Baxter Cardiovascular Group: The Economic and Ecological Implications of a Solid Waste Reduction Program

Note: This case study has been provided to the Board courtesy of Michael Megremis. Mr. Megremis investigated Baxter Healthcare Corporation's Cardiovascular Group (CVG) as partial fulfillment of the requirements of his master's degree in environmental studies. Inquiries concerning the content of this case study should be directed to Mr. Megremis.

Summary

Baxter Healthcare Corporation Cardiovascular Group (CVG), has an extensive integrated pollution prevention program. This study specifically profiles their successful solid waste reduction program (SWRP) which clearly demonstrates how this type of program is not only environmentally beneficial but economically essential for business to improve its bottom line. Baxter CVG is a six-year WRAP winner.

The study includes a cost benefit analysis which clearly shows how the implementation of this company’s SWRP saves them over $1.25 million per year.

Baxter’s waste characterization charts and data from 1989-1997 offer proof that implementing a SWRP really works. The study shows how source reduction activity, the first priority in the integrated waste management hierarchy, starts out as an insignificant portion of the waste characterization profile--6 percent in 1989--and increases to 35 percent by 1997, becoming the biggest cost savings.

The methodology used in the study is explained so that companies interested in researching and implementing a program would not need to recreate the wheel. Many facets of this company’s SWRP can be formatted to fit any company’s needs.

Finally, the study examines the ecological impacts of a SWRP by looking at two product life cycle analyses, paper and plastic.

The conclusion of the report brings us to broader questions such as "What if US disposal and diversion rates were able to achieve levels similar to CVG’s?" and "What about the money U.S. companies could be save in tipping fees?" This report demonstrates that an environmental policy is good for the economy.

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Last updated: November 29, 2007