are
developed locally, ensuring that the response to any incident occurs in a planned
manner. In the second year after the formal launch
of a Group-wide business continuity management program, positive results have
been achieved in preventive activities such as establishing a framework for building
resilience to business disruption and interruption. Risk reduction and operating
strategies have been defined widely throughout the Group. Further businesscontinuity
activities are planned. Novartis Emergency Management
(NEM) is an established, worldwide system developed to protect Novartis associates,
the public and the environment in case of accidents or other emergency situations.
Training programs and drills are conducted to keep preparedness of NEM teams,
and the organization as a whole, at a high level. A new set of targets measuring
NEM readiness and training was introduced in 2005. Reports from Divisions and
Business Units also confirm the readiness of the global NEM system.
Novartis paid a total of USD 5 200 in fines for HSE violations during 2005.
Hexal AG and Eon Labs Inc. – acquired by Novartis in 2005 – have been integrated
into the Sandoz Division. Though the acquisitions of Hexal and Eon Labs were only
completed in June and July, respectively, a detailed account of their full-year
HSE performance is presented in the table on page 71.
Both companies are now integrated with the Group-wide HSE performance-management
and data-collection system. HSE targets have been established for 2006. |
| HISTORICAL
LANDFILLS As a legacy from chemical operations of predecessor
companies, Novartis shares a number of confirmed or potential environmental liabilities
from contaminated sites and landfills that were created in various countries.
Novartis has set aside the financial reserves and established the appropriate
structures to manage these liabilities proactively and keep related environmental
impacts to a minimum. In cooperation with third parties
who may also have responsibility at certain sites, and the responsible authorities,
surveillance programs have been installed and technical solutions are being prepared
and implemented, as needed. For example, Novartis
jointly with other Swiss companies reached an agreement with local authorities
in November 2005 regarding the Bonfol hazardous-waste landfill in Switzerland,
which operated from 1961 through 1976. Under the agreement, the landfill will
be excavated and the contents incinerated.
ENERGY
AND CLIMATE The consumption of energy – and in particular
the use of fossil fuels – is directly related to greenhouse gas (GHG) emissions
and to potential adverse effects on the global climate. Moreover, it is clear
that fossil energy sources are limited and their availability increasingly less
secure. With energy also being an increasing cost factor, energy efficiency has
become an important driver for cost reduction. Even though the pharmaceutical
industry is not an energy-intensive sector, management of energy usage and related
greenhouse gas emissions is important for the long-term success of Novartis. |
| With
the Kyoto Protocol, a large number of industrialized countries have – for the
first time – addressed the global issue of everincreasing GHG emissions. These
countries are currently implementing policies and instruments to reach their Kyoto
targets. Governments, however, can only reach these
targets with the engagement of major companies. To this end, Novartis made a voluntary
commitment to reduce global direct GHG emissions of CO2 to the same level prescribed
in the Kyoto Protocol: i.e. 5% below the 1990 level for the period 2008–12.
So far, Novartis has been successful in holding direct GHG emissions in check.
Extensive work at many sites has resulted in significant emission reductions and
energy efficiency improvements. Still, increased efforts and investments in more
efficient energy technology and renewable resources will be needed to continue
on this path in the coming years. To support the energy
efficiency strategy, Novartis has approved a revised investment policy for capital
investments associated with energy savings. In addition, an energy efficiency/renewable
energy challenge has become a mandatory part of all major projects.
Many such projects have already been identified and rewarded through the Novartis
Energy Excellence Awards. The annual award program recognizes the projects with
the best energy performance proposed by Novartis teams worldwide.
To reach the Corporate CO2 target, behavior that fosters energy efficiency will
become an important complement to further progress toward technical solutions. |
|
