Progress Report

A commitment to operational efficiency

Carlyle Partners VI, L.P.

Ortho Clinical Diagnostics, a 2014 acquisition from Johnson & Johnson,is a leading global provider of in vitro diagnostics, and is a trusted partner and adviser of hospitals, hospital networks, blood banks and labs around the world. The longstanding responsible business priorities and practices that define the company are embedded in a sustainable operations framework. This framework enables Ortho to help protect the planet by making conscientious choices and implementing effective environmental programs.

The company focuses its environmental efforts on three key areas: reducing waste and energy consumption, using fuel-efficient fleets, and incorporating ESG practices into its product manufacturing and packaging.

Ortho seeks ways to reduce its environmental footprint by designing technology and systems with the highest operational efficiency and therefore the lowest impact on the earth and its resources. In support of that mission, in 2016, Ortho set new goals to be met by 2018 that build on its impressive record of environmental stewardship. They include:

  • 10% reduction of landfilled or incinerated waste
  • 10% water reduction
  • 5% total energy reduction across all manufacturing facilities

Conserving water. In Ortho’s Global Center of Excellence for R&D in Rochester, New York, the company’s water-use reduction program lowered consumption by 21 million gallons per year in 2014 and 2015. In early 2016, new water pumps were installed, resulting in projected savings of 10 million to 12 million gallons per year.

Reduction of hazardous or non-hazardous waste. In 2016, at its Raritan, New Jersey, and Rochester sites, Ortho shifted an additional 70 tons of medical waste stream to a mixed-waste recovery plant for reuse. Another example is in Pompano Beach, Florida, where Ortho completed a sustainability project in 2016 that led to recycling a waste stream previously managed as medical waste. This resulted in a decrease of 16% of medical waste.

Composting and recycling. Ortho’s sustainability initiatives have resulted in a 25% increase in composting rates and a 10% increase in recycling rates in 2016.

Zero landfill. In Pencoed, UK, Ortho reduced hazardous waste by 39% from 2011 through 2016. By implementing strict recycling processes, the facility had no waste going to landfills throughout 2016, which led the site to achieve zero landfill status.

Energy management. Ortho has implemented a number of energy efficiency improvements that have resulted in reduced consumption of carbon-intensive fuels.

Raritan, New Jersey. Ortho generated 11 MWh of clean energy in 2016 using onsite solar panels. That amount represents 12% of the site’s energy demand and enough energy to power 11,000 average homes for one year. The continuation of the successful “after-hours lights-out” program, introduced in 2015 at Ortho’s locations in Raritan and Pompano Beach, resulted in a CO2 emissions avoidance of 94,000 pounds in 2016.

Pencoed, UK. Various energy-efficient projects implemented from 2012 to 2016 led to a 25% annual reduction in CO2 emissions, representing a reduction of 1.3 million pounds. The facility also reduced natural gas consumption by 24% from 2012 through 2016, and achieved a 2% decrease in water consumption from 2015 to 2016.

Rochester. Working with Ironclad Energy—which completed the acquisition of a nearby power plant that supplies all utilities to key Ortho manufacturing operations—will yield reductions in the plant’s CO2 emissions by 2018 by converting the coal-powered plant to natural gas.

Fleet Management. The Fleet Management program for company vehicles continues to focus on fuel efficiency and safety. Fuel-efficient vehicles are selected and carbon emissions are monitored. Notably, in 2015, the U.S. vehicle fleet comprised 30% hybrid vehicles.