Waste

Monitoring waste generation enables Baxter to assess progress toward waste-reduction goals and improve process efficiency, which helps to reduce expenses related to raw materials, waste handling and disposal. Waste minimization also decreases the environmental impacts associated with waste disposal and recycling.

Different Baxter sites generate different types of waste. The company’s total waste goal, which combines non-hazardous and regulated waste, encourages each site to focus on the most relevant type of waste in its own operations.

To more closely reflect production efficiency, this year Baxter removed certain non-routine, non production-related waste streams from its waste performance total (reflected in the bar graphs below) and will continue to report those separately as shown in the table below. Removing these waste categories from the company total allows for more consistent evaluation of facility performance and trends over time.

WASTE STREAMS NOT INCLUDED IN COMPANY TOTALS
	2006			2007			2008
	Metric Tons			Metric Tons			Metric Tons
	Non- Hazardous	Regu- lated	Total	Non- Hazardous	Regu- lated	Total	Non- Hazardous	Regu- lated	Total
Construction & Demolition Debris	1,577	2	1,580	1,921	2	1,923	1,481	2	1,483
Remediation Waste	0	0	0	0	0	0	0	1,118	1,118
Wastewater Treatment Sludge	2,217	13	2,229	1,996	93	2,089	1,122	16	1,138
Total	3,794	15	3,809	3,917	95	4,012	2,603	1,137	3,739

Total Waste Performance

While evaluating 2015 goals, Baxter elected to maintain the same waste goal from 2010. Baxter extended the target year of its goal to reduce total waste by 30 percent indexed to revenue from 2010 to 2015, compared to 2005.

During 2008, Baxter's operations generated 62,820¹ metric tons of total waste, up from 61,130 metric tons in 2007. This represents a 3 percent increase in absolute terms and an 11 percent decrease indexed to revenue, compared to 2005.

Baxter environmental management systems focus on waste generation, and the company continues working to reduce waste overall. Historically, Baxter’s challenges with meeting its waste-reduction targets have been attributed to disposal of expired product that customers return and increased generation of certain wastes at a few facilities. In 2009, Baxter is deploying a new information management system for its Environment, Health and Safety organization. This will facilitate more timely and consistent tracking of waste generation to better enable management to respond to unfavorable trends.

Non-Hazardous Waste Performance

During 2008, Baxter's operations generated 57,000 metric tons of non-hazardous waste, 2 percent more than in 2007 in absolute terms and a 13 percent decrease indexed to revenue, compared to 2005.

Fifty-one facilities reduced non-hazardous waste generation during 2008 compared to 2007 in absolute terms, while 64 increased generation.

Waste reduction efforts during 2008 focused on the largest production sites. The company’s Guayama, Puerto Rico, plant experienced significant waste increases in 2007 due to the following anesthesia gas manufacturing factors: wash waters associated with process optimization; waste generated by the cleaning of reactor vessels and other factors. In 2008, the facility reduced waste by more than 2,000 metric tons (66 percent) by implementing more efficient cleaning operations and improving the accuracy of its waste generation data.

Several facilities reported significant initiatives to manage and reduce waste generation using lean manufacturing and other techniques. For example, Baxter’s Marion, North Carolina, United States, facility decreased plastics waste by more than 125 metric tons and the company’s Cleveland, Mississippi, United States, and Alliston, Canada, facilities each decreased plastics waste by nearly 100 metric tons.

Plastic scrap continues to be Baxter’s largest waste stream, generating roughly one-third of the company’s non-hazardous waste. Baxter presented scrap and waste data at its internal plastics conference in 2008 to educate manufacturing engineers on the value of this raw material and to propose creating a team to share best practices and experiences in plastic scrap reduction.

OFF-SITE RECYCLING OF NON-HAZARDOUS WASTE
	AMOUNT RECYCLED (METRIC TONS)			PROCEEDS FROM RECYCLING (DOLLARS IN THOUSANDS)
Item	2006	2007	2008	2006	2007	2008
Plastics	16,650	17,529	18,536	$5,496	$5,523	$6,586
Corrugated Material	6,609	6,673	6,757	$23	$99	$135
Pallets	2,081	1,747	1,910	$26	$55	$41
All Paper	1,360	1,451	1,760	($80)	($83)	($117)
Metal	831	932	753	$149	$186	$142
Glass	474	602	680	($9)	($14)	($23)
Electrical Equipment	130	163	130	($50)	($66)	($40)
Waste Oil and Fuel	53	50	57	($32)	($28)	($28)
Other *	5,811	4,854	8,417	($69)	($38)	($26)
Total	34,000	34,000	39,000	$5,454	$5,634	$6,669
Percent of Total Waste Recycled	57%	56%	62%

* "Other" includes ink cartridges, protein paste waste, styrofoam, lamps/bulbs/tubes, scrap wood and drums.

Of the 57,000 metric tons of non-hazardous waste generated in 2008, Baxter recycled 39,000 metric tons. This equals 68 percent of non-hazardous waste or 62 percent of the 62,820 metric tons of total waste generated. The 2008 recycling rate increased from the 2007 rate of 56 percent, primarily due to the decrease in anesthesia gas-related waste that could not be recycled. In addition, the generation of alcohol-related waste from plasma processing operations increased significantly due to expanded production, augmenting the need for off-site recycling of that substance compared to prior years.

Recycling activities at Baxter generated nearly $6.7 million in revenue in 2008. Some recycled waste streams do not generate revenue, but even in those cases recycling typically costs less than disposal. Baxter expects recycling revenues to drop in 2009 due to the challenging macroeconomic environment.

Regulated Waste Performance

Baxter reports the category of “regulated waste” rather than “hazardous waste.” This allows the company to include a broader array of materials that would otherwise be classified as non-hazardous, which helps harmonize Baxter’s waste reporting across countries with varying waste regulations. In addition to wastes typically considered hazardous in almost all countries (such as toxics and corrosives), the company also includes oils, biohazardous or infectious materials, batteries, fluorescent lamps, asbestos and other materials that may not be defined as hazardous waste by national legislation at the point of origin. About 9 percent of the waste Baxter generated in 2008 fell into the regulated waste category.

In 2008, Baxter's global operations generated 5,820 metric tons of regulated waste, 13 percent more than in 2007 in absolute terms and a 12 percent increase indexed to revenue, compared to 2005. This increase was principally due to large production increases in Baxter’s BioScience business unit, which generates blood-derived plasma protein waste and other associated biological wastes.

Of the Baxter facilities that generate regulated waste, 48 increased absolute generation of regulated waste in 2008, mostly due to increases in production and overall expansion, and 52 decreased regulated waste. Most of these were due to ongoing incremental improvements to reduce chemical and oil-derived waste.

Over the years, Baxter has reduced regulated waste such as solvents to the point that many large company facilities no longer generate significant quantities. Plasma-based operations, including plasma processing plants, generate blood-derived wastes that present fewer opportunities for source reduction or reuse. These continue to be the most significant quantities of regulated waste generated.

¹ Non-hazardous waste is reported to the nearest 1,000 metric tons and regulated waste is reported to the nearest 10 metric tons. Due to regulatory requirements, facilities track regulated waste with greater precision than non-hazardous waste.