Merck Commits to Carbon Neutrality, Signs 3 Power Purchase Agreements

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by | Apr 26, 2021

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(Credit: Pixabay)

Merck has announced new goals to achieve carbon neutrality across its operations by 2025 (Scopes 1 and 2 emissions) and a 30% reduction in its value chain emissions by 2030 (Scope 3 emissions).

The company says it will achieve carbon neutrality in its operations by applying sustainable building standards and continuing to transition away from fossil fuel use. Remaining Scope 1 emissions will be offset each year with a portfolio of high-quality carbon credits, including carbon removals.

New Virtual Power Purchase Agreements Signed

Merck is also accelerating by 15 years its previous 2040 goal to source 100% renewable energy for its purchased electricity. Merck signed three new virtual power purchase agreements (VPPAs) for utility-scale energy projects based in Texas and Spain. These projects will address approximately 35% of Merck’s Scope 2 emissions by collectively adding 145 megawatts (MW) of solar and wind energy to the grid. Merck previously signed a US wind VPPA in 2018, which has added 60 MW of new renewable energy capacity, while providing Merck with the associated renewable energy credits.

To achieve the 30% reduction in Scope 3 emissions by 2030, Merck will continue to engage with its suppliers to reduce their emissions, promote opportunities for suppliers to source renewable energy, and use existing procurement and supply chain processes to drive additional strategies to decrease emissions.

In 2019, Novartis, Merck, and Grupo Bimbo signed long-term virtual power purchase agreements with AEP Renewables’ share of the Santa Rita East Wind Farm in Texas. North American renewable energy company Invenergy announced the three VPPAs for Santa Rita East for a total of 260 MW. Mexican multinational Grupo Bimbo signed for 100 MW, pharmaceutical company Novartis signed for 100 MW, and pharmaceutical company Merck signed for 60 MW.

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