CORPORATE CITIZENSHIP

HEALTH, SAFETY AND ENVIRONMENT

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Moreover, along with in-house energy efficiency programs, Novartis is exploring possible direct investments to fulfill the company’s CO2 commitment. Options under consideration include emission reduction and development projects under the Kyoto Clean Development Mechanism scheme – as well as long-term reforestation projects removing CO2 from the atmosphere.

ENERGY USE AND CO2 EMISSIONS
Novartis had set a Group-wide target of improving energy efficiency by 6% between 2003 and 2006. By 2005, however, Energy use had improved by a Groupwide average of 10%, reaching the target a year ahead of schedule.
The table below shows trends in energy use and global direct CO2 emissions

(Scope 1) relative to sales growth – highlighting reductions achieved in both energy and carbon dioxide intensities.

HEALTH OF ASSOCIATES
We strive to provide our associates with the safest possible workplace and to offer programs that promote and improve their health and well-being. Through state-ofthe- art health protection initiatives, we identify and aim to reduce injuries and occupational illnesses that could arise out of the workplace as a result of exposure to physical, chemical, biological or ergonomic factors. In addition, Novartis has implemented prevention-oriented health promotion activities that expand the view of occupational health to include environmental, behavioral, and lifestyle factors outside the workplace. A variety of initiatives and programs are offered to maintain the health of our associates, while respecting personal views and privacy. Either a full-time or a part-time occupational medical service is available to associates, depending on the size and type of site operations of their employer.
During 2006, Group functions Occupational Safety, Occupational Medicine and Human Resources will integrate their existing health promotion programs to implement health and safety policies more effectively at local companies and sites worldwide.

LOST TIME ACCIDENT RATE
Reducing accidents is a top priority for Novartis. We have instituted training programs for associates and each Business Unit continues to set targets for further reductions of the Lost Time Accident Rate (LTAR).
Novartis reports work-related injuries or illnesses that have occurred during the year of reporting according to local legal requirements. LTAR is considered a benchmark indicator, enabling direct comparison of performance between companies and countries.



LTAR IN 2005 AND TRENDS
The Group-wide LTAR declined to 0.44 last year from 0.48 in 2004. A mid-term target of 0.2 by 2010 has been established for the existing business.
As the LTAR has declined, leading to steadily lower targets, it has become necessary to identify new measures to further decrease the risk of occupational accidents. Studies have shown that the behavior of people at the workplace – and the way technical and administrative controls are applied – are as important as engineering controls.
Achieving an accident rate which is as close to zero as possible requires that associates at all times not only care for their own safety, but also for the safety of their colleagues. Safe behavior is not a one-off program but the ongoing result of a cultural change that affects every person in the company. We are committed to a behavior-
 

NOVARTIS GROUP BUSINESS REVIEW 2005