(Credit: Pixabay)Pfizer today announced the completion of a $1.25 billion 10-year sustainability bond paying interest semi-annually of 2.625% 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.
Recognizing the profound societal and public health impacts that may result from environmental issues, including climate change, the company is taking action to mitigate its climate impact, conserve the use of natural resources and reduce waste arising from manufacturing of medicines and vaccines.
Bond proceeds will drive strategies to become more energy efficient, conserve more water, reduce waste, and increase recycling associated with operations, and construct more energy efficient buildings. Other planned investments in physical infrastructure involve the application of technology, including sensors and insulation, that result in energy savings at Pfizer’s manufacturing and R&D sites and commercial offices globally, including new Pfizer corporate headquarters.
According to Pfizer, the bond proceeds will also support vulnerable population groups, including women, children under 5 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 organizations. 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.
