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Baxter International Inc. (USA) established the following environmental goals in 1997 for 2005:…

Baxter International Inc. (USA) established the following environmental goals in 1997 for 2005: global targets to cut packaging, energy consumption, toxic emissions to the air and the generation of hazardous and non-hazardous wastes. Relevant estimates are provided in Table 6.15.

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Reduction goal*%

Base Year

Savings+

Reduce air toxic emissions

80

1996

4

Reduce generation of hazardous and regulated waste

35

1996

3

Reduce generation of non-hazardous waste

35

1996

25

Improve energy efficiency

10

1996

13

Reduce packaging materials

20

1995

35

  • Per unit of production

† Estimated annual savings and cost avoidance in 2005 were the goal to be achieved (in $ millions)

a What are the total estimated annual savings and cost avoidance for Baxter International from environmental improvements in 2005?

b Are these savings driven by commercial or environmental management considerations? Discuss.

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