Lilly established global health, safety, and environmental policies in the early 1990s. We combined those policies into the Lilly HSE policy, most recently revised in 2005. Each of our facilities develops its own HSE objectives and plans in accordance with local priorities and corporate commitments, requirements, and goals. We aim to improve aspects of our HSE performance through conformance to these individual site plans. The HSE management system is the primary mechanism for HSE governance within the company.
In 2006, our corporate auditing team (which includes external auditors) conducted 12 environmental audits and 18 health and safety audits. The team annually reports information gathered during the auditing to the corporate compliance committee and the global HSE committee. These groups report progress and areas requiring senior management attention to Lilly’s policy and strategy committee, comprised of the CEO and senior staff, or to the public policy and compliance committee of the board of directors.
In addition, our management of HSE risks is reviewed at the highest levels of the company through our enterprise risk management program. Senior executives and relevant board of directors subcommittees review Lilly’s HSE compliance status and other identified HSE risks and opportunities regularly.
The International Organization for Standardization (ISO), based in Geneva, Switzerland, established ISO 14001 as a voluntary standard for environmental management systems (EMS). Four Lilly facilities are certified to ISO 14001, including two facilities—in Brazil and China— that achieved certification in 2006. (The other facilities are in Ireland and Mexico.)
We are continuing to participate in several voluntary programs related to HSE management, including the OSHA Voluntary Protection Program, the American Chemistry Council’s Responsible Care® Program, and the Business Roundtable’s S.E.E. Change Initiative (Social, the Environment, the Economy).
Due Diligence of Suppliers and Third-Party Contractors
Lilly has relationships with many third-party suppliers, including those that assist in the development and manufacturing of Lilly products. With this partnering comes responsibility to ensure companies have implemented employee health, safety, and environmental programs.
Lilly assesses suppliers and third-party operations against HSE criteria during the selection process and throughout the business relationship. Suppliers and other third parties are reviewed using a five-stage process. First, the process provides a basic understanding of the company’s environmental, health, and safety programs. It then provides for a risk-based review related to the materials being handled. For suppliers of critical materials or those that handle manufacturing steps of higher HSE risk, the third step is an onsite assessment. The final steps ensure that third-party operations have the necessary HSE information on our materials. Lilly encourages its suppliers to build the necessary HSE capabilities.
As part of the HSE criteria, Lilly encourages both key suppliers and third-party companies to have appropriate emergency management capabilities to ensure business continuity.
Emergency Response Programs and Practices
Lilly sites are required by company policy and regulatory requirements to have an emergency management system. This includes a risk assessment to identify the critical risks that should be addressed in the site emergency plan. Each site must assess its readiness annually. Testing the plan can range from tabletop exercises to full-scale drills that include community fire and emergency agencies.
In addition to testing the local site plan, Lilly has a corporate-level incident support team that is ready to commit corporate resources in the event of an incident that impacts tangible assets (such as people and facilities), products, or sites. Major exercises have been conducted in the past at manufacturing facilities in Indiana (U.S.), the U.K., Puerto Rico, France, and Mexico. These drills test the site’s emergency plan, emergency response teams, and local agencies. Past drills have also included local hospitals, law enforcement agencies, and local emergency response agencies.
