Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community Impact
• Medical Relief
• Sustainability
• Employee Well-being
• Ethics & Compliance

Environmental Achievements

• Expanded renewable energy portfolio with solar panel installations in Germany, Australia, and California.
• 79% of owned US distribution space is LEED certified.
• 4,502 trees planted offsetting 786 tons of CO2 emissions.
• 395 pallets of medical supplies diverted from landfills (86% increase from 2016).

Social Achievements

• Donated over $350,000 to the American Heart Association.
• Donated $100,000 to the Susan G. Komen Foundation.
• Hosted blood drives resulting in 352 pints of blood donated, potentially saving 1,056 lives.
• More than 1,000 employees participated in company-sponsored weight loss programs, losing a combined 7,000 pounds.
• Employees volunteered and donated to various organizations (United Way, Make-A-Wish, etc.).
• First medical service trip to Nicaragua, providing health education and basic medical supplies.
• Improved employee engagement scores in all survey categories compared to 2014.

Governance Achievements

• No material reports received through the ethics and compliance helpline.
• Reinforced business strategy and company values, including "Acting with Integrity."
• No fines or sanctions related to bribery or corruption.
• Preparing for General Data Protection Regulations (GDPR).

Climate Goals & Targets

Environmental Challenges

• Managing environmental impact of product manufacture, distribution, and use.
• Addressing the need for quality healthcare in resource-limited communities.
• Maintaining operational effectiveness and safety during severe weather events.

Mitigation Strategies

• Investment in renewable energy and LEED certification.
• Development of a robust medical relief program.
• Implementation of an Emergency Action Plan (EAP).

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Community Impact
• Global Health
• Sustainability
• Employee Well-being
• Ethics & Compliance

Environmental Achievements

• 8 locations certified according to ISO’s global environmental standard
• Expanded renewable energy portfolio (solar and geothermal)
• More than 12.1 million square feet (85%) of owned distribution space is LEED certified
• 4,523 trees planted in 2018 by the Exam Glove division
• 6 million pounds of instruments reprocessed through Centurion's program
• 50 million pounds of plastic bags recycled through the Soiled Linen Collection System
• Revamped software for returns process, leading to $500+ in monthly product donations

Social Achievements

• Launched Community Impact Grant Program, awarding $150,000 to six breast cancer awareness organizations
• Provided internships to nine Baker College Prep students
• Hosted STEMgirls program participants for hands-on learning
• Employees donated to various causes, volunteered, and participated in events
• Medline employees packed 198,865 meals for undernourished children
• Donated equivalent of 80 metric tons of product (valued at over $1,600,000) to various organizations
• Free on-site mammograms for employees, resulting in early cancer detection
• Employee Recognition Program, donating $30,000 to 10 organizations

Governance Achievements

• Medline Code of Conduct established as foundation for ethics and compliance program
• Chief Ethics and Compliance Officer oversees program worldwide
• Compliance with MedTech Europe Code of Ethical Business Practice
• Training for sales teams on antitrust matters

Climate Goals & Targets

Environmental Challenges

• High environmental, shipping, and handling costs of certain returned items
• Complex supply chains in low-resource countries

Mitigation Strategies

• Revamped return process software to donate certain supplies
• Implemented long-term, customized supply chain solutions for One World Surgery in Honduras

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CDP (formerly Carbon Disclosure Project), GHG Protocol

Certifications: ISO 14001 (8 locations), LEED (85% of owned distribution space)

Environmental Metrics

ESG Focus Areas

• Labour and human rights
• Employee well-being
• Product development
• Community support
• Environmental impact
• Ethical business conduct

Environmental Achievements

• Reduced carbon emissions by 12% (from 1720 to 1521 tonnes of CO2 equivalent) due to reduced natural gas consumption.
• Planted 2,500 additional trees in Spain through the 'One Container, One Tree' initiative.

Social Achievements

• Achieved an 87/100 score on France's Gender Equality Index.
• Received a Diversity and Inclusion Award from the CEPAIM Foundation in Spain.
• 72% of employees promoted were women.
• 89% of employees participated in training sessions.
• Improved employee engagement scores in 12 out of 15 categories compared to 2017.
• Reduced customer complaints by 30%.

Governance Achievements

• Launched a 'Speak Up' poster campaign to encourage ethical reporting.
• Appointed a senior compliance officer in Europe.
• Continued progress on WRAP certification project for suppliers.

Climate Goals & Targets

Environmental Challenges

• Foreign exchange rate fluctuations impacting costs.
• Disruptions in operations due to a warehouse move in France.
• Data availability challenges in measuring scope 3 GHG emissions.

Mitigation Strategies

• Working with 3PL service provider to manage warehouse issues.
• Focusing on cost reductions company-wide.
• Implementing a tote exchange program to reduce packaging waste.

Supply Chain Management

Supplier Audits: 461 social compliance audits in Asia (2015-2019)

Responsible Procurement

• Supplier Code of Conduct
• WRAP certification project

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: WRAP (for some suppliers and facilities)

UN Sustainable Development Goals

• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 13 (Climate Action)

CSR activities contribute to these goals through various initiatives.

Sustainable Products & Innovation

• Prime Vendor tote exchange program

Awards & Recognition

• CAHPP A++ in 2019 Environmental Index (France)
• CEPAIM Foundation 2019 Diversity and Inclusion Award (Spain)

Environmental Metrics

ESG Focus Areas

• Economic contribution
• Conducting business with integrity and ethics
• Respecting labour and human rights
• Promoting the well-being of our employees
• Developing appropriate products and services for customers
• Supporting our communities
• Limiting our environmental impact
• Modern Slavery and Transparency

Environmental Achievements

• Obtained ISO 14001:2015 certification for SPT assembly facility in Bánovce, Slovakia.
• Incorporated LEED, Passive House, and BREEAM certification requirements into new buildings under construction in Châteaubriant, France, and Partizánske, Slovakia.
• Conducted an Earth Day awareness campaign on plastic pollution.

Social Achievements

• Unveiled a strengthened ethical sourcing program.
• Launched an Employee Assistance Programme pilot for mental health in Italy, the Netherlands, and Voisins, France.
• Launched a diversity and inclusion dashboard and revised the Diversity and Inclusion Statement.
• Donated €200,000 through the Medline Gives Back initiative.
• Donated €580 to Movember Europe.

Governance Achievements

• Improved ethical sourcing program modeled on UNGPs.
• Developed and introduced e-learning modules on ethical behavior and interactions with healthcare professionals and civil servants.
• Revised Medline Supplier Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Supply chain and logistics bottlenecks due to the COVID-19 pandemic.
• Increased supplier prices and down payment requirements.
• Challenges in timely collection of receivables.
• Increased transportation costs.
• Postponement or cancellation of elective medical procedures.
• Difficulties in obtaining clarification on the interpretation of the new Medical Device Regulation (MDR).

Mitigation Strategies

• Adapted to and addressed supply chain and logistics bottlenecks.
• Transitioned to remote working where applicable.
• Stayed attuned to local and international developments around pricing and export restrictions.
• Continued to develop and deploy capabilities in IT and project management.
• Kept open lines of communication with customers.
• Implemented flexible payment terms with customers.
• Implemented preparatory measures for MDR compliance, including reviewing distribution contracts, updating technical files, completing biological evaluations, and data structures for EUDAMED.

Supply Chain Management

Supplier Audits: 85 social compliance audits conducted in 2020

Responsible Procurement

• Revised Medline Supplier Code of Conduct
• Risk profiling of product supply chain
• Establishment of a global ethical sourcing committee
• Grievance mechanism or helpline

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, UN SDGs, UNGC Ten Principles, UNGPs

Certifications: ISO 14001:2015, ISO 13485, ISO 9001

UN Sustainable Development Goals

• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)

CSR activities aligned with UN SDGs.

Sustainable Products & Innovation

• WORKS scrub suits and warm-up jackets
• Ophthalmology range
• Certainty Programme

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emissions
• Sustainable products, programmes and packaging
• Diversity, equity and inclusion
• Supplier diversity
• Employee health and safety
• Employee engagement
• Ethical sourcing
• Business ethics
• Data privacy and security
• Product safety
• Product labelling and marketing
• Air emissions
• Waste management
• Water and wastewater management
• Climate-related risk
• Community engagement
• Healthcare access and affordability

Environmental Achievements

• Invested $34.4 million in solar energy globally since 2016, generating over 11 million kWh in 2022.
• 98% of owned US distribution centers are LEED certified or pending certification.
• Reprocessed 2.3+ million medical devices in 2022, diverting 1.1 million pounds of waste from landfill.
• 10 ISO 14001-certified facilities worldwide.
• Reduced absolute emissions by 4% in 2021 compared to 2020 (North America and Europe).

Social Achievements

• Donated the equivalent of 643.75 tonnes of product (valued at over $2.7 million) for worldwide medical relief.
• 1,636 US employees volunteered 8,814 hours in support of 151 charities.
• Launched a Self-ID campaign in the US to broaden understanding of employee demographics.
• 7 Employee Resource Groups (ERGs) representing Medline’s diverse population in the US.
• Medline Europe received a Silver Certificate from Disabled Certificate for Organisations (DisCert).

Governance Achievements

• Hosted inaugural Global ESG and Compliance summit.
• Enhanced compliance policies and procedures, including development of global policies.
• Developed a Global Charitable Giving policy.

Climate Goals & Targets

Environmental Challenges

• Climate change poses continuity risk to the business.
• Need to establish processes for collecting auditable data globally.
• Need to better define the company’s approach to supplier diversity.

Mitigation Strategies

• Convened a decarbonisation working group focused on reducing energy use and analysing the supply chain.
• Initiated the process of assembling global working groups for each material ESG topic to develop global strategies and capture relevant data.
• Procured a new supplier diversity data, software and management solution.

Supply Chain Management

Supplier Audits: 592 ethical sourcing audits in 2022; 68 WRAP audits, 33 certifications.

Responsible Procurement

• Medline Supplier Code of Conduct
• WRAP certification programme for glove manufacturers

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes, heat waves, wildfires, droughts, flooding

Reporting Standards

Frameworks Used: SASB (Health Care Distributors and Medical Equipment & Supplies standards), TCFD (Risk Management framework - currently evaluating)

Certifications: ISO 14001, MDSAP, ISO 13485, ISO/IEC 17025, EU MDR, LEED (98% of owned US distribution centers)

UN Sustainable Development Goals

• 1-13, 15-17

Medline believes that goals 1–13 and 15–17 are material to its business and covers efforts aligned to these goals in this report.

Sustainable Products & Innovation

• Green Product Portfolio (environmental services, healthcare essentials, perioperative care)

Awards & Recognition

• Forbes America’s Largest Private Companies
• Forbes Best Employer for Women
• Forbes Best Employer for New Grads
• US News & World Report Honour Roll
• Top Workplaces 2022, Chicago Tribune
• Becker’s Healthcare 150 Top Places to Work in Healthcare
• Forbes Best Large Employers
• ELSSA Distinction, Safe and Healthy Workplace Environments (Nuevo Laredo, Mexico)
• ELSSA Distinction, Safe and Healthy Workplace Environments (Mexicali, Mexico)
• Great Place to Work Mexico’s Northeast Region recognition
• La Asociación de Maquiladoras de Exportación de Nuevo Laredo’s Environmental Excellence Award
• Silver Certificate from Disabled Certificate for Organisations (DisCert)
• Forbes Best Employers in Illinois
• 2021 SEAL Business Sustainability Award (Sustainable Packaging Lab)

Environmental Metrics

ESG Focus Areas

• Climate resilience and environmental action
• Responsible products
• People and communities
• Robust governance

Environmental Achievements

• Globalized GHG emissions data collection and expanded GHG calculations to include all categories of Scope 3 emissions
• Reached $34.5 million in total solar energy investments worldwide
• Added 37,162 solar panels in Medline’s renewable energy portfolio, including significant installations at our Montgomery, New York and Uxbridge, Massachusetts sites
• Invested in a carbon accounting platform to better serve our ESG efforts
• Completed product-level Life Cycle Assessments (LCA) for our European drapes and gowns following ISO 14040 methodology
• Reprocessed 2,564,389 medical devices through the Medline ReNewal program’s own facilities
• Diverted 1,518,654 pounds of landfill waste from the Medline ReNewal program, including both Medline and partner diversion efforts
• Doubled the size of our Medline ReNewal plant, increasing our capacity to reprocess medical devices

Social Achievements

• Donated 185 metric tons of medical supplies to humanitarian relief organizations, valued at $1.5 million
• 2,552 Medline employees volunteered a total of 9,102 hours
• Completed a multi-year, $250,000 donation to build a new surgery center in the Dominican Republic
• Continued our global Open Talk communication channel, where both Medline employees and employees in our value chain can raise concerns about ethics and compliance in the workplace
• Awarded $275,000 in U.S. Community Impact Grants
• Received multiple recognitions as a top employer around the world

Governance Achievements

• 645 social audits conducted by Medline’s ethical sourcing audit team
• Continued our multi-year project to encourage eligible first-tier suppliers to become Worldwide Responsible Accredited Production (WRAP) certified

Climate Goals & Targets

Environmental Challenges

• Rising global healthcare costs
• Supply chain disruptions
• Evolving consumer preferences
• Aging population with increased healthcare needs
• Staffing shortages
• Climate change impacts on healthcare
• Increased regulatory demands and customer expectations for ESG practices
• Need to increase supply chain transparency and ensure ethical sourcing data is near real-time and auditable

Mitigation Strategies

• Reducing complexity of healthcare solutions
• Addressing costs through product and supply chain optimization
• Serving the entire continuum of care
• Advancing transition to renewable energy
• Measuring and reducing GHG emissions
• Lowering energy consumption
• Reducing environmental impact of products and processes
• Deepening alignment between ESG strategy and business goals
• Building on existing supplier due diligence processes to ensure global compliance

Supply Chain Management

Supplier Audits: 645 social audits in 2023

Responsible Procurement

• Medline Supplier Code of Conduct
• WRAP certification program
• Risk-based approach to supplier due diligence

Climate-Related Risks & Opportunities

Opportunities

• Renewable energy investments
• Energy efficiency improvements
• Sustainable product development

Reporting Standards

Frameworks Used: SASB Health Care Distributors and Medical Equipment & Supplies standards, GRI, UN SDGs

Certifications: ISO 14001 (10 global sites), ISO 13485, MDSAP, EU Quality Assurance Certificate, WRAP (22 gloves suppliers)

UN Sustainable Development Goals

• SDG 3: Good health and well-being
• SDG 8: Decent work and economic growth
• SDG 10: Reduced inequalities
• SDG 13: Climate action

Medline's initiatives contribute to these goals through employee well-being programs, ethical sourcing practices, DEI initiatives, and environmental sustainability efforts.

Sustainable Products & Innovation

• SmartBox™
• New glove minimizing tears
• Products in Green Product Portfolio

Awards & Recognition

• Newsweek’s America’s Greatest Workplaces
• Newsweek’s America’s Greatest Workplaces for Diversity
• Newsweek’s America’s Greatest Workplaces for Women
• Newsweek’s America’s Greatest Workplaces for Parents and Families
• Becker’s Healthcare–150 Top Place to Work in Healthcare
• Forbes America’s Best Large Employers
• Forbes’ America’s Best Employers for New Grads
• Forbes’ 2023 America’s Best Employers for Women
• Forbes 2023 America’s Best Employer by State (Illinois)
• Chicago Tribune’s 2023 Top Workplaces
• Great Place to Work Medline Mexico Sites Certification
• Great Place to Work® Institute 2023-24 (India)
• A++ rating in sustainability from CAHPP Green Index (Medline International France SAS)