Feedback on 2005 Report
Continual improvement is a fundamental aspect of the Baxter sustainability reporting process. To ensure it delivers stakeholders the most relevant and comprehensive information, Baxter has solicited feedback on its 2005 Sustainability Report from numerous experts in the field, including SustainAbility, a strategy consultant/think tank, and the U.S.-based environmental organization, Ceres, and its select coalition members1. These organizations cited several areas of strength, including the following:
- Chairman and CEO letter is forward looking, inspirational in tone and provides a sense of the CEO’s personal motivation;
- Report balances breadth of information and data while remaining accessible to the reader;
- Report uses multiple versions (web, print, brochure) effectively;
- Summary Data Table is a useful addition to the report;
- Case study about engaging with stakeholders regarding PVC adds value; and
- Report quantifies business case for environmental programs.
Feedback also included numerous opportunities for improvement. The following table includes several of those comments and describes changes made to this report as a result.
| FEEDBACK | RESPONSE |
| Report is not transparent about political contributions or public policy positions and activity. | Added public policy content in Baxter’s Approach, GHG Emissions and Climate Change, and Access to Healthcare. |
| Although the Supply Chain section is strong, it would be helpful to expand coverage of key issues as well as performance metrics and targets. | Expanded Supply Chain section, as well as related content on Product Transport and Packaging page in Product Responsibility. |
| Overall approach to auditing/assurance in report could be clearer. | Added paragraph describing approach to assurance in Sustainability Reporting. |
| Would be helpful to provide more detail about how Baxter’s values and standards are applied in practice. | Added case study that describes implementation of Ethics and Compliance program in Poland. |
| Report does not describe management systems for social investment and philanthropy, or discuss link of this area to core business performance. | Added description of Global Product Donation Policy and process in Product Donations section. |
| Report does not discuss how sustainable development is integrated into communication with investors. | Currently, communication with mainstream investors about sustainability issues is through press releases, selected investor presentations and related content in the company's Annual Report. |
1Ceres is the largest U.S.-based coalition of investors, environmentalists and other public interest groups working with global companies and investors to address sustainability challenges (www.ceres.org); Baxter has been a Ceres company since 1997. The Ceres stakeholder team designated to work with Baxter is an independent group of individuals drawn primarily from the Ceres coalition and represents a range of constituencies that have expertise in environmental, social and governance issues. In the review of Baxter's last report, the Ceres stakeholder team provided a diverse group of Baxter executives its extensive feedback on the company's overall sustainability performance and key impacts, and had a robust discussion about goals, targets, systems, data and initiatives. This feedback informed the preparation of this report.
