Pfizer’s Strategy for a Resilient Procurement Pipeline

Climate change is a recognised risk to global supply chains, healthcare systems and the availability of essential medicines.

For a global bio-pharmaceutical company like Pfizer, the effects of extreme weather and resource scarcity present considerable operational challenges. In response Pfizer is embedding sustainability into its operations and procurement strategy to mitigate these risks.

Pfizer has a history of climate action, setting its first formal GHG reduction target in 2001 and reducing emissions by over 60% between then and 2020.

Building on this, Pfizer committed in 2022 to achieving the voluntary Net-Zero Standard by 2040 a decade earlier than the standard requires. This aligns Pfizer's climate strategy with the recommendations of the Intergovernmental Panel on Climate Change.

Albert Bourla, Chief Executive Officer of Pfizer, says: “We’ve strengthened our foundation advanced our R&D pipeline and positioned our company for sustainable growth in the post-loss of exclusivity period. We’re focused on serving patients with innovative medicines and vaccines while creating long-term value for our shareholders.”

Engaging the value chain on emissions

A large portion of Pfizer's climate action plan is focused on its value chain.

With approximately 80% of its GHG footprint originating from Scope 3 emissions, Pfizer has prioritised collaboration with its partners. Pfizer is aiming to reduce its value chain emissions by 90% by 2040.

A near-term target is to have 64% of its suppliers establish their own science-based emissions reduction targets by 2025. This focus on supplier engagement is critical for procurement leaders looking to secure resilient and sustainable supply lines.

Pfizer also intends to reduce its direct and energy-related emissions by 46% by 2030 from a 2019 baseline with a goal of a 95% reduction by 2040.

Financing sustainable procurement

To fund its environmental and social programmes, Pfizer issued a US$1.25bn sustainability bond in 2020, the first of its kind in the biopharmaceutical industry.

A second US$1bn bond followed in 2021 to help fund expenses related to its Covid-19 vaccine. According to Pfizer, proceeds from these bonds are allocated to managing environmental impacts, strengthening healthcare systems and improving access to medicines for underserved populations.

The framework for the initial bond was evaluated by Sustainalytics, which found it to be credible impactful and in alignment with international sustainability bond principles.

For procurement teams, this sustainable financing signals a long-term commitment to transforming Pfizer's supply chain and operational footprint.

Developing sustainable medicines criteria

Pfizer is working to minimise the environmental impact of its products throughout their lifecycle, from manufacturing and sourcing through to distribution.

This involves addressing GHG emissions, water use and eliminating substances of environmental concern. By integrating circular economy principles alongside green chemistry and biotechnology Pfizer is improving resource efficiency.

A key development for procurement and supply chain partners is the creation of sustainable medicines criteria. This initiative could demonstrate the social and environmental value of its products, improving transparency and accountability across the value chain.

As climate change continues to affect global health, these criteria may become a vital metric for evaluating the sustainability of pharmaceutical procurement.

Pfizer has also established robust climate risk assessments and business continuity programmes to protect its facilities and safeguard supply chains from climate-related disruptions.