A Better Tomorrow In Progress
2010 GLOBAL CITIZENSHIP REPORT
Delivering on a Better Tomorrow
We are pleased to present Sigma-Aldrich's 2010 Global Citizenship Report. In 2010 we extended our Global Citizenship commitment and in this
document we'll update you on the progress we've made on our GC1015 Initiative baselines that we launched at the beginning of 2010. These
baselines are key to help Sigma-Aldrich mitigate risk for customers, while enabling us to continue the expansion of the broad portfolio of products
we offer. More importantly our progress against these baselines demonstrates our commitment to the highest level of resource responsibility.
Our capability to deliver a compelling and meaningful Global Citizenship platform is a direct reflection of our employees' efforts.
As we make progress in embedding the concepts of social responsibility, environmental sustainability and fiscal accountability at all
levels of our organization, our employees continue to discover new opportunities to further enhance our ability to meet and exceed
our customers’ expectations. By looking at the challenges we face through a new lens, we’re able to provide innovative solutions,
with the same goal in mind, to provide our customers with the highest quality products and an unparalleled level of service.
As a leader in life science and high technology, one of our biggest challenges is to continually improve even the most routine processes,
formulations and applications of our products. This approach has lead to breakthroughs in waste reduction during research and development,
manufacturing and product use. These improvements have also led to the removal of hazardous materials in product formulations and
the introduction of research materials for some of the most cutting edge energy and fuel efficiency projects around the world.
This year’s report is dedicated to our former Chairman, President and CEO, Dr. Jai P. Nagarkatti, who passed away in November 2010. We
began our Global Citizenship efforts under Jai’s watch. It was his vision that provided the Company’s initial focus on sustainability and corporate
responsibility in 2007. Today, we continue on in his memory, further cementing his legacy of commitment to the communities we serve. Jai’s
sense of humility, drive and high personal standards are a direct model for not only our Global Citizenship efforts, but our business as a whole.
Moving forward, we expect to continue to drive improvement through our GC1015 Initiative. We aim to reduce the intensity of natural
resource use and plan to further review our supply chain to evaluate opportunities to reduce our environmental impact as well as ensure
compliance with our social welfare policies. We also expect to deliver a wider array of greener products that provide scientists around the
world with an unprecedented level of product transparency not seen in our industry today. Finally, we will continue the strong commitments
we have made to the communities where we live and work. As we explain in this report, we expect the investments we are making in both
our commercial operations and in the communities in which we operate to synergistically work together to create significant shared value.
Sigma-Aldrich enables science that improves the quality of life – making for a better tomorrow. It’s a role we take seriously and will continue to build on.
Rakesh Sachdev
President and Chief Executive Officer
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SIGMA-ALDRICH® 2010 GLOBAL CITIZENSHIP REPORT
The Company
Sigma-Aldrich has a 35+ year history of being the premier supplier of
high quality chemistry and life science products that enable scientific
research and manufacturing designed to improve the lives of people
worldwide. It is only natural then that the paramount purpose of our
Global Citizenship effort is to create a better tomorrow for our employees,
our customers and the communities in which we live and serve.
Sigma-Aldrich long has had a good track record in Global Citizenship,
Sustainability and Green Initiatives. In late 2009 we decided to establish
stretch goals in these areas to challenge our business going forward.
As we reported in the 2009 Sigma-Aldrich Global Citizenship Report,
seven meaningful goals were identified by our organization with a plan
to meet or exceed the targeted improvements over a five year period.
Called the GC1015 Initiative, Sigma-Aldrich has committed to:
• a 20% improvement in our waste generation intensity
• a 20% improvement in our emissions intensity
• a 10% improvement in our water use efficiency
• a 10% improvement in our energy use efficiency
• enhanced transparency of our supply chain
• increased sale of Greener Alternatives Products
• expansion of Team Sigma-Aldrich
I am happy to report that Sigma-Aldrich is well on its way to achieving
our GC1015 commitment. In 2010 we implemented significant changes
both systematically and culturally to begin the process of realigning
efforts in Global Citizenship to meet the GC1015 goals. We established
firm baselines from which to measure our improvements, we increased
employee, customer and investor awareness regarding our efforts and
we implemented a better system for communicating with internal and
external stakeholders. While 2010 was a great start, we are already looking
forward to the progress we will make in 2011. The plan is to broaden our
efforts and programs globally. We’re integrating with the business on many
fronts by creating detailed action plans on how to achieve our desired
reductions on a sustainable basis and we’re sharing lessons learned.
Our Global Citizenship effort benefits us as a company as well as
our customers. In many cases it allows us to provider greener, more
sustainable products for our customers and it supports our manufacturing
and distribution efforts by driving efficiency, cost reduction and the
mitigation of risk across many areas of our business. Lastly, the culture
of Global Citizenship and Sustainability is recognized by our customers,
reinforcing why Sigma-Aldrich is and should continue to be seen as
a premier supplier and trusted partner. On behalf of Sigma-Aldrich, I
thank each of our employees for their dedication and efforts and I would
like to thank our customers for choosing to do business with us.
Letter from CEO Rakesh Sachdev
2
Letter from the VP of EH&S, Compliance
and Sustainability Steve Walton
3
GC1015 Plan Review
4
Sigma-Aldrich Overview
5
Organizational Profile
6
Social Responsibility
7
Goal #7 Overview and Performance
8
Team Sigma-Aldrich
9
Giving Back
10
Partnerships
12
Our Workplace
13
Our Customers
16
Our Commitment to Safety
17
Environmental Sustainability
19
Goal #1-4 Overview and Performance
20
Goal #5 Overview and Performance
28
Procurement
29
Supply Chain
30
Green Teams
31
Goal #6 Overview and Performance
33
Greener Chemistry
34
Animal Policy/Greener Marketing
36
Global Citizenship Awards
37
Fiscal Accountability
38
Global Reporting Initiative
39
Steve Walton
VP of EH&S, Compliance and Sustainability
A BETTER TOMORROW IN PROGRESS
3
GC1015 REPORT CARD
WASTE INTENSITY GOAL
20% Intensity Improvement
It's been one year since we launched the GC1015 Initiative. It was a year filled
with progress as well as reflection. We took a tough look at our performance
and identified areas where we thought we could do better. Internally some
thought that our progress measurements were too tough, but through
this process we have found that growth through rigorous transparency
and accountability to the established goals is the best method for moving
forward and delivering on the commitment we made to our stakeholders.
EMISSIONS GOAL
20% Intensity Improvement
WATER GOAL
The likelihood of enabling a “Breakthrough Worldview” moves closer each
day. Scientists and researchers around the world are utilizing our tools and
products to help close the gaps in many key disease categories and in the
emerging fields of alternative energy and fuel research. As our customers
have come to depend on Sigma-Aldrich for quality products, unparalleled
service and a vast array of unique and research maximizing tools, we are
working to provide those deliverables in a more responsible manner. From
the start of our supply chain, through production and packaging, then to
the shipping and disposal process we’re reviewing each step to identify
areas where we can minimize waste and maximize process efficiency.
10% Efficiency Improvement
ENERGY GOAL
10% Efficiency Improvement
SUPPLY CHAIN GOAL
Top 100 suppliers surveyed by 2012
Top 200 suppliers surveyed by 2015
On the right, you will see each goal along with a corresponding evaluation
indicating the progress we made. In 2010, we set baselines for each goal. We
provide specific targets relative to those baselines in this report and plan to
track our efforts over the next four years. You will also find a detailed progress
report on what we accomplished in 2010 and an explanation of our evaluation.
GREENER ALTERNATIVE PRODUCTS GOAL
25% increase in sales of our 2,563
Greener Alternative Products
To help readers identify GC1015 Initiative goals this logo will
highlight initiative goals and our work toward reaching the
goals. For more information on our GC1015 Initiative visit
us online at www.sigmaaldrich.com/globalcitizenship.
TEAM SIGMA-ALDRICH GOAL
Team Sigma-Aldrich in all countries with operations
4.0 volunteer hours per employee
= Progress on these goals has exceeded our expectations in 2010.
= Progress on these goals has met our expectations in 2010.
= Progress on these goals has not met our expectations in 2010.
Details on how we plan to address these goals can be found on each goal detail page.
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SIGMA-ALDRICH® 2010 GLOBAL CITIZENSHIP REPORT
Sigma-Aldrich by the numbers
PRODUCTS
CUSTOMERS
GEOGRAPHIES
PORTFOLIO
(# of products)
(% of 2010 total sales)
(% of 2010 total sales)
(% of 2010 total sales)
Leading the way in the
life science and high
technology markets
Over one million
individual customers
worldwide in over
97,000 accounts
Enhancing our global
reach through excellence
Four customer-centric
units delivering
quality products and
service every day
35% Pharmaceutical, Diagnostics, Biotechnology Companies
147,000 Chemicals (48,000 manufactured)
40,000 Laboratory Equipment Items
32% Chemical and Allied Industrial Companies
39% United States/Canada
37% Research Specialties
39% Europe/Middle East/Africa
29% SAFC
22% Asia Pacific/Latin America
19% Research Essentials
26% Universities, Government Institutions, Not-for-Profit Organizations
7%
15% Research Biotech
Hospitals and Commercial Laboratories
SALES
QUALITY SYSTEM IMPLEMENTATION
CORPORATE SAFETY PERFORMANCE
CORPORATE SAFETY PERFORMANCE
$ in Millions
Number of facilities with certification
Number of Injuries – Recordable Injury Rate (RIR)
Sigma-Aldrich Serious Injury Rate (SIR)
Serious Injury = 3 or more days lost work
2010
2,271
2010
7
75
2010 0.74
2.7
2010
0.23
2009
2,148
2009
7
66
2009
0.79
2.7
2009
0.16
2008
2,201
2008
7
66
2008
0.79
2.7
2008
0.28
2007
2.039
2007
5
64
2007
0.94
3.1
2007
0.21
2006
1,798
2006
5
63
2006
1.07
2.9
2006
0.35
2005
1,667
2005
4
57
2005
1.30
3.2
2005
0.32
2004
1,409
2004
4
48
2004
1.17
3.5
2004
0.39
ISO 14000
cGMP & ISO 9000
Sigma-Aldrich RIR
Industry Average
Sigma-Aldrich 2010 Recognitions:
Silver – The Scientist magazine Top 10 Innovations in 2010-CompoZr ZFN Technology
Number 84 – Corporate Responsibility Magazine Top 100 Corporate Citizens (Number 99 in 2009)
Number 178 – Maplecroft Climate Innovation Index
A BETTER TOMORROW IN PROGRESS
5
Sigma-Aldrich Worldwide
With offices in 40 countries supporting Sales, Distribution and Production, Sigma-Aldrich is a global company with operations around the world to meet our customers' needs.
Netherlands
Norway
Sweden
Finland
Denmark
Russia
Germany
Poland
Czech Republic
Luxembourg
Slovak Republic
Austria
Japan
South Korea
Hungary
Taiwan
Switzerland
China
Vietnam
India
Thailand
Malaysia
Singapore
Israel
New Zealand
Australia
United Kingdom
Ireland
Belgium
France
Canada
United States
Spain
Portugal
Mexico
Italy
Brazil
Chile
Argentina
South Africa
Sales
Distribution
Production
ORGANIZATIONAL PROFILE
Sigma-Aldrich Corporation was incorporated under the laws of the state of Delaware in May 1975. The Company’s
principal executive offices are located at 3050 Spruce Street, St. Louis, Missouri, 63103. The Company's primary
brands are Sigma, Aldrich, Fluka, Supelco and SAFC. The Company has a customer-centric organizational
structure including four business units: Research Essentials, Research Specialties, Research Biotech and SAFC.
This structure defines the Company’s approach to serving customers. The Company sells to researchers in
over 160 countries, servicing more than 97,000 accounts representing more than one million customers.
Sigma-Aldrich operates in 40 countries, manufacturing 48,000 of the 147,000 chemical products it offers. The
Company also offers 40,000 disposable equipment products. During the 2010 calendar year, Sigma-Aldrich
had chemical production facilities in Madison, Milwaukee and Sheboygan, Wisconsin; St. Louis, Missouri;
6
Lenexa, Kansas; Houston, Texas; Bellefonte and Denver, Pennsylvania; Haverhill and Natick, Massachusetts;
Caseyville and Urbana, Illinois; Miamisburg, Ohio; Mulberry, Florida; Carlsbad and Selma, California; Australia;
Canada; Germany; India; Ireland; Israel; Japan; Singapore; Switzerland; Taiwan; and the United Kingdom.
The Global Citizenship reporting period is based on a calendar year and the reporting cycle is
annual. Report content is determined by the Sustainable Business Development Department and is
contributed to by stakeholders throughout Sigma-Aldrich. The scope of the report includes the entire
Sigma-Aldrich Corporation. All questions regarding this report or its contents should be directed to Jeffrey
Whitford, Manager, Sustainable Business Development at GlobalCitizenship@sial.com.
SIGMA-ALDRICH® 2010 GLOBAL CITIZENSHIP REPORT
Social Responsibility
In the January/February 2011 issue of the Harvard Business Review, thought leaders Michael Porter and Mark Kramer
shared their insights on a shift from Corporate Social Responsibility (CSR) to Creating Shared Value (CSV). Their viewpoint
suggests that CSR is reputation based and has limited impact on the business and that businesses should instead
work to find the optimal place that merges what is best for society with what is best for the organization.
Sigma-Aldrich uses a similar CSV model to guide the investments in our communities over the past six years. That creation of shared
value can be seen through support and interaction with organizations such as the Susan G. Komen Foundation, Juvenile Diabetes
Research Foundation, Autism Speaks, and the Michael J. Fox Foundation. Our partnerships with these organizations continue to drive
reinvestment into the research community and further align our core business initiatives with that of our community investments.
In the coming pages, we will share stories of how our employees engaged with their community in 2010 and how our
investments in community organizations have turned into two-way partnerships with disease and disorder research organizations
utilizing our products to learn more about the diseases and disorders they are tasked with treating or eradicating.
You can also read about our newest developments in Human Resources, Quality, Safety, Trade Compliance
and our newest Services initiative, Strategic Service Solutions, from Sigma-Aldrich.
A BETTER TOMORROW IN PROGRESS
7
GC1015 Goal #7 TEAM SIGMA-ALDRICH
2010
2011
2012
2013
2015
2014
Team S-A in 9 countries
0.5 volunteer hours per employee
Team S-A in 40 countries
4.0 volunteer hours per employee
In November 2010, Sigma-Aldrich mourned
the loss of our Chairman, President and CEO,
Dr. Jai Nagarkatti. Jai was one of the driving
forces behind the Company’s commitment to our communities
and the environment. It was under Jai’s leadership that we
began our formalized Global Citizenship program and it is
in his memory that we move forward making even greater
strides in our efforts to positively impact people’s lives.
While we were able to meet our goal of a 15% global expansion,
we realized that significant changes have to be made in the
Team Sigma-Aldrich program if we are to reach a goal of four
volunteer hours per employee by 2015. To meet that goal we’re
looking at policy changes to clarify our commitment as well
as a volunteer system to empower employees to self-report.
In our 2010 Social Responsibility update you will find our Team
Sigma-Aldrich results along with spotlights on new additions
to the program. You will learn about one of our employees who
survived the earthquake in Haiti and how Sigma-Aldrich came
together to respond to the disaster. We’ll also provide more indepth reporting on our most valuable resources, our employees,
and review how Sigma-Aldrich makes sure that service, quality
and safety continue to be the cornerstones of our everyday work.
• Team Sigma-Aldrich Expansion
Achieved
2010 Team Sigma-Aldrich Results
1,750 participants
2010:
2009: 1,623
2008: 1,443
2007: 1,201
2006: 800
2010:
India
Japan
China
England
2009: 60,179
2008: 70,930
2007: 35,348
2006: 28,207
Next Steps
4,432 volunteer hours
• Implementation of Volunteer Management System
2010:
• Focused attention on long-term partnerships/outcomes
2009: 4,241
2008: 4,101
2007: 1,358
• Alignment of funding priorities
8
61,277 donated
SIGMA-ALDRICH® 2010 GLOBAL CITIZENSHIP REPORT
TEAM SIGMA-ALDRICH
Education is one focus of Team Sigma-Aldrich. At our corporate
headquarters in St. Louis, we have witnessed the problems of a troubled
school system. Less than five years ago the St. Louis Public Schools
(SLPS) were stripped of their accreditation, meaning they weren't
meeting the educational requirements set by the state of Missouri.
Around this time, Sigma-Aldrich began a partnership with the SLPS
to provide reading mentors in two of its schools. To date, this is our
largest volunteer commitment with 1,800 volunteer hours per year.
Every visit to these schools is a constant reminder of the challenges that
the students and teachers face. Most students are behind by at least
one grade level in reading. With the variety of comprehension levels
in a classroom, being able to provide specialized attention becomes
a challenge. Our volunteers are able to provide individual attention to
students that is designed to improve reading skills and foster confidence.
1
2
Sigma-Aldrich also supports a program that compensates St. Louis school
teachers for home visits to meet with parents who are unable or unwilling to
come to school to meet with the classroom teachers. Through this program,
teachers are able to connect with parents and provide feedback and focus
areas that students can work on at home as well as stressing the importance
of making sure the children are present at school daily. We continue to work
with our partner schools to review the progress of the children in our program
and adjusting our approach to ensure that our efforts are generating results.
PARTNERS
March of Dimes (The Woodlands); Run for the Stars (St. Louis); Komen Race
(St. Louis); JDRF (St. Louis); Cyber Chase (St. Louis); MDA (St. Louis); Bike
MS (St. Louis); Briggs & Als (Milwaukee); Special Olympics (Bellefonte);
Habitat for Humanity (Lenexa); Making Strides (Natick); Corporate Capers
(Milwaukee); Reading Partners (St. Louis); ACS Relay for Life (Denver);
KC Corporate Challenge (Lenexa); Komen 3-Day (Carlsbad); Casa
M.A.N.U. (Buenos Aires); Kickball for a Cause (St. Louis); Walk for Autism
(St. Louis); Bark in the Park (St. Louis); City2Surf (Castle Hill); Science
Partners (St. Louis); Science Partners (Bromborough); VGKK & Karuna Trust
(Bangalore); Bangalore City Connect Foundation (Bangalore); Miraikan
Museum (Tokyo); Volunteering Associate of Luwan District (Shanghai)
3
1. and 2. Team Sigma-Aldrich members from our Woodlands, Texas office at the 2010 March of Dimes: March for Babies Walk
3. Susan G. Komen Race for the Cure in St. Louis, Missouri
A BETTER TOMORROW IN PROGRESS
9
THE SCIENCE OF GIVING BACK
This past year there was a distinct change in the
conversation surrounding corporate giving. We noticed
a shift in our conversations with fellow funders as
well as the not-for-profit sector. Whether caused by
the current economic climate, or deteriorating social
conditions around the world, the traditional approach to
funding would no longer be enough. The expectations
placed on the corporate world are beginning to
broaden their reach into the not-for-profit sector.
Terms like accountability, ROI and Key Performance
Indicators are now part of the conversation. The
question had to be asked, “Is our charitable giving
system, in its current form, the best we can do?”
This question drove us to take another look at our
strategy and to see if we were getting a tangible
return on investment. While we cannot answer that
question at this time, we are putting the pieces
in place to monitor outcomes, benchmark those
results and working hand-in-hand with our partner
organizations to ensure that our contributions are
creating results and that we’re funding organizations
that are positively impacting people’s lives.
STEM
As part of our initiative to review our funding
strategy, Sigma-Aldrich began discussions
with other companies in the Greater St. Louis
region around the topic of STEM education.
Science, technology, engineering and
mathematics (STEM) education is a relatively
new mode of thinking about how best
to educate students for the workforce
and for post-secondary education.
Our partner organizations (Monsanto, Express
Scripts, Emerson, Mastercard, Bank of America,
Peabody, Boeing, AT&T and Washington
University) are taking a collaborative approach.
Biobench
As part of Sigma-Aldrich’s ongoing commitment
to elevate interest in the sciences throughout the
community, the Customer Education team launched
the Biobench workshop and Biogrant program. The
goal of this outreach is to promote the development of
young students into the scientific leaders of tomorrow.
The Biobench workshop provides high school students
and teachers with a greater understanding of life
science techniques through lectures, laboratory
exercises, and demonstrations of the same cuttingedge technologies used everyday by life science
professionals. In the inaugural event, co-sponsored by
St Louis Community College, participants completed a
full molecular cloning exercise and learned the power
of bioinformatics by using our “Your Favorite Gene”
search portal. A second workshop, entitled “DNA
Fingerprinting,” hosted students from the Clyde C.
Miller Career Academy in St Louis. DNA fingerprinting,
popularized by the media and television dramas like
“CSI” and “Law and Order,” has transformed the
world of forensic science. This technique enables law
enforcement to implicate criminals and exonerate the
innocent by comparing samples of human DNA left
at a crime scene with DNA obtained from a suspect.
This workshop required the students to use the same
techniques employed by forensic scientists, including
DNA purification, polymerase chain amplification,
and electrophoresis, to make positive identifications.
We’re continuing the Biobench series in 2011 and
including workshops on quantitative Real-Time PCR
and RNA interference. We’ve also announced our
intention to launch our Biogrant program. Development
of this program began with Sigma-Aldrich’s
desire to promote interest in the sciences and to
assist in the academic growth of future scientists.
Biogrant is a video contest targeted to high school
students. The student with the winning video will
receive $20,000 to makeover their high school lab.
With this program, we are encouraging potential
researchers to tell us, “What’s your Bio future?” and
to let us know how a grant could help their lab.
A principal mission of the Customer Education
Team at Sigma-Aldrich is to enable science
through education. This is achieved through the
implementation of our educational and community
outreach programs. Our programs, in partnership
with participating students and established
scientists, will continue to position Sigma-Aldrich as
a leading facilitator of science through education.
2008
2009
STEM is an approach to teaching that is larger
than its constituent parts. STEM education
removes the barriers between the four
disciplines by integrating the four subjects into
one cohesive means of teaching and learning.
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2010
$856,793
Products $6,107,347
Cash
$760,078
$6,397,020
$849,112
• The advancement of Science, in all its forms.
• Education and related activities that build
and train tomorrow’s leaders and foster
the development of well-rounded citizens.
• Health and Human services, especially
those focused on supporting youth
and strengthening families.
• Innovation that directly or
indirectly supports Sigma-Aldrich
Corporation’s corporate goals:
- To unleash talent
- To delight customers, and
- To thrill shareholders
• Thought leadership that fosters
the general advancement of our
major corporate initiatives:
- To promote life science
and high technology
- To be the world leader in service
- To streamline processes
- To set the standard for quality
- To ensure a safe, enriching
and productive workplace
Sigma-Aldrich and the Sigma-Aldrich Foundation Donations
2007
OUR PRINCIPLES
$555,050
$569,974
SIGMA-ALDRICH® 2010 GLOBAL CITIZENSHIP REPORT
$186,000
$670,793
• Not-for-profit organizations that are
directly and actively supported by
Sigma-Aldrich Corporation’s Key Human
Assets, our employees, directors, trusted
advisors, customers and fellow supporters
of other broad community initiatives.
haiti
1
For Diane Henschel, Senior Manufacturing Operator in Sheboygan Falls, Wisconsin, a yearly volunteer trip
to the Leogane region of Haiti held something she couldn’t have foreseen. After being in Haiti for four
days, the unthinkable happened. On January 12, 2010, a 7.0 magnitude earthquake struck the island
nation. Diane and 37 other volunteers were working at an orphanage and school in Leogane. Diane and
the team were returning to the compound where they were staying when the earthquake struck.
“The ground just looked like it was liquid, it had a fluid motion” said Henschel. After realizing what had happened
the team did a quick check of all of the volunteers, finding that everyone was shaken but okay. The next question
was the safety of those in the orphanage. The morning after the earthquake, part of the team made its way back
to the orphanage where they found that all 16 children along with the staff were safe. They immediately began
repair work on the facility and opened a newly constructed medical clinic. The remainder of the team set up a
triage area near the compound to treat as many injuries as they could with the emergency supplies they had.
A few days later, Diane and her group were able to make their way to Port-au-Prince after being informed about
the possibility of catching a private flight out of the country. Mission Aviation Fellowship made arrangements
with Hendrick Motorcross Racing to bring in Disaster Relief teams and to evacuate Americans. Because their
group was one of the first to arrive at the airport, they were able to make it out of the country and back
to safety. For Diane, it was an experience that has her wanting to return to help rebuild the country.
2
In response to the Haiti earthquake disaster, Sigma-Aldrich joined the efforts of other companies around
the world. The Company challenged employees with a matching gift of up to $20,000. After three weeks
of collecting funds from employees around the world, Sigma-Aldrich employees raised $16,000, and the
Company made the decision to contribute the entire $20,000 to aid the Red Cross in its relief efforts
3
4
1. Diane Henschel in Leogane, Haiti
2. and 3. Damage to the school and orphanage in Leogane
4. Young girl after treatment at the triage station
A BETTER TOMORROW IN PROGRESS
11
SAGE LABS PARTNERSHIPS
SAGE Labs Partners with Leading Non-Profits
to Develop Better Models of Human Disease
Since its inception as a business initiative at Sigma Aldrich in 2009, SAGE Labs has sought to partner
with leading non-profit foundations to bring more predictive disease models to market that otherwise
might not have been generated. With a specific focus on creating models for diseases with neurobiological origins, SAGE Labs first partnered with the Michael J Fox Foundation, focusing on Parkinson’s
research, and then Autism Speaks, the leading organization dedicated to Autism research.
Though current mammalian models, mainly mice, adequately recapitulate some outward symptoms of
Parkinson’s disease and Autism, no existing model has been able to accurately mimic the onset and
progression of the underlying disease process that characterizes these diseases in humans.
Adopting a new approach to developing more effective and targeted research models, SAGE
Labs uses CompoZr ZFN technology in its efforts to design ‘knockout’ rat models in which the
genes known to be directly implicated in Parkinson’s disease and Autism are omitted.
“Our Foundation’s mission is to accelerate the conversion of basic discoveries about Parkinson’s disease into
practical treatments that will make a difference in patients’ lives,” said Katie Hood, CEO of The Michael
J. Fox Foundation. “To accomplish this, there is a critical need for new research models to more effectively
screen potential new therapies, particularly neuroprotective therapies. We’re excited about the knockout rat
technology developed by Sigma-Aldrich, and hopeful for its prospects to quickly make a major impact on
Parkinson’s disease drug development efforts and help deliver breakthrough treatments to patients faster.”
“We were particularly interested in partnering with SAGE because of the need to further our ability to carry out
translational research in autism. More model systems are sorely needed,” said Dr. Sophia Colamarino, Vice
President of Research for Autism Speaks. “Autism Speaks has direct connections to autism researchers
across the U.S. and Europe. Combining this specialized knowledge with Sigma Life Science’s expertise and
unique technology will result in significant benefits for researchers and hopefully a faster testing and adoption
of these new models.”
This research is expected to facilitate the development of new models that scientists believe will provide a
better understanding of these devastating diseases at the molecular, biochemical, physiological and behavioral
levels. This knowledge may, in turn, result in new therapeutic targets and approaches for the treatment.
Models that are produced under the auspices of these partnerships are made available to customers
world-wide through Sigma’s world class distribution systems under the SAGE Labs brand.
Culture/growth of modified
embyro (e.g. zebrafish)
(-/-)
ZFN causes disruption
of targeted gene
(+/-)
BREAK
or
Fertilized one-cell embryo
Microinjection of
ZFN into nucleus
Birth of founder animals
Magnification of
injected nucleus
(-/-)
For more information on SAGE Labs, visit www.sage.com.
12
Transfer of modified
embyros to foster mothers
SIGMA-ALDRICH® 2010 GLOBAL CITIZENSHIP REPORT
(+/-)
= Targeted knockout
OUR WORKPLACE
Our approach to sustainability includes the ability to attract, engage, develop and retain
the best scientific, professional and leadership talent in the industry. We understand that
the quality of our employees drives our ability to fulfill our mission and to execute our
business strategy. The employment value proposition we present to prospective candidates
is powerful, particularly to scientists around the world who rely on our products and services.
We rely on internships, on-campus recruiting and our relationships with key colleges and
universities to supply us with scientific talent. Beyond this, prospective candidates from other
disciplines are drawn to our unparalleled record of sales growth and performance.
7,888 employees
2010
2009
2008
North America
4,229
Europe, Middle East, Africa 2,825
Asia Pacific/Latin America
834
4,079
2,856
805
4,216
2,900
809
A BETTER TOMORROW IN PROGRESS
Total BY Gender
43% Female
57% Male
2010 TURNOVER
North America
Europe, Middle East, Africa
Asia Pacific/Latin America
443
317
83
13
Our Commitment to Diversity & Awareness
Sigma-Aldrich recruiting crosses international borders and our culture promotes diversity. We strive to
ensure that our talent pool is composed of a diverse array of candidates, many destined for leadership
roles. With a compelling career message in place, we employ screening tools and careful selection
processes to identify and select candidates that can fit even the most challenging roles. Prospective
candidates are also drawn to our unparalleled record of sales growth and performance.
Along with a focus on diversity is a focus on awareness. Whether it is corporate governance, human rights,
or safety, all employees are called upon to be aware of their surroundings and to inform their supervisors
if there is an inconsistency between corporate policy and employee behavior. All employees are required
to review and acknowledge their responsibilities to uphold our Business Conduct Policy. This policy is
reviewed annually by all employees. Sigma-Aldrich does not condone forced, compulsory or child labor.
In support of our commitment to the conduct of business in an ethical manner, an in-depth training module
was developed for a pool of our supervisors and managers who were required to complete a 2.5 hour
training on harassment and diversity. Our training on human rights policies goes beyond our employees
and extends to all of our security personnel, ensuring a workplace defined by respect for all humanity.
Those members of our workforce represented by labor agreements is primarily located in our
EMEA (Europe/Middle East/Africa) region, and represent approximately 13.3% of our total
workforce in that region. Our labor agreements require three to twelve months notification for
any significant operational changes depending on the country and the agreement.
Approximately 100 newly promoted supervisors and managers across the U.S. recently completed an
HR-led leadership training program designed to cover the strategies and tools needed to effectively
manage others. The new program, which began in early 2010, consists of a series of modules that are
offered each quarter and feature a combination of online content followed by classroom sessions.
“The essence of being an effective manager is meeting the day-to-day needs of the business and the
needs of employees,” said Erick Koshner. “This is especially important for front-line and middle-level
managers who play a critical role in the engagement of our workforce. And in the case of first-time
managers, they must be quickly equipped with a wide range of skills including the ability to establish
trust, to coach others and to resolve conflict.” The training reinforces the following principles:
1. Ethical Behavior
Always do the right thing
No compromise. There are many examples of individuals and even companies that have
"cut some corners," and consequently, paid the price in stature and reputation.
2. Relationships
Treat employees right and develop their trust and respect
Keep employees well-informed and motivated so they use their individual talents optimally. The ideas
that surface to help manage costs and to improve operations help make our Company stronger.
In 2010, there were nine human resources complaints filed regarding discrimination.
These charges have been investigated carefully with supervision of our Human Resources
and Legal Departments and each has been resolved satisfactorily.
3. Aim High
Operate a profitable, efficient, and well-run organization – execute on consistent basis
With an industry reputation as a high-performing Company we need to maintain the highest standards of quality
and service. Challenging goals help our organization to achieve a higher level of excellence in everything we do.
Strengthening our Business by
Developing our Employees
Offering a conventional benefits package is no longer enough for companies to attract and retain valuable
people. Workers increasingly seek out employers who help them extend their skills and knowledge. It’s
rewarding for employees to take on challenges that make coming to work an exciting prospect. SigmaAldrich understands that sustainable growth is closely aligned with employee development, and there are
many ways in which our work environment promotes learning, such as our Leadership Training Program.
Research shows that companies with strong employee engagement are better financial performers,
with less turnover and more motivated employees. Our induction and socialization processes for
new employees go far beyond routine orientation methods and reinforce their decision to join
the Company. Information, introductions, training, values clarification and social events are key to
helping new employees develop affinity for our organization and becoming highly engaged.
14
U.S. Human Resources Successfully Wraps
Leadership Training Program
4. Development
Always growing and learning new things
Not only is individual learning important, but the ability to transfer learning across the organization is what makes
Sigma-Aldrich a transformative company. Continuous improvement must continue to be a part of our DNA.
The classroom follow-up sessions are called “practice labs” and provide the opportunity for participants to
interact with peers and to apply what they learn through the modules. This Leadership Training Program
is currently being rolled out to our offices to provide a consistent training platform globally.
By focusing on all the areas above we expect to create a motivating environment for our
employees, provide excellent products and service to our customers, and offer good returns to our
shareholders. In short, we can be the supplier of choice in our chosen markets, the employer of
choice in the locations where have facilities, and the investment of choice to investors.
SIGMA-ALDRICH® 2010 GLOBAL CITIZENSHIP REPORT
Feedback
Understanding employee expectations and receiving timely feedback directly from supervisors are hallmarks
of effective performance management. We survey employees to measure engagement and capture ideas on
how we can continue to improve. Traditionally, companies reserve opportunities for performance feedback
until year-end performance appraisals – efficient but not always effective way to coach employees. We utilize
a performance management system for each and every Sigma-Aldrich employee with a user-friendly online
performance appraisal and an individual development planning process that captures feedback and compares it to
leadership competencies. Both are crucial for effective development planning. Supervisors take part in performance
management training and are encouraged to engage in real-time performance reviews with their employees.
care program, flexible spending accounts, basic life (no-cost benefit), supplemental life, travel and
accident insurance, disability (short and long-term), our defined benefit pension plans, 401(k) retirement
savings plan, tuition reimbursement, relocation reimbursement and easily accessible career advancement
opportunities available online that provide that provide security for employees and their families.
In the U.S., we also offer an Employee Assistance Program for professional consultations on a wide range
of topics including health/wellness, child and elder care, family or parenting issues, work/life balance,
marital or relationship issues, grief and loss, alcohol or chemical dependencies, legal matters and more.
This program is offered to employees at no cost and is strictly confidential. It is there to support employees
and members of their household in coping with their concerns and any challenges they may face.
Total rewards
Women In Leadership (W.I.L.)
We recognize that employee perception of total compensation includes not only today’s paycheck, but
also future advancement and earnings potential within our organization. We constantly strive to build
compensation programs that better recognize the contributions of our top performers and demonstrate our
confidence in their abilities to take on greater challenges. Beyond career and professional growth, SigmaAldrich offers competitive benefit plans that are customized to meet the needs of employees in each of the
countries where we operate. In the U.S., we provide a wide range of benefits including paid vacation
and personal time, medical and dental coverage for both employees and their families, voluntary vision
In July of 2010, our CEO, Jai Nagarkatti, sent a memo to our workforce outlining the importance of diversity
and inclusion. Following this memo, our leadership team established the WIL initiative which seeks to create
an inclusive community that connects the needs and interests of women at Sigma-Aldrich. WIL’s objectives
are to facilitate personal and professional development through educating, mentoring and networking across
functional groups. For its pilot program in St. Louis, the group is measuring success and effectiveness in achieving
its mission based on participation rates of women leaders, supervisors and above with direct reports.
A BETTER TOMORROW IN PROGRESS
15
OUR CUSTOMERS
More than 33% of our products, many of which are regulated as hazardous and
dangerous goods, are manufactured at our own manufacturing facilities. Risk
assessments are carried out during product design and development to ensure
appropriate health and safety measures are in place before manufacturing begins.
Material Safety Data Sheets (MSDS) are generated and maintained by our Product
Safety group for all of our products. MSDS labels and product information are updated
throughout the life cycle of our products as new data becomes available. Our packaging
group works with our Transportation Compliance team to design appropriate packaging
to ensure the product can be stored and transported safely. Packaging components
are reviewed regularly to incorporate new findings and ensure compliance with
Department of Transportation (DOT) and global transport regulations. Our team of
scientists is constantly working on developing ways to either substitute or reduce the
use of hazardous substances in the manufacturing of our products through our greener
chemistry initiatives. Appropriate disposal information is included in product information
and the MSDS to ensure safe disposal of products at the end of their life cycle.
these metrics and results are monitored by executive management. Complaints
are investigated to determine root causes, corrective actions are taken where
warranted, and trends monitored to identify future actions that may be needed.
Quality complaint data is included in the right hand column on this page.
Sigma-Aldrich is committed to comply with all applicable laws in all countries in which
we do business. Compliance with health, safety and environmental regulations is
monitored by our Environmental Health and Safety Department. Reports of possible
non-compliance with food, drug, and device regulations are investigated by personnel
from our Quality Assurance Department with input from affected parties. Our Trade
Compliance group works to ensure compliance with applicable trade regulations.
Sigma-Aldrich's commitment to maintaining compliance with laws and regulations
includes a state-of-the-art system of policies and procedures backed-up by an audit
program to assess compliance. Our IT systems allow us to identify materials classified
as hazardous, blocking them for sale until customer qualification requirements have
been reviewed and relevant hazardous material information and documentation is
provided to ensure products are handled appropriately throughout the supply chain.
In 2010 we had no incidents of non-compliance with regulations or codes concerning
health and safety of our products. Sigma-Aldrich is committed to providing high
quality products to all of its customers. The International Standards Organization
(ISO) provides a strong quality systems framework and certification process that is
recognized worldwide. The number of Sigma-Aldrich facilities that hold one or more
ISO certifications is reflected in the charts on the right hand side of this page.
Our Technical and Customer Service teams communicate with hundreds of
thousands of our customers each year. Sigma-Aldrich’s product portfolio grew
by 17,000 products over the past year. As our product portfolio is expected to
continue to grow, the requirements on our Technical and Customer Service and
Sales will grow as well. To help address our customers’ needs we’ve begun to
implement our PDSA (Plan, Do, Study, Act) model to help expedite assisting
them overcome issues they have that our products can help them resolve.
As a process improvement, Sigma-Aldrich
began further categorization of customer
audit observations to distinguish severity.
Data tracking began in 2009 with audit
observations shared between all sites.
This allows identification of multi-site
trends and implementation of corrective
and preventive actions, if needed.
2009
2010
7
75
2009
7
66
2008
7
66
2007
5
64
2006
5
63
MAJOR
2005
4
57
1.14
0.96
2004
4
0.08
0.08
48
ISO 14000
cGMP & ISO 9000
QUALITY COMPLAINTS
2.0
2010
2009
2008
1.0
2007
1.5
SERVICE COMPLAINTS
per 1000 Lines Shipped
6.0
5.0
2008
3.0
2010
4.0
2009
Our Global Technical Service team includes approximately 150 scientists that assist
in solving customers’ problems via phone, email or live chat. Our team is working to
bring more information to our customers in formats that are easy to access globally
at anytime. Our FAQ’s and enhanced web help tools have helped reduce call loads.
In 2010, our Technical Service team partnered with our QA team to streamline the
processing of customer complaints. Through this partnership we’ve been able to increase
the number of customer complaints closed within the same month from 60% to 75%
(avg. of 640/month), allowing us to respond to our customers needs even quicker.
per 1000 Lines Shipped
2006
SOLVING ISSUES
Keeping Customers Informed
CUSTOMER OBSERVATIONS PER AUDIT
A further way in which Sigma-Aldrich provides support to its customers is through
notification of significant changes affecting our products. Customers have a wide
range of uses for the products we sell and sometimes subtle changes in specifications,
processes, packaging, etc., can have unexpected consequences on the customer’s
application. Sigma-Aldrich mitigates these potential consequences by tracking
products under a change control process and supplying notification of significant
changes to customers who have asked to be notified. More than 1,100 customers
are in the change notification database that covers nearly 14,000 products.
Sigma-Aldrich measures both quality and service and includes results in a highlevel corporate dashboard, visible to all employees. Goals have been set around
16
2010
customer audit
observations severity
CRITICAL
ISO CERTIFICATIONS
8.0
7.0
6.0
SIGMA-ALDRICH® 2010 GLOBAL CITIZENSHIP REPORT
2010
2009
2008
2007
2006
2005
2004
2003
4.0
2002
5.0
CUSTOMER Safety
strategic service solutions
PRODUCT SAFETY
Our newest initiative broadens the Sigma-Aldrich product portfolio in a
new way. The majority of our customers are used to getting core products
from Sigma-Aldrich like reagents, chemicals, buffers, etc. Customers
can now access an expanded service offering to address the challenges
of an increasingly regulated and complicated business environment.
With a wide range of services based in our core science offerings in
Analytical, Biology, Chemistry, Materials Science and SAFC, we have
enhanced products in those sectors and added services. These services
are derived from our core understanding of transporting hazardous
materials, the requirements for a safe workspace and provide our
customers access to our vast scientific data and safety information.
Product safety and security outside of our workplace is of great importance
to Sigma-Aldrich. We handle many chemicals that require extreme caution
during transportation and use. To support the safe and secure transport
of our materials we became C-TPAT (Customs-Trade Partnership Against
Terrorism) certified in 2010. C-TPAT is a U.S. government based initiative
managed by the Department of Homeland Security to build cooperative
relationships that strengthen and improve both overall international
supply chains and U.S. border security. This program was developed as
a direct result of the September 11, 2001 terrorist attacks. The program,
which launched on November 1, 2001 and now has 7,400 participants
including importers, freight forwarders and customs brokers, has three
tiers. Sigma-Aldrich has been Tier 1 certified and we recently went through
our Tier 2 Validation towards our ultimate goal of Tier 3 certification.
Compliance
Sigma-Aldrich has a large customer base, diverse global supply chain and
many products that are regulated by one or more agencies in numerous
countries. Our compliance and screening groups dedicate themselves
to reviewing and screening customer orders to ensure our materials
are used by knowledgeable customers in suitable applications. We
monitor our sales transactions through a systematic screening process
within our business enterprise system. This screening process allows us
to identify orders for regulated products that meet specific criteria.
If an order has been delayed for screening reasons, a representative
will contact our customer for any additional documentation that is
required prior to shipping the material. When all requirements have
been fulfilled, the representative will approve the order for shipment
and we document the user name, date and time of the approval action.
In addition, new accounts are reviewed to ensure our products end
up in the hands of persons authorized to acquire our products. This
account review process, which includes direct customer contact, helps
to prevent the misuse and/or unlawful diversion of our products.
Sigma-Aldrich has dedicated resources worldwide to ensure that all
security requirements are met within our supply chain to comply with
this voluntary program. The program integrates physical security, cargo
security, IT security and human resource security. Sigma-Aldrich has a
solid foundation with our facility and information services security which
has enabled us to review our vendors, carriers and receiving and shipping
processes to ensure the security of our supply chain. To date, we have
surveyed over 700 international suppliers and carriers with a Supplier
Security Questionnaire which asks specific questions relating to our vendor’s
security processes. We work directly with providers that may have gaps in
their security processes to ensure the security of our transactions. Many of
our dedicated carriers such as DHL, Panalpina and Federal Express have
already received C-TPAT certification. With the assistance of our logistics
group, we seek to ensure that our non C-TPAT providers have adequate
security processes in place. Our transportation partners have implemented
new container inspection procedures that are integral parts of our new
security seal process for our full container ocean shipment imports.
Receiving C-TPAT certification provides many benefits to Sigma Aldrich:
• Strengthens our relationship with U.S. Customs and Border Protection
• Helps us comply with customer contract requirements
• Reduces Border transit times
- 4-6 times less likely to have shipments delayed for inspection
- Access to free and secure trade lanes
- Receive priority processing for customs inspections
The reduction in border inspections can be a critical factor
in reducing lead time in the supply chain by 1-3 days
which helps us expedite our customers’ orders.
With the recent completion of the Sigma-Aldrich Tier 2 Validation,
CBP (U.S. Customs and Border Patrol) has informed us that several
of our processes will be published by CBP as “Best Practices”
citing our best in class supply chain security practices.
C-TPAT certification is a US based program that compliments the AEO
(Authorized Economic Operator) certification that Sigma-Aldrich Germany
received in 2009. These certifications demonstrate our continued
commitment to ensuring the safety of the international supply chain.
In 2010 Sigma-Aldrich received approval from US
Customs for an alternative method of storage for our
U.S. Customs records. All Sigma-Aldrich import entry
documents are now stored electronically resulting in
the elimination of over 85,000 hardcopies per year.
This commitment to providing our materials for legitimate scientific
purposes and to legitimate end users is another way Sigma-Aldrich
is ensuring a safer and more secure global supply chain.
A BETTER TOMORROW IN PROGRESS
17
Safety AT SIGMA-ALDRICH
Safe operating is paramount to success at Sigma-Aldrich. Whether the topic is as simple as prevention of slips, trips and
falls or safe machine operating procedures, active training and awareness helps make for a work environment that puts
an emphasis on safety. Sigma-Aldrich is able to keep safety top of mind through our monthly safety training topics.
In 2010, we experienced:
CORPORATE SAFETY PERFORMANCE
CORPORATE SAFETY PERFORMANCE
Number of Injuries – Recordable Injury Rate (RIR)
Sigma-Aldrich Serious Injury Rate (SIR)
Serious Injury = 3 days lost work
2010 0.74
2.7
2009
2.7
2010
0.23
2.7
2009
0.16
0.28
0.79
• No fines or sanctions for non-compliance with environmental laws and regulations.
2008
• No significant fines for environmental impact from transportation and other goods and materials used in our operations.
2007
0.94
3.1
2008
2006
1.07
2.9
2007
0.21
3.2
2006
0.35
3.5
2005
0.32
2004
0.39
• No significant spills of hazardous waste
2005
• No transport, importation or treatment of hazardous waste.
2004
• No signficant fines for non-compliance with laws or regulations considering the provision and use of our products.
0.79
1.30
1.17
Sigma-Aldrich RIR
Industry Average
• No incidents of non-compliance with regulations or voluntary codes concerning the health and safety impacts of our
products and services during their life cycle.
In 2010 Sigma-Aldrich had no fatalities at our sites, no occupational disease occurrences, and a RIR of .74 and SIR of .23.
We also invested approximately $8 million worldwide in EH&S initiatives globally in 2010, in the form of system upgrades,
enhanced training, machine and workplace adjustments to ensure safe working environments.
Catching the Cause to Promote Safety
Near Miss Reports
20%
Safety is one of our main priorities at Sigma-Aldrich. To enhance our goal of maintaining a safe work
environment, we are focused on the reporting and investigation of near miss incidents as a means to identify
causes and implement preventative measures well before a injury or property accident occurs. A near miss
incident is a work related event that did not result in injury, property damage and/or environmental impact, but
had the potential to do so. We’ve reached out to our employees and shared the strategy and benefits behind
reporting near miss events to their leadership who will in turn conduct an investigation to identify root causes
and preventative measures. In addition, Environmental Health and Safety evaluated near miss reporting to
identify common trends and communicate these trends and preventative measures to our global organization.
We have experienced increased reporting on near miss events while injury accidents have declined. This
reinforces the value of including near miss incident reporting into our overall incident prevention program.
Near miss reports increased 20% in 2010, helping Sigma-Aldrich to engage our workforce on the topic of Safety and
mitigate potential risks before an incident occured.
18
SIGMA-ALDRICH® 2010 GLOBAL CITIZENSHIP REPORT
Environmental Sustainability
The power of a global environmental
management system was fully realized
this past year as Sigma-Aldrich partnered
with EnTech USB to complete the inclusion
of all Sigma-Aldrich sites worldwide. It’s
said that you can’t manage what you
don’t measure. We are now armed with
data and able to strategically review
the greatest reduction opportunities
in our vast global operations.
In this section you will find progress
reports on our GC1015 goals, the baselines
that we will be utilizing moving forward,
the projects that took place in 2010 to help
minimize that baseline and some projects
scheduled in 2011 to further address how
we will manage those baselines. We will
also release our Sigma-Aldrich Supply
Chain 7; the seven questions we will be
asking our suppliers to help guide the
initial efforts of reviewing our supply chain.
We will be revising and expanding
GC1015 Goal #6 to include more
transparent reporting on our
Greener Alternatives Products.
We’ll also take a look at what our Green
Teams have been doing around the world
and how their efforts are changing habits
in our offices. Our greatest resource is
also the source of some of the most
meaningful projects to our sustainability
efforts. As a decentralized organization the
importance of individual contributions is
paramount. This year's Global Citizenship
Award winners demonstrated a sampling
of the tremendous contributions that
our employees make everyday.
# of sites
reporting
% of facilities
reporting
98 100
*
2010
65
56
2008
55
65
2007
34
29
2006
10
9
2009
*Our 2010 Global Citizenship Report shows
an increase in CO2 emissions, decrease in
energy usage and moderate decrease in
water usage from our facilities. This change
results from the completion of including all
facilities into our utility management provider
and using actual data rather than projections
based on historical invoices that did not
provide an accurate picture of our usage.
A BETTER TOMORROW IN PROGRESS
19
GC1015 Environmental PROGRESS REPORT
WASTE
INTENSITY
EMISSIONS
INTENSITY
WATER
EFFICIENCY
ENERGY
EFFICIENCY
Our progress aggregating waste data
for 2010 was more challenging than
originally anticipated. Our intention
is to strengthen our data collection
process for waste and accelerate
recycling efforts at our main sites.
We were able to expand the utilization
of our global utility tracking system to
capture energy related Scope 1 and
Scope 2 emissions and to develop
our 2010 baseline. We have begun
the Scope 3 reporting process with
U.S. based employee business travel
and global product shipping.
Our water usage was another data
point that we were able to successfully
track in 2010. This year’s data represents
water usage at all facilities worldwide
and will represent the 2010 baseline
number to measure future progress.
Energy usage worldwide was another
successful addition to our global tracking
system. This addition will be one of the
greatest data assets for identified resource
efficiency potential. Through the data
collected in 2010 we reached our goal of
creation of the 2010 baseline number.
ACHIEVED
ACHIEVED
ACHIEVED
ACHIEVED
• Established Financial Baseline
• Established Baseline
• Established Baseline
• Established Baseline
• Limited site data for largest sites
• Scope 3* Reporting
• Efficiency Audits
• Efficiency Audits
• 100% facilities reporting
NEXT STEPS
NEXT STEPS
NEXT STEPS
NEXT STEPS
• Global Data
• Increased Scope 3
• Initiate Strategy
• Initiate Strategy
• Single Stream Expansion
• Initiate Strategy
*Scope 3: Other indirect emissions, such as the extraction and production of purchased materials and fuels, transport-related activities in vehicles not owned or controlled by the
reporting entity, electricity-related activities (e.g. Transportation and Distribution losses) not covered in Scope 2, outsourced activities, waste disposal, etc.
20
SIGMA-ALDRICH® 2010 GLOBAL CITIZENSHIP REPORT
GC1015 Goal #1 Waste Intensity
2010
20% Waste Intensity Improvement by 2015
2011
2012
2013
$1 in waste per $247 in sales
$1 in waste per $148 in manufactured sales
2014
2015
$1 in waste per $296 in sales
$1 in waste per $177 in manufactured sales
As part of our GC1015 initiative, Sigma-Aldrich is committed to a 20% improvement in its waste
generation intensity. Due to the complexities of identifying and separating our waste streams,
we are still in process of identifying waste generation tonnage. We were able to utilize our financial systems to
identify the global spend on waste and will be utilizing that data while we continue to work on capturing the
data to be able to report tonnage. Our initial intensity measure is $1 spent on waste for every $247 in sales
in 2010. Our manufacturing base measure is $1 spent on waste for every $148 in manufactured sales.
Our performance in tracking our waste generation in 2010 was identified as an area for dedicated attention in
2011. Sigma-Aldrich has several waste categories, our largest are general waste and chemical waste. Our focus
in 2011 will be eliminating 2010 data gaps and transitioning all of our waste providers into our Entech USB
tracking system.We plan to communicate our waste categories and target amounts for each of the categories.
Sigma-Aldrich Joins the U.S. EPA Wastewise Program
WasteWise is a voluntary program administered by the US EPA which targets the reduction of waste generation in
all waste streams. Sites periodically self-report their waste generation and elaborate on means by which they have
been able to achieve these waste reductions. We were approached by the US EPA for participation as a result of our
positive reputation with the agency. All Sigma-Aldrich U.S. sites are registering with the EPA and will begin reporting.
We see benefits in identifying/implementing additional methods to reduce waste generation, furthering our continued
partnership with the EPA and customers, and supporting our goal of improving our waste generation intensity.
1
Sigma-Aldrich Green Team Members helped collect trash at the 2010 Trash Bash Mississippi River Clean-Up project.
A BETTER TOMORROW IN PROGRESS
21
Recycling Initiatives at Sigma-AldricH Headquarters in St. Louis
59,600
lbs. of paper
384,000
lbs. of cardboard
239
polystyrene coolers
287
lbs. mixed packaging
SAVED
7,973
trees
22
178,224
gallons of oil
SIGMA-ALDRICH® 2010 GLOBAL CITIZENSHIP REPORT
283,070
gallons of water
2,030
lbs. cans & bottles
WASTE Continued
Set at the base of the Alps in Buchs, Switzerland, our facility is helping to power the city utilizing
our waste. The local incineration plant is helping Sigma-Aldrich reduce waste that would
otherwise be sent to a landfill. This extraordinary cogeneration process is outlined below.
“The local waste incineration plant (KVA) is an important business partner for Sigma-Aldrich in Buchs. Within close
proximity to our site, KVA is a reliable supplier of process steam and district heating for our facilities. We also have a
strong partnership regarding sustainability and environmental protection. Sigma-Aldrich delivers waste gas from our
manufacturing facilities and other diverse waste products to the KVA. These are incinerated together with other public
and industrial waste at the KVA to generate various forms of energy, like electricity, CO2-neutral steam and district
heating. This energy is then distributed to private, municipal and industrial consumers, including Sigma-Aldrich. The
partnership with the KVA is a perfect symbiosis for us: From waste to energy for the benefit of the environment.”
Josef Libel, Manager, EH&S, Buchs, Switzerland
Exhaust Air Treatment and Waste Disposal at Sigma-Aldrich in Buchs, Switzerland in Combination with Public Waste Incineration Plant
Pre-Washing
Main-Washing
Pre washed exhaust gas
Exhaust gas from point sources in production
H2SO4
30%ig
Exhaust gas
from reactors
and centrifuges
NaOH
30%ig
Exhaust gas from vacuum pumps
H2SO4
30%ig
Sigma-Aldrich Waste Water
Treatment Plant
Energy from KVA for production and
heating purposes (long-distance
heating for buildings and process
steam for production purposes
as well as electricity indirectly)
ENERGY FOR
Sigma-Aldrich FACILITY
H2SO4
30%ig
Water
Deionized
Sigma-Aldrich Waste Water
Treatment Plant
Waste from Sigma- Aldrich Buchs:
e.g. domestic waste, certain dangerous waste
Public Waste Incineration Plant (KVA): KVA provides energy (electricity,
steam, heating) out of incineration of public waste and exhaust
gas from SIAL to private households as well as to Sigma-Aldrich.
ENERGY FOR THE
CITY OF BUCHS
EFFICIENT USE OF WASTE
A BETTER TOMORROW IN PROGRESS
Pipe with pre-cleaned exhaust
gas from Sigma-Aldrich to public
waste incineration plant
ELIMINATE NEED TO SEND
WASTE TO LANDFILL
23
GC1015 Goal #2 EMISSIONS INTENSITY
2010
2011
2012
2013
1 tonne of CO2 per $10,747 in sales
1 tonne of CO2 per $6,448 in manufactured sales
2014
2015
1 tonne of CO2 per $12,896 in sales
1 tonne of CO2 per $7,738 in manufactured sales
Total CO2 Scope 1 & 2 Emissions – 211,315 metric tonnes
As part of our GC1015 initiative, Sigma-Aldrich is
committed to a 20% improvement in its emissions intensity
over the next five years. Part of that commitment required the creation of a
baseline to measure our progress. Our 2010 intensity measure is 211,315
metric tonnes of CO2, based on 2010 consolidated sales of $2.271(B),
which equals one tonne of carbon for every $10,747 in sales. This metric
based on sales will be our baseline moving forward. We’ll also be tracking
the emissions data relative to Sigma-Aldrich manufactured product,
representing a baseline of one tonne of carbon for every $6,448 in sales.
As part of our commitment to increase transparency of our progress,
we plan to unveil a real-time Carbon Footprint monitor on our website,
which is launching simultaneously with this year's report. This tool will
allow users to see how we’re doing. As we experience changes in our
business through acquisitions or divestures we will be providing baseline
adjustments and clearly identifying these changes, as they happen.
A more in-depth look at reporting of emissions led us to begin work
on the task of tackling Scope 3 emission sources. While we are only
beginning to report our Scope 3 emissions, we feel it is a step in the
right direction. By sharing this information within our organization, we
set the stage to dive deeper and begin to untangle the carbon chain
from the numerous Scope 3 sources. This year we are sharing Scope 3
emissions related to our U.S. based employee travel and our worldwide
shipping operations, the latter of which is a significant step.
24
SCOPE 3 EMISSIONS
US BASED EMPLOYEE TRAVEL
(air and vehicle rental)
2,480 tonnes CO2
SHIPPING EMISSIONS
82,293 tonnes CO2*
TOTAL
84,773 tonnes CO2
*Our 2010 Shipping Emissions number represents 67% of our
emissions related to outbound product shipments that were provided
by our various suppliers or offices around the world.
While we understand the need to continue down this path, and more
importantly the collective benefits of addressing supply chain emissions,
we realize that this will be a daunting task and have yet to fully understand
the ability of our suppliers to provide this data for our vast supply chain.
SIGMA-ALDRICH® 2010 GLOBAL CITIZENSHIP REPORT
CRC
In 2010, Sigma-Aldrich completed its registration under the CRC Energy
Efficiency Scheme (formerly known as the Carbon Reduction Commitment).
The CRC began as UK government legislation to create a carbon cap and
trade market, which was then converted into a tax in 2010. Organizations are
eligible for CRC if they (and their subsidiaries) have at least one half-hourly
electricity meter (HHM) settled on the half-hourly market. Organizations
that consumed more than 6,000 megawatt-hours (MWh) per year of half
hourly metered electricity during 2008 qualify for full participation and must
register with the Environment Agency, who is the administrator for the plan .
CDP
For the past four years Sigma-Aldrich has reported to the Carbon
Disclosure Project (CDP) regarding its sustainability performance and
initiatives. We plan to continue reporting and look to expand the amount
of information we are able to report. We’ve seen significant gains in our
2009 disclosure score and aim to increase that over the coming years.
We have begun work to further understand reduction opportunities and
will be working to mitigate our risk to the regulation in the coming years.
GC1015 Goal #3 WATER USE EFFICIENCY
2010
10% Water Use Efficiency Improvement by 2015
2011
2012
2013
1 m3 water per $1,259 in sales
1 m3 water per $755 in manufactured sales
2015
2014
1 m3 water per $1,385 in sales
1 m3 water per $831 in manufactured sales
Total Water Use – 1,803,786 m3
As part of our GC1015 initiative,
Sigma-Aldrich committed to a 10%
improvement in our water use efficiency over the
next five years. Part of the commitment required the
creation of a baseline to measure our progress. Our
based measure will be 1.8 M m3 of water, based
on 2010 consolidated sales of $2.271(B), which
equals 1 m3 of water for every $1,259 in sales.
This sales based metric will be our target moving
forward. We’ll also be tracking water data relative to
Sigma-Aldrich manufactured product, representing a
baseline of 1 m3 of water for every $755 in sales.
Projects to increase
efficiency
Sigma-Aldrich was the focus of an article on water
usage in the St. Louis Post Dispatch, August 22, 2010.
As one of the top five users of water in the City of St.
Louis, the article focused on a perspective that is not
traditionally heard today – how conserving resources
is costing the rest of the population. As we strive to
reduce our consumption, that action has an impact
on the city infrastructure and city residents. In a region
that is situated at the confluence of the Missouri and
Mississippi Rivers, it is at times hard to fully comprehend
the idea of water scarcity. We are preparing for a day
when water is priced at its true value instead of the price
point that we have been able to purchase it and receives
the same attention that carbon is currently receiving.
During 2010 several projects helped us reduce our water
usage. Some of those projects included reduction in lawn
irrigation, maximizing deionized water yields, increased
management of cooling towers and refrigeration systems
that allowed our St. Louis site to use less total water
than 2008 and only slightly more than 2009, despite
2010 being the 3rd warmest spring and 4th warmest
summer in St. Louis weather history* (1869 - 2010).
*data source from NOAA, Climatology & Weather Records
Our organizational structure helps our individual
sites take control and work towards those reduction
opportunities that they have identified. In St. Louis
we are targeting a 5% reduction in water usage
in 2011. To achieve that goal, Engineering and
Maintenance are focused on capital and internal
expense projects designed to reduce consumption.
Efforts include upgrading cooling tower systems,
reductions in lawn irrigation, elimination of wasteful
"one-pass" water and education of employees.
In 2010, Sigma-Aldrich was recognized by the Missouri
Water Environment Association for its continued work
in the area of wastewater management. Sigma-Aldrich
was recognized with a Gold Industrial Wastewater
Pretreatment Compliance Award for our Cherokee
facility and a Silver Industrial Wastewater Pretreatment
Compliance Award for our DeKalb facility, both in St.
Louis. To qualify for the Gold Award, a facility must be
in complete compliance with all wastewater discharge
and reporting requirements, must have an industrial
wastewater treatment process or pollution prevention
program, and must have a history of good relations with
the nominating city or sewer district. This recognition
is another confirmation that our efforts are working.
to the economic vitality of the region. Neither the
Milwaukee Metropolitan Sewerage District no
the Wisconsin Department of Natural Resources
identified violations at Sigma-Aldrich in 2010.
ST. LOUIS WATER USAGE
In millions of gallons
2010
2.50
2009
2.35
2008
2.80
2007
3.25
2006
3.30
Sigma-Aldrich was also recognized by the Milwaukee
Metropolitan Sewerage District as a Significant
Industrial User Honor Roll member in 2010. The
Honor Roll recognizes industrial facilities for their
efforts to protect the environment while contributing
A BETTER TOMORROW IN PROGRESS
25
GC1015 Goal #4 Energy Use Efficiency
2010
10% Improvement in Energy Use Efficiency by 2015
2011
2012
2013
1 kWh per $10.84 in sales
1 kWh per $6.51 in manufactured sales
As part of our GC1015 initiative, Sigma-Aldrich committed
to a 10% improvement in our energy use efficiency over the
next five years. Part of the commitment required the creation of a baseline
to measure our progress. Our intensity based measure will be just under
210m kWh of electricity, based on 2010 consolidated sales of $2.271(B),
which equals 1 kWh of electricity for every $10.84 in sales. This sales based
metric will be our target moving forward. We’ll also be tracking the energy
use data relative to Sigma-Aldrich manufactured product, representing a
baseline of 1 kWh of electricity for every $6.51 in manufactured sales.
Our natural gas measure will be 11.6m therms of natural gas, based
on sales of $2.271(B), which equals 1 therm of natural gas for every
$196.38 in sales. This metric based on 2010 consolidated sales will be
our target moving forward. We’ll also be tracking the energy use data
relative to Sigma-Aldrich manufactured product, representing a baseline
of one therm of natural gas for every $117.83 in manufactured sales.
2014
2015
1 kWh per $11.92 in sales
1 kWh per $7.16 in manufactured sales
TOTAL ENERGY USE
(main sources)
209,452,624 kWh electricity
1 kWh per $10.84 in sales
1 kWh per $6.51 in manufactured sales
11,564,493 therms natural gas
1 therm per $196.38 in sales
1 therm per $117.83 in manufactured sales
kWh LAMP Retrofit Opportunity
Comparison – ewing facility
7,548 lamps (bulbs)
T12 – T8 savings
60 kWh/hr
(every hour that all lights are on)
=
720 kWh/day
=
216,000 kWh/year
(assuming 300 days with all lights active)
26
SIGMA-ALDRICH® 2010 GLOBAL CITIZENSHIP REPORT
We’ve begun the process of undertaking energy
efficiency projects around the world. Some of those
projects include lighting efficiency upgrades, like those
in our facilities in Sheboygan Falls, Wisconsin. Our
labs were outfitted with new bulbs and ballasts that
reduced the wattage required to light our facilities. In
this case, bulb life was extended three to five years and
wattage requirements were reduced from 250 watt
HPS bulbs to 100 watt induction bulbs. In another lab,
120 watt bulbs were replaced with 24 watt bulbs.
We’ve also begun to review our HVAC systems.
Improvement examples include efficiency
upgrades to a heating unit in Sheboygan Falls.
The existing system was replaced with a higher
efficiency unit that helped improve combustion
efficiency from 86 percent to 92 percent.
At our Teutonia facility in Milwaukee, Wisconsin,
we’ve begun the process of setting back air and
water volumes on lab and packaging scrubbers
when spaces are unoccupied and are currently
tracking the efficiency opportunities
Milwaukee Retrofit Projects: How We did it at SIGMA-Aldrich
PROJECT
Teutonia facility
Annual demand saved
Annual kWh saved
Retrofitted (247) Metal Halide light
fixtures in labs and weigh rooms
with induction technology
26.8 kW
121,805
Retrofitted Metal Halide light fixtures in
hallways with induction technology
3.5 kW
27.4 kW
22,002
120,008
3.2 kW
2.6 kW
14,226
12,104
63.5 kW
290,145
Retrofitted or replaced (200) exterior
Metal Halide and High Pressure Sodium
fixtures with induction technology
EMMBER FACILITY
Replaced (12) exterior Metal Halide
flood lights with induction technology
Retrofitted Metal halide fixtures in
labs with induction technology
Milwaukee Total
We also began looking at the air flow in our labs. While
reducing the number of air turns per hour is the easiest
way to increase efficiency, the safety of our employees
is our most important concern. After reviewing the air
turns, our engineering and safety teams determined
that we would be able to reduce the turns from 40 per
hour to just above 30 turns per hour. This represented
a fuel and electrical energy savings of $9,000 per year.
A BETTER TOMORROW IN PROGRESS
27
GC1015 Goal #5 Supply Chain Transparency
2010
Create questionnaire
As part of our GC1015 Initiative,
Sigma-Aldrich committed to
enhanced transparency of our supply chain. Over the
past year there has been increased interest from our
customer base related to social and environmental
monitoring of our suppliers. We were able to inform
our customers of our intent and timeline for progress.
Our goal stated that we would have our Top 100
suppliers surveyed by the end of 2012, with the next
200 surveyed by the end of 2015. We are on track to
meet our outlined dates and may be able to accelerate
our timetable for our initial Top 100 suppliers.Through
a partnership with Procurement, Quality Assurance
and the Sustainable Business Development Office, we
are getting systems set-up to expedite the process
and automate as much of the survey as possible to
facilitate data aggregation and streamlined reporting.
We’re proud to share firsthand with you our SA7. This
question set is meant to begin a dialogue between
Sigma-Aldrich and our valuable supply chain partners.
2011
2012
2013
Top 100 surveyed
2015
Top 200 surveyed
Sigma-Aldrich7 (SA7) Sustainability Supply Chain Questionnaire
1. Does your company track and report energy use and carbon footprint?
a) If yes, what is your carbon footprint, your total energy use by source,
carbon footprint and energy use related to products purchased by
Sigma-Aldrich? Have you established a plan to reduce consumption?
b)If no, have you developed a plan to begin measurement to
collect this data and identified reduction targets?
4. Do you have published guidelines available regarding manufacturing and/
or procurement procedures related to environmental compliance, supply chain
components and employment practices for the products you produce and/or
supply (i.e. child labor, corruption, discrimination, forced labor and human rights).
2. Does your company report total solid waste generated at your facilities?
a) If yes, what is your total tonnage of solid waste generated and
have you established a plan to reduce waste generation?
b)If no, have you developed a plan to begin measurement to
collect this data and identified reduction targets?
6. Do you have a corporate policy regarding Corporate
Social Responsibility? If yes, please attach.
5. Are your facilities or products you offer certified by regulatory bodies?
7. Does your company have any established community involvement/
social contribution component for the locations that you operate in?
3. Does your company report total water use at your facilities?
a) If yes, what is your total water use for the most recent year, your
water use related to products purchased by Sigma-Aldrich and
have you established a plan to reduce consumption?
b)If no, have you developed a plan to begin measurement to
collect this data and identified reduction targets?
We realize that all of our vendors may not have this data available and we
are looking forward to working with our partners in a collaborative manner
to address supply chain resource usage. We want to be able to ensure our
28
2014
SIGMA-ALDRICH® 2010 GLOBAL CITIZENSHIP REPORT
customers that our supply chain is not only sustainable, but also responsible
and this is another step we are taking to deliver on this promise.
PROCUREMENT
100%
97.5%
95%
SEP 10
OCT 10
NOV 10
DEC 10
SEP 10
OCT 10
NOV 10
DEC 10
Actual
products risk mitigated
AUG 10
JUL 10
JUN 10
MAY 10
APR 10
90%
MAR 10
92.5%
FEB 10
Goal
ON-TIME VENDORS
100%
90%
80%
70%
Actual
AUG 10
JUL 10
MAY 10
APR 10
MAR 10
FEB 10
50%
JAN 10
60%
JUN 10
250
With a myriad of potential disruptions to our global supply chain we have worked to
create risk mitigation plans for our top 250 products. Those plans were completed at
the end of 2009 and we continued to monitor and adjust our plans moving forward.
QUALITY
JAN 10
Our Global Procurement Initiative is designed to ensure that our suppliers provide material and services that
meet or exceed our expectations in the areas of quality and on-time performance. Our shared expectation is
that all of our suppliers and contractors have the appropriate safety protection and environmental management
strategies in place to appropriately protect their employees. Through establishing relationships with our
suppliers, we look to build trust and a climate that encourages open communication from both sides. We
continued to track how our suppliers are doing, putting metrics in place to monitor and improve Quality and
On-time performance for all of our suppliers. We continued to improve our performance and have expanded
our measures. This year marked the first time early deliveries were considered failures in our Quality numbers.
Through strategic planning of deliveries we are able to utilize the most efficient mode of transportation.
Goal
We share an expectation of mutual compliance with all local, state,national and international regulations with
our suppliers. Our worldwide presence demands that potential compliance gaps be identified immediately
and appropriate actions be taken. To ensure the quality of our supply chain, select suppliers are assessed
through on-site audits under a comprehensive supplier qualification program using risk-based assessments
to validate and ensure quality of product, continuity of supply and acceptable manufacturing practices.
A BETTER TOMORROW IN PROGRESS
29
SUPPLY CHAIN
At Sigma-Aldrich, we see our Supply Chain as one of the areas with the highest potential impact
on our sustainability efforts. Each year we look for ways to streamline the Supply Chain, while also
identifying ways to reduce our environmental impact. Many of the initiatives take multiple years to
implement due to their complexity, so you may recognize some of our continuing efforts.
Reduced Carbon Emissions through
Transportation Initiatives
Dual Packaging
While we made a vast improvement by shipping product via ocean, we thought it would
be even better to eliminate freight completely. During 2010, we made significant changes
to the supply chain to eliminate freight by applying the dual packaging model.
We focused on the fastest moving, larger pack materials that were being packed in one location for
worldwide demand. Where possible, we are now packing these materials in both Europe and the
U.S. to avoid shipping the material between the two regions. The changes we made during 2010
have eliminated 200 tonnes of air freight. When possible, our procurement teams are sourcing
bulk materials within the regions where they are sold to avoid any transatlantic freight.
During 2010, we made some significant changes to the supply chain to reduce our freight
costs and to minimize the carbon emissions from transport of our goods.
Two of the most significant changes were the move from air to ocean transportation and the dual packaging initiative.
Air to ocean
Our challenge is to ensure timely service to our customers across our broad range of materials.
Using ocean freight extends lead times and makes that challenge harder. However, ocean freight
emits 10-40g of CO2 per tonne of freight and per km of distance compared to air freight at 500g.
So every kg that we switch from air to ocean is reducing our impact by an average of 95%.
To try to acheive the service level from air freight, but at the price and lower carbon impact of ocean freight,
we have developed functionality in our replenishment systems to dynamically switch between air and ocean
shipping. This allows us to select inventory materials for ocean freight shipping, review the sales trends
and forecasts daily and switch a portion to air freight if there is an unexpected urgent requirement. This
continues while the goods are in transit, if there is an urgent requirement then the replenishment system
will calculate how much we need by air to keep us in stock until the ocean freight material arrives. This
functionality has enabled us to ship more products via ocean freight without risking our service levels.
In 2010, we experienced an additional benefit from the increased robust nature of our supply
chain. The May eruption of the Eyjafjallajökull volcano in Iceland resulted in the cancellation of
flights to and from most of Europe for several weeks. By having goods already in transit via ocean,
we were able to mitigate the risk of backorders in the event of similar disruptions.
Like the Air to Ocean project, the Dual Packaging Initiative has the added benefit of making our supply chain
more robust because we have two locations that are able to package the material and in many cases we have
separate sources of bulk material. In the event of problems in either region, we can support from the other one.
We estimate that the combination of these two initiatives can reduce the Company’s carbon emissions by nearly
1,000 tonnes annually.
Reduced Packaging through Virtual Boxing
Our distribution and I/S departments built a global solution to predetermine what products and
quantities can ship together, thereby eliminating excess shipping and unnecessary packaging. This
project was completed in early 2011 and has reduced shipping boxes shipped by 7%.
We began an effort in the U.S. to improve packaging that resulted in the reduction of more than
24,000 cans and 110,000 boxes. In 2011, we plan to continue the effort and remove approximately
250,000 boxes per year and about 100,000 cans per year from finished goods packaging.
Asset Reuse, Resale or Donate
With just under 100 sites around the world, Sigma-Aldrich has an extremely vast and deep asset base. Our
annual capital expenditures make up a significant amount of our total spend. As our business needs change, our
ability to adapt those capital investments creates an opportunity to practice the reduce, reuse, recycle model.
Sigma-Aldrich entered into an agreement with EquipNet in 2010, an internet based asset
management company, that will provide us with an online marketplace to give our facilities and
engineering teams access to an inventory of our available assets so they can transfer these assets
to other sites, sell them to others who will use them or donate them as applicable.
CO2 comparison by transit method
Beneficial reuse of solvents
500g CO2
per tonne of freight
and per km of distance
30
vs. 10-40g CO2
Sigma-Aldrich has been utilizing a beneficial reuse program for many hazardous waste streams for a number
of years. This program gives our waste “another life” thereby allowing Sigma-Aldrich to reduce waste
generation and comply with federal mandates. Our waste minimization program conserves valuable resources,
reduces environmental harm, and provides economical benefits to both our Company and communities.
per tonne of freight
and per km of distance
SIGMA-ALDRICH® 2010 GLOBAL CITIZENSHIP REPORT
GREEN TEAMS
One of the most influential and important sources of continuous improvement on the sustainability front comes from
the work of our employees on our growing Green Teams around the world. Below you’ll find examples of what they've
done and the projects that they’re working on in an effort to make Sigma-Aldrich a more sustainable workplace.
Sydney Green Team launches GC1015 on Earth Day
Green Commitments
The company sponsored each employee who walked, cycled, took public transport or car pooled to and from work.
AUSTRALIA
Sustainability Quiz
The Australian Green Team organized three main events in 2010 to support Global Citizenship:
Testing employees’ knowledge of Sustainability and Earth Day related topics.
1.Earth Day Celebration featuring a general clean up and a BBQ.
2.National Tree Day on 1 August, where several employees helped the local council plant trees in a newly established reserve.
3.Planet Ark National Recycling Week, returning paper from files to the recycling bin and other materials back into the
appropriate recycling streams where 40 employees contributed over 30 volunteer hours to those Green Initiatives.
At our Australian office in Castle Hill, the use of paper as packaging fill is now the norm helping to nearly eliminate
the use of polystyrene peanuts. We’ve also been able to reuse or recycle all polystyrene from incoming shipments.
2010 Australian Recycling Totals
500kg of polystyrene
22,000kgof cardboard
800kgof mixed materials
3,500kgof glass bottles
Clean up
Our employees conducted a silent auction for office furniture that was no longer required,
while teams collected and appropriately disposed any unwanted items in the office and
warehouse areas while others helped by cleaning up rubbish around our building.
A BBQ lunch was provided by the Lions Club and the day was concluded by launching the Global
Citizenship Initiative (GC1015) and the 2010 Global Citizenship report. Nearly $500 was raised
from the furniture auction and our employees’ green commitments. All proceeds were donated
to the Cancer Society, an organization we have been supporting for many years.
St. Louis
The St. Louis Green Team continued its forward progress in 2010. Membership increased to 60 active and
strategic members. We continue to publish our quarterly newsletter, keeping employees up to date on the
teams' current projects and providing educational information on how employees can embrace sustainability
in the office and at home. Our St. Louis team focused on our Single-Stream recycling pilot program and efforts
to minimize the use of Styrofoam cups. Throughout the year we offered several lunch and learn opportunities
for Sigma-Aldrich employees to learn about up and coming green technologies and sustainable strategies
for their everday lives. We also hosted multiple recycling events specifically for electronics, polystyrene
materials and clothing. These activities enabled us to donate hundreds of pounds of clothing to the Salvation
Army, Electronics to Web Innovations & Technology Services and Styrofoam to Worth Industries.
In 2011, we plan to further increase our resource and involvement base. We hope to have Single Stream Recycling
in place all St. Louis buildings by the end of the year. Our other major project will be the removal of all polystyrene
cups from break rooms, working to move our employees to more sustainable beverage consumption at work.
The team itself will also try a new arrangement focusing specifically on their respective buildings. With this, we
look to encourage involvement and increase projects within the specific buildings where our members work. We’ll
be updating our progress throughout the year on our website and invite you to take a look at our progress.
The Green Team also completed a site waste management plan, capturing
waste streams and methods for waste collection and disposal.
Sigma-Aldrich has joined the St. Louis Regional Chamber and
Growth Association (RCGA) Green Business Challenge. This
challenges St. Louis companies to become more sustainable.
It also encourages local businesses to partner with each other
to find new green practices to implement at their companies.
A BETTER TOMORROW IN PROGRESS
31
Single Stream Recycling
The Green Team in St. Louis was a major driver behind the change in our waste disposal policies. Through
their leadership, Single Stream Recycling was introduced to our first facility in 2010. The introduction of
this waste disposal change was a good case study in the challenges of changing everyday behaviors.
Lessons learned included:
•People like convenience
•No one wants to carry a tissue to a central disposal location
•Clear, upfront communication and understanding are keys to success
•Engaging employees early helps ease the transition to different waste disposal habits
How Single Stream
Recycling Works
Single Stream Recycling is meant to reduce the difficulty
of recycling by taking sorting out of the mix. All recyclables
can be placed in the same container, while any organic
matter, such as food scraps or tissues would be placed
in regular waste containers. Recyclables are then sorted
at their final destination so they can be reutilized.
In 2011, all St. Louis based facilities are expected to be Single Streamed and we look forward to reporting our
progress and what should be a dramatic increase in recycling and decrease in waste destined for the landfill.
Green Team Members from our Singapore Office
Singapore
In 2010, we welcomed the Singapore Green Team alongside our teams in St. Louis and Castle Hill,
Australia. The Singapore Green Team began in October 2010 and focused on healthy living, reconnecting
with nature and team building. The team organized a cycling trip at Pulau Ubin. This granite island
is home to Singapore’s last villages or “Kampongs.” A stroll through Pulau Ubin takes visitors back
to Singapore in the 1960s where the villagers of the island still rely on wells for water.
After arriving, the group was divided into teams and each team received a map of Pulau Ubin and a clue leading
to their respective checkpoints. The teams had to complete various tasks. This process enabled teamwork and also
helped team members understand one another’s communication style, which is important for effective message
delivery. Our team was able to pair an environmental activity, team building and practicing essential business skills.
32
SIGMA-ALDRICH® 2010 GLOBAL CITIZENSHIP REPORT
GREENER CHEMISTRY
GC1015 Goal #6 GREENER ALTERNATIVE PRODUCTS
2010
2011
2012
2013
2,563 Greener Alternative Products
In 2010, we launched a Greener Alternatives Product goal.
Through the course of the year, and with the evolution
of our sustainability organization, we realized that our commitment in the
area of Green Chemistry could be enhanced. Our goal outlined aggressive
targets to address our internal sustainability processes, but one of our largest
opportunities is beginning to address our products and our ability to provide
our customers with sustainable and greener alternatives for their research.
We launched a Greener Alternatives portal on our website several years
ago, but now plan to expand its reach. In 2011, Sigma-Aldrich is preparing
to undertake a project providing an unprecedented level of transparency
explaining why products are categorized as Greener Alternatives. We plan on
providing clear insight into why a product is considered green and detailed
information backing that reasoning. We’ll be using the 12 Principles of
Green Chemistry as our base and plan to roll out the first products under
this new model in Q4 of 2011, with the full 2,500-plus products complete
by the end of 2012. We’re confident that this transparency will increase
the benefits for us as an organization as well as our customers’ research.
2015
2014
25% increase in sales of our 2,563
Greener Alternative Products
Greener Chemistry in action:
Preparation of Nitrosobenzene (Steinheim, germany)
Sigma-Aldrich produces 6-10 kg of Nitrosobenzene per year. Until now, Nitrosobenzene was produced by a reduction of Nitrobenzene with Zn to Phenylhdroxylamine followed by reoxidation with FeCl3. This synthesis has been modified to a one-stage oxidation process starting from Aniline using H2O2 as an oxidizer.
•Excess Zn and FeCl3 has been substituted by catalytical amounts of Na2WO4 and H2O2 as primary oxidizer.
•Previously, one kg product generates about 20 kg pyrophoric Zn-waste. Due to the catalytic approach of the new
procedure no heavy metal waste is accrued and the amount of waste water can be reduced by 40%.
•It was necessary to open the vessel, adding Zn to the reaction mixture. After the reaction, the remaining
Zn has to be removed by filtration, a high risk due to the pyrophoric nature.
•It was necessary to purify the crude product by steam distillation into an open bucket. The steam distillation is an issue as the
product tends to solidify within the glassware. With the new procedure the vessel will be charged with a mixture of Aniline,
catalyst and H2O2 will be added using the addition funnel. Furthermore, the steam distillation is no longer necessary.
•The vessel has to be purified by using mutagnenous DMF after the steam-distillation which is no longer necessary.
Our 2010 baseline is composed of 2,563 products
in our Greener Alternatives Product line.
•The yield has been approved from 18% to 50%.
We plan further additions to this goal over the next four years.
We have not forgotten our initial commitment of increasing sales
of these products and are working toward meeting that goal,
but we firmly feel that providing transparency is a key part of
increasing the adoption of these products in our markets.
•The new process avoids the purification by recrystallization from petrol ether, delivering an already pure product.
•The reaction temperature of 80°C was reduced to room temperature.
Adapting the reaction process for producing Nitrosobenzene according to the principles of green chemistry was fully successful.
Following the new procedure, we're able to save energy, prevent waste and minimize the potential for accidents.
A BETTER TOMORROW IN PROGRESS
33
Improving the Manufacturing Process of
Acetylcholine Chloride (Buchs, SWITZERLAND)
4-Tert-ButylPhthaloniotrile, 98% (Bangalore, INDIA)
Acetylcholine chloride is produced from choline chloride at the Buchs site in Switzerland. The product yield
varied between 20 to 35%. Much higher yields should be achievable because the chemical conversion is
almost quantitative. A closer investigation of the process revealed that the water content of choline chloride
and the removal of 2-butanone (solvent) at the end of the process cause the low and variable yield.
4-Tertbutylphthalonitrile is conventionally synthesized in six steps from 4-tertbutyl xylene. It involves a reaction with
KMnO4, removal of MnO2 (solid hazardous metallic waste) and the use of several solvents and reagents like pyridine,
acetic anhydride, thionyl chloride, ammonia etc. There is a consistent problem with low and inconsistent yields.
After implementation of changes based on our findings the isolated yield was raised to 60%. Based on an annual
demand of 50 kg acetylcholine chloride amount of solvent waste is reduced by approximately 200 kg per year
Old Process – Six steps – Overall yield – 25%
tert-butyl xylene
(R) Sodium-2,3-dihydroxy isovalerate hydrate and (S) Sodium2,3-dihydroxy isovalerate hydrate (Bangalore, INDIA)
R and S isomers of dihydroxy isovalerate were required in bulk quantities. The current method consisted
of separating enantiomer R from the racemic mixture by resolution with quinine with repeated
crystallization. The yields were very low and required large quantities of hazardous solvents.
1) Quinine
Racemic mix of R&S-Dihydroxyisovalerate
10% R-Dihydroxyisovalerate
2) Ethanol
New Process – An improved asymmetric process was developed which used chiral
reagents to generate the finished product in high yields with low solvent consumption.
Both the enantiomers were prepared using the same methodology.
Ad mix alpha
3,3’-dimethylacrylic acid
60% R-Dihydroxyisovalerate
Ad mix alpha
3,3’-dimethylacrylic acid
65% S-Dihydroxyisovalerate
Overall, there was a 40-times solvent reduction compared to the original process. We were able
to eliminate the handling of toxic reagents like quinine in the new improved process. Waste
was also reduced several times including the generation of undesired isomers and we were
able to make the process scalable and kilogram quantity can now be manufactured.
34
tert butylphthalic acid
tert butylphthalamide
SOCl2
Ac2O
tert butylphthalic anhydride
tert butylphthalonitrile
New Process – Single step from 3.4 – dibromo tert butylbenzene. Yield – 62%
Old Process
KMnO4
Zn(CN)2/ Pd(OAc)2
Dibromo tert butylbenzene
tert butyl phthalonitrile
The improved process uses ligand catalysed cyanation to produce the final product in a single step from a different
starting material which itself is easily prepared.
The modified process provides increased atom efficiency improved to 49% from 29% with 50% less solvent and reagent
usage, waste reduction of 50% and a batch cycle time reduction of 50%.
Process Improvements for Alprazolam and
Pregnanetriol (JeruSalem, Israel)
Our team in Israel began to review the production of Alprazolam and Pregnanetriol to see if these products could
be made greener, safer, quicker, and more effectively by reducing waste, energy demand, net work time, and costs.
Due to improvements in the work-up procedures, our scientists were able to replace hazardous reagents and
solvents such as anhydrous hydrazine and Benzene with less hazardous ones. They were also able to eliminate the
chromatographic purification from the processes resulting in the removal of 100L (-80%) of organic solvents, 6kg
of silica gel, and net work time of 12 days (-35%), while changing the yields by +30% and 0%, respectively.
Process Improvement for Tunicamycin
Purification (JeruSalem, Israel)
In the development of new Tunicamycin purification protocol, we were able to make a new cost effective and
environmentally friendly production protocol. The new method generated savings of $15,000 (46%) in production
costs of Tunicamycin. The new method generates two times more Tunicamycin (improvement from 20g to 40g), while
using 70 % less volatile organic solvents (ethyl acetate and methanol 33L vs. 105L) and 84 % less water (8L vs.
50L). In addition, we totally eliminated the chromatographic purification step, which saved 5kg of RP-18 silica gel.
SIGMA-ALDRICH® 2010 GLOBAL CITIZENSHIP REPORT
The leading edge of technology
Our SAFC Hitech business is increasing access to research materials to make energy efficiency
possible. One important area is our metalorganic precursors (TMG, TMI, TMA, TEG and Cp2Mg) in the
manufacture of high-brightness light emitting diodes (LED). LEDs are targeting architectural lighting
where they offer significant energy consumption savings versus incandescent lighting and to a lesser
extent fluorescent. LEDs are also green alternatives to fluorescent as the latter contains mercury and
is a disposal hazard to the environment. 19% of the world’s energy consumption is used in lighting.
Our technology to reduce energy requirements for lighting confirms our commitment as a premier
provider of innovative research tools and our role as a engaged Global Corporate Citizen.
Sigma-Aldrich is proud to partner with IQE, the leading global supplier of advanced semiconductor
wafers, with products that cover a diverse range of high-tech applications, supported by
an innovative outsourced foundry services portfolio that allows the Group to provide a
"one stop shop" for the wafer needs of the world’s leading semiconductor manufacturers.
Metal organic precursors are key source materials used in IQE’s advanced crystal growth processes to
manufacture and supply bespoke semiconductor “epiwafers” to the major chip manufacturing companies, who
then use these wafers to make the chips which form the key components of virtually all high technology systems.
Sigma-Aldrich helps IQE to enable technology for a wide range
of wireless, optoelectronic and electronic applications.
Wireless applications enabled by IQE’s epiwafers are ubiquitous and include the radio frequency
(RF) chips used to communicate between base stations and handsets, smartphones, tablets and
other wireless enabled devices. Wireless communications include 3G, 4G, LTE, WiFi, WiMax, WiBro
and Bluetooth. The ultra high frequency capabilities of IQE’s products also provide the enabling
technology in satellite communications and global position systems (GPS) and are helping to find
new applications in aerospace and automotive technologies such as collision avoidance.
Optoelectronics is another rapidly growing area with a wide range of new and emerging applications
that is dependent on epiwafer technologies. Current optoelectronic applications include laser and receiver
devices for fibre optic communications, laser printers, scanners, CD, DVD and BluRay systems.
Optical communications is also emerging as the next generation “connector” for high speed communications
between computers, peripherals and high-end consumer products. New applications such as finger
navigation and laser projection also utilize the unique optoelectronic properties of epiwafers, which also
enable energy efficient applications such as LEDs and Concentrator photovoltaic (CPV) solar cells.
Light emitting diodes (LEDs) are found in many walks of life including signs, large area displays, backlights
for handsets, smart phones, monitors and televisions. Ultra-high brightness LEDs are also emerging
as a primary alternative to incandescent and compact fluorescent lighting (CFL), while CPV solar cells
offer the opportunity of cost effective, reliable and highly efficient, utility scale solar energy.
A BETTER TOMORROW IN PROGRESS
35
Sage /Animal Policy
™
In March 2010, Sigma-Aldrich expanded the capabilities of our SAGE Labs with the acquisition of Ace
Animals, Inc., in Berks County, Pennsylvania. This acquisition helped expand the capabilities and reach of
one of the most innovative technologies of our time. The acquisition will enhance SAGE Labs’ current rat
and mouse breeding capabilities, primarily used in the development and characterization of its unique, nextgeneration ‘Knockout’ and ‘Knockin’ rat models featuring specific gene deletions, insertions, repressions and
modifications created using proprietary CompoZr(TM) Zinc Finger Nuclease (ZFN) technology. With this new
acquisition, we continue to maintain the highest expectations of care for our SAGE animal models.
SAGE Labs is monitored by an outside organization guaranteeing that we meet all criteria outlined by the Public
Health Service Policy on Humane Care. The SAGE Labs team is committed to the highest standards for humane,
responsible animal care, in full compliance with all Office of Laboratory Animal Welfare policies. Where appropriate, we
actively implement the practice of “The 3 R’s”- Reduction, Refinement and Replacement – in the laboratory setting.
SAGE Labs is also independently monitored by an Institutional Animal Care and Use Committee (IACUC), which
evaluates all proposed research protocols. Comprised of scientists, nonscientists, community members, and
veterinarians from the local community, the SAGE Labs IACUC closely oversees research and ensures that it is
conducted in accordance with all provisions of the PHS Policy on Humane Care and Use of Laboratory Animals.
For more information on our standards for SAGE Labs visit: http://sageresearchmodels.com/about/model-care.
GREENER Marketing
The term LCA (Life Cycle Analysis) is frequently used in sustainability conversations. A collaborative decision
was made to choose our flagship Sigma Life Sciences Catalog to be the first LCA project we took on as a
Company. Through a partnership between our Marketing Communications department and Sustainable
Business Development Office, we identified a product that enables us to more readily obtain manufacturing
data from our partners increasing the value of the LCA. The LCA process is rigorous and helped us realize the
requirements for future LCA. The results of the Sigma LCA will be available on our website upon completion,
where we will share more information including the carbon footprint of the Sigma Life Sciences Catalog.
In 2010, there were no incidents of
non-compliance with regulations or voluntary
codes concerning marketing communications,
including advertising, promotion or sponsorship.
36
SIGMA-ALDRICH® 2010 GLOBAL CITIZENSHIP REPORT
GLOBAL CITIZENSHIP AWARD
Once again our Sigma-Aldrich employees demonstrated their strong
leadership ability with a broad range of initiatives that led to our greatest
slate of Global Citizenship Award Nominees. In 2010, our nominees’ efforts
ranged from emission control, waste solvent reuse, telecommuting and green
chemistry projects to community outreach initiatives. Our evaluation team
broadened the scope of our awards to recognize three award categories:
Environmental, Green Chemistry and Social, along with an overall winner.
Collectively, these efforts delivered savings of just under $3.9 million, as well
as significantly increasing yields and reductions in hazardous materials use.
The Global Citizenship Award was created to:
•Share the knowledge and lessons learned from environmental
sustainability projects conducted at our facilities
•Recognize those individuals or groups who have
participated in a process improvement that reduces the
environmental impact of our business operations
•Display the thought and community leadership that our
employees demonstrate day in and day out
2010 Global Citizenship
Award Winner
Wilhelm Behnen
Our production facility in Hamburg, Germany utilizes large amounts of
solvents. Consequently, air emissions had to be controlled in order to meet
legal and environmental requirements. By taking a number of measures, such
as reducing the amount of volatile chlorinated solvents, tightly controlling
exhaust air streams and optimizing cooling trap in our air purification unit,
Wilhelm learned we could reduce the amount of emissions by more than
50%, eliminating peak emissions and generating savings by reducing the
amount of solvents used. We were also able to invest in a new air purification
plant by simply refurbishing our exhaust air handling unit with a new
cooling trap for – 60°C. Strong team work between several departments,
extended employee training and 40 sub-projects over a two year span
helped make this project our 2010 Global Citizenship Award Winner.
ENVIRONMENTAL
SOCIAL
Thomas Schmid • Buchs, Switzerland • Waste Reduction
Amber James • Houston, Texas • Working from Home
2,400kg of Acetic Acid is used per year in the manufacture of Ethanesulfonic
Acid, generating 4000kg of waste. Experiments showed that Acetic Acid can
be reused for another synthesis run without affecting product quality.
In 2008, Hurricane Ike hit the gulf coast area and knocked out power and
communications. While able to divert manufacturing to our international
locations, we were unable to provide seamless communications to our customers.
Amber quickly saw a business advantage of using telecommuting as a disaster
contingency procedure. As a result in 2010, in preparation for future hurricanes
and near misses, Amber instituted a plan that called for our CSRs (Customer
Service Representatives) to be remotely dispersed into areas that would not be
impacted and our CSRs could continue to provide service to our customers through
the site transition. Employee attendance improved as well as job satisfaction,
also allowing Amber to institute flexible scheduling to allow employees to shift
hours to later evenings to receive orders where customers were working late.
Kurt McClellan • St. Louis, Missouri • Water Use Reduction
The Maintenance department began reducing and eliminating wasteful plant
water use by looking at refrigeration and process one-pass water, cooling tower
operation and de-ionized water generation. The project required Maintenance to
look at equipment performance, water use opportunities in process, sanitation
and irrigation, while putting process and monitoring controls into place.
GREEN CHEMISTRY
Ettigounder Ponnusamy • St. Louis, Missouri
Manufacture of Polyamino acid random copolymers
Marta Krawczyk; Milwaukee, Sheyboygan and
Madison cycling teams • Milwaukee, Sheyboygan and
Madison, Wisconsin • Cycling to Work Initiative
Production involves the use of hazardous chemicals (acids, flammable
solvents) and produces hazardous by-products, generating flammable
waste. The new process uses a new set of protecting groups on the
amino acid starting materials. These groups can now be removed
in a single step using a base instead of acid and solvent.
In 2010 our team of 20 active members biked 26,207 miles. In 2009, we had 23
members who completed 26,731 miles. Our team Biked to Work for 812 days
during 12 months. We have reduced air pollution, decreasing the ‘’greenhouse
effect” and depletion of the ozone layer. We have reduced CO2 emissions (total
25,160 lb and 1,260 lb per person). In total, saving $12,580 and $630 per
person and loosing unwanted weight (an average of more than 10 pounds)
Jeanette Jost; Jan Knoell • Steinheim, Germany
Improvement of synthesis process for Nitrosobenzene
Argentina Team • Buenos Aires, Argentina • Orphanage Support
Nitrosobenzene is produced by a reduction of Nitrobenzene with Zn to
Phenylhydroxylamine followed by reoxidation with FeCl3. This synthesis has
been modified to a one-stage oxidation process starting from Aniline using
H2O2 as oxidizer. One kg product generates about 20 kg pyrophoric Znwaste. Due to the catalytic approach of the new procedure, no heavy metal
waste is produced. The amount of waste water was reduced by 40%. The
process is now safer by removing the need to open the vessel to add Zn to
the reaction mixture. The remaining Zn has to be removed by filtration due
to the pyrophoric nature. It was necessary to purify the crude product by
steam distillation into an open bucket. The steam distillation is an issue as the
product tends to solidify within the glassware. These steps no longer apply.
Gökcen Yilmaz; Gregor Wille • Buchs, Switzerland
Micro Reactor Flow Technology
Over the last three years, Sigma-Aldrich Argentina has supported Casa M.A.N.U.
a foundation that helps HIV positive orphans or abandoned children by providing
temporary shelter, medical help, education and adoption. Besides financial
support from the Company, the Argentinean team contributes to the operation
of Casa M.A.N.U. with personal monthly donations ($1,500 pa) that is used to
buy food for Casa M.A.N.U., outings for the children and fundraising support.
2010 Global Citizenship Honorable Mention:
Buchs Bike To Work Team, Rajkumar G, Vadim Kotlyar, Ron Matsievitch, Roland
Meier, Thomas Milesi, Bernhard Schoenenberger, Hiren Joshi, Shlomo Sayag,
Malka Ashkenzay, Dr. Itzhak Ergaz, Alexander Solchinger, Frank Remintz,
Thomas Schmid
Use of micro reactor flow technology to develop synthesis methods for a new
range of organic acides, utilizing equipment readily available from the SIAL catalog.
A BETTER TOMORROW IN PROGRESS
37
Fiscal Accountability
Transparent Financial Records
FINANCIAL REPORTING COMPLIANCE
The financial records and internal controls of the Company’s operations must be maintained in accordance with U.S.
Generally Accepted Accounting Principles (U.S. GAAP) and in compliance with Sarbanes-Oxley. For non-U.S. locations,
statutory records must be maintained in compliance with local statutory accounting regulations, while monthly consolidated
financial reporting must also comply with U.S. GAAP. The accounting systems and records of Sigma-Aldrich Corporation
must fully and accurately reflect all business activities of the Company and serve as a basis for management of the business
and to facilitate meeting the Company’s obligations to its shareholders, employees, customers and suppliers.
COMPLIANCE AND ETHICS
Maintaining our corporate integrity is the responsibility of every Sigma-Aldrich employee. The Company expects all employees to uphold
this dedication to corporate ethics on a daily basis. Our Business Conduct Policy is a guide to help employees achieve the highest degree
of personal and professional conduct. Potential policy exceptions are reported to a Company Officer and/or the Director, Internal Audit.
Additionally, any employee, customer, vendor or other party wishing to communicate a confidential, anonymous concern regarding
the Company’s Business Conduct Policy or other accounting, internal control or auditing matters can do so via the Whistleblower
P.O. Box. Sigma-Aldrich is focused on taking our Company “beyond the numbers.” We are committed to our One Company values of
honesty and integrity, providing transparency in our financial information and operating responsibly and in compliance at all times.
Enhancing Global Sustainability through Excellence
We hope our fourth Global Citizenship Report demonstrates our desire and ambition to lead as a model in the industry. We
expect to continually grow these success stories and to continually grow the measures and progress of the three elements that
comprise our Sustainable Development program: Environmental Sustainability, Social Responsibility, and Fiscal Accountability.
38
SIGMA-ALDRICH® 2010 GLOBAL CITIZENSHIP REPORT
GRI INDEX (LEVEL C)
Profile
Disclosure
Description
PAGE
1. Strategy and Analysis
1.1
2.4
2.5
2.6
2.7
2.8
2.9
2.10
Statement from the most senior decision-maker of the organization
2
EC1
Name of the organization.
Primary brands, products, and/or services.
Operational structure of the organization, including main divisions,
operating companies, subsidiaries, and joint ventures.
Location of organization's headquarters.
Number of countries where the organization operates, and names of countries with either major
operations or that are specifically relevant to the sustainability issues covered in the report.
Nature of ownership and legal form.
Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).
Scale of the reporting organization.
Significant changes during the reporting period regarding size, structure, or ownership.
Awards received in the reporting period.
1
6
6
Environmental
6
6
6
6
5,13
N/A
5
3. Report Parameters
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.10
3.11
3.12
Reporting period (e.g., fiscal/calendar year) for information provided.
Date of most recent previous report (if any).
Reporting cycle (annual, biennial, etc.)
Contact point for questions regarding the report or its contents.
Process for defining report content.
Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint
ventures, suppliers). See GRI Boundary Protocol for further guidance.
State any specific limitations on the scope or boundary of the report
(see completeness principle for explanation of scope). I
Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities
that can significantly affect comparability from period to period and/or between organizations.
Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such
re-statement (e.g.,mergers/acquisitions, change of base years/periods, nature of business, measurement methods).
Significant changes from previous reporting periods in the scope, boundary,
or measurement methods applied in the report.
Table identifying the location of the Standard Disclosures in the report.
6
6
6
6
6
6
6
N/A
19
19
39
4. Governance, Commitments, and Engagement
4.1
Governance structure of the organization, including committees under the highest governance
body responsible for specific tasks, such as setting strategy or organizational oversight.
4.2
Indicate whether the Chair of the highest governance body is also an executive officer.
4.3
4.4
4.14
4.15
For organizations that have a unitary board structure, state the number of members of the
highest governance body that are independent and/or non-executive members.
Mechanisms for shareholders and employees to provide recommendations
or direction to the highest governance body.
List of stakeholder groups engaged by the organization.
Basis for identification and selection of stakeholders with whom to engage.
PAGE
Economic
2. Organizational Profile
2.1
2.2
2.3
Performance
Indicator
Description
Board
Committees
Board of
Directors
Governance
Governance
9,12
7
EN3
EN5
EN6
EN7
EN8
EN16
EN17
EN18
EN23
EN24
EN28
EN30
Direct economic value generated and distributed, including revenues, operating costs, employee compensation,
donations and other community investments, retained earnings, and payments to capital providers and governments.
5,8,10
Direct energy consumption by primary energy source.
26
Energy saved due to conservation and efficiency improvements.
26,27
Initiatives to provide energy-efficient or renewable energy based products and services,
33,34
and reductions in energy requirements as a result of these initiatives.
Initiatives to reduce indirect energy consumption and reductions achieved.
26,27
Total water withdrawal by source.
25
Total direct and indirect greenhouse gas emissions by weight.
24
Other relevant indirect greenhouse gas emissions by weight.
24
Initiatives to reduce greenhouse gas emissions and reductions achieved.
26,27,37
Total number and volume of significant spills.
18
Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the
18
Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental
18
laws and regulations.
Total environmental protection expenditures and investments by type.
18
Social: Labor Practices and Decent Work
LA1
LA2
LA3
LA4
LA5
LA7
LA10
LA11
LA12
Total workforce by employment type, employment contract, and region.
Total number and rate of employee turnover by age group, gender, and region.
Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.
Percentage of employees covered by collective bargaining agreements.
Minimum notice period(s) regarding significant operational changes,
including whether it is specified in collective agreements.
Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region.
Average hours of training per year per employee by employee category.
Programs for skills management and lifelong learning that support the continued
employability of employees and assist them in managing career endings.
Percentage of employees receiving regular performance and career development reviews.
13
13
15
14
14
18
14
14,15
15
Social: Human Rights HR3
HR8
Total hours of employee training on policies and procedures concerning aspects of human
rights that are relevant to operations, including the percentage of employees trained.
Percentage of security personnel trained in the organization's policies or procedures
concerning aspects of human rights that are relevant to operations.
14
14
Social: Society
SO3
Percentage of employees trained in organization's anti-corruption policies and procedures.
14
Social: Product Responsibility PR1
PR2
PR3
PR4
For the most up-to-date information about our Company's Sustainability Programs, visit our website at sigmaaldrich.com/globalcitizenship.
PR5
PR7
©2011 Sigma-Aldrich Co. All rights reserved. Sigma, SAFC, Sigma-Aldrich, Aldrich, Cerilliant, Supelco, SAFC Hitech, CompoZr, SAGE Labs, "Your
Favorite Gene", Ascentis and Prestige Antibodies are all trademarks of Sigma-Aldrich Co. and its affiliate Sigma-Aldrich Biotechnology, L.P.
PR8
A BETTER TOMORROW IN PROGRESS
Life cycle stages in which health and safety impacts of products and services are assessed for improvement,
and percentage of significant products and services categories subject to such procedures.
Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts
of products and services during their life cycle, by type of outcomes.
Type of product and service information required by procedures, and percentage of significant products and services
subject to such information requirements.
Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service
information and labeling, by type of outcomes.
Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.
Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications,
including advertising, promotion, and sponsorship by type of outcomes.
Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.
16
16,17
16
16,17
16
36
36
39