Waste

What is true of natural resources on the input side is also true of non-product outputs. Waste disposal is closely regulated, and the cost of proper disposal routes is increasing.

Novartis follows a clear waste management strategy to prevent, reduce or recycle waste, or use it as an energy source before a safe final disposal of unavoidable residues. Waste prevention and reduction is always preferred to treatment, incineration, or disposal. This ensures that the overall environmental impact related to waste remains minimal, while energy use from waste is maximized. Opportunities for recycling and energy recovery from both hazardous and non-hazardous wastes are always considered. It is expected that in coming years virtually no hazardous waste will be disposed in landfills.

Separately, as a legacy of chemical operations of predecessor companies, Novartis shares a number of confirmed or potential environmental liabilities from contaminated sites and landfills that were created in various countries. During 2007, Novartis increased its provisions, excluding current liabilities, for worldwide environmental liabilities by USD 614 million following a review completed in 2007. This increase in corporate provisions includes the creation of a Swiss foundation to finance the Novartis-related share of any potential remediation costs for landfills in the Basel region (including Switzerland, France and Germany). Assessments are expected to be completed shortly in coordination with various governments that are responsible for the supervision and decision- making process for any remediation actions. This new foundation underscores the commitment of Novartis to sustainable and appropriate solutions.