Greenhouse Gas Emissions and Climate Change
Climate change is the most pressing environmental challenge of this generation. Many of its effects are now evident and increasing in severity each year. The successful reduction of greenhouse gas emissions (GHG) will require all elements of society to take meaningful and timely action.
Multinational companies should demonstrate leadership by setting GHG emissions-reduction goals, implementing innovative emissions-reduction programs, and tracking and reporting progress. Reducing GHG emissions and taking action on climate change are core elements of Baxter's sustainability efforts. The company's multifaceted approach includes six principal strategies: energy management, goals-setting and performance measurement, pursuit of carbon neutrality for certain operations and products, emissions trading, renewable energy use and contributing to the public policy debate.
Click on each item in the graphic below to learn more.
Energy Management – Improving Energy Efficiency and Reducing Energy Costs and Associated GHG Emissions
Energy usage accounts for 99.9 percent of Baxter’s GHG emissions from operations, and nearly 61 percent of those emissions are associated with the use of electricity. Therefore, energy conservation is core to Baxter’s carbon footprint-reduction strategy. For more detail, see Management of Energy Use and Cost.
Following electricity-related emissions, fuel (natural gas, fuel oil and propane) used to support facility operations is Baxter’s second largest source of GHG emissions, and gasoline and diesel that power the company’s sales and distribution fleet (principally leased automobiles and trucks) is the third largest source. Other energy-related GHG-reduction activities include fuel switching, such as from fuel oil to natural gas, a lower carbon-emission fuel, as well as cogeneration, currently in use at select company locations in Spain and Turkey.
| GHG EMISSIONS FROM BAXTER OPERATIONS, 2008 | |||
| Metric Tons CO2e | Percent of Total | Primary GHG Reduction Focus | |
| Facility electricity use | 469,000 | 60.5% | Energy conservation |
| Facility fuel use | 257,000 | 33.2% | Energy conservation |
| Baxter Operated Vehicles | 48,000 | 6.2% | Improved vehicle efficiency |
| Process related emissions | 1,000 | 0.1% | Material/solvent substitution |
| Subtotal | 775,000 | 100% | |
| GHG emissions credits/offsets | 37,000 | ||
| Total | 738,000 | ||
Performance – Setting Goals and Achieving Results
In 2008 Baxter extended its commitment to reduce GHG emissions from operations from a 20 percent reduction by 2010 to a 45 percent reduction by 2015. Both are indexed to revenue and compared to 2005 and include offsets purchased.
From 2005 to 2008, Baxter decreased net GHG emissions from operations slightly on an absolute basis from 743,000 to 738,000 metric tons carbon dioxide equivalent (CO2e). This includes total offsets of 37,000 metric tons CO2 e for 2008 (4.8 percent of total emissions from operations). During this same period, the company reduced net GHG emissions indexed to revenue by 21 percent, meeting its original 2010 GHG emissions goal two years early and on target to meet its 2015 goal.
View more detail about Baxter's energy usage and GHG emissions.
Carbon Neutrality – Offsetting GHG Emissions
Emissions offsets can play an important role in addressing climate change. In the following cases, Baxter has offset GHG emissions related to operations, functions and products:
- 2008 – Beginning mid-year, Baxter delivered all products to customers in the United Kingdom on a “carbon neutral” basis.
- 2008 – Beginning in January, Baxter offset all GHG emissions (related to manufacturing, transportation and product disposition) for its Viaflo product for customers in the UK.
- 2007 – Beginning in October, Baxter’s Cartago, Costa Rica, manufacturing facility achieved carbon neutrality by offsetting its facility energy-related and vehicle fuel use GHG emissions with carbon offsets purchased through the Chicago Climate Exchange (CCX).
- 2007 – Baxter launched AVIVA, a non-PVC, non-DEHP, non-latex intravenous (IV) delivery container in the United States. The company offsets the electricity used to produce AVIVA containers through the purchase of 100 percent Green-e certified renewable energy (wind) certificates (RECs).
- 2007 – Baxter's corporate headquarters in Deerfield, Illinois, United States, became carbon neutral by purchasing Green-e certified renewable energy certificates (RECs) and offsetting fuel-related GHG emissions through the CCX. The RECs offset 100 percent of the facility's electricity usage, 18.6 million kWh in 2008.
- 2005 – Baxter's Sherbrooke, Canada, manufacturing facility achieved carbon neutrality in 2005 and renews this status annually by planting trees to offset the facility’s GHG emissions. An independent third party verifies these offsets.
Emissions Trading – Applying Market-Based Solutions
Baxter uses a market-based approach (carbon cap-and-trade) to gain experience in the voluntary U.S. emissions market, offset some of its GHG emissions, and meet obligations with company operations that are subject to the European Union (EU) Emissions Trading Scheme.
Baxter is a founding member of the Chicago Climate Exchange (CCX), 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 program (2003 -2006) and also is participating in Phase II (2007 -2010). Highlights of Baxter’s participation include:
- 2007 – Baxter was the first company to purchase soil-based carbon credits offered by Illinois farmers and landowners through the Illinois Conservation and Climate Initiative.
- 2006 – Baxter was the first company to transfer emissions credits between the EU Emissions Trading Scheme and the CCX, demonstrating international carbon exchanges could link to form one unified global carbon market
- 2003 – Baxter was one of 13 founding members of the CCX.
Baxter also is supporting the technical committee to form the India Climate Exchange (ICX), along with representatives of other manufacturing firms operating in India. The ICX is expected to begin operations in 2009 or 2010.
In addition, two Baxter manufacturing facilities in Europe are involved in the EU Emissions Trading Scheme, as required.
Renewable Energy – Supporting Sustainable Energy
Baxter has piloted several on-site renewable energy projects during the last few years. In addition, Baxter has purchased and contracted for renewable energy generated off-site for its operations. As world energy prices and carbon constraints increase, Baxter will continue to explore the use of renewable energy and alternative lower-carbon fuels. The following are examples of recent activities:
- 2009 – Baxter is installing a rooftop solar system at the company’s new European headquarters in Zurich, Switzerland.
- 2008 – Baxter installed solar photovoltaic systems at its Valencia, Spain, and Sintra, Portugal, offices and distribution facilities.
- 2007 – Baxter's Austria facilities entered into a three-year agreement (2007-2009) to obtain electricity generated from 100 percent certified renewable energy.
- 2002-2008 – Baxter facilities in Austria and Puerto Rico are piloting cleaner-burning biodiesel and natural-gas vehicles. Certain company facilities in the United States and India are exploring the use of biofuel boilers.
- 2000-2008 – Facilities in China, Malta, Puerto Rico and the United States (Illinois) have installed rooftop solar systems to pre-heat water for facility use and/or to generate electricity.
In 2008, Baxter purchased 29,500 megawatts of renewable electricity in the United States, principally generated by wind. This placed the company number 25 on the U.S. Environmental Protection Agency´s Fortune 500 Challenge List as of January 2009, which tracks green power purchases of eligible Fortune 500 companies.
Public Policy – Advocating Solutions to Address Climate Change
Baxter issued a formal position on energy and climate change in October 2001 that recognized support of the 1997 Kyoto Protocol as the first step in addressing climate change. The company’s position underpins its public policy activity on this issue at the national, state and local levels, including the following:
- National:
- In 2006, Baxter was one of five companies that presented recommendations for a national GHG emissions cap-and-trade scheme before the U.S. House of Representatives and Senate staff.
- In 2005, Baxter was one of four companies that testified before the U.S. House of Representatives Science Committee about the business case for managing energy use, reducing GHG emissions and addressing climate change.
- State – A Baxter representative served as one of three vice-chairs on the 2007 State of Illinois Climate Change Advisory Group. The State of Illinois issued its report and recommendations in 2008.
- Local – Baxter participated in Chicago Mayor Richard M. Daley's Chicago Climate Change Task Force, which issued the Chicago Climate Action Plan in 2008. Within this plan is the goal to reduce GHG emissions 80 percent below 1990 GHG emissions levels by 2050.
Affiliations and Recognition
Baxter is involved in numerous national and international organizations focused on climate change and has received various recognitions in this area.
