Sustainability at Bristol-Myers Squibb

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					           Sustainability at
         Bristol-Myers Squibb

                  Laura R. Bradford

Multi-State Working Group on Environmental Performance
         7th Annual Learning Together Workshop
                      June 30, 2004
           Bristol-Myers Squibb
•   $20 billion annual sales
•   Approximately 44,000 employees
•   60 major facilities/27 countries/6 continents
•   3 Divisions:
                                               % 2003 Global Sales

    Worldwide Medicines                               ~ 86%
       Prescription Pharmaceuticals
       Consumer Medicines
    Nutritionals                                      ~ 10%
       Mead Johnson

    Medical Products                                    ~ 4%
       ConvaTec (ostomy & modern wound care)
Our company’s mission is to extend and enhance human life by providing the
      highest-quality pharmaceutical and related health care products.
We pledge … to act on our belief that the priceless ingredient of every product
                    is the honor and integrity of its maker.
 To our customers
        We pledge excellence in everything we make and market, providing the
        safest, most effective and highest-quality medicines and health care
        products...
 To our colleagues
        We pledge personal respect, fair compensation and honest and equitable
        treatment...
 To our suppliers & partners
        We pledge courteous, efficient and ethical behavior and practices;
        respect for your interests; and an open door…
 To our shareholders
        We pledge dedication to increasing shareholder value
 To the communities where we live and work ...
        We pledge conscientious citizenship, a helping hand for worthwhile
        causes and constructive action that supports a clean and healthy
        environment...
            Sustainability




healthy communities,
          a healthy environment
                 & economic prosperity...
    now and for our children’s future
      Satisfying Stakeholder Needs
   Extend and enhance human life … now
             and for the future

                            Economic
  Patients &                Progress                         Suppliers &
  Customers                                                   Partners
                           Profitable growth
                        Safe,
                                        Competitive
                      effective
                      products The
Colleagues                                returns
                                                                 Shareholders
                Social      Pledge
                                   Environment
             Responsibility  Safe  Protection
                                workplace
                Conscientious               Clean, healthy        Countries
Communities
                 citizenship                environment
           Sustainability:
    Aligned with BMS Objectives
Sustainability – creating a better world for the future
through our actions and decisions today – is at the
heart of what we do at Bristol-Myers Squibb. We
define it by the actions we take, the values we
uphold and the goals we set.”

Sustainability is at the core of our business
strategy. That business model is rooted in the
values expressed in our Pledge…”

                       Peter Dolan
             Chairman & Chief Executive Officer
              BMS 2003 Sustainability Report
Our Social Responsibility              www.tourofhope.org

Extending & Enhancing Human Life
         In 2003 and again in 2004,
  Bristol-Myers Squibb teamed up
  with cancer survivor and Tour de
             France champion Lance
 Armstrong to sponsor the Bristol-
            Myers Squibb TOUR OF
        HOPETM to raise awareness
         about cancer research and
 clinical trials in an unprecedented
      cross-country cycling journey.
          Secure the Future
• Initiative to fight HIV/AIDS in Sub-Saharan
  Africa
  – $115 million over 5 years
  – Medical research & care
  – Community outreach
  – Education
    Evolution of EHS Involvement
•   Proactively address stakeholder EHS concerns
    –   Understand/anticipate expectations

•   Contacts for “green” investment vehicles
•   Socially Responsible Investment vehicles
    established
    –   Cross-cutting issues -> environmental, social, religious
        groups; materiality of industry - specific issues
    –   Utilized EHS contacts

•   Positioning BMS for leadership
Listening to Stakeholders
                             Reputation
  • Impressions of individual companies are most shaped
    by:
                                              Brand Quality/
                   Corporate                    Reputation
                  Citizenship                        31%
                       43%

                                              Business
                                           Fundamentals
                                                  26%

 Environics International Ltd. Poll, with The Prince of Wales Business Leaders Forum
 and The Conference Board, 1999 (25,000 citizens in 23 countries)
Listening to Stakeholders
       Attract Investment Consistent with Values

       2.5
                                                2.2
         2

       1.5
                                 1.2
                                                                   $ Trillion
         1
                  0.6
       0.5

         0
                1995           1997           2003

Socially Responsible Investment Fund Growth - United States
                                                   Source: Social Investment Forum
Listening to Stakeholders
                    Rebuild Trust
  • "Overall, how much trust do you have in the honesty
    of executives of large business corporations?"

                            Great
                             Deal Good Amount
                        None 2%       9%
                         5%




          Very Little                  Just Some
             49%                          35%




                                  ABC News/Washington Post Poll, July 2002
    Environmental and Social
Responsibility Add Business Value
      Sustainability Drivers
• Financial
  – Reduce costs and liabilities
  – Attract socially responsible investors, buyers
  – Support company’s strategy
• Reputation
  – Recognition as industry leader
  – Greater dialogue on key issues
• Competitive
  – Attract and retain great employees
  – Expedite approval of new products
  – Improve quality and supply chain reliability
Sustainability
 Recognition in 2003



    Rated top environmental
    reporter by the Coalition of
    Environmentally Responsible
    Economies

    Added to the Calvert
    investment firm’s Social Index, a
    list of socially responsible
    companies
                  Sustainability
         Our Plan for Responsible Growth

“We also measure success in our commitment to building
stronger communities and a healthier world for all.”
                                                          Peter R. Dolan,
                                 May 4, 2004 Stockholder Meeting Remarks




            Sustainability 2010 Goals
               Values             Action
     Sustainability 2010 Goals

“[Our] 2010 goals will allow us to
maintain our leadership position in the
future. It is a challenge that I embrace
and I ask each of you to embrace it as
well.”*

                     Peter R. Dolan
                     President and Chief
                     Executive Officer


                       * Letter to senior executives - July 27, 2001
      Sustainability 2010 Goals


• Continuous improvement

• Leadership expectations

• Environmental stewardship
     Sustainability 2010 Goals
Continuous Improvement Highlights

• EHS effects analysis
  – identify the most significant
    EHS impacts and opportunities
    for improvement, by every
    facility and business operation
      Sustainability 2010 Goals
 Continuous Improvement Highlights
                     (continued)

• Environmental performance targets
  – reduce water usage, greenhouse gas emissions,
    energy use, wastewater, air emissions,
    hazardous waste, non-hazardous waste, and
    chemicals of high concern
    • normalized by sales
    • targets based on results of our EHS effects analysis
     Greenhouse Gases
            (As CO2 Equivalents)
                                Normalized

35
30

25
20

15

10
5
0
     2000        2001    2002      2010
       Energy Conservation
• Climate RESOLVE (Responsible
  Environmental Steps, Opportunities to
  Lead by Voluntary Efforts)
• Cogeneration
• Solar panel pilot project
• Building orientation
• Closing laboratory hoods
     Sustainability 2010 Goals
Continuous Improvement Highlights
                    (continued)

• Safety performance targets
  – drive down reportable incidents and days lost
    from work
    • 50% reduction in recordable and lost workday case
      rates
    • Maintain performance in top 25% of similar
      companies
      Sustainability 2010 Goals
 Continuous Improvement Highlights
                    (continued)

• Sustainable products
  promotion
  – promote green chemistry and
    inherent product and process safety
• EHS research addressing
  business issues
  – sponsored by BMS for early study of
    emerging areas of concern, such as
    pharmaceuticals in the environment
     Sustainability 2010 Goals
Continuous Improvement Highlights
                   (continued)
• Supply Chain partnership
  – promote EHS performance
    improvements among key
    suppliers
• Packaging Impacts
  – reduce product packaging and
    increase use of post-consumer
    recycled materials in packaging
     Sustainability 2010 Goals
Continuous Improvement Highlights
                    (continued)

• Sustainability awards
  – in partnership with our President’s
    Awards, to promote sustainability
    across the company
• Leadership development
  – program to enhance EHS
    integration throughout the
    company
    Sustainability 2010 Goals
Leadership Expectations Highlights
• Biotechnology development
  – support through sharing expertise on labeling,
    biosafety, and bioethics
• Community outreach
  – support within each facility to enhance
    communications with neighbors on EHS and
    sustainability topics
• Social policies and metrics
  – support to raise corporate awareness of
    emerging social issues
Listening to Stakeholders
Strategic Position on Global Issues                               Social

        Economic                                        •Employee motivation &
                                                        retention
•Corporate governance         Competitive               •Clinical trial practices
•Access to healthcare
                            Ethical          &          •Political influence
•Intellectual property
rights                        Sustainable               •Genetically modified
                                                        materials
•Advertising/ marketing
practices                                               •Security/data privacy

•Business model for third                  Environmental
world diseases
                            •Global climate change
                            •Product packaging & waste
                            •Drinking water scarcity
                            •Pharmaceuticals in the environment
                            •Diminishing biodiversity
      Sustainability 2010 Goals
Environmental Stewardship Highlights

• EHS research contributions
  – through the BMS Foundation and other funding
    sources, demonstrate commitment to expand
    society’s knowledge and understanding
  Puerto Rico Eco-regional Plan
• The Nature Conservancy
• Conservation by Design - ensure long-
  term survival:
  – native community types
  – viable native species
• Case study: Great Caribbean Basin
  – Map biodiversity
  – Select/design networks of conservation
    areas
  – Prioritize areas for biodiversity protection
      Sustainability 2010 Goals
Environmental Stewardship Highlights
                   (continued)

• Endangered species sponsorship
  – encourage each facility and business to help
    protect local endangered species and habitats
      Mayaguez, Puerto Rico
• Sea Turtles
• Department of Natural and Environmental
  Resources - Sea Turtles Program, Caribbean
  Center for Marine studies
         Syracuse, New York
• Chittenango Ovate Amber Snail
• Syracuse Zoo, Fish & Wildlife Service, NYS
  Department of Environmental Conservation
           Sao Paulo, Brazil
• Brazil Nut Tree

• Blue (Hyacinth) Macaw
              Indonesia

• Komodo Dragon
    Buenos Aires, Argentina


• Butia Yatay palm
    Wallingford, Connecticut
• Stiff or Prairie Goldenrod
 New Brunswick, New Jersey
• Yellow Giant Hyssop
    Hopewell, New Jersey
• Marsh Hawk
  Lawrenceville, New Jersey
• Cooper’s Hawk
    Plainsboro, New Jersey
• Bobolink
Land Preservation
    Pantanal National Park, Brazil

• One of the world’s largest
  freshwater wetland
  ecosystems
• Center for Ecosystem
  Survival at San Francisco
  State University
• Ecotropica
• Brazilian Institute for the
  Environment (IBAMA)
 Komodo Island National Park,
         Indonesia
• Among the richest marine diversity
  sites in the Indo-Pacific
  – Three islands
  – Numerous coral reefs
  – Mangroves
Komodo Island National Park,
        Indonesia
• Center for Ecosystem Survival
  at San Francisco State
  University
• Department of Forest Protection
  and Nature Conservation, of the
  Ministry of Forestry
      Carson Road Woods, New
              Jersey
• Woods host a wide
  variety of endangered
  and threatened
  species
• Washington Crossing
  Audubon Society
• Lawrence Township
  Conservation
  Foundation
   Calakmul Biosphere Reserve,
             Mexico

• Southern Yucatan Peninsula
• Maya Forest - largest contiguous tropical
  forest outside the Amazon Basin
• Center for Ecosystem Survival at San
  Francisco State University
• Pronatura, Mexican Commission for
  Natural Protected Areas
     Calakmul Biosphere Reserve,
               Mexico
• Home to:
  – 5 of Mexico’s 6 large cat
    species
  – 375 plant species found
    nowhere else
   Listening to Stakeholders
          Transparency...
• What are your issues?

• How’s your performance?

• What are your plans?
     Our Public Reporting on the
              Internet
• 1993 - First written public environmental report
• 1997 - First started on internet
         – Twice per year updating of content and metrics
• 1999 - First company to comply with draft Global
  Reporting Initiative (GRI) Guidelines
• 2001 - First sustainabiliy report; Company complies
  with final GRI Guidelines
• November 2002 - Company internet page complies
  with final 2002 GRI Guidelines
• June 2004 – Latest Update
               BMS Internet Site
For further information:

• Sustainability Website Update
   – http://www.bms.com/sustainability
         Recent BMS Activity

• Greener Hospitals Brochure
  – Partnering with value chain globally
  – Help health care facilities develop
    and implement effective
    environmental management systems




–http://www.bms.com/static/ehs/sideba/data/custom.html
         Current Challenges
• Broaden Understanding Company-wide
  – Concepts
  – Applications
  – Benefits
• Facilitate Further Integration
    Objective:
Seamless Integration
  GEMI Sustainable Development
            Planner
• Develop Sustainability Issues Platform
  – Communication of impacts
  – Foster cross-functional support
  – Impact strategic decision-making
• Update EHS Codes
  – Better tool to reflect new focus
Every step counts!
   Implementing Sustainability
• State activity on path to sustainability
• Government green procurement initiatives