Task Force on Climate-Related Financial Disclosure (TCFD)

CDP C1.1a

Pfizer’s Enterprise Risk Management (ERM) program provides a framework for risk identification and management of significant risks, including those potentially associated with climate change. ERM is conducted at the direction of Legal, and the Audit Committee of the Board of Directors has primary responsibility for overseeing Pfizer’s ERM program. Each risk has a defined risk reduction plan directed by a member of the Executive Leadership Team. 

CDP C1.2a

Product manufacturing at our internal network of sites, managed by Pfizer’s Global Supply division (PGS), accounts for 70% of the company’s energy consumption and greenhouse gas (GHG) emissions. The President of PGS has operational control over PGS operations and strategy, including financial investment in emission reduction projects. Environmental sustainability has been integrated into the overarching PGS strategy, and GHG emissions reduction is monitored as a key performance indicator. Performance against our company environmental goals (which include contributions from manufacturing and other business divisions) is periodically reviewed with our Chief Financial Officer and Executive Vice President of Global Supply & Business Operations.

CDP C2.3a & C2.4a

Pfizer has identified risks with the potential to have a strategic impact on our business, including increases in operating costs due to introduction of carbon taxation schemes (short- and medium-term), reduced revenue and potential impact on the supply of medically necessary products resulting from disruption caused by climate-related severe weather events (short-, medium- and long-term), and potential impacts to reputation (short-, medium- and long-term). Opportunities include reductions in operating costs resulting from efficiency improvements (short- and medium-term), increased demand for lower-carbon products (medium- and long-term), increased need for medicines resulting from climate-related diseases (medium- and long-term), and increased revenues through demand from new and emerging markets as disease patterns shift (medium- and long-term).

CDP 2.5, 2.6, 3.1c

Climate-related risks and opportunities have influenced our climate change strategy. In an effort to mitigate the acute and chronic physical impacts of climate change on our operations (e.g., more severe weather events, population displacement, etc.), we have taken steps to voluntarily reduce our greenhouse gas emissions in line with a science-based target and are working with key suppliers to do the same. Through our public disclosures and engagement with external organizations (e.g., SBTi, Climate Solutions Working Group/U.S. Chamber of Commerce, World Resources Institute, Pharmaceutical Environmental Group and the Pharmaceutical Supply Chain Initiative), we aim to influence other companies to also apply science-based targets to their operations. We have implemented business continuity and disaster recovery programs to ensure our physical operations and supply chains are taking steps to mitigate the risk and impact of interruption. We have identified and leveraged opportunities to progress projects that improve operational efficiency and engage with stakeholders to explore markets for environmentally preferable products. Refer to our2019 CDP response for additional detail on how climate-related risks have impacted our business, strategy and financial planning.

CDP C3.1g

Pfizer has completed an assessment of physical risk for all of our manufacturing facilities and for over 5,000 of our suppliers using climate modeling scenarios predicting temperature increases ranging from 0.2⁰C to 3⁰C. For our internal manufacturing sites, the output of this analysis supports decisions related to business continuity and disaster recovery programs at the sites. We are currently evaluating how the results of this predictive analysis can best support inclusion of climate-related scenario analysis in business strategy development going forward.  

CDP C2.2b

Pfizer identifies and assesses climate change risk as part of our Global EHS & Business Continuity risk management process. Under this process, we conduct Operational Risk Evaluations, which are structured evaluations of risks with the potential to have substantive impact to Pfizer. Here, we define “substantive risk” as any impact that could adversely impact the company’s business or financial condition or disrupt, delay or inhibit the supply of medically necessary products to patients. The process further evaluates the controls in place to manage or mitigate the risk and a determination of the adequacy of the control of risk. Climate change risk, including physical, regulatory, reputational and market and technology, is evaluated by a team that includes relevant program leaders and subject matter experts from EHS, Global Engineering, Business Resilience, Corporate Affairs, Compliance, Legal and Audit. Outcomes of this risk assessment that meet pre-defined thresholds are escalated to divisional, executive and board-level committees and Pfizer’s Enterprise Risk Management program, which provides a framework for risk identification and management of significant risks, including those potentially associated with climate change.

CDP C 2.2d

Acute and chronic physical risks related to climate change are managed through Pfizer’s Insurance and Business Continuity teams at the enterprise and local levels. Members from those teams participate in the risk review process that addresses Business Continuity/Resiliency and provide input on the potential impact of physical risks that may be related to climate change (e.g., severe weather events, flooding).

Reputational risks are managed through our process to transparently disclose information related to our climate change program and engage with key stakeholders to help lead the conversation on voluntary actions companies can take to address their greenhouse gas emissions.

Regulatory risks are managed through regulatory development tracking and analysis enabled by our Legal and Global EHS teams.  

Market and technology risks are monitored and managed through our Global EHS & Business Continuity risk management process.

CDP C2.2d

Pfizer has integrated climate change into divisional and enterprise risk management processes, which include a periodic review of risk that could be material to the company (SEC 10-K reporting). Assessment includes an evaluation of facility and supply chain activities (performed through our insurance and business continuity/EHS functions and Operational Risk Review process) to ensure climate change risks are understood and, if appropriate, acted on.

CDP C4

Pfizer calculates Scope 1 and 2 emissions in accordance with the GHG Protocol (revised edition). Our 2018 GHG footprint (including full Scope 3) was independently assured pursuant to ISO 14064-3 by ERM CVS, and verification of 2019 data is underway. Emissions are reported annually in our CDP response and are broken down by type, country and business division. We also track metrics relative to our business continuity and disaster recovery programs (e.g., number of supplier assessments completed; sites with fully implemented plans for the management of risk associated with natural perils such as flooding and severe weather, noting it is not possible to state with certainty whether individual weather events are a result of climate change). See our2019 CDP response for additional information. 

CDP C6

Pfizer discloses our Scope 1, Scope 2 and Scope 3 emissions annually through our CDP submittal and publishes our Scope 1 and 2 emissions in our Annual Review and on ourwebsite.

CDP C4.1 & C4.1a

Pfizer has a science-based absolute target to reduce greenhouse gas (GHG) emissions by 20% by 2020 compared to a 2012 baseline, which keeps us on the trajectory to reduce our GHG footprint by 60%-80% by 2050 from a 2000 base year (based on IPCC 4th Assessment report, published at the time the goal was set). Pfizer has previously achieved two GHG reduction goals (2000-2007 and 2007-2012). It is our intention to continue this process of setting interim goals that help drive toward our 2050 aspirational target that aligns with the level of ambition needed to limit global temperature rise in line with the best available science.

Pfizer expects our sites and suppliers to have fully implemented business continuity and disaster recovery plans.