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Takeda&enel

Takeda Signs Virtual Power Purchase Agreement with Enel North America to Advance Renewable Energy Production in the United States

- 12-Year Agreement Prioritizes Environmental Stewardship to Help Create Clean Energy Solutions and Advances Progress Towards Net-Zero Greenhouse Gas (GHG) Emissions Targets

- Agreement Expected to Create Up To 350,000 Megawatt Hours (MWh) of Renewable Energy Credits per Year, Accounting for Approximately 20 Percent of Takeda’s Current Enterprise Scope 1 and 2 Greenhouse Gas (GHG) Emissions

2022-09-20 08:52
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OSAKA, Japan & CAMBRIDGE, Mass.--()--Takeda (TSE:4502/NYSE:TAKand Enel North America today announced the signing of a long-term virtual power purchase agreement (VPPA) for the electricity delivered to the power grid from a 79 megawatt (MW) portion of Enel’s Seven Cowboy wind project in the state of Oklahoma in the U.S. The agreement, advised by Edison Energy LLC, advances progress towards achieving Takeda’s goals of reducing 40 percent of scopes 1 and 2 greenhouse gas (GHG) emissions by 2025 and achieving net-zero1 GHG emissions for scopes 1 and 2 before 2035.

A VPPA is a long-term bilateral contract for renewable energy and a strategic means through which Takeda is supporting the addition of renewable energy onto the local power grid. Through the agreement, Takeda will purchase approximately 350,000 MWh of electricity from Enel annually, equivalent to the electricity needed to power around 30,000 U.S. homes each year. This provides enough energy to meet Takeda’s anticipated electricity needs in the United States. The project is expected to begin operations by 2023.

“The health of our planet and the health of people are inextricably linked and, as such, it is incumbent on us to take every step we can to protect both,” said Takako Ohyabu, chief global corporate affairs and sustainability officer at Takeda. “This agreement plays a key role in creating a more sustainable infrastructure, while also fostering responsible innovation and allowing us to do our part to minimize our environmental impact and address one of the most pressing health threats facing humanity and the planet.”

By supporting the creation of renewable energy that will supply the energy grid for broad use in the U.S., this purchase agreement is a key milestone in Takeda’s global environmental sustainability efforts as the renewable energy certificates created will be applied towards its carbon reduction targets. This agreement accounts for more than 100,000 tons of the company’s current total GHG emissions or approximately 20 percent of current enterprise scope 1 and 2 emissions. The renewable energy certificates provided under the agreement will cover the electricity usage for U.S. facilities including BioLife Plasma Services centers in the U.S., global manufacturing and supply, research and development and other office locations with the ability to accommodate expansions.

“It’s clear that businesses must play a leading role in driving decarbonization in the U.S.,” said Paolo Romanacci, head of Enel North America’s renewable energy business, Enel Green Power. “Enel offers a suite of tailored solutions that enable our partners to reach net zero. Through this VPPA, Enel is proud to support Takeda in advancing toward the company’s sustainability goals.”

“Corporate sustainability requires impactful clean energy investments,” said Hannah Badrei, Ph.D., vice president of energy supply advisory, Edison Energy. “This was a cutting-edge transaction in which Takeda has enabled construction of the project and reduced its emissions through a virtual Power Purchase Agreement, while also stabilizing costs via an innovative volatility protection structure. A transaction like this goes a long way in measurably impacting climate change, and Edison is proud to support Takeda on its journey towards a healthier, resilient, and more sustainable future.”

About Takeda’s Commitment to Environmental Sustainability

As a responsible, science-driven organization, Takeda remains dedicated to robust environmental sustainability goals aligned with current climate science and is committed to discovering long-term solutions to address the evolving needs of our people, patients and planet. Studies have demonstrated the intrinsic link between the effects of climate change and human health and Takeda is taking action to address both and making bold commitments to reach net-zero greenhouse gas emissions across its operations and the entire value chain. The company achieved carbon neutrality across its value chain (including scopes 1, 2, and currently estimated scope 3 GHG emissions) for the first time in 2020 (for its fiscal year 2019 GHG emissions), delivered by a continued focus on internal energy conservation measures, an increased use of renewable energy and the purchase of high-quality carbon offsets. Recently, Takeda announced an accelerated goal to achieve net-zero GHG emissions related to operations, including scopes 1 and 2, before 2035 and for its entire value chain, including currently estimated2 scope 3 GHG emissions, before 2040.3 Previously, Takeda committed to reaching net-zero GHG emissions for scopes 1 and 2 and a 50% reduction in scope 3 emissions by 2040.

The VPPA is only one part of Takeda’s strategic transition to low-carbon and renewable energy sources. Direct renewable energy purchases and on- and off-site renewable energy generation installations also play a role. Takeda is focused on increasing renewable energy usage and driving energy efficiencies by looking beyond its own operations and working with suppliers to help them establish science-based reduction targets and reduce greenhouse gas emissions.

In addition to its decarbonization efforts, Takeda has made natural resource conservation commitments supporting water stewardship, responsible waste management and biodiversity, and is also incorporating environmental sustainability principles into its product development stages to minimize the impact of products and packaging throughout their life cycles. As a global organization, Takeda continues to find new ways to develop profitable solutions to address the problems of our planet and the communities where we live and work. For more information on Takeda’s priorities in advancing environmental sustainability, please visit: https://www.takeda.com/corporate-responsibility/reporting-on-sustainability/planet/.

About Takeda

Takeda is a global, values-based, R&D-driven biopharmaceutical leader headquartered in Japan, committed to discover and deliver life-transforming treatments, guided by our commitment to patients, our people and the planet. Takeda focuses its R&D efforts on four therapeutic areas: Oncology, Rare Genetics and Hematology, Neuroscience, and Gastroenterology (GI). We also make targeted R&D investments in Plasma-Derived Therapies and Vaccines. We are focusing on developing highly innovative medicines that contribute to making a difference in people’s lives by advancing the frontier of new treatment options and leveraging our enhanced collaborative R&D engine and capabilities to create a robust, modality-diverse pipeline. Our employees are committed to improving quality of life for patients and to working with our partners in health care in approximately 80 countries and regions. For more information, visit https://www.takeda.com.

About Enel North America

Enel North America, part of the Enel Group, is a clean energy leader in North America and is working to electrify the economy and build a net-zero carbon future by decarbonizing energy supply, electrifying transportation, creating resilient grids, and promoting a just, equitable transition. Enel North America serves over 4,500 businesses, utilities, and cities through renewable power generation, demand response, distributed energy resources, smart e-mobility solutions and services, energy trading, advisory and consulting services, and more. Its portfolio includes over 8 GW of utility-scale renewable capacity, 110,000 electric vehicle charging stations, 4.7 GW of demand response capacity and 12 utility-scale battery energy storage systems totaling 1,290 MWh of capacity under construction or in operation. Visit enelnorthamerica.com and follow us on LinkedInTwitter, and YouTube to learn more.

Important Notice

For the purposes of this notice, “press release” means this document, any oral presentation, any question and answer session and any written or oral material discussed or distributed by Takeda Pharmaceutical Company Limited (“Takeda”) regarding this release. This press release (including any oral briefing and any question-and-answer in connection with it) is not intended to, and does not constitute, represent or form part of any offer, invitation or solicitation of any offer to purchase, otherwise acquire, subscribe for, exchange, sell or otherwise dispose of, any securities or the solicitation of any vote or approval in any jurisdiction. No shares or other securities are being offered to the public by means of this press release. No offering of securities shall be made in the United States except pursuant to registration under the U.S. Securities Act of 1933, as amended, or an exemption therefrom. This press release is being given (together with any further information which may be provided to the recipient) on the condition that it is for use by the recipient for information purposes only (and not for the evaluation of any investment, acquisition, disposal or any other transaction). Any failure to comply with these restrictions may constitute a violation of applicable securities laws.

The companies in which Takeda directly and indirectly owns investments are separate entities. In this press release, “Takeda” is sometimes used for convenience where references are made to Takeda and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies.

Forward-Looking Statements

This press release and any materials distributed in connection with this press release may contain forward-looking statements, beliefs or opinions regarding Takeda’s future business, future position and results of operations, including estimates, forecasts, targets and plans for Takeda, which include Takeda’s greenhouse gas emission goals. Without limitation, forward-looking statements often include words such as “targets”, “plans”, “believes”, “hopes”, “continues”, “expects”, “aims”, “intends”, “ensures”, “will”, “may”, “should”, “would”, “could” “anticipates”, “estimates”, “projects” or similar expressions or the negative thereof. These forward-looking statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those expressed or implied by the forward-looking statements: the extent to which our internal energy conservation measures and future advancements in renewable energy or low carbon energy technology will enable us to reduce our GHG emissions; the economic circumstances surrounding Takeda’s global business, including general economic conditions in Japan and the United States; competitive pressures and developments; changes to applicable laws and regulations, including global health care reforms; challenges inherent in new product development, including uncertainty of clinical success and decisions of regulatory authorities and the timing thereof; uncertainty of commercial success for new and existing products; manufacturing difficulties or delays; fluctuations in interest and currency exchange rates; claims or concerns regarding the safety or efficacy of marketed products or product candidates; the impact of health crises, like the novel coronavirus pandemic, on Takeda and its customers and suppliers, including foreign governments in countries in which Takeda operates, or on other facets of its business; the timing and impact of post-merger integration efforts with acquired companies; the ability to divest assets that are not core to Takeda’s operations and the timing of any such divestment(s); and other factors identified in Takeda’s most recent Annual Report on Form 20-F and Takeda’s other reports filed with the U.S. Securities and Exchange Commission, available on Takeda’s website at: https://www.takeda.com/investors/sec-filings/ or at www.sec.gov. Takeda does not undertake to update any of the forward-looking statements contained in this press release or any other forward-looking statements it may make, except as required by law or stock exchange rule. Past performance is not an indicator of future results and the results or statements of Takeda in this press release may not be indicative of, and are not an estimate, forecast, guarantee or projection of Takeda’s future results.

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1 Takeda defines net zero emissions in accordance with The Greenhouse Gas Protocol.
2 A lack of transparency into, and a difficulty measuring, actual Scope 3 emissions remains an important challenge to overcome as part of these efforts.
3 Takeda defines carbon neutrality and net zero emissions in accordance with The Greenhouse Gas Protocol and the Science Based Targets initiative. Additional information on our carbon neutrality efforts and other environmental sustainability programs is available at https://www.takeda.com/corporate-responsibility/reporting-on-sustainability/planet/

Contacts

Media:
Japanese Media
Jun Saito
Jun.Saito@takeda.com
+81 (0) 3-3278-2325

U.S. and International Media
Megan Ostrower
Megan.ostrower@takeda.com
+1 772-559-4924

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