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In Baxter’s nine self-reported environmental incidents were exceedances of permitted wastewater discharge limits.

To address existing wastewater compliance issues globally and to prepare for potential future ones, Baxter pursues an aggressive approach to wastewater compliance, evaluation and risk mitigation.

Baxter identifies leading waste reduction opportunities based on its highest-volume waste streams, facilities that produce the most waste, sites with strong potential to improve, and other factors.

and analyzes waste data from each major facility to assess progress toward waste reduction goals and identify ways to improve processes that generate waste.

CommunitiesIntroduction Facilities measure waste at the point of generation to rapidly identify significant sources.

During metric tons of total waste, up 2% from 2015 in absolute terms and 4% less indexed to revenue.4 The company’s operations generated 62,900 metric tons of nonhazardous waste during 2017, a 2% reduction in absolute terms and a 6% decrease indexed to revenue, compared to 2016.

In reduced nonhazardous waste by 18% (604 metric tons) compared to the prior year through various process changes.

is Baxter’s largest waste stream, representing roughly one-third of the company’s nonhazardous waste.

During generated 8,100 metric tons of regulated waste, 6% less in absolute terms than in 2016, and 10% less indexed to revenue.

For example, a project implemented at Baxter facilities in Opelika, Alabama, and Hechingen, Germany, reduced regulated waste by tons, of which 66% had previously gone to landfill.

and reuse the hazardous liquid portion from the waste and then recycle the remaining content.

In and 60% of regulated waste for an overall recycling rate of 76%.

Climate change is among the most pressing sustainability challenges facing the world today, posing risks for humans and natural ecosystems.

CommunitiesIntroduction Multinational companies can help address climate change by understanding their impacts across the value chain and decreasing GHG emissions.

GHG EMISSIONS FROM OPERATIONS Energy use accounts for emissions from operations, so the company focuses its reduction efforts in this area.

In completed 210 energy-conservation projects that reduced annual GHG emissions by more than 9,300 metric tons CO2e.

Other tactics include fuel switching, cogeneration, onsite renewable energy systems, renewable power procurement and green buildings.

Total net emissions from operations equaled tons CO2e in 2017, including a subtraction of 185,200 metric tons CO2e of carbon credits.

By the end of for operations was from renewable sources.

Biomass fuel for boilers at three company locations11% of total energy use, and the renewable energy component of purchased electricity and renewable energy certificates together represented 19%.

During more than 230,000 MWh of 100% renewable electricity for Baxter’s European manufacturing sites.

In most cases, savings from the company’s comprehensive global energy sourcing strategy finance the premium for green electricity contracts.

Globally in MWh of electricity generated from 100% certified renewable power, a 21% increase from 2016, including all electricity purchased by the company in Illinois.

Since at its headquarters in Deerfield, Illinois, through electricity generated from certified renewable energy sources.

company also works to mitigate environmental impacts from product transport.

The company integrates social and environmental criteria into its requests for proposal and supplier contract templates, in addition to traditional considerations such as price and quality.

Implement world-class sustainability practices with key partners Increase Baxter’s spending with diverse suppliers by in 2015 to 6% in 20201 Expand green transport partnerships with government agencies, nongovernmental organizations and/or private companies from one business region to all business regions globally* *Baseline is 2015.

To assess company released an updated, more robust version of the survey, which covers program governance as well as environmental, social and health and safety aspects.

Supplier Audits Baxter’s Supplier Sustainability team works with its Environment, Health, Safety and Sustainability team to conduct supplier audits.

The audit format aligns with the Pharmaceutical Supply Chain Initiative (PSCI) protocol, covering ethics; labor; environment, health and safety; and related management systems.

** Includes greenhouse gas emissions, waste, water and product stewardship.

Baxter develops mutually beneficial relationships with small and diverse suppliers, and continually works to increase the diversity of its supplier base.

In second annual Supplier Diversity Fair at its corporate headquarters.

The company recognizes employees and suppliers that help advance supplier diversity at the company.

During Supplier Diversity Leadership Award, one purchasing manager with a Supplier Diversity Champion Award and one supplier as Supplier of the Year.

The company also supports diversity through local business partners including the Chicago Minority Supplier Development Council, Women’s Business Development Center, Chicago United and Chicagoland Business Leadership Network.

CommunitiesIntroduction The company is a member of PSCI, a healthcare industry group focused on responsible procurement, risk mitigation and supplier capability building.

GREEN LOGISTICS Baxter transports more than materials and finished goods each year throughout its global supply chain.

The company’s worldwide greenhouse gas (GHG) emissions from product transport totaled tons CO2e in 2017, equivalent to 91 kilograms CO2e per metric ton of products transported, a 22% increase from 2016.

While this increased Baxter’s air transport emissions, it was critical to the company’s ability to continue providing products to patients and healthcare providers.

In continue working to reduce product transport emissions.

Intermodal transport Combining multiple transportation modes for a single shipment—for example, converting road to rail for parts of a route—can decrease costs and overall GHG emissions.

In an effort to replace air freight with ocean and rail wherever possible, Baxter has implemented an air approval process in Asia Pacific; Latin America; and Europe, the Middle East and Africa (EMEA), which requires all large, unplanned shipments to receive senior manager approval.

Along with its partners, Baxter is committed to being first on scene in times of crisis with product and resource donations.

The company’s Government Policy and Reimbursement team works with lawmakers, governments and policymakers worldwide to support patient access to the company’s lifesaving therapies, improve the regulatory environment and reimbursement structure for Baxter’s therapies, increase understanding of the benefits of those therapies and address barriers to care.

This legislation is intended to improve the process for regulatory advancement and approval of new treatments, and will help enhance the innovation ecosystem for medical technology, biosimilars, generic pharmaceuticals, innovator pharmaceuticals and biologics.

to learn more about health disparities affecting diverse populations and engage key leaders about Baxter’s efforts to serve our patients with end-stage renal disease, which disproportionately impacts minority populations.

Complete two projects, including one by enhance sanitation in water-stressed areas where Baxter has an operational presence* *Baseline is 2015.

In Fundación Solar in Guatemala to reduce natural resource use, improve community health, provide access to clean drinking water and empower women in Aguacatán, Huehuetenango.

Other participants include the Guatemalan Ministry of the Environment, Universidad del Valle and the United Nations.

The project will deliver community members water filtration tanks to purify harvested rainwater, wood-burning stoves that are safer and more energy-efficient than the traditional method of open-fire cooking, and education about natural resource stewardship.

Immediately after the storm passed, Baxter began helping its more than such as gasoline, food, water and toiletries.

Baxter also distributed gas-powered generators and propane cooktops, and installed laundry stations at its manufacturing facilities to support employees’ personal needs.

The company continues to provide the communities around its manufacturing facilities with access to potable water as well as supplies and other aid.

Baxter World Environment Week Through Baxter World Environment Week, the company engages and educates employees about environmental sustainability.

In conducted environmental preservation and restoration activities, including local cleanups, educational campaigns, tree planting events, recycling activities, and ecosystem rehabilitation projects.

Baxter Renal Therapy Services (RTS) Colombia won the inspires employees to enhance and protect biodiversity in their region.

RTS employees participated with their families in including educational visits to natural parks and botanic new scholarships 68 renewed scholarships 193 countries worldwide 23 gardens, the planting of 182 native species, and cleanups of local water sources.

(% of program criteria implemented across all manufacturing facilities, at year-end) Pre-requisite Bronze 91% 89% 92% Silver 77% 76% 80% Gold 64% 60% 64% Baxter's Global Greenhouse Gas (GHG) Emissions Footprint (Scope 1, 2, and 3) (metric tons CO2e).

The environmental data included in this report are based on warehouse, and 48 are pharmacies, administrative, clerical or other.

certain non-routine, non-production-related waste streams from its total waste performance data and progress against its 2020 waste goal.

For the past five years, Bureau Veritas North America has verified to a limited assurance level Baxter’s methodology and emissions factors for calculating Scope 3 GHG emissions.

During the year, emissions from the Baxter-operated biomass boilers equaled 146,000 metric tons CO2.

BAXTER DATA SUMMARY (continued) 14 Baxter’s Lean Energy Program began in 2007.

In 2017, Baxter reclassified a waste stream as wastewater, thereby excluding it from waste calculations.

relief response, the regulatory environment, manufacturing processes and changes in product mix and marketing.

BAXTER VALUE CHAIN ENERGY USAGE AND GHG EMISSIONS (continued) benchmarking with industry.

GHG emissions associated with using biomass fuel, principally wood/wood waste, as a boiler fuel at three Baxter locations.

These emissions were calculated as 129,000, 148,000, and 146,000 metric tons CO2 in 2015, 2016, and 2017, respectively.

13 Baxter used the Greenhouse Gas Protocol to estimate GHG emissions associated with reported fuel usage by companymanaged sales and distribution fleet vehicles and other vehicles.

14 Refrigerant emissions represent reported CFC, HCFC and HFC refrigerant losses by each Baxter location.

17 Estimated based on production quantities and global warming potential information for certain types of products.

and Competence Bureau Veritas is an independent professional services company that specialises in quality, environmental, health, safety and social accountability with over 185 years history.

AmerisourceBergen exists within a highly complex and dynamic healthcare environment.

To improve the sustainability of our operations, we have implemented practices that reduce energy use and waste as well as packaging innovations.

We’ve invested in two solar energy projects and sustainable building infrastructure, including new LEED certified office spaces.

Among the critical impacts that the Foundation has had, none is more important than the work being done to address the devastating effects of the opioid epidemic.

To engage our workforce, we create an inclusive culture that prizes diversity.

Our core value, showing respect in the workplace, is supported by a heightened focus internally around our #connectwithrespect campaign, developed to foster an environment where everyone is heard, accepted and welcomed.

In the coming year, we plan to integrate corporate citizenship even more deeply into our business, expand our diversity and inclusion efforts, scale our environmental sustainability efforts across the supply chain and convene our grantees and strategic partners to advance the work of the Foundation.

Powered by the more than worldwide, we touch nearly every aspect of the pharmaceutical supply chain, offering expertise ranging from drug distribution and niche premium logistics to reimbursement capabilities and pharmaceutical consulting for both human and animal health.

AmerisourceBergen impacts the core of healthcare delivery with a focus on pharmaceutical care.

We are dedicated to engaging our associates and fostering an inclusive work environment.

Our ongoing commitment to fundamental human rights allows us to foster a diverse and inclusive work environment where associates of all backgrounds are treated with fairness, dignity and respect.

of overall healthcare, and this includes operating efficiently and reducing our carbon footprint wherever possible.

This enables us to clearly understand the healthcare environment and regulatory framework within which we work.

Resource Grant Program, which provides funding for new and constructive solutions to the opioid epidemic.

Over the past year, we have piloted ABC Connect, a local engagement platform dedicated to offering associates opportunities to get involved in networking, community, wellness and environmental initiatives.

This includes training programs, professional development resources, tuition reimbursement and opportunities to participate in mentorship programs, employee resource groups and volunteering events.

Collecting feedback from peers and colleagues who understand the associates’ work is critical in helping associates grow and develop in an environment where associates must increasingly work with peers to be most effective.

Invitation-only courses teach our leaders how to operate in a volatile, uncertain, chaotic and ambiguous environment.

Leaders assess future trends that impact our environment and discuss risk management, influence, strategy translation and decision-making.

for an equal opportunity work environment where associates are treated with fairness, dignity and respect.

To this end, we launched programs in training and development that include an Unconscious Bias Training Program in April facets of our business and employee resource groups.

Who wouldn’t want to work for a company with so much positive energy?” explained Michelle.

as a Noteworthy company for diversity, based on our hiring, retention and promotion of women, minorities, people with disabilities, LGBT and veterans.

The award is based on data that ranks information about recruitment, talent development, senior leadership commitment and supplier diversity.

• Established an internal campaign that included training and social media, #connectwithrespect, deepening a positive work environment and fostering a sense of respect and inclusion in the workplace.

Our culture is built around an open environment that empowers its associates to have a voice through communication forums that encourage feedback and an open exchange of ideas.

who, based on shared experiences, come together to provide a positive setting for professional development and the creation of ideas to support the success of the company’s diversity and inclusion efforts.