Climate & Energy

Energy Management

Reducing our greenhouse gas (GHG) emissions is part of our corporate-wide commitment to improving the environment and increasing the efficiency of our operations. Abbott made a number of major advances, beginning with issuance of a detailed Climate Responsible Energy Policy, which provides guidance and goals to manage energy use and related emissions.

The Global Energy Management (GEM) team works with Abbott to monitor, evaluate and conserve total energy consumption globally while negotiating best-in-class price and delivery contracts and promoting the installation of financially beneficial energy conservation and alternative energy projects.

Through our myriad energy initiatives, we:

• Politically lobby for industrial energy initiatives
• Negotiate competitive energy contracts
• Implement financial hedges to reduce volatility
• Perform energy audits to identify opportunities
• Transfer best-in-class energy practices
• Communicate energy knowledge
• Identify and implement financially responsible energy capital projects
• Enhance global citizenship reputation through environmentally beneficial energy projects and practices

Climate Responsible Energy Policy

Raising the Bar

We announced a dramatic acceleration of our goal to reduce GHG emissions – from 10 percent by 2010 to 30 percent by 2011.

Going Carbon Neutral

We are the first and only Fortune 500 company to commit to going "carbon neutral" with our entire U.S. sales fleet of vehicles. Our 6,500-vehicle fleet represents approximately five percent of our overall global GHG emissions (12 percent of our U.S. GHG emissions). This commitment is equivalent to removing 12,000 cars from U.S. roadways. In 2008, our focus will be on our international fleet.

"We were happy to help Abbott take a hard look at its fleet and figure out how to improve efficiency, cut fuel use and offset greenhouse gas emissions – while saving money. This is green business strategy at its best. We urge other companies to follow Abbott's example."

—Gwen Ruta, Director of Corporate Partnerships, Environmental Defense

Chicago Climate Exchange

Abbott joined the Chicago Climate Exchange (CCX), the world's second largest carbon market and the only one that allows trading in all six GHGs. All members commit to a six percent absolute GHG reduction over four years. Members can achieve their commitment by either reducing emissions or purchasing offsets on the CCX market. We estimate our reductions will exceed the six percent commitment.

Working with Others

We respond annually to the Carbon Disclosure Project, publishing our GHG emissions data and information on the business risks and opportunities presented by climate change. We also participate in the U.S. EPA Climate Leaders program and the Business Roundtable Climate Resolve initiative.

Going Solar

We completed installation of a 500-kilowatt solar panel system at our vascular facility in Temecula, California. The 2,000 panels are expected to generate the amount of energy used annually by 100 average American homes, and will allow us to avoid 1.3 million pounds of CO₂ emissions.

Other milestones in energy management and use:

• Completed planning for a cogeneration plant at a new manufacturing site in Tlalpan, Mexico, to be installed in 2008. If approved, this project will likely yield lower GHG emissions.
• Facilitated a European Energy Workshop to communicate to our employees our Climate Responsible Energy Policy, as well as set objectives to achieve short- and long-term goals.

In 2008, we will:

• Partner with the U.S. Department of Energy (DOE) and Sustainable Energy Ireland (SEI) to conduct manufacturing energy assessments.
• Expand monthly Web-based worldwide energy data collection.
• Implement worldwide energy efficiency, conservation and alternative-energy projects, and convert from fuel oil to cleaner burning natural gas.

LEED at Abbott

We are committed to using LEED guidelines when planning or evaluating each construction project, whether it involves a new building or renovations to an existing building. A dedicated task force meets regularly to brainstorm potential projects and new processes aligned with the LEED system and other green building practices.