Sustainability
Environment
Governance
Our environmental strategy is part of our overall sustainability approach and is sponsored by a member of the Executive Management, the Executive Vice President of Product Supply.
At LEO Pharma, we are on an ambitious growth journey, seeking to make a difference for more than 100 million patients globally – and counting.
As part of this journey, we aim to grow our business responsibly with clever use of resources and in ways that minimize our negative footprint. As a global company with multiple production sites and worldwide distribution, optimizing how we operate is essential and reflects our responsibility to be a trustworthy partner to healthcare providers and patients.
Climate change – Our journey towards net-zero
With six production sites in Europe and numerous global suppliers, our operations and value chain contribute to climate change through a significant carbon footprint. Addressing our emissions is critical not only to mitigate environmental harm but also to ensure the long-term sustainability of our business.
To tackle these challenges, we focus on reducing emissions, improving resource efficiency across our operations, and collaborating with partners to drive reductions throughout the value chain.
As part of our efforts to reduce our own emissions, we are electrifying our car fleet that in 2025 contributed 19% of our Scope 1 and 2 emissions. In 2025, we reduced emission from the car fleet by 9% compared to previous year.
At our manufacturing site in Cork, the transition to a water-cooled chiller improved resource efficiency by reducing electricity consumption with 260 MWh annually.
Our transition from air to ocean freight for the overseas transportation of our products contributed to emissions reductions in our value chain through a 35% decrease in GHG intensity in our downstream overseas transportation compared to 2021.
By 2025, only 7% of our freight was transported by air, reflecting our continued efforts to reduce emissions from global logistics.
As part of our efforts to reduce emissions from our own operations, all our manufacturing sites are now running on 100% renewable electricity. This is supported by the purchase of renewable electricity through Guarantees of Origin sourced in Europe, helping us reduce our Scope 2 emissions while continuing to improve the energy profile of our operations.
Electrifying our car fleet
9%
Emission reduction from the car fleet in 2025 compared to previous year.
From air to ocean freight
35%
decrease in GHG intensity in our downstream overseas transportation compared to 2021.
Net zero target
In 2024, LEO Pharma committed to setting a net-zero greenhouse gas emissions target. Following extensive work to review and strengthen our greenhouse gas inventory, identify key emissions hotspots and define targeted reduction opportunities, our net-zero targets were validated by the Science Based Targets initiative in 2026.
Our validated net-zero target covers absolute reductions across Scope 1, 2 and 3 emissions by 2050, in line with climate science and the Paris Agreement’s goal of limiting global warming to 1.5°C. As part of this pathway, we have also set near-term targets for 2035, using 2024 as our baseline year: a 63% absolute reduction in Scope 1 and 2 emissions, and a 37.5% absolute reduction in Scope 3 emissions.
Reaching these targets requires a clear understanding of where our emissions come from. In preparation for validation, we conducted a detailed review of our greenhouse gas inventory to identify the emissions hotspots across our own operations and value chain. This work has strengthened the foundation for targeted action, enabling us to focus our efforts where we can deliver the greatest reductions. Our Climate Transition Plan sets out the pathway for how we intend to achieve our near-term and long-term targets. It includes planned decarbonization initiatives across our operations and value chain, focusing on reducing emissions, improving resource efficiency and collaborating with partners and suppliers to support the transition to a low-carbon future.
Through continued monitoring, targeted initiatives and value chain collaboration, we are working to translate our net-zero commitment into measurable progress and achieve net-zero by 2050.
Scope 1 and 2 emissions
63%
Absolute reduction in 2035
Scope 3 emissions
37.5%
Absolute reduction in 2035
Scope 1, 2 and 3 emissions
net-zero
in 2050
Sustainability statement
For more details on actions supporting our targets, see our sustainability statement.
EHS management
All LEO Pharma manufacturing sites continuously work to improve health and safety performance and reduce environmental and climate impact and are certified according to ISO 45001 (Occupational health and safety) and ISO 14001 (Environment) standards to support systematic and continuous improvement. In addition, all our own manufacturing sites work with energy management, and 5 out of 6 sites are certified according to ISO 50001 (Energy). The remaining site is planning for ISO 50001 certification in 2026. Environment, Health and Safety are integrated into our Code of Conduct and a Principle Procedure for global EHS Management, which together cover all parts of the business to ensure compliance with Environment, Health and Safety (EHS) legislation and internal standards.
Internal audits are conducted regularly by our EHS departments across all manufacturing sites. At least once a year a legal compliance evaluation is carried out addressing compliance with local and national legislation. An EHS management review is conducted annually with Executive Management.
We expect our business partners to adhere to the LEO Pharma sustainability standards for business partners and to have systems in place to prevent and mitigate accidental spills and releases to the environment and adverse impacts on the local community.
Valid EHS certificates can always be found at our LEO Pharma website:
Resource efficiency and management
LEO Pharma is committed to protecting the environment, preventing pollution, and using energy, materials, and water responsibly across our operations. As part of this approach, we continuously work to reduce the environmental impact of our manufacturing processes by improving resource efficiency, strengthening pollution control, and promoting more sustainable waste and water management.
Examples of our actions include mapping VOC-containing air streams at our Ballerup site, improving the collection, treatment, and monitoring of emissions from tank trucks and storage tanks, and an upgrade and adjustment of the existing abatement solution, along with improved monitoring of VOC emissions. We are also replacing our existing Fucidin® facility with a new facility, expected to be commissioned in 2026, designed to meet updated environmental standards, reduce VOC emissions, and include a modern wastewater treatment plant. In addition, we are working to reduce pharmaceutical residues in wastewater by using the new treatment plant to support existing production facilities.
Beyond manufacturing, we are also taking steps to improve resource efficiency in commercial activities. For example, in collaboration with a vendor, we have introduced a modular approach to congress exhibitions that increases the reusability of booths and display materials
Positions and views
For more details on our Environmental policies, read more about our positions and views.
