Gaining Efficiencies in Pharmaceutical Operations Pfizers Green Journey

Gaining Efficiencies in Pharmaceutical Operations Pfizer’s Green Journey Tom Polton Sr. Dir. Product Stewardship and Environmental Sustainability tom. polton@pfizer. com NAM September 17, 2013

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, Green. Biz

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 SDU GHG Protocol UK NHS Footprint 2010

US Health Care Greenhouse Gas Emissions Estimates of Greenhouse Gas Emissions from US Health Care Sector Administrative/Insurance Home Healthcare Scientific Research Nondurable and Durable Equipment Other Professional Nursing Homecare Structures/equipment Physician/Dental Service Prescription Drugs Hospital TOTAL GLOBAL WARMING POTENTIAL FOR US HEALTHCARE 800 MMTCO 2 Eq 0% 10% 20% 30% * Based on National Expenditures 2007 Published in JAMA November 11, 2009 Vol. 302, No. 18 pp 1970 -71 40% 50%

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 climaterelated innovation and carbon management. 8

Green Procurement Trends in Healthcare The Present • Institutional Tenders • Group Procurement Programs Emerging • The Sustainability Consortium (Wal. Mart) • Swedish National Pharmaceutical Strategies The Future • Green Government Procurement Programs

Overview § Global Interest in Environmental Sustainability § Gaining Efficiency through Environmental Sustainability

What Does Corporate Responsibility Mean at Pfizer? What We Do + How We Do It = Corporate Responsibility Who Cares? • Governments • Investors • Multilateral Organizations • Nongovernmental Organizations • Patients • Physicians • Media What Do They Care About? • How we operate our business • How we grow in emerging markets • How we influence public policy • How we help meet health needs around the world Why Do We Care? Stakeholders Affect Our Business 11

Corporate Responsibility is … Access To Medicines …the way The Environment Pfizer operates and is held accountable for conducting business Responsible Transparency and responsibly Research & Development Corporate Citizenship Integrity Product Quality 12

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 Delivery to Manufacturing Suppliers & Ingredients Colleagues Understanding Customer Requirements • Procurement • Tenders Delivery to Customers Use & Disposal 13

Pfizer’s Green Journey – Keeping it On Track Our Strategies Reduce Impact Improve Efficiency Greener Products Our Delivery Platforms Our Objectives Reduced Reduce energy, water, waste in intern Environmental Plants Impact Partners Reduced Use of Promote green practices across ou Scarce Resources Products Operational Efficiency / Savings Deliver “greener” products Valued Products Engage Colleagues Public Outreach and Reporting Embed Sustainability People Enhanced Promote and enable Relationships Improved Rankings & Reputation Share our acc Public Environmental Sustainability Council Energy Waste Our Value Pillars Water Sustainability Culture

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

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

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 CO 2 emissions. Or equivalent to 500, 000 US cars off the road for a year.

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 Opportunities Identified Use of better alternative solvents makes it safer for workers, processes and the environment, where possible. Preferred Outcome Take Away Apply Simple Solvent Selection Scheme Preferred Usable Less Desirable Water Acetone Ethanol 2 -Propanol 1 -Propanol Ethyl Acetate Isopropyl acetate Methanol MEK 1 -Butanol t-Butanol Cyclohexane Heptane Toluene Methylcyclohexane TBME Isooctane Acetonitrile 2 -Me. THF Xylenes DMSO Acetic Acid Ethylene Glycol Pentane Hexane(s) Di-isopropyl ether Diethyl ether Dichloromethane Dichloroethane Chloroform NMP DMF Pyridine DMAc Dioxane Dimethoxyethane Benzene Carbon tetrachloride Red Solvents Better Alternative Pentane Heptane Hexane(s) Heptane Di-isopropyl ether or ether 2 -Me. THF or t-Butyl methyl ether Dioxane or dimethoxyethane 2 -Me. THF or t-Butyl methyl ether Chloroform, dichloroethane or carbon tetrachloride DCM DMF NMP or DMAc Acetonitrile Pyridine Et 3 N (if pyridine used as base) DCM (extractions) Et. OAc, MTBE, toluene, 2 -Me. THF DCM (chromatography) Et. OAc / Heptanes Benzene Toluene Confidential and Internal use only. All content in this message is subject to works council and/or union consultations and other legal requirements.

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 Pfizer is on a Green Journey • 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