As part of our commitment to sustainability, Cytiva is now integrating climate impact factors into the capital expenditure approval process by including greenhouse gas emission calculations.
Our finance and sustainability teams joined forces! We now consider emissions of greenhouse gases in our capital expenditure (CapEx) decision-making.
Thinking long-term involves making the right investment decisions by considering every perspective. Each year Cytiva invests tens of millions of USD in capital expenditures (CapEx), which include new buildings and equipment. These assets have the potential to last many years. So, we designed a review mechanism to consider both sustainability criteria, such as climate impact, and financial returns during the appraisal stage for these assets.
Climate impact isn't easy to quantify or translate into financial terms. But the team rose to the challenge and developed a mechanism with three steps:
- calculate greenhouse gas (GHG) emissions from investments by leveraging global material standards
- give GHG emissions a dollar value using a carbon price agreed upon by business leaders
- incorporate the GHG-emission value alongside financial metrics
Now, the results of any given capital project proposal show a negative or positive impact on the environment.
Aligning to our CO2 target
Project owners can include the environmental impact for all new investments over USD 100K in standard capital asset requests. Including the results facilitates our decision-making and helps determine whether the project's climate impact is in line with Cytiva’s 2025 CO2 target. Project owners can also use the insightful data to adjust their projects to further reduce emissions.
We are currently training more than 85 specialized Cytiva associates in this process, and we are applying the index to new projects raised in 2022. We will continue iterating the mechanism with feedback from live projects and make environmental impact a standard component of our CapEx decision-making process.
About Cytiva
At Cytiva, we believe the key to transforming human health is accessing life-changing therapies. That’s why our 10 000+ associates in more than 40 countries are keenly focused on helping researchers, biopharma companies, and drug manufacturers to advance and accelerate therapeutics for people that need them.
Learn more about sustainability at cytiva.com/sustainability.