Careful usage of our natural resources is an important value for Lilly. Like everyone, we understand that resources such as energy, water, and raw materials do not exist in an unlimited supply, and we must be good stewards of our resources. As a result, Lilly has implemented numerous programs to reduce our facilities' consumption of energy, water, and materials.
More importantly, we intend to achieve higher levels of natural resources management as we implement the company’s world-class HSE performance vision. In 2008, Lilly will set all new goals for energy usage, water consumption, and waste generation. We expect achieving these goals will put Lilly in the top tier for natural resource management among all pharmaceutical companies.
In addition to reducing energy consumption, Lilly has also instituted programs to manage water consumption, biodiversity, and protecting soil and groundwater.
Water Consumption
Lilly continues to track the total amount of water being brought into its manufacturing and R&D sites worldwide, either through direct extraction or from municipal sources. The volume of total water intake at all our operations was essentially the same, compared with 2005.
However, we believe that this aggregate number tells only part of the story. We track how much water enters a facility and the amount needed to conduct operations. Using this data, we calculate our Water Conservation Index (the quantity of water intake divided by the quantity of water demand). The index indicates the degree to which a facility reuses water internally to meet its total demand; the lower the index, the more internal reuse is occurring at a facility. This more accurately reflects the efficiency of our water usage and our efforts to be good stewards of our water consumption.
Biodiversity
Lilly has a long history of working collaboratively to protect habitat and minimize the impacts of our operations on ecosystems. We engage in conservation projects and habitat enhancements on the more than 7,300 acres of land that we own around the globe, as well as supporting conservation efforts in the communities where our facilities are located.
Since the early 1970s, Lilly has worked in conjunction with the Indiana public electricity provider Duke Energy (formerly Public Service Indiana) to conduct annual fish sampling in the Wabash River. The sampling program documents species' diversity, size, and health, and provides a key indicator for the overall health of the river. Over the years, the river’s health improved significantly. The ongoing fish sampling program provides an important foundation for evaluating the effects of ongoing efforts to address potential impacts on the river’s health.
At our Clinton, Indiana, facility, Lilly is implementing a long-term land stewardship program in conjunction with the Sycamore Trails Resource Conservation and Development Council, the local soil and water conservation entity, to restore 300 acres of floodplain along the west bank of the Wabash River. We are undertaking this effort as part of the Wabash River Heritage Corridor Commission’s mission to protect and enhance the natural, cultural, historical, and recreational resources, and encourage the sustainable development of the river corridor.
Lilly has invested in a comprehensive strategy to ensure the long-term sustainability of this critical project by enhancing and maintaining this floodplain property. Approximately two-thirds of it will remain in its current use as cropland, which will generate the income necessary to maintain the river corridor over the long term. Lilly began the project in 2007 by enhancing 10 acres of wetlands. In 2008, Lilly will plant 25 acres of trees along the river and, in 2009, will plant 20 acres of grasses suited to growing in moist environments. This project will greatly enhance the environmental quality of the area by introducing native plant species, such as prairie grass, and transitioning to more diverse habitats, including wetlands, grasses, and trees. In addition, the plan will benefit wildlife by, for instance, providing travel lanes that will allow animals to migrate more safely.
