Emissions of Gases in Health Companies - Research Paper Example

Topic: Emissions of gases in Health Companies Introduction Emissions of gases is affecting climate negatively worldwide. It is happening in a big way due to industrial processes to produce products. The extent of such emissions has increased to the danger of affecting health of the people on our planet. Heath companies into the manufacturing of medicines also emit Greenhouse Gases (GHG) while researching, manufacturing, transporting and selling their products. Healthcare companies are meant to make the world healthier with their medicines; their responsibility is more than others in providing a clean environment. As per the World Health Organization, climate change due to emissions of gases will affect the weather conditions, flooding and change the pattern of infectious diseases all around the world particularly but not limited to developing countries. All inhabitants are stakeholders of healthier world and share the common responsibility to meet the emerging worldwide health challenges whether they are from industry, governments or public at large. Health companies need to reduce the emitting of Greenhouse gases (GHGs) according to global standards for saving energy and reducing GHGs, as established in 1996. At global level, some of the health companies like Pfizer have shown commitment to mitigate emission challenges by strategizing first to be followed by second generator GHG reduction. Global Reporting Initiative (GRI) is at the core of such corporate level health companies desiring to become corporate citizen through the global organization, the UN Global Contact (UNGC) in association with GRI. These organizations provide a standard platform which is accredited by a huge number of global companies belonging to different industry sectors (Pfizer CRR, 2009). Health companies need to report their emissions reducing initiatives as based on GRI Sustainability Reporting Guidelines (G3) on Global Compact’s annually required Communication on Progress (COP). Through the COP framework, UNGC member companies show their progress on reducing GHG initiatives. Through G3 guidelines, health companies can increase the standards of the COP. Health companies can enhance their GHG emissions level by enlarging the scope of reduction and reporting initiatives (Global Reporting Initiative, 2010). Greenhouse Gases: Commitments and Actions Health companies need to set an example to lead for others by making their clean environment and health initiatives open to be viewed for others to tackle climate change. They should exploit the opportunities coming in the business processes to reduce the emissions and set aims to boost such functions. Pfizer is one such leading example for health companies to follow the set goals and expressing the achievements for public to view through its major performance indicators (Pfizer CRR, 2009). Pfizer‘s goals for GHG and climate change include: To achieve the second generation GHG public goal of minimizing emissions by 20% on an absolute basis between 2008 and 2012 (baseline 2007); and To meet 35 percent of electricity needs by 2010 by employing clean energy technologies. The company’s clean energy goal is quite impressive to achieve by 2010 the projected 21.3% electricity from clean energy sources. It could not meet the target as some plants had to be stalled meant to function with cogeneration technology and lack the financial practicality of latest clean energy technologies. Health companies should proactively pursue such initiatives as Pfizer’s goal to use 35% of its energy needs from clean technology to go well with the business and environment concerns as well (Pfizer CRR, 2009). Pfizer has committed for carbon usage and climate change and has taken a number of steps in the year 2009 like reducing emissions from its 39,000 automobiles worldwide. It undertook initiatives for cutting employees’ business travel emissions, outside distributors and understanding the energy footprints of suppliers and products for use or disposal. It strived to fulfill the obligations under the UNGC “Caring for Climate: Business Leadership Platform”. It is very important to understand the financial limits of exploiting the chances of carbon restrained world. There could be functional challenges and business possibilities implicit in the worldwide changing climate that needs evaluation (Pfizer CRR, 2009). Environment Health & Safety Health companies have been more involved in issues like availability of certain medicines but stakeholders’ interest has risen to fulfill obligations over the environment, health and safety (EHS) practices. It should be appraised that the path to health and safety needs to pass through discovery, development and supply of medicines for keeping natural resources intact and creating a safe environment and safe workplace. In this regard, health companies need to follow a strategic and comprehensive approach to the environmental initiatives to construct a sustainable model. Companies need to actively participate in such international meets organized to know the importance of EHS causes and find sustainable solutions that save and increase energy efficiencies. All stakeholders, government, non-government, industry, academia, business associates and partners should proactively pursue and participate in awareness programs to update on technological know-how and best practices followed in conserving energy and reducing emissions (Pfizer CRR, 2009). Strategy & Analysis Health organizations are supposed to strategically match their organizations’ relationship in sustainability context for better and comprehensive reporting as per the UNGC guidelines and values based on principles 7, 8, and 9 specifically. Principle 7 is related to taking precautionary approach to environmental challenges. Principle 8 deals with taking initiative to encourage more responsibility to protect the environment. Principle 9 deals with providing support to and develop environment-friendly technologies (UNGC, 2007). Strategy and analysis should be made from the statements, as follows: 1.1 The senior most decision maker of the health company should explain the context of sustainability with the organization strategy. Statement should mention the complete, short, medium and long-term strategy to meet the primary environmental challenges, which include: i. Strategic preferences and main issues to be tackled in the short and medium term associated with sustainability and obedience to international standards and their relationship with company’s long term strategy and success; ii. Wider implications of macroeconomic and political factors impacting the company’s sustainability preferences; iii. Major happenings, feats accomplished and roadblocks faced in the reported time period; iv. Opinion over performance in the context of targets achieved or not achieved; v. Overview of the significant challenges and aims set for the long term as well as the approaching year; and vi. Other matters on the agenda of the company’s strategic approach (GRI, 2010). Like when we research Pfizer company website, its EHS stakeholder, Andrea Moffat, who is the senior director of corporate program, CERES, hints at the greater responsibility for being one of the largest companies to play a distinct role in leading the world towards sustainable economy. He has stressed the focus to shift for reducing toxins in water by working more vigorously in the direction of carbon reducing commitments of the company. Water scarcity and its deteriorating quality are going to be of critical importance to world population, particularly of emerging economies. That’s why greater stress has been made on developing a comprehensive water strategy by Mr. Moffat. A water strategy will help the company in knowing its water foot print and set aims to minimize the impact and plan for meeting new business challenges (Pfizer EHS, P. 4). 1.2 Explaining major impacts, challenges and opportunities. Health companies should report briefly the major risks, impacts and opportunities on sustainability and effects on stakeholders, their rights as specified by the government laws and global parameters. Consideration should be made of attainable aims in the context of a company’s stakeholders’ interests, which should include: i. Description of the major impacts on sustainability and related challenges and opportunities. If stakeholders’ rights are affected under the national laws, these with hopes on globally agreed standards should be explained; ii. A description of the approach to the preference order of these challenges and opportunities be made; iii. Major end-results of the progress in meeting the challenges and related performance in a given time period for not performing and over performing; and iv. A detailed report of the processes used to perform and changes made in the processes. Strategy and analysis under section two should dwell on sustainability trends, risks and opportunities on the long term chances and financial reporting of the company. Such information that is of importance to financial stakeholders or becomes important to them in future should be included in section two like: i. A detail of the most significant risks and opportunities from sustainability trends to the company; ii. Preference order of sustainability issues like risks and opportunities as per their application in the long term strategy, competitive ranking, qualitative and if possible quantitative financial indicators; iii. Tables summary on a) Targets, performance and analysis of the reported period; and b) Targets for the next reporting period with aims and goals for the coming 3-5 years on major risks and opportunities. Brief detail of regulatory mechanisms to manage the particular risks and opportunities, and finding other associated risks and opportunities (GRI, 2010). Key Performance Indicator of Pfizer (2005-2008) or Strategic Analysis Reputed health companies like Pfizer publish relevant information on compliance with baseline expectations on company goals, performance report, company statement and status on targeted goals in table format on environment, health and safety issues. For climate change, the first generation goal on GHG was to reduce emissions by 35% on relative basis. By 2007, the company could not go beyond meeting 43% goals. Additional 20% was met in 2007-08. The company statement attributed the performance on energy efficiency projects and facility closure for below expectation performance (Pfizer CRR, 2009). The second generation goal on GHG for climate change was to reduce 20% emissions during 2008-2012 on absolute basis from baseline year 2007. By the year 2008, 6% targets in energy consumption and 8% in GHG emissions were achieved. Performance was attributed to Global Energy Conservation Program (Pfizer CRR, 2009). Indicator on compliance with fleet emissions was set with the goal of reducing emissions 5% yearly. It was 6% realized in 2008, adding to overall better public goal. A statement was made stressing on the use of fuel cards, more hybrids and dual-fuel transport, and opting mid-size vehicles (Pfizer CRR, 2009). Clean energy goal for 2010 was set to use 35% electricity from clean energy sources for fulfilling global energy needs of the company. Performance was below the target with only 17% realized in 2008 and 21% projected in 2010.Deficiency of 14% in performance was attributed to closure of some plants and financial practicality of latest clean energy technologies, as goals were challenging (Pfizer CRR, 2009). The company’s KPI also provided detailed account in table form and graphs on Volatile Organic Compound (VOC) emissions, Ozone Depletion Potential (ODP) emissions, Ozone Depletion Compounds (ODC), Waste Reduction, Water Footprint, Injury and Illness performance that included total injury and illness rate, lost-time injury and illness rate, and Fleet Safety indicators with goals, performance, statement and status given (Pfizer CRR, 2009). Summary & Conclusion Health companies worldwide can raise the bar on Greenhouse Gas emissions as per the G3 guidelines of the Global Reporting Initiative likewise companies of other industry sectors. It is high time to control GHG emissions through the association of the UNGC and GRI. These international organizations are showing the way to lead by example as one of the world leading health companies—Pfizer – has been setting an example for others to follow in the matter of compliance with climate change, clean energy, fleet emissions, VOC, ODP, ODC, waste reduction, water footprint, injury and illness and fleet safety by setting goals, making performance appraisal and issuing statement with goal status, which in some indicators is achieved, in some partially achieved and in some others could not be achieved. Role of world organizations like UNGC in this context is very important to provide a reporting framework in strategy making and analysis of related companies in explaining major impacts, challenges and opportunities in climate change reporting through reporting guidelines and communication on progress reporting. Health companies worldwide should learn from the experiences of leading companies on their sustainability programs, how have they been spending time and resources in making the global environment free from the impact of GHGs, reducing their carbon footprint, developing energy from clean technologies, thus contributing through their share of responsibilities by taking steps to reduce the level of emissions. References: 2009 Corporate Responsibility Report. “Environment, health & safety.” Available from www.pfizer.com/responsibility. Internet; accessed 9 April 2010. Global Reporting Initiative. “Making the Connection: the GRI Guidelines and the UNGC Communication on Progress.” Available from www.unglobalcompact.org. Internet; accessed 9 April 2010. Global Reporting Initiative. “UNGC & GRI: The UNGC-GRI value platform.” Available from http://www.globalreporting.org/CurrentPriorities/UNGC/. Internet; accessed 9 April 2010. Global Reporting Initiative. “Strategy and analysis.” Available from http://www.globalreporting.org/ReportingFramework/G3Online/Profile/. Internet; accessed 9 April 2010. Read More