ISPESeptember 12, 2013

Gaining Efficiencies in Pharmaceutical Operations

Pfizer’s Green Journey

Overview

Global Interest in Environmental Sustainability

Gaining Efficiency through Environmental Sustainability

Healthcare’s Greenhouse Gas Emissions

Healthcare roughly 3-5% of global GHG emissions United States healthcare roughly 8-12% of country GHG emissions

ERM estimate

Total global health expenditure US$ 6.5 TrillionWHO Global Health Expenditure Atlas, 2012

Current population roughly 7.1 Billion United Nations

NHS SDU

Sustainable Development Unit set up in 2008

Working across the health sector in England

To develop organisations, people, tools, policy and research which will enable organisations to promote sustainable development, to mitigate and to adapt to climate change.

Healthcare Impacts - Direct & Supply Chain

X ~35% Direct

State of Green Business 2013, GreenBiz

UK NHS Footprint – Scope 3 Emissions

UK NHS Footprint 2010

NHS SDU GHG Protocol

NHS Industry partnership developed Product Life Cycle Accounting Standard

Aimed to support consistent quantification of the carbon footprint of pharmaceutical products and medical devices

US Health Care Greenhouse Gas Emissions

Hospital

Prescription Drugs

Physician/Dental Service

Structures/equipment

Nursing Homecare

Other Professional

Nondurable and Durable Equipment

Scientific Research

Home Healthcare

Administrative/Insurance

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Estimates of Greenhouse Gas Emissions from US Health Care Sector

TOTAL GLOBAL WARMING POTENTIAL FOR US HEALTHCARE

800 MMTCO2 Eq(Direct and Indirect Effects)

JAMA Nov 11, 2009 - Vol 302, No 18

* Based on National Expenditures 2007

Published in JAMA

November 11, 2009 Vol. 302, No. 18 pp 1970-71

External Reporting – disclosure to investors

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Carbon Disclosure Project Score

• NEW PROPOSAL - Sustainability Accounting Standards Board (SASB) provides sustainability accounting standards for use by publicly-listed corporations in the U.S. in disclosing material sustainability issues for the benefit of investors and the public

Bloomberg Maplecroft Climate Innovation Index

• Maplecroft Climate Innovation Index (CII) Benchmark is a composite index professionally traded on Bloomberg terminals – weighted in index based upon score.

• Companies rated based on their performance in climate-related innovation and carbon management.

Green Procurement Trends in Healthcare

The Present• Institutional Tenders• Group Procurement Programs

Emerging• The Sustainability Consortium (WalMart)• Swedish National Pharmaceutical

Strategies

The Future• Green Government Procurement

Programs

Overview

Global Interest in Environmental Sustainability

Gaining Efficiency through Environmental Sustainability

Pfizer’s Green Journey – Expanding beyond fence lines

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Build on Achievements

Report on Progress

Gain Recognition as a Leader

Reach Beyond Our

Boundaries

Suppliers & Ingredients

Delivery to Manufacturing

Delivery to Customers

Use & Disposal

Manufacturing & Packaging

Working throughout Product Lifecycle

Engaging with Customers

Understanding Customer Requirements• Procurement• Tenders

Partnering Across Supply Chain

Responsible Supply Chain Initiatives• Supplier Survey • Capacity building Colleagues

Pfizer’s Green Journey – Keeping it On Track

WaterEnergy Waste

Plants

Reduce energy, water, waste in internal supply chain

Public

Share our accomplishments

Products

Deliver “greener” products and processes

ReducedEnvironmental

Impact

Reduced Use of Scarce Resources

Operational Efficiency / Savings

Valued Products

Enhanced Relationships

Improved Rankings & Reputation

Sustainability Culture

Partners

Promote green practices across our supply chain

Reduce Impact

Improve Efficiency

Greener Products

Engage Colleagues

Public Outreach and Reporting

Embed Sustainability

Our Strategies

Environmental Sustainability Council

Our Delivery Platforms Our Objectives

Our Value Pillars

People

Promote and enable green practices

http://www.pfizer.com/investors/financial_reports/annual_reports/2012/performance.jsp

Pfizer is on a Green Journey Publish company environmental KPIs alongside financial performance metrics in annual report• Integrated report to shareholders includes:

• Greenhouse Gas Footprint• Waste Generated• Water Withdrawal

Pfizer’s Green Journey – Company Footprint

Gaining Efficiency – Site Operations

Achieved 5-yr Public Goal to Reduce Greenhouse Gas Emissions by 20% after only 4 years• Second time since 2000 that Pfizer has achieved its

target of cutting GHG emissions.• Result of more than 1500 energy conservation

projects• Achieved $85M in annualized project savings• Every dollar invested recovered within 2 years, on

average.

A Decade of Green ChemistryCase Study: Lyrica (Pregabalin) – process changes

Process 1 (2005-2006) Classical chemistry, carbon based solvents. Used to launch the product

Process 2 (2006-2010) Enzymatic chemistry, all chemical processes use water as solvent

Process 3 (2010-present) Enzymatic process, all chemical processes use water as solvent. One key by-product which was incinerated in process 2 is now recovered and converted to high quality product, albeit with a relatively high energy process

Solvent, reagent and energy reduction gives a saving of 3 million tonnes of CO2 emissions. Or equivalent to 500,000 US cars off the road for a year.

Gaining Efficiency - Processes

Confidential and Internal use only. All content in this message is subject to works council and/or union consultations and other legal requirements.

Opportunities IdentifiedUse of better alternative solvents makes it safer for

workers, processes and the environment, where possible.

Green Chemistry- Finding a better alternative through solvent selection.

StrategyEncourage selection of “better” solvents by evaluating the following characteristics:– Worker Safety - carcinogenicity, mutagenicity, reprotoxicity, skin

absorption, skin sensitisation and toxicity– Process Safety – flammability, potential for high emissions, static

charge, potential for peroxide formation, odour issues.– Environmental and Regulatory Considerations – ecotoxicity, ground

water contamination potential, EHS regulatory restrictions, ozone depletion potential, photo reactive potential

Take AwayApply Simple Solvent Selection Scheme

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Preferred Outcome

PreferredWaterAcetone Ethanol 2-Propanol 1-Propanol Ethyl Acetate Isopropyl acetate Methanol MEK 1-Butanol t-Butanol

UsableCyclohexane HeptaneToluene Methylcyclohexane TBME IsooctaneAcetonitrile 2-MeTHF THF Xylenes DMSO Acetic Acid Ethylene Glycol

Less DesirablePentane Hexane(s)Di-isopropyl ether Diethyl ether Dichloromethane Dichloroethane ChloroformNMPDMF PyridineDMAc Dioxane DimethoxyethaneBenzeneCarbon tetrachloride

Red Solvents Better Alternative

Pentane Heptane

Hexane(s) Heptane

Di-isopropyl ether or ether 2-MeTHF or t-Butyl methyl ether

Dioxane or dimethoxyethane 2-MeTHF or t-Butyl methyl ether

Chloroform, dichloroethane or carbon tetrachloride

DCM

DMF NMP or DMAc Acetonitrile

Pyridine Et3N (if pyridine used as base)

DCM (extractions) EtOAc, MTBE, toluene, 2-MeTHF

DCM (chromatography) EtOAc / Heptanes

Benzene Toluene

Gaining Efficiency – Product/Packaging

Formed Sustainable Packaging Team seeking opportunities for reducing packaging weight, optimizing designs, changing materials, and improving pallet layouts• Developed Green Package Design Checklist• Thin gauging bottles and foils• Eliminating extra PVC trays• Eliminating inserts and individual cartons can

reduce overall packaging mass by 8%• Smaller tablet that leads to less packaging

Summary

Continued Interest in Environmental Sustainability

• Growing Interest in Environmental Sustainability– Institutions– Governments– Investors

• Gaining Efficiency through Environmental Sustainability– Resource Efficiency – energy, water & waste– Process Chemistry– Green Packaging Design

• Succinctly stated Environmental Sustainability –It’s good for our environment, It’s good for our communities, It’s good for our business

Pfizer is on a Green Journey