Climate Change Data

Environmental Metrics

ESG Focus Areas

• Access to Health Care
• Team Schein Engagement
• Environmental Sustainability
• Accountability

Environmental Achievements

• More than 28 percent reduction in energy consumption at U.S. Distribution Centers
• Recycled more than 8,300 metric tons of materials at U.S. Distribution Centers
• Reduction of more than 5,500 metric tons in carbon emissions

Social Achievements

• Donated more than $50 million in health care products to more than 200 non-profit organizations
• Donated more than $13 million in oral health care products to provide free oral health services for nearly five million children through Give Kids A Smile®
• Sent more than 4,800 health kits to 51 countries to support nearly 500 missions helping more than 300,000 people
• Raised more than $1.2 million to support environmental, cancer-related and health and wellness causes
• Donated new clothes and backpacks filled with supplies to more than 27,000 children
• Donated 9,000 Henry Schein Cares Welcome Kits to American Cancer Society Hope Lodge®
• Supported the Alpha Omega-Henry Schein Cares Holocaust Survivors Oral Health program, providing pro-bono dental care to 250-300 Holocaust survivors

Governance Achievements

• Maintained high standards for transparency, accuracy and completeness in the documentation and reporting of all financial information
• Adhered to all relevant federal, state and local regulations
• Named a World’s Most Ethical Company® in 2015 by Ethisphere Institute

Climate Goals & Targets

Environmental Challenges

• Lack of access to health care services in developing nations
• Gap between those with ready access to health care practitioners and the underserved
• Need to provide vital health care products and services to areas devastated by natural disaster or political unrest
• Oral health problems among children in underserved communities
• Need for disaster relief efforts in response to events like the Ebola outbreak

Mitigation Strategies

• Developed innovative public-private partnership programs
• Supported global health care missions
• Donated health care supplies to non-profit community health clinics
• Supported the ADA Foundation’s “Give Kids A Smile®” program
• Established a 24-hour disaster-relief hotline
• Established relief funds
• Worked with supplier partners to provide personal protective equipment during the Ebola outbreak

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Working with suppliers to provide needed medical and dental supplies for disaster relief and community programs

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: LEED Silver Certification (Melville East Building)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-friendly and green-certified products offered through Global Reflections catalog

Awards & Recognition

• FORTUNE® World’s Most Admired Company (14 consecutive years)
• World’s Most Ethical Company® (2015)

Environmental Metrics

ESG Focus Areas

• Ethical Corporate Governance
• Social Responsibility
• Sustainability
• Environmental Stewardship
• Community Investment
• Employee Well-being
• Diversity and Inclusion

Environmental Achievements

• Achieved LEED® Silver Certification for two buildings at world headquarters.
• Recycled over 9,500 tons of waste material in North American distribution centers.
• Increased sales of “green” products by 45% over 2014.
• 100% of Henry Schein Dental Sales and Service Centers have energy-efficient lighting.

Social Achievements

• Donated over $1.3 million in products to the ADA Foundation’s Give Kids A Smile program.
• Raised over $210,000 through Calendar of Caring initiatives.
• Partnered with Canine Companions for Independence to provide care packages to veterinarians supporting puppy raisers.
• Supported NYU College of Dentistry's Global Student Outreach Program.
• Partnered with Urban Health Plan to support community health initiatives.
• Donated more than $7.1 million in healthcare products to over 100 US community-based organizations.
• Team Schein Members volunteered thousands of hours annually for charity work.

Governance Achievements

• Named to Ethisphere® Institute’s list of the World’s Most Ethical Companies for the fifth consecutive year.
• Ranked first in its industry on Fortune’s list of World’s Most Admired Companies for the 15th year.
• Implemented Worldwide Business Standards articulating values and responsibilities for all Team Schein Members.

Climate Goals & Targets

Environmental Challenges

• Recruiting and retaining employees in competitive markets.
• Balancing the need for sick care reimbursement with the promotion of prevention and wellness.
• Ensuring that donated products reach intended recipients in disaster relief efforts.

Mitigation Strategies

• Fostering an entrepreneurial and supportive work environment.
• Developing public health campaigns and community partnerships to promote prevention.
• Collaborating with NGOs and other organizations to coordinate and deliver supplies effectively.

Supply Chain Management

Supplier Audits: Continuous audits for product quality and compliance with regulatory requirements (including elements of SA8000 for Asia-based suppliers).

Responsible Procurement

• Adoption of elements of Social Accountability International’s (SAI) SA8000 standard into the Quality Systems Audit Program.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Eco-friendly products offered through the Global Reflections program.

Environmental Metrics

ESG Focus Areas

• Access to Care
• Environmental Sustainability
• Team Schein Engagement
• Governance and Accountability

Environmental Achievements

• Reduced emissions-per-vehicle for service fleet by 11.3% since 2008
• Reduced electric demand in U.S. distribution centers by 2.7 million kilowatt hours over base year 2007
• Recycled over 10,000 tons of waste material in North American distribution centers, reducing carbon emissions by 5,700 tons
• 100% of Henry Schein Dental Sales and Service Centers have energy-efficient lighting

Social Achievements

• Provided over $10.5 million in cash and in-kind donations through Henry Schein Cares and the Henry Schein Cares Foundation, supporting over 500 organizations
• Provided more than $7.7 million in healthcare products to nearly 100 U.S.-based medical and dental humanitarian organizations
• More than 11,000 volunteer hours donated by TSMs
• More than 4,000 TSMs participated in community service programs
• More than 8,700 TSMs participated in wellness programs

Governance Achievements

• Earned a perfect score for the second consecutive year on the 2017 Corporate Equality Index
• Ten of fifteen Board of Directors are independent directors
• Board committees comprised solely of independent directors with separate chairpersons
• Established a new award recognizing the social responsibility activities of its U.S. Equipment Service Technicians

Climate Goals & Targets

Environmental Challenges

• Measuring the total societal impact of philanthropic activities and carbon footprint

Mitigation Strategies

• Initiated a journey to better measure and report on the human, financial, and environmental impact of their work
• Moving towards more comprehensive disclosure of carbon footprint

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Global Supplier Code of Conduct (business integrity, labor practices, employee health and safety, environmental management)
• Elements of Social Accountability International’s SA8000 standard in Quality Systems Audit Program for Asia-based suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: LEED® Silver Certification (world headquarters)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Fortune’s list of World’s Most Admired Companies (15th consecutive year)
• Ethisphere® Institute World’s Most Ethical Companies (5th consecutive year)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Performance
• Governance and Ethics

Environmental Achievements

• Recycled approximately 10,028 tons of material at North American distribution centers, saving over 6,380 metric tons of carbon emissions.
• Mitigated carbon impact by 76% by limiting air transport in the U.S. core business supply chain.
• Offered customers 100+ products made with biodegradable, recycled, chlorine-free, and natural materials.

Social Achievements

• Launched new chapters of Women’s Leadership Network and a new employee resource group, Pride & Allies.
• Continued Diversity & Inclusion learning journey through TSM roundtables.
• Provided over $13.2 million in cash and product donations globally.

Governance Achievements

• Formalized the Regulatory, Compliance and Cybersecurity Committee.
• Incorporated ESG oversight within the Board of Director’s Nominating and Governance Committee.
• Updated Worldwide Business Standards to codify values and responsibilities for all Team Schein Members.

Climate Goals & Targets

Environmental Challenges

• Environmental impact of global supply chain (CO2 emissions from distribution centers and transport, ethical and labor risks in countries with weaker institutions).

Mitigation Strategies

• Partnering with suppliers, managing impacts, innovating for sustainability.
• Risk-based approach to monitoring ethical and labor performance of suppliers (desk audits, site visits, etc.).
• Use of elements of SA8000 standard for Asia-based private-label supplier partners.

Supply Chain Management

Supplier Audits: More than 130 audits in Asia since 2015

Responsible Procurement

• Global Supplier Code of Conduct (business integrity, labor practices, employee health and safety, environmental management).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)

Supporting health equity and systems strengthening; expanding access to care for vulnerable populations.

Sustainable Products & Innovation

• Products made with biodegradable, recycled, chlorine-free, and natural materials.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Supply Chain Sustainability
• Health Equity
• Employee Well-being

Environmental Achievements

• Reduced U.S. fleet emissions per vehicle by 28% since 2008 baseline.
• Recycled approximately 9,768 tons of material at North American distribution centers in 2020.
• Mitigated carbon impact by 75% in 2020 through enhanced ground transport network in the U.S.

Social Achievements

• Donated over $38 million in cash and product globally in 2020, a significant portion for COVID-19 relief.
• Provided jobs for more than 19,000 TSMs globally in 2020.
• Launched a Mental Wellness Committee to support employee well-being.

Governance Achievements

• Formalized ESG reporting and transparency strategy, expanding reporting scope beyond North America.
• Established a Diversity and Inclusion Council with Board and Executive Management Committee engagement.
• Implemented an individual D&I goal tied to the annual performance incentive program for senior managers.

Climate Goals & Targets

Environmental Challenges

• Significant disruptions to the global supply chain due to the COVID-19 pandemic, limiting the availability of essential PPE and other supplies.
• Increased pressure on the supply chain due to rapidly changing government restrictions on the export and distribution of PPE.
• Higher than expected U.S. TSM turnover in 2020 due to restructuring and pandemic conditions.

Mitigation Strategies

• Worked tirelessly to source high-quality PPE and other supplies, adding 48 suppliers and over 1,500 new SKUs.
• Partnered with government officials and manufacturers to secure greater allocation of PPE.
• Implemented cost-reduction measures, including decreased capital expenditures and reduced corporate spending.

Supply Chain Management

Supplier Audits: 71 audits in 2020 (including 34 at Asian supplier sites)

Responsible Procurement

• Global Supplier Code of Conduct covering business integrity, labor practices, human rights, employee health and safety, and environmental management.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 13485, ISO 9001

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 8 (Decent Work and Economic Growth)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 17 (Partnerships for the Goals)

Henry Schein's unique position at the intersection of healthcare enables positive influence on these SDGs.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Health Equity
• Supply Chain Sustainability
• Governance

Environmental Achievements

• Reduced fleet emissions per vehicle by 19.8% in the U.S. since 2008 baseline.
• Recycled approximately 13,870 tons of material at distribution centers.
• Offset 4,954 metric tons of emissions through various projects.
• Mitigated carbon impact by 74% in the U.S. through enhanced ground transport network.

Social Achievements

• Donated over $21.5 million in cash and product globally to advance health equity.
• Launched elevAsian ERG for Pan-Asian TSMs.
• Provided Diversity & Inclusion education to 500+ TSMs.
• Maintained voluntary employee turnover below industry benchmarks at 15%.

Governance Achievements

• Published first Task Force on Climate-Related Financial Disclosures (TCFD) report.
• Reported in accordance with GRI and SASB standards.
• Added a new Team Schein value: “Diversity and Authenticity Are Embraced to Create a Sense of Belonging for All.”

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic.
• Increased demand for PPE and other COVID-19 related supplies.
• Shortages of labor and shipping containers.
• Delays at ports.

Mitigation Strategies

• Developed sourcing strategies focused on supplier and geographic diversification.
• Expanded access to COVID-19 testing and supplies through partnerships.
• Maintained a robust COVID-19 Resource and Education Center on their website.
• Implemented initiatives to understand customer interactions better.

Supply Chain Management

Supplier Audits: 100 audits in 2021

Responsible Procurement

• Global Supplier Code of Conduct
• SA8000 standard for Asia-based private-label suppliers
• Responsible Glove Alliance co-founder (2022)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB – Health Care Distributors Standard

Certifications: LEED® Silver Certification (Melville headquarters)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 3 (Good Health and Well-being)
• Goal 8 (Decent Work and Economic Growth)

Initiatives contribute to these goals through various programs and partnerships.

Sustainable Products & Innovation

• Over 235 environmentally friendly products through Global Reflections® Program

Awards & Recognition

• 100 on Human Rights Campaign Foundation’s Corporate Equality Index (2021 and 2022)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Performance
• Governance & Ethics

Environmental Achievements

• Increased and exceeded original goal of 10% reduction in North America distribution center lift truck fleet emissions by 2025 (reached 76% reduction from 2019 baseline)
• Developed formal process to consistently track and document all recycling and waste goals across the U.S.
• Offset 3,915 metric tons of emissions through various projects including reforestation and landfill gas destruction

Social Achievements

• Increased female representation in global leadership roles by 2%
• Increased ethnically diverse representation in U.S. manager and above roles by 4%
• Donated over $28.8 million in cash and product to advance health equity
• Expanded mentorship program to include a diversity lens (470 total matches)

Governance Achievements

• Formalized Chief Sustainability Officer role
• Formed an Environmental Impact Council
• Completed a new ESG materiality assessment

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (though receding from pandemic levels)
• Ukraine humanitarian crisis impacting access to care
• Slightly higher voluntary turnover rate (22%) compared to 2021, mostly in distribution centers

Mitigation Strategies

• Strengthened supply chain resilience through innovation and partnerships
• Launched a human rights compliance training course
• Chaired the Private Sector Roundtable on Global Health Security
• Supported market intelligence platforms for supply chain data sharing
• Evaluating people-related practices to retain talent, particularly in distribution centers

Supply Chain Management

Supplier Audits: 77 audits in 2022

Responsible Procurement

• Global Supplier Code of Conduct
• Supplier diversity program
• Practice Green™ initiative

Climate-Related Risks & Opportunities

Physical Risks

• Sea level rise
• Flooding
• Water stress

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI Standards, SASB – Health Care Distributor Standard (October 2018), TCFD

Certifications: LEED® Silver Certification (Melville headquarters)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Henry Schein's initiatives contribute to these goals through various programs and partnerships

Sustainable Products & Innovation

• Practice Green™ product portfolio

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Customer satisfaction
• Governance and accountability (product quality, patient safety, ethics & compliance)
• Public health crises
• Attracting and retaining talent (health & safety, training, career support, diversity & inclusion)
• Greenhouse gas emissions

Environmental Achievements

• Achieved 100% all-electric lift truck fleet in U.S. DCs with 76% high-efficiency charging equipment.
• Increased North American DC recycling program by 28.8% over 2020 metrics.
• Reduced 4.5% of waste sent to landfills from our North American DCs compared with the 2022 baseline.

Social Achievements

• Launched Voice of the Employee continuous-listening program.
• Expanded employee resource groups (ERGs).
• Updated Worldwide Business Standards.
• Lowered voluntary turnover rate to 18% in the U.S. (down from 22% in 2022, outside of distribution centers).

Governance Achievements

• Increased the percentage of independent directors on the Board from 71% to 85% and female directors from 21% to 31%.
• Conducted limited assurance of Scope 1 and 2 emissions by a third party.
• Updated Worldwide Business Standards and social media guidance for Team Schein Members; issued Global Principles on Data Protection and Security and the Responsible Use of AI Systems.

Climate Goals & Targets

Environmental Challenges

• Cybersecurity incident in October 2023.
• Supply chain disruptions.
• Data limitations and exclusions.

Mitigation Strategies

• Restored affected systems and applications following the cybersecurity incident.
• Investing in and developing the supply chain team; building a technology roadmap; enhancing resiliency by accelerating diversification of sourcing.
• Expanding GHG reporting across various categories, geographies, and entities; improving data collection methodologies.

Supply Chain Management

Supplier Audits: 71 audits/year (2023)

Responsible Procurement

• Global Supplier Code of Conduct
• Social accountability checklist for Asia-based Henry Schein brand suppliers
• Practice Green initiative

Climate-Related Risks & Opportunities

Physical Risks

• Sea level rise flooding
• Water stress
• Wildfire

Transition Risks

• Fuel price increases
• Carbon pricing
• Supply chain transport costs

Opportunities

• Fossil fuel cost savings from alternative fuel vehicles
• Carbon cost savings from reduced natural gas consumption

Reporting Standards

Frameworks Used: GRI Standards, SASB - Health Care Distributors Standard (October 2018)

Certifications: ISO 13485:2016, ISO 9001:2015

Third-party Assurance: Third-party limited assurance for Scope 1 and 2 emissions (2023)

Sustainable Products & Innovation

• Products included in Practice Green initiative