GHG Emissions from Operations
Bureau Veritas has provided assurance on the content on this pageGreenhouse gas (GHG) emissions related to Baxter’s operations are due to facility energy use, Baxter-operated sales, distribution and other business vehicles, and refrigerant losses.
The company's approach to managing and reducing GHG emissions from operations includes 18 program and reduction strategies. Program strategies describe broader aspects of Baxter’s approach such as developing an overall GHG reduction strategy, setting GHG emissions reduction goals, measuring and reporting progress, and others. These are complemented by specific approaches to reducing GHG emissions such as fuel switching and cogeneration, installation of onsite renewable energy systems, purchase of renewable power, participation in carbon trading systems, and development and leasing of green "high-performance" buildings.
Baxter is committed to reducing GHG emissions from operations 45% indexed to revenue by 2015 compared to 2005. From 2005 to 2011, Baxter decreased net GHG emissions from operations by 7% in absolute terms and 34% indexed to revenue. The company is on track to meet its goal.
Total net emissions from operations of 717,800 metric tons carbon dioxide equivalent (CO2e) in 2011 include a subtraction of the following:
- 59,200 metric tons CO2e due to purchased electricity generated from certified renewable energy in Austria, Spain, Switzerland, United Kingdom and the United States;
- 13,400 metric tons CO2e of carbon credits purchased prior to 2011 on the Chicago Climate Exchange (CCX, now IntercontinentalExchange) and applied in 2011; and
- 3,600 metric tons CO2e associated with carbon sequestration projects in Canada and Costa Rica.
The sum of 76,200 metric tons CO2e for these items is equivalent to 9.6% of total emissions from operations excluding offsets (794,000 metric tons CO2e) during 2011. This amount accounted for 6% of the company’s progress so far (34% reduction indexed to revenue, compared to 2005) toward its 2015 GHG reduction goal.
The following table describes the sources of GHG emissions from Baxter operations during 2011.
| GHG Emissions from Baxter Operations, 2011* | |||
|---|---|---|---|
| Metric Tons CO2e | Percent of Total | Primary GHG Reduction Focus | |
| Facility Purchased Electricity and Steam | 458,000 | 57.7% | Energy conservation |
| Facility Fossil Fuel Use | 254,000 | 32.0% | Energy conservation |
| Baxter Operated Sales, Distribution and Other Business Vehicles | 51,000 | 6.4% | Improved vehicle efficiency |
| Refrigerant Related Emissions | 31,000 | 3.9% | Switching to lower GHG potential refrigerants |
| Subtotal | 794,000 | 100% | |
| Purchase of Renewable Energy (Electricity) and Carbon Credits, and Support of Carbon Sequestration Projects | 76,200 | ||
| Net GHG Emissions | 717,800 | ||
| * | See the Biomass Fuel section below for detail about emissions from biomass-fired boilers at two Baxter locations. Since biomass is generated from a renewable energy resource, it is not included in Scope 1 GHG emissions or the table above. |
View more detail about Baxter's energy usage and GHG emissions.
Energy Management
Energy usage accounts for approximately 96% of Baxter's GHG emissions from operations. Therefore, energy conservation is core to Baxter's GHG emissions-reduction efforts. The company's primary energy source is electricity, which represents more than 57% of GHG emissions from operations (see table above).
Energy-related GHG-reduction activities include the use of innovative technologies such as low energy light emitting diode (LED) lighting, fuel switching (such as from fuel oil to natural gas, a lower carbon fuel), biomass-fueled boilers and cogeneration systems. For more detail on these and other activities, see the sections below and the Energy page.
Biomass-Fueled Boilers
In 2011, biomass fuels were used as input energy at two Baxter locations (Marion, North Carolina, United States, and Alathur, India) (see case study ). During the year, emissions from these biomass boiler operations equaled 172,000 metric tons CO2e. Following the Greenhouse Gas Protocol1, the company reports data for CO2 emissions from biologically sequestrated carbon (such as from burning biomass/biofuels) separately from its total emissions from operations (Scope 1 and 2). Per the protocol, Baxter does not include these emissions in measuring progress toward its 2015 GHG emissions reduction goal. See more detail in the table, Baxter's Energy Usage and Greenhouse Gas Emissions.
Cogeneration Systems
In 2011, Baxter’s Castlebar, Ireland, facility completed its first full year of operation with its new cogeneration equipment. At year-end 2011 Baxter’s Lessines, Belgium, facility started up a new cogeneration system as well. Both locations converted from using fuel oil as primary input energy for their boilers to natural gas, thereby reducing net GHG emissions from these sites by approximately 30%. Baxter also has a cogeneration system at its Spain manufacturing site.
Renewable Energy
Baxter is committed to increasing facility energy usage of renewable power to 20% (of total energy use) by 2015. In 2011, 19% of Baxter’s energy use for operations was from renewable energy sources. Of this amount, 8% was renewable energy associated with using biomass fuel for boilers at two Baxter locations – one in India and one in the United States. 11% was the renewable energy component of purchased electricity and renewable energy certificates (RECs). A small amount of Baxter’s renewable energy use for operations in 2011 was from onsite geothermal systems and a number of smaller onsite solar photovoltaic (PV) and solar hot water systems.
During 2011, Baxter purchased 153,700 megawatt hours (MWh) of electricity generated from 100% certified renewable power. This included 102,200 MWh for company operations in Europe (Austria, Spain, Switzerland, and the United Kingdom) and 51,500 MWh of certified renewable energy certificates (RECs) for U.S. operations. Baxter was recognized as the 29th largest corporate purchaser of renewable energy in the United States at year-end 2011.2
The following table summarizes the energy sources used to generate electricity for Baxter globally for 2007 and 2010. During that period, renewable energy sources increased from 22.5% to 28.2%.
Energy Sources Used to Generate Electricity Used by Baxter*
| Non-renewable Energy Sources | 2007 | 2010 |
|---|---|---|
| Coal | 31.8% | 28.9% |
| Natural Gas | 22.5% | 22.3% |
| Nuclear | 14.2% | 13.3% |
| Oil | 8.5% | 6.8% |
| Waste | 0.5% | 0.5% |
| Subtotal | 77.5% | 71.8% |
| Renewable Energy Sources | ||
| Biomass | 1.5% | 2.4% |
| Geothermal | 0.5% | 0.5% |
| Hydroelectric | 16.2% | 17.8% |
| Solar | 0.0% | 0.2% |
| Wind | 4.3% | 7.4% |
| Subtotal | 22.5% | 28.2% |
| Total | 100% | 100% |
| * | This information is based upon the most recent country data available from the International Energy Agency (IEA) and the additional renewable energy purchased by Baxter in specific countries in 2007 and 2010. Unlike Baxter’s 2015 renewable energy goal, this table does not take into account for onsite renewable energy systems. |
Baxter also has implemented several on-site renewable energy projects recently. The capacity of the company’s total on-site solar PV and solar hot water systems at year-end 2011 was estimated to be 1.2 MWh. The following are examples of Baxter renewable energy systems:
- 2011 – Baxter installed solar hot water or PV systems at its Orth, Austria; Vienna, Austria; São Paulo, Brazil and Cuernavaca, Mexico, facilities.
- 2010-2011 – Baxter installed geothermal systems at its locations in Orth, Austria, and Marsa, Malta. (Baxter had previously installed a geothermal system at its office in Munich, Germany about 15 years ago.)
- 2010 – Baxter installed solar PV systems at its Los Angeles, California, United States, and Aibonito, Puerto Rico, facilities.
- 2009 – Baxter began to lease its new European headquarters in Zurich, Switzerland, with a rooftop solar PV system.
- 2008 – Baxter installed solar PV systems at its Sintra, Portugal, and Valencia, Spain, offices and distribution facilities.
- 2002-2008 – Baxter piloted cleaner-burning biodiesel-fueled vehicles at facilities in Austria and Puerto Rico.
- 2000-2009 – Baxter installed rooftop solar systems at facilities in China, India, Malta, Puerto Rico and the United States (Illinois).
As world energy prices rise and carbon constraints intensify, Baxter will continue to adopt, where feasible, renewable energy and alternative lower-carbon fuels.
Green Buildings
High-performance green buildings provide many benefits that enhance employee productivity and reduce operating expense. Baxter has incorporated green building design principles and achieved or is working toward U.S. Green Building Council Leadership in Energy and Environmental Design (LEED) certification at several sites, including Baxter facilities in Vienna, Austria (achieved LEED Gold certification in 2011); Rome, Italy (achieved LEED Silver certification in 2011); and Mississauga, Canada (targeting LEED Gold certification in 2012). See Case Study: Employees and the Environment Benefit from New Vienna, Austria, Green Building and EHS Management Systems for a summary of Baxter Green Building Certifications.
Carbon Neutrality
Beginning in 2007, Baxter has used various means such as electricity generated from certified renewable energy, carbon credits and carbon offsets to achieve and maintain "carbon neutrality" at its headquarters in Deerfield, Illinois, United States, and its facility in Cartago, Costa Rica. In both cases, at a minimum, the company offsets facility-related emissions from purchased electricity as well as fuel combustion on site. Beginning in 2012, all purchased electricity used by Baxter operations in Illinois, United States, approximately 80,000 MWh per year, will be generated from 100% wind generated Green-e certified renewable energy.
Emissions Trading – Applying Market-based Solutions
Baxter has used a market-based approach (carbon cap-and-trade) to gain experience in the voluntary U.S. emissions trading market, to offset some of its GHG emissions, and to meet obligations for one facility that is subject to the European Union Emissions Trading Scheme. In 2003, Baxter was a founding member of the Chicago Climate Exchange (CCX, now IntercontinentalExchange), which was the world's first and North America's only carbon cap-and-trade system for all six greenhouse gases. Baxter participated in the CCX Phase 1 and Phase II programs (2003-2010).
Through its involvement in the CCX, Baxter was the first company to purchase soil-based carbon credits offered by Illinois farmers and landowners through the Illinois Conservation and Climate Initiative in 2007. Baxter was also the first company, in 2006, to transfer emissions credits between the European Union Emissions Trading Scheme and the CCX, demonstrating the potential of international carbon exchanges to form a unified global carbon market.
Public Policy – Advocating Solutions to Address Climate Change
Baxter issued a formal position on energy and climate change in October 2001. The company's position has underpinned its public policy activity on this issue over the last decade. Baxter’s advocacy on this issue has declined during recent years as the company's governmental affairs group has focused primarily on healthcare reform. See Public Policy for detail.
Affiliations
Baxter is involved in national and international organizations focused on climate change, such as Ceres, the Global Reporting Initiative, and the Center for Health and the Global Environment. The company has received various recognitions in this area.
| 1 | The Greenhouse Gas Protocol, Corporate Accounting and Reporting Standards (Corporate Standard) |
| 2 | U.S. Environmental Protection Agency Green Power Partnership Fortune 500 Partners List, January 5, 2012. |
