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2009 Report on

Safety, Health and Environment

© 2009 Schering-Plough • Schering-Plough Corporation • All Rights ReservedThe trademarks indicated by CAPITAL LETTERS in this report are the property of, licensed to, and promoted or distributed by Schering-Plough Corporation, its subsidiaries or related companies.

2009 Report on


TablE of ConTEnTS

lETTER To STakEHoldERS 1

Company pRofilE financial information 3

SHE GovERnanCE STRuCTuRE and manaGEmEnT SySTEmS SHE policies, Standards and procedures 4

Corporate Environmental and Safety Council (CESC) 6

Global SHE planning process 8

Corporate SHE Strategy: 2009-2011 9

• Corporate SHE Plan Objectives: 2009-2011 10

Operating Unit Plans 11

Global EHST auditing program 12

SafETy, HEalTH and EnviRonmEnTal pRoGRamS SHE programs overview 13

SHE management Systems 14

OHSAS 18001 15

U.S. OSHA Voluntary Protection Program 16

ISO 14001 17

U.S. EPA NEPT 19

External Certifications 20

SHE initiatives 21

Sustainability 22

Product Stewardship Initiatives 25

• Consumer Health Care Sustainability Initiative 25

• Right First Time Continuous Improvement Initiative 26

• SHE Assessment of External Manufacturers 31

Sustainable (Green) Chemistry 32

Carbon Disclosure Project 35

SHE Integration Process – Schering-Plough/OBS 36

LEADERSHIP Through SAFETY 38

continued on next page...

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Emerging issues and opportunities 42

REACH 43

Globally Harmonized System (GHS) 44

H1N1 – Influenza Virus (Swine Flu) 45

performance metrics 46

Table - Performance Metrics Data 47

Safety 49

• Global Total Recordable Injury Rate 49

• Global Days Away Case Rate 50

• Global Days Away Case Severity Rate 51

• Prior Company Safety Performance 52

• Vehicle/Fleet Safety Program 53

Environmental 56

• Environmental Incidents and Fines 56

• Toxics Release Inventory (TRI) 57

• Greenhouse Gas Emissions 58

• Waste Management 59

• Wastewater Management 59

• Water Usage 60

EnERGy manaGEmEnT management Commitment 61

Energy Management Commitment 62

Energy Management Program 63

Energy initiatives 64

EPA ENERGY STAR® 2009 Partner of the Year (POY) Award 65

ENERGY STAR® Site Recognition – Cleveland, Tenn. 67

Solar Panel Project – Summit, N.J. Site 68

Energy Consumption 70


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SHE awaRdS and RECoGniTion internal awards and Recognition 71

Chairman’s SHE Award 72

Safety Operational Excellence Awards 73

Environmental Achievement Awards 75

Eagle Award for Safety Leadership 78

Special Recognition 81

Safety Stars Program 83

External awards and Recognition 87

Scope of ReportThe information and metrics presented in this report are based upon our global activities and performance

in 2008 and through the first half of 2009. 2008 is the first year that the results of Organon BioSciences

are included in the Schering-Plough totals.

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lETTER To STakEHoldERS

Schering-Plough and its leadership team, from the top down, are committed to protecting the safety and

health of all colleagues; achieving the company’s ultimate goal of zero accidents and injuries; complying

with all applicable laws and regulations; and protecting the environment wherever we have operations.

This global commitment has led to significant and continuous improvements over the past five years in

safety, health and environmental (ShE) performance around the world.

During 2008, former Organon BioSciences (OBS) operations were effectively integrated into Schering-Plough’s

ShE programs, activities and compliance strategies. Overall, the company delivered a strong safety, health

and environmental performance in 2008, with the combined performance significantly exceeding expectations given the numerous and complex challenges of integration. Even with the integration, global safety performance

remained better than in 2006 and only slightly above 2007 levels.

For the third consecutive year, the company-wide Global Total Recordable Injury Rate (TRIR) of 0.75 fell

below the 1.0 benchmark of excellence in this area. The 2008 TRIR is 17 percent better than in 2006 and

only nine percent above the 2007 rate. Since 2000, there has been a 70 percent reduction in recordable

injuries and illnesses. In comparison to our pharmaceutical peer group, former Schering-Plough operations

are in the first quartile of TRIR performance, while the combined company overall is in the second quartile,

in its first year after the OBS acquisition.

The company-wide Global Days Away Case Rate (DACR) of 0.37 is 31 percent better than in 2006 and

only three percent above 2007. Since 2000, there has been a 69 percent reduction in Global DACR. Former

Schering-Plough operations and the combined company overall are in the second quartile versus our peer

group; however, the Global Days Away Case Severity Rate (DACSR) for both former operations and the

combined company were in the first quartile of the industry peer group.

Schering-Plough measures its global environmental performance on a monthly basis using an internal index

based upon the number of incidents (e.g., exceedances, spills, etc.) which require external reporting to an

agency or meet a more rigid internal reporting threshold. Although former Schering-Plough sites reduced

their environmental incidents by 55 percent versus 2007, the number of reportable environmental incidents

in 2008 increased over 2007, with the inclusion of former OBS sites in the metrics database. however, over

the long term, the company has reduced environmental incidents by 54 percent since 2003. Also, progress

has been made in the first half of 2009, with the number of incidents down by 27 percent compared to

2008 performance.


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We also use external certifications of ShE Management Systems as a “leading” indicator of our safety and

environmental performance. Depending upon location, sites pursue four major certification programs: ISO

14001, the U.S. Environmental Protection Agency’s National Environmental Performance Track, OhSAS 18001,

and the U.S. Occupational Safety and health Administration’s Voluntary Protection Program. Ten new management

system certifications were received in 2008 and three in 2009, bringing the total to 44 certifications. It is

important to note that this progress has not been driven by a corporate mandate — our operating units

have determined that achieving these certifications is the right thing to do.

The company has also made significant progress in its energy management efforts, implementing numerous

projects and programs that have reduced its consumption of energy and environmental footprint. These efforts

were recently recognized by the U.S. Environmental Protection Agency, which named Schering-Plough an

ENERGY STAR® 2009 Partner of the Year, and presented a special energy award to our Cleveland, Tenn. plant.

As Schering-Plough moves forward in 2009 with the announced merger with Merck & Co., Inc., we remain

committed to protecting the safety and health of all colleagues, sharing a common belief that all injuries

and occupational illnesses, as well as safety and environmental incidents, are preventable.

We would appreciate your feedback and comments on this report.

ian mcinnes, ph.d. Senior Vice President, President, Global Supply Chain, and Chairman,Corporate Environmentaland Safety Council

a. E. moffitt, Sc.d. Vice President, Global Safety and Environmental Affairs

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Company pRofilE

financial information

For detailed information on the company’s finances, see the Annual Report 2008 on the corporate website,

http://www.schering-plough.com.

Safety, health and environmental capital investments in 2008 were $34.1 million, compared to $24.2 in

2007 and $10.6 million in 2006. These investments were made for various pollution prevention, energy

management, and safety and industrial hygiene projects. The expenditures related to certain aspects of the

operation and management of safety, health and environmental programs were $81.4 million in 2008,

compared to $40.7 million in 2007 and $38.5 million in 2006. The large increase in operating and maintenance

expenditures in this area reflects the inclusion of operations from Organon BioSciences, which was acquired

at the end of 2007. The figure below shows the company’s safety, health and environmental investment

from 2004 to 2008.

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2004 2005 2006 2007 2008

Safety, Health and Environmental Investment

$ M

illio

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Operating and Maintenance

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SHE GovERnanCE STRuCTuRE and manaGEmEnT SySTEmS

Safety, Health and Environmental (SHE) policies, Standards and procedures

The company’s corporate policies establish fundamental expectations in a wide variety

of core business areas. The Corporate Policy on safety, health and environmental (ShE)

management communicates Schering-Plough’s fundamental ShE commitments. It

applies globally to all locations and serves as a foundation for ShE management and

decision making throughout the company. This corporate policy is also referred to as

a Level I document.

The Global ShE Standards build on the corporate ShE policy and establish specific

administrative and technical expectations in a wide variety of ShE areas. Global ShE

Standards are also referred to as Level II documents.

The Global ShE Standards establish expectations in several key areas, including:

• Management Leadership and Commitment • ShE Strategy and Planning

• Employee Commitment and Participation • Monitoring and Measuring Performance

• Open Communication and Transparency • Self Assessment

• Document and Data Control • Management Reviews

• Records Management • Management of Nonconformities and Incidents

• Risk Assessment and Management • Management of Preventive and Corrective Actions

• Management of Legal and Other Requirements

Global ShE Standards are developed, issued and maintained through a multi-stakeholder process, under the

authority of the Corporate Environmental and Safety Council (CESC), with direct support from Global Safety

and Environmental Affairs (GSEA).

Global ShE Standards establish key expectations while allowing for an appropriate level of flexibility and

innovation at the local level. GSEA also issues global guidance documents, which provide additional non-

mandatory advice and direction in a number of technical areas.

Each facility integrates the expectations of the Corporate ShE Policy and Global ShE Standards as it develops

Local ShE Procedures where necessary to define the local processes and responsibilities for complying with

both internal and external ShE requirements. Local procedures are also referred to as Level III documents.


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Several internal and external stakeholders influence and are affected by our ShE Policies and Standards.

Their input is integrated as appropriate into our efforts to develop and continually improve the system.

Internal stakeholders include:

External stakeholders include:

• Patients and Customers

• Shareholders and Investment Managers

• Communities, NGOs and Other Special Interest Groups

• Governments and Regulatory Authorities

Our Policies and Standards guide us toward our commitments and direct our daily actions and

behaviors as we strive to achieve excellence in this important aspect of our business.

• Executive Management Team (EMT)

• Corporate Environmental and Safety Council (CESC)

• Operating Unit and Business Function

Management (GPB, GSC/GQO, SPRI,

Animal health and Consumer health)

• Facility Management and Employees

• Facility ShE Professionals

• Global Safety and Environmental Affairs

• Corporate Risk Management

• Employee health Services

• Global Law

• Global Security

• Global human Resources

• Global Communications

• Global Engineering Services

• Global Compliance and Business

Practices (Global EhST Audits)

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Corporate Environmental and Safety Council

In accordance with Schering-Plough Policy, CTR-170, the Corporate Environmental and Safety Council (CESC):

(1) establishes the Corporate Safety, Health and Environmental (SHE) management policy and Global

ShE Standards; (2) monitors and assesses ShE performance of the company’s business units and subsidiaries;

and (3) addresses related compliance and management issues throughout Schering-Plough Corporation.

CESC is responsible for: (1) identifying safety, health and environmental risks, issues and developments; and

(2) advising senior management of significant concerns. It is also responsible for reviewing relevant audits

and issues and for implementing appropriate policies, procedures and programs to ensure compliance with

all federal, state and local regulations.

CESC membership consists of a senior representative from each business unit and key global function.

The Council is chaired by the president, Global Supply Chain.


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CESC membership

dr. Richard bowlesSenior Vice President, Global Quality Operations

mr. Roberto darienzoVice President, Americas Region, Global Supply Chain

mr. kenneth kasperSenior Director, Global Environment, Health, Safety and Transportation (EHST) Audits, Global Compliance and Business Practices

mr. Joseph koerwerVice President and Associate General Counsel, Global Law

dr. ian mcinnes (Chairman)Senior Vice President and President, Global Supply Chain

dr. a. E. moffitt (Secretary)Vice President, Global Safety and Environmental Affairs

mr. Geoff monkVice President, Global Engineering Services and New Jersey – Puerto Rico Operations (GSC)

dr. Greg SzpunarSenior Vice President, Pharmaceutical Sciences and Drug Disposition, Schering-Plough Research Institute

dr. Gary udasinStaff Vice President and Medical Director, Employee Health Services, Global Human Resources

mr. dan wechslerGroup Vice President, Global Business Operations and Selling Excellence, Global Pharmaceutical Business

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Global Safety, Health and Environmental (SHE) planning process

A key element of the Schering-Plough management system is the annual global safety, health and

environmental (ShE) planning process. Each year, the company updates its three-year strategic ShE plan

based on current progress, emerging issues, and internal and external stakeholder feedback. Company

objectives are integrated into annual operating unit and facility-level ShE plans to create global alignment

and focus.

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Corporate Safety, Health and Environmental Strategy: 2009–2011

by Seeking the Highest Standards of SHE performance, we will protect, Enhance and Create value and

Earn the Trust of our Employees, Shareholders and the Communities in which we operate.

At Schering-Plough, we aspire to earn the trust of doctors, patients and customers as a champion for

them and as a company that provides them with a steady flow of innovative, science-based medicines

and services. By earning trust, we will build growth.

Our ShE strategy is a key element in our ability to earn trust. We firmly believe that by seeking to achieve

the highest standards of ShE performance, we will protect, enhance and create value and earn the trust of

our employees, shareholders and the communities in which we operate.

The Corporate Plan consists of eight ShE objectives for 2009–2011, which are aligned with the highest

standards of ShE performance to which the company aspires.

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Corporate Safety, Health, and Environmental Plan Strategy (2009-2011)

Corporate SHE plan objectives (2009-2011)

• Instill, in all colleagues, the company’s commitment to ShE excellence and continue to

encourage and reward leadership and involvement.

• Expand the successful efforts to establish clear ownership and accountability for ShE performance

to all units of the company.

• Continue to reduce the frequency and severity of ShE incidents across all parts of the company

as we work toward our long-term goal of zero incidents.

• Achieve and maintain compliance with new and emerging chemical registration legislation in

the European region and elsewhere to prevent unexpected interruptions in product flow.

• Develop new indicators of ShE progress, beyond our traditional measures.

• Improve our understanding of the lifecycle environmental impacts of our products and processes,

and work to eliminate waste and its associated costs.

• Diligently assess and manage the ShE risks associated with our contract suppliers and external

manufacturing partners to maintain business continuity and our reputation.

• Continue to communicate our progress to all interested stakeholders.

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Operating Unit Plans

In 2009, seven Operating Unit Plans (Global Supply Chain, Schering-Plough

Research Institute, Global Pharmaceutical Business, Animal health Research

and Development, Consumer health Care Research and Development,

Animal health Commercial, and Consumer health Care Commercial) were

approved by the Corporate Environmental and Safety Council (CESC). Each

of the Operating Unit Plans contains a set of business-specific ShE priorities

with goals in the following areas:

• Reductions in Injuries, Illnesses and Environmental Incidents

• Reduction of Greenhouse Gas Emissions

• Improved Energy Efficiency

• Improvements in Inspection Results

• Waste Reduction and Pollution Prevention

• ShE Management System Improvements and Certifications

More than 70 facility/site plans have been developed in support of the Operating Unit Plans.

The planning process also identified six key global ShE Focus Areas and 18 Global ShE priorities for 2009.

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Global Environment, Health, Safety and Transportation (EHST) auditing program

Auditing is a critical element of Schering-Plough’s commitment to conduct business in a responsible manner.

Since 1991, management has maintained a separate audit unit that is independent of both the operating

units and the Global Safety and Environmental Affairs department. The mission of Global Environment, health,

Safety and Transportation (EhST) Audits is to: (1) advise management of the status of compliance with

company and government environmental, health, safety and hazardous material transportation requirements

and the associated management systems at all company operations worldwide; and (2) ensure that all detected

instances of noncompliance are resolved properly and in a timely manner. Global EhST Audits is a part of

the Global Compliance and Business Practices group. The unit provides regular reports to the Corporate

Environmental and Safety Council.

In 2008, Global EhST Audits conducted 38 audits of company operations and 10 assessments of external

manufacturers in the company’s supply chain. In addition, three assessments against the U.S. Environmental

Protection Agency’s National Environmental Performance Track criteria were done. In 2009, 13 of 43 planned

EhST audits and eight of 22 planned external manufacturer assessments have been completed through April

2009. The data reported in the figure below reflect only the audit findings for the company’s operations.

Schering-Plough does not publish information regarding specific audits. however, in 2008, the company reported

that 99.3 percent of the audit findings noted for the period 2005 to 2007 had been closed. Only one finding

from 2006 and three from 2007 remained open. As seen in the figure below, one finding from 2006, three

findings from 2007, 156 findings from 2008 and 79 findings from 2009 remain open as of April 2009.

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SafETy, HEalTH and EnviRonmEnTal pRoGRamS

Safety, Health and Environmental programs overview

Schering-Plough’s policy and philosophy with respect to the safety and

health of all employees and environmental protection and compliance

are set forth in Corporate Policy and Procedure C-170: Safety, health

and Environmental Management. This document establishes the

framework for sound safety, health and environmental management

at Schering-Plough and serves as the foundation for its integration into

company processes and activities. C-170 emphasizes that excellence

in safety, health and environmental performance and a commitment

to good corporate citizenship are encouraged and rewarded because

they are consistent with the company’s Vision “To earn trust, every day,” and they add value to the company and its key stakeholders.

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Safety, Health and Environmental management Systems

Schering-Plough has developed its own Global Standards for safety and environmental management

systems that are not only specific to the company, but also consistent with four nationally and internationally

accepted standards or practices. Certification or recognition at the business unit or corporate level enables

the company to make comparisons with industry peers and measure progress against common goals.

To the left, under “ShE Management Systems,” is a listing of the four standards, a brief explanation of

each, and a listing of the business units and operations that have been certified or recognized under

those standards or programs.

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Occupational Health and Safety Assessment Series (OHSAS) 18001

OhSAS 18001 is an agreed-upon international protocol against which a safety management

system can be assessed and certified.

Global Supply Chain – animal Health • Burgwedel, Germany*

• harefield/Newbury, United Kingdom*

• Santiago, Mexico

• Segré, France

Global Supply Chain – api/bT • Rathdrum, Ireland*

Global Supply Chain – asia pacific • Pandaan, Indonesia

• Tuas, Singapore

Global Supply Chain – Europe • Brinny, Innishannon, Ireland

• Caen, France (ILO-OSh)*

• Comazzo, Italy*

• Friesoythe, Germany

• Oss, Netherlands – General Site Services and Technical Site Services*

• San Agustín, Spain

Global Supply Chain – new Jersey/puerto Rico operations • Las Piedras, Puerto Rico*

* Denotes certifications that were accomplished in 2008 and the

first half of 2009. All others were done between 2002 and 2007.

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U.S. Occupational Health and Safety Administration’s (OSHA) Voluntary Protection Program (VPP)

OShA’s VPP is a voluntary program in which management, labor and OShA establish cooperative relationships

at workplaces that have implemented a comprehensive safety and health management system.

Global Supply Chain – americas • Cleveland, Tennessee

• Miami Lakes, Florida

Global Supply Chain – animal Health • Baton Rouge, Louisiana

Global Supply Chain – Rx logistics (u.S. distribution Centers) • Branchburg, New Jersey

• Reno, Nevada

• Suwanee, Georgia

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Organization for International Standards (ISO) 14001

ISO 14001 is an international standard against which environmental management

systems can be assessed and certified.

Global Supply Chain – americas • BEISA, Mexico*

• Cleveland, Tennessee

• Xochimilco, Mexico

Global Supply Chain – animal Health • Aprilia, Italy

• Burgwedel, Germany*

• harefield/Newbury, United Kingdom*

• Pune, India

• Salamanca, Spain

• Santiago, Mexico

• Segré, France

Global Supply Chain – api/bT • Rathdrum, Ireland

Global Supply Chain – asia pacific • Shanghai, China

• Tuas, Singapore


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Global Supply Chain – Europe • Brinny, Innishannon, Ireland

• Caen, France

• Comazzo, Italy

• Eragny-sur-Epte, France – Wastewater Treatment Plant for API only

• Friesoythe, Germany

• heist, Belgium*

• Oss, Netherlands – General Site Services and Technical Site Services*

• San Agustín, Spain

* Denotes certifications that were accomplished in 2008 and the first half of 2009. All others were done

between 2002 and 2007.

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U.S. Environmental Protection Agency’s (EPA) National Environmental Performance Track (NEPT)

EPA’s NEPT is a voluntary partnership program, which recognizes and rewards private and public facilities

that consistently exceed regulatory requirements, work closely with their communities, set three-year goals

for improvements in environmental performance, and excel in protecting the environment and public health.

Global Supply Chain – americas • Las Piedras, Puerto Rico

• Cleveland, Tennessee*

Global Supply Chain – animal Health • Baton Rouge, Louisiana

* Denotes certifications that were accomplished in 2008 and the first half of 2009. All others were

done between 2002 and 2007.

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External Certifications of SHE Management Systems

The figure below shows the number of facilities that have been certified under ISO 14001, U.S. EPA’s NEPT,

OhSAS 18001, and U.S. OShA’s VPP. In 2002, the company had two certified sites. As of July 2009, 28 sites

have received a total of 44 certifications, with 14 sites having received certifications under two different

standards or programs: Baton Rouge, Louisiana; Brinny, Ireland; Burgwedel, Germany; Caen, France;

Comazzo, Italy; Friesoythe, Germany; harefield/Newbury, United Kingdom; Las Piedras, Puerto Rico; Oss,

Netherlands (General Site Services and Technical Site Services departments); Rathdrum, Ireland; San Agustín,

Spain; Santiago, Mexico; Segré, France; and Tuas, Singapore. Cleveland, Tennessee, is currently the only

Schering-Plough facility to have been certified under three standards. One site (Eragny-sur-Epte, France)

has received certification for its Wastewater Treatment Plant for API.

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Safety, Health and Environmental initiatives

Schering-Plough has implemented several safety, health and environmental initiatives that go beyond

the scope of programs that generally concern regulatory compliance. For example:

• sustainable development, which is “development that meets the needs of the present without

compromising the ability of future generations to meet their own needs;”

• Right First Time/Continuous Improvement;

• ShE assessment of external manufacturers;

• sustainable (green) chemistry, which is “the design of chemical products and processes that reduce or

eliminate the use and generation of hazardous substances/wastes, create inherently safer processes, and

increase process efficiency;”

• lEadERSHip Through SafETy, which is a unique behavior-based safety training initiative linked to

the company’s Leader Behaviors; and

• carbon disclosure.

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Sustainability

backgroundCommon use of the term “sustainability” began in 1987 with

publication of the World Commission on Environment and Development

report, “Our Common Future” (a.k.a., the Brundtland Report). This

document defined sustainable development as “development that

meets the needs of the present without compromising the ability

of future generations to meet their own needs.” This concept of

sustainability encompasses ideas, aspirations and values that continue

to inspire public and private organizations to become better stewards

of the environment and that promote positive economic growth and

social objectives. Sustainable development joins together two important

themes: (1) environmental protection does not preclude economic

development; and (2) economic development must be ecologically

viable now and in the long run.

Sustainability and Schering-plough’s business StrategySchering-Plough is an innovation-driven, science-centered global health care company. Through investments

in biopharmaceutical research, development and manufacturing, the company creates therapies that help

save and improve the lives of people around the world. By applying the principles of sustainable development

in all phases of our operations, we can help to stimulate technological innovation, advance competitiveness

and improve our quality of life.

Through our combination with Organon BioSciences and continued progress toward successful completion

of the Action Agenda, Schering-Plough has set forth a business strategy — Growing Stronger, Growing

Better — which has a close correlation with the principles of sustainable development (as explained below).

This business strategy is three pronged:

• Grow the Top Line

• Grow the Research and Development Pipeline

• Contain Costs and Invest Wisely


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Sustainability from a Safety, Health and Environment (SHE) perspectiveIn looking at sustainable development from a safety, health and environment (ShE) perspective, we can

identify many activities that support the company’s business strategy:

Grow the Top line — ShE professionals have been actively engaged in supporting the participation of

our Consumer healthCare (ChC) business in Wal-Mart’s sustainability initiative. We are also re-evaluating

our packaging policies and making changes, where possible, to reduce our environmental footprint.

Grow the Research and development pipeline — SPRI has strongly endorsed the principles of

Sustainable (Green) Chemistry and their global application throughout our operations and facilities

to make them more efficient. The importance of sustainability to the company is exemplified in

many ways, including:

1. holding symposiums to promote the application of green chemistry for the development of drug

substances in a manner that will reduce or eliminate the use and/or generation of hazardous

substances and environmental and human health risks;

2. The establishment of an internal annual Environmental Achievement Award for Green Chemistry to

recognize facilities or teams of employees that have applied the principles in their operations; and

3. Continually tracking raw material usage and waste generation through the new product development

process with a “Process Sustainability Index.”

Contain Costs and invest wisely — The company has implemented:

1. A formal ShE assessment program applicable to its third-party external manufacturers/suppliers

to reduce potential environmental and safety liabilities.

2. A Technology Transfer program to reduce costs by being more efficient.

3. Energy management programs that reduce greenhouse gas emissions and make us more energy

efficient (i.e., a solar power project in Summit and a trigeneration project in Singapore).

4. A real estate/site remediation program to reduce potential liabilities associated with the acquisition

or disposition of property.


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Sustainability and Schering-plough’s Social issues prioritiesSocial issues are integral to the pharmaceutical industry, which has a special responsibility to society because

drugs are essential to prolonging and improving the quality of life. The prioritization of social issues is incorporated

in all aspects of our work. We are able to identify pressing social issues, respond appropriately, and maximize

the impact of the resources we can bring to bear on these issues.

Following are several of Schering-Plough’s Social Issues Priorities for 2008–2009 and some examples of

relevant ShE responses to specific issues:

• Patient Safety — provided guidance on the safe and proper disposal of products.

• Occupational health and Safety/the Environment/Security — Schering-Plough strives to achieve

the highest standards of ShE performance and ranks in the first quartile of its industry sector in

occupational safety and health. The company has also upgraded and fortified security practices

to include chemical security measures.

• Promote Scientific Expertise and Innovation — implemented green chemistry and

technology transfer programs.

• Diversity — implemented a comprehensive ShE assessment program for external

manufacturer and suppliers.

• Corporate Governance — developed and implemented a Corporate Environmental and Safety Council

(CESC) to provide corporate-wide oversight and direction on ShE matters and to address emerging issues

that may have a material impact on the company.

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Product Stewardship Initatives

Consumer Health Care Sustainability initiativeSchering-Plough is currently making solid progress on several environmental sustainability initiatives related

to energy efficiency improvements and greenhouse gas reductions, waste reduction and pollution prevention,

supply chain management, and green building design.

To supplement the broader company efforts and to strengthen its business, Consumer health Care (ChC)

has launched a business unit-wide environmental sustainability initiative to pursue additional opportunities

to act where it can create shared benefits for the environment and the business. Initial efforts are focused

on developing specific objectives and goals, assigning ownership and accountability, and establishing

appropriate business processes and systems to facilitate improvements in both new and existing products

and processes. Global Safety and Environmental Affairs is supporting ChC’s efforts and plans to work with

the company’s other business units in the future to share lessons learned.

The following examples of progress demonstrate the value of ChC’s early efforts:

• ChC’s site in Memphis, Tennessee, is achieving big environmental savings with its newly renovated

reverse osmosis (RO) water system, which was completed in December 2008. With the installation of

new technology and a recirculating water system, the site is saving 18,000 gallons per day. This means

that 6.6 million gallons each year will no longer be sent down the drain as wastewater. In addition to

the water savings, the site has reduced consumables, such as filters, water treatment chemicals, RO

membranes, salt, etc.

• A comprehensive redesign of DR. SChOLL’S® packaging has eliminated the use of PVC plastic in favor of

a more environmentally friendly, recyclable material. The new packaging is made from the same material

as plastic soda bottles, which is known as PET. This change is estimated to reduce overall plastic packaging

materials by more than 400,000 pounds each year and overall packaging material by more than 200,000

pounds each year.


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• Schering-Plough’s Cleveland, Tennessee, site, a major manufacturing location for ChC products,

was awarded a 2008 ENERGY STAR® designation from the U.S. Environmental Protection Agency.

The ENERGY STAR® is a mark of distinction given to the most energy efficient manufacturing plants

in the country. The Cleveland site is now one of only four pharmaceutical plants in the U.S. with this

significant distinction.

• Changes in Lotrimin and Tinactin secondary and tertiary packaging have reduced case cubes by 66

percent, eliminated the need for 3,700 pallets per year, saved 23,000 gallons of diesel fuel per year,

and reduced paperboard and corrugate by 161,000 and 61,200 pounds, respectively, per year.

• Changes in Coppertone Continuous Spray Sunscreen club store packaging have reduced packaging

materials by 85 percent and eliminated 74,840 pounds of packaging waste per year.

ChC’s Environmental Sustainability Initiative is a key element of Schering-Plough’s commitment

to develop environmentally sustainable products and processes.

Right first Time Continuous improvement initiative

bEliEfAs stakeholder expectations around sustainability continue to increase, continuous improvement

initiatives offer compelling opportunities to further improve Safety, health and Environmental (ShE)

performance. Building safety and environmental considerations into initiatives can increase value,

accelerate implementation, decrease material costs, and reduce liability and the risk of potential

ShE-related compliance gaps and nonconformities.


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Effective integration of ShE management efforts into these initiatives

will allow facilities to avoid risks from non-compliance with regulatory

requirements, as well as discover new ways to improve operational

processes and achieve the highest standards of ShE performance.

Lean methods create a continual improvement-based, waste

elimination culture that involves workers at all levels of the

organization. There are a variety of common lean methods,

including Kaizen rapid improvement events, just-in-time

manufacturing, value stream mapping and total productive

maintenance. Lean thinking focuses on three objectives:

• Reducing production resource requirements by

minimizing inventory, equipment, storage and

production space, and materials;

• Increasing manufacturing velocity and flexibility; and

• Improving quality and eliminating defects.

Environmental-related wastes carry large financial burdens, create

potential health and safety hazards, and require time-consuming

support activities and management. Chemicals and hazardous

materials used in processes often demand costly support activities,

such as regulatory compliance management and reporting activities;

use of personal protective equipment; and the investment, operation,

and maintenance of pollution control equipment and/or non-

hazardous and hazardous waste management and disposal.

Chemical substitution, process improvement changes and other

strategies can reduce the need for such non-value-added activities.

Reducing the volume of material, water, energy, chemical usage

and wastes (hazardous and non-hazardous) yields cost savings

and significant safety and environmental benefits.


Considering Safety, Health and Environmental related goals and opportunities during Right First Time implementations can:

• Reduce Costs

• Improve Process Flow and Reduce Lead Times

• Lower Regulatory (non-compliance) Risks

• Meet/Exceed Customer Expectations

• Improve Safety Performance and Environmental Quality

• Improve Colleague Morale and Commitment

Global SHE Metrics = Future Continuous Improvement Opportunities

• Total Recordable Injury/ Illness Rate (TRIR)

• Days Away Case Rate (DACR)

• Reportable Environmental Incidents

• Percentage of Regulatory Inspections with No Further Actions

• Annual Utility Usage

• Annual Water Usage

• Annual Air Emissions

• Annual Hazardous Waste

• Annual Wastewater Discharge

• Annual Sales Fleet SHE Performance

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ownERSHipRight First Time (RFT) continuous improvement initiatives are based upon Lean Enterprise, Six Sigma principles

and the DMAIC (Define, Measure, Analyze, Improve and Control) process, but have been enhanced and

adapted to fit the business utilizing Schering Plough’s Supply Improvement Process (SIP) model. The program

is focused on encouraging and enabling all colleagues within Global Supply Chain and the Global Quality

Organization to look for opportunities and generate ideas that can help minimize any aspect of work that is

not adding value. Projects are prioritized and evaluated against business fundamentals and often contain,

(and always consider) Environmental and Safety aspects. Of the projects identified so far in 2009, 15 to 20

percent of initiatives include ShE components.

Support is provided through a network of trained professionals at the local, regional or business function

level. To date, close to 50 percent of Global Safety and Environmental Affairs staff have received a minimum

awareness-level training, with select staff completing more extensive training to either Yellow or Green Belt

level. Facilitation of projects is typically a part-time assignment or extension of a ShE professional’s full-time

responsibilities. Projects are typically driven by cross-functional teams, with governance and oversight from

either site or corporate level. The project management process is organized around six steps to success:


The Right First Time Balanced View• Environmental, health, Safety• Quality• Regulatory Compliance• Customer Service• Cost

Identifying Launching Evaluating

Approving Progressing Sustaining

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paSSionRFT Champions at Schering-Plough manufacturing facilities encourage colleagues to apply RFT methods to

improve ShE performance ranging from regulatory compliance management and reporting systems to chemical

and waste management processes at the site level. The following are examples of ShE considerations which

have been applied to RFT projects:

1. Commit to eliminate environmental wastes through RFT implementation.

2. Recognize new improvement opportunities by incorporating ShE-related icons and data into process and

value stream mapping activities.

3. Involve site-level staff with ShE expertise in planning for and implementing RFT events on processes with

safety/environmental opportunities.

4. Find and drive out environmental wastes in specific processes by asking key questions and using process-

improvement tools.

5. Empower and enable colleagues to eliminate waste in their work areas through increased awareness,

training and workplace evaluation checklists to identify potential ShE concerns/issues.

6. Explore opportunities to incorporate environmental considerations into process and product design

activities. Discuss other potential areas of collaboration for improving organization results and

competitive advantage.

7. Focus on prevention programs addressing the primary hazards (based upon a review of Global ShE

Performance Metrics) and place an emphasis on the major contributors and around specific opportunities:

SHE buSinESS impaCT / valuE addEdBelow are just a few examples of the significant impact site-level ShE-related continuous improvement

projects have had on the business over the past few years.

Solvent Recovery Effort (bEiSa, mexico) • 72 percent efficiency, 40 percent reduction in hazardous waste and $277,000 savings

process improvement/waste Reduction (burgwedel, Germany) • 300 percent increase in yield and 16.5 ton reduction in waste

Energy Conservation (Shiga, Japan) • Consumption reduction of 260,000 kilowatt hours and 273 tons carbon dioxide


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Sustainable Chemistry (Singapore) • Methylene chloride reduction of 173,000 liters and $182,000 savings

packaging improvements (point Claire, Canada) • 64,000 kilograms paperboard, 92,000 liters fuel and $985,000 savings

Radioactive waste Reduction (milan, italy) • 50 percent reduction in R&D waste generated through sustainable chemistry practices

and savings of $42,000 annually

Sustainable Chemistry (SpRi) • API recovery with savings of $2.5 Million

waste Reduction/Energy Conservation (u.S. distribution Centers) • Shipping improvements of Cold Chain products — $700,000 savings in materials

and $1.1 Million in transportation costs

TRiR/daCR (miami lakes, florida) • 72 percent reduction over prior year

insurance Rates (Gpb Japan) • 40 percent rate reduction as a result of outstanding performance

air Handling improvements (Rathdrum, ireland) • 31 percent volume reduction, 6 gigawatt hour savings, 1,400 ton carbon dioxide

reduction and $460,000 savings


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Safety, Health and Environmental assessment of External manufacturers (Em)Schering-Plough was a leader in its industry sector in initiating a formal safety, health and environment

(ShE) assessment program for contract suppliers in March 2004 to manage ShE risks, liabilities and business

interruptions associated with selected suppliers. ShE assessments are conducted on suppliers of active

pharmaceutical ingredients (APIs), synthesis intermediates, bulk and finished products, and other critical

supply items. Priority for conducting assessments is given to suppliers that utilize Schering-Plough proprietary

technology, suppliers of products marketed under the company’s name, unique suppliers of key synthesis

intermediates or active pharmaceutical ingredients to be used in company products, and manufacturers

specifically identified in our drug registration filings.

For established suppliers that have already provided services to Schering-Plough, the priorities are established

based on their potential risk categorization. Suppliers are pre-screened and placed in potential risk categories

based upon six factors. These pre-screening factors include: the country of location of the supplier, types of

manufacturing processes employed, use or manufacture of hazardous/potent substances, and other criteria.

Questionnaires are subsequently used to collect additional background information on the suppliers. Any of

the suppliers falling into higher risk categories are targeted for on-site ShE risk assessments. For all new

suppliers, ShE risks assessments are carried out as part of the due diligence evaluations. Suppliers are

evaluated based on the potential risks associated with their ShE programs and potential impacts on the

safety and health of colleagues and surrounding communities, as well as potential impacts on the environment.

Since the launch of our program, more than 350 suppliers have completed ShE survey questionnaires and

approximately 200 on-site facility assessments have been conducted. All suppliers identified as medium to

high risk in these assessments have initiated formal action plans to implement our recommendations for

improvement, or they have been replaced with lower ShE risk suppliers. Follow up evaluations of these

suppliers are scheduled on a defined timetable.

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Sustainable (Green) Chemistry

Green chemistry is defined as “the design of chemical products and processes that reduce

or eliminate the use and generation of hazardous substances/wastes, create inherently safer

processes and increase process efficiency.” The application of green chemistry has become

part of Schering-Plough’s DNA for the development of drug substances that will reduce or

eliminate the use and/or generation of hazardous substances and environmental and human

health risks. As processes and molecules become increasingly more complex with higher

quality demand, the need also increases for the company to reduce its environmental

footprint by using newer, sustainable chemistry methods.

Schering-Plough has made a strong commitment to sustainable chemistry, sharing green chemistry practices,

integrating the program with colleagues around the world, encouraging Right First Time (RFT) principles in

the development of new chemical synthesis, and continually advocating the reasons why it makes sense for

the company to apply the 12 principles in its operations.

Schering-Plough Research Institute (SPRI) Chemical & Physical Sciences (CPS) and Global Safety and Environmental

Affairs (GSEA) co-hosted the company’s Second Sustainable (Green) Chemistry Symposium on October 2,

2008. The symposium was held for a half-day to allow participation from various R&D and manufacturing

facilities in Europe, including the facilities from the legacy Organon BioSciences. Overall, more than 100

colleagues from various organizations and countries participated in the presentations and discussions.

With a theme “Turning Challenges into Green Opportunities,” the symposium included seven technical

presentations, covering a broad spectrum of green chemistry applications, as follows:

• Incorporation of Green Chemistry Principles for Process Development of Key Product

• Solvent Recovery: a Green Classic

• Use of Amine Oxidase Mediated Desymmetrization

• Supercritical Fluid Chromatography (SFC) as a Green Technology for Pharmaceutical Process Research

• Route to Clean and Green Peptides

• Continuous Distillation for Reducing Solvent Usage During Solvent Exchange and Water Removal in Organic Syntheses

• Use of Alternative Solvent in Discovery continued on next page...

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Speakers at the Green Chemistry Symposium included (L-R): Dr. Gus Moffitt, vice president, GSEA; henry S. Yip, assistant scientist, CPS, SPRI; Tim Brennan, engineer, CPS, SPRI; Dr. Tao Li, associate principal scientist, CPS, SPRI; Dr. Jianshe Kong, senior principal scientist, Discovery Synthetic Group; A. herbert van der hoek, plant manager, API/BT Manufacturing, Plant 2, Oss, Netherlands; Dr. Ingrid Mergelsberg, director, CPS, SPRI; Dr. Ivo F. Eggen, director, Peptides, API Process Development, Oss, Netherlands; Dr. John Traverse, associate principal scientist, CPS, SPRI; and Dr. Rene Imwinkelried, vice president, CPS, SPRI. Not pictured: Dr. Greg Szpunar, senior vice president, Pharmaceutical Sciences and Drug Disposition.

The Green Chemistry Team is comprised of representatives from Chemical & Physical Sciences (CPS), SPRI, and Global Safety & Environmental Affairs (GSEA) (L-R): Dr. Yonggang Chen, associate principal scientist, CPS, SPRI; Chantell Laing, senior manager, GSEA; Elizabeth Kang, senior engineering manager, GSEA; Dr. Alex Zaks, development fellow, CPS, SPRI; Dr. Ingrid Mergelsberg, director, CPS, SPRI; Dr. Guy Gloor, associate director, CPS, SPRI; Dr. Lijun Wang, associate principal scientist, CPS, SPRI; Michael Minerva, director, GSEA; and Bruce Murphy, senior engineer, CPS, SPRI.


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The Green Chemistry Team, also known as the Green Chemistry Network of Excellence Core Team, meets on

a quarterly basis to discuss and review green chemistry-related activities, and fosters continuous implementation of

green chemistry throughout the company. Some of the activities sponsored by the team include Quarterly

Green Chemistry Communication Forums, workshops and quantification of green chemistry application via

a Process Sustainability Index (PSI) tool. dr. ingrid mergelsberg, ph.d., director, CPS, SPRI, a key member

of the team, is also a co-chair of the ACS Green Chemistry Institute’s Pharmaceutical Roundtable, an organization

of which Schering-Plough has been an active member since 2005.

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Carbon Disclosure Project

Schering-Plough participates in the Carbon Disclosure Project (CDP), which is an annual survey of public

companies worldwide with respect to the business risks and opportunities presented by climate change and

greenhouse gas emissions data. CDP’s annual Information Request is issued on behalf of institutional investors,

purchasing organizations and government bodies. The 2008 survey collected information on the climate

change strategies of 1,550 responding companies. The survey responses, which are publicly available on

CDP’s website, are scored and ranked. For the first time ever, Schering-Plough was listed in the Carbon

Disclosure Leadership Index (CDLI) for S&P Fortune 500 companies. Also, for the third straight year,

Schering-Plough’s overall ranking in the chemicals and pharmaceutical industry sector was above average.

CDP is an independent not-for-profit organization whose goal is to create a lasting relationship between

shareholders and corporations regarding the implications for shareholder value and commercial operations

presented by climate change. CDP holds the largest database of corporate climate change information in

the world. Since its formation in 2000, CDP has become the gold standard for carbon disclosure methodology

and process, providing primary climate change data to the global marketplace. CDP is supported by institutional

investors with a combined $57 trillion of assets under management.

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SHE Integration Process — Schering-Plough/Organon BioSciences

In preparation for the integration of Schering-Plough, Organon BioSciences

(OBS) and Intervet operations and functions in 2008, nine key work streams

were identified to assist in the smooth combination of the two companies.

Work groups were established to review ShE procedures and practices

employed at both companies to identify best practices for implementation

in the combined company. The nine critical ShE work streams were:

• ShE Information Systems

• Global Standards and Initiatives

• Environmental Remediation

• REACh/GhS Implementation (Registration, Evaluation and Authorization

of Chemicals / Globally harmonized Systems)

• Communications

• ShE Risk Assessment

• Metrics for the Future

• Energy Management

• Environment, health, Safety and Transportation (EhST) Auditing

Global Safety and Environmental Affairs (GSEA) created several networks

to integrate former OBS/Intervet operations from a ShE perspective.

Considerable progress has been made to date:

• GSEA reorganized and realigned its organizational structure and service

model to support the combined company by establishing ShE Business

Support Leaders for each major business segment. The new structure

increased alignment with the company’s individual business units and

also established networks of individuals with critical skills to address

given ShE focus areas, regardless of their reporting relationships.continued on next page...

The Moleneind site, located in Oss, The Netherlands, is part of Organon — the pharmaceutical business.

The Unterschleissheim site located in Germany is part of Intervet — the animal health business.

The Organon Diosite API/Biotech facility is located in Oss, The Netherlands.

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• A complete review of existing ShE information systems was completed and recommendations were made.

• A ShE Enterprise Risk Assessment was completed to reflect the integrated company.

• A three-phase Global ShE Standards transition plan was approved by the Corporate Environmental and

Safety Council for the new facilities. New facilities are closing out any gaps found against the first group

of standards and assessing gaps against the second set of standards. The transition plan will be completed

by the end of 2010.

• Environmental remediation activities at new facilities have been characterized and prioritized.

• A global task force was established to ensure that the pre-registration deadlines for the EU’s REACh

legislation were met by December 1, 2008.

• New facilities have been integrated into the EhST audit process.

• Regional communication meetings were held in Europe, Latin America, Singapore and the U.S.

during 2008 to communicate Schering-Plough’s ShE commitments, strategy and goals. Teams were

established to harmonize performance metrics, ensuring incorporation in business unit performance

management systems.

• A team was established and has been reviewing and assessing revisions to the current ShE

metrics used by Schering-Plough.

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LEADERSHIP Through SAFETY (LTS)

Since 2002, there has been continuous improvement in the company’s global safety performance as a result

of the development and implementation of the comprehensive global ShE management system. In 2004,

Global Safety and Environmental Affairs (GSEA) recognized that to sustain this level of improvement we

needed to continue efforts to build the best possible safety culture.

To meet this challenge, GSEA mapped out a path forward and facilitated the development and roll out of

an exciting new global process to foster employee ownership and empowerment by reinforcing the linkage

between safe behavior and leadership — which became known as lEadERSHip Through SafETy.

lEadERSHip Through SafETy consists of a series of modules that build upon each other which link important

safety practices with individual leadership. lTS is designed to encourage the active participation and involvement

of all colleagues in safety and to provide a means to actively promote environmental stewardship.


Time

Inju

ry R

ates

Effective Control“Average”

Safe Facility Design

Policies, Procedures, Training and

Compliance Audits

Management Systems, Metrics

and Accountability

Employee Ownership and Empowerment

Basics“At Risk”

Sustainable Control“Leaders”

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module 1 – Making a DifferenceLeads participants to better understand: why safety matters, how safety is a part of the company vision, why we must change our attitudes and the way we think about safety, the importance of leadership in helping the company to achieve its safety goals and to change our safety culture.

module 2 – Making the Right ChoicesProvides participants with tools that they can use to help each other to make better choices regarding their safety and the safety of their colleagues by using hazard assessment, critical behavior observation and coaching processes.

module 3 – Energizing Your Safety Teamhelps safety team members increase their knowledge about teamwork and better understand their leadership role to transform our safety culture.

module 4 – Understanding and Learning from Incidents

Makes participants more aware that when hazards and errors collide, incidents occur. It points out how participants can use what they learn from an incident to improve our safety and environmental prevention efforts. It stresses the importance of ensuring that the successive layers of protection built into our ShE management systems are effectively implemented to block the path of opportunity for an incident.

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Each lTS module starts with a facilitated training program which takes about three hours to complete. The

training is designed to be highly interactive and to provide multiple opportunities for peer-to-peer discussion

in both small and large group settings. The training sessions also require self-assessment and reflection, personal

commitment and follow-up action items as an integral part of the program. Abbreviated online versions of

Modules 1 and 2 have been developed for use with commercial and administrative personnel globally. Over

16,000 colleagues from former Schering-Plough operations were trained in Modules 1 and 2. Additionally,

over 15,000 administrative and commercial colleagues received training with the online version. A phased

rollout is planned for former OBS facilities in 2010.

While it may appear that this process relies heavily on training, critical for success is the active participation

and involvement of all global colleagues to take the concepts provided in the training and find novel ways in

which to integrate them into their day-to-day operations. Colleagues are also actively encouraged to apply

the ShE concepts learned in their personal lives off the job.

lEadERSHip Through SafETy has been recognized by line management as being a significant driver of

our sustained improvement in safety performance since its inception in 2006. Since its inception, the global

TRIR and DACR rates have been reduced by over 50 percent.

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

2004 2005 2006 2007 2008

Global TRIR Global DACR

LTS Implementation

59% reduction in global TRIR versus 200455% reduction in global DACR versus 2004


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The real success of lTS, however, has transcended the performance improvements, carefully reasoned

content, and methodical implementation plans. The true measure of the success of lTS lies with the

enthusiasm and willingness colleagues from the executive office to the shop floor have shown to move

beyond compliance and to not accept ‘good enough’ when it comes to the safety of themselves or others.

Safety excellence is the central tenet of our newly emerging ShE culture. however, we recognize that safety,

as with other core values, are not self-sustaining and the concepts presented in lTS must continue to be

reinforced, refreshed, and further developed to continue to model our belief that “Safety is a Core Value”

and will not be compromised.

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Emerging Issues and Opportunities

Schering-Plough is in the process of complying with several emerging regulatory requirements, including

the registration and the classification and labeling of chemical substances, and advising its employees on

concerns with the h1N1 virus:

1. REaCH – Registration, Evaluation and Authorization of Chemicals

2. GHS – Globally harmonized System of Classification and Labeling of Chemicals

3. H1n1 – Influenza Virus (Swine Flu)

The company’s strategy for complying with recent and future deadlines is explained in this section of the report.

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Emerging issues and opportunities

REACH (Registration, Evaluation and Authorization of Chemicals)

The European Commission (EC) approved REACh (Registration, Evaluation and authorization of Chemicals),

the legislative framework for the harmonized management of chemical substances in the European Union

(EU). The legislation entered into force on June 1, 2007. Also, on June 1, 2007, the European Chemicals

Agency (EChA) was established in helsinki, Finland, and charged with the responsibility for managing the

implementation of the new requirements.

The new law is based upon a “precautionary principle” to protect human and environmental health and safety.

The REACh process requires that manufacturers and importers of chemical substances provide notification

to EChA of the intention to produce in the EU or import into the EU those substances. Additionally, it is the

responsibility of the manufacturer or importer to prepare the necessary hazard and risk assessments of those

substances and communicate those findings in various technical dossiers, safety data sheets (SDSs), labels,

etc. REACh applies to both new and existing chemical substances. New chemicals must be entered into the

REACh process immediately; whereas, existing chemicals must be fully REACh-compliant over an 11-year

phase-in period which ends in 2018 depending on production volumes and use.

The onus to comply with the REACh Regulation is on industry, which has been given the responsibility to

manage the risks from chemicals and to provide safety information on the substances. Schering-Plough has

established a REACh-implementation plan as part of a global chemical management plan. The first milestone

in the REACh process, pre-registration, was successfully completed for all substances that Schering-Plough

manufactures in the EU or imports into the EU. The pre-registration effort included complete analyses of EU-site chemical inventories and communication with suppliers of REACh-affected raw materials. Schering-Plough

has also established a Global/REACh Chemical Management governance structure that includes leadership

from key stakeholders for the REACh process. A management plan to support global/REACh chemical

management has been developed and includes both site/regional support functions, as well as those in

global management areas, such as chemical sourcing, manufacturing, Information Technology (IT), legal,

and toxicology.

Other focus areas of activity to enable Schering-Plough to meet REACh compliance include hazard communication

and labeling, hazard classification, GhS (Globally harmonized System for Classification and Labeling of Chemicals),

risk assessment and management, and evaluation of IT systems for data management. Making REACh part

of an overall global chemical management strategy will allow Schering-Plough to comply with a number of

similar chemical management legislations with increased cost efficiencies, in timely fashion, and with alignment

to key business strategies.

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Globally Harmonized System (GHS) of Classification and Labeling of Chemicals

The Globally harmonized System of Classification and Labeling of

Chemicals (GhS) has been developed to improve consistency in hazard

labeling, facilitate international trade, and reduce the regulatory burden

associated with conflicting global requirements for classification and

labeling. All hazardous chemicals in supply, use and transport are within

the scope of the GhS. Since the GhS will impact Schering-Plough in all

business units and regions, a comprehensive compliance strategy has

been developed to ensure that all company sites follow the GhS labeling

guidance according to regional and local requirements. A core GhS

implementation team with representation from Global Safety and

Environmental Affairs (GSEA), Global Information Technology (GIT),

and key operating sites has been developed to address implementation

issues and provide guidance and training tools.

Implementation of the GhS in Schering-Plough will consist of three main components: (1) hazard classification

of proprietary Schering-Plough substances and mixtures according to the GhS criteria; (2) hazard communication

via labeling and Safety Data Sheets; and (3) training. Implementation of the GhS will have an impact on

various hazard communication program elements including, but not limited to, documented standards and

guidance, Safety Data Sheets (SDSs), labeling, and modification of computer programs/software for classification,

labeling and SDSs. GSEA will provide oversight for the implementation of the GhS, including awareness

training and coordination with sites regarding implementation options and compliance tools. GSEA’s Occupational

& Environmental Toxicology unit will be responsible for assigning the GhS classifications and maintaining

GhS-compliant SDSs for all Schering-Plough proprietary substances and mixtures according to regulatory

timelines and for communicating these classifications for use on labels.

Consistent with the above strategy, each Schering-Plough site is responsible for understanding its local regulations,

developing a GhS implementation plan, implementing a GhS labeling process at its facility and training site

personnel according to local regulatory requirements.

In general, the timeline for the GhS implementation (classifications, SDS and labeling) will be according to

the EU timelines of December 1, 2010, for substances and June 15, 2015, for mixtures or product formulations.

however, other regional GhS implementations will be evaluated and addressed at a local level according to

those local requirements.

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H1N1 – Influenza Virus (Swine Flu)

Schering-Plough has been closely following the global situation concerning the h1N1 Influenza Virus (Swine

Flu) and is issuing Corporate guidance as the situation evolves. Briefly, the symptoms of h1N1 flu in people

are similar to the symptoms of the more common seasonal human flu and include fever, cough, sore throat,

body aches, headache, chills and fatigue. Some people have also reported diarrhea and vomiting associated

with this influenza strain. Employees who have flu-like symptoms have been advised by Corporate Employee

health Services to stay at home and seek appropriate medical care through their personal physician or to call

their local Employee health Services for guidance on the next steps for seeking medical care. Before returning

to work after experiencing these symptoms, employees have been advised to contact their local Employee

health Services representative. Per recommendations from the Center for Disease Control (CDC), avoidance

and good hygiene are the best means to avoid infection.

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performance metrics data

Schering-Plough uses numerous metrics to measure

its performance in the areas of safety, health and the

environment against standards and objectives established

by regulatory agencies and the company. By measuring

its performance, the company determines its compliance

status with these standards and objectives and identifies

where to apply additional resources and programs to

improve performance. The Performance Metrics Table

sets forth data for the years 2004 to 2008, with links

to graphs and comments for 15 different metrics.

SCHERING-PLOUGH — PERFORMANCE METRICS DATA

Metric Units 2004 2005 2006 2007 2008Note (1)

GraphNote (2)

CommentsNote (3)

SAFETY

Global Total Recordable Injury Rate (TRIR) Note (4) 1.50 1.25 0.90 0.69 0.75

Global Days Away Case Rate (DACR) Note (5) 0.66 0.53 0.54 0.36 0.37

Global Days Away Case Severity Rate (DACSR) Note (6) 14.29 9.99 8.19 5.58 5.29

U.S. Sales Fleet Safety

�Reportable Collisions / Million Miles Driven (MMD) Note (7) 7.05 5.84 5.28 4.84 5.06

% of Reportable Collisions Note (8) 16.89 16.90 14.89 14.40 13.44

Lost Time Injury Collision Rate Note (9) 1.12 0.41 0.38 0.18 0.12

ENVIRONMENTAL [Note (10)]

Environmental Incidents No. / Month 27.0 22.4 12.3 7.9 20.3

Fines and Penalties $ US 1,000 1,100 13,000 9,100 8,400

Toxics Release Inventory Pounds x 103 271.7 260.0 202.1 161.5 335.6

Greenhouse Gas Emissions (Carbon Dioxide)

Metric Tons x 106 0.63 0.57 0.58 0.56 1.00

Hazardous Waste Generation Metric Tons x 103 21.46 17.26 15.11 13.95 18.29

Non-Hazardous Waste Generation Metric Tons x 103 19.92 28.19 16.87 14.81 25.78

Wastewater Generation Cubic Meters x 106 4.21 4.31 3.73 3.28 5.36

Potable Water Usage Cubic Meters x 106 3.40 3.48 3.02 3.04 5.11

Well Water Usage Cubic Meters x 106 2.80 2.69 2.90 2.42 3.04

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0

10

20

30

40

50

20042003 2005 2006 2007 2008 2009

Environmental Incidents

Ave

rag

e N

um

ber

/Mo

nth

(June YTD)

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performance metrics data

Table – Performance Metrics Data

SCHERING-PLOUGH — PERFORMANCE METRICS DATA

Metric Units 2004 2005 2006 2007 2008Note (1)

GraphNote (2)

CommentsNote (3)

SAFETY

Global Total Recordable Injury Rate (TRIR) Note (4) 1.50 1.25 0.90 0.69 0.75

Global Days Away Case Rate (DACR) Note (5) 0.66 0.53 0.54 0.36 0.37

Global Days Away Case Severity Rate (DACSR) Note (6) 14.29 9.99 8.19 5.58 5.29

U.S. Sales Fleet Safety

�Reportable Collisions / Million Miles Driven (MMD) Note (7) 7.05 5.84 5.28 4.84 5.06

% of Reportable Collisions Note (8) 16.89 16.90 14.89 14.40 13.44

Lost Time Injury Collision Rate Note (9) 1.12 0.41 0.38 0.18 0.12

ENVIRONMENTAL [Note (10)]

Environmental Incidents No. / Month 27.0 22.4 12.3 7.9 20.3

Fines and Penalties $ US 1,000 1,100 13,000 9,100 8,400

Toxics Release Inventory Pounds x 103 271.7 260.0 202.1 161.5 335.6

Greenhouse Gas Emissions (Carbon Dioxide)

Metric Tons x 106 0.63 0.57 0.58 0.56 1.00

Hazardous Waste Generation Metric Tons x 103 21.46 17.26 15.11 13.95 18.29

Non-Hazardous Waste Generation Metric Tons x 103 19.92 28.19 16.87 14.81 25.78

Wastewater Generation Cubic Meters x 106 4.21 4.31 3.73 3.28 5.36

Potable Water Usage Cubic Meters x 106 3.40 3.48 3.02 3.04 5.11

Well Water Usage Cubic Meters x 106 2.80 2.69 2.90 2.42 3.04

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0


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note (1): 2008 is the first year that the results of Organon BioSciences are included in the Schering-Plough totals.

note (2): To view graphs that are provided for certain metrics, click on the graph icon.

note (3): To view comments that are provided on each metric, click on the bubble for the desired metric.

note (4): TRIR – number of recordable injuries and illnesses per 100 employees per year.

note (5): DACR – number of recordable injuries and illnesses that resulted in one or more missed workdays

per 100 employees per year.

note (6): DACSR – the standardized rate of days away from work due to occupational injury or illness per

100 employees per year.

note (7): Reportable Collisions/Million Miles Driven (MMD): The number of reportable collisions divided by

the number of million miles driven in the reporting year by all company vehicles. Collisions represent

incidents involving a company vehicle and an authorized driver which results in personal injury

and/or property damage, regardless of who was injured, what property was damaged, to what

extent or where it occurred.

note (8): % of Reportable Collisions: The number of reportable collisions divided by the number of

company vehicles expressed as a percentage.

note (9): Lost Time Injury Collision Rate: Includes all injuries to company employees as a result of a

reportable collision that occurred “while driving for work” that involve day(s) away from work.

note (10): The environmental data reported in this section for energy consumption, carbon dioxide emissions,

hazardous and non-hazardous waste generation, wastewater generated and water usage are

compiled from manufacturing and research operations worldwide. Certain sales offices and

distribution centers have also been included in the data.

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performance metrics

Safety

Overall, the company delivered a strong safety, health and environmental performance in 2008. The

combined performance (Organon BioSciences, Intervet and Schering-Plough operations) significantly

exceeded expectations given the numerous and complex challenges of integration. Global safety

performance was better than performance in 2006 and only slightly above 2007 levels.

Global Total Recordable injury RateThe Global Total Recordable Injury Rate (TRIR) of 0.75 is 17 percent better than in 2006 and only nine percent

above the 2007 rate. For the third consecutive year, the company-wide TRIR fell below 1.0. Since 2000,

there has been a 70 percent reduction in recordable injuries and illnesses. In comparison to our pharmaceutical

peer group, former Schering-Plough operations are in the first quartile of TRIR performance, while the combined

company overall is in the second quartile, a better-than-expected performance. The TRIR through June 2009

is approximately the same as the 2008 rate.

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009YTD

Total Recordable Injury Rate (TRIR)*

*TRIR — number of recordable injuries and illnesses per 100 employees per year


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Global days away Case RateThe Global Days Away Case Rate (DACR) was 0.37 in 2008, which is 31 percent better than in 2006 and

only three percent above the 2007 rate. Since 2000, there has been a 69 percent reduction in Global DACR.

Former Schering-Plough operations moved into the first quartile versus our peer group, while the combined

company overall remained in the second quartile. The DACR through June 2009 is slightly above the 2008

rate, and appropriate actions are being taken to address this trend.

0.0

0.2

0.4

0.6

0.8

1.0

1.4

1.2

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009YTD

Global Days Away Case Rate (DACR)**

**DACR — number of recordable injuries and illnesses that resulted in one or more missed workdays per 100 employees per year.


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Global days away Case Severity RateThe Global Days Away Case Severity Rate (DACSR) was 5.29 in 2008 compared to 5.58 in 2007, a

decrease of of five percent. Over the past five years (2004 to 2008), the DACSR has been reduced

significantly, by almost 64 percent.

0

5

10

15

20

2004 2005 2006 2007 2008

Global Days Away Case Severity Rate (DACSR)***

***DACSR — the standardized rate of days away from work due to occupational injury or illness per 100 employees per year.


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prior Company Safety performance


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vehicle/fleet Safety programSchering-Plough recognizes the potential for serious injury or death and the losses that both the employee

and company could incur as a result of a vehicle accident. The company has increased its guidance to facilities

and education of employees about driving safety, with general information, technical and compliance support

tools, references, and guidance documents related to the vehicle/fleet safety program. These efforts show

continuous improvement in the three indices in recent years. The company recently conducted the annual

benchmark of its safety performance against the pharmaceutical industry peer group. In comparison to the

peer group, the U.S. fleet safety (vehicles) maintained its first quartile ranking in 2008 in all three categories,

but slipped from second ranking to third ranking in the injury collision rate. See the table and graphs below.


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1Reportable Collisions/Million Miles Driven (MMD): The number of reportable collisions divided by the number

of million miles driven in the reporting year by all company vehicles. Collisions represent incidents involving

a company vehicle and an authorized driver which results in personal injury and/or property damage, regardless

of who was injured, what property was damaged, to what extent or where it occurred.

Schering-Plough’s U.S. Fleet ranks 2nd out of 14 peer companies in regards to the Reportable

Collisions/Million Miles Driven metric.

2% of Reportable Collisions: The number of reportable collisions divided by the number of company

vehicles expressed as a percentage.

Schering-Plough’s U.S. Fleet ranks 2nd out of 14 peer companies in regards to this metric.


0

10

20

30

40

2004 2005 2006 2007 2008

% of Reportable Collisions

0

5

10

15

2004 2005 2006 2007 2008

Reportable Collisions / Million Miles Driven

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3Lost Time Injury Collision Rate: Includes all injuries to company employees as a result of a reportable collision

that ocurred “while driving for work” that involve day(s) away from work.

Schering-Plough’s U.S. Fleet ranks 3rd out of 14 peer companies in regards to this metric.

0.00

0.25

0.50

0.75

1.00

1.25

1.50

2004 2005 2006 2007 2008

Lost Time Injury Collision Rate

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performance metrics

Environmental


Environmental incidents and finesIt is Schering-Plough’s policy to promptly correct any noncompliance findings issued by a regulatory agency

and to resolve any outstanding issues, including the payment of fines and penalties, as soon as possible.

The company paid $8,400 in EhST-related fines and penalties in 2008, compared to $9,100 in 2007 and

$13,000 in 2006. None of these environmental fines or penalties had a material impact on the company’s

financial performance or operations.

Schering-Plough measures its global environmental performance on a monthly basis using an internal index

based upon the number of incidents (e.g., exceedances, spills, etc.) which require external reporting to an

agency or meet a more rigid internal reporting threshold. Although former Schering-Plough sites reduced

their environmental incidents by 56 percent versus 2007, the number of reportable environmental incidents

in 2008 increased significantly over the 2007 performance, with the inclusion of all former Organon BioSciences (OBS) sites in the Schering-Plough metrics database. Since 2003, however, the company has reduced environmental

incidents by 54 percent. Progress has also been made in 2009 with the number of incidents down by 27

percent compared to 2008 performance. See the figure below.

0

10

20

30

40

50

20042003 2005 2006 2007 2008 2009

Environmental Incidents

Ave

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Toxics Release inventory (TRi)Based upon data submitted to the U.S. Environmental Protection Agency by July 1, 2009, for reporting year

2008, the number of Schering-Plough facilities using toxic chemicals for which TRI reporting is required increased

from seven to nine relative to the previous year with the addition of U.S.-based OBS facilities to the inventory.

however, the number of toxic chemicals for which reporting is required decreased from 12 to 10.

In comparing 2008 with the previous reportable year (2007), total releases increased by 108 percent, primarily

because production doubled at one of the company’s major facilities. however, since 2002, total releases

have been reduced by 34 percent. Since 2000, total releases have been reduced by 53 percent.

The figure below shows the performance achieved by Schering-Plough in reducing TRI releases since the year 2000.

0

250000

500000

750000

1000000

2000 2001 2002 2003 2004 2005 2006 2007 2008

Total TRI ReleasesSchering-Plough Corporation

Poun

ds

OBS Acquisition


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Greenhouse Gas EmissionsSchering-Plough’s emission inventory of greenhouse gases comes primarily from the consumption of energy

in terms of carbon dioxide, which is the most significant greenhouse gas. A contracted utility bill pay system is

used to collect, verify and log data worldwide. Based upon this system, the company’s carbon dioxide emissions

increased by 79 percent from 2007 to 2008 (0.56 to 1.00 million metric tons). The large increase is due to the

addition of former Organon BioSciences/Intervet facilities into the database in 2008 through their acquisition in

late 2007 as well as increased production levels at several of our facilities. Similarly, over the past five years, 2004

to 2008, emissions have increased by 59 percent (0.63 to 1.00 million metric tons). On a normalized basis (per

dollar of sales), emissions increased by 22.5 percent from 2007 to 2008 as net sales increased from $12.690

billion to $18.502 billion.

Carbon dioxide emissions are shown in the figure below for the years 2004 to 2008.


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waste managementMetric tons of hazardous waste generated by Schering-Plough facilities in 2008 increased by 32 percent

compared to 2007. Non-hazardous waste tonnage also increased by 74 percent from 2007 to 2008. In both

cases, the increases are due to the addition of OBS/Intervet facilities into the database. however, in comparison

to 2004, Schering-Plough’s generation of hazardous waste in 2008 decreased by almost 15 percent even with

the expanded database, while non-hazardous waste increased by 29 percent. The figure below shows the waste

generated by Schering-Plough facilities from 2004 to 2008.

wastewater managementThe volume of wastewater generated by facilities increased by 62 percent from 2007 to 2008. The large increase

is due to the addition of OBS/Intervet facilities into the database. The 2008 volume also represents an increase of

26, 23 and 43 percent in comparison to 2004, 2005 and 2006, respectively. The figure below shows the volume

of wastewater generated by Schering-Plough facilities from 2004 to 2008.


Wastewater Volume Generated

Units 2004 2005 2006 2007 2008*

Cubic Meters x 106 4.21 4.31 3.73 3.28 5.36

*Includes former Organon BioSciences sites.

Hazardous Waste Generation

Units 2004 2005 2006 2007 2008*

Metric Tons x 103 21.46 17.26 15.11 13.95 18.29

Non-Hazardous Waste Generation

Units 2004 2005 2006 2007 2008*

Metric Tons x 103 19.92 28.19 16.87 14.81 25.78


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water usageThe figure below shows the amount of water used by Schering-Plough facilities in manufacturing processes,

for sanitation services and for general facility use for the period 2004 to 2008. Potable water usage in 2008

increased by 69 percent in comparison to 2007 due to the addition of OBS/Intervet facilities into the database.

Similarly, well water usage increased by 25 percent from 2007 to 2008. Compared to 2004, 2005 and 2006,

potable water, well water and total water usage all increased in 2008 because of the additional facilities.

Note: The environmental data reported in this section for energy consumption, carbon dioxide emissions,

hazardous and non-hazardous waste generation, wastewater generated, and water usage are compiled

from manufacturing and research operations worldwide. Certain sales offices and distribution centers have

also been included in the data.

Water Usage

Source Units 2004 2005 2006 2007 2008*

Potable Water

Cubic Meters x 106 3.40 3.48 3.02 3.04 5.11

Well Water Cubic Meters x 106 2.80 2.69 2.90 2.42 3.04

Total Cubic Meters x 106 6.20 6.17 5.92 5.46 8.15


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EnERGy manaGEmEnT

management Commitment

The efficient use of energy and energy conservation at the company’s

numerous sites, facilities and buildings worldwide are important to

Schering-Plough and its colleagues. These issues play a big role in

reducing our energy costs, which are significant, and more importantly

our emission of greenhouse gases, which come primarily from the

consumption of energy in various forms at our worldwide locations.

The company has long been an advocate of energy conservation

and stressed the efficient use of electricity, fuel oil, and natural

and propane gas.

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EnERGy manaGEmEnT


Energy Management Commitment

Schering-Plough is committed to the efficient, cost-effective, and environmentally

responsible procurement and use of energy throughout our global operations.

Through a proactive energy management program, Schering-Plough strives

to continuously improve the use of energy to manufacture our products

and operate our facilities. These efforts are intended to provide value to

our customers, employees, shareholders, and the communities in which

we operate, further reinforcing our vision:

“To earn trust, every day.”

Schering-Plough employs a variety of strategies to support this policy by:

• Developing an energy network, with senior management support, to establish and implement an effective global energy management program.

• Increasing the visibility and awareness of energy use and costs to Schering-Plough personnel.

• Engaging employees to continuously improve their energy efficiency at work and at home.

• Recognizing and rewarding energy efficiency behavior and performance to promote an energy efficient culture.

• Ensuring that our energy policy is aligned to successfully meet or exceed the Schering-Plough Greenhouse Gas (GhG) emission reduction goals.

• Developing and implementing best practices to improve energy efficiency and energy business processes throughout Schering-Plough Corporation.

• Identifying, evaluating, prioritizing, and implementing short-term, cost-effective energy conservation opportunities while developing long-term capital projects for energy technologies that maximize value to the company.

• Emphasizing energy efficiency and life cycle costing as key factors in equipment procurement, product development, and process/facility design.

• Securing an adequate, reliable, and cost effective supply of energy using conventional and alternative energy sources and evaluating and recommending new technologies.

• Supporting effective national energy efficiency policies and striving to be a leader in energy management.

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EnERGy manaGEmEnT


Energy Management Program

With a vision to manage energy strategically, Schering-Plough’s leadership has supported the Global Energy

Management Team’s (GEMT) mission to “develop global policies, programs and initiatives that will reduce

energy use by as much as 10 percent over the next several years.” As part of its commitment to continuous

improvement, GEMT has initiated the following practices:

• Assessing performance and opportunities

• Setting performance goals

• Creating an action plan

• Implementing the action plan

• Evaluating progress

• Recognizing achievements

In addition to instituting a company-wide energy management program, Schering-Plough has organized

cross-functional teams at different levels to guide and direct the energy program: (1) the Global Energy

Network for Improvement in Usage and Supply (GENIUS) Team to champion and lead site energy activities;

and (2) site energy teams to develop and implement local initiatives.

The company has also implemented a comprehensive, global Strategic Energy Communication Plan that has

educated colleagues on energy management, raised their level of energy awareness, motivated them to solve

energy issues, and recognized them for their contributions and achievements.

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EnERGy manaGEmEnT

Energy initiatives

To demonstrate its commitment to energy conservation and

the reduction of greenhouse gas emissions, Schering-Plough has

embarked upon a new global energy management initiative that

encompasses many individual projects and initiatives, several of

which are described in this report.

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EnERGy manaGEmEnT


EPA ENERGY STAR® 2009 Partner of the Year (POY) Award

In 2006 Schering-Plough’s leadership launched a strategic energy management

initiative designed to build “the foundation for an energy-efficient future.”

Involvement in ENERGY STAR®, a key component of that energy management

strategy, helped the company quickly develop its world-class corporate energy

program. ENERGY STAR® is a joint program of the U.S. Environmental Protection

Agency (EPA) and the U.S. Department of Energy (DOE) that helps organizations

and individuals save money and protect the environment through energy-efficient

products and practices.

As a result of the company’s partnership with ENERGY STAR®, as well as many other global energy-saving

initiatives, Schering-Plough received a 2009 ENERGY STAR® Partner of the Year Award at a ceremony in

Washington, D.C., on March 31, 2009. This award recognizes businesses and organizations that have

demonstrated their commitment to environmental protection through superior energy management that

integrated the use of ENERGY STAR® tools and resources in 2008.

Schering-Plough is very serious about its commitment not only to the communities in which it operates, but

also to preserving the planet’s precious resources. For decades, the company has been implementing energy-

saving initiatives in its facilities, which accomplish two important objectives: reducing greenhouse gases and

saving money.

Some of the major accomplishments and goals that contributed to the company’s recognition as a 2009

ENERGY STAR® Partner of the Year include:

• Reducing energy intensity by 3.7 percent from 2007 to 2008 under a newly launched strategic energy

management initiative

• Installing a 1.7 MW solar photovoltaic system, one of the largest in the United States, to reduce carbon

dioxide emissions by approximately 1,000 tons per year

• Reducing greenhouse gas (GhG) emissions – Schering-Plough’s global GhG emission reduction target

is a 10 percent absolute reduction of 2008 CO2 emission levels by 2013

• Building a web-based global energy data management system to monitor and control energy across its

worldwide sites, accounting for more than 16 million square feet of facility spacecontinued on next page...

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• Engaging the workforce in energy management by executing a strategic communication plan that has

raised awareness of energy issues and educated colleagues throughout the company

• Leading the pharmaceutical industry’s support for the completion of the EPA’s new energy performance

indicator (EPI) for pharmaceutical manufacturing plants in the U.S.; the company also actively participates

in the ENERGY STAR® Pharmaceutical Manufacturing Focus and laboratory benchmarking initiative

• Using the EPA’s EPI for Pharmaceutical Manufacturing to rate the efficiency of its plants and Portfolio

Manager to rate the efficiency of its other buildings and warehouses nationally; these EPA ratings helped

the company set improvement goals; and

• Participation in EPA’s Climate Leaders program and Green Power Partnership.

Posing with the ENERGY STAR® Partner of the Year Award, (L-R): Tom Pagliuco, director, Energy; Geoff Monk, vice president, Global Engineering Services and New Jersey – Puerto Rico Operations; Jean Lupinacci, director, ENERGY STAR Commercial and Industrial Branch, U.S. EPA; Walt Tunnessen, ENERGY STAR® National Program Manager; and Gus Moffitt, vice president, Global Safety and Environmental Affairs.

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EnERGy manaGEmEnT

Energy initiatives

ENERGY STAR® Site Recognition – Cleveland, Tennessee

The U.S. Environmental Protection Agency (EPA) recently

recognized Schering-Plough healthCare Products, Cleveland,

Tennessee, for being one of the first four pharmaceutical

plants to earn the ENERGY STAR® designation from the EPA

for ranking in the top 25 percent of energy performance

nationwide. The Cleveland facility on average uses nearly

35 percent less energy than similar pharmaceutical plants

across the country.

The EPA recognition demonstrates Schering-Plough’s company-wide commitment to efficient energy

usage and that colleagues at the plant understand the importance of using energy wisely and efficiently.

Schering-Plough is one of many pharmaceutical companies working in partnership with the EPA to measure

and benchmark their energy performance against others in the industry.

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EnERGy manaGEmEnT

Energy initiatives

Solar Panel Project – Summit, New Jersey, Site

Solar panels are a clean and environmentally sound means of collecting solar energy. Schering-Plough

recently completed a solar panel project at its Summit, New Jersey, site. This installation is a highly visible

statement of the company’s commitment to the environment and renewable energy. By using solar power in

place of conventional energy, the company reduces both its energy costs and generation of greenhouse gas

emissions or “carbon footprint.”

At the Summit site, the company partnered with PPL Renewable Energy, Allentown, Pa., to design, construct

and operate a 1.7 megawatt solar photovoltaic system. With panels located on top of seven buildings, the

system is one of the largest photovoltaic rooftop installations in New Jersey and North America. The peak

output of the system will be 1,400 kilowatt-hours. The system will provide up to 12 percent of the site’s peak

energy needs and reduce CO2 emissions by approximately 1.3 million pounds each year, the equivalent of

planting 123 acres of pine forest. In addition to generating power, the project creates a Solar Renewable

Energy Certificate (SREC), a tradable certificate representing all the clean energy benefits of the electricity

generated from a solar electric system.


The Summit site celebrates the completion of the Solar Panel Project. (L-R) Rick Klingensmith, president, PPL Energy Services; Fred hassan, chairman and CEO, Schering-Plough; Geoff Monk, vice president, Global Engineering Services and New Jersey – Puerto Rico Operations; Ian Mc Innes, senior vice president and president, Global Supply Chain; Robert J. Bertolini, executive vice president and CFO; and Tom Pagliuco, director, Energy.

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Standing next to a solar panel are (L-R): Brent Saunders, senior vice president and president, Consumer health Care; Tom Pagliuco, director, Energy; John Vasile, Summit associate project engineer; Tony Barone, Summit supervisor, Planning and Inventory Control; Karl Varnai, Summit principal project engineer; and Al Martino, director, Summit Facility Engineering.

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EnERGy manaGEmEnT

Energy Consumption

Energy consumption, relative to electricity used and fuel oil and gas burned

in various types of furnaces and combustion equipment at Schering-Plough

facilities, is indicated in the figure below for the years 2004 to 2008.

The consumption of energy in 2008 increased over 2007, and prior

years, with the inclusion of Organon BioSciences and Intervet sites

into the Schering-Plough database. As a result, electricity usage was

up by 36 percent, fuel oil usage was up by 14 percent, and gas usage

was up by 47 percent.

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SHE awaRdS and RECoGniTion

internal awards and Recognition

The Schering-Plough Safety, health and Environmental Achievement Awards

program was established six years ago to recognize and honor facilities, teams

and/or individuals who have:

1. Made significant contributions toward helping Schering-Plough achieve

its vision of global operational excellence through the highest standards

of safety and environmental performance, and

2. Demonstrated an exceptional level of commitment to the company’s safety,

health and environmental management systems and programs.

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Chairman’s Safety and Environmental Achievement Award

The Chairman’s Safety and Environmental Achievement Award

(Chairman’s Award), the company’s highest level of recognition in the

area of safety, health and the environment, is presented annually to a

single recipient for its record of sustained excellence in both safety and

environmental performance.

2008 Recipient:Schering-plough (avondale) CompanyRathdrum, Ireland (GSC)

Schering-plough (avondale) Company, Rathdrum, ireland – (L-R): chairman & CEO Fred hassan; Jimmy Conlon, technical support engineer; Jesus Caballo, safety manager; Brendan O’Callaghan, vice president, API/BT Operations, Global Supply Chain; Fergal Gilhawley, environmental/utility team leader; and Dr. Ian McInnes, senior vice president and president, Global Supply Chain. Chairman’s Award

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Safety Operational Excellence Awards

The Safety Operational Excellence Award is presented annually to recognize sites or units

in manufacturing, research and sales/administrative operations for the demonstrated growth

of a particular safety and health program, management system implementation, or successful

pursuit of third-party safety management systems certification(s).

2008 Recipients:

(1) Schering-plough HealthCare productsCleveland, Tennessee (GSC)

Beneficiary Non-Profit Organization*: Bradley County Local

Emergency Planning Committee (LEPC)

(http://www.bradleycountylepc.com) – Cleveland, Tennessee

(2) Global pharmaceutical business-SalesMilan, Italy (GPB)

Beneficiary Non-Profit Organization: Arche ONLUS

(http://www.arche.it) – Milan, Italy

(3) Schering-plough (avondale) Company Rathdrum, Ireland (GSC)

Beneficiary Non-Profit Organization: Royal National Lifeboat Institute (http://rnli.org.uk) –

Wicklow Town, Ireland

(4) Schering-plough Santé animale

Segré, France (GSC)

Beneficiary Non-Profit Organization: Association des Secouristes Croix Blando de Segré

(http://www.croixblanche.org) – Segré, France


Safety Operational Excellence Award

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(5) Schering-plough ltd.Singapore (GSC)

Beneficiary Non-Profit Organization:Singapore Institution of Safety Officers (http://www.siso.sg) – Singapore

(6) Schering-plough SwordsSwords, Ireland (GSC)

Beneficiary Non-Profit Organization:Marie Keating Foundation - (http://www.mariekeating.ie) – Dublin, Ireland

* beneficiary non-profit organization — Schering-Plough’s Safety, health and Environmental Achievement

Awards Program includes a grant of $2,500 from the corporation on behalf of award recipients to non-profit

organizations of their choice that are engaged in safety or environmental projects. These grants extend the value of the recipients’ safety and environmental efforts beyond Schering-Plough’s business units and subsidiaries

to the communities in which employees live and work. In 2009, 17 different non-profit organizations received

a grand total of $40,000 to further their safety and environmental efforts.

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Environmental Achievement Awards

The Environmental Achievement Award is presented annually to recognize individual

colleagues, teams or facilities for their environmental achievements, including the

development of effective environmental management systems and system elements,

innovation, and evidence of continuous improvement — including the implementation

of sustainable chemistry principles, community benefits, employee involvement, public

policy impact and business/economic benefits. The Environmental Achievement Award

for “Energy Excellence” recognizes individual colleagues, teams or facilities for their

development and implementation of energy initiatives that result in an improvement

in energy efficiency, cost savings and/or greenhouse gas (GhG) reductions.

2008 Recipients: Energy Conservation

(1) Energy Team, RathdrumRathdrum, Ireland (GSC)

Beneficiary Non-Profit Organization: Rathdrum Boys National School – Rathdrum, Ireland

(2) Singapore Trigeneration project TeamSingapore (GSC)

Beneficiary Non-Profit Organization:Waterways Watch Society (http://www.wws.org.sg) – Singapore

(3) Summit Site Energy CommitteeSummit, New Jersey (GSC)

Beneficiary Non-Profit Organization:South Branch Watershed Association (http://www.sbwa.org) –

Flemington, New Jersey


Safety Operational Excellence Award

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2008 Recipients: Sustainable (Green) Chemistry

(4) boxmeer buzolinone process Cross functional TeamBoxmeer, The Netherlands (GSC/Ah) / Summit, New Jersey (GSC/Ah)

[Shared Award]

Beneficiary Non-Profit Organization: American Red Cross: Millburn-Short hills Chapter

(http://mshredcross.org) – Millburn-Short hills, New Jersey

(5) asenapine process development Team Oss, The Netherlands (SPRI/GSC)

Beneficiary Non-Profit Organization: The Netherlands Society for Nature and Environment

(http://www.natuurenmilieu.nl) – Utrecht, The Netherlands

2008 Recipients: Environmental performance

(6) bendigo water usage Reduction TeamVictoria, Australia (GSC)

Beneficiary Non-Profit Organization:Conservation Volunteers Australia

(http://www.conservationvolunteers.com.au) –

Ballarat, Victoria, Australia

(7) brinny Engineering utilities and Environmental TeamInnishannon, Ireland (GSC)

Beneficiary Non-Profit Organization:Scoil Cnoc Gogáin hill National School

(http://www.gogginshillschool.com) – Cork, Ireland

Beneficiary Non-Profit Organization:Scoil Mhaoilíosa, Knockavilla School

(http://www.knockavillaschool.com) – Cork, Ireland

Note: The Brinney team split its grant between two organizations.


Energy Excellence Award

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(8) Cleveland alcohol usage Reduction TeamCleveland, Tennessee (GSC)

Beneficiary Non-Profit Organization:Cleveland/Bradley Keep America Beautiful Systems, Inc. –

Cleveland, Tennessee

(9) Rathdrum Community Engagement TeamRathdrum, Ireland (GSC)

Beneficiary Non-Profit Organization:An Óige (http://www.anoige.ie) – Laragh, Ireland

(10) animal Health manufacturing operationsMilton Keynes/harefield, United Kingdom (GSC)

Beneficiary Non-Profit Organization:The Marston Vale Trust (http://www.marstonvale.org) –

Bedford, United Kingdom

* beneficiary non-profit organization — Schering-Plough’s Safety, health and Environmental Achievement

Awards Program includes a grant of $2,500 from the corporation on behalf of award recipients to non-profit

organizations of their choice that are engaged in safety or environmental projects. These grants extend the value of the recipients’ safety and environmental efforts beyond Schering-Plough’s business units and subsidiaries

to the communities in which employees live and work. In 2009, 17 different non-profit organizations received

a grand total of $40,000 to further their safety and environmental efforts.

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Eagle Award for Safety Leadership

The Eagle Award for Safety Leadership recognizes individual colleagues

and teams who demonstrate exemplary commitment, leadership and

proactivity in the area of hazard reduction or regulatory compliance.

Candidates for this award demonstrate significant support and concern

for the safety of their peers, locally or globally. The following 46 recipients

were formally presented with their awards and certificates of merit in

ceremonies conducted at the facility level:


Business Unit INDIVIDUAL AWARDS Facility / Operation

Americas:

Global Supply Chain Mike Plouzek Elkhorn, NE

SPRI Tina Fleming Lafayette, NJ

SPRI Alison Romano Lafayette, NJ

Global Supply Chain Patricia Plazas Union, NJ

Global Supply Chain Keith Holland Branchburg, NJ

Global Supply Chain Susan Williams Kenilworth, NJ

SPRI Preston Davis Lafayette, NJ

SPRI Dr. Margaretann Halleck Lafayette, NJ

SPRI Dr. Kimberley Treinen Lafayette, NJ

Asia-Pacific:

Global Quality Operations Nova Chaw Singapore

Global Supply Chain Dahjalarrajah Thiagarajah Singapore

Europe:

Global Pharmaceutical Business George Dumphreys Mildenhall, United Kingdom

Global Supply Chain Bernhard Rumkamp Friesoythe, Germany

SPRI Frank Gunter Lucerne, Switzerland

2008 award Recipients:

Eagle Award for Safety Leadership

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Business Unit TEAM AWARDS Facility / Operation

Americas:

SPRI CPS Plant Safety Team Union, NJ

SPRI CHO Safety Team Union, NJ

SPRI Cambridge Safety Committee Cambridge, MA

SPRI Training Leadership Team Palo Alto, CA

Animal Health Terre Haute Animal Health Research Farm Terre Haute, IN

Global Supply Chain Central Weigh Safety Committee Kenilworth, NJ

Global Supply Chain GSC Ergonomics Team Elkhorn, NE

SPRI SCHRAP Team (Sub-Committee for Housekeeping, Recycling and PPE) Summit, NJ

Global Supply Chain Miami Lakes MiraLax Team Miami, FL

Global Supply Chain S-6 Team Effort Summit, NJ

Global Supply Chain Summit Facilities Engineering Summit, NJ

SPRI LAR Ergonomic Improvement Team Kenilworth, NJ

SPRI NJ Clinical Supply Areas Safety Team Kenilworth, NJ

Global Pharmaceutical Business NJ Commercial and Administrative Safety Committees Summit, NJ

SPRI Warehouse Rack Project Kenilworth, NJ

Global Supply Chain Jim Duthie and Dirk Clark Branchburg, NJ

Global Supply Chain Branchburg CBA Branchburg, NJ

Global Supply Chain Suwanee CBA Branchburg, NJ

Global Supply Chain De Soto Animal Health De Soto, KS

Global Supply Chain Intervet/Schering-Plough AH – Millsboro #1 Millsboro, DE

Global Supply Chain Intervet/Schering-Plough AH – Millsboro #2 Millsboro, DE

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Europe:

Global Pharmaceutical Business Schering-Plough Finland Safety Team Espoo, Finland

Global Supply Chain Heights Implementation Team Rathdrum, Ireland

Global Supply Chain Robert Bussey and Katherine Doyle Rathdrum, Ireland

Global Supply Chain Rathdrum Team Effort Rathdrum, Ireland

Global Pharmaceutical Business OPS II Safety Team Brinny, Ireland

Global Supply Chain Production Unit 1 Burgwedel, Germany

Global Supply Chain Engineering SHE Team Brinny, Ireland

SPRI SHE Assistants Team SPRI The Netherlands

Global Supply Chain Brinny Administration Building Refurbishment Team Brinny, Ireland

Global Supply Chain Swords ERT Swords, Ireland

Global Supply Chain Swords Hot Work Swords, Ireland

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Special Recognition

Special Safety, Health and Environmental Recognition — Special recognition was given to Dr. Gus Moffitt,

vice president, Global Safety and Environmental Affairs, for his leadership over the past seven years in making

Schering-Plough a leader in the area of safety, health and the environment. Dr. Moffitt was cited for his vision,

leadership and guidance; insistence on excellence in performance; tireless efforts; and demonstration of the

Leader Behaviors in the development and implementation of a world-class safety, health and environmental

program for the company that is unsurpassed in the pharmaceutical industry.


Special Recognition — (L-R): CEO Fred hassan; Dr. Gus Moffitt, vice president, GSEA; and Dr. Ian McInnes, senior vice president and president, GSC.

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Environmental achievement award for Energy Excellence — Tom Pagliuco, director, Energy, Global

Engineering, received special recognition for his numerous contributions to the company in energy management

and efficiency, which resulted in Schering-Plough being named a “2009 ENERGY STAR® Partner of the Year”

by the U.S. Environmental Protection Agency.

Special Recognition — (L-R): CEO Fred hassan; Tom Pagliuco, director, Energy, Global Engineering; and Dr. Ian McInnes, senior vice president and president, GSC.

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Safety Stars Program

The Schering-Plough Safety Stars Program was established in 2005 to recognize those company locations

that have worked a designated number of hours or year(s) without an injury or illness resulting in days away

from work (DAC). Effective January 2009, all Global Supply Chain, Schering-Plough Research Institute (SPRI),

Animal health Research and Development (R&D) and Consumer health Care R&D operations became eligible

for recognition under the Safety Stars Program. Safety Star Awards are conferred when an operation reaches

one of the plateaus shown in the following table:

When a location first achieves a Safety Star Award, a framed certificate and letter signed by the chairman

of the Corporate Environmental and Safety Council (CESC), noting the specific achievement, is sent to

the general/plant manager for the site/entity to celebrate the achievement and for display in a prominent

location in the facility. If a site/entity experiences a DAC and loses its status level, the site/entity is only

eligible for additional awards/status designation when reaching plateaus in accordance with a matrix

based on site/entity operational size.


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The following graphs indicate days away case performance, based on hours, by the Global Supply Chain

and the Schering-Plough Research Institute, as of June 30, 2009:


0

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

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San Agustin

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Shanghai

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Summ

it Maint

Schering-Plough Safety Stars ProgramGlobal Supply Chain — Days Away Cases

(Based on hours)

June 2009

Platinum

GoldSilver

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250000

300000

350000

400000

450000

500000

ElkhornM

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Santiago

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Sao Paulo

Cruzerio

Unterschleissheim

Schering-Plough Safety Stars ProgramGlobal Supply Chain — Days Away Cases

(Based on hours)

June 2009

Bronze

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0

500000

1000000

1500000

2000000

2500000

Schering-Plough Safety Stars ProgramSchering-Plough Research Institute — Days Away Cases

(Based on hours)

June 2009

Platinum

GoldSilver

Bronze

Global C

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Lab Animal R

esourcesN

eurobiology/In/In Diseases

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External awards and Recognition

The following global operations received external awards and recognition for their achievements in safety,

health and environmental performance in 2008 and 2009:

• aprilia, italy – ISO 14001 recertification.

• baton Rouge, louisiana – Occupational Safety and health Administration (OShA) Voluntary Protection

Program (VPP) STAR site recertification and membership in the U.S. Environmental Protection Agency’s

National Environmental Performance Track (NEPT) program.

• bEiSa, mexico – certificate of recognition for helping preserve Sierra de Guadalupe National Park

(fifth year), Clean Industry Certificate from PROFEPA, certification to Responsible Care standards for

two consecutive years, and ISO 14001 certification.

• bendigo, australia – recognized by both Coliban Water and the Australian Industry Group for its water

reduction project.

• brinny, ireland – certification under Irish Standard 393 for Energy Management.

• burgwedel, Germany – dual certification under ISO 14001 and OhSAS 18001 standards.

• Caen, france – OhSAS 18001 and ILO-OSh-2001 certifications.

• Cleveland, Tennessee – membership in U.S. EPA’s NEPT program and an ENERGY STAR® Award from

the U.S. EPA.

• Colombia – Environmental Excellence Award (fourth year) from the Depart. of Environmental Administration.

• Comazzo, italy – OhSAS 18001 certification and ISO 14001 recertification.

• Elkhorn, nebraska – Nebraska Safety Belt honor Roll Certificate.

• fortaleza, brazil – Moraes Né medal and certificate from the municipal council for its “Glass Turns Life”

program and waste management system.

• Harefield/newbury, uk – dual certification under ISO 14001 and OhSAS 18001.

• Heist, belgium – ISO 14001 certification.


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• indonesia – Zero Accident Award from the governor of East Java, Indonesian Government.

• kasukabe, Japan – Toshimi Okuno, ShE Coordinator, was recognized by the Fire Protection Association

of Kasukabe for handling of hazardous and flammable materials.

• kenilworth, new Jersey – designation as an “Environmental Stewardship” site by the New Jersey

Department of Environmental Protection for voluntary reductions in greenhouse gases and energy management.

• las piedras, puerto Rico – certification under OhSAS 18001, PRMA Quest Team Excellence Award to

Energy Custodian Team by the Puerto Rico Industrial Manufacturing Association, compliance recognition

from the Puerto Rico Aqueduct and Sewer Authority (PRASA), and President’s Award from the Puerto

Rico Manufacturers Association (PRMA) for the site’s 2008 safety performance.

• omaha, nebraska – 2007 honor Bronze Award from the Greater Omaha Chapter of the

National Safety Council.

• oss, netherlands – OhSAS 18001 and ISO 14001 certifications for the General Site Services and

Technical Site Services departments.

• Rathdrum, ireland – certifications under OhSAS 18001 and Irish Standard 393 for Energy Management,

and the National Irish Safety Organization Award for the second consecutive year.

• Salamanca, Spain – ISO 14001 recertification.

• Santa Clara, mexico – certificate of recognition for helping preserve Sierra de Guadalupe National Park.

• Santiago, mexico – Clean Industry Certification from the government of Mexico.

• Schering-plough Corporation – inclusion in the FTSE4Good Index by the FTSE4Good Committee for

second consecutive year, 2009 ENERGY STAR® Partner of the Year Award from the U.S. EPA, and first

time listing in the Carbon Disclosure Leadership Index (CDLI) for S&P Fortune 500 companies.

• Segre, france – OhSAS 18001 recertification.

• Singapore – Platinum Award from the Singapore health Promotion Board; 2008 Gold Award for the

Tablet facility for Workplace Safety and health from the Ministry of Manpower; Singapore government’s

Ecofriend Award to Goh Yong Keng, Engineering and Maintenance; and health Promoter Award to Jim

Killory, Technical Services, and Winne Phua, occupational health nurse.


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• Site Services, oss, netherlands – ISO 9001, ISO 14001 and OhSAS 18001 certifications for the Fire

Brigade, Customer Maintenance Teams and Project Engineering Office.

• Summit, new Jersey – New Jersey Clean Energy Rebates for several energy conservation projects.

• Xochimilco, mexico – ISO 14001 certification.

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