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Energy and global warming potential

An increase in greenhouse gases in the atmosphere is thought by many scientists to be causing a rise in the earth’s temperature, known as "global warming". Burning fossil fuels for heat and power releases carbon dioxide (CO₂) – the most significant greenhouse gas.

In 2001 we set a target for 2005 to reduce the global warming potential of energy per unit sales by 8%. We more than met this target and achieved a 13% reduction per unit sales, as we report in the energy section.

GSK’s global warming impact comes mainly from the energy used in our facilities (manufacturing, R&D and office sites) which accounts for two-thirds of our carbon dioxide emissions. This is where we are concentrating efforts to reduce emissions, although we are also working on emissions from transport, and compounds we use in our products.

We use compounds that contribute to global warming in producing metered dose inhalers and in some ancillary equipment. Compounds which contribute to global warming are also released when patients use metered dose inhalers. They include CFCs and HCFCs (which also deplete the ozone layer) and HFCs. We report emissions of ozone depleting compounds in the ozone depletion section. See also product stewardship for more about the use of ozone depleting compounds in our products.

Carbon dioxide and methane from waste treatment and fermentation also account for 6% to our global warming impact.

We will continue working to minimise energy use and emissions in the face of significant challenges. Expected growth in new products will require additional equipment which will require additional energy. We will work to balance this growth by continuing to find opportunities for greater efficiencies in new and existing facilities and operations. As a result, we expect energy use and related CO₂ emissions to reduce by 1% per unit sales each year until 2010.

Performance

Global warming potential decreased in 2005 by 1% (compared to 2004) and 25% since 2001.

Note to Global Warming Charts
Our global warming impact from energy is calculated using conversion factors from the World Business Council For Sustainable Development (WBCSD) / World Resources Initiative (WRI) Greenhouse Gas Protocol Initiative, September 2001, its Stationary and Mobile Combustion Workbooks, and the Intergovernmental Panel on Climate Change (1996).

We use conversion factors from the UK Department for Environment Food and Rural Affairs to calculate CO₂ from business air travel and air freight.

We will investigate and assess the use of updated conversion factors for energy beginning in 2006.

Energy Use From our Facilities includes all energy consumed at GSK facilities in the form of electricity and steam purchased and fuels burned in fixed combustion equipment on site, including emergency generators. Figures include fuels used to generate steam and electricity on-site but not fuel for on-site transport. The energy consumption section of this report includes a breakdown of energy data.

Transport includes business travel by air (including transatlantic flights between the US and UK, flights within the EU and US for routine business activities, and flights originating in the UK to large group events such as sales conventions), business travel by road (including company-owned vehicle fleets, primarily our global sales fleet), and product freight by air. The increase in global warming potential from transport since 2001 is mainly because we have improved our reporting systems to more comprehensively collect transport data. For example, the 2001 data did not include business air travel within the EU and US and did not include UK and international sales fleet travel.

The data do not include employee travel to work. We do not collect data for flights originating in the US to large group events or for other modes of business travel including rail and bus. We do not calculate CO₂ emissions from road, rail or sea freight transport because our central data collection system is not as robust in these areas and the impacts are small when compared to those of air freight transport. The transport section of this report includes a breakdown of transport data.

The ozone depletion data does not include CFCs released from patients’ use of metered dose inhalers.

Other is CO₂ equivalents from waste treatment and fermentation.

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