Minimising our environmental impact

We are committed to monitoring and minimising our environmental impacts. We continue to make our operations more energy efficient and environmentally responsible.

Climate change is one of the greatest challenges of this generation. Scientific consensus is that climate change is being caused by an increase in carbon dioxide and other greenhouse gas (GHG) emissions primarily resulting from human activities.

The impacts of higher average global temperatures from climate change include increased frequency and intensity of extreme weather events and temperatures, accelerated biodiversity loss, water scarcity and sea level rise. The impacts of climate change will vary by region, affecting millions of people and their livelihoods, and threatening global economic stability.

The 2015 Paris Climate Agreement is a global commitment to keep Earth’s temperatures below 2ᴼC. A recently released Intergovernmental Panel on Climate Change (IPCC) report stresses the importance of staying within 1.5ᴼC of warming to avoid the worst impacts of climate change. The report states that at current rates, we will hit 1.5ᴼC warming within the next decade. This means action to reduce GHG emissions is imperative now.

At Hikma, we recognise the challenge climate change presents and we welcome the Paris Climate Agreement to limit global warming to less than 2ºC. We are committed to reducing our climate impact and improving the resilience of our business in the face of future climate change. As a result, we are working collaboratively across the business to improve the efficiency and sustainability of our operations, products and services.


Human health is closely linked to the health of our planet and climate change is having a negative effect on our natural environment. The impacts putting human health and wellbeing at risk include heat stress, increased flood risk, food insecurity, air pollution, changing patterns of infectious disease and greater levels of environment-driven migration.

According to the World Health Organization (WHO), climate change is expected to cause approximately 250,000 additional deaths each year from malnutrition, malaria, diarrhoea and heat stress between 2030 and 2050[1]. It also presents a threat to respiratory health, both by directly promoting or aggravating respiratory diseases and by increasing exposure to risk factors for respiratory diseases[2].

The impacts not be uniform across the global and some areas will feel the impact more than others. For example, in the Middle East reports suggest that higher temperatures could reduce worker and increase mortality rates[3]. Similarly, climate change is expected to impact food production and the nutrient profile of food crops. Estimates suggest an additional 175 million people could become nutrient deficient as a result of higher global temperatures, with people in South and Southeast Asia, Africa and the Middle East at greatest risk.

For further more information:

1WHO Climate change and health

2ERS publications - Climate change and respiratory disease

3gLAWcal - The impact of climate change on health in MENA region

 


In 2018, we achieved a 0.8% decrease in GHG emissions compared to 2017.

Our direct emissions (scope 1) increased by 4% between 2017 and 2018, largely attributable to production increases over that period. 

Our emissions from electricity use (scope 2) fell by 3% despite the expansion of many of our facilities. This is due to energy efficiency measures that were put in place throughout the year.

By relying on cleaner fuels, such as natural gas and liquefied petroleum gas (LPG) rather than diesel, we were able to offset overall emissions increases that resulted from our production increases. 

* Emissions from the consumption of electricity are reported in tonnes of carbon dioxide (tCO2) rather than tonnes of carbon dioxide equivalent (tCO2e) since the International Energy Agency emission factors for electricity currently account for carbon dioxide emissions only

* Emissions are calculated in alignment with the WRI’s Greenhouse Gas (GHG) Protocol Corporate Accounting and Reporting Standard


Emissions intensity provides another metric to assess our performance. Our emissions per full-time employee (FTE) increased 7% in 2018. This is primarily down to a reduction in employees of almost 2% combined with our operational expansion.

Emissions intensity per million US$ of revenue fell by 7.2% in 2018 reflecting the 6.9% increase in revenue in 2018.

Our aim is to continue improving our energy efficiency and to measure our progress through several benchmarks that provide a balanced view of our environmental performance.


In line with our commitment to improve the scope and accuracy of our environmental reporting, we reported indirect emissions (scope 3) from waste management and water consumption for the first time in 2018. By expanding our performance monitoring and reporting, we aim to create the platform to deliver efficiency improvements in the future.


In 2018, for the first time, we have reported water consumption for our global operations. Total water consumption for the year was 952,442 cubic metres (m3). From 2019 onwards, we will be able to monitor our year-on-year performance and target improvements in our water efficiency.


We measure and report our emissions of atmospheric pollutants, including oxides of nitrogen (NOx) and sulphur (SOx), in order to benchmark our performance and drive cleaner, more efficient operations. The main sources of these emissions are heating and cooling systems, in particular combustion of fuel in boilers. The table below shows our atmospheric pollutant emissions in 2018.

Atmospheric pollutants emissions, 2018

Atmospheric pollutant

kg

Nitrogen Oxides (NOx)

11,065.2

Sulphur Oxides (SOx)

680.4

Other

0.001

Total

11,745.6