Feedback on 2009 Report
Continual improvement is a fundamental aspect of Baxter's sustainability reporting process. To ensure the company continues to deliver stakeholders the most relevant information, Baxter solicited feedback on its 2009 Sustainability Report from numerous experts:
- SustainAbility, a strategy consultant/think tank;
- Ceres, a national coalition of investors and public interest groups addressing sustainability, and its select coalition members with expertise in areas of focus for Baxter1; and
- Bureau Veritas, Baxter's verification body, for the EHS, Supply Chain, and Product Transport sections in particular.
These organizations cited several areas of strength from the 2009 report, including the following (paraphrased):
| General |
|---|
| The report is highly accessible, easy to navigate and very inviting. |
| On balance, Baxter's reporting of performance data is thorough. The summary data table is a cohesive snapshot of Baxter's 2009 performance and the online data index is an excellent resource for more specific data points. |
| Sustainability Priorities and Goals |
| Baxter's nine sustainability priorities are balanced across the company's impacts and comprehensive in scope, giving readers a clear sense of Baxter's ambition and approach. |
| Each of Baxter's sustainability priorities is supported by forward-looking goal(s), demonstrating seriousness of intent and providing a sense for the future direction for the company. |
| The introduction to each priority update briefly explains how that priority relates to Baxter's business, supporting the company's business case for sustainability. |
| Governance, Ethics and Compliance |
| Baxter clearly explains its policies and management structures for ethics and compliance. |
| Employees |
| Tying executive goals to inclusion and diversity is an effective way to drive progress in these areas throughout the organization. |
| Environment, Health and Safety |
| The trend analysis within the Environment, Health and Safety performance section is useful. |
| Baxter's Environmental Financial Statement remains a leadership example that sets the company apart from its peers. |
| The description of Baxter's health and safety program and initiatives is broad in scope while also providing specific details. |
| The company provides a useful point of comparison between its occupational injury and illness performance and the average rates for several related industries. |
| It was appreciated that Baxter noted the death of a contractor despite the fact that the individual died of natural causes. |
| Public Policy |
| Baxter's disclosure of political contributions and description of areas of policy engagement are commendable, well organized and accessible. |
Feedback also included numerous opportunities for improvement. The following table summarizes several of those comments and describes changes made to this report.
| Feedback | Enhancements to Baxter 2010 Sustainability Report |
|---|---|
| General | |
| Streamline the print report and ensure consistency across reporting media. | This year, Baxter created a 12-page smaller format brochure highlighting progress against the company's nine sustainability priorities, instead of a full-sized 24-page document as in recent years. |
| Increase use of graphs and tables, particularly in the online report, to highlight year-on-year performance and progress towards stated goals and targets. | The updated website includes several dozen performance graphs and tables, as well as interactive graphics illustrating the company's sustainability priorities and goals, issues across the product life cycle, and Baxter's Environmental, Health and Safety 2010 and 2015 goals. |
| In the CEO letter, provide high-level commentary on and interpretation of Baxter's performance. | These elements are included in the current Chairman and CEO Letter. |
| Make the option to provide stakeholder feedback more prominent in the sustainability report. | The redesigned website includes graphical links to take the Baxter 2010 Sustainability Report Survey in each section of the report along with other content promotions, as well as a permanent reference in the Quick Links section. |
| Improve the accessibility of past reports – specifically the full, online version – to allow stakeholders to compare details of reporting and/or performance over time. | This year, Baxter produced a whitepaper style PDF of the entire contents of the website report, also available by section. This will be available in future years to provide readers easier access to historical information. |
| Employees | |
| Describe more about career progression for female employees. | The Global Inclusion and Diversity section outlines steps the company has taken to increase gender and ethnic diversity at the executive level. |
| Provide greater specificity on inclusion and diversity programs and initiatives. | The expanded Global Inclusion and Diversity section includes information about inclusion and diversity goals in Baxter's senior executives' annual performance plans; inclusion plans that cover each business, region and function; and the development and roll-out of a mandatory inclusion awareness course for all employees. |
| Environment, Health and Safety | |
| Describe if employees or managers have financial incentives to reach EHS goals. | The Health and Safety section states that accident and injury rates factor into senior managers' annual performance management objectives and impact their compensation. |
| Clarify how Baxter's 2010 EHS goals align with and support the company's 2015 sustainability health and safety goals. | Baxter added an interactive graphic that details the company's 2010 and 2015 EHS goals and shows the connection to Baxter's EHS-related 2015 sustainability goals. |
| Product Responsibility / Supply Chain | |
| Enhance disclosure about performance results and lessons learned related to Baxter's product stewardship and green procurement initiatives, as those efforts move beyond their initial pilot or start-up phases. | The report provides examples from 2010 related to life cycle assessments of Baxter products, as well as a second year of results for Baxter's Annual Supplier Sustainability Survey. |
| Public Policy | |
| Broaden the discussion on access to healthcare to also include the challenges of providing healthcare in a cost-constrained environment, especially with the implementation of healthcare reform legislation in the United States bringing tens of millions of people into the system. | The Public Policy section focuses on healthcare reform and Baxter's efforts to enhance access to healthcare through a range of policy engagement and related activities worldwide. |
Baxter also received feedback on the company's 2009 Sustainability Report from more than 50 readers through its Sustainability Survey. These comments were considered in the preparation of this report.
Input on 2010 Report
Ceres and its coalition members also provided Baxter input during the content development process of this report. Their review and comments focused on detailed outlines of progress made for each of the company's nine sustainability priorities. Baxter welcomed the opportunity to hear and consider input on report content while still in a position to act on it.
| 1 | Ceres leads a national coalition of investors, environmental organizations and other public interest groups working with companies to address sustainability challenges such as global climate change and water scarcity. Baxter is a member of the Ceres network of companies, which means that Baxter has committed to work with Ceres on various aspects of its sustainability performance and disclosure. Being a Ceres company is not a certification or stamp of approval relating to the company's business. The Ceres stakeholder team designated to work with Baxter is an independent group of individuals drawn primarily from the Ceres coalition and represents a range of constituencies that have expertise in environmental, social and governance issues. In the review of Baxter's last report, the Ceres stakeholder team provided a diverse group of Baxter executives its feedback on the company's sustainability priorities, performance and key impacts, and had a robust discussion about goals, initiatives, data and reporting. Baxter considered this feedback in the preparation of this report. |
