Sr Dir Product Stewardship and Environmental Sustainability tompoltonpfizercom NAM September 17 2013 Gaining Efficiencies in Pharmaceutical Operations Pfizers Green Journey Overview Global Interest in Environmental Sustainability ID: 464321
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Tom PoltonSr. Dir. Product Stewardship and Environmental Sustainabilitytom.polton@pfizer.com NAMSeptember 17, 2013
Gaining Efficiencies in Pharmaceutical Operations
Pfizer’s Green JourneySlide2
OverviewGlobal Interest in Environmental Sustainability
Gaining Efficiency through Environmental Sustainability
Slide3
Healthcare’s Greenhouse Gas EmissionsHealthcare roughly 3-5% of global GHG emissionsUnited States healthcare roughly 8-12% of country GHG emissions ERM estimateTotal global health expenditure US$ 6.5 Trillion WHO Global Health Expenditure Atlas, 2012
Current population roughly
7.1 Billion
United NationsSlide4
NHS SDUSustainable Development Unit set up in 2008 Working across the health sector in EnglandTo develop organisations, people, tools, policy and research which will enable organisations to promote sustainable development, to mitigate and to adapt to climate change.Slide5
Healthcare Impacts - Direct & Supply Chain
X ~35% Direct
State of Green Business 2013,
GreenBizSlide6
UK NHS Footprint – Scope 3 EmissionsUK 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 devicesSlide7
US Health Care Greenhouse Gas EmissionsPublished in JAMANovember 11, 2009 Vol. 302, No. 18 pp 1970-71Slide8
External Reporting – disclosure to investors8
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. Slide9
Green Procurement Trends in HealthcareThe PresentInstitutional TendersGroup Procurement ProgramsEmergingThe Sustainability Consortium (WalMart)Swedish National Pharmaceutical StrategiesThe FutureGreen Government Procurement ProgramsSlide10
OverviewGlobal Interest in Environmental Sustainability
Gaining Efficiency through Environmental Sustainability
Slide11
11
What We Do + How We Do It = Corporate Responsibility
Who Cares?
What Do They
Care About
?
Why Do
We Care?
Governments
Investors
Multilateral Organizations
Nongovernmental Organizations
Patients
Physicians
Media
Stakeholders
Affect
Our
Business
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
What Does
Corporate Responsibility
Mean at Pfizer?Slide12
Corporate Responsibility is …
Corporate
Citizenship
The
Environment
Responsible
Research & Development
Product Quality
Transparency and
Integrity
Access
To
Medicines
…the way
Pfizer operates and
is held
accountable for conducting business responsibly
12Slide13
Pfizer’s Green Journey – Expanding beyond fence lines13
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
ColleaguesSlide14
Pfizer’s Green Journey – Keeping it On TrackWater
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
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 Slide15
http://www.pfizer.com/investors/financial_reports/annual_reports/2012/performance.jsp
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 FootprintSlide16
Gaining Efficiency – Site OperationsAchieved 5-yr Public Goal to Reduce Greenhouse Gas Emissions by 20% after only 4 yearsSecond 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.Slide17
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.
Gaining Efficiency -
ProcessesSlide18
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
18
Preferred Outcome
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
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
Et
3
N (if pyridine used as base)
DCM (extractions)
EtOAc
, MTBE, toluene, 2-MeTHF
DCM (chromatography)
EtOAc
/ Heptanes
Benzene
TolueneSlide19
Gaining Efficiency – Product/PackagingFormed 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 packagingSlide20
SummaryContinued Interest in Environmental SustainabilityGrowing Interest in Environmental SustainabilityInstitutionsGovernmentsInvestorsGaining Efficiency through Environmental SustainabilityResource Efficiency – energy, water & wasteProcess ChemistryGreen Packaging DesignSuccinctly 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