Waste

Baxter has recognized waste generation as a significant environmental aspect of its operations since it established its first waste reduction goals in 1996. Early waste reduction efforts focused on decreasing potential risk and liability. Since the early 2000s, the company’s efforts in this area have also been motivated by potential financial gains and process efficiency.

Baxter performs detailed tracking and analysis of reported waste data from each major facility. This enables the company to assess progress toward waste-reduction goals and identify opportunities to improve the efficiency of processes that generate waste. These activities help to reduce expenses related to raw materials, waste handling and disposal. Waste minimization also decreases environmental impacts associated with waste disposal and recycling.

Baxter sites generate different types of waste. The company’s total waste goals, which combine non-hazardous and regulated waste, encourage each site to focus on the most relevant type of waste in its own operations. When Baxter defined its 2015 waste goal, it evaluated the company’s slower-than-anticipated progress against its 2010 goal. Based on this analysis, Baxter elected to extend the target year of its goal to reduce total waste by 30% indexed to revenue from 2010 to 2015, compared to 2005. The company views the 2015 goal to be aggressive, challenging and consistent with Baxter’s manufacturing strategy and long-term plans.

Total Waste Performance

During 2010, Baxter's operations generated 59,3701¹ metric tons of total waste, up from 57,150 metric tons in 2005. This represents a 4% increase in absolute terms and a 20% decrease indexed to revenue. This performance fell short of the 2010 goal by 10%.

To more closely reflect production efficiency, Baxter excludes certain non-routine, non production-related waste streams from its waste performance total and progress against its 2010 and 2015 waste goals. The company reports these waste streams separately as shown in the following table, which allows for more consistent evaluation of facility performance and trends over time.

Non-production Waste Streams Not Included in Total Waste Performance (metric tons)
	2008			2009			2010
	Regulated	Non- Hazardous	Total	Regulated	Non- Hazardous	Total	Regulated	Non- Hazardous	Total
Construction and Demolition Debris	0	1,500	1,500	0	900	900	0	6,100	6,100
Remediation Waste	1,120	0	1,120	0	0	0	10	0	10
Wastewater Treatment Sludge	20	1,100	1,120	20	1,300	1,320	10	1,400	1,410
Total	1,140	2,600	3,740	20	2,220	2,220	20	7,500	7,520

Construction and demolition debris waste increased in 2010 compared to 2009 primarily due to several large expansion projects. The data also reflect improvements in the tracking and reporting of these waste streams.

Baxter’s environmental management system focuses on waste generation, and the company continues working to reduce waste overall. Baxter identifies its leading opportunities to decrease waste based on factors that include the highest volume waste streams across the company, facilities that produce the most waste, and sites with particularly strong potential to improve.

Non-hazardous Waste Performance

During 2010, Baxter's operations generated 54,000 metric tons of non-hazardous waste, 2% more than in 2005 in absolute terms and a 22% decrease indexed to revenue.

The use of new methodologies and management tools, such as Lean and Six Sigma, helped reduce non-hazardous waste at several facilities during the year. For example:

Other facilities have reduced waste by focusing on manufacturing efficiency and decreasing scrap. Baxter’s Lessines, Belgium; Castlebar, Ireland; and Woodlands, Singapore, facilities implemented such efforts, reducing manufacturing waste by a combined 340 metric tons.

Several facilities implemented projects focused on reducing packaging waste. Baxter’s Toongabbie, Australia; Cali, Colombia; Waluj, India, Tokyo, Japan, and Atlacomulco, Mexico facilities decreased cardboard waste by a total of 130 metric tons.

Plastic scrap continues to be Baxter’s largest waste stream, generating roughly one-third of the company’s non-hazardous waste. Baxter’s Corporate Environmental Engineering group is working to identify opportunities to reduce plastic waste generation at the source through a systematic approach that emphasizes continual improvement and draws on Lean and Six Sigma tools.

Off-site Recycling of Select Waste Streams
	Amount Recycled (metric tons)					Proceeds from Recycling (dollars in thousands)
Item	2006	2007	2008	2009	2010	2006	2007	2008	2009	2010
Plastics	16,700	17,500	18,500	17,800	17,500	$5,496	$5,523	$6,974	$5,213	$6,871
Corrugated	6,600	6,700	6,900	6,800	6,200	25	100	173	82	183
Finished Product Discards	4,700	2,900	5,300	5,800	4,800	(556)	(648)	(929)	(1,041)	(707)
Pallets	2,100	1,700	1,900	1,300	1,200	26	55	41	27	59
All Paper	1,400	1,500	1,800	1,600	1,700	(80)	(83)	(117)	(165)	(72)
Metal	800	900	800	1,200	1,100	149	186	142	123	305
Glass	500	600	700	800	700	(9)	(14)	(23)	(16)	(9)
Electrical Equipment	90	90	90	100	100	(35)	(30)	(16)	(33)	(23)
Waste Oil and Fuel	20	20	20	10	70	(10)	(11)	(15)	(9)	(14)
Other Recycled Non-Hazardous Waste*	1,610	2,000	1,400	1,600	4,700	(294)	(231)	(251)	(303)	(136)
Recycled Regulated Waste Streams**	330	510	890	630	1,010	(335)	(431)	(385)	(314)	(511)
Total	34,850	34,420	38,300	37,640	39,080	$4,375	$4,416	$5,594	$3,565	$5,945
Percent of Total Waste Recycled	58%	56%	61%	61%	66%	n/a	n/a	n/a	n/a	n/a

*	"Other" includes all other recycled non-hazardous waste streams such as ink cartridges, protein paste waste, Styrofoam and drums.
**	Regulated waste streams sent for recycling including batteries, chemicals and solvents, and electronic equipment.

Of the 54,000 metric tons of non-hazardous waste generated in 2010, Baxter recycled approximately 38,000 metric tons, or 70%. Baxter also recycled 1,080 metric tons of regulated waste in 2010, for an overall recycling rate of 66%. The increased rate, compared to 61% in 2009, is partly due to changes in how Baxter facilities report waste recycling and disposal. With the implementation of a new environmental, health and safety (EHS) information management system in 2010, Baxter facilities can indicate if a waste stream is incinerated or incinerated with energy recovery, of which the latter is considered recycling.

Recycling activities at Baxter generated approximately $5.9 million of revenue in 2010. Although some recycled waste streams do not generate revenue, even in those cases, recycling typically costs less than disposal. Recycling revenue increased by 67% compared to 2009, due to higher demand for recycled plastic and metal in 2010 associated with the ongoing global economic recovery.

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 most 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. Regulated waste represented about 9% of the waste Baxter generated in 2010.

Baxter's global operations generated 5,370 metric tons of regulated waste in 2010, 29% more than in 2005 in absolute terms and a 1% decrease indexed to revenue. Baxter reduced regulated waste by 15% on an absolute basis compared to 2009. This is principally due to decreased production volumes in Baxter’s BioScience business unit, which generates blood-derived plasma protein waste and other associated biological wastes.

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. However, Baxter is exploring opportunities for more sustainable waste management practices for plasma protein waste. 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.