Sage advocacy: pfizer

Sustainability Achieved Through Greater Engagement® This company is a Calvert SAGE™ Strategies holding and is not eligible for investment in the Calvert Signature® Strategies ____________________________________________ Since 2008, Pfizer has been working to restructure and refocus its corporate responsibility efforts. On the whole, these structural changes have been positive, and the company is now significantly further down the path to be a best-in-class pharmaceutical company. Pfizer has addressed Calvert’s concerns with infant formula marketing and humane treatment of Premarin mares, and also enhanced its access to medicines efforts. Yet at the same time Pfizer continues to face significant marketing and product liability controversies, which are significant concerns given the company’s reliance on a business model that is dependent on high volume production and sales relative to its peers. In * Calvert’s Signature ESG criteria examine September 2009, Pfizer pleaded guilty to criminal and civil charges that it violated drug promotion laws. The company’s settlement with the Department of Justice was the largest settlement of its kind and as a result, Pfizer has revamped the policies and compliance programs governing its sales and marketing efforts. The company has taken significant steps towards more transparency and accountability, but remains subject to annual government audits and oversight. PFIZER ADVOCACY OBJECTIVES
Align management and shareholder interests more closely by linking a greater percentage of incentive pay to long term performance, extending the long term incentive performance period, requiring that executives hold on to a significant portion of shares for a period of time after their retirement, and explicitly link performance on sustainability and responsibility issues to incentive compensation. Report on implementation of the Calvert Women’s Principles® (as an original supporter of the Principles) to demonstrate that the company is comprehensively addressing gender equality within its operations. Continue to enhance the company’s access to medicines efforts in the developed and developing world, building upon the positive ranking increase in the 2010 Access to Medicines Index. Disclose and report on the implementation of On November 11, 2010, Calvert met with senior standards to ensure the humane treatment of mares executives at Pfizer headquarters in New York City, during and after the Premarin production process. for the first full-scale comprehensive meeting with the company since it was designated an enhanced engagement target. Pfizer agreed to work on ENGAGEMENT TOOLS APPLIED
Calvert’s agenda of objectives and participate in specific meetings to discuss steps the company could On June 21, 2010, Calvert met via phone with a newly RECENT ENGAGEMENT
structured Corporate Responsibility team at Pfizer. Topics discussed included the recent merger with On December 19, 2011, Calvert and the Pfizer Wyeth, the criminal product marketing settlement, Governance and Corporate Social Responsibility (CSR) animal welfare issues surrounding Premarin horses, team met via phone to discuss the following SAGE and infant formula marketing as well as the Calvert objectives: Governance, Access to Medicines (ATM), and Infant Formula Marketing. The discussion focused on Pfizer’s first Say on Pay vote, changes to On March 18, 2011, Calvert spoke with the Pfizer CSR the company’s ATM program and progress the team and representatives from Pfizer’s Premarin company has made in addressing the risks associated manufacturing business to learn more about the with marketing infant formula. Calvert stressed the animal welfare impacts from manufacturing the importance of addressing executive compensation Premarin drug line. The company provided and better aligning the long term interests of Pfizer information on the scope and scale of the Premarin management and shareholders. Pfizer briefed the products, as well as the programs in place to ensure Calvert team on the positive changes in its ATM humane treatment of the pregnant mares, whose program, including the full integration of the urine is the main source ingredient to derive the program across all emerging market business units. chemical components of the drugs. Calvert and Pfizer Calvert also received an update on the progress the discussed the potential for enhanced disclosure company has made on the Infant Formula Marketing about animal welfare practices as part of Pfizer’s objective. Calvert considers itself one of several overall CSR report; Calvert will continue to encourage stakeholders that helped influence the company’s STATUS AND NEXT STEPS
HISTORICAL ENGAGEMENT
Calvert plans to meet with Pfizer in December 2012. On December 13, 2010, Calvert spoke with the Pfizer CSR team and representatives from Pfizer’s infant formula business to learn more about this specific ENGAGEMENT OBJECTIVES AND PROGRESS TO DATE
business line. The company provided a general background of where it operates and its biggest Objective: Commit to and demonstrate emerging best
formula markets. Pfizer also provided details on its practices for marketing of formula and add-on milk. programs to ensure product safety and quality, and Pfizer made solid progress on infant formula marketing to adhere to high standards of marketing for its goals Calvert had established with the company. Pfizer plans to conduct audits in high-risk countries and improved its disclosure of its commitment to following On November 18, 2010, Calvert spoke with the Pfizer the WHO Code for infant formula marketing in CSR and Governance teams about overall governance practices at the company. The discussion was very productive and provided valuable insight into leading governance practices at Pfizer. Calvert discussed Pfizer’s position on Say on Pay and encouraged the company to endorse an annual vote on executive compensation as well as linking a greater percentage of incentive pay to long term corporate performance. Calvert Investment Management, Inc., 4550 Montgomery Avenue, Suite 1000N, Bethesda, MD 20814 TL10102-201211

Source: http://www.calvert.com/Documents/SAGE-Engagement-Profile-Pfizer.pdf