Energy & Emissions

Understanding, measuring, and reducing the energy consumption and greenhouse gas emissions of our pharmaceutical packaging operations.

CONTEXT

Energy in Pharmaceutical Packaging

Pharmaceutical contract packaging is an energy-intensive operation. Controlled environment rooms and cleanrooms require continuous HVAC operation to maintain the temperature, humidity, and particulate levels mandated by current Good Manufacturing Practice regulations. Compressed air systems power packaging equipment, pneumatic controls, and environmental barriers. Packaging lines themselves draw significant electrical loads during high-speed operation, and environmental controls for cold chain storage add further energy demand.

Across Meridan's three facilities - totaling more than 350,000 square feet of FDA-registered production space - energy consumption is substantial and represents both a significant operating cost and a meaningful environmental footprint. Understanding the full scope of this energy usage, and the greenhouse gas emissions it generates, is the first step toward reducing it.

We are approaching energy management not as a one-time project, but as a continuous operational discipline. The investments we are making in metering, monitoring, and efficiency improvements will generate ongoing reductions in both energy costs and emissions, while simultaneously improving the resilience of our operations against energy price volatility.

Key Initiative

Greenhouse Gas Inventory

Meridan is currently conducting its first comprehensive Scope 1, Scope 2, and Scope 3 greenhouse gas inventory across all three facilities.

This inventory will establish the foundational emissions baseline from which all future reduction targets, progress reporting, and customer disclosures will be measured. We are committed to completing this work rigorously and transparently, aligned with the GHG Protocol Corporate Accounting and Reporting Standard - the most widely recognized international standard for corporate greenhouse gas accounting.

Understanding the Three Scopes

Scope 1: Direct Emissions

Emissions from sources owned or directly controlled by Meridan, including natural gas combustion for facility heating, company-owned vehicle fleets, and fugitive emissions from refrigeration and HVAC systems.

Scope 2: Indirect Emissions from Purchased Energy

Emissions associated with purchased electricity and steam consumed by our facilities. For most pharmaceutical packaging operations, Scope 2 represents the largest share of direct operational emissions due to the significant electrical loads of cleanroom HVAC, packaging equipment, and environmental controls.

Scope 3: Value Chain Emissions

Emissions that occur across our broader value chain, including the production and transportation of raw materials and packaging components (films, foils, cartons, labels, adhesives), inbound and outbound logistics, employee commuting, business travel, and end-of-life treatment of sold packaging. Scope 3 is typically the most complex and largest category for a manufacturing company, and building accurate Scope 3 estimates requires close collaboration with suppliers and logistics partners.

The complexity of Scope 3 accounting is particularly significant for a pharmaceutical contract packaging operation. We procure a wide range of packaging materials - PVC and PVdC films, aluminum foils, folding cartons, printed labels, HDPE bottles, child-resistant closures, and specialty components - from dozens of suppliers. Each of these materials carries its own embedded carbon, and obtaining reliable emissions factors for these inputs is an area of active work.

To support this effort, Meridan is exploring partnerships with specialized greenhouse gas accounting firms and sustainability software platforms that can provide the tools, data infrastructure, and expertise needed to build a credible, auditable GHG inventory. We are evaluating solutions that integrate with our existing ERP and procurement systems to enable ongoing, efficient emissions tracking rather than periodic manual exercises.

We recognize that this is an area where the right technology partner can significantly accelerate our progress. If you represent a GHG accounting or sustainability software platform and believe your solution could support Meridan's environmental measurement objectives, we welcome the conversation.

INITIATIVES

Energy Reduction Initiatives

Active and planned programs to reduce energy consumption and improve operational efficiency across all Meridan facilities.

LED Lighting Upgrades

Completed at 2 facilities

Completed full LED lighting retrofits at Facilities I and III, reducing lighting energy consumption by an estimated 40-60% at those sites. Facility II is scheduled for completion in 2025.

HVAC Optimization Program

Underway

Engaged mechanical engineering consultants to assess HVAC systems at all three facilities. Cleanroom HVAC represents the single largest energy load in pharmaceutical packaging operations, and even modest efficiency gains produce significant reductions in both energy costs and emissions.

Compressed Air System Optimization

Underway

Conducting compressed air audits at Facilities I and II to identify and eliminate leaks, optimize pressure settings, and evaluate variable-speed drive compressor upgrades. Compressed air is one of the most energy-intensive utilities in a packaging facility.

Energy Sub-Metering Installation

In progress

Installing sub-metering systems at all facilities to provide granular, real-time energy consumption data by production area. This data is essential for identifying the highest-impact reduction opportunities and tracking the effectiveness of efficiency investments.

Fleet Electrification Evaluation

Evaluation phase

Evaluating the transition of company-owned vehicle fleets and material handling equipment to electric alternatives, including forklifts, dock trucks, and shuttle vehicles.

Renewable Energy Assessment

Evaluation phase

Assessing renewable energy procurement options for all facilities, including on-site solar feasibility studies, renewable energy certificate programs, and virtual power purchase agreements.

TRANSPARENCY

Reporting & Transparency

Meridan is committed to transparent environmental reporting. Once our baseline GHG inventory is complete, we intend to disclose our emissions data through established channels including CDP (formerly the Carbon Disclosure Project) and direct reporting to customers through their supplier sustainability programs.

We understand that this reporting is not optional for a company that serves major pharmaceutical customers. Our customers are responding to their own investors, regulators, and stakeholders on climate issues, and they need reliable environmental data from every link in their supply chain. When a pharmaceutical company commits to reducing its Scope 3 emissions by a specific percentage by a specific date, they need contract packaging partners who can contribute verified data and demonstrate measurable progress.

Meridan is building the infrastructure - metering systems, data platforms, internal expertise, and external partnerships - to meet these expectations consistently and credibly. We view transparent environmental reporting not as a burden, but as a fundamental requirement of being a trusted supply chain partner in the pharmaceutical industry.

Energy & Emissions Inquiries

For questions about Meridan's GHG inventory, energy programs, or sustainability partnerships, contact our team.