The development and application of a decision making strategy for multinational companies to reduce energy-related greenhouse gas emissions: Case study Baxter International

This research is focused on the development of a strategic decision-making framework designed for executives to apply to aggressively reduce their company's energy-related greenhouse gas (GHG) emissions. A core aspect of the research and decision framework is a study of the GHG reduction activities of 21 large pharmaceutical companies with corporate headquarters located in the European Union, Japan and the United States.; This research defines 20 major, overarching GHG emission program and reduction strategies, based on research and benchmarking of company activities aimed at addressing climate change and reducing GHG emissions. The research aligns these strategies with basic business strategies by applying strategic management tools known as the balanced scorecard and the strategy map, developed by Robert Kaplan and David Norton. A matrix of company business value elements from the strategy map and available GHG strategies provides for powerful business alignment that can drive a reduction in absolute GHG emissions and contribute to both short-term and long-term shareholder value.; This research analyzes the achievements of research-group companies in reducing GHG emissions, including emissions compared to company total annual sales and net earnings. It then identifies five "climate leader" companies within this group and defines their associated GHG strategies. A statistical analysis is next performed on GHG-reduction strategies and associated action steps using a multiple linear-regression model. Six actions emerge that, when applied, show a statistically significant reduction in company GHG emissions. Finally, the research presents a strategic decision-making framework (basic Level 1 and detailed Level 2) for companies to use to aggressively reduce energy-related GHG emissions. Using the decision framework, the research presents Baxter International as a case study, including its strategies to address climate change, activities to reduce GHG emissions and results. The research presents recommendations to address Baxter's apparent GHG reduction opportunities.