Greenhouse Gas Emissions
Our total greenhouse gas emissions have decreased approximately 8.7 percent absolute and increased by 1.5 percent when normalized by sales, from 2012 to 2014.
Our Sustainability 2015 Goal for greenhouse gas emissions calls for a 15 percent reduction of our total emissions (baseline year 2009). Performance on our Sustainability 2015 Goal versus the 2009 baseline year (excluding acquisitions - see footnote on Key Performance Indicators table), has resulted in a greenhouse gas emissions reduction of 14.7% through 2014. From 2009 to 2014, we have reduced our total annual greenhouse gas emissions by approximately 79,000 metric tons, which is equivalent to the annual greenhouse gas emissions of about 16,000 passenger vehicles, the carbon dioxide emissions from electricity use of nearly 11,800 homes over one year or from burning 8,860,000 gallons of gasoline, or the carbon sequestered annually by 27,000 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 energy.
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 CO2efrom purchased electricity, CO2e from global business air travel and United States/Canada sales fleet and CO2e from the use of sulfur hexaflourides for laboratory fume hood testing. We calculate greenhouse gas emissions from fuel use using emissions factors from U.S. EPA Mandatory Reporting Rule (40 CFR 98) – Industrial Sector, eGRID 2012: Emissions and Generated Resource Integrated Database U.S. EPA office for atmospheric programs (for U.S. operations) and the International Energy Agency (IEA) CO2 Emissions from Fuel Combustion: 2012 (for international operations). Business air travel and fleet emissions are calculated based on U.S. EPA Climate Leaders: Optional Emissions from Commuting, Business Travel and Product Transport (May 2008 EPA 430-R-08-006) factors for short, medium and long haul air travel segments. We report 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.
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 change as a result of regional climate changes, potentially resulting in shifting or new markets for medicines. Climate change may result in outbreak or spread of diseases, and possibly an urgent need to develop new medicines to address unmet needs.
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.).