Sandoz Secures SBTi Validation For 2030 Climate Targets Across Operations And Suppliers

Sandoz will cut Scope 1 and 2 emissions by 42% by 2030 and 63% by 2035 from a 2024 baseline.
The company aims for at least 79% of suppliers by emissions to set science-based targets by 2030.
The strategy links climate action to medicine access, operational efficiency, supplier resilience, and lower long-term costs.

Sandoz Moves Climate Targets Into Validated Territory

Sandoz has secured validation from the Science Based Targets initiative for its greenhouse gas reduction targets, placing the global affordable medicines company under a more formal climate accountability framework.

The validation gives Sandoz a science-aligned pathway for reducing emissions across its own operations and parts of its value chain. It also raises the bar for supplier engagement in a sector where manufacturing, packaging, logistics, and purchased goods can carry significant climate exposure.

SBTi validation matters because it tests whether corporate climate targets align with the pace and scale of emissions cuts needed to help limit the worst impacts of climate change. For Sandoz, the approval comes as healthcare companies face growing pressure from regulators, investors, customers, and procurement bodies to show credible transition plans.

The company is now targeting a 42% reduction in Scope 1 and 2 emissions by 2030. It will then deepen that reduction to 63% by 2035. Both targets use 2024 as the baseline year.

Sandoz is also extending climate accountability into its supplier base. By 2030, it wants at least 79% of suppliers by emissions, covering purchased goods and services, capital goods, and upstream transportation and distribution, to have science-based targets.

Supplier Targets Bring Scope 3 Into Focus

The supplier commitment is a critical part of the announcement. For global pharmaceutical and healthcare companies, Scope 3 emissions can be difficult to manage. They often sit across complex networks of raw materials, manufacturing inputs, packaging, transport, and outsourced services.

By setting a target based on suppliers by emissions, Sandoz is focusing on the parts of its value chain with the greatest climate relevance. That approach may also influence procurement decisions over time.

For executives, the message is clear. Climate targets are no longer only about direct emissions from factories, offices, and purchased power. They increasingly shape supplier selection, commercial relationships, and long-term resilience.

Kate Ahern, Head, ESG at Sandoz said, “Operating sustainably is a key contributor to our Purpose of pioneering access for patients. Our actions are critical to limiting our impact on the environment while delivering real commercial benefits by meeting customer demands, improving operational efficiency, and reducing costs. We’ve made significant progress on sustainability, and today’s SBTi validation confirms our emissions reduction targets are ambitious and credible.”

Her comments frame the strategy as both a climate and business priority. That dual framing is important for the healthcare sector, where access, affordability, and resilience remain central governance issues.

Energy, Packaging, Logistics And Partnerships Drive The Plan

To reach its 10-year goals, Sandoz has developed a sustainability blueprint focused on emissions reduction and business value.

The plan includes improving energy efficiency and increasing renewable energy use. It also covers packaging and materials innovation, circularity, logistics optimization, and transport decarbonization.

Supplier partnerships are another priority. Sandoz said it will work with suppliers to co-create sustainable solutions. That approach may become increasingly relevant as companies face more scrutiny over value chain emissions and product-level sustainability data.

The strategy also builds on recent progress made since Sandoz became an independent company. Between 2023 and 2025, the company reduced absolute emissions by 3%. It also cut emissions intensity by 15%.

Those reductions provide an early baseline of progress, but the validated targets now create a more demanding pathway. The next stage will require deeper operational changes and stronger collaboration across the supply chain.

Why It Matters For Healthcare And ESG Investors

For investors and ESG leaders, Sandoz’s validation adds another data point in the shift from voluntary climate ambition to measurable transition planning.

Healthcare companies sit at a complex intersection. They must protect patient access and affordability while responding to climate risk, energy costs, regulation, and supply chain exposure. That balance is becoming more important as buyers and public health systems assess the carbon profile of suppliers.

The Sandoz targets also reflect a broader governance trend. Companies are under pressure to show that climate commitments have credible baselines, defined timelines, and independent validation.

For the pharmaceutical sector, the challenge will be execution. Cutting direct emissions is only one part of the transition. The harder work sits in supplier alignment, low-carbon logistics, circular packaging, and operational efficiency across global markets.

Sandoz’s SBTi validation places its climate strategy inside a recognized framework. It also links emissions reduction to commercial discipline. For a company built around affordable medicines, that connection will be closely watched by investors, healthcare customers, and policymakers seeking climate progress without compromising access.