PSCI. Expectations for Overall Environmental Management. Why Performance and Reputation Matters. Director, Environment Pfizer Inc

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1 PHARMACEUT ICAL INIT IAT IVE Expectations for Overall Environmental Management Why Performance and Reputation Matters Presented by: Richard Davis Director, Environment Pfizer Inc

2 Agenda 1 Why Environmental Performance and Reputation Matters 2 The Environmental Principles P S C I O v e r v i e w P r e s e n t a t i o n F e b r u a r y,

3 The Global Supply Chain Performance Expectations The global marketplace has created complex supply chains, with increased social, economic and environmental risks The extent to which we manage the environmental aspects of our supply chains responsibly is a key measure of our Corporate Social Responsibility competency Global companies are subject to increased scrutiny by NGOs, investors, and the media in relation to their supply footprint, and in particular their environmental impact Consumers increasingly expect to buy from companies who "purchase responsibly", respecting the rights of citizens in local communities P S C I O v e r v i e w P r e s e n t a t i o n F e b r u a r y,

4 Stakeholder Expectations and Impacts on Reputation Antimicrobial Resistance Pharmaceuticals in the Environment Environmental Impact Business Continuity NGO s Universities Investors Main Stream Media Case Studies Research Studies Investigative Journalists Social Media 4

5 Case Studies Significant early study by Larsson (2007) indicating high levels of pharmaceuticals were present in the effluent from the Patancheru wastewater treatment plant near Hyderabad, India which served approximately 90 bulk drug manufacturers The study called for an increased focus on the potential release of active pharmaceutical ingredients from production facilities 5

6 Research Studies Other research papers and studies have also looked at the potential impacts of antibiotics on the environment --- including papers commissioned and published in the EU and India Antibiotic Pollution in the Environment, R. Gothwali and T. Shashidahar, Clean Soil Air Water, May 2014 Antimicrobials in Agriculture and the Environment Reducing Unnecessary Use and Waste, J. O Neill, HM Government & Welcome Trust, December

7 Investors Nordea Wealth Management produced a video (2015) and report (2016) on the impacts of pharmaceutical pollution on communities and the environment in India, with a focus on the Hyderabad region (Nordea Report) 7

8 General Calls for Action by NGO s 2015: SumOfUS, an NGO, produced a report on the potential impacts of the pharmaceutical industry on the rise of antibiotic resistance with a focus on China and India (SumOfUs) 2016: The European Public Health Alliance published a report calling for the UK NHS to stop sourcing from pharmaceutical companies contributing to the spread of AMR (EPHA) 8

9 Mainstream Media Coverage Mainstream media has picked up on the work by Nordea, SumOfUs and EPHA Frequency of media coverage is increasing The Cost of Cheap Drugs? Toxic Indian Lake is Superbug Hotspot, Reuters, September 28, 2016 Millions at Risk as Deadly Fungal Infections Acquire Drug Resistance, The Observer, R. McKie, August 27,

10 Dramatic Research and Demonstrations Harvard Medical School and Technion Institute of Technology demonstrate how bacteria move as they become immune to antibiotics Cinematic Approach to Drug Resistance YouTube Video *A Cinematic Approach to Drug Resistance, Harvard Gazette, September 8,

11 Global Response on AMR World Health Assembly 2015 Geneva (WHO) Global Action Plan on Antimicrobial Resistance Improve awareness of AMR, strengthen knowledge through surveillance and research, reduce the incidence of infection, optimize the use of antimicrobial agents, develop the economic case for sustainable investment World Economic Forum 2016 Davos Declaration of Pharma/Biotech/Diagnostics to Combat AMR Pharma signatories Reducing development of drug resistance, increasing investment in R&D, improving access to high-quality antibiotics International Federation of Pharmaceutical Manufacturer s and Associations Industry Roadmap and Combating Antimicrobial Resistance 13 companies signed the Roadmap UN General Assembly 2016 Countries reaffirm commitment to develop national action plans on AMR based on a Global Action Plan on Antimicrobial Resistance 11 11

12 Industry Roadmap on Combating AMR Support measures to reduce environmental impact Review manufacturing and supply chains to assess good practices in controlling releases of antibiotics Establish common framework for managing antibiotic discharge building on existing work such as, and start to apply it across our own manufacturing and supply chain by 2018 Work with stakeholders to develop a practical mechanism to transparently demonstrate that our supply chains meet the standards in the framework Work with independent technical experts to establish science-driven, risk based targets for discharge concentrations of antibiotics and good practice methods to reduce environmental impact of manufacturing discharges by 2020 Committed to antibiotics only being used in patients who need them Improved, affordable access with appropriate use Support new ways of working to overcome challenges of creating new antibiotics, vaccines, and diagnostics 12 12

13 Agenda 1 Why Environmental Performance and Reputation Matters 2 The Environmental Principles P S C I O v e r v i e w P r e s e n t a t i o n F e b r u a r y,

14 The Principles members created the Pharmaceutical Industry Principles for Responsible Supply Chain Management ("the Principles") These Principles address five areas of responsible business practices and the relevant standards any business operating within the pharmaceutical supply chain is expected to uphold E T H I C S L A B O R H E A LT H & S A F E T Y E N V I R ON M E N T M A N AG E M E N T S Y S T E M S P S C I O v e r v i e w P r e s e n t a t i o n F e b r u a r y,

15 Principles: Environment Legal environmental authorizations Management of waste and emissions Spills and releases prevention ENVIR O NMENT Water conservation Manage pharmaceutical waste water discharge P S C I O v e r v i e w P r e s e n t a t i o n F e b r u a r y,

16 Benefits of following the Principles 1 Utilizing common standards across the supply chain 2 Benchmarking and sharing of best practices with other pharma companies, and other sectors 3 Being recognized as a supporter and advocate of Responsible Supply Chain Management 4 Suppliers gain a more in-depth understanding of customers' expectations for responsible business practices and raise their profile as a high-performing and sustainable supplier for current customers and future prospects 5 Suppliers have the opportunity to collaborate with customers to build the sustainability capabilities of their facilities 6 Both the Self-Assessment Questionnaire and Audit allow suppliers to cut down on duplication of effort in supporting multiple assessment requests from customers P S C I O v e r v i e w P r e s e n t a t i o n F e b r u a r y,

17 The Pharmaceutical Supply Chain Initiative Need more information? Visit: the Secretariat at P S C I O v e r v i e w P r e s e n t a t i o n F e b r u a r y,