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When buying or leasing new vehicles, we look for key criteria including fuel consumption and low carbon emissions, as well as ensuring the vehicles adhere to high quality standards.
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When we purchase or lease vehicles in the U.S., we specify such attributes as aerodynamic vehicle components to reduce drag and increase fuel economy.
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We also use lightweight materials for key components, and engine mapping technology to increase fuel efficiencies.
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Our fleet in North America has already seen the impact of these efforts, and we continue to adjust our fleet to increase efficiency.
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For example, we are upgrading tractors and in Canada we have introduced trucks with an Espar system that helps reduce fuel use.
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Trailers are also equipped with skirts that improve aerodynamics and help reduce fuel consumption, and we run bulkheads in our trailers for more efficient airflow and less use of refrigerant fuel.
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We are exploring additional opportunities to electrify our fleet.
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In Europe, our fleet is comprised of electric (EV) or hybrid vehicles and we anticipate purchasing additional EVs as well.
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In addition, we have replaced some internal combustion engine vehicles with electric delivery bikes.
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These bicycles enable us to reduce our fuel consumption related to deliveries.
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In the U.S., we are enthusiastic at the prospect of increasing the number of electric vehicles we use to deliver key pharmaceutical and medical supplies across the country.
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We test EVs and compressed natural gas (CNG) vehicles to determine potential In Europe and the United States, we use a standard route optimization software solution, which helps our drivers find the most fuel-efficient routes for deliveries.
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Impact Report opportunities to incorporate them into our fleet and realize emissions reductions.
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Our U.S. MedicalSurgical business, which owns and operates the largest fleet within our enterprise, recently placed its first order of EVs — marking the beginning of integrating these vehicles into our overall strategy.
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We continue to explore additional opportunities to increase the electrification of our fleet and drive down fuel consumption.
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Reducing our electricity use In our distribution centers, pharmacies and offices, we focus on reducing energy use and finding alternative sources of energy.
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Our most significant use of energy is electricity in our buildings, whether they are offices, distribution centers or warehouses.
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Across our locations, we work to use less energy for lighting and heating, ventilation and air conditioning (HVAC).
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In fiscal year commitment to design new office buildings in accordance with a newly developed connected buildings standard.
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We’re also making an ongoing effort to apply this standard retroactively to as many existing assets as practical.
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This technology will give our teams elevated visibility to building operations, as well as a real-time analytics platform to identify and diagnose inefficiencies in HVAC, lighting and other building systems.
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We anticipate these findings will result in energy savings and extended equipment lifetimes.
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We implement lighting retrofit projects to convert less efficient lighting fixtures to LEDs, which use far less electricity.
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Since FYestimated average reduction of 23% in our electricity use at participating buildings due to these LED installations across 30 locations covering more than 6.3 million square feet.
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This equates to a reduction of 19.9 million kilowatt hours (kWh) of electricity.
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In FYwe expanded the program to 450,000 additional square feet across two distribution centers.
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As part of McKesson’s energy reduction strategy, we pursue Leadership in Energy and Environmental Design certification (LEED), when feasible, for newly constructed or renovated U.S. offices.
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We have earned LEED for Commercial Interiors Gold certification for Building and earned LEED for Commercial Interiors Silver certification for offices in Jacksonville, Fla.
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Since FYU.S., we have realized an estimated average reduction of 23% in our electricity use at participating buildings due to these LED installations across 30 locations covering more than 6.3 million square feet.
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Operations >Table of Contents | LEED-certified buildings play an integral part in reducing the harmful effects the built environment has on the climate and directly support McKesson’s enterprise-wide ESG strategy.
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In addition to reducing our overall electricity emissions, we also work to increase the amount of renewable energy in our portfolio.
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In FYrenewable energy for most of the company’s locations in Texas.
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The agreements provide approximately energy per year primarily sourced from the Foard City Wind Farm and Sweetwater Wind Farm in Texas, along with the concurrent Renewable Energy Credits (RECs).
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The West Sacramento, Calif., distribution center has been live since FY20, and produced electricity equivalent to more than two-thirds of the facility’s annual consumption in its first year.
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Construction is expected to be completed by FYarray at our distribution center in Robbinsville, N.J. McKesson Europe consumed more than 31,500 MWh of renewable energy in FY21.
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Reducing emissions in our value chain We recognize that our environmental impact does not stop at our doors, and that we have an important role to play in reducing emissions across our value chain.
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This includes encouraging employees to choose more environmentally sustainable commuting options and avoiding business travel where possible.
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For travel to the office, we encourage employees to use sustainable options when possible, like bikes or buses.
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In North America, McKesson offers commuter benefits, allowing employees to use pre-tax funds to pay for items such as subway cards or train tickets.
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In Canada, our Montreal office has reserved parking spaces for people who carpool.
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Several sites in Canada, Europe and the U.S. also offer electric/ hybrid car charging stations.
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While business travel is traditionally a part of how we work, we also recognize its negative environmental impact.
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In response to the COVID-implemented a temporary mandatory telecommuting policy, which required all employees who are able to do their jobs remotely to work from home, and we restricted non-essential business travel.
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We measure and report on the following categories of Scope upstream transportation and distribution, waste generated in operations, business travel, employee commuting, and upstream leased assets.
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We report on these categories because it provides a more complete representation of our emissions impact.
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While our emissions footprint has the most direct connection to our climate change impacts, we also seek to reduce our overall environmental impact, which includes our work to reduce the waste we generate and increase our use of recycled and recyclable products.
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Waste in our operations We generate waste in our offices, warehouses, distribution centers and pharmacies.
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In every McKesson location, we aim to reduce the amount of waste we produce.
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Where we cannot reduce, we try to reuse materials and seek to avoid sending waste to landfill by donating, recycling or composting.
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For example, when consolidating office space or moving to a new location, furniture and other office items often go to landfill; but since partnered with a vendor that recycles, resells and donates these items instead.
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Projects in FYand other office items from the landfill.
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Of the items, 47.8% were recycled, and just 1.3% were landfilled.
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In addition, as part of our LEED certifications, McKesson aims to divert and construction waste from landfills.
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Other waste (non-hazardous, non-recycling)** 4,416 4,088 * U.S. only **Europe only Figures above represent sites for which we have tonnage data, which may not include all locations in the U.S. and Europe.
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The year-over-year increase in reported hazardous waste is largely due to improved data quality.
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Impact Report Hazardous waste Our Hazardous and Regulated Waste Management program establishes standards to identify and manage hazardous and regulated waste.
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McKesson defines hazardous or regulated waste as any waste that exhibits an Environmental Protection Agency (EPA) or specific state hazard characteristic.
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For example, some pharmaceutical, medical and over-the-counter products may be considered hazardous or regulated wastes if damaged or unsalable.
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Through the program, we monitor that accumulation and disposal of waste from McKesson facilities complies with international, national and regional regulations.
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When it comes to e-waste, we partner with certified suppliers for both leased and non-leased assets.
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Leased electronic assets make up the bulk of our portfolio.
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Upon return, many are wiped clean and reused.
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If they can’t be reused, the parts are recycled when possible.
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In Germany, we work with a non-profit to promote the reselling or recycling of electronic assets.
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The nonprofit is an IT company focused on providing employment opportunities for disabled workers.
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Waste in our supply chain We collaborate across our value chain to reduce the environmental impact of the products we sell or transport.
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In addition to requiring that suppliers adhere to all applicable laws, our MSSP make clear that we expect our suppliers to have systems and processes in place regarding appropriate handling and proper disposal of hazardous waste, as well as measures to prevent, reduce and remediate any spills.
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to customers — including pharmacies and hospitals — in reusable containers.
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After the containers are unloaded and emptied at their destination, we use them for the next delivery.
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Operations >Table of Contents | Takeback/donation programs Part of conserving resources means working to ensure that unused medications and medical supplies go to people and organizations that can benefit from them.
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Below are some examples of how we reduce our waste footprint through the reuse or donation of materials or supplies.
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In Ireland, cardboard boxes that are delivered to the warehouse were typically destroyed.
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However, teams now inspect boxes and reuse those boxes that show no signs of damage.
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The returns teams at several distribution centers in Canada collect returned products and arrange for them to be donated to nonprofit outreach programs.
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For example, in the Edmonton distribution center, returned products and discontinued items are donated to the Edmonton Food Bank, which helps redistribute them to other organizations.
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This initiative allows the distribution centers to reduce waste while supporting their local communities in our operations.
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Water in our operations The bulk of our water use stems from landscape irrigation and water consumption in our buildings.
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To manage our water use in the U.S., we monitor alerts in the utility bill-pay system that flags significant usage increases, enabling us to identify potential water leaks and work with the affected locations to ensure they are repaired.
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In past years, we have also installed “smart” irrigation systems at several facilities.
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This technology adjusts watering times based on weather conditions and lets us check our water use remotely.
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Users can receive notifications about changes to the settings or equipment malfunctions.
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This automation saves water because the irrigation system runs less often, and it is easier to identify problems that could lead to excess water use.
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Water use: gallons Fresh water intensity: gallons/ft2* 15.7 14.8 * U.S. only **Restated to include US Oncology Network FY20 water use, which was excluded from previous reporting.
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The year-over-year increase in reported water usage is largely due to improved data quality.
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and response We know that extreme weather events caused by climate change are becoming more frequent and more intense.
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Unfortunately, these disasters impact our employees and communities.
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McKesson works to support and serve our stakeholders during emergencies, crises and disasters.
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Preparing for disasters For more than leader in the delivery of medicines and healthcare products to pharmacies, hospitals and other sites of care — including timely and safe delivery of vital pharmaceuticals and medical supplies during catastrophic events.
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McKesson’s business continuity program helps ensure that we are prepared to absorb the impact of a business interruption and continue operations with as little disruption as possible.
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Our crisis management program, which we activate in emergency situations, is comprised of company-wide experts who tackle issues that may arise during a disaster.
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In a disaster, these experts focus on removing obstacles, and ensuring coordination and efficiency.
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BUSINESS CONTINUITY AT MCKESSON McKesson has a robust business continuity program designed to help the company continue to serve employees, communities, customers and their patients.
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McKesson takes an “all risk” (loss of people, technology, facility or supplier) approach to resilience, and prepares for both macro-level risks, such as a massive natural disaster or pandemic, and micro-level risks, such as localized severe weather.
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The Global Security Operations Center (GSOC) supports McKesson’s response to a major incident or crisis by collecting, analyzing and delivering data on global risks that may impact McKesson employees, facilities, operations or reputation.
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The GSOC assists the McKesson business continuity and crisis management teams during emergencies by filtering and fusing intelligence, providing situational awareness with persistent monitoring of facilities and events, reporting of geopolitical, weather and man-made events.
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In addition, the GSOC can disseminate mass emergency notifications which can facilitate communications between the crisis management teams, operations and employees.
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The GSOC also supports Global Security and Safety’s (GSS) mission to protect the employees, property, products, and reputation of McKesson Corporation — 365 days a year — through three primary programs: Electronic Security Systems Monitoring, Global Risk Awareness, and Supply Chain programs.
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These programs comprise the framework of the GSOC, which collects, analyzes, and delivers data to help mitigate global risks.
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The GSOC collects intelligence related to wildfires, hurricanes, monsoons; pandemics; localized events (e.g., demonstrations and riots); geopolitical events; maritime lane disruptions (e.g., the Suez Canal disruption in March shipping ports, terrorism events, air cargo incidents, and monitoring of suppliers and manufacturers.
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to establish communication with employees who may be affected by a disaster and work to share important information that can help protect them and their families during an emergency or crisis.
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