In keeping with GlaxoSmithKline’s global quest to improve the quality of human life, environment, health and safety (EHS) issues are very important to the new company. The GlaxoSmithKline Vision for Environment, Health and Safety has been adopted and work is proceeding on agreeing the EHS policy. A corporate EHS function has been formed and is responsible for recommending policy and strategy, providing direction and support for significant issues. It will also develop standards appropriate to business needs.

The main task in 2001 will be to integrate programmes from both companies into new GlaxoSmithKline EHS programmes that take the best from both companies. In view of the similarities and the commitment of all managers and staff to high standards of EHS practice, it is expected that the merger will result in continued improvement in EHS performance. GlaxoSmithKline will monitor progress and report against a set of goals and targets that will be developed during 2001.

Further information on EHS in GlaxoSmithKline can be found in the EHS Review available from the Secretariat at the company’s head office.

EHS management system
Successful management of environment, health and safety has been a high priority for both Glaxo Wellcome and SmithKline Beecham. Both companies had global standards and guidelines on Environment, Health and Safety issues. These set key requirements for implementation of policy and programmes based on the management systems model of the International Standards Organisation (ISO). The GlaxoSmithKline EHS department will be evaluating the possibility of Group-wide ISO certification of the new EHS management system that will be put in place.

Glaxo Wellcome and SmithKline Beecham both performed audits to assess and report on implementation of corporate policy and performance against the established global standards. In 2000 the two companies performed over 57 audits in 26 countries including 19 contract manufacturing and key supplier audits.

EHS awards
Both Glaxo Wellcome and SmithKline Beecham had internal award schemes designed to reward innovation and outstanding achievements in EHS management. Further information can be found in the EHS Review.

Goals and targets
The broad goal for EHS in the new company is to integrate the best of each company into a combined EHS programme that will be recognised as a leader in the industry. In the first year the Group expects to develop EHS standards and a management system and start the process for company-wide ISO 14001 certification. The data that each company has collected will be analysed and evaluated to develop a baseline for the combined company with annual improvement targets through to 2005.

It is also intended to explore the impact of implementation of sustainable development principles in GlaxoSmithKline.

Chlorofluorocarbons (CFCs)
As the world’s leading provider of metered-dose-inhalers (MDIs) for the treatment of respiratory tract diseases, GlaxoSmithKline is currently changing the propellant in MDIs from CFCs to non-ozone depleting HFC 134a. Ventolin MDIs using the new propellant have been launched in 41 countries and Flixotide MDIs using HFC134a launched in 22 countries. The aim is to make the transition as smooth as possible so that doctors, nurses, pharmacists and most importantly, patients feel comfortable with, and continue to use, the reformulated products. In addition, sales of Diskus, the dry powder inhaler continue to grow and demonstrate the commitment to providing choice for healthcare providers and patients.

Contract manufacturing
Because of the increasing use of external contract manufacturers and suppliers for supplying active ingredients, fine chemical intermediates and finished products, GlaxoSmithKline will continue to integrate EHS into contracts, audit contract manufacturers and key suppliers against GlaxoSmithKline EHS standards and measure their EHS performance to manage potential threats to supply chain security.

Contaminated land
In the UK, statutory provisions for dealing with historically contaminated land have been introduced by virtue of Part IIA of the Environmental Protection Act 1990 (by insertion of Section 56 of the Environment Act 1995). A review has been carried out of all available data at 12 operational facilities in the UK to determine if any could be designated as contaminated land under the new regime. The review indicated that eight facilities are unlikely to be designated as contaminated land and that additional data was needed for the other four facilities. Further studies at these sites are being arranged to collect more data. In the USA in 2000, the Group remained actively involved in the resolution of 11 remedial sites, all of which are in mid to late stages of remediation.

More recent contaminated land issues include a site in the UK for which agreement has been reached with the local planners regarding demolition and remediation. Negotiations are currently under way to agree cleanup standards with the North Carolina State regulatory agency to remediate soil and groundwater contamination at two sites.

Provision has been made in the financial statements for estimated costs of remediation.

Regulatory compliance
Although every effort is made to ensure full and effective legal compliance, an occasional event may result in permit or regulatory breaches. If they occur, they are taken very seriously and steps are taken to prevent any future occurrences.

Major environmental improvement projects
The Ulverston antibiotics site in the UK is currently engaged in a £7 million project to upgrade the treatment of its site wastewater. At the Irvine, Scotland antibiotics facility, £8 million has been approved for the construction of a high temperature composting unit for waste sludge generated by the onsite wastewater treatment plant.