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Lilly Sustainability Report: GHG, Energy Intensities Fall

Lilly has released its 2012-13 Corporate Responsibility Report. Highlights include:

GHGs

  • During 2012, the company’s Scope 1 and Scope 2 GHGs rose by less than one percent versus 2011, to 1,580,000 metric tons CO2e.
  • Lilly’s GHG emissions intensity fell from 71.8 metric tons CO2e per thousand square feet in 2011 to 70.5 in 2012.
  • Intensity improved by almost 17 percent compared with 2007, surpassing the company’s goal of a 15 percent improvement by 2013.
  • Lilly is also targeting a 20 percent GHG intensity improvement from 2012 to 2020.

Energy

  • In 2012, Lilly’s energy use rose almost 1 percent over 2011 levels, to 10,900,000 million BTUs.
  • Energy intensity fell from 495 tons CO2e per thousand square feet in 2011 to 488 in 2012.
  • Since 2007, energy intensity improved by nearly 18 percent, exceeding the company’s goal of a 15 percent reduction by 2013.
  • Lilly is also targeting a 20 percent energy efficiency improvement from 2012 to 2020.
  • Lilly’s manufacturing site in Augusta, Georgia optimized the operation of its air compressors to virtually eliminate unneeded use during the facility’s fermentation cycles, cutting energy use related to compressed air by 43 percent and saving $290,000 during 2012.
  • Since 2007, energy audit findings have helped save about $137 million in cumulative costs and more than 800,000 metric tons of GHGs.

Renewables and cogeneration

  • Lilly generates electricity from solar photovoltaics at three facilities.
  • At a fourth site, Lilly has entered into an agreement to purchase solar power from a third-party provider building an adjacent array of nearly 10 MW.
  • The company also makes direct and indirect purchases of renewable energy from local utilities.
  • Three Lilly sites feature 10 MW, 4.3 MW, and 2.4 MW cogeneration units.

Water

  • From 2011 to 2012, Lilly’s water intensity held steady at 0.549 million liters per million $ revenue.
  • Water intake fell more than 9 percent over the year, to 12.4 billion liters.
  • Major contributing factors included implementation of a product-recovery process and pumping improvements.
  • The company is aiming to cut absolute water intake by 5 percent by 2013, from a 2010 baseline. By 2012 it had found a three percent reduction.
  • Lilly is targeting a 15 percent absolute reduction of phosphorus emissions in wastewater by 2020, from a 2014 baseline.
  • A Lilly evaluation of over 100 contract manufacturing sites determined that extended periods of drought should not significantly impact its business.
  • The company captures 90 percent of rainwater falling on its headquarters site in Indianapolis, cutting the facility’s storm water impact by 45 million liters a year.

Waste

  • Total waste generation rose by nearly 15 percent from 2011 to 2012, to 278,000 metric tons.
  • The company blames this rise on increases in production – specifically, increases in fermentation waste and a sizable amount of concrete and soil waste (must of which was reused) from construction at one site.
  • Waste generation intensity also rose substantially, from 10.7 metric tons per million $ revenue in 2011 to 12.3 in 2012.
  • During 2012, 11 Lilly sites reported “zero-landfill” status, meaning they send less than 0.5 percent of generated waste to landfill.
  • Waste to landfill rose from 10,900 metric tons in 2011 to 12,300 in 2012.
  • By 2020, Lilly is targeting a 20 percent improvement in waste efficiency from a 2012 baseline, while increasing its recycling rate above 70 percent and decreasing waste to landfill below 10 percent of total waste.
  • Lilly’s R&D facility in the UK achieved zero-landfill status in 2011, but in 2012 incorporated further changes that cut cost per metric ton of waste disposal by 15 percent, and cut the number of waste-handling methods from 22 to 6.

Other emissions

  • Between 2007 and 2012, total air emissions (not including GHGs) decreased by nearly 54 percent, largely driven by changes in manufacturing processes.
  • Emissions decreased in all categories except VOCs, which rose due to increased production rates.

Data and reporting

  • Bureau Veritas provided independent verification of GHG emissions data for Scopes 1, 2, and 3, and verified percentage decrease from 2007 and 2011 for energy intensity, waste to landfill and water intake.
  • Lilly has initiated a project to gather energy and GHG data from key suppliers to more effectively assess Scope 3 emissions.

Takeaway: The report is clear and comprehensive, and shows Lilly making good progress and meeting goals on several environmental fronts. Waste generation intensity is one area in which performance has worsened in the past year.

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