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Energy efficiency

Evidence continues to grow that the planet is warming. Temperature records are considered sufficiently reliable to demonstrate that global temperatures are now significantly warmer than the historical average. Indicators such as tree rings, coral layering and glacier records provide further evidence. If the current trend continues the United Nations expects that numerous plant and animal species will become extinct and that the frequency of extreme weather events such as severe storms, floods and droughts will increase.

Although our understanding is still incomplete there is international consensus that action should be taken to tackle global warming and climate change. The United Nations Framework Convention on Climate Change entered into force in 1994 and this Convention recognises that the climate system is a shared resource, which can be affected by industrial and other emissions of carbon dioxide and other heat-trapping gases. The Kyoto Protocol was adopted in 1997 and established the mechanisms that governments can use to limit or reduce their greenhouse gas emissions. Russia was the last country to ratify the treaty and it will enter into force 16 February 2005. The protocol contains legally binding emissions targets for 36 industrialised countries. These countries must reduce their collective emissions of six key greenhouse gases by at least five per cent by 2008 - 2012 compared to 1990 levels. Emission targets can be achieved by using:

  • International “emissions trading” which enables industrialised countries to buy and sell emission trading credits amongst themselves;
  • Clean Development Mechanism (CDM) projects that enable industrialised countries to finance emission reduction projects in developing countries in return for credits against their Kyoto targets; and
  • Cooperation projects under the Joint Implementation scheme which allows developed countries to fund emission reduction projects in other developed countries.

Although the US and Australia have stated that they will not ratify the protocol, ratification will provide GSK with opportunities to reduce its emission of greenhouse gases using these mechanisms.

In advance of international agreement on Kyoto, the UK established its own emissions trading scheme in 2002. A number of UK facilities joined this scheme and have gained experience of carbon trading. The European Union (EU) has also taken unilateral action to control greenhouse gases and an EU Emissions Trading Scheme (ETS) has been in place since 2005.  This scheme has capped the emission of carbon dioxide from sixteen of GSK’s European facilities.

Work to improve GSK’s energy efficiency is coordinated by the Global Utilities Team, which consists of representatives from all manufacturing divisions and Research & development. This group meets several times per year to share best practice and to coordinate improvement initiatives.


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Corporate Responsibility
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