Environmental Sustainability

Environmental Sustainability

Climate Change &
Energy Use

Climate Change &
Energy Use
Environmental Sustainability
Main

Scientific data support that climate change is occurring, and we are taking action to reduce the future economic and public health risks associated with a changing climate.

We have made it a priority to reduce our demand for energy, and have taken steps to establish responsible internal policies and practices focused on reducing energy use at all sites and greenhouse gas (GHG) generation throughout the company. By taking these steps, we are not only minimizing GHG emissions but also reducing our operating costs and mitigating the business impacts expected to be associated with future climate change requirements.

CDP-Climate

We report our GHG emissions as required by regulations in certain countries and annually through CDP (formerly Carbon Disclosure Project). Our CDP score for carbon reporting has improved each year since 2008, when CDP scoring began. The report we submitted to CDP in 2015, which reflected our 2014 performance data, received a score of 99B. The number 99 is a reflection of our disclosure on a scale of 0 to 100, with 100 being the highest. The letter B is a reflection of our performance on a scale of A to E, with A being the highest.

In 2015, we were identified as a U.S. leader for the quality of climate change information we disclosed to investors and the global marketplace, and were awarded a position on CDP’s S&P Climate Disclosure Leadership Index (CDLI). Those organizations graded within the top 10 percent of CDP reporting entities constitute the CDLI.

NOTE: Scope 2 Market-based value is 638,400 metrics tons CO2e in accordance with the Greenhouse Gas Protocol.

 

To see all of our Scope 1, 2 and 3 GHG data, click here.

We track the generation of five GHGs associated with operating our facilities and our fleet:

  • Carbon dioxide (CO2)
  • Methane
  • Nitrogen oxide
  • Hydrofluorocarbons
  • Sulfur hexafluoride

We have established and met several GHG-reduction goals over the last decade. Our original goals of achieving a 15 percent absolute reduction of our Scope 1 and 2 GHG emissions between 2012 and 2020 was met and exceeded in 2015, with a reduction of 22 percent.

Energy-efficiency and demand-reduction projects at multiple sites contributed to lowering our energy consumption and reducing our direct GHG emissions. The most significant contributors to decreasing our GHG emissions were demand reduction/conservation; consolidation of our office, lab and manufacturing spaces; and the shifting of some power supplies from purchased electricity to electricity generated on-site through combined heat and power systems.

 

Initatives

Our company has launched initiatives around the world to improve energy use, reduce greenhouse gas (GHG) emissions from our operations and understand our supply chain–related impacts.

Our Energy Center of Excellence (CoE) identifies, shares and standardizes best practices, and prioritizes the funding of energy projects to reduce energy usage across the company. While we have implemented some renewable-energy projects, our program emphasizes energy efficiency and conservation, because using less energy provides a better balance of business needs and environmental impact reduction. Our manufacturing facilities, warehouses, laboratories, major offices and vehicle fleet are the primary targets of our energy-demand-reduction programs, as they represent the majority of our energy consumption.

We have established an Energy Capital Fund of up to $10 million per year in order to transition to more energy-efficient technology and to better position the company to respond to energy demands in the future. In 2015, we spent $8 million on projects, that resulted in $3.4 million in annual savings and a reduction of more than 13,700 metric tons of carbon dioxide from our facilities.

Facilities

We strive to make our facilities as energy efficient as practical.

  • When we purchase facilities, we evaluate them for energy efficiency and assess them against our best practices as part of their integration into our company
  • We require all new facilities to comply with our Energy Design Guide and Energy Conservation Planner
  • We build all new laboratories and offices following cost-effective energy-efficient practices. We have several facilities that are LEED-certified
  • In November 2015, our China Head Office was certified as a LEED Gold Project

Since 2010, we have conducted “Energy Treasure Hunts” at 13 of our facilities around the world. During these events, participants spend three days looking for opportunities to reduce demand for both energy and water. This process has identified over 1,000 energy-efficient project opportunities, many of which have been successfully implemented.

  • In 2015, we conducted two formal Energy Treasure Hunts at facilities in Spain and Singapore. During the Singapore event, we identified optimization opportunities for a chiller system that could reduce energy use by 14 gigawatt-hours of energy per year.
  • The Spain event identified opportunities to upgrade the process water system by adding variable-frequency drive pumps and reducing temperature set points, both of which generated savings in electricity, steam and chilled water.
  • One of our facilities in the Netherlands was inspired by the United Nations Climate Change Conference in Paris to conduct a “mini” treasure hunt event in December 2015. The treasure hunt uncovered “quick wins” including repairing missing insulation, turning off lighting in unoccupied work areas, and updating equipment maintenance schedules.
  • The Energy Center of Excellence hosts a “Treasure Hunt Online” to help generate energy-savings ideas that can be shared with all our sites

All of our employees have access to a training curriculum that allows them to learn more about energy management and energy systems. Through this program, employees can earn an energy manager certification.

Work Practices

Our company takes advantage of technology advances in order to save energy, time and money while also reducing emissions.

  • Site energy use is tracked monthly by our Energy Center of Excellence (CoE) through a centralized system
  • Employees are encouraged to make use of e-meetings whenever possible, as opposed to traveling for business
  • A “Rail Travel” option is included in our online business-travel booking tool to make it easier to travel by train when appropriate. Traveling by train has a smaller carbon footprint than traveling by either airplane or personal vehicle
  • The carriers who transport our products use alternatives to air freight whenever practical. In 2015, 52 percent (by weight) of our products were shipped by ocean freight, which reduces the amount of transportation-related GHG emissions by over 90 percent as compared to air shipping

Renewable Energy

Photovoltaic (PV) arrays, wind turbines and other renewable-energy installations help reduce energy-demand peaks and postpone or avoid adding new power plants. We have several sites in Australia, Italy and the United States that host renewable installations.

One site in Pennsylvania has a combination green and solar-photovoltaic roof. In addition to generating approximately 25 megawatt hours (MWh) of electricity per year, the roof’s 9,000 square feet of green plants provide insulation to the building, extend the roof’s life by protecting it from ultraviolet (UV) light, and reduce the impacts of storm-water runoff by capturing 90 percent of rainwater.

While renewable energy accounts for a very small percentage of the electricity we consume (less than 1 percent), we have initiated an analysis of our U.S.-based sites to look for new installation and power-purchase contract opportunities.

Vehicle Fleet

Approximately 10 percent of our GHG emissions are associated with our vehicle fleet. We calculate our fleet’s GHG emissions on the basis of estimated fuel economy and actual total miles driven.

  • We have reduced our number of sales fleet vehicles on the road by over 2,000 vehicles since 2012.
  • In an effort to improve fuel efficiency, we have converted our U.S. Human Health sales fleet from cars with six-cylinder engines to cars with four-cylinder engines, replaced eight-cylinder-engine trucks with six-cylinder-engine trucks, and introduced an all-wheel-drive (AWD) sedan option to replace AWD sport utility vehicles.
  • Our European Union (EU) fleet continues to convert to the use of more fuel-efficient vehicles. We met the 2015 EU target of having a fleet average emission rate of 130g CO2/km, and are on track to meet the EU target of 95g CO2/km by 2020. In 2015, our EU average emission rate was 107g CO2/km.

Partnerships

We have a long-standing partnership with the U.S. Environmental Protection Agency’s (EPA) Energy Star program. This partnership provides a broad energy-management strategy that serves as a useful framework for measuring our current energy performance, setting goals, tracking savings and rewarding improvements. In April 2016, U.S. EPA again recognized our company with the Sustained Excellence Award. This is the 11th consecutive year in which we have been recognized by ENERGY STAR for excellence in energy management. We also received several facility-specific awards from EPA in 2016:

  • Our Puerto Rico facility was awarded the ENERGY STAR Pharmaceutical Energy Performance Indicator Award by U.S. EPA for superior energy efficiency and environmental performance among U.S. pharmaceutical manufacturing plants
  • Two office buildings in New Jersey and one in Pennsylvania earned ENERGY STAR Portfolio Manager Awards from U.S. EPA for being in the top quartile of their sector

In 2015, one of our facilities in Singapore received the Energy Efficiency National Partnership Award from the Singapore National Environment Agency for excellence in energy management for the second consecutive year.

For more information on our awards, click here.

Performance
Energy Use & GHG Summary1
20112012201320142015
Total energy (GJ)25,789,70024,787,40024,195,90022,245,00021,326,900
Total Scope 1 and 2 greenhouse gas (GHG) emissions (MT CO2e)2,31,951,0001,872,0001,772,0001,643,0001,453,000
Total Scope 3 greenhouse gas (GHG) emissions (MT CO2e)N/AN/AN/A5,760,0005,261,700
N/A: Not available
Note: Scope 3 data prior to 2014 was limited to business travel only. See below for details.
1 In accordance with the Greenhouse Gas Protocol, prior-year data have been adjusted to add or remove facilities that have been acquired or sold. Adjustments also reflect changes in methodology to ensure consistency from year to year.
2 Reported using Scope 2 location-based value is 588,300 metric tons CO2e in 2015, in accordance with the Greenhouse Gas Protocol.
3 Scope 2 market-based value is 638,400 metric tons CO2e in 2015, in accordance with the Greenhouse Gas Protocol.
Scope 1 & 2 Energy Use (% of total)1
20112012201320142015
Natural gas (Scope 1)58%58%59%60%60%
Purchased electricity (Scope 2)2,324%25%23%24%25%
Fleet fuel (Scope 1)14% 13%12%11%10%
Purchased steam (Scope 2)2%3%4%3%3%
Fuel oil (Scope 1)2%1%2%2%2%
Spent solvents (Scope 1)0.2%0.3%0.1%0.2%0.1%
Coal (Scope 1)0.0%0.0%0.0%0.0%0.0%
1 May not add to 100 percent due to rounding.
2 Reported using Scope 2 location-based value in accordance with the Greenhouse Gas Protocol.
3 Includes solar, wind and other renewables generated on-site where renewable energy credits have been sold.

From 2014 to 2015, we made great strides and reduced our year-over-year Scope 1 and Scope 2 GHG emissions by 11 percent. While we are proud of our achievement in reaching our absolute GHG reduction goal early, we will continue our emission reduction activities as we investigate and set new goal(s).

In an effort to continuously improve our climate change and energy-use disclosure, we have expanded our 2015 Scope 3 reporting. We have used primary data along with an economic input-output model based on our third-party spend data. Reductions in Scope 3 emissions from 2014 to 2015 resulted from reduced spend on goods and services as well as a reduction in fuel use and waste generation. Scope 3 categories that grew in 2015 were due to an increase employee business travel and an increase in the sales and use of our inhaler-based products, which contain propellants with global warming potential.

Scope 3 GHG Emissions (MT CO2e)
Scope 3 GHG Details (MT CO2e)20112012201320142015
Total Scope 3137,200127,000310,1005,760,0005,261,700
Purchased goods and
services1, 2
N/AN/AN/A4,437,7003,408,500
Capital goods1,3N/AN/AN/AN/A474,000
GHG emissions from fuel and
energy-related activities not
included in Scope 1 & 22,4,5
N/AN/AN/A309,500276,200
Upstream transportation and
distribution1,2
N/AN/AN/A258,000241,700
Waste generated in operations
(excluding recycled &
composted waste)2,5,6,7
N/AN/AN/A23,50020,600
GHG emissions related to
employee business travel8,9
137,200127,000123,200182,600283,300
Employee commuting2N/AN/AN/A320,700302,400
GHG emissions from use of
sold products10,11
N/AN/A186,900228,000255,000
Note: Limited Data Assurance was granted for emissions calculated from primary travel vendor data and employee reimbursable travel mileage data. The total reported here includes non-primary travel vendor data emissions which were based on our 2015 third party spend data and an Economic Input-Output Model performed by Climate Earth, Inc.
1 Based on third-party spend data and an economic input-output model performed by Climate Earth, Inc.
2 Data not available before 2014.
3 Data not available before 2015.
4 Emission factors from Argonne National Laboratory's GREET Model were used in conjunction with primary fuel and energy-use data.
5 Data as reported historically, not baseline adjusted.
6 Primary-waste data were used with the U.S. EPA’s WARM Model.
7 Including recycled and composted waste in these calculations, would result in negative emissions in both 2014 (-39,900 MT CO2e) and 2015 (-40,200 MT CO2e).
8 Based on primary travel vendor data, employee-reimbursable mileage and UK Defra factors (https://www.gov.uk/government/collections/government-conversion-factors-for-company-reporting#conversion-factors-2015).
9 Beginning in 2014, emissions are based on primary vendor data where available and economic input-output modelling performed by Climate Earth, Inc., using spend data.
10 Assumes that all HFC-containing devices shipped for sale were consumed. The amount and identity of HFC in each product is calculated and multiplied by the appropriate global warming potential (GWP) to determine the CO2e released as a result of product use.
11 Data not available before 2013.

Our analysis shows that our Scope 3 GHG emissions impacts are greater than our combined Scope 1 and Scope 2 emissions. We are working to reduce those impacts through activities such as reducing waste in our operations, reducing fuel use and looking for opportunities to shift from air shipping to ocean transport when practical. These actions not only reduce our environmental impact but benefit the business by reducing costs. In 2015, we initiated data-gathering with key external suppliers to understand their GHG emissions and reduction programs. We hope that this data will allow us to find opportunities to work with the external suppliers to reduce our combined environmental footprints.

For more information on our GHG emissions, please see our CDP Climate report here.