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Article

June 10, 2015

Baxter's Commitment to Innovative Programs and Advancing Its Sustainability Priorities Featured in Sixteenth Report

Baxter today issued its 16th annual Sustainability Report detailing the company's progress creating social, environmental and economic value by addressing the needs of stakeholders worldwide.

PRESS RELEASE

DEERFIELD, Ill.--(BUSINESS WIRE)--Jun. 10, 2015-- Baxter International Inc. (NYSE: BAX) today issued its 16th annual Sustainability Report detailing the company's progress creating social, environmental and economic value by addressing the needs of stakeholders worldwide.

Baxter's 2014 Sustainability Report, available at baxter.com/sustainability-report, highlights recent actions taken by the company that align with its nine sustainability priorities, which include strengthening access to healthcare, creating an inclusive workplace and enhancing math and science education. Priorities also include a range of environmental initiatives such as reducing greenhouse gas emissions, waste generation, and water use. Baxter's Sustainability Report is aligned with the Global Reporting Initiative G3 Guidelines, which provide a uniform and transparent set of metrics to systematically report on sustainability initiatives and results.

''Baxter's accomplishments and aspirations as a corporate citizen depend on our sustainability as a business,'' said Robert L. Parkinson, Jr., Baxter's chairman and chief executive officer. ''As a healthcare industry leader, we must constantly advance and innovate to create lasting social, environmental and economic value for the communities we serve worldwide.''

The company's wide-ranging 2014 highlights include its proactive, strategic approach to product donations. This approach ensured that Baxter products were among the first shipments to arrive in Sierra Leone and Liberia to assist with medical needs surrounding the Ebola outbreak in 2014, and more recently in Nepal to assist medical professionals in response to the earthquake that struck in April 2015. Baxter works primarily with its humanitarian aid partners, AmeriCares and Direct Relief, to pre-position products for emergencies as well as ongoing needs in underserved communities. This approach to product donations improves the efficiency and effectiveness of the process and facilitates timely, targeted support to communities in need as well as enhances the ability of our partner organizations to plan and respond to emergencies.

Additionally, Baxter has reduced its net greenhouse gas emissions (GHG) from operations by 8 percent on an absolute basis since 2005, a 41 percent reduction when indexed to revenue during that time period. The company's approach to managing and reducing GHG emissions from operations includes a matrix of 18 strategies including a robust energy management program, switching to lower-carbon fuels, cogeneration of electricity and heat, installation of onsite renewable energy systems, procurement of electricity generated from 100 percent renewable power and building high-performance green buildings. For example, Baxter's Grosotto, Italy, facility switched from using fuel oil to renewable biomass from local wood sawdust and scrap wood chips to generate steam for the manufacturing process; and its Cuernavaca, Mexico, facility is now using lower carbon natural gas rather than fuel oil in its boilers.

Currently anticipated for July 1, 2015, Baxter intends to separate into two independent global healthcare companies - one focused on lifesaving medical products that will retain the Baxter name, and the second, the newly created Baxalta Inc. ("Baxalta"), focused on developing and marketing innovative biopharmaceuticals. Each company will have a sustainability strategy reflecting its unique goals and priorities while carrying forward Baxter's legacy of commitment to sustainability.

Baxter Recognized as a Leading Employer and for Social Responsibility Initiatives

For the 14th year in a row, Baxter was included in Corporate Responsibility magazine's 100 Best Corporate Citizens list for its corporate social responsibility performance. The annual survey draws from U.S. firms in the Russell 1000 Index and is based on more than 300 data points of publicly available information in seven categories: environment, climate change, employee relations, human rights, governance, finance and philanthropy.

Baxter also received recognition from several organizations for its commitment to providing a great place for its employees to work and develop. Baxter was recently named:

  • To the sixth position of 500 companies on Forbes' list of America's Best Employers, chosen based on a survey of employees.
  • One of DiversityInc's 25 Noteworthy Companies for strength in talent pipeline, equitable talent development, CEO/leadership commitment and supplier diversity.
  • One of the Top 50 Employers by the readers of Woman Engineer magazine.
  • A leading employer in China by Aon Hewitt in its ''Best Employers - China 2015'' report.

Baxter Promotes Ethics and Compliance

As part of Baxter's commitment to build on its strong foundation of integrity and compliance in its culture, the company recently hosted its second annual Ethics and Compliance Week (E&C Week) to focus on the importance of ethics and compliance in the workplace. The event underscores the company's Code of Conduct, policies, training and other programs used year-round to guide employees in making ethical business judgments and taking appropriate, lawful actions when needed.

''Baxter's strong compliance track record is the result of the collective efforts of our employees,'' said Joe Spiegler, Baxter's associate general counsel and vice president, ethics & compliance. ''Our vision is for compliance to help create a competitive advantage - to increase engagement of our employees and strengthen relationships with customers based on trust, transparency, responsibility and integrity.''

This year's E&C Week featured remarks by both Robert L. Parkinson, Jr., Baxter's chairman and chief executive officer, and Ludwig Hantson, current president of Baxter's BioScience business who will become Baxalta's chief executive officer upon completion of the spin-off. Activities also included a panel discussion with senior leaders from both Baxter and Baxalta about compliance as a competitive advantage, employee testimonials on the importance of approaching work with integrity, and the introduction of a new Employee Guide to Compliance Resources. Additionally, the company solicited nominations for its Ethics and Compliance Awards Program to recognize teams and individuals who excel in upholding Baxter's Code of Conduct.

Open communication is central to Baxter's commitment to integrity. The company offers numerous channels to educate and counsel employees as well as confidential avenues to report suspected violations of law and policy, which it investigates promptly and reports to senior management as appropriate.

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