Zoetis Releases 2022 Sustainability Report to Share Progress in Building a Better Future for People, Animals and the Planet

• $7.4 million in corporate giving invested in communities, and an additional $5.7 million distributed through Zoetis Foundation grants to support veterinarians and farmers
• Continued progress toward colleague diversity aspirations, including increased representation of women at the director level and above globally from 32% in 2020 to 37% in 2022, aspiring to reach 40% by 2025
• Received approval for several livestock vaccines in additional markets, which support reducing the need to use antibiotics
• Achieved target to reduce energy intensity in manufacturing and R&D 5% by 2025, with a 13.5% reduction
• Outlined roadmap to carbon neutrality by 2030, and 31% of manufacturing sites operating with 100% renewable electricity

Zoetis today published its 2022 Sustainability Report “Together We Are Making a Difference for a Better World”, 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 advance sustainability in Animal Health for a better 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). Included in the report is the company’s ESG Index, which shares key ESG performance indicators, including those identified by the Sustainability Accounting Standards Board (SASB) for the healthcare – biotechnology and pharmaceuticals industry. The Index also includes environmental and social data as well as details on how Zoetis supports the Taskforce on Climate-related Financial Disclosure (TCFD) and its commitment to disclosing progress aligned with TCFD recommendations.

“In our third year of reporting to our Driven to Care aspirations and targets, we continue to make significant progress in our journey toward building a healthier future for our communities, animals and the planet,” said Jeannette Ferran Astorga, Executive Vice President, Corporate Affairs, Communications and Chief Sustainability Officer at Zoetis and President of the Zoetis Foundation. “The progress we’ve made toward our sustainability commitments would not be possible without the dedication, creativity and innovation of our colleagues who champion our purpose by contributing to a better future for us all.”

Communities – Care and Collaboration

Zoetis invested $7.4 million in communities through corporate giving in 2022, with approximately $2.2 million in monetary and in-kind contributions to support approximately 186,000 pet owners in need and approximately $1.7 million in monetary and product contributions to help more than 560,000 animals impacted by disaster. The Zoetis Foundation also distributed $5.7 million in grants supporting 25 initiatives across 20 countries in 2022, significantly increasing grant funding to advance farmer and veterinary education, livelihoods, and well-being. Specifically, the Zoetis Foundation provided grants of $2.5 million in scholarships to veterinary students to support more than 500 students. In its commitment to advancing an inclusive veterinary profession, the Zoetis Foundation is the Founding Sponsor of the It Takes a Village Foundation's “Vet for a Day” program, helping advance diversity and inclusion in the veterinary field. In 2022, the “Vet for a Day” program reached approximately 300 students, enabling kids from diverse backgrounds to learn about veterinary medicine.

The report also highlights progress made since 2020 toward the company’s diversity, equity and inclusion (DE&I) aspirations for 2025, including:

• Increased representation of women at the director level and above globally from 32% to 37%, aspiring to reach 40% by 2025
• Increased representation of Black colleagues in the U.S. from 4.0% to 4.8%, aspiring to reach 5% by 2025
• Increased representation of people of color at all levels in the U.S. from 21.0% to 24.6%, aspiring to reach 25% by 2025
• Increased representation of Latinx colleagues from 5.0% to 6.4%, exceeding our aspiration of reaching 6% by 2025

The Zoetis executive team is now 60% women and 40% from racially or ethnically diverse backgrounds, including Asian, Black and Hispanic/Latinx.

As part of ongoing efforts to support colleagues, Zoetis signed on to PrideVMC’s Gender Identity Bill of Rights (GIBOR), a document that affirms the rights of transgender, non-binary, and gender non-conforming persons, and provides guidance on how workplaces can support their employees by identifying and eliminating discriminatory practices. Zoetis engaged with 1,236 global active members across eight Colleague Resource Groups and launched Cultural Explorer training in eight languages to encourage respectful curiosity and open conversation about differences to deepen mutual understanding and value for colleagues’ unique contributions to the workplace.

Animals - Innovation in Animal Health

With the world’s population approaching the United Nations projected 10 billion people by 2050, some of our greatest challenges are emerging at the intersection of human, animal, environmental and economic health. By enhancing the health of livestock, innovative solutions can help contribute to the economic and environmental well-being of farmers and communities as well as support global food security.

In 2022, Zoetis received approval for several livestock vaccines in additional markets, which support the Health for Animals Roadmap to Reducing the Need for Antibiotics. This includes recombinant vector vaccines in Brazil, India, Mexico, and the U.S. that can positively impact welfare and productivity of poultry, as well as expanded regulatory approval for a vaccine to help protect cattle against Mycoplasma bovis. Additional new products support cattle producers’ health and productivity goals as well as pork producers’ animal welfare and productivity goals, all to improve their sustainability. Zoetis also announced a research collaboration with scientists in New Zealand to explore mechanisms that may inhibit methane emissions from grazing ruminants and, in turn, reduce greenhouse gas (GHG) emissions. Furthermore, the company invested in research to support understanding how genetic testing and genomic predictions can help improve dairy cattle health outcomes by reducing disease incidence and antibiotic use while also improving productivity.

Zoetis reported progress on five years of its African Livestock Productivity and Health Advancement (A.L.P.H.A.) initiative with the aim to help improve livestock health and positively impact farmers’ livelihoods in Sub-Saharan Africa. At the completion of the initiative, Zoetis trained over 30,000 farmers, veterinary professionals, distributors and lab personnel – 30% were women – and treated 9.7 million cows and 196 million chickens in the region. With continued support from the Bill & Melinda Gates Foundation, Zoetis launched A.L.P.H.A. Plus - a new five-year initiative that will scale up the initial efforts with expansion into seven additional countries in Africa and aquaculture in addition to cattle and poultry. The success of the A.L.P.H.A. initiative is further supported by Zoetis’ inclusion in Fortune’s 2022 Change the World list, underscoring the initiative’s impact to grow access to veterinary care in emerging markets and to help achieve the UN SDGs for No Poverty, Zero Hunger and Gender Equality, among others.

Planet – the Drive to Protect our Planet

To reduce GHG emissions throughout the company’s operations and manage climate risks, Zoetis set a goal in 2022 to achieve carbon neutrality in its own operations by 2030, with a focus on Scope 1 and 2 emissions from its manufacturing and R&D operations, office locations and fleet vehicles. Aligned with its RE100 commitment, Zoetis reported 14.7% renewable electricity sourced to date and installed four photovoltaic solar arrays at three manufacturing sites and one R&D site. To date, 31% of the company’s manufacturing sites operate with 100% renewable electricity. Zoetis exceeded and retired its target to reduce energy intensity by 5% at its manufacturing and R&D sites, with a 13.5% reduction. In 2022, the company developed a roadmap to achieve its carbon neutrality target that includes short-, medium- and long-term initiatives, including capital expense planning. Specifically, Zoetis conducted energy and carbon assessments at 10 of its largest energy consuming sites, accounting for approximately 90% of the company’s energy footprint, which helped identify more than 100 energy efficiency projects. Minimizing fleet emissions also are part of the company’s journey to carbon neutrality in its own operations, and in 2022, electric vehicles represented 1.2% of Zoetis’ total fleet, while hybrids accounted for 10%.

The company continued to take meaningful steps to reduce its environmental footprint and improve its products’ environmental impact throughout their life cycle in markets around the world. The report highlights initiatives in Japan, Canada and the U.S. that help streamline Zoetis’ process, reduce packaging and divert packaging from landfills, including by transitioning prescription labeling to QR codes, and removing cotton from product packaging. Zoetis also created a sustainable packaging guidance document for suppliers to provide packaging specification guidelines for all products delivered to Zoetis.

For more detailed disclosure on the company’s ESG programs, practices and policies, please see zoetis.com/sustainability or download Zoetis’ 2022 Sustainability Report. 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 innovating ways to predict, prevent, detect, and treat animal illness for more than 70 years, Zoetis continues to stand by those raising and caring for animals worldwide – from veterinarians and pet owners to livestock farmers and ranchers. 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 $8.1 billion in 2022 with approximately 13,800 employees. For more information, visit www.zoetis.com.

DISCLOSURE NOTICES

Forward-Looking Statements: This press release and the 2022 Sustainability Report (including the 2022 SASB and ESG 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; our business plans or prospects; expectations regarding 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 most recent Annual Report on Form 10-K, 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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