ENVIRONMENTAL REPORT

Transcription

1 ENVIRONMENTAL REPORT 07

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3 Letter from the management Last year was particularly positive for Grifols in all respects. Sales totaled 703 million euros, up 9.6% on the previous year. One of the reasons behind this increase was the commencement of Flebogamma DIF sales in the US. The US Food and Drug Administration awarded the license at the end of 2006 and the product was successfully launched in the local market in Also last year, the European Medicines Agency granted the company a license to sell Flebogamma DIF throughout the European Union. also installed to manage the planned production of Flebogamma DIF and enable the company to continue managing polyethylene glycol waste as a by-product. A new 6.1 Mw cogeneration plant was installed to supply power to the plasma derivatives division at Parets del Vallés, reduce CO 2 emissions and harness the useful heat. Grifols was included in the IBEX-35 index, thanks to its excellent Spanish stock market performance in the year. To ensure the sustained growth of our activities, the Board of Directors approved a 400 million euro Investment Plan through to The Plan is aimed at increasing the company s supply of plasma by opening new centers and raising the capacity to fractionate plasma and purify the resulting proteins. Given the sustained growth in production it has been necessary to draw up an Environment Program setting out the initiatives needed to continue improving over the next three years. The priorities are set out in this report and by implementing them we hope to maintain and if possible improve our levels of eco-efficiency Finally, I would like to thank all our collaborators for their efforts and achievements as, between us, we all bring value to the company and society. Investment in Spain will focus on building a new biological adhesive (Fibrinsealand) manufacturing plant in Barcelona. Meanwhile, in the US a new analysis laboratory will be built in Austin (Texas) and a new Flebogamma DIF manufacturing plant, similar to the one in Parets del Vallés, will be built in Los Angeles. Production at the Bioscience, Hospital and Diagnostic divisions advanced by over 10% in the year, posing an environmental challenge. We aim to improve our eco-efficiency so that the environmental effects do not outweigh production. This has already been achieved, with the environmental indicators for 2007 confirming their correct management. Also in 2007, we added three new infrastructures which should help maintain this trend and have been envisaged with a view to integration. A biological water treatment plant was built at Parets de Vallés using a membrane bioreactor, the most cutting-edge technology available for treating wastewater. A new, more modern polyethylene glycol evaporator was J.I. Twose Vice Chairman Grifols

4 02. Environmental organization Grifols holding Environmental performance 23

5 04. Objectives Investments and expenses Environmental training, awareness-raising and communication 45

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7 01. Grifols holding

8 6 Environmental Report 07 Grifols holding 01. Grifols holding GRIFOLS is a group of companies in the pharmaceutical-hospital sector specializing in the research, development, production and sales of plasma-derivative products, intravenous therapies, clinical nutrition, in vitro diagnostic systems, engineering for the pharmaceutical sector and medical devices. We are present in over 90 countries. The holding comprises three divisions offering specialized products and services which are grouped together according to the specific needs they address: Hospital Division This division specializes in non-biological pharmaceutical products for the hospital pharmacy sector, such as parenteral and intravenous solutions, irrigation and washing solutions and clinical nutrition products. It is also responsible for distributing hospital logistics products. Diagnostic Division Bioscience Division This division specializes in the research, development, production and marketing of high-quality plasma-derivative products. The products, which are purified with therapeutic properties, are obtained from fractionated human plasma from donations. An exhaustive control system ensures that the various processes, ranging from the donation stage to the therapeutic use of the product, meet quality standards, thereby enabling us to guarantee our patients safety. This division specializes in the research, development, manufacture and marketing of in vitro diagnostic products for clinical test laboratories. Its diagnostic systems comprise auto-analyzers, reagents and software for use in hospital blood banks and blood transfusion centers. Grifols also offers the following services: administration, engineering, maintenance, security, environment, documentation, human resources, IT systems, etc. as well as logistics and commercial services. 01 Bioscience Division 02 Hospital Division Plasma, the main raw material, is supplied by a network of 76 plasmapheresis centers approved by the American Food and Drug Administration (FDA). Grifols has production plants in Barcelona and Los Angeles with combined fractionating capacity of 4 million liters a year, ranking second in the world. 03 Diagnostic Division Grifols is currently Europe s leading company in the plasma derivatives sector and the fourth largest manufacturer worldwide.

9 Grifols care for environment 7 COMMERCIAL AREA AND SERVICES Grifols, S.A. Grifols, Inc. Grifols Engineering, S.A. Movaco, S.A. Logister, S.A. Grifols Viajes, S.A. Grifols USA, Inc. Grifols International, S.A. INDUSTRIAL AREA LOCATION Bioscience Instituto Grifols Parets del Vallés (Spain) Grifols Biologicals, Inc. Los Angeles (USA) Biomat Biomat USA Parets del Vallés (Spain) USA Plasmacare USA Hospital Laboratorios Grifols Parets del Vallés Murcia (Spain) Diagnostic Diagnostic Grifols Parets del Vallés (Spain) Laboratorios Grifols Murcia (Spain) Grifols Deutschland Grifols Czech Republic Grifols France Parc Technologique Grifols Italia Grifols Polska Grifols Portugal Grifols Intl Slovakia Grifols UK Grifols Argentina Grifols Brasil Grifols Chile Grifols Mexico Grifols Asia-Pacific Grifols Intl Japan Grifols Malaysia Grifols Thailand

10 8 Environmental Report 07 Grifols holding International presence Spain 01 Grifols International, S.A. 02 Grifols Mexico 03 Grifols Portugal

11 Grifols care for environment Financial dimension Since May 2006, Grifols has been listed on the Spanish Stock Market and since January 2008 it has formed part of the IBEX 35 index which comprises the top 35 Spanish companies by adjusted market capitalization and trading volume. At December , Grifols market cap stood at 3,283 million euros. It is also a constituent of various international indices, such as the DJEuro Stoxx and the DJ Stoxx 600, as well as the corresponding sector indices. Performance by division Bioscience Revenue at the Bioscience Division in 2007 was 493 million euros, a 12% increase compared to 2006 and 70% of the group s total revenue. The group saw an increase in 2007 in volume of the main plasma derivatives it sells: intravenous immunoglobulin (IVIG), factor VIII and albumin. Foreign markets accounted for 72.6% of Grifols total revenue in International sales totaled million euros, up 5.8% on the previous year. By region, the US generated 33.5% of group revenue, while Europe contributed 53.9%. Figures Total sales ( million) EBITDA totaled million euros, up 37% on Net profi t advanced 93.4% in 2007 to 87.8 million euros. Hospital Sales at the Hospital Division in 2007 rose 18.7% to 74.7 million euros. This division currently contributes 10.7% of total revenue. This year saw a strong performance from Hospital Logistics projects with revenue nearly doubling. These logistics and control systems are being well received by both public and private hospitals in Spain, Portugal and Latin America. Diagnostic In 2007 this division posted revenue of 79.7 million euros. This marked 6.9% increase on 2006 and accounted for 11.3% of total group revenue. Particularly noteworthy was the sustained increase in reagent sales and the launch of the Q automatic coagulometer, which will enable Grifols to enter the coagulation market with its own product.

12 10 Environmental Report 07 Grifols holding Total sales ( million) , Q haemostasis analyzer Hospital 10.7 % Raw materials y otros 7.9% Latinoamérica 7.2 % Asia Pacific 4 % Row 1.4% Diagnostic 11.3 % Sales by Division Bioscience 70.1% Norte America 33.5 % Sales by geographic distribution Europa 53.9 %

13 Grifols care for environment 11 GRIFOLS Milestones in 2007 Grifols is chosen to join the IBEX 35 index. At the end of 2006 the FDA grants Grifols the license to sell the new generation intravenous immunoglobulin (IGIV) in the US. In 2007, the successful change over from sales of traditional IGIV to the new version IGIV (Flebogamma DIF ) in the US is completed. As part of its commitment to hemophiliacs, Grifols obtains FDA approval for a new plasma derivative, Alphanate (Factor VIII) to treat Von Willebrand disease. The European Medicines Agency (EMEA) grants Grifols a license to sell Flebogamma DIF (IVIG) throughout the EU. The Company s Executive Committee decides to bring the enlarged plasma fractionating plant in Los Angeles into operation, which will increase capacity 700,000 liters a year. An agreement is signed to manage four new plasma collection centers in the US, giving the company an additional 150,000 liters of plasma a year. The new Q. haemostasis analyzer is launched. In October, the Board of Directors approved a 400 million euro investment plan for These investments are aimed at increasing its capacity to purify various proteins (plasma derivatives) and plasma fractionating, as well as raising its plasma supply. Grifols received the Excellent distinction from the Profarma 2007 Plan from the Spanish Ministry of Industry for its R&D activities. 01

14 12 Environmental Report 07 Grifols holding Europe : 2,200 5,037 employees worldwide Rest of the World: Social dimension Grifols has been present in the health sector since 1940, manufacturing products and offering innovative services based on ethical values and responsibility. It has designed, manufactured and sold products aimed at improving health for over 60 years. Our priority has always been to offer our patients efficiency, quality and safety. Workforce 15 % USA: 2, % At December 31st of 2007 the staff of Grifols was 5,037 people, 16% more than a year earlier. All departments grew as a consequence of the group s excellent business performance, which favored job creation. Age distribution By region, 40.5% of Grifols collaborators worked in Spain, 54% in the US and 5.5% in other countries where we have a commercial presence through our own subsidiaries. The yearon-year comparison reflects an increase in staff in the US, due mainly to the acquisition of new plasmapheresis centers and expansion at some facilities. Of the total workforce, 46.7% are male and 53.2% female, in line with the trend seen in previous years. In Spain, 33.7% hold university degrees. 58 % 18 to 30 years 31 to 45 years More than 45 years Male 46,7% Sex distribution Female 53,37%

15 Grifols care for environment 13 Staff evolution of Grifols International Spain Staff training In 2007, all collaborators received some 30 hours of training each. There were also 1,370 procedures training initiatives. As a pharmaceutical company, Grifols carries out all of its manufacturing processes in accordance with Good Manufacturing Practice (GMP). Priority is given to the proper training of manufacturing personnel in response to any changes introduced into the production process. Grifols also has an induction training program to give new collaborators the information they need to successfully integrate into the company. Human resources provides an average of eight hours of induction training per new collaborator in Spain. In October 2007, Grifols signed an educational venture with the Catalan Regional Government to promote professional training and assist its less-qualified collaborators in updating their skills. This initiative gives collaborators the opportunity to obtain academic accreditation for their experience in the pharmaceutical manufacturing industry. It also allows collaborators to take part in an educational program, both at an intermediate and advanced level, in pharmaceutical product manufacturing. Grifols also makes available to collaborators a system of grants intended to enhance their professional development at external learning centers.

16 14 Environmental Report 07 Grifols holding Research and Development A team of qualified professionals works on projects to develop new products and services that provide effective treatments and more precise diagnostics that improve the quality of life of our patients. Staff at the R&D/Technical Area increased by 2.8% compared to 2006 to 215 workers. The Bioscience Division works on obtaining new plasma proteins, as well as carrying out research into other therapeutic applications for existing products and improving production processes. Grifols products, patents and registered trademarks as of December 31, 2007 are as follows: Registered trademarks Bioscience Hospital Diagnostic Total ,242 The Hospital Division s modern production plant at Parets del Vallés is an example of technological innovation. Here, research focuses on new fluid therapy products and clinical nutrition, as well as equipment and devices for preparing intravenous mixtures. Patents Bioscience Hospital Diagnostic Otras Total Victor Grifols i Lucas Fundation scholarships 02 Josep Egozcue conferences The Diagnostic Division is currently developing more than 12 projects immuno-hematology, immunology and haemostasis, from fully automated analyzers and specific reagents. In 2007, R&D expenditure rose 11.9%, a clear indication of Grifol s commitment to this area and in obtaining government drug approvals and patents on procedures. GRIFOLS brands Bioscience Hospital Diagnostic Holding Total ,313

17 Grifols care for environment 15 The Foundation The Víctor Grífols I Lucas Foundation was founded in March 1998 and is dedicated to promoting the study and development of bioethics in human health in general and in the pharmaceutical industry in particular. Its objectives are to: 1. Foster studies in specifi c 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 explaining the Foundation s work. 4. Remain open to all activities which help to deepen knowledge of life ethics. In 2007, the Foundation organized the following activities to carry out its objectives: Debates on bioethics issues. Conferences on The common and individual good Awarding research prizes and scholarships. Publications such as the Bioethics Notebook Collection. 01 The Foundation s website is: 02

18 16 Environmental Report 07 Grifols holding 1.3 Environmental dimension The company has pursued its economic and social progress while duly carrying out its environmental responsibilities at all times. In line with the increase in production, we have adapted our activities and facilities accordingly to comply with environmental guidelines. The environmental efforts carried out by each of our business areas, Bioscience, Hospital and Diagnostic, are detailed in this Report. We have also carried out environmental initiatives which have necessitated greater investment in financial and human resources and which have also benefited society. The company s environmental organization follows the model of the ISO standard. Our strategy has focused on: making optimal use of materials and electricity, improving the recycling and reuse of waste, minimizing the impact throughout the entire water cycle and reducing atmospheric emissions. The figures in this report refer to the holding s manufacturing processes in Spain and the U.S. over the past four years. 1 Figures from the Biomat USA and PlasmaCare donation centers, which recently joined the group, have not been included.

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21 02. Environmental organization

22 20 Environmental Report 07 Environmental organization 02. Environmental organization Grifols Environmental Management The group s environmental management is based on the following pillars. Environmental Policy, which is developed by the senior management and establishes common environmental principles on an annual basis that must be respected by all of the company s businesses. A homogeneous documentation system which includes a corporate manual and texts that are strictly environmental in nature and which establish both operational and management procedures. The different companies will incorporate guidelines concerning specific environmental aspects into their own documentation systems. Environmental conservation thereby becomes another requirement in the productive system. Environmental Committees in every company, with the participation of the Environmental department. Composed of the General Manager, the Production Manager, R&D Manager, Technical Manager, Marketing Manager and other functions that are considered appropriate given the structure of the company. These Committees meet periodically in order to assess the company s environmental management and evaluate and decide which high priority environmental measures should be made into goals. The integration of the environmental variable in the company s different departments. The Production, Medical, Occupational Health and Safety, Engineering, Maintenance, Industrial Security, IS, Training, Corporate Communication, and R&D departments all take into account possible environmental impacts when establishing their work processes. The high degree of awareness in this regard has led to many suggestions being implemented, resulting in savings and improved management. All the Grifols companies in Spain are currently ISO certified.

23 Grifols care for environment 21 Results Our environmental management allows us to: Obtain in-depth knowledge of the environmental aspects (consumption, waste, wastewater and emissions), both on the qualitative and the quantitative level of each production phase. With this knowledge we improve those aspects which have a negative environmental impact. It also allows us to establish procedures for minimizing this impact. Understand the legal and regulatory requirements to adapt the new facilities within the established timeframe and cultivate awareness of our legal obligations in this regard at all times. Know what contamination prevention measures are necessary, by anticipating possible environmental incidents or accidents, and establish procedures for handling such accidents or incidents to minimize their impact.. Count on our collaborators to increase our awareness of environmental issues, to identify opportunities for improvement or report situations which are not in compliance with sound environmental practices. Establish a self-regulating system of environmental performance, through the management of non-compliance reports, corrective and preventative actions, and internal audits, which include an annual review of all activities. Environmental management in Spain is verified externally each year by the certification entity TÜV International.

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25 03. Environmental performance

26 24 Environmental Report 07 Environmental performance 03. Environmental performance The environmental aspects related to the holding s activities can be classed as follows: 1. Consumption 2. Waste 3. Water cycle 4. Emissions The holding carries out is daily activities endeavoring to minimize the environmental impact in each of these areas. We should bear in mind that production rose significantly across the board. Key figures: Consumption Electricity consumption in 2007 was 68.5 million kwh, 1.3% higher than in 2006 Natural gas consumption was 69.7 million kwh, 14.4% higher. The plasma fractionated by the Bioscience Division rose 22%. Waste In 2007, some 11,700 Tn of waste was generated. 59% of waste was recovered (recycled or used as a byproduct). Water cycle In 2007, some 753,000 m 3 of water were consumed, 2.9% more than in Of this amount, over 527,000 m3 or 70% of the total water consumed were drained into the municipal sewer system. Emissions CO 2 emissions generated by natural gas and electricity consumption increased 6.6% to 42,000 Tn. CONSUMPTION Consumption: raw material, energy 01 Cogeneration plant view that has been upgraded with two new engines. WATER CYCLE USE Grifols WASTEWATER Waste Emissions

27 Grifols care for environment 25 New environmental facilities: Integration for greater eco-efficiency NATURAL GAS Production at the Bioscience division s facilities in Spain is set to increase significantly in the future and in fact this started in This is largely due to the new Flebogamma DIF manufacturing plant which became operational at the end of This new production process will improve the product s efficiency and safety as double viral inactivation and nanofiltration are applied. The manufacture of this product has posed a number of environmental challenges. COGENERATION 6,1 MW capacity Hot water circuit 80 ªC Electricity generation Steam generation for production Cold water generation Wastewater with a high organic content In order to ease the environmental impact, we have designed, built and brought on stream facilities and equipment which are complementary. The cogeneration plant has been upgraded, with two turbines being replaced by two new ones that will increase output four-fold, ensuring the company s own electricity supply and taking advantage of useful calorific energy. Part of this calorific energy, specifically that arising from the cooling of the motors, is fed through to evaporation equipment, which concentrates waste from polyethylene glycol (PEG) for conversion into a by-product. Water extracted from this evaporation process will be re-used in 2008 in the water circuit of the facilities refrigeration towers. Factory waste (PEG) EVAPORATOR destillation 40 ºC Concentrated waste (by-product) distilled water BIOLOGICAL TREATMENT ( BRM system with filtration membranes) Water recovered for refrigeration circuits 01 Finally, a biological wastewater treatment system has been built based on ultrafiltration membrane technology. This purpose of the plant is to treat wastewater from the production of plasma derivatives with higher organic content.

28 26 Environmental Report 07 Environmental performance 3.1 Consumption Raw materials: The main raw materials used by the production companies are detailed. Given the stringent safety measures and quality standards which our pharmaceutical products must comply with, we do not use recycled materials. A rectification tower at the Parets del Vallés plant recovers up to 99.9% of the treated ethanol. In 2007, thanks to the start-up of the Colpitt machine, the Hospital Division in Murcia began replacing PVC solution bags with polypropylene (PP) bags. Net consumption of the material is lower as PP sheets are thinner than PVC sheets and the heat technology used to seal the PP bags is less complicated than the high frequency technology used to seal its PVC predecessor. Over 30% of the bags produced are PP. Plasma Ethanol 1.3 Mn liters Polyethylene glycol (PEG) 667 Tn BIOSCIENCE Plasma derivatives Packaging 01 Vials of Bioscience Division 02 Colpitt machine for the PP bags production. Glucose 144 Tn. Sodium chloride 74 Tn Plastic materials (PVC) 450 Tn Flat tubing (PVC) 1.1 Mn. meters. HOSPITAL Enteral solutions Parenteral solutions Washing and irrigation solutions 03 Packaging Inyectables Electronic material for the production of diagnostic equipment Electronic material 118,000 un. PCA boards 7,000 un. In vitro diagnostic equipment Diagnostic cards 10.5 Mn. un. Reagent saline solutions 3,900 liters DIAGNOSTIC Diagnostic reagents Reactivos kg. Blood bags Packaging

29 Grifols care for environment 27 Electricity consumption HOSPITAL VS. Production Electricity In 2007, the holding company s electricity consumption was 68.5 million kwh, 1.32% higher than the previous year as production had risen over 10% across the board Electricity consumption BIOSCIENCE VS. Production Mn kwh % Mn kwh % Mn kwh Electricity consumption DIAGNOSTIC VS. Production Electricity consumption (million kwh) Productionn (% vs. 2004) % 03

30 28 Environmental Report 07 Environmental performance New 6.1 MW cogeneration facility. The kwh produced by cogeneration at the Parets del Vallés facilities had remained practically constant in recent years at around 30% of the total used and according to the optimization parameters, it was deemed that this facility had reached its maximum output level. The installed capacity of the new plant, which starts its operation in 2008, is four times and guarantees the supply of electricity to the Parets del Vallés plasma derivatives plant. The thermal energy generated is used to produce steam and hot and cold water, which are used at various production facilities. Therefore, given the annual increase in consumption and future production needs, in 2006 we explored the various options of ensuring a low-cost and environmentally-friendly energy supply. In 2007, the company built a new 6.1 Mw cogeneration plant with natural gas-fi red turbines built by Jenbacher (General Electric group). In August, the old 1.6 Mw turbines, which began operations in 1996, were replaced. Cogeneration combines electricity output with useful heat output. This production system is the most efficient way of converting the energy contained in fossil fuels, using around 70-80% of the energy contained therein. The turbines installed offer 44.1% electricity efficiency with a yield in useful heat of 31.8%, giving an overall yield of 75.9%. Another advantage of cogeneration is that it saves an average of 6% of electricity by eliminating losses incurred during transmission and distribution. This makes the technology more efficient as fuel imports are reduced. This new plant will save over 5,000 Tn of CO2 emissions a year compared to Spain s average electricity output and the savings in natural gas as the plant uses the calorific energy it produces. 01 Cogeneration engines

31 Grifols care for environment 29 Natural Gas In 2007, some 11.8 million kwh of natural gas were used to power the cogeneration turbines. Natural gas is also used in the steam boilers and the hot water system used in the production and auxiliary processes at the facility. In the year, around 69.5 million kwh of natural gas was consumed for general usage (excluding cogeneration), 14.4% higher than the previous year. This increase largely occurred at the Bioscience division at the Parets del Vallés facilities. The old cogeneration plant was decommissioned in August 2007 in order for work to start on the new plant, which is slated to come on stream in 2008 on the same site. As a result, after August, more natural gas was bought to generate the steam and hot water that was no longer produced by cogeneration. Mn kwh Gas consumption HOSPITAL VS. Production % Natural gas consumption has increased at all divisions, although in many cases this has been below the increase in production Gas consumption DIAGNOSTIC VS. Production % Gas consumption BIOSCIENCE VS. Production % ,0 0,9 0,8 0,7 0, Mn kwh Mn kwh 0,5 0,4 0,3 0,2 0,1 0, Gas consumption (million kwh) Production (% vs. 2004)

32 30 Environmental Report 07 Environmental performance 3.2 Waste Waste treatment 8000 In 2007, the holding company s activities generated 11,700 tons of waste, 33% more than the year before. The cost of waste management amounted to 1,191,000. Waste treatment Fifty-nine percent of waste was recycled or used as by-products, which is prioritized over disposal. Waste used as byproducts now represents more than 27% of the total. Waste by division The Bioscience Division generated 92% of the holding s waste. Polyethylene glycol, ethanol from the Los Angeles plant and sanitary waste, incinerable and general waste accounted for the largest amounts. Tn By-product and recycled waste Eliminated waste In 2007, we would highlight the increase in polyethylene glycol waste. This glycol is used in the separation and collection of intravenous immunoglobulin to obtain Flebogamma DIF. The start-up of the new Flebogamma plant in the last quarter of 2006 resulted in a significant production increase in The new method has a higher yield, but also uses more polyethylene glycol per unit produced. This has generated over 3,000 tons of polyethylene glycol waste, of which 78% has been used as a by-product. Waste Production (% vs. 2004) Tn Waste generation BIOSCIENCE VS. Production %

33 Grifols care for environment 31 In the rest of the divisions the increase in waste generation has been proportional to production increases, and even less in the Hospital division. Most of the waste in the Hospital and Diagnostic division are general waste, packaging (cardboard and plastic), normal saline solution and sanitary waste. A significant part of this waste is packaging material. There are two ways of minimizing this. The first is to work together with suppliers to increase returnable packaging which does not generate waste and the second is to use packaging material that can be separated by type so that it can be recycled by authorized agents. Waste generation HOSPITAL VS. Production Waste generation DIAGNOSTIC VS. Production % % Tn Tn Waste Production (% vs. 2004)

34 32 Environmental Report 07 Environmental performance Polyethylene glycol management The manufacturing process of the new Flebogamma DIF uses an aqueous solution of polyethylene glycol (PEG). When the solution has been used it turns into a liquid waste that must be disposed of. Though the concentration process, a solution is obtained that has been used for the last four years as a by-product in the cement industry as a substitute for a commercial grinding additive. Managing this solution as a by-product has the environmental benefit in that it eliminates the need to use other raw materials and thereby reduces CO 2 emissions into the atmosphere (1,200 Tn in 2007). This improves the treatment hierarchy for waste, prioritizing recovery over elimination. Given the increased production of this new product, different concentration alternatives are being studied. The company recently installed a new evaporator, which has a concentration capacity of 40 Tn/day and uses a vacuum effect to evaporate the water at low temperature (42ºC). The PEG solution from the production process is held in tanks that feed into the evaporator. The liquid is recirculated and goes through a heat exchanger which provides the necessary calories to produce the evaporation. This caloric energy is derived from the refrigeration circuit of the new cogeneration turbines, thereby taking advantage of part of the residual heat from the cogeneration and eliminating the need to use steam originating from the natural gas boilers. At the moment this wastewater is sent to the treatment plant, but after noting a significant improvement in its quality with this new equipment, in 2008 a project is scheduled to reuse this water in the refrigeration tower circuits in the Parets del Vallés installation

35 Grifols care for environment 33 Cost of waste management The annual cost of waste management was 1,191,000 in 2007, 22% more than the previous year. 57% of this expense is attributable to manufacturing in Spain. The rest of the costs are assigned to the production in the United States (Bioscience division). 79% of the production for the Bioscience Division was produced in Spain. Note: In 2004, the costs of the US plants were not accounted for Cost of waste management Grifols participation in Integrated Waste Management Systems 01 SIGRE SIGRE is the Spanish acronym for the Integrated System for the Management and Collection of Packaging and Medications in the pharmaceutical sector. Grifols participates in SIGRE through Instituto Grifols, Laboratorios Grifols and Movaco. Through SIGRE, member laboratories guarantee the correct collection and management of left-over medication waste, namely the medications and their packaging generated in households. These companies are participants in the pharmaceutical sector s Corporate Plan for Packaging Prevention. The goals of this three-year plan are to increase the recycling of medication packaging, to reduce the weight of same, to improve recyclability levels and to minimize the overall environmental impact of packaging. 02 ECOASIMELEC ECOASIMELEC is an integrated waste management system for electric and electronic equipment created in response to new laws in European Union which requires electric and electronic equipment manufacturers to adopt the necessary measures for assuring that waste from equipment they sell are collected in a selective manner and handled in an environmentally sound way. Movaco, the Grifols company responsible for selling medical equipment in Spain, is registered as an Electric and Electronic Equipment distributor, and will adhere to this platform. This platform guarantees that equipment returned by customers at the end of its useful life is sent to authorized agents that break it down into its components for recycling and ensure the correct management of the waste.

36 34 Environmental Report 07 Environmental performance 3.3 Water cycle USE CONSUMPTION Groundwater Company Product Cleaning Refrigeration Sanitation watering Purifi cation Homogeneization Neutralization WASTE WATER Municipal sewage Municipal waste water treatment plant Since water is a scarce resource, one of the ongoing objectives of our engineering and production divisions is to implement the necessary conservation measures. This means reusing water directly or through treatment, and disposing of wastewater that is of the highest quality within the applicable legal parameters. Water consumption and usage In the Bioscience Division, although production rose by 22% in the year, water consumption increased only 8%. The start of Flebogamma DIF in Parets del Vallés is one of the reasons for this. This plant has four high efficiency CIPs (Clean In Place), designed by Grifols Engineering and installed on a trial basis to clean the reactors, which consume 50% less water and sodium hydroxide. The industrial facilities have the highest water consumption levels due to their pharmaceutical production and auxiliary processes. In 2007, some 753,000 m3 of water were consumed, 2.9% more than in The water originates from both the supply network and from the company s own wells. Well water represents 39% of total water needs. In the Hospital Division, there was a 9.5% drop in water consumption. Starting in 2007 effluents from one of the distillers is recovered and sent to the feeder tank for the boilers. Water consumption was also reduced for producing 3 liter serum bags in the CIPs. The Diagnostic Division cut its water consumption by 18.2%, despite the 13% increase in production in the year.

37 Grifols care for environment 35 Water consumption BIOSCIENCE VS. Production m 3 % Water consumption HOSPITAL VS. Production Wastewater disposal The wastewater from all Grifols facilities goes to the pubic sewage system. In the production plants, the wastewater goes through a homogenization and neutralization system before leaving the facilities. In the Bioscience Division in Parets del Valles, a biological purification plant has entered into operation. Wastewater then undergoes further treatment at the municipal facilities. m 3 % In 2007, the total organic content as measured by Chemical Oxygen Demand (COD) of the wastewater that went into the public sewage network stood at 753 tons. Due to the measures implemented by the company, this amount has decreased in Spain, despite the increase in production. 95% of this COD corresponds to the Bioscience Division. The plasma fractionated in the US increased over 50%, causing the global chemical oxygen demand to rise by 19% Water consumption DIAGNOSTIC VS. Production Tons of COD (Chemical Oxygen Demand) m % Tn COD Water consumption (m 3 ) Production (% vs. 2004)

38 36 Environmental Report 07 Environmental performance New wastewater purification plant Grifols has been working for years to reduce the presence of organic material in wastewater. In order to handle the increase in production from the Bioscience division s facilities in Parets del Vallés (Spain), a biological purification plant was built which entered into operation at the end of Due to the limited space in the plant, a modern membrane bioreactor system was installed for treating the main waste streams with high organic content. MEMBRANE BIOREACTOR CHARACTERISTICS (MBR) Reactor volume 170 m 3 Activated sludge concentration Sludge separation 12 g/l Submerged ultrafi ltration membranes Depuration yield > 95% Solids in treated wastewater < 10 mg/l This technology is based on the biological purification of wastewater with a special feature: an ultrafiltration membrane system inside the biological reactor. Water management costs 01 Aerial photograph of Parets wastewater treatment plant The wastewater to be treated is homogenized in a tank which feeds the reactor containing the activated sludge responsible for the purification process. This reactor also contains the ultrafiltration membranes unit. This unit separates, through filtration, the treated water from the reactor s activated sludge, allowing the sludge to be four times more concentrated than in a conventional treatment system. This greater concentration in the sludge allows the overall volume of the facility to be reduced. Periodically, the sludge undergoes a purge to keep the concentration levels constant within the reactor. Seeking to further improve the system, in 2008 the company is studying directing biodegradable manufacturing waste streams with high organic content into the wastewater treatment system. In 2007, the cost of water management stood at 503,595. This cost does not include the supply, but rather the external fees for wastewater treatment, analysis, and other expenses derived from treating this water.

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40 38 Environmental Report 07 Environmental performance 3.4 Atmospheric emissions This includes both channelled and diffused emissions from the facilities. Direct emissions are generated by Grifols through the natural gas combustion boilers which produce steam and hot water for the production facilities. Atmospheric emissions are also produced by cogeneration turbines in the Parets del Vallés facility. After measuring the CO and NOx produced at these points, it is evident that the emissions are far below the legal limits mandated by our preventative maintenance system. The 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. This system establishes emission levels which, if reduced, allows the company to sell its remaining rights on the market. In 2007 the company sold NOx emission credits on the regional market for 19, kg of gas were replaced in these refrigeration units in Spain in 2007, 207 kg less than in There were no leaks of gases that affect the ozone layer. Greenhouse Gases Emissions Greenhouse Gases (GHG) generated by Grifols industrial activity are caused by the use of natural gas (in boilers and cogeneration turbines) and indirectly by the consumption of electricity. In 2007, CO2 emissions amounted to 42,891 tons, 6.6% higher than in 2006, but far less than the production increase in all the business divisions. 01 Plasma transportation to the production centers. Another atmospheric emission is in the form of water vapor from the refrigeration towers. These towers undergo periodic preventative maintenance, cleaning and disinfection to ensure that they are safe and operating correctly. Conserving the plasmas, as well as the intermediate and final products, requires a large number of refrigeration units. These units require refrigeration gases, and despite preventative maintenance, there are still some small non-channelled leaks. The majority of the gases are ecological, without chlorinated molecules that destroy the ozone layer. Most of the refrigeration gas is used in the plasma conservation refrigeration units.

41 Grifols care for environment 39 Transport Greenhouse Gases (GHG) Tn CO Bought electricity 24,549 24,029 25,309 27,931 Natural gas cogeneration 3,899 3,739 3,726 2,164 Spain Natural gas other uses 10,566 10,915 11,188 12,796 Total CO 2 emitted (Tn) 39,014 38,683 40,223 42,891 Transport is another source of GHG generated by Grifols activities. This includes: the transport of raw materials to and between production centers, the distribution of products, and transport requirements for the company s sales activity. Grifols manages the final distribution of products through Grifols International, which requests the following environmental information from contracted companies: environmental certification, fuel type, noise levels and the type of gas used in the refrigerated trucks. 01 When contracting new commercial vehicles for the sales network the company takes into account information from the new car fuel consumption database of the IDAE (Institute for Energy Diversification and Saving) in Spain. CO2 emissions generated by vehicles used by sales teams in Spain in 2007 are estimated at 540 tons. The EU s environmental criteria for emissions from light-duty vehicles (Euro 5 and Euro 6 rules) are also taken into account. New vehicles will comply with Euro 5. Last year, the company selected a vehicle which complied with these regulations for inter-center transport.

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43 04. Objectives

44 42 Environmental Report 07 Objectives Objectives The Environmental Program includes areas for improvement. The current program, valid for the period, establishes: The strategic lines that will determine the environmental measures to be taken over the next three years. The needs and opportunities for improvement appropriate to Grifols growth profile. The specific projects in each strategic line, with a timeline and the necessary investment. The Program is based on the following strategic lines: Optimization of consumption The reduction of consumption levels often goes in tandem with reduced waste generation. In this section, waste reduction and the optimization of containers and packaging are also considered. Reduced consumption Implement the albumin purification method used in Spain in the Bioscience facilities in Los Angeles, thereby eliminating the consumption of acetone. This measure will eliminate the annual consumption of 700 tons of acetone and the related disposal cost of the waste after it has been used. Waste management The main initiatives are focused on recovering waste, reducing its generation and improving storage facilities. Improvements in recovery Improved polyethylene glycol management, assuring its correct concentration, increasing its capacity to be stored and its value as a by-product in Spain. Seeking alternatives for managing polyethylene glycol in the Bioscience Division in Los Angeles, prioritizing recovery over disposal. Improvements in storage Adapting storage capacity for hazardous and general waste to handle the scheduled increases in production in the Parets del Vallés and Los Angeles production facilities. Reduction in waste generation The Diagnostic Division will reduce the packaging material in its new diagnostic cards. It will also work to increase the amount of returnable packaging materials used by suppliers. Improved storage Install tanks for sodium hydroxide of 10 and 6 m 3 instead of using 1x1 m 3 containers in Parets del Vallés. Storage and consumption in 1x1 m 3 containers is minimized.

45 Grifols care for environment 43 Water cycle The initiatives in the water cycle are aimed at reducing consumption levels, reusing water where possible and improving the quality of the wastewater. Reduction in consumption Implementation of more efficient automated cleaning methods (CIPs) which consume less water and alkalis in the Parets del Vallés and Los Angeles facilities. Water reusage Recovering water from different installations (polyethylene glycol evaporator, autoclaves) for its reuse in others (e.g. refrigeration circuits). Improvement in wastewater quality - Improvement in the treatment of wastewater in the Parets del Vallés facilities, redirecting certain waste with higher organic content towards the biological purification system. - Improvements in the separation of effluents in the Los Angeles production facilities. - Study of the installation of an accumulation and homogenization system in the wastewater of the Murcia facility. - The installation of two high efficiency boilers in the Murcia Hospital Division will reduce natural gas consumption and atmospheric emissions, while improving the facility s profitability. - Installation of a new solar power plant, in Parets del Vallès, to enhance the company s renewable energy exposure and reduce CO2 emissions. Improvements in transport - Increase the number of collective transport users in Parets del Vallés. - Reduce the atmospheric emissions generated by commercial vehicles, by contracting low-consumption vehicles with low CO 2 emissions. Environmental management In the coming years, Environmental Management Systems will be harmonized in the Spain and US production facilities, following the ISO standard. This standard is already implemented in the Spanish companies, where facilities are all certified. Energy efficiency and renewable energies Grifols has always sought to minimize energy consumption and maximize energy efficiency in its facilities. In the coming years the new facilities will allow the company to optimize energy consumption and the related emissions. New facilities - The cogeneration facility in Parets del Vallés will guarantee the electricity supply, improve the efficiency of the facility and reduce CO2 emissions.

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47 05. Environmental training, awareness-raising and communication

48 46 Environmental Report 07 Environmental training, awareness-raising and communication 05. Environmental training, awareness-raising and communication 5.1 Training and awareness-raising The mandatory environmental training courses for all collaborators continued in In the year, 153 staff in Spain, mostly new collaborators, took part in Grifols awarenessraising workshops. These comprise two-hour sessions where the company s Environmental Policy is explained, as well as the environmental impact of its activities, how these are managed and what the contribution of each collaborator is Hours Awareness-raising Training Collaborators Awareness-raising Training An online Induction Plan was also rolled out by the Human Resources Department providing information regarding the company s environmental management system. In addition to the above, ongoing procedures and instruction training is offered to collaborators who need to keep abreast of the content. Environmental training is carried out when there is a need for specific knowledge for some positions. In 2007, courses were provided on eco-design, electrical metering, functioning of the evaporator, electrical and electronic equipment waste management and the EU s REACH regulatory framework for chemicals (registration, evaluation and authorisation of chemicals).

49 Grifols care for environment Communication 5.3 Collaborations Environmental communication between collaborators and the environment department is still a very effi cient manner of disseminating information, resolving doubts and receiving suggestions regarding opportunities for improvement. A total of 133 environmental communications were sent and received in Comunications Also, over the past two years, the company has collaborated with the Catalonia Regional Government in drawing up a Corporate Social Responsibility Guide. This guide, which has already been released, lays down the methodology for defining, implementing and reporting the company s corporate responsibility strategy. It also details practical case studies from companies which have already carried out initiatives in some areas of social responsibility. Grifols takes part in environment-related activities. In 2007, Grifols also contributed its prevention measures to the newly-published A Guide to Soil Contamination Prevention for the Pharmaceutical Sector. Articles were also published in the in-house magazine Cosmos, which is distributed to all members of staff. Articles last year included one on the children s drawing competition held to celebrate World Environment Day and also the start-up of the new waste water purification plant at the Parets del Vallés facilities.

50 48 Environmental Report 07 Environmental training, awareness-raising and communication 5.4 World Environment Day 01 Mireia Gimbert 6 years old Family of penguins 1st Prize (under 7) 02 Kristine Huber 11 years old Heat threatens the ice 1st Prize (8-12) 03 Joan Manuel Arriola 7 years old Beautiful paradise 2nd Prize (under 7) 04 Lorenzo Cacciatore 9 years old Pole and tropical islands 2nd Prize (8-12) 05 Madelyn Chiu 4 years old Happy feet penguins 3rd Prize (under 7) As in previous years, various activities were organized to celebrate World Environment Day on June 5. The company s traditional annual bicycle ride went along the Barcelona coast to Premià de Mar with over 50 collaborators participating, including entire families. This year s ride moved from inland to the coast. For the second consecutive year and, following its success in 2006, Grifols organized a drawing competition for children of its collaborators. Tying in with the UN World Environment Day, this year s theme was The ice caps, the poles and the islands. There were two categories: under 7 and 8 to 12. A local artist chose the three winners in each category. Over 160 drawings were sent in by 130 participants from Grifols various companies worldwide and displayed at the Parets del Vallés facilities, on the intranet and also at com Noemí Álvarez 12 years old The earth is broken 3rd Prize (8-12) 02

51 Grifols care for environment

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53 06. Investments and expenses

54 52 Environmental Report 07 Investments and expenses 06. Investments and expenses Total investment and expenses of an environmental nature in 2007 amounted to 2.9 million. This figure includes all of Grifols companies in Spain and the Los Angeles production facilities in the United States. Investments Investments include the construction of the installations in Parets del Vallés associated with the concentration of polyethylene glycol (evaporator, auxiliary services, etc.) as well as those associated with the biological wastewater treatment unit (civil works and membrane bioreactor) and the wastewater storage and pumping systems. It also includes water conservation improvements made in the cleaning process for the reactors used to manufacture plasma derivatives and initiatives for recovering wastewater (effluent from the distillers). In addition it includes investments for improving wastewater control and improving the energy efficiency of the refrigeration units in the Los Angeles facility. Expenses The largest expense was for waste management. This included all expenses related to waste elimination and recycling, i.e. its transport and treatment by the manager. Expenses associated with wastewater refer to treatment costs before it finally drains into the municipal sewer system, as well as the taxes related to the disposal. It also includes external analysis, cleaning costs, as well as small works to improve the internal drainage networks. The rest is divided between external consulting and legal fees, environmental maintenance of facilities, etc. Fees are included in the atmospheric emission section. Proceeds from the sale of NOx emission rights from the Los Angeles facilities in recent years offsets part of the environmental costs. Environmental expenses ( ) Investments ( ) Waste management 993, ,262 1,191,239 Waste management 24, ,187 Wastewater 689,075 1,410, ,176 Atmospheric emissions ,973 Other 7,799 0 TOTAL 713,442 1,418,164 1,224,336 Wastewater 297, , ,595 Atmospheric emissions 15,685 13,446 13,802 Consulting and certification 26,878 34,049 38,789 Other(*) 37,513 20,976 18,378 TOTAL 1,370,924 1,433,383 1,765,803 (*) The RECLAIM (Regional Clean Air Incentives Market) incentive is included in