Grifols. Environmental. Report

Transcription

1 Grifols 06 Environmental Report

2 rifols Environm 06 The photographs in this report were taken by Grifols employees as entries in the FotoGrifols contest.

3 ental Report 01. LETTER FROM THE MANAGEMENT PAGE GRIFOLS HOLDING PAGE ENVIRONMENTAL MANAGEMENT PAGE ENVIRONMENTAL PERFORMANCE 2006 PAGE OBJECTIVES 2007 PAGE ENVIRONMENTAL TRAINING, AWARENESS-RAISING AND COMMUNICATION PAGE INVESTMENTS AND EXPENSES 2006 PAGE.36

4 rifols Environmenta 01. LETTER FROM THE MANAGEMENT June was an excellent year for Grifols. Sales increased 23%, maintaining the sustained growth the company has enjoyed in previous years. The company s greatest success in 2006 was floating on the Spanish stock market in May and the stock s positive growth in its first year. Another important event was the purchase of Plasmacare s 14 plasmapheresis centers in the United States and 8 more centers from Baxter, adding to the company s existing network of 51 centers. This acquisition will facilitate the increase in production in upcoming years and will allow Grifols to better serve the more than 90 countries in which its products are currently offered. Increasing production has become a challenge in terms of environmental management for the company. The increase in production should not necessarily imply a greater impact on the environment, but the contrary: by controlling environmental aspects improved ecoefficiency per production unit can be attained. Energy and water consumption, waste generation and emissions were all contained during this period in the majority of Grifols companies. The few increases that were experienced were always lower than the growth in production. Nevertheless, environmental issues continue to be an important area for improvement in our daily activities. New environmental projects are underway which will help to attain new improvements and will allow us to grow in ways that will increasingly respect the environment. Sr. J.I. Twose Vice President Grifols 2

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6 rifols Environmenta 02. GRIFOLS HOLDING Grifols is a group of companies working in the health sector distributing its products in more than 90 countries. Since May 2006, Grifols has been listed on the Spanish stock market and forms part of the Spanish index of medium capitalization companies (IBEX MEDIUM CAP). Currently it is the leading European company in the plasma derivatives sector and fourth in the world in production. GRIFOLS IS FOURTH LARGEST PRODUCER OF PLASMA DERIVATIVES IN THE WORLD Key figures Total Sales (millions ) 455,5 524,2 641,2 The EBITDA rose 29.2% compared to % of sales were generated outside Spain. Turnover increased 62.7% in the USA, reaching million. Sales by region Sales by division Latin America 5.5% Asia-Pacific 3.3% Hospital 9.8% USA 37.4% European Union 48.2% Bioscience 68.7% Diagnostic 11.6% Raw Materials 9.9% ROW 5.6% Production has also increased company-wide. The increase, calculated using the cost of sales and corrected with the Consumer Price Index, was 27% over the course of the past two years, and 21% last year alone. The evolution of environmental aspects related to increases in production are presented in this report. 4 In terms of products manufactured by Grifols, all the manufacturing expenses are included in the cost of sales. These include raw materials and production costs (including direct staff and associated production structures). In terms of products acquired from third parties, the cost of sales includes all the purchasing expenses.

7 l Report Grifols holding company has 4 commercial divisions: Bioscience Division Specializes in the research, development, production and marketing of plasma derivatives. Diagnostic Division Develops in vitro diagnostic products for laboratory testing, including products for hospital blood banks and transfusion centers. Hospital Division GRIFOLS ES EL CUARTO PRODUCTOR MUNDIAL DE HEMODERIVADOS Offers a wide range of non-biological products used in hospital pharmacies, in surgery, clinical nutrition, fluid therapy and products for other therapeutic uses. Raw Materials Deals with the sales of intermediary products like special albumins for industrial use and/or use as a culture medium. GRIFOLS IS LISTED ON THE SPANISH STOCK MARKET SINCE MAY 17, 2006 GRIFOLS news in 2006: Acquisition of 22 plasmapheresis centers in the USA. The company is listed on the Spanish stock market. Adaptation of existing syndicated credit of 225 million euros to international accounting norms. The FDA grants a license to market Flebogamma DIF, the new generation intravenous immunoglobulin, in the USA. Registered products Bioscience Hospital Diagnostic Total In addition to the existing registered products, 38 new registrations have been presented. Grifols Trademarks as of December 31, 2006 Bioscience Hospital Diagnostic Grifols Holding Total new trademarks are in the process of being registered.

8 rifols Environmenta GRIFOLS, INC. GRIFOLS, S.A. GRIFOLS INTERNATIONAL COMERCIAL AREA INDUSTRIAL AREA AMERICA ASIA EUROPE Diagnostic Grifols Grifols Argentina Grifols Asia/Pacific Grifols Deutschland Laboratorios Grifols Grifols Brasil Grifols Malaysia Grifols Slovakia Grifols Engineering Grifols Chile Grifols Thailand Grifols France Instituto Grifols Grifols México Grifols Japan Grifols Italia Biomat Grifols USA Grifols Polska Biomat USA OTHER Grifols Viajes Grifols Portugal Grifols Czech Rep. Grifols UK Grifols Biologicals PlasmaCare Movaco (Spain) Logister The companies of the group are organized in two main blocks: the industrial area and the commercial. GRIFOLS S.A.: Grifols S.A. is the parent company of Grifols group and is responsible for coordinating the resources, people and companies within the group, offering services such as: Human Resources, Communication and Image, Administration and Finance, Information and Documentation, Regulatory Affairs, Engineering, Maintenance, Environment, Occupational Health and Safety, Organization and IS. Staff at Grifols S.A. ( December 31, 2006 ) : 234 Grifols S.A. operates in the following locations: C/ Can Guasch 2, P. I. Levante, Parets del Vallès (Barcelona) C/ De la Marina 14-18; Torre Mapfre, Barcelona C/ Jesús i Maria 6, Barcelona Pg. Fluvial 24, P.I. Autopista, Parets del Vallès (Barcelona) 6 Grifols Inc. Grifols Inc. is responsible for the corporate policies in Grifols companies in the USA. It offers services in Human Resources, IS, Accounting, Control, Finance and Planning, Audits and Health and Regulatory Affairs. Staff at Grifols Inc. ( December 31, 2006 ): Lillyvale Avenue- Los Angeles California

9 l Report INDUSTRIAL AREA BIOSCIENCE Instituto Grifols and Grifols Biologicals research, develop and manufacture protein therapies derived from human plasma. The plants adhere to Good Manufacturing Practices and have been approved by the US FDA to market our products in the USA. Grifols products are marketed in over 90 countries worldwide. The companies possess a total plasma fractionation capacity of 3.6 million liters of plasma a year, making Grifols one of the largest plasma fractionation companies in the world. Staff at Instituto Grifols (December 31, 2006): 614 Staff at Grifols Biologicals (December 31, 2006): 399 Can Guasch 2, P. I. Levante, Parets del Vallès (Barcelona) C/ Tenes 13, P. I. Levante, Parets del Vallès (Barcelona) 5555 Valley Boulevard. Los Angeles. California Temple Avenue. City of Industry. California Biomat controls, reviews, tests and classifies plasma units. It has storage facilities which maintain a constant temperature of -30 o C, with a storage capacity of more than 1 million liters of plasma. Biomat has the Quality Standards of Excellence Assurance and Leadership (QSEAL) which was awarded by the Plasma Protein Therapeutics Associaton (PPTA). Staff at Biomat (December 31, 2006): 103 C/ Marineta s/n, P.I. Levante, Parets del Vallès (Barcelona) Biomat USA is the main provider of plasma to Institution Grifols and Grifols Biologicals and one of the main US companies supplying plasma for fractionation. Biomat USA is a network of plasmapheresis centers authorized by the FDA which are strategically located throughout the USA. The plasma is subjected to strict testing and controls to guarantee its quality before being sent for fractionation. Staff at Biomat USA (December 31, 2006): Lillyvale Avenue, Los Angeles. California Temple Avenue. City of Industry. California HOSPITAL Laboratorios Grifols researches and develops hospital products: parenteral solutions, enteral and parenteral nutrition and specific products for blood banks. Laboratorios has been a leader in the spanish market for intravenous solutions for more than 60 years. Staff at Laboratorios Grifols (December 31, 2006): 437 Pg. Fluvial 24, P.I. Autopista, Parets del Vallès (Barcelona) Avda. Juan Carlos I, 97, Las Torres de Cotillas (Murcia) (M) Polígono Industrial Los Llanos s/n, Las Torres de Cotillas (Murcia) (M1)

10 rifols Environmenta DIAGNOSTICS Diagnostic Grifols develops instrumentation and reagents for clinical diagnosis and services inspired in advances in biology, electronics and computers. It specializes in diagnostic tests in immunohematology, enzyme immunoanalysis (ELISA) techniques and coagulation. Staff at Diagnostic Grifols (December 31, 2006): 182 Pg. Fluvial 24, P.I. Autopista, Parets del Vallès (Barcelona) ENGINEERING Grifols Engineering designs innovative solutions in engineering for manufacturing processes in the plants and offers its services to other companies in the pharma, hospital and biotech sectors. The company has two areas: pharmaceutical projects and applied engineering. Staff at Grifols Engineering (December 31, 2006): 30 C/ Can Guasch 2, P.I. Levante, Parets del Vallès (Barcelona) 5555 Valley Boulevard. Los Angeles. California COMERCIAL AREA Grifols International encompasses marketing, sales, distribution and post-sale service in the world, with affiliates located in different geographic areas. Staff at Grifols International: 112 Pg. Fluvial 24, P.I. Sector Autopista, Parets del Vallès (Barcelona) C/ De la Marina 14-18; Torre Mapfre, Barcelona C/ Jesús i Maria, 6, Barcelona Movaco markets and distributes hospital and pharmacy products in Spain and Portugal. This company works exclusively with the products and services produced by Grifols companies or products which Grifols offers through distribution agreements. The six Movaco delegations based in Spain offer a local and direct telephone client support service, a specialized sales network and post-sale technical customer service for each product. Staff at Movaco (December 31, 2006): 221 Pg. Fluvial 24, P.I. Autopista, Parets del Vallès (Barcelona) Delegación Centro: Trespaderne 2 (Barrio aeropuerto), Madrid Almacén: Av. Aragón 336, P.I. Las Mercedes, Madrid Delegación Levante: Calle C-Esquina calle H, P.I. El Oliveral, Ribarroja (Valencia) Delegación Noreste: C/ Jesús i Maria 6, Barcelona Delegación Noroeste: Polígono del Tambre, Vía Ptolomeo 22-24, Santiago de Compostela (La Coruña) Delegación Norte: Polígono Sangroniz. C/Iberre S/N parcela 5, nave 6, Sondica (Vizcaya) Delegación Sur: Carretera de la Esclusa, s/n, ZAL del Puerto de Sevilla, nave 1.8, módulo 2, Sevilla 8 Logister is dedicated to the development and creation of software for the hospital sector. This company also offers computer support to the companies of the group, creating specific computer programs. Staff at Logister (December 31, 2006): 13 Pg. Fluvial 24, P.I. Autopista, Parets del Vallès (Barcelona)

11 l Report INDUSTRIAL FACILITIES The following table shows the locations of the different industrial facilities, activities and companies. SPAIN Parets Levante. Parets del Vallès (Barcelona) USA Valley Boulevard. Los Angeles (California) Instituto Grifols Laboratorios Grifols Grifols Engineering Grifols S.A. All activities Production area, R+D and the Technical area All activities All activities Grifols Biologicals Inc. Grifols Inc. Biomat USA Production areas, laboratories and Offices All activities Offices Biomat. Parets del Vallès (Barcelona) Biomat All activities Parets Autopista. Parets del Vallès (Barcelona) Temple Avenue. City of Industry (California) Grifols Biologicals Inc. Biomat USA Packaging, storage and sending of finished product Plasma storage Laboratorios Grifols Diagnostic Grifols Grifols International Movaco Logister All activities All activities General storage and logistics Central offices, Quality Assurance, tech service All activities Austin. Austin (Texas) Biomat USA Testing Murcia. Las Torres de Cotillas (Murcia) Laboratorios Grifols Solutions manufacturing Murcia 1. Las Torres de Cotillas (Murcia) Laboratorios Grifols Manufacturing of plastics, storage of raw materials and finished product

12 rifols Environmenta SOCIAL COMMITMENT Grifols has been present in the field of health since 1940, creating innovative products and services based on the values of ethics and responsibility. In its more than 60 years of history, the company has developed, manufactured and marketed products designed to improve the health of people. The company manufactures high quality, safe and effective products. GRIFOLS STAFF Affiliates Spain The staff increased 21% compared to 2005, and includes employees from the 15 Plasmacare centers, a company Grifols acquired in March % of the personnel is located in the United States, 45% in Spain and 6% in the rest of the world at the company s affiliates in Europe, Latin American and Asia-Pacific. 34% of the employees in Spain 43% of the USA staff (not including staff at the plasma collection centers) have degrees in higher education. Of the total staff, 56% are women and 44% are men. 0

13 l Report THE GRIFOLS FOUNDATION The Víctor Grífols i Lucas Foundation was created in March 1998 to foster studies and development in bioethics in the world of health and in particular, the pharmaceutical industry. The objectives of the Foundation are the following: 1. Foster studies in specific areas of bioethics by funding scholarships and prizes. 2. Organize conferences and seminars to talk about and probe into ethical questions which are continuously raised in the fields of life sciences and health. 3. Create publications which include foundation essays and dissertations. 4. Remain open to all activities which help to deepen knowledge of life ethics. In 2006, the Foundation organized the following activities to carry out its objectives: 1. Debates on bioethics issues. 2. Courses on the limits of virtual medicine. 3. Awarding of prizes and scholarships related to research. 4. Publications such as the Bioethics Notebook Collection. The webpage of the Foundation is:

14 rifols Environmenta 03. ENVIRONMENTAL MANAGEMENT All Grifols companies in Spain are currently certified under the ISO standard. The environmental management system is centrally coordinated using unified criteria and procedures for the holding as a whole. At the same time, the system respects the specific characteristics of each of the Grifols companies, while taking advantage of their other management systems and existing documentation. The documenting system is based on a global policy for all the companies, a corporate manual and 13 strictly environmental documents which detail operational and management procedures. Each of the companies has an Environmental Committee formed by the various directors of areas such as the Managing Director, Production Director, R&D Director, Technical Director, Delegation Directors, Marketing Director, Head of the Environmental Department and other important positions in the company. THE ORGANIZING AND DECISION-MAKING BODY IN ENVIRONMENTAL MANAGEMENT IS THE ENVIRONMENTAL COMMITTEE OF EACH COMPANY 2

15 l Report The Environmental Committees manage the company s environmental issues and focus on obtaining the environmental results detailed in this report. ENVIRONMENTAL COMITTEES ENVIRONMENTAL COMMITTEES OBJECTIVES AUDITS ENVIRONMENTAL COMMUNICATION LEGAL REQUIREMENTS IMPROVEMENT OPPORTUNITIES COLLABORATORS ENVIRONMENTAL PERFORMANCE Having a single Environmental Department which coordinates Grifols activities centralizes all the environmental information and allows certain issues, such as waste or effluents, to be integrally managed. An exhaustive identification of all environmental aspects allows improvement objectives to be established, revised and updated periodically by the Environmental Committees.

16 rifols Environmenta 04. ENVIRONMENTAL PERFORMANCE 2006 Each company in the group establishes its own objectives and goals in the Environmental Management Program. These programs focus on four main areas common to all of the companies. Consumption Consumption: Raw materials - energy Use Water cicle Grifols Waste water Waste Emissions Each company contributes in areas in which there is room for improvement, and works to optimize the company s environmental performance as a whole. The program s objectives involve direct and indirect participation of all collaborators so that the entire group contributes to lessen the impact it has on the environment ENVIRONMENTAL OBJECTIVES IN EACH AREA FOR GRIFOLS COMPANIES Grifols, S.A. Instituto Grifols Laboratorios Grifols Diagnostic Grifols Biomat Grifols Engineering Grifols International Movaco Logister Grifols Biologicals Biomat USA Consumption Waste Waste water Emissions KEY DATA Consumption Consumption of electricity increased 5.3% last year, 15.7% less than the relative increase in production. Consumption of natural gas has increased 1.4% compared to 2005, 19.6% less than the relative increase in production. Waste In 2006, 8,768 Tn of waste were generated. 58% of waste is recycled or used as a by-product. 4 Water Cycle In 2006, 732,417 m 3 of water were consumed, which was 9.8% more than in 2005, but 11.2% less than the relative increase in production. Emissions CO 2 emissions generated by the consumption of natural gas and electricity increased 3% compared to 2005.

17 l Report 4.1 CONSUMPTION RAW MATERIALS An important objective of the ecoefficiency policy is to optimize the use of raw materials and obtain a higher yield per unit manufactured. The quality systems used in each company include in their objectives, the improvement of productivity and rejection ratios, thus optimizing the use of raw materials. The basic raw material of Instituto Grifols and Grifols Biologicals is human plasma which comes mainly from the Biomat USA and PlasmaCare plasmapheresis centers. Before this plasma can be accepted, it must pass many tests as required by law. MAIN RAW MATERIALS FOR INSTITUTO GRIFOLS IN ,340,323 liters of plasma 191,000 liters of ethanol 489 Tn polyethylene glycol 325 Tn sorbitol Packaging INSTITUTO GRIFOLS Plasma derivative products MAIN RAW MATERIALS FOR GRIFOLS BIOLOGICALS IN ,000 liters of plasma 759,217 liters of ethanol 798,000 liters of acetona Packaging GRIFOLS BIOLOGICALS Plasma derivative products In enteral and parenteral solution production, Laboratorios Grifols consumes mainly water, glucose and sodium chloride and other products for parenteral nutrition. Glass bottles, PVC flakes and polypropylene (PP) are also used to manufacture bottles and plastic bags. Laboratorios Grifols works to reduce rejected PVC and improve the yield in the plastic injection and extrusion processes, in order to optimize the use of the raw material and reduce waste generation.

18 rifols Environmenta MAIN RAW MATERIALS FOR LABORATORIS GRIFOLS IN Tn of plastic PP Parenteral solutions 411 Tn of PVC 2876 Km of smooth PVC tubing 142 Tn of glucose 74 Tn of sodium chloride Packaging LABORATORIOS GRIFOLS Injectables Irrigation and washing solutions Blood collection bags The main raw materials used at Diagnostic Grifols to manufacture diagnostic equipment are electronic components. For reagents, the main raw material in manufacturing is the plastic diagnostics cards, reagents and specific monoclonal sera. MAIN RAW MATERIALS FOR DIAGNOSTIC GRIFOLS IN ,000 Electronic mat. units 7,500 PCA plates DIAGNOSTIC GRIFOLS In vitro diagnostics equipment 8,000,000 plastic cards 2,950 liters of reagent sera 5,400 liters of reagents Packaging Diagnostics reagents ELECTRICAL ENERGY In 2006, actions were taken to reduce electricity consumption. Energy expenditure was reduced despite the increase in production (see graph below). Overall consumption increased 5.3% to reach 68 million kwh, which was 15.7% less than the relative increase in production. CONSUMPTION OF ELECTRICITY AT GRIFOLS VS. SALES COST * 90,000, ,000,000 70, ,000, ,000, Global consumption (kwh) Sales cost -CPI (%) 40,000,000 30,000,000 20,000,000 10,000, (*) The increase in production is measured using the cost of sales corrected with the CPI (50% Spain and 50% USA).

19 l Report ELECTRICITY CONSUMPTION BY INDUSTRIAL PLANT IN KWH 30,000,000 25,000, ,000,000 15,000,000 10,000,000 5,000,000 Parets Levante Valley Boulevard Temple Avenue Parets Autopista Biomat Murcia 1 Murcia ACTIONS TAKEN TO REDUCE ELECTRICITY CONSUMPTION Thermal roof insulation at Diagnostic Grifols (Parets Autopista) A thermal treatment in the form of reflective paint was applied to the roof of the Diagnostic Grifols production area and offices, covering a surface of 2,500 m 2. The benefits were the following: The exterior temperature of the roof was approximately 10 o C lower on sunny days. The temperature inside the plant was 6 o C lower. The energy saved in hot periods was the equivalent of to thermal kwh per hour. 2,500 M 2 WAS INSULATED USING REFLECTIVE PAINT ON THE ROOF OF DIAGNOSTIC GRIFOLS Improvements in the lighting at the Temple Avenue plant (Los Angeles) Different initiatives were carried out in July to reduce the consumption of electricity in the lighting system of the Temple Avenue plant. A large quantity of cables and lighting over 20 years old was replaced by more energetically efficient lighting and cables. 152 motion detectors and sensors were installed throughout the building. The result was brighter lighting illuminating a larger area and significantly less energy consumption. The quality of lighting also improved. The consumption calculated for the last 5 months of the year compared to the last 5 months of the previous year amounted to energy savings of about 413,800 kwh. 413,800 KWH LESS WERE CONSUMED AS A RESULT OF IMPROVEMENTS IN THE LIGHTING SYSTEM

20 rifols Environmenta Study of new cogeneration facilities in the Parets del Valles plant Parets facility has an electricity cogeneration plant which produces part of the electric energy consumed. This plant consumes natural gas that fuels the two 1.6 MW cogeneration engines, installed in In 2005, they were reviewed and it was found that they were working in optimal conditions and schedule from a technical, economic and environmental standpoint. In the following graph it is clear that the KWh produced by cogeneration have remained virtually constant in recent years. The plant has reached its maximum output according to the established optimization parameters. ANNUAL % OF KWH PURCHASED AND COGENERATED 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 33% 31% 67% 69% 30% 70% kwh cogenerated kwh Purchased The annual increases in energy consumption and future requirements for production led us to examine during 2006 the options to ensure the least costly and most environmentally friendly energy supply available. The outcome of the study was a project to replace the current cogeneration system with two new engines with a total power of 6.1 MW, to be installed in The maximum use of residual heat created by cogeneration either as steam or hot water for use in the production plants was taken into account when determining the power needed. This new facility will mean: An ensured supply of electricity and heat energy during temporary external electricity supply cuts. High energy efficiency with a global yield of 68%. This is greater than other sources of energy such as combined cycle technology. Savings on greenhouse gas emissions (CO 2 ) of approximately 23.5% compared to the emissions that would have been generated from purchasing electricity plus the consumption of natural gas for steam and hot water production. THE NEW COGENERATION FACILITY WILL ANNUALLY SAVE THE EMISSION OF 5,614 TN OF CO 2 INTO THE ATMOSPHERE 8

21 l Report A systematic method for saving electricity Maintenance Department has established a method in order to detect opportunities for energy savings in the lighting of facilities. This includes, within the preventive and corrective maintenance activities, identifying actions that will give priority to greater annual savings and a faster return on investment. The system includes a savings opportunities file which contains a description of the proposal, the current situation, the resources required, efficacy, the changes proposed, the expected benefits and an evaluation of results. In the follow up meetings, that occur every 15 days, these proposals are discussed and options for improvements are decided upon. Some examples of actions taken include: the installation of solar light sensors, timers and timed switches in various rooms, bathrooms, dressing rooms, halls and dining areas. THE LIGHTING SYSTEMS ARE SYSTEMATICALLY REVIEWED FOR OPTIMIZED CONSUMPTION NATURAL GAS Natural gas is consumed in the cogeneration process and in water boilers and heaters used in production and other processes in the industrial plants. The total consumption of natural gas increased 1.42% but the increase in production was 21% compared to the previous year (see graph below). CONSUMPTION OF GAS IN KWH (INCLUDING COGENERATION) 120,000, ,000, ,000, Gas (kwh) Cost of sales -CPI (%) 60,000,000 40,000,000 20,000, Savings in steam in the ethanol distillation tower Instituto Grifols, S.A. has installed a heat exchanger unit which works at the entrance and exit of the ethanol from the distillation tower which leaves the tower at a temperature of over 90 o C. Because of this exchange, the temperature of the entering effluent reaches about 50 o C, saving 246,000 Mcal./year.

22 rifols Environmenta PAPER USAGE Paper consumption at Grifols companies has tapered off slightly. Instructions for good practices incorporated years ago continue to be applied to keep on reducing and controlling use. Some of the companies have set objectives for reduction and have achieved them. PAPER CONSUMPTION (TN) USA SPAIN The consumption in each point of use is published every six months so that users can be informed and form part of the responsible use of paper. New centralized printing machines allow double sided printing and use dry toner, replacing different individual printers and their traditional consumables. In Spain, 79% of the paper used is recycled paper, surpassing the original objective of 60%. CONSUMPTION OF RECYCLED PAPER IN SPAIN 100% 75% Recicled paper White paper 50% 0 25% THE CONSUMPTION OF RECYCLED PAPER HAS REACHED 79%

23 l Report 4.2 WASTE In 2006, 8,768 tons of waste were generated which was 7.3% more than the previous year. It must be noted that an improvement in waste treatment has been achieved, given that 58% of the waste was either recycled or used as a by-product, while eliminated waste remained constant. Another positive development is that the increase in waste generated was slightly less than the increase in production. QUANTITY AND DESTINATION OF WASTE GENERATED (TN) 10,000 8,000 6,000 4,000 2, % 120% 100% 80% 60% 40% 20% 10,000 8,000 6,000 4,000 2, Generated waste (Tn) Cost of sales -CPI (%) Waste eliminated (Tn) By-product and recycled waste 58% OF WASTE IS EITHER RECYCLED OR USED AS A BY-PRODUCT In Spain, the new manufacturing plant for Flebogamma DIF at Instituto Grifols has generated 25% more of the by-product polyethylene glycol (PEG). In order to use the PEG as a by-product, the solution is concentrated to a certain percentage, reducing its volume up to 70%. In 2006, a project was launched to set up a new evaporator to increase total concentration capacity. This evaporator has a concentration capacity of 40 m 3 per day and operates in a low temperature (40 o C) and vacuum. This technology has advantages over evaporation through atmospheric pressure. There was a 17% increase in general waste which was directly related to the increase in production.

24 rifols Environmenta PRINCIPAL WASTE GENERATED IN SPAIN (TN) General waste PEG by-product Eliminated PEG Sanitary and incinerated Cardboard Plastic PRINCIPAL WASTE GENERATED IN USA (TN) Alcohol waste Acetone waste(2%) Acetone waste (95%) General waste Sanitary and incinerated The costs of waste management were 971,000 in 2006, 56.4% of which were generated in Spain and the rest in the USA. This value is 4.25% lower than the 2005 figure and demonstrates that increased recycling and by product management of waste has lowered overall management costs. COST OF WASTE MANAGEMENT ( ) 1,200,000 1,000,000 Waste Expenditures Spain Waste Expenditures in USA 2 800, , , , , , , , , , ,

25 l Report Reduction of production waste Diagnostic Grifols reduced the quantity of waste generated in the manufacture of reagents. Peristaltic pumps were replaced with ceramic pumps in one of the dosing machines which reduced the amount of rejected product. Laboratorios Grifols Murcia has increased manufacturing yield by up to 97.5% for blood collection bags, reducing loss of raw materials and minimizing PVC waste. The reduction of rejected product for quality issues due to dragging has been reduced by 30%. Laboratorios Grifols Murcia has also improved the yield of plastic injection and extrusion processes, making better use of the raw material and lessening overall waste. Laboratorios Grifols Parets has also increased yield to 96.9% in its 3-liter bags.. Optimized lighting sources in IPTH In 1998, Biomat began its viral inactivation service of plasma for transfusion in the hospital using the method defined by the German Red Cross license. The Inactivation of Plasma for Transfusion in the Hospital (IPTH) area is totally separated from the area of plasma for industrial fractionation. Biomat provides a service to hospitals and transfusion centers which send plasma to Biomat which then returns the product once it has been inactivated. The inactivation is carried out by exposing bags to light rays of 45,000 lux for 60 minutes. Currently, the light rays come from special fluorescent lights with a very short life. For the past two years Biomat has been studying alternatives to this lighting that will provide the same service while consuming less energy and reducing the impact on the environment. From the results of the study, which was jointly carried out with the Optic Department of the Universitat Politècnica de Catalunya, a prototype was built last year which uses fluorescent lights with a longer life. This year the new process will be validated and will considerably reduce the number of fluorescent tubes and waste.

26 rifols Environmenta Grifols participation in SIGRE SIGRE is the Spanish acronym for the Integrated System for Management and Collection of Packaging and Medications in the pharmaceutical sector. This system was created in Spain to collect and manage left-over medication waste, namely the medications and their packaging generated in households, as required by the 1997 Packagings Law. This law also requires that companies producing packaging must apply measures to prevent the production of waste and also promote the reuse and recycling of containers. Grifols companies, Instituto Grifols, Laboratorios Grifols and Movaco, participate in SIGRE. Recently, the Corporate Plan for Packaging Prevention of the pharmaceutical sector was published for the period The plan reduced packaging weight by 3.2%. The Plan aims to attain objectives for recycling in the whole of Spain, as established by the Packagings Law, and reduce the weight of packaging waste generated. Indicators such as weight reduction, minimization of environmental impact, improvement in reuse and recycling were used to obtain these goals. Reduction of packing materials for shipping Laboratorios Grifols made changes to the packaging to reduce the quantity of materials used: smaller volume in cardboard boxes of twenty-250ml bottles and 14% lower weight of shipping boxes for solution bags from Murcia. Reduction in packaging and auxiliary components in the design of the product Instituto Grifols has worked on incorporating environmental improvements in some pharmaceutical specialties. Seven specialties were studied in which accessories (filters) and some double needles were eliminated. Laboratorios Grifols in Murcia reduced 1 million capsules with valve on its Leucored RC/T&B bags. 4

27 l Report 4.3 WATER CYCLE Since water is a scarce resource, one of our ongoing objectives at all Grifols companies is to manage its use efficiently. We have sought to design our targets so as to not only reduce consumption but also to improve the quality of waste water. WATER CONSUMPTION Water consumption has increased by 65,000 m 3. Nevertheless, this increase is comparatively less than the increase in production. For each unit produced, 11.2% less water was used compared to last year. USE Product CONSUMPTION Groundwater Municipal company Production Cleaning Refrigeration Sanitation Irrigation WASTE WATER Homogenization Neutralization Municipal sewage Municipal waste water treatment plant EVOLUTION OF WATER CONSUMPTION (m 3 ) 1,000, Consumption (m 3 ) Cost of sales -CPI (%) 800, , , , , , , A larger increase was seen in our Parets Autopista production plants, where 22.4% more water was consumed than in This increase is due to moving Laboratorios Grifols 3 liter serum bag production line from Parets Levante to Parets Autopista. This plant has not reduced its consumption of water because the new Flebogamma DIF also began production at the Levante facility.

28 rifols Environmenta WATER CONSUMPTION BY PLANT (GREATER THAN 2,000 M 3 /YEAR) 350, , , , , ,000 50, Parets Levante Valley Avenue Parets Autopista Murcia WATER COSTS BY PLANT ( ) 450, , , , , , , ,000 50, Parets Levante Valley Avenue Parets Autopista Murcia Water costs have increased slightly in all the plants. In 2006, some of the companies began initiatives to reduce water consumption. In Laboratorios Grifols at Parets del Vallès, the time to clean the sand filters used in the water purification process has been shortened. Grifols S.A. has decreased water consumption for irrigation by 50%, through reducing areas with lawns and by installing drip irrigation systems where possible. WATER USE 6 The waste water parameters have been minimized as much as possible. The new Instituto Grifols production plant for Flebogamma DIF was designed with the cleaning rooms, piping, interconnections and CIP s (Clean in Place) necessary for an automatic sequential cleaning of the reactors. Cleaning process using CIP s is more efficient than the manual process because it reduces the amount of detergent, water and alkali used.

29 l Report These plants have also been designed to separate waste water in terms of its organic content (COD). This way, process water with a high COD is separated and goes through a different circuit from cleaning water and can be treated adequately. In the Valley Avenue plant, waste water parameters in neutralization and homogenization have also been improved. WASTE WATER DISPOSAL Waste water from all Grifols plants goes to the public sewage system. Additionally, in the cases that it is judged necessary, it previously goes through homogenization and neutralization systems. In 2006, the amount of COD (Chemical Oxygen Demand) contained in waste water that was sent to the public sewage network, increased 16% mainly due to the launch of the new Flebogamma DIF production plant. COD IN WASTE WATER IN SPAIN AND THE USA (TN) Laboratorios Grifols Grifols Biologicals Instituto Grifols To correct this tendency and to be able to take on future increases in production, Instituto Grifols has started a project to install a new biological purification system for waste water based on ultrafiltration membranes. EFFLUENTS HIGH IN COD CENTRIFUGE SLUDGE CONTAINER SLUDGE CONDITIONER 6,5 m 3 SLUDGE PURGING ULTRAFILTRATION MEMBRANES BIOLOGICAL REACTOR 170 m 3 BRM HOMOGENIZATION 85 m 3 DEPURATED WATER

30 rifols Environmenta This system will include a homogenization tank that supplies a 170 m 3 bioreactor, aerated with a grid of air diffusers which will adequately oxygenize the activated sludge. Compared to other conventional biological systems, this reactor has a unit of ultrafiltration membranes that filter the treated water. A higher concentration of sludge is obtained in the reactor which minimizes the purification area. This system will also have a conditioning unit and a centrifuge to separate the sludge to be eliminated. In order to optimize the plant, not all waste water will be treated but, after testing the effluents from production, only those which have a determined level of organic content are treated. INSTITUTO GRIFOLS BUILDS A NEW BIOLOGICAL PURIFICATION SYSTEM TO TREAT WASTE WATER EFFLUENTS WITH A HIGH ORGANIC CONTENT 8

31 l Report 4.4 ATMOSPHERIC EMISSIONS Direct emissions are generated through natural gas combustion boilers which produce steam and hot water. These boilers are located in the Parets Levante, Valley Boulevard, Parets Autopista and Murcia plants. Atmospheric emissions are also produced by cogeneration motors, which are also fuelled by natural gas in Parets del Valles. Another atmospheric emission is in the form of water vapor from the refrigeration towers. These towers undergo periodic preventative maintenance, cleaning and disinfections to ensure that they are safe and operating correctly. Non-channeled emissions are also produced in the form of small leaks of refrigeration gases. The majority of these gases are ecological, without chlorinated molecules which destroy the ozone layer. After measuring CO and NOx produced in the boilers, emissions of these gases were far below the legal limits ensured by our preventative maintenance system. NOx emissions from Grifols plant in Los Angeles are regulated by RECLAIM (Regional Clean Air Incentives Market), a regional market for emission rights in California (USA) which gives incentives for cleaner air. The system establishes emission levels which if reduced, allows the company to sell its remaining rights on the market. In 2006, we sold NOx credits on the Regional Market for 7,468. CO 2 EMISSIONS The main atmospheric emissions generated by Grifols come from the use of natural gas and indirectly due to electricity consumption. Direct and indirect CO 2 emissions reached 40,223 tons, 3% higher than in 2005, but far below the increase in production. Tn CO Tn CO Tn CO Electricity purchased in Spain 12,195 12,020 12,948 Electricity purchased in USA 12,354 12,009 12,361 Natural gas cogeneration in Spain 3,899 3,739 3,726 Natural gas other uses Spain 5,645 5,921 6,281 Natural gas other uses USA 4,921 4,994 4,907 Total CO 2 emissions (Tn) 39,014 38,683 40,223

32 rifols Environmenta TRANSPORT Grifols International has requested environmental information from the regular transport companies used in order to establish priorities in contracting. Among other items, the ISO or EMAS is requested, whether biodiesel or next generation combustibles are used, vehicle characteristics such as the kind of gas used in refrigerated trucks and noise levels. Commercial vehicles in the Spanish sales network have been tested for their average consumption and emissions. Fuel efficiency and the amount of emissions will be new criteria to take into account when the new models are selected. CO 2 emissions generated by vehicles used by the sales division in Spain were approximately 511 Tn in

33 l Report 5. OBJECTIVES FOR 2007 Grifols has created an Environmental Management Program for 2007 for all the companies in the group. It will involve group and individual participation in one or more of the areas which include: Consumption, Waste, Water Cycle and Emissions. ENVIRONMENTAL OBJECTIVES FOR 2007 BY AREA Grifols, S.A. Instituto Grifols Laboratorios Grifols Diagnostic Grifols Biomat Grifols Engineering Grifols International Movaco Logister Grifols Biologicals Biomat USA Consumption Waste Water Cycle Emissions The action to be taken and necessary resources are decided upon by the Environmental Committees of each company. CONSUMPTION Energy: Renovate and expand the current cogeneration plant in Parets Levante. Suppliers: Increase the number of suppliers which use reusable packaging. Communicate environmental criteria to suppliers. WASTE Waste: Install a new evaporator to increase the PEG by-product concentration capacity so that it is up to speed with production. Recuperate polyethylene bags in Murcia for recycling. Packaging: Reduce the amount of packaging for the diagnostic cards. Use reusable packaging when sending plasma paste. Replace 30% of production of PVC bags with polypropylene bags. WATER CYCLE Consumption: Reduce the water consumption per unit manufactured at Parets Autopista. Use: Begin using the new CIP design which reduces the consumption of water and sodium hydroxide. Waste water: Start up the biological water treatment plant to reduce organic content in waste water in the Parets Levante facility. EMISSIONS Transport: Increase the number of users of Grifols collective transport. Contract 50 new vehicles with reduced CO 2 emissions for the Spanish sales division.

34 rifols Environmenta 6. ENVIRONMENTAL TRAINING, AWARENESS-RAISING AND COMUNICATION TRAINING AND AWARENESS-RAISING Grifols has created mandatory training to raise awareness on environmental issues for all employees in Spain. For this reason, many sessions are held every year so that all employees have the opportunity to attend. These sessions endeavour to explain Grifols environmental aspects and how they are managed. The legal implications and the environmental management system are also described. ENVIRONMENTAL TRAINING AND AWARENESS-RAISING IN Hours Staff Training Awareness-raising Environmental training is carried out when there is a need for specific training for some positions, such as training environmental coordinators at the Movaco delegations. Simulated emergency exercises for situations which could impact the environment require each employee involved to have received such training. In 2006, two simulations were performed in the Parets Levante plant; one included the unloading of hydrochloric acid and the other, an ammonia gas leak from the refrigeration system. Simulations: Hydrochloric acid spill during tank loading and an ammoniac gas leak. 2

35 l Report ENVIRONMENTAL COMMUNICATION Communication between staff and the Environmental Department is ongoing. The Environmental Department facilitates communication as an effective means of exchanging information and ensuring participation in the environmental system. NUMBER OF ENVIRONMENTAL COMMUNICATIONS SENT AND RECEIVED Grifols Engineering Grifols International Movaco-Logister Biomat Grifols, S.A. Diagnostic Grifols Laboratorios Grifols Instituto Grifols In 2006, various articles have been published in the internal newsletter, Cosmos. One of the articles refers to the prize for corporate innovation which was awarded at the end of 2005 for the waste management of the by-product polyethylene glycol. In April, environmental improvements from 2005 were published in Cosmos, and the July article described activities for the World Environment Day. PRIZE FOR ENVIRONMENTAL MANAGEMENT In November, during the celebration of Ecovallès Days, the City Hall of Parets del Vallès awarded Grifols for its efforts in reducing its environmental impacts. In this event, Grifols presented its environmental program and the preceding year s performance to those in attendance. Ecovallès Days offers local companies the opportunity to voice concerns on the management of the environment and to talk in depth about new legal requirements. COLLABORATIONS In 2006 Grifols participated in the COASHIQ work group (Autonomous Safety and Hygiene Commission for the Chemical Industry) that was created to apply the Royal Decree 9/2005, which defines potentially soil polluting activities and establishes the criteria and standards for declaring soil as contaminated. Experts on soil contamination were invited to some of the meetings to discuss this issue. A Guide to Soil Contamination Prevention for the Pharmaceutical Sector was created from these meetings.

36 rifols Environmenta Grifols also collaborated with the Catalonian government in the creation of the Guide to Corporate Social Responsibility. This guide will be published for 2007 and defines the methodology for defining, incorporating and reporting a strategy for corporate social responsibility. It gives examples of companies which have already developed policies in each area of responsibility. Grifols appears in the section referring to the environment. WORLD ENVIRONMENT DAY Different activities were organized to celebrate the World Environment Day on June 5. Fifty people participated in this year s 30 km bicycle ride in Parets del Vallès. The route followed the Tenes River, passing picturesque natural scenes close to our facilities. A drawing competition was organized for children related to Grifols employees from all over the world. This competition was designed to create awareness of the importance of respecting the environment. This year s theme of seas, mountains and deserts was chosen to reflect the United Nation s issue of the year: Deserts and desertification. The competition was organized into two categories: under 7 and 8-12 year-old with three prizes for each category. More than 170 drawings were entered in this competition, vastly exceeding expectations. All the drawings can be viewed on the web at Tyler Wong Sunny Day 1st Prize (under 7) Carla Torrubia Nature 1st. Prize (8-12 ) 4

37 l Report Aniol García Sea and fish 2nd Prize (under 7) Noemí Álvarez Rough seas 2nd Prize (8-12) Santiago López. The sea needs more love 3rd Prize (under 7) Júlia López The oasis of feelings 3rd Prize (8-12) MORE THAN 170 DRAWINGS WERE ENTERED BY CHILDREN RELATED TO GRIFOLS EMPLOYEES FROM AROUND THE WORLD IN THE WORLD ENVIRONMENT DAY With the opportunity of this special day, Mr. Joan Pallisé, the Director of Catalonia s Meteorological service, was invited to give a conference on climate change. He described the causes for the accelerated climate change, the world s gas emissions responsible for the greenhouse effect and its repercussions. In his speech, Mr. Pallisé emphasized that energy saving and reducing emissions depends on not just emission policy but changing attitudes on a personal level.

38 rifols Environmenta 7. INVESTMENTS AND EXPENSES 2006 The following section describes the environmental investments and expenses by region and type. All Grifols companies are included in the Spanish figures while the US figures deal exclusively with the production facilities in Los Angeles. The largest expense continues to be waste management including waste transport and treatment. The second largest expense was in waste water treatment and related taxes. Environmental investments in Spain went mostly to the set up of automated cleaning systems in the new immunoglobulin manufacturing plant (IVIG DIF) which minimize water consumption and the contaminating load in waste water. Systems to separate effluents with a high organic load and their further conditioning so that they can be managed as a by-product were also installed. Another large portion of investments were destined to the biological waste water treatment unit at Instituto Grifols in Parets del Vallès. Investments for 2007 will include the system of collection and concentration of polyethylene glycol for its use as a by-product. The total investment and expenses in managing the different environmental aspects in the Spanish and US production plants amounted to 2.85 million. ENVIRONMENTAL EXPENSES SPAIN ( ) Waste management 592, , ,742 Waste water 376, , ,999 Emissions Certification and consulting 31,369 21,332 19,279 Other 92,186 26,205 28,444 TOTAL ( ) 1,092, , ,844 ENVIRONMENTAL EXPENSES USA ( ) Waste management 448, ,520 Waste water 69,648 86,651 Emissions 15,685 13,066 Certification and consulting 5,546 14,770 Other * 11,308-7,468 TOTAL ( ) 550, ,539 6 INVESTMENTS SPAIN ( ) Waste management 120,274 24,367 0 Waste water 390, ,234 1,410,365 Other 34,852 7,799 TOTAL ( ) 545, ,601 1,418,164 INVESTMENTS USA ( ) Waste water 969, ,841 0 TOTAL ( ) 969, ,841 0 (*)2006 includes RECLAIM (Regional Clean Air Incentives Market) for fewer NOx emissions.