MSD is committed to the efficient and responsible use of energy in its global operations and complies with all applicable laws and regulations. In addition, we actively pursue strategic initiatives to improve energy efficiency by establishing and implementing energy management programs worldwide.

We are dedicated to protecting and preserving the environment. In 2001, our worldwide capital expenditures for environmental protection projects such as air pollution control, wastewater treatment improvements, and chemical sewer replacements or upgrades, were approximately $200 million. In the years 2002–2006, our expenditure to protect the environment is forecast to exceed $500 million.

We have invested significant resources, including capital expenditures in excess of $200 million, to develop and implement projects that comply with the Pharmaceutical MACT. These projects include installation of thermal oxidizers, scrubbers, covers on wastewater treatment tanks and upgrades of existing wastewater conveyance systems.

Prevention is the best way to protect the safety of our employees and the communities in which we operate. We monitor our facilities to identify and evaluate health and safety impacts of our operations and to minimize any adverse impacts. In the event of an incident, we perform follow-up investigations and analyses and further refine our preventive efforts.