Corporate EHS Strategic Perspective

1. Corporate EHS Strategic Perspective Michael Rottas Associate Director, Environmental Health & Safety Pfizer Global R&D – Groton/New London Laboratories

2. Pfizer is the largest pharmaceutical company in the world. • Human health • Consumer health care • Animal health • ~120,000 employees worldwide • Operations in 150 countries • Largest privately funded research organization in the world. • Now ~$8 billion/year • Groton Labs ~$1.5 billion/year

3. Global Environmental Management Initiative (GEMI) member • UN Global Compact member • EPA Climate Leaders participant • Public Environmental Goals: • Reduce CO2 emissions by 35% by 2007 (2000 as baseline) • 35% of global electricity needs by 2010 from clean sources • Phase out of Class I ODCs by 12/31/2005

4. Where we were… • EHS professionals, in Corporate setting, were necessary overhead due to compliance requirements • Outsiders from manufacturing and operating units • Us vs. them • Niche role • Reactive • After the fact • End-of-line control

5. Where we are… • EHS professionals are a respected participant in the business process • We are at the table • Resource for business risk minimization and continuity planning (post Y2K, post 9/11/2001) • Skills transferable, financially savvy • Proactive and preventative • Third party EMS registrations

6. Where we are going… • Holistic approach to sustainable practices • Integrated EHS management systems • No longer separate, but integrated into core business functions • Technical professionals with sophisticated business skills (MBAs routine) • Everyone is involved, cultural approach

7. Industrial Evolution • Sustainability becoming more commonplace within the core business of leading businesses • Hybrid cars becoming mainstream • Petrochemical companies working on alternative fuels • Carpet companies making recyclable carpets • Pharmaceutical companies doing green chemistry • Investment firms recognize value in sustainable practices

8. What is green chemistry? “…the utilization of a set of principles that reduces or eliminates the use or generation of hazardous substances in the design, manufacture and application of chemical products.” *Source: Paul T. Anastas and John C. Warner, Green Chemistry: Theory and Practice (New York, NY: Oxford University Press Inc., 1998). ISBN 0 19 850698 8

9. 12 Principles of Green Chemistry* • It is better to prevent waste than to treat or clean up waste after it has formed. • Synthetic methods should be designed to maximize the incorporation of all materials used in the process into the final product. • Wherever practicable, synthetic methodologies should be designed to use and generate substances that possess little or no toxicity to human health and the environment. • Chemical products should be designed to preserve efficacy of function while reducing toxicity. • The use of auxiliary substances (e.g. solvents, separation agents, etc.) should be made unnecessary wherever possible and innocuous when used. • Energy requirements should be recognized for their environmental and economic impacts and should be minimized. Synthetic methods should be conducted at ambient temperature and pressure.

10. 12 Principles of Green Chemistry* • A raw material or feedstock should be renewable rather than depleting wherever technically and economically practicable. • Unnecessary derivatization (blocking group, protection/deprotection, temporary modification of physical/chemical processes) should be avoided wherever possible. • Catalytic reagents (as selective as possible) are superior to stoichiometric reagents. • Chemical products should be designed so that at the end of their function they do not persist in the environment and break down into innocuous degradation products. • Analytical methodologies need to be further developed to allow for real-time, in-process monitoring and control prior to the formation of hazardous substances. • Substances and the form of a substance used in a chemical process should be chosen so as to minimize the potential for chemical accidents, including releases, explosions and fires.

11. Raw Materials Energy Natural Resources Product NDA PGM Intellectual Property Raw Materials Waste Energy Global R&D Clinical Supply Natural Resources Air Emissions Solid/Hazardous Wastes Wastewater

12. Raw Materials Energy Natural Resources Product NDA PGM Intellectual Property Raw Materials Waste Energy Global R&D Clinical Supply Natural Resources Air Emissions Control at the source, treat on or off-site, recycle where possible. Reduce, reuse, recycle. Solid/Hazardous Wastes Wastewater Waste Minimization Pollution Prevention

13. Green Chemistry Raw Materials Energy Natural Resources Product NDA PGM Intellectual Property Raw Materials Waste Energy Global R&D Clinical Supply Natural Resources Air Emissions Solid/Hazardous Wastes Wastewater Waste Minimization Pollution Prevention

14. Sertraline (Zoloft) • Solvent use reduced from 60,000 to 6,000 gallons per ton of sertraline • Eliminated the use of 440 metric tons of titanium dioxide per year • Eliminating the use 150 metric tons of 35% hydrochloric acid per year • Eliminating the use of 100 metric tons of 50% sodium hydroxide per year • Increasing the efficiency of raw material, water and energy use • And, doubled the product yield.

15. Sertraline Process – Solvent Waste/Kg

16. EPA’s Presidential Green Chemistry Challenge Award - 2002

17. Pyridine Toluene t-Butanol 2-Butanone Ethyl Acetate Ether Methanol Ethanol Acetone Methylene Chloride How the amount of waste produced in the manufacture of sildenafil (L of waste/kg of product) has decreased over the past 13 years. 1816 L/kg 139 L/kg 31 L/kg 10 L/kg Medicinal Optimized Commercial Route Commercial Route Chemistry Med. Chemistry (1997) following solvent 1990 1994 recovery

18. Who “does” green chemistry? • Chemists • EHS folks may assist with making the business case and providing inspiration/recognition, but ultimately it’s the chemists who do this. • Example of integration

19. Why Green Chemistry? • Meets the challenge of the triple bottom line: • Economic • Social • Environmental

20. Green Chemistry & TBL Economic Aspect • Lower cost of raw materials • Lower costs for environmental permitting and regulatory requirements • Lower costs on engineering controls for employee safety • Risk of loss due to accidents, on a macro perspective, decreases • Lower costs for environmental emissions control and treatment • Lower costs associated with inventory control • Competitive advantage

21. Green Chemistry & TBL Social Aspect • Fence line issues (odors, unplanned releases) • Resource sustainability for future generations • Public outreach/education programs • Pfizer reputation – they expect us to do this

22. Green Chemistry & TBL Environmental Aspect • More efficient use of non-renewable natural resources • Less impact on the environment due to permitted wastewater discharges, air emissions, and hazardous waste treatment • Less risk of incidents and unplanned releases • Smaller environmental footprint

23. The Nobel Prize in Chemistry 2005The Royal Swedish Academy of Sciences has decided to award the Nobel Prize in Chemistry for 2005 jointly toYves ChauvinInstitut Français du Pétrole, Rueil-Malmaison, France,Robert H. GrubbsCalifornia Institute of Technology (Caltech), Pasadena, CA, USA andRichard R. SchrockMassachusetts Institute of Technology (MIT), Cambridge, MA, USA“for the development of the metathesis method in organic synthesis.”