PARSIPPANY, N.J.--Zoetis Inc. (NYSE:ZTS), the world's leading animal health company, has refreshed its Driven to Care sustainability aspirations for mitigating the company's climate impact and environmental effects on the planet. Focusing first on its own operations, Zoetis is striving to achieve carbon neutrality by 2030. This includes accelerating the company's commitment to Renewable Energy 100 (RE100) to use 100% renewable energy in its operations. The company's updated commitments are underscored by investments in technology and a strong governance structure.
"Our vision is to be the most sustainable animal health company in the world, and we are proud to be the first stand-alone animal health company to commit to carbon neutrality by 2030," said Jeannette Ferran Astorga, Executive Vice President, Corporate Affairs, Communications and Sustainability at Zoetis. "Launching our expanded climate strategy reflects an evolution of our journey. As we live our purpose to nurture the world and humankind by advancing care for animals, we are focused on stewarding resources responsibly and minimizing our own operations' impact on the environment to help protect our planet."
Advancing the company's accelerated goal to use 100% renewable energy in its operations by 2030, Zoetis has initiated a formal approach to procuring renewable energy through power purchase agreements, including a new 15-year virtual power purchase agreement with Vesper Energy, which will generate more than 40 megawatts of renewable energy to power approximately 33% of Zoetis' North American operations' projected energy needs. These efforts are focused in North America because it represents approximately 75% of the company's global electricity consumption.
As another step in its sustainability journey, the company's diagnostics site in San Diego is operating on 100% renewable electricity, which means 9 of the company's 28 manufacturing sites, along with the company's three PHARMAQ sites in Norway, are operating on 100% renewable energy now. Additionally, Zoetis' offices in Zaventem, Belgium, and Dublin, Ireland - the company's largest offices outside of the United States - are now being powered by 100% renewable electricity.
Key energy efficiency projects have included ongoing optimization of heating, ventilation, and air conditioning (HVAC) equipment as well as a continuous program to improve lighting efficiency with LED bulbs. Zoetis also continues to invest in updated technology to be more energy efficient at its manufacturing sites; one recent example is retrofitting a spray dryer at the company's Chicago Heights, Illinois, manufacturing site, resulting in a 10% reduction in energy consumption. The company also has progressed energy efficiency at its research and development locations. A program at its global research and development headquarters in Kalamazoo, Michigan, delivered 8,000 gigajoules of savings in 2021, and an ongoing project to deploy photovoltaic solar panels at its Thane site in India will deliver up to 5% of site electricity requirements.
To further manage and achieve its carbon neutrality targets, Zoetis is focused on procurement activities to electrify more of its fleet of vehicles, improve on its energy efficiency annually, offset the final share of Scope 1 and 2 emissions, and create greater transparency into Scope 3 emissions.
In recognition of its progress on sustainability, Zoetis was named one of Newsweek's Most Responsible Companies for 2022 and was included in Investor's Business Daily's 100 Best ESG Companies. In 2021, the company announced its Driven to Care long-term sustainability strategy and goals followed by its first Sustainability Report. Zoetis will continue to share updates on its sustainability activities, including progress against its Driven to Care goals, and report annually.
Source: Zoetis news release