ENVIRONMENTAL, HEALTH &...

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Edwards Lifesciences LLC One Edwards Way Irvine, CA USA 92614 Phone: 949.250.2500 Fax: 949.250.2525 www.edwards.com (Unaudited Report. For General Internal Use Only) ENVIRONMENTAL, HEALTH & SAFETY ANNUAL PERFORMANCE REPORT 2014 EHS POLICY Edwards will provide a safe and healthy workplace, promote environmental excellence in our operations and communities and participate in the EHS programs of our customers and stakeholders. Edwards will comply with relevant government regulations, medical device industry standards and other requirements to which the company subscribes. Edwards’ Anasco, Puerto Rico manufacturing facility was awarded with both ISO 14001 and OHSAS 18001 accreditations in 2014 for EHS Management Systems excellence. Version May 13, 2015

Transcript of ENVIRONMENTAL, HEALTH &...

Page 1: ENVIRONMENTAL, HEALTH & SAFETYht.edwards.com/scin/edwards/sitecollectionimages/common/2013ehsreport.pdf · Edwards has established performance targets in the areas of compliance,

Edwards Lifesciences LLC One Edwards Way Irvine, CA USA 92614

Phone: 949.250.2500 Fax: 949.250.2525 www.edwards.com (Unaudited Report. For General Internal Use Only)

ENVIRONMENTAL, HEALTH & SAFETY ANNUAL PERFORMANCE REPORT

2014

EHS POLICY Edwards will provide a safe and healthy workplace, promote environmental excellence in our operations and communities and participate in the EHS programs of our customers and stakeholders. Edwards will comply with relevant government regulations, medical device industry standards and

other requirements to which the company subscribes.

Edwards’ Anasco, Puerto Rico manufacturing facility was awarded with both ISO 14001 and OHSAS 18001 accreditations

in 2014 for EHS Management Systems excellence.

Version May 13, 2015

Page 2: ENVIRONMENTAL, HEALTH & SAFETYht.edwards.com/scin/edwards/sitecollectionimages/common/2013ehsreport.pdf · Edwards has established performance targets in the areas of compliance,

Edwards Lifesciences LLC One Edwards Way Irvine, CA USA 92614

Phone: 949.250.2500 Fax: 949.250.2525 www.edwards.com (Unaudited Report. For General Internal Use Only)

Introduction Year 2014 marks the fourth year of Edwards’ 2011-2015 EHS Five-Year Plan. The EHS Plan reinforces Edwards’ commitment to maintaining compliance, keeping employees safe, preventing injuries, preventing pollution and continuously improving its EHS program. Edwards Lifesciences tracks and monitors EHS performance related to the activities of its employees, manufacturing facilities, regional offices and customer relationships. Specific performance criteria have been adopted by comparing medical and non-medical industry benchmarks with Edwards’ own EHS-related aspects, hazards and considerations. In 2014, Edwards launched a much stronger alignment of its manufacturing site EHS programs with globally recognized ISO 14001 environmental and OHSAS 18001 occupational health and safety management system standards. This report has been completed in order to communicate Edwards’ EHS performance to its customers, stakeholders and other interested parties. It specifically reflects activities and results for 2014 from the following sources:

Manufacturing Facilities Sales & Regional Offices

Irvine, California USA

Draper, Utah Latin America

Añasco, Puerto Rico Europe / Middle East / Africa

Haina, Dominican Republic Asia / South Pacific

Horw, Switzerland Japan

Singapore Canada

Please refer to each of the following sections for specific performance results and discussion. 1.0 EHS Compliance & Risk 2.0 Occupational Health & Safety Performance 3.0 Environmental Manufacturing Performance 4.0 Environmental Packaging Performance 5.0 Irvine Corporate EHS Programs

Results

Edwards has established performance targets in the areas of compliance, occupational health and safety and environmental performance. Progress toward these targets is contained in the table below. Environmental Performance is based on a continuously improving five-year trend using 2010 as the baseline year.

Compliance

Inspections No willful, or negligible, violations were identified by government agencies

ISO 14001 Achieved certification by both Anasco and Draper manufacturing facilities

OHSAS 18001 Achieved certification by Anasco

Occupational Health & Safety

Recordable Incident Rate Achieved 1.28

Lost Time Incident Rate Achieved 0.32

Environmental Performance (baseline 2010, normalized by revenue)

Hazardous Waste Achieved reduction of 33%

Solid / NonHaz Waste Achieved reduction of 31%

Recycling Rate Achieved 37% rate for recycling of all hazardous and solid waste

Electricity Usage Achieved 20% reduction

Greenhouse Gases Achieved 21% reduction for Scope 1 and Scope 2 emissions

Water Consumption 0% change

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Edwards Lifesciences LLC One Edwards Way Irvine, CA USA 92614

Phone: 949.250.2500 Fax: 949.250.2525 www.edwards.com (Unaudited Report. For General Internal Use Only)

1.0 EHS COMPLIANCE & RISK

Edwards is committed to complying with all relevant government regulations, medical device industry standards and other requirements to which the company subscribes. This commitment is achieved by implementing a five-tier approach to meeting Edwards’ compliance due diligence commitments, as follows:

1. Government Inspections: Locations are responsible for understanding all applicable government

requirements related to EHS standards. Government agency inspections are reported to Corporate EHS and monitored and tracked for effective closure of any identified findings or recommendations.

2. Third-Party Audits: Every three years, or as determined by risk, each location is audited by an

outside EHS professional to identify compliance to regulations, corporate standards and overall management of higher risks which may be apparent. Audit reports are provided to Corporate EHS, reported to management and monitored and tracked for effective closure of identified findings.

- Third-Party audits are also conducted to assess and certify locations for ISO 14001 and

OSHAS 18001 for conformance to EHS Management System standards.

3. Corporate EHS Audits: Annually, or as determined by risk, each location is assessed for

conformance to Corporate EHS standards or management of higher risks which may be apparent. Assessment reports are provided to management and monitored and tracked for effective closure of identified gaps in conformance.

4. Internal EHS Inspections: Each location is responsible for conducting its own EHS self

assessments based on internal audit protocols applicable to the location.

5. Facility Due Diligence: Edwards implements a corporate due diligence process for evaluating

EHS risks and requirements for business acquisitions, divestitures and property transactions. Included are third-party inspections conducted by FM Global, Edwards’ risk management partner, to monitor facility risks and management prevention, including those related to contractor management, fires, earthquakes, chemical spills, hurricanes and similar incidents and events.

It is Edwards’ internal policy to close all regulatory findings within 60 days and all nonregulatory findings within 90 days. Discrepancies are reported to higher management levels as appropriate.

Key items for 2014

There were no EHS-related serious, willful or significant violations or fines issued in 2014 by any EHS government agency.

There were no significant EHS due diligence concerns for significant expansions, acquisitions and divestitures.

All manufacturing locations retained the FM Global status of “Highly Protected Risk” (HPR) with regards to property risk management, preparedness and prevention. This includes manufacturing locations in Switzerland, USA, Singapore, Puerto Rico and the Dominican Republic.

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Edwards Lifesciences LLC One Edwards Way Irvine, CA USA 92614

Phone: 949.250.2500 Fax: 949.250.2525 www.edwards.com (Unaudited Report. For General Internal Use Only)

Government Inspection Results: There were a total of 32 EHS-related government inspections conducted of Edwards’ manufacturing facilities in 2014. Categories of inspections included wastewater discharge, stormwater, hazardous waste, air emissions, explosive materials, employee health, fire protection and local county business practices. There were no serious violations or fines issued by the applicable agencies.

ISO 14001 & OSHAS 18001 Certifications achieved in 2014: Anasco:

- Achieved ISO 14001 Accreditation for Environmental Management Systems - Achieved OSHAS 18001 Accreditation for Occupational Health and Safety Management

Systems Draper:

- Achieved ISO 14001 Accreditation for Environmental Management Systems Edwards has also incorporated ISO 14001 and OHSAS 18001 management system standards into its corporate EHS auditing program for locations which are not audited by an outside third party.

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Edwards Lifesciences LLC One Edwards Way Irvine, CA USA 92614

Phone: 949.250.2500 Fax: 949.250.2525 www.edwards.com (Unaudited Report. For General Internal Use Only)

2.0 OCCUPATIONAL HEALTH & SAFETY PERFORMANCE

Edwards Lifesciences is committed to enhancing the well-being and health of its employees and their families and promoting goodwill in the communities in which it operates. Employee health and well-being is a primary concern with the focus on prevention, early intervention and medical management. Edwards ensures employees who are injured on the job are provided with appropriate medical care to help them recover and return to work in a healthy and productive matter. Just as important, Edwards also focuses its efforts on workplace design, early intervention and the overall prevention of injuries and illnesses before they become a concern. Edwards’ safety performance is measured by reporting Occupational Injuries and Illnesses. These metrics include all Edwards’ employees globally, including those located at manufacturing facilities, regional offices and salesforce networks. Work-related injury and illness rates have been consistently favorable when compared to its Medical Device Industry Benchmarks. In 2014, Edwards did not experience any catastrophic or significant events. By addressing injury risks aggressively and proactively, Edwards has been able to keep its injury rate competitive within its industry.

Edwards’ Strategies for the Prevention of Injuries and Illnesses

Prevention: Prevention of potential health concerns is addressed through education and comprehensive

benefit programs provided for Edwards’ employees and their families. Programs vary at Edwards’ facilities, but typically include elements such as on-site seminars and literature distribution to help identify leading health risk factors such as hypertension, diabetes and heart disease. Edwards also provides stress reduction activities, company sponsored flu shots and healthy nutritional services. Additionally, prevention is promoted through on-site fitness centers, heart monitoring machines, walking clubs, health profiling, cancer screenings, tobacco-free campuses, employee stretch programs, intracompany sports and weight loss programs. Early Intervention: Early intervention of potential health concerns of employees is accomplished through

on-site screening for hypertension, breast cancer, cholesterol and fitness levels. Employee health benefits also promote the use of a variety of medical well-care options. Medical Management: For higher levels of health concern, Edwards provides employees with medical

management programs by providing on-site nursing, ready access to doctor-patient communications, encouraging early return-to-work programs, ensuring proper medical providers are utilized and coordinating with insurance carriers or government agencies to facilitate the proper care of employees. Community: Employees at Edwards’ facilities contribute to both the environmental and human health of its

communities through locally organized outreach events. These generally include such programs as beach and park cleanup activities, blood drives, pandemic awareness, health screenings, student education programs and professional affiliations with government committees and industry associations. Edwards also provides employee carpooling incentives, mass transit allowances and employee bus services which help reduce commuter traffic and associated pollution, including greenhouse gas emissions from vehicle usage.

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Edwards Lifesciences LLC One Edwards Way Irvine, CA USA 92614

Phone: 949.250.2500 Fax: 949.250.2525 www.edwards.com (Unaudited Report. For General Internal Use Only)

Highlights in Occupational Health & Safety Management for 2014

Anasco

Awarded with OHSAS 18001 Accreditation

Awarded with Puerto Rico Manufacturers Association President’s Award for Excellent Achievement in Occupational Safety and Health

1 Million work hours without a Lost Time Injury Draper

Decreased Lost Time Injury Rate from 1.05 to 0.39 through effective return-to-work management

Cardiac Surgery Systems manufacturing awarded with 1 Million Hours without a Lost Time Injury

Implemented sitewide EHS Information Management System for incident investigation, recordkeeping and corrective & preventive management

Haina

2 Million work hours without a Work Related Injury Horw

Continued solid program of compliance and injury management Irvine

27% reduction of injuries in Heart Valve Therapy operations

Expanded efforts in the early intervention program for ergonomics Singapore

50% year-over-year reduction in Lost Time Injuries

Successful launch of employee participation and ‘near miss’ reporting campaign

Implementation of ergonomist “walk the line” early intervention project

OH&S Results

Days Away From Work Case Rate: 2014 Results: Rate decreased from 0.42 to 0.32 cases per 100 employees which is below industry benchmarks.

Days away from work cases include all work-related injuries/illness that were severe enough to cause the injured employee to lose at least one full day of work.

Recordable Case Rate: 2014 Results: Rate decreased from 1.42 to 1.28 cases per 100 employees which is below industry benchmarks.

Recordable cases include all work-related injures/illnesses that require medical

treatment beyond first aid.

Note: Safety-related data are internally reported and not audited by a third party.

0.38

0.20

0.62

0.42 0.32

0.00

0.20

0.40

0.60

0.80

2010 2011 2012 2013 2014

Case R

ate

Per

100

Em

plo

yees

Year

Global Days Away From Work Case Rate

Medical Device Industry Benchmark

1.25

0.78

1.83 1.42

1.28

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2010 2011 2012 2013 2014

Case R

ate

Per

100

Em

plo

yees

Year

Global Recordable Case Rate

Medical Device Industry Benchmark

Page 7: ENVIRONMENTAL, HEALTH & SAFETYht.edwards.com/scin/edwards/sitecollectionimages/common/2013ehsreport.pdf · Edwards has established performance targets in the areas of compliance,

Edwards Lifesciences LLC One Edwards Way Irvine, CA USA 92614

Phone: 949.250.2500 Fax: 949.250.2525 www.edwards.com (Unaudited Report. For General Internal Use Only)

3.0 ENVIRONMENTAL PERFORMANCE

CORPORATE ENVIRONMENTAL TARGETS

In 2010, Edwards established measurable environmental targets to be reached by 2015, aligned with both the expected growth of the company and environmental leaders in the medical device industry. Specifically, targets were adopted to reduce Edwards’ environmental footprint from global manufacturing activities associated with hazardous and nonhazardous wastes, water consumption, electricity usage and greenhouse gas (GHG) emissions. Edwards has maintained a consistent environmental footprint for the past several years and continues to compare favorably with medical device industry leaders. Based on new benchmark information and results, Edwards will be expanding its environmental measurement parameters to provide a new baseline in 2015 for its 2016-2020 Environmental Plan. The goal of this planning effort is to remain consistent with Edwards’ medical industry peers, customers and select global environmental reporting platforms. The following sections describe Edwards’ results in meeting its 2011-2015 environmental commitments.

Highlights in Environmental Management for 2014

Corporate:

First submission of Greenhouse Gas (GHG) Emissions Report for the Carbon Disclosure Project

First submission of Water Conservation for the Carbon Disclosure Project

First public Sustainability Report available on Edwards’ Internet website Anasco:

Awarded with ISO 14001 Accreditation

Awarded with Puerto Rico Manufacturers Association President’s Award for Excellence in Energy Conservation through Lighting Technology

Draper:

Awarded with ISO 14001 Accreditation

Increased Recycling Rate over 60%

Reduced Hazardous Waste from 17% to 11% of total waste generated Haina:

Installation of equipment energy tracking meters

Installation of high efficiency chillers and air compressors

Installation of waste compactor and lamp crusher for waste volume reductions

Employee participation in local coastal cleanup events

Horw:

Zero Landfill Waste – all wastes are recycled, reused or incinerated for energy

Zero Hazardous Waste – 130,000 kilograms of waste are reused for ‘waste to fuel’ Singapore:

Implemented 100% chemical bottle recycling

30% of water consumption derived from “New” reclaimed wastewater

Incorporated environmental energy and water requirements into facility expansion projects and construction activities

Page 8: ENVIRONMENTAL, HEALTH & SAFETYht.edwards.com/scin/edwards/sitecollectionimages/common/2013ehsreport.pdf · Edwards has established performance targets in the areas of compliance,

Edwards Lifesciences LLC One Edwards Way Irvine, CA USA 92614

Phone: 949.250.2500 Fax: 949.250.2525 www.edwards.com (Unaudited Report. For General Internal Use Only)

Irvine:

Completion of Phase 2 of the site’s Central Park project o Photovoltaic solar panels o Electrical vehicle charging stations o North America’s largest ‘Living Wall’ o Stormwater retention collection tanks and bioswale filters o Relocation of 1,200 vehicles from potentially contaminating stormwater runoff areas

6.6% decrease in hazardous waste generation

10.5% decrease in nonhazardous waste generation

30% reduction in water usage

“Green” partnerships with office supply and services providers

Hazardous Waste Results

Hazardous Waste Disposal Metric: kgs/$1,000 sales Edwards Results: 0.331 Benchmark Average: 0.884 EW 2010-2015 Target: 0% Change EW 2010-2015 Result: 33% Reduction

Hazardous Waste includes all country regulated wastes, including both chemical and medical toxic substances. Absolute volumes of hazardous waste increased from 434,000 to 768,000 kilograms from 2010 to 2014 primarily due to the significant capacity growth of Edwards’ Singapore manufacturing operations. However, Edwards was still successful in achieving a reduction of 33% when normalized for overall company growth. Hazardous Waste disposal costs increased only 26% while volumes increased 76%. Effectively, waste disposal costs decreased from $1.62 to $1.14 per kilogram due to improvements in chemical handling, upgrades of on-site equipment and process changes with waste contractors.

Page 9: ENVIRONMENTAL, HEALTH & SAFETYht.edwards.com/scin/edwards/sitecollectionimages/common/2013ehsreport.pdf · Edwards has established performance targets in the areas of compliance,

Edwards Lifesciences LLC One Edwards Way Irvine, CA USA 92614

Phone: 949.250.2500 Fax: 949.250.2525 www.edwards.com (Unaudited Report. For General Internal Use Only)

Manufacturing Sites’ Hazardous Waste

The Edwards Haina, Dominican Republic facility successfully reduced hazardous waste disposal volume 75% since 2010 primarily due to efforts in waste minimization practices, purchasing decisions and more aggressive waste segregation and disposal options. Approximately 75% of Edwards’ global hazardous waste generation is associated with a single waste stream generated in manufacturing operations in Irvine, Singapore and Horw. Due to the different regulatory requirements in each country, the method and costs for disposal differ greatly. However, over 30% of the wastes are reused as fuel at cement kilns and energy plants. The Horw facility receives a rebate each year for VOC reductions and energy generation from the beneficial reuse of its combustible hazardous waste.

Solid / Nonhazardous Waste Results

Solid Waste Disposal Metric: kgs/$1,000 sales Edwards Results: 0.525 Benchmark Average: 1.047 EW 2010-2015 Target: 0% Change EW 2010-2015 Result: 31% Reduction

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Edwards Lifesciences LLC One Edwards Way Irvine, CA USA 92614

Phone: 949.250.2500 Fax: 949.250.2525 www.edwards.com (Unaudited Report. For General Internal Use Only)

Solid Waste includes nonhazardous wastes which are disposed of by landfill or incineration, but do not have any recycling or reuse benefit. Absolute volumes of solid waste increased from 1,100,000 to 1,220,000 kilograms from 2010 to 2014 primarily due to growth in manufacturing production and facility capabilities. However, Edwards was successful in achieving a 31% reduction when normalized for overall company growth. Solid Waste disposal costs increased 68% primarily due to higher contractor disposal costs, compactor services and local government taxes and fees. Effectively, solid waste disposal costs increased from $0.22 to $0.33 per kilogram.

Manufacturing Sites’

Solid / Nonhazardous Waste

Edwards’ Anasco, Puerto Rico operation was successful in reducing its solid waste disposal volume over 200,000 kilograms, or 46%, since 2010 primarily due to efforts in waste minimization practices and increased recycling efforts. Haina also significantly reduced its waste by over 90,000 kg, equivalent to a 70% reduction. Solid waste generated at the Horw, Switzerland facility is 100% incinerated by the local municipality as waste-to-energy fuel, thus keeping waste out of landfills while providing an community benefit.

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Edwards Lifesciences LLC One Edwards Way Irvine, CA USA 92614

Phone: 949.250.2500 Fax: 949.250.2525 www.edwards.com (Unaudited Report. For General Internal Use Only)

For the past several years, the Irvine campus has undergone numerous changes with the demolition of old buildings and construction of new buildings and community spaces. During construction, a large volume of demolition materials was diverted from landfills and recycled for beneficial reuse. For example, the recent demolition of a 30 year old laboratory and office structure resulted in the generation of over 160 tons of debris, 70% of which was diverted for recycling or reuse.

Recycling Results

Waste Disposal Recycling Rate Metric: Total Recycling / Total Waste

Edwards recycles, reuses or incinerates “waste-to-fuel” at least 37% of its combined hazardous and solid wastes. Both Horw and Haina locations have recycling rates exceeding 80%, due to their efforts to divert wastes from landfills for recycling or beneficial re-use. Unfortunately, the local regulations and infrastructure do not allow Singapore to recycle its combustible process wastes, which amounts to approximately 20% of Edwards’ global total of combined hazardous and solid waste streams.

Page 12: ENVIRONMENTAL, HEALTH & SAFETYht.edwards.com/scin/edwards/sitecollectionimages/common/2013ehsreport.pdf · Edwards has established performance targets in the areas of compliance,

Edwards Lifesciences LLC One Edwards Way Irvine, CA USA 92614

Phone: 949.250.2500 Fax: 949.250.2525 www.edwards.com (Unaudited Report. For General Internal Use Only)

Electricity Usage Results

Electricity Usage Metric: kwh/$1,000 sales Edwards Results: 24.80 Benchmark Average: 18-45 kwh range EW 2010-2015 Target: 10% Reduction EW 2010-2015 Result: 20% Reduction

Except for a solar power generation facility at Edwards’ Irvine location, all electricity is purchased from outside utility providers. Electricity provides over 75% of all Edwards’ energy needs and encompasses 100% of Edwards “Scope 2” type energy usage. Electricity usage increased 28% at the same time as Edwards doubled its Singapore manufacturing operation and completed significant facility expansion projects at its Irvine headquarters. Electricity costs increased 32% during this same timeframe. Edwards’ global electricity rates have increased 7% since 2010, thus increasing the average cost per kwh from $0.16 to $0.17. Overall savings comparing years 2010 and 2014 and normalized for company growth are equivalent to 1,440,000 kwh, or approximately $2,450,000 total cost avoidance in 2014.

Page 13: ENVIRONMENTAL, HEALTH & SAFETYht.edwards.com/scin/edwards/sitecollectionimages/common/2013ehsreport.pdf · Edwards has established performance targets in the areas of compliance,

Edwards Lifesciences LLC One Edwards Way Irvine, CA USA 92614

Phone: 949.250.2500 Fax: 949.250.2525 www.edwards.com (Unaudited Report. For General Internal Use Only)

Manufacturing Sites’ Electricity Usage

Electricity usage in Irvine and Singapore has increased since 2010 due to campus expansions for both office and manufacturing space. Anasco was most successful in reducing its electricity usage 15% since 2010, or over 2,000,000 kwh in 2014. As Anasco electricity costs have increased from $0.17 to $0.23, this reduction in usage amounts to an avoidance of almost $500,000 in 2014 costs alone. Irvine installed a photovoltaic solar station which generates an average of 85,000 kwh per month. The energy is routed back to the local utility provider who, in turn, provides a rebate check to Edwards. Since coming online in mid-2013, the system has returned over 1,200,000 kwh to the local electricity grid.

Page 14: ENVIRONMENTAL, HEALTH & SAFETYht.edwards.com/scin/edwards/sitecollectionimages/common/2013ehsreport.pdf · Edwards has established performance targets in the areas of compliance,

Edwards Lifesciences LLC One Edwards Way Irvine, CA USA 92614

Phone: 949.250.2500 Fax: 949.250.2525 www.edwards.com (Unaudited Report. For General Internal Use Only)

Greenhouse Gas Emissions Results

Greenhouse Gas Emissions Metric: kwh/$1,000 sales Edwards Results: 0.0133 EW 2010-2015 Target: 10% Reduction EW 2010-2015 Result: 21% Reduction

The Scope 1 sources indicate carbon dioxide emissions which occur while combustion of a fuel source occurs on-site:

Natural Gas = 60% GHG

Diesel Fuel = 37% GHG

Propane/Gasoline = 3% GHG The Scope 2 sources are entirely from off-site utility providers:

Electricity = 100% GHG The Scope 3 and nonmanufacturing emissions are summarized in four categories:

Corporate Travel (Air, Train) = 21,675 MT

Employee Commuting = 16,475 MT

Sales Fleet Vehicles = 3,055 MT

Global Nonmanufacturing Real Estate = 4,800 MT

Since the majority of greenhouse gas (GHG) emissions are directly related to electricity consumption, Edwards’ GHG emission and electricity reduction targets are identical. Edwards has reduced emissions 21% since 2010 when normalized for company growth. In 2014, Edwards reported its first GHG emissions summary through the Carbon Disclosure Project (CDP). Approximately 20% of GHG emissions are due to Scope 1 emissions sources and 80% of GHG emissions are due to Scope 2 emission sources. Edwards employs more than 9,000 people worldwide. Forty percent of these employees use alternate means to commute to and from work, including buses, trains, bicycles and electric vehicles. Approximately 1,800 employees from Haina and Singapore are provided free bus services to and from Edwards.

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Edwards Lifesciences LLC One Edwards Way Irvine, CA USA 92614

Phone: 949.250.2500 Fax: 949.250.2525 www.edwards.com (Unaudited Report. For General Internal Use Only)

Water Consumption Results

Water Consumption Metric: liters/$1,000 sales Edwards Results: 133 Benchmark Average: 400

In general, Edwards’ facilities are ‘dry’ in nature and do not require major sources of water to manufacture products. Primary uses of water include cleanroom process water, employee hand cleaning for cleanroom hygiene, landscaping, facilities equipment and employee restrooms. Edwards’ water consumption is approximately 33% of that of its medical device industry peers, as normalized by annual revenue. Understanding the limited nature of this resource, Edwards strives to limit its water consumption to the amount necessary to maintain production, campus aesthetics and employee facilities.

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Edwards Lifesciences LLC One Edwards Way Irvine, CA USA 92614

Phone: 949.250.2500 Fax: 949.250.2525 www.edwards.com (Unaudited Report. For General Internal Use Only)

Manufacturing Sites’ Water Consumption

Due to medical device industry requirements for clean water in manufacturing operations and employee hygiene in cleanrooms, Edwards is limited in the steps it can take to minimize water consumption in production areas. At Edwards, water consumption is in direct correlation to employee headcount and not necessarily to manufacturing equipment processes. Most facilities have implemented various strategies to conserve and help reduce water usage, such as:

Hands-free faucets

Low flush toilets

Drought tolerant landscaping

Stormwater water collection and reuse systems

Note: Environmental-related data are not audited by a third party.

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Edwards Lifesciences LLC One Edwards Way Irvine, CA USA 92614

Phone: 949.250.2500 Fax: 949.250.2525 www.edwards.com (Unaudited Report. For General Internal Use Only)

4.0 ENVIRONMENTAL PACKAGING

Environmental considerations are incorporated into Edwards’ packaging design, development and qualification processes and procedures. The goal is to develop and implement packaging systems that facilitate compliance and minimize impact to our environment. Appropriate recycling logos, stamps and insignias are used on packaging materials as required for EU Packaging Waste Directive 94/62/EC and Electronic & Waste Directive 2002/96/EC. Environmental packaging initiatives have resulted in reduced packaging materials and less waste. In addition, stronger durability, smaller package sizes and improved pallet configurations have resulted in improvements in overall shipping efficiencies.

5.0 IRVINE CORPORATE EHS PROGRAMS

Although Edwards’ headquarters offices are in the same location as Irvine manufacturing operations, there are many individual corporate EHS initiatives implemented to help reduce Edwards’ global environmental footprint, prevent injuries and promote employee health and wellness. Examples of some corporate office initiatives are described in this section.

Construction Environmental Initiatives: The Edwards headquarters have been undergoing significant expansion over the past several years as part of a master planned campus enhancement project. Improvements have resulted in the construction of new buildings, remodeling of existing interior space and construction of a new parking structure. Environmental considerations have been taken into account in order to promote environmental awareness, enhance employee satisfaction and reduce Edwards’ environmental footprint. Examples of environmental results include the following:

Energy compliant lighting systems exceeding local code requirements

Automatic faucets and low-water hygiene facilities

Stormwater runoff treatment systems, including filters, natural bioswales and underground retention/collection tanks for water re-use

Installation of photovoltaic solar energy generation system

Promotion of clean air vehicle practices by employees with installation of electric vehicle charging stations, bike lockers and showers and preferred parking for carpool and clean air vehicles

Completion of North America’s largest Living Wall, complete with drought tolerant vegetation and water run-off collection and reuse systems

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Edwards Lifesciences LLC One Edwards Way Irvine, CA USA 92614

Phone: 949.250.2500 Fax: 949.250.2525 www.edwards.com (Unaudited Report. For General Internal Use Only)

North America’s Largest Living Wall

Office Supply Purchasing Initiatives: Edwards partners with Staples for office supply purchasing and services, including adoption and implementation of Staples’ environmental purchasing initiatives. Staples provides the summary report below to help Edwards manage its environmental footprint and evaluate opportunities for improvements in office supply purchasing and handling programs.

By selectively purchasing environmentally friendly products with post-consumer recycled content, Edwards is able to reduce its overall environmental footprint with respect to wastes, greenhouse gases, water consumption, energy usage and overall environmental conservation.

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Edwards Lifesciences LLC One Edwards Way Irvine, CA USA 92614

Phone: 949.250.2500 Fax: 949.250.2525 www.edwards.com (Unaudited Report. For General Internal Use Only)

“Follow-Me” Printing: Partnering with our copier supplier, Edwards instituted a program which allows employees to print from any network copier/printer after scanning their employee identification cards. Not only does this reduce the amount of unwanted or mistakenly printed paper, but it also supports confidentiality and security while printing.

Desktop Printer Consolidation: Edwards instituted a program to standardize the consumable ordering process for desktop printers in order to reduce redundant equipment and printing materials. This effort resulted in a reduction of more than 80 desktop printers from office and common areas while saving over $15,000 in office printer consumables.

Result: Prevented 514,000 uncollected print-outs, equal to $23,000 in cost savings and over 5,000 pounds of paper

Food Services – Supplier Environmental Initiatives In mid-2014, Edwards partnered with a new food services supplier to manage its headquarters cafeteria and campus catering services. The new supplier not only provides healthier options for employees, it also locally sources products and is committed to environmental excellence in its own operations.

EHS Benefits From Our Locally Sourced

Food Services Supplier

• Farm to Fork - A groundbreaking initiative

requiring chefs to buy at least 20% of their ingredients from small farmers, ranchers, fishermen, and food producers within 150 miles of their kitchens.

• Fish to Fork - Defining “local and sustainable”

for seafood sourcing. • Crate-Free Pork, Cage-Free Eggs, Humane

Ground Beef, FAD-Free Tuna - A commitment

to humane animal treatment.

• Fighting Antibiotics Abuse - Sourcing

animals raised without antibiotics. • rBGH Free - Milk and yogurt come from cows

not treated with artificial bovine growth hormones.

• Imperfectly Delicious Produce - A cutting-

edge program to rescue flavorful but cosmetically imperfect produce from going to waste on farms and during distribution.

• Responsible Disposables - Applying

innovation to reduce, reuse and recycle • Reducing Food Waste - Decreasing what is

sent to landfill decreases the release of greenhouse gas emissions from transportation fuels. These efforts result in a weekly reduction of 40 to 50 metric tons of carbon dioxide equivalent GHGs. Currently, the teams at the cafés divert more than 40 percent (by weight) of what remains of their food waste from landfills.

• Low Carbon Diet - Tackling climate change

through food choices. In 2012, Edwards’ food services partner reached its company’s five-year commitment to reduce the company’s carbon footprint in the highest impact areas by 25%. The efforts have reduced GHG emissions approximately 5 million pounds GHG emissions each month.

Page 20: ENVIRONMENTAL, HEALTH & SAFETYht.edwards.com/scin/edwards/sitecollectionimages/common/2013ehsreport.pdf · Edwards has established performance targets in the areas of compliance,

Edwards Lifesciences LLC One Edwards Way Irvine, CA USA 92614

Phone: 949.250.2500 Fax: 949.250.2525 www.edwards.com (Unaudited Report. For General Internal Use Only)

Food Services – Coffee Pack Recycling In July 2014, Edwards began recycling single-use Flavia coffee packs. These packs are recycled and remanufactured into various items such as office accessories, garden furniture, benches and picnic tables. The simple program has resulted in a total recycling of over 72,000 individual coffee packs which would otherwise be discarded in the regular trash.