ISPE September 12, 2013

1. ISPESeptember 12, 2013 Gaining Efficiencies in Pharmaceutical Operations Pfizer’s Green Journey

2. Overview • Global Interest in Environmental Sustainability • Gaining Efficiency through Environmental Sustainability

3. 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 Trillion WHO Global Health Expenditure Atlas, 2012 • Current population roughly 7.1 Billion United Nations

4. 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.

5. Healthcare Impacts - Direct & Supply Chain X ~35% Direct State of Green Business 2013, GreenBiz

6. UK NHS Footprint – Scope 3 Emissions • NHS Industry partnership developed Product Life Cycle Accounting Standard • Aimed to support consistent quantification of the carbon footprint of pharmaceutical products and medical devices NHS SDUGHG Protocol UK NHS Footprint 2010

7. US Health Care Greenhouse Gas Emissions Published in JAMA November 11, 2009 Vol. 302, No. 18 pp 1970-71

8. External Reporting – disclosure to investors 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.

9. 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

10. Overview • Global Interest in Environmental Sustainability • Gaining Efficiency through Environmental Sustainability

11. Pfizer’s Green Journey – Expanding beyond fence lines • Build on Achievements • Report on Progress • Gain Recognition as a Leader • Reach Beyond Our Boundaries Working throughout Product Lifecycle Manufacturing & Packaging Engaging with Customers Partnering Across Supply Chain • Responsible Supply Chain Initiatives • Supplier Survey • Capacity building • Understanding Customer Requirements • Procurement • Tenders Delivery to Manufacturing Delivery to Customers Colleagues Suppliers & Ingredients Use & Disposal

12. Pfizer’s Green Journey – Keeping it On Track • Reduce Impact • Improve Efficiency Our Strategies Our Delivery Platforms Our Objectives • Greener Products PlantsReduce energy, water, waste in internal supply chain Reduced Environmental Impact Reduced Use of Scarce Resources Operational Efficiency / Savings Valued Products Enhanced Relationships Improved Rankings & Reputation Sustainability Culture • Engage Colleagues Energy Waste Water PartnersPromote green practices across our supply chain • Public Outreach and Reporting ProductsDeliver “greener” products and processes • Embed Sustainability PeoplePromote and enable green practices PublicShare our accomplishments Environmental Sustainability Council Our Value Pillars

13. Pfizer’s Green Journey – Company Footprint 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 http://www.pfizer.com/investors/financial_reports/annual_reports/2012/performance.jsp

14. 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.

15. Gaining Efficiency - Processes A Decade of Green Chemistry Case 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 CO2emissions. Or equivalent to 500,000 US cars off the road for a year.

16. Green Chemistry- Finding a better alternative through solvent selection. Less Desirable Pentane Hexane(s) Di-isopropyl ether Diethyl ether Dichloromethane Dichloroethane Chloroform NMP DMF Pyridine DMAc Dioxane Dimethoxyethane Benzene Carbon tetrachloride Preferred Water Acetone Ethanol 2-Propanol 1-Propanol Ethyl Acetate Isopropyl acetate Methanol MEK 1-Butanol t-Butanol Usable Cyclohexane Heptane Toluene Methylcyclohexane TBME Isooctane Acetonitrile 2-MeTHF THF Xylenes DMSO Acetic Acid Ethylene Glycol Strategy Encourage 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 Away Apply Simple Solvent Selection Scheme Preferred Outcome Opportunities Identified • Use of better alternative solvents makes it safer for workers, processes and the environment, where possible.

17. 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

18. 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