Waste

2030 Waste Goals and Our Progress to Date

In 2021, we established new waste goals to reduce landfill waste, address plastic waste from our operations and support integration of sustainability into the designs of our products.

Zero waste to landfill from routine operations

In 2023, 16 out of Lilly’s 29 facilities achieved the zero-landfill target, resulting in 2% of our waste from routine operations being sent to landfill. While the number of our facilities reaching the zero-landfill target increased, there was a small overall increase from 2022 in the aggregate percentage of routine operations waste being sent to landfill, which was driven by an operational matter with one of our internal waste management processes and on-boarding a new manufacturing site. We do not anticipate that these drivers will impede our long-term goal.

100% of plastic waste repurposed for beneficial use, with at least 90% recycled or reused

In 2023, we were able to repurpose 97.1% of plastic waste for beneficial use (reuse/recycle/waste-to-energy), primarily driven by recycling of plastics from our manufacturing processes and incoming packaging material. Of this plastic waste, 88.4% was recycled or reused, bringing us close to our 90% goal.

Managing Waste Across Our Operations

In 2023, Lilly generated 118,000 metric tonnes of waste, representing a 9% reduction in total waste versus 2020. This reduction was achieved while increasing manufacturing production rates across the same period. Most of the waste (84%) generated by Lilly is considered non-hazardous by relevant regulatory authorities. The remaining 16% of waste we generate that is considered hazardous is carefully stored and packaged, and shipped to approved treatment facilities, some of which recover energy from the waste. We strive to only send hazardous waste to landfills when there is no other option or when required by law.

Plastic Waste Reduction Efforts

We are focused on minimizing our plastic waste footprint. To do this, we reduce the generation of plastic waste where possible, identify where recycled plastic materials are suitable for use in our processes and maximize the reuse and recycling of plastic waste. When reduction, reuse and recycling are not viable, we send plastic waste to a facility that converts waste into energy.

In 2021, Lilly began developing processes for measuring and reporting plastic waste. We use both quantitative and qualitative measurement systems. These systems allow us to estimate our current progress relative to our plastic waste goals, and we strive to improve these measurement systems over time.

As noted, we were able to repurpose 97.1% of our plastic waste for beneficial use (reuse/recycle/waste-to-energy) in 2023, primarily driven by recycling of plastics from our manufacturing processes and incoming packaging material. Of our total plastic waste, approximately 88.4% was recycled or reused. While these numbers are close to our established plastic waste goals, we anticipate that it will take significant efforts – such as new technologies and innovative external capacity – to achieve 100% beneficial use and at least 90% reused or recycled.

As part of our commitment to continually improve our environmental impact, we optimize plastic use at our manufacturing facility in Indianapolis through a reuse and recycling program. As part of this program, approximately 3,300 metric tonnes of packaging from incoming materials are sent to our recycling partner annually. The diverted plastics are used as feedstocks for other products such as composite decking, furniture and carpet padding.

At our headquarters in Indianapolis, Indiana we have eliminated nearly all polystyrene foam materials from our cafeterias and transitioned to biobased to-go containers and other more environmentally friendly materials.

In 2023, we transitioned the majority of our plastic bottled drinks to aluminum cans within our Indianapolis campuses, which yielded multifaceted benefits. This initiative reduced our plastic consumption, evidenced by a decrease of 107,000 plastic bottles annually. Additionally, the shift to aluminum, which boasts higher recycling rates than plastic, aligns with our environmental sustainability goals.

In our Indianapolis facilities over the last five years, we have collected and recycled beverage bottles, cans and food-related cardboard shipping containers resulting in over 1,000 tons of mixed recyclables over the last five years. We have also collected and composted more than 26 tons of kitchen prep food waste, which was used to augment fertilizer needs for a commercial farm.

At our facilities in Europe, our food service providers have focused on elimination of single-use plastics for items such as cutlery, plates, drink accessories (stirrers and straws) and take-away bags.

Integrating Sustainability into Our Product and Packaging Design Processes

To support our 2030 waste goals, we continue to build on efforts to incorporate sustainability into the lifecycle of our products, delivery devices and packaging, with waste reduction in mind. Our goal is to integrate sustainability-focused design principles into future product and packaging design processes, while identifying and evaluating opportunities to enhance our current portfolio including labeling in some markets that will better inform the patient on disposal. We aspire to develop products that are inclusive, trustworthy and sustainable.

Inclusive

We strive to design intuitive experiences that are inclusive of the unique capabilities and changing conditions of people around the world and that meet their diverse abilities and needs.

Trustworthy

We demonstrate care and compassion for people and aim to create devices and packaging that are consistent, reliable and easy to learn and use across all touchpoints.

Sustainable

We strive to design our therapies, devices, packaging and experiences for longevity and minimal environmental impact.

We aim to make our products more sustainable without sacrificing safety, user experience or patient outcomes. We strive to position our products at the top of our “reduce, reuse, recycle” waste hierarchy, and design for recyclability while also reducing medical waste and electronic waste. We are investing to research and identify renewable/bio-based materials to make our future packaging and devices more sustainable and we are exploring collaborations and partnerships with our key materials suppliers to evaluate the feasibility for improving the sustainability of existing devices.

Lilly has developed a Design for Sustainability Guidebook to support the design of our next generation of delivery devices to meet Lilly’s environmental goals. The guidebook is used internally to provide insights into sustainability approaches in device and secondary packaging design, materials, and recycling. It aims to increase knowledge in this space and explore best practices when designing our devices and packaging in a regulated environment.

For Lilly’s existing drug delivery devices, we focus on the selection of materials and waste reduction and recyclability strategies to improve sustainability. We strive to incorporate additional sustainable design elements into future platforms.

Current Initiatives

Lifecycle Assessment (LCA) – We have advanced our understanding of the carbon footprint for multiple devices, including both existing devices and devices in development, by conducting detailed lifecycle analyses of these devices. The lifecycle analyses were conducted in accordance with ISO 14040, which is a recognized international standard for assessment of the environmental aspects of a product or service in its entire lifecycle. The lifecycle analyses help identify key opportunities for reducing our carbon footprint using alternative materials, secondary packaging, transportation and manufacturing. We will continue to evaluate these opportunities, without impacting the supply of medicines to our patients. In addition, we have developed in-house LCA expertise to drive analysis of our next generation devices during the innovation stages. The effort is aimed at integrating sustainable principles into the next generation devices right from the start.

Device Molding Evaluations (Proof of Concept) – We started evaluating and identifying renewable materials that could be used as alternatives to existing plastic materials used in our devices. In 2023, we completed the proof-of-concept (PoC) trials to make plastic components using renewable materials. Additionally, we continue to investigate energy efficient ways of molding the plastics used in our devices with the goal of reducing energy consumption.

Packaging Improvements – We strive to optimize the size of our product packaging. We have also developed alternatives for packaging used throughout our manufacturing processes, from in-process to final packaging, which allows for reuse or recycling and improves efficiency as we transport products globally. In addition, we are working to better inform our patients about recyclability or appropriate disposal of our products' packaging materials.

Working with Third-Party Suppliers – We continue to engage with our key suppliers of device and packaging components to better evaluate alternate low-carbon material and recycling options to reduce waste.

Long-Term Initiatives

Next-Generation Delivery Devices – For our next generation of devices, we strive to apply learnings from our lifecycle analysis studies to better design and develop future devices with lower environmental impact. Our recently developed Design for Sustainability Guidebook aims to help our internal device teams improve designs and develop more environmentally friendly devices. We are continuing to advance our efforts in this area and aspire to develop durable, reusable devices that help minimize reduce medical and electronic waste.

Packaging Optimization – We are working to reduce packaging and transition to eco-friendly materials where possible. Additionally, the pharmaceutical industry has begun to evaluate the potential to move, as the default, to electronic patient information leaflets instead of printed materials. We recognize there are many aspects to consider, such as regulatory requirements, patient preference and access to technology. However, we are committed to working with stakeholders to assess and understand opportunities to reduce waste through technology advancements and digitization.

Take-Back and Recycling – We are exploring new ways to address end-of-lifecycle product waste. We have initiated pilot programs for device take-back and recycling processes, however, these solutions are not yet available in all geographies or at large scale. Learn more about our Product Stewardship efforts.

We consider many sustainability factors in selecting product packaging, including material use and recyclability. Pharmaceutical packaging must meet stringent regulatory and internal standards. In some cases, this prevents us from using recycled content, as is the case with container closure systems that come into direct contact with our products. However, we have started working with suppliers on the implementation of recycled content materials in our paper-based secondary packaging. We continually seek to improve packaging design to reduce the amount of packaging used, use lower-impact materials and promote recyclability.

Pulp-based Clinical Trial Packaging Change – Our efforts to improve the environmental impact of our packaging goes beyond our commercial products and extends to potential future products currently undergoing clinical trials. Our clinical trial organization has begun to implement pulp-based solutions for device packaging. We are one of the very early adopters to use this pulp packaging option that, like plastics, can be injection molded into a variety of shapes. Use of this eco-friendly packaging option has resulted in a 15% reduction in the size of drug delivery device packaging cartons compared to the original packaging design. This reduction in size also translates to shipping and transportation savings.

Tempo Smart Button Packaging, US Refill Kit Design – The refill kit is a packaging case comprised of various components the patient needs for use of the Tempo system. During packaging development, the design optimization process led to a reduction in the overall size of the packaging (i.e., length and width), which resulted in less waste generation and approximately 25% less warehouse storage space utilization.

For the past two decades, Lilly has operated an asset recovery department dedicated to managing surplus equipment. The department promotes value and social and environmental responsibility through redeploying, selling, donating and recycling assets from across the company’s U.S operations.

Over the past five years, the team has:

successfully redeployed an average of $6.25 million worth of equipment within the company annually

donated more than $1 million worth of surplus company supplies each year to schools and nonprofit organizations.

In 2023, the team facilitated the recycling of approximately 1.8 million pounds of scrap metal, 6.6 million pounds of glass and plastic, 1.69 million pounds of cardboard and 250 refrigeration units.
These efforts effectively diverted the waste from landfills, aligning with our commitment to sustainability.

Lilly continues to leverage technology to evolve our business and reduce our environmental footprint, including transitioning to digital media for promotional materials. We have also improved our inventory management, such as reducing the number of low-use printed materials and better controlling print quantities, which ultimately reduces paper waste.

Visit our Product Stewardship page to learn more about our approach to sustainability throughout product life cycles.

Waste Performance Data

Total Waste Generation (1)	2020	2021	2022	2023
Total Waste Generation (metric tonnes)	2020: 130,000	2021: 118,000	2022: 123,000	2023: 118,000
Non-Hazardous Waste (metric tonnes)	2020: 110,000	2021: 98,000	2022: 101,000	2023: 99,000
Hazardous Waste Generation (metric tonnes)	2020: 20,000	2021: 20,000	2022: 22,000	2023: 19,000

Total Waste Disposition (1)	2020	2021	2022	2023
Beneficial Use (includes recycled, reused and waste-to-energy)	2020: 120,000	2021: 108,000	2022: 111,000	2023: 105,000
Treated (includes combustion without energy recovery) (metric tonnes)	2020: 7,300	2021: 7,100	2022: 8,000	2023: 9,200
Landfilled (metric tonnes)	2020: 2,700	2021: 2,300	2022: 4,000	2023: 3,500

Waste Metrics for Goals (1)	2020	2021	2022	2023
Waste Generated from Routine Operations (metric tonnes)	2020: Not previously reported	2021: 107,000	2022: 110,600	2023: 102,000
Waste to Landfill from Routine Operations (metric tonnes)	2020: Not previously reported	2021: 600	2022: 1,900	2023: 2,000
Plastic Waste from Routine Operations (metric tonnes)	2020: Not previously reported	2021: 8,600	2022: 12,000	2023: 12,400
Plastic Waste Repurposed for Beneficial Use (includes recycled, reused and waste-to-energy) (metric tonnes)	2020: Not previously reported	2021: 8,400	2022: 11,800	2023: 12,100
Plastic Waste Recycled or Reused (metric tonnes)	2020: Not previously reported	2021: 7,600	2022: 10,800	2023: 11,000

Waste Goal Performance (2)	2030 Goal	2022 Performance	2023 Performance
Percent of Waste from Routine Operations Sent to Landfill³	2030 Goal: Zero (less than 0.5%)	2022 Performance: 1.7%	2023 Performance: 2.0%
Percent of Routine Plastic Waste Repurposed for Beneficial Use	2030 Goal: 100%	2022 Performance: 98.0%	2023 Performance: 97.1%
Percent of Routine Plastic Waste Recycled or Reused	2030 Goal: Greater than or equal to 90%	2022 Performance: 89.6%	2023 Performance: 88.4%
Integrate Sustainability-Focused Design Principles into Our Products and Packaging	2030 Goal: N/A	2022 Performance: On Track	2023 Performance: On Track

Footnotes

Note: Some segments do not add up to totals due to rounding.

Note: Bureau Veritas was engaged by Eli Lilly and Company to provide limited assurance in relation to specified 2023 environmental performance data presented.

Total waste includes all waste generated from Lilly facilities, routine waste and non-routine waste. Non-routine waste is defined in footnote 2.
Waste goals exclude waste from the following categories: non-routine construction and demolition debris (e.g., building construction or demolition); uncontaminated soil, rock, concrete, bricks, etc., used for clean fill; waste generated as a result of remediation of surface or underground areas (e.g., soil, rock, water and personal protective equipment); vegetation (e.g., landscaping debris), wastewater that is conveyed offsite through piping (i.e., not shipped offsite in container or tanker) for treatment or discharge; and biosolids or other residue from wastewater or stormwater collection and treatment.
For the purpose of our landfill goal, “zero landfill” is defined as elimination, reuse, incineration, reclamation or recycling to the point that routine waste as generated will no longer be placed in a landfill. A site may achieve “zero landfill” status if less than 0.5% of its generated routine waste is sent directly to landfill. Lilly will meet “zero landfill” status if less than 0.5% of Lilly’s routine waste as generated is sent directly to landfill.