Internal Programs

EHS Assessments

Abbott's Global EHS audit function systematically evaluates our EHS-related performance and compliance status. These periodic assessments serve several purposes, including identifying significant risks to employees, the environment and the company; fostering continuous improvement; developing staff expertise; and promoting knowledge transfer. Abbott facilities are typically audited once every 36 months to assess compliance with regulatory and internal requirements. If noncompliant situations are found, audited facilities are responsible for developing and implementing action plans, which are tracked through completion. In 2006, Abbott completed 21 EHS facility audits around the world.

Property Remediation

Under the Comprehensive Environmental Response, Compensation, and Liability Act, commonly known as Superfund, we have been identified as one of many potentially responsible parties in investigations at 13 locations in the United States, none of which are owned or operated by Abbott, for releases of materials into the environment. At four of these locations, there has been no involvement on the part of Abbott, and we believe that we have no liability at those locations. We also are engaged in remediation at five other locations, some of which are owned by Abbott, in cooperation with the U.S. Environmental Protection Agency or similar agencies. While it is not feasible to predict with certainty the final costs related to these investigations and remedial activities, we believe that such costs should not have a materially adverse effect on our financial position, cash flows or operations.

Waste Management

All vendors responsible for the management of Abbott-generated waste are expected to meet minimum requirements in areas such as compliance, financial assurance, inventory control/record keeping, facility design/operating conditions and permission, among others. Vendors who do not meet these standards are not permitted to do business with our company. Substandard waste management firms are identified through the implementation of Abbott's waste vendor assessment program. This includes periodic onsite evaluations and documentation reviews to help ensure that only appropriately qualified and responsible vendors are permitted to manage Abbott waste. Our approach helps us to quickly identify emerging issues and resolve problems in a timely fashion.

Managing Potentially Hazardous Materials

Abbott's Process Safety Management Program is aimed at preventing the consequences of incidents involving hazardous materials used in our manufacturing processes. In 2006, we refined our long-range plan to help ensure consistent implementation of the systems necessary for process-safety in each Abbott division. We conducted more than 80 process hazard analyses at our sites around the world. Additionally, communication between our sites has improved through the use of online training, working committees to exchange ideas and the deployment of technical guidelines. These initiatives will continue into 2007, providing Abbott personnel with the information needed to safely operate and maintain our manufacturing processes.

Green Chemistry

Our Green Chemistry program seeks to eliminate or reduce the amount and number of toxic substances used in the development and manufacturing of pharmaceuticals. In 2007, a team of scientists was identified to facilitate the growth of the Green Chemistry program. The team created a system that will allow the Green Chemistry metrics to be included and tracked when a compound enters the development process and will enable us to identify efficiencies and opportunities to reduce environmental impact.

In 2008, the team will be expanded to represent more areas of Global Pharmaceutical Research and Development.