The Green of Going Green

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The pharmaceutical industry has made enormous strides to limit its impact on the environment and create projects that improve sustainability. Increasingly, this socially responsible approach also makes good business sense, as more companies are discovering. Doing good and doing well may well be synonymous. Pharmaceutical companies have been making significant strides toward environmental sustainability, putting in place initiatives to cut greenhouse gas emissions, reduce water usage, cut back on waste and the release of harmful toxins, and enhance the environment where their employees live and work and beyond. It’s all helping to make companies better corporate citizens. At the same time, reports have pointed to a strong correlation between environmental and financial performance. Financial services company Innovest Strategic Value Advisors has conducted research showing that going green improves stock market performance and that companies that fail to adopt environmentally sustainable policies can in fact lose money. April Cody, an analyst at Innovest who specializes in the biotechnology sector, says generally environmental management is viewed as a proxy for the overall management of the company. “Companies in the sector that demonstrate environmental leadership and sustainability leadership, including resource efficiency and climate change strategies, are likely to manage their overall operations in a similar manner,” she says. In terms of whether this leads to greater investment in companies, Ms. Cody says while that’s obviously subjective, one of the most important stakeholder issues is trust between companies, between companies and consumers, and between companies and shareholders. “If stakeholders think a company is managing environmental risk well, they will, I believe, further invest in that company,” she says. Recognizing the value that a greener stance can bring to investor relations, Roche developed a business case for sustainability by working with a Swiss business school. “We published the data on the Internet so our employees can read what’s happening and our shareholders can see that there is a good financial return on sustainable business projects,” says Jack Kace, Eng. Sci.D., VP of corporate environmental and safety affairs, at Roche. (The business case can be found at: roche.com/corporate_responsibility/principles/business_cases.htm.) James Hagan, Ph.D., VP, corporate environment, health and safety, at GlaxoSmithKline says investors have evolved from thinking of good environment, health, and safety practices as indicators of sound general business management to evaluating sensible, sustainable programs as a true reflection of business principles. He adds that the sustainable approach GSK has adopted has been well-received by investors. “They view these initiatives as a measure of how efficient we are as an organization,” Dr. Hagan says. “Our approach to social responsibilities can be viewed as how we manage the business.” As the environment becomes increasingly important to everyone, the knock-on effect of good, or bad, practices could become more pronounced, some experts say. “We believe sustainability factors will be increasingly important to shareholders in the future, which is why Novartis voluntarily committed to the Kyoto protocol of reducing our CO2 emission to 5% below the 1990 level by 2012,” says Thomas Wellauer, Ph.D., head of corporate affairs at Novartis. Dr. Wellauer says the incentives for sustainable practices are evident. For example, almost $6 billion in assets are under management by investment funds tracking Dow Jones Sustainability World Index, a global index that watches the performance of sustainability-driven companies. “This provides a platform to encourage corporate progress toward sustainability as well as long-term business success,” Dr. Wellauer says. AstraZeneca also is ranked among the sustainability leaders in the pharmaceutical sector on the Dow Jones Sustainability Index, a recognition the company has received for seven consecutive years. “Certainly investors value companies that have demonstrated the ability to run efficiently and effectively in times of change, and running a green business is a perfect example of that ability,” says Kathy Monday, VP, customer product support and business services, at AstraZeneca. Likewise, executives at CommonHealth say investors frequently ask for information about the company’s social and environmental performance and they scrutinize its annual corporate responsibility (CR) report, approaching CR as a route to better risk management. Beyond the bottom line, agency officials are committed to providing programs on environmental health to healthcare professionals and consumers. “These groups believe that changes in the environment influence health — both the conditions people have and the severity of the condition,” says Stacey Singer, president of Earthborn, an environmental health communications agency, and managing partner of CommonHealth. “Consumers most frequently associate increased cancer, asthma, allergies, and infectious disease with changes in the environment. They are interested in receiving information from healthcare professionals on this topic, but rarely do. For their part, physicians are interested in this topic but have little formal or informal training on environmental health.” A Green Enlightenment Progressive companies across many industries have been taking a lead in the push to reduce their carbon footprint and make a positive contribution toward environmental sustainability. In recent years, a growing number of pharma and biotech companies, and indeed many of the companies that serve the life-sciences industry, have demonstrated a real commitment to green initiatives. “Most companies now have climate change strategies where they state specific targets and objectives for the short term, medium term, and long term,” Ms. Cody says. “These include CO2 emission reduction and water-reduction programs. There’s been a strong move toward green chemistry, the removal of hazardous material and ingredients, which also relates to the issue of pharmaceuticals in the environment. Companies are also engaging in ways to reduce their packaging; for example, Johnson & Johnson and Eli Lilly are making efforts in this direction. Leaders in the sector also are engaging in life-cycle analysis of their products.” Ms. Cody notes that companies are starting to implement some specific eco-efficiency processes, including engineering changes and equipment upgrades to reduce energy consumption; installing solar, geo-thermal alternative energy sources or renewable energy sources; purchasing renewable energy; and investing in cogeneration systems where electricity is generated and recovered from heat to maximize the facility’s efficiency. “We’ve also seen drastic reductions in hazardous waste this year — between 20% and 40%,” Ms. Cody says. Whether in the laboratory, manufacturing, or general business operations, green initiatives are increasingly being recognized as important for the broader community and as a business imperative. A Green Edge The ability to generate revenue from green initiatives is starting to take hold. The company that has perhaps best demonstrated this link is General Electric, which continues to realize increased revenue from its products and services that improve environmental performance advantages for its customers. Revenue from ecomagination products reached $14 billion in 2007, with orders and commitments rising to $70 billion. The company also has boosted its ecomagination portfolio from 17 products in 2005 to more than 60 products. All of this has resulted in the company raising its annual revenue target from $20 billion to $25 billion in 2010. Ms. Cody says in the pharmaceutical sector there can also be a large financial opportunity for companies investing in green operations. “This is viewed as a strategic profit opportunity because as consumers and patients become more environmentally conscious and more concerned about natural ingredients, they’re going to be looking to pharma companies for less environmentally harmful products,” she says. AstraZeneca, for example, has found its green chemistry efforts have helped to lower inventory and materials costs. “One change we made reduced the amount of solvents used in a process from 300 to 50 per kilogram of active pharmaceutical ingredient,” Ms. Monday says. “This increased efficiency and saved money by reducing the cost of the API by about 80%.” According to Elaine Salewske, senior manager, corporate communications, at Baxter International, the company’s approach to sustainability is giving it a boost in terms of providing a competitive advantage, driving financial savings, providing differentiation, and enhancing its reputation. “Baxter’s Environment, Health and Safety (EHS) function pioneered its first Environmental Financial Statement (EFS) in 1993 to demonstrate the value of a proactive global environmental management program to senior leadership and external stakeholders,” she says. “Results from 2007 demonstrate the continued value of the program with savings and cost avoidance totaling $4.4 million, or 30% of the cost of our basic environmental program — $14.7 million — for initiatives completed in 2007.” Improving energy efficiency and reducing waste has helped Novartis lower costs for increasingly expensive resources, such as power and water, as well as waste disposal. “From an energy-efficiency perspective, we aim to support business growth objectives while reducing CO2 emissions, minimizing energy costs, and using renewable energy sources,” Dr. Wellauer says. “These projects have already demonstrated that they are an excellent investment. A recent in-depth analysis of 10 projects showed that the total investment of $20 million was recouped in just 10 months.” With its green initiatives, Roche looks at energy-related projects over the entire life cycle of the piece of equipment. “For example, a solar photovoltaic cell might have a life cycle of 10 years, whereas a manufacturing pump may have a life cycle of 30 years,” Dr. Kace says. “So when evaluated in this context, there are a lot more projects that qualify as being cost-effective.” Novartis also is investing in energy-efficient technologies, infrastructures, and production processes. “For instance, at our production site in Kundl, Austria, we initiated a project to improve the economics of producing penicillin V, a large-scale fermentation process,” Dr. Wellauer says. “Savings in electricity consumption represented 6% of energy usage by the entire Kundl site, and an up-front investment of $3.5 million has delivered annual savings of $5.1 million.” The company has established energy efficiency standards for future buildings and expects energy costs at the new Novartis campus office buildings to be 67% lower than old buildings of the same size. “We also are increasing our use of renewable energy, such as biofuels and organic wastefuels,” Dr. Wellauer says. “In a project in Wehr, Germany, $2.3 million has been invested at a pharmaceuticals division production site to convert a heating system from natural gas to wood chips — wood being carbon-neutral — and the new heating plant, which came into operation recently, will reduce on-site CO2 emissions by 3,400 tons per year. Dependency on natural gas will be reduced significantly, and we expect the project will pay for itself within five years.” Ms. Salewske says Baxter’s new minimum energy efficiency standards to reduce energy consumption and associated greenhouse gas emissions at all of its facilities have resulted in savings and cost avoidance approaching $4 million in 2007. Similar goals are in place for water usage. Already, Baxter plants in Singapore, Canada, Puerto Rico, and elsewhere have contributed to Baxter reducing water consumption by as much as 30% indexed to revenue since 2005. Although McKesson is in the early stages of its environmental sustainability efforts, the company has already found financial value. “For example, we have a printing facility in Ireland that conducted an energy audit and, through some very simple adjustments, managed to save 1,300 euros this past summer,” says Marcus Chung, director of corporate citizenship, at McKesson. “That same facility also partnered with a local recycling company that hauls excess paper for free, saving the facility another 700 euros each month.” Kathy Magnuson, executive VP and managing director of Brand Pharm, says green initiatives at her agency are reducing the company’s electric bill; it’s now 60% of what had originally been forecast as a result of energy-efficient installations. “These efforts position us as an environmentally involved agency, and more importantly, we believe it’s simply the right thing to do,” she says. She cautions, however, that going green does not necessarily drive business through the door. “Our research with customers indicates that the term has actually lost some cachet as it is overused and isn’t always believable,” she says. “Companies must be able to demonstrate how they or their products sustain the environment or they run the risk of disillusioning customers, which could negatively affect acceptance.” Ms. Magnuson believes that green actions implemented specifically to improve a company’s value to investors will be viewed with skepticism, the same way consumers view health claims that are not proven. “Serious environmental policies that are implemented to improve a company’s impact on the environment will be viewed by customers and investors favorably and will improve the company’s value because it is operating more efficiently and with greater sustainability,” she says. “If a company wants to improve its reputation and value based on being more environmentally sound, it has to truly walk the walk and not just take superficial actions that are only for appearances’ sake.” Inside and Outside While bottom-line performance is important, so is having an engaged and happy work force. A report from the Kenexa Research Institute found that companies with green initiatives enjoy a more engaged work force with more favorable views of senior management. The study, conducted across 13 countries, shows that more than half (54%) of workers are supportive of their companies’ green programs, and that green efforts enhance employees’ pride in their organizations, overall satisfaction, and willingness to recommend their companies as a place to work. Companies enacting green policies agree that employees are much more motivated to work for a company that is striving to reduce its environmental impacts. McKesson’s Mr. Chung says he has been in the position of director of corporate citizenship for just five months and in that time he has received inquiries and ideas from almost 100 employees, without any solicitation. At other companies the situation is similar. “When we ask our employees for new ideas to help in terms of environmental or social improvements we’re getting a tremendous amount of feedback,” Dr. Kace says. In fact, Roche places huge emphasis on employee involvement in green initiatives. “We feel strongly that we can’t make all the decisions at the highest level, and the way to accomplish our sustainability objectives is to drive the decision-making process throughout the organization so everyone understands what sustainability is and makes the right decisions,” he says. At GSK an awards program sponsored by the CEO seeks to highlight and identify good, sustainable practices. “In this way we recognize individuals and teams at facilities around the globe who are making a difference, and it provides us with a communication platform that helps us reach the whole organization with the message that these initiatives are important,” Dr. Hagan says. “By providing examples we are sharing best practices that all employees should consider.” The green revolution also means companies are looking for ways to encourage those they work with to adopt similarly strong environmental policies. “We believe we can best impact clients’ efforts by educating them about what we are doing on their behalf, such as using recycled products where possible in production, recommending smaller production quantities to ensure less waste, providing insights into how to work more efficiently, and looking at packaging that is less impactful in the environment,” Ms. Magnuson says. Goble & Associates is finding that there is increased interest among its clients in using more environmentally friendly resources to print sales and marketing pieces. Theresa Spatt, senior account manager at Goble, says a growing number of clients are asking for or showing interest in print pieces that are produced on Forest Stewardship Council (FSC) products. Ms. Cody says some companies are developing supplier policies that take environmental, social, and governance (ESG) issues into account. “Leading companies are auditing their suppliers, so it’s not enough for a supplier to say it’s complying with an environmental standard; companies are checking,” she says. Before working with contract manufacturers, GSK audits their operations, assessing conventional environment, health, and safety matters, loss prevention issues, human rights issues, and increasingly their sustainability approach. “We’re trying to identify partners we can work with that will adopt the same environmental philosophy we have,” Dr. Hagan says. “It’s not just a question of us trying to impose our will on suppliers but rather to partner with them in a way that can result in good outcomes for them, us, society, and the environment.” Roche has established a supplier code of conduct and is auditing its suppliers to ensure they live up to the terms of that code. “If they don’t, they’re removed and we don’t deal with them anymore,” Dr. Kace says. “For those that are not quite up to where we’d like them to be but are moving in the right direction, we’ve provided assistance and technical advice as to how to improve their operations and continue to work with us.” Baxter is improving its systems to track supplier environmental information and is collaborating with suppliers to improve their performance. One goal is to incorporate green principles into its purchasing programs with its top 100 suppliers — by spend — by 2015. The company also is an active member of the Green Suppliers Network, a collaboration of industry, the U.S. Environmental Protection Agency, and the U.S. Department of Commerce’s Manufacturing Extension Partnership, which works to engage suppliers in low-cost technical reviews to identify strategies for improving process lines and using materials more efficiently. Several tools related to lean manufacturing, environmental improvement, energy efficiency, and chemical management are available to participants. “Baxter is committed to building partnerships and improving supplier environmental performance,” Ms. Salewske says. Those on the services side agree that sustainability has become more important to clients. “Our clients include many of the world’s top companies, and they are emphasizing CR to their employees and in their products and brands,” says Vanessa Edwards, head of corporate responsibility, WPP, of which CommonHealth is part. “They want to work with a marketing partner that understands CR and shares their values.” F PharmaVOICE welcomes comments about this article. E-mail us at feedback@pharmavoice.com. Our clients are more interested than ever to learn about more environmentally friendly resources to print sales and marketing pieces. Theresa Spatt, Goble If stakeholders think that companies are managing environmental risk well, they will, I believe, further invest in the company. April Cody, Innovest Earth Day April 22, 2009 For more information about activities in your area, visit earthday.net. More efficient lighting systems, such as those installed in Baxter’s manufacturing plant in Marion, N.C., are among the technology upgrades the company is implementing to reduce energy consumption in its facilities worldwide. Carson Gibson, a wastewater treatment plant operator at Baxter’s Marion, N.C., facility, collects river-water samples downstream from where the facility discharges its treated wastewater. Companies that claim to be environmentally friendly must be able to demonstrate sustainability or run the risk of losing their customers’ trust. Kathy Magnuson, Brand Pharm Baxter’s multidimensional approach to reducing GHG emissions and taking action on climate change includes six principal strategies: 1. energy conservation 2. goals-setting and performance measurement 3. pursuit of carbon neutrality for certain operations and products 4. emissions trading 5. renewable energy use 6. involvement in public policy debate Roche is extending its fuel-efficiency vehicles program to facilities throughout the United States. We feel strongly that the way to accomplish our sustainability objectives is to drive the decision-making throughout the organization so everyone is making sustainable business decisions. Dr. Jack Kace, Roche Healthcare professionals and consumers believe that changes in the environment influence health — both the conditions people have and the severity of the condition — and they are looking for information. Stacey Singer, Earthborn, part of CommonHealth Since I took on the position as director of corporate citizenship five months ago, I’ve received inquiries and ideas from almost 100 employees about environmental initiatives. Marcus Chung, McKesson Investors view our environmental initiatives as a measure of how efficient we are as an organization in how we use resources. Our approach to social responsibility can be viewed as an indicator of how we manage the business. Dr. James Hagan GSK We believe sustainability factors will be increasingly important to shareholders in the future. Dr. Thomas Wellauer Novartis Novartis’ headquarters in Basel, Switzerland, consumes about one-third of the energy as other office buildings in the country. AstraZeneca has the first lab in Delaware to be awarded LEED Gold status. Kathy Monday, AstraZeneca From left to right: Lt. Governor John Carney, (D), Delaware, Kathy Monday, and Arnie Caine, VP, Business Services, AstraZeneca. Experts on this topic See Digital EDITION for Bonus Content www.pharmavoice.com Marcus Chung. Director, Corporate Citizenship, McKesson, a healthcare services company that provides pharmaceutical distribution, healthcare information technology, medical-surgical distribution, automation, consulting, and medical-care management services. For more information, visit mckesson.com. April Cody. Analyst, Innovest Strategic Value Advisors, which integrates sustainability and finance by identifying nontraditional sources of risk and value potential for investors. For more information, visit innovestgroup.com. Vanessa Edwards. Head of Corporate Responsibility, The WPP Group, which offers an integrated range of communications services. For more information, visit wpp.com. James Hagan, Ph.D. VP, Corporate Environment, Health and Safety, GlaxoSmithKline, a research-based pharmaceutical company producing medicines that treat six major disease areas: asthma, virus control, infections, mental health, diabetes, and digestive conditions. For more information, visit gsk.com. Jack Kace, Eng. Sci. D. VP, Corporate Environmental and Safety Affairs, Roche, a research-oriented healthcare group with core businesses in pharmaceuticals and diagnostics. For more information, visit rocheusa.com. Kathy Magnuson. Executive VP and Managing Director, Brand Pharm, a member of the Publicis Healthcare Group and a full-service medical advertising agency. For more information, visit brandpharmusa.com. Kathy Monday. VP, Customer Product Support and Business Services, AstraZeneca, a leading pharmaceutical company focused on six therapy areas, including cancer, cardiovascular, gastrointestinal, infection, neuroscience, and respiratory and inflammatory. For more information, visit astrazeneca-us.com. Elaine Salewske. Senior Manager, Corporate Communications, Baxter International Inc., which develops, manufactures, and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. For more information, visit baxter.com. Stacey Singer. Managing Partner, CommonHealth, and President, Earthborn, which is a full-service agency that offers communication programs built around the connection between the environment and health. For more information, visit commonhealth.com/earthborn. Theresa Spatt. Senior Account Manager, Goble & Associates, a full-service healthcare advertising company. For more information, visit goble-assoc.com. Thomas Wellauer, Ph.D. Head of Corporate Affairs, Novartis AG, which has operations in 140 countries and is a world leader in the research, development, manufacturing, and marketing of products to protect and improve health and well-being. For more information, visit novartis.com. A Going Green Company Update In October 2007, several companies shared their green initiatives with us. In this latest article, a number of those companies have updated us on their progress, and in addition many other companies have spoken to us about the exciting work they are doing in environmental sustainability. AstraZeneca straZeneca US has an environmental strategy that includes energy conservation, waste minimization, biodiversity, employee partnership, sustainable packaging, and sustainable purchasing. “Commitment to these programs is a must to foster the trust of the communities in which we operate and the respect of stakeholders we represent, and to protect the future of our environment,” says Kathy Monday, VP, customer product support and business services, at AstraZeneca. The company has reduced its energy consumption at its U.S. headquarters by more than 2,000 megawatt-hours (MWH) in a year. This, in part, drove the company’s recent Energy Star certification, which is the EPA’s voluntary program to drive energy conservation. AstraZeneca recycles, reuses, or uses as an energy source about 72% of its hazardous waste and 68% of other waste generated. Other waste and energy initiatives include: • At the Newark, Del., manufacturing site installation of a heat recovery system is expected to save more than 500,000 lbs. of CO2 emissions. • In its Waltham, Mass., expansion project and a Wilmington, Del., lab renovation, 88% of the rubble generated by the renovation was diverted from landfills. • The Westborough, Mass., manufacturing site used competitive bidding and contract negotiations to recycle waste plastics, improving the site’s recycling credits by 225%, which more than offset the site’s waste management costs. The company has substituted certain manufacturing materials with chemicals and materials that have a lesser impact on the environment. In addition, AstraZeneca is replacing older vehicles in the sales fleet with new fuel-efficient vehicles. Today, the company has more than 100 hybrid vehicles in its fleet, which is expected to grow to 185 by the end of 2008. The company has also achieved LEED certification (Leadership in Environmental and Energy Design) for sustainable design. LEED is granted by the U.S. Green Building Council for sustainable design. “AstraZeneca has the first lab in Delaware to be awarded LEED Gold status,” Ms. Monday says. “We also incorporated innovative green features, including geothermal heating and cooling, and solar panels into our new service provider center, achieving Gold-level status with that work as well. LEED status also is anticipated for our Boston R&D expansion project scheduled for completion in 2009.” In 2008, AstraZeneca gave out more than 2,000 compact florescent light bulbs to employees during an Earth Day celebration to kick off its participation in the EPA’s Change A Light, Change the World program. Collectively, this initiative saved almost 750,000 kilowatt-hours and more than 1 million pounds of greenhouse gases. “AstraZeneca employees can take advantage of our commuting options, such as carpools, vanpools, and shuttles, as well as trains and buses,” Ms. Mondays adds. “At our Wilmington and Waltham sites, 20% of our employees reduce their carbon footprint by commuting in high-occupancy vehicles. Through shuttle buses we eliminated more than 33,000 vehicle round-trips in 2007.” Baxter or the past three decades, Baxter has increasingly committed itself to sustainability, and the company has been widely recognized for its efforts in the area of social responsibility. Innovest Strategic Value Investors recognized the company as one of the Global 100 Most Sustainable Corporations in the World; it has received accolades from Corporate Responsibility Officer magazine as one of the 100 Best Corporate Citizens, and the EPA recognized Baxter as a Performance Track Corporate Leader. Baxter is also a member of the Business Environmental Leadership Council of the Pew Center on Global Climate Change, the Chicago Climate Exchange, the U.S. EPA’s Climate Leaders, the Ethics & Compliance Officer Association, and Hospitals for a Healthy Environment, among other organizations. In 2006, Baxter established an executive-level Sustainability Steering Committee to intensify efforts to align global business activities with the needs of society and the environment. In 2007 the Committee defined nine sustainability priorities and performance goals that reflect issues of key concern to Baxter and its stakeholders, and areas where the company is uniquely positioned to have a positive impact. “While Baxter’s sustainability priorities cover a wide range of areas, reducing GHG emissions and taking action on climate change are core elements of Baxter’s sustainability efforts,” says Elaine Salewske, senior manager, corporate communications, at Baxter International. “The company’s multidimensional approach includes six principal strategies: energy conservation, goals-setting and performance measurement, pursuit of carbon neutrality for certain operations and products, emissions trading, renewable energy use, and involvement in public policy debate.” Baxter has integrated its EHS expertise into lean manufacturing initiatives to prevent negative environmental consequences and identify opportunities for environmental improvement — known as Lean and Clean. “The benefits of lean manufacturing include cost-savings,” Ms. Salewske says. “Also, any time a process can be made simpler, quality and reliability are likely to improve.” Brand Pharm rand Pharm moved into new offices in 2007 with a focus on environmentally friendly carpeting and paint along with other decorating considerations. External responses have been highly favorable as the agency continues to push forward to help ensure increased recycling of resources and reduction of disposable items, such as paper, printer toner, etc. “We also are completing an electronic routing system, which will be fully operational by the end of the first quarter 2009,” says Kathy Magnuson, executive VP and managing director, at Brand Pharm. “With the installation of new energy-efficient air conditioning units, we were able to keep all thermostats to 75 degrees this past summer, which reduced our consumption of electricity/air conditioning.” The recent installation of a new cube system makes better use of ambient light so Brand Pharm is able to further reduce its dependence on electricity. “And we were very excited that our old cube systems were recycled within the PHCG network,” Ms. Magnuson says. “Brand Pharm staff members are very involved and share their own tips for further reducing our use of resources.” CommonHealth Furthering its greening efforts, Marty Sillen, Procurement and Facilities Director, CommonHealth, says the agency is going to evaluate all of its lighting. ommonHealth’s agency Earthborn, featured in the October 2007 Going Green issue, helps to make the connection between human health and the environment. Across the board, CommonHealth is constantly looking for opportunities to use green products. “Planned for 2009 is a comprehensive evaluation of our lighting — both in products and output,” says Marty Sillen, procurement and facilities director, CommonHealth. “We will investigate relamping all of our fixtures to incorporate long-life, energy-efficient bulbs.” GlaxoSmithKline ith environmental programs dating back almost 25 years, GlaxoSmithKline has undertaken a journey toward sustainability. “At the start, it was purely a question of controlling emissions from our operations,” says James Hagan, Ph.D., VP, corporate environment, health and safety. “As we moved into sustainability, this is where there’s a real benefit to the organization and where there has been more buy-in from within the organization.” While its goals and achievements are ambitious, GSK recognized that adaptation would take time since it meant changing some of the standard approaches that have been in place for years. So the company implemented a 10-year plan. The current plan, running from 2005 to 2015, takes a business-by-business look at what changes each aspect of the company can make with respect to sustainability. “We’ve had a very good road map in terms of what steps we want to take,” Dr. Hagan says. “Included in the plan are specific projects, such as the one related to climate change.” Early on, GSK started to follow the lead of the Intergovernmental Project on Climate Change (IPCC), which came out with a report in the mid-1990s, by setting and achieving energy reduction targets. During the 2001-2005 time frame, the company looked at targets for both energy reduction and global warming potentials. “Both energy and GWP were set to reduce 8% relative to sales, and we exceeded that by reducing energy and GWP 13% relative to sales, and hit an 8% absolute reduction,” Dr. Hagan says. In 2007 the IPCC issued a further finding, stating it knew that climate change was happening and was almost certainly due to human activity. “So we stepped up our program, and now our targets are 20% reduction per unit sales by the end of 2010 and a 45% reduction of energy and GWP by the end of 2015,” Dr. Hagan says. “We also set up a central fund that is available to all business units for financial support in terms of operation and capital investments.” GSK also has made strides toward manufacturing efficiency, looking at sustainable chemistry and sustainable technologies, and has set a goal of doubling the efficiency of its production processes for new products. What gives GSK’s initiatives the muscle to achieve goals is that support comes from the top, its board of directors and CEO. “Andrew Witty, our CEO, is building trust within the company and with the community,” Dr. Hagan says. “A key element of his plan was the formation of a Sustainability Council made up of senior members from the organization.” GSK also has an external stakeholder panel, which meets twice a year and includes representatives from various outside interest groups — investors, environmental groups, customers, and regulators. Goble & Associates ince last year’s Going Green article in PharmaVOICE, Goble’s Globle Action initiatives have expanded. The company has continued its scrap pad bins, and more employees have signed up for the car-sharing service. “One of our biggest new Globle Action initiatives debuted in April, coinciding with Earth Day,” says Theresa Spatt, senior account manager. “We now have a designated area where our employees can recycle additional items, such as plastic bags, batteries, CFL bulbs, and cell phones. It’s our x-treme recycling program, and employees volunteer to take the items to nearby recycling centers.” Also, employees signed up to take one of three pledges: reduce the use of plastic bags by using a provided reusable bag; reduce plastic bottle use by substituting a reusable aluminum bottle; and reduce the use of toxic chemicals by using environmentally friendly cleaning products. McKesson t McKesson, a number of green initiatives are in place and more are in the works. The company is applying for LEED certification for its headquarters in San Francisco and is building a new distribution center to LEED specifications. Furthermore, the company is developing environmental sustainability policies and standards for all buildings it occupies now, and those it will build in the future. “We’re also developing environmental standards for the meetings we host,” says Marcus Chung, director of corporate citizenship at McKesson. “We have already implemented some environmentally friendly meeting practices, such as recycling name badges and on-site recycling, that help to reduce costs. Our plan is to standardize these practices across McKesson.” McKesson recently established a number of other programs to become more environmentally friendly. Among them are the McKesson Environmental Councils, which were launched in 2008 at 10 company locations. “These councils are run by employee volunteers who seek ways to reduce their locations’ environmental impacts,” Mr. Chung says. “They have initiated a number of projects, such as increasing facility recycling rates, staging a beach cleanup volunteer event, installing motion-controlled lighting in conference rooms and bathrooms, and hosting an environmental fair to help employees connect to local environmental resources.” In addition, benefits are offered to help ease employees’ carbon footprints. McKesson partners with WageWorks to provide pretax commuter benefits for employees who use public transportation, and the company recently entered a partnership with Zipcar, a car share service, to provide employees with a discounted membership rate. “In early 2009, we plan to introduce a new fleet of office printing and copying devices that are more energy-efficient than our existing machines,” Mr. Chung says. “In addition to energy savings, these machines will be set to automatically print on both sides of the paper to increase savings and reduce paper usage. And finally, we are in the process of consolidating three data centers to one location, which we expect will lead to significant energy and cost savings.” The impact of travel is also high on McKesson’s list of priorities. One initiative includes more fuel-efficient vehicle options in its sales fleet, which Mr. Chung says is expected to result in a 20% reduction in carbon output. “In three of our largest offices, we have introduced high-definition video conferencing, which enables face-to-face meetings between remote locations, and these telepresence rooms have reduced business travel, saving money and reducing carbon emissions,” Mr. Chung says. Novartis n 2006, Novartis was named “supersector leader for healthcare,” and again in the 2008 update of the Dow Jones Sustainability World Index (DJSI World), a global index tracking the performance of sustainability-driven companies. Among environmental indicators, Novartis received 100% scores from DJSI for environmental reporting and environmental policy/management systems. “We have long been focused on reducing our GHG and CO2 emissions,” says Thomas Wellauer, Ph.D., head of corporate affairs at Novartis. “At our campus in Basel, together with the local authorities, we have set energy-efficiency standards for future Novartis buildings.” The company also is in the process of overhauling its vehicle fleet, with the goal of reducing CO2 emission from about 23,000 vehicles owned or leased by units around the world by 10% by 2010, Dr. Wellauer says. The vehicle fleet in Europe is changing to 100% diesel with mandatory particle filters and in the United States to 40% hybrid or fuel-efficient cars. By the end of 2008, the company will have 1,310 fuel-efficient hybrid and diesel cars in the U.S. fleet, and it expects CO2 emissions from all vehicles to be 6% lower in 2008 than 2007. “We are also increasingly using renewable energy,” he says. “For instance, we are using wood chips at our site in Wehr, Germany, and solar panels are installed on the roofs of a growing number of Novartis buildings. We are also now in some instances using ground and river water for heating or free cooling. In total, including hydroelectric power, Novartis derives 30% of its energy from renewable sources.” Novartis’ goal is to supply campus buildings with 100% renewable, CO2-free energy. Electricity is gained mainly from waterpower, but also solar and wind energy. Cooling water is extracted from the nearby river Rhine. Heat is supplied by the waste incineration facility of Basel. The CO2-free vapor that is generated when incinerating waste is used for heating the buildings on campus. Overall, the company has in recent years halted any increase in its energy use and GHG emissions. “The carbon dioxide emissions from our operations are 1% lower now than in 2006, despite significant growth in our business,” he says. “We have an energy manager at all our major divisions and sites, and for several years we have been implementing projects to improve efficiency through lighting, temperature adjustments, and operational programs, among others initiatives.” In addition, Novartis has introduced several carbon-offset projects to help it reach its voluntary target of reducing CO2 emissions to 5% below the 1990 level by 2012. “One example of this is in Argentina, where we purchased 34 square kilometers of pastureland as the site of a project establishing a forest to sequester carbon,” Dr. Wellauer says. “Plantations were started during 2007, and in 2008 about 2.2 million young trees were planted. Ultimately, the goal is to establish a sustainable mixed forest with 75% native tree species. We received Forest Stewardship Council (FSC) certification for the plantation in February 2008, and we expect registration of this project under the United Nations’ Clean Development Mechanism (CDM) in 2009.” A second carbon-offset project sponsored by Novartis is a jatropha plantation and bio-diesel project in Mali, West Africa. “The seeds of this shrub contain a high proportion of oil that can be used for making biodiesel fuel,” Dr. Wellauer says. “A natural fertilizer and potentially biogas energy also can be produced from the residues. The project involves local villages and is intended to not only generate carbon certificates but also improve the economies for local people.” Roche hen Roche spoke to PharmaVOICE in 2007 about its green initiatives, it highlighted several, including cogeneration, retro-commissioning, and fuel-efficient vehicles. All of those programs and others have continued and advanced in the past year. “We have improved the efficiency of the cogeneration system in our Nutley, N.J., location, and we have some ideas as to how to improve it still further,” says Jack Kace, Eng. Sci.D., VP of corporate environmental and safety affairs at Roche. “We also have cogeneration in another Roche facility in Pleasanton, Calif.” The company is also hoping that the revised New Jersey energy master plan will provide incentives for cogeneration, possibly resulting in another cogeneration installation in New Jersey. The company has extended its fuel-efficient vehicles program to other Roche facilities in the United States. The Indianapolis facility, which is where the company’s diagnostics operation is based, has incorporated hybrids into the fleet, and since snow necessitates the use of four-wheel-drive vehicles, the operation has adopted the Ford Escape hybrid four-wheel-drive. In addition, the facility is replacing 6-cylinder vehicles with 4-cylinder models. Another green initiative is the adoption of solar photovoltaic systems. “We’re using two different models,” Dr. Kace says. “We recently put in a Roche-owned solar photovoltaic system at our Nutley facility. The system provides enough electricity to supply four households with electricity for a year. It’s a small facility, but it is cost-effective because of rebates from the state to encourage solar photovoltaic usage.” At two other larger sites — Branchburg, N.J., and in Pleasanton, Calif. — Roche is using a different model. “There we’ve entered into a purchase power agreement where we are essentially allowing a third party to come in and install solar PV cells on our rooftops, and we’ve agreed to a long-term commitment to purchase the electricity that’s generated from those solar PV cells at a reasonable rate,” Dr. Kace says. F Kathy Monday, VP, Customer Product Support and Business Services, AstraZeneca; Jeff Dayton, State Director for Delaware Congressman Mike Castle (R); and Arnie Caine, VP, Business Services, AstraZeneca, discuss the Delaware-based company’s LEED certification for sustainable design. More efficient lighting systems, such as those installed in Baxter’s manufacturing plant in Marion, N.C., are among the technology upgrades the company is implementing to reduce energy consumption in its facilities worldwide. This wind turbine at GlaxoSmithKline’s Barnard Castle in Northern England is one of several initiatives undertaken to reduce the consumption of fossil fuels the site. In 2004, the site won first place for environment in GSK’s internal CEO’s Environment, Health and Safety awards for excellence. Goble & Associates employees were encouraged to sign up for one of three pledges during Earth Day week. Kenexa Research Institute (KRI) findings state that more than 50% of workers care about working for a “green” organization. KRI evaluated workers’ opinions of their organizations with regard to “green” initiatives. The latest research suggests that an organization’s business choices that support the environment, such as recycling, energy conservation, and vendor selection have a significant influence on employees’ engagement levels and views of senior management. The report is based on the analysis of data drawn from a representative sample of workers surveyed through WorkTrends, KRI’s 2008 annual survey of worker opinions. “Worldwide, more and more organizations are ‘going green’ and are integrating this dedication into their strategic corporate initiatives,” says Anne Herman, research consultant at KRI. “Those organizations committed to the environment demonstrate this by routinely recycling, conserving energy, and working with vendors who share similar values. This sets them apart from their competition by creating a positive employment brand, and establishes an emotional tie between the employee and organization.” The results from the latest cross-culture study indicate that among the 13 countries surveyed, more than half (54%) of workers state their favorability with their organization’s participation in green initiatives. Workers in India (63%) have the highest level of favorability, while workers in Japan (40%) and Russia (42%) have the least favorable levels. Across all countries surveyed, the research indicates that working for an organization where employees positively view green efforts has a significant favorable impact on how they rate their pride in the organization, overall satisfaction, and willingness to recommend it as a place to work. Furthermore, employees with favorable opinions of their company’s green activities also have more favorable opinions of their management. They are much more likely to feel that senior managers have the ability to deal with company challenges, demonstrate that employees are important to the success of the company, and provide employees with a clear picture of the company’s direction. In addition, these employees are also more likely to believe that senior management supports and practices high standards of ethical conduct and is more trustworthy. When asked why they joined their organization, employees reported that one of the reasons was the organization’s reputation. Those who were favorable toward their organization’s green initiatives were more likely to indicate that their company’s reputation had improved in the past year compared with those employees who were unfavorable toward their company’s green practices. “Today’s employees are considering the reputation of an organization in their decision to join, and the positive influence of a company’s green policy relates to a more favorable reputation,” Ms. Herman says. “Earth Day serves as a reminder that organizations that participate in green initiatives are not only positive global environmental citizens, they increase their competitive advantage when hiring and retaining employees.” Source: Kenexa Research Institute. For more information, visit kenexa.com. Going Green Positively Impacts Employee Engagement and Opinions of Senior Management A Going Green Company Update In October 2007, several companies shared their green initiatives with us. In this latest article, a number of those companies have updated us on their progress, and in addition many other companies have spoken to us about the exciting work they are doing in environmental sustainability. AstraZeneca straZeneca US has an environmental strategy that includes energy conservation, waste minimization, biodiversity, employee partnership, sustainable packaging, and sustainable purchasing. “Commitment to these programs is a must to foster the trust of the communities in which we operate and the respect of stakeholders we represent, and to protect the future of our environment,” says Kathy Monday, VP, customer product support and business services, at AstraZeneca. The company has reduced its energy consumption at its U.S. headquarters by more than 2,000 megawatt-hours (MWH) in a year. This, in part, drove the company’s recent Energy Star certification, which is the EPA’s voluntary program to drive energy conservation. AstraZeneca recycles, reuses, or uses as an energy source about 72% of its hazardous waste and 68% of other waste generated. Other waste and energy initiatives include: • At the Newark, Del., manufacturing site installation of a heat recovery system is expected to save more than 500,000 lbs. of CO2 emissions. • In its Waltham, Mass., expansion project and a Wilmington, Del., lab renovation, 88% of the rubble generated by the renovation was diverted from landfills. • The Westborough, Mass., manufacturing site used competitive bidding and contract negotiations to recycle waste plastics, improving the site’s recycling credits by 225%, which more than offset the site’s waste management costs. The company has substituted certain manufacturing materials with chemicals and materials that have a lesser impact on the environment. In addition, AstraZeneca is replacing older vehicles in the sales fleet with new fuel-efficient vehicles. Today, the company has more than 100 hybrid vehicles in its fleet, which is expected to grow to 185 by the end of 2008. The company has also achieved LEED certification (Leadership in Environmental and Energy Design) for sustainable design. LEED is granted by the U.S. Green Building Council for sustainable design. “AstraZeneca has the first lab in Delaware to be awarded LEED Gold status,” Ms. Monday says. “We also incorporated innovative green features, including geothermal heating and cooling, and solar panels into our new service provider center, achieving Gold-level status with that work as well. LEED status also is anticipated for our Boston R&D expansion project scheduled for completion in 2009.” In 2008, AstraZeneca gave out more than 2,000 compact florescent light bulbs to employees during an Earth Day celebration to kick off its participation in the EPA’s Change A Light, Change the World program. Collectively, this initiative saved almost 750,000 kilowatt-hours and more than 1 million pounds of greenhouse gases. “AstraZeneca employees can take advantage of our commuting options, such as carpools, vanpools, and shuttles, as well as trains and buses,” Ms. Mondays adds. “At our Wilmington and Waltham sites, 20% of our employees reduce their carbon footprint by commuting in high-occupancy vehicles. Through shuttle buses we eliminated more than 33,000 vehicle round-trips in 2007.” Baxter or the past three decades, Baxter has increasingly committed itself to sustainability, and the company has been widely recognized for its efforts in the area of social responsibility. Innovest Strategic Value Investors recognized the company as one of the Global 100 Most Sustainable Corporations in the World; it has received accolades from Corporate Responsibility Officer magazine as one of the 100 Best Corporate Citizens, and the EPA recognized Baxter as a Performance Track Corporate Leader. Baxter is also a member of the Business Environmental Leadership Council of the Pew Center on Global Climate Change, the Chicago Climate Exchange, the U.S. EPA’s Climate Leaders, the Ethics & Compliance Officer Association, and Hospitals for a Healthy Environment, among other organizations. In 2006, Baxter established an executive-level Sustainability Steering Committee to intensify efforts to align global business activities with the needs of society and the environment. In 2007 the Committee defined nine sustainability priorities and performance goals that reflect issues of key concern to Baxter and its stakeholders, and areas where the company is uniquely positioned to have a positive impact. “While Baxter’s sustainability priorities cover a wide range of areas, reducing GHG emissions and taking action on climate change are core elements of Baxter’s sustainability efforts,” says Elaine Salewske, senior manager, corporate communications, at Baxter International. “The company’s multidimensional approach includes six principal strategies: energy conservation, goals-setting and performance measurement, pursuit of carbon neutrality for certain operations and products, emissions trading, renewable energy use, and involvement in public policy debate.” Baxter has integrated its EHS expertise into lean manufacturing initiatives to prevent negative environmental consequences and identify opportunities for environmental improvement — known as Lean and Clean. “The benefits of lean manufacturing include cost-savings,” Ms. Salewske says. “Also, any time a process can be made simpler, quality and reliability are likely to improve.” Brand Pharm rand Pharm moved into new offices in 2007 with a focus on environmentally friendly carpeting and paint along with other decorating considerations. External responses have been highly favorable as the agency continues to push forward to help ensure increased recycling of resources and reduction of disposable items, such as paper, printer toner, etc. “We also are completing an electronic routing system, which will be fully operational by the end of the first quarter 2009,” says Kathy Magnuson, executive VP and managing director, at Brand Pharm. “With the installation of new energy-efficient air conditioning units, we were able to keep all thermostats to 75 degrees this past summer, which reduced our consumption of electricity/air conditioning.” The recent installation of a new cube system makes better use of ambient light so Brand Pharm is able to further reduce its dependence on electricity. “And we were very excited that our old cube systems were recycled within the PHCG network,” Ms. Magnuson says. “Brand Pharm staff members are very involved and share their own tips for further reducing our use of resources.” CommonHealth Furthering its greening efforts, Marty Sillen, Procurement and Facilities Director, CommonHealth, says the agency is going to evaluate all of its lighting. ommonHealth’s agency Earthborn, featured in the October 2007 Going Green issue, helps to make the connection between human health and the environment. Across the board, CommonHealth is constantly looking for opportunities to use green products. “Planned for 2009 is a comprehensive evaluation of our lighting — both in products and output,” says Marty Sillen, procurement and facilities director, CommonHealth. “We will investigate relamping all of our fixtures to incorporate long-life, energy-efficient bulbs.” GlaxoSmithKline ith environmental programs dating back almost 25 years, GlaxoSmithKline has undertaken a journey toward sustainability. “At the start, it was purely a question of controlling emissions from our operations,” says James Hagan, Ph.D., VP, corporate environment, health and safety. “As we moved into sustainability, this is where there’s a real benefit to the organization and where there has been more buy-in from within the organization.” While its goals and achievements are ambitious, GSK recognized that adaptation would take time since it meant changing some of the standard approaches that have been in place for years. So the company implemented a 10-year plan. The current plan, running from 2005 to 2015, takes a business-by-business look at what changes each aspect of the company can make with respect to sustainability. “We’ve had a very good road map in terms of what steps we want to take,” Dr. Hagan says. “Included in the plan are specific projects, such as the one related to climate change.” Early on, GSK started to follow the lead of the Intergovernmental Project on Climate Change (IPCC), which came out with a report in the mid-1990s, by setting and achieving energy reduction targets. During the 2001-2005 time frame, the company looked at targets for both energy reduction and global warming potentials. “Both energy and GWP were set to reduce 8% relative to sales, and we exceeded that by reducing energy and GWP 13% relative to sales, and hit an 8% absolute reduction,” Dr. Hagan says. In 2007 the IPCC issued a further finding, stating it knew that climate change was happening and was almost certainly due to human activity. “So we stepped up our program, and now our targets are 20% reduction per unit sales by the end of 2010 and a 45% reduction of energy and GWP by the end of 2015,” Dr. Hagan says. “We also set up a central fund that is available to all business units for financial support in terms of operation and capital investments.” GSK also has made strides toward manufacturing efficiency, looking at sustainable chemistry and sustainable technologies, and has set a goal of doubling the efficiency of its production processes for new products. What gives GSK’s initiatives the muscle to achieve goals is that support comes from the top, its board of directors and CEO. “Andrew Witty, our CEO, is building trust within the company and with the community,” Dr. Hagan says. “A key element of his plan was the formation of a Sustainability Council made up of senior members from the organization.” GSK also has an external stakeholder panel, which meets twice a year and includes representatives from various outside interest groups — investors, environmental groups, customers, and regulators. Goble & Associates ince last year’s Going Green article in PharmaVOICE, Goble’s Globle Action initiatives have expanded. The company has continued its scrap pad bins, and more employees have signed up for the car-sharing service. “One of our biggest new Globle Action initiatives debuted in April, coinciding with Earth Day,” says Theresa Spatt, senior account manager. “We now have a designated area where our employees can recycle additional items, such as plastic bags, batteries, CFL bulbs, and cell phones. It’s our x-treme recycling program, and employees volunteer to take the items to nearby recycling centers.” Also, employees signed up to take one of three pledges: reduce the use of plastic bags by using a provided reusable bag; reduce plastic bottle use by substituting a reusable aluminum bottle; and reduce the use of toxic chemicals by using environmentally friendly cleaning products. McKesson t McKesson, a number of green initiatives are in place and more are in the works. The company is applying for LEED certification for its headquarters in San Francisco and is building a new distribution center to LEED specifications. Furthermore, the company is developing environmental sustainability policies and standards for all buildings it occupies now, and those it will build in the future. “We’re also developing environmental standards for the meetings we host,” says Marcus Chung, director of corporate citizenship at McKesson. “We have already implemented some environmentally friendly meeting practices, such as recycling name badges and on-site recycling, that help to reduce costs. Our plan is to standardize these practices across McKesson.” McKesson recently established a number of other programs to become more environmentally friendly. Among them are the McKesson Environmental Councils, which were launched in 2008 at 10 company locations. “These councils are run by employee volunteers who seek ways to reduce their locations’ environmental impacts,” Mr. Chung says. “They have initiated a number of projects, such as increasing facility recycling rates, staging a beach cleanup volunteer event, installing motion-controlled lighting in conference rooms and bathrooms, and hosting an environmental fair to help employees connect to local environmental resources.” In addition, benefits are offered to help ease employees’ carbon footprints. McKesson partners with WageWorks to provide pretax commuter benefits for employees who use public transportation, and the company recently entered a partnership with Zipcar, a car share service, to provide employees with a discounted membership rate. “In early 2009, we plan to introduce a new fleet of office printing and copying devices that are more energy-efficient than our existing machines,” Mr. Chung says. “In addition to energy savings, these machines will be set to automatically print on both sides of the paper to increase savings and reduce paper usage. And finally, we are in the process of consolidating three data centers to one location, which we expect will lead to significant energy and cost savings.” The impact of travel is also high on McKesson’s list of priorities. One initiative includes more fuel-efficient vehicle options in its sales fleet, which Mr. Chung says is expected to result in a 20% reduction in carbon output. “In three of our largest offices, we have introduced high-definition video conferencing, which enables face-to-face meetings between remote locations, and these telepresence rooms have reduced business travel, saving money and reducing carbon emissions,” Mr. Chung says. Novartis n 2006, Novartis was named “supersector leader for healthcare,” and again in the 2008 update of the Dow Jones Sustainability World Index (DJSI World), a global index tracking the performance of sustainability-driven companies. Among environmental indicators, Novartis received 100% scores from DJSI for environmental reporting and environmental policy/management systems. “We have long been focused on reducing our GHG and CO2 emissions,” says Thomas Wellauer, Ph.D., head of corporate affairs at Novartis. “At our campus in Basel, together with the local authorities, we have set energy-efficiency standards for future Novartis buildings.” The company also is in the process of overhauling its vehicle fleet, with the goal of reducing CO2 emission from about 23,000 vehicles owned or leased by units around the world by 10% by 2010, Dr. Wellauer says. The vehicle fleet in Europe is changing to 100% diesel with mandatory particle filters and in the United States to 40% hybrid or fuel-efficient cars. By the end of 2008, the company will have 1,310 fuel-efficient hybrid and diesel cars in the U.S. fleet, and it expects CO2 emissions from all vehicles to be 6% lower in 2008 than 2007. “We are also increasingly using renewable energy,” he says. “For instance, we are using wood chips at our site in Wehr, Germany, and solar panels are installed on the roofs of a growing number of Novartis buildings. We are also now in some instances using ground and river water for heating or free cooling. In total, including hydroelectric power, Novartis derives 30% of its energy from renewable sources.” Novartis’ goal is to supply campus buildings with 100% renewable, CO2-free energy. Electricity is gained mainly from waterpower, but also solar and wind energy. Cooling water is extracted from the nearby river Rhine. Heat is supplied by the waste incineration facility of Basel. The CO2-free vapor that is generated when incinerating waste is used for heating the buildings on campus. Overall, the company has in recent years halted any increase in its energy use and GHG emissions. “The carbon dioxide emissions from our operations are 1% lower now than in 2006, despite significant growth in our business,” he says. “We have an energy manager at all our major divisions and sites, and for several years we have been implementing projects to improve efficiency through lighting, temperature adjustments, and operational programs, among others initiatives.” In addition, Novartis has introduced several carbon-offset projects to help it reach its voluntary target of reducing CO2 emissions to 5% below the 1990 level by 2012. “One example of this is in Argentina, where we purchased 34 square kilometers of pastureland as the site of a project establishing a forest to sequester carbon,” Dr. Wellauer says. “Plantations were started during 2007, and in 2008 about 2.2 million young trees were planted. Ultimately, the goal is to establish a sustainable mixed forest with 75% native tree species. We received Forest Stewardship Council (FSC) certification for the plantation in February 2008, and we expect registration of this project under the United Nations’ Clean Development Mechanism (CDM) in 2009.” A second carbon-offset project sponsored by Novartis is a jatropha plantation and bio-diesel project in Mali, West Africa. “The seeds of this shrub contain a high proportion of oil that can be used for making biodiesel fuel,” Dr. Wellauer says. “A natural fertilizer and potentially biogas energy also can be produced from the residues. The project involves local villages and is intended to not only generate carbon certificates but also improve the economies for local people.” Roche hen Roche spoke to PharmaVOICE in 2007 about its green initiatives, it highlighted several, including cogeneration, retro-commissioning, and fuel-efficient vehicles. All of those programs and others have continued and advanced in the past year. “We have improved the efficiency of the cogeneration system in our Nutley, N.J., location, and we have some ideas as to how to improve it still further,” says Jack Kace, Eng. Sci.D., VP of corporate environmental and safety affairs at Roche. “We also have cogeneration in another Roche facility in Pleasanton, Calif.” The company is also hoping that the revised New Jersey energy master plan will provide incentives for cogeneration, possibly resulting in another cogeneration installation in New Jersey. The company has extended its fuel-efficient vehicles program to other Roche facilities in the United States. The Indianapolis facility, which is where the company’s diagnostics operation is based, has incorporated hybrids into the fleet, and since snow necessitates the use of four-wheel-drive vehicles, the operation has adopted the Ford Escape hybrid four-wheel-drive. In addition, the facility is replacing 6-cylinder vehicles with 4-cylinder models. Another green initiative is the adoption of solar photovoltaic systems. “We’re using two different models,” Dr. Kace says. “We recently put in a Roche-owned solar photovoltaic system at our Nutley facility. The system provides enough electricity to supply four households with electricity for a year. It’s a small facility, but it is cost-effective because of rebates from the state to encourage solar photovoltaic usage.” At two other larger sites — Branchburg, N.J., and in Pleasanton, Calif. — Roche is using a different model. “There we’ve entered into a purchase power agreement where we are essentially allowing a third party to come in and install solar PV cells on our rooftops, and we’ve agreed to a long-term commitment to purchase the electricity that’s generated from those solar PV cells at a reasonable rate,” Dr. Kace says. Kathy Monday, VP, Customer Product Support and Business Services, AstraZeneca; Jeff Dayton, State Director for Delaware Congressman Mike Castle (R); and Arnie Caine, VP, Business Services, AstraZeneca, discuss the Delaware-based company’s LEED certification for sustainable design. More efficient lighting systems, such as those installed in Baxter’s manufacturing plant in Marion, N.C., are among the technology upgrades the company is implementing to reduce energy consumption in its facilities worldwide. This wind turbine at GlaxoSmithKline’s Barnard Castle in Northern England is one of several initiatives undertaken to reduce the consumption of fossil fuels the site. In 2004, the site won first place for environment in GSK’s internal CEO’s Environment, Health and Safety awards for excellence. Goble & Associates employees were encouraged to sign up for one of three pledges during Earth Day week. Going Green Positively Impacts Employee Engagement and Opinions of Senior Management Kenexa Research Institute (KRI) findings state that more than 50% of workers care about working for a “green” organization. KRI evaluated workers’ opinions of their organizations with regard to “green” initiatives. The latest research suggests that an organization’s business choices that support the environment, such as recycling, energy conservation, and vendor selection have a significant influence on employees’ engagement levels and views of senior management. The report is based on the analysis of data drawn from a representative sample of workers surveyed through WorkTrends, KRI’s 2008 annual survey of worker opinions. “Worldwide, more and more organizations are ‘going green’ and are integrating this dedication into their strategic corporate initiatives,” says Anne Herman, research consultant at KRI. “Those organizations committed to the environment demonstrate this by routinely recycling, conserving energy, and working with vendors who share similar values. This sets them apart from their competition by creating a positive employment brand, and establishes an emotional tie between the employee and organization.” The results from the latest cross-culture study indicate that among the 13 countries surveyed, more than half (54%) of workers state their favorability with their organization’s participation in green initiatives. Workers in India (63%) have the highest level of favorability, while workers in Japan (40%) and Russia (42%) have the least favorable levels. Across all countries surveyed, the research indicates that working for an organization where employees positively view green efforts has a significant favorable impact on how they rate their pride in the organization, overall satisfaction, and willingness to recommend it as a place to work. Furthermore, employees with favorable opinions of their company’s green activities also have more favorable opinions of their management. They are much more likely to feel that senior managers have the ability to deal with company challenges, demonstrate that employees are important to the success of the company, and provide employees with a clear picture of the company’s direction. In addition, these employees are also more likely to believe that senior management supports and practices high standards of ethical conduct and is more trustworthy. When asked why they joined their organization, employees reported that one of the reasons was the organization’s reputation. Those who were favorable toward their organization’s green initiatives were more likely to indicate that their company’s reputation had improved in the past year compared with those employees who were unfavorable toward their company’s green practices. “Today’s employees are considering the reputation of an organization in their decision to join, and the positive influence of a company’s green policy relates to a more favorable reputation,” Ms. Herman says. “Earth Day serves as a reminder that organizations that participate in green initiatives are not only positive global environmental citizens, they increase their competitive advantage when hiring and retaining employees.” Source: Kenexa Research Institute. For more information, visit kenexa.com.

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