Advancing Innovation Innovation Advancing Report Citizenship 2008 Global

Abbott 2008 Global Citizenship Report SPE.WBNL_1_ER_CSF SPE.WBNP_1_ER_CSF .on treC SW-COC-001613 .on XXX-XXX-X X X X . on treC .1608.1608 777 .93.93 777 Copyright © 2009 Abbott. All rights reserved. 84 [email protected] www.abbott.com/citizenship Please contact us with your questions and comments: Abbott Global Citizenship and Policy 100 Abbott Park Road, Department 0383, Abbott Park, IL 60064-6048 About this Report Our Promise Data Summary Table Welcome to Abbott’s 2008 Global We are here for the people we serve in their We focus on exceptional performance Citizenship Summary Report. This is an pursuit of healthy lives. This has been the worldwide – demanding of ourselves and % Change overview of Abbott’s citizenship approach way of Abbott for more than a century – each other because our work impacts Net Sales Worldwide Unit 2004 2005 2006 2007 2008 (08 vs. 07) and performance in 2008. Our Web site, passionately and thoughtfully translating people’s lives. Net Sales Worldwide Millions 19,680* 22,338 22,476 25,914 29,528 14 www.abbott.com/citizenship, is the primary science into lasting contributions to health. % Change means of communication for our citizenship Our products encircle life, from newborns We strive to earn the trust of those Income Taxes Paid Unit 2004 2005 2006 2007 2008 (08 vs. 07) initiatives and houses our complete report. to aging adults, from nutrition and we serve by committing to the highest Income Taxes Paid Millions 949.8* 1,247.9 559.6 836.3 772.0 -8 Our reporting is intended for a range of diagnostics through medical care and standards of quality, excellence in personal Cash Contributions and relationships and behavior characterized by % Change audiences including employees, investors, pharmaceutical therapy. Product Donations Unit 2004 2005 2006 2007 2008 (08 vs. 07) honesty, fairness and integrity. customers, suppliers, governments and Caring is central to the work we do and Cash Contributions and Product Donations Millions 300 340 300 385 460 19 regulators, and key opinion formers. We defi nes our responsibility to those we serve: % Change have referred to the Global Reporting We sustain success for our business and Energy Unit 2004 2005 2006 2007 2008 (08 vs. 07) Initiative G3 Guidelines in compiling our We advance leading-edge science and the people we serve by staying true to Total energy consumption 1,000 gigajoules 14,753 16,395 16,357 15,741 15,540 -1 report, and an index is available on our site. technologies that hold the potential for key tenets upon which our company was Normalized by sales Megajoules per $1,000 749.6 734.0 727.8 607.5 526.3 -13 founded over a century ago: innovative signifi cant improvements to health and to % Change the practice of health care. care and a desire to make a meaningful † Unit 2004 2005 2006 2007 2008 (08 vs. 07) About the Cover CO2e Emissions difference in all that we do. The promise of Vietnamese children are affl icted with some CO2e from stationary combustion Million lbs. 1,374 1,573 1,509 1,453 1,440 -1 of the most severe forms of malnutrition in We value our diversity – that of our our company is in the promise that our work Normalized by sales Lbs. per $1,000 sales 69.8 70.4 67.2 56.1 48.8 -13 products, technologies, markets and holds for health and life. the world. According to The United Nations CO2e from purchased energy Million lbs. 1,660 1,793 1,905 1,782 1,699 -5 Children’s Fund (UNICEF), nearly 30 percent people – and believe that diverse Normalized by sales Lbs. per $1,000 sales 84.3 80.3 84.8 68.8 57.5 -16 perspectives combined with shared goals CO e from process air emissions Million lbs ND ND 60 75 33 -56 of the nation’s children under age fi ve are 2 underweight. To address the problem, inspire new ideas and better ways of Normalized by sales Lbs. per $1,000 sales ND ND 2.7 2.9 1.1 -62 addressing changing health needs. CO e from global sales fl eet Million lbs. 412 420 429 407 361 -11 Abbott and the Abbott Fund partner with 2 AmeriCares to support expansion of the Normalized by sales Lbs. per $1,000 sales 21.0 18.8 19.1 15.7 12.2 -22 Total CO e Emissions Million lbs. 3,446 3,786 3,903 3,717 3,533 -5 Giao Diem Pediatric Nutritional Supplement 2 Normalized by sales Lbs. per $1,000 sales 175.1 169.5 173.8 143.5 119.6 -17 Program. Here, children receive daily nutrition supplements, including multivitamins and % Change Air Emissions Unit 2004 2005 2006 2007 2008 (08 vs. 07) locally produced soymilk. VOCs Million lbs. 3.5 4.5 2.4 2.1 1.6 -24 VOCs normalized by sales Lbs. per $1,000 sales 0.18 0.20 0.11 0.08 0.05 -38 Total process air emissions Million lbs. 4.5 5.3 3.2 2.8 2.4 -21 Normalized by sales Lbs. per $1,000 sales 0.23 0.24 0.14 0.10 0.08 -20 % Change Table of Contents Waste Generation Unit 2004 2005 2006 2007 2008 (08 vs. 07) Hazardous waste Million lbs. 36.5 41.8 42.2 36.5 49.1 35 Normalized by sales Lbs. per $1,000 sales 1.9 1.9 1.9 1.4 1.7 21

2 Message from the 10 Our Strategic Priorities 27 Performance & Operational Review . Non-hazardous waste Million lbs. 176.9 194.9 212.2 208.3 216.4 4 Chairman and CEO 12 Innovating for the Future 28 Responsible Research Normalized by sales Lbs. per $1,000 sales 9.0 8.7 9.4 8.0 7.3 -9 4 About Abbott – Our Business 16 Enhancing Access 29 Public Policy Engagement % Change Water Unit 2004 2005 2006 2007 2008 (08 vs. 07) 6 Innovation to Impact 20 Protecting Patients 30 Governance & Ethics Total water intake Billion gallons 14.3 15.1 15.1 13.7 13.3 -3 8 Citizenship at Abbott and Consumers 31 Supply Chain Management Normalized by sales Gallons per $1,000 sales 730 675 670 530 450 -15

24 Safeguarding the Environment 32 Environment, Health & Safety www.corporateagenda.com Water consumed Billion gallons 0.8 1.1 0.8 0.9 0.7 -22 34 Our Global Workforce Normalized by sales Gallons per $1,000 sales 40.6 49.3 35.6 34.7 26.9 -22 Water discharged (impaired) Billion gallons 2.8 2.9 3.1 2.9 -17 37 Global Community 2.4 Normalized by sales Gallons per $1,000 sales 142 130 138 112 80 -28 38 Country Profi le: China Water discharged (nonimpaired) Billion gallons 10.7 11.0 11.2 10.0 10.0 0 41 Data Summary Table Normalized by sales Gallons per $1,000 sales 544 492 498 386 344 -11 % Change Health & Safety Unit 2004 2005 2006 2007 2008 (08 vs. 07) Recordable injury or illness Incidents per 100 incident rate employees 1.17 0.98 0.97 0.84 0.76 -10 Lost time case rate Cases per 100 employees 0.46 0.40 0.35 0.33 0.28 -15 Global vehicle accident rate Accidents per million miles driven 13.4 11.7 11.0 10.4 9.6 -8

† ND = No data, NA = Not applicable CO2e means carbon dioxide equivalent. Abbott’s greenhouse gas (GHG) emissions Data has been adjusted from last report based upon subsequent verifi cation. have been accounted for and reported as CO2e in accordance with the * In 2004, Abbott spun off Hospira, Inc., and as a result, prior years’ statements of World Resources Institute (WRI) GHG Protocol.

Published by Abbott in April 2009. Created by the Corporate Agenda: Published by Abbott in April 2009. Created income and cash fl ows have been adjusted to refl ect the effects of the spinoff. 2008 Global Citizenship Report

We believe that good citizenship is embodied in every aspect of our business, including the products we make and how we market them. It is refl ected in how we advance patient access to health care, how we ensure a safe workplace, how we utilize natural resources, how we hire, develop and treat our employees and more. We view our commitment to global citizenship not only as a business responsibility, but also as an opportunity to improve lives around the world.

6 10 32

8 29 38 2008 Global Citizenship Report To Our Stakeholders

Miles D. White conduct ourselves and our business Chairman and Chief Executive Offi cer Welcome to Abbott’s 2008 Global Citizenship Report. activities responsibly. Therefore, We appreciate this opportunity to share citizenship issues lie at the heart of our news of our continued progress in corporate strategy. As we move forward, addressing the most important impacts we must continue to conduct ourselves that our company makes in our world. and our business activities responsibly. These are the areas in which our We draw our inspiration and our guidance business has the greatest effects on in this work from the Abbott Promise, society and the environment, and which which clearly defi nes our values and offer us the greatest opportunity to make the constructive role we strive to play a difference in the challenges facing our in the world. world today. Our primary responsibility is to develop We believe that, for commercial innovative answers to health care needs. success to be sustainable, we must In 2008, we delivered on this promise by

2 2008 Global Citizenship Report

continuing to bring forward new health the specifi c needs of developed and Safeguarding the Environment care products that are transforming emerging markets – such as pediatric and With world population expansion, the people’s health around the world – which heat-stable pharmaceutical formulations. global challenges of climate change drove another year of strong growth and water scarcity continue to grow. across our businesses. We are committed to playing our part in This strong performance comes against We draw our inspiration and our guidance from tackling these issues, while minimizing the the backdrop of signifi cant challenges environmental impacts of our products. in our operating environment. We are the Abbott Promise, which clearly defi nes the In 2008, we achieved signifi cant reduction witnessing the worst global economic in our greenhouse gas emissions and situation in many decades. This is coupled constructive role we strive to play in the world. water use in manufacturing. We plan to with increasing concern over global share our experience of responsible water climate change. Concerns over product stewardship with local communities. We safety have arisen due to high-profi le Enhancing Access to also made good progress in assessing our incidents resulting from complex and packaging footprint and putting in place Medicine and Health Care fragmented supply chains. Regulatory and targets and systems to help us reduce our At the same time, we recognize the competitive pressures continue to grow impact in this area. signifi cant barriers to access many around the world, in particular, ongoing Our successful efforts in these and other people experience. We are committed to threats to incentive systems that ensure areas earned Abbott inclusion on the Dow addressing these issues by developing sustainable innovation. Jones Sustainability Index for the fourth innovative treatment options and enhancing In an operating environment of this consecutive year. Looking forward to 2009, access to our medicines and medical complexity, with so many important we will launch an internal program to further products through investment and wider considerations to balance, we have develop our approach to these priorities engagement with governments and key recognized the need to carefully and bring them to life around the globe. stakeholders. In 2008, we contributed determine our strategic priorities. We Our world today is a more uncertain place more than $460 million in grants and have identifi ed four key areas in which than it was when I wrote to you in this report products from Abbott and the Abbott to focus our citizenship efforts. These one year ago. Yet, we remain guided by Fund, the majority of which was directed are the areas in which our business has the values that have sustained us for more toward providing patients with access to the greatest impact on society and the than 120 years, continuing to deliver on our medicine and health care through capacity- environment, and also where we have commitments to our many stakeholders building partnerships, product donations the greatest ability to make a difference. around the world. and patient assistance programs. Innovating for the Future We thank you for your shared commitment to this work and your interest in our efforts. We need to continue to use our skills and Protecting Patients ingenuity to advance medical innovation and Consumers to make a difference to the health and People trust us to develop innovative well-being of people everywhere. In 2008, products that are of high quality and we had nine major product launches safe to use. We are committed to across our range of businesses – promoting quality and safety in our Miles D. White pharmaceuticals, nutrition products, operations and beyond. We consider Chairman and Chief Executive Offi cer diagnostics and medical devices. With our safety to be of paramount April, 2009 slightly more than half of our sales now importance, and we are continuously coming from outside the United States, strengthening our safety processes. our innovation efforts need to meet

3 2008 Global Citizenship Report Our Business

Total: $29,528 Total: $29,528Total: $29,528

Total: $29,528Total: $29,528 Total: $29,528

2008 Net Sales United States $14,495 France $977 by Country The Netherlands $1,753 Canada $924 Dollars in millions Germany $1,381 Spain $909 Japan $1,249 United Kingdom $725 Total: $29,528 Italy $1,089 All Other Countries $6,026

Total: $29,528 Total: $29,528Total: $29,528 2008 Summary of Pharmaceutical Sales $16,708 Vascular Sales $2,241 Worldwide Sales Nutritional Sales $4,924 Other Sales $2,080 Total: $29,528Total: $29,528 Total: $29,528 Dollars in millions Diagnostics Sales $3,575 Total: $29,528

About Abbott diagnostics by acquiring Ibis Biosciences invest, innovate and introduce products We are a diverse global health care and, in early 2009, we entered the vision that are changing the practice of company with scientifi c expertise and care industry through the acquisition of medicine. More than half of our sales products that span the human life cycle Advanced Medical Optics. As we begin came from international markets, with and the range of health care needs from a new era, we are eager to create new, strong performance in the emerging disease prevention and diagnosis to breakthrough health care technologies markets of Asia and Latin America. treatment and cure. Through our four and to serve patients today, as well as to Our success creates economic benefi ts core businesses, Abbott discovers, meet the needs of the next generation of for stakeholders around the world. We develops, manufactures and markets patients worldwide. spent approximately $13.5 billion with pharmaceuticals, medical devices, suppliers during the year; paid $772 million diagnostics and nutrition products that Global Growth in income taxes; paid our employees are leading and competing in rapidly We deliver results for patients, health $7.5 billion; reinvested $2.7 billion in growing markets. care professionals, employees and research and development; and returned In late 2008, Abbott announced shareholders. In 2008, we achieved $2.2 billion in dividends to investors. We its expanded position in molecular record revenues of $29.5 billion. Our also contributed more than $460 million in fi nancial success allows us to continually

4 2008 Global Citizenship Report

Pharmaceuticals Nutrition Products Medical Devices and Diagnostics

Global Presence example, scientists in our pharmaceutical, Our work targets diseases Abbott is headquartered in north medical devices and nutrition businesses that pose the greatest health suburban Chicago, Illinois. We serve are developing multiple approaches to care burdens on society. customers worldwide with a staff of prevent, diagnose, treat and manage more than 72,000 employees at more heart disease. than 100 research and development, Our values inspire us to explore new philanthropic grants and product donations manufacturing and distribution locations. ways of ensuring that patients have from Abbott and the Abbott Fund. access to our products and benefi t We have declared 341 consecutive Improving Global Health from our knowledge. By partnering with quarterly dividends to shareholders Our work targets diseases that pose the others who share our commitment, we since 1924. In 2008, our stock again greatest burdens on society, including are fi nding better ways to help people in outperformed the S&P 500 and the cardiovascular disease, cancer, diabetes need overcome barriers and get the S&P Health Index. Complete fi nancial and immune system diseases. Our health care they need. information about Abbott and a list of our diversity enables us to make a unique and products is available at www.abbott.com. powerful contribution to global health by combating diseases on many fronts. For

5 2008 Global Citizenship Report

Research and 1 Development $2.7 billion invested 7,000 scientists We seek to: ■ Undertake research that addresses unmet medical needs ■ Protect animal welfare in all phases of medical research ■ Abide by international standards and Abbott policies when conducting clinical trials ■ Enhance clinical trial transparency ■ Advance science education Innovation to Impact Regulatory 2 Approval Approval time: Pharmaceuticals, 10–24 months Medical Devices, up to one year Nutrition Products, up to 18 months We seek to: ■ Engage with and fulfi ll the requirements of regulatory bodies around the world ■ Abide by our Code of Business Conduct in all dealings with regulatory bodies

6 2008 Global Citizenship Report

Patient Health Millions of patients worldwide 5 We seek to: ■ Deliver products that improve the lives of people around the world ■ Focus on patient needs and safety in every aspect of our work ■ Improve access to health care in the United States and worldwide ■ Engage in public policy to expand access

Sales, Marketing At Abbott, citizenship is a core part 4 and Distribution More than 20,000 salespeople of how we develop, manufacture More than 130 countries and market a product. Abbott’s We seek to: operations, along with those of our ■ Improve access to our products suppliers and customers, have a through broad registration and signifi cant impact upon the world sustainable pricing ■ Support physicians in improving around us. Our approach is to patient understanding of disease maximize the positive impact of prevention, management and our work at every stage. treatment options ■ Sell and market our products in a responsible way ■ Reduce the environmental impact of our global sales fl eet of vehicles

Manufacturing More than 50 locations 3 More than 20,000 products We seek to: ■ Ensure the health, well-being and safety of our employees ■ Respect employees’ fundamental rights and empower them to succeed, lead and grow ■ Minimize the environmental impact of our manufacturing and business operations ■ Promote diversity and inclusiveness in the workplace ■ Comply with all laws, regulations and good practice manufacturing guidelines ■ Require suppliers to meet our high standards for quality and social, ethical and environmental practices

7 2008 Global Citizenship Report Citizenship at Abbott

Good citizenship is integral to Abbott’s ■ Protecting patients and consumer business as a global health care company. safety – Putting patient safety and well- Abbott was founded 121 years ago being at the heart of everything we do.

to make medicines that were precise, ■ Safeguarding the environment – dependable and targeted at society’s Addressing the challenges of global most pressing health care needs. It climate change and water scarcity, is the same mission that we pursue while minimizing the environmental to this day in our quest to discover, impact of our products and our daily develop, manufacture and market new business activities. pharmaceuticals, medical and nutrition products that improve the health and Our progress in each of these areas is well-being of people everywhere. supported by our long-standing efforts to maintain the highest standards in ethics Chicago’s Infant Welfare Society Pediatric At the same time, we are deeply Clinic is one of many recipients of Abbott’s cognizant of our wider impact on the and compliance, health and safety in our product donation program. Our citizenship world – on the environment and on manufacturing operations, supply chain initiatives are aimed at improving the health and well-being of people and communities communities. Thus, we attempt to management and the philanthropic work all around the world. weave our core values and commitment of our company and the Abbott Fund. to good citizenship into every facet of Management our business. and Governance Strategic Priorities Board of Directors Because the demands of good citizenship Our commitment to good citizenship are always evolving, we constantly begins at the top. It is valued and 9 reassess our obligations and opportunities championed by our Board of Directors and and continue to develop our strategies, led by our company’s senior management. For a fourth consecutive year, Abbott was named to the Dow Jones Sustainability processes and methodologies. In 2008, The charter of the Board’s Public Policy World Index and Sustainability North we continued to evolve our strategic Committee includes the review and America Index. The DJSI World ranks Abbott among the top 10 percent of the framework for our citizenship activities, evaluation of Abbott policies and practices world’s leading 2,500 companies, based identifying four areas where we can have with respect to social responsibility. on an assessment of economic, social and environmental performance. the greatest impact: Business Conduct Committee ■ Innovating for the future – Working Comprised of business heads, it to harness our core strengths as an oversees implementation of our ethics innovator by developing products that and compliance programs. meet the specifi c needs of developed, developing and emerging markets. Pharmaceutical Policy Committee ■ Enhancing access – Making medicines Chaired by the Executive Vice President and health care more accessible and of our Pharmaceutical Products Group affordable through our own policies and composed of senior executives and wider engagement and investment responsible for pharmaceutical research with health care partners around the and businesses, regulatory, legal, world. In 2008, we assisted more than public affairs, government affairs and 155,000 patients with donated and global citizenship, it directs our actions discounted Abbott products valued on policy issues. at more than $255 million through our patient assistance programs.

8 2008 Global Citizenship Report

Nutritional Policy Steering Committee External Recognition Chaired by the Executive Vice President Abbott is recognized by a variety of our global nutrition business and of sustainability and responsible composed of senior executives business indices and ratings. responsible for nutrition research and ■ Abbott was included in the businesses, regulatory, legal, public, We attempt to weave our Dow Jones Sustainability World government affairs and global citizenship, core values and commitment Index and Sustainability North it directs our actions on policy issues. to good citizenship into every America Index for the fourth facet of our business. consecutive year. Executive Inclusion Council ■ Abbott Chairman and CEO, Led by our Chairman and CEO, it oversees Miles White, received the our diversity and inclusion initiatives. In 2008, we reviewed and updated Woodrow Wilson Award for membership of this group to better Corporate Citizenship in 2008. represent our different divisions and the ■ Abbott ranked 8th in the global scope of our business. 100 Best Corporate Citizens Global Citizenship and Policy Department List 2008 compiled by Corporate The primary catalyst in implementing our Responsibility Offi cer. citizenship vision, it chairs the Global Many of our international affi liates Citizenship Working Group and reports to are also being recognized for their Jose Reyes, Country Manager for Abbott a corporate offi cer who, in turn, reports to International, Caribbean Region, met with citizenship efforts. For example: colleagues in the Dominican Republic to the Chairman and CEO. ■ Abbott’s Korean business celebrate the company’s 60 years there, and to discuss plans for continued improvement Engaging Our Stakeholders became the fi rst health in serving patients and health care providers. Our industry has unique and complex care company to win the challenges that we can only solve in country’s coveted Best Foreign Global Operations Council partnership with other stakeholders – from Corporation Award, based on Sets and oversees progress on operating patients and health care providers to criteria such as ethical business priorities, including Environment, Health major customers, suppliers, policymakers, practices and social contribution. and Safety Performance goals for Abbott regulators, scientists, governments and ■ The inaugural Green Business around the world. The Council includes non-governmental organizations (NGOs). Award was awarded to Abbott senior level members from Purchasing Engagement with these and other Ireland in 2008. and Engineering and is chaired by stakeholders is vital to our success as the Senior Vice President of Global a company and as a global citizen. Pharmaceutical Operations. Citizenship Reporting Global Citizenship Working Group Our primary communications vehicle for Improves transparency and reporting of citizenship initiatives is our Abbott.com our social, economic and environmental Web site. Since 2007, we have published performance. Members include our complete Global Citizenship Report representatives from Corporate Strategy, online. It is supplemented by this printed Read more online Corporate Purchasing, Global Environment, summary, which focuses on our new ■ Our Approach to Citizenship Health and Safety, the Offi ce of Ethics ■ Citizenship Management and Governance strategic priorities, but also includes an and Compliance, Quality and Regulatory ■ Engaging Our Stakeholders overview of other areas of citizenship. ■ GRI Index Affairs, Human Resources, Investor Our Web site report contains additional Relations and Commercial Operations. details on all of our citizenship topics. www.abbott.com/citizenship/citizenship

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10 Our 2008 Global Citizenship Report Strategic Priorities

The year 2008 saw the worst global economic decline in many decades, coupled with rising concerns about the environment and global health care needs. Abbott recognizes the complexity of these concerns and the necessity of balancing our company’s strategic priorities carefully. We, therefore, focus our global citizenship efforts in four key areas:

Innovating for the Future

Enhancing Access

Protecting Patients and Consumers

Safeguarding the Environment

11 2008 Global Citizenship Report

Scientists at 10 research and development centers worldwide. Centers include two newly opened facilities in Abbott Park, Illinois, and Ludwigshafen, Germany, that + focus on formulation technology related to cancer and drug 7,000 absorption, respectively.

12 2008 Global Citizenship Report Innovating for the Future

Abbott invested $2.7 billion in research and development in 2008. Abbott’s effectiveness as a health care company depends upon how wisely we invest our time and capital.

Investing in Research the formulation of new investigational and Development (R&D) R&D Investment medicines for cancer and other diseases. Researching, developing and testing new 2004 – 2008 A second facility in Ludwigshafen, Germany, products is a costly and time-consuming in billions of dollars marks an important expansion of SOLIQS – process. Industry-wide, only about one in our formulation technology that enhances drug absorption. Our company now has 1,000 pharmaceutical compounds makes $2.7 $2.5 10 dedicated R&D centers worldwide. it from the laboratory into clinical trials, and $2.3 Looking ahead, we’re further expanding

only one in 12 of those clinical trials will $1.8 $1.7 emerge as a fully approved new medicine. Abbott’s global presence by opening new Our investment decisions are based R&D centers in Singapore and China – on three principal factors: Abbott’s fi rst R&D facilities in Asia. 04 05 06 07 08 ■ Unmet medical needs – where a Our Contribution to disease is either untreated or where Addressing the Global existing treatments are inadequate in Disease Burden terms of safety, effi cacy or ease of use; R&D Productivity The global disease burden changes ■ Our areas of scientifi c expertise; and and Capacity constantly – chronic diseases grow ■ Commercial potential. We made important progress during more prevalent, while infectious diseases the year in monitoring the overall and cancers remain major challenges. Abbott balances its investments productivity of our R&D efforts and Stakeholders want to know how Abbott between developing high-risk, ensuring that our investments will can address the global disease burden, breakthrough products and less-risky, pay strong returns for patients and while also tailoring our research efforts yet still vitally important refi nements shareholders alike. We are generating to the needs of developing countries and improvements to existing products. and analyzing data earlier in the R&D and targeting what are known as Achieving this balance is crucial to our pipeline so that we can accelerate neglected diseases. continued economic sustainability and development of compounds whose Abbott’s areas of expertise cover many to our ongoing investment in research potential is strong and stop work sooner of the world’s most serious diseases, and development. on a compound with limited potential. such as cardiovascular diseases, cancer, We also opened two major new HIV/AIDS and diabetes. This work also Abbott’s week-long technical exchange research and development centers in seminars bring Chinese health care professionals includes specifi c programs to help up to speed on the latest in nutrient testing 2008. Our new Formulation Development analysis and laboratory management. Abbott Center in Abbott Park, Illinois, supports nutrition scientists like Dan Schmitz collaborate with counterparts from the Chinese government. 13 2008 Global Citizenship Report

address the developing world’s health care needs. For example:

■ Heat-stable formulations of our lopinavir/ritonavir designated for pediatric HIV/AIDS patients, which is especially important in developing countries without a reliable cold chain. Almost 90 percent of children with HIV/AIDS live in sub-Saharan Africa according to the Global Fund.

■ Diagnostic equipment and testing methods that are geared to developing country needs, such as rapid diagnosis and monitoring of infectious diseases.

■ Hepatitis C: Abbott is working to develop treatments for hepatitis C, which is believed to affect approximately three percent of the world’s population.

■ Nutrition products that are more affordable and better suited to local preferences.

While Abbott does not have specifi c expertise in neglected diseases, we contribute our scientifi c expertise and donate compounds that can help in the development of treatments. For example, in 2006, we partnered with the Institute for OneWorld Health to advance its program aimed at developing a new malaria treatment. In addition, we’ve shared compounds with not-for- profi t research organizations such as the TB Alliance. In 2009, we will begin systematically exploring ways to match our scientifi c knowledge to current treatment and development needs for neglected diseases.

(Top) Technicians Andrea Hartmann (rear) and Juliane Lang at Gemany’s LabKrone, were the fi rst in the nation to use Abbott’s new automated molecular diagnostics system, the m2000. The m2000 is based on real-time PCR technology for detecting and monitoring infectious diseases.

(Bottom) Massimo Punzetti, a process coordinator in Abbott’s Campoverde, Italy API CPD2 chemical production plant, carefully monitors the progress of chemicals being formulated for the manufacture of various pharmaceuticals. 14 2008 Global Citizenship Report

2008 Product Highlights Vascular Care Cancer In 2008, our Xience V drug eluting stent In oncology, Abbott scientists unveiled was approved for use in the U.S. Xience V new clinical trial data pertaining to two is used to prop open a narrowed or blocked potentially breakthrough molecules for artery and release a drug to prevent the the treatment of certain cancer types – artery from becoming blocked again. ABT-263 (Bcl-2 inhibitor) and ABT-869 Monitoring Diabetes (multi-targeted kinase inhibitor). Our Bcl-2 In 2008, we introduced the FreeStyle family protein antagonist is the fi rst in a Freedom Lite blood glucose monitoring new class of drugs that attack cancer system and the FreeStyle Navigator cells by seeking to trigger a “switch” in continuous glucose monitoring system in cancer cells, causing them to die. the United States. FreeStyle Freedom Lite Immunology is an easy-to-hold, easy-to-read blood Humira is the fi rst fully human recombinant glucose monitoring system that uses a monoclonal antibody approved to treat small blood sample size and features a rheumatoid arthritis, Crohn’s disease, fi ve-second-average test time. The FreeStyle psoriatic arthritis and ankylosing Navigator continuous glucose monitoring spondylitis, or arthritis of the spine. In system provides glucose readings and trend 2008, we received U.S. approval for information to allow people with diabetes to moderate-to-severe chronic plaque more proactively manage their disease. psoriasis and both U.S. and European Molecular Diagnostics Union (E.U.) approval for our latest Abbott’s molecular diagnostics provide indication, polyarticular juvenile idiopathic physicians with critical information for the arthritis. In addition, Humira’s fi rst effective diagnosis, treatment and monitoring approval in Japan was obtained for of diseases. In 2008, we introduced a new rheumatoid arthritis. testing protocol for the m2000 system Neuroscience for use in remote areas of the world. The Abbott is building a pipeline of innovative protocol is designed to use dried blood treatments for Alzheimer’s disease and spots deposited on absorbent fi lter paper, schizophrenia, diseases that impact which allows patient samples to be collected millions of patients worldwide. We’re in remote areas and mailed to regional also pursuing compounds that could laboratories for sophisticated analysis. provide relief across a broad spectrum of Nutrition Products pain-states, such as osteoarthritis, post- Abbott develops a broad range of nutrition operative pain and cancer pain. products. Our research and development SOLIQS-Meltrex Formulation Technology focuses on innovative nutrition solutions – Read more online Abbott’s Meltrex technology is helping from ensuring babies have a strong start in ■ Our Products us develop new formulations of our life to addressing the nutritional and medical ■ Neglected Diseases needs of adult patients. Abbott nutrition ■ Our Commitment to Nutrition medicines to benefi t patients around ■ Intellectual Property the world, including a heat-stable tablet scientists have pioneered medical nutrition version of our leading HIV medicine, products for diabetic and cancer patients Kaletra (lopinavir/ritonavir). This new and are forerunners in critical care nutrition – formulation, called Aluvia eliminates the including development of innovative infant need for refrigeration and can be taken formulas such as those specifi cally designed without food – important advances for for pre-term infants. www.abbott.com/citizenship/innovation patients in developing regions.

15 2008 Global Citizenship Report

Million Dollars Invested in programs to help millions of disadvantaged patients through grants and products from Abbott 460+and the Abbott Fund.

16 2008 Global Citizenship Report Enhancing Access

Needed treatments, cures and nutrition remain beyond the reach of many people, despite the efforts of health care companies, governments and non-governmental organizations. Whether these challenges persist because of poverty, lack of awareness, inadequate infrastructure or social stigmas, Abbott is committed to addressing them as part of our core business strategy and in partnership with others.

Our Approach of 2008, Kaletra/Aluvia tablets were throughout 2008 was the lowest price for available, fi led or approved in 161 lopinavir/ritonavir tablets available in Africa ■ Achieve broad registration of our products in countries where specifi c countries where 90 percent of the and least developed countries. diseases are prevalent. developing world’s HIV population lives. By the end of 2008, our lower-strength ■ Collaborate with key stakeholders to The research and ensure that our medicines and medical tablet for pediatric use was approved, development of new, products are fairly priced. available or fi led in 101 countries. life-improving products In 2008, Abbott also submitted ■ Ensure suffi cient global product supply. could not be sustained applications seeking registration for a ■ Work to reach patients and consumers without intellectual in different economic strata. new heat-stable tablet formulation of our property protection and protease inhibitor, Norvir, with U.S. and the patent system. Broad Registration E.U. regulatory authorities. Abbott intends The fi rst step in making medicines and to register the Norvir tablet as broadly products available is to register them worldwide as lopinavir/ritonavir. Because economic conditions and with national regulatory agencies – health care needs vary greatly in such driven by the needs of patient populations Sustainable Pricing countries, we take a case-by-case in each country. We work to make our medicines approach, engaging government health Kaletra (lopinavir/ritonavir, marketed as available at fair and affordable prices by ministries directly to determine the right Aluvia in developing countries), Abbott’s engaging with regulators, patient groups, policies. In another 45 low- and low- leading HIV protease inhibitor, is the public health departments and those middle-income countries, as defi ned by most widely registered HIV medicine organizations reimbursing patients for the World Bank, our HIV medicines are in the world, according to the World their medication costs. Our preferential priced at $1,000 per adult patient per Health Organization (WHO). By the end pricing system for HIV/AIDS medicines, year. For example, Brazil is an emerging for example, is targeted at less-developed economy with high rates of economic and middle-income countries. Since growth but also high levels of poverty. This child in Vietnam’s Linh Thuong District, 2002, Abbott has made lopinavir/ritonavir Quang Tri, is among hundreds of those In 2007, following discussions with the receiving healthy nutrition support from a available in the 69 least developed Government of Brazil, Abbott began partnership between the Abbott Fund, Giao countries, including all of Africa, at a price Diem and AmeriCares to address the country’s supplying Kaletra at a preferential rate high prevalence of pediatric malnutrition. of $500 per adult patient per year, which of $1,000 per patient per year. 17 2008 Global Citizenship Report

There has been growing pressure Exploring New Product $1,000 per patient per year – a 55 percent for companies like ours to extend our Innovations reduction from the original price. However, preferential prices to higher middle- Affordability can also prevent access the Thai government rejected this offer. In income countries. This poses a complex to our nutrition products, particularly 2008, the government effectively broke challenge. These countries, which have in developing and emerging countries. our patent by choosing to supply a expanding populations, a growing middle We are looking at new ways of doing generic version instead. class and higher levels of economic business in these countries, to bring our We will continue to engage with the investment, are able to contribute a products to the people who need them. local government, and, in the meantime, greater proportion of their economic This is a challenge as it involves selling we have continued to supply Kaletra to growth to meet health care challenges. products at lower prices while continuing vulnerable patients in Thailand with no to meet our quality standards and ensure interruption in delivery. Ensuring Capacity adequate margins. Abbott is committed to delivering a reliable Breaking Down Barriers Potential solutions lie in different and adequate supply of our products to Health Care Access formulations and packaging formats and and to meeting consistently high levels Wider barriers to access have complex in developing a local manufacturing of quality. In early 2009, we opened a and multiple causes, including poverty, and supplier base. One example of this new plant in Singapore to supply nutrition lack of health care infrastructure, approach is our Premilac infant formula. products throughout Asia. We also health education and clean water. The It meets all international standards for invested more than $100 million in new primary responsibility for addressing quality and ingredient composition but manufacturing facilities to supply HIV/AIDS these challenges lies with national is available at a more affordable price medicine to the developing world. This governments. However, Abbott makes for consumers in China. helps ensure high standards of quality and important contributions by engaging in the consistency of supply. During 2008, we Intellectual Property and public policy debate and investing shipped 26.8 tons of Aluvia, enough to Compulsory Licenses in partnership initiatives. treat nearly 75,000 patients. The research and development of new, We work with governments, non-profi t Abbott assumes responsibility for life-improving products could not be groups and patient organizations to providing lopinavir/ritonavir globally, rather sustained without intellectual property develop sound public policies and than granting voluntary licenses to generic protection and the patent system, which establish philanthropic programs that manufacturers. This policy helps ensure provide incentives for new discoveries. In improve health systems and address high standards of quality and consistency 2007, the Thai government announced its patient needs. The majority of Abbott’s of supply. intention to impose compulsory licensing philanthropic work focuses on our core With the Abbott Fund’s support, USAID-AMPATH on a range of patent-protected medicines, product areas and areas of expertise. rolled out a home-based counseling and testing (HCT) program for HIV/AIDs. Rural African health including our Kaletra medication. We workers are given specially programmed PDAs engaged the Thai government in dialogue that transmit data on reported cases to the and offered to supply Kaletra at the AMPATH Medical Record System, enabling earlier diagnosis and more effective care. preferential mid-tier country price of

Read more online

■ Patient Assistance Programs ■ Product Donations ■ Abbott Global AIDS Care ■ Commitment in HIV/AIDS ■ Commitment in Nutrition

www.abbott.com/citizenship/access

18 Abbott’s Access Programs

2008 Results Program Overview

U.S. Programs

■ More than 155,000 patients received Patient Assistance Programs free medicines, medical nutrition Abbott donates medicines, medical nutrition products and diabetes care products at no cost products and diabetes care products to patients experiencing fi nancial diffi culties and who typically do not have insurance coverage. valued at over $255 million. www.pparx.org

■ Enrolled more than 442,000 patients, Together Rx Access™ Card who saved over $17 million on Through the Together Rx Access™ Card, multiple pharmaceutical companies offer uninsured medicines. More than 1.78 million patients savings on more than 300 brand-name prescription medicines and products. patients have saved over $77 million (800) 444-4106 or www.togetherrxaccess.com on medicines since the program began.

International

■ Provided Abbott antiretrovirals Abbott Access to nearly 110,000 patients Abbott Access has been providing Abbott’s HIV medicines to all African and least-developed (as of December 2008). countries – 69 in total – at a price of $500 per adult patient per year since 2002. At this price, ■ Shipped more than 21 million Abbott’s leading HIV medicine, lopinavir/ritonavir, remains competitive with other generic rapid HIV tests. copies in these markets. www.accesstohivcare.org

■ Donated 3.1 million rapid HIV tests. Preventing Mother-to-Child Transmission of HIV Abbott is providing rapid tests free of charge to qualifi ed programs aimed at preventing mother-to-child transmission of HIV in all African and least-developed countries – 69 in total.

■ Provided services to more than Supporting Children Affected by HIV 255,000 children and families. The Abbott Fund is working to advance the treatment of children with HIV and improve More than 1 million have received the lives of orphans and vulnerable children affected by HIV/AIDS through model programs services since the program began. in Burkina Faso, India, Kenya, Malawi, Romania and Tanzania. ■ Provided legal services to more www.abbottglobalcare.org than 12,000 women and children. ■ Trained or retrained more than 13,000 health care professionals.

■ Modernized four regional laboratories. Strengthening Health Systems in Tanzania ■ Trained or retrained more than The Abbott Fund and the Government of Tanzania are implementing a comprehensive 2,000 health care professionals. initiative to strengthen the country’s health care system to meet the needs of people living ■ Opened the new Abbott Fund with HIV and other chronic diseases. offi ce in Tanzania. www.abbottglobalcare.org

■ Provided nutrition services to Enhancing Maternal and Child Health more than 150,000 children. Abbott is working with a range of government and non-government partners to improve ■ Reached more than the health and status of women and children. Programs in Afghanistan, Cambodia, 80,000 women through women’s China and Vietnam improve childhood nutrition and maternal health through training of health education programs. health care professionals, strengthening health care capacity, community health education ■ Trained more than 2,300 health and product support. care workers.

■ Donated products valued at Product Donations $135 million in 105 countries. Abbott provides product donations to support medical missions and other global ■ Supported 3,366 medical missions. humanitarian efforts. www.abbott.com/productdonations

* The Abbott Patient Assistance Program is designed to assist patients without any prescription drug coverage. However, if patients are unable to afford product through insurance, including a Medicare Prescription Drug Plan, they are still welcome to apply to our program. They should include information about their total prescription and medical expenses. We will assess the situation on a case-by-case basis. Abbott remains committed to ensuring patients do not experience an interruption of drug therapy. The following Medicare Assistance and Savings Programs were introduced as temporary programs to assist Medicare-eligible individuals, who did not have prescription drug coverage, to access their medicines until the Medicare Benefi t took effect on January 1, 2006. All of these programs ended on December 31, 2005, as planned: Humira Medicare Assistance Program, Expanded Medicare Assistance Program and Together-Rx Program (The Yellow Card).

19 2008 Global Citizenship Report

Thousand Suppliers Worldwide share our commitment to product safety and quality. When it comes to safety in sourcing, Abbott treats 20+suppliers as an extension of our own company.

20 2008 Global Citizenship Report Protecting Patients and Consumers

Maintaining the integrity and trust of Abbott products is a central tenet of our business. Abbott regards product quality and safety as our highest obligation, an obligation shared by each of our more than 72,000 employees, as well as our suppliers and partners in creating, manufacturing and distributing health care products.

Protecting Abbott’s patients and consumers transparency are upheld at all stages and requires that we identify, evaluate and, in all countries where we conduct trials. Abbott applies the same whenever possible, eliminate product safety exacting quality standards in concerns. We strive to do so: Clinical Trials Transparency manufacturing our products Abbott is committed to being transparent ■ In our research and development; throughout the world. ■ In our manufacturing operations about the clinical trials we sponsor. and packaging; We recognize that there are important public health benefi ts to making clinical ■ In our sourcing of raw materials and Abbott registers all applicable clinical distribution of our products; and trial information available to health care studies, regardless of outcome, in a providers, patients, and the public. ■ In identifying and helping to eliminate publicly accessible clinical trials registry counterfeit products. We voluntarily abide by the PhRMA (www.ClinicalTrials.gov). For drugs, we Principles on Conduct of Clinical Trials and register all phase 2–4 interventional Safety in Research and Communication of Clinical Trial results. trials. For medical devices, we register Development Our registrations and results disclosure prospective interventional clinical studies Abbott is committed to meeting the adhere to all relevant state and federal laws. of health outcomes, except feasibility highest standards of clinical practice in In addition, Abbott respects the studies, and FDA-designated pediatric our research. This includes safeguarding infl uence of the following organizations post-marketing surveillance studies. the volunteers and patients who regarding registrations and results Registration information is provided participate in clinical trials, as well as disclosures. However, where policies according to the laws and policies ensuring the safety of all products that of these organizations confl ict with the mentioned above. we bring to market through safety testing above laws, Abbott will defer to the laws. Abbott discloses the results of before and after launch. ■ WHO Technical Consultation on all applicable clinical trials, regardless The safety of our clinical trial subjects Clinical Trial Registration Standards of outcome, in a publicly accessible is of utmost importance, and we take (April 2005) clinical trials results database numerous steps to assure that our ■ Joint Position Statement on the (www.ClinicalTrials.gov). For high standards of quality, safety and Disclosure of Pharmaceutical Clinical pharmaceuticals, we report results We hold our suppliers to rigorous safety and Trial Information (November 26, 2008) for all phase 2–4 interventional trials quality standards. Here, workers at Southern ■ International Council of Medical Journal Packaging Co, in Guangzhou, China, make for our approved products. Consistent a pre-packing safety check of scoops for Editors (ICMJE), Uniform Requirements with the Joint Position Statement children’s nutrition products that will be sold for Manuscripts in China, Malaysia, Thailand and elsewhere. on the Disclosure of Pharmaceutical 21 2008 Global Citizenship Report

Clinical Trial Information, we also Abbott’s Supplier Guidelines help report the results of any exploratory our suppliers understand Abbott’s pharmaceutical clinical trials if we deem expectations with regard to quality and the fi ndings to have signifi cant medical other issues. We have management importance (e.g., an important safety systems in place to review and audit the fi nding). For medical devices, we report quality and safety of incoming goods results for prospective interventional and services. We also conduct regular clinical studies of health outcomes, supplier-risk assessments and audits. except for feasibility studies. In addition, Abbott’s quality management we post results for FDA-designated framework extends to third-party pediatric post-marketing surveillance companies that manufacture products studies of medical devices. on Abbott’s behalf. Where appropriate, Labeling pharmaceuticals with high-tech, we assist important suppliers in Serious Adverse Events color-shifting ink is one of several advanced security features that Abbott uses to foil drug implementing quality initiatives. Consortium counterfeiting. Viewed from one angle, the Abbott is a founding member of the ink appears as either brown or violet; from a Product Protection different angle, it shifts to green. International Serious Adverse Events Abbott’s Global Product Protection Consortium, a non-profi t multi-stakeholder The Abbott Quality system is itself Team works to protect patients and the research collaboration. It aims to discover routinely challenged and assessed through public against the dangers of product genetic markers that may enable clinicians internal audits and regulatory inspections. counterfeiting, illegal diversion and to predict the risk of serious adverse product theft. We do so by constantly events, thus improving drug safety. Addressing Concerns analyzing our global supply chain for Abbott responds proactively whenever weak points and reducing the possibility Safety in Manufacturing there are safety concerns involving one of product interference; by developing Abbott applies the same superior quality of our products and a recall becomes overt and covert security features on standards in manufacturing our products necessary. Recalls typically result from product packaging, such as special throughout the world. Our product quality non-compliance with packaging or inks and foils; by working with local efforts are led by our Corporate Regulatory labeling specifi cations; very rarely do law enforcement to dismantle criminal and Quality Science organization, which they stem from product quality or safety enterprises involved in tampering and reports to our Chairman and CEO. This concerns. Nevertheless, we view even one theft; and by advocating stricter laws group is also accountable to our Board of such incident as one too many. and regulations to deter counterfeiting. Directors’ Public Policy Committee. We thoroughly investigate each instance In 2008, our work with local government We use a common quality management and communicate fi ndings and lessons agencies resulted in more than 300 raids system throughout the company. This learned to the appropriate regulators, to on counterfeiting enterprises worldwide. system is supported by policies, processes, others in our industry, if appropriate, and procedures and resources to ensure across all our business divisions. Global that our products are designed and product recalls declined from about 100 in manufactured to be safe and effective. 2007 to fewer than 60 in 2008. All our processes are regularly monitored, and our products are assessed Safety in Sourcing (Top) Protecting patients and consumers is against approved specifi cations before In 2008, Abbott purchased an estimated our foremost concern. Here, solids packaging distribution. We conduct a rolling, three- $13.5 billion in goods and services from operator Silvia Picard carefully inspects fi nished goods at our manufacturing plant in year program of audits covering all of our more than 20,000 suppliers worldwide. Campoverde, Italy, near Rome. Abbott applies 55 manufacturing sites, assessing each When it comes to safety in sourcing, the same exacting safety and quality standards wherever we operate. site against our quality standards. Abbott treats suppliers as an extension of our own company. We seek suppliers (Bottom) Here, Salome Williams (back to camera), a nursing lecturer at the University who share our commitment to product of the West Indies, addresses fi rst-year safety and quality. students at Bustamante Hospital for Children in Kingston, Jamaica. Abbott’s commitment to patients includes helping train health care providers to administer our products properly. 22 2008 Global Citizenship Report

Responsible Advertising, Sales and Marketing Practices Our responsibility to protect patients and other consumers also extends to communicating with them about health and diseases, as well as our products and treatment options. We subscribe to voluntary industry guidelines on sales and marketing practices, including direct- to-consumer (DTC) advertising. These include the recently updated PhRMA Code on Interactions with Health Care Professionals, which took effect in January 2009, and the new AdvaMed Code of Ethics on Interactions with Healthcare Professionals. To address increased public concern about the interaction between sales and marketing personnel and members of the medical community, we continually work to ensure that our employees meet the highest ethical and professional standards through our Ethics and Compliance program. As a leading manufacturer of infant formulas, we comply with all relevant laws, regulations and promotional standards around the world, including principles of the World Health Organization’s (WHO) International Code of Marketing of Breast Milk Substitutes where they have been implemented by governments. These principles cover appropriate labeling and promotion of breast milk substitutes. We conduct audits of our marketing and sales practices in each market where our infant formula is sold, to ensure compliance with Read more online these provisions. Three countries have ■ Clinical Trials not implemented the WHO Code – the ■ Responsible Advertising to Consumers United States, Canada and Japan. Local ■ Sales and Marketing Practices ■ Global Product Protection standards in these countries are robust ■ Protecting Patients and broadly align with the WHO Code.

www.abbott.com/citizenship/patients

23 2008 Global Citizenship Report

Reduction in CO2 Emission from manufacturing in 2008, representing % significant progress towards our 2011 goal. This 250-kilowatt installation helps us save 15 470,000 pounds in CO2 emissions per year.

24 2008 Global Citizenship Report Safeguarding the Environment

Abbott has a long-standing commitment to minimize its impact on the global environment. We have identifi ed climate change, water use and product stewardship as our most signifi cant environmental impacts and we treat them as strategic priorities.

Addressing Global carbon dioxide (CO2) emitted from our Climate Change energy consumption in manufacturing, CO2 Emissions from Climate change is one of the most normalized by sales. In 2008, Abbott Manufacturing Operations pressing challenges of our time. It set a new target to reduce CO2 from pounds per $1,000 sales affects the patients and communities manufacturing operations by 30 percent we serve, as well as our business, and in 2011, compared to 2006 levels. We 154.1 152.0 we are committed to playing our part made solid progress toward this goal last 150.7 in addressing it. Our approach covers year by achieving a 15 percent reduction 124.9 106.3 106.0 both our direct and indirect impacts. We in CO2 emissions from 2007. continue to measure and monitor our We are achieving these reductions in progress and to report on it both internally a variety of ways, including cogeneration 110708060405 and externally. We are: projects, alternative energy installations and system upgrades. In 2008, for ■ Goal Year ■ Setting aggressive reduction targets ■ Baseline Year for energy use and greenhouse example, we upgraded the cogeneration installation at our plant in Campoverde, Data has been adjusted from last report based gas emissions in our manufacturing upon subsequent verifi cation. operations; Italy, enabling the production of chilled water in addition to steam and electricity ■ Pursuing carbon neutrality for our sales vehicle fl eet; generation, further enhancing energy We have improved average vehicle fuel effi ciencies. Similar improvements are ■ Revising product features and designs effi ciency by nearly 20 percent since 2006 to limit the environmental impacts; and under way at our plant in Tlalpan, Mexico, and reduced gasoline usage by more than to enable on-site power generation. ■ Working with employees, suppliers and 400,000 gallons per year, due in part to distributors to achieve further reductions. this approach. We are now assessing our Going Carbon Neutral with Our Fleet international sales fl eet to set a baseline Manufacturing Operations Abbott achieved carbon neutral status against which similar improvements can The primary measure Abbott uses in with our 6,500-vehicle U.S. vehicle fl eet, be made globally. tracking its progress is the quantity of representing about fi ve percent of our total global greenhouse gas emissions. Chicago Climate Exchange As part of our aggressive program to cut energy In 2008, we provided employees a variety Abbott is a member of the Chicago Climate use and greenhouse gas emissions, Abbott is of fuel-effi cient hybrid vehicles, offering Exchange (CCX), the world’s second- investing heavily in solar power. Here, utilities supervisor Giuseppe Stradella, inspects newly them fi nancial incentives to choose the largest carbon market. Abbott used the installed photovoltaic cells at our Campoverde, more environmentally friendly options. exchange to purchase the supplemental Italy, manufacturing center near Rome. 25 2008 Global Citizenship Report

credits necessary to fully offset our of our company, drives our efforts. Our annual domestic fl eet-vehicle emissions, initial goal is to reduce by fi ve percent achieving the “carbon neutral” status. the amount of packaging used in key products by 2013. Other Initiatives Our approach begins with designing We respond annually to the Carbon packaging that uses less material. We Disclosure Project, publishing our GHG also look for opportunities to purchase emissions data and information on corrugated packing materials from the business risks and opportunities certifi ed sustainable sources. Our presented by climate change. We also guidelines call for careful management in participate in the U.S. EPA Climate the use of such materials as PVC, which Leaders Program and the Business has become a matter of concern in recent Roundtable Climate Resolve Initiative. years. We are committed to reducing its Water In 2008, Abbott Nutrition reduced the use, where possible, in our packaging. amount of plastic in its 8-oz. reclosable Abbott works with a number of industry Abbott is committed to managing its bottles by 8.3 percent. Through better design, we cut plastic usage by 2.7 million and independent groups in the area of water use in an effi cient and sustainable pounds. The reduced-weight bottles help sustainable packaging, including the manner and to improving access to clean save 436,000 gallons of gasoline used for transportation per year. Sustainable Packaging Coalition and the water in communities where we play a European Organization for Packaging part. We are now implementing a water total water intake by 11 percent during and the Environment (EUROPEN). We policy that includes: 2008. At our Campoverde plant in Italy, we also engage with major retail customers ■ Continuous improvement in water have reduced water consumption by more like Wal-Mart, sharing information on the use effi ciency in our operations – than 20 percent in the last two years, packaging reductions we have achieved with the goal of reducing water use while increasing overall production. in our consumer products. by 40 percent by 2011 (indexed to At our new Abbott Nutrition sales, on a 2004 baseline); manufacturing facility in Singapore, Pharmaceuticals in the Environment ■ Understanding and mitigating which opened in early 2009, Abbott is The impact of pharmaceutical residuals in risks of water stress and scarcity implementing several initiatives to reduce the environment is a growing concern. We for our businesses; the environmental impact of its operations, continue to investigate the potential impact ■ Facilitating access to high-quality including programs to conserve water of key compounds and support improved water in our communities; and and to use environmentally responsible product labeling to ensure that distributors ■ Educating community members building practices. Based on these efforts, and consumers of our pharmaceuticals about water conservation. Abbott received the Green Mark “Gold” dispose of all unused product properly and certifi cation from the Singapore Building safely. In 2008, we partnered with Teliosis In 2008, our manufacturing water and Construction Authority. Institute to pilot innovative solutions at the intake decreased 15 percent from 2007 community level that will foster responsible to 451 gallons per $1,000 sales. We Product Stewardship disposal of unused pharmaceuticals. also achieved a three percent reduction We are revising product features and in absolute terms, while increasing designs to limit the adverse environmental Read more online production at many of our plants. This effects throughout the product life cycle ■ Management, Policies and Standards was achieved through a range of site-level of manufacturing, storage, distribution ■ Climate and Energy initiatives and engineering projects. and disposal. ■ Green Fleet Program During 2008, we evaluated local water ■ Water ■ Green Chemistry stress at all our manufacturing sites Sustainable Packaging worldwide to help us prioritize our water- In 2008, we developed new packaging reduction efforts. Casa Grande (Arizona), guidelines to help packaging and Campoverde (Italy), Temecula (California) purchasing professionals make more and Singapore were identifi ed as high sustainable choices. A sustainable packaging team, representing all areas priorities. Our Casa Grande plant reduced www.abbott.com/citizenship/environment

26 2008 Global Citizenship Report Performance and Operational Review Responsible Research Public Policy Engagement Governance and Ethics Supply Chain Management Environment, Health & Safety Our Global Workforce Global Community

27 2008 Global Citizenship Report Responsible Research

Biomedical research often raises ethical meet or exceed U.S. and European Bioethics questions about the conduct of clinical Union regulations, as well as those of Bioethics deals with the complex trials, the use of new technologies, other countries. Our animal research interaction of human life, science and animal welfare practices and other efforts are guided by our Global Animal technology. Abbott conducts business matters. We abide by national and Welfare Policy, which ensures that in accordance with the highest international regulations and standards, and enforce our own high standards in all research endeavors. Clinical Trials The safety of our clinical trial study subjects is one of our highest priorities. We have rigorous operating procedures and training for all employees involved in conducting trials, and we take numerous steps to ensure that high standards of quality, safety and transparency are upheld. In addition to rigorous internal review, Abbott studies are reviewed by Abbott’s Xience V sets a new standard for drug eluting stent systems used in treating coronary independent external review boards artery disease. Xience V combines market-leading stent design with a coating of the effective to ensure our studies meet local, drug, everolimus, being applied here, to open narrowed arteries and improve blood fl ow. national or international guidelines. These independent review boards also standards of bioethics and promotes check the informed consent document. Abbott is committed to the these standards in all our activities. Additionally, studies may be reviewed highest standards of humane Our bioethical principles are embodied by an Independent Data Monitoring care and treatment of our in our corporate policies related to the Committee to assess safety data and laboratory animals. welfare of our patients, the conduct to recommend whether to continue, of clinical trials, treatment of animals, modify or stop a trial. confi dentiality of personal information, and ethical use of new biological and our animal programs, as well as our Animal Welfare medical knowledge. animal-related suppliers and contract Before human testing begins, U.S. and To assure that high standards of laboratories, meet our standards. international law requires the testing of bioethics will remain at the core of We maintain voluntary accreditation all drug candidates in biological systems, Abbott’s activities, we have established for all our animal programs from the including animals. It would be impossible policies that both defi ne our practices Association for Assessment and to determine the ultimate safety of many and enforce their implementation. Accreditation of Laboratory Animal pharmaceutical products without the use Care, International (AAALAC). In 2008, of tests involving laboratory animals. Abbott’s Lake County animal research Abbott is committed to the highest program was validated by AAALAC, Read more online standards of humane care and treatment which pronounced our animal care ■ Clinical Trials of our laboratory animals. Our laboratory ■ Animal Welfare program “exemplary,” a designation animal research programs and facilities ■ Bioethics awarded only to those programs considered best-in-class. www.abbott.com/citizenship/research

28 2008 Global Citizenship Report Public Policy Engagement

As a company committed to improving Activity in 2008 global health care, we seek to express our In 2008, Abbott was pleased to work views on public policy issues that matter with the U.S. Chamber of Commerce to our patients, shareholders, employees as it launched its new Global Intellectual and communities – and we want to Property Center recognizing the understand the concerns of those affected importance of intellectual property rights. by our business and engage with our We are also collaborating with two stakeholders to solve problems. international bodies – the International Abbott’s public policy role includes Ophelia Orum, a Zambian infected with HIV, Conference on Harmonization and the produced a moving book and documentary contributing information and expertise, World Health Organization – to develop a fi lm about her experience with the disease, convening forums and discussions, briefi ng illuminating Africa’s need for better treatment. uniform set of international manufacturing Abbott helped launch Ms. Orum’s fi lm at a major policymakers and advancing new solutions quality standards and help move our 2008 AIDS conference in Washington, D.C., and introduced her to numerous policymakers. to serious challenges in health care. Our industry toward it. participation in public policy dialogue is especially important when it comes to ■ Pharmaceutical Research and improving patient access to innovative Our participation in public Manufacturers of America (PhRMA); and medicines and affordable health care. policy dialogue is especially ■ U.S. Chamber of Commerce important when it comes to Engaging with Governments improving patient access These groups play a vital role in articulating Abbott is committed to transparency to innovative medicines and and advocating industry viewpoints. Abbott and is guided by our Code of Business affordable health care. engages with these groups and helps to Conduct in all public policy engagement. develop policy solutions to better the lives of We approach governments as partners patients, as well as defi ne their policy positions. Please see www.abbott.com for a full in improving global health care and seek Trade Group Engagement to learn from them about the needs list of organizations supported by Abbott Abbott participates in numerous U.S. of their communities. For example, in during 2008. and international bodies representing 2008, Abbott worked with industry trade the business community and the Political Donations organizations and the U.S. Congress to pharmaceutical, medical devices and Abbott participates in the political process support the reauthorization and expansion nutrition industries, including: by contributing to state and local candidates of the State Children’s Health Insurance ■ Advanced Medical Technology and political organizations. Program (SCHIP). The legislation provided Association (AdvaMed); Abbott’s Government Affairs team an additional four million children from ■ Biotechnology Industry Organization (BIO); reviews and approves all corporate political lower-income families with access to ■ European Federation of Pharmaceutical contributions to ensure they are consistent health care coverage. There are also times Industries (EFPIA) ; with the company’s guidelines and are when we do not agree with governments. ■ International Association of Infant in compliance with applicable laws. See We continue to object to the imposition Food Manufacturers (IFM); www.abbott.com for details on Abbott’s of compulsory licenses on a range of ■ International Federation of 2008 corporate contributions. patent-protected medicines. (For further Pharmaceutical Manufacturers and details, please see page 18.) We believe Associations (IFPMA); compulsory licenses undermine the patent ■ International Formula Council (IFC); Read more online system. The way to sustain patient access ■ Public Policy Engagement ■ Partnership for Quality for Medical is to ensure affordability, while preserving ■ Engaging Our Stakeholders Donations (PQMD); ■ Business and Industry Organizations the system that enables the discovery of new medicines. www.abbott.com/citizenship/publicpolicy

29 2008 Global Citizenship Report Governance and Ethics

To fulfi ll our mission, Abbott must inspire the trust of investors, patients and society. Therefore, we practice strong and independent corporate governance and insist that all employees and suppliers abide by the highest standards of ethics and compliance. Corporate Governance Our Board of Directors has long had a majority of independent directors; 13 of the current 14 directors are independent. Directors are elected annually through The Abbott Code of Conduct, available in 35 languages, sets forth the principles and behaviors to which all Abbott employees must commit themselves. Here, compliance manager Chris Bolyard, majority voting, which means our conducts a Code of Conduct training class for employees in the Offi ce of Ethics and Compliance. shareholders exercise considerable infl uence over board composition. In Our Code of Business A Global Approach 2008, two new directors joined the board. Conduct makes it clear we Our Affi liate Compliance Program was do not tolerate illegal or designed to formalize our international Ethics and Compliance compliance programs, and incorporated The integrity of our company depends unethical behavior in any of our business dealings. distinct policies and procedures pertaining upon the actions, decisions and behavior of to every country where we operate. every Abbott employee in matters large and small. Our actions must be guided by a and the accuracy and integrity of Abbott’s Monitoring Performance clear understanding of legal and regulatory A successful ethics and compliance books and records. In addition, the requirements, company policies and program depends upon two-way Code requires timely and accurate public procedures, and shared ethical principles communication. In 2008, we received disclosure and compliance with relevant and values. To support this commitment, approximately 1,000 inquiries and laws, including food and drug laws, we have a long-standing Ethics and allegations. We analyze each allegation, laws relating to government health care Compliance program, supported by a take corrective actions where warranted, programs and antitrust laws. global staff of 60 professionals. and generate metrics that allow us to spot The policies and procedures supporting and respond to trends as needed. the principles outlined in the Code Code of Business Conduct We collect information on breaches are updated to refl ect changes in our The basic guidelines of our program are of the Code and report as appropriate industry’s codes, including rules regarding set forth in the Abbott Code of Business to senior management. We take each gifts, meals and education. Conduct. All employees are required incident seriously and engage in Employee training and education to read, understand and certify their appropriate legal or disciplinary action – programs increase awareness of the adherence to this Code annually. if necessary, terminating employees or legal and ethical implications of business The Code makes it clear that we do not supplier relationships as a result. decisions. In 2008, all Abbott employees tolerate illegal or unethical behavior in any received ethics and compliance training. of our business dealings. It stresses the In 2008, we piloted a new e-learning Read more online importance of ethical and honest conduct, training module on Code-related issues in ■ Corporate Governance appropriate treatment of confi dential ■ Ethics and Compliance Spanish and Portuguese. We will extend information, avoiding confl icts of interest, ■ Affiliate Compliance Program this program to 30 countries outside the ■ Training and Performance United States in 2009. www.abbott.com/citizenship/ethics

30 2008 Global Citizenship Report Supply Chain Management

We hold suppliers to high standards questionnaires and audits. We also of ethics and performance and have In 2008, Abbott received conducted 23 social responsibility audits management systems in place to ensure the Supplier Diversity of the with potential new suppliers throughout the integrity of our global supply chain. Year Award from Premier the world in 2008. Inc., a group purchasing Our Suppliers organization. We also Green Purchasing Abbott’s suppliers are integral to our collaborate with our During 2008, we began using only paper success and to everything we do. In employee networks on certifi ed by the Forest Stewardship 2008, Abbott purchased an estimated raising awareness about Council (FSC) in our U.S. offi ce copiers $13.5 billion in goods and services from supplier diversity. and worked to eliminate paper catalogs more than 20,000 suppliers worldwide, for offi ce supplies. We also offer green with more than $10.5 billion of these products as alternatives within the purchases supporting our work in the address our expectations for ethical offi ce supply category. We estimate that United States. behavior, business integrity and fair these initiatives have helped us to avoid

competition, human rights, privacy, labor 100,000 pounds of CO2 emissions. Supplier Management rights, worker protection, animal welfare, During the year, our pharmaceutical We hold suppliers to high ethical and environmental stewardship, and health and division converted more than 1,000 tons performance standards and have safety practices. We communicate these of promotional paper supply to FSC or management systems to review and guidelines to all our suppliers and translate Sustainable Forestry Initiative-certifi ed audit them. Abbott’s Supplier Guidelines them into multiple languages. sources. In addition, the division is working with its printing suppliers to Engaging with Suppliers reduce paper use by 30 percent, saving We have robust processes with respect nearly 30,000 trees and reducing seven to quality standards for engaging million pounds of CO2 emissions over with suppliers. For further details, see fi ve years. Protecting Patients on page 21. In 2008, We are now developing a green Abbott further strengthened supplier procurement policy to formalize our engagement on social responsibility approach. This policy will provide guidance issues by asking 205 of our most on incorporating sustainable sourcing important suppliers to review their policies principles into the purchasing process. and procedures for compliance with the social responsibility expectations set forth Training in Abbott’s Supplier Guidelines. This was In 2008, Abbott Corporate Purchasing followed up by a self-evaluation form. trained more than 19,000 employees This new initiative supports a broader in various aspects of supply chain program of audits for a number of our management, including the use of diverse suppliers’ social responsibility practices – suppliers, the Abbott Code of Conduct + from environment, health and safety to and Abbott Supplier Guidelines. thousand child-labor practices. 19 Read more online of our employees have been Selecting New Suppliers ■ Supplier Diversity trained in various aspects We have established an even more ■ Supplier Guidelines of supply chain management, intensive screening process for suppliers including in the use of diverse in emerging markets, where risk levels suppliers. may be higher. It includes site visits, www.abbott.com/citizenship/supplychain

31 2008 Global Citizenship Report Environment, Health & Safety

Regular Assessments Our global standards include technical program requirements, metrics and audit and reporting mechanisms that serve as baseline expectations for EHS performance worldwide. Every Abbott plant implements a plan based on these standards and is evaluated regularly. During 2008, Abbott conducted 28 environmental site audits, compared with 24 in 2007, placing greater emphasis on our manufacturing facilities outside the United States. Targets for 2010 and 2011 We have 2010 targets for our key performance measures. We set more aggressive 2011 targets for water usage

and CO2 emissions in manufacturing, as we achieved them early. We use an annual Water is essential to our manufacturing, but the quality of the water we return to the environment review process and routine performance is equally important. Here, at Abbott’s Environmental and Industrial Hygiene Laboratory in Campoverde, Italy, Marco Marchioni (foreground) and Mauro D’Amario prepare to analyze reporting to help us set appropriate targets. samples from our wastewater treatment plant. We aim to reduce:

■ Water intake by 40 percent by 2011; Abbott’s approach to protecting human Management and ■ CO2 by 30 percent by 2011; health, safety and the environment is Governance ■ Hazardous waste by 20 percent by 2010; underpinned by rigorous standards, Improving our performance requires ■ Employee injuries by 33 percent by 2010; based on ISO 14001 environmental clear lines of accountability, senior- and management standards. We also set level leadership and support. Our ■ Commercial fl eet-vehicle accidents by regular performance improvement Vice President for Global Engineering 30 percent by 2010. goals for ourselves. Abbott’s Global Services, a corporate offi cer, reviews Environment, Health and Safety (EHS) performance with our Chairman and (Targets are for normalized performance Policy sets forth our key objectives. CEO on a regular basis. on a 2004 baseline, except for CO2, which has a 2006 baseline.)

Total Water Intake Total CO2 Emissions Hazardous Waste Lost Workday Global Fleet Performance gallonsTotal Waterper $1,000 Intake sales Total CO2 Emissions poundsHazardous per $1,000 Waste sales Lost Workday Global Fleet gallons per $1,000 sales from Manufacturing pounds per $1,000 sales Case Rate Accident Rate from Manufacturing casesCase per Rate 100 employees accidentsAccident per Rate million and Goals Operations cases per 100 employees accidents per million poundsOperations per $1,000 sales miles driven pounds per $1,000 sales miles driven

Key 1.9 1.9 1.9 1.9 1.9 1.9 730 0.46 13.4 ■ Goal Year 1.7 730 0.46 675 670 13.4 1.7 154.1 675 152.0 0.40 670 150.7

■ 1.5 11.7

Baseline Year 154.1 152.0 0.40 150.7 1.4 1.5 11.0 11.7 0.35 10.4 1.4 11.0 9.6 530 0.33 124.9 0.35 10.4 9.6 530 0.33 124.9 0.30 8.2 450 440 0.28 106.3 106.0 Data has been 0.30 8.2 450 440 0.28 106.3 adjusted from 106.0 last report based upon subsequent verifi cation. 04 05 06 07 08 11 110708060405 0504 06 07 08 10 100708060504 05 0604 100708 04 05 06 07 08 11 110708060405 0504 06 07 08 10 100708060504 05 0604 100708

32 2008 Global Citizenship Report

Employee Health and Safety programs at key sites. On average, 42 In 2008, we improved two key percent of employees who were offered performance measures (see bar charts): voluntary screenings participated, with

■ Our Lost Workday Case Rate measure some international sites reaching more refl ects the number of incidents than 90 percent participation. Based on resulting in time off-work. In 2008, the success of this offering, the number we met and exceeded our 10 percent of sites now participating in the program reduction target, achieving 0.28 cases was expanded early in 2009. per 100 employees. We are now In addition, we developed and setting a new 2011 target. piloted a series of occupational health 155 ■ Our Global Vehicle Accident Rate performance measures at manufacturing million gallons decreased by eight percent from the sites around the world, with 94 percent of 2007 rate to 9.6 accidents per million manufacturing sites participating. During of water saved in miles driven, representing good the six-month pilot, more than 20,000 manufacturing in 2008 progress toward our 2010 goal, which medical surveillance screenings were through water-reduction now includes our international fl eet. conducted by Abbott Occupational projects. Health professionals. We achieved these improvements through a range of initiatives. Commercial OHS Our Performance In 2008, we carried out a survey of fi eld Eco-effi ciency in Manufacturing Health and Safety Initiatives employees who commute between During 2008, we achieved reductions in Moving to Zero a variety of clinical facilities such as each of our key performance measures We expanded our Moving to Zero Incidents doctors’ offi ces, operating rooms and except hazardous waste, which increased program to many international sites. This medical laboratories. The survey was (see bar charts). behavior-based initiative encourages carried out to identify occupational ■ CO2 from energy: We achieved a employees to adopt good safety habits in health needs in 60 countries. The top 15 percent reduction (normalized the workplace and at home. issues raised were work-life balance, to sales) bringing us very close to our ergonomics and health promotion. To Safe Driving 2011 target. address these, we will develop new To promote safe and responsible driving, ■ Water use: We achieved 15 percent programs and policies in 2009. reduction in water intake (normalized to Abbott established a requirement for sales) through aggressive conservation hands-on, behind-the-wheel training for all Data Assurance and recycling projects at key sites. new hires, managers and high-risk drivers The Chicago Climate Exchange (CCX) ■ Hazardous waste: Our disposal of throughout the company. The year 2008 provided independent assurance of hazardous waste increased slightly was a record year for training, with a total our U.S. greenhouse gas emissions during 2008. This was largely due to of 5,210 training sessions conducted inventories for 2006 and 2007 and will extraordinary production growth at our worldwide, a 63 percent increase from do so again for the 2008 reporting year. chemical plant in Campoverde, Italy, 2007. In addition, capture of international paired with fi nal disposal of residual fl eet data from all affi liates and on-site materials from other sites that were program reviews at commercial offi ces Read more online closed during the year. We will continue worldwide has increased the focus on ■ Management, Policies and Standards vehicle safety. to work towards our 2010 target. ■ 2010/2011 Goals ■ Our Performance Improving Occupational Health ■ Awards and Recognition We added preventive screenings to our occupational health monitoring www.abbott.com/citizenship/environment

33 2008 Global Citizenship Report Our Global Workforce

We are committed to helping Abbott hiring and advancement of women and employees fulfi ll their potential and build Minorities and Women minorities and building an inclusive rewarding careers. We choose our in Management work environment. people carefully and guide them toward Percentage of U.S. Workforce Our employee networks’ concentration meaningful career paths, focusing on on career development and networking,

four key objectives: 43% our robust mentoring program, work-life 42% 41% 41% 39% ■ Finding a diverse mix of people for the support and myriad of other offerings right roles across global cultures and further attest to this commitment. areas of expertise in which we operate; 20% 20% 19% 18% ■ Aligning the growth of our workforce 17% Diversity Management with our global strategies; Abbott’s Executive Inclusion Council, led

■ Supporting our people with strong 2004 2005 2006 2007 2008 by our Chairman and CEO, monitors the hiring and advancement of women and organizational values and ongoing ■ Women in management career development opportunities; and ■ Minorities in management minorities in management and supports

■ Retaining them with proper rewards programs that promote an inclusive work and opportunities for personal growth. environment. In both 2007 and 2008, Employee Learning and Abbott met or exceeded 100 percent Abbott’s Value-Based Development of the U.S. gender-minority-placement Culture Ongoing learning and training programs goals established by the Council in 2000. Abbott’s four core values – pioneering, for employees at all levels help them Representation of women and minorities achieving, caring and enduring – guide realize their potential. In 2008, more than in management has increased 70 percent and support our employees in every 5,600 U.S. managers attended Abbott- and 82 percent, respectively, over the past aspect of their work. We engage sponsored leadership development 10 years. Women now make up nearly employees globally with values programs. In addition, we launched an half of the U.S. workforce (49 percent), workshops and our statement of 18-month management program for and 32.5 percent of our workforce are purpose, the Abbott Promise for Life, frontline leaders in the pharmaceutical members of minority groups. published in six languages. products division. The program was attended by 2,764 U.S. managers and Recruitment and Hiring 400 in Latin America. A number of hiring and development In 2008, we also continued to enhance programs are available to help employees our online mentoring program, the use begin or enhance their careers, starting 5,6 0 0+ of which has increased by 25 percent with the Abbott internship program. In U.S. managers attended over the past two years. The number 2008, we increased our hiring of interns Abbott-sponsored leadership of mentoring partnerships since the by 16 percent, 57 percent of whom were development programs. program’s inception in 2005 now women and 41 percent minorities. In exceeds 1,900. 2008, 48 percent of our interns became Abbott employees, an increase over the A Diverse, Inclusive 39 percent intake of 2007. Workplace Abbott’s long-standing commitment Inclusion and Culture to employee diversity and inclusion is Employee Networks refl ected in the work of our Executive Employee networks play a vital role in Inclusion Council. Its focus is on the building an inclusive culture at Abbott.

34 2008 Global Citizenship Report

fl exible start/stop times; job sharing; telecommuting; compressed workweek; reduced workweek; shift trade; head count share; and informal fl extime. Some 86 percent of our United States workers have access to fl exible time schedules, and 87 percent have the tools to telecommute. Productive Retirement We are especially mindful of the complex and changing defi nition of retirement today. In 2008, we launched Freedom to Work: Retirement on Your Terms. This program offers employees considering retirement the option to scale back their Our new fl ex-time program, Freedom to Work, is important to senior chemist Pramilia Bhatia, hours and/or change their responsibilities who travels to her native India regularly. A 22-year Abbott veteran, she says the program gives without affecting their benefi ts, allowing her the freedom to enjoy both her work and her family. for knowledge transfer. By focusing on career development, Leadership Development Employee Well-Being mentoring, informal networking and Our Professional Development Programs As a health care company, we are developing leadership skills, our networks allow employees to gain diverse committed to the well-being of our continue to expand opportunities for experiences by rotating through three or employees along with that of the general women and minorities. More than four assignments within the company, public. In 2008, we expanded the 8,000 U.S. employees now participate including in international affi liates. These resources offered under LiveLifeWell, in employee networks. programs are an effective leadership our integrated wellness program, which pipeline with nearly a quarter of alumni motivates employees to adopt healthier going on to senior leadership positions lifestyles. Some 65 percent of Abbott’s within Abbott. In 2008, Abbott hired U.S. employees are participating in 112 people through these programs. this program, which includes an online Of these hires, 45 percent were women % health assessment and access to a and 34 percent were minorities. health coach. We offer a variety of Abbott is increasingly focused on wellness programs worldwide and are 86 the challenges of defi ning and achieving a of our workers have access continuing to strengthen and expand more diverse workforce outside North to fl exible time schedules, these programs. For example, in 2009, America. We intend to intensify this focus and 87% have the tools to we will be launching additional employee in 2009. telecommute. assistance program (EAP) offerings in Work-Life Management several European countries. Abbott makes a priority of helping Restructuring employees manage their work, while Abbott’s global workforce has grown raising their families and pursuing other modestly over the past few years. interests. Employees can choose among However, like many companies, we numerous fl exible work options, including

35 2008 Global Citizenship Report Our Global Workforce

continuously assess our business to assure it has the right resources in the right places to support growth worldwide. In instances where reductions are necessary, our approach is to always treat impacted employees with dignity and support them with transitional assistance, which may include pay and/or health care continuation and outplacement services. Employee Survey Employee feedback provides us with valuable insight as we continue to shape our culture to achieve our business strategy. This year, Abbott conducted a biannual survey of its employees to understand employee perceptions of our Employee Fred Conforti is an enthusiastic participant in Abbott’s integrated employee well-being program, LiveLifeWell. Some 65 percent of Abbott’s workforce also participates. The program key cultural attributes. Approximately gives employees online health assessments, access to a health coach and a myriad of resources 70 percent of employees worldwide for healthier living. participated in the survey. Specifi cally, employees see strengths in how we Awards and Recognition Human Rights live the Abbott values and conduct Abbott is recognized as one of the best Abbott believes in the dignity of every ourselves ethically. Employees see a line places to work around the world – human being and respects individual rights of sight to the customer, with 93 percent including Belgium, Brazil, Canada, as set forth in the Universal Declaration understanding how their work impacts the Denmark, Germany, Greece, Ireland, of Human Rights. These principles are lives of patients and 93 percent knowing Italy, the UK, Korea and the United refl ected in our company’s mission and how their role contributes to the success States. Abbott continues to be recognized core values. In December, Abbott and more of the divisions. Employees also believe for our innovative programs that help our than 230 other companies that have made we are producing high-quality products employees fi nd success at work and a public commitment to human rights were in a safe environment – products that home. Recent honors include: recognized by the Realizing Rights and meet patient and customer needs. Finally, ■ BusinessWeek magazine’s “Best Business & Human Rights Resource Centre employees feel positive about their jobs Places to Launch a Career” list for on the 60th anniversary of the Universal and their opportunities for development. three consecutive years; Declaration of Human Rights. Our 2008 results indicate that ■ DiversityInc magazine’s “50 Best we need to continue our focus on Companies for Diversity” for fi ve setting expectations with managers to straight years; and communicate their vision and create ■ Working Mother: “100 Best a culture of employee development Companies for Working Mothers” and recognition. We are aligning these list for eight straight years. Read more online expectations with existing management ■ Diversity and Inclusion and leadership development programs ■ Training and Development ■ Work-Life and Healthy Living Benefits around the world. ■ Compensation and Benefits ■ Human Rights www.abbott.com/citizenship/workforce

36 2008 Global Citizenship Report Global Community

In communities both large and small, we want to make a signifi cant and long- Giving back to the community lasting difference in people’s lives. is part of Abbott’s culture. Central to Abbott’s responsibilities as Participation in our Employee Giving Campaign rose to a corporate citizen is the role we play in 73 percent in 2008 from helping to build healthier communities 65 percent the year before – even though most large around the world. We seek to have a corporate employee giving positive impact on people’s lives and to drives experienced declining participation. use our resources and expertise where we can make a difference that is signifi cant Giving Campaign and Matching Grant and long-lasting. Recognizing that we program, and these donations were cannot do this work alone, we also work matched by $4.6 million in contributions with a wide array of credible community- from the Abbott Fund. At a time when based organizations, supporting and $12.6+ employee giving campaigns at most large encouraging them in their efforts. We ask corporations experienced diminished all our employees and affi liates to join in participation, employee participation in this commitment to communities both million dollars the Employee Giving Campaign rose to large and small. Giving back is an essential 73 percent from 65 percent the previous Our community initiatives are focused part of Abbott’s culture, and year. Our employees also helped on four areas where we can best apply our employees’ generosity us leverage Abbott’s core skills and our knowledge, expertise and resources: mirrors that of our company. competencies by volunteering their skills ■ Advancing community health care to a variety of important community- and wellness; based initiatives. ■ Lending medical expertise and Medical Innovation and promoting scientifi c knowledge; Science Education Safeguarding the Local ■ Engaging Abbott employees in The world urgently needs more well- Environment community vitality; and trained scientists, and Abbott is As a global company focused on ■ Safeguarding the local environment. committed to the challenge. We support health and well-being, we work with a variety of programs such as Family local governments and community Community Health Care Science and Operation Discovery that organizations worldwide to help The United Nations estimates that a third promote science education throughout the enhance and preserve the environment. of the world’s population lacks access to world and foster broader understanding For example, we are partnering with essential health services. Abbott works of the science behind health care and Arizona Project WET to develop and to alleviate this problem in a variety of nutrition. Our Abbott employees actively integrate enhanced water conservation ways. In 2008, Abbott and the Abbott volunteer their scientifi c knowledge and and management practices throughout Fund invested more than $460 million in excitement in local schools and through water-scarce Maricopa County, where programs and product donations aimed at other community programs. we manufacture nutritional products. disadvantaged communities and disaster relief worldwide. For example, we provide Employee Engagement fi nancial, product and volunteer support to Giving back is an essential part of Abbott’s Read more online Feeding America and its School BackPack culture, and our employees’ generosity ■ Global Access Programs program to feed chronically hungry mirrors that of our company. In 2008, ■ Science and Medical Innovation ■ Community Vitality children. The extensive list of initiatives we Abbott employees contributed more ■ Employee Giving and Volunteerism support is available at www.abbott.com than $12.6 million through our Employee and www.abbottfund.org. www.abbott.com/citizenship/community

37 2008 Global Citizenship Report

Country Profi le: China 1994 2000 2008 Established representative Completed Abbott Opened nutrition plant offi ces in Beijing, Shanghai, Pharmaceutical in Guangzhou Guangzhou and Shenzhen Manufacturing – Shanghai plant, a joint venture Set up fi ve more branch between Abbott and 1998 Shanghai Meiyou offi ces in Chengdu, Established Abbott Pharmaceutical Co., Ltd Nanjing, Hangzhou Pharmaceutical Co., Xiamen and Shenyang Ltd in Shanghai

38 2008 Global Citizenship Report

The People’s Republic of China has one-fi fth of the global population and is We are committed to perhaps the fastest-growing economy in delivering quality and safety history. China is also important to Abbott’s and to making all our future business plans and to our evolving products accessible for obligations as a global citizen. both urban and rural areas Abbott’s strategic presence in China throughout China. has grown sharply over the past 14 years. We employ 1,500 people there, the vast academic centers to advance new drug majority of them are Chinese citizens. While none of Abbott’s products was affected They are engaged in manufacturing, discovery programs. We also opened in by discoveries of melamine in Chinese products marketing and distributing a wide range late 2008 a nutrition product dry blend during 2008, we shared our testing expertise with Chinese authorities and published this of Abbott health products – everything and package facility in Guangzhou. informational pamphlet to help the Chinese from pediatric nutrition and pharmaceutical Our commitment to China goes well public gain better understanding of the melamine problem. products to medical devices, many of beyond making and distributing our products there. We are equally engaged them specially tailored to local needs. share the latest advancements in the in transferring our knowledge and area of nutrient testing and analysis. Advancing Research experience to the nation’s health care Through a partnership with the Shanghai We have invested in local research professionals and in using our resources Children’s Medical Center and Project and development facilities. We recently to help create a better quality of life. HOPE, we established a 24-hour hotline completed renovation of a Research Abbott is committed to delivering quality for concerned parents and expanded the Center in the Zhangjiang Hi-Tech Park and safety and to making all our products hospital’s ability to screen more patients. near Shanghai. Located in China’s largest accessible for both urban and rural areas In addition, an information pamphlet was hub of pharmaceutical and biotech throughout China. created by Abbott and distributed by the activity, our team will conduct biological Abbott works with China’s government, Ministry of Health in an effort to help the research on early stage pharmaceutical its health authorities and leading NGOs Chinese public better understand the issue. compounds and strategically partner to train and educate the nation’s health with top Chinese organizations and local care providers and the public. We believe Affordability and Accessibility the work we do with Chinese doctors, In a nation of 1.25 billion people, creating (Clockwise from left) Team members at our nutritionists, local product sales advisors Shanghai Research & Development Center are broader access to health care products making signifi cant progress on a number of and other health care intermediaries will and services poses a signifi cant challenge, important fronts – progress that’s important to make a lasting difference, as we help China and to Abbott’s growing presence there. one that we approach with the same enhance their understanding of best values and commitment to quality that we An Abbott representative visiting a Chinese practices and key health issues. supermarket speaks with a young mother apply in every other country. about proper usage of infant nutrition products. In 2008, the global reputation of the We provide a full range of Abbott Chinese dairy industry suffered a major Wuxi AppTec (Shanghai) Co., Ltd. is one of products at prices that the Chinese public Abbott’s many Chinese suppliers. A leading blow from the discovery that many can afford. Affordability and accessibility pharmaceutical, biotechnology and contract products were contaminated by melamine. research organization, AppTec provides Abbott of health care products remain key issues with an integrated portfolio of laboratory and Although none of Abbott’s products were in China, as they do in other developing manufacturing services, meeting the same affected, we wanted to be part of the high standards that Abbott requires of its nations, and we are working hard to suppliers worldwide. solution. Abbott and the Abbott Fund in address these issues. For example, partnership with the Chinese government Premilac is a nutrition product for infants, This 10-year-old rural Chinese boy visits a nutrition fair at Shanghai Children’s Medical and the not-for-profi t organization Project which meets high standards for quality at Center with his grandmother. They received HOPE, responded quickly to the melamine affordable prices. nutrition counseling. The fair is sponsored by Project HOPE with support from the crisis. Abbott Nutrition scientists and their Abbott Fund. Chinese counterparts came together to 39 2008 Global Citizenship Report China Fact File

Working with Suppliers Year Incorporated 1995 Abbott sources many materials locally Total Employees 1,500 in China, as we do elsewhere, while Divisions Abbott International, Abbott Nutrition International, Abbott ensuring that Chinese suppliers Diagnostics Division, Abbott Diabetes Care, Abbott Point of meet high standards for quality and Care, Abbott Molecular, Global Pharmaceutical Operations, sustainability. We do this in two ways – Global Pharmaceutical Research and Development fi rst, through education and, second, Head Offi ce Shanghai by auditing our suppliers. We audit to Branch Offi ces Beijing, Guangzhou, Shenzhen, Hangzhou, Wuhan, ensure not only quality, but also our Xianmen, Chengdu, Nanjing, Shenyang suppliers’ pursuit of corporate social responsibility goals. We have learned Manufacturing Guangzhou and Shanghai Plants from our suppliers there, and they have learned from us. Key Awards, ■ 2006, 2007 Best Foreign Investment Company Award Recognition by Huangpu District ■ Shanghai Charity Foundation Appreciation on Earthquake Our presence in China Relief Donation from Abbott China employees and our desire to be good Citizenship ■ Abbott developed and implemented the Steps to Health citizens globally entails a program in collaboration with the Chinese Government and Local and others to strengthen health care delivery in rural responsibility to reach out Community areas through staff training and community education to victims of epidemics Relations outreach. Training sessions have reached 2,800 health Programs care providers across nine provinces, and community and natural disasters. education has reached more than 130,000 people. ■ Abbott Diabetes Care’s Community Physicians Training Academy provides continuous education for the treatment and management of diabetes for more than Environmental Protection 1,500 community physicians in 12 cities to support With China’s rapid industrialization health care reform and strengthen Community Health Care Service Centers. come concerns about protecting its ■ Abbott Nutrition and the Abbott Fund hosted technical environment. Abbott’s environmental exchanges with scientists from China’s Institute for Nutrition and Food Safety and China’s Administration of commitments are the same in China Quality Supervision, Inspection and Quarantine as part of as in the rest of the world. We are a unique public-private partnership to strengthen nutrition determined to improve the environment, science and testing capabilities and to share technical expertise on food safety. health and safety performance of our manufacturing operations. Local sites are exploring energy-effi ciency Earthquake Relief products during the crisis and also and renewable energy technologies. Our presence in China, our relationship funded the work of Project HOPE and Employees at our site in Shanghai with local NGOs and our critical health other agencies there. In addition, Abbott undertook an innovative project to care products such as rehydration fl uids employees in China teamed up with the equip the exterior facility lighting and antibiotics allow us to reach out to Shanghai Charity Foundation to rebuild with hybrid wind/solar energy cells victims of epidemics and natural disasters a kindergarten in Dujiangyan. demonstrating this commitment. in the country. In May 2008, for example, Abbott is also committed to reducing a terrible earthquake occurred in Sichuan water usage and is working to improve Province. Abbott and the Abbott Fund Read more online access to high-quality water in every teamed up with many of our humanitarian ■ Improving Maternal and community where we do business. Child Health in China aid partners to provide more than $1 million in disaster relief. We donated critical pharmaceutical and nutrition www.abbott.com/citizenship/china

40 About this Report Our Promise Data Summary Table Welcome to Abbott’s 2008 Global We are here for the people we serve in their We focus on exceptional performance Citizenship Summary Report. This is an pursuit of healthy lives. This has been the worldwide – demanding of ourselves and % Change overview of Abbott’s citizenship approach way of Abbott for more than a century – each other because our work impacts Net Sales Worldwide Unit 2004 2005 2006 2007 2008 (08 vs. 07) and performance in 2008. Our Web site, passionately and thoughtfully translating people’s lives. Net Sales Worldwide Millions 19,680* 22,338 22,476 25,914 29,528 14 www.abbott.com/citizenship, is the primary science into lasting contributions to health. % Change means of communication for our citizenship Our products encircle life, from newborns We strive to earn the trust of those Income Taxes Paid Unit 2004 2005 2006 2007 2008 (08 vs. 07) initiatives and houses our complete report. to aging adults, from nutrition and we serve by committing to the highest Income Taxes Paid Millions 949.8* 1,247.9 559.6 836.3 772.0 -8 Our reporting is intended for a range of diagnostics through medical care and standards of quality, excellence in personal Cash Contributions and relationships and behavior characterized by % Change audiences including employees, investors, pharmaceutical therapy. Product Donations Unit 2004 2005 2006 2007 2008 (08 vs. 07) honesty, fairness and integrity. customers, suppliers, governments and Caring is central to the work we do and Cash Contributions and Product Donations Millions 300 340 300 385 460 19 regulators, and key opinion formers. We defi nes our responsibility to those we serve: % Change have referred to the Global Reporting We sustain success for our business and Energy Unit 2004 2005 2006 2007 2008 (08 vs. 07) Initiative G3 Guidelines in compiling our We advance leading-edge science and the people we serve by staying true to Total energy consumption 1,000 gigajoules 14,753 16,395 16,357 15,741 15,540 -1 report, and an index is available on our site. technologies that hold the potential for key tenets upon which our company was Normalized by sales Megajoules per $1,000 749.6 734.0 727.8 607.5 526.3 -13 founded over a century ago: innovative signifi cant improvements to health and to % Change the practice of health care. care and a desire to make a meaningful † Unit 2004 2005 2006 2007 2008 (08 vs. 07) About the Cover CO2e Emissions difference in all that we do. The promise of Vietnamese children are affl icted with some CO2e from stationary combustion Million lbs. 1,374 1,573 1,509 1,453 1,440 -1 of the most severe forms of malnutrition in We value our diversity – that of our our company is in the promise that our work Normalized by sales Lbs. per $1,000 sales 69.8 70.4 67.2 56.1 48.8 -13 products, technologies, markets and holds for health and life. the world. According to The United Nations CO2e from purchased energy Million lbs. 1,660 1,793 1,905 1,782 1,699 -5 Children’s Fund (UNICEF), nearly 30 percent people – and believe that diverse Normalized by sales Lbs. per $1,000 sales 84.3 80.3 84.8 68.8 57.5 -16 perspectives combined with shared goals CO e from process air emissions Million lbs ND ND 60 75 33 -56 of the nation’s children under age fi ve are 2 underweight. To address the problem, inspire new ideas and better ways of Normalized by sales Lbs. per $1,000 sales ND ND 2.7 2.9 1.1 -62 addressing changing health needs. CO e from global sales fl eet Million lbs. 412 420 429 407 361 -11 Abbott and the Abbott Fund partner with 2 AmeriCares to support expansion of the Normalized by sales Lbs. per $1,000 sales 21.0 18.8 19.1 15.7 12.2 -22 Total CO e Emissions Million lbs. 3,446 3,786 3,903 3,717 3,533 -5 Giao Diem Pediatric Nutritional Supplement 2 Normalized by sales Lbs. per $1,000 sales 175.1 169.5 173.8 143.5 119.6 -17 Program. Here, children receive daily nutrition supplements, including multivitamins and % Change Air Emissions Unit 2004 2005 2006 2007 2008 (08 vs. 07) locally produced soymilk. VOCs Million lbs. 3.5 4.5 2.4 2.1 1.6 -24 VOCs normalized by sales Lbs. per $1,000 sales 0.18 0.20 0.11 0.08 0.05 -38 Total process air emissions Million lbs. 4.5 5.3 3.2 2.8 2.4 -21 Normalized by sales Lbs. per $1,000 sales 0.23 0.24 0.14 0.10 0.08 -20 % Change Table of Contents Waste Generation Unit 2004 2005 2006 2007 2008 (08 vs. 07) Hazardous waste Million lbs. 36.5 41.8 42.2 36.5 49.1 35 Normalized by sales Lbs. per $1,000 sales 1.9 1.9 1.9 1.4 1.7 21

2 Message from the 10 Our Strategic Priorities 27 Performance & Operational Review . Non-hazardous waste Million lbs. 176.9 194.9 212.2 208.3 216.4 4 Chairman and CEO 12 Innovating for the Future 28 Responsible Research Normalized by sales Lbs. per $1,000 sales 9.0 8.7 9.4 8.0 7.3 -9 4 About Abbott – Our Business 16 Enhancing Access 29 Public Policy Engagement % Change Water Unit 2004 2005 2006 2007 2008 (08 vs. 07) 6 Innovation to Impact 20 Protecting Patients 30 Governance & Ethics Total water intake Billion gallons 14.3 15.1 15.1 13.7 13.3 -3 8 Citizenship at Abbott and Consumers 31 Supply Chain Management Normalized by sales Gallons per $1,000 sales 730 675 670 530 450 -15

24 Safeguarding the Environment 32 Environment, Health & Safety www.corporateagenda.com Water consumed Billion gallons 0.8 1.1 0.8 0.9 0.7 -22 34 Our Global Workforce Normalized by sales Gallons per $1,000 sales 40.6 49.3 35.6 34.7 26.9 -22 Water discharged (impaired) Billion gallons 2.8 2.9 3.1 2.9 -17 37 Global Community 2.4 Normalized by sales Gallons per $1,000 sales 142 130 138 112 80 -28 38 Country Profi le: China Water discharged (nonimpaired) Billion gallons 10.7 11.0 11.2 10.0 10.0 0 41 Data Summary Table Normalized by sales Gallons per $1,000 sales 544 492 498 386 344 -11 % Change Health & Safety Unit 2004 2005 2006 2007 2008 (08 vs. 07) Recordable injury or illness Incidents per 100 incident rate employees 1.17 0.98 0.97 0.84 0.76 -10 Lost time case rate Cases per 100 employees 0.46 0.40 0.35 0.33 0.28 -15 Global vehicle accident rate Accidents per million miles driven 13.4 11.7 11.0 10.4 9.6 -8

† ND = No data, NA = Not applicable CO2e means carbon dioxide equivalent. Abbott’s greenhouse gas (GHG) emissions Data has been adjusted from last report based upon subsequent verifi cation. have been accounted for and reported as CO2e in accordance with the * In 2004, Abbott spun off Hospira, Inc., and as a result, prior years’ statements of World Resources Institute (WRI) GHG Protocol.

Published by Abbott in April 2009. Created by the Corporate Agenda: Published by Abbott in April 2009. Created income and cash fl ows have been adjusted to refl ect the effects of the spinoff. Advancing Innovation Innovation Advancing Report Citizenship 2008 Global

Abbott 2008 Global Citizenship Report SPE.WBNL_1_ER_CSF SPE.WBNP_1_ER_CSF .on treC SW-COC-001613 .on XXX-XXX-X X X X . on treC .1608.1608 777 .93.93 777 Copyright © 2009 Abbott. All rights reserved. 84 [email protected] www.abbott.com/citizenship Please contact us with your questions and comments: Abbott Global Citizenship and Policy 100 Abbott Park Road, Department 0383, Abbott Park, IL 60064-6048