Baxter Summary

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Brief Description of Baxter:

Baxter International Inc. develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. As a global, diversified healthcare company, Baxter applies a unique combination of expertise in medical devices, pharmaceuticals and biotechnology to create products that advance patient care worldwide. These products are used by hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors’ offices, clinical and medical research laboratories, and by patients at home under physician supervision.

Baxter manufactures products in 26 countries and sells them in more than 100 countries, with approximately 60 percent of its sales coming from outside the United States. Baxter subsidiaries in approximately 40 countries employ their own sales forces, while sales in other countries are made through independent distributors or sales agents. In 2008, Baxter’s global sales totaled approximately $12.3 billion. At year-end 2008, Baxter employed approximately 48,500 people worldwide.
Visit Baxter's Web site for more information [1].

Baxter is a member of the Pew Center on Global Climate Change Business Environmental Leadership Council, a group of major companies that demonstrate leadership by establishing and meeting greenhouse gas emissions reduction targets; investing in more efficient products, practices and technologies; and supporting domestic and international action to achieve cost-effective emissions reductions. Read the guiding principles [2] of the Business Environmental Leadership Council.

Baxter's Greenhouse Gas Reduction Targets:

Reduce greenhouse gas emissions 45 percent indexed to revenue from 2005 baseline (by 2015).
Increase facility energy usage of renewable power to 20 percent of total (by 2015).
See the following link for all of Baxter’s sustainability priorities and goals: http://sustainability.baxter.com/sustainability_at_baxter/priorities_goals/index.html [3]

All Business Environmental Leadership Council Targets [4]

CEO:

Robert L. Parkinson, Jr.

What Baxter Has to Say About Climate Change:

“We strive to be leaders in all of our sustainability-related activities, whether it’s corporate giving, expanding access to healthcare, reducing our environmental impact or other areas.We are as committed to helping solve today’s global sustainability challenges as we are to developing better products and therapies for patients.”
Robert L. Parkinson, Jr., CEO and Chairman, Baxter

Energy Efficiency Initiatives

Success Stories Summary:

Austria - Baxter’s campus in Vienna used steam-vent condensers to recover steam venting from various plant processes, capturing 450 megawatt-hours of heat for internal use and saving a projected $42,000 per year in energy costs. The facility also began producing domestic hot water by using an air-to-water heat pump that decreased natural gas consumption and provided a cooler working environment in several rooms.
Brazil - Baxter’s site in São Paulo installed an innovative rooftop water evaporation system to cool the facility’s roof. The system uses relatively clean process wastewater that would otherwise be discharged to the wastewater collection system. This saves a projected $25,000 per year in energy required for internal building cooling and reuses 5,000 cubic meters of water annually.
United States – Baxter’s facility in Thousand Oaks, California installed new air compressor technology that uses water injection to maintain a low air temperature. This decreases energy consumption by 50 percent compared to alternative methods.
United States – Baxter’s Cherry Hill facility in New Jersey undertook multiple projects to improve boiler and steam-system efficiency, including controlling boiler air intake, optimizing boiler burner combustion control and upgrading steam economizers to maximize heat recovery.

Buildings summary:

Baxter is using green building design principles (such as Leadership in Energy and Environmental Design [5]) in the design and construction of many of its new buildings. The development of a company Green Building Policy is currently under consideration.

Internal Operations summary:

Baxter’s energy goals are: by 2010, reduce energy usage from operations 20 percent indexed to revenue and by 2015 reduce energy usage from operations 30 percent indexed to revenue. The goals are compared to 2005. Energy usage from operations includes the energy used by Baxter- managed and Baxter-operated facilities, and vehicles, such as sales and truck fleets.
From 2005 to 2008, energy consumption for Baxter operations increased 3 percent in absolute terms and sales increased 25 percent. During this same period, Baxter improved overall energy efficiency (energy usage index to revenue) by 18 percent. This puts the company on-track to meet its energy improvement goals.
Baxter’s corporate energy management group oversees the company’s global energy conservation activities and reports energy usage, cost and efficiency improvements quarterly to senior management.
Since 2005, Baxter has increased the number of annual facility energy reviews, expanded the use of a third-party utility invoice payment service, established and provided training on facility “Lean” energy standards and promoted best practices in energy management across the company. In addition, to encourage the implementation of energy efficiency projects, Baxter has lowered its internal rate of return for such projects.
In 2007, Baxter launched a “Lean” energy program for the 63 principal company manufacturing facilities. The program established four sets of energy standards – Pre-requisite, Bronze, Silver and Gold – to be phased in from 2007 to 2010. Each category defines 25 to 30 requirements a facility’s energy program should meet. In 2008, 17 locations met 100 percent of the Bronze-level requirements; several facilities are on target to achieve Silver and Gold status.
Energy efficiency gains achieved in 2008 are due to systematic implementation of energy conservation projects. About every three years, Baxter reviews the primary utility systems at each manufacturing facility and large office, covering steam generation and distribution; water usage; electricity distribution; compressed air consumption; lighting; and heating, ventilation and air conditioning (HVAC). Baxter’s compressed air, HVAC, chillers and lighting systems represent approximately 75 percent of Baxter’s total facility-related electricity consumption.
Baxter Facilities Engineering Services, with the support of the company’s Manufacturing Council, coordinates a biennial Global Energy Conference for Baxter facility energy managers. The most recent conference was held in autumn 2008 in San Jose, California. Approximately 120 Baxter energy managers, corporate staff, outside presenters and guests attended this conference, which included a special focus on renewable energy and alternative power generation.
In 2006, Facilities Engineering Services began providing quarterly updates to the Baxter Manufacturing Council on identified projects with acceptable return on investment.

Products & Services summary:

Baxter includes Product Stewardship Review (PSR) during the early stages of the product development process.
PSR is a two-step assessment of environmental, health and safety, and other sustainability-related impacts (including energy efficiency) of a product throughout its life cycle. An initial screen reveals high-level sustainability risks and opportunities at the product development concept phase, in areas such as regulations and customer and other stakeholder requirements. The second phase is a comprehensive review that identifies improvement opportunities across the product life cycle.

Supply Chain summary:

Baxter participates in the Environmental Protection Agency’s Green Supplier Network [6]. As part of this process, Baxter works to ensure its suppliers are able to minimize their environmental impact, including making improvements in energy efficiency.
Baxter’s participation in the process includes identifying opportunities for these suppliers to combine product transportation and use intermodal transportation.
Baxter is developing a global scorecard for suppliers. Building on existing scorecards that Baxter already uses at the plant level, this will include criteria related to supplier sustainability programs (including energy efficiency). The company is developing a standardized process to collect this information, which it will integrate into its overall procurement process.

belcbaxterlogo Baxter [7] is a member of the Business Environmental Leadership Council (BELC), the largest U.S.-based association of companies dedicated to business and policy solutions to climate change. Baxter is a global medical products and services company, which provides therapies for people with life-threatening conditions. The company’s products and services include bioscience (biopharmaceuticals, vaccines, bio-surgery and transfusion therapies), and medication delivery and renal therapy, and are used by health-care providers and their patients in more than 100 countries.

BELC Abstracts

Industrial Abstract: