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Climate Change

ESRS E1 – Climate Change

E1-1 – Transition plan for climate change mitigation

Our transition plan, approved by the Management Committee, for climate change mitigation involves several strategies. First, by 2030, we commit to reducing absolute scopes 1 and 2 GHG emissions by 42% from a 2022 base year. In addition, by 2030, we plan to reduce scope 3 emissions by 37% through a combination of engagement with our suppliers and an absolute reduction on remaining scope 3 emissions.

Longer term, we aim to be net-zero by 2040 by achieving a reduction of GHG emissions to a residual level in line with the Paris Agreement’s 1.5°C scenarios, with neutralization of residual emissions through investing in the permanent removal and storage of carbon from the atmosphere.

This is in line with the Science Based Targets initiative's (SBTi) specific criteria for near- and long-term targets to comply with either a 1.5°C or a well below 2°C scenario.

We are not excluded from EU Paris-aligned benchmarks in accordance with the exclusion criteria stated in Articles 12(1) (d) to (g) and 12(2) of Commission Delegated Regulation (EU) 2020/1818 (Climate Benchmark Standards Regulation). 

The transition plan includes the transfer of the Jyseleca® business to Alfasigma, and the expected CO2 reduction resulting from the transfer. However, we expect to substitute the transferred Jyseleca® supply chain with the oncology supply chain supporting the growth of our DMU-network and business.

More concrete, for scope 1 & 2 (direct emissions & purchased energy), the main drivers for carbon footprint reduction will be:

  • The implementation of electrification of our car fleet, aiming for a 100% adoption rate by 2030, and use of renewable energy only, by relying on Guarantees of Origin, Power Purchase Agreements (PPAs) or a leasing company that offers fuel cards that guarantee green electricity; and
  • Renewable electricity sourcing and improve energy efficiency of our operations.

For scope 3 (indirect emissions), the main drivers for carbon footprint reduction will be:

  • Direct reduction efforts in commuting (e.g., via a shift from conventional private cars to electric or by supporting alternative commuting programs with low/zero emissions modes of commuting);
  • Implementation of a supplier engagement initiative so that our suppliers must meet (validated) science-based targets. Suppliers included in the supplier engagement targets are expected to develop, review and report on their targets according to certain criteria: our suppliers shall:
    • Set science-based-aligned scope 1 and 2 targets as a minimum requirement. Inclusion of scope 3 targets are required if these emissions are greater than 40% of the supplier’s total emissions;
    • Review their targets to ensure that they are aligned with SBTi Criteria and Guidelines. Validation of supplier targets through the SBTi is recommended but not required; and
    • Report progress against their target on an annual basis (either publicly or through the annual data collection process). 

Our transition plan is fully embedded in our company strategy and financial planning, as described in section E1-3. The financial requirements for implementing these levers are integrated into our overall business planning and will be financed according to business needs. This approach ensures that decarbonisation efforts are aligned with our operational and strategic priorities. Where additional investments might be needed, we have the Sustainability Steering Committee and related governance structure as described in the section our Sustainability Governance in place.

Material impacts, risks and opportunities and their interaction with strategy and business model

Our commitment to climate change mitigation presents an opportunity to drive meaningful positive impact across our entire value chain. In the short term, we recognize the importance of addressing GHG emissions and transitioning to low-carbon operations. This opportunity aligns with our organizational strategy, while also mitigating climate-related transitional risks to our reputation and stakeholder trust should these efforts be overlooked. To capitalize on this opportunity, we are actively pursuing a transition to a low-carbon economy, embedding climate-focused initiatives within our broader sustainability actions to achieve our 2028 goals. These actions include investments in energy-efficient technologies, renewable energy adoption, and collaboration with stakeholders to foster innovative, sustainable solutions. While working together with our suppliers to reduce GHG emissions, we see a potential positive impact supporting the transition into a low carbon economy.

As our double materiality assessment did not identify any material climate-related risks, and considering our limited GHG emissions, we didn’t perform a detailed material climate-related risk assessment and resilience analysis, nor a deeper analysis of potential climate-related risks. As a consequence, given that we did not carry out a deeper analysis of potential climate risks considering different potential climate scenarios, no statement on the resilience of the business to climate change can be made. However, we continue to monitor developments in climate-related risks and assess their relevance to our business.

E1-2 – Policies related to climate change mitigation and adaptation

We established an Environmental, Health and Safety policy, for which the Chief Operating Officer is accountable, committing to sustainable operations, focused on minimizing our carbon footprint and striving to diminish our consumption of natural resources throughout our operations and entire value chain.

Our policy includes commitments to:

  • Minimize GHG emissions by implementing sustainable operational practices;
  • Enhance energy efficiency through technology upgrades and resource optimization;
  • Reduce pollution and waste across our value chain; and
  • Optimize natural resource consumption, ensuring the use of sustainable materials where possible.

This structured approach ensures alignment with our broader sustainability strategy towards 2028 and 2030 low-carbon transition goals.

E1-3 – Actions and resources in relation to climate change policies

We have implemented a series of targeted actions and allocated specific resources in 2024 to support our climate change mitigation and adaptation policies. These initiatives align with our broader commitment to transitioning to a low-carbon organization by 2028 and our corresponding business strategy. For our transition plan we aligned with the climate targets set by the European Union for 2030.

Key actions and resources in 2024:

  • Transition to Renewable Energy: 59% of our total energy consumption was sourced from renewable energy, and disclosed in the table presented under E1-5.
  • Fleet Electrification: 47% of our company car fleet is now fully electric, contributing to a reduction in Scope 1 emissions, as disclosed in the table under E1-6.
  • Energy Efficiency Improvements: Implementation of operational efficiency projects aimed at reducing overall energy consumption in our facilities by installing, and maintaining instruments and devices for measuring, regulation and controlling energy performance of buildings.
  • Employee Engagement on Climate Action: Internal initiatives, including participation in the United Nations’ World Environment Day, were organized to raise awareness and encourage climate-positive behavior.

Our EU Taxonomy aligned CapEx related to climate change mitigation was €2.772 million, resulting in 3.04% and OpEx €3.44 million, resulting 0.68% of our total OpEx. Further details can be found in the EU Taxonomy 2024 statement. Other investments are an integrated part of our capital cost allocations and/or operating expenditure (such as switching to green electricity) and are therefore not reported here, but in general CapEx and OpEx.

Considering the planned separation (see Separation sectionSeparation section), the future financial resources required for further implementation of the decarbonization levers are not yet determined.

Metrics and targets

E1-4 – Targets related to climate change mitigation and adaptation

We have established greenhouse gas (GHG) emissions reduction targets for our scope 1 and 2 (market-based) emissions, as well as scope 3, in alignment with the Science Based Targets initiative (SBTi). When defining our 2022 base year and setting targets for 2030, we accounted for the transfer of Jyseleca® activities to Alfasigma while also incorporating an ambitious year-over-year growth scenario for our existing business. Our scope 1, 2, and 3 targets cover 100% of our total emissions across these categories. For scope 1 and 2, we applied an absolute contraction approach to target setting, while for scope 3, we utilized a combination of supplier engagement and absolute contraction.

We commit to reduce absolute scopes 1 and 2 GHG emissions 42% by 2030 from a 2022 base year, and to reduce absolute scope 3 GHG emissions by 37% by 2030 from a 2022 base year through a combination of engagement with our suppliers and an absolute reduction on remaining scope 3 emissions. We are currently in the process of estimating the overall quantitative contributions of our decarbonization drivers (described in section E1-1) to achieve these GHG emission reduction targets.

Longer term, we aim to be net-zero by 2040 by achieving a reduction of GHG emissions to a residual level in line with the Paris Agreement’s 1.5°C scenarios, with neutralization of residual emissions through investing in the permanent removal and storage of carbon from the atmosphere.

This is in line with the Science Based Targets initiative's (SBTi) specific criteria for near- and long-term targets to comply with either a 1.5°C or a well below 2°C scenario.

Our detailed strategy is described in E1-1 of this section of the report.

E1-5 Energy consumption and mix

Energy Consumption and Mix

 

 

 2022
(base year)

 2024

Fuel consumption from coal and coal products

MWh

0

0

Fuel consumption from crude oil and petroleum products(*)

MWh

10,073

506

Fuel consumption from natural gas 

MWh

3,444

2,793

Fuel consumption from other fossil sources 

MWh

0

0

Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources 

MWh

284

269

Total fossil energy consumption 

MWh

13,802

3,568

Share of fossil sources in total energy consumption 

%

77

39

 

 

 

 

Consumption from nuclear products

MWh

496

231

Share of consumption from nuclear sources in total energy consumption

%

3

2

 

 

 

 

Fuel consumption from renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc.)

MWh

0

0

Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources 

MWh

3,667

5,282

The consumption of self-generated non-fuel renewable energy 

MWh

0

108

Total renewable energy consumption 

MWh

3,667

5,390

Share of renewable sources in total energy consumption 

%

20

59

 

 

 

 

Total energy consumption 

MWh

17,965

9,189

(*)

Includes the energy consumed in Galapagos’ buildings, by stationary diesel consumption (used by back-up generators and by Galapagos’ car fleet). The latter is based on estimated distance travelled and estimated fuel consumption.

E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions

For the calculation of our GHG emissions, we use the GHG Protocol. For the organizational boundary we apply the operational control approach. This includes our offices and labs. 

Our scope 1 contains energy/heat generation at our facilities, company vehicles, and fugitive emissions. In our scope 2 emissions purchased electricity, and district heating is included. For the scope 1 and 2 calculations direct data was used. 

Scope 3 consists of both up and downstream activities as included in the table below. The emissions for Purchased goods and services, Capital goods, and Upstream leased assets are calculated based on spend data. For Commuting and Downstream transport data was estimated. 

The calculations are based on activity data multiplied by emission factor. Both supplier specific emission factor, as average emission factor (average values by industry and country from several databases) were used.

We continue to work on improving our data quality and calculation methods. Therefore, we adjusted our 2022 baseline emissions to align with the 2024 methodology. Additionally, we incorporated more accurate data as it becomes available. These changes are reflected in the following categories: purchased goods and services, commuting, and upstream lease assets.

We report a reduction on all three emission scopes for 2024 compared to base year 2022 emissions. Where at first glance we already meet our defined targets that were set for 2030 in 2024, we currently cannot draw any conclusions regarding our progress towards them. This is because the reported reduction is to a large extent attributed to the transfer of the Jyseleca® activities to Alfasigma early in 2024, and the reorganization in 2023, and only to a smaller extent linked to our efforts to execute on our transition strategies (as disclosed in E1-1 above). Due to inherent limitations of the available data in 2022, we were not able to quantify the impact of the Jyseleca® transaction on the base year values. The associated discontinued operations are outlined in financial note 5

As a result of this transfer and the corresponding workforce reduction, the decrease in scope 1, 2 and 3 emissions has met or even exceeded the targets set in our transition plan. However, we expect to substitute the transferred Jyseleca® supply chain with the oncology supply chain, supporting the expansion of our DMU-network, as described in the Platforms section of this report. We are preparing for registrational trials and commercial readiness in the coming years, which is expected to drive an increase in emissions over the next few years. This is in line with our transition plan towards 2030 and the corresponding target setting that took into account the Jyseleca transfer, but also considered a growth of the existing business, (as described in E1-1 and E1-4).  For these reasons, year-on-year comparisons can lead to divergent results. Where the Jyseleca® transfer shows an immediate impact, the impact of the business growth will only gradually become visible over the long term. That’s why we will continue to use 2022 as a base year, while being transparent about the changes that will occur over time. We will evaluate each year whether or not a restatement of the base year values are considered necessary, including in cases of unforeseen events not accounted for in our transition roadmap.

Green House Gas Emissions

 

 

 2022
(base year)

2024

Scope 1 GHG Emissions

 

 

 

Gross Scope 1 GHG emissions

TCO2e

3,029

652

Percentage of Scope 1 GHG emissions from regulated ETS

%

0

0

 

 

 

 

Scope 2 GHG Emissions

 

Gross location-based Scope 2 GHG emissions

TCO2e

857

1,188

Gross market-based Scope 2 GHG emissions

TCO2e

218

114

 

 

 

 

Significant Scope 3 GHG Emissions

 

Total Gross indirect (Scope 3) GHG emissions

TCO2e

72,814

47,889

Purchased goods and services(*)

TCO2e

56,091

39,116

Capital Goods(*)

TCO2e

13,760

6,133

Fuel and energy-related activities(*)

TCO2e

753

350

Upstream leased assets(*)

TCO2e

339

366

Waste generated in operations(*)

TCO2e

50

212

Processing of sold products

TCO2e

N/A

N/A

Use of sold products

TCO2e

N/A

N/A

End-of-life treatment of sold products(*)

TCO2e

11

3

Downstream leased assets

TCO2e

N/A

N/A

Franchises

TCO2e

N/A

N/A

Upstream transportation and distribution(*)

TCO2e

95

2

Downstream transportation and distribution(**)

TCO2e

5

1

Business travels(*)

TCO2e

1,058

1,450

Employee commuting(**)

TCO2e

652

255

Financial investments

TCO2e

N/A

N/A

 

 

 

 

Total GHG emissions

 

Total GHG emissions (location-based)

TCO2e

76,860

49,804

Total GHG emissions (market-based)

TCO2e

76,062

48,655

(*)

actual data

(**)

estimated

Crohn's disease (CD)
An IBD involving inflammation of the small and large intestines, leading to pain, bleeding, and ultimately in some cases surgical removal of parts of the bowel
Jyseleca®
Brand name for filgotinib
Oncology
Field of medicine that deal with the diagnosis, treatment, prevention, and early detection of cancer