To manage the impact from its twelve manufacturing facilities, Covidien designates significant capital expenditures to minimize energy consumption and associated greenhouse gas emissions. Specifically, the company is heavily invested in co-generation and believes it fits well with its industrial manufacturing environment. At its North Haven, Connecticut facility, Covidien installed a 5 megawatt co-generation power plant that provides electricity and steam for two manufacturing buildings. The company is also considering solar, wind, geothermal, and fuel cells on a case-by-case basis. In addition, Covidien has waste reduction measures in place aimed to expand the use of reclaimed materials and limit waste production. Regarding its supply chain, Covidien has a strong global sourcing organization that has established policies and programs focused on increasing the long-term sustainability performance of its global supply base. The company also developed a strategic sourcing process that is the basis for all supplier selection decisions. This 7-step process includes sustainability as one of the supplier selection criteria.
Covidien is in the beginning stages of incorporating lifecycle assessment into product design; Portfolio 21 has asked the company to implement the program broadly across all its products and report on its outcomes.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 5/31/12 and may not reflect current opinions or subsequent events.