Climate Change Data

Environmental Metrics

ESG Focus Areas

• Thriving Planet
• Thriving Business
• Thriving Workplace
• Thriving Community

Environmental Achievements

• Reduced passenger vehicle fleet by 77 vehicles, saving nearly 22,612 gallons of fuel and reducing emissions by 193 metric tons.
• Improved delivery fleet miles per gallon by 4.3% in FY22.
• Diverted more than 76,000 tons of recyclable material from landfills through four individual programs.
• Cut overall advertising circular programs by approximately 2 million copies per week, reducing paper consumption by 2,000 tons.
• Transitioned from plastic air dunnage pillows to a recyclable and biodegradable RanPak solution in eCommerce.
• Safely disposed of 44 tons of pharmaceutical waste in 2021.

Social Achievements

• Launched consumer-led product attribute program with 54 different attributes across 2,000 items.
• Completed 333,000 MTM services to support the health and wellness of over 190,000 patients.
• Administered over 14.3M COVID-19 vaccines.
• Administered over 3.6 million COVID-19 tests.
• Dispensed more than 89,000 Naloxone Prescriptions.

Governance Achievements

• Increased racial and ethnic diversity on the Board of Directors.
• Established Code of Business Ethics and Conduct and Supplier Code of Ethics.
• Implemented NarxCare in 13 states to manage patients at risk for Controlled Substance Misuse and Abuse.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Attraction and retention of talent
• Managing climate risk
• Opioid crisis

Mitigation Strategies

• Supply chain optimization study
• Referral bonuses, sign-on bonuses, pay adjustments, and Self Care Fridays.
• Enterprise Risk Management (ERM) program.
• Medication disposal kiosks, Naloxone dispensing, DisposeRx packets, and participation in prescription drug monitoring programs.

Supply Chain Management

Supplier Audits: 51 factories received social accountability or security audits in 2021

Responsible Procurement

• Responsible Sourcing Guidelines
• Ethical Sourcing Principles
• Supplier sustainability summit
• Integration of sustainability criteria into sourcing process

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Wellbeing
• Goal 5: Gender Equality
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduce Inequalities
• Goal 12: Responsible Consumption & Production
• Goal 16: Peace, Justice and Strong Institutions

Alignment with SDGs detailed on page 11.

Sustainable Products & Innovation

• Sustainable dunnage solution in eCommerce
• Products with attributes like paraben-free, cruelty-free, organic

Awards & Recognition

• #30 in 101 Best Companies for Women in Leadership Index
• John R. Lewis Civil Rights Award

Environmental Metrics

ESG Focus Areas

• Thriving Planet
• Thriving Business
• Thriving Workplace
• Thriving Community

Environmental Achievements

• Reduced paper consumption by more than 6,000 tons by transitioning from paper advertising circular to digital only.
• Diverted more than 38,000 tons of recyclable material from landfills.
• Purchased 50% renewable energy at select stores in Southern California and 100% renewable energy at 110 stores in Northern California.
• Improved delivery fleet miles per gallon by 4.3% in FY22, with continued gains in FY23.
• Installed LED lighting at 49% of stores as of January 31, 2023, on track for 100% by 2035.

Social Achievements

• Launched new diversity, equity and inclusion (DEI) programs and initiatives.
• Offered eligibility for new health benefit programs, expanding learning and development tools for associates.
• Opened two small format stores in rural Virginia to improve access to pharmacy services in underserved communities.
• Completed over 6,500 total onsite immunization clinics, more than 700 in underserved areas.
• Administered over 140,000 total doses of vaccines through onsite clinics.

Governance Achievements

• Extended engagement with stockholders by hosting a retail stockholder call.
• Established a Code of Ethics applicable to associates, Board of Directors, suppliers, and other working companies.
• Integrated ESG initiatives into operations, overseen by the Corporate Social Responsibility Committee.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied)
• Maintaining data security and privacy
• Managing chemicals of concern in products
• Associate turnover (56% in FY23)

Mitigation Strategies

• Supply chain optimization studies and implementation of new replenishment planning system.
• Comprehensive information security program with yearly third-party reviews and layered security strategy.
• Chemical policy and restricted substance list (RSL), collaboration with NGOs and UL.
• Associate Experience Strategy and new Associate Value Proposition (AVP) to improve retention and attraction.

Supply Chain Management

Supplier Audits: 50 factories audited in 2022

Responsible Procurement

• Supplier diversity screening
• Product packaging criteria
• Human rights considerations
• Product sustainability certifications
• Chemical management and emissions data

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, UN SDGs

UN Sustainable Development Goals

• Goal 2
• Goal 3
• Goal 5
• Goal 7
• Goal 8
• Goal 10
• Goal 12
• Goal 16

Initiatives align with these goals as described in the appendix.

Awards & Recognition

• Most Innovative MTM Provider by OutcomesMTM™