic and manufacturing purposes. Nearly all cooling systems in Starogard Gdański have been upgraded to ensure well water is only used as a back-up if the river water does not meet the necessary parameters to be used for cooling (in summer).

Industrial wastewater and sewage generated by the Starogard Gdański plant flow to an onsite treatment plant. The plant treats wastewater using mechanical, chemical, and biological methods.

Polpharma Group in Poland takes measures to minimize the amount of APIs discharged to the Wierzyca River with wastewater treated in the company’s treatment plant. The reduction of API content is not required by law, but contamination with these substances poses a threat to the environment and humans, may lead to antibiotic resistance and loss of biodiversity, representing one of the biggest challenges for the pharmaceutical industry. Since 2014, we have been cooperating with the Gdańsk University of Technology in this area.

In addition to the conventional physical and chemical monitoring carried out at the wastewater treatment plant, biological evaluation of treated wastewater is conducted. Regular testing confirms that there is no acute toxicity in the wastewater discharged into the Wierzyca River, and therefore the wastewater is safe for the environment.

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Non-water waste treatment

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Polpharma Group in Poland is committed to minimizing waste. We implement low-waste technologies, optimize manufacturing processes, and use top-quality raw materials. We generate 40 different types of waste, including 15 hazardous types. Since 2022, a digital waste management programme has been in place in our manufacturing site.

In 2023, 26% of our waste was recovered or recycled. These processes are mainly used for waste solvents, composite packaging, plastic and paper waste, steel and glass. Waste unsuitable for recovery or recycling is disposed of by specialist companies in an environmentally safe manner. Production waste has not been landfilled for years. Whenever waste is moved, compliance with ADR regulations for hazardous waste transport is ensured.

Waste is collected separately at source (place of production), and is kept and stored only at designated, clearly marked, and safe places. We regularly assess the environmental impact of waste and are looking for new recycling, recovery and neutralization opportunities, as well as safe ways of storing and moving waste.

Waste management is monitored in accordance with the Act on Waste and environmental permits. Waste is transferred to recipients who hold the necessary permits, taking into account the ADR regulations. Waste generated in manufacturing processes is additionally tracked with the relevant affiliates and departments based on production volume.

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Materials used in manufacturing

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We use various organic and inorganic chemicals and their mixtures to synthesize APIs. All chemical substances and mixtures must meet the highest quality standards and the legal requirements for ensuring a high level of health and environment protection and evaluation of information on the properties and hazards of chemicals (in accordance with the REACH regulation), classification, labelling and packaging (regulated by the CLP regulation), and multimodal, road, rail, air, and sea transport (in accordance with the ADR, RID, IATA DGR, IMDG regulations).  

The existing management system has been designed to provide access to safety data sheets, communicate risks and mitigation measures, and ensure safe working conditions as stated in internal procedures and instructions. For substances imported from non-EU countries in quantities of more than 1 tonne per year, we perform REACH registrations. When evaluating suppliers, we check their awareness of and compliance with legal requirements for handling of chemicals (based on REACH and CLP regulations). We improve the API categorization system based on toxicology data to ensure safer working conditions.

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Ecodesign

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Ecodesign goals are defined in the Sustainability Strategy of Polpharma Group in Poland. The first standard for new active pharmaceutical ingredients was implemented in 2022. The procedure describes the processes for their development and manufacture, as well as the improvement of technology in line with eco-design principles.

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Polpharma Group employees role in environmental protection

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We have created programmes and incentives for employees to broaden their knowledge and support them in taking steps for the benefit of the environment at work and in private life.

The Green Process Award encourages employees to seek innovations and sustainable solutions with a view to mitigating the adverse environmental impact of our production processes, products, and services. The best submitted and implemented initiatives are rewarded with a financial bonus and points in the cafeteria system. During the award ceremony, the winners plant their ‘own’ trees. In 2023, 14 initiatives competed for the Green Process Award. By way of example, the winning ideas made it possible to minimize and regenerate solvents, and to use process waste-water for sanitary purposes. We have also updated the terms and conditions of the award to align it with our environmental objectives starting from the next edition.

During the annual Green Week, we provide employees with hands-on advice on sustainable behaviors. The topics covered in 2023 included biodiversity, climate neutrality, plastics (including microplastics), municipal waste segregation. Employees had the opportunity to take part in the webinar: “What nature gives us, or the importance of biodiversity” and a workshop on conscious consumer choices. We cleaned up about 400kg of obsolete equipment in our offices. In Starogard Gdański, waste was collected from employees, including small domestic appliances, batteries, expired medicines, and plastic screwcaps brought from home.

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Sustainability initiatives

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Our Car Policy obligates us to introduce mobility solutions supporting the mitigation of environmental impacts. We are shifting from diesel engines to a new generation of turbocharged engines. As of 31 May 2024, 49% of our fleet were hybrids.  

The Office in Warsaw has a Green Office certificate, which confirms that the office meets specific sustainability criteria, which include technical matters, broadly defined sustainability education of employees and customers, as well as building a friendly work environment.

Polpharma is a member of the Partnership for Sustainable Development Goals, a programme initiated by UNEP/GRID-Warsaw in collaboration with the United Nations Environment Programme. When joining the Partnership, we committed to:

• taking joint activities aimed at developing the Partnership initiative;

• raising awareness of sustainable development and environmental protection;

• promoting the ideals of sustainable development.

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Conclusion

Sustainability in manufacturing processes remain our top priority in recent years, reflecting our commitment to creating a better world for both patients and the environment. Striving for excellence in API manufacturing while minimizing our ecological footprint is certainly challenging, but the efforts are yielding significant results.

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¹ The change was calculated after recalculation of Scope 3 data for 2021 and 2022 and recalculation of Scope 1 propane emissions for 2022.

² Data calculated using the market-based method.