ISPE September 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 Trillion WHO 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 Published in JAMA November 11, 2009 Vol. 302, No. 18 pp

External Reporting – disclosure to investors 8 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 11 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 Water Energy Waste Plants Reduce energy, water, waste in internal supply chain Public Share our accomplishments Products Deliver “greener” products and processes Reduced Environmental Impact Reduced Use of Scarce Resources Operational Efficiency / Savings Valued Products Enhanced Relationships Improved Rankings & Reputation Sustainability Culture Reduced Environmental 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

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 Chemistry Case Study: Lyrica (Pregabalin) – process changes  Process 1 ( ) Classical chemistry, carbon based solvents. Used to launch the product  Process 2 ( ) 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 CO 2 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 Identified Use of better alternative solvents makes it safer for workers, processes and the environment, where possible. Green Chemistry - Finding a better alternative through solvent selection. 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 16 Preferred Outcome Preferred Water Acetone Ethanol 2-Propanol 1-Propanol Ethyl Acetate Isopropyl acetate Methanol MEK 1-Butanol t-Butanol Less Desirable Pentane Hexane(s) Di-isopropyl ether Diethyl ether Dichloromethane Dichloroethane Chloroform NMP DMF Pyridine DMAc Dioxane Dimethoxyethane Benzene Carbon tetrachloride Red SolventsBetter Alternative PentaneHeptane Hexane(s)Heptane Di-isopropyl ether or ether2-MeTHF or t-Butyl methyl ether Dioxane or dimethoxyethane2-MeTHF or t-Butyl methyl ether Chloroform, dichloroethane or carbon tetrachloride DCM DMF NMP or DMAcAcetonitrile PyridineEt 3 N (if pyridine used as base) DCM (extractions)EtOAc, MTBE, toluene, 2-MeTHF DCM (chromatography)EtOAc / Heptanes BenzeneToluene

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