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News from the Sustainable Markets Initiative 19 May 2026

2026 Annual Meeting of the Health Systems Working Group, Sustainable Markets Initiative (SMI) China Council

On the afternoon of May 19, 2026, the 2026 Annual Meeting of the Health Systems Working Group, Sustainable Markets Initiative (SMI) China Council, was held in Shunyi, Beijing in a hybrid online-offline format.

The meeting comprehensively reviewed the Working Group’s achievements in 2025, deliberated and approved the 2026 Work Plan. Member companies exchanged practical achievements and clarified next steps around themes such as green and low-carbon development, supply chain upgrading, and sustainable healthcare services, reaching a consensus on industry-wide collaboration to advance green transformation. A representative from Shunyi District delivered a presentation on pharmaceutical and healthcare industry policies on site.

I. Practical Achievements of Member Companies

In 2025, member companies of the Working Group carried out a series of practical initiatives and achieved phased results. Leveraging their respective business strengths, members developed a series of replicable and scalable industry benchmark practices in areas such as green and low-carbon operations, sustainable supply chain development, and accessible healthcare services.

(1) Green and Low-Carbon Operations Practices

Member companies deeply integrated green and low-carbon concepts across the entire value chain of production, operations, and logistics. Through measures such as clean energy substitution, energy-saving technology upgrades, and digital energy and carbon management, they steadily advanced the implementation of China’s “Dual Carbon” goals, fostering a positive industry-wide pattern of collaborative carbon reduction.

China Resources Pharmaceutical Commercial Group continued to optimize its logistics network and energy structure. All newly built logistics parks were designed and constructed in accordance with China’s Green Industrial Building One-Star and Green Building Two-Star standards. Nine warehouses received the China Warehousing and Distribution Association’s First-Class Green Warehouse Three-Star certification. Nineteen logistics parks installed distributed photovoltaic power stations, meeting 20%-30% of their electricity demand. The Jinan Smart Low-Carbon Logistics Park in Shandong saw a 44% year-on-year reduction in carbon emissions. The company replaced a total of 179 new energy transport vehicles, with cumulative mileage exceeding 13 million kilometers and carbon emissions reduced by approximately 2,700 tons. An energy management platform was established to monitor equipment energy consumption in real time and continuously explore energy-saving potential.

AstraZeneca: In 2023, AstraZeneca, together with Novo Nordisk, Lonza, Novartis, Roche, and Envision Energy, established China’s first renewable electricity collaboration project in the pharmaceutical industry through the SMI Health Systems Working Group. In 2024, the number of participating companies increased to 16. In 2023 and 2024, collective procurement facilitated 425 GWh of renewable energy projects, reducing CO₂ equivalent emissions by 250,000 tons annually. In 2025, the project further deepened and expanded cooperation with domestic and regional suppliers, adding 8 new pharmaceutical suppliers and providing an additional 300 GWh of renewable energy supply, expected to reduce CO₂ equivalent emissions by another 150,000 tons per year.

Novo Nordisk Tianjin Factory established a circular zero-pollution assessment model and was rated a municipal-level Green Factory. It fully digitized pharmaceutical inspection reports, reducing paper document consumption by 260,000 copies in 2025. The factory actively promoted and encouraged green electricity procurement among preferred suppliers, providing systematic training and guidance. More than 85% of preferred suppliers have now committed to purchasing green electricity.

Nanjing TICA offers complete HVAC solutions for the pharmaceutical industry. Its core products, including clean air handling units and magnetic levitation chillers, are widely used across the sector and have served over 5,000 pharmaceutical companies. Benchmark cases include: a 40% energy-saving rate for the magnetic levitation cooling system renovation at Boehringer Ingelheim’s Nanchang factory; a 44% energy-saving rate for the chiller plant renovation at Changchun GeneScience Pharmaceutical’s headquarters (Phase I), saving RMB 4,000 in electricity per day; over 2,000 tons of annual carbon reduction at the 5,600 RT high-efficiency chiller plant at Shanghai GeneScience’s headquarters; and its self-developed TICA Optseek intelligent energy-carbon IoT platform using AGI algorithms, which has monitored over 10,000 projects in real time and achieved cumulative carbon reduction of 2.71 million tons.

Kelun Group actively promoted clean energy substitution. Subsidiaries such as ChuanNing Biology and Hunan Kelun completed green electricity transactions. Bases including Xindu and Junjian Plastics invested in distributed photovoltaic projects, reducing carbon emissions by over 5,000 tons annually. The Group strictly controlled pollutant emissions, achieving a 10.76% year-on-year reduction in nitrogen oxide emissions per RMB 10,000 of output value, with total greenhouse gas emissions reduced to 2.78 million tons.

Roche Diagnostics’ newly built biopharmaceutical base (investment exceeding RMB 2 billion) adopts internationally leading processes and uses 100% green electricity. Its digital service solution “Roche eService” was included in the industry’s Best Practice Toolkit. The company was recognized as a 2025 Bloomberg Green ESG50 “Leading Enterprise”.

GSK has achieved 100% renewable electricity usage across its global factories, while simultaneously advancing water resource optimization, 100% sustainable procurement, and zero deforestation targets. Its global sales fleet is fully transitioning to 100% electric vehicles. These sustainable initiatives have been fully implemented in daily operations at its China offices and factories.

PharmaBlock Sciences (Nanjing), Inc. developed its own carbon management and product carbon footprint platform to achieve refined carbon footprint management across the entire industrial chain. It is steadily implementing SBTi science-based carbon targets, actively deploying green electricity procurement and energy-saving carbon reduction technologies, providing replicable technical solutions for carbon management in the pharmaceutical industry.

Envision Energy’s wholly-owned subsidiary provides green electricity services for 2024–2026 to five multinational pharmaceutical companies. In 2024 and 2025, the average green electricity supply rate for four multinational pharmaceutical companies in Jiangsu reached exceptionally high levels of 99.76% and 97.61%, respectively.

Sanofi implements sustainable procurement and has established green supply chain standards, prioritizing low-carbon and recyclable raw materials. For example, its Shenzhen factory actively participates in Shenzhen’s carbon market trading to reduce electricity consumption and CO₂ emissions. Since 2023, all packaging materials at its Beijing pharmaceutical factory have reduced printing colors, simplified printing processes, and minimized ink usage. It assesses and rates suppliers’ sustainability maturity and requires them to commit to using 100% renewable electricity by 2030.

Merck Nantong Factory achieved a 20% improvement in energy efficiency through AI empowerment, uses 100% green electricity, and continues to advance digital marketing and paperless operations, embedding green concepts throughout its business processes. It also leads the promotion of green innovation technologies and digital tools in the healthcare industry.

(2) Sustainable Healthcare Services and Patient Access Practices

Guided by the “Healthy China” strategy, member companies focused on core areas such as medicine accessibility, diagnostic and treatment service upgrading, and public health system development to promote the implementation of sustainable healthcare services, delivering tangible benefits to patients.

China Resources Pharmaceutical Commercial Group continued to advance the implementation of the “Hong Kong and Macao Medicines and Devices Access” project in the Greater Bay Area. As of December 2025, China Resources Guangdong Pharmaceutical had successfully introduced 54 medicines and 83 medical devices, obtaining 359 medicine approvals and 297 device approvals cumulatively, benefiting over 10,000 patients.

AstraZeneca, in collaboration with Ali Health and distributor partners, launched an electronic pharmaceutical inspection report initiative to reduce paper usage in the drug distribution process. Together with Merck, Sanofi, and Novo Nordisk, it jointly released the “Healthcare Services Action Group Initiative,” calling on the healthcare industry to take active steps in green innovation, digital transformation, and carbon footprint measurement.

Novo Nordisk built a one-stop chronic disease management platform centered on the NovoCare APP and mini-programs, covering medication monitoring, diet and exercise guidance, and health education, thereby improving patient adherence and self-management capabilities.

Kelun Pharmaceutical Group actively participated in national centralized procurement and medical insurance negotiations. Fifty-six varieties were selected in national centralized procurement with an average price reduction of 83%, and 353 varieties were included in the national medical insurance catalog. The Group also advanced digitalization of drug distribution, effectively improving medicine accessibility and affordability.

GSK focuses on public health priorities such as vaccines and infectious diseases. It conducts comprehensive scientific research, academic, and public welfare cooperation with domestic partners in adult vaccination and public health, continuously advancing preventive care for adults and enhancing systematic management of preventable diseases among the elderly.

II. Preparations for the Health Parallel Forum at the SMI China Forum

Last year, the SMI China Council successfully hosted the first SMI China Forum, which brought together CEOs of leading domestic and international enterprises for practical discussions and industry matchmaking in key areas such as big health, energy transition, and finance, receiving unanimous praise from participants. During the event, the Health Systems Working Group successfully held the “Sustainable Health Systems” Parallel Forum, where member companies engaged in in-depth discussions with representatives from the Global Council, fully showcasing the green development practices and industry profile of Chinese pharmaceutical enterprises. This year’s SMI China Forum is scheduled for the afternoon of June 22 in Beijing. The Health Systems Working Group will again host a Health Parallel Forum, with the preliminary agenda already drafted. Member representatives are warmly invited to participate and exchange insights.

III. Meeting Summary

The meeting noted that in 2025, thanks to the joint efforts of all member companies, the Health Systems Working Group achieved solid results across all tasks, forming a series of influential industry benchmark practices and laying a strong foundation for the sustainable development of the pharmaceutical and healthcare industry. In 2026, the Secretariat will regularly track and report on the progress of various tasks in accordance with the work plan to ensure effective implementation of all initiatives.

The meeting emphasized that there are no bystanders in the sustainable development of the pharmaceutical and healthcare industry. Whether multinational corporations, domestic leading enterprises, or industry organizations, all are fellow travellers in the industry’s green transformation. The Working Group will continue to build industry consensus, integrate resources, and promote green and low-carbon transformation across the entire value chain of the pharmaceutical and healthcare industry, contributing core strength to the implementation of the “Healthy China” strategy and the high-quality sustainable development of the sector.