Climate Change Data

Environmental Metrics

ESG Focus Areas

• Compliance
• People
• Operations

Environmental Achievements

• 11% reduction in combined absolute Scope 1 and Scope 2 (market-based) emissions
• 8% decrease in absolute total energy consumed
• Over 10% reduction in overall waste
• 4% decrease in medical waste generated
• 6.5% decrease in water withdraw
• Increased waste reclamation rate by 6% since 2020
• 385% increase in renewable electricity and RECs purchased

Social Achievements

• Reduced work-related injury rate per 100 employees by 6.3%
• Maintained work-related lost time injury rate per 100 employees at 0.3
• Completed 235,000 safety training sessions
• Implemented a common Corporate EHS Audit process
• Global headcount increased by over 10%
• Hiring outpaced voluntary attrition
• Invested more than $39 million in pay adjustments

Governance Achievements

• Created ESG-focused goals for our executive committee
• Established science-based targets for greenhouse gas (GHG) emission reductions and submitted targets for validation
• Purchased an ESG platform to assist in organizing multiple ESG aspects and data streams and enable audit verification

Climate Goals & Targets

Environmental Challenges

• Challenges in acquiring and retaining talent
• Global supply chain disruptions
• Increased severity and frequency of extreme weather events
• Rising costs due to increased carbon regulation

Mitigation Strategies

• Competitive compensation and benefits programs
• Strategic innovations in automated clinical trial kit production
• Comprehensive Business Resilience program including business continuity and disaster recovery assessments and planning
• Risk assessments with third-party insurers
• Diverting specimens and using a network of vendors to procure equipment

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity and frequency of extreme weather events

Transition Risks

• Increased fuel and energy costs, taxes and regulations
• Increased regulatory burdens

Opportunities

• Resource efficiency via organizational transition to more efficient buildings, reduction of water usage and consumption, reduction in energy consumption
• Cost savings related to more efficient processes

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: My Green Lab

Third-party Assurance: ERM Certification & Verification Services Incorporated

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2022 Princess Royal Training Awards

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Inclusion, Diversity & Belonging
• Community Engagement

Environmental Achievements

• Reduced total energy consumption per million dollars of revenue by 5% versus 2022
• 8% decrease in Scope 2 (market-based) emissions per million dollars of revenue versus 2022
• 7% increase in renewable electricity and RECs purchased versus 2022
• 22% increase in waste reclaimed versus 2020
• Improved CDP Supplier Engagement Rating to A-
• Maintained CDP Climate Change B rating and EcoVadis Bronze Rating
• SBTi approved Labcorp SBTs to reduce greenhouse gas emissions

Social Achievements

• Women comprised over 70% of our workforce and 60% of management roles globally. In the U.S., more than half of our employees are people of color, and more than 30% of management positions are held by people of color.
• Expanded our focus on mental well-being by adding a dedicated U.S. specialist and launching Mental Health First Aid Training.
• Continued to offer a No-Charge Laboratory Testing Program and no-cost telehealth visits.
• Introduced a well-being newsletter for Labcorp employees outside the U.S.
• Offered training on managing and thriving through change.
• Launched a new Employee Value Proposition—Embrace Possibilities, Change Lives—
• Reduced monthly medical insurance costs by $240 per year for approximately 19,000 U.S. employees earning under $50,000

Governance Achievements

• Established the ESG Executive Steering Committee (ESC) to lead our strategic approach to key ESG topics.
• Created ESG-focused goals tied to executive compensation.
• Received approval from Science Based Targets initiative (SBTi) for science-based targets for greenhouse gas (GHG) emission reduction.
• Committed to the UN Global Compact (UNGC).

Climate Goals & Targets

Environmental Challenges

• Increased frequency and severity of natural disasters and adverse weather conditions.
• Evolving political dynamics.
• Managing third-party risks globally.
• Protecting data and information assets against external and internal threats.

Mitigation Strategies

• Established a comprehensive business resilience program, encompassing business continuity and disaster recovery assessments and planning, and crisis management.
• Enhanced focus on assessing risks with third parties, establishing a central common ETPRM program and implementing automation for evaluation of Global Compliance, Data Privacy, IT Security and Resilience Risk Assessments.
• Invest in the development and implementation of cybersecurity policies, control standards and procedures.
• Implemented an Incident Response Plan (IR Plan).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct (translated into 14 languages)
• Prioritization of diverse vendors
• Engagement with key suppliers on SBTi targets

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Natural disasters

Transition Risks

• Increased fuel and energy costs
• New regulations
• Changes in technology landscape

Opportunities

• Resource efficiency
• Cost savings from energy reduction projects

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, CDP, UNGC

Certifications: My Green Lab Certification (8 labs)

Third-party Assurance: ERM Certification & Verification Services Incorporated

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Biotech Biorepository Award in the 2023 Freezer Challenge
• Princess Royal Training Award