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The inclusion of information or the absence of information in this report should not be construed to represent McKesson’s belief regarding the materiality or financial impact of that information.
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For a discussion of information that is material to McKesson, please see our filings with the SEC, including our Annual Reports on Form This report may contain links to other internet sites or references to third parties.
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Such links or references are not incorporated by reference to this report and we can provide no assurance as to their accuracy.
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The use or inclusion of the information is also not intended to represent endorsements of any products or services.
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MCKESSON and the MCKESSON logo are registered trademarks of McKesson Corporation in the U.S. and other countries.
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All other trademarks shown are the property of their respective owners.
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AND GOVERNANCE REPORT Casey’s strives to make life better for communities and guests every day.
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They are the heart of everything we do.
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Water and Waste Management .......................................................... Frameworks and Standards ....................................................36 United Nations Sustainable Development Goals (SDGs) ...............
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In this report, we provide an overview of our ESG approach along with some of our initiatives.
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We have accomplishments to share yet also recognize that we are just beginning to holistically view ESG from a strategic perspective.
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As we advance, we are addressing ESG risks and pursuing opportunities, focusing on long-term financial sustainability and increasing shareholder value.
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Our approach to sustainability is firmly anchored in our purpose — to make the lives of our guests and communities better every day.
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Our framework for governance is the foundation for how we manage the social and environmental opportunities and risks inherent in our business model.
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We have a highly qualified Board of Directors overseeing our business, leveraging their valued diverse backgrounds and experiences.
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Over the past several years, we have built a strong, capable and diverse leadership team to effectively lead and execute our business strategy.
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During this challenging year, our team members have shown that they truly are the core of what makes our organization strong.
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We are thankful for their dedication, hard work and respect for the health and safety of our guests and communities.
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We are investing in our talent throughout all levels of our business and advancing the ways in which we support their growth at Casey’s.
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We understand the responsibility that comes with our role at the heart of communities.
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We strive to continuously enhance our products and services, placing quality, health and safety at the forefront.
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We know that Casey’s plays an important part in keeping our communities strong and can make a positive impact on their fundamental needs, such as education and food access.
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our first Environmental, Social and Governance (ESG) Report.
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Our Board of Directors and leadership team recognize the importance of solid governance, environmental stewardship and social responsibility.
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We are proud of our over principles in how we serve our guests and communities every day.
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As we mindfully grow our store footprint, we are developing our locations with eco-friendly standards in mind.
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We also will further optimize our distribution and fleet operations to improve our operational efficiencies and reduce our impact on the environment.
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Our Board of Directors and leadership team are committed to effectively govern and manage the environmental and social risks and opportunities that arise from our core business strategy.
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Our commitment underscores the responsibility we have to our guests, shareholders and team members — to create long-term value for stakeholders by managing our operations in a responsible way, improve the communities we serve, provide a safe and enriching work environment, and drive sustainable business success.
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We look forward to continuing to share our progress with you along our journey.
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The first store opened in 1968 in Boone, Iowa.
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Founded more than 50 years ago, Casey’s has grown from the heart of one community to the next to become one of the largest convenience retailers and the fifth-largest pizza chain in the United States.
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We operate more than convenience stores throughout the Midwest, providing freshly prepared foods, quality fuel and friendly service at every location.
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Our guests can enjoy pizza, donuts, groceries, and a wide selection of beverages and snacks from a Casey’s visit.
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While we continuously aim to create innovative services and offerings, we will always stay true to our purpose — making life better for our communities and guests every day.
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CASEY’S MIDWEST FOOTPRINT Casey’s unique approach meets the needs of Midwestern towns with our quality products, courteous service, convenient locations and community support.
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Our strategy is anchored in three main pillars, supported by a strong cultural foundation of investing in our talent.
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EVOLVING OUR LONG-TERM STRATEGY Accelerate our new store builds and acquisitions, including market and store format expansion.
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Contemporize our food proposition, optimize and localize assortment, and deliver compelling experiences.
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Drive efficiencies to improve the shape of the business and fund future growth.
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Through flexible and rewarding work environments, we focus on making life better for the communities and guests we serve every day. Create a culture that drives performance and exceeds guests’ expectations.
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In Our Talent Casey’s is committed to environmentally and socially responsible practices that seek to promote sustainability throughout our business and to deliver on our purpose of making the lives of our guests and communities better every day.
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Our culture, principles and emphasis on long-term performance have guided our company since our humble beginnings over 50 years ago.
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for the future — indeed, Casey’s is Here For Good.
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Our Board of Directors (Board) and leadership team recognize the importance of strong governance, environmental stewardship and social responsibility.
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We have made some strides this past year but recognize that we are at the beginning of this journey and will continue our efforts this year and beyond.
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By building upon our mission through our guest-focused approach, agile operational framework and strong community engagement, we aim to drive long-term value creation for our guests, team members, communities and shareholders.
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We are pleased to publish our inaugural ESG Report that outlines our current environmental, social and governance initiatives, practices and objectives.
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We are committed to sound corporate governance and ethical practices, building long-term value for our shareholders and trust with all stakeholders.
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Our Team We strive to provide a work environment where our team members are treated with respect, dignity and integrity, fostering growth and development in their individual roles and as a team.
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We are passionate about providing an excellent, positive guest experience.
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As our business continues to grow and evolve, we strive to advance environmental practices that reduce the impact of our operations.
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Our ESG Report has been prepared in accordance with the accounting standards published by the Sustainability Accounting Standards Board (SASB), and we have also identified the United Nations Sustainable Development Goals (SDGs) that we believe best align with our business activities and key priority areas.
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Both are included in the “Frameworks and Standards” section at the end of this report.
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Our effective governance, core values and responsible business practices are fundamental to building trust with our stakeholders and sustaining our success.
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We hold ourselves to high ethical standards and operate all facets of our operations with integrity, respect and dependability as we deliver upon our daily mission to serve and support our guests, communities and each other.
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The NOMINATING AND CORPORATE GOVERNANCE COMMITTEE oversees and maintains a focus on ESG issues as they relate to Casey’s business and industry, and periodically reviews our progress on strategic ESG initiatives.
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The ESG WORKING GROUP comprises cross-functional leaders representing core functions, including technology, procurement, legal, distribution, human resources, operations and marketing.
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The group develops and drives the implementation of ESG initiatives to advance sustainability strategies across our business operations.
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The Board and the Senior Leadership Team of Casey’s believe that the foundation of our strong corporate governance promotes the long-term interests of our shareholders, strengthens accountability on behalf of our Board and leadership, and fosters sustainable company performance.
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We believe that adherence to our responsible business practices and effective execution of our strategic environmental and social stewardship collectively strengthen the long-term value creation for our shareholders.
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While the entire Board of Directors engages on ESG matters that impact our business strategy, the Nominating and Corporate Governance Committee exercises primary oversight of the management of ESG issues, as they relate to our business and industry.
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Our Chief Legal Officer and Secretary (CLO) leads the ESG Working Group and directs the execution of our enterprisewide ESG initiatives in close collaboration with other senior leaders.
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The cross-functional ESG Working Group is responsible for overall ESG program development and implementation.
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It provides periodic updates to our Board and Senior Leadership Team to ensure they are informed of initiatives and progress within key ESG areas.
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Our Responsible Business Practices — Board Independence and Diversity We are proud to have ten highly qualified and experienced directors on our Board, collectively bringing a broad range of executive leadership, consumer retail, restaurant and food service, digital marketing, operations, merger and acquisition (M&A), finance and accounting expertise, as well as broad gender, race, ethnicity and geographic diversity.
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While we do not have a formal policy for board diversity, our Nominating and Corporate Governance Committee considers diversity of skill, viewpoint, experience, background and other qualities in its overall selection.
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The Board takes an active role in board succession planning, is committed to refreshment, and works toward creating a balanced board with both fresh perspective and deep experience.
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At the support to increase the permissible range of the number of directors from 4-9 to 7-12, which better allows the Board to manage future director transitions and effective recruitment activity.
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To that end, on July current number of directors from nine to ten and appointed Gregory A. Trojan to the Board.
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The current average tenure of our ten directors is Chief Executive Officer (CEO), are independent.
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For more information about our Board, please see our latest proxy statement.
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Overall business continuity and risk management are core to Casey’s effective operational execution.
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The Board retains oversight of corporate risks including strategic, information security and regulatory compliance risks.
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In addition, the individual Board committees have oversight responsibilities focused on specific risk areas, as follows: Risk assessment and risk management are primary responsibilities of the CEO and the Senior Leadership Team.
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The Board meets regularly with the Senior Leadership Team to discuss strategy and risks facing Casey’s, and at least semiannually the Board receives an update provided by the Director of Enterprise Risk on risk identification, assessment, management and mitigation strategies.
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Our Enterprise Risk Management (ERM) annual risk assessment process provides for engagement with subject matter experts (SMEs), visibility into strategic initiatives, accountability for risk mitigation consistent with risk tolerance, and use of metrics to monitor and indicate level of risk.
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Over the past year, we have worked to enhance our ERM approach to more specifically focus our efforts on risks impacting our strategic objectives.
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In addition to the work of ERM, we maintain a continuous focus on risk mitigation and preparedness through other key business units as well, such as our Risk Management, Asset Protection, Public Relations, Legal and Information Technology teams who are responsible for coordinating critical incident response activities with key internal and external stakeholders (see “Data Privacy and Cybersecurity”).
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The mission of our combined teams is to continuously create a sustainable process that drives positive impact to the business with a focus on safety, security and asset protection.
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Together, these cross-functional business leaders have responsibility for the direction, management and execution of Casey’s ongoing risk mitigation and readiness practices.
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Disaster recovery and business continuity plans are provided to the Risk Management team by the business units and updated as needed.
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Casey’s was established on a foundation of integrity, respect and commitment to excellence.
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Our values dictate that we will be ethical and forthright in how we operate, regardless of the position held in the company.
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These values are the foundation of our character and unite us into a team dedicated to creating long-term value for our guests, shareholders, communities and each other.
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All directors and team members are expected to abide by our Code of Business Conduct and Ethics (Code), which helps drive our culture of honest and ethical conduct, compliance and accountability.
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The Code outlines the types of matters or violations that should be promptly reported and the various methods in which the information may be conveyed within the company such as to any supervisor, Casey’s Risk Manager, the Human Resources Department or through Casey’s Ethics and Compliance Hotline.
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Reports under the Code, including to the hotline, may be made anonymously; however, in all cases, retaliation for any allegation made is strictly prohibited.
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For any alleged violation deemed significant and outside of the internal review structure of other departments, our CLO is responsible for directing the review and deciding the results reported directly to the Audit Committee for consideration.
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All team members are required to complete compliance and ethics training as part of their onboarding and annually thereafter.
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Training is provided and tracked by our Learning and Development Department, and testing is changed every year to reflect prescient risks and topical concerns.
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Compliance training and reporting channels are routinely audited through internal fraud risk assessments and by our external audit team.
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We also require our store team members to meet alcohol certification requirements aligned with state regulations, including responsible server training specifically for agerestricted products like tobacco and alcohol.
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Our CEO, key officers and financial team members are also trained and expected to adhere to our Code of Ethics for the CEO and Senior Financial Officers (Financial Code), which they acknowledge annually.
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The Financial Code outlines the responsibility to ensure accurate and timely financial reporting and escalation requirements of violations to the attention of the CLO, the Audit Committee Chairperson or Disclosure Committee.
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We did not have any monetary losses in last two fiscal years from price fixing or manipulation.
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For more information, please see our Financial Code.
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We are focused on doing our part to further an environment that does not tolerate human trafficking, forced labor or underage employment, and we expect our business partners to behave similarly.
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In our efforts against human trafficking, we have partnered with two organizations to bring awareness to our store and transportation team members as to how to identify key characteristics of potential trafficking and how to report such incidences.
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Together with other convenience stores, we also partner with a nonprofit organization to raise awareness against human trafficking and provide a collective “neighborhood watch” and safe haven for victims.
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