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 Trend
Allergan’s injury and illness frequency rate has dropped steadily since 1991. In 2008, Allergan’s injury and illness frequency rate was 0.91 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), Kaizen safety events, detailed risk assessments, improved training, and metrics. These programs have helped Allergan maintain the high level of performance in the safety area.
Allergan has a very low Days Away from work-Restricted duty-Transferred duty (DART) case rate of 0.59 normalized to 200,000 hours worked. Allergan continues to work with injured employees to return to work as soon as possible.
Climate Change Performance Trend
The 2008 projected overall GHG profile for Allergan is presented in the following figure. GHG emissions decreased by 2% vs. 2007 even with the addition of the new facility acquisitions. These acquisitions have significantly changed Allergan’s carbon footprint on an absolute basis. Allergan would have been at pre 1998 levels if the recent acquisitions were not included. Projects to reduce energy consumption and consequently Allergan’s GHG emissions at these new facilities are already underway at several of the new facilities.
This trend is expected to continue into the future. Allergan continues to plan to meet the planning period goal of reducing GHG emissions by 5% using 2005 as the baseline year.
On a normalized to sales basis, the GHG emissions decreased by 10% in 2008 vs. 2007 and 37% in 2008 vs. 2005. The effect of the new facilities when normalized to sales demonstrates Allergan’s success at GHG emissions reduction.
Energy Consumption Trend
Allergan’s total energy consumption decreased by 2% in 2008 versus 2007. Allergan is implementing projects in order to reduce the total energy consumption by 5% by 2010 per our strategic goals. Allergan is currently consuming 2% more energy than in 2005. The impacts of the acquisitions are demonstrating why this effort is so critical.
Allergan has seen generally a decline in total energy consumption on a per square meter basis since 2000. This trend demonstrates Allergan’s effective energy program. The reduction in 2008 versus 2007 was approximately 6% on a per square footage basis. Using 2000 as a baseline, the decrease was 20% in 2008. When energy consumption is normalized per sales, in 2008 a decrease of 11% in energy consumption occurred versus 2007. The normalized trend demonstrates Allergan’s commitment and results regarding energy conservation and management.
Hazardous Waste Generation Trend
On an absolute basis, the hazardous waste increased by 149% in 2008. The primary reason for the increase in hazardous waste was due to the inclusion of Allergan Medical in France and the startup of the new Allergan Medical facility in Costa Rica. The increase can also partly be attributed to the increase in quality assurance testing requirements by regulatory agencies such as the US FDA and EMEA. Allergan has developed plans for reducing these wastes to the greatest extent feasible and expect to meet the five year strategic goal of 10% reduction by 2010 vs. 2005.
The hazardous waste generation is also normalized to Allergan sales for purposes of showing efficiencies. These normalized measures demonstrate that Allergan continues to become more efficient in its R&D and manufacturing operations.
Recycling Trend
Allergan increased its recycling rate from 29% in 1995 to 69% in 2008. The goal in 2008 was to increase the recycling rate to greater than 60%. The absolute quantity of recycled materials was greater in 2008 versus 2007 by 18%. 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.
