Novartis is committed to using resources efficiently and reducing greenhouse gas (GHG) emissions, which affect the global climate. Our ambition is to make the company both energy and climate resilient. We have therefore established targets to first become carbon neutral in our own operations (Scope 1 and 2) by 2025, and then reduce our carbon footprint, including that of our supply chain (Scope 1, 2 and 3), by half versus 2016 levels by 2030. In order to achieve our ambition, we have an approved Science Based Target : we aim to achieve at least a 35% reduction in absolute emissions across our value chain. In addition, we plan to encourage our supply chain to adopt energy-efficient measures and make broader use of renewables. We also use credible, transparent carbon sequestration projects (offsets), for example natural climate solutions, such as Novartis-owned forestry projects to help reduce our overall carbon footprint by half.
In Argentina, we are growing a forest of more than 3 million trees to sequester carbon and create sustainable wood products.
We have a longstanding, comprehensive energy and climate program, which aims to improve energy efficiency for all industrial and commercial operations and use renewable energy sources where available and feasible. In 2019, our windfarm in Texas has decarbonized our procured electricity in the United States and Novartis is now pursuing a similar strategy in Europe. In addition, we work to develop our own forestry projects as carbon sinks to compensate for parts of our operational GHG emissions, which we cannot avoid. To improve our climate resilience, we have started to assess how climate change will affect facilities and to take actions to make them less susceptible to extreme weather events.
Novartis has set an internal carbon price of USD 100 per ton (t) of carbon dioxide equivalents (CO2e). This is used to determine the financial impact of GHG emissions from significant investments. Building a carbon price into investment decisions is important because it helps ensure that projects are selected which have the lowest overall climate impact. This is important as it is more effective to build in energy efficiency from the beginning than to redesign an existing system.
Novartis has a comprehensive energy management program, which helps ensure energy saving opportunities are routinely included in all new projects. All major sites have been audited to identify energy efficiency improvements and options to increase their use of renewable energy. Novartis has a long-term view on capital investments associated with energy conservation, allowing prioritization of projects that save energy and reduce GHG emissions.While our long-term goal is to lower GHG emissions through internal programs, we have taken additional measures to achieve our GHG emission targets. Our approach includes voluntary carbon-offset options, such as the United Nations Clean Development Mechanism (CDM), that enable companies or countries to compensate for exceeding emission limits through offsetting, particularly in developing countries or emerging markets.