Material Insights · Understanding the Material World

Custom synthesis (CDMO): Emissions

Why pharma giants now ask their suppliers for green power

What this tab covers The greenhouse-gas footprint per tonne, split by lifecycle phase (feedstock, production, movement, use, end of life), the global total, other environmental impacts, levers and low-carbon routes, India's position, and where the investment opportunity lies. Emission intensity 48.5 t CO2e per $ million revenue (pharma sector average, 2015) range varies widely by company and modality · sector-wide intensity for 15 large pharma companies, scopes 1 and 2 plus reported scope 3 where available; CDMO-specific average not published Global emissions per year 8.40 Mt CO2e per year 2025 · 48.55 t/$m x $173.7 billion CDMO revenue (derived, indicative; mixes years and scopes)

Per t CO2e per $ million revenue (service business); per kg API for products. Intensity: Belkhir and Elmeligi, J. Cleaner Production 214 (2019) (indicative for CDMOs). Global total: derived (indicative).

Share of footprint by lifecycle phase

Feedstock 50% Production / process 45% Movement 5%

Footprint by lifecycle phase

PhaseIntensityShareMain sources of emissionsNotesSource
Feedstockpurchased solvents, reagents, single-use plastics50%scope 3 purchased goodsindicativeindicative
Production / processsteam, power, HVAC for cleanrooms, incineration45%coal-heavy power in India and Chinaindicativeindicative
Movementair freight of samples and APIs5%air freightindicativeindicative
Usenot applicable–attributed to drug products
End of lifesolvent and hazardous waste incineration–waste treatmentoften counted in process

Other environmental impacts

Hazardous solvent waste, potent compound releases, single-use plastics in biologics.

Levers to cut emissions

  • Renewable power purchase agreements (big pharma customers increasingly require supplier targets)
  • Solvent recovery and green chemistry at route design
  • Electrified steam and heat pumps
  • Supplier engagement programmes such as the Energize initiative for pharma suppliers (indicative)

India

Indian CDMOs report emissions in BRSR filings; customers' scope 3 targets are pushing them toward renewable power (no aggregate figure found).

Emission figures are indicative global averages from the life-cycle studies named; actual footprints vary widely by site, energy mix and method.

Low-carbon routes

RouteIntensityCost premiumStatusSource
Green chemistry route design at development stagePMI reductions of half or more in award cases (indicative)often cost-savingstandard practice at leading CDMOsACS GCI Pharmaceutical Roundtable (indicative)
For a climate investor Big pharma customers have scope 3 targets that fall on their CDMOs, so Indian CDMOs need renewable power, green steam and solvent recovery to win and keep contracts. Utility-scale renewable PPAs and industrial heat solutions sold to API and CDMO clusters (Hyderabad, Vizag, Gujarat) are the practical entry point.