SWEP Sustainability and Supply Chains

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Presentation transcript:

SWEP Sustainability and Supply Chains 11/21/2018 SWEP Sustainability and Supply Chains March 2017 The purpose of this presentation is to level set ABC leadership on our evolving sustainability and social responsibility progress, why its beneficial for ABC to have a transparent platform to engage with our stakeholders, and lastly, where we are on this journey in relation to other companies of our size and in our industry. CONFIDENTIAL

11/21/2018 AmerisourceBergen helps people access the healthcare products they need. In the process, we enable the daily improvement of global health. Key points: Note to speaker - We’re working to set a broader construct here, to encompass a bigger purpose (improving global health) Fundamentally, all our services—from product distribution to field reimbursement to our GNP program—help people access the healthcare products they need And with the expansion of our work to animal health, we’re expanding beyond impacting patients and improving healthcare From pet health to the health of livestock animals that feed the world, we’re truly working for the benefit of global health 11/21/2018 CONFIDENTIAL CONFIDENTIAL

We are here – at the center of healthcare delivery 11/21/2018 We are here – at the center of healthcare delivery Pharma Manufacturers Purchase distribution and commercialization services across all product types, including: Brand Generic Specialty Over the counter (OTC) Medical devices Healthcare Providers Purchase pharmaceuticals and healthcare products to provide to patients across all sites of care, including: Community and independent pharmacies Specialty pharmacies Pharmacy benefit managers (PBMs) Health systems Alternate sites of care Physician practices Veterinary clinics Key points: Healthcare is complex and it would be over-reaching to say that anyone can make it simple Market stakeholders are interacting with one another all the time AmerisourceBergen is in the unique position at the center of it all—we are at the core of the healthcare supply chain and the enabler of ensuring market access to products Manufacturers turn to us for product distribution and commercialization solutions they need to connect with tens of thousands of healthcare providers daily Healthcare providers in human and animal health reply on us for the products they need to deliver care and the technologies and solutions they need to run their operations more efficiently AmerisourceBergen delivers value and efficiency to all ends of the healthcare spectrum 11/21/2018 CONFIDENTIAL CONFIDENTIAL

Our company: By the numbers 11/21/2018 Our company: By the numbers $147B 19,000+ 150+ 50+ 2016 Revenue Growth aligned with our customers’ long-term success Company Associates Diverse expertise all focused on improving global health Global Offices Delivering a range of services to address specific, local needs Countries with a Local Presence Growing knowledge of market-specific healthcare environments Key points: Significant growth over the last few years in particular have expanded the knowledge, reach and partnership we’re able to deliver to the market Expansion in all ways: Geographies (World Courier, Xcenda Europe, AmerisourceBergen Switzerland) Service to existing customers (PharMEDium, Innovation Cancer) Service to new customers (MWI Animal Health) 11/21/2018 CONFIDENTIAL CONFIDENTIAL

Sustainability & Social Responsibility Framework Available on AmerisourceBergen.com At AmerisourceBergen we recognize that the economic, social and physical environment in which our company operates is an integral part of our success. Our company’s mission is to improve patients’ lives by delivering innovative services and solutions that drive quality and efficiency in healthcare. As we live out this mission, we’re continuously seeking to integrate sustainability and social responsibility principles into our daily actions. We have opportunities: In our operations: to ensure safe product handling, manage greenhouse gas emissions, improve energy efficiency, minimize waste and maximize recycling In our communities: to leverage associate volunteer engagement opportunities, donate products and support corporate giving. In addition, through the AmerisourceBergen Foundation, partner with nonprofit organizations that focus on health, education and the community. Among our associates: to take care of our associates by ensuring a safe, diverse workplace and encouraging personal wellness Across the healthcare supply chain: to work alongside our customers and partners to advance sustainability and social responsibility across the healthcare supply chain 11/21/2018 CONFIDENTIAL

Putting Sustainability into Action Governance: Established a steering committee to govern our sustainability activities and policies across the enterprise Oversight of our sustainability and corporate responsibility programs is now part of the charter for our Board’s Governance and Nominating Committee Actions & Disclosure: Developing the tools and analytical capabilities to improve our disclosures on sustainability metrics We responded to CDP’s survey on greenhouse gas emissions this past year, and we will continue to enhance our disclosures in this area in the years ahead. Conducted energy audits to support sub-metering and energy audits to better understand energy flow through DCs Modified Building Design Guidelines in partnership with engineering for new DCs; e.g. more efficient HVAC systems, vent refrigerator/freezer outside, high grade air filters; rebates Reviewed and modified annual maintenance assessments to include practices that support energy efficiency; e.g., maintain compressor systems/evaluate leaks Implementing sustainable sourcing commitment and guidelines to integrate into the procurement process Assessing opportunities for Energy Star certification or LEED certification in office space and Distribution Centers 11/21/2018 CONFIDENTIAL

AmerisourceBergen Supply Chain Practices Utilize totes for deliveries to major customers that are reusable Utilize reusable cold-chain totes for deliveries of refrigerated product to customers Partner with EPA Smartway certified shippers for long-haul trucking needs Third-party carriers utilize sophisticated delivery route planning methods to consolidate orders and shipments - minimizing the number of vehicles required to serve our customers 11/21/2018 CONFIDENTIAL