Greenhouse Gas Emissions
*2007 data includes U.S. and Canada; prior years are for U.S. only
Our direct greenhouse gas emissions from operations have decreased approximately 14 percent, or 24 percent when normalized by sales, from 2007 to 2008. Indirect emissions from purchased electricity have decreased 15 percent absolute, and decreased 25 percent when normalized by sales over the same time period.
From 2006 to 2008, we have reduced our total annual greenhouse gas emissions by approximately 169,000 tonnes—which is equivalent to the annual greenhouse gas emissions of more then 30,000 passenger vehicles, the carbon dioxide emissions from electricity use of more than 23,000 homes over one year, or the carbon sequestered annually by more than 15,000 hectares of pine or fir forests (based on U.S. EPA’s Greenhouse Gas Equivalencies Calculator).
Through our Sustainability 2010 Goals and our corporate greenhouse gas management directive, we are committed to making progress in reducing greenhouse gas emissions from our operations. Bristol-Myers Squibb supports voluntary reporting of greenhouse gas emissions, funds energy efficiency and greenhouse gas reduction projects, uses high efficiency and innovative technologies, selects fleet vehicles to reduce fleet emissions and voluntarily participates in multi-stakeholder initiatives.
Our Sustainability 2010 Goal for greenhouse gas emissions calls for a 10 percent reduction, normalized by sales, of our direct and indirect emissions (baseline year 2001). We exceeded this goal in 2008, achieving a 39 percent reduction since 2001. We will continue to reduce our greenhouse gas emissions, implement cost-effective energy conservation projects and make use of new or emerging technologies, such as solar photovoltaics.
Bristol-Myers Squibb reports greenhouse gas emissions in the form of carbon dioxide (CO2) equivalents. This includes direct CO2 from fuels used and other greenhouse gases from our operations, indirect CO2 from purchased electricity, on-site waste treatment, and other sources such as fermentation. We calculate greenhouse gas emissions from fuel use using emissions factors from eGRID: Emissions and Generated Resource Integrated Database U.S. EPA office for atmospheric programs (for U.S. operations) as well as the GHG Protocol and International Energy Agency (for international operations). Each facility calculates its own emissions, which reflect site-specific emissions controls, the type of fuels used and other factors. We participate in reporting our emissions through the Carbon Disclosure Project.
Risks and Opportunities Associated with Climate Change
Our enterprise risk management process identifies, quantifies and addresses the risks facing the company. Climate change poses potential commercial risks for our company and the pharmaceutical industry in general. Bristol-Myers Squibb has commercial operations worldwide, exposing us to diverse climates and regulatory environments. Contingency plans are in place to mitigate potential risks associated with operating globally, including supply chain, weather patterns, regulations, and energy costs.
A GHG Financial Mechanisms Strategy Team is currently developing tools for use throughout the company that consider life cycle costing, tax rebate impacts, project risk, cost of carbon, financial incentives, regulatory impacts, energy escalation and environmental goals. In addition, assessment of financial and business implications is included in the capital planning process.
Our long-term ability to operate and provide patients with the medicines they need is at risk without reliable sources of energy and clean water. We have therefore identified these as key sustainability issues for our company and have implemented programs to maximize our efficient use of these resources. The ability of our global operations to manage energy efficiently, reduce operating costs and GHG emissions, leverage innovative technologies and quickly adapt to changing physical conditions resulting from climate change may produce sources of competitive advantage.
Health care needs may also increase as a result of climatic changes. This may place more pressure on increasing the development of medicines, thus resulting in larger markets and increased sales in specific therapeutic areas.
We continue to closely monitor regulatory developments in the U.S. and abroad. We anticipate continued volatility and potential increases in the cost of energy commodities. In the EU, our operations have been, and we expect will continue to be, directly impacted by various elements of the Kyoto Protocol and Annex B country-specific national allocation plans (e.g., emission allocations, taxes, and regulatory standards, etc.).