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We used the Carbon Risk Real Estate Monitor (CRREM) emissions, based on floor area, where actual invoice data is not available.
Reducing emissions in our operations Our operational emissions stem from our use of fuel for our inbound and outbound distribution operations, and electricity and natural gas in our buildings.
We focus on efficiency across these areas as we aim to reduce our emissions.
Fleet emissions As an international business focused on distribution, transportation is important to us — in particular, improving fuel efficiency for our fleet.
For us, fuel consumption for transportation is an environmental challenge and opportunity.
To do that, we monitor mileage and fuel consumption, and we educate our drivers on eco-efficient driving.
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.
This tool enables us to continue to fulfill our customer service levels while reducing mileage, saving time, cutting down emissions, and minimizing unused vehicle capacity.
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.
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.
We also use lightweight materials for key components, and engine mapping technology to increase fuel efficiencies.
For example, we are upgrading tractors and in Canada we have introduced trucks with an Espar system that helps reduce fuel use.
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.
These bicycles enable us to reduce our fuel consumption related to deliveries.
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.
Impact Report opportunities to incorporate them into our fleet and realize emissions reductions.
We continue to explore additional opportunities to increase the electrification of our fleet and drive down fuel consumption.
Reducing our electricity use In our distribution centers, pharmacies and offices, we focus on reducing energy use and finding alternative sources of energy.
Our most significant use of energy is electricity in our buildings, whether they are offices, distribution centers or warehouses.
Across our locations, we work to use less energy for lighting and heating, ventilation and air conditioning (HVAC).
We anticipate these findings will result in energy savings and extended equipment lifetimes.
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.
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.
In addition to reducing our overall electricity emissions, we also work to increase the amount of renewable energy in our portfolio.
In FYrenewable energy for most of the company’s locations in Texas.
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).
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.
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.
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.
While business travel is traditionally a part of how we work, we also recognize its negative environmental impact.
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.
We report on these categories because it provides a more complete representation of our emissions impact.
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.
Waste in our operations We generate waste in our offices, warehouses, distribution centers and pharmacies.
In every McKesson location, we aim to reduce the amount of waste we produce.
Where we cannot reduce, we try to reuse materials and seek to avoid sending waste to landfill by donating, recycling or composting.
In addition, as part of our LEED certifications, McKesson aims to divert and construction waste from landfills.
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.
The year-over-year increase in reported hazardous waste is largely due to improved data quality.
Impact Report Hazardous waste Our Hazardous and Regulated Waste Management program establishes standards to identify and manage hazardous and regulated waste.
McKesson defines hazardous or regulated waste as any waste that exhibits an Environmental Protection Agency (EPA) or specific state hazard characteristic.
Through the program, we monitor that accumulation and disposal of waste from McKesson facilities complies with international, national and regional regulations.
When it comes to e-waste, we partner with certified suppliers for both leased and non-leased assets.
Waste in our supply chain We collaborate across our value chain to reduce the environmental impact of the products we sell or transport.
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.
Below are some examples of how we reduce our waste footprint through the reuse or donation of materials or supplies.
This initiative allows the distribution centers to reduce waste while supporting their local communities in our operations.
Water in our operations The bulk of our water use stems from landscape irrigation and water consumption in our buildings.
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.
This technology adjusts watering times based on weather conditions and lets us check our water use remotely.
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.
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.
The year-over-year increase in reported water usage is largely due to improved data quality.
When there is advance warning of a disaster, McKesson takes immediate preparatory measures, such as ordering extra fuel for generators and planning alternate delivery routes in case of highway and road closures.
Examples include insulin for diabetics, dialysis supplies, vaccines for first-responders, antibiotics for viral outbreaks and anti-venom for snakebites as snakes are prevalent following flood conditions.
In February snow and extreme cold to many parts of Texas and resulted in power outages for millions of residents.
The grants supported the collection and distribution of critical items such as food, water, cots and blankets to emergency management partners and residents staying in shelters and warming centers.
Our approach to corporate governance and responsible operations helps us drive long-term growth and create value in all areas, including social practices and environmental stewardship.
We believe that diversity helps to make our Board more effective and creates opportunities for robust dialogue and more effective decision making.
Demographics/diversity In FYand 27% were people of color.
The Board’s Governance Committee regularly reviews McKesson’s ESG practices, including environmental sustainability and matters concerning our commitment to delivering value to customers, employees, suppliers, shareholders, and local communities.
Board-level oversight The Board, the Governance Committee, and/or other committees periodically review the Company’s ESG strategy and practices, including environmental sustainability, pay equity, human capital management and diversity, equity and inclusion.
For example, the Sustainability and ESG team works in close partnership with our Real Estate team to evaluate and execute on renewable energy projects, and in tandem with our DEI and Social Impact teams to evaluate diversity and philanthropy strategies.
By fostering an open reporting environment where all employees have confidence that they can speak up without fear of retaliation, we seek to advance our culture of compliance and integrity.
Additionally, the suppliers of our internationally sourced private-label products must agree to the McKesson Supplier Sustainability Principles (MSSP), which cover compliance with applicable laws along with adherence to strict policies on protecting workers, preparing for emergencies, and protecting the environment.
Private-label suppliers outside the U.S. must agree to comply with the MSSP, which address compliance with applicable laws along with adherence to our principles on protecting workers, preparing for emergencies and protecting the environment.
We focus our remediation efforts on issues around labor and working conditions, health and safety, environmental, legal compliance, permits, business integrity, risk management and emergency response.
These projects place heavy emphasis on defect reduction, faster cycle time and reduced waste.
In Europe, we introduced the Green Six Sigma initiative to further anchor environmental and sustainable aspects as a permanent component of the Lean Six Sigma program.
In FYprojects reduced an estimated 37 tons of carbon emissions from our Scope 3 footprint.
Reducing product waste through enhanced inventory management: non-salable inventory items that cannot be sold, donated or returned to a supplier are sent for destruction.
In addition, medical waste has also been reduced, as the nurses can react directly to day-dependent findings of the patients and do not have to resort to pre-packaged medications.
Patient and employee safety is paramount at McKesson, and our Environmental, Health and Safety policy guides our commitment to provide a safe and healthy work environment.
Our Security and Safety team continually monitors our work environment to identify potential risks, so that we can prevent and mitigate them.
In FYwe completed nearly 100 onsite and virtual safety visits to provide support, coaching, and oversight for implementation of accident prevention and regulatory environmental health and safety programs.
Employees also receive specialized training related to their role, environment, and the equipment used in their work environment, for example proper use of personal protective equipment, safe lifting techniques and safe operation of powered industrial trucks.
In FYwe revised and refreshed nine training modules and updated all environmental regulatory training platforms to meet changed regulatory requirements and technology platform needs.
We engage directly with stakeholders who influence our business, social or environmental performance, or on the regulatory frameworks that govern our activities.
We also seek to collaborate with stakeholders who are significantly affected by our economic, social or environmental impact.
Water and effluents and its boundaries Addressing water use, pg.
103-2 The management approach and its components Addressing water use, pg.
103-3 Evaluation of the management approach Addressing water use, pg.
Fleet Fuel Management Payload fuel economy HC-DI-We utilize a combination of third-party transportation & logistics providers and a private fleet of delivery vehicles for product deliveries.
We do not have direct operational control over the third-party provider deliveries and do not have access to all third-party partners' fuel data for emissions reporting.
Climate action Take urgent action to combat climate change and its impacts.
Environment McKesson’s approach to climate change, pgs. Addressing waste, pgs. 44-46 Addressing water use, pg.
Measurement of Outcomes Workforce at a glance, pg. Culture, pgs. 19-23 McKesson’s approach to climate change, pgs. 39-43 Addressing waste, pgs. 44-46 Addressing water use, pg.
Water and Waste Management .......................................................... Frameworks and Standards ....................................................36 United Nations Sustainable Development Goals (SDGs) ...............
Our framework for governance is the foundation for how we manage the social and environmental opportunities and risks inherent in our business model.
our first Environmental, Social and Governance (ESG) Report.
Our Board of Directors and leadership team recognize the importance of solid governance, environmental stewardship and social responsibility.
As we mindfully grow our store footprint, we are developing our locations with eco-friendly standards in mind.
We also will further optimize our distribution and fleet operations to improve our operational efficiencies and reduce our impact on the environment.
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.
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.
We operate more than convenience stores throughout the Midwest, providing freshly prepared foods, quality fuel and friendly service at every location.
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.
Our Board of Directors (Board) and leadership team recognize the importance of strong governance, environmental stewardship and social responsibility.
We are pleased to publish our inaugural ESG Report that outlines our current environmental, social and governance initiatives, practices and objectives.
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.