From the Chairman and CEO
Today, being a great company requires more than sustained financial success and technological innovation. It also requires a commitment to address pressing social and environmental concerns. The interdependence of these elements will only become greater in the years ahead. The challenge, of course, is to effectively balance society's current and future needs with the goals of the business. The companies that succeed in the 21st century will be those that can make this happen.
Making the business case for sustainability – that sustainability is good business – isn't a novel concept. For example, most companies have come to realize that eliminating waste or saving energy is good for their bottom line as well as the environment. Leadership in sustainability is also instrumental in attracting top talent in an increasingly competitive global marketplace. For Baxter, increasing access to healthcare around the world also expands the market for our products.
As a healthcare company, we already address some of the world's key sustainability challenges. Our products provide critical therapies for millions of people, saving and sustaining lives in more than 100 countries. Our work provides a heightened sense of purpose to what we do, which extends across the breadth of issues that define sustainability. Whether by producing breakthrough innovations to improve patient safety, responding to the critical healthcare needs of disaster victims, or protecting the health of the planet through environmental stewardship, virtually all we do is about saving and sustaining lives – a purpose that binds us as a company and as global citizens.
Sustainability Highlights
Baxter had a number of accomplishments in the area of sustainability during the past year that you can read about in this report. These include:
- Forming an executive-level Sustainability Steering Committee to embed sustainability more deeply into our business and guide our global sustainability efforts. In June 2007, the committee defined a set of sustainability priorities to help focus our resources where we can have the greatest impact. These priorities appear In Baxter's Approach.
- Continuing to work with health authorities around the world in the development and production of a candidate H5N1 vaccine to protect citizens in the event of an avian flu pandemic. We're also working with the World Health Organization on global pandemic planning, including donations of our candidate vaccine to an international stockpile for developing countries.
- Making our corporate headquarters in Deerfield, Illinois, a "carbon-neutral" facility. Our decision to offset 100 percent of the greenhouse gas emissions associated with electricity and natural gas use at our 105-acre complex with renewable, clean energy complements our many other efforts to address climate change. These range from improving energy efficiency in our operations to advocating progressive public policy at the local, state and national level.
- Making significant progress against our long-term environment, health and safety goals, including a 9 percent reduction in water usage and a 5 percent reduction in energy usage and greenhouse gas emissions per unit of sales.
- Earning a "Green-e" label – the first in the medical industry – for our new AVIVA intravenous solution container, the first product of its kind made with 100 percent certified renewable electricity.
- Exceeding $35 million in product donations, cash contributions and grants from Baxter and The Baxter International Foundation to increase access to healthcare, aid disaster victims and address other critical needs in communities worldwide.
Sustainability Challenges
Last year, I outlined some of the sustainability challenges we face in the healthcare industry. Ensuring patient safety, expanding access to care, improving product quality and supporting public health all remain areas of focus for Baxter globally.
Two new areas of focus are primarily U.S.-based. One is increasing our support of the U.S. educational system, particularly in the area of math and science. We already support education worldwide through programs and grants from The Baxter International Foundation and volunteer efforts by our employees and facilities. But I believe we can play a larger role in supporting math and science education given our place in the scientific community.
The other area of focus is U.S. healthcare reform. Baxter operates in more than 100 countries and has extensive exposure to the benefits and drawbacks associated with various healthcare systems around the world. As the United States looks to reform its healthcare system, we can provide a valuable perspective to policymakers as they search for a solution to the problem of an estimated 47 million people without health insurance in the world's most prosperous country.
Corporations today – particularly global corporations – have a greater role to play, and a greater responsibility, in ensuring a sustainable world. Sustainability and profitability are not mutually exclusive. On the contrary, they are closely intertwined and reinforcing. I'm proud of the achievements we have made so far, and look forward to reporting on future efforts in the years to come.
Robert L. Parkinson, Jr.
Chairman and Chief Executive Officer
July 2007
