Global climate change, caused by the increase of greenhouse gas (GHG) emissions in the atmosphere since the beginning of the industrial revolution, is the most pressing environmental issue of this generation. Responding successfully to this challenge will require all elements of society – individuals, businesses, cities, states and nations – to take meaningful and timely action.

Addressing global climate change and reducing GHG emissions is fundamental to Baxter’s commitment to sustainability. Key focus areas for the company include energy management, use of renewable energy and emissions trading. See additional aspects of Baxter's approach.

Energy Management

Baxter’s global energy management program is focused on minimizing company energy use and cost, which helps to reduce energy-related GHG emissions. See Management of Energy Use and Cost for more detail and examples.

One example of an energy management project that will reduce Baxter’s carbon intensity is the installation of a 3 megawatt cogeneration system approved in 2009 for Baxter’s Castlebar, Ireland, facility. This project will generate electricity and steam from natural gas, a lower carbon fuel than heavy fuel oil. Heavy fuel oil is currently used and until recently was the only fuel available at the facility.

Renewable Energy

Baxter increased facility energy usage of renewable power to 16 percent of total energy usage in 2008, compared to 15 percent in 2005. In 2008, the company installed solar energy systems in China, Portugal and Spain, and plans to identify more sites in 2009.

In 2008, the company also purchased 29,500 megawatt hours of certified renewable energy certificates in the United States (the 25th largest corporate purchaser in the United States as of January 2009).1 Baxter has achieved carbon neutrality by offsetting GHG emissions associated with on-site fuel consumption and electricity use at three sites globally, including Baxter’s corporate complex in Deerfield, Illinois, United States. In some cases, Baxter also has purchased renewable energy certificates to offset GHG emissions associated with product manufacturing and product delivery to customers. See Case Study: Carbon-Neutral Product Delivery in the United Kingdom for more detail.

Emissions Trading

Carbon cap-and-trade systems are emerging in various regions and countries in the world. These market-based systems can play an important role in facilitating the reduction of certain GHG emissions. Baxter participates in the Chicago Climate Exchange (CCX) and the European Union Emissions Trading Scheme. Baxter is monitoring the development of other carbon-trading systems worldwide, including in China and India

2015 GOALS

  • Reduce greenhouse gas emissions 45% indexed to revenue from 2005 baseline.
  • Increase facility energy usage of renewable power to 20% (of total).

“Baxter has shown leadership by reporting its greenhouse gas emissions and climate change strategies through the Carbon Disclosure Project since 2002 and through recognition in 2008 in the Carbon Disclosure Leadership Index, for its high-quality disclosure on climate change-related issues.”
Paul Dickinson
CEO, The Carbon Disclosure Project

>> Baxter’s 2008 GHG emissions from operations totaled 738,000 metric tons of carbon dioxide equivalent (CO 2 e), essentially flat from 2005 levels and a 21% reduction indexed to revenue. <<

1 According to the U.S. Environmental Protection Agency. See www.epa.gov/grnpower/toplists/fortune500.htm.