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Energy consumption

Energy use from our facilities accounts for 66% of GSK’s global warming impact. In 2004, we used 19 million gigajoules of energy - equivalent to the energy consumed in one year by approximately 236,000 UK households. This produced emissions of 1,750 million kg CO₂. We bought 41% of our energy as electricity and a small amount (1%) as municipal steam or hot water. The rest was generated from fuel combustion on-site.

In 2004 we developed a draft position statement on our future use of energy, which will be finalised in 2005. This was in response to feedback showing that energy use is a key area of concern among our stakeholders. The draft position sets out a strategy for reducing greenhouse gas emissions through energy efficiency, renewable energy and emissions trading. It also acknowledges that climate change may affect disease patterns and proposes that GSK should support research to help society plan for the consequences of climate change.

In 2004, we continued to work on a number of energy efficiency initiatives. For example, in the UK GSK partnered with the Carbon Trust to reduce energy consumption through energy audits and raising employees’ awareness. In the US we joined the Energy Star programme which encourages businesses to increase their energy efficiency and share best practice.

In the UK, we installed two wind turbines at our Barnard Castle facility.

A number of our UK sites are participating in the government's emissions trading scheme (ETS) - helping us to gain experience in carbon trading. The UK ETS is a voluntary scheme which rewards companies that improve energy efficiency with reductions in the tax they pay on energy consumption. Sites that keep emissions below an agreed target can bank the spare credits to help with compliance in subsequent years or can sell the credits to other participants in the scheme. By the end of 2004, GSK had banked more than 50,000 carbon credits which can be used to help us keep within targets in the future. We plan to participate in the EU Emissions Trading Scheme which began at the start of 2005. We estimate that more than 50% of our carbon dioxide emissions from energy worldwide will be regulated under the EU Scheme.

Year	Steam imported	Electricity imported	Non-transport fuels
	(million gigajoules)
2001	0.3	8.1	12.2
2002	0.1	8.2	11.7
2003	0.2	8.2	11.6
2004	0.2	7.8	11.0

Per unit sales as percentage of 2001 baseline
2001	2002	2003	2004	2005
100%	94.1%	92.7%	93.1%	92.0%

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Business	2001	2002	2003	2004
	(million gigajoules)
01. R&D	5.11	4.80	4.91	4.84
02. Biologicals	1.23	1.22	1.32	1.32
03. Consumer healthcare	1.90	1.90	2.01	2.15
04. New product and global supply	2.03	2.05	2.02	2.04
05. Regional pharma supply	2.03	1.95	1.75	1.77
06. Primary supply and antibiotics	7.93	7.24	6.85	5.77
07. Commercial	0.04	0.63	0.83	0.87
08. Other	0.26	0.21	0.23	0.23

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Year	Steam imported	Electricity imported	Non-transport fuels
	(million kg CO2 equivalent)
2001	37	1,107	748
2002	9	1,116	714
2003	11	1,117	705
2004	11	1,061	677

Per unit sales as percentage of 2001 baseline
2001	2002	2003	2004	2005
100%	93.9%	92.8%	93.1%	92.0%

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Business	2001	2002	2003	2004
	(million kg CO2 equivalent)
01. R&D	499.71	464.5	474.54	468.49
02. Biologicals	80.75	80.62	86.92	87.61
03. Consumer healthcare	208.27	201.73	208.58	223.73
04. New product and global supply	178.90	180.30	172.51	172.86
05. Regional pharma supply	214.69	205.83	185.29	178.87
06. Primary supply and antibiotics	674.28	623.87	598.57	509.17
07. Commercial	5.99	66.52	88.08	90.16
08. Other	29.37	15.78	18.74	18.77

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