Gaining Efficiencies in Pharmaceutical Operations Pfizer’s Green Journey ISPE September 12, 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, GreenBiz 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 0% TOTAL GLOBAL WARMING POTENTIAL FOR US HEALTHCARE 800 MMTCO2 Eq 5% 10% 15% 20% 25% 30% * Based on National Expenditures 2007 Published in JAMA November 11, 2009 Vol. 302, No. 18 pp 1970-71 35% 40% 45% 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 (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 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 Colleagues Suppliers & Ingredients Understanding Customer Requirements • Procurement • Tenders Delivery to Customers Use & Disposal 11 Pfizer’s Green Journey – Keeping it On Track Our Strategies Reduce Impact Improve Efficiency Greener Products Our Delivery Platforms Plants Our Objectives Reduce energy, water, waste in internal supply chain Partners Products Promote green practices across our supply chain Deliver “greener” products and processes Reduced Environmental Impact Reduced Use of Scarce Resources Operational Efficiency / Savings Valued Products Engage Colleagues Public Outreach and Reporting Embed Sustainability People Promote and enable green practices Public Share our accomplishments Environmental Sustainability Council Energy Waste Our Value Pillars Water Enhanced Relationships Improved Rankings & Reputation 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 $85M 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 CO2 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 Water Acetone Ethanol 2-Propanol 1-Propanol Ethyl Acetate Isopropyl acetate Methanol MEK 1-Butanol t-Butanol Usable Less Desirable 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-MeTHF or t-Butyl methyl ether Dioxane or dimethoxyethane 2-MeTHF or t-Butyl methyl ether Chloroform, dichloroethane or carbon tetrachloride DCM DMF NMP or DMAc Acetonitrile Pyridine Et3N (if pyridine used as base) DCM (extractions) EtOAc, MTBE, toluene, 2-MeTHF DCM (chromatography) EtOAc / 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 – – – • Gaining Efficiency through Environmental Sustainability – – – • Institutions Governments Investors 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