About this Review
This integrated Annual Review evaluates Pfizer’s holistic performance over the course of 2016 from a financial, social and environmental perspective.
It demonstrates the integral relationship between our responsibilities as an enterprise and our core business strategies and their execution. We produce this review to give all of our stakeholders an overall picture of how we are doing and the progress we are making.
This year, we have chosen to highlight how we, as a company, are accelerating patient impact in a complex and dynamic health care environment. Through creative commercial strategies and an evolving approach to philanthropy, we aim to have a meaningful and tangible impact on the health of individuals around the world. To achieve these outcomes, we embrace agility and continually adapt our business to the evolving needs of the marketplace, our stakeholders and patients.
Scope of Reporting
This review covers Pfizer's worldwide business and provides information on our activities for the year ending on December 31, 2016. It describes key dimensions of both financial and non-financial performance. It also describes critical challenges in society — from expanding access to health care to our environmental impact — and our strategies for addressing them.
Corporate Responsibility Materiality
The content of this report is based on two key factors — its importance to stakeholders and its potential to influence business strategy. Our Corporate Responsibility team works with colleagues across the organization and engages with external stakeholders to help identify the critical issues we need to focus on in order to meet our commercial goals and society's expectations. These include the following specific, non-financial, corporate responsibility material issues:
- Access to Medicines
- Environment (sustainability)
- Culture and Employee Engagement/Retention
- United Nations Sustainable Development Goals (SDGs)
- Quality, Manufacturing and Supply Chain
- Governance and Ethics
We greatly value our stakeholders' perspectives, and all Pfizer units globally and locally engage with stakeholders on relevant issues throughout the year. We continue to explore new ways of engaging with a broad range of stakeholders to better understand the evolving reporting environment and determine how key non-financial indicators are impacting our financial performance. In 2016, we advanced our efforts to organize, validate and streamline data supporting certain non-financial indicators and expect to continue to do so in 2017.
Corporate Responsibility Management
This review was developed by a core group of Pfizer colleagues representing each business unit and other key functions. The core group is managed by Pfizer's Corporate Affairs department, whose leader is a member of the Executive Leadership Team and reports directly to the CEO. Pfizer's commitment to society is embedded in our business strategy and vision, and our business units and functional groups share the commitment to integrate such values in our daily work. The Corporate Responsibility team sets the strategic direction for meeting our commitment to society and supports the integration and implementation of programs and non-financial reporting throughout the company. The team is also responsible for Pfizer's flagship global health social investment programs and for providing annual updates to Pfizer's Board of Directors on progress in achieving corporate responsibility goals and non-financial reporting.
Improving Our Access to Medicines Offerings
The Access to Medicine Index (ATMi) analyzes the top 20 research-based pharmaceutical companies on how they make essential medicines, vaccines and diagnostics accessible in low- and middle-income countries. ATMi was launched in 2008 by the Access to Medicine Foundation (AMF), a Dutch-based international non-profit organization, and urges companies to adopt recommended best practices to ensure global access to medicines.
The 2016 Index used a framework of 83 metrics to measure company performance relating to 51 high-burden diseases in 107 countries. The framework is reviewed every two years, with reference to the Expert Review Committee of independent experts including the World Health Organization (WHO), governments, patient organizations, the industry, academia and investors. The Index evaluates four strategic pillars – commitments, transparency, performance and innovation – across seven core technical areas: 1) general access to medicine management; 2) market influence and compliance; 3) research and development; 4) pricing, manufacturing and distribution; 5) patients and licensing; 6) capacity building; and 7) product donations.
In 2016, Pfizer ranked 14 among the top 20 pharmaceutical companies – increasing our position from 16 in 2014. Several factors contributed to our higher score on the 2016 Index including structured donation programs, nearly doubling the size of our pipeline through research and development efforts, widespread enhancements of pricing, manufacturing and distribution efforts, and a strong approach to building supply chains.
Global Reporting Frameworks
Pfizer continues to evaluate our approach to non-financial reporting, including adherence to several existing, globally recognized external frameworks. These include the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB) and the International Integrated Reporting Council (IIRC). We have relied on elements of each framework in developing this year's annual review while adhering to none in its entirety. As you’ll see, we include a GRI Reference Table in this Annual Review as a reference tool to help readers more readily locate relevant information across Pfizer's web-based resources.
We also take into account elements of other Environment, Social and Governance (ESG) indices and sustainability indicators – in particular, the Access to Medicines Index and the UN Global Goals (also known as the Sustainable Development Goals). Throughout this report, you’ll see the Global Goals icons near various efforts to highlight the work we are doing across Pfizer to meet these achievements by 2030.
Good Health and Well-Being
We promote holistic solutions to meet the health needs of the underserved while investing in the well-being of the global community.
We seek to empower and mobilize women around the world through partnerships aimed at ensuring access to quality health care, including newborn immunizations and family planning services.
Clean Water and Sanitation
Through public-private partnerships like the International Trachoma Initiative, as well as efforts to responsibly manage our water consumption and disposal, we aim to advance public health by improving water supply, sanitation and hygiene.
Industry, Innovation and Infrastructure
We catalyze scientific innovation through cutting-edge research initiatives and unique, results-driven partnerships in order to deliver novel medicines, vaccines and know-how to individuals around the world.
Sustainable Cities and Communities
We promote healthy behavior for people of all ages in urban environments through programs to reduce pollution, promote age-friendly policies and improve health services for those most in need.
Responsible Consumption and Production
Throughout the lifecycle of our products, we are working toward reducing our carbon footprint and increasing energy efficiency, decreasing dependence on limited resources and reducing waste.
Partnerships for the Goals
Through innovative partnerships, including collaborations with non-governmental organizations (NGOs), governments, foundations, social entrepreneurs and colleagues, we seek to fuel creative approaches that accelerate progress and improve health care.
Read more about our Corporate and Shareholder Information, including Forward-Looking Statements.