Global Citizenship Report
2008
“We hope to convey to you how we conduct our business sustainably.” Life Technologies Corporation (NASDAQ: LIFE) We are a biotechnology company providing the life science community with instruments, consumable reagents and services to shape discovery and improve life. Created through the merger of Invitrogen Corporation and Applied Biosystems Inc. in 2008, Life Technologies has more than 50,000 products. The company had sales of more than $3 billion in 2008, employs a workforce of 10,000 people in more than 100 countries and possesses a rapidly growing intellectual property estate of approximately 3,600 patents and exclusive licenses. At Life Technologies, our goal is to make scientific research and application easier, faster and more reliable, so we can make life even better. About This Report: This report covers 2008 performance data and activities. We also capture some events that took place in early 2009 to help provide a clearer picture of who we are as a newly formed company. This report covers Invitrogen and Applied Biosystems, unless otherwise noted. It does not address the performance of our joint ventures, third-party manufacturers, suppliers or contractors. Through this report, we hope to convey to you how we conduct our business sustainably; living as a global citizen is at the core of our values. We look forward to developing a dialogue with our stakeholders and welcome your feedback through our website, www.lifetech.com.
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Letter from the Chief Executive Officer November 2008 marked a milestone in the history of two great companies, as Invitrogen and Applied Biosystems came together and created Life Technologies – an entity that can change the future of science and medicine. While we are a scientific company at heart, recognizing how our work touches humanity is at the core of our commitment to succeed. Our systems and products have a critical impact on society, from enabling basic research on disease and cures, to helping determine the safety of what we eat and drink, to providing law enforcement with 21st century forensic tools to fight crime. We help scientists develop cleaner fuels, better therapeutics and healthier crops, using the power of innovation to improve the human condition one discovery at a time. While we are proud of the responsibility we shoulder in moving science forward, we know that to be a truly great company we must also be a responsible global citizen. We must be dedicated to unyielding ethics, sustainable business practices and giving back to our communities. In the following pages, you will read about our citizenship efforts, but I would like to highlight a few of our recent accomplishments: - Since 2004, we have reduced our energy consumption by 32 percent and CO 2 emissions by 36 percent per unit of sale. - We have enhanced our “design-for-environment” program, which re-engineers our product development processes, reducing packaging waste, energy usage, toxic materials and our carbon footprint at every phase of development, from product ideation to end-of-life disposal. - 100 percent of our employees have taken ethics training and are well versed in our Protocol, the company’s guide to ensuring that our business is conducted in accordance with legal and ethical guidelines. - We established the Life Technologies™ Foundation, providing grants that aim to demystify and celebrate the world of life science. We also donate millions of dollars in products and provide funding for global disaster relief. - Each year, all employees are given paid leave to participate in local volunteer projects. In May 2009, nearly 3,200 employees contributed more than 13,000 hours of volunteer time in over 100 projects worldwide. Our citizenship efforts helped Invitrogen (prior to the merger with Applied Biosystems) to be named to the Dow Jones Sustainability Index as a leader in the biotechnology sector, ranking among the top 10 percent of large companies worldwide for sustainability. After the merger, Life Technologies was named to the FTSE4Good Index Series, an equity index that facilitates investment in companies that meet global citizenship standards. In short, we value a culture that is deeply dedicated to the future of science, respects our environment and is committed to doing the right thing. Global citizenship is not a destination, but a journey – one that Life Technologies will undertake for years to come.
Greg Lucier, Chairman and CEO
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Shaping discovery, improving life Life Technologies touches humanity in many ways every day. Through our efforts, we enable accelerated scientific exploration that drives scientists to discoveries that make life even better for all of us. Following are just three examples of how we have had an impact. The Genographic Project, a research partnership between the National Geographic Society and IBM Corporation, with field support from the Waitt Family Foundation, traces the human family back to its African origins 60,000 years ago. Ten research centers around the world are analyzing DNA samples from more than 100,000 people in indigenous populations to chart our global migration through changes in genetic markers. Life Technologies supplies the DNA sequencing technology for this project, including advanced genetic analysis instruments, reagents and software, as well as providing training and designing custom assays. These technologies enable a variety of research that includes, for example, the analysis of single-point mutations in mitochondrial DNA of all subjects, in addition to the study of familial changes in the male Y chromosome.
Families of Spinal Muscular Atrophy (FSMA) is a not-for-profit
Fa m ilies of SM A
organization that funds collaborations in drug discovery. Spinal muscular atrophy is an inherited disorder affecting one in 6,000 births; it disrupts nerve cell communication between the spinal cord and the body’s muscles, resulting in severe muscle weakness and, in its more extreme form, infant mortality. Life Technologies and deCODE chemistry and biostructures collaborate with FSMA to provide assay technologies, target validation tools and drug metabolism platforms to discover first-in-class, novel therapeutics for this disorder. Life Technologies scientists used their ProtoArray™ protein microarray technology to identify a potential protein target for drug candidates.
The 2009 Swine Flu outbreak spurred Life Technologies to accelerate the detection of Influenza A (H1N1) by providing instrument systems and other components to public health laboratories across the United States. This enabled testing consistent with the the Centers for Disease Control and Prevention (CDC) methods for the virus in all 50 states. Life Technologies is also working with public health agencies around the world to support the World Health Organization and national testing methods. We manage our response to agencies around the world through a 24-hour-a-day task force, responding to requests for instrumentation, reagents, services and support.
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Contents Commitment to Science We shape discoveries in personalized and regenerative medicine, and develop life science tools that further research, improve life and protect our environment. Life Technologies spends more than $300 million a year in research; every day, hundreds of thousands of scientists across the globe use our products and services to advance science. Page 6
Commitment to Ethics Life Technologies requires high standards of ethical conduct and accountability from our employees, contractors and suppliers. Our bioethics committee facilitates greater understanding of the ethical and social implications of the discoveries we make possible and works with government and regulatory bodies to shape policy. Page 9
Commitment to People We strive to be the employer of choice by creating an environment in which people can do their best work. Our programs communicate the company’s sense of responsibility to our employees and our desire to help them succeed. We foster a professional workplace that promotes teamwork, diversity and trust. Page 12
Commitment to Safety and Environmental Sustainability Life Technologies is dedicated to protecting the environment and promoting the health and safety of our employees, our customers and our communities. We promote employee ownership of safety and health issues. We comply with regulatory requirements and strive to create products with life cycles that tread lightly on the environment. Page 18
Commitment to Community and Education The cornerstone of our commitment is Global Volunteer Day, when employees around the world join in projects that support the community. Employees have also supported disaster relief efforts worldwide. The Life Technologies™ Foundation, through hundreds of thousands of dollars in grants, supports a wide range of educational programs. Page 33
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Global Citizenship Report
Commitment to Science
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Commitment to Science
Partnering on the Cutting Edge of Innovation We exist to make scientific research easier, faster and more reliable. Life Technologies’ key strength lies in our wealth of life science knowledge and our ability to remain on innovation’s cutting edge. Each year we spend more than $300 million on research and development – more than any other life science tools company. The breadth and depth of our offerings help standardize scientific research and accelerate discovery. According to Percepta Associates Inc., our products are found in more than 90 percent of U.S. laboratories and have become a part of nearly every research laboratory in the world. We believe in creating strong collaborations with our customers, and connecting to our employees, our investors and our industry colleagues.
We know the next great idea will come from bench researchers who best understand what they need to move science forward. To that end, we work with our customers to create solutions to their most complex problems. This customer-centric innovation was the basis for products such as our Countess™ Automated Cell Counter, which automated a tedious manual task, and our redesigned, award-winning GIBCO cell culture bottle. We also sponsor a competitive grant program that supports external collaborations between our scientists and university investigations; in 2009, 20 such grants will be awarded. With more than 3,600 patents and in-license agreements to complement our own research, Life Technologies is unmatched for bringing true innovations to market. We are a partner of choice for the life science community, recognized as a leading supplier of tools and instruments, as well as the company that can turn ideas into reality. ®
The award-winning GIBCO ® cell culture bottle
The Countess™ Automated Cell Counter
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Commitment to Science
An Era of Personalized Medicine We stand at the threshold of a new era in healthcare, one where our own cells become therapeutics with the power to cure, and medical care focuses on preventing disease rather than treating it. Life Technologies provides researchers with the tools to make personalized medicine a reality. Today, our products enable cutting-edge, tissue-engineered transplants and research into innovative cell therapy. With the most comprehensive suite of products and services for advancing stem cell research and cell therapy, we partner with our customers to push the boundaries of regenerative science and medicine. We are also a leader in DNA sequencing. We have been at the forefront of genomic discovery for more than 25 years, pioneering innovations that made possible the first decoding of
the human genome. Our award-winning SOLiD™ System continues to provide increases in sequencing throughput at a significantly reduced cost. Today, we bring together Applied Biosystems’ expertise in sequencing instrumentation with the premier Invitrogen brand of reagents to serve our customers across the sequencing continuum. We also continue to innovate, developing a thirdgeneration, single-molecule sequencing solution that, with our existing systems, will bring widely affordable sequencing ever closer. With instruments that unlock the secrets of our DNA, and products and services that advance the promise of regenerative science, Life Technologies is helping usher in the era of personalized medicine.
The award-winning SOLiD™ system
Using Biology in Commercial Applications Whether helping identify criminals or detecting harmful organisms in our food supply, Life Technologies’ products are used every day in markets that extend beyond life science research. We are the market leader in forensic DNA technologies. Our solutions are used by law enforcement officials worldwide for criminal and missing-person
investigations, making the world a safer place. In food and water safety testing, we are leading the shift to next-generation technologies for detection of Salmonella, E. coli and other pathogens in food, pharmaceuticals or pesticides in water. Our products also ensure that pharmaceutical manufacturing remains safe and free from contamination.
E. coli bacteria
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Global Citizenship Report
Commitment to Ethics
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Commitment to Ethics
Our Corporate Governance Because of our goal to help discover how life works and to create a safer, healthier world, we must be committed to integrity and always earn our customers’ trust.
The Protocol – Our Code of Conduct The Life Technologies
We focus on making the right decisions and complying with all applicable laws wherever we operate. We are committed to business practices that meet high standards of legal and ethical compliance. Our company Board of Directors consists of 13 members. This board has four standing committees: Audit, Compensation and Organizational Development, Governance and Nominating, and Science and Technology. Our corporate governance guidelines, published on our website, www.lifetech. com, are standards that the Board of Directors follow for fiduciary responsibility, strategic planning, nominating and succession planning, and board elections.
Protocol is our guide T H E P R OTO COL
to integrity and code of conduct. This document,
THE PRO TOC OL
1
The Life Technologies Protocol
We are respon sible
updated biannually, governs our business practices and compliance efforts. The Protocol provides specific examples of what constitutes acceptable and unacceptable behavior, consistent with our legal obligations, global values
and core business principles. It outlines key laws and practices 15468_Cover-CS3.indd
1
related to competition, insider 1/23/09 1:05:58 PM
trading, conflict of interest, data integrity, the Foreign Corrupt Practices Act, environmental health and safety, intellectual property, human resources, appropriate business standards and international business. We invite you to read The Protocol. In addition to The Protocol, other policies and procedures are available on our external and internal websites.
Life Technologies’ headquarters in Carlsbad, California.
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Commitment to Ethics
Our Bioethics Committee The Life Technologies Bioethics Committee guides the responsible use of biotechnology to improve lives, accelerate scientific exploration and protect our environment with a mixture of enthusiasm, caution and humility. The committee facilitates a greater understanding of the ethical and social implications of scientific developments in biotechnology and focuses on upholding the highest standards of ethics and integrity. The committee deliberates over policy questions, communicates Life Technologies’ positions on bioethical issues and addresses issues such as stem cell research, cloning, use of genetic information, biological diversity, animal care and related topics.
Contributions to Public Policy Our public policy deliberations that affect the life sciences and To shape policies that foster safe, effective and beneficial products, we work with state, federal and international legislative and regulatory bodies. Our public policy work supports a number of areas: - Biomedical research funding and stem cell research - Intellectual property policies that foster and reward innovation - Regulatory and reimbursement frameworks that drive the onset of personalized medicine - Alternative-fuel policies
related communities include direct communications with policy makers and their staff, as well as work with trade associations and coalitions such as the Biotechnology Industry Organization (BIO), the California Healthcare Institute (CHI), the Personalized Medicine Coalition (PMC) and United for Medical Research. Through these groups, we develop information and positions in concert with other companies, as well as leading research universities and national patient advocate groups such as the American Heart Association and American Cancer Society. We work
- DNA-based techniques for human identification, crime solving and food safety
with BIO to brief members of the U.S. Congress and officials of the National Institutes of Health, Food and Drug Administration, other branches of the U.S. Department of Health and Human Services, and the President’s Council on Bioethics on issues of importance to the life sciences industry.
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Global Citizenship Report
Commitment to People
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Commitment to People
Recruiting the Best Talent At Life Technologies, we strive to be the employer of choice by creating an environment in which people can do their best work. We encourage collaboration and teamwork, open debate, personal integrity, honest communication and individual achievement. We require accountability and reward fairly in accordance with performance. We allow people to take risks, explore ideas and find solutions. We value original thought, innovation and creativity, and provide the process, structure and tools to support these values.
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Commitment to People
Managing Our Talented Workforce At Life Technologies, we have a deep sense of responsibility to our employees – helping them grow, learn, develop and ultimately succeed in driving the scientific discoveries that will make life even better for us all. We want our organization to be a place where people are excited about the work opportunities available to them, where they can fulfill their career objectives and where they have the chance to do great work. Delivering on this commitment, we focus our talent-management efforts on the following key areas: 1. leadership behaviors and expectations, 2. individual and company-wide goal alignment, 3. talent assessment, and 4. learning and development.
1. Leadership Behaviors and Expectations To drive a high-performing culture, we believe it is important to promote clear, consistent expectations about what it means to be a Life Technologies employee. Therefore, we created our leadership behaviors, an articulation of the characteristics and behaviors that we believe will: - Help us achieve our vision, strategic imperatives, goals and objectives - Promote the high-performing culture we strive to sustain - Enable people to be successful at Life Technologies
2. Individual and Company-wide Goal Alignment As a company, we are aligned around three strategic imperatives: Own the Customer, Find a Better Way and Win Together. Employees and teams align individual and organizational objectives around these core objectives. Together, we establish work plans and set measurable targets to help Life Technologies achieve its objectives. We believe in sharing success as individuals and collectively as an organization.
3. Talent Assessment Life Technologies makes assessing and improving employee contributions a high priority. Quarterly dialogues between supervisors and employees provide ongoing coaching and feedback, while enhancing development and career planning. We believe this emphasis on feedback and coaching is a much better focus than performance ratings, which we have eliminated. 4. Learning and Development We are committed to developing our employees through our learning programs and offerings and on-thejob training. We believe in having our leaders teach our future leaders, so our executives take an active role in talent development – from quarterly coaching dialogues to courses – improving connectivity, collaboration and communication.
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Commitment to People
Employee Engagement Rewarding Our People The talent and dedication of Life Technologies’ employees is the foundation of our past, current and future success. To that end, our reward programs provide a competitive total rewards package (base salary, incentives and benefits) that pays for performancebased, on-business success; individual results; and behaviors consistent with our long-term goals. Like our shareholders, we view pay not as an entitlement, but as a reward for success. We believe overall pay should rise and fall with our business results, our potential for future contribution and the value we create for our shareholders. Our annual bonus plan, the Incentive Compensation Plan (ICP), provides eligible employees at all levels the opportunity to gain financially from the results they help generate. Life Technologies also uses long-term incentive awards to recognize individuals in key positions, reward contributions, and motivate and retain employees with potential for future contribution. We also provide tools and resources that help create balanced, productive, healthy lifestyles. From personalized healthy-living programs to backup care, adoption assistance, educational reimbursement and scholarship benefits, we offer many programs that enhance the personal lives of our employees and their families.
Impact of the 2008 Merger on Employees Due to the similarity in size and the diversity of operations between the former independent companies Invitrogen and Applied Biosystems, the integration team identified a level of redundancy in combining the two companies. As a result, a limited percentage of positions are being impacted through consolidation of functions and sites. In every case, affected employees are being treated with dignity and respect, and all employees receive a fair and equitable severance package in accordance with local statutory requirements, including access to outplacement services, if applicable. Our workforce transition is guided by the following principles:
Women’s Influential Network (iWIN) A women-sponsored organization, iWin provides opportunities for all Life Technologies employees to learn through informal connections with leaders, peers and outside speakers. One example is our mentor program. This employee-run program connects employees with mentors from various functions and divisions. The program provides seminars, training and social events to cultivate employee-mentor
- Treat people with dignity and respect - Engage top talent - Ensure business continuity - Legally protect the company - Deploy common processes globally - Ensure our actions reinforce our desire to be an employer of choice
relationships and build personal
We understand that this transition is difficult, not only for affected employees, but for colleagues who remain with the organization. As a result, we maintain – and expect our leaders to maintain – frequent and transparent communication with employees. Leaders are equipped with talking points and frequently asked questions (FAQs), and are encouraged to meet with their teams to provide a forum for open dialogue and questions. We also use various communications vehicles, including town halls, webcasts, emails and small group meetings.
program has become a key element
and professional skills through less-formal networking. The program has grown to more than 550 participants in North America and is expanding into Europe and the Asia-Pacific region. The and driver to creating a culture of collaboration and building connections among employees.
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Commitment to People
Embracing Diversity Life Technologies is committed to fostering a professional workplace that promotes teamwork, diversity and trust. We expect everyone to follow a simple standard of treating all employees, and others we encounter in the workplace, fairly and with respect. We are proud to be an equal opportunity employer committed to a diverse and inclusive workforce as indicated on Table 1. As a result, we provide equal employment opportunities to all employees and applicants without regard to race, religion, color, national origin, sex, sexual orientation, gender identity and/or expression, age, disability, marital status, veteran status or any other classification protected by law. Our policies prohibit all unlawful harassment, discrimination, retaliation or intimidation, and all employees are expected to promptly report any violations of our policies.
We also embrace the diversity of our workforce, not just through demographic composition, but also in thought, culture, education and experience. Our innovation and success are a direct result of this diversity. We encourage collaboration and teamwork, open debate, personal integrity, honest communication and individual achievement. We look for bright, talented individuals who are interested in gaining handson, meaningful work experience. Our Summer Internship Program provides students with relevant experience and a first step toward employment following graduation. University Relations targets diverse student organizations by participating in networking dinners and corporate presentations. The program works with the Society of Women Engineers (SWE), Society of Hispanic Professional Engineers (SHPE) and National Society of Black Engineers (NSBE), among others.
We are currently working with the California State University system to leverage federal and state funding supporting veterans’ education, continuing education and transition into the workforce. This effort includes special apprenticeship programs and federal support of internships for science, technology and mathematics students. Our outreach strategy includes hosting community networking events; sponsoring science-awareness events, such as the San Diego Science Festival; and speaking at smaller venues within the community. Members from diverse associations such as the Athena Association for Education and Development of Women, National Urban League, and Association for Women in Science are invited to network with the Life Technologies executive leadership team.
Table 1: Life Technologies Ethnicity and Gender Diversity – 2008
Ethnicity Diversity (US-only) Minority*Representation
Gender Diversity (global) Women
Total workforce
36%
43%
Management (Managers and senior managers)
33%
37%
Leadership (Directors, senior directors, vice presidents)
21%
28%
Executive (Senior vice presidents and above)
13%
12%
* Minority ethnic groups include: Black or African American, Native Hawaiian or Pacific Islander, American Indian or Alaskan Native, Asian, Hispanic or Latino, and two or more races.
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Commitment to People
Supporting Supplier Diversity Our Supplier Diversity Program is designed to ensure that businesses of diverse backgrounds and ownership have the opportunity to become valued suppliers.
Business Association’s magazine for our development and use of a veteran-owned printing company. In addition, Life Technologies’ robust business with the U.S. General Services Administration (GSA) and other federal and governmental agencies includes expanding our supplier base using smallbusiness enterprises. Key elements of our Supplier Diversity Program for 2009 include outreach through attendance at key external matchmaking events, and “In-reach” through awareness training of the Global Procurements buyer community and quantitative compliance through strong performance goals (Table 2).
Our diversity policy provides all qualified providers of goods and services a fair opportunity to become our suppliers. We seek suppliers from all segments of the business community, with special emphasis on minority, women-owned, veteran-owned, servicedisabled veteran-owned, HUBZone and disadvantaged businesses. Life Technologies was profiled in the February 2009 issue of the National Veteran-Owned
Table 2: Small-Business Spending Performance
2007
2008*
2009 goal
$219,858,545
$186,386,572
$262,500,000
Small disadvantaged
$6,800,635
$2,247,005
$2,625,000
Woman-owned
$22,667,837
$15,685,903
$19,950,000
HUB Zone
$2,156,027
$2,425,352
$2,625,000
Veteran-owned
$3,429,363
$5,827,435
$5,250,000
$764,148
$2,608,729
$2,625,000
Small business
Service-disabled veteran-owned
* Decline in small business spending in 2008 was due to overall reduction in domestic spending.
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Global Citizenship Report
Commitment to Safety and Environmental Sustainability
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Commitment to Safety and Environmental Sustainability
Safety and Environmental Sustainability As a company involved in improving the human condition, Life Technologies Corporation is dedicated to protecting the environment and promoting the health and safety of our employees, customers and citizens in the communities in which we operate. Our EHS mission focuses on four building blocks: health and safety, environmental sustainability, product stewardship and regulatory compliance. As part of our continuous search for improvement, our process establishes four-year goal periods and includes monthly progress reports, followed by evaluation of resource allocations to ensure that targets are met. Our first four-year goal period concluded in 2008 and applied to legacy Invitrogen only. New four-year performance goals are now set for Life Technologies, including both Invitrogen and Applied Biosystems, to be concluded by 2012. 1
EHS Management The EHS organization uses a comprehensive approach to manage EHS functions along the supply chain, from R&D and suppliers through manufacturing and distribution sites. Our approach consists of the Global EHS Achievement Program and the Global EHS Audit Program, which are available on our website, www.lifetech.com. Both programs are applied to all of our sites and stakeholders globally.
1 Note: Many reported parameters have multiple components. Energy, for example, has three: electricity, natural gas and heating oil fuels. Each component includes unit conversions from various international regions. Each year, we refine and improve the data accuracy in order to report true EHS impacts. This internal review sometimes identifies errors in site reporting, calculation factors and other sources. When errors are uncovered, we correct the previously reported parameters and identify these corrections in the reports. Most of these changes are not large and do not necessarily affect the trends, but we report them so our readers can revise their assessments. For the 2009 report, we enhanced our data validation system by including a review from a senior engineer in our Madison, WI, facility, with expertise in data validation. We continuously look for further ways to verify that our data gives an accurate portrayal of our history and progress.
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Commitment to Safety and Environmental Sustainability
Health and Safety We recognize our employees as our greatest asset. Therefore, their health and safety lie at the foundation of our efforts to build a talented and engaged workforce. A fully productive employee must be safe first. As a result, we provide our people and contractors with the tools and training they need to do their jobs safely every day. We use U.S. Occupational Safety and Health Administration (OSHA) standards to report all work-related injuries and illnesses globally. We express this as a rate, based on 100 employees working 2,000 hours annually. We measure health and safety performance against two metrics: 1. OSHA-recordable injury and illness rate and 2. the Days Away and Restricted
Figure 1: Workplace Injury and Illness Rates. Results are based on 100 employees working 2,000 hours annually.
2.0
2004
baseline
2008
2008
baseline
2012 target
1.7 1.3 0.7
target
target
Time (DART) rate. Since 2004, we have reduced our OSHA-recordable and DART rates by 40 percent and 59 percent, respectively. This translates into 71 fewer injuries and 11,031 fewer restricted or lost days, and, therefore, more employees working safely. Estimated cost avoidance from improved safety performance totaled $5,010,416 in workers’ compensation and indirect costs. We have identified that over 70 percent of our injuries are ergonomic in nature. Our ergonomic program focuses on awareness training and hazard mitigation. We continually evaluate manual processes and implement automated substitutions or other engineering controls where feasible. The 2008 baseline in Figure 1 accounts for the combined safety performance of both legacy companies. As we continuously work toward our ultimate goal of an injury-free workplace, we plan to achieve a reduction in our injury and illness rates by 25 percent from 2009-2012. The grassroots safety teams will continue to mitigate hazards and build an even stronger behaviorbased safety culture in a collaborative relationship with our management group and local regulators. We will continue to focus our efforts on ergonomics, biosafety and powered industrial truck operation.
Safety Culture Change In 2008, in an effort to reduce injuries, Life Technologies partnered with Culture Change Consultants to implement change through grassroots safety leadership. This program was piloted at our sites in Carlsbad, California; Frederick, Maryland; and Grand Island, New York. At our Grand Island site, three teams, with members from all levels and various functions, were trained to identify hazards and unsafe behaviors. Employees can now implement changes and correct not only their own, but also their coworkers’ behaviors. Management’s responsibility for the safety of their teams is also solidified. The result is a safer workplace with 12.5 percent fewer injuries and 44.5 percent fewer lost work days. The culture change will continue with training for supervisors and team leaders on identifying behavioral safety issues and leading toward an injury-free workplace.
1.3 0.7 0.98 0.52
Injury and illness recordable case rates DART (Days Away and Restricted Time) rates Global Citizenship Report 2008
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Commitment to Safety and Environmental Sustainability
Safety Recognition The success of our safety program is attributed to building a strong safety culture based on employee accountability and ownership, which is aligned with the OSHA Voluntary Protection Program (VPP). The sites in Table 3 have been recognized by OSHA or the equivalent in their country.
Table 3: Worldwide Recognition for Safety
Eugene, Oregon
VPP Merit Status
New Zealand
ACC WSMP (Workplace Safety Management Practices) Tertiary Level
Warrington, UK
Five-Star Award from the British Safety Council
Singapore
WSH Council bizSAFE Star
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Commitment to Safety and Environmental Sustainability
Employee Health and Wellness
To promote employee wellness and continual reduction of workrelated injuries and illnesses, Life Technologies contracted WorkCare , an occupational healthcare provider. The service includes virtual nursing and advanced first aid to all U.S. and Canada employees. In addition, Life Technologies provides free biometric screenings and wellness initiatives, including programs for: ®
- Weight loss - Smoking cessation - Diabetes management - Stress management - Nutrition counseling - Hypertension control - Fitness planning
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Commitment to Safety and Environmental Sustainability
Environmental Sustainability Environmental sustainability at Life Technologies is an ongoing process to adapt the way we operate to reduce our environmental footprint. Climate change, resource conservation and waste reduction are key elements of our environmental agenda. We have made substantial “green progress” and have established more aggressive eco-efficiency goals for 2012.
Energy Efficiency Energy use from manufacturing, cold storage and information technology infrastructure is our most critical environmental impact. In 2004, we issued a Global Energy Conservation Policy to improve energy efficiency. We also expect to reduce the costs of energy at our manufacturing facilities. We report our energy consumption in gigajoules indexed to millions of dollars in net sales. Energy-saving projects resulted in a 32-percent reduction in energy consumption since 2004, surpassing our 10-percent goal. This saved more than $10 million in energy costs. At our Carlsbad, California, site, we replaced older, inefficient lighting with new, fluorescent lighting. This project alone will reduce our energy consumption by 10 percent and emissions of CO 2 by an estimated 700 tons annually.
Our Singapore operation’s energy conservation measures include timers and motion sensors on air conditioners and lighting, and reduction of lights in areas where natural light is available. These changes have reduced consumption by 3.7 percent annually at the same time site activity has been increasing – translating to 87,000 kilowatt-hours (kWh) and 52 tons of CO 2 . Moving forward, our goal is to further reduce energy consumption by 25 percent indexed to net sales by 2012. In partnership with local power authorities, we are performing energy efficiency audits to identify where we will save energy.
Figure 2: Energy Consumption (GJ/US$ million of sales)
2004
475
baseline
322
2008
target
Solar panels at Life Technologies site in Pleasanton, California.
2008
242
baseline
2012 target
182
-25%
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Commitment to Safety and Environmental Sustainability Environmental Sustainability
Climate Change The most challenging global issue of our time, climate change will dramatically impact the planet billions of people call home. Taking action to reduce emissions of greenhouse gases that increase the earth’s temperature is a core element of our environmental sustainability agenda. In 2008, Life Technologies joined the U.S. Environmental Protection Agency’s Climate Leaders program, an industry/government partnership aimed at developing comprehensive climate-change strategies. Through this partnership, we commit to long-term reduction targets of greenhouse gases and annual reporting by completing a corporate-wide inventory of greenhouse gas emissions. By taking this proactive approach, we are well positioned to meet upcoming regulations in our carbonconstrained future. Of all the greenhouse gases relevant to our business (CO 2 , CH 4 , N2 O and CFCs), CO 2 is the most prevalent, accounting for more than 95 percent of our total emissions. We have reduced CO 2 emissions by 36 percent from our 2004 baseline (Figure 3). More than 80 percent of our CO 2 emissions result from our energy use; therefore, our progress toward energy efficiency correlates directly with our reduction in CO 2 emissions.
For example, our Grand Island, New York, facility chose to utilize hydroelectric power, as opposed to coal-fired, when installing a new electric service.
The Life Technologies LEED-certified building in Pleasanton, California. Figure 3: CO2 Emissions (tons/US$ million of sales)
+
As a part of the Leadership in Energy and Environmental Design (LEED) certification process, our manufacturing facility in Pleasanton, California, installed a 50-kW solar array to supplement power to the site.
2004
63
baseline
2008
41
2008
31
baseline
These two projects eliminated 100 tons of CO2 from our inventory.
Furthermore, we encourage employees to use video- and teleconferencing where possible to reduce air travel. Virtual meeting software is available to employees for making presentations and for holding meetings. In 2008, Life Technologies employees conducted more than 5,000 video meetings, 464,000 teleconferences and 5,000 Web conferences.
2012 target
target
23
-25%
Moving forward, our goal is to reduce CO 2 emissions by 25 percent by 2012. We will meet this target by following our energy conservation strategy and furthering our reporting mechanisms to include CO 2 emissions from business travel, product transportation and supply chains.
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Commitment to Safety and Environmental Sustainability Environmental Sustainability
Water Conservation Clean water is critical to sustaining life. Therefore, we strive to improve our overall efficiency in water use. All of our consumable products use water, whether mixing or diluting active ingredients, or cleaning and washing equipment used to manufacture them. We measure our water usage and evaluate ways to reduce and reuse water in our manufacturing, support utilities, landscaping and sanitation processes.
Figure 4: Water Consumption (m3/US$ million of sales)
2004
397
baseline
2008
356 target
2008
target
Partnering with the Water Authority As California heads into its third year of a drought, every drop of water counts. Onethird of our employees live and work in California, and it is our responsibility to promote water conservation. In partnership with the San Diego County Water Authority (SDCWA), our Carlsbad, California, site piloted a new water audit program. We are currently implementing water conservation projects that resulted from the audit and expect savings in excess of 2 million gallons per year.
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baseline
2012
As a result, from 2004 to 2008, we realized a 10-percent reduction in water use. Collaborating with the City of Carlsbad, our headquarters switched its landscaping supply to recycled water, saving 700,000 gallons of clean, potable water each month. The system uses “gray water,” drawn from the local wastewater treatment plant at an intermediate step before full reclamation. In 2008, our Grand Island site implemented a new procedure for cleaning serum tanks that utilizes less water for the same level of cleaning efficacy. This improvement saves nearly 400,000 liters of water for injection (part of the cleaning process) per year. In addition to water savings, using less water for injection, which requires energy to heat, is also saving energy and CO 2 . In 2008, Life Technologies consumed 800,000 cubic meters of water, establishing our new baseline. To further our conservation efforts, we set an aggressive 2012 goal of 25-percent reduction in water use indexed to net sales.
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-25%
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Commitment to Safety and Environmental Sustainability Environmental Sustainability
Waste Disposal, Air Emissions and Wastewater Effluents Our wastes, emissions and effluents are related to the materials we use and dispose of when we manufacture products. Our manufacturing processes require mainly organic solvents, but also hazardous chemicals, biological agents and water for cleaning. As a result, solvent use significantly affects our waste, emission and effluent footprint. We comply with applicable permits and licences and focus on pollution reduction to minimize our impact, taking costs and benefits into account. Waste Disposal By eliminating waste, we not only help the environment, but we also reduce our operating costs. Hazardous waste disposal per unit of sales has decreased by 16 percent since 2004, surpassing our goal of 10 percent.
Figure 5: Hazardous Waste Generation (kg/US$ million of sales)
2004
472
baseline
2008
395
2008
517
baseline
2012 target
target
387
Organic solvents make up our largest hazardous waste stream, generated by our oligonucleotide manufacturing operations. Because of its high Btu value (energy content), over 90 percent of this waste is recycled into fuel that fires cement kilns. As part of the bioprocessing operation in Auckland, New Zealand, 25,000 kilograms of plastic bottles containing residual biological materials (and therefore by-product waste) are generated every year. Instead of disposing of these contaminated bottles as biohazardous waste, we now grind the plastic, wash it with recycled water and sell the clean plastic to a recycler. This not only reduces our disposal of hazardous waste, but also adds to our operational efficiency. In 2008, Life Technologies managed more than 1,600 metric tons of hazardous or regulated waste. This makes up the new baseline for the 2009-2012 goals. Moving forward, our goal is to reduce hazardous waste disposal by 25 percent indexed to net sales. We also track our nonhazardous waste disposal and recycling. From 2004 to 2008, we reduced the disposal of nonhazardous waste per unit of sales by 16 percent. In Singapore, a small country where landfill space is scarce, our operation makes waste reduction a key priority. The site changed from recycling corrugated cartons to returning them to vendors for their reuse. Reuse of materials reduces waste at the earliest point, which is environmentally preferable to recycling. This effort resulted in a reduction in corrugated waste of more than 66 percent annually, equating to more than 48 metric tons annually.
Figure 6: Nonhazardous Waste Generation and Recycling (kg/US$ million of sales)
1762
2004
baseline
2008 target
2008
baseline
2012 target
377 1473
target
442
1115 333 836
416
-25%
25%
Nonhazardous Waste Recycling
In total, Life Technologies managed 4,575 metric tons of nonhazardous waste in 2008. Through improved waste reduction and recycling initiatives, we now recycle 23 percent of the total nonhazardous waste generated.
-25%
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Commitment to Safety and Environmental Sustainability Environmental Sustainability
Air Emissions The largest source of air emissions comes from the solvents used in oligonucleotide manufacturing. These emissions are tracked through local permits; we have not received a citation or notice to comply from 2004 to 2008. Additionally, the emissions of toxic release inventory (TRI) compounds are documented by our U.S. operations as required by the U.S. Environmental Protection Agency.
In 2007, our New Zealand facilities found that the pH of their wastewater discharges was exceeding permit limits. Working with local regulators, they discovered the source of the issue and made the proper adjustments. This cooperative effort ensured the site’s ongoing compliance.
Wastewater Effluents Our process wastewater discharges are treated either onsite or through a publicly owned treatment works (POTW). We regularly assess wastewater discharges at our facilities and have procedures in place to comply with local discharge requirements. In 2007, at our Grand Island, New York, facility, we exceeded the flow limit specified in our permit. In collaboration with the New York State Department of Environmental Conservation, we identified a groundwater leak into our treatment system. Upon isolating the leak, the flow was restored within permit limits and no notices of violation were received.
Annual Report In 2008, we launched our first online annual report, an awardwinning, interactive product that not only gave our shareholders a more unique glimpse into our company, but also helped us protect the environment by eliminating the printing of thousands of copies of a glossy-paper annual report. Based on the number of paper reports we printed in 2007, we estimate that we saved at least 325 trees by moving our annual report to an electronic format.
Oligonucleotide manufacturing site in Scotland, United Kingdom.
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Commitment to Safety and Environmental Sustainability
Product Stewardship Life Technologies strives to continuously improve the health effects, safety and environmental impact of our products, processes and services through our Product Stewardship program. We go beyond compliance, incorporating Design-for-Environment principles through the product lifecycle, from ideation to end-of-life. Our Product Stewardship program is divided into three sections:
Design for Environment (DfE) – creates innovative techniques and strategies that minimize environmental impact of products and processes. DfE conducts lifecycle assessments, applies green chemistry principles and uses sustainable packaging. The outcome is less hazardous materials, less pollution, less packaging and less waste. Product Safety – addresses health and safety concerns not mitigated by DfE initiatives. Hazards of Life Technologies’ products are communicated through labeling and product literature. For our instrument business, we ensure compliance with product safety standards, certifications and testing requirements. For our chemical products, Material Safety Data Sheets (MSDSs) are generated in multiple languages. Our products are shipped and packaged according to international transportation regulations. Product Compliance – ensures that our products and materials can be sold and distributed globally. This includes meeting chemical control and controlled substances laws, and complying with requirements for movement and use of Genetically Modified Organisms (GMOs) and other humanor animal-derived materials. All new instruments meet regulations restricting hazardous substances and end-of-life directives.
In 2008, we achieved our goal of completing 100 percent of new product assessments for MSDS, label content and shipping information. Moving forward, Life Technologies is committed to increasing sustainable packaging by 25 percent and applying green chemistry principles to decrease dangerous-goods transportation by 25 percent from 2009 to 2012. By rethinking our products and our relationships with our supply chains and especially our customers, Life Technologies is dramatically increasing productivity, reducing costs, fostering product and market innovation, and providing customers more value with less environmental impact. Reducing the use of toxic substances, incorporating sustainable packaging practices and having instrument take-back programs are just a few of the initiatives we have taken to become better product stewards.
*
Managed by Regulatory Affairs
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Commitment to Safety and Environmental Sustainability
Sustainable Packaging Sustainable packaging means reducing, reusing and recycling materials, as well as reducing waste. For example, to minimize the environmental impact of the crate that ships our SOLiD™ System genetic analysis instrument, we built the box stronger than we would if it were going to see one-way use. Now we can use it again and again, which also allows us to design features to allow field engineers to quickly unload and set up at the customer’s site. The packaging system is cost-neutral when comparing one-way crate and disposal costs with a returned, refurbished crate.
1. Our expanded polystyrene coolers for cold shipment were “right-sized,” meaning they were redesigned to remove 30 percent of polystyrene from our cold-stored product life cycles and from our customers’ landfills. Today, we continue to investigate novel means to improve the efficiency of packaging material in our coolers and decrease the need for refrigerated transport.
2. Right-sizing can also be applied to secondary packaging. For example, we are optimizing product kits to remove excess space and increase package density. Using smaller shipping boxes reduces our material consumption and transportation costs, also reducing the environmental impact of the transportation system.
Cooler in box
Using standard box filled
Mini cooler
New package 100% filled
Mini-mini cooler
Before and after
A small change can make a big impact!
3. Corrugated kit boxes that are manually folded and filled are being replaced by a lightweight foil package that can be automatically filled. This reduces material usage by 87 percent, lowers transport costs and reduces disposal impact.
4. New packaging was also designed for the Invitrogen™ UltraPure™ Agarose product line, eliminating 75 percent of the plastic used in previous packaging. Global Citizenship Report 2008
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Commitment to Safety and Environmental Sustainability
A Collaborative Effort While we strive to minimize the environmental impact of our products and reduce their packaging amounts, we don’t always get it right. Recently, one of our customers asked us, “Are you people for real?” after receiving a small vial surrounded by excessive packaging. As you can see in the image, the scientist’s order for “A” arrived wrapped in “B” and “C,” with an insert card “D” declaring our commitment to be “environmentally sustainable” by offering our manuals online instead of in paper format. While we have honest intentions, this is clearly not representative of our principles. We were both inspired and humbled by this experience. Ultimately, we welcomed this type of interaction so that we can continuously improve our environmental programs and better service our customers. This picture is now embedded in our training materials and presentations to serve as an example.
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Commitment to Safety and Environmental Sustainability
Green Chemistry Green Chemistry embraces chemistry as an environmental solution through eliminating the use or generation of hazardous substances in the design, manufacture and application of chemical products. Examples of our application of green chemistry principles include:
A.
A. Reformulating a component of the Purelink™ Quick Gel Extraction Kit, making it nonhazardous for transport. B. B. Promoting SYBR Safe DNA Gel Stain as a less toxic alternative to ethidium bromide. ®
C. Offering SimplyBlue™ SafeStain for those involved in protein research. This nonflammable, less-toxic and noncorrosive Coomassie dye stains protein electrophoresis gels. The competing product is corrosive and must be used with flammable and toxic solvents.
C.
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Commitment to Safety and Environmental Sustainability
Regulatory Compliance We are committed to complying with all applicable environmental, health, and safety laws and regulations. We audit our sites regularly to ensure that we meet permit discharge limits and reporting requirements. We measure our regulatory compliance by tracking Notices of Violations (NOVs), written notices from a regulatory agency identifying noncompliance. Our goal was to have zero NOVs from 2004 through 2008. While we had no NOVs in 2004 and 2006, we received an NOV from OSHA at our site in Eugene, Oregon, in 2005. In 2007, we received three NOVs from the San Diego County Department of Environmental Health at our site in Carlsbad, California, and two NOVs from the U.S. Federal Aviation Administration at our Eugene site. We have diligently implemented corrective actions to prevent these noncompliant activities from reoccurring. Our goal for 2009 to 2012 remains zero NOVs.
Invitrogen product packaging
Life Technologies distribution center in Carlsbad, California.
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Global Citizenship Report
Commitment to Community and Education
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Commitment to Community and Education
Giving Back At Life Technologies, we have a deep respect for the communities in which we live and work. Through the Life Technologies™ Foundation, our Community Relations department and individual business units, we routinely donate employee time, money and products to nonprofit and local community organizations.
Curriculum Developement Many schools and educational programs have utilized the talents of Life Technologies professionals to develop curricula for science and biotechnology courses:
Global Volunteer Day A cornerstone of Life Technologies’ citizenship initiatives is Global Volunteer Day, an annual event where all employees are provided time off to volunteer for group service projects in their communities. In 2009, nearly 3,200 employees volunteered more than 13,000 hours to their communities in more than 100 projects around the globe. Since the launch of Global Volunteer Day in 2005, the company has donated approximately 30,000 employee hours to nonprofit causes throughout the world. Projects run a full spectrum, from environmental cleanups and engagement activities with seniors, to painting family shelters and animal rescue facilities and hosting science fairs for children.
- Scientists at the Eugene, Oregon, site developed a food-contamination experiment with a genetic solution, and presented this hands-on experience at a local high school. - A group at our Austin, Texas, site participated in the University of Texas Girlstart program to increase interest in science among middle school girls.
Facility Tours Life Technologies offers tours of its facilities to provide a clearer understanding of our activities and enhance communication by opening our plants to visitors, investors, educators and student groups. Typical tours include stops in manufacturing and our world-class West Coast distribution center. Sixteen organizations participated in tours in 2008, including California Governor Arnold Schwarzenegger and his staff.
- Engineers and scientists from the Foster City, California, site routinely visit local classrooms as part of National Engineers Week to increase awareness of and interest in careers in mathematics, science and engineering.
We plan to launch this program in 2009 at several additional U.S. sites.
Global Volunteer Day
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Commitment to Community and Education
Financial Commitment The philanthropic arm of our company, the Life Technologies™ Foundation, is dedicated to advancing science education and increasing scientific literacy worldwide. By teaming with researchers across the country, the Foundation strives to demystify the world of life science and empower today’s children to become tomorrow’s scientific leaders. In 2008, the Foundation donated approximately $500,000 to nonprofit organizations, and additional funding has been committed for contributions in calendar year 2009. Donations have been made to support organizations such as: E.O. Wilson Biodiversity Foundation We are a financial sponsor of BioBlitz, the Foundation’s key program in which children, students and adults work alongside professional naturalists, wildlife managers and research scientists to observe and record as many of the native flora, fauna and fungi as possible. Life Technologies’ CEO Gregory Lucier also serves on the Foundation’s Board of Directors. Aquatic Adventures Science Education Foundation We awarded a $10,000 grant to the SEA Power High School Program, which supports 12 science-related internships during each academic year for underserved, inner-city youth. Each student is provided with work experience to examine potential career paths in the sciences. High Tech High This program teaches students in the U.S. and East Africa advanced skills in molecular biology and conservation science while assisting in the study, awareness and prevention of the African
Elephants at the San Diego Zoo
bush meat trade. Through the program, high school biotechnology students developed a one-hour documentary that won the prestigious Environmental Film Impact award at the American Film Festival, held in Washington, D.C., this year. Medical College of Wisconsin We awarded $5,000 to the 2009 Women in Science program, led by faculty, leadership and volunteers to address inequities facing women in the academic sciences. UCSD Foundation San Diego Festival We demonstrated support for the University of California at San Diego’s first annual, month-long San Diego Science Festival. This festival showcases the role of science and technology in the lives, the region and the future of San Diego. The festival enhances the general public’s understanding of how critical science is to their everyday lives and welfare, the U.S.’s vital leadership role in science, and how science education motivates today’s students to become tomorrow’s science leaders.
Boys and Girls Club of Carlsbad For more than 55 years, the Boys & Girls Club of Carlsbad has been providing youth development programs to the Carlsbad community. Life Technologies has continued to strengthen its commitment to the Boys & Girls Club through a substantial gift to help fund the construction of the Bressi Ranch Clubhouse, a new education center, which will bolster their community presence with increased membership, program delivery and awareness. Resource Area for Teachers (RAFT) This program provides surplus materials and money that provides interactive learning experiences for students in science, math, technology and the arts. The Community Relations Department also funds smaller-scale science education programs totaling over $500,000 annually for internships and sponsorships to schools and sciencebased nonprofits across the U.S., like the Science Factory Museum, Bay Area Biotech Education Consortium (BABEC), Neurosciences Institute, Milwaukee School of Engineering and Association for Women in Science (AWIS), as well as community organizations near our facilities, such as Bike for Breath, Paddle for Life and the Rotary Duck Race.
The Zoological Society of San Diego We support conservation-education field trips and the conservation-biology summer institute for science teachers.
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Commitment to Community and Education
Product Donations Life Technologies donates products and instruments to non-profit organizations for educational purposes. In 2008, we donated nearly $20,000 in products to several educational organizations, including Aquatic Adventures, whose mission is to educate urban youth about science, the ocean and nature through tuition-free programs. Other organizations receiving in-kind donations include the BioBus program, which runs a mobile laboratory program throughout the state of Connecticut, and San Dieguito Academy’s biotechnology
education program for high school students. The company’s information technology staff routinely donates used or outdated hardware and software, including laptops and cell phones. Donating this equipment provides fiscal assistance to the nonprofit organization, provides a small tax advantage for the corporation, and prevents usable material from ending up in landfills.
Disaster Relief Both Invitrogen and Applied Biosystems have supplied disaster relief, including cash and products, to organizations helping the victims of nearly every major catastrophe worldwide during the last several years, including the 2009 Swine Flu outbreak, Hurricanes Katrina and Rita, earthquakes in Asia (and the recent earthquake in central Italy), as well as wildfires in Southern California. Following the collapse of the World Trade Center towers on September 11, 2001, Applied Biosystems quickly organized the Soaring Eagles program
to provide genetically based human identification technology, using the cell’s hardier and more numerous mitochondrial DNA, to the New York Chief Medical Examiner to aid in identifying victims. We also donated genetic analysis equipment and software to help process the large number of samples from victims and their relatives. Recently, the Life Technologies™ Foundation instituted a policy to donate up to $10,000 cash to any major disaster relief efforts occurring where we house a facility, and will match all employee donations dollar for dollar.
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Recognition for Our Commitment At Life Technologies, we are proud of the efforts we have put forth and the results we have produced. However, it has been a journey to get here and we are committed to continuing to do better. Notwithstanding, we have been recognized as a global citizen by the following organizations: The former Invitrogen Corporation was selected as a new member of the Dow Jones Sustainability World Index (DJSI World) and named leader of the biotechnology sector for 2008. We ranked in the top 10 percent of the world’s 2,500 largest companies in terms of sustainability for our performance in corporate governance, labor practices, talent development, community involvement, workplace safety, climate change and environmental management. Additionally, in March 2009, Life Technologies was named to the FTSE4Good Index Series, an equity index series that facilitates investment in companies that meet globally recognized citizenship standards. The index is an evaluation of approximately 2,400 companies against stringent social, ethical and environmental criteria by FTSE International Limited, jointly owned by the London-based Financial Times and the London Stock Exchange. Currently, about 900 companies have been included in the FTSE4Good Index.
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For more information, visit our website: www.lifetech.com. For additional resources, visit: United Nations Millennium Goals http://www.un.org/millenniumgoals/environ.shtml United Nations Environment Programme http://www.unep.org/ Intergovernmental Panel on Climate Change http://www.ipcc.ch/ World Business Council for Sustainable Development http://www.wbcsd.org World Water Council http://www.worldwatercouncil.org/ An Inconvenient Truth http://climatecrisis.net/ Ceres: Investors and Environmentalists for Sustainable Prosperity http://www.ceres.org/ World Economic Forum http://www.weforum.org/en/index.htm
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