Zoetis Releases 2021 Sustainability Update to Share Progress in Championing Healthier Communities, Animals and the Planet

• $7.7 million in corporate giving to support veterinary professionals, access to veterinary care and disaster relief
• Continued progress toward colleague diversity aspirations, including 45% of executive team being women
• Innovative solutions Performance Ranch™, BLOCKYARD™ and CLARIFIDE^® support cattle producers’ sustainability goals
• Reduced energy intensity in manufacturing and R&D by 14%, exceeding goal and making progress on commitment to carbon neutrality by 2030

Zoetis today published its 2021 Sustainability Progress Update describing the company’s progress toward achieving its Driven to Care long-term sustainability aspirations and continued disclosure on environmental, social and governance (ESG) topics. The report highlights the company’s journey to champion a healthier, more sustainable future through specific actions that support Communities, Animals and the Planet. These commitments build on Zoetis’ purpose and help achieve the United Nations’ Sustainable Development Goals (SDGs). Complementing the report is the company’s ESG and SASB Index, which shares key ESG performance indicators, including those identified by the Sustainability Accounting Standards Board (SASB) for the healthcare – biotechnology and pharmaceuticals industry.

“In our second year of reporting to our Driven to Care aspirations and targets, we have made solid progress in our journey toward healthier animals and a healthier world,” said Jeannette Ferran Astorga, Executive Vice President, Corporate Affairs, Communications and Sustainability at Zoetis and President of the Zoetis Foundation. “I’m especially proud of how our colleagues across the globe have driven our progress in caring for our communities and customers through volunteering, developing innovative solutions for products and packaging, and minimizing our own carbon footprint.”

Communities – Care and Collaboration

Zoetis invested $7.7 million in communities through corporate giving in 2021, with activities focused on supporting veterinary professionals, expanding access to animal care and providing animal care in disaster relief. Specifically, the Zoetis Foundation provided grants of $755,000 for scholarships in its first year, and Zoetis provided an additional approximately $100,000 in corporate contributions for scholarships to support over 450 veterinary students. Additionally, Zoetis provided approximately $2.6 million in monetary and in-kind donations to support over 119,000 pet owners in need and $1.6 million in monetary and in-kind product donations to care for over 721,000 animals impacted by natural disasters.

Building on last year’s announcement of the Zoetis Foundation, the company’s progress update provides metrics around grants provided in 2021 and the establishment of its U.S. Matching Gifts and Dollars for Doers programs. Last year, the Zoetis Foundation committed $35 million over five years to advance opportunities for veterinarians and farmers.

The report also highlights progress toward the company’s diversity, equity and inclusion (DE&I) aspirations, including 45% of the executive team being women:

• +1% progress to increase representation of women at the director level and above globally
• +0.4% progress to increase representation of Black colleagues in the U.S.
• +2.5% progress to increase representation of people of color at all levels in the U.S.
• +0.7% progress to increase representation of Latinx colleagues in the U.S.

As part of ongoing efforts to support colleagues, the company also disclosed that 92% of colleagues participated in DE&I education offerings, and shared active numbers of colleagues in its Colleague Resource Groups. Zoetis also included details of the company’s sustainability governance structure, including board oversight and working groups and reported on the company’s supplier diversity program.

Animals - Innovation in Animal Health

By focusing its innovation expertise and partnerships on solving sustainability challenges facing animals and people, Zoetis is committed to helping achieve the SDGs including Zero Hunger and No Poverty. In its progress update, Zoetis provides details of how products such as Performance Ranch™, BLOCKYARD™ and CLARIFIDE^® can help its cattle customers meet their productivity and sustainability needs. The report also includes an explanation of the company’s approach to solutions for agricultural emissions.

Updated metrics are also included for the company’s African Livestock Productivity and Health Advancement (A.L.P.H.A.) initiative to support sustainable livestock health and production in sub-Saharan Africa. In 2021, Zoetis trained 25,500 farmers, veterinary professionals, distributors and lab personnel – 30% were women – and treated 4.8 million cows and 121.6 million chickens in the region.

Further highlighting the work of Zoetis’ Center for Transboundary and Emerging Diseases (CTED), and earning Zoetis recognition as one of Fast Company’s Most Innovative Companies in 2022, the report includes an update on donating more than 26,000 doses of the company’s COVID vaccine to zoos and sanctuaries in more than a dozen countries, and supplying rabies vaccines to the World Organization for Animal Health Rabies Vaccine Bank. The progress report also describes the company’s collaborative approach to promoting responsible use of antibiotics in Latin America and southeast Asia and reducing animal testing through partnerships in Brazil and the E.U.

Planet – the Drive to Protect our Planet

In minimizing the carbon footprint and improving environmental sustainability of the company’s locations, Zoetis reported it reduced energy intensity in its manufacturing and R&D locations by 14%, exceeding its goal of 5% reduction by 2025. The company also sourced 13.5% renewable electricity and 6.1% renewable energy in 2021 as progress toward its RE100 commitment to source 100% renewable energy in its own operations by 2030 – which the company accelerated by 20 years in January 2022. Additionally, the report includes details about the company’s plans to achieve carbon neutrality in its operations by 2030 by focusing on energy efficiency and minimizing energy needs, purchasing renewable electricity, electrifying its fleet, and offsetting the remaining emissions. Zoetis reported a 10% reduction in Scope 1 emissions intensity in its manufacturing and research and development operations from 2020.

In re-thinking product packaging to further reduce the company’s environmental footprint, in 2021 Zoetis developed internal processes and policies to ensure new product packaging designs consider environmental factors. The report highlights initiatives in Australia, Canada, the E.U., New Zealand and the U.S. where Zoetis’ colleagues reimagined product packaging, from replacing virgin materials with recycled-content materials to creating programs that divert packaging from landfills. Zoetis also joined the Sustainable Packaging Coalition to collaborate on sustainable packaging solutions that will benefit the company’s customers and the environment.

For more detailed disclosure on the company’s ESG programs, practices and policies, please see zoetis.com/sustainability or download Zoetis’ 2021 Sustainability Progress Update and 2021 ESG and SASB Index. Zoetis will continue to share updates on its sustainability activities, including progress against its Driven to Care goals, and report annually.

About Zoetis

As the world’s leading animal health company, Zoetis is driven by a singular purpose: to nurture our world and humankind by advancing care for animals. After 70 years innovating ways to predict, prevent, detect, and treat animal illness, Zoetis continues to stand by those raising and caring for animals worldwide, from livestock farmers to veterinarians and pet owners. The company’s leading portfolio and pipeline of medicines, vaccines, diagnostics and technologies make a difference in over 100 countries. A Fortune 500 company, Zoetis generated revenue of $7.8 billion in 2021 with approximately 12,100 employees. For more, visit www.zoetis.com.

DISCLOSURE NOTICES

Forward-Looking Statements: This press release, the 2021 Sustainability Progress Update and 2021 ESG and SASB Index contain forward-looking statements which reflect the current views of Zoetis with respect to: our progress toward our Driven to Care aspirations; our sustainability, energy and climate goals, targets and plans; business plans or prospects; future operating or financial performance; the plans and future work of the Zoetis Foundation, 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, 2021, 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.

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