Skip to:Energy Usage, Hazardous Materials, Environmental Events, Ergonomic Injuries, Motor Vehicle Collisions In 2008, Lilly established six new goals we intend to achieve by 2013 to reduce injuries and our environmental footprint. The new goals better reflect our progress on where we saw opportunities to significantly improve employee safety (for example, injury prevention) and reducing our environmental footprint (for example, reducing energy usage and greenhouse gas emissions). We continuously monitor our progress against those goals and report our efforts to senior management and the public. |
New HSE goals
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Energy Usage and Greenhouse Gas Emissions
Prior to 2008, Lilly had set a goal of reducing our energy intensity [normalized to sales] and greenhouse gas emissions intensity [normalized to sales] by one-third by 2010 [compared to a 2003 baseline]. We attained that goal two years early in 2008. Our achievement can be attributed to extensive efforts at our manufacturing sites and our corporate center to search for energy reduction opportunities and implement projects to reduce energy usage.
In 2008 we set a new energy and greenhouse gas reduction goal. Going forward, Lilly will not use an energy intensity goal normalized to sales, instead we have established a more aggressive goal based on energy used per square foot of facility space. We call this goal an “energy efficiency” or “energy density” goal. Using the year 2007 as a baseline, we aim to reduce energy usage per square foot of facility space by 15% by 2013.
While manufacturing pharmaceuticals is less energy-intensive than many other industrial processes, Lilly’s operations are relatively energy-intensive due to the nature of our processes and products. We use fermentation processes to produce several products. These processes use more energy and water, and generate more waste than many other pharmaceutical production techniques.
As a result, we are identifying opportunities to reduce our energy consumption based on a multipart strategy that includes:
- an energy policy
- an engineering standard for energy-efficient design
- grassroots site energy teams that identify energy reduction projects and initiatives
- an energy assessment process
- an Energy and Waste Reduction Fund to finance energy-related capital projects
Some of the successful projects include a co-generation facility at one manufacturing site, lighting retrofits, and installation of high-efficiency chiller systems. Through the end of 2008, approximately $18 million have been invested in projects since the creation of the fund with an average return rate of less than two years.
We track both direct and indirect GHG emissions from our operations. Direct emissions include those from manufacturing and non-manufacturing facilities, and from our distribution and sales transportation. Indirect emissions, which compose about 69 percent of our total GHG emissions, represent an estimate of the quantity of GHGs emitted by energy service providers for producing electricity, steam and chilled water on our behalf.
Because our GHG emissions are linked to energy usage, our progress towards meeting our energy reduction goal shapes our progress in meeting GHG emission reductions. If we achieve our new 15% energy density reduction goal, we will reduce CO2 emissions by nearly 340,000 metric tons per year. This is equivalent to removing 50,000 cars from the road.
Since April 2006, one of our manufacturing facilities in the United Kingdom has purchased electricity (to meet about 82 percent of the total site needs) from a renewable energy source that produces zero carbon emissions. The facility pays a small premium for this service. The other 18 percent of the site’s electricity needs is provided by an efficient onsite combined heat and power plant that runs primarily on natural gas.
Motor Vehicle Safety
Another area of concern is work-related injuries due to motor vehicle accidents. At Lilly, we are working to heighten awareness of motor vehicle safety. Lilly’s eight-element Lilly Motor Vehicle Safety (MVS) Program is the cornerstone for our improvement in the U.S. and other countries. Our goal is to attain a 50% reduction in collisions per million miles (CPMM) by 2013 compared with the baseline year of 2007 through implementation of motor vehicle safety programs in our global sales affiliates.
Over the past three years, most of Lilly’s MVS program emphasis has been with the top 10 sales and marketing organizations. During this time, two of the affiliates have reduced their CPMM by over 50% (e.g. Canada and Spain). However, these gains have been offset by a 28% increase within the US sales affiliate due to greater employee awareness of MVS and a consequent increase in collision reporting. This has resulted in an overall 2% reduction in the top 10 affiliate’s CPMM since 2005.
Our global fleet safety performance, however, has been relatively flat since 2005. In response, our Global Sales and Marketing organization is embarking on a new initiative called HSE Directions that expands the focus on injury and collision prevention to all affiliates world-wide. HSE Directions will emphasize expanded management commitment to MVS and behind-the-wheel training for employees.
