Strong population growth in many regions combined with rapid economic development in countries worldwide place enormous strain on materials, energy and water. Baxter works to use these limited resources wisely to improve the company’s environmental performance while also enhancing its bottom line.

In 2010, Baxter generated 59,370 metric tons of waste (including 54,000 metric tons non-hazardous and 5,370 metric tons regulated), a reduction of 20% compared to 2005, indexed to revenue.

The company initiated a formal program in 2010 to reduce plastic waste, Baxter’s largest waste stream. Initial activities included analyzing existing data, defining a project team and establishing project metrics. See more detail.

Baxter’s primary energy sources are electricity to power manufacturing equipment, lighting and critical systems, and fuels to generate steam for water purification and sterilization. In 2010, the company used 8,875 trillion joules of energy, 20% less than in 2005, indexed to revenue.

Baxter’s main focus is increasing energy efficiency in its manufacturing operations. The company uses a “Lean” energy program to drive enhancements throughout Baxter. The company’s global energy management initiatives have resulted in total savings of approximately $31 million since 2005, including $500,000 in 2010.

Baxter also applies innovative energy-saving technologies. In 2010, the company launched a new cogeneration unit at its Castlebar, Ireland, facility. The 3 megawatt unit uses natural gas reciprocating engines to generate electricity, hot water and steam. These units are typically 30 percent more energy efficient than traditional generators. See more detail.

In its packaging, Baxter works to minimize materials use and select materials with decreased environmental impact. The company focuses packaging innovation on its high-volume products. Since the base year of 2007, Baxter has implemented projects that have reduced the amount of packaging sent to customers by 3,500 metric tons, including 247 metric tons in 2010. For example, in 2010, the company’s Cuernavaca, Mexico, facility completed a project begun in 2008 to modify the shipping cartons and increase the packaging efficiency for several product lines. This initiative has reduced packaging by approximately 1,600 metrics tons cumulatively during the last three years. As a result of companywide initiatives, Baxter has achieved 70% of its 2015 packaging goal. See more detail.

Baxter’s main use of water is for manufacturing-related processes such as cooling towers, sterilizers and steam boilers. In 2010, the company used 13.4 million cubic meters of water, 31% less than in 2005, indexed to revenue.

The company’s overall water usage continues to decline, driven by water conservation projects such as the Singapore, Woodlands, facility, whose “Green Committee” implemented projects to optimize cleaning processes in 2010, saving 14,000 cubic meters of water during the year. Baxter identifies these types of opportunities through formal energy assessments, water value stream mapping, water balances, and facility-driven initiatives.

Using tools from the World Business Council for Sustainable Development (WBCSD), in 2009 Baxter mapped its water use at major sites globally against local water availability. While the WBCSD water tool has helped Baxter screen operations located in potentially water-scarce or -stressed areas, Baxter plans to conduct further analysis to understand the full water risk at each location. Based on this information, the company will develop a more comprehensive water risk management strategy, and set more rigorous water conservation goals. See more detail.

Results from the WBCSD water tool showed that of Baxter’s 40 largest water-consuming locations, representing 92% of the company’s total water use, 10 of those sites are located in water-scarce areas, eight in water-stressed areas and 22 in water-sufficient areas. The company is using that information during 2011 to prioritize possible locations in which to support community aquifer protection projects. See more detail.