Sustainability Commitment

Our supply chain begins with the choices we make about who we partner with and what products we source, and we make those choices with environmental responsibility at the forefront. We evaluate every supplier comprehensively on environmental certifications, waste management practices, water stewardship, energy efficiency, and ethical labor practices as part of both initial onboarding and annual reviews. This evaluation is not a checkbox exercise—it is a deep assessment that informs our partnership decisions. We recognize that sustainable sourcing requires understanding the full lifecycle impact of products, from raw material extraction through manufacturing, distribution, use, and end-of-life. We work with suppliers who share our commitment to environmental stewardship, understanding that true sustainability requires alignment throughout the supply chain.

Preferred suppliers are those who go beyond minimum requirements to demonstrate genuine environmental leadership. They share verified, third-party audited data on material composition, recyclable content, carbon footprint, water usage, and responsible packaging. This transparency is not optional—it is essential to building trust and making informed decisions. We recognize that greenwashing is a real problem in supply chains, and we combat it by demanding verified data, not marketing claims. We work with suppliers who are committed to continuous improvement, who set ambitious environmental goals, and who are transparent about both their successes and their challenges.

Our partnerships with manufacturers extend far beyond transactional relationships—they are collaborative efforts to redesign products for sustainability. We work together to reduce single-use plastics, eliminate hazardous materials, minimize packaging, increase recyclable content, and design products for circularity. These redesigns are not just about environmental impact—they often result in products that are better, safer, and more cost-effective. We recognize that product design decisions made today will impact the environment for decades, and we make those decisions with that long-term perspective in mind. We invest in research and development partnerships that explore innovative materials, packaging solutions, and product designs that reduce environmental impact without compromising quality or safety.

We actively seek out and support suppliers who are developing innovative sustainable solutions, recognizing that building a sustainable supply chain requires supporting innovation. This includes suppliers developing biodegradable materials, circular economy models, carbon-negative processes, and other breakthrough technologies. We understand that sustainable innovation often requires early-stage support, and we are committed to being early adopters and champions of truly sustainable solutions. We recognize that the transition to a sustainable economy requires bold action, and we are committed to being part of that transition.

Our commitment to responsible sourcing extends to understanding and addressing the social and environmental impacts of our supply chains in communities around the world. We work with suppliers who respect human rights, protect biodiversity, support local communities, and operate with environmental integrity. We recognize that sustainable sourcing is not just about environmental metrics—it is about building supply chains that are ethical, equitable, and regenerative. We understand that our purchasing power can be a force for positive change, and we use that power intentionally to support suppliers who are building a more sustainable future.

Our distribution centers and facilities are not just warehouses—they are opportunities to demonstrate what sustainable operations look like in practice. Every distribution center pursues ISO 14001 environmental management certification, implementing comprehensive environmental management systems that drive continuous improvement. We invest in energy-efficient LED lighting, smart HVAC systems that optimize energy usage based on real-time conditions, advanced building automation systems, and waste diversion programs that achieve high recycling and composting rates. These investments are not just good for the environment—they reduce operating costs, improve working conditions, and demonstrate our commitment to sustainable operations.

Fleet optimization is a critical component of our sustainability strategy, recognizing that transportation is a major source of emissions in our operations. We optimize routing algorithms to minimize miles traveled, consolidate shipments to maximize load efficiency, and invest in fuel-efficient and alternative-fuel vehicles. We work with carriers who share our commitment to reducing emissions, including those offering carbon-neutral shipping options, electric vehicle fleets, and other innovative solutions. We recognize that modal shifts—moving freight from air to ground, or from truck to rail—can dramatically reduce emissions, and we make those shifts whenever possible without compromising service levels. We understand that perfect is the enemy of good, and we make progress where we can while working toward more ambitious goals.

Renewable energy is central to our operational sustainability strategy. We invest in renewable energy credits to offset our electricity consumption, but we go beyond offsets to invest in onsite solar installations wherever feasible. We recognize that generating clean energy on our own facilities reduces our environmental impact, provides energy security, and demonstrates our commitment in a tangible way. We work with utilities and energy providers to increase the renewable content of grid electricity, and we explore innovative solutions like battery storage, microgrids, and other technologies that can further reduce our environmental footprint. We understand that the transition to renewable energy is urgent, and we are committed to accelerating that transition.

Water stewardship is essential to sustainable operations, and we manage water usage with the same rigor we apply to energy. We implement water-efficient fixtures, recycling systems, and monitoring technologies that help us understand and reduce our water footprint. We recognize that water scarcity is a growing challenge in many regions, and we design our operations to be resilient and responsible in their water usage. We work with suppliers and partners to understand and address water impacts throughout our supply chain, recognizing that water stewardship requires a comprehensive approach.

Waste reduction and circularity are fundamental to our operational sustainability. We implement comprehensive waste diversion programs that minimize landfill waste through recycling, composting, and waste-to-energy solutions. We work to eliminate single-use items, reduce packaging, and design our operations for circularity. We recognize that waste is often a design flaw, and we work continuously to design waste out of our operations. We partner with waste management providers who share our commitment to circularity, and we explore innovative solutions like closed-loop systems, material recovery, and other approaches that keep materials in productive use rather than sending them to landfills.

What gets measured gets managed, and we measure our environmental impact with comprehensive rigor. Our sustainability dashboard tracks greenhouse gas emissions (Scope 1, 2, and material Scope 3), water usage, waste diversion rates, recycled content, renewable energy usage, and other key environmental metrics across the entire enterprise. This dashboard is not a static report—it is a living tool that provides real-time visibility into our environmental performance, enabling data-driven decision-making and rapid response to issues. We recognize that comprehensive measurement requires robust data collection systems, and we invest in the technology and processes necessary to capture accurate, timely environmental data.

Transparency is essential to accountability, and we publish an annual sustainability report that provides complete visibility into our environmental performance, goals, challenges, and progress. This report is aligned with the Global Reporting Initiative (GRI) Standards and the Sustainability Accounting Standards Board (SASB) framework, ensuring that it meets the highest standards for sustainability reporting. But our reporting goes beyond compliance—it tells the story of our sustainability journey with honesty, including both our successes and our areas for improvement. We recognize that perfect sustainability is not achievable, but transparent progress is essential, and we commit to that transparency.

Progress is reviewed quarterly with executive leadership, ensuring that sustainability remains a strategic priority and receives the attention and resources it deserves. These reviews are not ceremonial—they are substantive discussions about performance, goals, challenges, and opportunities. When targets are at risk, we implement course corrections immediately, recognizing that environmental goals are not optional. We understand that sustainability requires constant attention and adaptation, and we build that into our governance processes. Executive compensation is tied to sustainability performance, ensuring that environmental responsibility is not just a value statement, but a business imperative.

We engage stakeholders—including customers, suppliers, employees, investors, and communities—in our sustainability journey, recognizing that true sustainability requires collaboration. We share our goals, our progress, and our challenges transparently, and we actively seek feedback and partnership. We understand that we cannot achieve sustainability alone, and we work with partners who share our commitment to build a more sustainable healthcare supply chain. We participate in industry initiatives, coalitions, and partnerships that advance sustainability, recognizing that systemic change requires collective action.

Continuous improvement is at the heart of our sustainability commitment. We set ambitious goals, but we also recognize that goals must evolve as we learn, as technology advances, and as the urgency of environmental challenges increases. We benchmark our performance against industry leaders, learn from best practices, and innovate new approaches to sustainability. We understand that the sustainability journey is never complete—it is a continuous process of improvement, innovation, and commitment. We are not satisfied with incremental progress when transformative change is needed, and we push ourselves and our partners to achieve more.