# Perspectives **on the Development of**

**Sustainability Metrics**  **U.S. EP A**  **NACEPT Meeting**  **Wa shington,**  **D.C. August 2, 2012** 
**Ronald E. Meissen, Ph.D., P .E.**  **Sr . Director Sustainability**  **Corporate Env ironment,**  **Health and Safety Baxter Healthcare**  **Corporation**

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– Reserved for Baxter Use Only 1

# Leading Supplier of Healthcare Products

– 

# 201 1 Global Sales $US 14 Billion

– 48,000 employees

– Over 60 manufacturing facilities in 27 countries

– Presence/ sales in more than 100 countries
**Baxter ’s**  **Principal Global Manufacturing Facilities** 

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# Leading Supplier of Healthcare Produ**cts**

# Community **Customers**

**Business partners**  **Regulators Te**  **am Members Investors** 

**Pa tients**  **Suppliers** 

# Stakeholders **Sustainability Expectations Increasing ....** 

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# Driving/ Integrating **Sustainability Executive Sustainability**  **Steering Committee**
Proposed in June 2005 and launched in late 2006 - executives from multiple business functions Ta sked with setting companywide strategy and goals (beyond reporting) to support achieving defined long - term sustainability priorities Report back to Bob Parkinson, Baxter CEO
– and his team 

# Bob Parkinson Baxter CEO
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# Sustainability **Steering Committee Executive** **- level M** **embers** Executive Sponsor: Executive V.P. Global Manufacturing Chair: VP

, Environment, Health, Safety and Sustainability Members: Biotherapeutics Global Franchise Head

President, Medical Products (U.S.) VP , Ethics and Compliance (Legal) VP , Finance (Manufacturing & Supply Chain) VP , Manufacturing VP , Ta lent Acquisition (HR) VP , Te chnology Resources (R&D) VP , Global Supply Chain VP , Corporate Communication

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# 7 EHS - Internal use only 

# Baxter **’s S**  **ustainability Priorities and Goals**  Baxter ’snine priorities reflect issues of key concern to Baxter and its stakeholders. Long - term goals for each priority demonstrate the company’ s commitment, motivate continual improvement and help stakeholders assess performance
.

# Baxter Will **Drive a Sustainable Supply Chain**

By 2015 incorporate sustainable principals into Baxter ’spurchasing program with select (largest) 100 suppliers By 2015 reduce Baxter ’sU.S. car fleet greenhouse gas emissions per kilometer 20% from 2007 baseline

# Sustainable Supply Chain Program

**Baxter Supply** 

**C hain**  **- 20 Sustainability**  **Criteria**

**Reductions in Carbon Footprint**  **7) Has a Program & Goal**  **to Reduce Greenhouse Gas (GHG)**  **Emissions 8) Use of Renew**  **able Energy**  **[Solar, Wind,**  **Renew able**  **Energy Certificates**  **(RECs)]** 

## Protection **of Human Rights 5)**  **Has ethical & legal**  **employ ment practices**  **assuring compliance**  **wi th**  **all applicable**  **employ ment laws**  **impacting employ** **ees & suppliers 6) Has goal & programs to prevent & reduce work**  **** **related employ** **ee injuries & illnesses**  

## Reductions **in Natural Resource use**  **9) Has a Goal & Programs to Reduce Energy**  **Use 10) Has a Goal**  **& Programs to Reduce Packaging Material 11) Has a Goal**  **& Programs to Reduce Waste Generation 12) Has a Goal**  **& Programs to Reduce Water Use**  

## Environmental **/ Sustainability Program**  **1) Company**  **has an Environmental/Sustainability Policy**  **2) Use of ISO**  **14001, EMA S**  **(EU), or other Environmental**  **Standard or official certificate**  **3) US EPA** 

**S martWay** 

**Transport Partner (or equivalent)**  **4) Measures & Reports Environmental Information**  

## Enhanced **Product Stew ardship**  **13 ) Uses a Product Stewardship**  **/ Lifecy cle A** **pproach to**  **reduce the environmental impacts**  **of its product(s)**  **14) Electronic Products RoHS (restriction**  **of hazardous substances) Compliant**  **15) EU Battery**

**Directive Compliant 16) Products REA** **CH Compliant**  **17) Packaging void of Heavy Metals**  **18) Use of Forest Stewardship Council (FSC) Products**  **19) Provides a Product Reuse / Recycling Program 20) Provides a Product Take**  **- back Program of products /**  **packaging**

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# 201 **1 Results: Sustainable Supply Chain Program**

***** 2009 Results modified to include Suppliers responding positively to programs in progress /under development Suppliers considered green in a category if it responds positively to 90% of the questions in that category “Positively” defined by answering yes or in progress / under development 6/4/2013 Global Purchasing & Supplier Management 10 **36%**

**96%**

**60%**

**63%**

**46%**

# Example: 201 **1 Survey Results for one Supplier**

**Environmental / Sustainability Program**  1 Company has an Environm ental/Sustainability P olicy 2 Use of ISO 14001, EMAS (EU), or other Environmental Standard or official certificate 3 US EPA SmartW ay T ransport Partner (or equivalent) 4 Measures & Reports Environmental Information **Protection of Human Rights**  5 Has ethical & legal employme nt practices 6 Has goal & programs to prevent & reduce work - related employee injuries & illnesses **Reductions in Carbon Footprint**  7 Has a Program & Goal to Reduce GHG Emission 8 Use of Renewable Energy (Solar, W ind, RECs) **Reduction in Natural Resource use**  9 Has a Goal & Activities to Reduce Energy Use 10 Has a Goal & Activities to Reduce Packaging Material 11 Has a Goal & Activities to Reduce W aste Generation 12 Has a Goal & Activities to Reduce W ater Use **Enhanced Product Stewardship**  13 Uses a Product Stewardship / Lifecycle Approach 14 Electronic Products RoHS Compliant (hazardous substances) 15 EU Battery

D irective Compliant 16 Products REACH Compliant 18 Packaging void of Heavy M etals 18 Use of Forest Stewardship Council (FSC) Products 19 Provides a Product Reuse / Recycling Program 20 Provides a Product Take - back Program of products / packaging 1 Completed (Yes) 2 Under Development 3 Not Complete (No) 4 Not Applicable 6/4/2013 11

# Sustainability **Report**

**Sustainability at Baxter**  **2010 Sustainability**  **Priorities Highlights**  

# Report on Baxter ’sWe bsite

• Presents comprehensive sustainability- related material

• Baxter Sustainability Report issued annually beginning with report year 1999

• Annual Environmental or Environmental, Health and Safety Reports issued for report years 1993 - 1998 **Co Report**

# Baxter **– Sustainability**  **Recognition**

Baxter is recognized by or associated with many organizations or programs, including:

6/4/2013 13 Newsweek 2011 Green Rankings Logo, ©2011 Newsweek/The Daily Beast Company LLC. Used by permission and protected by the Copyright Laws of the United States. For more information, visit www.newsweek.com/green.