ISO 14000 and Environmental Management
Case Studies


Baxter International Inc.

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:

ISO 14000, Environmental Management, Sustainability Between 1996 and 1997, Baxter achieved more than a 42-percent reduction in toxic and Chlorofluorocarbon (CFC) air emissions per unit of production.

ISO 14000, Environmental Management, Sustainability Baxter's total energy consumption increased one percent, as production was expanding, which reflected a four percent per-unit reduction.  1996-1997

ISO 14000, Environmental Management, Sustainability Baxter recycled almost 59 million pounds of materials in 1997, including nearly two million pounds of paper.

ISO 14000, Environmental Management, Sustainability Packaging decreased one percent, or one million pounds - 1996-1997.

ISO 14000, Environmental Management, Sustainability Baxter's Sustainable Development Goals for the Year 2005 are:

  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

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.

The following chart shows the results of recycling nonhazardous wastes:

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    
Undisplayed Graphic  TRANSFORMATION STRATEGIES:  Return to Case Studies--Home
Copyright 1996-1999 Transformation Strategies, All Rights Reserved