a “green” success story – a “hyper- sustainable ...• regenerative forklifts: the warehouse...

1

A “Green” Success Story – A “Hyper-Sustainable” Distribution Center

Yields Big Benefits

May 2012

2

� BD the Company

� US Distribution Network

� BD Corporate Sustainability Goals

� Sustainability at the Four Oaks DC

� Business Case for Solar Panels

3

� BD the Company





4

Who is BD?

• FORTUNE 500 company (#316)

• Sales of $7.8 billion

• Locations in more than 50 countries

• Approximately 29,000 associates worldwide

• Serves healthcare institutions, life science researchers, clinical laboratories and the general public

• Sells a broad range of medical supplies and services, devices, laboratory equipment and diagnostic products

5

57%

43%

Revenues by Geography

United States$3.36 billion

International$4.47 billion

FY 2011

Emerging Markets$1.72 billion

6

BD Today - 2011 Revenues by Segment

$7.8 billion FY2011NA 46% Europe 32% LA, Asia Pac 17% Other 5%

$4.007 Revenue(billions of dollars)

$2.082

$1.059

$.866

$2.481

$1.278

$1.203

$1.024

$.317

$1.341

7

51%32%

17%

Revenues by Segment

BD Biosciences$1.3 billion

BD Medical$4.0 billion

BD Diagnostics$2.5 billion

$7.8 billionFY2011

8

BD Medical – Product Highlights

BD SafetyGlide™Injection Needle BD Nexiva™ Closed

IVCatheter System

BD PosiFlush™Heparin-filledFlush Syringe

BD AutoShield™ Duo Pen Needle BD Soluvia™

PrefillableMicroinjection System

BD™ InsulinSyringes

BD Ultra-Fine™Nano Pen Needle

Injection and Infusion Devices - Disposable

9

BD Diagnostics – Product Highlights

BD Viper™ System with XTR Technology

BD BACTEC™ FX

BD MAX™ System

BD Vacutainer®Push Button

Blood Collection Set

BD SurePath™PAP Collection

SystemBD FocalPoint ™ GS

Imaging System

BD Eclipse®Blood Collection

Needle

Collection and Transfer Devices &

Equipment and Reagents for Infectious Disease Detection

10

BD Biosciences – Product Highlights

BD FACSVerse™ analyzer

BD™ LSR II

BD FACSCanto II™Flow Cytometer

BD Accuri® C6 Flow Cytometer

BD Advanced Bioprocessing Cell Culture Media

SupplementsBD FACSCount™

System

BD LSR Fortessa™Cell Analyzer

BD Multi-Flask Cell Culture Vessel

Diagnostic and Research Equipment for

Life Sciences & Clinical Researchers, Lab Professionals and Clinicians

11

Awards and Recognitions

12

� BD the Company





13

13

US Distribution Network

Redlands, CADomestic 18%

Plainfield, INDomestic 40%

ECDCDomestic 42%

14

Network Key Facts

• Network delivers to over 15,000 ship to locations domestically and internationally.

• 2000 “ship to’s” (13%) represent ~80% of case & dollar volume.

• Inventory over 2,600 active SKU’s

• Annually over 346K deliveries totaling 271K shipments.

• Current Shipment Mix

TL 62% LTL 32% Parcel 6%

15

Four Oaks, North Carolina

16

ECDC – Interesting Statistics

720k SQ FT =15 Football Fields

1,195 FT

Empire State Building = 1,250 FT

Eiffel Tower = 986 FT

Statue of Liberty = 305 FT

17

Four Oaks DC Facility Overview

• BD completed construction in August 2011

• Started Shipments in November 2011

• The 720,000 SF facility replaced an aging facility located in Swedesboro, NJ

• Services the US and BD affiliates in Europe, Latin America, and Puerto Rico

• Gold LEED certified

18

Four Oaks Facts & Figures

• Efficient Conventional Design, 100% Temperature Controlled

• 38 foot clear building with 6 level high racking

• 90k pallet locations

• TSA Cage for Certified Cargo Screening procedures

• Efficient 4 deep pallet flow for case picking, double deep reserve for storage density

• Voice Directed Case Picking & Labor Management System to track productivity

• (2) High Performance Beumer Hood Stretch Wrappers

• Double-sided multi-tier battery changing system

19

Major Project Milestones

NovNov20112011

First Inbound

First Outbound

OctOct20112011

Oct2010

Jun2011

Aug2011

Groundbreaking

Temporary Certificate of Occupancy

Certificate of Occupancy

Q2FY10

Network Study Refresh May2010

Jun2010

Final Design

Aug2010

CB2 Approved

Sep2010Four Oaks, NC Site Selected

Project Team Planning Sessions

Q4FY08

Q2FY09

Initial Design

Network Study

20

Grand Opening

21

� BD the Company





22

BD’s Sustainability Approach

At BD, Sustainability is a culture in which each decision we make will be guided by a desire, on balance, to improve the environmental,health, and social well-being of our associates and the people we serve.

EnvironmentalStewardship

SocialResponsibility

FinancialPerformance

Sustainability at BD

23

Productstewardship

Sustainableoperations

End�of�use�management

Sustainable�products�&�

packaging

Reducing�environmental�impacts�from�manufacturing

Environmental Stewardship

Addressing�climate�change�

impacts�(Carbon�Footprint)

Supply�Chain�Stewardship

Materials�of�concern

24

RESOURCES

ENERGYPRODUCTION

2015 Environmental Corporate Targets

2015ENVIRONMENTAL

TARGETS

Reduce�energy�consumption fromoperations�by�30%�by�2015,from�2008�levels

Increase�renewable�energy�use inBD’s�portfolio�to�25%�by�2015,from�2008�levels

Reduce�the�use�of�water by�15%�by�2015,�from�2008�levels

Reduce�hazardous�wastegeneration�by�10%�by�2015,from�2008�levels

Reduce�non�hazardous�wastegeneration�by�15%�by�2015,from�2008�levels

To�meet�these�targets,�BD�will:

• Focus�on�natural�resource�conservation�

• Improve�lighting�and�equipment�efficiency

• Use�alternative�energy�generation�sources�

• Provide�policy�and�performance�guidelines

• Conduct�energy�audits

25

• A code of conduct called "BD Expectations for Suppliers" has been published.– Available on the BDX website

– Will be referenced in all contract documents

(RFP, PO, Agreements)

– Initial focus will be on the top suppliers and

eventually rolled out to the entire supply base

• BD’s Environmentally Preferable Procurement (EPP) Guideline– Provides guidance and policies about our sustainable procurement

requirements BD Purchasers

Sustainable Supply Chain

26

Sustainable Supply Chain

EPA Smart Way Transport Partnership

• BD is participating as a “Shipper”

• Many of our carriers are already in the program

• Uses a continuous improvement approach

Supply Chain Strategy

• Formed a steering committee focusing on transportation, network and warehouse operations

27

Leadership in Energy and Environmental Design

• LEED Certified Green Buildings– All new construction and major renovations over $1

million will be built to LEED criteria – 8 have achieved LEED, 5 are status pending and 4

are planned for submission this year

28

Energy Management Database

• Web-based Energy Dashboard run by Summit Electric

• Monitors Gas, Electric and Water for all facilities > 50k sqft

• Data from:– Invoices– Utility data feed– Accounts payable

• Continuous tracking of consumption, spend, and savings

– Calculates Green House Gas emissions

– Utility bill audit services

29

Green House Gas Reporting

• Currently reporting Scope 1 and 2 (Fuel and Electric) through the

CARBON DISCLOSURE PROJECT MEMBERSHIP

•Performed a Carbon Emissions Heat Mapping exercise for all 3 business segments using Climate Earth’s environmental accounting approach – Best

practice benchmarking service

Scope 3 which includes our suppliers and other carbon footprint is not far off

30

BD Ranks 11th on EPA’s Fortune 500 List of Green Power Purchasers

60% of all power is from renewable sources (Some purchase of renewable credits)

• BD has been awarded membership to the 2011 Green Power Leadership Club.

• BD’s green power purchase of >200 million kWh is equivalent to avoiding the CO2 emissions of – Nearly 28,000 passenger vehicles per

year– Equivalent electricity to power 17,000

average American homes annually.

• BD is #24 on the EPA Green Power Partnership’s National Top 50 list.

Renewable Energy

31

Alternative Energy

• Solar Installation1 Mega Watt onFour Oaks DC

• Fuel cellsEight 100KW units in San Jose

• Combined Heat & Power cogeneration in plant in Spain - late 2012

32

Additional Continuous Improvement Programs

• Recycling Blitz

• Compressed Air Blitz

• Environmental Value Stream Mapping

• Green Kaizen action sheets

• Best Practice Sharing (Eco-Advisors,

Sustainable Operations Forum, FM Net)

33

Non Government Organization Partners

A member-based nonprofit organization providing tools, resources, and networking opportunities to healthcare organizationscreating sustainable environments.

Business for Social Responsibility works with its global network of more than 250 member companies to develop sustainable business strategies and solutions through consulting, research,benchmarking, and cross-sectorcollaboration.

34

Reporting on Sustainability at BD

• Cover’s BD’s approach and performance in three key areas: – Economic– Environmental– Social

• BD’s 2010 Sustainability Report resides on BD.com– http://www.bd.com/sustainability

35

� BD the Company





37

Sustainability at the East Coast Distribution Center

• The Four Oaks DC was designed and built to meet BD Sustainable Goals for New Construction

• Gold LEED (Leadership in Energy and Environmental Design) Certification

� Energy efficient building design� Light reflective “cool” roof� Storm water retention� Use of low emitting materials e.g. carpet, paints, coatings� Water efficient landscaping, building utilization� Ciralight Sun Trackers GPS tracking, light pollution

reduction

• Four Oaks goal to be 100% Landfill free facility • 1.1 Megawatt Solar Panel Solution

� Partnered with Southern Energy Management – Full Turn key solution

� FM Global approved design requirements � Installation commenced October 1st and completion

December 2011� Offset 20% of utility costs

38

Sustainability at the East Coast DC

• This is the first Leadership in Energy and Environmental Design (LEED) Gold-certified Distribution Center for BD and the eighth LEED certified BD facility.

• BD has implemented a number of features that lower energy costs and increase operating efficiencies while significantly improving the work environment for all associates.

– Skylights: The offices and the break room are equipped with skylights that use solar-powered GPS technology and mirrors to track the sunlight and channel it into the building, largely eliminating the need for artificial lighting in these areas. In addition, all external offices are fitted with glass partitions to maximize the use of natural light across the office.

39


• Cool Roof: The building has a light-reflecting ‘cool roof’, which keeps internal temperatures down and lowers utility costs.

• Intelligent Lighting: Lights in all office areas and in the warehouse are equipped with motion sensors so they turn off when areas are not in use. Exterior lights are connected to photo sensors that constantly adjust to seasonal light changes.

• Regenerative forklifts: The warehouse uses a state-of-the-art forklift fleet that harnesses residual energy from the lowering motion, and returns it to the battery. The regeneration reduces the need for frequent battery changes and saves time and electricity in the process.

40

LEED�for�New�Construction�v2.2�� Registered�Project�ChecklistYes ? No9 0 5 14�Points

Y Prereq1 Construction�Activity�Pollution�Prevention Required1 Credit�1 Site�Selection 11 Credit�2 Development�Density�&�Community�Connectivity 11 Credit�3 Brownfield�Redevelopment 11 Credit�4.1 Alternative�Transportation,�Public�Transportation�Access 1

1 Credit�4.2 Alternative�Transportation,�Bicycle�Storage�&�Changing�Rooms 11 Credit�4.3 Alternative�Transportation,�Low�Emitting�&�Fuel�Efficient�Vehicles 11 Credit�4.4 Alternative�Transportation,�Parking�Capacity 11 Credit�5.1 Site�Development,�Protect�or�Restore�Habitat 11 Credit�5.2 Site�Development,�Maximize�Open�Space 11 Credit�6.1 Stormwater�Design,�Quantity�Control 11 Credit�6.2 Stormwater�Design,�Quality�Control 1

1 Credit�7.1 Heat�Island�Effect,�Non�Roof 11 Credit�7.2 Heat�Island�Effect,�Roof 11 Credit�8 Light�Pollution�Reduction 1

Yes ? No4 0 1 5�Points

1 Credit�1.1 Water�Efficient�Landscaping,�Reduce�by�50% 11 Credit�1.2 Water�Efficient�Landscaping,�No�Potable�Use�or�No�Irrigation 1

1 Credit�2 Innovative�Wastewater�Technologies 11 Credit�3.1 Water�Use�Reduction, 20%�Reduction 11 Credit�3.2 Water�Use�Reduction,�30%�Reduction 1

12 0 5 17�Points

Y Prereq�1 Fundamental�Commissioning�of�the�Building�Energy�Systems RequiredY Prereq�2 Mimimum�Energy�Performance RequiredY Prereq�3 Fundamental�Refrigerant�Management Required

9 1 Credit�1 Optimize�Energy�Performance 1�to�1010.5%�New�Buildings�or�3.5%�Existing�Building�Renovations 114%�New�Buildings�or�7%�Existing�Building�Renovations 217.5%�New�Buildings�or�10.5%�Existing�Building�Renovations 321%�New�Buildings�or�14%�Existing�Building�Renovations 424.5%�New�Buildings�or�17.5%�Existing�Building�Renovations 528%�New�Buildings�or�21%�Existing�Building�Renovations 631.5%�New�Buildings�or�24.5%�Existing�Building�Renovations 735%�New�Buildings�or�28%�Existing�Building�Renovations 8

9 38.5%�New�Buildings�or�31.5%�Existing�Building�Renovations 942%�New�Buildings�or�35%�Existing�Building�Renovations 10

3 Credit�2 On�Site�Renewable�Energy 1�to�32.5%�Renewable�Energy 17.5%�Renewable�Energy 212.5�Renewable�Energy 3

1 Enhanced�Commissioning 11 Enhanced�Refrigerant�Management 1

1 Measurement�&�Verification 11 Green�Power 1

Sustainable�Sites

Water�Efficiency

Energy�&�Atmosphere

*Note�for�EAc1:�All�LEED�for�New�Construction�Projects�registered�after�June�26th,�2007�are�required�to�achieve�at�least�two�(2)�points�under�EAc1.

41

LEED�for�New�Construction�v2.2�� Registered�Project�ChecklistYes ? No7 0 6 13�Points

Y Prereq�1 Storage�&�Collection�of�Recyclables1 Credit�1.1 Building�Reuse,�Maintain�75%�of�Existing�Walls,�Floors�&�Roof Required1 Credit�1.2 Building�Reuse,�Maintain�100%�of�Existing�Walls,�Floors�&�Roof 11 Credit�1.3 Building�Reuse,�Maintain�50%�of�Interior�Non�Structural�Elements 1

1 Credit�2.1 Construction�Waste�Management,�Divert�50%�from�Disposal 11 Credit�2.2 Construction�Waste�Management,�Divert�75%�from�Disposal 1

1 Credit�3.1 Materials�Reuse, 5% 11 Credit�3.2 Materials�Reuse,10% 1

1 Credit�4.1 Recycled�Content,�10%�(post�consumer�+�1/2�pre�consumer) 11 Credit�4.2 Recycled�Content,�20%�(post�consumer�+�1/2�pre�consumer) 11 Credit�5.1 Regional�Materials,�10%�Extracted�&�Manufactured�Regionally 11 Credit�5.2 Regional�Materials,�20%�Extracted�&�Manufactured�Regionally 1

1 Credit�6 Rapidly�Renewable�Materials 11 Credit�7 Certified�Wood 1


Y Prereq�1 Minimum�IAQ�Performance RequiredY Prereq�2 Environtmental�Tobacco�Smoke�(ETS) Control Required

1 Credit�1 Outdoor�Air�Delivery�Monitoring 11 Credit�2� Increased�Ventilation 1

1 Credit�3.1 Construction�IAQ�Management�Plan,�During�Construction 11 Credit�3.2 Construction�IAQ�Management�Plan,�Before�Occupancy 1

1 Credit�4.1 Low�Emitting�Materials,�Adhesives�&�Sealants 11 Credit�4.2 Low�Emitting�Materials,�Paints�&�Coatings 11 Credit�4.3 Low�Emitting�Materials,�Carpet�Systems 11 Credit�4.4 Low�Emitting�Materials,�Composite�Wood�&�Agrifiber�Products 1

1 Credit�5 Indoor�Chemical�&�Pollutant�Source�Control 11 Credit�6.1 Controllability�of�Systems,�Lighting 1

1 Credit�6.2 Controllability�of�Systems,�Thermal Comfort 11 Credit�7.1 Thermal�Comfort,�Design 11 Credit�7.2 Thermal�Comfort,�Verification 1

1 Credit�8.1 Daylight�&�Views, Daylight�75%�of�Spaces 11 Credit�8.2 Daylight�&�Views,�Views�for�90%�of�Spaces 1


1 Credit�1.1 Innovation�in�Design: Exceed�SS�Cr�5.2 11 Credit�1.2 Innovation�in�Design: Exceed�WE�Cr�3 11 Credit�1.3 Innovation�in�Design:�Green�Education 11 Credit�1.4 Innovation�in�Design: Green�Cleaning 11 Credit�2 LEED® Accredited�Professional 1

Yes� ? No45 0 24 69 Points

Material�&�Resources

Indoor�Enviromental�Quality

Innovation�&�Design�Process

Project�Totals�(pre�certification�estimates)Certified:�26�32�points;�Silver:�33�38�points;�Gold:�39�51�points,�Platinum:�52�69�points

42

Sustainability at the East Coast DC• The most visible sign of sustainability at the new facility is actually on the roof.• BD has installed 4 acres of solar panels that cover about a quarter of the total

roof area and generate close to one megawatt of electricity.• These solar panels have been fully operational since January 2012 and are

expected to supply almost 20% of the site’s electricity. • An online tracking system measures electricity generation and associated CO2

savings, along with onsite weather conditions.

43


44

The Final Product ……

December 29, 2011

45

� BD the Company





46

The Business Case For Solar Panels

• To optimize the return on capital investment, there were three financial scenarios evaluated:– Power Purchase Agreement (PPA)

– Lease – Majority funded by BD through an LLC with a State investor

– Cash Purchase – 100% funded by BD

• There were three components of this investment considered of which two provided significant impact to the financial viability of the project:– State Tax Grant – Not available because BD reached it’s state allotment

– Federal Tax Grant – A one time grant equal to 30% of the base cost of the solar panel system

– Bonus Depreciation – One time tax adjustment (bonus depreciation)

• Payback needed to be within 12 year lease of new building

47





• Power Purchase Agreement (PPA)– Utility owns the solar array and provides guaranteed utility rate

that is less than prevailing rate

– Can not claim any benefits from sustainability standpoint

– BD does not own the S-RECs

– Limited size to 250 kW

48





• Lease – Majority funded by BD through an LLC– Slightly better IRR than PPA since BD doesn’t “own” the solar

array, and we could take advantage NC State incentives

– However very complicated accounting structure

– LLC margin minimizes BD’s potential IRR

49





• Cash Purchase – 100% funded by BD– Slightly better IRR than Lease and BD owns the solar array

– However even with Federal incentives came ups short of IRR and over 12 year payback (longer than lease)

• The closer – sell the S-RECs for the first five years – Brought IRR to an acceptable level and payback within lease

terms




• Cash Purchase – 100% funded by BD– Slightly better IRR than Lease and BD owns the solar array

– However even with Federal incentives came ups short of IRR and over 12 year payback (longer than lease)

• The closer – sell the S-RECs for the first five years – Brought IRR to an acceptable level and payback within lease

terms

a “green” success story – a “hyper- sustainable ...• regenerative forklifts: the warehouse...

Documents