Zoetis is First Animal Health Company to Issue Environmental, Social and Governance (ESG) Review Based on Leading Sustainability Frameworks
Zoetis (NYSE:ZTS) today announced publication of its 2019 Environmental, Social and Governance (ESG) Review, providing more information on its ESG initiatives, including disclosures on energy, waste and workforce metrics. This marks the animal health industry's first stand-alone disclosure of key performance indicators based on the Sustainability Accounting Standards Board (SASB) and Taskforce on Climate-related Financial Disclosures (TCFD), which are leading global sustainability frameworks.
The review focuses on recent ESG activities and metrics, with progress dating back to 2017, while highlighting important steps Zoetis has taken in its sustainability journey. Guided by a belief that healthier animals will help create a healthier future, earlier this year Zoetis outlined three ways the company contributes to healthier animals: care and collaborate through partnerships and support of colleagues and communities; innovate in animal health to help solve sustainability challenges faced by animals and people; and, protect the planet by stewarding resources and minimizing the direct impact of the company's operations. In conjunction with the release of its comprehensive ESG review, Zoetis also enhanced its Policy on Sustainability to include its commitment to protect the planet, develop innovative animal health products, and support colleagues and communities.
"As a company focused on the health of animals, sustainability has always been integral to our work; however, this year we formalized our strategy and elevated sustainability to one of our top priorities," said Kristin Peck, Chief Executive Officer of Zoetis. "In the face of the global pandemic, it has been more critical than ever to care for the needs of our colleagues, customers and communities and define our plan to create a healthier, more sustainable future. We look forward to sharing more about our goals and progress in 2021 and beyond."
Key Leadership Roles
In prioritizing sustainability, Zoetis appointed four leaders this year to oversee various aspects of the company's commitments.
- Jeannette Ferran Astorga joined the company as its first Head of Sustainability responsible for stewarding the company strategy and tracking accountability for its commitments, partnerships and philanthropy. This year Ferran Astorga was named to Assent's Top 100 Corporate Social Responsibility Influence Leaders for her leadership and influence to help others start or improve corporate social responsibility programs.
- Mike McFarland, DVM, was named global Chief Medical Officer (CMO). As a respected veterinarian and expert in animal health, Dr. McFarland is a member of the Zoetis Executive Team with responsibility for Global Commercial Development, Customer Experience and Sustainability.
- Evelyn Ortiz was appointed Chief Talent, Diversity, Equity and Inclusion Officer to manage Zoetis' activities to enhance diversity, equity and inclusion within its culture and across its colleague population. Ortiz's role also includes partnerships with suppliers and vendors and in the communities where we work.
- Jeff Williams was named Chief Compliance Officer. Williams, who joined Zoetis recently from the National Geographic Society and has a background in the pharmaceutical industry, administers the company's Enterprise Risk Management program.
Creating an Inclusive, Safe and Engaged Workplace
This year Zoetis committed to accelerating inclusion, equity and more diverse representation across the company. By 2025 the company aspires to:
- Increase representation of women at the director level and above from 32% to 40%
- Increase overall representation among people of color in the U.S. from 21% to 25%
- Increase representation of Black colleagues in the U.S. from 4% to 5%
- Increase representation of Latinx colleagues in the U.S. from 5% to 6%
Zoetis' Employee Health & Safety programs have resulted in strong safety performance, as demonstrated by total injury rate (TIR) and lost time injury rate (LTIR) being lower than the U.S. industry averages.
In cultivating a sustainable workplace, Zoetis regularly assesses colleague engagement and key drivers of organizational performance through employee surveys. The company's strong colleague engagement has grown from 81% in 2016, to 85% in 2018, and to 90% in the first wave of feedback in 2020.
Environmental
As Zoetis grows its business in a way that is considerate of our global community, we are committed to protecting our planet by using the world's resources wisely and reducing our emissions and waste. Since 2017, Zoetis has:
- Reduced its greenhouse gas emissions intensity1,2 (4% less)
- Reduced its water intake intensity3,4 (5% less)
- Reduced its hazardous waste intensity4,5 (9% less)
- Reduced its solid waste intensity4,5 (87% less)
- Improved its recycling rate of hazardous waste (35% increase) and solid waste (14% increase) 4,5.
Even as the company grows to fulfill the needs of people who care for animals, Zoetis is fully committed to continuing to reduce its environmental footprint and plans to adopt specific goals that will be shared in 2021.
Veterinary and Community Support
Zoetis has long supported the veterinary profession through a variety of philanthropic initiatives including its ongoing Zoetis Veterinary Student Scholarship partnership with the Association of American Veterinary Medical Colleges that awarded 315 veterinary students $630,000 in scholarship funds for the 2020 academic year. The program has given $7.3 million to more than 3,600 veterinary students over the past 11 years. The company has similar programs in Canada and the United Kingdom and has also supported veterinary education efforts in China, Egypt and other countries to help ensure a bright future for the veterinary profession.
The company takes a grass roots approach to care and collaborate in local communities where it has a presence, including:
- In Australia, Zoetis raised $300,000 for Beyond Blue over the last three years to help Australian farmers and veterinarians who are vulnerable to mental health challenges as a result of rural isolation. The company also made available $400,000 in donated product to help veterinarians care for animals affected by the 2019 Australian bushfires.
- In Brazil, Zoetis collaborated with Patas Therapeuticas (Therapeutic Paws) to provide vaccines for specially trained dogs visiting hospitals to comfort patients, and the company worked with the Magnus Institute to provide vaccines and facilitate training for dogs to become guides for people with visual and movement disabilities.
- In the U.S., Zoetis donated over $500,000 in products to help local veterinarians care for animals affected by natural disasters in 2019 including floods and hurricanes.
The company is establishing a framework to collect data on a global scale that can quantify efforts in the future.
Animal Health Product Safety, Research and Quality Assurance
Scientists in Zoetis' research and development organization are dedicated to helping animals live longer, healthier lives through the discovery and development of breakthrough medicines and therapies. All animals in the company's clinical trials are cared for according to the company's policy on animal care and welfare. In addition, Zoetis has a comprehensive program to ensure the responsible use of antibiotics, advocating for veterinary involvement when antibiotics must be used, innovating to discover new and enhanced solutions for animal care, and collaborating in a "One Health" approach with human and veterinary medicine professionals.
To continue to identify environmental, social and governance areas in which to improve, Zoetis has undertaken a materiality assessment with key stakeholders. This will partly inform a more comprehensive sustainability report in 2021 that will include environmental goals and alignment with the United Nations Sustainable Development Goals.
About Zoetis
Zoetis is the leading animal health company, dedicated to supporting its customers and their businesses. Building on more than 65 years of experience in animal health, Zoetis discovers, develops, manufactures and commercializes medicines, vaccines and diagnostic products, which are complemented by biodevices, genetic tests and precision livestock farming. Zoetis serves veterinarians, livestock producers and people who raise and care for farm and companion animals with sales of its products in more than 100 countries. In 2019, the company generated annual revenue of $6.3 billion with approximately 10,600 employees. For more information, visit www.zoetis.com.
DISCLOSURE NOTICES
Forward-Looking Statements: This press release contains forward-looking statements, which reflect the current views of Zoetis with respect to: business plans or prospects, ESG commitments, goals and aspirations, and other future events. These statements are not guarantees of future performance or actions. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management's underlying assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Zoetis expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, including in the sections thereof captioned "Forward-Looking Statements and Factors That May Affect Future Results" and "Item 1A. Risk Factors," in our Quarterly Reports on Form 10-Q and in our Current Reports on Form 8-K. These filings and subsequent filings are available online at www.sec.gov, www.zoetis.com, or on request from Zoetis.
1 Emissions intensity (metric tons CO2e/$1MM revenue)
2 These metrics cover our Global Manufacturing and Supply, Veterinary Medical Research and Development, and other operations not including stand-alone office spaces. These emissions account for more than 99% of our operational emissions.
3 Water intake intensity (cubic meters/$1MM revenue)
4 These metrics cover our Global Manufacturing and Supply, Veterinary Medical Research and Development, and other operations not including stand-alone office spaces.
5 Hazardous and solid waste recycled intensity (kilograms/$1MM revenue)
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