MAKING A DIFFERENCE EVERY DAY - GSK · 2017-02-28 · MAKING A DIFFERENCE EVERY DAY Sustainability...

MAKING A DIFFERENCE EVERY DAY

Sustainability in Environment, Health & SafetyReport 2003

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Contents

MAKING A DIFFERENCE EVERY DAYSustainability in Environment, Health and SafetyReport 2003

Contents

Welcome ................................................................................iv

Scope ......................................................................................1

Executive Statements ............................................................3Chairman of the Board ................................................................................3

Chief Executive Officer..................................................................................3

General Counsel ..........................................................................................4

VP Corporate Environment, Health and Safety ........................................................................................4

VP Corporate Employee Health Management ....................................................................................7

Framework ............................................................................8Vision and Policies ......................................................................................10

Environment, Health and Safety Policy ................................................11

Employee Health Policy ........................................................................12

Planning ....................................................................................................13

Strategy ..............................................................................................13

The EHS Plan for Excellence..................................................................14

Targets ................................................................................................16

Organisations ............................................................................................18

Corporate Environment, Healthand Safety Organisation ......................................................................19

Employee Health Management Organisation........................................21

Partner Organisation ............................................................................22

Management Systems ................................................................................23

Programmes ..............................................................................................24

Business Processes................................................................................24

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Contents (cont.)

Hazard Assessment and Communication..............................................26

Environmental Programmes..................................................................27

EHS Programmes in GlaxoSmithKline Commercial ..............................................................31

Ergonomics ..........................................................................................32

Occupational Hygiene and Control of Chemical Agents ................................................................33

Work Related Mental Illness ................................................................34

Human Immunodeficiency Virus (HIV) ..................................................35

Process Safety and Safety Engineering..................................................36

Audit ..........................................................................................................37

Stakeholder Communication ......................................................................38

Forum for the Future............................................................................40

Reward and Recognition ............................................................................42

Issues ....................................................................................45Designing Products for Environmental Sustainability ......................................................................45

Ozone Depletion ........................................................................................48

Pharmaceuticals in the Environment ..........................................................49

Biodiversity ................................................................................................51

Genetically Modified Organisms ................................................................53

Contaminated Land ....................................................................................54

Occupational HazardEvaluation - Continued Progress in Reducing Use of Laboratory Animals in 2003 ........................................................................................55

Performance ........................................................................57Environment, Health and Safety Performance ............................................57

Fines, Penalties, and Serious Events ............................................................58

Fatalities and Serious Occupational Injuries and Illnesses ..................................................................................58

Costs ..........................................................................................................59

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Contents (cont.)

Energy ........................................................................................................61

Water ........................................................................................................63

Air ..............................................................................................................65

Air Emissions........................................................................................65

Carbon Dioxide and Global Warming ..................................................65

Sulphur Dioxide (SO2) and Nitrogen Oxides (NOX) ..........................................................................72

Ozone Depletion Potential....................................................................72

Volatile Organic Compoundsand Photochemical Ozone Creation Potential (POCP) ....................................................................77

Waste ........................................................................................................80

Hazardous Waste ................................................................................82

Non-Hazardous Waste..........................................................................84

Waste Recycled ....................................................................................86

Demolition and Construction Waste Disposed......................................88

Wastewater ................................................................................................89

Contract Manufacturers—Environmental Impact ........................................93

Health and Safety ......................................................................................93

Lost Time Injury and Illness ..................................................................94

Reportable Injury and Illness Without Lost Time ..................................98

Contract Manufacturers—Injury and Illness ........................................101

Verification Statement ......................................................102

Global Reporting Initiative Content Index ......................104

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Environment, Health and Safety

Welcome to Sustainability in Environment, Health and Safety 2003, the GlaxoSmithKline publicationthat is the source for information about globalcompany-wide environment, health and safety (EHS) impacts, programmes and progress.

GlaxoSmithKline produced Making a difference everyday - Corporate Responsibility Report 2003, whichoutlines our approach to managing corporateresponsibility and reports some of our achievements.Environment, Health and Safety is one aspect of our corporate responsibility and this publication is acompanion to the Environment, Health and Safetysection of the Corporate Responsibility report.

At the end of each year we summarise our globalEHS data and include it on GSK’s web site(http://www.gsk.com) in time for the Annual General Meeting. We then create this document from the web pages, which constitutes our annualenvironment, health and safety report. Copies of this printed report are available on request and a printer-friendly version will be available on the GSK web site in June.

We welcome feedback on the EHS web site, the EHS Report and on our EHS programmes and performance.


Welcome

We have referred to the Global ReportingInitiative SustainabilityReporting Guidelinespublished in 2002, insetting the content ofthis report, although thereport covers only the EHS aspects ofsustainability.

When the GRI iconappears in this report,look next to it for areference to related GRIsections. These referencesare also summarised in the GRI contents indexon page 104.

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Scope

This Environment, Health and Safety (EHS) report isdesigned to give a complete picture of our EHS issuesand impacts and how we manage them. To do so, itincludes detailed information about our emissionsand injury and illness performance as well as detailsabout the programmes we have in place to addressEHS issues and how we continuously improve them.Our programmes have a structure that we call theFramework and we have a long term EHS Plan forExcellence that guides us in the longer term.

Since our programmes are designed to stand the test of time, some pages of the web site have datesindicating when certain information is effective. Our EHS policy and Global EHS Standards are twoexamples. The EHS Policy was approved in 2001 and has been effective as written since then and theGlobal EHS Standards supporting the Policy wereapproved and effective January 1, 2002 . While wereview our Policy and Standards regularly, they werewritten to be effective over the long term to providestability for our programmes and it has not beennecessary to change them since they were approved.

In this report and on the EHS web site we includedata on the environmental impacts of all 27 of our pharmaceutical and consumer research anddevelopment sites and all 97 of the manufacturinglocations that were part of the network in 2003.Rationalisation of the manufacturing networkcontinues resulting in a diminishing number ofoperations. These two groups of sites represent themajority of our environmental impact and we do notcollect environmental data from most commerciallocations. The occupational health and safety data

cover the same manufacturing and research anddevelopment sites but also cover major offices and all except 13 of the 85 office, sales and distributionlocations. The commercial sites that do not report aremainly small offices that manage sales employeeswho work out of their vehicles and homes. Our new Commercial Support team is working with our office and sales locations to develop contacts,implement health and safety programmes andimprove reporting.

One of the prime audiences for this report is ourshareholders and others such as financial analystswho may want to consider our EHS programmes andperformance in their decisions about investing inGlaxoSmithKline. Non-governmental organisationsmay also want information about our environment,health and safety programmes and progress to informtheir advocacy decisions. Another important audienceis our own management and employees. Thispublication and web site serve as the definitive source for company-wide EHS information that hasbeen verified and can be used both inside andoutside the company.

The web site is designed to help our stakeholders findthe information they need. Some will want to knowhow we manage our programmes so we include ourPolicy and Standards, originally approved in 2001,and other information about our Framework. Otheraudiences will be more interested in our quantitativeperformance according to specific targets as well asthe quantities of our emissions. Still others may wantto know about specific programmes andaccomplishments. We have tried to include enoughinformation to satisfy all of these stakeholders andarranged it with sufficient links to enable them tofind just the information they want. There is also an index with links listed in the navigation.

In addition to information about performance of our own manufacturing network, we are working to include information about our contract


Scope

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manufacturers because they represent an extensionof our own manufacturing capability. We focused on manufacturers of our primary active ingredientsbecause they represent the most significantcontributors to our emissions profile. Thisinformation, about seven of our contractmanufacturers, is reported separately frominformation about GlaxoSmithKline sites.

Data on the web site are reviewed and verified firstby an internal group. The report based on the website is then independently verified by ERM. Theinternal review panel collects data from all operationsand collates it to provide the company-wide summary. Many reported parameters have multiplecomponents. Energy from non-transport sources, forexample, has seven components - electricity, steamand five fuels. Each of these components is comparedto data from the previous year and significantchanges are reviewed with the reporting entities.Each year we take this opportunity to refine andimprove the data accuracy and calculations of theEHS impacts. The internal review sometimes identifieserrors in site reporting, calculation factors and othersources. When errors are uncovered, we correct thepreviously reported parameters and identify thesecorrections in the reports. Most of these changes arenot large but we report them so that our readers canrevise their assessments based on true improvementsor lack of improvements from our baseline year.

Throughout the report are references to the specificareas of the Global Reporting Initiative (GRI) Guidelinesthat are addressed. In addition, there is a Global Reporting Initiative Content Index listing all of the GRI indicators in Part C of the reportingguidelines. The Content Index includes explanationsas to the extent of our reporting for each indicatorand page numbers to relevant sections in thispublication.

This publication and web site are prepared by theCorporate Environment, Health and Safety (CEHS)department at GlaxoSmithKline by Nancy English,PhD, RPh, Director, EHS Reporting. There were manycontributions to the report from CEHS staff membersas well as from the Corporate Employee HealthManagement department. You are looking at thesection of the EHS web site that covers the calendaryear 2003.

Scope (cont.)

GRI Part C, Section 2.10 to 2.16Report Scope

http://www.erm.com/erm/main.nsf/pages/homepage?opendocument

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Executive Statements

The GlaxoSmithKline Board of Directors has a clearresponsibility to report to external stakeholders andmake sure GlaxoSmithKline stays on track withaddressing environment, health and safety concerns.Significant achievements this year in safety includedevelopment of targeted programmes to improve thesafety of our sales force. For the environment, ourprogrammes have succeeded in producing continuousimprovement and we are well on our way towardmeeting most of our five-year targets.

As Chairman of the Board of Directors, I stronglysupport the ten-year EHS plan and the programmesthat are helping us make progress on the path to environmental sustainability.

Sir Christopher Hogg

GlaxoSmithKline employees are passionate abouttheir work and their contributions to helping peopledo more, feel better and live longer. Goodenvironment, health and safety (EHS) performanceand consistent progress in improving our programmescan be driven by encouraging people to contributewith passion and recognising their good work.

Every year I sponsor the CEO’s EHS Excellence Awards recognising innovative, creative solutions toEHS issues and concerns. The awards motivate thewinners as well as all employees to continue to worktoward the goal of excellence in EHS and to becreative in finding solutions. The 2003 winners are highlighted throughout this publication.

The goals of EHS are very well aligned with businessgoals to improve quality and efficiency. Both focus ondriving out waste by having more robust and efficientprocesses that consume less natural resource,generate less waste and are good for the company’s bottom line.

This web site demonstrates GlaxoSmithKline’scontinuing commitment to clear and transparentreporting of our environment, health and safetyprogrammes and performance.

Dr. JP Garnier


GRI Part C, Section 1.2 Statementfrom the CEO

Chairman of the Board Chief Executive Officer

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GSK is committed to acting ethically and responsiblyin all that we do and our environment, health andsafety programme serves as an example of thisphilosophy. In all of our operations we focus onpreventing environmental damage and harm to our employees and neighbours.

We constantly assess our risks and address areas of potential concern so that we manage our risks to the lowest possible level. We aim to reduce ourrisks by having a consistent and clear statement ofEHS principles and putting in place world-class EHS programmes.

Our ten-year EHS Plan for Excellence guides our steps along the way. We have made good progress in EHS in 2003. We set targets in 2001 and we areon track to meet or exceed them by 2005. You will find the details in this publication.

Rupert Bondy

Sustainability in Environment, Health and Safety, thispublication, focuses on the environment, health andsafety aspects of sustainability. Other related issuesare addressed in Making a difference every day -Corporate Responsibility 2003. While we are makingprogress, we realise that sustainability is a very long-term aspiration and that we are only taking thefirst steps.

GlaxoSmithKline and the pharmaceutical industry face many challenges in our steps towardsustainability. The environment, health and safetychallenges include improving worker health andsafety and minimising our impact on the environmentfrom all operations. Our commitment to improvingoccupational health and safety is reflected in ourtheme for 2003 of “Reducing Key Risks”, whichincludes such topics as chemical exposure, processsafety, driver safety, ergonomics, and emergencyresponse plans. There are also environmentalchallenges that we have identified as our theme for 2004 that include such issues as producerresponsibility including pharmaceuticals in theenvironment and the need to address our energyconsumption profile and its impact on globalwarming. We also recognise our sustainability impacts such as the potential effects on biodiversityand improving the efficiency of manufacturing thecomplex molecules that constitute our medicines.

These are the first steps toward environmentalsustainability, focusing on manufacturing processesthat minimise resource use and environmental waste.The next steps are to examine the possibility of usingrenewable resources and evaluate the life cycle ofGSK’s products and processes to help us understandhow they fit into the natural cycle. Fitting into thenatural cycle means that raw materials would comefrom renewable sources and wastes would beassimilated into the environment without causing harm.

We manage our challenges through a strong and structured EHS programme and by positive

General Counsel VP Corporate Environment, Health and Safety

http://www.gsk.com/financial/reps03/cr.htm

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engagement with our stakeholders. We engage apanel of stakeholders who advise us on the relevanceof our programmes and we meet with individualstakeholders to obtain input on issues of mutualconcern. Jonathon Porritt, Programme Director ofForum for the Future has provided commentary onthis report, page 40. Our relationship with regulatorsis co-operative and includes relationships withnational regulators as well as relationships betweenindividual operations and their local regulators.

We believe that clear and transparent reportingencourages trust and we have tried to include all of the information of interest to our variousstakeholders while balancing that against providingso much information that it obscures the facts. Wecontinue to expand the scope of our reporting andwe try to improve the way we provide information tomake it easier for everyone to understand and use.One of the improvements in the web site that wasmade this year is the addition of the Global ReportingInitiative Content Index. This should make theinformation more comparable to other companies.We made good progress in our EHS programmes in 2003. We continue with a structured approach to EHS, which we call our Framework. Our auditprogramme continues to monitor compliance withthe Global EHS Standards for all GlaxoSmithKlineoperations as well as key contract manufacturers andsuppliers. We set targets in 2001 and have madeprogress toward all except our waste recycling targetand look to be on schedule to meet or exceed mostof them by the end of 2005. We expect theseprogrammes to help us achieve our targets but achanging product mix in manufacturing can also have significant effects on our emissions profile.

We rely on the EHS Plan for Excellence to guide our programmes and communicate to all internalstakeholders so they can formulate their own plans inline with the overall plan. The EHS Plan for Excellencesets out a ten-year approach to ensuring that wehave a strong, robust management system thataddresses conventional EHS issues and begins toaddress the first step of three on our path to

sustainability. Our first step, and immediate challenge,on our path to sustainability is to improve ourmanufacturing efficiency. This may require aparadigm shift in the way we develop manufacturingprocesses but this improvement can have a significantbenefit in terms of optimising natural resourceconsumption, reducing waste and reducing the cost of manufacturing.

This year we were pleased to accept the award forbest environmental report from the UK Association of Certified Chartered Accountants. Our 2002 reportwas commended for including detailed informationabout the way we manage and plan for EHS and foraddressing relevant issues. Our detailed performancedata and quantified targets with verification by athird party were also areas of commendation.

The 7th Index of Environmental Engagement byBusiness in the Environment rated GSK among thePremier League awarding an overall score of 96.93percent. GlaxoSmithKline was the number onecompany in the pharmaceuticals sector in this index.We are included in the UK FTSE4Good Index and inthe Dow Jones Sustainability Index. We are alsoinvolved in the Carbon Trust UK campaign to reduce carbon dioxide emissions.

All these efforts require the constant dedication of our senior managers and the involvement andcommitment of all GSK employees. I am very gratifiedby this response and the enormous benefit that iscreated by this level of involvement. We arecommitted to continuous improvement and have agreat deal more to do. However, I am very pleasedwith our progress to date and especially pleased bythe benefits of having a structured ten-year plan ofaction, clear requirements and supporting effortsafforded by our management system identified in the EHS Framework, and the value of being able toreport our results, both good and bad, in this reportin order to improve both our performance and ourrelations with our stakeholders. I look forward to hearing your comments on our efforts.

James Hagan, PhD, PE

VP Corporate Environment, Health and Safety (cont.)

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VP Corporate Environment, Health and Safety (cont.)

GlaxoSmithKline took first place honours forenvironmental reporting at the prestigious ACCA UKAwards for Sustainability Reporting 2003. The ACCArecognises transparency in environmental, social andsustainability reporting and rewards organisations thatreport and disclose information in the most completeand credible way. They look for organisations to addresstheir key impacts and provide demonstrable examples ofprogress. GSK’s 2002 EHS Report was commended forincluding detailed information about our EHS frameworkand ten-year Plan for Excellence, in addition to wide-ranging performance data and for independentverification, among other factors. The award waspresented February 24 by Elliot Morley MP, Minister for Environment and Agri-Environment, DEFRA andaccepted by Jim Hagan, VP, Corporate Environment,Health and Safety.

ACCA Award for Sustainability Reporting 2003

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The people of GlaxoSmithKline have made thiscompany the success it is today, and they will be thereason that GlaxoSmithKline succeeds in the future.Achieving our mission—Improving the quality ofhuman life by enabling people to do more, feel betterand live longer—depends on recognising that ourpeople are our single greatest source of competitiveadvantage. And because it is vital that we develop,support and optimise this valuable asset, we arecommitted to creating the best place in which thebest people can do their best work.

To attract, retain and develop the best people, we need to provide the best place to work. While it is important to have a first-class physical workingenvironment, it is even more important to have the right culture; a culture that supports a resilient,diverse, healthy and performance-focused workforce.Resilience is the set of skills and behaviours necessaryto be successful in the midst of a fast-paced andcontinuously changing work environment. Theimplementation of our Team Resilience Toolkit, whichprovides managers with tools to assess organisationalrisks to well-being and develop action plans toaddress them, has enhanced team resiliencethroughout the organisation. On a global basis,programmes that help employees lead healthier andmore balanced lives have been developed to supportlocal and cultural needs. Examples include health care benefits, employee assistance programmes,childcare, elder care, fitness facilities and HIVtreatment and education.

Another important part of having the best placeto work is having a safe working environment.Compliance to GlaxoSmithKline Employee Healthstandards, which were developed in 2001, is assessedvia a global audit programme. From this auditprogramme and additional global health data, threekey health risks have been identified as areas offocus: musculoskeletal, mental health and chemicalagents. To ensure the business has the best people to manage these risks, training and networking ofEmployee Health Management (EHM) andEnvironment, Health and Safety (EHS) teams isaccomplished through regional workshops and

post-audit support. In 2003, employee health riskswere discussed in regional meetings of a network of EHS professionals, and workshops that were heldin Singapore and Spain raised competence inmanaging chemical agents.

When it comes to the best people, the health of our employees is vital to our ultimate success. Thecompany’s performance depends on people who arephysically and mentally able and available to meetour business goals. The EHM function provides theglobal framework and strategy that supports theprotection and promotion of employee health andwell being. A key component of this strategy isdisease prevention, which is accomplished throughtargeted health education and behaviour changeprogrammes. Delivery of services and programmeswithin this framework is coordinated with therelevant Corporate and Business Human Resourcesand Environment, Health and Safety functionsglobally.

As with all functions at GlaxoSmithKline, we need to deliver our employee health services using thebest work processes, delivering business resultswhile providing opportunities for meaningful andchallenging work for our staff. EHM have favourablyimpacted costs through using the most cost-efficientchannels to deliver our services to employees, andthrough enhanced coordination and integration withdepartments delivering complementary services.Examples include integration with employee benefitssystems, integrated re-engineering of the absencemanagement process, optimisation of shared servicedelivery in the US and UK and a “virtual consultancy”model for global operations. A key element ofdelivering best work is measurement and evaluation. During 2004, we will be refining a scorecard covering key health risks and conditions,attendance management, governance, budget and cultural indicators.

It is through these continued integrated efforts that GlaxoSmithKline will safeguard and enhance the health and well-being of employees and as aconsequence, will enhance shareholder value.

Robert W. Carr, MD, MPH

VP Corporate EmployeeHealth Management

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Framework

The GlaxoSmithKline EHS Framework is the EHS management system for GlaxoSmithKline. It includes policies, standards, guidance materials,tools and activities that support and assist thenetwork of EHS professionals who manageenvironment, health and safety at their sites and throughout key business operations.


Framework

Framework for Sustainability in EHS

GRI Part C, Section 3.19 OverarchingPolicies and Management Systems

PLANPLAN IMPLEMENTIMPLEMENT CHECKCHECK ACTACT

EHS Activities and Responsibilities Integral to Business

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Framework (cont.)

myEHS

Underpinning all of the framework, providing support for all programmes andenabling collection and analysis of the data in this report is a state of the art intranetsystem that we have called the myEHS Community web site or myEHS for short. It has three main functions:

• It is primarily a comprehensive EHS information management system thatprovides sites with tools for managing all of their EHS responsibilities andmeasuring their progress;

• It is the repository for EHS Standards, Guidelines, Tools and other EHSinformation as well as the central point for EHS-related announcements,news and listings of events as well as a place to share good EHS practicesand ideas;

• It is the central collection point for EHS data provided in this report andused by GSK and its business units to monitor progress and drivecontinuous improvement.

In addition to serving as the central collection point for the data, myEHS functionality includes:

• Creation and distribution of MSDS;

• Eco-design, occupational hygiene, hazard assessment and other tools;

• For sites that are currently ISO certified or that are in the process of ISOcertification, myEHS provides all of the support functionality needed for the required documentation and EHS management.

Structurally, myEHS is a combination of two commercial software packages, severalcollaborative working tools used within GSK and other information technologies.

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GlaxoSmithKline’s Environment, Health and Safety(EHS) and Employee Health Management (EHM)Visions align with GSK’s strategic intent: to become the indisputable leader in our industry.

The EHS vision embraces the concept of sustainabledevelopment focused on environmental sustainability.It recognises that sustainable business advantageoccurs when we understand and address EHS issues.From the development of products to their delivery,GSK has embarked on a journey to identify andunderstand its relationship to society and theenvironment. That is why in our EHS vision westrive for excellence in EHS.

The EHM vision supports the value we place on our employees.

Vision and Policies

Our vision is to achievesustainable competitive

business advantagethrough leadership and excellence in

environment, health and safety.

GSK is a recognisedleader in protecting andenhancing the health ofits employees globally,enabling sustainable

business success.

GRI Part C, Section 1.1 Statement ofthe organisation’s vision and strategy

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Environment, Health and Safety Policy

The GSK Environment, Health and Safety policy wasone of the first policies the Corporate Executive Teamapproved for the new company. The policy outlinesthe broad principles that GSK expects all operationsto live by to achieve the EHS vision. The EHS policyand EH (Employee Health) policy covercomplementary aspects of the principles underlyingresponsible treatment of the environment and of our employees.

PurposeTo achieve the GlaxoSmithKline Environment, Health and Safety vision.

ScopeThis policy applies to all GSK employees worldwide.

PolicyReflecting its commitment to global leadership andexcellence in Environment, Health and Safety, GSKrequires all operations to:

• Protect the health and safety of our fellowemployees, contractors, visitors and othersaffected by our operations;

• Operate our business in an environmentallyand socially responsible manner;

• Commit to continuous improvement of Environment, Health and Safetyperformance;

• Comply with legal requirements and global GSK Environment, Health and Safety Standards;

• Make Environment, Health, Safety and LossPrevention integral to all GSK businessprocesses, planning and decision making;

• Establish business practices andEnvironment, Health, Safety and LossPrevention strategies that optimally utiliseresources and prevent pollution to ensure

the long-term sustainability of GSK and theglobal environment;

• Adopt a comprehensive approach toproduct stewardship, which includes keysuppliers and contract manufacturers;

• Interact and cooperate actively with keystakeholders in resolving issues andimproving performance.

GSK will use effective systems, metrics and goals inthe management of all of our Environment, Healthand Safety activities.

ResponsibilitiesThe Corporate Executive Team is responsible forensuring the health and safety of GSK’s employeesand the protection of the environment and thecommunities in which GSK operates. The primaryresponsibility for implementation of this policy restswith local executives for each business unit.Employees are encouraged to participate actively in,and accept individual responsibility for environment,health and safety matters and work in partnershipwith management to assure compliance and supportcontinuous improvement.

Vision and Policies (cont.)

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Employee Health Policy

PurposeTo establish a policy to protect and enhance thehealth of GlaxoSmithKline’s employees, therebymaking a positive impact on productivity andreflecting the value we place on all our employees.

ScopeThis policy applies to all GSK employees and facilities worldwide.

PolicyGSK is committed to global leadership in protectingand promoting the health, well-being and resilienceof its employees. Integrating health principles andpractices into Human Resources strategy and businessprocesses will contribute to GSK’s sustainablebusiness success.

The company will:

• Protect the health of its employees and others affected by its operations,aiming to eliminate all work-related injuries and illnesses;

• Assess health-related risks to employeeindividual and organisational productivityand proactively manage those risks;

• Ensure GSK’s competitive advantage by optimising the mental and physical well-being of its employees;

• Make health considerations integral to its Human Resource strategy and business processes;

• Develop a culture where employees feelvalued and are not discriminated againstbecause of disability;

• Promote awareness of health issues andtheir impact on all employees;

• Comply with legal and ethical requirementsand GSK Health standards.

GSK will use effective systems, metrics and goals to drive continual improvement in the health of GSK employees.

ResponsibilitiesThe Corporate Executive Team is responsible for fostering and supporting a culture of health,productivity and resilience and ensuring the health,safety and well-being of employees at work.Managers are responsible for implementing theprinciples and practices embedded in this policy.Employees are responsible for workplace healthwithin the scope of their job and are encouraged to take responsibility for their own health and well-being.

Employee Health Management and CorporateEnvironment, Health and Safety will work in partnership to support managers in theimplementation of this policy.

Vision and Policies (cont.)

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StrategyGlaxoSmithKline’s EHS strategy of continuousimprovement supports corporate social responsibilityand encourages a sustainable business culture. It isbased on the principles of the GlaxoSmithKline Spirit:

• Passion: GlaxoSmithKline works to protectpeople and the environment in a companydedicated to improving the quality ofhuman life;

• Sense of Urgency: The absence of EHSprogrammes could endanger the lives andhealth of GlaxoSmithKline employees andthe quality of the environment;

• Entrepreneurial: We look for new ways ofworking throughout the organisation—from research and development tomanufacturing and sales—in order toimprove our efficiency;

• Innovation: We want to be a leader in theway we manage our EHS responsibilities byadopting new approaches to chemistry,manufacturing processes, waste treatment,safe working, transparent reporting andeverything we do;

• Integrity: GlaxoSmithKline includesresponsibility for good environment, healthand safety management in our definition ofintegrity. It is fundamentally the right thingto do.

The EHS strategy also aligns with GlaxoSmithKline’sfive business drivers.

PeopleThe single greatest source of competitive advantageis GlaxoSmithKline’s people. It is vital that we protectthe health and safety of employees, contractors,visitors and others affected by our operations. We will design our facilities and processes, conductassessments and provide training in order to eliminatework-related risks to safety and health. We will focuson employee health enhancement, mental well-being,causes of absence and methods of rehabilitation inorder to have a productive and resilient workforce.

New Product PortfolioOur new products are carefully designed to helpmillions of people around the world live longer,healthier and happier lives. To treat disease, theproducts must have biological activity and as a resulthave potential EHS risks and impacts throughout theirlife cycle, i.e., from raw material acquisition toresearch and development and manufacturingthrough to patient use and disposal. We will applythe principles of product stewardship throughout ourorganisation to deliver positive EHS benefits andminimise risks to our business, people and theenvironment. Product stewardship encompasses theassessment of the health, safety (excluding patientsafety, which is assessed separately), andenvironmental risks created during all stages of theproduct’s life cycle and in particular at the keydecision stages in research and development. We willalso apply product stewardship principles to ourcontract manufacturers and key suppliers.

Product CommercialisationEnvironment, health and safety play an important role in commercialising products. By integratingenvironment, health and safety planning intodecision-making on manufacturing processes,packaging design and product labelling, we helpdifferentiate our products and protect and extendproduct life-cycles. By fully embracing EHS principles,the sales organisation can minimise the cost of motorvehicle accidents and maximise the productivity ofsales and distribution staff while optimising theirenvironmental efficiency.

Planning

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Strategy (cont.)

Global CompetitorAs a global competitor, GlaxoSmithKline seeks to be a leader in EHS within the pharmaceutical andconsumer health sectors by applying best businessprocesses globally and fostering a culture ofcontinuous improvement. As a global corporatecitizen, we will demonstrate our commitment tocorporate responsibility by implementing globalstandards, guidelines, targets and managementsystems and by auditing our programmes andreporting publicly and openly on performance. We will seek dialogue with external stakeholders and consider their views when developing our approaches to EHS management.

Operational Excellence GlaxoSmithKline’s operations must achieve legalcompliance with EHS regulations. In the spirit ofoperational excellence they must also continuouslyimprove performance particularly in the areas ofaccident and occupational illness prevention, wasteminimisation and emissions reductions. We seek tointegrate EHS aspects into business processes, such as capital planning, decision-making, purchasing,training and communications.

The EHS Plan for Excellence

Early in 2003 we published our strategic approach to environment, health and safety, the EHS Plan forExcellence. The EHS Plan for Excellence shows howGlaxoSmithKline’s environment, health and safetyframework aligns with the company’s vision, strategicintent and key business drivers. It shows howGlaxoSmithKline will progress through managementsystems to leadership and excellence.

In the EHS Plan for Excellence we enunciate our long-term aspirations for environment, health and safety.Though we recognise that it may be difficult todeliver these aspirations quickly, they will guide theglobal organisation through the implementation ofenvironment, health and safety management systemsto leadership and towards sustainability during theperiod up to 2010.

To help focus global environment, health and safetyefforts on key strategic issues and draw attention to aprogressive evolution from managing our key risks toadvancing our sustainability, the plan calls for a yearlytheme to be set. We have projected themes for theyears until 2010, but these recommendations willadjust year by year to take into account currentbusiness circumstances, long-term business directionand emerging issues.

Planning (cont.)

SystemsIMPLEMENTING MANAGEMENT SYSTEMS GLOBALLY

LeadershipBECOMING EHS LEADERS IN OUR INDUSTRY

ExcellenceREACHING FOR EHS BUSINESS EXCELLENCE

Progress through Annual Themes

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The EHS Plan for Excellence (cont.)

In 2003, we focused on improving programmes toprotect the health and safety of our employees in anumber of areas that risk assessment had identifiedas key. The progress made is reflected in ourimproved lost time injury and illness performance.These improvement efforts will continue in 2004.

In 2004 our main focus will be responding to externalEHS challenges. Recognising the societal concernsabout the possible long term impacts of industry on the environment and the trend towards greaterenvironmental regulation, we will evaluate the issuesand consider GlaxoSmithKline’s position on some key topics. In particular, we will consider:

• Concerns about the possible effects ofpharmaceuticals in the environment;

• Developments in chemicals policy whichcould affect the use of some materials inthe long term;

• The future use of energy and itsimplications for greenhouse gas emissionsleading to climate change.

We will also implement a regulatory tracking processto ensure that GlaxoSmithKline management staysalert to emerging environment, health and safetyissues that could affect the business.

Since the formation of GSK we have had annualthemes and objectives. This list demonstrates progresswe have made and where we want to go.

EHS Theme for 2001: Laying the FoundationsSpecific objectives:• Implement a new GlaxoSmithKline

EHS organisation

• Define the GlaxoSmithKline EHS strategy

• Integrate EHS management systems fromthe heritage companies

• Establish EHS improvement targets

• Involve internal stakeholders

EHS Theme for 2002: Building the FrameworkSpecific objectives:• Develop programme implementation plans

and schedules

• Develop GlaxoSmithKline EHS guidelinesand the audit programme

• Launch an intranet system to support EHS programmes

• Measure improvements against EHS targets

• Launch the CEO’s EHS Excellence Awards

• Establish a dialogue with externalstakeholders

Planning (cont.)

16

The EHS Plan for Excellence (cont.)

EHS Theme for 2003: Reducing Key EHS RisksSpecific objectives:• Initiate a driver safety programme

• Assess occupational chemical exposures

• Develop tools to manage stress and ergonomics

• Enhance process safety focus and tools

• Ensure site emergency plans are in place

• Provide tools for new product development

EHS Theme for 2004: Responding to ExternalEHS ChallengesSpecific objectives:• Draft a policy on pharmaceuticals in

the environment

• Draft a policy on the use of chemicals

• Draft a policy on the future use of energy

• Implement a regulatory tracking system for EHS

Targets

GlaxoSmithKline has set targets for improvingenvironment, health and safety performance to bereached by the end of 2005, starting from a baselineset in 2001. These improvement targets are anintegral part of the EHS Plan for Excellence.

We base GlaxoSmithKline’s overall EHS improvementtargets on information about practical improvementplans and forecasts from all manufacturingoperations. We compare proposals for companytargets with benchmarking information, and ourenvironment, health and safety professionals, seniormanagers and management teams throughout thebusiness closely review them.

In addition to company targets, each operation hasimprovement targets based on its own unique EHSprofile, which includes local EHS related projects. This means sites can focus their resources on areas ofgreatest potential impact to environment, health andsafety. Sites with the greatest potential impact set themost aggressive reduction targets, while sites withless potential impact set continuous improvementtargets. In this way each operation has improvementtargets that should result in GlaxoSmithKline’sachieving the overall company targets.

In 2003, GlaxoSmithKline implemented a process toreconfirm site commitment to the 2005 targets theyset in 2001. We also conducted workshops in whichsites shared projects and practices they hadimplemented to reduce their impacts on theenvironment. This sharing of best practices will help maintain our progress toward achieving our 2005 targets.

Planning (cont.)

17

Targets (cont.)

Planning (cont.)

Progress Towards Targets

18

Organisation

GlaxoSmithKline has several groups that identifygovernance and ethical issues, recommend ways to manage them and periodically review themanagement of the issues. Environment, Health and Safety (EHS) issues are among those reviewedand addressed by these groups.

The Risk Oversight and Compliance Council (ROCC) is responsible for coordinating the internal controland risk management activities of the company. EHS is identified as one of the areas of the businessthat has the potential for serious adverseconsequences if not managed properly.

The Corporate Executive Team (CET) actively managesEHS issues. JP Garnier has identified himself as thechampion of environment, health and safety for boththe CET and the Board. He ensures that EHS issuesare regularly debated to verify that we are pursuingresponsible programmes for all operations. The VicePresident, Corporate Environment, Health and Safetyreports at least annually to the CET on EHS issues.

The Board of Directors has two committees thatevaluate the management and effectiveness of ourEHS programme. These mechanisms for review andoversight provide opportunities for environment,health and safety issues to be considered at thehighest level of the organisation.

The Audit Committee of the Board reviews EHS performance to confirm that issues areproperly managed and controlled. The VicePresident, Corporate Environment, Health andSafety makes regular presentations to the AuditCommittee so that they can review measures ofenvironment, health and safety performance andtrack our progress toward meeting EHS targets.They also review the results of EHS audits ofGlaxoSmithKline operations, contractmanufacturers and key suppliers. The level ofscrutiny of the Audit Committee is in line withrequirements of Sarbanes-Oxley.

The Corporate Responsibility Committee advisesthe Board on social, ethical and environmentalissues that have the potential to seriously impactGlaxoSmithKline’s business and reputation. The Vice President, Corporate Environment,Health and Safety provides reports to thecommittee on aspects of EHS, such assustainability, that have social implications above strict regulatory compliance.

Organisation

19

Corporate Environment, Health and SafetyOrganisation

The Corporate Environment, Health and Safetydepartment reports directly to GlaxoSmithKline’sGeneral Counsel, Rupert Bondy, and has a dotted line reporting relationship to the President of GlobalManufacturing and Supply, the GSK manufacturingorganisation. This places the Vice President,Corporate Environment, Health and Safety on boththe Legal Management Team and the GlobalManufacturing and Supply Executive Team illustratingthe emphasis placed on EHS in GlaxoSmithKline.

The EHS Strategy and Advocacy team coordinatesthe EHS Plan for Excellence, the strategic approach to environment, health and safety that will enableGlaxoSmithKline to achieve its EHS aspirations. This includes overseeing stakeholder engagement and working with external partner organisations onEHS. The team also identifies emerging issues andworks with government and regulatory bodies to influence the development of regulations.

The EHS Product Stewardship team promotes the ethical management of environment, health andsafety throughout the life cycles of GlaxoSmithKlineproducts. This group develops, implements andsupports key programmes in occupational hygiene,process safety and environmental controls to ensureadequate protection of people, property and theenvironment. It also champions sustainable EHSpractices and works with research and developmentand the New Product Supply organisation to identifypotential EHS life cycle issues

Organisation (cont.)

CEHS Vision: To be the undisputed leader in

EHS in the pharmaceuticalindustry, contributing tosustainable, competitivebusiness advantage for

GlaxoSmithKline

CEHS Mission:In order to achieve its vision,

CEHS will provide:

• Leadership for theintegrated, global effortwithin GlaxoSmithKline onkey EHS issues;

• Governance of EHS performance;

• Support forGlaxoSmithKlinebusinesses with tools,technology, informationand knowledge;

• Innovation and continuousimprovement for unifiedEHS systems andapproaches.

20

Corporate Environment, Health and SafetyOrganisation (cont.)

early in the development process. Once the teamassesses EHS issues, it recommends measures toprovides technical information and guidance andmitigate, control, and manage EHS risks. The teamprovides technical information and guidance andrecommends to research and development strategiesfor developing manufacturing processes that useresources efficiently and that minimise emissions. Andit helps by developing and promoting innovativetools, systems and methodologies.

The Hazard Assessment and Communicationteam assesses and communicates environment,health and safety hazards associated withmanufacture, distribution and disposal ofGlaxoSmithKline materials and products. This teamfocuses on materials for research and development in the Pharmaceuticals, Biologicals and ConsumerHealthcare businesses and especially on all newproducts. Its task is to provide information that willsupport safe and effective controls for protection ofemployees and the environment. In 2003, it placed a major emphasis on identifying and filling gaps inhazard information resulting from merger-relatedtransfers of products within the manufacturingnetwork. By doing this it was able to ensure theavailability of consistent, high-quality hazardinformation for all GlaxoSmithKline materials.

The newly formed EHS Commercial Support teamextends the traditional work of CEHS beyondresearch and development and manufacturing into GlaxoSmithKline’s Commercial businesses. Themission of the team is to add value to Commercialoperations by improving their effectiveness throughreducing EHS risks. The team is committed to buildingand strengthening relationships and understandingthe business and EHS needs of the Commercialgroups. The team’s aim is to become a strategicbusiness partner through providing appropriate andrelevant programmes and services and thereby assistthis business sector in improving EHS performance.

The EHS Global Audit team delivers an internalaudit programme, in collaboration with EmployeeHealth Management, for all manufacturing, researchand development and key office and warehouselocations. It also manages a number of strategicprojects. In addition, this team performs risk-basedassessments of key contract manufacturers andsuppliers and EHS due diligence assessments foracquisitions and divestitures. In all cases the aim is to ensure that EHS risks and impacts are managedeffectively and to identify opportunities to reducerisks and contribute to continuous improvement.

The EHS Reporting team collects and analyses datafrom all operations for reporting to internal andexternal stakeholders. It evaluates data contributed byall operations and uses the information to assess theeffectiveness of EHS programmes and drivecontinuous improvement. The team also provides EHSinformation management software that can be usedto manage EHS programmes and measureimprovement and progress to targets. In addition, itmanages EHS reward, recognition and awarenessprogrammes that are the parts of the overallGlaxoSmithKline EHS Framework devoted tomotivating employees, raising awareness and drivingcontinuous improvement.

The Research and Development EHS Groupreports with a dotted line to the VP CorporateEnvironment, Health and Safety group. This groupfacilitates integration of EHS into the agenda of theresearch and development sector of the business andsupports a unified and consistent approach to EHSacross the company.


21

Employee Health Management Organisation

Employee Health Management (EHM) reports through the Human Resources organisation. Theywork closely with Corporate Environment, Health and Safety (CEHS) and the two groups are connected organisationally: the Global HealthStrategy and Governance group within EHM reportson a dotted line to the Vice President of CEHS. Thetwo groups collaborate on audits, on health andsafety programmes and initiatives, and on injury andillness reporting. Employee Health Management isstructured as a shared service within the US and UKand as an above site, global function. There are fourteams, members of which are based in the US and UK:

The Global Health Strategy and Governanceteam develops employee health-related policies,standards, guidance and tools and reviews theirimplementation through audits conducted incollaboration with CEHS. The team supportsGlaxoSmithKline sites around the world to achievecompany standards, protect the health of theiremployees, and optimise health-related productivity. It recruits, coaches and trains a global network ofemployee health professionals. It also develops andimplements best practice programmes and initiatives.In partnership with CEHS, this team collects,validates, analyses and reports employee health datafrom all operations to facilitate evidence-baseddecision making.

US and UK EHM Shared Service teams, work withmanagement, Corporate and site environment, healthand safety professionals, and Human Resources tomanage health risks associated with business activityin the US and UK. They maximise employeeproductivity by protecting and restoring health and by minimising health-related absence from work.They work in partnership with Benefits andOrganisational Development departments to supportorganisational productivity by promoting resilienceand advising managers when health has impacts on employee performance.

The Planning and Effectiveness team focuses on two key areas: EHM process innovation andcommunications, including system optimisation andthe use of technology. It reviews EHM processes andtheir use of information systems to streamline workand enhance effectiveness. The team collects health-related data to support interventions that minimisehealth-related expenditure and optimise humanperformance. This team uses GlaxoSmithKline’sintranet to deliver innovative and cost-effectiveemployee health management, for example the team resilience process that includes assessment tools and resources to assist managers in building healthy,resilient teams. In 2004 this team will launch anEmployee Health Community web site that willenable health professionals from around the world to network and share procedures and best practices.


22

Partner Organisations

GlaxoSmithKline has established functional andreporting relationships for Corporate Environment,Health and Safety (CEHS) and Employee HealthManagement (EHM) to encourage the integration of EHS throughout its business.

R&D Chemical DevelopmentBy using more focused and data-driven development,GlaxoSmithKline can significantly improve efficiencyof new processes. This will make the transfer ofprocesses to manufacturing more streamlined andgive GlaxoSmithKline a competitive advantage. CEHSsupports the Strategic Technologies group withinChemical Development by providing supportingdocumentation and tools.

New Product SupplyTo promote the use of safer and moreenvironmentally benign processes, the CEHS ProductStewardship team identifies occupational hazards andrisks and environmental aspects of specific chemicalsand processes so that research and developmentscientists and engineers can use this informationwhen selecting materials and processes for producingactive pharmaceutical ingredients.

Engineering, Technology and CapitalManagement (ETCM)ETCM ensures that our ethical and legal requirementsare incorporated into new production systems andthat capital projects are efficiently designed with EHSconsiderations built in. The alliance between ETCMand CEHS facilitates development of effective andefficient processes that reduce resource consumption,minimise waste and protect employees.

QualityThe Quality organisation is a natural partner for CEHSbecause improved quality reduces the amount of rejectedproduct, which means less waste and therefore reducedenvironmental impact. By sharing information from theiraudits of manufacturing operations, the EHS andQuality groups enhance the opportunities to improvethe quality of our products and reduce theenvironmental impact.

Operational ExcellenceThe lean sigma approach to operational excellence thateliminates unnecessary steps and reduces variability isat the heart of the GlaxoSmithKline culture. AligningEHS with Operational Excellence principles helpsGlaxoSmithKline reduce waste and protect employees.

Global Manufacturing and SupplyEHS is integral to all manufacturing operations. To ensure that EHS issues are integrated intomanufacturing decisions, the Vice President of CEHS has a dotted line reporting relationship to the President of Global Manufacturing & Supply.

Human ResourcesTo support GlaxoSmithKline employees and ensureEHS is integrated into employee management, CEHShas a close working relationship with EHM, part ofthe Corporate Human Resources organisation.

Sales and MarketingTo integrate EHS into sales and marketing activities,the CEHS Commercial Support team works to expandEHS programmes, such as driver safety and officesafety, into this area of the business.

Corporate CommunicationsCEHS integrates EHS messages with corporate messagesto build environment, health and safety into theGlaxoSmithKline culture. We contribute to theCorporate Responsibility report and to policystatements on environment, health and safety issues.


GlaxoSmithKline R&D Chemical Developmentcreated a green alternative to metal-mediated ringcyclisations used to perform transformations. Thenew alternative uses photochemically induced singleelectron transfer. The photochemical reactorconsists of several chambers housing UV lamps withnumerous safety interlocks. It has been demonstratedon a pilot scale to prepare an intermediate inmulti-kilogram quantities. This project tied for thirdplace honours in Green Chemistry/Technology inthe 2003 CEO’s EHS Excellence Awards.

Photochemistry - A Brighter Future

23

Global EHS Standards Supporting GlaxoSmithKline’s Environment, Healthand Safety and Employee Health policies is acomprehensive set of 64 Global EHS Standards thatestablish specific requirements for the companyworldwide. The Standards establish a managementsystem approach to legal compliance, continuousimprovement and the management of key EHS-related business risks. They are consistent withinternationally recognised management systemstandards, such as ISO 14001 and OHSAS 18001. The Standards were developed in consultation withinternal stakeholders, and approved by J P Garnier, in 2001 and came into effect on 1st January 2002.

EHS GuidelinesEHS Guidelines are key components ofGlaxoSmithKline’s EHS Framework. They support the Global EHS Standards by providing furtherinformation on the requirements of the Standardsand by setting out an approach for achievingcompliance that has been approved by EHS andEmployee Health functions. They incorporate existinggood practice, from both within and outsideGlaxoSmithKline. Guidelines for all Standards were completed during 2003.

Supporting Technical Information A wide range of information is available on theintranet to supplement the EHS Guidelines. Thisincludes technical information, training materials and EHS guides to business processes.

Management Systems


Leadership and Management

Leadership and Excellence Management System Elements Product Stewardship Sustainable Development

General EHS Programmes

Employee Health and

EHS Services

EHS RiskAssessment

andManagement

Employee and ExternalStakeholderInvolvement

andCommunication

EmergencyPlanning and

Response

EmployeeInformationand Training

OperationalControl

PerformanceMonitoring and

Reporting

Investigationand Reporting

of EHS Adverse Events

Audit

Business Processes

New ProductDevelopment and Supply

Facility,Engineeringand Process

ChangeProcurement Contract

Manufacturers Key SuppliersLoss

Prevention of Business-

critical Assets

BusinessContinuityPlanning

Business,Product and

PropertyTransactions

Employee Health Hazardous ActivitiesEnvironmental Risks

Food Services and Drinking Water

Ergonomics and theWorkplace Environment

Health Surveillance

Health and SafetyEnhancement

Resilience and Mental Well-being

Reproductive Health

Absence andRehabilitation

Workplace Smoking

Drugs and Alcohol in the Workplace

Waste Minimisation and Recycling

Energy Efficiency

Packaging of Productsand Environmental

Claims

Product Returns

Waste Management

Water Management

Management of Emissions to Air

Ozone-depletingSubstances

Biodiversity

Soil and GroundwaterQuality

Process Risk Management

Transportation of Materials and Products

Occupational Travel

Use of Work Equipment

Use of Personal Protective Equipment

Permit-to-work Systems

Working at Height and Fall Protection

Storage of Materials

Contractors and Visitors

Workplace Transport

Off-site Working

Construction andDemolition

Hazardous Agents

Material HazardIdentification andCommunication

Occupational and Environmental

Exposure Limits

Chemical Agents

Sensitising Agents

Biological Agents

Fire

Flammable Liquids and Gases and

Combustible Dusts

Electricity

Noise

Ionising Radiation

Non-ionising Radiation

Asbestos and Polychlorinated Biphenyls

24

Business Processes

Capital and Procurement The Capital Project Technical Review process wassuccessfully launched in 2003. The process ensuresthat GlaxoSmithKline considers environment, health,safety, security and loss prevention in the design ofnew facilities and processes. By identifyingenvironment, health and safety (EHS) issues early in aproject, we can engineer facilities and processes thatare efficient and safe for workers and theenvironment while still being cost effective.

As GlaxoSmithKline standardises and streamlines itsprocurement systems, the purchasing department isbuilding EHS considerations into their processes sothat all new equipment meets EHS specifications. Thisis particularly critical in areas such as containment,noise control, ergonomics, machine guarding andenergy management. We have developed checklistsand other tools to assist engineers and EHS personnelwith evaluating hazards and risks of capital projectsto make sure that completed projects are safe andenvironmentally sound. Additional tools are plannedfor 2004.

New Product Development and SupplyA business process called the EHS Milestone AlignedProcess (EHS MAP) has been created to help scientistsidentify and pro-actively address EHS issues duringroutine new product development and supplyactivities. Initiated in 2002, it has undergoneextensive review and revisions in 2003 by Corporate,research and development and manufacturing EHSprofessionals, and the key business stakeholders whowould be primarily responsible for carrying out EHSMAP activities. EHS MAP will be fully implementedand integrated into GlaxoSmithKline’s new productdevelopment and supply processes in 2004.

EHS MAP should help ensure that:

• There is a better understanding andappreciation of EHS activities that should be conducted throughout a product’s life-cycle;

• New products and processes are developed that do not harm people,property or the environment;

• Best practice is implemented throughoutthe GlaxoSmithKline network;

• Staff are engaged and committed tomaking EHS integral to new productdevelopment and supply.

As GlaxoSmithKline translates its high potentialresearch and development pipeline into newproducts, we believe EHS MAP will help identifyopportunities, such as improvements in processefficiencies and elimination of waste, that willultimately facilitate and speed up the new productdevelopment and supply process.

Contract Manufacturers and Key SuppliersGlaxoSmithKline uses contract manufacturers in anumber of countries to supply certain products for local markets, some intermediates and activepharmaceutical ingredients and, in a few cases, forspecialist processes or technology. Initial agreementsfor new contract manufacturers include EHSrequirements based on the applicable standards. As existing contract manufacturers renew theiragreements, GlaxoSmithKline’s EHS requirements are included.

To ensure that these companies are managing EHSrisks and impacts responsibly, the internal EHS auditteam conducts audits to assess conformance withGlaxoSmithKline requirements and with legislation. Inaddition, they conduct a programme of assessmentsof identified key suppliers. Areas for improvement arehighlighted to the contract manufacturer or keysupplier and progress is monitored.

Programmes

25

Business Processes (cont.)

In 2003, 28 key contract manufacturers and supplierswere assessed. EHS performance was generallyacceptable and good in a number of cases; someexceptions were identified and are being followed up.The overall EHS Third Party Management Process wasdefined in 2003. It covers all EHS aspects related toselection through to the ongoing management ofcontract manufacturers and key suppliers. We alsocollected EHS data from seven key contractmanufacturers and suppliers.

Safe Transport of Materials Research and manufacture of pharmaceuticalsinvolves transporting various chemical, biological andradioactive materials and products around the world.To ensure compliance with national and internationaltransportation laws and conventions and to safeguardemployees, the public and the environment,GlaxoSmithKline employs site-based transport safetyadvisors and specialists in business units thattransport materials. Over 200 advisors in 40 countriestake part in a global network that supportscontinuous improvement by sharing technical andregulatory information, best practices and lessons learned.

In 2003, GSK developed a centralized material hazardinformation and classification system. The HazClass®

System is designed to provide GlaxoSmithKline siteswith uniform, standardised hazard information forworld-wide transportation of dangerous goods.System implementation began in 2003 and isprojected for completion by mid-2004.

Emergency Response and Crisis ManagementThe discovery, development and manufacture ofpharmaceutical and consumer products involve the use of hazardous materials and processes.GlaxoSmithKline manages the risks associated with these materials and processes using soundengineering principles and robust EHS programmes.All sites also incorporate emergency response and crisis management programmes into their

management plans. These programmes ensure thataccidents would be effectively managed and that anyimpact on the site, community, environment, orbusiness would be minimised.

During 2003 all manufacturing sites participated in an internal emergency response evaluation andimprovement cycle. Each site evaluates its internalemergency response programmes as well as thetechnical capabilities of the community emergencyresponse organisations. Action plans were developedto address all areas needing improvement.

Acquisitions and DivestituresAs part of business due diligence, GlaxoSmithKlineemploys an EHS due diligence business process toensure that EHS aspects are fully assessed andintegrated into decision making and the resultingprovisions of contracts for transactions. A number of assessments were conducted during 2003.

Programmes (cont.)

26

Hazard Assessment and Communication

GlaxoSmithKline assesses environment, health andsafety (EHS) hazards associated with the research,development and manufacture of our products inorder to meet ethical and regulatory requirementsand to ensure the workplace is safe and theenvironment unharmed.

Hazard TestingIn 2003, we gave priority and applied significantefforts to identify gaps in core EHS hazardinformation for materials used in existing processes.This included information related to flammability, dustexplosivity, possible adverse health effects,occupational hygiene analytical methods andenvironmental fate and effects. The number of testsconducted and the sample throughput at our testingfacility increased by over 88%. Data gaps for mostpriority GlaxoSmithKline materials were closed.

Our in-house hazard determination laboratory (HDL)conducts tests for flammability and dust explosivityproperties of materials handled within research anddevelopment and manufacturing facilities. A newtest, Sustained Combustibility, was added to the listof studies currently available from the HDL. This testenables us to provide flammability data forGlaxoSmithKline products enabling more accurateclassification of these products for transportation.This new addition ensures that we meet currentregulations for transport, and in some cases, itprovides a cost saving when the handlingrequirements for the known hazards are not as costlyas the handling requirements for unknown hazards.

We continued to refine and use innovative in-housetesting and a sequential, tiered approach to assessoccupational health hazards for GlaxoSmithKlinematerials. This approach rapidly identifies indicatorsof potential hazard for chemicals at early stages ofproduct development and reduces the number ofanimals required for each assessment. Extensiveenvironmental hazard information was developed forexisting materials and these data will be extremely

useful to assess potential environmental impacts ofGlaxoSmithKline products and processes.

Efforts in 2004 will focus on new pharmaceuticals inresearch and development and supporting Europeanmanufacturing processes affected by theimplementation of the EU regulations applicable to explosive atmospheres (Directive 99/92/EC, ATEX 137).

Occupational and Environmental Exposure LimitsGlaxoSmithKline develops occupational andenvironmental exposure limits for our materials inorder to guide the design and selection of chemicalcontrol systems to protect our employees’ health andthe environment. During 2003, our expertsestablished new occupational exposure limits for fifty materials and completed innovative approachesfor the rapid development of data-driven environmental limits.

Distribution of EHS Hazard Information onGlaxoSmithKline MaterialsGlaxoSmithKline uses a global intranet system calledMSDS@gsk to provide EHS hazard information in aunified format to all operations. This system providesmaterial safety data sheets (MSDS) and relatedinformation for GlaxoSmithKline materials andproducts and for key manufacturing and processchemicals. The information, available in English,French, German, Italian, Portuguese and Spanish, isupdated regularly with new information available tothe company worldwide by the day after the update.In 2003 the MSDS data integration project wascompleted which saw over 4,000 documents fromthe heritage companies converted to theGlaxoSmithKline format or archived. Of these, over1,000 are now available throughout the company asMSDS for GlaxoSmithKline pharmaceutical andconsumer healthcare products sold in a number ofkey markets worldwide. For US-marketed products,the approximately 300 MSDS are also available on an external website for direct access by externalcustomers.

Programmes (cont.)

27

Environmental Programmes

Air GlaxoSmithKline identifies, characterises and assessesemissions to the air from our operations so that wecan minimise or manage them in a way thateliminates adverse impact to the public or theenvironment. As part of our programme to reduce air emissions, especially greenhouse gases,GlaxoSmithKline is planning the installation of wind turbines at two of our manufacturing sites. Inaddition to reducing greenhouse gas, these turbineswill have the benefit of generating renewable energy for our operations.

We have achieved significant reductions in solventreleases through reformulation of final dosage formsusing water-based technologies. Our emission ofvolatile organic compounds declined over 9% on aper unit sales basis compared to our 2001 baseline.During the same time period, emission of all ozonedepleting compounds (reported as CFC-11equivalents) was reduced by over 60% on a per unit sales basis.

Read about our air emission performance on page 65.

Programmes (cont.)

GlaxoSmithKline developed Tranilast as an in-licensed compound from KisseiPharmaceuticals of Japan. R&D Chemical Development, in conjunction withmanufacturing, refined the production process inherited from Kissei. They wereable to make significant improvements across the entire synthetic route as wellas in the technology transfer process, and reduce the environmental impact. Inaddition, the research and development and manufacturing organisations andthe Irish Environmental Authorities worked together to effectively manage thechloroform used in the re-crystallisation step of the improved process. Byemploying an amylene stabiliser in the chloroform rather than the usual ethanol,a recycling process with better than 90% overall recovery efficiency ofchloroform was attained. This exceeded the compliance benchmark set by theIrish Environmental Authorities without compromising the drug substancequality. This project received second place honours in GreenChemistry/Technology in the 2003 CEO’s EHS Excellence Awards.

Tranilast: Improved Production Process

28

Environmental Programmes (cont.)

Wastewater GlaxoSmithKline is committed to ensuring thatdischarges to the environment are kept to levels thatavoid adverse impact and conserve resources. Wehave developed detailed guidance to support the EHS Standard that addresses wastewatermanagement and have a target to reduce chemicaloxygen demand, a measure of water pollution. In2003, we achieved 16% reduction in the amount ofchemical oxygen demand (COD) discharged on a perunit sales basis as compared to our 2001 baseline.

Read about our wastewater performance on page 89.

Programmes (cont.)

Research Triangle Park (RTP) is a 7,000 acre research park in the United Statesowned by the private, not-for-profit, RTP Foundation. The GlaxoSmithKline facilitylocated in RTP led a committee of other RTP owners and tenants to address theissue of mercury in wastewater. Participants included representatives from severallocal and state organisations and several environmental consulting firms.GlaxoSmithKline also led in developing a database of commercial products used insuch things as wastewater treatment, housekeeping, sterilisation, etc. Theinformation on mercury content in the database helps companies to selectproducts that will minimise mercury contribution. GlaxoSmithKline RTP alsocoordinated two seminars: one on potential impacts of mercury on wastewaterand another on initiatives a company could take to minimise its mercurycontribution. This project received third place honours in the EHS CommunityPartnership category in the 2003 CEO’s EHS Excellence Awards.

Leadership on Reduction of Mercury Contribution to Area Surface Water

29


WasteGlaxoSmithKline has targets to reduce the impact of waste from our operation on the environment.Technical guidance had been developed for our EHSstandards on Waste Minimisation and Recycling andon Waste Management. Sites identify and assesswaste arising from site activities and then minimise or manage waste through the following measures:

• Eliminate or reduce waste generationwhenever feasible;

• Substitute with sustainable materialswhenever feasible to minimise overallimpacts on air, water and land;

• Re-use waste whenever feasible;

• Recycle wastes in a manner consistent with local regulatory requirements;

• Use treatment and disposal options thatminimise the overall EHS risks and impactson air, water and land.

GlaxoSmithKline sites are implementing thesemeasures as demonstrated by waste managementresults in 2003 in comparison to the 2001 baseline.Hazardous waste disposal was down 8% on a perunit sales basis, non-hazardous waste disposal wasdown 22% on a per unit sales basis althoughimprovements in recycling did not contribute to this improvement.

GlaxoSmithKline has established a steering team to ensure effective management of waste. Effortshave been based in the UK and Ireland thus far and there has been a significant shift from hightemperature incineration of waste solvents towards beneficial reuse.

Read about our waste performance on page 89.

Programmes (cont.)

GlaxoSmithKline Consumer Healthcare, India is involved in the manufacture of malted food drinks and consumer products such as Horlicks, Boost, Maltova, Viva Biscuits, the antacid ENO and Aquafresh toothbrushes. There are threemanufacturing sites Nabha, Rajahmundry and Sonepat as well as ten contractmanufacturing sites located in different parts of the country. Solid wastesgenerated at the shop floor, warehouses and canteens at Nabha andRajahmundry, were burned in incinerators fuelled by diesel and electricity. This depleted natural resources and contributed to pollution and global warming.The cost of operation was also very high. In looking for a solution, a project teamidentified composting as an environment-friendly method of disposal forbiodegradable solid wastes. Nabha carried out a number of trial compostingschemes until a viable bio-composting process was established. It was put intoplace at both Nabha and Rajahmundry sites. Nabha currently composts 300 kg of waste daily, Rajahmundry 100 kg. The programme is being extended toSonepat, India, and contract manufacturing sites in India where similar wastes are generated. This project received second place honours in the EHS Initiativecategory in the 2003 CEO’s EHS Excellence Awards.

Bio-composting of Solid Waste

30


Natural Resources GlaxoSmithKline strives to reduce natural resourceconsumption by our operations to minimise impacton the environment. We have adopted globalstandards on Sustainable Development, EnergyEfficiency, Water Management and Biodiversity to ensure the sustainability of our operations. The Corporate Environment, Health and Safetydepartment works with Procurement, EngineeringTechnology and Capital Management and othercorporate functions as well as the operational sites to identify and implement natural resource

conservation projects. CEHS has developed an Energy Management Audit Protocol to assess energy conservation at operational sites. Energymanagement tools such as a model energymanagement programme for sites have also beendeveloped. In 2003, GlaxoSmithKline consumedalmost 9% less energy worldwide on a per unit salesbasis than in 2001. Water consumption was reducedby almost 17% on a per unit sales basis during thatsame time period.

Read about our water usage on page 63.Read about our energy usage on page 61.

Programmes (cont.)

The GlaxoSmithKline plant in Rajahmundry, India, manufactures Horlicks andChocolate Horlicks, a malted food under the nutritional healthcare category. At this site a cross-functional team identified opportunities to reduce waterconsumption and effluent generation. They successfully reduced waterconsumption by 40% in one year by optimising the number of water taps,reducing the size of water pipelines, inspecting for leaks daily, using self/gravityclosing cocks on valves, using cooling tower water for vacuum pump seals andincreasing the steam condensate recovery to 95%. They also reduced effluentgeneration by 38% in the same time. In addition, they installed a turbo-generator,which generates more than 30% of the electricity required by the plant, bymaking use of steam that had previously been lost through pressure reductionvalves. The new generator resulted in annual savings of around £144,000 GBP.This project received first place honours in the EHS Initiative category in the 2003 CEO’s EHS Excellence Awards.

Resource Reduction: Water Conservation, Effluent Reduction and Turbo Generator

31

EHS Programmes in GlaxoSmithKline Commercial

Although sales and marketing and office-basedactivities are perceived as having fewer EHS hazardsand risks than research and development ormanufacturing, the commercial organisation’s 2003lost time injury and illness rate of 0.33 lost timeinjuries and illnesses per 100,000 hours worked isgreater than most groups within our manufacturingorganisation. The key health and safety risks thatmust be managed in a commercial setting are driversafety, emergency planning (especially fire and firstaid), ergonomics, mental well-being and resilience and accident investigation and reporting. Theenvironmental issues most relevant to Commercial are the proper management of energy and waste andthe design and labelling of products and packaging.Programmes are being developed to help thecommercial businesses implement appropriate EHSprogrammes. As a minimum we expect them to havea written environment, health and safety policy andto have documented and assigned responsibilities forimplementing the policy.

Driver SafetySales representatives can be at risk especially fromroad traffic accidents, and ergonomic stressors suchas manual handling. Our 2003 data shows 21% ofthe lost time injuries are due to motor vehicleaccidents, making them one of the main causes oflost time injuries in the company. In addition, four ofthe five employee fatalities that occurred in 2003were from motor vehicle accidents. Therefore,reducing the number of motor vehicle accidents incommercial operations is one of our key priorities andthe aim of GlaxoSmithKline’s driver safety programmeis to reduce fatalities, injuries and illnesses to driversdriving on company business. Our Driver Safetyprogramme focuses on three key elements, thedriver, the vehicle and the managementprocesses in place to manage the driver and vehicles.

In GlaxoSmithKline the driver is expected tohelp reduce the risk of road traffic accidents byavoiding, where possible, the need to drive byusing alternative options such as video orteleconferencing. In addition, the driver andpassengers must wear seat belts and the drivermust not drive if under the influence of alcohol,

drugs or medication, nor when fatigued. Thedriver must not use a hand-held mobile phonewhile driving and should minimise the use of ahands-free phone.

GlaxoSmithKline’s vehicles must be selected toavoid back, posture or other ergonomic injury orillness and must be in safe working order.

We expect management processes to beimplemented to ensure that anyone driving oncompany business has been approved to do soand is medically fit to drive. For instance, pre-employment screening includes a review ofmotor vehicle driving license and penalty pointsor violations (driver history). All accidents mustbe reported, documented, appropriatelyinvestigated and corrective actions implemented.Performance is monitored and feedback is given to drivers.

A number of businesses across GlaxoSmithKline havesuccessfully implemented safe driving programmes.For instance, in the Philippines, we require all salesrepresentatives to attend defensive driving coursesand undertake both written safe driving and practicaldriving examinations. These examinations are inaddition to national requirements. Employees mayhave their vehicle benefits suspended if theydemonstrate unsafe or discourteous drivingbehaviours or have poor accident records.GlaxoSmithKline in Poland and the United Statesoperate driver incentive schemes whereby employeeswith good accident records receive a range of awardsand drivers with poor accident records are penalised.

Driving and the EnvironmentIt is estimated that GlaxoSmithKline has over 32,000vehicles across the globe and each year spends over£165 million on purchasing, replacing, repairing,insuring, maintaining, leasing, renting and fuellingvehicles. We buy over 5,000 tyres per year in the UKalone, which equates to about 50,000 tyres per yearacross GlaxoSmithKline as a whole. Our estimatedannual fuel bill for vehicles is about £30 million andwe use over 20 million litres of fuel in Europe, whichmeans our European drivers drove over 140 millionmiles or 5,600 times around the world in 2003. Inaddition, we spend about £10 million repairing ourown vehicles and paying for third party repairs.

Programmes (cont.)

The GlaxoSmithKline site at Cork, Ireland, is a strategic manufacturing plant thatproduces a range of bulk active ingredients for use in the formulation ofprescription drugs. Management at the Cork site identified behavioural safety asthe best way to develop their site safety programme. They formed and trained asteering committee and the group developed an inventory of critical behavioursfor Cork, named the programme (OWLS—Observations in the Workplace Leadingto Safety) and began communicating to all employees. Formal observationsresulted in action plans to change at-risk behaviours. The benefits weresubstantial and far reaching and the OWLS programme is ahead of legalrequirements. In taking ownership, employees have demonstrated enthusiasm andinitiative, developed training, observation and presentation skills, and a proactiveapproach to safety. Most importantly, the corner stone of the success and impactof the OWLS process is employee participation. This project tied for third placehonours in the EHS Initiative category in the 2003 CEO’s EHS Excellence Awards.

Observations in the Workplace Leading to Safety - OWLS

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Ergonomics

At GlaxoSmithKline, work related ergonomic illnesseshave decreased over the last three years. Even withimprovements in reporting, there has been anencouraging decline in both the absolute number and proportion of total illnesses that are related toergonomics. For example, ergonomic-related illnessesaccounted for 42% of the total in 2001, declining to25% in 2003. Nonetheless, ergonomics remains oneof the top two causes of occupational illness atGlaxoSmithKline. Sustained focus and improvementin ergonomic risk control will help operations meetthe global objective of a 15% annual reduction inlost time injury and illness rate.

Reducing ergonomic illness and injury was an area of focus for 2003 and will continue to be emphasisedin 2004. An EHS guideline and supporting tools havebeen developed, providing a preferred approach toprevent and manage ergonomic risks. During 2003CEHS aligned our approach to workplace ergonomicswith Operational Excellence (OE) in recognition of thefact that improved workplace ergonomics oftentranslates to operational improvements and costsavings. Sites progressed successful local initiatives

and continued to roll out these programmes during2003. To support the education and training initiative,a one-day training programme was conductedglobally as part of the 2003 regional meetings of the network of EHS professionals.

In 2004 GlaxoSmithKline will further raise the focuson ergonomic improvements through OperationalExcellence initiatives, business objectives, localconsultation, site audits and global training. Otherkey initiatives for 2004 include a programme tocollect and share “Good Ergonomic Practice” anddeployment of Office Ergonomics Self-Assessmentweb-based tools in five languages. These efforts havecombined to reduce the impact of ergonomic illnessand will form the focus of our continuedprogrammes.

Programmes (cont.)

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Ergonomics (cont.)

We also recognise that non-occupational ergonomicand musculoskeletal issues impact the productivity ofthe workforce. Among active employees, one of themost significant causes of personal sickness absenceand contributors to total health care costs is non-workplace musculoskeletal illnesses. In the US andUK, our two largest markets, non-occupationalmusculoskeletal injury and illness are the leadingcauses of sickness absence. In alignment with ourworkplace ergonomics programmes, we areaddressing the management of non-workplace illness and promoting fitness in our workforce. This effort includes wellness programmes, proactiverehabilitation, workplace adaptation and changingbehaviours and beliefs of employees and theirmedical providers. Tools to assist sites with managingthese issues will be produced during 2004.

Occupational Hygiene and Control of Chemical Agents

GlaxoSmithKline has one of the best pipelines in theindustry. This pipeline brings challenges in the form of more potent compounds with lower occupationalexposure levels (OELs) and increased manufacturingcomplexity. GlaxoSmithKline is addressing thesechallenges by focusing on new production andcontainment technology and has a 2010 aspiration toachieve a ‘shirt sleeve’ workplace. This is a workplacewhere containment of chemicals during manufacturereplaces the need for personal protective equipment.We have several examples of achieving this goal already.

In 2003, many of our occupational illnesses and injuries resulted from chemical exposures.Approximately 36% of occupational illnesses resultedfrom chemical exposures, the majority of which weredue to chemical-related non-allergic dermatitis, whichincludes irritant dermatitis and steroid withdrawalrash. Interestingly, 8% of occupational illnesses (latexglove allergy and irritant dermatitis) were directlyrelated to the personal protective equipment utilisedto protect employees from chemical exposures. Twoadditional categories of illness related to chemicalexposure merit special notice: allergic dermatitis andallergic respiratory disease, which together accountfor 9% of all occupational illness. These illnessesremain a special area of focus as they result in lifelong health effects. The primary causes of allergicdermatitis and respiratory disease continued to bechemicals, laboratory animals and latex. Sustainedimprovements in chemical agent control will helpoperations meet the objective of a 15% annualreduction in the lost time injury and illness rate.

Programmes (cont.)

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Occupational Hygiene and Control of Chemical Agents (cont.)

Managing chemical exposures was a key focus forGlaxoSmithKline for 2003 and will continue to be in2004. To support this focus, we set objectives,established a Chemical Agents Steering Committee(CASC) and made tools available. One objective wasto assess worker exposures to high hazardcompounds at primary and secondary manufacturingfacilities. The results of the assessment surveys havebeen presented to senior management and actionsare being developed to make improvements whereneeded. To raise the skill level for managing risksassociated with chemical handling, we held two five-day Chemical Agents workshops, one in Singaporeand one in Spain. Fifty-nine delegates representing 38 sites and several business functions such asQuality, R&D, Employee Health Management andEngineering attended the workshop. In addition aone-day training programme was conducted as partof the 2003 regional meeting of the network ofGlaxoSmithKline EHS professionals. Other toolsdeployed in 2004 were the Chemical AgentsTechnical Information document, a Chemical Agentsweb page and standardised methodology fordeveloping occupational hygiene sampling andanalytical methods. We have a system for capturingbest practice using engineering design kits andsharing this on our intranet.

Work Related Mental Illness

GlaxoSmithKline proactively identifies and manageschallenges to employee resilience and mental well-being to ensure business success through the effortsof our people. As recognition of this achievement,GlaxoSmithKline received the UK Health and SafetyExecutive’s Award as a 2003 Beacon of Excellence inStress Prevention. This award was a reflection of topmanagement commitment, the excellence ofcompany stress prevention programmes andorganisational interventions.

While many of the immediate stressors of the mergerhave passed, the 2004 focus for GlaxoSmithKline willcontinue to be protecting and enhancing the mentalhealth of employees by fully implementing therequirements of the Global Resilience and MentalWell-being Standard. This effort includes:

• Ongoing identification and assessment ofjob-related risks to mental well-beingthrough such tools as the Global Leadershipand Organisational survey, numerousbusiness initiatives, and the launch of an intranet-based team assessment tool for managers;

• Reductions in risks and promotion of thegeneral mental well-being of employeesthrough such programmes as wellnessinitiatives and mental health care support systems;

• Early recognition and treatment of illness,confidential investigation, reporting andcorrective actions to prevent recurrences.

Programmes (cont.)

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Work-related Mental Illness (cont.)

Work related mental illness is evaluated separatelyfrom other work-related illnesses and is not includedin rates or numbers in this report unless specificallynoted. As compared to 2001, work-related mentalillness dropped to the third most common cause ofoccupational illness, accounting for 13% of all illnesscases, 50% of all lost time illnesses and 2,886 lostdays of productivity. In addition, persons with workrelated mental illness had the highest case severity,with a mean of 60 days absence per case comparedto approximately 30 days per case for all otherillnesses. Of course, the impact of mental illnessextends beyond the number of days lost to directlyaffect both workplace productivity and quality of life.

In 2001 due to lack of consistency in diagnosis,investigation, reporting, and management of work-related mental illness cases globally, it was decided toreport these cases separately from key injury andillness measures. During 2002 and 2003, significantprogress has been made in improving consistency ofdata relating to mental ill-health cases and given thisprogress, it is intended to review these illnesses forinclusion in the GlaxoSmithKline lost time and otherperformance measures for 2004.

Human Immunodeficiency Virus (HIV)

GlaxoSmithKline provides HIV/AIDS healthcareprogrammes for employees. While arrangementsdiffer depending on local circumstances, all theprogrammes are based upon a set of principles that reflect current best practice and draw uponGuidelines agreed jointly by the InternationalOrganisation of Employers and UNAIDS. Included in the principles are the following:

• We do not discriminate against anyemployee based on HIV status;

• We do not require HIV testing as aprerequisite for employment;

• We provide information and training to staff on HIV and AIDS preventionappropriate to their needs;

• We ensure appropriate provision for thecare of HIV positive regular employees,their long-term partners and immediatefamilies, including access to voluntarytesting with counselling, and provision of anti-retroviral medicines;

• We maintain medical confidentiality at all times.

In addition to educating our workforce some sitessuch as the GlaxoSmithKline factory in Nairobi have extended education and support to the local community.

Programmes (cont.)

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Process Safety and Safety Engineering

Process SafetyControlling process hazards is a continuingprogramme in GlaxoSmithKline with a goal ofminimising risk through the use of expert engineeringdesign and good manufacturing processes. Manyproducts begin with the formulation and processingof hazardous materials such as flammable solventsand combustible powders. Through Green Chemistryand Green Technology programmes scientists look for opportunities to eliminate the use of thesehazardous materials

Where this substitution is not feasible our ProcessSafety Programme ensures that safety is built into theprocess. GlaxoSmithKline EHS Standards require allhazardous operations to complete Process HazardAnalysis (PHA) studies that include the identificationof hazards, the evaluation of risk and the developmentand implementation of corrective action where

needed. The Process Safety Programme is acontinuing management system that is in place forthe life cycle of every process ensuring that thehighest level of safety is maintained as the process is operated, refined and finally decommissioned.

During 2003, operations continued the integration ofthe Process Hazard Analysis System into their routineoperations. This web-based system has standardisedthe Hazard and Operability (HAZOP) methodologyacross GlaxoSmithKline and allows database accessfor the sharing of hazard information and controlstrategies. Also in 2003, a cross-functional teambegan the development of a Failure Mode and EffectsAnalysis (FMEA) system. This system will assistengineers with the development of safer processesand the ideal maintenance strategies for theseoperations. The FMEA system is scheduled to belaunched in 2004.

Programmes (cont.)

GlaxoSmithKline’s Thane factory in India is a primary manufacturing site located35 km north of Mumbai. The Thane site undertook five initiatives to mitigate risksto employees, neighbours and the environment. They made engineeringmodifications in the control system of the most hazardous exothermic reactioncarried out at site. They eliminated corrosive, toxic anhydrous hydrofluoric acid ina fluorination reaction by replacing it with aqueous hydrofluoric acid. Theyinstalled a tank to hold contaminated fire fighting water until safe disposal couldbe arranged, thus eliminating the risk of contaminating public water supplies.They replaced dry milling with a wet milling process to reduce the risk of operatorexposure to active dust and noise. They also found a creative solution to highnoise levels in air suits available for use locally. All of these initiatives resulted inbusiness benefits as well as improvements in employee morale and communityrelations. This project tied for third place honours in the EHS Initiative category inthe 2003 CEO’s EHS Excellence Awards.

EHS Risk Mitigation Initiatives

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Process Safety and Safety Engineering (cont.)

Safety EngineeringGlaxoSmithKline’s safety engineering programmefocuses on construction, plant safety and emergencyresponse activities to ensure that our employees,contractors, visitors and the community are protectedfrom the operational hazards within our facilities.Through innovative programmes such as the RiskAssessment and Control Processes, ConstructionContractor Safety Programme, Capital Project EHS Review Process and our Emergency ResponseProgrammes, we ensure that safety is built into and maintained at our sites worldwide.

A continuing process within our Safety EngineeringProgramme is the development and distribution ofsafety engineering guides and safety alerts. Theseintranet-based tools provide engineered solutions tofire, explosion, electrical, machine guarding and otheroperational risks. These guides provide a standardisedglobal approach to difficult safety risks.

GlaxoSmithKline aims to conduct an Environment,Health and Safety (EHS) audit at each operational siteonce every three years with more frequent visits forselected sites, depending on risks and issues raised byprevious audits. An EHS audit is a key element of thecontinuous improvement process and assessesimplementation and conformance with the GlobalEHS Standards and with key legislation. In 2003GlaxoSmithKline fully implemented the new EHSAudit process and scoring system to support theEnvironment, Health and Safety and OccupationalHealth professionals, who make up the EHS auditteams. These Auditors have broad EHS experienceand knowledge and are certified as lead auditorsagainst the international ISO 14001 EnvironmentalManagement standard.

In 2003, auditors assessed 27 sites and performedone audit follow-up review. They found a good levelof performance at most sites especially against manyof our environmental standards. However, aspectsrelated to employee health and handling of chemicalagents were identified for improvement. As part ofthe continuous improvement process, auditorsmonitor progress on actions arising from auditfindings. The development of a web-based tool toassist with auditing continued through 2003 and aversion is in trial. In 2004 we will complete testingthis software and will conduct a review of what willconstitute the most appropriate web solution for EHS auditing. The aim is to have fully functional EHS auditing software available on myEHS, ourintranet site, and in use in 2005.

Programmes (cont.) Audit

38

Certification of EHS Management SystemsIn 2002, CEHS began a pilot certification programmewith our manufacturing operations to determine thefeasibility of obtaining company-wide certification tothe international standards on environmentalmanagement systems (ISO 14001) and health andsafety management systems (OHSAS 18001). Underthe pilot programme, six manufacturing sitesachieved certification to international standards ISO14001 and OHSAS 18001. Following the process, theindependent registrars reviewed the EHSmanagement system, as exemplified by the EHSstandards, audit protocols, and related materials, forconformance to the principles of the ISO/OHSASstandards. Then they audited and individually certifieda selection of six volunteer sites to both standards. Asa result of the programme, there are now 18manufacturing sites within GlaxoSmithKline withmanagement system certification. Nine sites arecertified to ISO 14001 only and nine sites are certifiedto both ISO 14001 and OHSAS 18001. The certifiedsites are in Belgium, Egypt, France, Germany, India,Italy, Mexico, Spain, Turkey and the UK. We plan tocontinue certifying individual volunteer sites and work toward global certification based on a sampleof sites.

Stakeholder CommunicationWe maintain an active dialogue with our internalstakeholders, our employees and managers, to sharewith them the information necessary to integrate EHSconsiderations into all aspects of the business andtheir jobs and responsibilities. We communicate withEHS professionals at sites through meetings, email, anintranet site dedicated to EHS issues and documents.These EHS professionals review and add value to thedevelopment of the Framework, including theStandards, guidelines and tools, to the EHS Plan forExcellence, to target setting and to all aspects of theEHS programme. Most GlaxoSmithKline operationshave consultative committees to ensure employeeshave input to EHS issues, including trade unionswhere workers are unionised.

There is also an ongoing dialogue with externalstakeholders, including representatives fromgovernment, investors, customers, suppliers and non-governmental organisations. In September 2003we held a workshop to review our EHS Plan forExcellence, with particular emphasis on our plans forProducer Responsibilities, Sustainable Developmentand Corporate Reporting. Feedback was generallyvery positive on the plan that is being undertakenand on the quality of EHS reporting. The externalstakeholders expressed concern that the presence ofpharmaceuticals in the environment posed a businessrisk that should be addressed. They also consideredthat GSK should have clear policies on the use ofhazardous chemicals and on the future use of energy,and should define more clearly how it will movetowards environmental sustainability. The key issueshighlighted in the discussions have been included inour work plans for 2004. Forum for the Future hasprovided an external stakeholder’s perspective on this report.

We partner with a number of environmental NGOsfor mutual benefit. Examples include sponsoringGreen Alliance in a project to raise awareness of thelinks between environment and health, funding

Audit (cont.) Stakeholder Communication


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Earthwatch to send schoolteachers on conservationprojects in the UK, and sponsorship of the biodiversity festival “Go Wild” at the Royal BotanicGardens, Kew.

We participate in many surveys of our EHS practicesand performance for investment managementcompanies and rating organisations. The Business inthe Environment survey rated GlaxoSmithKline first inthe pharmaceutical sector for the third year rating usin the Premier League of companies with a score ofover 96%. We are included in the Dow JonesSustainability Index and in the UK FTSE 4Good Index,and we work closely with major socially responsibleinvestment groups in the UK.

In addition to the stakeholder dialogue conducted byCorporate Environment, Health and Safety on behalfof the corporation, many of our operations havecontinuing dialogue with their neighbours andcommunities through newsletters, open days andoutreach projects. There are regular contacts withregulators and local authorities with a number ofGlaxoSmithKline’s EHS specialists serving on officialcommittees and working groups to help developbetter regulations for the future.

Stakeholder Communication(cont.)

GlaxoSmithKline was the top pharmaceutical company for the third year in the2003 Business in the Environment (BiE) Index of Corporate EnvironmentalEngagement. We achieved Premier League status among the entire field of 177participating companies with a score over 96%. The Index gives us an excellentway to benchmark the results of our structured approach to managing EHS issues.

Business in the Environment’s 7th Index of Environmental Engagement

In 2003/2004, GlaxoSmithKline adopted the Carbon Trust’s Carbon Managementapproach in both the Primary Supply and Consumer Healthcare manufacturingorganisations. We benefited from Action Energy funded technical advice on HVAC(Heating Ventilation and Air Conditioning), one of the most promising areas forsavings and working with Carbon Trust we were able to accelerate the take-up of energy efficiency measures and to focus our efforts on addressing the mostenergy intensive processes.

Carbon Trust and GlaxoSmithKline Partnership

GRI Part C, Section 3.9 to 3.12Stakeholder Engagement

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Forum for the Future

Forum for the Future was asked to provide ashort commentary on the 2003 EHS report froman external stakeholder perspective, highlightingstrengths and areas for improvement. Forum forthe Future are not auditors or verifiers, however,and these comments do not represent anassessment of the veracity of any of informationprovided by GSK in this report.

“For the last few years, GSK has been the largestcompany in the UK’s global pharmaceuticals sectorand among the largest in the world. Pressure onthat sector has grown markedly during that time,and as a major player, GSK is well aware of thefact that its performance is subjected to intensivescrutiny. In those circumstances, GSK’s thoroughapproach to reporting on the challenges thecompany is facing and the steps that it is taking is to be warmly commended.

It is no surprise to Forum for the Future that thecompany’s last EHS Report won the award from the UK Association of Certified CharteredAccountants. This year’s Report builds on many of the strengths of the 2002 one. It provides adetailed but accessible insight into the company’sapproach: its policies; the governance structures,management systems and programmes it has inplace; and some of the wider issues that thecompany is addressing. The fact that the company’s reporting is mapped so transparentlyagainst the Global Reporting Initiative’s indicators ishelpful too, as is the emphasis that the companyplaces on dialogue with stakeholders to understand their concerns.

In terms of the Report itself, one of the main areasfor improvement that Forum for the Future wouldhighlight is the way in which some of the keyissues are contextualised. For report readersunfamiliar with the workings of the pharmaceuticalindustry, it is important to be able to take a stepback from the detail and get a clear sense of howthe company works and what the material impacts—positive and negative—are that it has on theenvironment and on society. The company couldperhaps also be more up front in some areas ingiving full account of stakeholder views, evenwhen they run counter to the policies and practiceof the company itself.

Of course, it is important for all of us to keep thebusiness of reporting in perspective. Reporting isnot an end in itself, but is a window on how acompany is performing in addressing its keyimpacts and in moving towards sustainability. Onthat front there is much good news at GSK. Onsome of the key targets contained in the ten-yearPlan for Excellence, the company is already aheadof schedule. Indeed, the very fact of having that ten-year plan in place is to be welcomed, settingout as it does a clear roadmap for the companyover the coming years.

Maintaining progress in this way, step byincremental step, remains critical. But GSK’s total footprint, on people and places, remainssubstantial, and it is our belief that there areopportunities to be had in terms of achievingbolder step changes. That almost certainly meansGSK will need to articulate more clearly what itmeans to be a genuinely sustainable company. The company then needs to bring its reporting together within a coherent integrating frameworkthat allows it to communicate progress towardsthat goal of being sustainable.

Stakeholder Communication(cont.)

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Forum for the Future (cont.)

What does integration mean here? So far, thecompany has built pretty powerful conceptualbridges between what it does on environmentalissues and what it does on health and safetyissues. The challenge now is to find equally usefulbridges between EHS, corporate responsibility,community engagement, animal welfare and otherkey social issues, and then to link all that with thecore business issues, shareholder value andcompetitiveness. This is a long journey, with manymilestones along the way, as this Report admirablybears out.”

Jonathon Porritt Programme DirectorForum for the Future

Forum for the Future, a UK-based charity, hasstrategic partnerships with 50 leading UK listedcompanies, working to embed management ofsustainable development. GSK and Forum for theFuture are now in the second year of a three year partnership.

Stakeholder Communication (cont.)

GRI Part C, Section 3.9 to 3.12Stakeholder Engagement

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The Chief Executive Officer’s Environment, Health andSafety (EHS) Excellence Awards Programme promotesimprovements in GlaxoSmithKline’s use of human,environmental and economic resources. It rewardsinnovation, effective over the long term, that can beshared within the company. Nominations of projectsto be considered in the programme may come fromany part of the organisation. A panel of expertsrecommends award winners from a list of finalistprojects prepared for them by a review committeeinternal to GlaxoSmithKline. The expert panel isdrawn from academia, government and non-government organisations, and has included amember of the Board of Directors. In 2003 thedirector who participated retired from the board and Sir Christopher Hogg, Chairman of the Board,will participate on the 2004 panel.

The programme makes awards in three categories.Initiatives that foster responsible use of human,environmental and economic resources with the localcommunity may be awarded an EHS CommunityPartnership Award. Programmes that demonstrateimprovements in environment or health and safetymanagement and performance may win an EHSInitiative Award. Projects that benefit environment,health and safety through new and efficientchemistry or technology may win a GreenChemistry/Green Technology Award. Each winningsite is recognised with a specially designed trophy andthe opportunity to make a donation to a charitableorganisation selected by the winning team.

In 2003, the second year of the awards programme,94 projects were nominated to the programme, overa third more than in 2002. Over a third more sites(53) in 20 countries participated. The research anddevelopment organisation entered projects for the first time.

Reward and Recognition

In a remarkable achievement, the Global Manufacturing & Supply (GMS)Consumer Supply site in Rajahmundry, India, won three top honours in 2003.They took two first place honours for “Good Corporate Citizenship” (CommunityPartnership) and “Resource Reduction” (EHS Initiative). Rajahmundry also shared a second place award with GMS Consumer Supply in Nabha, India, for a joint EHS initiative entry, “Bio-composting of Solid Wastes”.

Rewards and Recognition

43

This year, 11 projects received top honours. The winners were

EHS Community Partnership

• First Place: “Good Corporate Citizenship”,Global Manufacturing & Supply, ConsumerHealthcare Supply, Rajahmundry, India

• Second Place: “Managing the Marshes”,Global Manufacturing & Supply, PrimarySupply, Dartford, United Kingdom

• Third Place: “Leadership on Reduction ofMercury Contributions to Area SurfaceWaters”, US Pharmaceuticals, ResearchTriangle Park, United States

Green Chemistry / Technology

• First Place: “Discovery and Development ofa Green Process”, Research andDevelopment, Tonbridge, United Kingdom

• Second Place: “Tranilast: ImprovedProduction Process”, Research andDevelopment, Upper Merion, United States

• Third Place (2): “Nano Filtration Curbs Production Losses” Global Manufacturingand Supply, Primary Supply Ulverston,United Kingdom featured in the CorporateResponsibility Report tied with“Photochemistry - A Brighter Future”,Research and Development, Upper Merion,United States

EHS Initiative

• First Place: “Resource Reduction: WaterConservation, Effluent Reduction and TurboGenerator”, Global Manufacturing andSupply, Consumer Healthcare Supply,Rajahmundry, India

• Second Place: “Bio-composting of SolidWastes”, Global Manufacturing and Supply,Consumer Healthcare Supply, Nabha andRajahmundry, India

• Third Place (2): “Observations in theWorkplace Leading to Safety—OWLS”Global Manufacturing and Supply, PrimarySupply, Cork, Ireland tied with “EHS RiskMitigation Initiatives”, GlobalManufacturing and Supply, InternationalSupply, Thane, India

In 2003 winning project teams nominated thefollowing charitable organisations to receivedonations:

Brigham and Women’s Hospital, United States,is a teaching hospital of Harvard Medical School, a pioneer in women’s health and in many otherareas of medicine.

Charities Aid Foundation, India, creates asustainable voluntary sector with resourcescontributed by relationships built on trust betweenNGOs and donors. CAF India has pioneeredcorporate community initiatives with severalcompanies in India.

Reward and Recognition (cont.)

http://www.gsk.com/financial/reps02/EHS02/GSKehs-32.htm

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Cystic Fibrosis Trust, United Kingdom, fundsmedical and scientific research aimed towardsunderstanding, treating and curing cystic fibrosis. It also aims to ensure that people with cysticfibrosis receive the best possible care and support in all aspects of their lives.

The Hospice in the Weald, United Kingdom,provides inpatient and community nursing as wellas family support and bereavement counselling in Kent and Sussex.

Leukaemia Research Fund, United Kingdom,improves treatments, finds cures and investigatesthe causes and prevention of cancers of the bloodand related conditions, in children and adults.

Maharogi Sewa Samiti Warora, India, treats,trains and rehabilitates the leprosy afflicted andother handicapped people. It also trains schooldropouts in rural areas of India.

Millview Resource Centre, Northern Ireland,responds to community needs through a range of initiatives and support services, with localparticipation and in partnership with others.

National MS Society, United States, promotesresearch, educates, advocates on critical issues, andorganises a wide range of programmes includingsupport for the newly diagnosed and those livingwith multiple sclerosis over time.

Otter Valley Association, United Kingdom,works with local government and environmentalorganisations to interest residents and visitors inthe history, geography, natural history, architectureand future of the Otter Valley in Devon.

SANE, United Kingdom, is one of the UK‘sleading charities concerned with improving thelives of everyone affected by mental illness.

Shelter, United Kingdom, prevents and alleviateshomelessness by providing information, advice andadvocacy for people with housing problems.

The Tammy Lynn Center for DevelopmentalDisabilities, United States, offers educational,residential, and family support services to childrenand adults with special needs.

Reward and Recognition (cont.)

GlaxoSmithKline’s Consumer Healthcare Supply, Rajahmundry, India, manufacturesHorlicks and Chocolate Horlicks. The site initiated several projects to bring to life the role of good corporate citizen. The site has Dairy Development ExtensionProgrammes, which include animal health programmes in villages, educationalprogrammes for farmers, and fodder development programmes. They have alsosponsored de-worming programmes for 16,000 children, distributed furniture toschools and contributed 50% of the cost of a bridge over a canal for the localcommunity. This year, with India in the grip of a wide spread and severe drought, a water shortage affected the milk-shed area around Rajahmundry. The siteresponded by supplying water to the nearby villages using the milk tankers available.Six hundred thousand litres of water were distributed. This project received first placehonours in the EHS Community Partnership category in the 2003 CEO’s EHSExcellence Awards. This was one of three awards that Rajahmundry won this year.

Good Corporate Citizenship

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Issues

GlaxoSmithKline aspires to be a sustainable companybut recognises that it will take many years of hardwork to develop and fully integrate design forsustainability principles into the business and to effectthe necessary change in culture to move fromaspiration to reality. The initial focus will be to alignenvironmental aspects of sustainability with thedelivery of new products.

An example of the environmental focus is theGlaxoSmithKline eco-design toolkit, which wasdeveloped to support new product development andproduct transfer or redesign of processes. The eco-design toolkit can help us bring products to marketfaster as scientists and engineers begin to apply theeco-design principles and practices to design-outpotential problems early in development. It also willhelp us bring products to market more costeffectively, because eco-design principles andpractices will enable us to use less material andenergy to make our products. It will also enableresearch and development to address potentialenvironment, health and safety (EHS) issues duringprocess development, before a process is handed overto manufacturing where the cost of addressingprocess-related EHS issues may be considerablyhigher.

The toolkit is currently composed of four modules.Each of these was significantly revised during 2003 toenhance usability and to promote a standard lookand feel. Each module was designed to ensure thatall EHS impacts of materials, processes and servicesare considered, from the manufacture of the rawmaterials through to the ultimate fate of products

and wastes in the environment. The modulescurrently available include the following:

Green Chemistry Guide - offers guidance toGlaxoSmithKline scientists and engineers on how toapply Green Chemistry concepts to enable moreefficient use of resources, reduce environment, healthand safety impacts and minimise costs. It includes:

• A ranking and summary of the most usedchemistries and ‘best-in-class’ examplesfrom well-developed GlaxoSmithKlineprocesses;

• A ranking and review of issues encounteredduring process design and development;

• A ranking and summary of commontechnology alternatives for chemicalprocessing;

• Guidance on materials, process alternatives,synthetic route strategies and metrics forevaluating chemistries, technologies andprocesses.

Materials GuidesSolvent Selection - contains information on a widerange of solvents used within GlaxoSmithKlineoperations and also identifies solvents that should beavoided. It:

• Added a new section in 2003 to addressrecent legislative initiatives that affectfuture solvent use in the European Union;

• Added a new section on the life cycleimpacts associated with solventmanufacture;

• Compares and ranks 45 solvents accordingto environmental waste profile,environmental impact, safety profile and health impact;


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• Compares International Conference onHarmonisation (ICH) guidelines onallowable concentrations of solvents inactive pharmaceutical ingredients againstEHS characteristics of solvents;

• Provides information on boiling point andazeotrope formation to assist in theselection of separable co-solvents;

• Provides detailed information on physicalproperties, safety, health and environmentalissues.

Base Selection - ranks 42 chemical bases according to their environmental waste profiles, environmentalimpacts, safety profiles and health impacts. It alsoprovides detailed information on each base.

Green Packaging Guide - provides a packagingassessment tool, guidance and a business process forselection of packaging for the Pharmaceuticals andConsumer Healthcare businesses. In early 2003, theextensively revised site introduced a new interactivesection of the Green Packaging Guide known asWRAP - Wizard for the Rapid Assessment ofPackaging. WRAP is a tool and process that allowspackaging designers and managers to rapidly assessthe environmental impacts of existing and newpackaging designs. WRAP represents a significantenhancement and includes:

• A facility for benchmarking new andexisting packaging designs. Benchmarkingis undertaken against GlaxoSmithKline’sexisting product portfolio split into thedifferent product types. The method usedconsiders five metrics that cover theproduct life-cycle:

• Manufacture of packaging

• Mass of packaging

• Biodegradability

• PVC content

• Resource depletion;

• A best-in-class example in each packaging category;

• Green packaging guides for nutritional healthcare products and consumer healthcare products.

Using a scoring mechanism, WRAP generates asimple colour-coded report that clearly shows if thepackaging associated with a product is better orworse than the appropriate benchmark. WRAP alsoallows more detailed analysis of the underlying issuesaround the packaging and enables users to easilylook at the effect of alternative packaging throughscenario analysis. The benchmarks will be updatedand expanded as more data on packaging forGlaxoSmithKline products are collected.

FLASC is the newest component of the eco-designtoolkit. FLASC (Fast Lifecycle Assessment forSynthetic Chemistry) was launched in 2003. FLASC isa web-based application that allows bench chemiststo perform a streamlined life-cycle evaluation of theenvironmental consequences of new or existingprocesses based upon the input materials used.FLASC is a process and tool that will enable anassessment of eight different environmental impactcategories associated with materials used in asynthetic route or manufacturing process:

• Mass of materials used

• Energy required

• Photochemical ozone creation potential (POCP)

• Greenhouse gas equivalents

• Acidification

• Eutrophication

• Total organic carbon generated before any waste treatments

• Oil and natural gas depletion for rawmaterials manufacture

Designing Products for Environmental Sustainability (cont.)

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FLASC helps scientists and managers to rapidlyidentify the greenest option by comparing andbenchmarking processes and routes to makeGlaxoSmithKline products using a simple scoringsystem. It identifies the materials that have thebiggest environmental impacts and provides guidanceon how to reduce those impacts. The tool alsoquantifies the energy and materials used in productmanufacture, the emissions released and potentialenvironmental impacts. And it serves as a trackingsystem for synthetic route or manufacturing processimprovement throughout GlaxoSmithKline.

Designing Products for Environmental Sustainability (cont.)

Synthetic chemists at GlaxoSmithKline’s site in Tonbridge have developed a novel chemistry route that is green and efficient. The chemistry involves thesynthesis of a new compound for the treatment of Major Depressive Disorder.

Their key chemical issue was to identify an effective way to separate two mirrorimages of the same molecule that have very different therapeutic properties. Theteam used Multi Column Chromatography (MCC), a continuous form of columnchromatography, rarely used in the Pharmaceutical industry. Their work led to adramatically improved yield, with faster production and reduced solvent use.

• The total energy requirements of the MCC process are estimated to be ~46% less than other routes.

• There would be a 58% reduction in greenhouse gases.

• A 29% reduction in photochemical ozone creation potential.

• A 72% reduction in solvents and other organic matter.

Tonbridge, an R&D facility in the southeast of England, comprises laboratories, a multipurpose plant and facilities to support research and development activitiesassociated with production of active pharmaceutical ingredients. The site’s focus is on the discovery and development of chemical processes to support pre-clinicaland clinical development programmes, the scale up of proposed manufacturingroutes and the transfer of chemistry and analytical methods to GlaxoSmithKlinemanufacturing facilities.

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To support the principles of the Montreal Protocol,GlaxoSmithKline embarked on a comprehensivereformulation programme for all our metered doseinhalers (MDIs). The company has also investedheavily in dry powder delivery systems that do notuse CFCs. This has been a long and costly process,with total costs estimated at $1 billion. As a result of this work GlaxoSmithKline now offers a selectionof alternatives to CFC-containing MDIs in mostcountries.

Along with our work on MDIs, GlaxoSmithKline is also taking significant steps to eliminate ozonedepleting impact arising from our processes, productsand operations. We have a target to eliminateemissions of chlorofluorocarbon compounds used in refrigeration and air conditioning equipment by the end of 2005.

Read about our emissions of ozone depletingsubstances, page 75.

GlaxoSmithKline takes the issue of ozone depletionseriously and supports the objectives of the MontrealProtocol. We believe that governments should nowtake steps to phase out and close the essential useexemption for MDIs. In support of this position wewill make no further requests for “essential use” CFC volumes after 2005 and plan to eliminate theuse of CFCs from our product portfolio andoperations by 2010.

Asthma Medication and the Environment Asthma is a chronic and life threatening disease thataffects 300 million people around the world. Metereddose inhalers (MDIs) are one of the main forms oftreatment for asthma. MDIs were first introduced inthe 1950s. The MDI is a pocket-sized, hand-held,pressurised multiple dose inhalation system that candeliver a precise dose of medication to the airwayswhen used appropriately. Essential components of an MDI are a canister, the drug substance, a gas topropel the drug into the patient and a device forreleasing and directing the dose.

For decades, CFCs were the most suitable propellantfor use in MDIs because they are non-toxic, non-reactive, non-flammable, odour and taste free andexcellent solvents. However, CFCs have now beenrecognised as ozone depleting and global warming gases.

GlaxoSmithKline is taking steps to reduce the ozonedepleting impact arising from our processes, productsand operations by:

• Reformulating the propellant in the MDIsfrom CFCs to HFC 134a, a non-ozonedepleting replacement;

• Minimising emissions arising from MDIsrejected during the manufacturing stage in accordance with national standards;

• Launching globally the non-CFC MDI assoon as possible after obtaining regulatory approval;

• Removing the corresponding CFC productfrom the market within 6-12 months oflaunch depending on individual countryhealth practices;

• Offering a choice of an MDI or DPI (dry powder inhaler) device for our respiratory drugs.

• Continuing to invest in research anddevelopment of novel inhaler devices witheven lower environmental impacts;

• Minimising fugitive emissions of CFCs andother ozone depleting gases from ourmanufacturing sites through engineeringcontrols and replacing halons (fire fightinggases) and refrigerants.

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GlaxoSmithKline also takes the issue of climatechange seriously and supports the objectives of theKyoto Protocol. Although some uncertainties remain,we believe that the potential global significance ofclimate change is too serious to ignore and that,under the precautionary principle, it warrants ameasured global response. Even though the HFC134a MDI propellant is a recognised greenhouse gas, GlaxoSmithKline believes that in the interests ofpublic health, as there is no real alternative for manyactive ingredients, the small and critically importantmedical use of HFCs in MDIs deserves specialsafeguards in international and national climatechange strategies.

However, we will continue to pursue options thatemploy compounds that don’t have an adverseimpact to the environment.

When pharmaceuticals are administered to patients,some of the active ingredient may not be completelymetabolised (biochemically altered and inactivated).These unmetabolised portions are generally excretedand find their way into sewage effluents where theyare transported to wastewater treatment systems thatremove most of the pharmaceutical residues.However, extremely low concentrations may passthrough the wastewater treatment plant and bedischarged to the environment. Historically, thepresence and amount of pharmaceuticals in differentparts of the environment have been estimated.Recently, as a result of advances in analyticaltechniques, extremely low concentrations ofpharmaceuticals are being measured in wastewater,surface water (rivers and streams) and drinking water.

Pharmaceuticals in the environment have beenregulated in the USA by the US Food and DrugAdministration (FDA) since 1977 under the auspicesof the National Environmental Policy Act of 1969.Regulation occurs through the environmental reviewprocess for New Drug Applications submitted to theFDA. In the late 1980s, additional information wasrequired from pharmaceutical companies by the FDAand more extensive information was provided inenvironmental risk assessments that accompaniedNew Drug Applications. However, an evaluation ofthe data submitted from the late 1980s through themid-1990s led the FDA to revise the regulations in1997 to minimise environmental risk assessment data required in New Drug Applications.

In Europe, pharmaceuticals in the environment havereceived regulatory attention through the submissionof Environmental Risk Assessments (ERAs) thataccompany Marketing Authorisation Approval.Revised draft guidelines for European ERAs wererecently reviewed by various stakeholders and thefinal guidelines are expected to be available in mid-2004. In Canada, a requirement for environmentalassessment is in place and the ERA process is underconsideration.

Ozone Depletion (cont.) Pharmaceuticals in theEnvironment

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Since the late 1980s GlaxoSmithKline has beenactively working with various regulatory agencies to ensure that potential environmental impacts ofpharmaceuticals are understood and minimised.Recently there have been significant industry effortsto develop improved environmental risk assessmentmodels in the United States and Europe. Thesemodels are being used to identify potential risks ofGlaxoSmithKline pharmaceutical products enteringthe environment through patient use.

GSK is playing a major role in the development ofone such model, working with the research-basedpharmaceutical industry, through its trade associationPhRMA (Pharmaceutical Research and Manufacturersof America). The industry task force developed astate-of-the-art spatially explicit model to facilitate adeeper understanding of potential environmentaldistribution of pharmaceuticals at a local or regionallevel. The PhATE™ (Pharmaceutical Assessment andTransport Evaluation) model is a watershed-basedapproach and was developed as a tool to morerealistically estimate concentrations of activepharmaceutical ingredients (APIs) discharged to U.S.surface waters through consumption of medicines.

PhATE uses a mass balance approach to modelpredicted environmental concentrations (PECs) ineleven watersheds that are felt to be representativeof most hydrologic regions of the United States.Upon dividing the associated rivers into discretesegments, the model estimates the mass of API thatenters a segment from upstream or from publicly-owned treatment works (POTWs) and the mass that is subsequently lost from the segment via in-streamloss mechanisms or flow diversions (i.e., man-madewithdrawals). POTW discharge loads are estimatedbased on the population served, API use per capitaand the mass of the API removed in the POTW.

Environmental concentration data reported by theU.S. Geological Survey (USGS) provided the means by which the model could be corroborated (Kolpin etal., 2002; Tabor and Barber, 1993). Details of the

model development were reported in February, 2004 (Anderson et al., 2004).

Although the model is still under active development,it currently allows potential concentration profiles tobe evaluated across diverse geographic localities. Formost pharmaceutical compounds, measuredconcentrations are generally low (ng/l-ug/L range),and the potential for adverse acute environmentalimpacts is anticipated to be low as well. Workcontinues within and among the pharmaceuticalindustry, academia, government labs and otherscientific institutions to further our understanding of these issues.

Risk assessments using these models, combined with currently available human and environmentalfate and effects data, indicate that GlaxoSmithKlinepharmaceuticals in the environment do not present a risk to humans or the environment. As part of its product stewardship activities, GlaxoSmithKlinecontinues to monitor the latest scientific studies and findings to continually improve risk assessmentsin this area.

1. Anderson, P.D., V.J. D’Aco, P. Shanahan, S.C. Chapra,M.E. Buzby, V.L. Cunningham, B.M. DuPlessie, E.P.Hayes, F. Mastrocco, N.J. Parke, J.C. Rader, J.H.Samuelian, and B.W. Schwab, in review. Screeninganalysis of human pharmaceutical compounds in U.S.surface waters, Environmental Science & Technology,38: 838-849.

2. Kolpin, D.W., E.T. Furlong, M.T. Meyer, E.M. Thurman,S.D. Zaugg, L.B. Barber, and H.T. Buxton. 2002.Pharmaceuticals, hormones, and other organicwastewater contaminants in U.S. streams, 1999-2000:a national reconnaissance. Environmental Science &Technology, 36: 1202-1211.

3. Tabor, C.F., and L.B. Barber. 1996. Fate of linearalkylbenzene sulfonate in the Mississippi River:Environmental Science & Technology, 30: 161-171.

Pharmaceuticals in theEnvironment (cont.)

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While GlaxoSmithKline does not use natural productcollection as a major source for existing products oras a major source of compounds for development of pharmaceuticals, we do work with collaborativepartners such as Extracta in Brazil and the Centre for Natural Product Research in Singapore to collectsome natural products. Because of the impact thattheir collection might have on biodiversity, medicalresearchers must follow rigorous standards regardingevaluation and collection of natural products. We areconfident that our screening activities are conductedaccording to the principles set out in the Conventionon Biodiversity (CBD).

GlaxoSmithKline’s Position on Biodiversity

• Natural resource materials are potentiallyvaluable sources of novel biologically activemolecules which, once identified and theirproperties fully analysed, can serve asmodels for the invention of new, lifesaving medicines.

• GlaxoSmithKline recognises that all nationshave sovereignty over the biologicalresources and indigenous knowledge within their territorial boundaries. Equally,unauthorised or unrestrained removal ofnatural materials from their indigenoushabitats can harm the ecology andeconomy of the country concerned.

• GlaxoSmithKline’s drug discovery effortsincreasingly focus on high-throughputscreening of synthetic chemicalcompounds. We therefore have limitedinterest in natural material collecting andscreening programmes. However, wherescreening programmes are in place, thecompany supports the principles enshrinedin the Convention on Biological Diversity (CBD).

• In the event of GlaxoSmithKline developinga commercial product from our naturalmaterial screening programmes,GlaxoSmithKline will ensure a clear benefitis returned to the country of origin. This

benefit sharing may amount to payment offair and reasonable royalties or other meansdetermined by mutual agreement on acase-by-case basis.

• GlaxoSmithKline has a number of patentsbased on natural products and it is possiblethat more patents will arise from ourscreening programmes.

Specifically, GlaxoSmithKline has always undertaken to:

• Work only with organisations and supplierswith the expertise and legal authority tocollect plant and other natural materialsamples. These include botanic gardens,universities and research institutes aroundthe world;

• Ensure that the governments in developingcountries are informed of and consent tothe nature and extent of any proposednatural materials collection;

• Protect biodiversity by classifying samples ofplants and other organisms taxonomicallyand only investigate species if their supplyis reproducible and sustainable;

• Work with small quantities of naturalmaterials to discover bioactive principles.Where possible further supplies of leadcompounds and derivatives are synthesised;

• Develop sustainable harvesting proceduresto preserve the ecosystem from which thesource material is derived where furthersupplies of the active compounds cannotbe synthesised;

• Where appropriate, collaborate withorganisations to educate and train localpeople in collecting and screening skills;

• Ensure an agreed benefit is returned directly or indirectly to the country of originin the event of GlaxoSmithKline developinga commercial product based on a natural material;

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• Only transport potentially hazardousresearch and development material under contained use conditions and inaccordance with the CBD’s CartagenaBiosafety Protocol.

ConclusionGlaxoSmithKline is fully aware of our responsibilitiestowards protecting biodiversity, respecting nature andworking with the communities in which these naturalresource materials are found. By adhering to theprinciples of the CBD, we are confident that we areoperating in a sustainable manner and in a way thatwill enable us to continue developing, manufacturingand marketing new and innovative medicines thatenable people to do more, feel better and live longer.

Biodiversity (cont.)

GRI, Part C, Section 5 EnvironmentalPerformance, EN7, EN25 Biodiversity

GlaxoSmithKline’s manufacturing and research and development sites located inWare, UK, initiated a “Schools Go Wild” programme to improve community linksand increase awareness of the company’s environmental policies, particularlyrelating to Biodiversity. The initiative provided a learning-based competition forprimary schools in the Ware area. The schools were given a novel resource packcontaining eight different projects on creating a wildlife habitat in the school playground or garden. Schools that agreed to undertake a six-week learning projectand keep a record of the outcomes and education benefits of the project workcould submit the record for judging. Fifteen primary schools entered their reportson what students learned from participating in a wide range of projects aroundsuch activities as planting a wild flower/nectar border, creating a deadwoodhabitat, developing a pond, building bat boxes and feeding wild birds.Subsequent advertising of the Schools Go Wild initiative through the HertfordshireEducation Business Partnership has led to an unprecedented level of interest inthe project and the use of school grounds as an educational resource.

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GlaxoSmithKline is in the forefront of thedevelopment and application of new scientifictechniques to discover and develop new medicinesand vaccines. We routinely use genetically modifiedorganisms (GMOs) in the research and discovery ofnew therapeutic agents and also in the efficientmanufacture of certain medical products such as vaccines.

Research and development operations use GMOs in a wide range of laboratory activities in our workto discover and develop new medicines. Morespecifically, they are used to identify the genetictargets and causes of disease, and to develop newdrugs for conditions such as heart disease, diabetesand depression as well as antibiotics. We use anumber of different GMOs, predominantly harmlessorganisms such as disabled strains of the bacteriumE.coli and eukaryotic cells in culture.

All work with GMOs within GlaxoSmithKline iscontrolled to the strictest national and internationalregulations, and we apply best practice across all ourfacilities. Any work with GMOs is subject to full riskassessment including safe conditions of use, storageand disposal. Any laboratory work with GMOs isperformed under conditions of contained use usingcontainment laboratories appropriate to the risk ofthe materials handled. The large-scale fermentationor propagation of GMOs in research anddevelopment is always undertaken in fully-containedsystems. All processes are performed in closed vesselsminimising the risk of release, in line with existinglegislation and best practice. All work is controlled bywritten procedures. Regular maintenance checksensure the processes are operated to the necessarylevel of contained use.

We also manufacture a number of products that arederived from genetically modified materials such asHepatitis B vaccine. GMOs are sometimes used asintermediates in the manufacturing process ofmedicines such as antibiotics, but GlaxoSmithKlinedoes not produce any products that are or contain

viable organisms. We have no plans to introduceproducts that are live GMOs for the foreseeablefuture. All manufacturing processes also operateunder conditions of contained use to prevent therelease of any GMOs to the environment.

GlaxoSmithKline has a policy of routinely treating all waste from our GMO operations to ensure we do not release viable GMOs from our containedprocesses into the environment. As a result, all GMOsare inactivated prior to disposal by chemical or heattreatment.

We do not routinely undertake research anddevelopment involving the cultivation of geneticallymodified plant species. However, one exception wasa small-scale field trial undertaken in Australia todevelop morphine-containing medicines, which areonly available on prescription from a doctor. Researchwas focused on increasing the yield of alkaloids inpoppies with enhanced properties to develop moreeffective pain management medicines. The Australiangovernment strictly controlled these small-scale trials.These trials have now been completed, and there areno plans at this stage to move to large scaleproduction of GM poppies.

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Land may become contaminated as a result of past practices in the management of materials, forexample, through inadequate containment, accidentalrelease or poor disposal practices. Depending on thecircumstances there may be potential for harm to theenvironment. GlaxoSmithKline employs globalstandards that require, among other things, theidentification and management of contaminatedland. GlaxoSmithKline enters into agreements withrelevant authorities to assist in the remediation ofcontaminated land, when required, and then directsthe remediation of contaminated areas to levels thatare consistent with the expected future use of theland and with local regulatory requirements.

Following GlaxoSmithKline’s earlier investigation of operational sites in the UK, it was determined that the majority featured low probability ofcontamination, or low hazard and pollution potentialif contamination were present. A group of seven sitesremained for further study of which five are thoughtto require some remediation and two of these sitesare undergoing partial or full decommissioning inpreparation for sale.

In the US, GlaxoSmithKline is currently involved withsome 25 sites that must be remediated. These include14 sites on the US Environmental Protection Agency’sNational Priority List (NPL) of so-called “Superfund”sites as well as several sites listed under various stateprogrammes. Most of these sites are abandonedwaste disposal sites where waste generated from aGlaxoSmithKline facility may have been found amongwaste generated by several parties (in some cases,hundreds) and often over many years.

In dealing with remediation sites over nearly 20 years,GlaxoSmithKline has always cooperated with thegovernment upon notification and confirmation ofour connection to a site, and worked with the otherparties to effect the remediation. GlaxoSmithKlinepays its fair share according to an agreed allocationof costs among the parties participating in theremediation. Even in cases where we cannot initially

agree on an allocation, we employ an interimallocation to allow the work to go forward and settlefinal allocation later. GlaxoSmithKline generallyparticipates in groups of companies organised toremediate sites in accordance with its allocation,among other factors. Participation varies frommonitoring the activities of a committee to taking a leadership position in the committee.

Since 1980, GlaxoSmithKline and its heritagecompanies have spent over £100 million onremediation of more than 50 sites. Many of thesesites will require long-term operation andmaintenance (O&M) for systems such as groundwatertreatment facilities. For “mature” sites—where“construction” is complete although O&M may be required long term—GlaxoSmithKline and itscorporate partners assess the possibility of returningsuch sites to beneficial use, such as communityparklands, and where appropriate, assist in theimplementation of such projects.

Contaminated Land

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Creation of GlaxoSmithKline products from earliestresearch and development through to full-scalemanufacture requires that employees work directlywith or in proximity to chemicals. To safeguardworker health, GlaxoSmithKline health and safetyprogrammes for chemicals have been organised todefine health protective occupational exposure limitsand provide information on unique chemical hazards.This dual approach supports design of equipment andfacilities to contain and control chemicals in theworkplace. It also provides appropriate informationfor first aid and other care in the event of accidentalcontact with chemicals.

Historically, achieving an understanding of the effectsof chemicals in the workplace has involved use oflaboratory animals as models for human systems.Growing scientific and public awareness aroundethical use of laboratory animals has guidedGlaxoSmithKline efforts to continuously reducereliance on animal models for occupational toxicologytesting wherever possible without compromising theworker safety programme.

Occupational toxicologists in the CorporateEnvironment, Health and Safety group focus onunderstanding the potential effects ofGlaxoSmithKline drugs and the chemical buildingblocks for these drugs handled in research anddevelopment and manufacturing settings. Specialemphasis is placed on understanding the results ofpossible chemical exposure to the skin, eyes andrespiratory tract (common routes of workplacechemical exposure) as well as other human systems.CEHS toxicologists have played an important role indeveloping a corporate programme to characterisethe occupational health hazards of GlaxoSmithKlinematerials based on computer-generated prediction,cell and tissue culture and other methods not relyingon animal testing.

Several key examples from 2003 illustrate thecontinuing commitment of GlaxoSmithKline tominimise use of laboratory animals in chemical hazardassessments for worker health and safety purposes:

• GlaxoSmithKline occupational toxicologistscontinued a long-standing commitment todemonstrate visible leadership in efforts toreduce live-subject testing to the minimumrequired by concern for safe-guardingworkers’ health. In 2003, these scientistssubmitted materials for several publicationson the GlaxoSmithKline strategy forsubstituting cell and tissue culture methodsinto occupational toxicology assessments.Public presentation of these findings atinternational meetings devoted to chemicalhazard assessment is slated for early 2004.

• GlaxoSmithKline reduced to zero thenumber of guinea pigs used for testing thepotential of chemicals to act as skinallergens in 2003. In the past, the guineapig has been extensively used to determinewhether certain chemicals might causeallergy in humans. Recent advancementsadopted by GlaxoSmithKline andencouraged by regulatory bodies in the UK have resulted in adoption of newmethods that completely avoid the use of guinea pigs.

• During 2003, GlaxoSmithKline undertook alarge project to fill gaps in the environment,health and safety database for existingchemicals and processes slated for transferbetween manufacturing sites. A refined,tiered approach using computer structuralanalysis along with alternative assays wasused to evaluate the potential of thesechemicals to directly harm the eyes andskin. Utilising this approach, a 67%reduction was achieved in the number of rabbits used in studies supporting this project.

• Relying on a rich background of experiencein development of alternative methods forcharacterisation of chemical hazards,

Occupational HazardEvaluation - ContinuedProgress in Reducing Use ofLaboratory Animals in 2003

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GlaxoSmithKline scientists in 2003 designedand analysed a large study of a leadingcommercially available technology with thehope of recommending further reduction inuse of laboratory animals in worker safetytesting. Cultured human skin and eye tissuederived from continuously grown cell lines(provided commercially by SkinEthic, Nice,France) were evaluated for a variety ofresponses to chemical exposure. Theoutcome of this study provided promisingresults suggesting that these model systemswill provide a viable means to reduce stillfurther the use of animals inGlaxoSmithKline EHS testing.

These accomplishments confirm the effectiveness of the approach to GlaxoSmithKline health hazarddeterminations for research and development andcommercial materials. In this approach, tieredevaluation of the potential effects of chemicals isinitiated with searches for applicable informationfrom literature databases. Structure-activity computermodels are also used to predict possible effects. Initialresearch is complemented by evaluation of chemicalparameters (such as acidic or basic character) that cancontribute to possible adverse effects. In many cases,this first tier of assessment is sufficient to understandthe hazards posed by chemicals making it possible toproject likely effects from previously characterisedmaterials to new materials and avoid use oflaboratory animals altogether.

When insufficient or equivocal information is availablefrom the initial tier of assessment, a second tier oftesting is initiated. This second tier of testing involvesuse of cell culture, tissue culture and bacterialmodels. GlaxoSmithKline scientists have adoptedseveral animal-use reduction techniques recognisedby health regulatory and advisory agencies (such asthe UK Health and Safety Executive and US NationalInstitutes of Health) to organise the second tier ofevaluation. GlaxoSmithKline scientists activelydevelop, publicise and validate alternative methods

used in the second tier to allow increased reliance ontest methods not using laboratory animals. Again,results of Tier II testing exempts many materials fromevaluation in animal models. Finally, only whenchemical production levels reach certain high volumelevels (thereby increasing the potential for inadvertentor accidental chemical exposure) are tests withlaboratory animals considered. In many cases thesetests are required by regulatory guidelines. Even inthese cases, alternate means for identifying chemicalhazards are sought, and testing is done with reducedanimal numbers. Data on animals used for hazarddetermination are submitted for regulatory reportingand the numbers of animals involved in occupationaltoxicology testing are included in the animal researchsection of the Corporate Responsibility Report.

Consistent application of the tiered approach to chemical hazard assessment adopted in 2001 has resulted in significant refinement of testingundertaken for worker health and safety purposesand continues to yield many examples of diminishedand more effective use of animals.

Occupational Hazard Evaluation -Continued Progress in ReducingUse of Laboratory Animals in 2003(cont.)

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Performance

Reporting our performance and impacts drivescontinuous improvement and communicates GSK’sglobal EHS impacts to stakeholders. Internally, we use the data to inform senior management, toidentify areas for improvement, to set and refinetargets and to raise employees’ awareness of EHS issues.

EHS performance at GSK is measured using a seriesof EHS performance indicators selected based on:

• Industry benchmarking and best practice;

• Assessment and prioritisation of ouroperations and our areas of greatestemissions;

• Guidelines set by external technical andprofessional organisations.

In 2003 we collected environmental data from all 97 global manufacturing sites, 27 pharmaceutical and consumer healthcare research and developmentfacilities, 5 of 7 distribution centres, 1 drinksmanufacturing facility and 8 of 11 general officebuildings. We collected health and safety data fromall of these locations as well as from 59 of our 67sales offices. An intranet data collection tool wasused to collect and collate the global data.

In addition to the EHS data collected from sites, we collected GSK business air travel from GlobalProcurement, US fleet injury and illness informationfrom Employee Health Management and productfreight distance from Global Distribution. We alsocontinued a pilot programme, initiated in 2002, to collect core EHS data from major contractmanufacturers. In 2003 we collected core EHS data from seven major contract manufacturers.

We continue to rationalise our manufacturingnetwork and site closures, which may occur overseveral months, continue. Depending on the timingof closures, we continue to collect EHS data fromthem and include it in the report until final closure.We also continue to include data from prior years forclosed sites because, in general, the manufacturingand other activities of closed sites are moved to other operations.

The data were reviewed and analysed to determinethe impacts on air, water and land. These impactswere compared to the impacts in previous years toassess our performance in the key areas of concern.In the process of providing 2003 data, GSK sitesreviewed the data reported in 2002 and 2001.Corrections made as a result of this review improvedthe accuracy and consistency of the data andimproved the comparability of the impacts from yearto year. A thorough review of the computations andfactors used in arriving at the reported figures wasalso undertaken. For these reasons, the 2001 baselineand 2002 data have been modified for certainperformance measures. This is most evident in thenew baseline and modified data for carbon dioxide.The other significant changes in the 2001 baselinedata were ozone depletion potential, volatile organiccompounds, wastewater chemical oxygen demandand non-hazardous waste. Minor changes were madeto the 2001 baselines for energy, hazardous wasteand waste recycled.

For each parameter the stacked bar chart gives theabsolute amount of the parameter with thecomponents shown by the stack. The line graph givesthe same value normalised by sales and displayedrelative to the 2001 baseline.

The 2003 data show that GSK is on track to meet the 2005 targets for most key performance indicators although we need to focus on decreasing our volatile organic compoundemissions, wastewater pollution and hazardous wasteand increasing our waste recycling efforts.


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During 2003 there were five environmental fines andpenalties totalling £40,389. One in Ireland (£5,793),one in Romania (£135), one in the Philippines(£3,363) and two in the United States (£31,098).There was one health and safety fine in Ireland(£10,345) related to the same incident that resultedin an environmental fine.

Environmental Fines and PenaltiesA primary manufacturing facility in Ireland releaseddimethyl sulphate to atmosphere in 2002 resulting ina fine from the Irish Environmental Protection Agencyof 2400 euros and costs of 6000 euros paid in 2003.

A primary manufacturing facility in the United Statesreleased acetone in wastewater in 2002 resulting in afine from the US Environmental Protection Agency of$1000 paid in January of 2004.

A Consumer Healthcare manufacturing facility in theUnited States exceeded the pH limit in its effluentresulting in a $50,000 fine from the local wastewatertreatment authority.

A manufacturing facility in Romania exceededwastewater discharge limits for wastewater chemicaloxygen demand and filterable solids resulting in a fineof 7,361,100 ROL.

A manufacturing facility in the Philippines exceededwastewater discharge limits in 2002 resulting in a fineof Php 300,000 paid in 2003.

Health and Safety Fines and PenaltiesA primary manufacturing facility in Ireland releaseddimethyl sulphate to atmosphere in 2002, potentiallyexposing five employees and resulting in a fine fromthe Health and Safety Authority of 15,000 euros paidin 2003.

Other EventsIn addition to the incidents that resulted in fines,there was one chemical release in the UnitedKingdom that did not result in a fine and there werefires at two United Kingdom facilities that requiredevacuations of the sites.

Our goal is to avoid all work-related injuries andillnesses, and we have programmes in place aimed at achieving this goal. However, in 2003 there werefive work-related fatalities among GlaxoSmithKlineemployees. Four died as a result of motor vehicleaccidents, one in Pakistan, one in Morocco, one inEgypt and one in the Czech Republic. One employeefrom a facility in the United Kingdom died ofmesothelioma from asbestos exposure in the 1950swhich was diagnosed and reported in 2002. Therewere also several fatalities involving people who werenot employees. One contract worker died in a forklifttruck accident and motor vehicle accidents killed twopedestrians and one passenger. One 2002 fatalitywas discovered in 2003. This was a fatality in Japanthat was originally judged to be non-work related but after investigation by the local authority, thedesignation was changed to work-related status.

There were four severe injuries, one involvingchemical burns, two involving finger tip amputationsby machinery and one involving amputation of anarm that was run over by a truck in a motor vehicle accident.

Fines, Penalties and SeriousEvents

Fatalities and SeriousOccupational Injuries andIllnesses

GRI, Part C, Section 5 EnvironmentalPerformance Indicators EN 16

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Environment, Health and Safety CostsCapital investment projects include projects related to designing, siting and installing systems related to wastewater treatment, waste management andtreatment and air pollution control. In 2003, therewas a sharp decrease in capital investment dueprimarily to conclusion of a major wastewatertreatment plant expansion and upgrade project atone of our large primary manufacturing sites.Significant expenditures had been made on thisproject in 2001 and 2002.

Costs

Capital Investment

Capital investment for EHS projects totalled£10.5 million in 2003, a decrease of 43% from £18.3 million in 2002. A primarymanufacturing site completed a large-scalewastewater treatment upgrade in 2002. Inaddition, during 2003, GSK continued tostreamline the network of manufacturing sites.This rationalisation effort and general costcontrol measures contributed to the decrease in capital investment.

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Costs (cont.)

Operations and Maintenance Costs

History of data changesIn 2002, we reported that GlaxoSmithKline manufacturing and research and development operations spent £45.5 million for operations and maintenance costs associated withEHS. Due to improved reporting, this figure was revised to £46.9 million.

GSK manufacturing and research anddevelopment operations spent £39.1 million,which represents a 17% decrease in operationand maintenance expenditure. This decreasewas due, in part, to the decreased operation of wastewater treatment plants at two largemanufacturing sites. In addition, incinerator use decreased at another manufacturing sitedue to a decrease in production.

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Energy ConsumptionGSK sets a target to decrease energy consumptionfrom non-transport activities. This measure is definedas all energy consumed at GSK facilities during theyear in the form of electricity and steam importedand fuels burned in fixed combustion equipment onsite, including emergency generators. Fuels used foronsite transport have not been included but fuelsused to generate steam and electricity onsite havebeen included.

Energy

GRI, Part C, Section 5 EnvironmentalPerformance Indicators EN3, EN4

Energy Consumption

In 2003, GSK consumed 19.7 million gigajoules of energy for non-transport activities representing a 2% decrease in energyconsumption compared to 2002. Fuel burnedto support manufacturing processes, heatbuildings and for other uses not related totransportation accounts for nearly 58% of totalenergy consumption. Forty-one percent (41%)of energy is electricity imported. This energysource ratio is nearly the same as in 2002 withonly a slight increase in the percent of energyfrom electricity as compared to fuels.

History of data changesThe 2001 baseline originally reported for energy consumption was 21.4 million gigajoules. This included energy from on-site transport fuels and energy generated on-site fromfuels. In 2002, we revised the 2001 baseline to 20.7 million gigajoules because we removed the fuels used for on-site transport and corrected the previous double counting offuels used on site to generate electricity and steam. Due to additional reporting improvements in 2003, this 2001 baseline was again slightly adjusted to 20.6 million gigajoules.

In 2001, we set a target toreduce energy consumptionfrom site activities by 8% on aper unit sales basis by the endof 2005 and we have met thattarget in 2003.

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Energy Consumption (cont.)

Energy (cont.)

Energy Consumption by Business

The energy consumed for GSKoperations worldwide in 2003 isequivalent to the energy consumed inone year by approximately 220,000 UKhouseholds.

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Water Usage Water is a valuable natural resource that we can help to conserve through efficient use and recycling.GSK operates in several regions of the world that areclassified as “water stressed” - Africa, Asia and theMiddle East. Many countries in water-stressed areashave legislation that closely regulates and monitorsthe use of surface and ground waters. Sites in theseregions are particularly concerned with water use and conservation and sites in other regions havetaken on water conservation projects proactively and

strategically to be better prepared for possible stricterregulation of water use. Water is used inmanufacturing processes, sanitation services and for general site uses and is received from municipalsources or extracted from wells, boreholes and other sources.

Water

History of data changesIn 2002, we reported use of 25.4 million cubic metres of water but due to improved reporting, the 2002 figure has been revised to 24.8 million cubic metres.

Water Consumption

Water used for GSK operations continues tocome primarily from municipal sources (55%)and wells and boreholes (42%), consistent with 2002. In 2003, GSK used 23.5 millioncubic metres of water. This 5.2% decrease from 2002 is due to water conservation andreuse programmes and improved reporting.Since 2001, sites have provided more details on their water consumption sources and have started to report amounts of waterincorporated into products, water consumedfrom recycled sources and water obtained from other sources.

GRI, Part C, Section 5 EnvironmentalPerformance Indicators EN5

In 2001, we set a target toreduce water consumption by10% on a per unit sales basisby the end of 2005 and wehave exceeded that target in2003.

Water Usage (cont.)

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Water (cont.)

Water Consumption by Business

The 23.5 million cubic metres of waterused by GlaxoSmithKline worldwide in2003 is equivalent to the amount ofwater used in one year by approximately92,000 UK households.

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Air EmissionsGlaxoSmithKline operations can emit a range of air pollutants including:

• Carbon dioxide (CO2) from the energy thatwe use to power our processes and toheat, cool and light our facilities, CO2

generated from some manufacturingoperations and CO2 generated by the fuelsthat power the vehicles and aircraft we useto transport our products and people;

• Sulphur dioxide (SO2 ) and nitrogen oxides(NOx) from the energy that we use topower our processes and to heat, cool and light our facilities;

• Ozone Depleting Substances (ODSs) (e.g., chlorofluorocarbons,hydrochlorofluorocarbons andhydrofluorocarbons) released in the courseof manufacturing our metered doseinhalers, used in refrigeration equipment in some of our manufacturing facilities andreleased when patients use our metereddose inhalers;

• Volatile organic compounds (VOCs) fromour manufacturing operations.

These releases have the potential to affect climate(global warming), deplete the ozone layer, generatesmog and create acid rain. Additionally, some ofthese substances when released into the air can causea variety of health impacts because of the way they react with other substances in the air.

Carbon Dioxide and Global Warming

Carbon Dioxide (CO2) and Global Warming Potential Climate change is a gradual change in the globaltemperature caused by the accumulation ofgreenhouse gases in the atmosphere. Carbon dioxideis the most significant greenhouse gas and resultsfrom the generation of electricity, generation of steam and combustion of fuels. A small amount of carbon dioxide is also emitted from fermentationoperations. The other greenhouse gases includemethane emitted from waste treatment andhalocarbons, emitted from production operations and ancillary cooling systems.

Air


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Carbon Dioxide and Global Warming (cont.)

Air (cont.)

Global Warming Potential from Energy

In the calculation of CO2 emissions related to energy, we include CO2 emissions fromelectricity imported (not generated on site),steam imported (not generated on site) andcombustion of fuels used for non-transportrelated activities. In 2003, 1,810 millionkilograms of CO2 was generated from energysources representing a decrease of 1.8%.Carbon dioxide from production of importedsteam rose by 22%. Carbon dioxide from non-transport fuels and production of importedelectricity decreased by 3.1% and 1.3%,respectively. Sixty-one percent (61%) of CO2 from energy sources is due to production of imported electricity.

History of data changesIn 2002, we revised the 2001 baseline for CO2 from energy sources due to the discovery of errors in the calculation (incorrect application of CO2 conversion factors, theincorrect inclusion of site-based transport fuels and double counting the fuels used on site to generate steam and electricity). Calculations underlying this metric were reviewedagain this year as part of the data reporting and analysis process and a system unit conversion error was identified. Correcting this error resulted in a revised baseline for 2001and a revised value for 2002: 1,897 million kilograms and 1,844 million kilograms, respectively.

In 2001, we set a target toreduce CO2 emissions fromenergy sources by 8% on a perunit sales basis by the end of2005 and we have exceededthat target in 2003.

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Air (cont.)

Global Warming Potential from Energy by Business

The 1,810 million kilograms of CO2

generated by GlaxoSmithKline’s non-transport activities in 2003 is equivalent to the CO2 generated by one year ofenergy consumption of approximately300,000 UK households.

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Air (cont.)

Global Warming Potential

History of data changesIn light of the baseline changes made to CO2 from energy there is also a revised 2001 baseline for total global warming potential to 3,336 million kilograms CO2 equivalents.For 2002, the total global warming potential using the corrected calculation is 3,012 million kilograms.

Carbon dioxide is the most significantgreenhouse gas and results from thegeneration of electricity, generation of steamand combustion of fuels. The other primarygreenhouse gases include methane, nitrousoxide, hydrofluorocarbons, perfluorocarbons and sulfur hexaflouride. The greenhouse gasescarbon dioxide and methane are formed from waste treatment and fermentation.Halocarbons are released during productionoperations and from ancillary cooling systems.These other greenhouse gases can becompared to carbon dioxide by calculating their CO2 equivalence. Included in the globalwarming potential figure in this graph is carbondioxide generated from energy sources (seeprevious section on carbon dioxide), CO2

equivalents from halocarbons (ozone depletingcompounds) and CO2 equivalents from wastetreatment and fermentation. For 2003, thetotal global warming potential is 2,692 CO2 equivalents, which represents a 10.6%decrease from 2002. We did not set a targetfor this parameter.

Inventory methods and factors utilised for conversion to carbon dioxide equivalentsare based on the World Business Council forSustainable Development (WBCSD)/ WorldResources Institute (WRI) Greenhouse GasProtocol Initiative, September 2001, itsStationary and Mobile Combustion Workbooks,and the Intergovernmental Panel on ClimateChange (1996).

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Air (cont.)

Global Warming Potential by Business

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Air (cont.)

Global Warming Potential from Transport

Global warming potential is also impacted by the greenhouse gases produced from theconsumption of fuels in GSK business air travel,from transport of our products and fromvehicle fleets, primarily sales fleets. Calculationof CO2 for air travel activities was based onfactors from the UK Department forEnvironment Food and Rural Affairs.

http://www.defra.gov.uk/environment/envrp/gas/10.htm

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Although impacts from these activities are notincluded in the previous graphs, carbon dioxidegeneration has been estimated for the followingactivities:

• Air travel by GSK employees. GSKemployees travelled a total of 656 millionkilometres in 2003, an increase of 2.3%.This includes routine travel between andwithin the United States and the UnitedKingdom as well as international travel butdoes not include travel related to largegroup events such as sales conventions. It resulted in an estimated 95.2 millionkilograms of carbon dioxide emissions. The amount of CO2 emitted from air traveldepends on the distance of each trip aswell as the total distance travelled. Sinceour travel data does not include thedistance of each trip, we make assumptionsabout the proportion of trips that are longdistance or short distance. During ouranalysis of data in 2003 we re-evaluatedthese assumptions and revised the estimateof CO2 produced from the 641 millionkilometres travelled in 2002 from 85.2 million kilograms to 91.5 millionkilograms, a more conservative estimate.

• Product freight transport among thetop 50 country destinations. GSKproducts travelled a total of 149 millionkilometres in 2003 (up 16% from 129 million kilometres in 2002), 75.5% ofit (112.5 million kilometres) by air. This airtransport represents 12.6 million kilogramsof CO2 emissions. The remaining 24.5% ofproduct transportation is by rail and sea forwhich we do not estimate CO2 emissions.

• Emissions from vehicles used in GSK’ssales and marketing activities. Globalsales fleets drove a total of 585 millionkilometres in 2003 representing emission of73 million kilograms of carbon dioxide.

The total CO2 generated from these GSK businessactivities in 2003 was 180.8 million kilograms. This isequivalent to approximately 10% of the carbondioxide generated from GSK energy sources. Thispercentage is consistent with the previous year data.

Air (cont.)

The carbon dioxide generated fromthese transportation activities combinedwith the global warming potentialrelated to site energy requirements couldbe absorbed by a forest approximatelythe size of Rhode Island, the smalleststate in the United States.

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Sulphur Dioxide (SO2) and Nitrogen Oxides (NOX)

Sulphur dioxide and nitrogen oxides are producedduring combustion of fuels. They can cause a varietyof health and environmental impacts when they reactwith other substances in the air. Some groups ofpeople are particularly sensitive such as people withasthma who are active outdoors, children, the elderlyand people with heart or lung disease. We useseveral types of fuel to generate the energy required to operate our facilities and manufacture our products.

Beginning this year we are reviewing our processesfor collecting NOX and SO2 from sites, and we arereviewing factors and calculations for estimating theNOX and SO2 generated from the combustion offuels. This year we focused our attention onestimating the NOX and SO2 created from thecombustion of coal since this generally createssignificantly more NOX and SO2 than the combustion of other fuels.

In 2003, sites converted 25.7 million kilograms ofcoal into energy (776,140 gigajoules) for operatingmanufacturing facilities and equipment. We estimatethat this generated 119,425 kilograms of NOX and444,316 kilograms of SO2. These calculations arebased on emission factors obtained from the National Atmospheric Emissions Inventory (UK national methodology).

For comparison, the coal that generated 119,425kilograms of NOX also generated 6.2 millionkilograms of GWP in CO2 equivalents.

Ozone Depletion Potential

Ozone Depleting Substances (ODSs)/OzoneDepletion Potential (ODP)Ozone depleting substances (ODSs), as defined by the Montreal Protocol and its Amendments, havebeen measured from their sources in manufacturingoperations and research and development facilities.Ozone depleting substances are released to theatmosphere from production operations (primarilyproduction of metered dose inhalers), ancillarycooling systems and fire suppressant systems at GSK facilities. We report ozone depletion potential inCFC-11 equivalents as defined by the United NationsEnvironment Programme (UNEP) Ozone Secretariat(www.ghgprotocol.org and www.ipcc.ch).

In addition to the ozone depletion potential fromproduction and ancillary releases, the ozone depletionpotential from propellant released when patientsused our products in 2003 was 782 thousandkilograms. This is a significant decrease from 1.5million kilograms in 2002 and 1.9 million kilograms in 2001 also due to the change to CFC free and dry powder inhalers.

In 2001, we set two targets related to ozonedepleting substances to be achieved by the end of2005; 50% reduction in CFC-11 equivalent emissionsrelated to production processes and elimination(100% reduction) of CFC emissions related torefrigeration and other ancillary processes.

Air (cont.)



www.ghgprotocol.org

www.ipcc.ch

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Ozone Depletion Potential (cont.)

Air (cont.)

Ozone Depletion Potential from Ancillary Use

For 2002, the ODP from ancillary releases was 7.4 thousand kilograms representing a15.6% increase in CFC-11 equivalent releases from 2001. For 2003, the figure is 2.3 thousand kilograms, a reduction of 69%from 2002 and 64% from the 2001 baseline.In 2002, a one-time facility maintenanceactivity occurred at one of our majormanufacturing sites. This facility aloneaccounted for nearly 30% of the GSK total for ancillary ODP release in 2002. Facilitymaintenance activities will continue to occur in the future but GSK endeavours to keep apriority on this issue toward meeting the 2005target to eliminate ancillary releases of CFCs.

History of data changesFor refrigeration and other ancillary releases of halocarbons we reported 7.8 thousand kilograms of ozone depletion potential (CFC-11 equivalents) in 2001. During thereporting process in both 2002 and 2003, sites took the opportunity to review their releases for 2001 and some sites made revisions. In addition, we corrected some of thefactors that were used to calculate the ODP values, applied them more consistently for all years and applied more specific factors to individual ozone depleting substancesrather than general factors to groups of substances and reclassified some production ozone depleting substances to ancillary use. Because of these corrections the 2001baseline was revised to 5 thousand kilograms in the 2002 report and to 6.4 thousand kilograms this year.

In 2001, we set a target toeliminate CFC emissionsrelated to ancillary uses by the end of 2005 and we aremaking progress towardachievement of that target.

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Air (cont.)

Ozone Depletion Potential from Ancillary Use by Business

Ozone depleting substances released fromancillary activities *

HCFC 22 (R22) 17,379

HFC 123 (R123) 341

R408a 2,169

R403a 100

R502 247

Halon 1211 90

Others 96

*Substances (in kilograms) with ozone depletion potentials rangingfrom 0.02 to 3.0.

In 2001, GSK released 892.7 kilograms of CFC-11 and CFC-12 combined, related toancillary use and in 2003 this was reduced to 347.2 kilograms of CFC-11 and CFC-12combined. In addition to CFC-11 and CFC-12the following amounts of ozone depletingsubstances (substances having an ODP factorgreater than zero) were released:

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Air (cont.)

Ozone Depletion Potential from Production Use

Production process-related CFC-11 equivalentemissions have decreased from 120 thousandkilograms in 2002 to 68 thousand kilogramsrepresenting a 43% reduction. The decreasesince 2001 baseline year is 62%. In 2001, GSK released 178,452 kilograms of CFC-11and CFC-12 as part of production activities and reduced this to 67,380 kilograms of CFC-11 and CFC-12 in 2003. This decrease isprimarily due to changes at our main inhalermanufacturing facilities from production of CFC inhalers to CFC-free and dry powderinhalers.

In 2001, we set a target toreduce ozone depletionpotential from productionactivities by 50% on a per unitsales basis by the end of 2005and we have exceeded thattarget in 2003.

Ozone depleting substances released fromproduction activities*

Methyl bromide 670

1,1,1 Trichloroethane 504

Others 430

* Substances (in kilograms) with ozone depletion potentials rangingfrom 0.1 to 0.6.

In addition to CFC-11 and CFC-12 the following amounts of ozone depletingsubstances (substances having an ODP factorgreater than zero) were released fromproduction-related activities:

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Air (cont.)

Ozone Depletion Potential from Production Use by Business

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Volatile Organic Compounds and PhotochemicalOzone Creation Potential (POCP)

Emissions of volatile organic compounds (VOCs) were measured from point and fugitive sources atGSK manufacturing operations and research anddevelopment facilities. Volatile organic compoundsare organic compounds, generally solvents, that areused in large quantities in GSK primarymanufacturing operations and in lesser quantities in secondary manufacturing and research anddevelopment facilities.

Air (cont.)


Volatile Organic Compounds Emitted to Air

History of data changes The 2001 baseline for VOC was originally reported as 6.6 million kilograms. A focused review of VOC reporting for 2002 by ERM, our independent verifier, revealed someinconsistencies in reporting and the values for 2001 were adjusted where appropriate. Further refinements were made this year and the new 2001 baseline is 6.81 millionkilograms due to this improved reporting. The revised 2002 figure is 6.62 million kilograms.

In 2003, 6.47 million kilograms of VOCs were released to the atmosphere representing a decrease of 2.3% or 0.15 million kilogramsfrom 2002 and a 5% decrease from the 2001 baseline.

In 2001, we set a target toreduce VOC emissions to air by 30% on a per unit salesbasis by the end of 2005.While some sites are makingprogress, work will need tocontinue at other operations ifwe are to succeed in reachingthe 2005 VOC reduction target.

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Volatile Organic Compounds and PhotochemicalOzone Creation Potential (POCP) (cont.)

Air (cont.)

Volatile Organic Compounds Emitted to Air by Business

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Volatile Organic Compounds and PhotochemicalOzone Creation Potential (POCP) (cont.)

Air (cont.)

Photochemical Ozone Creation Potential

History of data changes For 2001, POCP related to solvent emissions was originally reported as 1.9 million kilograms ethylene equivalent. Changes made in 2002 and 2003 to the 2001 VOC baselinedata also resulted in changes to the 2001 POCP baseline to 2.19 million kilograms ethylene equivalent. The 2002 POCP figure was also revised from 2.14 million kilogramsethylene equivalent as reported in 2002 to 2.24 million kilograms ethylene equivalent.

VOCs are capable of producing ozone in thelower atmosphere by reaction with nitrogenoxides in the presence of sunlight. Thisphotochemical reaction results in the formationof smog, which is often worse in the hottermonths. Releases of VOCs to air can becompared on the basis of their potential tocreate ozone relative to ethylene. Conversion toethylene equivalents is based on the EuropeanChemical Industry Council (CEFIC) “ResponsibleCare HSE Reporting Guidelines” for VOCs(1998). For 2003, POCP related to solventemissions is 2.21 million kilograms ethyleneequivalent. This represents a decrease of 1.3%when compared to 2002.

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Most of the active ingredients in our pharmaceuticalproducts are manufactured using synthetic chemistryprocesses. The majority of the waste generatedcontains solvents and chemicals used in theseprocesses together with materials generated duringformulation and packaging operations. The amountsof waste from manufacturing processes are includedin our figures together with general site waste.

GSK classifies its waste into three categories: generalsite waste, solvent waste and demolition orconstruction waste. Although the definition of whatconstitutes a waste varies among countries, provincesand states, for GSK reporting purposes a material isconsidered a waste if it is no longer fit for itsoriginally intended purpose.

For consistent reporting, GSK considers a waste to behazardous if it exhibits any of a number of propertiesas defined by the Basel Convention in 1989 of theUnited Nations Environment Programme (UNEP).Included in these properties are flammability,explosivity, water or air reactivity, corrosivity, oxidisingpotential, acute or chronic toxicity, ecotoxicity orinfection. In addition, because of their nature andpotential impact on research and developmentactivities, radioactive wastes are defined ashazardous. A waste is considered to be non-hazardous if it does not exhibit any of the hazardousproperties noted above.

GSK reports four measures for waste:

• Hazardous waste disposed includeshazardous waste that has been sent tolandfill or that has been treated either onGSK property or at off-site destinations.Treatment includes processes that result inbeneficial energy or resource recovery andthose that do not. Hazardous wastedisposed does NOT include hazardouswaste recycled on site or off site ordemolition and construction-related waste.

• Non-hazardous waste disposed includesnon-hazardous waste that has been sent tolandfill or that has been treated either onGSK property or at off-site destinations.Treatment includes processes that result inbeneficial energy or resource recovery andthose that do not. Non-hazardous wastedisposed does NOT include non-hazardouswaste recycled on site or off site ordemolition and construction-related waste.

• Waste recycled includes hazardous andnon-hazardous waste (not demolition orconstruction-related waste) that has beenreused, recovered or recycled, including in-process recycling, on site and off site.

Waste

http://www.basel.int/index.html

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• Demolition and construction-related wastedisposed includes demolition andconstruction-related waste that has beensent to landfill or that has been treatedeither on GSK property or at off-sitedestinations. Treatment includes processesthat result in beneficial energy or resourcerecovery and those that do not. Demolitionand construction waste disposed does NOTinclude waste recycled on site and off site.In past years, we have included demolitionand construction related waste in the totalwaste figures. This year we report wasteassociated with demolition andconstruction activities separately because of the inconsistent nature of demolitionand construction activities and the potentialto obscure trends in site and process waste.All previous year hazardous and non-hazardous waste figures now excludedemolition and construction-related wastes.

Twenty-two projects from fifteen different globalmanufacturing operations were submitted to the GSKCEO’s EHS Excellence Awards 2003 programmedescribing waste minimisation, avoidance ormanagement initiatives. This provides an indication ofthe level at which the concept of waste managementand reduction is integrated into the business. Theprojects varied from waste recycling to avoidingwaste creation and improved classification of wastestreams. One specific example was a winning projectsubmitted jointly by two sites in India,“Biocomposting of Solid Wastes”.

Waste (cont.)


For 2003, we experienced a 1.7% decrease with60.8 million kilograms of hazardous wastedisposed. Eighty percent (80%) of the totalhazardous waste disposed in 2003 was solventwaste, 17% was general site waste and theremaining 3% was chemical, biological orradiological waste. In 2003, over 44% of allhazardous waste disposed was treated to obtainbeneficial energy or resource recovery, down from46% in 2002. However, the amount of hazardouswaste going to landfill has decreased by 32%from 2002 to 2003 due in part to better wasteclassification and use.

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Hazardous Waste

Hazardous waste disposed represents total hazardouswaste generated that was not reused, recovered orrecycled. Bioengineered and biohazardous waste isincluded in hazardous waste. Most hazardous wasteis composed of waste solvents.

Waste (cont.)

Hazardous Waste Disposed Hazardous Waste Source

History of data changesIn 2003, one key primary site improved their reporting by identifying waste streams that had not been previously considered and began reporting these hazardous wastestreams correctly in 2003. They were able to provide related waste data for 2001 and 2002 so that we could adjust the baseline and previous year’s data to provide accuratecomparisons. The 2001 baseline is now 63.2 million kilograms and the revised 2002 amount of hazardous waste disposed was 61.9 million kilograms. We also removeddemolition and construction waste from hazardous waste.


In 2001, we set a target to reduce hazardous waste disposedby 15% on a per unit sales basis by the end of 2005. Whilesome progress is being made this is an area where we willneed to focus some effort if we are to succeed in reachingthe 2005 hazardous waste disposal improvement target.

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Hazardous Waste (cont.)

Waste (cont.)

Hazardous Waste Disposed by Business

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Non-Hazardous Waste

Non-hazardous waste disposed represents total non-hazardous waste generated minus the non-hazardouswaste that has been reused, recovered or recycled. At GSK, most non-hazardous waste is general sitewaste. Biohazardous waste rendered non-hazardousafter treatment by processes such as autoclaving isalso considered a non-hazardous waste.

Waste (cont.)


In 2001, we set a target to reduce non-hazardous wastedisposed (excluding demolition and construction waste)by 8% on a per unit sales basis by the end of 2005 andwe exceeded that target in 2003.

History of data changesDemolition and construction wastes have been removed from the total non-hazardous waste figures for current and previous years. The revised figures for non-hazardouswaste disposed for 2001 and 2002 are 54.6 million kilograms and 52.5 million kilograms, respectively.

Non-Hazardous Waste Disposed Non-Hazardous Waste Source

In 2003, GSK disposed of 44.5 million kilograms of non-hazardous waste representing a greater than 18% decrease from the 2001 baseline. Site waste represents97.3% of non-hazardous waste disposed in 2003 andother (non-infectious and bio-hazardous waste) theremaining 2.7%. In 2003, 67.4% of non-hazardouswaste (excluding demolition and construction waste) wassent to landfill which has been consistent for years,67.2% and 66.3% in 2001 and 2002, respectively. Theremaining 32.6% of non-hazardous waste is sent fortreatment of which 56.6% was treated with beneficialrecovery. Many sites continue to look for ways to reducewaste and have undertaken reviews of their operationsto find ways to reduce the amount of non-hazardouswaste that must be treated or sent to landfill.

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Non-Hazardous Waste (cont.)

Waste (cont.)

Non-Hazardous Waste Disposed by Business

The 44.5 million kilograms of non-hazardous waste disposed by GSKoperations worldwide is equivalent tothe household waste produced byapproximately 37,000 UK households.

In 2003, we recycled 75.8% (329.4 millionkilograms) of the 434.7 million kilograms of wastegenerated. This was 3.5% less waste recycledcompared to 2002 but an increase of 1.2% in theproportion of waste recycled compared to 2002.Over 71% of total waste recycled was hazardouswaste, primarily solvents. As the network ofmanufacturing sites continues to change,fluctuations in waste will occur and we willcontinue to identify and implement recyclingopportunities that make sense for our operations.

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Waste Recycled

Waste recycled includes hazardous and non-hazardous waste reused, recovered or recycledincluding in-process reuse of solvents. It does notinclude demolition and construction waste.

Waste (cont.)


Proportion of Total Waste Recycled Total Waste Recycled

History of data changesIn 2001, we reported 365.8 million kilograms of recycled waste which included demolition and construction recycled waste. Review of the 2001 data and removal ofdemolition and construction recycled waste resulted in a revision of the baseline to 367.9 million kilograms.

In 2001, we set a target to increase the proportionof total waste recycled by 10% by the end of 2005but there was no progress made toward thistarget in 2002 or 2003. This is an area where wewill need to focus significant effort if we are tosucceed in reaching the 2005 waste recyclingimprovement target.

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Waste Recycled (cont.)

Waste (cont.)

Proportion of Total Waste Recycled by Business

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Demolition and Construction Waste Disposed

Waste (cont.)

Demolition and Construction Waste

Demolition and construction waste disposedincludes hazardous and non-hazardous wastefrom site demolition and construction activitiesrelated to plant upgrades and preparation forpotential site closures. In 2001, 23.0 millionkilograms of demolition and construction wastewas disposed decreasing to 15.9 millionkilograms in 2002 and then increasing again to23.4 million kilograms in 2003. The fluctuationin demolition and construction waste disposedis the reason we do not include it in otherwaste estimates. In addition to the demolitionand construction waste disposed, we recycled2.3 million kilograms in 2001, increasing to14.2 million kilograms in 2002 and decreasingagain to 1.7 million kilograms in 2003.

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Wastewater is generated from manufacturingprocesses and various site operations and containsdissolved and suspended solids. Wastewater quality is measured by Chemical Oxygen Demand (COD)which is a measure of the oxygen required tochemically oxidise organic and inorganic compoundspresent in the water. COD is therefore an indirectmeasure of the foulness of wastewater.

Wastewater


Wastewater Volume

Wastewater volume includes all manufacturingand site process wastewater as well as sanitaryand food service wastewater. Wastewaterreleased to off-site municipal sewers represents53.6% of total wastewater volume,wastewater released direct to sea, to rivers andto estuaries represents 36.7% and wastewaterthat has been reused, recovered or recycled isincluded in other and represents the remaining9.6% of the total.

In 2003, GSK generated 16.6 million cubicmetres of wastewater compared with 16.5million cubic metres generated in 2002. Aslightly greater percentage of wastewater was recycled or reused in 2003 (up from 8.5%to 9.6% or 1.6 million cubic metres ofwastewater recycled in 2003). Many GSK sitesin India and nearby regions have implemented“zero wastewater” discharge programmes dueto the restrictions on water usage in the region.In addition, other sites continue to look foropportunities to reuse and recycle wastewatersuch as the Rajahmundry site in India, whichreduced waste consumption and effluentgeneration.

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Wastewater (cont.)

Wastewater Volume by Business

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Wastewater (cont.)

Wastewater Chemical Oxygen Demand

Several GSK manufacturing operations havewastewater treatment facilities on site thatprovide secondary level treatment of theirwastewater which removes most organicpollutants by biological systems or physical or chemical treatment. Other sites do not treattheir own wastewater but send it to localpublicly-owned wastewater treatment works.

In 2003, the COD of wastewater was 23.6million kilograms, a decrease of 0.8 % from2002 and a decrease of 12.3% from the 2001baseline. Nearly 66.9% of wastewater CODwas in the wastewater released direct to seaand to estuary and 3.8% was in the recycled orreused wastewater. The remaining 28.8% wasin the wastewater sent to publicly ownedwastewater treatment works. Wastewaterreleased direct to sea, the largest volume ofwastewater that does not go to publicly ownedwastewater treatment, had associated COD of11.6 million kilograms, which is an 8.4%increase over 2002.

In 2002, GSK operations were requested to report COD after any final treatmentoccurring at a municipal or publicly ownedwastewater treatment works to provide a moreaccurate picture of the impact of GSKoperations on the final receiving waterways.However, the 2003 COD data still reflects,primarily, the COD after only on-site treatmentas it has been difficult to make the transition tothis new reporting definition. Over time, weexpect to be able to report COD both whenwastewater leaves our sites and the CODimpact to receiving water bodies.

In 2001, we set a target to reduce the COD ofwastewater effluent by 30% on a per unit salesbasis by the end of 2005. While progress towardthat target is not insignificant, we will needcontinued focus on the area if we are to succeedin reaching the 2005 improvement target.

History of data changesIn 2002, the COD of wastewater was reported as 23.2 million kilograms. During the data review in 2003, sites took the opportunity to review and refine their wastewaterdata resulting in a revision of the 2002 wastewater COD to 23.8 million kilograms and a revision of the 2001 baseline COD to 26.9 million kilograms

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Wastewater (cont.)

Wastewater Chemical Oxygen Demand by Business

93

In 2003, we collected core EHS data from sevenmajor contract manufacturers, three of which alsoreported in 2002. Manufacture of our products bythese contract manufacturers resulted in the disposal of 47,310,270 kilograms of hazardous waste and 438,720 kilograms of non-hazardous waste. It consumed 76,595 gigajoules of energy fromelectricity, 98,065 gigajoules of energy from fuels for activities not related to transport and 1,815gigajoules of energy from fuels for activities related to transport. Data from this pilot group of contractmanufacturers are not included in any of the chartsand they are not included in the verification by ERM.

As indicators of our health and safety performancewe measure:

• Work-related injuries and illnesses that areserious enough to cause the injured or illemployees to be unable to work one ormore days and the calendar days thatemployees are unable to work due to these injuries and illnesses;

• Work-related injuries and illnesses that donot cause the injured or ill employees to beunable to work;

• Work-related injuries and illnesses byconstruction contractors or contractcompanies on site that supervise and directtheir own staff and injuries and illnesses bythe seven contract manufacturers whoreport this information.

All injury and illness rates are per 100,000 hoursworked. We include in the category of employeescontract workers who are directly supervised by GSK employees. We do not currently include work-related mental illness in these rates. The total numberof cases of occupational injury with or without lostdays decreased from 1,830 in 2001 to 1,592 in 2002and 1,351 in 2003. The total number of cases ofreportable occupational illness including mental illness with or without lost days increased from 448in 2001 to 494 in 2002 and 624 in 2003. This is duein part to better recognition and reporting of work-related illnesses.

Contract Manufacturers—Environmental Impact

Health and Safety

GRI, Part C, Section 5 SocialPerformance Indicators LA7

94

Lost Time Injury and Illness

Our primary injury and illness measure is the LostTime Injury and Illness rate (the number of injuriesand illnesses that result in one or more lost work daysper 100,000 hours worked). In 2001, we set a targetto reduce this rate by 15% per year through 2005.From 2001 to 2002, the rate declined from 0.43 to0.34, a reduction of 21%; and from 2002 to 2003 it declined to 0.30, an additional 12%. Although theimprovement was not uniform for the two years andwe missed our target for 2003, if we had improvedexactly 15% per year from 2001, we would haveachieved only a rate of 0.31 in 2003.

Health and Safety (cont.)


Lost Time Injury and Illness Rate

The lost time injury rate per 100,000 hoursworked was 0.28 and the lost time illness ratewas 0.02 based on 567 lost time injuries and46 lost time illnesses. There were also 49 casesof mental ill health with lost time that are notincluded in the rate. The rate declined by 21%from 2001 to 2002 and a further 12% from2002 to 2003 for an overall improvement from2001 to 2003 of 30%.

95

Lost Time Injury and Illness (cont.)


Lost Time Injury and Illness Rate by Business

The trend is consistently improving in allbusiness units except in the one that alreadyhas the lowest rate for all three years, RegionalPharmaceutical Supply. The Biologicals businessunit is improving but has the highest rate oflost time injuries and illnesses.

96



Categories of Lost Time Illness

The three leading types of lost time injuries areslips, trips and falls followed by over-exertionstrain injuries and motor vehicle accidents. This pattern is consistent with prior years. Theleading type of lost time illness continues to be mental ill health, which we do not includein the calculation of the overall lost time injuryand illness rate. The second most frequent typeof lost time illness is musculoskeletal which isprimarily repetitive strain injury.

Categories of Lost Time Injury

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Calendar Days Lost Rate

The Lost Calendar Day rate is the number ofcalendar days that employees could not workbecause of work-related injuries and illnessesper 100,000 hours worked. This provides onemeasure of the severity of illnesses and injuriesbut it is important to remember that the ratecan vary for other reasons. Medical anddisability management practices can vary indifferent parts of the world and there are someillnesses such as hearing loss and sensitisationthat can result in permanent disability withoutresulting in lost time. These and other reasonscan both inflate and deflate the lost calendarday rate.

There were 12,344 lost days due to injury and1,377 lost days due to illness in 2003 excludingwork-related mental illness. Injuries from motorvehicle accidents caused the greatest numberof lost days from injury at 4,004, 32% of thetotal. Musculoskeletal illness, generally causedby cumulative trauma, was the leading cause oflost days from illness accounting for 1,094,79% of the lost days excluding work-relatedmental illness. Illnesses resulting in permanentdisability, such as noise induced hearing loss,sensitisations, and some cases of cancer andmusculoskeletal illness, also merit specialpreventive focus. Approximately nine percent of2003 illnesses resulted in permanent disabilities.

98

Reportable Injury and Illness Without Lost Time

The GSK Reportable Injury and Illness Without LostTime rate is the number of GSK reportable injuriesand illnesses that did not result in lost days per100,000 work hours. GSK reportable injuries and illnesses are those that are more serious than first aid but less serious than lost time.



Reportable Injury and Illness Without Lost Time Rate

There were 784 injuries without lost time and 499 illnesses without lost time with anadditional 30 cases of mental ill health without lost time.

99

Reportable Injury and Illness Without Lost Time (cont.)


Reportable Injury and Illness Without Lost Time Rate by Business

100

Reportable Injury and Illness Without Lost Time (cont.)


Categories of Reportable Illness Without Lost Time

The most frequently reportedtypes of injuries without lost timein 2003 were over-exertion,slips/trips/falls, striking/struck andcontact with sharps. This issimilar to the pattern of injuriesseen in 2002. Non-allergicdermal illnesses were the numberone type of reportable illnesswithout lost time, accounting for42% of the total. This is followedby musculoskeletal illnesses, suchas cumulative trauma at 25%, a pattern of illness similar to2002.

Categories of Reportable Injury Without Lost Time

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Contract Manufacturers—Injury and Illness

We also keep track of the injuries and illnesses thatare related to work on GSK premises but that areexperienced by people who work for othercompanies such as contract food service companies,landscape companies and maintenance companies. In 2003, the lost time injury and illness rate for thisgroup was 0.34 lost time injuries and illnesses per100,000 hours worked. This is an improvement from0.50 in 2002, but it is still one of the highest rateswhen compared to the GSK business units. The lostday rate is 3.62 calendar days lost per 100,000 hoursworked. The GSK reportable injury and illness withoutlost time rate for contract workers is 1.01 per100,000 hours worked.

Of the pilot group of seven contract manufacturers,six provided health and safety information. Employeesat these sites worked a total of 3,217,548 hours onmanufacturing GSK products. They reported 9 injurieswith no lost time, 12 injuries resulting in lost timeand 239 calendar days lost from injuries. No illnesseswere reported. The lost time injury rate for this group was 0.37 lost time injuries per 100,000 hours worked.


102

Verification Statement

GSK selected ERM (Environmental ResourcesManagement) from a group of qualifiedcompanies to serve only as the independentverifier of this report. ERM are not involved indeveloping our EHS programmes or processes or in correcting any deficiencies that they mayuncover in the verification process.

ERM was asked by GSK to independently review its2003 Environment, Health and Safety (EHS) report.This is the third EHS report produced by GSK andverified by ERM. GSK has set EHS improvementtargets to be met by 2005, and in our review thisyear we have focused on progress to date andreviewed GSK’s processes for tracking progressagainst targets.

ObjectivesThe objectives of our review were to:

• Check that the information presented isaccurate, and that it represents GSK’sperformance fairly;

• Critically review the completeness andrelevance of the information presented;

• Assess the effectiveness of GSK’s datamanagement systems.

ActivitiesBetween November 2003 and April 2004, ERM:

• Reviewed GSK’s processes for trackingprogress against EHS targets;

• Interviewed personnel responsible for datacollation, in Corporate EnvironmentalHealth and Safety (CEHS), and checkedsample data;

• Reviewed data management and reporting,and performance changes, at a crosssection of sites. This was done througheight site visits and ten telephoneinterviews. The sites selected includedmajor contributors to group-wideperformance data, from Research andDevelopment, Manufacturing andCommercial functions;

• Interviewed corporate representatives to obtain supporting information onprogrammes described in the 2003 EHS Report;

• Checked that the 2003 EHS report reflectsour findings.

Overall FindingsBased on the activities we carried out, we believe that GSK’s EHS Report is a fair and balancedrepresentation of GSK’s programmes andperformance. Subject to the comments set out below,we believe that it covers the key issues that interestedparties need to know to inform decision making (i.e.,is relevant), does not avoid major issues (i.e., iscomplete) and that it fairly reflects GSK’s EHSmanagement and performance (i.e., is accurate).

Reporting ScopeGSK has broadened the scope of its reporting thisyear, to address in greater depth issues relating to the impact of its products; particularly the fate ofpharmaceuticals in the environment. In addition,


Verification Statement

103

GSK has included limited reporting of the EHS performance of contract manufacturers andsuppliers (these data were not included within thescope of ERM’s review).

In this report, GSK compares EHS performance in2003 against a 2001 baseline. We feel that GSKneeds to describe more clearly the causes foremerging performance trends. Specifically, it needs to explain the extent to which performance trendsresult from production changes or improvementprogrammes at manufacturing sites.

Tracking Progress Against TargetsIn 2003, GSK established a process for reviewingprogress towards group targets. Manufacturing sitesrevised or renewed their improvement targets for keyperformance indicators, and took part in divisionalmeetings to discuss past performance. This processhas enabled sites to share good practice onenvironmental improvement initiatives.

However, GSK has not determined whetherachievement of the renewed targets set by theirmanufacturing sites will ensure that groupenvironmental performance targets for 2005 are met.

Performance DataBuilding on improvements made in 2002, GSK has made further significant improvements to datacollation, management and reporting systems overthe last 12 months. The most notable improvements include:

• A greater focus on material contributors,when checking site environmental data;

• Development of a training programme for site personnel to improve consistencyand accuracy of reporting of health andsafety data;

• Visits to major sites by the corporateenvironmental data reviewers, to betterunderstand data and reporting challenges;

• A more detailed review and validation ofsite performance data by site EHS personnel

at the sites, once it has been collated intothe group KPIs.

In reviewing corporate databases and the draft EHS report, ERM identified a number of errors inperformance data that were material in group terms.The errors resulted from miscalculations in corporatedata collation spreadsheets that were newlydeveloped during 2003. They included an error in thesummation of energy consumption that had resultedin 4% over-reporting of total global warmingpotential. GSK resolved these errors to ensureaccurate reporting in the 2003 EHS report.

Recommendations We recommend that GSK:

• Reports more explicitly on the reasons forperformance trends, by describing therelative influences of production changesand improvement programmes;

• Assesses whether achievement of therenewed site improvement targets willenable GSK to achieve its 2005 groupperformance targets;

• Introduces independent, internal checkingof the corporate data collationspreadsheets as a means of quality control;

• Provides more interpretation of theperformance data reported by contractmanufacturers.

ERMApril 2004

Verification Statement (cont.)

GRI Part C, Section 2.20 and 2.21Report Profile

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Global Reporting InitiativeContent Index


GRI Requirements

1.1 Statement of the organisation’s vision and strategyregarding its contribution to sustainable development

Present overall vision for the future, particularly with regard tomanaging the challenges associates with economic, environmentaland social performance answering, at a minimum the followingquestions

• What are the main issues for the organisation related tothe major themes of sustainable development

• How are stakeholders included in identifying theseissues

• For each issue, which stakeholders are most affected bythe organisation

• How are these issues reflected in the organisation’svalues and integrated into the business strategies

• What are the organisation’s objectives and actions onthese issues

1.2 CEO Statement (or equivalent senior manager)describing key elements of the report

Recommended elements of a CEO statement include

• Highlights of report content and commitment to targets

• Description of the commitment to economic,environmental and social goals

• Statement of successes and failures

• Performance against benchmarks such as previous yearperformance, targets and industry sector norms

• Approach to stakeholder engagement

• Major challenges in integrating responsibilities forfinancial performance with those for economic,environmental and social performance includingimplications for future business strategy

What we report

Statements of vision and strategy in this report arelimited to the EHS elements of sustainability.Additional related information can be found in othersections of gsk.com.

Please see:Environment, Health and Safety Vision, page 10Plan for Excellence, page 14Stakeholder Communication, page 38Issues, page 45

1. Vision and Strategy

Please see:Executive Statements, page 3Targets, page 16Stakeholder engagement, page 38

GRI, Part C, Section 4 GRIContent Index

105

Global Reporting InitiativeContent Index (cont.)

GRI Requirements

Organisational Profile

2.1 Name of reporting organisation

2.2 Major products

2.3 Operational structure of the organisation

2.4 Description of major divisions, operating companies,subsidiaries and joint ventures

2.5 Countries in which the organisation's operations arelocated

2.6 Nature of ownership; legal form

2.7 Nature of markets served

2.8 Scale of reporting organisation

• Number of employees

• Products produced (quantity or volume)

• Net sales

• Total capitalisation broken down in terms of debt andequity

• Value added

• Total assets

Breakdowns of

• Sales by countries/regions that make up 5 percent ormore of total revenues

• Major products

• Costs by country/region

• Employees by country/region

This should include indirect employees

What we report

Please see:About GSK on gsk.com

2. Profile

www.gsk.com/about/about.htm

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GRI Requirements

Organisational Profile (cont.)

2.9 List of stakeholders

List and relationship to organisations such as

• Communities (locations, nature of interest)

• Customers

• Shareholders

• Suppliers

• Trade unions

• Workforce

• Other stakeholders

Report Scope

2.10 Contact person

2.11 Reporting period

2.12 Date of most recent previous report

2.13 Boundaries of report (countries, regions, products,services, divisions, facilities, joint ventures, subsidiaries),any specific limitations

2.14 Significant changes in size structure, ownership orproducts

2.15 Basis for reporting on joint ventures, partially ownedsubsidiaries, leased facilities, out-sourced operations andother situations that can affect comparability from periodto period

2.16 Nature and effect or any re-statements of informationfrom earlier reports

What we report

Please see:Stakeholder Communication, page 38

2. Profile (cont.)

Please see:Scope, page 1

There are statements throughout the performancesection, page 57, giving details of the history ofchanges to measures

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GRI Requirements

Report Profile

2.17 Decision not to apply GRI

2.18 Criteria and definitions used in accounting foreconomic, environmental and social costs and benefits

2.19 Significant changes from previous years in themeasurement methods applied to key economic, social andenvironmental information

2.20 Policies and internal practices to enhance and provideassurance about the accuracy, completeness and reliabilitythat can be placed on the sustainability report

2.21 Policy and current practice with regard to providingindependent assurance for the full report

2.22 Means by which users can obtain additionalinformation and reports about economic, social andenvironmental aspects of the organisation’s activities

Structure and Governance

3.1 Governance structure of the organisation, includingmajor committees under the board of directors that areresponsible for setting strategy and for oversight of theorganisation.

3.2 Percentage of the board of directors that areindependent, non-executive directors.

3.3 Process for determining the expertise board membersneed to guide the strategic direction of the organisation,including issues related to environmental and social risksand opportunities.

3.4 Board level processes for overseeing the organisation’sidentification and management of economic, environmental and social risks and opportunities.

What we report

This publication is dedicated to the EHS aspects ofsustainability

Measurement methods explained for all measures.

Please see:Performance, page 57

Please see:ERM Verification Statement, page 102

Please see:GSK Publications on gsk.com

2. Profile (cont.)

3. Governance Structure and Management Systems

Please see:Organisation, page 18

www.gsk.com/about/downloads.htm

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GRI Requirements

Structure and Governance (cont.)

3.5 Linkage between executive compensation andachievement of the organisation’s financial and non-financial goals (e.g., environmental performance, labourpractices).

3.6 Organisational structure and key individuals responsiblefor oversight, implementation and audit of economic,environmental, social and related policies.

3.7 Mission and values statements, internally developedcodes of conduct or principles and policies relevant toeconomic, environmental and social performance and thestatus of implementation.

3.8 Mechanisms for shareholders to providerecommendations or direction to the board of directors.

Stakeholder Engagement

3.9 Basis for identification and selection of majorstakeholders.

3.10 Approaches to stakeholder consultation reported interms of frequency of consultations by type and bystakeholder group.

3.11 Type of information generated by stakeholderconsultations.

3.12 Use of information resulting from stakeholderengagements.

What we report

3. Governance Structure and Management Systems (cont.)

Please see:Stakeholder Communication, page 38

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GRI Requirements

Overarching Policies and Management Systems

3.13 Explanation of whether and how the precautionaryapproach or principle is addressed by the organisation.

3.14 External developed, voluntary economic,environmental and social charters, sets of principles orother initiatives to which the organisation subscribes orwhich it endorses.

3.15 Principal memberships in industry and businessassociations and/or national and international advocacyorganisations.

3.16 Policies and/or systems for managing upstream anddownstream impacts including: supply chain managementas it pertains to outsourcing and supplier environmentaland social performance Product and service stewardshipinitiatives.

3.17 Reporting organisation’s approach to managingindirect economic, environmental and social impactsresulting from its activities.

3.18 Major decisions during the reporting period regardingthe location of, or changes in, operations.

3.19 Programmes and procedures pertaining to economic,environmental and social performance. Include discussionof:

• Priority and target setting

• Major programmes to improve performance

• Internal communication and training

• Performance monitoring

• Internal and external auditing

• Senior management review

What we report


Please see:Contract Manufacturers and Key Suppliers, page 24Designing Products for Environmental Sustainability, page 45

Please see:Targets, page 16Environmental Programmes, page 27Performance, page 57Audit, page 37

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GRI Requirements

Overarching Policies and Management Systems (cont.)

3.20 Status of certification pertaining to economic,environmental and social management systems. Includeadherence to environmental management standards, labouror social accountability management systems or othermanagement systems for which formal certifications isavailable.

What we report


Please see:Certification of EHS Management Systems, page 38

4. GRI Content Index

4.1 A table identifying location of each element of the GRIReport Content, by section and indicator

This table

5. Performance Indicators

Economic Performance Indicators

Environmental Performance Indicators

Materials

EN1 - Total materials use other than water, by type. Providedefinitions used for types of materials. Report in tonnes, kilogramsor volume.

EN2 - Percentage of materials used that are wastes (processed orunprocessed) from sources external to the reporting organisation.Refers to both post-consumer recycled material and waste fromindustrial sources. Report in tonnes, kilograms or volume.

Economic performance indicators are beyond thescope of the EHS report and web site

Bold numbers are core indicators

We report kilograms of volatile organic compoundsbut we do not report other materials specifically.

Please see:Volatile Organic Compounds, page 77

We have recycled solvents from our own operations,and we may have recycled packaging material fromour own processes. We don’t collect any informationabout recycled material from outside sources.

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GRI Requirements

Energy

EN3 - Direct energy use segmented by primary source. Report onall energy sources used by the reporting organisation for its ownoperations as well as for the production and delivery of energyproducts (e.g., electricity or heat) to other organisations in joules

EN4 - Indirect energy use. Report on all energy used to produceand deliver energy products purchased by the reporting[ organisation (e.g., electricity or heat)

EN17 - Initiatives to use renewable energy sources and to increaseenergy efficiency

EN18 - Energy consumption footprint (annualised lifetime energyrequirement) of major products in joules

EN19 - Other indirect (upstream or downstream) energy use andimplications such as organisational travel, product life cyclemanagement and use of energy intensive materials

Water

EN5 - Total water use

EN20 - Water sources and related ecosystems/ habitatssignificantly affected by use of water. Include Ramsar-listedwetlands and the overall contribution to resulting environmentaltrends

EN21 - Annual withdrawals of ground and surface water as apercent of annual renewable quantity of water available from thesources. Breakdown by region

EN22 - Total recycling and reuse of water. Include wastewater andother used water (e.g., cooling water)

What we report

Please see:Energy, page 61

Please see:Energy, page 61

5. Performance Indicators (cont.)

Not collected centrally

Not collected

Please see:Global Warming Potential from Transport, page 70

Please see:Water, page 63




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GRI Requirements

Biodiversity

EN6 - Location and size of land owned, leased, or managed inbiodiversity-rich habitats.

EN7 - Description of the major impacts on biodiversity associatedwith activities and/ or products and services in terrestrial,freshwater and marine environments

EN23 - Total amount of land owned, leased or managed forproduction activities or extractive use

EN24 - Amount of impermeable surface as a percentage of landpurchased or leased

EN25 - Impacts of activities and operations on protected andsensitive areas (e.g., IUCN protected area categories 1-4, worldheritage sites, and biosphere reserves)

EN26 - Changes to natural habitats resulting from activities andoperations and percentage of habitat protected or restored.Identify type of habitat affected and its status

EN27 - Objectives, programmes and targets for protecting andrestoring native ecosystems and species in degraded areas

EN28 - Number of IUCN Red List species with habitats in areasaffected by operations

EN29 - Business units currently operating or planning operationsin or around protected or sensitive areas

What we report



Please see:Biodiversity, page 51








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GRI Requirements

Emissions, Effluents and Waste

EN8 - Greenhouse gas emissions (CO2, CH4, N2O, HFCs, PFCs, SF6)Report separate subtotals for each gas in tonnes and in tonnes ofCO2 equivalent for direct emissions from sources owned orcontrolled by the reporting entity; and indirect emissions fromimported electricity heat or steam according to the WRI-WBCSD GHG protocol

EN9 - Use and emissions of ozone-depleting substances. Reporteach figure separately in accordance with Montreal protocolannexes A B C and E in tonnes of CFC11 equivalent (ODP)

EN10 - NOX, SOX and other significant air emissions by typeincluding emissions of substances regulated under local laws andregulations, Stockholm POPs Convention; Rotterdam Conventionon Prior Informed Consent; Helsinki, Sofia and Geneva Protocolsto the Convention on Long Range Trans-Boundary Air Pollution

EN11 - Total amount of waste by type and destination wheredestination refers to the method by which waste is treated,including composting, reuse, recycling, recovery, incineration, orlandfilling. Explain type of classification method and estimationmethod

EN12 - Significant discharges to water by type according to GRIWater Protocol

EN13 - Significant spills of chemicals, oils and fuels in terms oftotal number and total volume, significance is defined in terms ofboth the size of the spill and impact on the surroundingenvironment

EN30 - Other relevant indirect greenhouse gas emissions (CO2,CH4, N2O, HFCs, PFCs, SF6), refers to emissions that are aconsequence of the activities of the reporting entity, but occurfrom sources owned or controlled by another entity, report intonnes of gas and tonnes of CO2 equivalent

What we report


Please see:Global Warming Potential from Energy, page 65

Please see:Ozone Depletion Potential from Ancillary Use, page 72

Please see:Sulphur Dioxide and Nitrogen Oxides, page 72Volatile Organic Compounds, page 77

Please see:Hazardous Waste, page 82

Please see:Wastewater Volume, page 89

Please see:Fines, Penalties and Serious Events, page 58

Not reported

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GRI Requirements

Emissions, effluents and waste (cont.)

EN31 - All production, transport, import or export of any wastedeemed Hazardous under the terms of the Basel ConventionAnnex I, II, III and VIII

EN32 - Water sources and related ecosystems/ habitatssignificantly affected by discharges of water and runoff. IncludeRamsar-listed wetlands and the overall contribution to resultingenvironmental trends according to the GRI Water Protocol

Suppliers

EN33 - Performance of suppliers relative to environmentalcomponents of programmes and procedures described inresponse to Governance Structure and Management Systemssection

Products and services

EN14 - Significant environmental impacts of principal productsand services, describe and quantify where relevant

EN15 - Percentage of the weight of products sold that isreclaimable at the end of the products’ useful life and percentagethat is actually reclaimed, reclaimable refers to either the recyclingor reuse of the product materials or components

What we report


Not reported


Please see:Contract Manufacturers—Environmental Impact, page 93

Only reported for ozone depletion potential frommetered dose inhaler use

Please see:Ozone Depleting Substances, page 72Ozone Depletion, page 48


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GRI Requirements

Compliance

EN16 - Incidents of and fines for non-compliance with allapplicable international declarations/ conventions/ treaties, andnational, sub-national, regional and local regulations associatedwith environmental issues, explain in terms of countries ofoperations

Transport

EN34 - Significant environmental impacts of transportation usedfor logistical purposes

Overall

EN35 - Total environmental expenditures by type, explaindefinitions used for types of expenditures

Social Performance Indicators: Labour Practicesand Decent Work

Employment

LA1 - Breakdown of workforce, where possible, by region/country, status (employee/ non-employee), employment type (fulltime/ part time), and by employment contract (indefinite orpermanent/ fixed term or temporary). Also identify workforceretained in conjunction with other employers (temporary agencyworkers or workers in co-employment relationships) segmentedby region/ country

LA2 - Net employment creation and average turnover segmentedby region/ country

LA12 - Employee benefits beyond those legally mandated (e.g.,contributions to health care, disability, maternity, education andretirement)

What we report


Please see:Fines, Penalties and Serious Events, page 58

Please see:Global Warming Potential from Transport, page 65

Out of scope

Please see:Costs, page 59

Social performance indicators are beyond thescope of the EHS report and web site except forthose related to employee health and safety.Many of the issues are covered in Making aDifference Every Day – Corporate ResponsibilityReport 2003

Please see:Human Immunodeficiency Virus, page 35

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GRI Requirements

Labour/ Management Relations

LA3 - Percentage of employees represented by independent tradeunion organisations or other bona fide employee representativesbroken down geographically or percentage of employees coveredby collective bargaining agreements broken down by region/country

LA4 - Policy and procedures involving information, consultation,and negotiation with employees over changes in the reportingorganisation’s operations (e.g., restructuring)

LA13 - Provision for formal worker representation in decisionmaking or management, including corporate governance

Health and Safety

LA5 - Practices on recording and notification of occupationalaccidents and diseases and how they relate to the ILO Code ofPractice on Recording and Notification of Occupational Accidentsand Diseases

LA6 - Description of formal joint health and safety committeescomprising management and worker representatives andproportion of workforce covered by any such committees

LA7 - Standard injury, lost day and absentee rates and number ofwork-related fatalities including subcontracted workers

LA8 - Description of policies or programmes for the workplaceand beyond on HIV/AIDS

LA14 - Evidence of substantial compliance with the ILO Guidelinesfor Occupational Health Management Systems

LA15 - Description of formal agreements with trade unions orother bona fide employee representatives covering health andsafety at work and proportion of the workforce covered by anysuch agreements

What we report


Out of scope

Please see:Health and Safety, page 93


Please see:Fatalities and Serious Occupational Injuries, page 58Lost Time Injury and Illness, page 94

Please see:Framework, page 8


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GRI Requirements

Training and Education

LA9 - Average hours of training per year per employee bycategory of employee (e.g., senior management, middlemanagement, professional, technical, administrative, productionand maintenance)

LA16 - Description of programmes to support the continuedemployability of employees and to manage career endings

LA17 - Specific policies and programmes for skills management orfor lifelong learning

Diversity and Opportunity

LA10 - Description of equal opportunity policies or programmes,as well as monitoring systems to ensure compliance and results ofmonitoring. Equal opportunity policies may address workplaceharassment and affirmative action relative to historical patterns ofdiscrimination

LA11 - Composition of senior management and corporategovernance bodies (including the board of directors) includingfemale/ male ratio and other indicators of diversity as culturallyappropriate

Human Rights

Society

Product Responsibility

What we report


Out of scope

Out of scope

Section is out of scope



UKGlaxoSmithKline Corporate Environment, Health and Safety 980 Great West Road Brentford Middlesex TW8 9GS United Kingdom

USAGlaxoSmithKline Corporate Environment, Health and Safety2200 Renaissance Blvd, Suite 105 King of Prussia Pennsylvania 19406-2755 United States of America

© 2004 GlaxoSmithKline

MAKING A DIFFERENCE EVERY DAY - GSK · 2017-02-28 · MAKING A DIFFERENCE EVERY DAY Sustainability...

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