Simple and straightforward reporting from a long-time leading reporter

Baxter International, an American healthcare company specialising in medical devices, pharmaceuticals and biotechnology, is a seasoned veteran in the world of sustainability reporting. But is there evidence in its 2010 sustainability report that the company’s tried and tested tactics stand tall in the rapidly populating world of reporters?

Baxter reports annually – this year self-reporting to B application level against the GRI G3 Guidelines. The website-based report has a sleek, well-organised design and an easy-to-use interface. A downloadable PDF version of the website is available, but it’s clunky, maxing out at 314 pages. A 16-page PDF summary document covers 2010 highlights for those looking for quick information.

The obvious gem in Baxter’s 2010 report is its product responsibility showcase. There is insight into Baxter’s comprehensive sustainable design programme for medical devices. Its product sustainability review – a thorough assessment that takes place during product development – combines with an array of product life-cycle assessments. This is the winning one-two punch combination in sustainable product design that helps Baxter’s commitment to reduce emissions truly extend beyond operational impacts.

In 2010, Baxter extended its line of Carbon Trust certified products. The Carbon Trust, an independent, not-for-profit organisation helping businesses cut carbon emissions, gave a new dialyser the certification as it minimises material use, weighing in 22% lighter than previous models. Its slimmer design also requires one-third less cardboard in packing and offers the potential for lower fuel consumption in shipping.

The Carbon Trust studied the carbon emissions during the production, distribution, usage and disposal of the Xenium+ dialysers against those of previous models. The certification is backed by a statement by Baxter to continue to reduce the carbon footprint of the product over the next few years.

Sustainability priorities 

Baxter has nine sustainability priorities in three broad categories: Our People, Our Operations and Products, Our World. These include essential commitments: creating an inclusive workplace, strengthening access to healthcare, and reducing greenhouse gas (GHG) emissions, waste generation and water usage. This solid framework informs Baxter’s sustainability efforts across the board. The priorities are each supported by a goal.

Some goals are more virtue-based missions. For example: “Create and sustain an inclusive culture where diverse ideas, backgrounds, experiences and perspectives are respected and valued.” Baxter tags on the 2015 deadline to this goal, and includes an explanation as to how the company plans to attain this, but fails to explain how success will be measured. Baxter’s environmentally-focused goals, on the other hand, are metrics-based.

Baxter reports on a consistent set of core performance indicators established in 2005. Data since, year on year, is in a PDF table so readers can easily assess trends and performance over time.

Progress towards the company’s sustainability priorities and goals in 2010 are significant and include:

• decreased water use by 10% in absolute terms (31% indexed to revenue from 2005), exceeding the 2010 reduction goal of 20% indexed to revenue;
• decreased net GHG emissions from operations by 7% in absolute terms (29% indexed to revenue from 2005), exceeding its GHG-reduction goal of 20% indexed to revenue.

Transparency in reporting progress against goals is well appreciated, and Baxter has no qualms pointing out where they could have done better. For example, to help reach their goal to reduce the carbon footprint of its US car fleet by 20% by 2015 from 2007 levels, the company bought new vehicles. But Baxter then discovered that fuel efficiency of the new cars did not meet manufacturers’ claims. Progress against the goal was minimal.

Straight talk with stakeholders

Baxter’s commitment to improve sustainability reporting year to year is cemented in their quest for stakeholder feedback on previous reports. This reinforces the company’s claim that the annual sustainability report “serves as an entry point for stakeholder engagement and is the main vehicle for disclosing information about and soliciting feedback on Baxter’s sustainability initiatives and progress”. 

This year, Baxter enlisted stakeholder groups and thinktanks such as Ceres, Bureau Veritas and SustainAbility to provide detailed feedback on their 2009 report. Findings are clearly stated in the new report. Baxter even goes a step further, specifying how they improved reporting in 2010, mapped against each stakeholder suggestion. 

The business case for sustainability at Baxter is clear; the company’s commitment spans more than three decades, and Baxter has been included in the Dow Jones Sustainability Index for 12 straight years.

Baxter’s corporate mission to save and sustain lives is reflected in their sustainability commitments and the alignment between the company’s business and sustainability strategies. In the report, Baxter outlines company-wide benefits realised through implementation of a sustainability framework and commitments from employee engagement and brand reputation, to cost savings and market access.

Baxter’s sustainability reporting is by the book and for the books. In this case, simple, straightforward reporting wins with shareholders and stakeholders alike.

Bianca Mazzarella is a consultant with Context America. 

Snapshot