Environmental Sustainability in GSK

1
Environmental Sustainability in GSK

• Mark Rhodes
• Corporate Environment, Health and Safety
• GlaxoSmithKline

2
Who we are

• One of the worlds leading producers of
  prescription medicines, vaccines and consumer
  healthcare products
• 100,000 employees in 117 countries
• Annual Corporate Responsibility Report with
  extensive environmental data
• Corporate EHS and myself

3
What is Sustainability

• UN (Gro Brundtland) global perspective
• Allow future generations to achieve at least the
  same standard of living that we enjoy while
  improving the condition of the current generation
• Triple Bottom Line industry perspective
• Economic, social and environment
• GSK perspective
• Good for our patients, customers, company,
  employees, communities and the environment

4
Characteristics of a Sustainable Company

• Mission broad and flexible
• RD provide needed products for a global
  economy and evaluates the life cycle impacts of
  their products
• Manufacturing utilise efficient processes that
  use sustainably sourced materials. Provide
  products in superior, optimised packaging that is
  recyclable and uses recycled materials
• Commercial educates customers about GSK product
  benefits while demonstrating the contributions of
  our supply chain that is the most efficient,
  safe, and environmentally responsible in the
  industry
• People provide a safe, supportive environment
  that encourages innovation, resilience and
  productivity
• Customers understand their current and future
  product needs
• Communities maintain transparency and external
  stakeholder engagement

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GSK EHS Framework for Sustainability
Through this framework we influence behaviour at
both the corporate and individual level
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RDs Sustainability Approach for Manufacture of
New Products

• Sustainable Chemistry (Build in not bolt on)
• First Step (Improve efficiency)
• Improvement Target for new products from 2006 to
  2010
• Reduce waste per unit of product by 50
• Reduce natural resource consumption per unit
  product by 50
• Use materials that are less hazardous
• Embed inherent safety into the processes

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Better Products by Design
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FLASCTM

• Estimates the Life Cycle environmental impacts of
  materials
• The FLASC score allows for Greenness
  Comparisons of
• different routes to the same API or routes to
  different APIs.
• Avoids hidden impacts e.g., with outsourcing
• Normalises for differences in the complexity of
  the API
• Shows percent improvement between different
  options
• Enables What-if comparisons

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Example of output for FLASCTM
Score 1 to 5 (HIGH is GOOD)
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Dutasteride, a treatment for benign prostatic
hyperplasia

• RD Stevenage and Cork manufacturing teams have
  improved the process which
• improved the material efficiency from 1 per cent
  to 3.7 per cent, saving up to 5.7 million/year
• saves energy the chemical reaction now requires
  only four hours at 86C compared to 22 hours at
  100C previously
• vastly reduced the use of solvent and therefore
  waste
• reduced waste by 70, which avoids up to 80
  tonnes of waste per annum
• is more robust than the previous process,
  resulting in less waste through failed batches
• reduces exposure of employees to hazardous
  materials

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Product StewardshipPharmaceuticals in the
Environment

• Public and media concern for PiE
• GSK responding by research and publications of
  results

Regulatory review EA for NDAs for FDA ERAs for
MAAs for EMEA
GSK and Pharmaceuticals in the Environment
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Sustainability in Manufacturing

• Improvement Targets
• Second Generation Process Improvement
• Soon after product launch
• Contract Manufacturers
• Reputational and product interruption

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2010 EHS Targets (from a 2006 baseline)

• EHS Audit Scores
• Facility Audit (Average for all GSK) 6
  improvement
• Minimum Audit Score (GSK and Contract
  manufacturers) 70
• Health and Safety
• Reportable Injury Illness (total
  ergo) 5/yr reduction
• Chemical Exposure at Unit Operations (for OHC
  3,4,5) 80 respirator-free
• Energy and climate change (pro-rated on sales)
• Energy Efficiency 20 reduction
• Greenhouse gas emissions (global warming
  potential) 20 reduction
• Environment (pro-rated on sales)
• Wastewater (organic waste COD) 3/yr
  reduction
• Water consumption 2/yr reduction
• Air (volatile organic emissions) 2/yr
  reduction
• Solid Waste (non-hazardous) 1/yr reduction
• Environmental Sustainability
• Ozone Depletion (CFC 11 and 12 use) 100
  elimination
• Material Efficiency of new processes for API
  (ave. 2006-2010) 100 improvement

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Environmental PerformancePercentage Change 2005
to 2006 per sales
Hazardous waste disposed
Water consumption
Energy consumption
Non-hazardous waste disposed
Wastewater chemical oxygen demand
Volatile organic compound emissions
15
Pack innovation
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Supply Chain Contract Manufacturing

• Objective
• Manage reputation
• Avoid product supply interruption
• Green the supply chain
• Audits
• Audited before selection
• Covers environment, health, safety, loss
  prevention, human rights
• Must achieve minimum audit scores equivalent to
  GSK operations
• Periodic audits against company standards
• Partnerships
• Higher rejection rate among contract
  manufacturers in certain developing countries
• Work with selected contract manufacturers to
  upgrade performance
• Reporting
• Hope in the future to report the aggregate EHS
  performance annually

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GSKs contribution to global warming
6,742 million kilograms of CO2 equivalent in
2006

• CO2 is the way global warming potential (GWP) is
  measured

GSK
33,200 million kilograms of CO2 equivalent in
1998 from inhalers
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Climate Change

• Continuing the effort to address energy
  conservation and related impacts
• Targets from 1995 to 2000 (energy) and from 2001
  to 2005 (energy and GWP)
• Responding to public concern
• New Targets
• Operational Energy and Global Warming Potential
  (both relative to sales from a 2006 baseline)
• 20 before end of 2010 and
• 45 by the end or 2015
• Funding
• A new, special fund of both capital investment
  and operating expenses to support energy
  efficiency and renewable energy projects (to
  2015)
• Position paper
• To address concerns of stakeholders GSK and
  Climate Change
• Product Stewardship
• Research options to inhaler propellant used in
  products
• Add information re 1998 CFC MDIs GWP vs today

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Sustainability and GSK Investor Ratings

• Business in the Environment
• Premier League 2002-2005
• Platinum level - 2006
• Dow Jones Sustainability Index
• 2003-2006
• FTSE4Good
• 2001-2006
• Carbon Disclosure Project
• Climate Leadership Index 2005/6
• Global 100 Most Sustainable Corporations in the
  World
• 2005, 2006

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Further information

• GSK's position paper on Climate Change
• GSK position paper on Pharmaceuticals in the
  Environment
• GSK 2006 Corporate Responsibility Report (pages
  60-81 cover our environmental performance)
• GSK reporting of key environmental issues