Our total greenhouse gas emissions have decreased approximately 3.1 percent, or decreased 14.4 percent when normalized by sales, from 2009 to 2011.

From 2009 to 2011, we have reduced our total annual greenhouse gas emissions by approximately 19,000 metric tons which is equivalent to the annual greenhouse gas emissions of about 3,600 passenger vehicles, the carbon dioxide emissions from electricity use of nearly 2,300 homes over one year, or the carbon sequestered annually by 4,000 hectares of pine or fir forests (based on U.S. EPA’s Greenhouse Gas Equivalencies Calculator).

Through our Sustainability 2015 Goals and our corporate greenhouse gas management directive, we 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 Munich, Germany office building is heated 100% by renewable geothermal sources of energy.

Our Sustainability 2015 Goal for greenhouse gas emissions calls for a 15 percent reduction of our total emissions (baseline year 2009). We will continue to reduce our greenhouse gas emissions, implement cost-effective energy conservation projects and consider use of new or emerging technologies.

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 U.S. EPA AP42, 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. Business air travel is calculated based on U.S. EPA factors for short, medium and long haul air travel segments. We participate in reporting our emissions through the Carbon Disclosure Project.

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.

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.).