Climate Change Data

Environmental Metrics

ESG Focus Areas

• Access to Medicines
• Patient Safety
• Public Policy
• Research & Development
• Environment, Health and Safety
• Colleagues & Community
• Governance

Environmental Achievements

• Achieved a 43% reduction in VOC releases to air and water by 2006, exceeding the 40% goal.
• Achieved an 82% reduction in ODP by 2006, exceeding the 80% goal.
• Achieved a 43% reduction in GHG emissions on a relative basis by 2007, exceeding the 35% goal.

Social Achievements

• Launched MAINTAIN™ program to help unemployed Americans maintain access to Pfizer medications.
• Expanded Global Health Fellows program to Europe and the US.
• Donated more than 145 million treatments of Zithromax for trachoma treatment.

Governance Achievements

• Revised Corporate Governance Principles to allow for independent Board Chair.
• Updated Lead Independent Director Charter.
• Amended bylaws to allow shareholders to call special meetings.
• Redesigned executive compensation program to align with pay-for-performance and shareholder interests.

Climate Goals & Targets

Environmental Challenges

• Economic recession impacting employment and access to healthcare.
• Counterfeit medicines posing risks to patients.
• Challenges in achieving clean energy goals due to plant closures and technology viability.
• Compliance incidents resulting in penalties.

Mitigation Strategies

• Provided laid-off employees with resources for job searching and retraining.
• Increased cooperation with law enforcement to combat counterfeiting.
• Continued implementation of clean energy technologies where feasible.
• Implemented corrective actions to address compliance issues.

Supply Chain Management

Supplier Audits: Close to 400 potential and existing suppliers audited in 2008.

Responsible Procurement

• Onsite quality audits
• EHS and labor assessments
• Training on EHS performance
• Adherence to Pharmaceutical Supply Chain Initiative (PSCI) principles

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3 Application Level B

Sustainable Products & Innovation

• Lyrica® and Lipitor® manufacturing process improvements using Green Chemistry principles.

Awards & Recognition

• US EPA Climate Leaders
• CDP top company for climate change disclosure
• WBENC Top Corporation for Women-Owned Businesses
• Human Rights Campaign 100% rating

Environmental Metrics

ESG Focus Areas

• Data Integrity
• Good Clinical Practice (GCP)
• Patient Safety

Social Achievements

• Improved patient safety through rigorous monitoring and data quality checks.

Governance Achievements

• Implemented a risk management framework to proactively identify and address protocol, regulatory, and GCP non-compliance issues.
• Established a robust quality assurance process based on the Shewhart model (Plan-Do-Check-Act).

Climate Goals & Targets

Environmental Challenges

• Data collection irregularities in clinical trials due to variations in local regulatory requirements, standards, and access to care.
• Maintaining data integrity across numerous international clinical trial sites.

Mitigation Strategies

• Routine monitoring of clinical trials to detect data collection irregularities.
• Conducting quality assurance visits to investigate potential issues and assess the conduct of the study.
• Implementing a risk management framework to prioritize and address potential risks.
• Removing questionable data from efficacy analysis in Clinical Study Reports (CSRs) and explaining the exclusion to regulators.
• Providing transparency to regulators and ethics committees regarding data irregularities and GCP non-compliance.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Supporting Product Innovation
• Ensuring Equitable Access
• Maintaining Product Quality and Safety
• Encouraging Colleague Diversity, Equity, and Inclusion (DEI)
• Mitigating Climate Change

Environmental Achievements

• >60% GHG emissions reductions from a 2000 baseline
• 33% reduction in direct GHG emissions (Scope 1 and 2) in 2020 versus 2012 baseline
• 15% reduction in waste disposed in 2020 versus 2012 baseline
• 19% reduction in water withdrawal in 2020 versus 2012 baseline

Social Achievements

• Reached 58+ million patients through access and affordability programs in 2020
• Ranked 4th out of 20 on the 7th Access to Medicine Index (up from 11th)

Governance Achievements

• Public disclosure of COVID-19 vaccine clinical trial protocol
• Enhanced Board of Directors oversight of ESG and established a dedicated ESG function within the organization

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Product innovation
• Equitable access and pricing
• Product quality and safety
• Diversity, equity and inclusion
• Climate change
• Business ethics

Environmental Achievements

• 7% Reduction in scope 1 and 2 greenhouse gas (GHG) emissions from 2019 baseline
• 15% Reduction in water withdrawal and 13% reduction in hazardous and non-hazardous waste disposed compared to 2020

Social Achievements

• Reached an estimated 1.4 billion patients with our medicines and vaccines
• Implemented new Global DEI Strategy and non-linear colleague growth model
• 90% of colleagues reported feeling engaged
• 3.4% increase of females globally and 3.5% increase of minorities in the U.S. at the Vice President level and above

Governance Achievements

• Named one of the World’s Most Ethical Companies by Ethisphere
• ESG risks were integrated into the ERM process
• ESG Key Performance Indicator (KPI)-linked metrics included in $7 billion, 5-year revolving credit facility

Climate Goals & Targets

Environmental Challenges

• Equitable access to COVID-19 vaccines and treatments
• Climate change impacts on public health and operations
• Antimicrobial resistance (AMR)

Mitigation Strategies

• Pledged to deliver two billion doses of the Pfizer-BioNTech COVID-19 vaccine to low- and middle-income countries
• Licensed intellectual property for COVID-19 oral treatment to the Medicines Patent Pool
• Investing in renewable energy, emission reduction projects, and sustainable design principles
• Engaging suppliers in decarbonization efforts
• Investing in AMR research and development

Supply Chain Management

Supplier Audits: 122 supplier facilities audited in 2021

Responsible Procurement

• Supplier Conduct Principles
• PSCI Principles for Responsible Supply Chain Management
• Environmental criteria integrated into sourcing, contracting, and performance management

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Flooding
• Water availability challenges

Transition Risks

• Carbon pricing schemes
• Increased energy costs
• Stakeholder expectations

Opportunities

• Increased demand for medicines addressing climate-related diseases
• Cost savings from efficiency improvements

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Third-party Assurance: ERM CVS (limited assurance for GHG emissions data)

UN Sustainable Development Goals

• Goal 3
• Goal 6
• Goal 7
• Goal 9
• Goal 12
• Goal 13
• Goal 16

Initiatives aligned with various UN SDGs

Awards & Recognition

• World’s Most Ethical Companies by Ethisphere
• CDP Supplier Engagement Leader for four consecutive years

Environmental Metrics

ESG Focus Areas

• Product innovation
• Equitable access and pricing
• Product quality and safety
• Diversity, equity, and inclusion
• Climate change
• Business ethics

Environmental Achievements

• 11% Reduction in Scope 1 & 2 greenhouse gas (GHG) emissions from 2019 baseline
• Achieved a 95% reduction in company (Scope 1 & 2) greenhouse gas (GHG) emissions and a 90% reduction in value chain (Scope 3) emissions by 2040
• Reduced the quantity of waste sent to landfill by over 5.4 million kilograms since 2019
• Reduced the amount of packaging waste sent to landfill by customers by 90% at Memphis logistics center

Social Achievements

• Launched An Accord for a Healthier World to increase access to medicines and vaccines for 1.2 billion people in 45 lower-income countries
• More than 1.3 billion patients were treated and/or vaccinated by a Pfizer product in 2022
• Improved end-to-end success rate from first-in-human (FIH) to approval at a new molecular entity (NME) level from 2% in 2010 to 18% in 2022
• Reduced median FIH to approval cycle time for new medicines and vaccines from nine years in 2019 to approximately five years in 2022
• Launched Bravo, a global rewards and recognition program

Governance Achievements

• Named one of the World’s Most Ethical Companies by Ethisphere for the second year in a row
• Incorporated ESG KPIs into compensation for 30,000 leaders
• Conducted an independent compliance program review to assess program effectiveness

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (increased adverse impacts on human health and decreased access to critical medicines and vaccines due to value chain disruptions)
• Health inequity (half of the world’s population cannot access the healthcare they need)
• Counterfeit medicines
• Antimicrobial resistance

Mitigation Strategies

• Commitment to achieve the voluntary Net-Zero Standard by 2040
• Launched An Accord for a Healthier World
• Investing in an enterprise-wide, global strategy to combat counterfeit threats
• Multi-faceted approach to combat AMR, including product pipeline, stewardship, infrastructure investments, and tracking

Supply Chain Management

Supplier Audits: 116 supplier facilities audited in 2022

Responsible Procurement

• Responsible Sourcing guidelines
• Supplier Conduct Principles
• Alignment to the Pharmaceutical Supply Chain Initiative (PSCI)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding
• Water scarcity and drought
• Extreme heat

Transition Risks

• Carbon pricing mechanisms
• Stakeholder pressure to decarbonize
• Increasing energy price volatility
• Increasing demand for low-carbon products

Opportunities

• Increased resilience to energy and fuel price volatility
• Increasing demand for low-carbon products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Third-party Assurance: ERM-CVS (limited assurance on GHG emissions data); KPMG LLP (reasonable assurance on Sustainability Bond allocation)

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 5
• Goal 6
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Initiatives contribute to these goals through various programs and strategies outlined in the report.

Sustainable Products & Innovation

• Sustainable product design principles
• Life cycle assessments (LCAs)

Awards & Recognition

• World’s Most Ethical Companies (Ethisphere)
• Best Place to Work (Disability:IN and Human Rights Campaign)
• Forbes’ America’s Best Employers for Diversity and Veterans
• Five-star rating on the Hispanic Association on Corporate Responsibility Inclusion Index™

Environmental Metrics

ESG Focus Areas

• Climate change
• Colleague diversity, equity, and inclusion
• Equitable access and pricing
• Product innovation
• Business ethics
• Product quality and safety

Environmental Achievements

• 13.9% Reduction in Scope 1 & 2 greenhouse gas (GHG) emissions from 2019 baseline
• Executed renewable electricity virtual power purchase agreements (VPPAs) to cover the equivalent of Pfizer’s purchased electricity for its manufacturing, research and development (R&D), and commercial sites in the European Union.
• 51% of our suppliers by spend have or have committed to develop science-based GHG emissions reduction targets.

Social Achievements

• Launched a new initiative: the Patient Advocacy Leadership Collective
• Completed its acquisition of Seagen Inc.
• Increased representation for women at the VP level and above to 44.8% (from 43.1% in 2022)
• Increased representation for U.S. minorities at the VP level and above to 30.5% (from 28.1% in 2022)
• Reduced voluntary employee turnover to 5.8% (from 7.3% in 2022)

Governance Achievements

• Named one of the World’s Most Ethical Companies by Ethisphere for the third year in a row
• ESG KPIs factored into the compensation of over 40,000 Pfizer leaders
• Independent compliance program review to assess program effectiveness and identify opportunities for continuous learning and enhancement.

Climate Goals & Targets

Environmental Challenges

• Climate change and its potential impacts on human health and access to medicines
• Counterfeit medicines posing a significant risk to patient health and safety
• Supply chain disruptions due to climate events (e.g., the July 2023 tornado in Rocky Mount, NC)
• Addressing inequities in health outcomes among populations

Mitigation Strategies

• Commitment to achieve the voluntary Net Zero standard by 2040
• Enterprise strategy to combat counterfeit threats through patient education, legislative advocacy, surveillance, and interdiction
• Business resilience planning to reduce the impact of incidents on manufacturing and supply
• Modernized approach to access, focused on affordability and delivery for patients with the greatest coverage gaps and out-of-pocket exposure
• Investments in sustainable science, including life cycle assessments (LCAs) to identify opportunities for impact reduction

Supply Chain Management

Supplier Audits: 109 supplier facilities assessed in 2023

Responsible Procurement

• Supplier Conduct Principles
• Pharmaceutical Supply Chain Initiative (PSCI) Principles

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity and drought
• River and extreme rainfall flooding
• Extreme heat

Transition Risks

• Carbon policy & legal
• Stakeholder pressure to decarbonize capital assets
• Increasing energy price volatility
• Increasing demand for low-carbon products

Opportunities

• Increased resilience to energy and fuel price volatility
• Increasing demand for low-carbon products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Third-party Assurance: ERM-CVS (limited assurance for GHG emissions data)

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions
• Goal 17: Partnerships for the Goals

Pfizer's initiatives contribute to these goals through various programs and commitments related to access to medicines, diversity and inclusion, sustainable practices, climate action, and ethical business conduct.

Awards & Recognition

• World’s Most Ethical Companies (Ethisphere)
• Best Place to Work (Disability:IN and Human Rights Campaign)
• World’s Best Employers (Forbes)
• Best Employers for Diversity (Forbes)
• America’s Greatest Companies (Time)