March 18, 2026

Novartis Sustainability

table of contents

Novartis AG is a Basel, Switzerland-headquartered global innovative medicines company focused on discovering, developing, and delivering transformative treatments across cardiovascular, immunology, neuroscience, oncology, and rare disease therapeutic areas, reaching 296 million patients across approximately 120 markets in 2024. Following the spin-off of Sandoz in October 2023, Novartis operates as a pure-play innovative medicines company, which materially reshaped its environmental footprint and prompted a revision of several sustainability targets. The primary sources for this analysis are the Update on Public Commitments 2025 (published February 2026 with KPMG limited assurance), the Q4 2024 Impact and Sustainability Update, and the Q4 2025 Impact and Sustainability Update.

Novartis achieved its 2025 Scope 1 and 2 carbon neutrality target and its 2025 waste reduction target in the same reporting period, with Scope 1+2 emissions from energy neutralized through a combination of absolute reductions and verified carbon removal credits. The company holds SBTi-approved 2030 near-term targets and 2040 net-zero targets validated in July 2024, and maintained CDP Double A List status in Climate Change and Water Security for the third consecutive year in 2024.

Source

https://www.novartis.com/sites/novartis_com/files/novartis-update-public-commitments-2025.pdf
https://www.novartis.com/sites/novartiscom/files/novartis-q4-2024-impact-and-sustainability-update.pdf
https://www.novartis.com/sites/novartis_com/files/novartis-q4-2025-impact-and-sustainability-update.pdf
https://www.novartis.com/esg/environmental-sustainability

Sustainability Strategy and Goals

Novartis embeds sustainability across three ESG pillars: Environmental Sustainability (Climate and Nature), Innovation and Access to Medicines, and Human Capital and Ethics. The Governance, Sustainability and Nomination Committee (GSNC) of the Board of Directors holds primary oversight of ESG strategy, with 8 of 13 Board members holding ESG skills as of 2024. ESG performance metrics are integrated into executive compensation, and Novartis publishes an annual Novartis in Society Integrated Report alongside quarterly investor ESG updates.

Novartis aligns its strategy with the UN SDGs, the GHG Protocol, TCFD, SASB, and the Science Based Targets initiative, with near-term and net-zero SBTi targets both validated in July 2024. The company is formally implementing the EU Corporate Sustainability Reporting Directive (CSRD) for its first Sustainability Statement in 2026, and has established a dedicated ESG Reporting Council to review data quality, current trends, and emerging standards. Select performance indicators carry external limited assurance from KPMG AG, confirmed in the February 2026 assurance report.

Net Zero and Carbon Emissions

Novartis committed to carbon neutrality in Scope 1 and 2 operations by 2025 and to SBTi-approved targets of 90% absolute Scope 1+2 reduction by 2030 and 90% reduction across all scopes by 2040, both against a 2022 baseline. The 2025 carbon neutrality target was met, with residual emissions neutralized through 124.3 ktCO2e of carbon removal credits, 70.8 ktCO2e of biomethane certificates, and 4.9 ktCO2e of sustainable aviation fuel certificates.

Scope 1+2 GHG emissions from energy (1,000 tCO2e): 365.3 (2022 baseline) → 290 (2023) → 233.3 (2024) → 200.0 (2025); a 45.3% reduction from the 2022 baseline and a 71% reduction from the 2016 baseline
Scope 1+2 GHG total (excl. fugitives, for SBTi boundary): 365.3 (2022 baseline) → 235.7 (2024) → 202.1 (2025); 2030 SBTi target: 36.5 thousand tCO2e (-90%)
Scope 3 GHG emissions (1,000 tCO2e): 4,872.4 (2022 baseline) → 4,438 (2023) → 4,207.5 (2024) → 4,074.4 (2025); a 16.4% reduction from baseline; 2030 SBTi target: 42% reduction = 2,826.0 thousand tCO2e
Total Scope 1+2+3 (1,000 tCO2e): 5,237.7 (2022 baseline) → 4,443.2 (2024) → 4,249.5 (2025); a 18.9% reduction from baseline; 2040 SBTi target: 90% reduction
GHG emission intensity: 91.2 tCO2e per million USD in 2024, a 44% decrease from 2020 and a 14.1% reduction from 2022
Scope 3 represents approximately 95% of Novartis’s total GHG emissions footprint

Water Stewardship

Novartis achieved its 2025 target of 50% absolute water consumption reduction from a 2016 baseline, with a 59% reduction recorded in 2025. The previous “water neutrality by 2030” target was revised in 2024 to establish basin-specific 2030 targets for key sites in water-stressed areas, in alignment with Science Based Targets Network (SBTN) guidance.

Water consumption (million m³): 10.3 (2016 baseline) → 4.4 (2024) → 4.2 (2025); a 59.2% reduction exceeding the 50% target
Own manufacturing sites meeting water quality standards (PEC/PNEC<1): 97% in 2024 and 2025, against a 100% target by 2025; one site on a third-party campus cannot feasibly upgrade wastewater infrastructure
High-risk suppliers meeting water quality standards: 100% in 2024 and 2025, achieving the 100% target
2030 water quality target extension: All own manufacturing sites, labs, and active pharmaceutical ingredient (API) suppliers must meet water quality standard PEC/PNEC<1 by 2030
Basin-specific water reduction targets will be established for material sites in own operations and upstream suppliers based on SBTN guidance, replacing the retired “water neutrality” ambition

Regenerative Agriculture

Novartis does not operate in agriculture directly. Upstream Scope 3 supplier engagement, which now covers 97% of Scope 3 GHG emissions through environmental sustainability criteria embedded in supplier contracts, is the primary mechanism through which Novartis influences raw material sourcing practices including any agricultural inputs in excipient supply chains. The company uses an environmentally extended input-output model operated by a third party for Scope 3 Categories 1 (purchased goods and services) and 2 (capital goods), covering the majority of its material supplier footprint.

Deforestation and Biodiversity

Novartis added a formal Nature pillar to its sustainability strategy in 2024, reframing its existing water and waste commitments under a broader Nature Positive ambition aligned with the Global Biodiversity Framework 2022 definition of Nature Positive. Biodiversity and raw materials targets are under development, with specific commitments to be defined based on materiality assessments; the company has not yet published time-bound, quantified biodiversity targets.

Nature pillar announced in 2024: covers water, waste, biodiversity, and raw materials under a Nature Positive 2030 ambition aligned with the Global Biodiversity Framework
Biodiversity and raw materials: Specific targets will be defined based on ongoing materiality assessments; no quantified targets as of the 2024 reporting period
PVC elimination in packaging: 100% of product packaging sites achieved in both 2024 and 2025 against the 2025 target; all secondary and tertiary packaging PVC-free
Plastic neutrality target: Retired following the Sandoz spin-off, which reduced the plastic footprint; new targets under evaluation

Packaging and Circular Economy

Novartis met and exceeded its 2025 waste reduction target, achieving a 70% reduction in total waste not recycled from the 2016 baseline against a 50% target. The 2030 waste target (30% reduction from a 2022 baseline) is at 18% progress, on a trajectory that requires continued improvement.

Total waste not recycled (thousand t): 54.6 (2016 baseline) → 20.1 (2022) → 15.3 (2024) → 16.5 (2025); 70% reduction from 2016, exceeding the 50% target
2030 waste target: 30% reduction from 2022 baseline = 14.1 thousand t; current 2025 figure: 16.5 thousand t; progress: -18% vs. -30% required
PVC in packaging: 100% of own final product packaging sites have eliminated PVC from secondary and tertiary packaging (2024 and 2025)
Plastic neutrality target: Retired after the Sandoz spin-off reduced the plastic footprint; new plastic targets under evaluation
Lifecycle assessments and early design considerations are integrated into the Development phase to reduce product environmental footprint before commercialization

Human Rights and Responsible Sourcing

Novartis requires all suppliers to accept environmental sustainability criteria through a dedicated ES Criteria Annex, Third Party Code v3 or higher, or an equivalency check. As of 2025, 97% of Scope 3 GHG emissions from suppliers are covered by contracts that include environmental sustainability criteria, rising from 76% in 2024. The remaining 3% involves a more fragmented supplier base, addressed through a process update requiring acceptance of the Third Party Code.

Supplier emissions covered by contracts with environmental criteria: 76% (2024) → 97% (2025), against a 100% target by 2025; 3 percentage points short at deadline
Supplier categories in scope: Scope 3 GHG Categories 1 through 6, covering purchased goods and services, capital goods, fuel and energy, upstream transport, waste, and business travel
High-risk supplier water quality compliance: 100% in 2024 and 2025, meeting the 100% target
Human rights and environmental due diligence under the EU Corporate Sustainability Due Diligence Directive (CS3D): Implementation on track for the 2027 compliance deadline

Nutrition and Health

Access to innovative medicines is the foundation of Novartis’s social sustainability mission, with the company ranked #1 in the Access to Medicine Index (ATMI) in 2024, having been in the leadership group since 2014. Novartis reached 296 million patients across approximately 120 markets in 2024, compared to 284 million in 2023, a growth of 4.2% year-over-year.

Total patients reached: 284 million (2023) → 296 million (2024)
Patients reached via access programs: 30 million in 2024
Patients reached with strategic innovative therapies in LMICs: 547,664 (2019 baseline) → 1,806,386 (2024) → 2,161,186 (2025); 295% growth, exceeding the 200% target
Patients reached through flagship programs (malaria, leprosy, Chagas disease, sickle cell disease): 15,069,483 (2019 baseline) → 26,310,195 (2024) → 25,880,574 (2025); 72% growth, exceeding the 50% target
R&D investment in neglected tropical diseases and malaria: $502 million cumulatively since 2021, against a $250 million target for 5 years; more than double the original commitment
Time-to-launch in LMICs vs. HICs: reduced from an industry average of 3 to 8 years to 4 to 8 months on average through the Access Principles implemented since 2017
100% of new medicine launches have a global access strategy (excluding cell, gene, and radioligand therapies)

Community and Social Impact

Novartis commits, through its sustainability-linked bond (EUR 1.85 billion, issued in September 2020), to expanding access in LMICs, with all bond targets confirmed achieved as of 2025. The company co-chairs no specific global health decarbonization body, but its Novartis Foundation runs the AI4HealthyCities initiative linking AI, urban health data, and cardiovascular disease prevention in city populations.

Sustainability-linked bond: EUR 1.85 billion issued 2020, maturing 2028; all 2021 to 2025 bond targets achieved
Gender in management: 48% female (2024), 46% female (2025 excl. US); target 50% ±2 percentage points maintained under the EPIC pledge
Gender pay gap: -0.3% at Novartis vs. +17% external benchmark (Bloomberg Gender Equality Index)
Beacon of Hope initiative: US-based program improving representation of racial and ethnic minority groups in clinical trials and the healthcare ecosystem

Governance and Transparency

Novartis’s GSNC oversees ESG strategy at board level, with environmental sustainability explicitly listed as a board competency area with 8 of 13 board members holding ESG skills as of 2024. An ESG Reporting Council was established to review data quality and align with emerging standards including CSRD. Shareholders endorsed the non-financial report in an advisory vote at the 2024 AGM with 98.4% support.

Board ESG oversight: GSNC holds primary board-level sustainability oversight; ESG skills present across 8 of 13 board members
Advisory vote on non-financial report: 98.4% shareholder support at 2024 AGM
CSRD implementation: First Sustainability Statement targeted for 2026, with double materiality analysis and implementation ongoing
EU Taxonomy: Eligibility and alignment pilot assessments ongoing for revenue, CapEx, and OpEx; disclosure expected for FY 2025
KPMG AG provides external limited assurance on select sustainability KPIs, with the most recent assurance report dated February 3, 2026

Technology and Innovation

Novartis’s decarbonization approach follows the mitigation hierarchy: avoid, reduce, and transition to renewables, with carbon removal used only for residual emissions. The company embedded environmental sustainability requirements into its equipment recapitalization plans, ensuring that manufacturing upgrade cycles deliver energy efficiency as a standard outcome rather than an add-on. Lifecycle assessments in the Development phase of R&D provide early-stage product footprint visibility before manufacturing scale-up.

Renewable electricity: 96% of purchased electricity from renewable sources in 2024, approaching the 100% target for 2025; total renewable energy share (including heat and other energy) reached 54% in 2024
AI for drug discovery: AI applied across R&D to accelerate target identification and improve precision, with the potential to reduce time to market including for neglected tropical disease programs
AI governance: Ethical Use of Data and Technology Policy rolled out in 2024 including an AI Handbook; AI Risk and Compliance Management Framework strengthened; AI literacy training deployed company-wide
Nature positive materiality assessment: Assessment underway in 2024 to map biodiversity impacts and dependencies, with outputs to inform specific 2030 biodiversity and raw materials targets
Carbon removal strategy: 2025 carbon neutrality achieved through 124.3 ktCO2e of carbon removal credits, 70.8 ktCO2e of biomethane certificates, and 4.9 ktCO2e of sustainable aviation fuel certificates neutralizing residual emissions

Global Partnerships and Advocacy

Novartis is a member of the UN Equal Pay International Coalition (EPIC), has an active sustainability-linked bond with an external assurance framework, and collaborates with cross-industry consortia including the Value Balancing Alliance to standardize impact measurement. The company contributed to the WHO framework on climate and health through its portfolio alignment with diseases where there is strong evidence of increasing climate-driven burden.

EPIC pledge: Renewed in 2023 with aspirational 2027 goals covering gender representation, pay equity, and pay transparency
Value Balancing Alliance: Active participation in standardizing health impact measurement using QALYs and DALYs correlated with socio-economic metrics
Supplier environmental criteria: 97% Scope 3 supplier coverage under environmental sustainability contracts as of 2025, advancing toward full value chain decarbonization
Sustainability-linked bond: EUR 1.85 billion linked to LMIC patient access targets; all targets achieved as of 2025

Source

Progress vs. Target Tracker

Commitment	Target	Current Status	Assessment
Carbon neutrality in Scope 1+2 operations (from energy)	2025	Achieved: 200.0 thousand tCO2e; residual neutralized via carbon removal certificates	Achieved
90% absolute reduction in Scope 1+2 vs. 2022 baseline	2030	202.1 thousand tCO2e (2025) vs. 365.3 (2022 baseline); 45.3% reduction; 2030 target: 36.5	On Track
42% absolute reduction in Scope 3 vs. 2022 baseline	2030	4,074.4 thousand tCO2e (2025) vs. 4,872.4 (2022 baseline); 16.4% reduction; 2030 target: 2,826.0	At Risk (pace insufficient)
90% reduction in Scope 1, 2, and 3 vs. 2022 baseline	2040	4,249.5 thousand tCO2e (2025) vs. 5,237.7 (2022 baseline); 18.9% reduction	On Track (long horizon)
100% renewable purchased electricity	2025	96% achieved in 2024; 100% target for 2025	On Track (near threshold)
100% supplier contracts include environmental criteria	2025	97% achieved (2025); 3% gap remains	Narrowly Missed
Reduce water consumption by 50% vs. 2016 baseline	2025	4.2 million m³ (2025) vs. 10.3 (2016 baseline); -59.2% achieved	Exceeded
100% own manufacturing sites meet water quality standards	2025	97% (2025); one site on third-party campus structurally unable to comply	Narrowly Missed
100% high-risk suppliers meet water quality standards	2025	100% achieved (2024 and 2025)	Achieved
Reduce waste sent for disposal by 50% vs. 2016 baseline	2025	16.5 thousand t (2025) vs. 54.6 (2016 baseline); -69.8% achieved	Exceeded
Reduce waste sent for disposal by 30% vs. 2022 baseline	2030	16.5 thousand t (2025) vs. 20.1 (2022 baseline); -18% progress; target: -30%	On Track
Eliminate PVC from product packaging	2025	100% of packaging sites PVC-free (2024 and 2025)	Achieved
Gender balance in management (48–52%)	2027	46% female (2025, excl. US)	At Risk (2pp below threshold)

Source

Key Sustainability Innovations and Technologies

Novartis’s most operationally mature innovation is the integration of environmental sustainability criteria into equipment recapitalization plans, ensuring that every major manufacturing technology renewal cycle delivers energy efficiency and GHG reductions as embedded outcomes. Since 2016, this approach, combined with process innovations and renewable energy sourcing, has driven a 71% absolute Scope 1+2 reduction and a 59% water consumption reduction without compromising manufacturing output. The Sandoz spin-off in October 2023 accelerated the environmental footprint reduction by removing the generics manufacturing base from Novartis’s reporting boundary.

On the Scope 3 side, the lifecycle assessment program embedded in the Development phase of R&D allows Novartis to assess and reduce product carbon footprints before scale-up, making early-stage design decisions part of the emissions reduction strategy. Supplier decarbonization is driven by the environmental sustainability criteria annex, which by 2025 covers 97% of Scope 3 GHG emissions through supplier contracts, up from 76% in 2024, a 21-percentage-point increase in one year.

Scope 1+2 decarbonization (2016 to 2025): 71% absolute reduction driven by energy efficiency, process innovation, and renewable electricity scale-up to 96% of purchased electricity in 2024
Carbon removal for residual emissions (2025): 124.3 ktCO2e of carbon removal credits, 70.8 ktCO2e of biomethane certificates, and 4.9 ktCO2e of sustainable aviation fuel certificates used to neutralize post-reduction residuals
Lifecycle assessment in R&D: Early design integration from the Development phase, reducing product footprint before manufacturing scale-up
Supplier environmental sustainability contracts: 97% Scope 3 supplier coverage in 2025, up from 76% in 2024, a 21-percentage-point annual increase
PVC elimination: 100% of own final product packaging sites globally PVC-free as of 2024 and 2025
AI for drug discovery and access: AI applications in target identification, clinical trial diversity, and administrative efficiency; AI4HealthyCities initiative using machine learning to identify cardiovascular health drivers in urban populations
AI governance: Ethical Use of Data and Technology Policy, AI Handbook, and AI Risk and Compliance Framework deployed in 2024
Water quality system: Three-level water quality maturity ladder (training and legal compliance, quantification and risk assessment, PEC/PNEC<1) implemented across 97% of own manufacturing sites and 100% of high-risk suppliers

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Measurable Impacts

Novartis’s environmental performance from 2022 to 2025 shows consistent absolute reductions across GHG, water, and waste, with multiple 2025 targets achieved or exceeded. The 45.3% Scope 1+2 reduction from the 2022 baseline by 2025 places Novartis on a trajectory toward the 2030 SBTi target of 90%, though maintaining pace will require continued capital investment in energy efficiency and renewable sourcing beyond the 2025 neutrality threshold. Scope 3 at 16.4% reduction from baseline against a 42% target by 2030 represents the most significant execution gap in the current portfolio.

On health impact, patient reach grew from 284 million (2023) to 296 million (2024), and LMIC innovative therapy patient reach of 295% growth versus a 2019 baseline exceeded the 200% sustainability-linked bond target. The R&D investment in neglected tropical diseases and malaria reached $502 million cumulatively since 2021, more than double the $250 million five-year commitment.

Scope 1+2 GHG (energy, 1,000 tCO2e): 365.3 (2022) → 233.3 (2024) → 200.0 (2025); -45.3% from 2022 baseline; -71% from 2016 baseline
Scope 1+2 GHG total (excl. fugitives, 1,000 tCO2e): 365.3 (2022) → 235.7 (2024) → 202.1 (2025)
Scope 3 GHG (1,000 tCO2e): 4,872.4 (2022) → 4,207.5 (2024) → 4,074.4 (2025); -16.4% from baseline
Total Scope 1+2+3 (1,000 tCO2e): 5,237.7 (2022) → 4,443.2 (2024) → 4,249.5 (2025); -18.9% from baseline
GHG emission intensity: 91.2 tCO2e per million USD (2024), down 44% from 2020 and 14.1% from 2022
Water consumption (million m³): 10.3 (2016) → 4.4 (2024) → 4.2 (2025); -59.2% from 2016 baseline
Waste not recycled (thousand t): 54.6 (2016) → 20.1 (2022) → 15.3 (2024) → 16.5 (2025); -69.8% from 2016 baseline
PVC-free packaging sites: 100% (2024 and 2025)
Renewable purchased electricity: 96% in 2024
Supplier GHG coverage under environmental contracts: 76% (2024) → 97% (2025)
Total patients reached: 296 million (2024)
Patients in LMICs (strategic therapies): 1.8 million (2024), +230% since 2019, exceeding the +200% SLB target
Global health flagship program patients: 26.3 million (2024), +75% since 2019, exceeding the +50% SLB target
NTD and malaria R&D investment since 2021: $502 million, exceeding the $250 million 5-year target

Source

https://www.novartis.com/sites/novartis_com/files/novartis-update-public-commitments-2025.pdf
https://www.novartis.com/sites/novartiscom/files/novartis-q4-2024-impact-and-sustainability-update.pdf

Challenges and Areas for Improvement

Novartis’s most significant unresolved gap is the Scope 3 reduction trajectory. The 16.4% reduction from the 2022 baseline by 2025 is less than 40% of the way to the 2030 target of 42%, and Scope 3 represents approximately 95% of the total carbon footprint. Achieving the remaining 26 percentage points of Scope 3 reduction by 2030 requires sustained supplier decarbonization, product lifecycle redesign, and engagement across upstream and downstream value chain categories at a pace the current trajectory does not yet confirm.

The supplier environmental criteria coverage gap of 3% at the 2025 deadline, combined with structural barriers for fragmented supplier segments, illustrates the challenge of achieving full value chain governance. The water quality target for own manufacturing sites fell 3 percentage points short of 100%, with one site on a third-party campus unable to upgrade infrastructure.

Scope 3 gap: 16.4% reduction achieved (2025) vs. 42% required by 2030; current pace would deliver approximately 21% by 2030 if linear
Supplier environmental contracts: 97% achieved vs. 100% target by 2025; the remaining 3% involves smaller, fragmented suppliers for which full contractual implementation is structurally difficult
Own manufacturing site water quality: 97% meeting standards vs. 100% target by 2025; one site on a third-party campus is unable to upgrade wastewater treatment infrastructure
Waste trajectory (2022 to 2030): 16.5 thousand t (2025) vs. 20.1 thousand t (2022 baseline); -18% progress vs. -30% target by 2030; the trend showed a slight uptick from 15.3 thousand t in 2024 to 16.5 thousand t in 2025
Gender in management: 46% female (2025, excl. US) vs. target range of 48 to 52%; below the lower bound by 2 percentage points
Biodiversity and raw materials: No quantified, time-bound targets published as of the 2024 reporting period; under materiality assessment only
Carbon removal dependency: The 2025 carbon neutrality achievement relies on certificates (carbon removal, biomethane, sustainable aviation fuel) to neutralize residual emissions; long-term reliance on offsets conflicts with SBTi best practice as absolute reduction must approach 90% by 2030
Plastic neutrality retired: The previous plastic neutrality by 2030 target was retired following the Sandoz spin-off; replacement targets are under evaluation with no published timeline

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Future Plans and Long-Term Goals

Novartis’s post-2025 roadmap is anchored by two SBTi-validated milestones: 90% Scope 1+2 reduction by 2030 and 90% reduction across all scopes by 2040, both against the 2022 baseline. The 2025 Scope 3 figure of 4,074.4 thousand tCO2e must fall to 2,826.0 by 2030, requiring a further absolute reduction of 1,248.4 thousand tCO2e in five years, substantially larger than the 797.9 thousand tCO2e achieved across the first three years since the baseline.

2030 SBTi near-term target: Scope 1+2 absolute reduction 90% from 2022 baseline (target: 36.5 thousand tCO2e); Scope 3 absolute reduction 42% from 2022 baseline (target: 2,826.0 thousand tCO2e)
2040 SBTi net-zero target: Minimum 90% absolute reduction in Scope 1, 2, and 3 from 2022 baseline; residual emissions to be neutralized with carbon removal solutions in alignment with emerging regulations
2030 waste target: 30% reduction in waste sent for disposal from 2022 baseline; current pace at 18% progress with five years remaining
2030 water commitment: Basin-specific water use reduction targets for own and supplier sites in water-stressed areas, to be established in line with SBTN guidance
2030 water quality extension: 100% of own manufacturing sites, labs, and all API suppliers to meet water quality standard PEC/PNEC<1
Biodiversity and raw materials: Specific 2030 targets to be defined following materiality assessment; aligned with Nature Positive commitment
Supplier environmental criteria: 100% coverage target carries forward into 2026 for the 3% of Scope 3 emissions not yet under contract
CSRD Sustainability Statement: First disclosure targeted for FY 2025, due in 2026

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Comparisons to Industry Competitors

Novartis’s most appropriate comparators are AbbVie and Pfizer, both global pharmaceutical companies with published, verified ESG data covering comparable reporting periods. Novartis’s Scope 3 decarbonization pace, net zero target year, and supplier engagement depth are the three most analytically meaningful dimensions for comparison, given that Scope 3 dominates all three companies’ footprints.

Metric	Novartis	AbbVie	Pfizer
Scope 1+2 reduction vs. baseline	-45.3% from 2022 baseline by 2025; SBTi-validated; carbon neutral achieved	-32.4% from 2021 baseline by 2024; SBTi-validated	-15% from 2019 baseline by 2024
Scope 3 reduction	-16.4% from 2022 baseline by 2025; 42% required by 2030	Supplier SBTi coverage 41.6% (2023); 79.1% required by 2027	Supplier SBTi coverage approximately 65% (2024)
Renewable energy coverage	96% of purchased electricity (2024); 100% target for 2025	55.5% active renewable sourcing (2023); 100% target by 2030	14% of electricity demand from renewables (2024)
Recycled materials and waste diversion	Waste not recycled reduced 70% vs. 2016; 100% PVC-free packaging; recycling rate not separately reported	36.8% combined recycling rate (2024); 50% target missed at 2025 deadline	6% of total waste to landfill; 55% of manufacturing sites at zero-landfill
Net zero target year	2040 (SBTi-approved, all scopes vs. 2022 baseline)	2050 (all scopes)	2040 (95% Scope 1+2 and 90% Scope 3 vs. 2019)
Waste diversion or absolute waste reduction	69.8% absolute waste reduction vs. 2016 baseline	21.7% absolute waste reduction vs. 2015 baseline	55% of manufacturing sites at zero-landfill

Novartis’s 2040 net zero target year matches Pfizer and is a full decade ahead of AbbVie’s 2050 target, reflecting a more aggressive timeline. On Scope 3 supplier engagement, Pfizer’s approximately 65% supplier SBTi coverage outpaces both Novartis’s and AbbVie’s programs, though Novartis’s approach of embedding environmental sustainability criteria contractually in 97% of Scope 3 emissions differs methodologically from the SBTi target coverage metric. Novartis’s renewable electricity procurement at 96% of purchased electricity is the most advanced among the three peers, substantially ahead of AbbVie at 55.5% and Pfizer at 14%.

Source

https://www.novartis.com/sites/novartis_com/files/novartis-update-public-commitments-2025.pdf
https://thesustainableinnovation.com/pfizer-sustainability/
https://www.abbvie.com/content/dam/abbvie-com2/pdfs/esg-disclosure-supplement.pdf

What to Watch: 12 to 18 Month Indicators

Three specific signals will define whether Novartis’s sustainability trajectory holds or requires recalibration over the next 12 to 18 months.

Scope 3 reduction pace in the 2025 Sustainability Statement. Novartis’s first CSRD-aligned Sustainability Statement is targeted for FY 2025, due in 2026. The 2025 figure of 4,074.4 thousand tCO2e represents a 16.4% reduction from the 2022 baseline, against a 42% target by 2030. The Statement will confirm whether Novartis is accelerating toward the required pace of approximately 8.5 percentage points per year from 2025 to 2030, or whether the trajectory is flattening. Any 2025 Scope 3 figure above 4,074 thousand tCO2e would signal that the 2030 42% reduction target is at material risk.

Biodiversity and raw materials target publication. Novartis added the Nature pillar in 2024 and committed to defining specific biodiversity and raw materials targets based on materiality assessments. The 12 to 18 month window will determine whether those assessments produce time-bound, quantified targets aligned with the Global Biodiversity Framework or remain qualitative commitments. Given the company’s strong track record on water and waste target-setting and delivery, the absence of biodiversity targets beyond 2026 would represent a credibility gap in the Nature pillar.

Supplier environmental criteria completion for the remaining 3% of Scope 3 emissions. Novartis closed the gap from 76% (2024) to 97% (2025) in one year, demonstrating strong execution velocity. The remaining 3% involves a smaller, fragmented supplier base for which full contractual implementation has been structurally challenging. The 2026 reporting cycle will show whether Novartis achieves 100% coverage, which is a prerequisite for claiming full value chain governance and maintaining the SBTi supplier engagement framework’s credibility ahead of the 2030 Scope 3 milestone.

Source

Novartis’s environmental track record from 2016 to 2025 is among the strongest published by a major pharmaceutical company, with a 71% Scope 1+2 reduction from 2016, water consumption down 59%, waste not recycled down 70%, and 100% PVC elimination all achieved or exceeded. The SBTi approval of both 2030 near-term and 2040 net-zero targets in July 2024 places Novartis in a small group of pharma companies with externally validated full value chain decarbonization commitments. The Access to Medicine Index #1 ranking in 2024 and a 295% increase in LMIC patient reach since 2019 confirm that the social dimension of Novartis’s ESG program is operationally embedded rather than aspirational.

The gaps are concentrated in Scope 3 pace and Nature pillar specificity. The 16.4% Scope 3 reduction from baseline by 2025 needs to more than double to 42% by 2030, requiring approximately 1,248 thousand additional tCO2e of reduction in five years across purchased goods, services, and capital goods categories where Novartis’s direct lever is primarily supplier influence and product lifecycle design. The retirement of the plastic neutrality target without a published replacement, and the absence of quantified biodiversity targets despite the 2024 Nature pillar announcement, create disclosure gaps that CSRD will require to be resolved in the 2026 Sustainability Statement.

Three strategic takeaways stand out for practitioners benchmarking or replicating Novartis’s approach:

Embed environmental sustainability into capital expenditure cycles rather than treating it as a standalone program. Novartis’s decision to include environmental criteria in equipment recapitalization plans means that every manufacturing technology renewal delivers emissions reductions as a standard business outcome. This approach is more durable than project-by-project sustainability initiatives and directly links CapEx governance to Scope 1 and 2 reduction targets.
Use the SBTi-aligned supplier contract framework as the Scope 3 primary mechanism. Novartis’s achievement of 97% Scope 3 supplier coverage under environmental sustainability contracts in 2025, up from 76% in 2024, demonstrates that contractual embedding (rather than voluntary engagement programs) can produce rapid and measurable coverage expansion. The remaining 3% gap points to the structural limit of this approach for fragmented suppliers, which should prompt practitioners to design a parallel engagement program for smaller supplier segments that cannot absorb full contractual requirements.
Pair ambitious access-to-medicines commitments with verifiable patient reach data and external assurance. Novartis’s use of a sustainability-linked bond with externally assured patient reach metrics, and its investment of $502 million in NTD and malaria R&D against a $250 million target, creates verifiable social impact at scale. Practitioners in the health sector should treat external assurance on patient access metrics as equally important as financial assurance, given the growing scrutiny of health equity claims.

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Novartis Sustainability

Sustainability Strategy and Goals

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Deforestation and Biodiversity

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Nutrition and Health

Community and Social Impact

Governance and Transparency

Technology and Innovation

Global Partnerships and Advocacy

Progress vs. Target Tracker

Key Sustainability Innovations and Technologies

Measurable Impacts

Challenges and Areas for Improvement

Future Plans and Long-Term Goals

Comparisons to Industry Competitors

What to Watch: 12 to 18 Month Indicators

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