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AMGEN Sustainability Program


VCEDA Business Outlook Conference
October 2011
Amgen Is a Pioneer in Discovery and
Delivery of Vital Medicines
• World’s leading independent
  biotechnology company, with a
  mission to serve patients
   – Amgen medicines have reached 20
     million patients                                       Marketed Products
   – Presence in nearly 50 countries

• More than 30 years of pioneering
  science and vital medicines

• Focus solely on discovering,
  developing, and making human
  therapeutics
   – Specializing in innovative medicines
     for serious illness
   – Pioneer and world leader in protein
     therapeutic manufacturing

• Broad and deep pipeline of novel
  product candidates
                                            For additional information about Amgen products, including
                                                important safety information, visit www.amgen.com

                                            2
Amgen Launched a Formal Environmental
Sustainability Program in 2007
What we’ve found that leads to success:
• Know where you are
• Have a strategy
• Set goals
• Improve what you have
• Plan for the future
• Build sustainability into the core of your business
• Announce results



                              3
Know Where You Are: Compare
                                       Performance With Industry Peers
                                                             Total Energy                                                                      Carbon Dioxide




                                                                                                              Metric Tons / Sq Feet
Gigajoules / Sq Feet




                               1.5                                                                                                    0.12

                                                                                                                                      0.09
                                       1
                                                                                                                                      0.06

                               0.5                                                                                                    0.03

                                                                                                                                        0
                                       0                                                                                                           Amgen           Average
                                                             Amgen     Average


                                                           Water Intake                                                                      Total Routine Waste




                                                                                                         Metric Tons / MM Sq Feet
                                       6                                                                                              7500

                                                                                                                                      6000
                       MCM / Sq Feet




                                       4                                                                                              4500

                                                                                                                                      3000
                                       2
                                                                                                                                      1500

                                                                                                                                        0
                                       0                                                                                                               Average          Amgen
                                                             Average              Amgen




                                            Availability of data allows focus on things that are most impactful
                                       Note: 2009 Pharmaceutical Environmental Group Benchmarking;
                                                                                                     4
Have a Strategy: High Level Direction to
Achieve Awareness, Consensus and Action
         Pillars                           Strategic Direction

                          • Environmental impacts are understood, managed
                            and measured for continuous improvement
     Conservation
                          • Supply chain impacts are clearly understood,
                            measured, and reduced where feasible


                          • Sustainable products, facilities, and processes
 Design for Environment
                            through use of green design principles


                          • Amgen reputation enhanced through
                            communications; publish annual Environmental
                            Sustainability report
     Transparency
                          • Staff embrace environmental stewardship
                          • Accurate data collected, available in timely manner



                                     5
Set Goals: Specific, Measurable,
Attainable, Relevant, Time-Bound
              2012 target                    Results of conservation projects through 2010


   Energy         Reduce 500,000 GJ            Reduction to date: 520,000 GJ         Target met


                                                                                      62% of
Carbon dioxide    Reduce 75,000 MT             Reduction to date: 46,000 MT
                                                                                      target met



    Water         Reduce 235,000 m3            Reduction to date: 660,000 m3         Target met


                                                                                      62% of
    Waste         Reduce 700 MT                Reduction to date: 435 MT
                                                                                      target met


  Recycling       Divert more than 40%         Reduction to date: 58%                Target met


                                                                                      75% of
Fuel efficiency   Improve by 4 mpg             Reduction to date: 3 mpg
                                                                                      target met




                                         6
Improve What You Have: Pick the Best
Conservation and Efficiency Opportunities




                      7
Pure Water Is Critical to Our Industry
Recycling Significantly Reduces Use




                     Recycled
                      water




   Reverse osmosis              Cooling towers
   water treatment



                         8
Work with your Utility Partners to
Maximize Benefits
Technical Assistance Programs
• Benchmarking & Energy Audits
    –   Trane Cube Program
    –   Data Center Audit
    –   Building Re-commissioning
•   Equipment Efficiency Studies
    –   Hydraulic Pumps                                   Energy Efficiency Calculated Incentive
    –   Air Compressors                                   Program (EECIP)
    –   Boiler Efficiency
    –   Steam Trap and Condensate Return Analyses
                                                          Continuous Energy Improvement
Rebate and Incentive Program                              Program (CEI)
• Incentivized Projects
    –   HVAC Airflow Reductions                           Energy Efficiency Rebates for Business
    –   Lighting Fixture Upgrades
    –   Chilled Water Plant Optimization                  Steam and Condensate Audit
    –   Pump Efficiency
    –   High Efficiency Window Film
•   Equipment Rebates
    –   Boiler Economizer Replacement
•   Construction/Renovation Incentives
    –   Energy Saving Measures (From Energy Models)

                                                      9
Our Recycling Program Has a Long
History of Success
                                                       • Amgen’s recycling program
                                                         has been in place since
                                                         mid-1990s
                                                       • Since 2007, Amgen has
                                                         recycled more than 16,000
                                                         MT of waste
            Diversion (Recycle) Rate (%)
                                                         – 3200 garbage truck loads of
70
                                                           recyclable materials
60

50                                                     • Diversion rates continue to
40
                                                         increase
30

20                                                     • Waste minimization reduces
10
                                                         both purchase and disposal
 0
     2007          2008        2009        2010          costs

                 We are recycling more and disposing less…
                                                  10
Plan For the Future: Testing concepts to be
built into Next Generation Laboratories
                                            Fume Hood With ASPS
                                         Fume Hood With ASPS
• Worked with peers in our
  industry to develop new
  standards for air flow and set
  backs
• Tested automated sash
  closures that reduce both
  energy use and improve safety.
                                        Amgen CONFIDENTIAL   Facilities and Engineering

• Integrated occupancy sensors
  for lighting and fume hood
  control
• Next generation labs – more
  automation, more efficient use
  of space,

                                   11
Workplace of the Future Integrates
    Sustainability
         LEED Registered, Project Tracking to LEED Gold

                                                    •   Reuse of Existing Core & Shell
                                                    •   Demolition and Construction Waste
                                                        Recycling Program
                                                    •   Reflective Roofing
                                                    •   Landscaping 50% More Water Efficient
                                                    •   Enhanced Commissioning Process
                                                    •   Active Utility Performance Measurement &
                                                        Occupant Engagement Dashboards

•    High Performance HVAC, Intelligent Lighting
     System (25% Energy Reduction)
•    Waterless Urinals / Efficient Water Fixtures
     (40% Water Reduction)
•    Extensive Daylighting in Workspace,
     Exposed and Reflective Ceilings
•    Recycled Content & Low Emitting Materials
•    Forest Stewardship Council Certified Wood

       Highly efficient use of collaborative, tech-enabled space greatly
    increases environmental benefits 12 from sustainable building systems.
Build sustainability into the core of your
business: Manufacturing of the Future
• Improved productivity - smaller plants and equipment for same results
• Portable, reconfigurable equipment: - improved plant effectiveness
• Isolator technology - reduces size of clean space
• Improved cleanability - reduce energy, water and chemicals

                                                  Significantly improves:
                                                  • Energy use
                                                  • Emissions
                                                  • Water usage
                                                  • Waste water volume
                                                  • Solid waste generation


     Advances in technology promise to improve plant efficiency –
     both business and environmental performance improvements
                                     13
Announce Results: Your Stakeholders
Want to Know How You Are Doing

                                         • Customers
                                           – B2B
                                           – Retail
                                         • Neighbors
                                         • Peers
                                         • Shareholders
                                         • Employees


          Amgen’s first environmental sustainability report:
 http://wwwext.amgen.com/about/environment/espublications.html
                              14
Amgen Has Been Recognized For Its
Environmental Sustainability Efforts
• 2010 Waste Reduction Award Program (WRAP)
  award was given to Amgen in South San Francisco by
  the California Integrated Waste Management Board
• 2010 Puerto Rico Manufacturers Association
  Environmental Accomplishment Award, PRMA's
  highest honor, awarded to Amgen Puerto Rico for
  outstanding and consistent environmental compliance
• 2010 WasteWatch Award was given to Amgen
  Thousand Oaks for outstanding achievements in waste
  reduction and recycling.
• 2011 U.S. Environmental Protection Agency (EPA)
  Environmental Quality Award , presented to Amgen
  Puerto Rico; category: business and industry, Region 2
• 2011 Colorado Energy Partner of the Year awarded to
  Amgen Colorado for outstanding efforts in making
  Colorado a world leader in energy efficiency.
                                     15
Every Company, At any Scale, Can
Achieve Sustainability Success
 Know where you are
 Have a strategy
 Set goals
 Improve what you have
 Plan for the future
 Build sustainability into the core of your business
 Announce results




                              16

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Rob Westberg Amgen

  • 1. AMGEN Sustainability Program VCEDA Business Outlook Conference October 2011
  • 2. Amgen Is a Pioneer in Discovery and Delivery of Vital Medicines • World’s leading independent biotechnology company, with a mission to serve patients – Amgen medicines have reached 20 million patients Marketed Products – Presence in nearly 50 countries • More than 30 years of pioneering science and vital medicines • Focus solely on discovering, developing, and making human therapeutics – Specializing in innovative medicines for serious illness – Pioneer and world leader in protein therapeutic manufacturing • Broad and deep pipeline of novel product candidates For additional information about Amgen products, including important safety information, visit www.amgen.com 2
  • 3. Amgen Launched a Formal Environmental Sustainability Program in 2007 What we’ve found that leads to success: • Know where you are • Have a strategy • Set goals • Improve what you have • Plan for the future • Build sustainability into the core of your business • Announce results 3
  • 4. Know Where You Are: Compare Performance With Industry Peers Total Energy Carbon Dioxide Metric Tons / Sq Feet Gigajoules / Sq Feet 1.5 0.12 0.09 1 0.06 0.5 0.03 0 0 Amgen Average Amgen Average Water Intake Total Routine Waste Metric Tons / MM Sq Feet 6 7500 6000 MCM / Sq Feet 4 4500 3000 2 1500 0 0 Average Amgen Average Amgen Availability of data allows focus on things that are most impactful Note: 2009 Pharmaceutical Environmental Group Benchmarking; 4
  • 5. Have a Strategy: High Level Direction to Achieve Awareness, Consensus and Action Pillars Strategic Direction • Environmental impacts are understood, managed and measured for continuous improvement Conservation • Supply chain impacts are clearly understood, measured, and reduced where feasible • Sustainable products, facilities, and processes Design for Environment through use of green design principles • Amgen reputation enhanced through communications; publish annual Environmental Sustainability report Transparency • Staff embrace environmental stewardship • Accurate data collected, available in timely manner 5
  • 6. Set Goals: Specific, Measurable, Attainable, Relevant, Time-Bound 2012 target Results of conservation projects through 2010 Energy Reduce 500,000 GJ Reduction to date: 520,000 GJ Target met 62% of Carbon dioxide Reduce 75,000 MT Reduction to date: 46,000 MT target met Water Reduce 235,000 m3 Reduction to date: 660,000 m3 Target met 62% of Waste Reduce 700 MT Reduction to date: 435 MT target met Recycling Divert more than 40% Reduction to date: 58% Target met 75% of Fuel efficiency Improve by 4 mpg Reduction to date: 3 mpg target met 6
  • 7. Improve What You Have: Pick the Best Conservation and Efficiency Opportunities 7
  • 8. Pure Water Is Critical to Our Industry Recycling Significantly Reduces Use Recycled water Reverse osmosis Cooling towers water treatment 8
  • 9. Work with your Utility Partners to Maximize Benefits Technical Assistance Programs • Benchmarking & Energy Audits – Trane Cube Program – Data Center Audit – Building Re-commissioning • Equipment Efficiency Studies – Hydraulic Pumps Energy Efficiency Calculated Incentive – Air Compressors Program (EECIP) – Boiler Efficiency – Steam Trap and Condensate Return Analyses Continuous Energy Improvement Rebate and Incentive Program Program (CEI) • Incentivized Projects – HVAC Airflow Reductions Energy Efficiency Rebates for Business – Lighting Fixture Upgrades – Chilled Water Plant Optimization Steam and Condensate Audit – Pump Efficiency – High Efficiency Window Film • Equipment Rebates – Boiler Economizer Replacement • Construction/Renovation Incentives – Energy Saving Measures (From Energy Models) 9
  • 10. Our Recycling Program Has a Long History of Success • Amgen’s recycling program has been in place since mid-1990s • Since 2007, Amgen has recycled more than 16,000 MT of waste Diversion (Recycle) Rate (%) – 3200 garbage truck loads of 70 recyclable materials 60 50 • Diversion rates continue to 40 increase 30 20 • Waste minimization reduces 10 both purchase and disposal 0 2007 2008 2009 2010 costs We are recycling more and disposing less… 10
  • 11. Plan For the Future: Testing concepts to be built into Next Generation Laboratories Fume Hood With ASPS Fume Hood With ASPS • Worked with peers in our industry to develop new standards for air flow and set backs • Tested automated sash closures that reduce both energy use and improve safety. Amgen CONFIDENTIAL Facilities and Engineering • Integrated occupancy sensors for lighting and fume hood control • Next generation labs – more automation, more efficient use of space, 11
  • 12. Workplace of the Future Integrates Sustainability LEED Registered, Project Tracking to LEED Gold • Reuse of Existing Core & Shell • Demolition and Construction Waste Recycling Program • Reflective Roofing • Landscaping 50% More Water Efficient • Enhanced Commissioning Process • Active Utility Performance Measurement & Occupant Engagement Dashboards • High Performance HVAC, Intelligent Lighting System (25% Energy Reduction) • Waterless Urinals / Efficient Water Fixtures (40% Water Reduction) • Extensive Daylighting in Workspace, Exposed and Reflective Ceilings • Recycled Content & Low Emitting Materials • Forest Stewardship Council Certified Wood Highly efficient use of collaborative, tech-enabled space greatly increases environmental benefits 12 from sustainable building systems.
  • 13. Build sustainability into the core of your business: Manufacturing of the Future • Improved productivity - smaller plants and equipment for same results • Portable, reconfigurable equipment: - improved plant effectiveness • Isolator technology - reduces size of clean space • Improved cleanability - reduce energy, water and chemicals Significantly improves: • Energy use • Emissions • Water usage • Waste water volume • Solid waste generation Advances in technology promise to improve plant efficiency – both business and environmental performance improvements 13
  • 14. Announce Results: Your Stakeholders Want to Know How You Are Doing • Customers – B2B – Retail • Neighbors • Peers • Shareholders • Employees Amgen’s first environmental sustainability report: http://wwwext.amgen.com/about/environment/espublications.html 14
  • 15. Amgen Has Been Recognized For Its Environmental Sustainability Efforts • 2010 Waste Reduction Award Program (WRAP) award was given to Amgen in South San Francisco by the California Integrated Waste Management Board • 2010 Puerto Rico Manufacturers Association Environmental Accomplishment Award, PRMA's highest honor, awarded to Amgen Puerto Rico for outstanding and consistent environmental compliance • 2010 WasteWatch Award was given to Amgen Thousand Oaks for outstanding achievements in waste reduction and recycling. • 2011 U.S. Environmental Protection Agency (EPA) Environmental Quality Award , presented to Amgen Puerto Rico; category: business and industry, Region 2 • 2011 Colorado Energy Partner of the Year awarded to Amgen Colorado for outstanding efforts in making Colorado a world leader in energy efficiency. 15
  • 16. Every Company, At any Scale, Can Achieve Sustainability Success  Know where you are  Have a strategy  Set goals  Improve what you have  Plan for the future  Build sustainability into the core of your business  Announce results 16