Pfizer Accelerates Climate Action through Pan-European Virtual Power Purchase Power Agreements

The impact of climate change on human health is unequivocal. Between 2030 and 2050, it’s expected to cause 250,000 additional deaths per year¹ from increased effects like heat stress and malnutrition.

Guided by our company purpose, “Breakthroughs that change patients’ lives”, Pfizer remains committed to reducing our company’s greenhouse gas (GHG) emissions. We’ve set a goal to achieve to achieve the voluntary Net-Zero Standard – aiming to reduce company emissions by 95% and value chain emissions by 90% from 2019 levels – by 2040², 10 years earlier than the expectations of the standard.

To accelerate Pfizer’s transition to the Net-Zero Standard to achieve our goal of using 100% renewable energy by 2030³, Pfizer recently signed a set of European virtual power purchase agreements (VPPAs) centered on solar power in southern Spain.

Virtual Power Purchase Agreements are financial instruments in which a company agrees to purchase the renewable energy attributes (such as renewable energy certificates) associated with a specific amount of electricity generated from renewable sources.

The 15-year VPPAs were brokered by Schneider Electric, a leading PPA marketplace solution provider and a consultant on renewable energy procurement and carbon management. The agreements – entered into with Bruc, one of the largest renewable energy groups in Spain – comprise a contracted capacity of 124MW from four new solar projects to be located near Seville, Spain, and cover the equivalent of all of Pfizer’s purchased electricity for its manufacturing, R&D, and commercial sites in the European Union. This solar capacity, together with the North America VPPA signed in 2021, will play a key role in advancing Pfizer’s ambitious climate goals.

“Pfizer has taken and continues to take significant voluntary steps to reduce our environmental impact,” said Caroline Roan, Chief Sustainability Officer of Pfizer Inc. “We’re proud to work with Schneider Electric and Bruc – alongside many other partners – to reduce our carbon footprint and help fight climate change.”

This VPPA initiative builds upon Schneider Electric’s existing PPA work through the Energize program, of which Pfizer is a sponsor company. Schneider Electric’s Energize program enables pharmaceutical suppliers to learn about renewable energy adoption and contracting by giving suppliers the opportunity to participate in the market for PPAs.

1. “Climate Change Fact Sheet.” World Health Organization. https://www.who.int/news-room/fact-sheets/detail/climate-change-and-health#:~:text=Research%20shows%20that%203.6%20billion,diarrhoea%20and%20heat%20stress%20alone.Published October 12, 2023. Accessed December 7, 2023
2. Net Zero by 2040: How Pfizer is Fighting Climate Change with Ambitious Science Based Goals. https://www.pfizer.com/news/articles/net_zero_by_2040_how_pfizer_is_fighting_climate_change_with_ambitious_science_based_goals. Published May 29, 2022. Accessed December 13, 2023.
3. Net Zero by 2040: How Pfizer is Fighting Climate Change with Ambitious Science Based Goals. https://www.pfizer.com/news/articles/net_zero_by_2040_how_pfizer_is_fighting_climate_change_with_ambitious_science_based_goals. Published May 29, 2022. Accessed December 13, 2023.