Inside Pfizer’s Climate-Ready Supply Chain Strategy

Climate change poses mounting challenges to pharmaceutical supply chains worldwide, disrupting everything from raw material sourcing to medicine distribution.

For global biopharmaceutical companies, these disruptions could threaten the delivery of essential medicines to patients who depend on them.

Pfizer is working to address these vulnerabilities by integrating climate action throughout its supply chain operations.

The company's approach combines emissions reduction targets with supply chain resilience planning, recognising that approximately 80% of its greenhouse gas footprint originates within its value chain.

This reality positions suppliers, logistics partners and distribution networks at the centre of the company's climate strategy.

Science-based emissions targets

Pfizer has been addressing climate-related emissions since 2001, when it established its first formal greenhouse gas (GHG) reduction target. Between 2001 and 2020, the company reduced its GHG emissions by more than 60%, according to its environmental reporting.

In 2015, Pfizer became one of the first companies to have its emissions reduction targets validated by the Science Based Targets initiative. The company committed in 2022 to achieving the voluntary net-zero standard by 2040, 10 years earlier than required by the standard.

This commitment aligns the company's climate strategy with recommendations from the Intergovernmental Panel on Climate Change. Pfizer aims to reduce Scope 1 and 2 emissions by 46% by 2030 compared to a 2019 baseline, progressing towards a 95% reduction by 2040.

A key component of this transition includes procuring 100% of electricity from renewable sources by 2030. This renewable energy commitment forms part of the company's broader strategy to transform its operational footprint and reduce direct emissions from its facilities worldwide.

Value chain decarbonisation efforts

The company's supply chain accounts for the majority of its environmental impact. Recognising this, Pfizer has prioritised action on Scope 3 emissions, which encompass suppliers, logistics and business travel throughout its value chain.

Pfizer is working to reduce value chain emissions by 90% by 2040. By 2025, the company aims for 64% of its suppliers to set science-based emissions reduction targets, embedding climate accountability throughout its procurement processes.

Albert Bourla, CEO of Pfizer, says: "We have strengthened our foundation, advanced our research and development (R&D) pipeline and positioned our company for sustainable growth in the post-loss of exclusivity period.

"We are focused on serving patients with innovative medicines and vaccines while creating long-term value for our shareholders."

The company has established climate risk assessments and business continuity programmes to protect facilities and safeguard supply chains against increasing climate-related disruptions. These measures could help maintain medicine availability even as extreme weather events and resource scarcity intensify.

Sustainable finance and resilience

In 2020, Pfizer issued a US$1.25bn sustainability bond, the first of its kind within the biopharmaceutical sector, to support environmental and social initiatives. Proceeds from the bond are being used to manage environmental impacts, strengthen healthcare systems and expand access to medicines and vaccines, particularly for underserved populations.

The bond framework was assessed by Sustainalytics as credible, impactful and aligned with leading international sustainability bond principles. Pfizer issued a further US$1bn sustainability bond in 2021 to help fund Covid-19 vaccine expenses.

Pfizer is working to reduce the environmental impact of its medicines across their full lifecycle, from manufacturing through to distribution. This includes addressing GHG emissions, water scarcity and discharge and the elimination of substances of environmental concern.

The company is also integrating circular economy principles and green chemistry and biotechnology into its processes to improve resource efficiency.

As climate change increasingly affects global health, Pfizer is also expanding access to medicines and vaccines, particularly in communities disproportionately impacted by climate-related risks.

By developing sustainable medicines criteria, Pfizer aims to demonstrate the social and environmental value of its products while improving supply chain transparency and accountability.