Greenhouse Gas Emissions and Climate Change
Climate change is the most pressing global environmental challenge of this generation, and a critical sustainability issue. Many effects of climate change are evident and increasing in severity. Reducing greenhouse gas (GHG) emissions requires nations, businesses and individuals to understand and resolve to address the issues.
Multinational companies can demonstrate leadership by setting GHG emission-reduction goals, implementing innovative emission-reduction programs, and tracking and reporting progress. Responding to climate change is a core element of Baxter's sustainability efforts. The company's multidimensional climate-change strategy encompasses the following activities:
Energy Conservation – Improving Energy Efficiency, Reducing Energy Costs
In 2006, Baxter developed an energy management strategy that includes the following elements: increasing the number of facility energy reviews, expanding the use of utility invoice payment services and promoting best practices across the company. Baxter has a wide range of projects to improve facility energy efficiency, and reduce associated GHG emissions and energy costs, including the following:
- Optimizing facility utility systems, such as heating, ventilation and air conditioning, and compressed air;
- Installing energy-efficient lighting systems, including replacing metal halide lamps and high-pressure sodium lamps, implementing improved control technologies, conducting lighting surveys and installing improved lighting reflectors;
- Improving motor efficiency by using intelligent controls for motors with varying loads; and
- Using an online-chiller monitoring system to optimize utilization and reduce operating costs.
Execution of identified energy-conservation projects has been a challenge for Baxter's energy-management program. In 2006, Baxter's Facilities Engineering Services instituted a tracking system to closely monitor these projects with the objective of completing them.
Performance Goals – Demonstrating Commitment and Motivating Continual Improvement
Baxter establishes annual company and facility-level energy goals, and tracks progress quarterly. Two of Baxter's new 2010 EHS goals focus on improving energy efficiency and reducing GHG emissions:
- Reduce energy usage 20 percent indexed to revenue.
- Reduce GHG emissions 20 percent indexed to revenue.
Baxter is on track to meet both of these goals (see Energy Usage and Cost Management and graphs below).
ENERGY USAGE AND GREENHOUSE GAS EMISSIONS
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Carbon Neutrality – Offsetting GHG Emissions
In several cases, Baxter has offset GHG emissions related to operations and functions.
- In early 2007, Baxter's corporate headquarters in Deerfield, Illinois, became carbon neutral by purchasing Green-e certified certificates equal to 15.5 million kilowatt hours of electricity, keeping more than 11,600 tons of CO2 out of the atmosphere annually. The certificates offset 100 percent of the facility's electricity. This effort places Baxter on the Environmental Protection Agency's Fortune 500 Challenge, which tracks the collective green power purchases of eligible Fortune 500 companies. In addition, the headquarters' fuel emissions were offset through the Chicago Climate Exchange.
- Baxter's July 2007 Global Environment, Health and Safety Conference, with approximately 250 participants, was a certified carbon-neutral event.
- Baxter's Sherbrooke, Canada, manufacturing facility achieved carbon neutrality in 2005 by planting trees to offset the facility's 2004 GHG emissions, as verified by an independent review, and plans to offset its emissions in the future as well. Other facilities worldwide are exploring this option.
Emissions Trading – Applying Market-Based Solutions
Baxter is one of 14 founding members of the Chicago Climate Exchange (CCX), the world's first and North America's only voluntary, legally binding rules-based GHG emissions reduction and trading system. Through CCX, Baxter has accomplished the following:
- Purchased first soil carbon credits (February 2007) – Baxter was the first company to purchase carbon credits offered by Illinois farmers and landowners through the Illinois Conservation and Climate Initiative.
- Supported founding of India Climate Exchange (December 2006) – Baxter will provide technical support as a founding member of this newly formed entity.
- Conducted first emissions trade between Europe and North America (May 2006) – Baxter was the first company to transfer emissions credits between accounts with the European Union Emissions Trading Scheme and the CCX.
Renewable Energy – Supporting Sustainable Alternatives
Baxter and its facilities have piloted renewable energy-based projects during the last few years. As the world moves toward carbon constraint, Baxter will be challenged to more aggressively explore alternative fuels.
Purchasing Renewable Energy Certificates. In early 2006, Baxter purchased 14,000 MWH of renewable energy certificates, representing 11,700 metric tons of CO2, to be delivered in the United States during the course of three years. This purchase offsets 100 percent of the GHG emissions associated with the electricity used to manufacture AVIVA, a medical product introduced in 2007. AVIVA carries the Green-e environmental label, which means it is manufactured with 100 percent renewable (wind-generated) electricity.
In 2006, Baxter's Vienna, Austria, facility entered into an agreement with an electrical company to provide 100 percent renewable power for all of Baxter's electricity used in operations in Austria for three years.
Solar Installations. Facilities in Illinois, Malta and Puerto Rico have installed rooftop solar systems to pre-heat water for facility use and/or to generate electiricity.
Alternative Fuels. Facilities in Austria and Puerto Rico have piloted cleaner-burning biodiesel and natural-gas vehicles for on-site use.
Public Policy – Advocating for Change
Baxter issued a formal position on energy and climate change in October 2001. The position recognizes the Kyoto Protocol as a first step in addressing climate change and serves as the foundation for the company's public policy activity regarding this issue at the national, state and local levels, including the following:
- National level:
- Baxter was one of five companies that presented in 2006 before the U.S. Congress on how a national GHG emissions cap-and-trade scheme would work.
- Baxter was one of four companies that testified in 2005 before the U.S. House of Representatives Science Committee about the business case for managing energy use and reducing GHG emissions.
- State level – A Baxter representative serves as one of three vice-chairs on Illinois Governor Rod R. Blagojevich's State of Illinois Climate Change Advisory Group.
- Local level – Baxter participates in Chicago Mayor Richard M. Daley's Chicago Climate Change Task Force.
Affiliations and Recognition
Baxter is involved in numerous national and international organizations focused on climate change, and has received various recognitions in this area.
