Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product Stewardship
• Employees
• Access to Healthcare
• Community Engagement
• Ethics and Compliance
• Sustainable Manufacturing and Operations
• Supply Chain
• Public Policy

Environmental Achievements

• Reduced net GHG emissions from operations by 40% indexed to revenue compared with 2005.
• Increased total facility energy usage of renewable power to 24% (of total), exceeding the 20% goal.
• Reduced water usage by 33% compared with 2005, indexed to revenue.
• Reduced the amount of packaging sent to customers by nearly 6,050 metric tons, exceeding its goal.
• Reduced plastic scrap per unit of production by 9%, compared with 2011, at 20 sites.

Social Achievements

• Launched Inclusion Impact series for managers to build inclusive capabilities.
• Improved recordable case rate by 17% compared with 2014.
• Initiated the worldwide launch of its Global Interactions Policy with the medical community and government officials.
• Contributed more than $8 million in products to 61 countries.
• Expanding Minds with Real-World Science program reached nearly 20,000 students and more than 175 teachers.

Governance Achievements

• Initiated the worldwide launch of its Global Interactions Policy with the medical community and government officials.
• Introduced the iInteract tool in the US to provide greater transparency and increased reporting for financial interactions with the medical community.
• Supported Mexican Association of Innovative Medical Devices Industries as co-host of the AdvaMed Latin America Compliance Conference.

Climate Goals & Targets

Environmental Challenges

• Did not achieve its 2015 goal for U.S. car fleet greenhouse gas emissions reduction due to several requirements when purchasing vehicles.
• Did not meet its 2015 goals for energy usage, GHG emissions, water usage and total waste, indexed to revenue, due to a 7% decrease in revenue in 2015 compared with 2014.
• Increased total waste by 1% during 2015 compared with 2014 due to changes in manufacturing and materials requirements processes.

Mitigation Strategies

• Implemented 129 energy-conservation projects that saved more than $2.8 million and 97.8 trillion joules of energy.
• Implemented water recovery and reuse projects at several facilities.
• Continued to deploy a system to ensure that all EHS incidents are categorized according to potential severity.

Supply Chain Management

Supplier Audits: 26 out of 74 applicable facilities in 2015

Responsible Procurement

• Global Supplier Sustainability Program
• Sustainability incorporated into requests for proposal and supplier contract templates

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines (undeclared)

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: Bureau Veritas North America, Inc.

Sustainable Products & Innovation

• Viaflo product overpouch size reduction
• Spectrum Infusion System packaging update

Environmental Metrics

ESG Focus Areas

• Product quality and patient safety
• Sustainability
• Workplace culture
• Ethics and compliance
• Employee health and safety
• Responsible procurement and logistics
• Access to healthcare
• Community engagement

Environmental Achievements

• Reduced plastic scrap per unit of production by 5% at 17 sites
• Reduced absolute GHG emissions by 3%
• Achieved landfill diversion rates of 95% or higher at 30% of manufacturing locations
• Reduced energy use by 1% indexed to revenue
• Reduced water use by 1% indexed to revenue
• Increased renewable power use to 73% of total electricity in Europe

Social Achievements

• Achieved a 22% decrease in product complaints
• Improved employee engagement score (though below top quartile)
• Recordable case rate decreased by 19%
• Increased participation in health promotion programs to 38%
• Launched the “Driving Your Health” mobile health initiative in Mexico City
• Donated nearly $14 million in products to relief partners

Governance Achievements

• Zero corruption-related enforcement actions
• Favorable ratings on employee survey questions related to ethics culture
• Refreshed Code of Conduct and provided related training to all employees

Climate Goals & Targets

Environmental Challenges

• Increased major incidents compared to 2015
• Increased total waste generation by 2% indexed to revenue
• Employee engagement score 4 percentage points below top quartile
• Wastewater compliance issues (60% of self-reported environmental incidents)
• Challenges in further reducing water usage due to business growth and process changes

Mitigation Strategies

• Launched a new Safety Alert system
• Implemented 212 energy conservation projects
• Implemented water recovery and reuse projects
• Systematic wastewater risk management program
• Refined approach to performance feedback and ratings, updated tools and trainings

Supply Chain Management

Supplier Audits: 5 audits conducted in 2016

Responsible Procurement

• Supplier Quality Standards and Ethics and Compliance Standards for Suppliers
• Supplier Corporate Responsibility Survey

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines

Certifications: ISO 14001, OHSAS 18001, ISO 50001

Third-party Assurance: Bureau Veritas North America, Inc.

Sustainable Products & Innovation

• AMIA Automated Peritoneal Dialysis System
• SHARESOURCE remote patient management system
• MiniCaps disposable product

Environmental Metrics

ESG Focus Areas

• Product quality and patient safety
• Sustainability across the product life cycle
• Employee health and well-being
• Ethics and compliance
• Healthcare access and affordability
• Community support and volunteerism
• Diversity and inclusion
• Supply chain sustainability
• Environmental footprint reduction

Environmental Achievements

• Reduced absolute greenhouse gas emissions by 17% versus 2015
• 30% of energy use from operations in 2017 was from renewable resources
• Reduced energy use by 5%, water use by 5% and total waste generation by 4%, all indexed to revenue
• Reduced plastic scrap per unit of production by 4% compared to 2016 at 20 sites
• Reduced packaging globally from products shipped to customers by 870 metric tons since 2015
• 18 manufacturing sites achieved landfill diversion rates of 95% or higher

Social Achievements

• Driving Your Health program increased access to care for more than 23,000 people in disadvantaged communities
• Reduced recordable case rate by 27% year over year
• Employee engagement score was 5 percentage points above the global average
• Improved Best Place to Work survey scores in all main areas assessed
• Donated nearly $9 million in products to donor partners

Governance Achievements

• Zero corruption-related enforcement actions in 2017
• Favorable ratings on employee survey questions related to ethics culture

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to Hurricane Maria in Puerto Rico
• Wastewater compliance issues
• Increasing demands on employees to manage personal and work lives
• Growing water issues worldwide
• Climate change posing risks for humans and natural ecosystems

Mitigation Strategies

• Mobilized global team to help Puerto Rico employees and community
• Implemented systematic wastewater risk management program
• Provided employees with greater flexibility to work outside the office
• Implemented numerous projects to reduce water use in São Paulo, Brazil
• Focus on energy efficiency, renewable energy, and waste reduction

Supply Chain Management

Supplier Audits: 8 audits in 2017

Responsible Procurement

• Supplier Quality Standards
• Ethics and Compliance Standards for Baxter Suppliers
• Global Human Rights Policy
• UK Labor Standards Assurance System

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (e.g., hurricanes, earthquakes)

Reporting Standards

Frameworks Used: GRI 2016 Sustainability Reporting Standards, UN Sustainable Development Goals

Certifications: ISO 14001, OHSAS 18001, ISO 50001

Third-party Assurance: Bureau Veritas North America, Inc.

Sustainable Products & Innovation

• Automated Peritoneal Dialysis Cycler Amia (lighter and smaller)
• Sharesource remote patient management system

Environmental Metrics

ESG Focus Areas

• Patient safety and quality
• Growth through innovation
• Best place to work
• Industry-leading performance
• Environmental footprint reduction
• Supply chain sustainability
• Healthcare access and affordability
• Community support
• Diversity and inclusion
• Ethics and compliance
• Employee health and safety

Environmental Achievements

• Reduced absolute greenhouse gas emissions by 14% compared with 2015
• Reduced energy use by 7%, water use by 7%, and total waste generation by 10%, all indexed to revenue and compared with 2015
• Achieved landfill diversion rates of 95% or higher at 21 manufacturing sites (nearly 40% of the total)
• Recycled 80% of nonhazardous waste and 51% of regulated waste for an overall recycling rate of 77%
• Reduced plastic scrap per unit of production by 10% at 18 sites globally

Social Achievements

• Achieved a 19% decrease in product complaints through 2018, compared with 2015
• Increased employee engagement score by two percentage points compared with 2017
• Increased purchases with diverse suppliers to 6.1% of relevant spending during 2018
• Donated nearly $6 million in products to partners Americares, Direct Relief and Partners In Health
• Driving Your Health program benefited approximately 69,000 people directly and 562,000 indirectly from 2016 through 2018

Governance Achievements

• Zero corruption-related enforcement actions in 2018
• Achieved favorable ratings on employee survey questions related to ethics culture
• Completed annual Code of Conduct training by 99% of employees

Climate Goals & Targets

Environmental Challenges

• Potential challenges with further decreases in energy, water, and waste due to product and manufacturing changes
• Wastewater compliance issues
• Maintaining top quartile performance in employee engagement and ethics culture scores

Mitigation Strategies

• Implementing systematic wastewater risk management program
• Working with outside experts to accelerate progress towards zero waste-to-landfill
• Implementing continuous improvement plans with suppliers
• Developing action plans to improve employee engagement and ethics culture scores

Supply Chain Management

Supplier Audits: 9 audits conducted from 2016-2018

Responsible Procurement

• Supplier Quality Standards
• Ethics and Compliance Standards for Baxter Suppliers
• Global Human Rights Policy
• UK Labor Standards Assurance System

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, Sustainability Accounting Standards Board, UN Sustainable Development Goals, Dow Jones Sustainability Index

Certifications: ISO 14001, OHSAS 18001, ISO 50001

Third-party Assurance: Bureau Veritas North America, Inc.

Sustainable Products & Innovation

• PrisMax System
• Spectrum IQ Infusion System
• Evo IQ Infusion System
• Kaguya automated peritoneal dialysis system

Awards & Recognition

• CR Magazine 100 Best Corporate Citizens
• Forbes America’s Best Large Employers
• Human Rights Campaign Foundation Best Places to Work for LGBTQ Equality
• Working Mother 100 Best Companies

Environmental Metrics

ESG Focus Areas

• Product Innovation
• Workplace Culture
• Ethics and Compliance
• Employee Health and Safety
• Operations
• Responsible Procurement and Logistics
• Innovation That Expands Access to Care
• Serving Our Communities

Environmental Achievements

• Reduced absolute greenhouse gas emissions by 15% compared with 2015, exceeding our goal of a 10% decrease by 2020.
• Reduced energy use by 9%, water use by 8% and total waste generation by 10%, all indexed to revenue and compared with 2015.
• Implemented 155 energy conservation projects that saved $4.1 million and 174.5 trillion joules of energy on an annual basis, avoiding 12,600 metric tons carbon dioxide equivalent of greenhouse gas emissions.

Social Achievements

• Achieved Baxter’s lowest-ever recordable incident rate for illness or injury: 0.39, a 5% improvement versus 2018 and a 49% improvement compared with 2015.
• Increased employee participation rate in health promotion program initiatives to 47% (compared with 38% in 2018).
• Opened a new Baxter Renal Care Services clinic in Chengdu, China, in partnership with a major local medical device supplier.
• Donated products valued at nearly $17 million.

Governance Achievements

• Zero corruption-related enforcement actions in 2019.
• Achieved favorable ratings on employee survey questions related to ethics culture.

Climate Goals & Targets

Environmental Challenges

• Further reductions in total energy and water use and total waste generation indexed to revenue due to business growth and manufacturing changes.
• Achieving a landfill diversion rate of 95% or higher at all manufacturing locations.
• Closing out the single remaining Warning Letter relating to our Ahmedabad, India, facility.

Mitigation Strategies

• Implemented numerous water reduction projects.
• Working with outside experts to accelerate progress in landfill diversion.
• Making steady progress toward FDA removal of the remaining Warning Letter.

Supply Chain Management

Supplier Audits: 725 audits related to management systems for product quality

Responsible Procurement

• Supplier Quality Standards
• Ethics and Compliance Standards for Baxter Suppliers
• Global Human Rights Policy
• UK Labor Standards Assurance System
• Integration of social and environmental criteria into requests for proposal and supplier contract templates.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, UN Sustainable Development Goals

Certifications: ISO 14001, OHSAS 18001, ISO 50001

Third-party Assurance: Apex Companies LLC

Sustainable Products & Innovation

• Spectrum IQ Infusion System
• Evo IQ Infusion System
• Kaguya automated peritoneal dialysis (APD) system cycler
• Amia APD system cycler
• Floseal Hemostatic Matrix
• Premixed eptifibatide

Environmental Metrics

ESG Focus Areas

• Patient safety and quality
• Growth through innovation
• Best place to work
• Industry-leading performance
• Environmental sustainability
• Inclusion and diversity
• Ethics and compliance
• Employee health and safety
• Responsible procurement
• Access to healthcare
• Community support

Environmental Achievements

• Reduced absolute greenhouse gas emissions by 13.6% since 2015, exceeding the goal.
• Advanced circular economy efforts with PVC recovery and recycling partnerships exceeding the goal.
• Launched six therapies/products with at least 15% material reduction compared to existing products, exceeding the goal.
• Achieved a 19% decrease in product complaints compared to 2015, exceeding the goal.

Social Achievements

• Launched ACT: Activating Change Today initiative to advance racial justice.
• Maintained or exceeded diversity benchmarks for women (globally) and ethnic minorities (in the U.S.) at most career levels.
• Achieved 49% participation in health promotion programs, exceeding the goal.
• Overall manager effectiveness score of 82%, eight percentage points above the top quartile benchmark.

Governance Achievements

• Zero corruption-related enforcement actions from 2016-2020.
• Senior Leadership Team's annual incentive compensation tied to ESG metrics starting in 2021.
• Published first Sustainability Accounting Standards Board (SASB) Index disclosure.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations, supply chain, and employee well-being.
• Missed 2020 goals for waste reduction, energy use, and water use.
• Increase in major incidents (12 in 2020 vs. 6 in 2019).
• Did not achieve top quartile in total recordable incident rate in 2020.

Mitigation Strategies

• Implemented staged response plan and new initiatives to support employee health and safety during COVID-19.
• Increased capacity and production to meet elevated demand for products.
• Deployed airbridges and seabridges to expedite delivery of supplies.
• Implemented 340 energy conservation projects, saving energy and reducing emissions.
• Initiated projects to reduce packaging, saving costs and materials.
• Implemented a systematic wastewater risk management program.
• Conducted root-cause analysis of major incidents and formulated mitigation strategies.

Supply Chain Management

Supplier Audits: 0 in 2020 (due to expansion of capabilities; 453 quality audits conducted)

Responsible Procurement

• Supplier Code of Conduct
• Supplier Corporate Responsibility Survey
• Integration of social and environmental criteria into procurement processes
• Supplier diversity initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting supply chain

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, UN SDGs

Certifications: ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: Apex Companies LLC

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 6: Clean Water and Sanitation
• Goal 12: Responsible Consumption and Production

Initiatives contributing to these goals are described throughout the report.

Sustainable Products & Innovation

• Spectrum IQ Infusion System
• Evo IQ Infusion System
• Kaguya APD system cycler
• Amia APD system cycler
• Floseal Hemostatic Matrix
• Premixed eptifibatide

Awards & Recognition

• 100 Best Corporate Citizens
• Best Place to Work for Disability Inclusion
• America's Best Employers for Diversity
• America's Best Employers for Women
• Corporate Equality Index for LGBTQ Equality
• America's Most Just Companies
• America's Most Responsible Companies
• Global Inclusion Index
• 100 Best Companies
• Best Companies for Dads
• Top Companies for Executive Women

Environmental Metrics

ESG Focus Areas

• Empower Our Patients
• Protect Our Planet
• Champion Our People and Communities

Environmental Achievements

• Reduced water use by 7.7% in water-stressed areas and reduced waste generation by 9%, compared with 2020 and indexed to revenue.
• Invested approximately $9 million to implement nearly 200 energy conservation projects across our manufacturing sites globally. We estimate that these projects will save 33,800 megawatt hours of energy and avoid 8,800 metric tons carbon dioxide equivalent of greenhouse gas emissions annually.
• Reduced absolute Scope 1 and 2 greenhouse gas emissions by 0.4% compared with 2020.

Social Achievements

• Heightened philanthropic investments in underserved communities to $52 million in total charitable giving by Baxter and the Baxter International Foundation.
• Achieved top quartile workplace safety performance annually in total recordable incident rate.
• Increased representation of women in leadership roles globally to 36%, up from 34% in 2020.
• Increased representation of ethnic minorities in leadership roles in the United States to 24%, up from 22% in 2020.

Governance Achievements

• Assessed our ability to report using the Task Force on Climate-related Financial Disclosures (TCFD) framework.
• Established a cross-functional Corporate Responsibility Steering Committee to provide direction and oversight to our ESG initiatives.
• Individual performance assessment for our Executive Leadership Team is determined in connection with an assessment of our performance against pre-established measures for strategic priorities, including those related to ESG.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on operations and communities.
• Water stress in some operating locations.
• Supply chain disruptions.

Mitigation Strategies

• Increased production to meet elevated demand for products.
• Implemented energy conservation projects.
• Strategic water management plans.
• Diversified manufacturing and supply network.
• Implemented alternative energy projects.

Supply Chain Management

Supplier Audits: More than 630 audits of Baxter suppliers were conducted related to management systems for product quality in 2021.

Responsible Procurement

• Supplier Quality Standard
• Ethics and Compliance Standards for Baxter Suppliers
• Global Human Rights Policy

Climate-Related Risks & Opportunities

Physical Risks

• Severe storms, droughts, forest fires

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: Apex Companies, LLC

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 6: Clean Water and Sanitation
• Goal 12: Responsible Consumption and Production

Initiatives described throughout the report contribute to these goals.

Sustainable Products & Innovation

• Sharesource remote patient management platform
• CONTRAfluran Anesthetic Gas Capture system

Awards & Recognition

• Newsweek’s 2021 list of America’s Most Responsible Companies
• S&P Global’s Dow Jones Sustainability Indices (DJSI)

Environmental Metrics

ESG Focus Areas

• Patient Safety and Product Quality
• Greenhouse Gas Emissions
• Sustainable Product Design and Packaging
• Diversity, Equity and Inclusion
• Business Model Innovation and Resilience
• Business Ethics and Compliance

Environmental Achievements

• Reduced absolute Scope 1 and 2 greenhouse gas emissions by 1.7% compared with 2021 and 1.3% compared with 2020.
• Completed 163 energy conservation projects, saving 39,700 MWh of energy and $4.0 million and avoided 10,600 metric tons CO2e of GHG emissions.
• Achieved 30% renewable energy share for operations.

Social Achievements

• Invested $51 million in philanthropic investments to benefit underserved communities.
• Achieved top quartile workplace safety performance.
• Continued to advance ACT: Activating Change Today, promoting racial justice.

Governance Achievements

• Conducted a new materiality assessment to align with stakeholder priorities.
• Updated policies and procedures to ensure adherence to evolving global trade regulations and sanctions.
• Required annual Code of Conduct training (completed by 99% of employees).

Climate Goals & Targets

Environmental Challenges

• Increase in GHG emissions from purchased goods and services and increased sales and production of certain products in 2022.
• Increase in Baxter's total recordable incident rate to 0.40, compared with 0.33 in 2021.
• Decline in representation of women and ethnic minorities in leadership roles.

Mitigation Strategies

• Implementing strategic water management plans at prioritized manufacturing locations.
• Implementing prioritized waste mitigation opportunities in Baxter’s integrated supply chain.
• Focusing on best practices related to powered industrial trucks and lock-out/tag-out procedures to improve workplace safety.
• Continuing efforts to attract, retain and develop diverse talent and foster an inclusive workplace.

Supply Chain Management

Supplier Audits: 630+/year

Responsible Procurement

• Supplier commitment to Baxter’s Ethics & Compliance Standards
• Corporate responsibility audits for high-risk suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD (planned for 2023)

Certifications: ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: Apex Companies, LLC

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 6: Clean Water and Sanitation
• Goal 12: Responsible Consumption and Production

Awards & Recognition

• 3BL Media’s 100 Best Corporate Citizens
• JUST Capital’s America's Most JUST Companies
• FTSE4Good Index series
• S&P Global’s Dow Jones Sustainability Indices

Environmental Metrics

ESG Focus Areas

• Empower Our Patients
• Protect Our Planet
• Champion Our People and Communities

Environmental Achievements

• Reduced absolute Scope 1 and 2 GHG emissions by 4.1% compared with 2022 and 4.6% compared with the base year 2020.
• Completed 150 energy-conservation projects estimated to reduce GHG emissions by approximately 21,100 metric tons carbon dioxide equivalent per year beginning in 2024.
• 33% of energy use for operations was derived from renewable sources in 2023.

Social Achievements

• Invested more than $40 million in underserved communities through strategic partnerships and product donations.
• Achieved top quartile workplace safety performance.
• Increased representation of women in leadership roles globally to 37% (up from 35% in 2022).

Governance Achievements

• Published the first report against the Task Force on Climate-related Financial Disclosures framework.
• Updated policies and procedures to adhere to evolving laws, regulations and sanctions globally.
• 97% of employees completed Code of Conduct training.

Climate Goals & Targets

Environmental Challenges

• Slower than expected patient growth in key markets due to the prolonged effects of pandemic-driven mortality issues from COVID-19.
• Only 53% of suppliers, by spend, committed to Baxter’s Ethics & Compliance Standards in 2023.
• 2% increase in water usage compared with 2022 due to process changes and increased production at some sites.

Mitigation Strategies

• Continued efforts to increase access to PD for underserved kidney patients through driving shared decision-making, advocating for access to PD, and expanding innovation and services.
• Developing the Baxter Global Supplier Standards Manual to support conducting supplier corporate responsibility audits in the future.
• Implementing conservation and efficiency projects at many manufacturing facilities, with an emphasis on sites located in water-stressed areas.

Supply Chain Management

Supplier Audits: 689 audits in 2023

Responsible Procurement

• Ethics & Compliance Standards for Baxter Suppliers
• Global Supplier Standards Manual

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of hurricanes/cyclones/typhoons
• Increased water scarcity related to climate change

Transition Risks

• Emerging regulation related to GHG emissions and climate change
• Increased stakeholder concern regarding Baxter’s GHG emissions

Opportunities

• Improved resource efficiency
• Transitioning to lower-GHG-emission energy sources
• Developing innovative new products and services

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs

Certifications: ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: LRQA

UN Sustainable Development Goals

• Goal 3: Good Health and Well-Being
• Goal 6: Clean Water and Sanitation
• Goal 12: Responsible Consumption and Production