USA: Green and Social Projects Pfizer Announces Completion of 1.25 Billion Dollar Sustainability Bond
The move is a first for a biopharmaceutical company and the sustainability bond will be used to create a social and environmental impact. The bond provides opportunities to invest in projects that support environmental sustainability and health of vulnerable populations.
USA – Pfizer has recently announced the completion of a 1.25 billion dollar ten-year ‘sustainability’ bond paying interest semi-annually of 2.625 per cent and maturing April 1, 2030. This is Pfizer’s first-ever sustainability bond and a first for a biopharmaceutical company. Proceeds from the bond will help manage the company’s environmental impact and support increased patient access to Pfizer’s medicines and vaccines, especially among underserved populations, and strengthen healthcare systems.
“Investing in programmes that enhance our environmental stewardship and favourably impact the health of society is a goal Pfizer colleagues feel passionately about,” said Sally Susman, Pfizer Executive Vice President and Chief Corporate Affairs Officer. “As we work to achieve our purpose—‘breakthroughs that change patients’ lives’—how we go about our work is just as important as the medicines and vaccines we work to deliver to those who depend on us.”
Recognising the profound societal and public health impacts that may result from environmental issues, including climate change, the company purpose ‘breakthroughs that change patients’ lives’ guides the firm’s actions to mitigate climate impact, conserve the use of natural resources and reduce waste arising from manufacturing of medicines and vaccines, states the firm.
A focus of the bond proceeds will drive long-standing strategies to become more energy efficient, conserve more water, reduce waste and increase recycling associated with the firm’s operations and construct ‘green’ buildings. Other planned investments in physical infrastructure include application of technology including sensors and insulation that result in energy savings at the company’s manufacturing and R&D sites and commercial offices globally including new Pfizer corporate headquarters, adds the firm.
The bond proceeds will also support vulnerable population groups including women, children under five years of age, and people temporarily displaced due to natural disasters and refugees who the company reaches through partnerships that address global public health emergencies.
In addition, proceeds will be used to make capital investments in manufacturing and development capacity that ensure medicines and vaccines needed and procured by governments and public health agencies are available in line with recommendations from global public health organisations. This includes work to address the global Covid-19 pandemic and the threat of antimicrobial resistance.
Proceeds will also support spending to strengthen health systems in low- and middle-income countries, including grants structured to motivate other private capital and other innovative approaches to help address infectious disease in these underserved populations.
Pfizer will issue a report annually on the allocation of proceeds and the resulting outcomes, beginning one year from the date of issuance, including expected outcomes and impact metrics. Reporting on the use of proceeds will be accompanied by a statement from management confirmed by an examination report from an independent accountant.
The consultancy Sustainalytics, a leading global provider of environmental, social and corporate governance research and ratings, reviewed Pfizer’s sustainability bond framework and confirmed it supports various United Nations Sustainable Development Goals (SDGs).