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Supporting a Healthier Planet with Innovative Animal Healthcare

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March 2022

Animal health and human health are inexorably linked, as demonstrated by the fact that 75 percent of emerging infectious diseases affecting humans originate in animals.  Zoetis, the world’s largest producer of medicines and vaccines for pets and livestock, provides important solutions to improve animal health, ultimately leading to healthier humans and a healthier planet.

Zoetis was once a subsidiary of Pfizer, leveraging connections between animal health and human health in areas such as drug research and development. Given this rich legacy, as a fully independent company Zoetis has delivered important breakthroughs in animal health in areas such as dermatology, parasiticides, pain, and other categories.

“Driven to Care” serves as the theme for the firm’s sustainability efforts, which encompass a range of key initiatives that include livestock and companion animals. Zoetis launched the campaign in March 2021 to align its longer-term initiatives with the United Nations Sustainable Development Goals. CEO Kristin Peck has committed to ensuring Zoetis is accountable for reaching its ambitious goals.

Fostering Healthier Livestock

Zoetis develops—and encourages its customers to adopt—sustainable animal health solutions. The firm promotes the responsible use of antibiotics by farmers raising cows, chickens, and other livestock. It offers antibiotic alternatives and is also developing diagnostic and digital tools that farmers can use to understand and treat the health needs of their livestock. To address antimicrobial resistance, Zoetis is working to reduce animal care’s dependence on the classes of antibiotics that are also used to treat humans.

Increasing access to veterinary care can have a significant positive impact on animal health. The firm is looking to provide that access in emerging markets through its A.L.P.H.A. (African Livestock Productivity and Health Advancement) initiative. By 2025, Zoetis plans to train 100,000 farmers, veterinary professionals, and lab technicians, while aiming to have women be 50 percent of the trainees. It also hopes to treat 10 million cows and 200 million chickens.

The Zoetis Center for Transboundary and Emerging Diseases is developing vaccines for high-impact emerging diseases globally.

Delivering Better Care for Companion Animals

Zoetis offers a variety of high-quality food, medicines, and educational resources for both veterinarians and pet owners to support the care of companion animals. It is also working to expand access to veterinary care for underserved populations and to provide care for animals during natural disasters.

Each year, the firm grants $1 million in scholarships to veterinary students, focusing on underrepresented groups where possible. It also provides access to professional programs for veterinarians in all the markets where it does business.

The firm plans to report on the number of pet owners it reaches each year through its charitable programs and in-kind donations.

Lowering the Firm’s Carbon Footprint

Zoetis is striving to minimize its carbon footprint. It aims to become carbon neutral and obtain 100 percent of its energy from renewable sources by 2030. By 2025, the firm expects it will reduce the energy intensity of its manufacturing by 5 percent. It is rethinking its business travel and work-from-home policies to reduce transportation-related emissions by 25 percent. Sustainability considerations are also being incorporated into all new product packaging designs, as the firm looks to reduce its environmental impact.

Sustainable Development Goals

The Sands Capital six investment criteria tend to lead us to businesses that are innovators or vital facilitators of change in industries undergoing significant transformation. Zoetis is one of many portfolio businesses that create impact by addressing at least one major social or environmental challenge identified by the United Nations Sustainable Development Goals (SDGs). The efforts described here that Zoetis has undertaken support SDG 3, Good Health & Well-Being; SDG 5, Gender Equality; SDG 12, Responsible Consumption and Production; SDG 13, Climate Action; and SDG 15, Life on Land.

References: All information and data come from the sustainability discussion on the Zoetis website and the firm’s Sustainability Report 2020: “Driven to care: Our journey toward a better world.”

Disclosures:
The business profiled was selected based on its reported alignment with one or more U.N. Sustainable Development Goals. The views expressed are the opinion of Sands Capital and are not intended as a forecast, a guarantee of future results, investment recommendations, or an offer to buy or sell any securities. The views expressed were current as of the date indicated and are subject to change. This material may contain forward-looking statements, which are subject to uncertainty and contingencies outside of Sands Capital’s control. Readers should not place undue reliance upon these forward-looking statements. There is no guarantee that Sands Capital will meet its stated goals. Past performance is not indicative of future results. A company’s fundamentals or earnings growth is no guarantee that its share price will increase. The specific securities identified and described do not represent all of the securities purchased, sold, or recommended for advisory clients. There is no assurance that any security will continue to be owned by Sands Capital. You should not assume that any investment is or will be profitable. Company logos and website images are used for illustrative purposes only and were obtained directly from the company websites. Company logos and website images are trademarks or registered trademarks of their respective owners and use of a logo does not imply any connection between Sands Capital and the company. GIPS® Reports and additional disclosures for the related composites may be found at https://www.sandscapital.com/GIPS-Report. PT# 20210360

As of October 1, 2021, the firm was redefined to be the combination of Sands Capital Management, LLC and Sands Capital Ventures, LLC. The two investment advisers are combined to be one firm for GIPS® purposes and are doing business as Sands Capital. Sands Capital operates as a distinct business organization, retains discretion over the assets between the two registered investment advisers, and has autonomy over the total investment decision making process.

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