GE Citizenship

GE works with the U.S. government to provide engines for naval vessels and military aircraft. GE also provides systems for these vessels and aircraft, including flight actuatio; mission and flight management; power distribution and conversion; distributed computing; information; aircraft structures; flight control; and propeller systems. These vessels and aircraft perform important national security, search-and-rescue and humanitarian missions. GE sells and supports these and other products and services identified below used in various military-related applications with certain foreign governments in strict accordance with U.S. government policy, including U.S. export control law.

GE sells these products directly to the U.S. Department of Defense or a foreign government military agency, as well as indirectly to the U.S. Department of Defense and foreign militaries through another commercial entity (where GE is a subcontractor). GE’s sales of military products during calendar year 2012 were $4.1 billion.

GE does not manufacture, assemble or sell cluster bombs, land mines or nuclear weapons, nor does GE manufacture, assemble or sell parts intended for use in these devices.

GE Products with a Military Application

The following data is based on a 2012 survey of GE businesses.

GE develops and provides technology that enables pharmaceutical companies to develop new therapeutic medicines. This research includes the study of stem cells as a resource for discovery. GE’s ongoing research uses only adult-derived stem cells or established embryonic stem cell lines to investigate the potential for developing innovative methods of producing human cells that could be used in predictive drug-screening applications. GE recognizes the sensitivities associated with the use of stem cells, and we have adopted a clear public position on our approach to the value and responsible use of stem cells.

GE Position Statement on Stem Cell Research

Background

Over the last several years, there has been a dramatic increase in the level of interest from both professional and lay communities concerning research employing primary human stem cells. Stem cells exhibit, to varying degrees, two defining features: the ability to divide, and thus produce more stem cells almost indefinitely (termed self-renewal); and the potential to become many different kinds of tissue, like nerve, muscle or blood (termed multipotency).

Stem cells can be isolated from various sources including bone marrow, blood and certain tumors, however, most research has focused on arguably the most useful type of stem cell—termed embryonic stem (ES) cells. Primary ES cells can be isolated from a microscopic ball of cells that form a few days after eggs are fertilized. Many groups have been able to isolate and propagate these stem cells in culture and produce continuous ES-derived cell lines that retain many of the functional properties of primary ES cells.

GE Position

• GE has ongoing or planned research that could use both adult-derived stem cells and established embryonic stem (ES) cell lines to investigate the practicality of developing novel methods of producing human cells that could be used in predictive drug-screening applications. Better methods for evaluating drugs for safety (toxicity) and efficacy using human cells will aid the development of more effective new medicines and could help reduce the need for testing some potential new medicines on animals.
• GE will conduct research in accordance with U.S. federal guidelines, the U.K., and any other applicable country’s legislation and recommendations regarding stem cell research.
• Our ES cell research programs will employ established ES cell lines approved by the National Institutes of Health, or others established in line with good ethical practice. GE will not be associated with the primary harvest of human embryo-derived cells or tissues.
• In a rapidly evolving scientific field, our intention is that GE’s position will accurately reflect the most recent government and public opinions and therefore, from time to time, we will update our position statement to reflect such changes.
• We acknowledge the considerable debate and take very seriously the ethical and societal issues associated with research using stem cells derived from embryonic or fetal tissue. We conduct our research in an ethically and scientifically responsible manner.

Questions and Answers

Is GE carrying out work on established stem cell lines?

GE is conducting or planning to conduct research using established stem cell lines. The research will establish methods to efficiently transform stem cell lines into cells that closely mimic the behavior of specialized cells found in different human tissues and organs, e.g., heart, liver, brain. These specialized cells will be used to improve the way that new drugs are tested before they are given to patients.

What is an established ES cell line and how do these lines differ from primary ES cells?

An established ES cell line is a population of cells that occasionally grows out from primary ES cells when they are kept in artificial culture. Established ES cell lines are very similar to primary ES cells; however, they can be grown in very large numbers and can be maintained and developed in culture for long periods of time (many years) without the destruction of fertilized eggs.

Why are ES cell lines so important?

ES cell lines are important for two main reasons:

1. They have a greater capacity for self-renewal and multipotency than any other type of stem cell line.
2. They can be grown continually and in large numbers in artificial culture.

Why is GE interested in stem cells?

Many of the human cell types that could be usefully used in drug testing applications are very difficult to obtain and maintain in culture. These include, for example, liver cells (hepatocytes) or heart cells (cardiomyocytes). Stem cells represent unique populations of cells because they can be grown in large numbers and then changed or transformed into very specialized cell types such as cardiomyocytes or hepatocytes. Being able to produce large numbers of specialized cells would be extremely useful to the development of new medicines.

Where would GE obtain established ES cell lines?

We will use NIH-approved established ES cell lines or others that are established in accordance with good ethical practice. We will not be associated with the primary harvest of human embryo stem cells.

Does GE work on human embryo- or fetus-derived material?

The research at GE involves adult-derived stem cells or established embryonic stem cell lines. GE will not be associated with the primary harvest of human embryo-derived cells or tissues.

How does GE dispose of unwanted cells?

Our research is conducted on established cell lines, which are similar to many other human cells used in general research activities. They are maintained, handled and disposed of in accordance with local safety guidelines involving the use of non-pathogenic human cells.

GE works with a limited number of animals, primarily rodents, in the discovery and development of novel diagnostic products used in the identification and detection of disease. GE is committed to using the smallest number of animals that will provide scientifically sound data to ensure the safety and efficacy of products and therapies. GE is also committed to providing exemplary care in accordance with best practices for the care and welfare of laboratory animals. GE adheres to the “Three Rs Principles,” through which the use of animals is Reduced, Refined and Replaced. These principles form part of the strict regulatory regime controlling the use of animal studies in medicine.

The Issue

GE recognizes that the use of animals in medical research to advance scientific understanding of biologic systems and to develop new medical technologies is unsettling to some people. However, many others believe that the challenges and burdens faced from diseases such as cancer, Alzheimer’s, Parkinson’s, heart failure and stroke justify the carefully considered use of animals when no other appropriate scientific methods are available. This Position Statement sets out GE’s views on the use of animals for medical research purposes and will be amended to reflect any developments in this field.

Background

GE’s goal is to enable healthcare providers to better diagnose, treat and manage patients. A key technology in this effort is the visualization of biological processes at all levels within the human body—from the sub-cellular molecules and biochemicals that make up our genetic structure to cells, tissues and whole organ systems. GE Healthcare has two units that perform medical research that requires the use of a limited number of animals. This type of research is performed to determine the safety of products and/or to satisfy legal requirements of health regulatory authorities around the world.

Medical Diagnostics

This unit develops diagnostic products used to understand and enable the treatment of major diseases in conjunction with x-ray, computed tomography (CT), magnetic resonance imaging (MRI), ultrasound and functional imaging systems. Contrast and radiopharmaceutical imaging agents are, in general, injected into the bloodstream to enhance images taken of the structure or function of internal body organs and tissues. These enhanced images enable physicians to more accurately detect functional abnormailities and to thereby diagnose and treat diseases of the heart, lung and brain.

Life Sciences

This unit is involved in developing and providing integrated systems and solutions for disease research and drug discovery, development and manufacture. Our technology platforms enable the discovery, development and manufacturing of new medicines. They also allow researchers to better understand the function of genes and proteins that may be responsible for disease, to screen possible drug candidates and develop them in clinical trials, and to manufacture biopharmaceuticals such as insulin.

GE Position on the Use of Animals in Medical Research

• GE is a world leader in medical diagnostics and life sciences. The business provides pharmaceutical products for the diagnosis and treatment of disease and technologies for life sciences research and for the discovery, development and manufacture of new medicines. GE uses animals in its research and product development only when absolutely necessary. The efficacy and safety of our products for their use in humans is of paramount importance.
• In all areas where we have made discoveries in medical diagnostics, the use of animals has played a crucial role.
• Health regulatory authorities across the world set stringent guidelines for the evaluation of new pharmaceutical compounds. These require that all prescription medicines intended for use in humans must be shown to be safe, effective and of the highest quality before being made available to doctors to treat patients.
• At present, it is not possible to determine the safety of products, or meet the legal requirements of health regulatory authorities around the world, without animal studies.
• All studies involving animals must comply with local laws and regulations, including appropriate licensing requirements. Studies must also be scientifically and ethically justified prior to initiation.
• GE is committed to researching and developing alternative non-animal studies wherever possible. Animals are used only where no suitable alternative is available. Our researchers subscribe to the “Three Rs” that advocate study designs in medical research to Reduce, Refine and Replace the use of animals.
• All studies are scrutinized and approved prior to initiation to ensure that they are necessary and are designed to minimize the number of animals used. Furthermore, all studies are designed to avoid or minimize pain, discomfort and levels of stress.
• As part of its business, GE has developed a number of products and technologies that can help reduce the number of animals used in research. Examples of these include gene chip microarrays developed for toxicology studies, and the IN Cell Analyzer for studying the impact of new drugs on living cells in real time.

Animals used by GE Healthcare by species

GE subscribes to the “Three Rs” that advocate study designs in medical research to Reduce, Refine and Replace the use of animals. In the area of research involving animals, GE is considered low-volume in its use of animals, especially given the size of GE Healthcare and its expansion into new areas such as Medical Diagnostics and Life Sciences. Below is a summary by species of animals used by GE Healthcare in the years 2006–2012.

GE Healthcare’s work with animals can be summarized as follows:

• Products and technologies that help reduce customers’ need for animal use
• Research in development of novel diagnostics Safety testing of products according to regulatory requirements
• Animal-derived materials in GE Healthcare’s biological products supply chain
• Marketing of third-party biological products with animal origins

Questions and Answers on GE Healthcare’s Use of Animals

Does GE use animals in medical research and development?

GE, like other healthcare companies, must ensure the safety, quality and efficacy of its products used in humans. To achieve this currently requires the use of animals in some of our work to help develop new medical products and technologies. At all times, the company’s use of animals in medical research adheres to the highest standards of husbandry and ethical treatment. We adhere to the guiding principles of Reduce, Refine and Replace, through which animal research is confined to an absolute minimum and, whenever appropriate, we utilize methods that do not require the use of animals.

What is GE’s position on the use of animals in research?

GE is a world leader in medical diagnostics and life sciences, delivering pharmaceutical products for the diagnosis and treatment of disease, and technologies for life science research and drug discovery, development and manufacture. In all areas where we have made discoveries in medical diagnostics, the use of animals has played a crucial role. Recent developments in the fields of genetics, molecular biology and advanced computing are providing unprecedented opportunities for advancements in the area of medical diagnostics while simultaneously reducing the need for animal research. We expect that today’s research will result in future medical diagnostic solutions that will benefit both healthcare delivery and patient outcomes. These future discoveries will be dependent, in part, on the continuation of research work involving the limited use of animals.

Is there really no alternative to the use of animals in medical research?

Although work continues into the use of in vitro methods and some in silico methods, these are not yet able to reproduce the complexity of in vivo, or whole animal, systems. Nonanimal methods are important tools used to refine and support studies that require the use of animals. However, the use of animals still remains essential in bridging the gap between the discovery of safe and effective healthcare products and the conquering of disease. Where possible, GE uses and develops alternatives to animal studies.

What is GE’s attitude toward animal welfare organizations?

GE conducts animal research with the utmost concern for the well-being of the animals involved and we support legitimate animal welfare concerns and the law-abiding organizations that represent them. We also acknowledge that some people disagree with the use of animals in research, no matter how positive the end result. However, we condemn organizations whose pursuit of their goals involves harassment of people, damage to property and other acts of aggression. GE believes that it is the role of government to derive and enforce appropriate legislation to control the use of animals in medical research and that all advocacy groups seeking to influence that legislation should use the democratic process in their endeavors.

GE condemns the ongoing conflict and resulting humanitarian harm in the Democratic Republic of the Congo (DRC), which is fueled, in part, by financing from trade in the ores from which tin, tantalum, tungsten and gold are derived. These four minerals are now known as “conflict minerals”—when they originate in mines operated or taxed by the warring factions, they can be referred to as “conflict minerals from conflict mines.”

Tin, tantalum, tungsten and gold are common constituents of many of GE’s products, ranging from light bulbs to aircraft engines. Because the minerals in these products typically enter supply chains many layers removed from manufacturers like GE, it is difficult to determine where they originated and whether they support armed conflict. At the same time, millions of Congolese workers rely on mining of the minerals for their livelihood. Avoiding purchase of all conflict minerals from the DRC region would cause severe hardship for them and their dependents.

As part of our commitment to Principles on Human Rights, GE is committed to: working toward the elimination, from our products, of all conflict minerals that support armed groups in the DRC or in the surrounding countries; while at the same time minimizing unintended consequences for legitimate miners and their dependents. GE will:

• Continue to work toward the elimination, over time, of all conflict minerals from conflict mines in our products, and endeavor to improve, year-over-year, our ability to track conflict minerals in our supply chain, report on their origin, and eliminate those that originate in conflict mines.
• Comply with the requirements of Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which requires companies to inquire into the origin of tantalum, tin, tungsten and gold in their supply chains and report on the reasonable inquiry or due diligence they conduct to determine whether their purchase supported armed groups in the DRC.
• Support industry-wide initiatives to verify smelters and refiners that are conflict-free.
• Support initiatives to track conflict mineral ores from mines of origin in the DRC to smelters or refiners, so that conflict-free mining and transportation routes can be verified. This will allow responsible smelters and refiners to continue to source ores from legitimate mines in the DRC region and still be certified as conflict-free, thereby minimizing the unintended consequence of encouraging a “Congo-free” policy.

Learn more about conflict minerals.

As GE explores new possibilities for the application of nanotechnology to solve some of the world’s most pressing challenges, we recognize the need to understand and address possible impacts of nanotechnology on people and the environment.  To that end, GE has engaged in the following practices:

• Ongoing internal education and operating mechanisms addressing environmental, health and safety (EHS) aspects of nanotechnology, including development of common approaches across the company.
• Active participation in industry consortia and forums dedicated to general education about nanotechnology issues and to the establishment of standards that address terminology, nomenclature, metrology and EHS issues relevant to nanotechnology.
• Supporting government funding of research on EHS aspects of nanomaterial as part of overall government initiatives on nanotechnology.
• Supporting efforts to clarify the applicability of existing laws and regulations to nanotechnology.

Energy-Efficient Lighting Innovation

GE Lighting seeks to develop energy-efficient solutions that change the way people light their world in commercial, industrial, municipal and residential settings. Today’s GE Lighting innovations are enabling financial, operational and environmental gains. Not one or the other, but all three.

Over the last decade, many of the world’s best-run companies have transformed how they do business with a relatively simple switch to longer-lasting, more efficient GE LED systems in signage, refrigerated displays, and spotlight and floodlight applications. Most recently, GE LED conversions have started to transform parking lots, roadways and indoor commercial spaces. For example:

• GE LED solutions have enriched lighting quality, heightened employee security and improved energy efficiency at Marriott International’s headquarters in Maryland, while cutting annual electricity use by 860,000 kilowatt hours (kWh) and enabling yearly energy and maintenance cost savings of $120,000.
• When fully installed next year, new GE roadway lighting in Las Vegas will provide nearly $1.7 million in annual energy cost savings and an electricity use reduction of 20 million kWh.

An increasing demand for energy-efficient lighting products and new lighting efficiency standards taking effect globally has started to impact the variety of products consumers are seeing in a typical retail store lighting aisle. Accordingly, GE has continued to innovate and expand its offering of energy-efficient lightbulbs:

• In 2010, GE was the first lighting manufacturer in the U.S. to receive ENERGY STAR^® qualification for an omnidirectional LED bulb designed to replace a 40-watt incandescent bulb. GE’s 60-watt incandescent bulb replacement LED landed on store shelves in early 2012.
• GE offered more ENERGY STAR^®-qualified LED and CFL products in 2011 than at any point in its history.
• In 2011, GE introduced its Energy Smart^® Bright From The Start™ bulb, which combines the best of CFL and Halogen technologies—in one bulb. GE engineers nestled an instantly bright halogen capsule inside the swirl of a compact fluorescent light bulb and contained it all in an incandescent-shaped glass bulb. The halogen element comes on instantly and turns off once the CFL comes to full brightness, preserving the energy efficiency of the bulb.
• In May 2012, GE announced that its 27-watt “A-19”-shaped LED bulb, a 100-watt incandescent bulb replacement, would hit U.S. and Canadian store shelves some time in the first half of 2013.

We have also made operational strides at GE Lighting facilities, where we measured a 478,000-metric-ton greenhouse gas/CO₂ reduction in 2011.

GE Lighting Products and CFLs

Fluorescent and high-intensity discharge bulbs contain small amounts of mercury, which serves a key role in enabling a compact fluorescent light bulb to be 75% more energy-efficient than a standard incandescent bulb. That increased efficiency reduces the need for power generation and thereby reduces power plant emissions, including mercury emissions. According to the U.S. Environmental Protection Agency, for the equivalent “on” time, the mercury emitted by a power plant to run a CFL is 2.4 milligrams, while the equivalent mercury emission to run an incandescent light bulb is 10 milligrams. The mercury content of a typical GE CFL bulb made today is just 1 milligram. Linear fluorescent bulbs made by GE today contain about 90% less mercury than similar bulbs produced in 1985.

Over the past decade, GE has worked closely with the third-party lamp recycling industry and its trade association, the Association of Lighting and Mercury Recyclers (ALMR), as it has developed a robust national third-party lamp recycling industry. The National Electrical Manufacturers Association (NEMA), to which GE belongs, lists all national lamp recyclers on its website, www.lamprecycle.org.

GE’s financial services business aims to deliver consistent financial performance responsibly and transparently. We’ve worked to create products and services that meet our lending and environmental standards, to maintain a strong culture of compliance, and to give our employees the training and tools they need to identify risks early. We’ve also integrated our commitment to transparency into our financial reporting.

When we underwrite loans and leases, we expect that we will have a relationship with that customer throughout the life of the loan, and ideally beyond. We have a stake in our customers’ success. It is important that we know our customers well, and that they understand the products and services we provide. We want to use straightforward, simple language and disclose information about fees and interest rates so our customers can make informed decisions.

As a global company, we work in a constantly evolving social and environmental context. We are always seeking better ways to identify and manage risk, and we also make sure we have people with the right expertise to help guide our decisions. We’ve developed strong in-house legal and environmental expertise to help guide our decisions and to make sure we are meeting industry best practice. We are committed to a practice of assessment, evaluation and decision-making on a case-by-case basis, considering the facts involved in each financing transaction having the potential to be significant environmentally. Consistent with our consideration of all financial issues, we believe that this is a superior way of managing GE Capital’s risk profile and accounting for the social consequences of our activities.

Learn more about responsible finance.

In the oil sands, GE is applying innovation and technology to improve operational efficiencies and reduce the environmental footprint of many of the processes associated with oil extraction and upgrading processes. A multiyear, $15 million partnership with the Alberta Water Research Institute is currently underway. The partnership utilizes GE’s water technology including advanced membranes, thermal evaporation systems, mobile filtration units and water treatment chemistry to develop ways of reducing overall water use in the oil sands. GE is also partnering with the University of Alberta and Alberta Innovates Technology Futures (AITF) on a $4 million CO₂-capture project supported by the Climate Change and Emissions Management Corporation. The team has identified cutting-edge research in nanotechnology that has the potential to significantly reduce CO₂ emissions associated with bitumen upgrading, and is currently working on scaling up this technology for field testing.

GE Hitachi Nuclear Energy (GEH) continues to invest in technologies that recycle used nuclear fuel to generate more electricity and greatly reduce both the amount of radioactive material needing permanent storage and the storage time itself—down from 1 million years to a few hundred years. GEH’s Advanced Recycling Center (ARC) is just one of several technological solutions GEH offers to help address these and other pressing concerns. As the federal government works in tandem with individual states to site interim or permanent storage, the ARC is one tool that could be used to effectively manage the country’s used fuel. Advancing federal policy for managing used nuclear fuel is important to ensure the long-term viability of nuclear energy as a cost-effective solution for generating electricity with near-zero carbon emissions.