From the Chairman and CEO

Robert L. Parkinson, Jr.
Chairman and Chief Executive Officer

Dear Stakeholders,

Baxter’s aspirations as a healthcare company are tightly interwoven with our sustainability priorities. Just as our mission is to save and sustain lives, we are committed to helping our many global stakeholders thrive by creating lasting social, environmental and economic value in how we do business.

Baxter serves a broad array of constituencies: patients and healthcare professionals; governments and payors; investors; employees; and the communities where we do business. Our goal is to operate responsibly and effectively in service to all these groups as we advance the frontiers of patient health and increase the availability of our products globally. This supports our own sustainability as an enterprise and our ability to deliver on our priorities for years to come.

Sustainability encompasses virtually every aspect of how we do business, influencing our standards of ethics and compliance, our efforts to drive a sustainable supply chain, and our emphasis on maintaining an inclusive culture where our diverse employee population can pursue meaningful work and rewarding careers.

In the current economic and healthcare climate, where governments are challenged to accomplish more with strained resources, one of Baxter’s most critical objectives is exploring new ways to expand access to quality care. Our efforts have led to a number of innovative public-private partnerships designed to help governments control costs while increasing patient access and improving health outcomes. In 2012 Baxter initiated many such partnerships, including a collaboration in Brazil that will meaningfully increase the availability of recombinant therapy for hemophilia patients while also creating local economic opportunity; and new alliances in China and Thailand that will bring dialysis therapy to more end-stage renal disease patients.

We also continue to integrate sustainability considerations across our operations and throughout the life cycle of our products. This includes reducing our carbon footprint at facilities worldwide through recent measures such as our use of biomass energy in India; the installation of energy cogeneration and trigeneration units in Ireland, Belgium, Spain and Australia; and the installation in Malta of Baxter’s largest solar photovoltaic system to date. Thanks to fresh thinking like this, I am pleased to report that our 2015 goal of using 20% renewable power in our facilities has been achieved – in fact, exceeded – three years early, and we have no intention of slowing down.

Our sustainability goals must continually reflect our business strategies in light of new opportunities, challenges and stakeholder needs in a changing world. In 2007 our executive Sustainability Steering Committee outlined a range of priorities to accomplish by 2015. We are now in the process of establishing our priorities for 2020, making sure our ongoing focus is in line with our ability to achieve the greatest impact.

I want to thank the many Baxter employees worldwide whose leadership and ingenuity are fostering today’s successes, and whose passion will spark continued progress. Thanks as well to the many stakeholders whose needs and priorities point the way to future innovation.

Robert L. Parkinson, Jr.
Chairman and Chief Executive Officer
July 2013