ISO 14000 Honeywell Case Study

Baxter is a leader in environmental management. The foundation of ISO 14000 and environmental management is awareness of the environmental impacts of company operations. Baxter's reporting demonstrates their efforts of being aware of their impacts and making that knowledge public. Here are some examples of the efforts they have made and the results they have achieved.

In their 1998 report Environmental, Health and Safety Performance Report, Baxter emphasizes their achievements in sustainable development:

Between 1996 and 1997, Baxter achieved more than a 42-percent reduction in toxic and Chlorofluorocarbon (CFC) air emissions per unit of production.

Baxter's total energy consumption increased one percent, as production was expanding, which reflected a four percent per-unit reduction. 1996-1997

Baxter recycled almost 59 million pounds of materials in 1997, including nearly two million pounds of paper.

In 1995, Baxter's environmental initiatives saved the company $15.2 million, and in 1996, $11 million. Savings were 79% of the cost of the programs in 1995 and 74% in 1996. Cost avoidance in 1995 from efforts initiated in prior years back to 1989 was $ 72.2 million, in 1996 it was $94 million. Program costs in 1995 were 0.3 percent of Baxter's sales and 0.4 percent in 1996.

From 1989 to 1996, total generation of hazardous and other regulated waste worldwide was lowered from more than 3.2 million pounds to 1.7 million pounds. This is a reduction of 48 percent, or 64 percent per unit of production. These reductions resulted in an annualized savings of $10 million from projects completed between 1989 and 1994.

For nonhazardous waste, from 1989 to 1996, Baxter reduced off-site disposal of nonhazardous waste worldwide 45 percent - from 76 million pounds to 42 million pounds. This equaled a 63-percent reduction per unit of production. A significant reduction was achieved by increasing waste recycling - from 35 million pounds in 1989 to 57.7 million pounds in 1996.

Waste Item	1994 Lbs. Recycled (000)	1994 Revenues ($000)	1995 Lbs. Recycled (000)	1995 Revenues ($000)	1996 Lbs. Recycled (000)	1996 Revenues ($000)
Cardboard	31,103	$410	15,300	$1,121	13,600	$80
Plastics	21,837	2,132	32,400	3,758	32,500	5,217
Pallets	13,653	541	6,500	37	5,500	133
Paper	3,035	30	1,800	23	2,500	(38)
Metals	1,540	109	1,400	129	1,200	143
Drums	583	30	600	23	600	11
Glass	350	1	400	-	500	(6)
Other	3,534	255	5,700	95	1,300	76
Unclassified	6,256	Not Reported
TOTAL SAVINGS	81,891	$3,508	64,100	$5,186	57,700	$5,616

A packaging innovation lightens the burden of medical waste disposal for customers, uses less material and reduces manufacturing costs. The bottom line: a 40 percent reduction in packaging - and an annual Baxter cost savings of just under $1 million.

Packaging was reduced in 1995 by 36 million pounds, resulting in a $6.6 million savings in 1995 alone, $41.2 million between 1991 and 1995.

Savings from energy conservation projects completed between 1992 and 1995 were $2.5 million. Savings for projects completed in 1995 were $400,000.

U.S. Sales and Services Divisions have saved $1.5 million annually by installing onboard computers to monitor idle time and speed control.

Baxter’s Environmental Financial Statement shows a trend of increasing benefits from environmental efforts and a positive cash flow:

(note: the following table reflects changes from the spin-off of Allegiance operations.)

ENVIRONMENTAL FINANCIAL STATEMENT	1996	1995	1994	1993	1992
Total Income, Savings and Cost Avoidance from Report Year's Initiatives	11.1	13.3	20.9	14.8	14.7
Cost Avoidance in Report Year from Efforts Initiated in Prior Year's Back to 1989	93.5	81.3	73.7	52.2	16.3
Total Income, Savings and Cost Avoidance	104.6	94.6	94.6	67.0	31.0
Total Environmental Costs	19.6	20.7	20.7	22.7	28.0
Net Benefit (cumulative)	85.0	62.2	60.5	44.3	3.0

Detail on 1996 Activities	Savings & Income	Cost Avoidance	Total Financial Benefit
Ozone-depleting substances Cost Reduction	0.3	0.3	0.6
Hazardous Waste - Disposal Cost Reduction	(0.3)	0.1	0.2)
Hazardous Waste - Material Cost Reduction	(0.3)	0.1	(0.2)
Nonhazardous Waste - Disposal Cost Reduction	(1.9)	1.0	(0.9)
Nonhazardous Waste - Material Cost Reduction	(1.3)	2.6	1.3
Recycling Income	5.6	na	5.6
Green Lights Energy Conservation - Cost Savings	2.5	na	2.5
Packaging Cost Reductions	2.4	na	2.4
TOTAL SAVINGS	7.0	4.1	11.1

ISO 14000 ISO 14000 ISO 14000 ISO 14000 ISO 14000 ISO 14000 ISO 14000 ISO 14000 ISO 14000 ISO 14000 ISO 14000 ISO 14000 ISO 14000 ISO 14000

	Reduction Goal Per-Unit of Production	Base Year	Estimated Annual Savings and Cost Avoidance in 2005
Reduce air toxic emissions	80%	1996	$4 million
Reduce hazardous and regulated waste generation	35%	1996	3
Reduce nonhazardous waste generation	35%	1996	25
Improve energy efficiency	10%	1996	13
Reduce packaging materials	20%	1995	35

ISO 14000 and Environmental Management Case Studies

ISO 14000 and Environmental Management
Case Studies