Environmental Performance At-a-Glance

In 2010, Baxter concluded its final year of progress against its 2010 environmental goals, launched a new set of EHS goals for 2015 and continued working toward its 2015 sustainability goals. As the graph below indicates, Baxter met or exceeded its 2010 energy usage, greenhouse gas (GHG) emissions and water usage goals. Progress toward the total waste-reduction and environmental incidents-reduction goals slowed due to increased waste generation from Baxter's BioScience operations and wastewater exceedances at two locations in Europe.

Energy Usage

Baxter is two-thirds of the way to meeting its 2015 goal to reduce energy usage by 30% indexed to revenue, compared to 2005, achieving a 20% decrease through 2010. Progress toward this goal slowed in 2010 due to the implementation of a cogeneration system at the company's Castlebar, Ireland, facility that increased energy usage even while decreasing indirect and direct GHG emissions. Cogeneration systems elevate facility energy usage because fuel combustion losses associated with on-site electrical generation are attributed to the facility rather than the electrical utility. Not taking into account those losses, Baxter would have seen an approximate 0.4% reduction in energy usage globally compared to 2009 and indexed to revenue. Baxter will maintain an aggressive energy-management program, grounded in "Lean" energy standards that manufacturing facilities companywide continue to implement.

Greenhouse Gas Emissions

Baxter is 64% of the way to meeting its 2015 goal to reduce GHG emissions by 45% indexed to revenue, compared to 2005, achieving a 29% decrease through 2010. The company will drive continual performance improvement through ongoing programs and projects in energy conservation, installing cogeneration systems at select locations, sourcing renewable energy and purchasing emissions credits and offsets.

Total Waste

Baxter is on track to meet its 2015 goal to reduce total waste by 30% indexed to revenue, compared to 2005, achieving a 20% decrease through 2010. The company has renewed its efforts and dedicated additional resources to reduce plastics waste, and continues to implement facility-based initiatives.

Water Usage

Baxter is close to achieving its 2015 goal to reduce water usage by 35% indexed to revenue, compared to 2005, realizing a 31% decrease through 2010. Baxter attributes this to senior management focus on and accountability for reducing facility water usage, insights gained by conducting water balances and creating value stream maps, and heightened attention on water during energy assessments.

Environmental Incidents

Unfortunately, Baxter did not achieve its 2010 goal to reduce environmental compliance incidents by 50% compared to 2005, as incidents increased 71% during that period. Most of the performance slip was driven by two facilities, Lessines, Belgium, and Sabiñanigo, Spain, that experienced ongoing compliance issues related to slightly elevated wastewater discharge readings for temperature and flow, respectively. While Baxter did not meet its target, the company used these incidents to increase awareness and emphasis on environmental compliance during that period, and has a goal to reduce environmental compliance incidents by 75% by 2015.

Environmental Financial Statement

The following table describes environmental income, savings and cost avoidance realized in 2010 from activities completed during the year, along with environmental program costs.

Environmental Income, Savings and Cost Avoidance, 2010 (Dollars in Millions)
Energy Use	$(1.5)
Total Waste Generation	6.7
Recycling Income	5.9
Water Use	0.4
Total Environmental Income, Savings and Cost Avoidance	$11.5

Environmental Program Costs, 2010 (Dollars in Millions)
Basic Program Costs	$18.7
Remediation, Waste and Other Response Costs	9.7
Total Environmental Program Costs	$28.4