Below are feature stories of Genentech's environmental commitment in action. Click on the links below to read examples of how we at Genentech are changing the way we affect the environment.

Employee Commuting in South San Francisco
Reducing Steam Losses
Green Genes and the Eco Ho-Ho
Employees Volunteer for the Environment
Efforts to Reduce Waste Pay Off
Reuse then Recycle
Update on South Campus Green Building Design

Employee Commuting in South San Francisco

Employee commuting programs have begun to gain the attention of business leaders and others concerned with environmental sustainability and greenhouse gas emissions. Given that employee commute behavior can constitute a significant proportion of a company's total carbon dioxide emissions, it is incumbent on responsible businesses to address transportation as an important part of the company's overall sustainability program.

"The employee commuting program helps Genentech make a positive impact in a number of ways," says Dan McCoy, Genentech's Associate Director of Corporate Transportation. "By getting more cars off the road, we help improve air quality and reduce regional gridlock. At an individual level, employees can choose to relax or be productive during their commute — something not possible if you're driving alone. And finally, we can influence other businesses in the area by demonstrating leadership and sharing best practices."

The gRide program, as it is known internally, offers our employees a range of flexible services and cash incentives to steer them toward more environmentally friendly commute modes such as carpooling, public transit and bicycling. Some of gRide's more popular programs include our GenenBus corporate shuttle program, shuttles to and from nearby transit hubs, generous cash incentives for riders and carpool drivers, and shower facilities with towel service for those who prefer to bike to work.

Since the gRide program's inception in November 2006, the number of employees registered in the program has grown from 1,300 to over 3,000 today. An important element of the overall program is our gRide Rewards cash incentive, which encourages South San Francisco employees to travel to work without their cars by rewarding them $4 per day for each day that they use an alternative commute mode. Additionally, GenenBuses provide a comfortable and reliable motor-coach alternative for employees living in areas that are underserved by public transit. Each GenenBus is a full sized, 56-passenger bus equipped with a wireless Internet connection that enables employees to use their computer on their way to and from work. The gRide program has been cited by employees as a factor in their decision to take a job at Genentech, remain at Genentech and even where to buy a house.

We have estimated the 2006 and 2007 carbon dioxide emissions associated with our South San Francisco employees' commuting activities. In 2007, our employee commuting emissions represented 20 percent of the total carbon dioxide emissions arising from our South San Francisco activities. Approximately 31,000 metric tons of carbon dioxide were generated from employee commuting during 2007, a 6.4 percent decrease when compared with 2006 emissions (33,100 metric tons). The carbon dioxide emissions per employee reduced over the same period from 3.9 metric tons per employee to 3.6 (an 8.6 percent decrease). This is a positive sign that the relative contribution of single car use to our total employee commuting emissions is declining.

Over the past two years, Genentech's innovative employee commuting program has matured into one of the best and most comprehensive programs of its kind. The gRide program has been cited as a best-in-class program by organizations such as the Silicon Valley Leadership Group, ACTERA and the International Associating of Business Communicators (IABC).

Reducing Steam Losses During 2007, Genentech's South San Francisco Production Facilities Group identified leakage of steam through faulty steam traps. The environmental benefits of reducing steam loss and of maximizing condensate recovery are multiple, and include reduced natural gas needed for steam generation, reduced water use and an associated reduction in the amount of chemicals and salt needed to treat water. Yet, identifying traps in need of repair is problematic due to limited physical access and the large number of traps in operation.

Our South San Francisco facility is currently using hand-held ultrasonic meters to test for faulty traps. The system generates automated reports that provide useful management data such as total failure rate, steam loss in dollars per year per trap and total steam loss. A priority listing of the most energy wasting traps and details relating to the cause of failure is provided in order to assist our maintenance efforts. To date, the new system has been implemented in three of our South San Francisco manufacturing buildings, and we have plans to roll out the system in other buildings during 2008. By August 2008, we anticipate having a year's worth of data, which will allow us to calculate the overall savings achieved by implementing the new system.

Green Genes and the Eco Ho-Ho For 25 years, Genentech employees have gathered on Friday evenings to eat, drink, socialize and exchange ideas at weekly events known as Ho-Hos. For the past few years, Green Genes, our environmentally-focused employee club, has organized an annual Eco Ho-Ho at South San Francisco.

In 2007, the theme was Environmental Sustainability. While enjoying organic food and wine, 1,500 employees and guests circulated among tables with demonstrations and information on ways to save energy and water and minimize waste, both at home and at work. Data from last year's sustainability report was highlighted to raise employee awareness of our sustainability goals and performance.

Each of the Green Genes sub-teams (Energy, Water, Recycling and Transportation) hosted informative tables and educational activities for employees and their families. Local companies showed composting techniques, dual-flush toilets, plug-in hybrid cars and drought-resistant landscaping. Employees had the opportunity to calculate their carbon footprint and to participate in a survey about Genentech's sustainability efforts. Prizes were awarded for winners of eco-quizzes.

Employees Volunteer for the Environment

Green Genes team members at Miramar Beach, Half Moon Bay

Genentech fosters a strong sense of community inside and outside the company by offering a range of activities to bring people together and to connect with the larger communities in which we live and work.

In September 2007, the Green Genes group collaborated with the Farallones Marine Sanctuary to clean up Miramar beach in Half Moon Bay. This event, inspired by a successful beach cleanup the previous May, was an enjoyable way to assist the local park service and to improve a popular public locale.

Also in September, during the scheduled maintenance shutdown at our South San Francisco campus, production employees had the chance to volunteer for several community service and environmental groups. Many took advantage of the opportunity, as three busloads of employees traveled to Muir Woods to participate in trail and creek restoration projects.

Two months later, more than 200 employees from our Oceanside campus participated in a Volunteer Day. Over the course of the day, volunteers undertook eight charitable projects throughout San Diego North County, including a beach cleanup, wetlands cleanup and a non-native plant removal event.

Efforts to Reduce Waste Pay Off

Amy Lim and Eileen Duenas of the Early Stage Purification Process Development group

In last year's report, we discussed an aqueous by-product of our manufacturing process that represents over 90 percent of our hazardous waste generation. The by-product contains tetramethylammonium chloride (TMAC), which is used in a buffer for our product purification process. Under a complex regulatory framework, TMAC, although not a U.S. hazardous waste, is deemed hazardous under California law. In 2007, two scientists in the Early Stage Purification Process Development group in South San Francisco implemented an alternative buffer constituent that will allow Genentech to replace most or all of its TMAC usage in new products. The technology developed by Amy Lim and Eileen Duenas eliminated TMAC from the manufacturing processes of 90 percent of the clinical campaigns, which amounted to an approximate reduction of 12,500 liters of TMAC waste generation at the South San Francisco site. As these new products continue to move through the pipeline, TMAC purification processes will be replaced, and TMAC waste generation will decrease dramatically. It is estimated that bulk TMAC waste generation will continue to decline, and potentially be eliminated, at the South San Francisco site over the next five years. Amy's and Eileen's efforts, which included weekend work and continued diligence, are a shining example of what makes Genentech special.

Reuse then Recycle

Recycling is not our primary strategy for waste reduction. Efficiency, including minimizing the purchase of new equipment, is the first step. Our Corporate Facilities Services group in South San Francisco runs a company-wide storage and recycling program for electrical and electronic equipment, with the aim of maximizing reuse.

Any Genentech employee with equipment that they no longer need can complete an online form and the equipment will be picked up for reuse or recycling. If an item has reuse potential, it is cataloged in an online database and is made available for other Genentech employees as an alternative to buying new equipment. If no one at Genentech needs the equipment within a few months, it is sent to our e-waste recycling partner who refurbishes and resells it. The proceeds from these sales offset the costs of e-waste recycling and the remaining funds are available for donation to non-profit organizations. In 2007, our e-waste partner processed 172 metric tons of equipment from Genentech. Of this, 54 metric tons (31 percent) were sold for reuse, and the remaining 118 metric tons (69 percent) were recycled.

We have a number of other programs to maximize reuse. For example, small laboratory equipment is donated through Bio-Link, a program set up by Genentech and the City College of San Francisco Biotechnology Program, to provide laboratory equipment to local high schools and colleges. In addition, excess consumable laboratory supplies are donated to the Bay Area Biotechnology Education Consortium to support their laboratory-based biotechnology curricula in local schools.

Update on South Campus Green Building Design In last year's report, we discussed our efforts to integrate green building design standards to our new South Campus development. Following completion of Phase I of the development, additional energy-efficiency opportunities have been identified and will be realized in 2008 through design and construction of the three Research and Development buildings that form Phase II of the South Campus development. The new buildings will have variable primary flow chilled water systems that will reduce power needed to drive pumps. For the first time in a Genentech lab building, we will install economizer fans in the office areas to re-circulate air and reduce cooling load in the summer and use outside air to cool the buildings during the spring and winter, with a resulting energy saving. Our Engineering Design team looks for opportunities to reduce cooling load wherever possible, due to the multiple benefits associated with reducing the requirements for and size of equipment. The Phase II buildings will also incorporate fan wall air handling systems, which eliminate the need for sound traps and are more efficient than traditional systems. Genentech will be applying for the U.S. Energy Star recognition for two of the South Campus Phase I buildings during early 2008. If successful, this will build on the Energy Star awards previously received for two of our existing buildings at the South San Francisco campus.