Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance, Ethics and Responsible Business Practices
• People and Culture
• Social Responsibility
• Supply Chain Management
• Environmental Management

Environmental Achievements

• Recycled 8-10 tons of electronic products over the past five years
• Headquarters in a LEED-CS Gold certified building
• Uses energy-efficient bulbs and natural light
• Leverages digital technologies to reduce paper consumption

Social Achievements

• Increased employee engagement scores during the pandemic to outpace global benchmarks
• Decreased employee turnover rate to 11%
• Hired a Chief Diversity and Inclusion Officer in 2020
• Presented the Premier Cares Award annually since 1991
• Partnering with the U.S. Department of Health and Human Services (HHS) Office of Women’s Health (OWH) to improve maternal-infant healthcare

Governance Achievements

• Formalized corporate sustainability program
• Elevated ESG to a Board-level mandate
• Centralized ESG management at the highest levels of the company
• Board diversity complies with NASDAQ’s Board Diversity Rule
• 100% of employees completed annual compliance education

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic disruptions to supply chain
• Overreliance on overseas manufacturing for PPE
• Cybersecurity threats

Mitigation Strategies

• Co-invested in domestic manufacturing to expand production capacities
• Developed an expedited sourcing process to quickly include additional suppliers
• Implemented a multi-faceted cybersecurity approach (Defense in Depth architecture)
• Procured cyber insurance and partnered with a security incident response organization

Supply Chain Management

Supplier Audits: Annual social responsibility audits of contracted manufacturers (announced and unannounced)

Responsible Procurement

• Healthcare Group Purchasing Industry Code of Conduct
• Environmentally Preferred Purchasing (EPP) program
• Supplier Diversity Program
• Sourcing Education and Enrichment for Diverse and Small Suppliers (SEEDS) program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, UN SDGs

Certifications: LEED-CS Gold

UN Sustainable Development Goals

• SDG 3: Good Health and Well-being
• SDG 5: Gender Equality
• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities
• SDG 12: Responsible Consumption and Production

Premier's initiatives contribute to these goals through various programs and strategies outlined in the report.

Awards & Recognition

• 2021 World’s Most Ethical Companies® Honoree by Ethisphere
• 2021 Achievers 50 Most Engaged Workplaces®
• 100 Healthiest Workplaces in America
• Best Places to Work in Healthcare for Conductiv
• Charlotte Business Journal’s Healthiest Employers Award
• LinkedIn’s Top Companies in Charlotte
• Top 10 Enterprise-Wide ERG Award for 2021
• 2021 Fast Company’s World Changing Ideas

Environmental Metrics

ESG Focus Areas

• Ethics and Compliance
• Our People and Culture
• Improving Community Health
• Responsible Supply Chain
• Environmental Stewardship

Environmental Achievements

• Conducted inaugural greenhouse gas (GHG) assessment, baselining Scope 1 and 2 emissions for FY2020 and FY2021.
• Adopted an Environmental Policy.
• Reduced operational footprint by subleasing two facilities and repurposing/recycling over 90% of supplies.

Social Achievements

• Launched One Premier Growth Mindset initiative to enhance culture.
• Advanced DEIB through member-led Supplier Diversity Pledge; members spent over $1 billion with diverse companies in CY2021.
• Maintained strong employee engagement score (78) above global benchmark (76).

Governance Achievements

• Established formal, Board-driven process for managing and reporting ESG practices (October 2021).
• Included ESG measures in annual incentive compensation plan (FY2023).
• Maintained 40% diverse Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (physical and economic).
• Supply chain disruptions.
• Drug shortages.

Mitigation Strategies

• Phased approach to understand baseline impact, establish governance, and develop carbon reduction strategy.
• Promoting domestic and geographically diverse manufacturing; investing in domestic suppliers.
• ProvideGx initiative to address drug shortages through partnerships and investment in generic drug manufacturers.

Supply Chain Management

Responsible Procurement

• Supplier Standards emphasizing human rights and anti-bribery/corruption.
• Environmentally Preferred Purchasing (EPP) Advisory Council guidance.
• Questions on chemicals of concern, recyclable packaging, and Scope 1/2 emissions in supplier questionnaires.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Supply chain disruptions

Reporting Standards

Frameworks Used: SASB Standards (Health Care Distributors, Medical Equipment and Supplies, Software and IT Services), UN SDGs

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 13: Climate Action

Alignment described in report section for each goal.

Awards & Recognition

• World’s Most Ethical Companies® (15th consecutive year)
• Achievers 50 Most Engaged Workplaces®
• Diversity Impact Awards™ Top 10 Enterprise-Wide ERG Award

Environmental Metrics

ESG Focus Areas

• Improving Community Health
• Ethics and Compliance
• Our People and Culture
• Responsible Supply Chain
• Environmental Stewardship

Environmental Achievements

• Continued to baseline greenhouse gas (GHG) emissions, calculating Scope 1 and Scope 2 emissions for FY2022.
• Advanced collaboration with suppliers to ensure environmental sustainability information is available before purchasing decisions.
• Began aligning with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
• Continued to improve data collection from property managers to enhance GHG assessments and understand electricity and gas consumption impact at facilities.
• Offered remote or hybrid work options, lowering energy demands and decreasing Scope 1 and 2 footprint.

Social Achievements

• Administered a substance use disorder program for accessible, equitable solutions addressing behavioral and physical health needs.
• Launched Health Equity Collaborative to support members in meeting regulatory and payer requirements.
• Presented annual $100,000 Premier Cares Award to nonprofits improving health of populations in need.
• Advanced advocacy for data-driven policies to solve poor outcomes and disparities in maternal-infant care.
• Implemented company-wide programming centered on growth, diversity, equity, inclusion, and belonging.
• Assisted members in transacting over $1 billion with diverse suppliers through Premier’s group purchasing program.
• Enhanced professional development opportunities with Leadership Excellence at Premier (LEAP) program.

Governance Achievements

• 100% of employees, board members, and committee members completed required compliance training.
• 44% of the Board of Directors is diverse.
• Developed new contracting standards for assessing and promoting the cybersecurity of internet-connected medical devices and equipment.
• Included an ESG-related metric in the annual incentive plan, targeting increased GPO member spend through diverse suppliers and employee engagement.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions affecting multiple economies and industries, including rising costs of energy, transportation, food, and labor, and the Russia-Ukraine war.
• Limitations in reducing Scope 1 and 2 emissions due to leased office spaces.

Mitigation Strategies

• Partnered with members to invest in domestic manufacturers of masks, gowns, gloves, and other critical supplies.
• Created joint ventures to expand U.S. production of critical supplies.
• Helped supply members with nearly 150 shortage drugs through national drug initiatives and partnerships.
• Exploring future emissions reduction initiatives, including environmental considerations in new lease agreements, efficiency upgrades, and Renewable Energy Certificates (RECs).

Supply Chain Management

Supplier Audits: Third-party audits for S2S direct sourcing suppliers; initial on-site audit and unannounced follow-up visits.

Responsible Procurement

• Supplier Standards emphasizing responsible business practices, human rights, and anti-bribery/anti-corruption standards.
• Environmental considerations integrated into contracting decisions (EPP Advisory Council).

Climate-Related Risks & Opportunities

Physical Risks

• Infrastructure and supply chain disruptions

Transition Risks

• Regulatory changes, macroeconomic conditions

Opportunities

• Responding to changing health needs related to climate change.

Reporting Standards

Frameworks Used: SASB Standards (Health Care Distributors, Medical Equipment and Supplies, Software and IT Services), TCFD

UN Sustainable Development Goals

• 3
• 5
• 8
• 10
• 12
• 13

Alignment with SDGs through mission, DEIB strategy, SEEDS program, health equity initiatives, environmental stewardship, and climate action.

Awards & Recognition

• 2023 World’s Most Ethical Companies® Honoree by Ethisphere® (16th consecutive year)
• 2023 Heartbeat of Healthcare Supply Chain Award
• Modern Healthcare 100 Most Influential People in Healthcare (Michael J. Alkire)
• Charlotte Business Journal Public Company CFO of the Year (Craig McKasson)
• 2023 Best in KLAS Award for Value-Based Care Consulting
• 2022 BWB Award Winner for innovative use of technology-enabled healthcare solutions

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Responsibility
• Governance Excellence
• Health Equity
• Supply Chain Resiliency
• Diversity, Equity, Inclusion and Belonging (DEIB)

Environmental Achievements

• Continued to streamline Scope 1 and 2 greenhouse gas assessments. Began assessing relevance and materiality of Scope 3 emission categories. Commenced climate resilience planning efforts.

Social Achievements

• Employees donated more than 1,200 hours of their time and strategic expertise to provide leadership support as mentors, committee members or board members to nonprofits that advance community health. Donated $187,816 to charitable organizations worldwide through our Social Responsibility Program.
• Premier’s DEIB indicators scored above global benchmarks for inclusion and belonging. Recognized by Newsweek for its commitment to creating a diverse and inclusive workforce.

Governance Achievements

• Named one of the World’s Most Ethical Companies by the Ethisphere® Institute for the 17th consecutive year.
• Benchmarked our ethics and compliance program through an independent third party.

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 1 and 2 GHG emissions is limited by leased office spaces and a transition to a hybrid work model.
• Addressing drug shortages and ensuring supply chain resiliency.

Mitigation Strategies

• Exploring efficiency upgrades in existing facilities, utilizing energy attribute certificates (EACs), and assessing Scope 3 emissions.
• Working with Congress and the Administration to advance policies that create greater resiliency in the supply chain, and developing a more robust national strategy to prepare for and respond to future national public health emergencies.

Supply Chain Management

Supplier Audits: 100% of S2S suppliers undergo initial on-site audit and unannounced follow-up visits.

Responsible Procurement

• Supplier Standards
• Group Purchasing Code of Conduct
• Environmental Sustainability in Procurement
• Supplier Diversity Program
• Direct Sourcing (S2S Global)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, natural disasters

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: SASB Standards (Health Care Distributors, Medical Equipment and Supplies, Software and IT Services), TCFD, UN SDGs

UN Sustainable Development Goals

• 3.8
• 5.5
• 5.6
• 8.3
• 8.8
• 12.6
• 12.7
• 13.1
• 13.3

See SDG Index

Awards & Recognition

• 2024 World’s Most Ethical Companies® Honoree by Ethisphere®
• Blazer winner of the 2024 Charlotte Inno Fire Awards
• Newsweek America’s Greatest Workplaces for Diversity 2024