the impact of medicines - gsk · 3 this ehs report covers the calendar year 2002 and is the second...
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The Impact of MedicinesSustainability in Environment, Health and Safety Report 2002
Do more, feel better, live longer
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Contents
About this report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1About GSK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Report scope. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Executive statements. . . . . . . . . . . . . . . . . . . . . . . . . . 4Chairman of the Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Chief Executive Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Senior Vice President and General Counsel . . . . . . . . . . . . . . . . . . . . 5
Vice President, Corporate Environment, Health and Safety . . . . . . . . 6
Vice President, Employee Health Management . . . . . . . . . . . . . . . . . 7
Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8EHS and EHM vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Environment, health and safety policy. . . . . . . . . . . . . . . . . . . . . . . 10
Employee health policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
The EHS Plan for Excellence . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Targets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Organisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Corporate environment health and safety . . . . . . . . . . . . . . . 19
Employee health management organisation . . . . . . . . . . . . . 21
Partner organisations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Management systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Programmes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Business processes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Hazard assessment and communication . . . . . . . . . . . . . . . . 27
Environmental programmes . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Health and safety programmes . . . . . . . . . . . . . . . . . . . . . . . 30
Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Stakeholder communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Reward and recognition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
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Contents
Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Designing products for environmental sustainability . . . . . . . . . . . . 38
Ozone depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Pharmaceuticals in the environment . . . . . . . . . . . . . . . . . . . . . . . . 43
Biodiversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Genetically modified organisms . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Contaminated land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Occupational hazard evaluation and use of animals . . . . . . . . . . . . 49
Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Fines, penalties and serious events . . . . . . . . . . . . . . . . . . . . . . . . . 52
Fatalities and serious occupational injuries and illness . . . . . . . . . . . 52
EHS costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Energy consumption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Water usage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Air emissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Carbon dioxide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Ozone depleting substances/ozone depletion potential . . . . . 61
VOCs and POCP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Waste generation and management . . . . . . . . . . . . . . . . . . . . . . . . 65
Hazardous waste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Non-hazardous waste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Recycled waste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Wastewater . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Health and safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Lost time injury and illness. . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Injuries and illnesses without lost time. . . . . . . . . . . . . . . . . . 77
Verification statement . . . . . . . . . . . . . . . . . . . . . . . . 79
Welcome to Sustainability in Environment, Healthand Safety 2002, the GlaxoSmithKline review ofenvironment, health and safety programmes andperformance for 2002. It is a companion to TheImpact of Medicines, Corporate and SocialResponsibility Report 2002 and providesadditional information about our EHS programmesand details of our EHS performance and progress to targets.
By publishing the EHS report on the web1, we can include detailed information that has beenrequested by some of our reviewers. We can alsolink information within the report to make it easierto read just what each individual reader wants tosee. Although some of the information about ourFramework and programmes has not changed fromlast year, we have included it within this report and the download file to facilitate completeunderstanding of our EHS performance withouthaving to refer to previous reports.
This report is aimed at several audiences. For ourexternal stakeholders it outlines how we manageour EHS risks and presents our EHS performance.For our internal stakeholders, our employees andmanagers, it provides a broad overview of how we manage EHS and the progress we have made as a result of their contributions.
GRI Part C, Section 2 Profile
1
ABOUT THIS REPORT
We have referred to the Global ReportingInitiative Sustainability ReportingGuidelines (http://www.globalreporting.org),published in 2002, in setting the contentof this report, although the report coversonly the EHS aspects of sustainability.
The GRI icon, appearing in this report, refers to related GRI sections.
Global Reporting Initiative
1 This is a copy of “The Impact of Medicines: Sustainability
in Environment, Health and Safety Report 2002" as it
appears in "The Impact of Medicines: Corporate Social
Responsibility Report 2002” which can be found at
www.gsk.com/financial/reps02/csr02/ front.html
2
To facilitate understanding of this report some factsabout GSK are covered here but more informationabout GSK can be found in the Annual Reportand Accounts and on gsk.com.
GSK is a world-leading, research-basedpharmaceutical company with a mission to improvethe quality of human life by enabling people to domore, feel better and live longer.
Headquartered in the UK and with operationsbased in the US, the company is one of theindustry leaders, with an estimated seven per centof the world’s pharmaceutical market. GSK leadsthe market in four major therapeutic areas: anti-infectives, central nervous system (CNS), respiratory and gastro-intestinal/metabolic. In addition, it is a leader in the area of vaccines and has a growing portfolio of oncology products.The Consumer Healthcare portfolio of over-the-counter (OTC) medicines, oral care products andnutritional healthcare drinks, all are among themarket leaders.
GSK has over 100,000 employees worldwide. Of these, over 40,000 are in sales and marketing,the largest sales force in the industry. Over 42,000work at 99 manufacturing sites in 39 countries and over 16,000 are in R&D. R&D is based at 24 sites in seven countries. The company has a leading position in genomics/genetics and new drug discovery technologies.
GRI Part C, Section 2.1 to 2.8Organisational Profile
About GSK
3
This EHS report covers the calendar year 2002 andis the second produced by GlaxoSmithKline afterthe merger of Glaxo Wellcome and SmithKlineBeecham. (The 2001 report can be found ongsk.com. The environmental data in thePerformance section covers manufacturing and R&D operations worldwide, since they are theprimary sources of emissions and waste, as well assome aspects of our commercial operations. Wehave included the partial year information in thereport whenever this is feasible for manufacturingand R&D facilities that have closed since last year.
We collected injury and illness data from allmanufacturing and R&D operations and from mostoffice and sales locations. Between 2001 and 2002we collected data from an additional 25 office andsales locations. We may be missing 10 more smallsales and office locations and we will continue totry to establish basic reporting from all locations.
For the first time this year we have worked withour key contract manufacturer to collect EHS data.We will include it in our EHS report once we have verified that our collection methods areunderstood and yielding dependable measures.
This report is prepared by the CorporateEnvironment, Health and Safety (CEHS) departmentat GSK by Nancy English, PhD, Director, EHS Global Impact Assessment and Reporting withcontributions from Corporate Employee HealthManagement and many staff members.
Report scope
• It is the repository for EHS Standards,Guidelines, Tools and other EHSinformation as well as the central pointfor EHS-related announcements, newsand listings of events as well as a place to share good EHS practicesand ideas.
• It is the central collection point for EHS data provided in this reportand used by GSK and its business units to monitor progress and drive continuous improvement.
In addition to serving as the centralcollection point for the data, myEHSfunctionality includes:
• Creation and distribution of MaterialSafety Data Sheets (MSDS).
• Eco-design, occupational hygiene,hazard assessment and other tools.
• For sites that are currently ISO certifiedor that are in the process of ISO certification, myEHS provides all of the support functionality neededfor the required documentation andEHS management.
Structurally, myEHS is a combination oftwo commercial software packages, severalcollaborative working tools used withinGSK and other information technologies.2002 was the second year for myEHSalthough elements of it, such as the MSDSsystem, have been in use in heritageorganisations for several years. Itscapabilities, especially the range ofcapabilities for managing site EHS issues,are not yet fully used. However, as thefunctions and capabilities are integratedinto the way people work and they cometo depend on it, it should become evenmore useful.
GRI Part C, Section 2.10 to 2.16Report Scope
Underpinning all of theframework, providingsupport for all programmesand enabling collection andanalysis of the data in this
report is a state of the art intranet systemthat we have called the myEHS Communityweb site or myEHS for short. It has threemain functions:
• It is primarily a comprehensive EHSinformation management system thatprovides sites with tools for managingall of their EHS responsibilities andmeasuring their progress.
myEHS
“GSK puts great value on the safety of employees and the protection of communities and the environment. I am pleased to presentSustainability in Environment, Health andSafety, our EHS report for 2002, which we publishas a separate report on gsk.com so that we canprovide details of our EHS performance. Itrepresents the environmental element of
sustainability. You can also see our progress inmany of the social and economic aspects ofsustainability in The Impact of Medicines, Corporateand Social Responsibility Report 2002.”
Sir Christopher Hogg
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EXECUTIVE STATEMENTS
Chairman of the Board
environmental sustainability and our progress in2002 toward our 2005 targets. Sustainability is along term aspiration but we are making steadyprogress toward that goal. We will continue tobuild on what we have doneand try to find innovativeways to progress thesustainability agenda.”
Dr. JP Garnier
“Sustainability, by definition, is good for business,society and the environment. To be integrated intothe way we do business, it must be driven from the top. That is why I take a personal interest insustainability issues like finding a sustainable wayto provide medicines to people with the most needand protecting the environment and the health andsafety of our employees. This report is a companionto the CSR report and describes our programmes in
Chief Executive Officer
5
“GSK is responsible for building our business in a sustainable manner; but to make progress, we need to define sustainability for the manyaspects of our business. To help us define whatsustainability means for GSK, we dialogue withinternal and external stakeholders. And to achieveour long-term commitment for sustainability, weput in place a series of manageable projects. Theprojects that we launch address the needs of thecompany and its shareholders, the needs of society,the needs of our employees and the needs of theenvironment. In this way, we work toward a betterworld for our children and ensuing generations.”
Rupert Bondy
Senior Vice President and General Counsel
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Sustainability in EHS is a long term commitmentand I believe that the key to progress is creating an EHS strategy that builds on GSK business driversand meets the fundamental requirements ofenvironment, health and safety. In 2001 we put in place a framework of policies and standards thatset out our requirements for managing EHS. In 2002, we developed the EHS Plan for Excellence,a strategic plan with aspirations that are directlyaligned with business drivers. The plansystematically addresses key risks, moves us towardleadership by enhanced EHS performance in allaspects of the business and ultimately leads tocompetitive advantage and sustainability.
A sharp focus on employee safety is incorporatedthroughout the Plan for Excellence. In it we lay out our plans for reducing workplace injuries andillnesses; protecting people from health effects of chemical and biological exposures; identifyingprogrammes that will drive continuousimprovement in this area and developing aninherent safety culture within GSK. Ensuring thatsafety and health concerns are properly addressedat our facilities to minimise residual risk and avoiddisruption of product supply is foundational to thePlan and to our aspirational long term goal ofavoiding workplace injuries and illnesses.
In following the Plan toward environmentalsustainability, we will first focus on manufacturingprocesses that minimise resource use andenvironmental waste. Secondly, we will examinethe possibility of using renewable resources andevaluate the life cycle of GSK’s products andprocesses to help us understand how they fit intothe natural cycle. Fitting into the natural cyclemeans that raw materials would come fromrenewable sources and wastes would be assimilatedinto the environment without causing harm.
R&D is critical to the path to sustainability. R&D is involved in designing sustainability andenvironment, health and safety concepts into theprocesses that deliver our medicines to customers.This kind of “product stewardship” benefits thebusiness’ financial, social and environmentalsustainability.
Also, the innovative ways of working that resultfrom product stewardship create the opportunityfor GSK to lead the pharmaceutical industry’sthinking about product development andmanufacture. It is our goal to stimulate continuousimprovement in industry practice.
By taking the path to sustainability we believe that GSK can make a significant contribution to the goals of the UN 1987 Brundland Commission:to ensure that future generations have their needsmet at least at the current levels. We also believesustainability is the platform from which GSK willachieve its mission to enable people to do more,feel better and live longer.
I look forward to hearing your comments about the content and format of this report. Yourfeedback will help ensure that we are adequatelycommunicating the progress GSK is making inSustainability in Environment, Health and Safety.
James Hagan, PhD, PE
Vice President, CorporateEnvironment, Health and Safety
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GSK, recognising that our people are the singlegreatest source of competitive advantage, hasestablished Employee Health Management (EHM) to protect and enhance the health of GSK’s employees worldwide. EHM accomplishesthis through:
• Providing effective and efficient riskmanagement.
• Enhancing individual and organisationalcapability and productivity.
• Integrating health considerations intobusiness processes and work culture.
• Supporting compliance with the globalhealth policy and standards.
EHM teams work with the businesses to provideintegrated and targeted programmes. These teamsprovide employees a wide range of services toreduce risk of illness and injury, enhance well-beingand to positively impact the quality of life forindividuals and families, for instance, lifematters©
programmes.
EHM, in partnership with corporate and site HumanResources, Employee Health and Environment,Health and Safety (EHS) groups, helps the businesscare for its employees. Global policies on EmployeeHealth and EHS approved by our operating boardare supported by mandatory standards thatintegrate employee health and safety andenvironmental requirements. We apply thesestandards to all our facilities and operations aroundthe world. EHM’s Global Health Team helps GSKsites identify gaps in understanding of andcompliance with the global standards and providesongoing support and action planning.
Employee Health metrics help EHM measureprogress against its global health goals and allowfor effective targeting and resource allocation toimprove health outcomes. Based on the first yearglobal health experience data, we have identifiedthree major health areas on which we will provideadditional near-term focus.
These three areas of focus are musculoskeletal,mental health and conditions related to materialhandling. Multidisciplinary teams are working to set baselines, align reporting and develop
interventions. This joint effort will help to reducethe incidence and impact of these conditions in the future.
To accomplish our health goals, EHM depends on business strategy, GSK’s culture, otherdepartments’ processes and programmes, and thequality of line management. Therefore, EHM strivesto integrate health and safety considerations intobusiness processes, GSK culture and leadershippractices. It is through these integrated efforts thatGSK will safeguard and enhance the health andwell being of employees and as a consequence,enhance shareholder value.
Robert W. Carr MD, MPH
Vice President, Employee Health Management
Vision and StrategyThe GSK EHS Framework is the EHS managementsystem for GSK. It includes policies, standards,guidance materials, tools and activities that supportand assist the network of EHS professionals inmanaging EHS at their sites and throughout keybusiness operations.
GRI Part C, Section 1.2 Statement from the CEO
8
EHS FRAMEWORK
PLANPLAN IMPLEMENTIMPLEMENT CHECKCHECK ACTACT
FRAMEWORK FOR SUSTAINABILITY IN EHS
EHS ACTIVITIES AND RESPONSIBILITIES INTEGRAL TO BUSINESS
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GSK’s Environment, Health and Safety (EHS) andEmployee Health Management (EHM) Visions alignwith GSK’s strategic intent … to become theindisputable leader in our industry.
The EHS vision embraces the concept of sustainable development focused on environmentalsustainability. It recognises that sustainable business advantage occurs when we understandand address EHS issues. From the development ofproducts to their delivery, GSK has embarked on ajourney to identify and understand its relationshipto society and the environment. That is why in our EHS vision we strive for excellence in EHS.
Our vision is to achievesustainable competitivebusiness advantage throughleadership and excellence in environment, health and safety.
The EHM vision supports the value we place on our employees.
GSK is a recognised leader in protecting and enhancingthe health of its employeesglobally, enabling sustainablebusiness success.
EHS and EHM vision
Dr. Tachi Yamada, Chairman, R&D
“Sustainability principles are part of thedevelopment process in R&D. This benefitsnot only the environment but also thebottom line because it leads to design ofmaterial and energy efficient processes. By incorporating green chemistry and
green processes into the products of the future, R&D leads the way in
sustainability in GSK.”
GRI Part C, Section 1.2 Statementfrom the CEO
10
The GSK Environment, Health and Safety policy was one of the first policies the CorporateExecutive Team approved for the new company.The policy outlines the broad principles that GSK expects all operations to live by to achieve the EHS vision. The EHS policy and EH (EmployeeHealth) policy cover complementary aspects of theprinciples underlying responsible treatment of theenvironment and of our employees.
PurposeTo achieve the GlaxoSmithKline Environment,Health and Safety vision.
ScopeThis policy applies to all GSK employees worldwide.
PolicyReflecting its commitment to global leadership and excellence in Environment, Health and Safety,GSK requires all operations to:
• Protect the health and safety of our fellowemployees, contractors, visitors and othersaffected by our operations;
• Operate our business in an environmentallyand socially responsible manner;
• Commit to continuous improvement of Environment, Health and Safetyperformance;
• Comply with legal requirements and global GSK Environment, Health and SafetyStandards;
• Make Environment, Health, Safety and Loss Prevention integral to all GSK businessprocesses, planning and decision making;
• Establish business practices andEnvironment, Health, Safety and LossPrevention strategies that optimally utiliseresources and prevent pollution to ensurethe long-term sustainability of GSK and theglobal environment;
• Adopt a comprehensive approach to productstewardship, which includes key suppliersand contract manufacturers;
• Interact and cooperate actively with keystakeholders in resolving issues andimproving performance.
GSK will use effective systems, metrics and goals in the management of all of our Environment,Health and Safety activities.
ResponsibilitiesThe Corporate Executive Team is responsible forensuring the health and safety of GSK’s employeesand the protection of the environment and thecommunities in which GSK operates. The primaryresponsibility for implementation of this policy restswith local executives for each business unit.Employees are encouraged to participate activelyin, and accept individual responsibility forenvironment, health and safety matters and work in partnership with management to assurecompliance and support continuous improvement.
Environment, health and safety policy
David Stout, President, Pharmaceutical Operations
“EHS has long been an integral part of GSK’s R&D and manufacturingoperations but it is also a key priority for commercial operations reflecting ourethical commitment to ensure the safety ofour work force and the protection of theenvironment. Our strategy for sustainabilitystarts with an improvement to ourefficiency, which safeguards our workers,consumes less natural resource andgenerates less waste. This approach is a
“win-win” for the business, ouremployees, the community and the environment.”
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PurposeTo establish a policy to protect and enhance thehealth of GlaxoSmithKline’s employees, therebymaking a positive impact on productivity andreflecting the value we place on all our employees.
ScopeThis policy applies to all GSK employees andfacilities worldwide.
PolicyGSK is committed to global leadership in protectingand promoting the health, well-being and resilienceof its employees. Integrating health principles andpractices into Human Resources strategy andbusiness processes will contribute to GSK’ssustainable business success.
The company will• Protect the health of its employees and
others affected by its operations, aiming to eliminate all work-related injuries andillnesses.
• Assess health-related risks to employeeindividual and organisational productivityand proactively manage those risks.
• Ensure GSK’s competitive advantage by optimising the mental and physical well-being of its employees.
• Make health considerations integral to its Human Resource strategy and business processes.
• Develop a culture where employees feelvalued and are not discriminated againstbecause of disability.
• Promote awareness of health issues andtheir impact on all employees.
• Comply with legal and ethical requirementsand GSK Health standards.
GSK will use effective systems, metrics and goals to drive continual improvement in the health ofGSK employees.
ResponsibilitiesThe Corporate Executive Team is responsible forfostering and supporting a culture of health,productivity and resilience and ensuring the health,safety and well-being of employees at work.Managers are responsible for implementing theprinciples and practices embedded in this policy.Employees are responsible for workplace healthwithin the scope of their job and are encouraged to take responsibility for their own health and well-being.
Employee Health Management and CorporateEnvironment, Health and Safety will work inpartnership to support managers in theimplementation of this policy.
Employee health policy
Dan Phelan, Senior Vice President, Human Resources
“The protection of employees in theworkplace is the foundation of ourhuman resources programmes.”
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StrategyGSK’s EHS strategy of continuous improvementsupports corporate social responsibility andencourages a sustainable business culture. It isbased on the principles of the GSK Spirit:
• Passion: GSK works to protect people andthe environment in a company dedicated toimproving the quality of human life.
• Sense of Urgency: The absence of EHSprogrammes could endanger the lives andhealth of our employees and the quality ofthe environment.
• Entrepreneurial: We look for new waysof working throughout the organisation -from R&D to manufacturing to sales - in order to improve our efficiency.
• Innovation: We want to be among theleaders in the way we manage our EHSresponsibilities by adopting new approachesto chemistry, manufacturing processes,waste treatment, safe working, transparentreporting and everything we do.
• Integrity: We include our responsibility for good environment, health and safetymanagement in our definition of integrity. It is fundamentally the right thing to do.
The EHS strategy also aligns with GSK’s fivebusiness drivers:
PeopleThe single greatest source of competitive advantageis GSK’s people. It is vital that we protect thehealth and safety of employees, contractors, visitorsand others affected by our operations. We willdesign our facilities and processes, conduct riskassessments and provide training in order toeliminate work-related safety and health hazards.We will focus on employee health enhancement,mental well-being, causes of absence and methodsof rehabilitation in order to have a productive andresilient work force.
New Product PortfolioOur new products are carefully designed to help millions of people around the world livelonger, healthier and happier lives. To treat disease,the products must have biological activity and as a result have potential EHS risks and impactsthroughout their life cycle i.e. from raw materialacquisition to R&D and manufacturing through to patient use and disposal. We will apply theprinciples of product stewardship throughout ourorganisation to deliver positive EHS benefits andminimise risks to our business, people and theenvironment. Product stewardship encompasses
Planning
Dr. David Pulman, President, Global Manufacturing and Supply
“In manufacturing, our employees can be at risk from many hazards. It is my responsibility to ensure that allmanufacturing operations are managedsafely and that a culture of proactive riskminimisation is established. Employeehealth and safety is a key business priorityand must be at the forefront of allmanagers’ and staffs’ activities. Equally, we must ensure that all resources are usedresponsibly and efficiently so that theenvironment and communities in which weoperate are not at risk from emissions andprocess waste. A significant amount of ourtechnical effort is focused on minimisingwaste. By safeguarding our staff, and usingresources in an efficient manner, we willmove further down the track of sustainableand responsible manufacturing. This is good for patients, shareholders, employees,communities and the environment – and
hence good for our business. This will continue to be a focus in the future.”
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the assessment of the health, safety (excludingpatient safety which is assessed separately), andenvironmental risks created during all stages of the product’s life cycle and in particular at the keydecision stages in R&D. We will also apply productstewardship principles to our contractmanufacturers and key suppliers.
Product CommercialisationEnvironment, health and safety play an importantrole in commercialising products. Byintegrating environment, health and safetyplanning into decision-making on manufacturingprocesses, packaging design and product labelling,we help differentiate our products and protect andextend product life cycles. By fully embracing EHSprinciples, the sales organisation can minimise thecost of motor vehicle accidents and maximise theproductivity of sales and distribution staff whileoptimising their environmental efficiency.
Global CompetitorAs a global competitor, GSK seeks to be a leader in EHS within the pharmaceutical andconsumer health sectors by applying best businessprocesses globally and fostering a culture ofcontinuous improvement. As a global corporatecitizen, we will demonstrate our commitment tocorporate responsibility by implementing globalstandards, guidelines, targets and managementsystems, auditing our programmes and reportingpublicly and openly on performance. We will seekdialogue with external stakeholders and considertheir views when developing our approaches toEHS management.
Operational Excellence GSK’s operations must achieve legal compliancewith EHS regulations. In the spirit of operationalexcellence they must also continuously improveperformance particularly in the areas of accidentand occupational illness prevention, wasteminimisation and emissions reductions. We seek to integrate EHS aspects into GSK’s businessprocesses, such as capital planning, decision-making, purchasing, training and communications.
Planning (cont.)
14
During 2002 we developed a strategic approach to environment, health and safety to be publishedearly in 2003 as The EHS Plan for Excellence. ThePlan for Excellence shows how GlaxoSmithKline’senvironment, health and safety framework alignswith the company’s vision, strategic intent and keybusiness drivers. It shows how GlaxoSmithKline will progress through management systems toleadership and excellence.
In the Plan for Excellence we enunciate our long-term aspirations for environment, health and safety.Though we recognise that it may be difficult todeliver these aspirations quickly, they will guide theglobal organisation through the implementation of EHS management systems to leadership andtowards sustainability during the period of 2002 through 2010.
To help focus global EHS efforts on key strategic issues and draw attention to a progressive evolution from managing our key risks to advancing our sustainability, the Plan callsfor a yearly theme to be set. We have projectedthemes for the years until 2010, but theserecommendations will adjust year by year to takeinto account current business circumstances, long-term business direction and emerging issues.
EHS Theme for 2001: Laying the Foundations Specific objectives:
• Implement a new GSK EHS organisation
• Define the GSK EHS strategy
• Integrate EHS management systems from the heritage companies
• Establish EHS improvement targets
• Involve internal stakeholders
EHS Theme for 2002: Building the Framework Specific objectives:
• Develop programme implementation plans and schedules
• Develop GSK EHS guidelines and the audit programme
• Launch an intranet system to support EHS programmes
• Measure improvements against EHS targets
• Launch the CEO’s EHS Excellence Awards
• Establish a dialogue with externalstakeholders
The EHS Plan for Excellence
Jack Ziegler, President, Consumer Healthcare
“My experience in manufacturing and commercial operations reinforces my commitment to safeguard GSK’s
employees, the community and the environment.”
15
The 2001 and 2002 objectives were accomplished,setting the stage for the 2003 objectives.
EHS Theme for 2003: Reducing Key EHS Risks Specific objectives:
• Initiate a driver safety programme
• Assess occupational chemical exposures
• Develop tools to manage stress andergonomics
• Enhance process safety focus and tools
• Ensure site emergency plans are in place
• Provide tools for new product development
The EHS Plan for Excellence (cont.)
PROGRESS THROUGH ANNUAL THEMES
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Laying theFoundations
Buildingthe
Framework
Reducing Key EHS
Risks
EstablishingBusiness Positions
CompletingCore
Programmes
Investingin theFuture
BuildingSustainable
EHSPractices
IncreasingCompetitiveAdvantage
Innovatingfor
Sustainability
Reachingfor EHS
Excellence
Initial targetsachieved
EXCELLENCELEADERSHIPSYSTEMS
AchievedSecond generation
targets achieved
16
GlaxoSmithKline has set targets for improvingenvironment, health and safety performance to be reached by the end of 2005, starting from abaseline set in 2001. These improvement targetsare an integral part of the EHS Plan for Excellence.
Targets are based on practical operationalimprovement plans and forecasts. All GSKmanufacturing operations contributed informationabout environment, health and safety improvementplans and forecasts. The resulting proposals forcompany targets were compared withbenchmarking information and closely reviewed by environment, health and safety professionals,senior managers and management teamsthroughout the business.
Each GSK operation has improvement targetsbased on its own unique EHS profile and includesidentified local projects so that site resources canfocus on areas of greatest potential impact. Siteswith the largest impact have the most aggressivereduction targets, while sites with smaller impacthave continuous improvement targets. In this wayeach operation has targets, tailored to its impact,that should result in GSK achieving the overallcompany targets.
Targets
Jonathan Box, Senior Vice President, North AmericaSupply, Global Manufacturing and Supply
“US manufacturing operations are heavily regulated but our approach to EHS often exceeds regulatory requirements.This reflects our comprehensiveunderstanding of the EHS risks of ourbusiness and our ethical commitment toprotecting employees, the community andthe environment. In addition to beingethical, this makes business sense because
it means we can reduce our costs to deliver a higher quality product more efficiently.”
17
Targets (cont.)
2002 PROGRESS TO TARGETS
18
GlaxoSmithKline has several groups that identifygovernance and ethical issues, recommend ways to manage them and periodically review themanagement of the issues. EHS issues are amongthose reviewed and addressed by these groups.
The Risk Oversight and Compliance Council(ROCC) is responsible for co-ordinating the internalcontrol and risk management activities of thecompany. EHS is identified as one of the areas ofthe business that has the potential for seriousadverse consequences if not managed properly. The Vice President, Corporate Environment, Healthand Safety is a member of ROCC. The ROCCreports its evaluation of EHS risk management to the Corporate Executive Team.
The Corporate Executive Team (CET) activelymanages EHS issues. JP Garnier has identifiedhimself as the champion of environment, healthand safety for both the CET and the Board. Heensures that EHS issues are regularly debated toverify that we are pursuing responsible programmes for all GSK operations.
The Board of Directors has two committees thatevaluate the management and effectiveness of our EHS programme. These review and oversightmechanisms provide opportunities for environment,
health and safety issues to be considered at thehighest level of the organisation.
The Audit Committee of the Board reviewsEHS performance to confirm that issues areproperly managed and controlled. The VicePresident, Corporate Environment, Health andSafety makes regular presentations to the AuditCommittee so that they can review measures ofenvironment, health and safety performance andtrack our progress toward meeting EHS targets.They also review the results of EHS audits of GSK operations, contract manufacturers and key suppliers. The level of scrutiny of the AuditCommittee is in line with requirements ofSarbanes-Oxley.
The Corporate Social ResponsibilityCommittee (CSRC) advises the Board on social,ethical and environmental issues that have thepotential to seriously impact GSK’s business andreputation. The Vice President, CorporateEnvironment, Health and Safety provides reports to the CSRC on those aspects of EHS that havesocial implications above strict regulatorycompliance such as sustainability.
Organisation
Ed Kaufman, MD, Vice President,Corporate Ethics and Compliance
“GSK’s ethical culture invigorates the approach to compliance across thebusiness. The company manages risks tomeet its own aspirations as well as tocomply with external requirements. Thehigh priority placed on EHS risks at GSKreflects a concern for the environment,employees and the wider community; it isalso good for our business. I fully supportGSK’s formal process for managing EHS,
which is based on global policies and standards and takes amanagement system approach.”
19
The EHS Regulatory Advocacy and Strategyteam identifies emerging issues and works withgovernment and regulatory bodies to influence thedevelopment of regulations. It also co-ordinates theEHS Plan for Excellence that will enable GSK toachieve its EHS aspirations.
The EHS Product Stewardship team promotesthe ethical management of environment, healthand safety throughout the life cycles of GSKproducts. This group champions sustainable EHSpractices and works with R&D and New ProductSupply (NPS) to identify potential EHS life cycleissues early in the development process. Once theteam assesses EHS issues, they recommendmeasures to mitigate, control, and manage EHSrisks. The team also recommends to R&D strategiesfor developing manufacturing processes that useresources efficiently and that minimise emissions.And they help by developing and promotinginnovative tools, systems and methodologies.
The Hazard Assessment andCommunication team identifies andcommunicates environment, health and safetyhazards and risk information associated withresearch, development and manufacture of GSKproducts. This team focuses on R&D materials inthe Pharmaceuticals, Biologicals and ConsumerHealthcare businesses and especially on all newGSK products. Its task is to provide information that will support safe and effective controls forprotection of employees and the environment. In2002, the team began to systematically identifyand fill gaps in hazard information resulting frommerger-related transfers of products within themanufacturing network. The goal is to ensureconsistent, high-quality hazard information for all GSK materials.
The EHS Global Business Support teamdevelops partnerships and cost effective solutionsthat support GSK in managing key EHS risks. TheGlobal Business Support team members serve asCorporate Environment, Health and Safety’s leadcontacts with senior management and EHS staff ineach global manufacturing supply chain. This teamalso provides internal consulting and supportsprogramme management by offering technicalspecialists in the following EHS disciplines:environmental engineering, process safety, safetyengineering, driver safety, occupational hygieneand transportation of dangerous materials.
The EHS Global Audit team delivers an internalaudit programme, in co-ordination with EmployeeHealth Management, for all manufacturing andsupply, research and development and key officeand warehouse locations. In addition, this teamperforms risk-based assessments of key contractmanufacturers and suppliers and EHS due diligenceassessments for acquisitions and divestitures. In allcases the aim is to ensure that EHS risks andimpacts are managed effectively and to identifyopportunities to reduce risks and contribute tocontinuous improvement.
Corporate environment, health and safety organisation
Janice Whitaker, Senior Vice President, Quality, Global Manufacturing and Supply
“EHS is closely aligned with Quality, sharing the basic principles of management systems and continuousimprovement. Moreover, the success of the Quality programme (ie right first time, lower rejects, etc.) directly affects the success of the EHS programme
(ie less waste, safer workingconditions). Both Quality and EHS are top business priorities.”
20
The EHS Global Impact Assessment andReporting team collects and analyses data fromall operations for reporting to internal and externalstakeholders. It evaluates data contributed by allGSK operations and uses the information to assessthe effectiveness of EHS programmes and drivecontinuous improvement. The team also providesEHS information management software that can be used to manage EHS programmes and measureimprovement and progress to targets. In addition, it manages EHS reward, recognition and awarenessprogrammes that are the parts of the overall GSKEHS Framework devoted to motivating employees,raising awareness and driving continuousimprovement.
Corporate environment health and safety (cont.)
21
Corporate Environment, Health and Safety (CEHS)reports through the Legal Function and EmployeeHealth Management (EHM) reports through HumanResources. The two groups work closely togetherand are connected organisationally: the VicePresident of CEHS has a dotted line relationshipwith the Global Health Strategy and Governancegroup within EHM. The two groups collaborate onaudits, health and safety programmes andinitiatives, as well as on injury and illness reporting.
Employee Health Management OrganisationThe Global Health Strategy andGovernance team develops employee health-related policies, standards, guidance and tools. Theteam also reviews their implementation via a globalaudit process conducted in partnership with CEHS.They support a global employee health networkthrough recruiting, coaching, training professionalsand by the development and implementation ofbest practice programmes and initiatives. They alsoserve as lead contacts with selected seniormanagement and staff in each GSK business unit.In partnership with CEHS, they collect, analyse andreport employee health data from all GSKoperating units. In addition they co-ordinate andalign activities with CEHS, and CorporateCompliance groups and support productstewardship initiatives.
Managing health issues not related to workIn addition to preventing adverse health effectsrelated to work, GSK realises the importance ofmanaging behaviours that may be detrimental tohealth, but not related to work. This broader viewof health management means GSK can betterinfluence behaviours that present risks to goodhealth and go beyond the boundaries of theworkplace, such as smoking, eating and exercising.This view benefits employees and GSK becausemanaging health issues, whether they are relatedto work or not, reduces the costs of health care.Studies have shown that individuals with more thanthree health risk factors are significantly more likelyto file a workers’ compensation claim foroccupational illness or injury or to lose time from
work because of short-term disability or sicknessabsence. Therefore reducing health risk factors inemployees has a positive influence on work-relatedhealth costs and incidents. Several of the EmployeeHealth Management teams support personal healthprogrammes.
The Employee Health Support andOrganisational Resilience team developsGSK’s global vision, strategy and programmes for resilience, work-life balance, and healthenhancement to all GSK sites. It delivers theseprogrammes in the US and UK via a shared servicesmodel. The team collects and synthesisesinformation on best practices in these programmeareas and uses metrics and diagnostic tools tosupport workforce health and resilience and tomeasure effectiveness.
The EHM Shared Services teams, in partnershipwith management, Corporate and siteEnvironment, Health and Safety, and HumanResources, manage health risks associated withbusiness activity in the US and UK. They maximiseemployee productivity by protecting and restoringhealth and by minimising health-related absencefrom work. They support organisational productivityby promoting resilience and advising managers onissues where health impacts performance. Theycollect, analyse and report validated data tofacilitate evidence-based decision making.
The Health Planning and Analysis teamprovides the analysis and planning to informdecision making for EHM shared services in the USand UK. The team identifies new OccupationalHealth regulatory and legislative issues that affectGSK. It supports the healthcare benefits team toplan, analyse and develop effective health benefitplans. Finally it co-ordinates the planning anddevelopment of EH tools that support GSK’sproducts used in occupational settings.
The Communications and Technology teammanages technology projects and interfaces withother technology groups in data management andreporting processes to enhance service delivery tothe business. It also co-ordinates EHM’s internaland external communications.
Employee health managementorganisation
22
processes so that R&D scientists and engineers canuse this information when selecting materials andprocesses for producing active pharmaceuticalingredients.
Global Manufacturing and SupplyTo ensure that EHS issues are integrated intomanufacturing decisions, the Vice President ofCEHS has a dotted line reporting relationship to the President of Global Manufacturing and Supply.
Sales and MarketingTo integrate EHS into sales and marketing activities,CEHS’ Global Business Support team investigates theneed for expanded EHS programmes, such as driversafety and office safety, in this area of the business.
Partnerships with Support Organisations• Engineering, Technology and Capital
Management (ETCM) - The partnership with ETCM ensures that capital projects areefficiently designed with EHS considerationsbuilt in.
• Quality - CEHS uses quality principles inmanaging EHS and we cooperate with thequality organisation in the approach tomanagement of EHS.
• Human Resources - To support GSKemployees and ensure EHS is integrated intoemployee management, CEHS has a closeworking relationship with EHM, part of theCorporate Human Resources organisation.
• Operational Excellence - GSK’s businessenhancement programme, “OperationalExcellence” is applied to EHS programmesand incorporates EHS into processimprovement projects.
• Corporate Communications - CEHSintegrates EHS messages with corporatemessages to build environment, health andsafety into the GSK culture.
• Global Government Advocacy and PublicPolicy (GGAPP) - CEHS and EHM work withthe GGAPP organisation in the CorporateSocial Responsibility programme andcontribute to policy statements onenvironment, health and safety issues.
Partner organisations
GSK has established functional and reportingrelationships for Corporate Environment, Healthand Safety (CEHS) and Employee HealthManagement (EHM) to encourage the integrationof EHS throughout its business.
Research and Development (R&D) EHS GroupTo support a unified and consistent approach toEHS across the company and to facilitateintegration of EHS into the R&D agenda, the EHSfunction in R&D reports with a dotted line to CEHS.
R&D Chemical DevelopmentBy using more focused and data-drivendevelopment, GSK can significantly improveefficiency of new processes. This will make thetransfer of processes to manufacturing morestreamlined and give GSK a competitive advantage.CEHS supports Strategic Technologies withinChemical Development by providing supportingdocumentation and tools.
New Product SupplyTo support processes that are safer and moreenvironmentally benign, CEHS’ Product Stewardshipteam identifies occupational hazards and risks andenvironmental aspects of specific chemicals and
Ray Scherzer, Senior Vice President, Engineering,Technology and Capital Management, GlobalManufacturing and Supply
“The natural alliance between Engineering and EHS promotes successfulsite operations because EHS needs, such as occupational hygiene, process safety,ergonomics and pollution prevention, areincorporated in the design of new andupgraded facilities and manufacturingprocesses. Engineering is also completelyaligned with the concept of sustainabilityas it pertains to improved material andenergy efficiency. This is an inherentresponsibility of an engineer who needs
to accomplish a task efficiently,safely and cost effectively.”
23
Global EHS Standards Supporting GSK’s EHS and Employee Health policiesis a comprehensive set of 64 Global EHS Standardsthat establish specific requirements for thecompany worldwide. The Standards also establish amanagement system approach to legal compliance,continuous improvement and the management ofkey EHS-related business risks which is consistentwith internationally recognised managementsystem standards, such as ISO 14001 and OHSAS18001. They were developed in consultation withinternal stakeholders, and approved by J P Garnier,in 2001 and came into effect on 1st January 2002.
EHS GuidelinesEHS Guidelines are key components of GSK’s EHSFramework. They support the Global EHS Standardsby providing further information on therequirements of the Standards and by setting outan approach for achieving compliance that hasbeen approved by EHS and Employee Healthfunctions. They incorporate existing good practice,from both within and outside GSK. Draft Guidelinesfor each Standard were prepared and circulated forinternal consultation in 2002. Approved versionsincorporate feedback received and are published onthe EHS intranet site. They will also be available inprint in 2003.
Supporting Technical Information At times EHS professionals in GSK may need amore detailed and technical level of informationthan the EHS Guidelines provide. EHS technicalexperts prepare tools covering technical areas thatimpact EHS, including technical information guides,training packets, business process explanations andproduct stewardship guides. The technicalinformation guides and training packets cover awide range of subjects from general informationsuch as Managing Health and Safety at GSK tohighly specialised technical information such asConfined Space Entry. They cover environmentalinformation such as Waste Management and healthand safety information such as Ergonomics. Theproduct stewardship guides cover informationrelated to handling products and other materialsand expand the information included in MaterialSafety Data Sheets. These tools are distributedprimarily on the intranet with limited paper copies.
Management systems
Anton Herbig, Senior Vice President, InternationalSupply, Global Manufacturing and Supply
“In international manufacturing, we operate in many areas of the worldwith very different levels of EHS legislation. Maintaining good EHS practices can be challenging, however, I am pleased that we utilise GSK EHSStandards as a guide which has driven us to have a lost time injury and illnessrecord that is one of the best in the
company and to make significant progress to improve our environmental profile.”
24
GRI Part C, Section 3.1 to 3.20Corporate Governance andManagement Systems
Management systems (cont.)
Leadership and Management
Leadership and Excellence Management System Elements Product Stewardship Sustainable Development
General EHS Programmes
Employee Health and
EHS Services
EHS RiskAssessment
andManagement
Employee and ExternalStakeholderInvolvement
andCommunication
EmergencyPlanning and
Response
EmployeeInformationand Training
OperationalControl
PerformanceMonitoring and
Reporting
Investigationand Reporting
of EHS Adverse Events
Audit
Business Processes
New ProductDevelopment and Supply
Facility,Engineeringand Process
ChangeProcurement Contract
Manufacturers Key SuppliersLoss
Prevention of Business-
critical Assets
BusinessContinuityPlanning
Business,Product and
PropertyTransactions
Employee Health Hazardous ActivitiesEnvironmental Risks
Food Services and Drinking Water
Ergonomics and theWorkplace Environment
Health Surveillance
Health and SafetyEnhancement
Resilience and Mental Well-being
Reproductive Health
Absence andRehabilitation
Workplace Smoking
Drugs and Alcohol in the Workplace
Waste Minimisation and Recycling
Energy Efficiency
Packaging of Productsand Environmental
Claims
Product Returns
Waste Management
Water Management
Management of Emissions to Air
Ozone-depletingSubstances
Biodiversity
Soil and GroundwaterQuality
Process Risk Management
Transportation of Materials and Products
Occupational Travel
Use of Work Equipment
Use of Personal Protective Equipment
Permit-to-work Systems
Working at Height and Fall Protection
Storage of Materials
Contractors and Visitors
Workplace Transport
Off-site Working
Construction andDemolition
Hazardous Agents
Material HazardIdentification andCommunication
Occupational and Environmental
Exposure Limits
Chemical Agents
Sensitising Agents
Biological Agents
Fire
Flammable Liquids and Gases and
Combustible Dusts
Electricity
Noise
Ionising Radiation
Non-ionising Radiation
Asbestos and Polychlorinated Biphenyls
25
Capital and Procurement Teams representing engineering, procurement, EHS and other departments developed a technicalreview process for major capital investmentproposals. The process ensures that GSK considersenvironment, health, safety, security and lossprevention in the design of new facilities andprocesses. By identifying EHS issues early in aproject, GSK can engineer facilities and processesthat are efficient, safe for workers and theenvironment while still being cost effective.
As GSK strives to standardise and streamline itsprocurement systems, the purchasing department is building EHS considerations into their processesso that all new equipment meets EHSspecifications. This is particularly critical in areassuch as containment, noise control, ergonomics,machine guarding and energy management.
New Product SupplyIn 2002 a framework called the EHS MilestoneAligned Process (EHS MAP) was drafted. EHS MAPis intended to be an integral part of the GSK newproduct development process that will address EHSissues during new product development and supply.The process will:
• Incorporate EHS sub-processes and activitiesaligned to New Product Supply Milestones.
• Ensure EHS hazard and risk assessmentinformation is provided in sufficient time to allow early identification of issues during product development and technology transfer.
• Facilitate product development by ensuringthat EHS issues do not impede new productintroductions.
• As GSK translates its high potential R&Dpipeline into new products, EHS MAP shouldensure that EHS issues are appropriatelyresolved in a pro-active and timely manner.
Contract Manufacturers and Key SuppliersGSK uses contract manufacturers in a number of countries to supply certain products for localmarkets and, in a few cases, for specialist processesor technology. Initial agreements for new contractmanufacturers include GSK’s EHS requirementsbased on the applicable GSK standards. As existingcontract manufacturers renew their agreements,GSK’s EHS requirements are included.
To ensure that these companies are managing EHS risks and impacts responsibly, internal EHSaudit teams conduct EHS audits to assessconformance with GSK requirements and withlegislation. In addition, they conduct a programmeof assessments of identified key suppliers. Areas for improvement are highlighted to the contractmanufacturer or key supplier and progress ismonitored.
In 2002 EHS performance was generally good;some exceptions were identified and are beingfollowed up. A greater number of assessments andreviews are planned for 2003 and the EHSmanagement process will be further developed toinclude performance monitoring through collectingand analysing EHS data.
Safe Transport of Materials Research and manufacture of pharmaceuticalsinvolves transporting various chemical, biologicaland radioactive materials and products around theworld. To ensure compliance with national andinternational transportation laws and conventionsand to safeguard employees, the public and theenvironment, GSK employs transport safety advisorsand specialists at sites throughout all GSK businessunits that transport materials. This global networkof over 150 advisors in 38 countries, sharestechnical and regulatory information, best practicesand lessons learned in order to continuouslyimprove.
Business processes
Dr. Harry Ferres, Senior Vice President,Pharmaceutical Development, R&D
“In developing manufacturing processesfor formulating our products, manyparameters need to be considered, not least of which are those that relate to environmental, health and safety matters.”
26
Emergency Response and CrisisManagementThe discovery, development and manufacture ofpharmaceutical and consumer products involve theuse of hazardous materials and processes. GSKmanages the risks associated with these materialsand processes using sound engineering principlesand robust EHS programmes. All sites alsoincorporate emergency response and crisismanagement programmes into their managementplans. These programmes ensure that accidentswould be effectively managed and that any impacton the site, community, environment, or businesswould be minimised.
Acquisitions and DivestituresAs part of business due diligence, GSK employs anEHS due diligence process to ensure EHS aspectsare fully assessed and integrated into decisionmaking and resulting provisions. A number ofassessments were conducted during 2002.
Business processes (cont.)
27
GSK assesses environment, health and safetyhazards associated with the research, developmentand manufacture of our products in order to meetethical and regulatory requirements and to ensurethe workplace is safe and environment unharmed.
Hazard TestingIn 2002, we identified basic or “core” EHS hazardinformation for all GSK materials and processes,following extensive benchmarking and assessmentof regulatory and business needs. Core informationincludes such things as process reaction hazards,flammability, dust explosivity, possible adversehealth effects, occupational hygiene analyticalmethods and environmental fate and effects.
Our in-house hazard laboratory tests flammabilityand dust explosivity properties. In 2002, thenumber of tests conducted and the samplethroughput at our GSK testing facility increased byover 40%. We used innovative, in-house testingand a sequential, tiered approach forcharacterisation of occupational health effects toassess occupational health hazards for GSKmaterials and therefore required significantly feweranimals compared to traditional approaches. In2002 we also integrated environmental hazardassessment with safety and health effectsassessments. Assessments will continue with newPharmaceuticals in R&D with a major, additionalfocus in 2003 on EHS hazard testing for existingproducts and processes.
Occupational and Environmental Exposure LimitsGSK develops occupational and environmentalexposure limits for our materials in order to guidethe design and selection of chemical controlsystems to protect our employees’ health and theenvironment. During 2002, our experts establishednew occupational exposure limits for 45 materialsand completed innovative approaches for the rapiddevelopment of data-driven environmental limits.
Distribution of EHS HazardInformation on GSK Materials
GSK provides EHS hazard information in a unifiedformat to all operations using a global GSK intranetsystem called MSDS@gsk. This system providesmaterial safety data sheets (MSDS) and relatedinformation for GSK materials and products and for key manufacturing and process chemicals. Theinformation is updated and available almostinstantaneously worldwide. Information on GSKproducts and materials is available in English,French, Portuguese and Spanish; German andItalian versions are planned for 2003. To meetUnited States right-to-know requirements, in 2002,MSDS were completed for all pharmaceutical andconsumer healthcare products marketed in theUnited States. These MSDS are now accessible onthe GSK internet site (gsk.com) helping distributors,hospitals and other companies handling ourproducts to protect their own workers. In 2003, we will work on similar systems for GSK marketsoutside the United States.
Hazard assessment andcommunication
John Elliot, Senior Vice President, Primary Supply, Global Manufacturing and Supply
“In primary manufacturing we mustadhere to the highest standards ofEHS practice because of the rangeof hazards that we face.”
28
AirGSK identifies, characterises and assesses emissionsto the air from operations so that we can minimisethem or manage them in a way that eliminatesadverse impact to the public or the environment.We have achieved significant reductions in solventreleases through reformulation of final dosageforms using water-based technologies. We havedeveloped detailed guidance to support the EHSStandard on Managing of Emissions to Air.
Read about our air emissions, page 57
WastewaterGSK is committed to ensuring that discharges tothe environment are controlled to levels that willavoid adverse impact and conserve resources. Wehave developed detailed guidance for the standardthat addresses wastewater management and havea target to reduce chemical oxygen demand, ameasure of water pollution.
Read about our wastewatermanagement, page 71
WasteGSK identifies and assesses waste arising from siteactivities and then minimises or manages wastethrough the following hierarchy:
• Eliminate or reduce waste generationwhenever feasible.
• Substitute with sustainable materialswhenever feasible to minimise overallimpacts on air, water and land.
• Reuse waste whenever feasible.
• Recycle wastes in a manner consistent withlocal regulatory requirements.
• Use treatment and disposal options thatminimise the overall EHS risks and impactson air, water and land.
Read about our waste management,page 65
Natural ResourcesGSK strives to reduce natural resource consumptionby our operations to minimise impact on theenvironment. GSK has adopted global standards onSustainable Development, Energy Efficiency, WaterManagement and Biodiversity to ensure thesustainability of our operations. The CorporateEnvironment, Health and Safety department workswith Procurement, Engineering Technology andCapital Management and other corporate functionsto identify and implement natural resourceconservation projects.
Read about our water usage, page 56
Environmental programmes
29
Read about our R&D energyprogrammes, page 55
Environmental programmes (cont.)
GSK recognises thatmanaging energy supplycan result in short termsavings, but medium andlong-term savings come
from energy conservation and efficiencymeasures. So the company has a GlobalUtilities Sourcing group that evaluatesenergy usage throughout ourmanufacturing and R&D operations. Thisgroup focuses on both energy supply andenergy demand because decreasing theamount of electricity and fuel used savesmoney and also is closely tied to a decrease in CO2 production, a significantenvironmental benefit.
To foster on-going energy savings, manysites have “energy teams” or “energychampions” that monitor energy use,make energy conservation suggestions and set energy conservation targets. Inaddition to site-based programmes,operational organisations, such as thecompany’s pharmaceutical division, alsohave energy-user groups which set energy conservation targets.
Over the last two years, GSK has sought an external perspective on our energymanagement. An external energyconsulting company has conducted energyaudits at eight GSK manufacturing andfour GSK R&D sites. Many of theirsuggestions have been implementedincluding installation of energy efficientlighting, motion sensors to automaticallyturn off lights, energy efficient boilers andcomputer display screens, and automatedthermostat set-back in facilities that haveautomated building control systems. Overtime we expect these to contribute todecreases in electricity and fuel use.
GSK Energy Programmes
30
Driver safety We recognise that our sales representatives can be at risk especially from road traffic accidents, and ergonomic stressors such as manual handling.With the number of sales representatives GSK hasemployed around the world, and with the widerange of countries in which we operate, there mayat times be unfortunate accidents or fatalities.
The lost time injury and illness rate for ourcommercial organisation of 0.41 is greater thanthat of our manufacturing organisation. The maincause of these lost time injuries in commercial ismotor vehicle accidents. In total 21% of lost timeinjuries resulted from motor vehicles. In addition,two of the three fatalities that occurred in GSK in2002 were from motor vehicle accidents. Therefore,reducing the number of motor vehicle accidents incommercial operations is a key priority for GSK.
In 2002 we worked on reviewing currentprogrammes and developing a programme forcommercial operations focused on driver safety,office safety and on improving reporting ofincidents. Rollout of these programmes forcommercial operations will be a major focus in2003. We will be working with a few pilotlocations to test the programmes and will in thefuture focus driver safety training on areas of theworld with the highest number of road trafficincidents. The main elements of the programmebeing developed include:
• Educating drivers and their managers on roles and responsibilities.
• Improving investigation and reporting of work-related vehicle accidents.
• Developing driver check lists for use by line managers.
• Making available defensive driving courses and training.
• Assessing driver profiles to identifyindividuals needing additional training.
• Advising on car selection including safety, security, environmental andergonomic advice.
• Promoting safe driver behaviours.
• Providing guidance on mobile phone use.
Ergonomics Ergonomic-related illnesses remain the mostfrequent illnesses at GSK. In 2002, 43% of allillnesses and 65% of all lost time illnesses weremusculoskeletal in nature and resulted in 1,450 lostdays. Office and production tasks caused 75% ofthese illnesses. While the impact on GSK remainssubstantial, these figures represent reductions from2001 when ergonomic-related illness was 53% oftotal illness, causing 193 cases and 1,023 lost days.In addition to illness, 18% of all occupationalinjuries and 19% of lost time injuries were due tooverexertion and strains. These injuries resulted in2,231 lost days. Taken together, ergonomic-relatedinjury and illness account for 23% of all injury andillness and 23% of all lost time days. Sustainedimprovements in ergonomics will help GSKoperations meet the objective of a 15% annualreduction in lost time injury and illness rate.
Reducing ergonomic illness and injury has been a key focus for 2002. Current and past data,programmes and initiatives were reviewed. An EHSguideline and supporting tools were developed,providing a preferred approach to prevent andmanage the health and safety aspects ofergonomic risks. GSK sites progressed successfullocal initiatives. Continued rollout of theseprogrammes will be a major focus in 2003,supported by joint Corporate and GMS businessobjectives, local consultation, site audits, and globaltraining. One key objective is to use operationalexcellence processes and tools to establish anergonomic improvement process that reducesergonomic injuries and illnesses and improves
Health and safety programmes
Andrew Witty, President, Europe Pharmaceuticals
“As a trans-national organisation we need to ensure that our actions are
responsive to our customers’concerns about environment,health and safety governance.”
31
productivity and quality. Collectively, these effortshave combined to reduce the impact of ergonomicillness and will form the focus of our continuedefforts.
Occupational Hygiene and Control of Chemical Agents The pharmaceutical industry discovers andmanufacturers compounds that are designed tohave biological effects on the body. As a result, safehandling precautions are required to protect ouremployees in R&D and manufacturing. At GSK wetry to create a work environment that relies onengineering controls and technology to maintainexposures below the Occupational Exposure Limit(OEL) and comply with both GSK and legislativerequirements.
In 2002, many of our occupational illnesses andinjuries resulted from chemical exposures. Forexample, the second most common category ofoccupational illness was non-allergic dermatitiswhich includes irritant dermatitis and steroidwithdrawal rash. There were 154 and 64 casesreported in 2002 and 2001, respectively. The largeincrease was principally due to improvements inreporting recurrent cases of steroid withdrawalrash. While the number of cases increaseddramatically, the number of lost days in 2002decreased to 13 from over 290 in 2001. Twoadditional categories of chemical exposure-relatedillness merit special notice: allergic dermatitis andallergic respiratory disease, which together accountfor eight percent of all occupational illness. Theseillnesses remain a special area of focus as theyresult in life long health effects that can be lifethreatening. The primary causes of allergicdermatitis and respiratory disease continued to be chemicals, laboratory animals, and latex. Therewere some individual successes in 2002, such as a 54% reduction in latex allergy as compared to2001 experience. Sustained improvements inchemical agent control will help GSK operationsmeet the objective of a 15% annual reduction inthe lost time injury and illness rate. Work-relatedmental illness is not included in these statistics butis discussed below.
Managing Chemical Exposures has been identifiedas a key theme for GSK for 2003. To support thistheme, GSK has set objectives, established aChemical Agents Steering Committee (CASC) and made tools available. The objectives includeassessing worker exposures to high hazardcompounds at primary and secondarymanufacturing facilities. Corporate Environment,Health and Safety and Employee HealthManagement, in conjunction with Engineering,Technology and Capital Management, R&D andGlobal Manufacturing and Supply have launchedseveral tools to provide assistance with assessingrisk and designing controls. These tools includeguidelines, technical information documents,exposure control matrix and exposure controlengineering design solutions.
Work-Related Mental HealthWork-related mental illness is evaluated separatelyfrom other work-related illnesses and is notincluded in rates or numbers in this report unlessspecifically noted. As compared to 2001, work-related mental illness dropped to the third mostcommon cause of occupational illness, accountingfor 20% of all illness cases, 53% of all lost timeillnesses and 3,133 lost days of productivity. Inaddition, persons with mental illness had thehighest case severity, with a mean of 51 daysabsence per case vs. 36 days for all other illness. Of course, the impact of mental illness extendsbeyond the number of days lost to directly affectboth productivity and quality of life.
While many of the immediate stressors of themerger have passed, the focus for GSK continuesto be protecting and enhancing the mental healthof employees by fully implementing therequirements of the Global EHS Resilience andMental Well Being Standard. This effort includes:
• Ongoing identification and assessment of job related risks to mental well-beingthrough such tools as the Global Leadershipand Organisational survey, numerousbusiness initiatives, and the launch ofan intranet-based team assessment tool for managers.
Health and safety programmes (cont.)
32
• Reductions in risks and promotion of thegeneral mental well-being of employeesthrough such programmes as wellnessinitiatives and mental health care support systems.
• Confidential investigation, reporting andcorrective actions to prevent recurrences.
During 2002, progress was made in establishingglobally consistent diagnosis, investigation,reporting, and management of work-related mental illness cases. The number of cases increasedas did the geographic and business distribution ofreporting. Because the data lacked consistency forthe entire year, details of mental ill-health cases willagain be reported separately from key injury andillness measures as in 2001. However, given thepast years’ progress, it is intended to review theseillnesses for inclusion in the GSK lost time andother performance measures in 2003 and 2004.
Read about our health and safetyperformance, page 74
Human Immunodeficiency Virus (HIV)
GSK provides HIV/AIDS healthcare programmes foremployees. While arrangements differ dependingon local circumstances, all the programmes arebased upon a set of principles that reflect currentbest practice and draw upon Guidelines agreedjointly by the International Organisation ofEmployers and UNAIDS. Included in the principles:
• GSK does not discriminate against anyemployee based on HIV status.
• GSK provides information and training to staff on HIV and AIDS preventionappropriate to their needs.
• GSK ensures appropriate provision for thecare of HIV positive regular employees, theirlong term partners and immediate families,including access to voluntary testing withcounselling, and provision of anti-retroviral medicines.
• GSK maintains medical confidentiality at all times.
Process safetyControlling process hazards is a continuingprogramme in GSK with a goal of minimising riskthrough the use of expert engineering design andgood manufacturing processes. Many GSK productsbegin with the formulation and processing ofhazardous materials such as flammable solventsand combustible powders. Through GSK’s GreenChemistry and Green Technology programmesscientists look for opportunities to eliminate the useof these hazardous materials.
Where this substitution is not feasible our ProcessSafety Programme ensures that safety is built intothe process. GSK EHS Standards require allhazardous operations to complete Process HazardAnalysis (PHA) studies that include the identificationof hazards, the evaluation of risk and thedevelopment and implementation of correctiveaction where needed. The Process SafetyProgramme is a continuing management systemthat is in place for the life cycle of every processensuring that the highest level of safety ismaintained as the process is operated, refined andfinally decommissioned.
During 2002 several major projects were initiatedto improve the Process Safety ManagementProgramme at GSK. Corporate Environment, Healthand Safety developed technical guides specific toprocess safety that provide details of the riskassessment process as well as recommended bestpractice. These guides were distributed to GSKmanufacturing and R&D facilities. PHA assessmenttools including the intranet-based Process Safetyaspect of the Control Matrix, and Hazard andOperability (HAZOP) PHA systems were launched.
Health and safety programmes (cont.)
33
GSK R&D and manufacturing sites continue toimplement robust Process Safety ManagementSystems based on GSK’s Standards and on globaland local regulatory requirements. Using the GSKtools and best practice, research and productionfacilities continue to ensure that GSK’s processesare designed, installed and operated at the highestlevel of safety and environmental control.
In 2003 GSK will continue to enhance the ProcessSafety Programme through the launch of additionalPHA tools, engineering guides and trainingseminars.
Safety engineeringGSK’s safety engineering programme focuses onconstruction, plant safety and emergency responseactivities to ensure that our employees, contractors,visitors and the community are protected from theoperational hazards within our facilities. Throughinnovative programmes such as the RiskAssessment and Control Processes, ConstructionContractor Safety Programme, Capital Project EHSReview Process and our Emergency ResponseProgrammes we ensure that safety is built into andmaintained at our sites worldwide. The reward forsuch actions can be seen at sites such as Sonepat,India where a major construction project spanningthree years involving 1,700 construction workersrecorded 6 million hours worked without a losttime injury. During 2002 and continuing into 2003the GSK safety engineering community initiated siteimprovements and awareness campaigns to protectour UK sites and employees’ homes during the UK’sFire Brigade Union strikes. In addition, fire safety
awareness campaigns were launched in othercountries to reinforce fire safety in the workplaceand at home.
A continuing process within our Safety EngineeringProgramme is the development and distribution ofsafety engineering guides and safety alerts. Theseintranet-based tools provide engineered solutionsto fire, explosion, electrical, machine guarding andother operational risks. These guides provide astandardised GSK global approach to difficult safetyrisks.
For 2003 we will be expanding our globallystandardised approaches to manufacturing hazardsby developing safety engineering design guides andby implementing process safety risk analysisprogrammes for manufacturing operations that aretraditionally not covered by government-regulatedprocess safety programmes.
Health and safety programmes (cont.)
Robin Harvey, Senior Vice President, ConsumerSupply, Global Manufacturing and Supply
“In the manufacture of the large volumes of consumer products, we hold
protection of employees and theenvironment among our highestbusiness priorities.”
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In 2002 GSK introduced a new EHS Audit processand validated an audit scoring system. The scoringsystem will be fully implemented in 2003. An EHSaudit assesses implementation and conformancewith the Global EHS Standards and with keylegislation and is a key element of the continuousimprovement process.
Auditors have a broad range of EHS experience andknowledge and include Environment, Health andSafety and Occupational Health professionals. Allauditors are certified as lead auditors against theInternational ISO 14001 EnvironmentalManagement standard. GSK aims to audit sitesonce every three years with more frequent visits forselected sites, depending on risks and issues raised.
In 2002 auditors assessed 21 GSK sites andperformed seven audit follow-up reviews. Ingeneral, there was a good level of performance atmost sites. In particular performance was goodagainst many of our environmental standards butaspects related to employee health and handling ofchemical agents were identified for improvement.As part of the continuous improvement process,auditors monitor progress on actions arising fromaudit findings. The implementation of a web-basedtool is planned for 2003 to assist with this process.
A pilot certification programme began in 2002 withGlobal Manufacturing and Supply to determine the
feasibility of obtaining company-wide certificationto the International Standards on EnvironmentalManagement Systems (ISO 14001) and health andsafety management systems (OHSAS 18001). In thepilot programme a third-party registrar reviewsGSK’s EHS Standards and auditing procedures andcompletes certification audits of up to five GSKsites. The aim is to validate a sampling method sothat the company can consider a sector orcompany-wide approach to certification in thefuture. Currently 12 of our manufacturing sites areISO certified; three of these also are OHSAScertified. The certified sites are in Belgium, Egypt,France, Germany, India, Italy, Spain and Turkey.
Audit
Jean-Paul Reynaud, Senior Vice President, EuropeSupply, Global Manufacturing and Supply
“With regulators and the public expressing increasing concern about EHS issues in Europe, we need tocontinuously improve our manufacturingprocesses to get better EHS results in ourEuropean sites in order to achieve our
goal of improved environment for our employees and the community in general.”
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We maintain an active dialogue with our internalstakeholders, our employees and managers, toshare with them the information necessary tointegrate EHS considerations into all aspects of thebusiness and their jobs and responsibilities. Wecommunicate with EHS professionals at sitesthrough meetings, e-mail, the intranet site anddocuments. These EHS professionals review andadd value to the development of the Framework,including the Standards, guidelines and tools, tothe Plan for Excellence, to target setting and to allaspects of the EHS programme.
Our external stakeholder meetings includerepresentatives from academia, government,investors, customers and non-governmentalorganisations. Each year we give stakeholders theopportunity to review our programmes, reportingand progress against their expectations and provideus with suggestions for improvement.
We participate in many surveys of our EHS practicesand performance for investment managementcompanies and rating organisations. Business in theEnvironment rated GSK first in the pharmaceuticalsector in the 2002 7th Index of CorporateEnvironmental Engagement. With a score of 96%,GSK was placed in the Premier League. We areincluded in the Dow Jones Sustainability Index andin the UK FTSE 4Good. GSK ranked fourth out of22 in the pharmaceutical industry with a score of B- overall and B in environment performance byOEKOM, an investment rating agency in Germany.We work closely with major socially responsibleinvestment groups in the UK.
In addition to the stakeholder dialogue conductedby Corporate Environment, Health and Safety onbehalf of the corporation, many of our operationshave continuing dialogue with their neighbours andcommunities; with regulators and local authorities;and with trade unions where workers areunionised.
GRI 2.9
Stakeholder communication
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The Chief Executive Officer’s Environment, Healthand Safety (EHS) Excellence Awards Programmepromotes improvements in GSK’s use of human,environmental and economic resources byrewarding innovation, effective over the long term,that can be shared within GSK. A panel of experts,drawn from academia, government and non-government organisations, and the GSK Board ofDirectors, recommends award winners from a list offinalist projects prepared for them by a reviewcommittee internal to GSK. Nominations of projectsto be considered in the programme may come fromany part of GSK’s organisation.
The programme makes awards in three categories.Initiatives that foster responsible use of human,environmental and economic resources with thelocal community may be awarded an EHSCommunity Partnership Award. Programmesthat demonstrate improvements in EHSmanagement and performance and heightenedEHS awareness may win an EHS InitiativeAward. Projects that benefit environment, healthand safety through new and efficient chemistry ortechnology may win a Green Chemistry/GreenTechnology Award. Each winning site isrecognised with a specially designed trophy and theopportunity to make a donation to a charitableorganisation selected by the winning team.
In 2002, the first year of the awards programme,67 applications were received from 40 sites in 20countries. The winners in the first year were:
Community Partnership• First Prize: “Helping Hands To Small
Businesses” Ulverston, UK. GMS PrimarySupply
EHS Initiative• First Prize: “Innovative Health and Safety
Concepts and Approach for Construction ofNew Horlicks Facility” Sonepat, India. GMSConsumer Healthcare.
• Second Prize: “Waste ManagementProjects at Ankleshwar” Ankleshwar, India.GMS Primary Supply.
• Third Prize: “Leave Work The Way YouCame - A Total Approach to Safety in aManufacturing Organisation” Aiken, USA.GMS Consumer Healthcare.
• Special Commendation: “IntegralWaste Management System” Bogota,Colombia. GMS Consumer Healthcare.
• Special Commendation: “Safety AndEnvironmental Achievements in DemolitionAnd Construction Activities For AugmentinXR Tablet” Quality Road, Singapore. GMSPrimary Supply.
Green Chemistry/Green Technology• There were no Green Chemistry/Green
Technology awards made in 2002.
Reward and recognition
“I am proud of the GSKpeople who have won theEnvironment, Health andSafety Excellence Awards.They have been innovative
and passionate about making sure we aresafe, healthy and good stewards of theenvironment. It is to encourage peoplelike this that I sponsor these awards.”
Winners in each categoryreceive a trophy based onthe shape of a Möbius strip,a one sided surface havinga continuous edge, chosen
to suggest the unity of a committed teamand the continual challenge of EHSimprovement.
Dr. JP GarnierChief Executive Officer,GlaxoSmithKline
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In 2002 winning project teams nominated thefollowing charitable organisations to receivedonations: American Cancer Society, USA; CharitiesAid Foundation, India; Missionaries of Charity,India; and Ulverston Life Education Support Group,UK. Members of the external selection panel whohelped in the adjudication of the awards selectedthe following organisations to receive donationsfrom GSK on their behalf: Brigham and Women’sHospital, USA; Fairlynch Art Centre and Museum,UK; Millview Resource Centre, Ireland; Otter ValleyAssociation, UK; Oxfam, UK.
Read about our environmentalprogrammes, page 28
Reward and recognition (cont.)
“Helping Hands To SmallBusinesses” first placewinner in the EHSCommunity Partnershipcategory of the CEO’s EHS
Excellence Awards described a £326Kproject to deliver waste minimisation and environmental managementimprovements to small businessesthroughout the County of Cumbria, UKwhich was initiated by the GSK Ulverstonsite. They developed it with private andpublic sector partner organisations. Overa three-year period from April 2002 -March 2005, this project will support small businesses to promote wasteminimisation. It will also encourage theuse of formal environmental managementsystems to improve small businesses'ability to respond to environmentallegislation and supply chain pressures. Thepanel of external judges felt this effortillustrated GSK’s leadership inenvironmental matters, socialresponsibility, involvement withenvironmental management systems andthe nurturing of small businesses througheconomic and environmentalimprovement.
Ulverston, one of the largest primarymanufacturing sites in GSK, producesantibiotics by fermentation and hasextensive chemical processing facilities,solvent recovery, incineration and energygeneration. Ulverston currently employs1,100 staff in a town with a population of 12,000. The site has a very high profilein the area as a major employer and interms of the site environmental footprint.It produces a local environmentalperformance report that is delivered to allhouses in Ulverston. In addition it has asite liaison committee which includes localresidents, town councillors and theEnvironment Agency.
EHS Community Partnership Winner
GSK aspires to be a sustainable company andrecognises that moving from aspiration to realitymay take years. Initially we will work towardenhancing our environmental sustainability whiledelivering new products faster and better. We havelaunched an eco-design toolkit that is primarily fornew product development, but may also be of helpfor product transfer or redesign of processes.
The toolkit will help GSK bring products to marketfaster because the eco-design principles andpractices will guide scientists and engineers todesign-out potential problems early indevelopment.
It will help us bring products to market more cost effectively because eco-design principles and practices will enable GSK to use less materialand energy to make our products. It enables R&Dto address potential environment, safety and health issues before a process is handed over to manufacturing where the cost to address EHS issues is considerably higher.
The toolkit is currently composed of severalmodules. Each of these modules considers the EHS impacts of materials, processes and servicesfrom the time raw materials are extracted throughto the ultimate fate of products and wastes in theenvironment. The modules currently availableinclude the following:
Green Chemistry Guide - offers guidance toGSK scientists and engineers on applying GreenChemistry concepts to enable more efficient use ofresources, reduce environment, health and safetyimpacts and minimise costs. It includes:
• A ranking and summary of the most usedchemistries and ‘best-in-class’ examples fromwell developed GSK processes.
• A ranking and review of issues encounteredduring process design and development.
• A ranking and summary of commontechnology alternatives for chemicalprocessing.
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ISSUES
Dr. Robert K. Lynn, Senior Vice President, Pre-Clinical Development, R&D
“R&D is committed to EHS as an integralpart of our development process. Ourprimary focus at present is to improveproduction efficiency, which has benefitsfor the business and for the environment
while helping the company attain its sustainability goals.”
Designing products forenvironmental sustainability
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• Guidance on materials, process alternatives,synthetic route strategies and metrics forevaluating chemistries, technologies andprocesses.
Solvent Selection - contains information onalternative solvents and solvents that should beavoided. It:
• Compares and ranks 45 solvents accordingto environmental waste profile,environmental impact, safety profile andhealth impact.
• Compares International Conference onHarmonisation (ICH) guidelines on allowable concentrations of solvents inactive pharmaceutical ingredients against EHS characteristics of solvents.
• Provides information on boiling point and azeotrope formation to assist in theselection of separable co-solvents.
• Provides detailed information on physical properties, safety, health and environmental issues.
Base Selection - ranks 42 chemical basesaccording to their environmental waste profile,environmental impact, safety profile and healthimpact. It also provides detailed information oneach base.
Green Packaging Guide - provides a life cycleassessment tool, guidance and a business processfor selection of packaging for the Pharmaceuticalsand Consumer Healthcare businesses.
In 2002, we completed a new component of theeco-design toolkit called FLASC (Fast LifecycleAssessment for Synthetic Chemistry). FLASC is a web-based application that allows benchchemists to perform a “life cycle” evaluation of the environmental consequences of new or existingprocesses based upon the input materials used. It quantifies the energy and materials used inproduct manufacture, as well as emissions released and potential environmental impacts.
FLASC will:
• Facilitate the comparison or benchmark of process routes and allow chemists andmanagers to rapidly identify the greenest option.
• Identify the materials that have the biggestimpacts and provide guidance on how toreduce those impacts.
• Quantify the energy and materials used in product manufacture, the emissionsreleased, and potential environmentalimpacts.
Designing products for environmentalsustainability(cont.)
Dr. Dermot Moynihan, Senior Vice President,Chemical Development, R&D
“When we develop new chemicalprocesses, we rely on a range oftechnologies and predictive tools to aidand enhance process understanding andincrease the speed of delivery of highquality products to GSK. We continuouslydevelop and apply better technologies and improved ways of working to achievea more efficient and streamlined process.This has the practical benefit of loweringcosts, improving the ease and efficiency of manufacturing and reducing theconsumption of natural resources andgeneration of waste, moving us towardour sustainable development goals. In
addition to the practical benefits,it moves GSK to best in class forquality of technology and process knowledge.”
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FLASC is a process and tool that will enable anassessment of eight different environmental impactcategories associated with materials used in asynthetic route or manufacturing process:
• Mass of materials used
• Energy required
• Photochemical Ozone Creation Potential(POCP)
• Greenhouse gas equivalents
• Acidification
• Eutrophication
• Total organic carbon generated before any waste treatments
• Oil and natural gas depletion for rawmaterials manufacture
FLASC uses a scoring system that enables a quickidentification of areas for improvement, facilitatescomparison of processes and serves as a trackingsystem for synthetic route or manufacturing processimprovement throughout GSK.
Our second web-based application developed thisyear is the WRAP (Weighed Resources forAssessment of Packaging) Tool. With WRAPpackaging development managers can determine if pack modification or new designs offerenvironmental improvement when compared withbenchmarks of existing packs. The benchmarks usepackaging profiles from over 200 individual packsand are also related to product type. They consistof a number of metrics that cover the product lifecycle. The metrics are:
• Manufacture of packaging
• Mass of packaging
• Biodegradability
• PVC content
• Resource depletion
Using a scoring mechanism, WRAP generates acolour-coded report that clearly shows if the pack is better or worse than the appropriate benchmark.The developer may then interactively investigateother pack options to find where improvementscan be made and what is currently the best GSKexample of packaging for that type of product.
Scenario analysis is also possible so the developercan change elements of the pack profile andquickly see the effect on the score. The benchmarkswill be updated and expanded as more data onpackaging for GSK products are collected.
An application under development is a materialsassessment site that will assess chemicals commonto the pharmaceutical industry, other than solventsand bases. In the longer term, we envision anincreasing number and variety of applications thatwill apply not only to R&D and manufacturing, but to commercial operations as well. We envisionapplications that move from merely providinginformation to providing expert knowledge.
Designing products for environmentalsustainability(cont.)
41
GSK is taking significant steps to eliminate anyozone depleting impact arising from our processes,products and operations. We have a target toeliminate use of ozone depleting compounds inrefrigeration and air conditioning equipment bysubstituting materials that do not deplete ozone.We are also working to reduce the environmentalimpact from the manufacture and use of ourasthma and chronic obstructive pulmonary disease (COPD) medications.
Asthma medication and the environmentAsthma is a chronic and life threatening diseasethat affects 300 million people around the world. It is a disease of chronic inflammation andbronchoconstriction with symptoms such as cough,wheezing and chest tightness. Asthma prevalenceis increasing. In developed countries it currentlyaffects 10% of children and 5% of adults. Indeveloping countries like Brazil, Peru and Uruguaythe prevalence of asthma is estimated to bebetween 20 and 30 percent of the population.Asthma and COPD are linked to over 1,700 deaths per year in the UK.
Metered Dose Inhalers (MDIs) are one of the main forms of treatment for asthma. MDIs werefirst introduced in the 1950s. The MDI is a pocket-sized, hand-held, pressurised multiple doseinhalation system that can deliver a precise dose of medication to the airways when usedappropriately. Essential components of an MDI are a canister, the drug substance, a gas to propelthe drug into the patient and a device for releasingand directing the dose.
For decades, CFCs were the most suitablepropellant for use in MDIs because they are non-toxic, non-reactive, non-flammable, odour and taste free and excellent solvents. However,CFCs have now been recognised as ozonedepleting and global warming gases.
In recognition of their importance in the fightagainst asthma and COPD, the production of CFCs to manufacture MDIs in the developed worldhas been deemed as an ‘essential use’ under theMontreal Protocol, until adequate alternatives to
CFC-containing medications are available. Each yearGlaxoSmithKline applies for volumes of CFC to beused to manufacture our MDIs under this ‘essentialuse’ exemption. GSK’s requested volumes haverecently been declining each year and GSK willsoon no longer need to request any essential-usevolumes. GSK takes the issue of ozone depletionseriously and supports the objectives of theMontreal Protocol. We believe that the Parties tothe Protocol should now move to adopt a decisionthat, with due notice, phases down and closes theessential use exemption for MDIs for developedcountries. Such a Protocol decision should includestrong interim measures to significantly reducevolumes of CFCs used for MDI manufacture after 2005.
GSK offers a wide range of options for the treatmentof respiratory disease including MDIs, dry powderdevices and liquids for use in nebulisers. We have done extensive research into developingreplacements for the CFC propellants and havereformulated the majority of our MDI products to use the non-ozone depleting gas HFC 134a. In 2002 GSK manufactured over one hundredmillion non-CFC MDIs and launched our first non-CFC MDI in the US namely, CFC-free Ventolin.
GSK is taking steps to reduce the ozone depletingimpact arising from our processes, products andoperations by:
• Reformulating the propellant in the MDIsfrom CFCs to HFC 134a, a non-ozonedepleting replacement.
• Minimising emissions arising from MDIsrejected during the manufacturing stage in accordance with national standards.
• Launching globally the non-CFC MDI as soon as possible after obtaining regulatory approval.
• Removing the corresponding CFC productfrom the market within 6-12 months oflaunch depending on individual countryhealth practices.
• Offering a choice of an MDI or DPI (dry powder inhaler) device for our respiratory drugs.
Ozone depletion
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• Continuing to invest in research anddevelopment of novel inhaler devices witheven lower environmental impacts.
• Minimising fugitive emissions of CFCs and other ozone depleting gases from ourmanufacturing sites through engineeringcontrols and replacing halons (fire fightinggases) and refrigerants.
GSK also takes the issue of climate change seriouslyand supports the objectives of the Kyoto Protocol.Although some uncertainties remain, we believethat the potential global significance of climatechange is too serious to ignore and that, under the precautionary principle, it warrants a measuredglobal response. Even though the HFC 134a MDIpropellant is a recognised greenhouse gas, GSKbelieves that in the interests of public health, as there is no real alternative for many activeingredients, the small and critically importantmedical use of HFCs in MDIs deserves specialsafeguards in international and national climatechange strategies.
However, we will continue to pursue options thatemploy compounds that don’t have an adverseimpact to the environment.
Read about our management of ozonedepleting substances, page 61
Ozone depletion (cont.)
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When pharmaceuticals are consumed by patients,there may be some active ingredient that is notcompletely metabolised (biochemically altered andinactivated). The patient excretes the portion that isnot metabolised. These small quantities of materialare then transported to wastewater treatmentsystems where most of them are removed butsome are discharged to receiving streams.
Historically, the presence of pharmaceuticals in environmental media has been estimated.Recently, as a result of advances in analyticaltechniques, pharmaceuticals can be measured in wastewater, surface water (rivers and streams)and drinking water.
Pharmaceuticals in the environment have beenregulated in the USA since 1977 with the US Foodand Drug Administration (FDA) taking responsibilityunder the auspices of the National EnvironmentalPolicy act of 1969. Regulation occurs through theenvironmental review process for New DrugApplications submitted to the FDA. In the late1980s additional information was required frompharmaceutical companies by the FDA and moreextensive information was provided inenvironmental risk assessments that accompaniedNew Drug Applications. An evaluation of the datasubmitted from the late 1980s through the mid-1990s led the FDA to revise the regulations in 1997 to minimise environmental risk assessmentdata required in New Drug Applications.
This issue has also received regulatory attention in Europe through the submission of EnvironmentalRisk Assessments to accompany MarketingAuthorisation Approval. In Canada, a requirementfor environmental assessment is underconsideration.
GSK has been actively involved in industry efforts to develop improved environmental risk assessmentmodels. These models can then be used to identifypotential risks of GSK pharmaceutical productsentering the environment through patient use.Assessments using these models and currentlyavailable human and environmental effects dataindicate that GSK pharmaceuticals in theenvironment do not present a risk to humans orthe environment. As part of its product stewardshipactivities, GSK continues to monitor the latestscientific studies and findings to continuallyimprove risk assessments in this area.
Pharmaceuticals in the environment
44
While GSK does not use natural product collectionas a major source for existing products or as amajor source of compounds for development ofpharmaceuticals, we do work with collaborativepartners such as Extracta in Brazil and the Centrefor Natural Product Research in Singapore to collectsome natural products. Because of the impact thattheir collection might have on biodiversity, medicalresearchers must follow rigorous standardsregarding evaluation and collection of naturalproducts. We are confident that our screeningactivities are conducted according to the principlesset out in the Convention on Biodiversity (CBD).
Public Policy Position• Natural resource materials are potentially
valuable sources of novel biologically activemolecules which, once identified, and theirproperties fully analysed, can serve asmodels for the invention of new, lifesaving medicines.
• GSK recognises that all nations havesovereignty over the biological resources andindigenous knowledge within their territorialboundaries. Equally, unauthorised orunrestrained removal of natural materialsfrom their indigenous habitats can harm the ecology and economy of the countryconcerned.
• GSK’s drug discovery efforts increasinglyfocus on high-throughput screening ofsynthetic chemical compounds. Wetherefore have limited interest in naturalmaterial collecting and screeningprogrammes. However, where screeningprogrammes are in place, the companysupports the principles enshrined in theConvention on Biological Diversity (CBD).
• In the event of GSK developing acommercial product from our naturalmaterial screening programmes, GSK willensure a clear benefit is returned to thecountry of origin. This benefit sharing mayamount to payment of fair and reasonableroyalties or other means determined bymutual agreement on a case-by-case basis.
• GSK has a number of patents based onnatural products and it is possible that more patents will arise from our screeningprogrammes.
Specifically, GSK has always undertaken to:
• work only with organisations and supplierswith the expertise and legal authority tocollect plant and other natural materialsamples. These include botanic gardens,universities and research institutes aroundthe world;
• ensure that the governments in developingcountries are informed of and consent tothe nature and extent of any proposednatural materials collection;
• protect biodiversity by classifying samples of plants and other organisms taxonomicallyand only investigate species if their supply is reproducible and sustainable;
• work with small quantities of naturalmaterials to discover bioactive principles.Where possible further supplies of leadcompounds and derivatives are synthesised;
• develop sustainable harvesting procedures to preserve the ecosystem from which thesource material is derived where furthersupplies of the active compounds cannot be synthesised;
• where appropriate, collaborate withorganisations to educate and train localpeople in collecting and screening skills;
• ensure an agreed benefit is returned directlyor indirectly to the country of origin in theevent of GSK developing a commercialproduct based on a natural material;
• only transport potentially hazardous R&Dmaterial under contained use conditions and in accordance with the CBD’s CartagenaBiosafety Protocol.
Biodiversity
45
ConclusionGSK is fully aware of our responsibilities towardsprotecting biodiversity, respecting nature, andworking with the communities in which thesenatural resource materials are found. By adheringto the principles of the CBD, we are confident thatwe are operating in a sustainable manner and in away that will enable us to continue developing,manufacturing and marketing new and innovativemedicines that enable people to do more, feelbetter and live longer.
Biodiversity (cont.)
GSK and employees in the UK have joined withcommunity groups,government agencies and non-government
organisations in projects that promotebiodiversity in the areas close to GSK sites.GSK’s site at Ulverston, for instance, islocated at the edge of the Lake DistrictNational Park, an area of outstandingnatural beauty in the UK. In 2002, GSKstaff, in conjunction with the CumbriaWildlife Trust, completed a habitat andspecies survey on 250 acres of GSK landaround the Ulverston site. Employees andsome retired staff completed record cardson species and then entered their workinto a database during their lunch hours.GSK employees added 8,600 records andfound over 500 species. Cumbria WildlifeTrust have produced a Biodiversity ActionPlan for the site and the site has integratedthe maintenance and enhancement ofbiodiversity into its EHS ManagementSystem.
In Summer 2002, GSK’s UK Barnard Castle site and Teesdale District Council,sponsored a survey of 67km of roadsideverges across the North Pennines Area ofOutstanding Natural Beauty to identifyverges that contained diverse flora andcould be improved if better managed.Nineteen sites of prime botanical interestwere identified. The surveyors found 240
species of vascular plant and up to 74species of flowering plant in just one site.Five species of Lady’s Mantles (includingthe nationally rare Alchemilla monticola)were identified. In November, BarnardCastle employees accepted a challengefrom the North East Biodiversity Forum to help protect and develop the flora ofthree roadside verges in upper Teesdalewhich are remnants of Upland HayMeadow which has declined nationally bymore than 45% since 1945. The challengewas met by a team of nine GSK employeeswho worked to cut brambles, coppice ashand remove cuttings to give rare plants,like the Lady’s Mantle, room to grow.
The Meads Nature Reserve, situatedbetween Ware and Hertford, wasestablished in October 1999 through anagreement between the variouslandowners, including GSK, and theHertfordshire and Middlesex Wildlife Trust.It is the largest area of grazed, riverside,flood meadow remaining in Hertfordshire.The Meads Nature Reserve partnershipaims to maintain and enhance the rangeof species, habitats and landscapes in theMeads by sympathetic management.Although at an early stage of the project,recent surveys show that several keywetland species are either increasing inpopulation or spreading their rangethroughout the Meads. More water isbeing retained on the site and severalbreeding birds have increased theirnumbers as a result. Vegetation hascolonised the wetter land, includingseveral species that are scarce inHertfordshire. New fencing means thattraditional managed grazing regime is restored to most of the site.
For the last five years, GSK’s Dartford UK site, along with the UK’s EnvironmentAgency and other organisations, hasworked to safeguard the future of the
Biodiversity
46
Read about our environmentalprogrammes, page 28
GRI, Part C, Section 5 EnvironmentalPerformance, EN7, EN25 Biodiversity
Biodiversity (cont.)
Dartford Marshes, the largest remainingfragment of marshland near London, southof the River Thames. The marshes, whichhave a history from the eleventh century,now play a vital role in flood control. Thenetwork of ditches and mosaic of wetgrassland, reed beds, salt marsh and scrubland provide havens for rare and protectedspecies including one of Britain’s rarestmammals, the water vole. A newmanagement plan will restore the marshto optimal conditions for wildlife andcreate a beautiful place to visit. Watervoles, birds, grass snakes and bats; rareinvertebrates; plants; and human visitorswill all benefit.
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GSK is in the forefront of the development andapplication of new scientific techniques to discoverand develop new medicines and vaccines. GSKroutinely uses genetically modified organisms(GMO’s) in the research and discovery of newtherapeutic agents and also in the efficientmanufacture of certain medical products such asvaccines. GMO’s are used to identify the genetictargets and causes of disease, and to develop newdrugs such as antibiotics and drugs for conditionssuch as heart disease, diabetes and depression. Weuse a number of different GMO’s, predominantlyharmless organisms such as disabled strains of the bacterium E.coli and eukaryotic cells in culture.
All work with GMO’s within GSK is controlled tothe strictest national and international regulations,and we apply best practice across all our facilities.Any work with GMO’s is subject to full riskassessment including safe conditions of use,storage and disposal. Any laboratory work withGMO’s is performed under conditions of containeduse, using containment laboratories appropriate tothe risk of the materials handled. The large scalefermentation or propagation of GMO’s in researchand development is always undertaken in fullycontained systems. All processes are performed inclosed vessels minimising the risk of release, in linewith existing legislation and best practice. All workis controlled by written procedures and regularmaintenance checks ensure the processes areoperated to the necessary level of contained use.
GSK also manufactures a number of products, such as Hepatitis B vaccine, derived from geneticallymodified materials. GMO’s are sometimes used asintermediates in the manufacturing processes formedicines such as antibiotics, but GSK does notproduce any products that are or contain viableorganisms. All manufacturing processes alsooperate under conditions of contained use toprevent the release of any GMO’s to theenvironment. GSK has a policy of routinely treatingall waste from our GMO operations, to ensure wedo not release viable GMO’s from our containedprocesses into the environment. As a result, allGMO’s used by GSK are inactivated prior todisposal by chemical or heat treatment.
GSK does not routinely undertake research anddevelopment involving the cultivation of geneticallymodified plant species. However, one exception is asmall scale field trial undertaken in Australia todevelop morphine-containing medicines, which are only available on prescription from a doctor.Research is focused on increasing the yield ofalkaloids in poppies with enhanced properties to develop more effective pain managementmedicines. The Australian government strictlycontrols these trials.
Genetically modified organisms
48
Land may become contaminated as a result of past practices in the management of materials, for example, through inadequate containment,accidental release or poor disposal practices.Depending on the circumstances there may bepotential for harm to the environment. GSKemploys global standards that require, among otherthings, the identification and management ofcontaminated land. GSK enters into agreementswith relevant authorities to assist in the remediationof contaminated land when required. GSK thendirects the remediation of contaminated areas tolevels that are consistent with the expected futureuse of the land and with local regulatoryrequirements.
Following GSK’s earlier investigation of operationalsites in the UK, it was determined that the majorityfeatured low probability of contamination, or lowhazard and pollution potential if contaminationwere present. A group of seven sites remained forfurther study, of which five are thought to requiresome remediation and two of these sites areundergoing partial or full decommissioning inpreparation for sale.
In the US, GSK is currently involved with some 25 sites where sites must be remediated. Theseinclude 13 sites on the US Environmental ProtectionAgency’s National Priority List (NPL) of so-called“Superfund” sites, as well as several sites listedunder various state programmes. Most of thesesites are abandoned waste disposal sites wherewaste generated from a GSK facility may have beenfound among waste generated by several (in somecases, hundreds) parties and often over many years.
In dealing with remediation sites over nearly 20 years, GSK has always cooperated with thegovernment upon notification and confirmation of our connection to a site, and worked with theother parties to effect the remediation. GSK pays itsfair share according to an agreed allocation of costsamong the parties participating in the remediation.Even in cases where we cannot initially agree on anallocation, we employ an interim allocation to allowthe work to go forward and settle final allocationlater. GSK generally participates in groups ofcompanies organised to remediate sites in
accordance with its allocation, among otherfactors. Participation varies from monitoring theactivities of a committee to taking a leadershipposition in the committee.
Since 1980, GSK and its heritage companies havespent over £100 million on remediation of morethan 50 sites. Many of these sites will require long term operation and maintenance (O&M) forsystems such as groundwater treatment facilities.For “mature” sites - where “construction” iscomplete and O&M may or may not be requiredlong term - GSK and its corporate partners assessthe possibility, and implement the return of suchsites to beneficial use, such as communityparklands.
Contaminated land
49
Creation of GSK products from earliest researchand development through to full-scale manufacturerequires that employees work directly with or inproximity to chemicals. While GSK is committed tosafety in all aspects of its operations, circumstancesarise in which workplace exposure to chemicalsmay occur. To safeguard worker health, GSK healthand safety programmes for chemicals have beenorganised to define health protective occupationalexposure limits and provide information on uniquechemical hazards. This dual approach supportsdesign of equipment and facilities to contain andcontrol chemicals in the workplace. It also providesinformation for first aid and other care in the eventof accidental contact with chemicals.
GSK occupational toxicologists in the CorporateEnvironment, Health and Safety group focus onunderstanding the potential effects of GSK drugsand the chemical building blocks for these drugsencountered in R&D and manufacturing settings.Occupational toxicologists specialise inunderstanding the results of possible chemicalexposure on the skin, eyes, and respiratory system(common routes of workplace chemical exposure)as well as other human systems.
Historically, achieving an understanding of theeffects of chemicals in the workplace has involveduse of laboratory animals as models for humansystems. However, growing scientific and publicawareness around ethical use of laboratory animalshas guided GSK efforts to continuously reducereliance on animal models for occupationaltoxicology wherever possible. Use of refined teststrategies for occupational toxicology testing inGSK and alignment of testing with the scale ofproduct manufacture (i.e., only limited testing untilinitiation of large scale manufacture) has resulted in a 15 to 20% reduction in animal use for workersafety testing on each product brought tocommercial development over the period 1999 - 2001.
In the first two years of GSK’s corporate history(2001 and 2002), testing for the potential harmfuleffect of chemicals in the workplace has beenorganised to achieve continued progress towardthe goals of reducing, refining and replacinglaboratory animals. New published practices involvethe use of a tiered approach to occupational healthhazard assessment in GSK. This approach uses avariety of predictive tools including computermodels and cell culture systems allowing rapid andaccurate evaluation of the potential effects ofchemicals on human skin, eye, and other tissuespossibly subject to direct chemical contact.
In this approach, evaluation of the potential effectsof chemicals is initiated with searches for allapplicable information from literature databases.Structure-activity computer models are also used to predict possible effects. Initial research iscomplemented by evaluation of chemicalparameters (such as acidic or basic character) thatcan contribute to possible adverse effects. In manycases, this first tier of assessment is sufficient tounderstand the hazards posed by chemicals makingit possible to avoid use of laboratory animalsaltogether by projecting likely effects frompreviously characterised materials to new materials.When insufficient or equivocal information isavailable from the initial tier of assessment asecond tier of testing is invoked. This second tier of testing involves use of cell culture, tissue cultureand bacterial models. GSK scientists have adoptedseveral animal-use reduction techniques recognisedby health regulatory and advisory agencies (such asthe UK HSE and US NIH) to organise the second tierof evaluation. GSK scientists actively develop,publicise and validate alternative methods used inthe second tier to allow increased reliance on testmethods not using laboratory animals. Again,results of Tier II testing exempts many materialsfrom evaluation in animal models. Finally, only
Occupational hazard evaluation and use of animals
50
when chemical production levels reach certain high volume levels (thereby increasing the potentialfor inadvertent or accidental chemical exposure) are tests with laboratory animals considered. Inmany cases these tests are required by regulatoryguidelines. Even in these cases, alternate means for identifying chemical hazards are sought, andtesting is done with reduced animal numbers.
Consistent application of the tiered approach tochemical hazard assessment from 2002 forward isanticipated to minimise use of laboratory animals inchemical hazard assessments for worker health andsafety purposes. In addition, GSK strongly supportscontinued innovation in development of alternativemeans for learning about the potential healtheffects of workplace chemicals. Success in theseefforts is measured by improved predictive ability of these alternatives and continued reductions inuse of laboratory animals.
Occupational hazard evaluation and use of animals (cont.)
Reporting our performance and impacts drivescontinuous improvement and communicates GSK’s global EHS impacts to stakeholders.Internally, we use the data to inform seniormanagement, to identify areas for improvement, to set and refine targets and to raise awareness.
EHS performance at GSK is measured using a seriesof EHS performance indicators selected based on
• Industry benchmarking and best practice.
• Assessment and prioritisation of ouroperations and our areas of greatestemissions.
• Guidelines set by external technical andprofessional organisations.
In 2002 we collected environmental data from 100 global manufacturing sites, including one that is closed, 24 research and development (R&D) facilities, 6 distribution centres, 1 drinksmanufacturing facility and 3 main office buildings.We collected health and safety data from all ofthese locations as well as from 56 sales offices. An intranet data collection tool was used to collect and collate the global data.
In addition to the EHS data collected from sites, wecollected GSK business travel air miles from GlobalProcurement, US fleet injury and illness informationfrom Employee Health Management and productfreight miles from Global Distribution. We alsoinitiated a pilot programme in 2002 to collect coreEHS data from five major contract manufacturers.
There were several sites that were closed or soldduring 2002. Depending on the time of the sale orclosure, the sites did not contribute materially tooverall GSK aggregate emissions and resultingimpacts and we collected data from only one.
The data were reviewed and analysed to determinethe impacts on air, water and land. These impactswere compared to the impacts in previous years toassess our performance in the key areas of concern.In the process of providing 2002 data, GSK sitesreviewed the data they reported in 2001.Corrections made as a result of this reviewimproved the accuracy and consistency of the dataand the impacts reported. For this reason, the 2001baseline has been modified for certain performancemeasures. This is most evident in the new baselinefor carbon dioxide. The other significant changes in the 2001 baseline data were ozone depletionpotential, volatile organic compounds, wastewaterchemical oxygen demand and non-hazardouswaste. Minor changes were made to the 2001baselines for energy, hazardous waste and waste recycled.
The 2002 data show that GSK is on track to meet the 2005 targets for most key performanceindicators although we need to focus on phasingout the ancillary use of ozone depleting substances.
GRI, Part C, Section 5 Performance Indicators
51
PERFORMANCE
52
There were seven environmental fines and penaltiesissued in 2002. Six of them were in the US, for atotal of $11,500 (£7,000). All were for minor non-compliance with permits, two for air emission non-compliance, three for substances in wastewaterand one for waste labelling. One was a P767,000(£10,000) penalty in the Philippines paid over thepast five years for periodically exceeding effluentdischarge limits. There were also 12 notices ofviolation and 68 excursions above permitted limitsfor releases to air or water that did not result infines or penalties.
In addition, there were several environmentalevents that did not result in fines, penalties ornotices of violation. There were two significantspills, one of ethanol and one of diesel fuel, therewas one leak of solvent from a drain, one explosionof a keg and one site evacuation during a fire toavoid exposure to fumes. There were 22 small fires all resulting in only minor damage.
Fines, penalties and serious events
Our goal is to avoid all work-related injuries andillnesses and we have programmes in place aimedat achieving this goal. However, in 2002 there werethree work-related fatalities. Two of the fatalitieswere motor vehicle accidents involving salesemployees, one in India and one in Poland. Thethird fatality was a contract worker in Belgium whodied in a fall. In addition there were four severeinjuries, one involving chemical burns and threeinvolving crush or fracture injuries of hands or feet.There was one case of mesothelioma due to pastoccupational exposure to asbestos and severalcases of disability due to noise induced hearing loss and sensitisations.
Fatalities and serious occupationalinjuries and illnesses
53
The 2002 capital investment projects were primarilydevoted to expansions and upgrades to onsitewastewater treatment and management systems.Operations and maintenance costs include costsincurred by GSK manufacturing and R&Doperations for operating and maintainingequipment and systems related to air pollutioncontrol, wastewater treatment and wastemanagement.
Capital investment for EHS projects totalled £18million in 2002 a decrease of 33% from £24million in 2001. During 2002, GSK continued tostreamline the network of manufacturing sites. This rationalisation effort and general cost controlmeasures contributed to the decrease in capitalinvestment.
The operations and maintenance costs reported in 2001 was revised from £43 million to £41.0million due to better reporting. In 2002, GSKmanufacturing and R&D operations spent £45.5million which represents an 11% increase inoperations and maintenance expenditure.
EHS costs
CAPITAL COSTS OPERATIONS AND MAINTENANCE COSTS
54
The measure of energy is defined as all energyconsumed at GSK facilities during the year in theform of electricity and steam imported and fuelsburned in fixed combustion equipment on site,including emergency generators. Fuels used foronsite transport have not been included but fuelsused to generate steam and electricity on site havebeen included.
The 2001 baseline originally reported for energyconsumption was 21.4 million gigajoules. Thisincluded electricity and steam imported and fuelsburned in fixed combustion equipment as well asonsite transport fuels and energy generated on site.The revised 2001 baseline, 20.7 million gigajoules,does not include fuels used for onsite transport anddoes not double count fuels used onsite togenerate electricity and steam. In 2002, GSKconsumed 20.1 million gigajoules of energy.Compared to 20.7 million gigajoules in 2001, this is a decrease of 2.9%. Nearly 60% of energyconsumed is through the burning of fuel to supportmanufacturing processes and heating buildings and other uses not related to transportation. Fortypercent (40%) of energy consumed is electricity.
A target has been set to reduce energyconsumption from site activities by 8% on a per unit sales basis by the end of 2005.
Energy consumption
ENERGY CONSUMPTION
ENERGY CONSUMPTION BY BUSINESS
55
GRI, Part C, Section 5 EnvironmentalPerformance Indicators EN3, EN4
Energy consumption (cont.)
In 2002 a group of eight ofthe UK Pharmaceutical R&Dsites consumed 8.81% lessenergy, than in 2001 andemitted approximately
19,900 fewer tonnes of CO2 to theatmosphere. This result was delivered by“energy management teams” that droveenergy saving initiatives by reviewingoperational requirements and efficienciesand promoting energy conservationthrough energy awareness, auditing andenergy saving campaigns. For instance, the team at Stevenage targeted the airhandling ventilation system in amicrobiology building. Their reviewrevealed a system of six 75 kW air-handlingfans, feeding into a common manifoldduct system providing air distributionthroughout the building. Originally airvolume control was provided by inletguide vanes, which were inefficient inoperation and did not provide goodcontrol for reduced air flows whererequired. They replaced the existing fanmotors with high efficiency motors,installed variable speed drives on the fanmotors and removed the inlet guide vanemechanisms to improve operationalefficiency. Overall the air handling unitsused 15% less energy and provided bettercontrol of air volume during “unoccupied”periods. This project has resulted in apotential saving of approximately 460,000kWh per annum, representing savings ofaround 330 tonnes of C02 emissions.
R&D Energy Programmes
56
Water is a valuable natural resource that we can help to conserve through efficient use andrecycling. GSK operates in several regions of theworld that are classified as “water stressed” -Africa, Asia and the Middle East. Many countries in water-stressed areas have legislation that closelyregulates and monitors the use of surface andground waters. Sites in these regions areparticularly concerned with water use andconservation and sites in other regions have takenon water conservation projects proactively andstrategically to be better prepared for stricterregulation of water use. An example of this is theErmington, Australia site. It implemented aproactive programme that included the innovativeuse of resources and redundant equipment to reuse wastewater and education of employees in water conservation principles.
Water is used in manufacturing processes,sanitation services and for general site uses and is extracted from municipal sources, wells,boreholes and other sources.
Water usage is reported by manufacturing and R&D operations from all sources. Water used forGSK operations comes primarily from municipalsources (56%) and wells and boreholes (41%). In2002, GSK used 25.4 million cubic meters of water.Compared to 27 million cubic meters used in 2001,this represents a 6% decrease in the amount ofwater used. This decrease is due to waterconservation and reuse programmes.
A target was set to reduce water consumption10% by 2005. The target has been reached and we will continue to implement water conservationprogrammes to maintain this level of water usageor continue to improve.
Water usage
WATER USAGE
WATER USAGE BY BUSINESS
57
GSK operations result in a range of air emissionsand related impacts. These air emissions include:
• Carbon dioxide (CO2) from the energy thatwe use to power our processes and to heat,cool and light our facilities, CO2 generatedfrom some manufacturing operations andCO2 generated by the fuels that power thevehicles and aircraft we use to transport our products and people.
• Ozone Depleting Substances (ODSs) (e.g. chlorofluorocarbons,hydrochlorofluorocarbons andhydrofluorocarbons) released in the courseof manufacturing our metered dose inhalers,used in refrigeration equipment in some ofour manufacturing facilities and releasedwhen patients use our metered doseinhalers.
• Volatile organic compounds (VOCs) from our manufacturing operations.
The resulting impacts have the potential to affectclimate (global warming), deplete the ozone layerand generate smog.
Read about our carbon dioxideemission performance, page 58
Air emissions
Although the InternationalEmissions Tradingmechanism of the KyotoProtocol has yet to be set-up, GSK participates in the
Greenhouse Gas Emissions Trading Scheme(ETS) initiated by the UK in 2000. Thisscheme allows UK companies that exceedtheir targets for energy reduction to“bank” credits for the reduction in carbondioxide emissions that result. ETS providesa mechanism for companies to tradebanked credits. Credits have a monetaryvalue based on demand and by tradingthem companies can profit from, orbalance the costs of, energy savingprogrammes.
In 2002, several of GSK’s UK Primary SupplyManufacturing and R&D sites reached theirtargets for carbon dioxide emission andwent on to exceed the targets by emitting40,000 fewer tonnes of carbon dioxide.That 40,000 tonnes of carbon dioxide,which didn’t get emitted to theatmosphere, are equivalent to what wouldbe emitted when producing energy to run6,800 average homes in the UK for a year.When verified by external auditors thesetonnes were converted to credits andbanked for GSK.
ETS requires that participants have aconsistent, programmatic approach toenergy conservation which demonstratesthat they are doing more than targetingthe quick wins. GSK has been able toparticipate in carbon trading because ourGlobal EHS Standards, particularly onenergy conservation, meet or exceed these requirements.
GSK’s participation in the ETS schememakes sustainable energy sources moreeconomically viable and encouragesinvestigation of opportunities for futureglobal sustainable energy projects.
Carbon Trading
58
Climate change is a gradual change in the globaltemperature caused by the accumulation ofgreenhouse gases in the atmosphere. Carbondioxide is the most significant greenhouse gas andresults from the generation of electricity, generationof steam and combustion of fuels. A small amountof carbon dioxide is also emitted from fermentationoperations. The other greenhouse gases includemethane emitted from waste treatment andhalocarbons, emitted from production operationsand ancillary cooling systems.
GSK reports carbon dioxide, including CO2equivalents, in million kilograms. For CO2 related to energy, GSK includes electricity imported (notgenerated onsite), steam imported (not generatedonsite) and combustion of fuel used for non-transport related activities (e.g. onsite generation ofelectricity and steam). The 2001 CO2 from energysources baseline was originally reported as 1,950million kilograms. The calculations resulting in thisvalue were reviewed as part of the data reportingand analysis process this year. Incorrect applicationof CO2 conversion factors, the incorrect inclusion ofsite-based transport fuels and double counting thefuels used onsite to generate steam and electricitywere uncovered making a change to the 2001baseline necessary. This new 2001 baseline is 1,694 million kilograms. For 2002, the CO2generated from these energy sources is 1,631million kilograms representing a 3.7% decrease.Carbon dioxide generated from non-transport fuels,
production of imported steam and production of imported electricity decreased by 4.7%, 92% and 0.4% respectively.
In 2001, GSK set an improvement target of 8% reduction on a per unit sales basis by the end of 2005 for CO2 from these energy sources.
Carbon dioxide (CO2)
GLOBAL WARMING POTENTIAL FROM ENERGY
GLOBAL WARMING POTENTIAL FROM ENERGY BY BUSINESS
59
Carbon dioxide is the most significant greenhousegas and results from the generation of electricity,generation of steam and combustion of fuels. Theother primary greenhouse gases include methane,nitrous oxide, hydrofluorocarbons, perfluorcarbonsand sulfur hexafluoride. Greenhouse gases such as CO2 and methane are formed from wastetreatment and fermentation. Halocarbons arereleased during production operations and fromancillary cooling systems. These other greenhousegases can be compared to carbon dioxide bycalculating their CO2 equivalence. Included in the global warming potential figure in this graph is carbon dioxide generated from energy sources(see summary on carbon dioxide), CO2 equivalentsfrom halocarbons (ozone depleting substances) and CO2 equivalents from waste treatment andfermentation.
Inventory methods and factors utilised forconversion to carbon dioxide equivalents are based on the World Business Council forSustainable Development (WBCSD)/ WorldResources Institute (WRI) Greenhouse Gas ProtocolInitiative, September 2001, its Stationary andMobile Combustion Workbooks, and theIntergovernmental Panel on Climate Change (1996).
GSKs total global warming potential expressed incarbon dioxide equivalents, was reported as 3,363million kilograms in 2001. In light of the baselinechanges made to CO2 from energy there is also a revised 2001 baseline for total global warmingpotential of 3,154 million kilograms. In 2002, the total global warming potential is 2,854 millionkilograms representing a 9.5% decrease.
Carbon dioxide (CO2) (cont.)
GLOBAL WARMING POTENTIAL
GLOBAL WARMING POTENTIAL BY BUSINESS
60
Global warming potential is also impacted by the greenhouse gases produced from theconsumption of fuels in GSK business air travel and from transport and vehicle fleets, primarilysales fleets. Impacts from these activities have not been included in the previous graphs. Carbondioxide generation has been estimated for thefollowing activities:
• Air miles travelled by GSKemployees. GSK employees travelled atotal of 641 million kilometres in 2002, an increase of 20%. This includes travelbetween and within the US and the UK as well as international travel and represents85.2 million kilograms of CO2.
• Product freight transport. GSKproducts travelled a total of 129 millionkilometres in 2002. Ninety percent of thedistance (116 million kilometres) by air.These air miles represent 14.6 millionkilograms of CO2.
• Emissions from vehicles used inGSKs sales and marketing activities.Global sales fleets drove a total of 686million kilometres in 2002 representing 81 million kilograms of CO2.
The total CO2 generated from these GSK businessoperations in 2002 was 180.8 million kilograms orapproximately 11% of the carbon dioxidegenerated from GSK energy sources. Calculation of CO2 for air travel activities was based on factorsfrom the UK Department for Environment Food and Rural Affairs. There was a significant increasein CO2 generated from sales fleets due in part to expansion of data collection to include theinternational sales fleet in 2002. The 26% decreasein global warming potential from ozone depletingsubstances was due in part to the decrease in ODScontaining products.
Read about GSK’s carbon tradingscheme, page 57
GRI, Part C, Section 5 EnvironmentalPerformance Indicators EN8
Carbon dioxide (CO2) (cont.)
61
Ozone depleting substances (ODSs), as defined by the Montreal Protocol and its Amendments,have been measured from their sources at GSKmanufacturing operations and R&D facilities. Ozone depleting substances are released to theatmosphere from production operations (primarilyproduction of metered dose inhalers), ancillarycooling systems and fire suppressant systems atGSK facilities. GSK reports ozone depletionpotential in CFC-11 equivalents as defined by the United Nations Environment Programme (UNEP) Ozone Secretariat.
In 2001, GSK set two targets related to ozonedepletion potential to be achieved by 2005; 50%reduction in CFC-11 equivalent emissions related to production processes and 100% reduction inCFC-11 equivalent emissions related to refrigerationand other ancillary processes.
For refrigeration and other ancillary releases ofhalocarbons we reported 0.0078 million kilogramsof ozone depletion potential (CFC-11 equivalents)in 2001. During the reporting process this year,sites took the opportunity to revisit the reportedvalues for 2001 to ensure consistency in reportingand some made revisions. In addition, we correctedsome of the factors that were used to calculate theODP values, applied them more consistently forboth 2001 and 2002 and applied more specific
Ozone depleting substances (ODSs)/ozone depletion potential (ODP)
OZONE DEPLETION POTENTIAL FROMANCILLARY USE
OZONE DEPLETION POTENTIAL FROM ANCILLARY USE BY BUSINESS
62
factors to individual ODSs rather than generalfactors to groups of ODSs. Because of thesecorrections the 2001 baseline was revised to0.00500 million kilograms. For 2002, the ODP from ancillary releases is 0.00738 million kilogramsrepresenting a 48% increase in CFC-11 equivalentreleases. This increase is due in part to betterreporting but primarily to one-time facilitymaintenance activities occurring at one of ourmajor manufacturing sites. This facility aloneaccounted for nearly 30% of the GSK total forancillary ODP release in 2002. However, while therehas been a significant percentage increase from2001 to 2002, the actual amount is small. We did not make progress toward our target foreliminating CFC-11 equivalent emissions related to refrigeration and other ancillary processes so the small number of sites that contribute to thisparameter will need to work to meet the target.
Production process-related CFC-11 equivalentemissions have decreased from 0.18 millionkilograms to 0.12 million kilograms, representing a 33% reduction. The decrease is primarily due tochanges at our main inhaler manufacturing facilitiesfrom production of CFC inhalers to CFC free anddry powder inhalers. In addition to the ozone
depletion potential from production and ancillaryreleases, the ozone depletion potential frompropellant released when patients used ourproducts in 2002 is 1.5 million kilograms.
Read more about GSK’s reduction ofozone depleting substances in asthma,page 41
GRI, Part C, Section 5 EnvironmentalPerformance Indicators EN9
Ozone depleting substances (ODSs) / ozonedepletion potential (ODP) (cont.)
OZONE DEPLETION POTENTIAL FROMPRODUCTION LOSS
OZONE DEPLETION POTENTIAL FROM PRODUCTION USE BY BUSINESS
63
Emissions of VOCs were measured from point andfugitive sources at GSK manufacturing operationsand R&D facilities. VOCs are organic compounds,generally solvents, that are used in large quantitiesin GSK primary manufacturing operations and inlesser quantities in secondary manufacturing andR&D facilities.
The 2001 baseline for VOC was reported as 6.6million kilograms in 2002. A focused review ofVOC reporting for 2002 by ERM revealed someinconsistencies in reporting. The values reported for 2001 were reviewed and adjusted whereappropriate. The new 2001 baseline for VOC is6.83 million kilograms. In 2002, 6.57 millionkilograms was released to air, representing a 4%decrease in total VOCs released to atmosphere. The decrease is due in part to closure of onemanufacturing site.
GSK set a target to decrease total VOC emissionsto air by 30% by 2005 on a per unit sales basis.
Volatile organic compounds (VOCs)and photochemical ozone creationpotential (POCP)
VOLATILE ORGANIC COMPOUNDS EMITTED TO AIR
VOLATILE ORGANIC COMPOUNDS EMITTED TO AIR BY BUSINESS
64
VOCs are capable of producing ozone in the loweratmosphere by reaction with nitrogen oxides in thepresence of sunlight. This photochemical reactionresults in the formation of smog which is oftenworse in the hotter months. Releases of VOCs toair can be compared on the basis of their potentialto create ozone relative to ethylene. Conversion toethylene equivalents is based on the EuropeanChemical Industry Council (CEFIC) “ResponsibleCare HSE Reporting Guidelines” for VOCs (1998).
For 2001, POCP was reported as 1.9 thousandmetric tonnes (1.9 million kilograms). Due tochanges made to the 2001 VOC baseline data, the 2001 POCP reported value has changed to 2.11 million kilograms. GSK’s POCP has increasedby 1.4% since 2001 from 2.11 million kilograms of ethylene equivalents to 2.14 million kilograms of ethylene equivalents.
GRI, Part C, Section 5 EnvironmentalPerformance Indicators EN10
VOCs and POCP (cont.)
PHOTOCHEMICAL OZONE CREATION POTENTIAL
65
Most of our active pharmaceutical products aremanufactured using synthetic chemistry. Themajority of the waste generated contains solventsand chemicals used in these processes togetherwith materials generated during formulation andpackaging operations. The amounts of waste fromthese manufacturing processes are included in ourfigures together with general site waste.
GSK generally classifies its waste into threecategories: general site waste, solvent waste and demolition/construction waste. Although the definition of what constitutes a waste variesamong countries and provinces, for GSK reportingpurposes a material is considered a waste if it is no longer fit for its originally intended purpose.
In order to provide consistent reporting, GSKconsiders a waste to be hazardous if it exhibits anyof a number of properties as defined by the BaselConvention in 1989 of the United NationsEnvironment Programme (UNEP). Included in these properties are flammability, explosivity,water or air reactivity, corrosivity, oxidisingpotential, acute or chronic toxicity, ecotoxicity or infection. In addition, because of their natureand potential impact on R&D activities, radioactivewastes are defined as hazardous.
In order to provide consistent reporting, GSKconsiders a waste to be non-hazardous if it doesnot exhibit any of the hazardous properties noted above.
GSK reports three measures for waste:
• Hazardous waste disposed – includeshazardous waste that has been treated bothon GSK property and at offsite destinationsand hazardous waste that has been sent tolandfill. Treatment includes processes thatresult in beneficial energy or resourcerecovery and those that do not.
• Non-hazardous waste disposed – includesnon-hazardous waste that has been treatedboth on GSK property and at offsitedestinations and non-hazardous waste thathas been sent to landfill. Treatment includesprocesses that result in beneficial energy orresource recovery and those that do not.
Waste generation and management
ISO 14001 accredits Crawley’swaste management byonsite waste contractor.
European regulations makeGSK liable for how waste is
managed to the point of final disposal, evenwhen a contractor manages waste.Although Crawley, a secondarypharmaceutical manufacturing facility, had asuccessful record with their specialist wastemanagement contractor, the EHS Managerand Facilities Manager worked with theircontractor to develop and implement acomprehensive waste management systemthat complied with GSK’s Environment,Health and Safety Global Standard 505,“Waste Management”. They then applied to British Standards and received ISO14001accreditation for the system.
Since 1988, Crawley has used a specialistwaste management company to collectwaste from production areas, take it to anon-site waste compound where it is treated,packaged and labelled for transport beforebeing sent for recycling or disposal. Using acontractor for waste management hassupported Crawley’s initiatives to minimiseand recycle waste and has helped them tocontrol costs. The total cost to managewaste at Crawley has not risen since 1998even though production volumes and wastedisposal costs have risen in the last five years.
The ISO14001 accreditation that Crawley hasreceived for their waste management systemdemonstrates they are effectively managingwaste from creation to final disposal(“cradle to grave”) despite this responsibilitybeing transferred to a third party.
Waste Management - Crawley
• Waste recycled – includes offsite and onsitereuse, recovery and recycling of waste,including in-process recycling.
GRI, Part C, Section 5 EnvironmentalPerformance Indicators EN11
66
Hazardous waste disposed represents totalhazardous waste generated minus the hazardouswaste that has been reused, recovered or recycled.Bioengineered and biohazardous waste is includedin hazardous waste. Most hazardous waste iscomposed of waste solvents.
In 2001 we reported 61.2 million kilograms ofhazardous waste disposed. Minor adjustments were made to values reported in 2001 resulting ina baseline change to 61.3 million kilograms. In2002, GSK disposed of 60.0 million kilograms of
hazardous waste representing a 2% decrease.Nearly 80% of the total hazardous waste disposedin 2002 is solvent waste, 18% is general site waste and the remaining 2% (Other) ischemical/biological/radiological anddemolition/construction wastes. In 2002, nearly halfof all hazardous waste disposed (47%) was treatedto obtain beneficial energy/resource recovery.
A target has been set to decrease hazardous wastedisposed by 15% by the end of 2005 on a per unitsales basis.
Hazardous waste
HAZARDOUS WASTE SOURCEHAZARDOUS WASTE DISPOSED
HAZARDOUS WASTE DISPOSED BY BUSINESS
GRI, Part C, Section 5 EnvironmentalPerformance Indicators EN11
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Non-hazardous waste disposed represents total non-hazardous waste generated minus the non-hazardous waste that has been reused, recovered or recycled. At GSK, most non-hazardous waste isgeneral site waste. Biohazardous waste renderednon-hazardous after treatment by processes such as autoclaving is also considered a non-hazardous waste.
In 2001, we reported that GSK disposed of 89.1million kilograms of non-hazardous waste. During areview of the 2001 data and reporting classifications,it was determined that there had been an error inclassifying an aqueous waste stream generated byone large manufacturing facility incorrectlyincorporating it into non-hazardous waste. Theaqueous waste stream has now been included in thewastewater section resulting in a revised 2001baseline of 77.4 million kilograms of non-hazardouswaste disposed. In 2002, GSK disposed of 69.0million kilograms of non-hazardous wasterepresenting an 11% decrease in the amount ofnon-hazardous waste disposed. Site waste representsover 75% of non-hazardous waste disposed in2002, demolition/construction waste more than22% and other (non-infectious, bio-hazardouswaste) the remaining 3%.
A target has been set to decrease non-hazardouswaste disposed by 8% by the end of 2005 on a per unit sales basis.
In 2002, 73.9% of all non-hazardous waste was sentto landfill essentially unchanged from 2001 (74.4%).Given that overall non-hazardous waste disposed hasdecreased by 11%, it could be expected that theamount sent to landfill would decreaseproportionately. The percentage of non-hazardouswaste undergoing treatment to obtain beneficialenergy or resource recovery has increased from9.7% in 2001 to 12.3% in 2002. These numbersmay indicate that while we are treating more wastein ways that provide energy or resource benefit, wehave to do more to identify and utilise options fornon-hazardous waste that do not involve landfill.Many sites continue to look for ways to reducewaste and have undertaken reviews of theiroperations to find ways to reduce the amount of non-hazardous waste that must be treated or sent to landfill.
Read about our waste generation andmanagement performance, page 65
Read about our special commendation for waste management, page 36
GRI, Part C, Section 5 EnvironmentalPerformance Indicators EN11
Non-hazardous waste
GSK Bogotá, Colombia is a small site that makesconsumer products,primarily oral liquids, forthe Latin America market.
A variety of wastes (solids and liquids) aregenerated at the site. They come fromquality assurance laboratories, productionlines, or from refunds, expired medicines,rejects and even office activities. Toaddress the situation Bogotá initiated awaste management system to find thebest and most appropriate finaldisposition for each waste materialgenerated by the diverse processes carriedout on site. This system calls one or moreof the following processes into play:research and investigation, selection,carryout treatment, recycling, disablingand destruction. With the implementationof this system GSK Bogotá has decreasedthe quantity of wastes that are sent tolandfill or incinerated. Fully 71% of thewaste formerly incinerated or sent tolandfill is now reused or recycled.
Waste Management - Bogotá
68
Non-hazardous waste (cont.)
NON-HAZARDOUS WASTE SOURCENON-HAZARDOUS WASTE DISPOSED
NON-HAZARDOUS WASTE DISPOSED BY BUSINESS
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Waste recycled includes hazardous and non-hazardous waste reused, recovered or recycledincluding in-process reuse of solvents. The totalwaste recycled as a proportion of total wastegenerated is tracked as a key performanceindicator. In 2001 the total waste generated was510.3 million kilograms. In 2002 the total wastegenerated decreased 5% to 484.9 millionkilograms. In 2001 and 2002 the proportions ofwaste recycled were 72.8% and 73.4%respectively, a 1% improvement in waste recycled.
In 2001, we reported 365.8 million kilograms ofrecycled waste. After a review of the 2001 data, a slight revision of the baseline was necessary toensure consistent reporting. The revised 2001baseline is 371.6 million kilograms. In 2002, GSKrecycled 355.9 million kilograms of waste, 4% lessthan in 2001, due to an overall decrease in totalwaste produced. However, waste recycled as aproportion of total waste produced increased 1% reflecting our efforts to produce less waste and to maximise recycling of any waste produced.
Nearly 72% of waste recycled in 2002 washazardous waste, primarily solvents. Seventy ninepercent (79%) of all hazardous waste recycled isthe solvents recovered and reused at two largeprimary manufacturing sites. In addition tohazardous waste recycled onsite there are threeother components of total waste recycled: non-hazardous waste recycled onsite, non-hazardouswaste recycled offsite and hazardous wasterecycled offsite. Percent increases for thesecomponents were 106%, 19.6% and 14.7%,respectively. However, since the dominantcomponent of total waste recycled is hazardouswaste recycled onsite, which decreased 12.9%,there was an overall decrease in total wasterecycled.
A target has been set to increase the proportion oftotal waste recycled by 10% by the end of 2005.
GRI, Part C, Section 5 EnvironmentalPerformance Indicators EN11
Recycled waste
GSK’s R&D site in Harlow,UK succeeded in tacklingan upward trend in theamount of waste beingsent to landfill. New
recycling programmes were initiated and backed-up by a recycling awarenesscampaign. Waste management andrecycling awareness became part of the site’s induction training for newemployees, and was included in refresher training for groups such asPharmaceutical Development. It was alsomade a focus for support staff, who are key to recycling programmes.
The programmes were uncomplicated and included such things as providingrecycling boxes for spent photocopiertoner and printer cartridges, providingdesktop “Treecycler” boxes for thecollection of all types of paper, recyclingconfidential and non-confidential wastepaper. Containers in vending andrestaurant areas were designated for therecycling of aluminium cans. Anothercardboard baler was provided.
The results of this twofold approach were dramatic. Making recycling moreconvenient and increasing awarenessincreased recycling substantially.
• 716% increase in aluminium canrecycling (8 times better than 2001)
• 128% increase in plastic cup recycling(from 1,852kg to 4,221kg)
• 67% increase in toner cartridgerecycling (from 1,412kg to 2,358kg)
• 59% increase in paper recycling (from12,733kg to 195,046kg)
• 38% increase in cardboard recycling
Waste Recycling - Harlow
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Recycled waste (cont.)
PROPORTION OF TOTAL WASTE RECYCLED TOTAL WASTE RECYCLED
TOTAL WASTE RECYCLED BY BUSINESS
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Wastewater is generated from manufacturingprocesses and various site operations and containsdissolved and suspended solids. Wastewater qualityis measured by Chemical Oxygen Demand (COD)which is a measure of the oxygen required tochemically oxidise organic and inorganiccompounds present in the water. COD is thereforean indirect measure of the foulness of wastewater.
The wastewater volume reported by GSK includesall manufacturing and site process wastewater aswell as sanitary and food service wastewater. GSK wastewater released to offsite municipalsewers and to sea represents 75% of GSK’s totalwastewater volume. Wastewater released to riversand estuaries and wastewater that has beenreused, recovered or recycled is included in otherand represents the remaining 25% of the total.
In 2002, GSK generated 16.6 million cubic metresof wastewater compared with 19.7 million cubicmeters generated in 2001, a 16% overall reduction in wastewater volume. A slightly greaterpercentage of wastewater was recycled or reusedin 2002 (up from 6.6% to 7.9% or 1.3 millioncubic meters of wastewater recycled in 2002).Many GSK sites in India and nearby regions haveimplemented “zero wastewater” dischargeprogrammes due to the restrictions on water usage in the region. One of our sites in Mexico
implemented an improvement project forwastewater management that resulted in a 95% reduction in the use of offsite treatment and the related costs.
Wastewater
WASTEWATER VOLUME
WASTEWATER VOLUME BY BUSINESS
72
Several GSK manufacturing plants have wastewater treatment plants onsite that providesecondary level treatment of their wastewater.Secondary level treatment removes most organicpollutants by biological systems or physical orchemical treatment. Beginning in 2002, wemeasure COD after final treatment occurs whetherin onsite wastewater treatment plants or inmunicipal or publicly owned treatment works.
For 2001, we reported COD as 26.9 millionkilograms. A focused review of the reportingpractices for COD revealed minor inconsistencies in2001 reporting. These inconsistencies were broughtinto line with current reporting practices resultingin an increase in the 2001 baseline to 27.7 millionkilograms. In 2002, the COD of wastewater was23.2 million kilograms, a 16% decrease from 2001attributable to factors such as upgrades to sitewastewater treatment operations, improvedreporting and the revision of the boundaries forreporting of COD to include offsite treatment.
A target has been set to reduce the COD ofwastewater effluent by 30% on a per unit salesbasis by the end of 2005.
In 2002, 400,000 cubic meters of wastewater were released directly to rivers with a COD of zero.Wastewater released directly to sea, a much largervolume of 4.2 million cubic meters, had an
associated COD value of 10.7 million kilograms.Nearly 50% of all wastewater generated by GSKfacilities is treated in publicly owned treatment facilities.
Wastewater (cont.)
WASTEWATER CHEMICAL OXYGEN DEMAND
WASTEWATER CHEMICAL OXYGEN DEMAND BY BUSINESS
73
GRI, Part C, Section 5 EnvironmentalPerformance Indicators EN12
Wastewater (cont.)
GSK’s Xochimilco, Mexicosite manufactures andpackages tablets, capsules,syrups, inhalers, clean
liquids, creams, injectables, and oralsuspensions. In 2001 the site consumedapproximately 99,847 m3/year of waterand discharged 55,504 m3/year ofwastewater. In 1997 Xochimilco began a site-wide wastewater managementprogramme. In the first year, their effortsfocused on minimising wastewaterdischarge to the facility drainage. In 1998,they measured the flow of wastewater,determined its physical and chemicalcharacteristics and performed treatabilitystudies to learn about the variablesinherent in their wastewater generationand how the treatment plant would haveto be designed. In 1999, the designs weredrawn and in 2002 a wastewatertreatment plant that allowed the reuse of water on site was operating. With itsnew system Xochimilco has achieved:
• A 95% reduction in the volume ofsanitary wastewater discharged to the sewers.
• Elimination of industrial wastewater to public sewers.
• A 33% reduction in the amount ofwater consumed on site.
• A 90% reduction in the amount ofsuspended solids discharged to thesewer and the biological oxygendemand of the wastewater.
Wastewater Management Programme -Xochimilco
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As indicators of our health and safety performancewe measure:
• Work-related injuries and illnesses that areserious enough to cause the injured or illemployees to be unable to work one ormore days.
• Calendar days that employees are unable to work due to these injuries and illnesses.
• Work-related injuries and illnesses that donot cause the injured or ill employees to beunable to work.
We report these injury and illness indicators as ratesper 100,000 hours worked. Work-related injuriesand illnesses experienced by all GSK employees aswell as by contract workers who are directlysupervised by GSK employees are included.Construction contractors or contract companies onsite that supervise and direct their own staff are notincluded. We do not currently include work-relatedmental illness in these rates.
We also keep track of the injuries and illnesses thatare related to work on GSK premises but that areexperienced by people who work for othercompanies such as contract food servicecompanies, landscape companies and maintenancecompanies. In 2002, the lost time injury and illnessrate for this group was 0.50 lost time injuries andillnesses per 100,000 hours worked. This is higherthan the lost time injury and illness rate (0.40) forthis group in 2001 and higher than the lost timeinjury and illness rate of 0.34 for GSK employees.The reportable injury and illness rate is 1.22 injuriesand illnesses without lost time per 100,000 hoursworked and the lost day rate is 6.66 calendar dayslost per 100,000 hours worked. The reportableinjury and illness rate and the lost day rate werenot measured for this group in 2001. Part of theincrease in the lost time rate may be due toimproved reporting in this group.
GRI, Part C, Section 5 EnvironmentalPerformance Indicators LA7
Health and safety
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Our primary injury and illness measure is the LostTime Injury and Illness rate (the number of injuriesand illnesses that result in one or more lost workdays per 100,000 hours worked). The health andsafety target is to reduce this rate by 15% per yearthrough 2005. From 2001 to 2002, the ratedeclined from 0.43 to 0.34, a reduction of 21%, exceeding our yearly target.
The lost time injury rate per 100,000 hours workedwas 0.31 and the lost time illness rate was 0.03based on 638 lost time injuries and 54 lost timeillnesses not including work-related mental illhealth. All business units have programmes in place to address safe working conditions and most improved significantly from 2001 to 2002.
Read about our work-related mentalhealth programme, page 31
Lost time injury and illness
LOST TIME INJURY AND ILLNESS RATE
LOST TIME INJURY AND ILLNESS RATE BY BUSINESS
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The Lost Calendar Day rate is the number ofcalendar days that employees could not workbecause of work-related injuries and illnesses per 100,000 hours worked. This provides onemeasure of the severity of injuries and illnesses. It is important to remember that the rate can alsovary because of medical and disability managementaspects of these events and that some illnessessuch as hearing loss and sensitisation can result inpermanent disability without resulting in lost time.
There were 14,077 lost days due to injury and1,932 lost days due to illness in 2002 excludingwork-related mental illness. Musculoskeletal illness,generally caused by cumulative trauma, was theleading cause of lost days due to illness at 75%.Illnesses resulting in permanent disability, such asnoise induced hearing loss, sensitisations, and somecases of cancer and musculoskeletal illness alsomerit a special preventive focus. Approximately ninepercent of 2002 illnesses resulted in permanentdisabilities. Slips, trips and falls were the leadingtype of lost days due to injury, accounting for 30% of lost days, followed by motor vehicleaccidents with 23%.
The three leading types of lost time injuries areslips, trips and falls followed by motor vehicle
accidents and over-exertion strain injuries. These are the same as the leading types in 2001.The leading type of lost time illness, excludingwork-related mental illness, is musculoskeletalillness which is also the leading cause of lost days.
Lost time injury and illness (cont.)
CALENDAR DAYS LOST
CATEGORIES OF LOST TIME ILLNESSCATEGORIES OF LOST TIME INJURY
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The GSK Reportable Injury and Illness rate is thenumber of GSK reportable injuries and illnesses thatdid not result in lost time per 100,000 work hours.GSK reportable injuries and illnesses are those thatare more serious than first aid but do not result inlost time. The reportable injury and illness ratedeclined 11% from 2001 to 2002 with 955 injurieswithout lost time and 339 illnesses without losttime, not including work-related mental illness.
Read about our work-related mentalhealth programme, page 31
Injuries and illnesses without lost time
REPORTABLE INJURY AND ILLNESS WITHOUTLOST TIME RATE
REPORTABLE INJURY AND ILLNESS WITHOUT LOST TIME RATE BY BUSINESS
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In contrast to the types of lost time injury, theleading type of injury without lost time is contactwith sharps. This is followed by slips, trips and fallsand overexertion/strain, two of the leading types of lost time injury. While musculoskeletal illness isthe second leading type of illness without lost timesimilar to lost time illnesses, the leading type ofillness without lost time is non-allergic dermal with work-related mental illness only 10% of the illnesses that do not result in lost time.
Injuries and illnesses with and without lost timeThe total number of cases of reportableoccupational illness including mental illness with or without lost days increased from 448 in 2001 to 494 in 2002. It is likely that this is due to anumber of factors including improved recognition,investigation, and reporting of both new andrecurrent occupational illnesses. Musculoskeletalillnesses, such as cumulative trauma remains thenumber one cause, accounting for 34% of totalillness. This is followed by non-allergic dermatitis(31%), mental illness (20%), allergic dermatitis(4%) and allergic respiratory (3%) illness.
Injuries and illnesses without lost time (cont.)
CATEGORIES OF REPORTABLE ILLNESSCATEGORIES OF REPORTABLE INJURY
GSK selected ERM from a group ofqualified companies to serve only as theindependent verifier of this report. ERMare not involved in developing our EHSprogrammes or processes or in correctingany deficiencies that they may uncover in the verification process.
ERM (Environmental Resources Management), anenvironmental and social consultancy, was asked byGSK to independently review its 2002 environment,health and safety (EHS) report. This is the secondEHS performance report for GSK, following the2001 report of baseline data and programmes,which was also reviewed by ERM.
Specifically we were asked to:
• Check that the information presented isaccurate, and that it represents GSK’sperformance fairly.
• Critically review the scope, balance andinterpretation of the information presented.
• Assess the effectiveness of the company’sdata management processes that havegenerated the 2002 data.
• Focus in more detail on ‘bottom-up’reporting processes, to complement thefocus last year on corporate processes forcollating site data and calculating corporate performance data.
ActivitiesBetween December 2002 and April 2003 we:
• Reviewed corporate processes for collatingand verifying environmental and H&S data,including the use of logic tests to identifyanomalies in reported data.
• Visited eight manufacturing and commercial sites for a one-day review, and conducted telephone interviews withboth environmental and health and safetyprofessionals at 14 further sites, to reviewsite data monitoring, management andreporting. The sites chosen reflected GSK’sglobal coverage and encompassed the full range of manufacturing and R&Doperations, as well as some commercialfacilities.
• Undertook a detailed desk-top review andtelephone interviews with site personnel tofocus specifically on emissions of volatileorganic compounds (VOCs) for eight sitesthat contribute the most to total GSK VOCemissions. This activity was initiated afterfinding material data errors in VOC dataduring the site visits, in order to investigatethe potential extent of such errors.
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VERIFICATION STATEMENT
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• Interviewed Corporate Environment, Health and Safety (CEHS) and EmployeeHealth Management (EHM) personnel inorder to review data management systems.
• Reviewed drafts of the 2002 report anddiscussed our findings with GSK.
Findings - Data AccuracyIn our opinion, the information presented is accurate and statements based on it give a balancedinterpretation of GSK’s EHS performance. The scopeof the report is appropriate to the environmental,health and safety issues of relevance to GSK.1
GSK has dedicated considerable effort at corporateand site level to establishing a robust process andweb-based tools to collect and report accurate EHS data from all manufacturing and research anddevelopment facilities around the world, as well ashealth and safety data (and limited environmentaldata) from commercial and office facilities.
During our site visits, data review and focused VOC review, we found material data errors in thereporting of VOC releases to air and post-treatmentChemical Oxygen Demand (COD) in wastewaterdischarges. GSK took appropriate steps to resolvethese errors to ensure accurate reporting in 2002and amended the 2001 baseline to facilitateperformance tracking in 2002 and beyond. We didnot encounter material data errors relating to otherEHS indicators.
The level and extent of data validation varies at sitelevel. Despite the errors relating specifically to VOCand COD data, in general GSK has improved theeffectiveness and efficiency of the corporate internalreview process for ensuring the quality of site data,thereby eliminating the majority of errors in site data.Nonetheless, there is scope for further improvementto the corporate review process as well as to sitelevel quality checks of data.
Findings - Data Management and ReportingSignificant improvements have been made in thedata collation, management and reporting systemsover the last 12 months. In particular, GSK has:
• Improved the definitions, guidancedocuments and technical instructions given to sites, resulting in greater consistency andaccuracy of site reporting.
• Continued to improve the web-based datareporting and management systems tool.
• Collated data from additional commercial and office sites than in previous years.
• Developed additional tools for reviewing and interpreting the collated GSK data.
• Started to audit contract manufacturers andkey suppliers against GSK’s environmental,health and safety requirements.
The opportunity exists for sites to understand bettertheir contribution towards GSK-wide performanceand their roles in achieving group targets. To assistsites with this process, CEHS should provide morefocused, timely feedback to sites from the internaldata collation and reporting process.
RecommendationsWith the development of additional tools to facilitatereview of corporate EHS data and progress towardstargets, we recommend that GSK focuses on:
• Strengthening sites’ understanding of the corporate reporting requirements. Inparticular, improving key sites understandingof their roles in achieving corporate targets,in part through more focused informationfrom CEHS and consultation with CEHS onprioritizing improvements.
• Further improving quality checking of sitedata, both by sites before it is submitted and by corporate reviewers after receipt of the data.
Finally, we look forward to seeing the benefits toGSK in 2003 of implementing planned processes for tracking progress towards targets, and, wherenecessary, reviewing and further developing plans for achieving the corporate EHS targets.
ERM9th May 2003
1 ERM did not review GSK’s social performance information in
the 2002 Society Environment Report.
Verification statement (cont.)