Sustainability Planning for Baxter International Inc.: Climate Change Policies in the UK

Large, multinational companies are facing substantial costs and risks due to climate change-related government policies. While corporate sustainability efforts help reduce such costs and even create business opportunities, long-term policy impacts are rarely evaluated and internalized. This study quantifies future policy cost possibilities in three scenarios and provides modeling tools to assist in long-term corporate planning. Developed for Baxter International, a global medical products company, the analysis and model center on manufacturing facilities in the United Kingdom. The model projects energy costs, greenhouse gas emissions, and energy project viability for Baxter plants through 2030 using the developed scenarios and wholesale energy price sensitivity. Strategies to integrate long-term policy planning in other business aspects and markets are discussed. Together, these tools offer corporate decision makers approaches to interpret and capitalize on future climate change policies.