Hear from our Procurement Game Changer
Better Health Within Reach, Everyday
About Hikma:
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A multinational pharmaceutical company headquartered in London, UK.
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Has 32 manufacturing facilities, 7 R&D centers, and 8700+ employees worldwide.
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Part of the FTSE 100 index and has a
2.5+ billion USD revenue.
Challenge
Hikma is committed to making their operations more energy efficient and environmentally responsible, to answer to stakeholder pressure, reputational aspects, and simply do good for the world. For this, measuring and understanding carbon emissions is crucial.
Although the company, as many others, are already experienced in scopes 1 + 2, understanding the emissions of the supply chain can be challenging, overwhelming and is resource intensive.
Hikma realized that to be able to act on environmental issues, a new type of solution would be needed. Ideally, this would include the following:
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Insights on supply chain (=scope 3) emissions
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Refreshes more often than once a year or quarter
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Visibility into emissions on a granular level to be able to track how emissions develop over time
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A solution that can be used for reporting as well as for the CPO perspective to understand which categories and suppliers to focus efforts on
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Numbers that can be relied on
Solution
To solve its challenges, Hikma partnered with Sievo in 2021*.
Sievo’s CO2 Analytics solution was a key stepping stone to gain a holistic view of the emissions in the organization. Sievo CO2 Analytics builds on Sievo’s Spend Analytics and enables visibility into the emissions needed for reporting and analysis purposes.
Reducing emissions is not a one-man job. Therefore, at Hikma, collaboration is needed between procurement and sustainability.
*Hikma has partnered with Sievo since 2020
Combining the emissions data with all other procurement data in Sievo enables for sharing insights with the organization easily and allows for supercharging cross-functional communication and collaboration.
Being able to identify the emissions hotspots in their procurement categories, suppliers, and regions helps Hikma to focus their efforts where it really matters.
Automated data refreshes are efficient, enabling more time to focus on actions based on the insights found.
Results
Hikma, like many other companies, saw measuring scope 3 emissions as a challenge, resulting in a lack of understanding of the supply chain emissions, which is where approximately 88% of the emissions exist.
By using Sievo, Hikma has gotten visibility into its scope 3 emissions related to both direct and indirect spend. Now various teams use Sievo’s dashboards to track Hikma’s Scope 3 emissions and identify emission hotspots to prioritize which suppliers to engage with.
Hikma’s team can now benchmark different suppliers within the same category as well as embed sustainability into procurement practices. Notably, visibility into progress is needed to track emission reduction goals, ultimately resulting in competitive advantage. Sievo CO2 Analytics enables Hikma to track progress over time through data.
With significantly greater mapping accuracy, the team can trust the data and the insights gotten.
