Environmental Health and Safety Sustainability Performance Reports
Allergan has been tracking sustainability performance for several years and made significant progress toward improving our performance. Below is a summary of five key sustainability performance indicators. Details on additional indicators are included in our Sustainability Performance Summary Table.
Safety Performance
Allergan's injury and illness incident frequency rate has dropped steadily since 1991. The projected 2008 injury and illness frequency rate is expected to be 0.90 normalized to 200,000 hours worked. Allergan's goal during the period is to reduce and maintain the incident rate to less than 1.00. In order to maintain this extremely low frequency rate, Allergan expanded programs in 2005 and 2006 to include behavior-based safety (Safe Start Program), safety events, detailed risk assessments, improved training, and metrics. These programs have helped Allergan maintain the high level of performance in the safety area.
Hazardous Waste
The hazardous waste reduction performance projected in 2008 versus 2007 is 5 percent against a reduction goal of 5 percent as normalized to production output. This reduction will be accomplished even with the newly acquired Allergan Medical facilities. The primary reason for the reduction in hazardous waste has been reformulation of products containing hazardous materials, such as thimerosal, as well as the concerted effort not to design new products or processes with hazardous waste-forming materials in the formulation.
Recycling Trend
Allergan is expected to increase its recycling rate from 29 percent in 1995 to a projected 67 percent in 2008. The goal in 2008 is to maintain the recycling rate at greater than 50 percent. The absolute quantity of recycled materials is projected to be greater in 2008 versus 2007 by 11 percent. Recycling rate is derived from the total recycled materials quantity divided by the total nonhazardous waste generated including waste going to offsite disposal and waste being recycled.
Energy Consumption Trend
Allergan began a decrease in electrical energy consumption in 2000 due to upgrading manufacturing equipment, energy efficiency in renovations and new buildings, and consolidation of facilities. This trend in reduction had reversed between 2002 and 2005 due to major expansions at all major locations. The acquisition of Inamed Corporation in 2006, Laboratoire Corneal and EndoArt SA in 2007 also added a new base to the utility and waste aspects of Allergan performance. In 2008 versus 2007, total energy consumption is projected to reduce by 2% on an absolute basis and by 6% on a normalized to square footage basis. Allergan has used tools such as Lean Six Sigma, DMAIC approach, metering and sub-metering, and Energy Star performance indicators to ensure that energy efficiency is maintained. The new locations have begun implementing energy efficiency opportunities. The results of these projects are beginning to manifest themselves in 2008.
Greenhouse Gas Emissions
Energy efficiency projects implemented in 2007 and 2008 are projected to have caused the overall greenhouse gas (GHG) emissions in 2008 to decrease by 1 percent versus 2007. When GHG emissions are normalized to sales, a 15% reduction is projected for 2008 versus 2007. These reductions while Allergan continues to grow demonstrate the effectiveness of its sustainability management programs.
