Cardinal Health Releases New ESG Report
Cardinal Health has published its Fiscal 2024 Environmental, Social, and Governance (ESG) Report, providing an overview of the company’s progress in key areas that support its business strategy and mission to improve lives every day. As CEO Jason Hollar stated, “We believe our ESG work helps drive our business success and is central to our mission of delivering products and solutions that improve lives every day.”
The report highlights significant progress during the fiscal year ending June 30, 2024, in areas such as environmental impact, equitable healthcare access, employee safety, supply chain due diligence, and workplace inclusivity. Below are the key highlights:
Reducing Environmental Impact
One of Cardinal Health’s major accomplishments this year was receiving approval from the Science Based Targets initiative (SBTi) for its near-term climate targets for Scopes 1, 2, and 3 greenhouse gas (GHG) emissions. These targets include:
- A 50% reduction in absolute Scopes 1 and 2 GHG emissions by fiscal 2030, based on a fiscal 2019 baseline.
- Ensuring that 75% of the company’s suppliers by spend, covering purchased goods, services, and upstream transportation, will have science-based targets by fiscal 2028.
Since fiscal 2019, Cardinal Health has reduced its Scopes 1 and 2 emissions by 17%, not only minimizing its environmental impact but also generating cost savings across its businesses. The company has also made strides in collaborating with its suppliers to help meet its ambitious climate targets, which are in line with evolving customer expectations.
Increasing Equitable Access to Healthcare
Cardinal Health’s commitment to improving healthcare access for underserved communities is demonstrated through its pilot of the Equity Rx program, which provides prescription medications to individuals who cannot afford them. In Ohio, the program partnered with free and charitable clinics to fill more than 22,000 prescriptions, representing $2.6 million in retail value. The success of this initiative has led to its expansion nationwide, furthering Cardinal Health’s goal of improving healthcare equity.
Improving Employee Safety
Employee safety is another critical priority for Cardinal Health, and the company has made notable improvements in this area. A safety improvement plan implemented across its distribution centers led to a 29% reduction in work-related injuries. This initiative not only enhances the safety of Cardinal Health’s employees but also supports the company’s commitment to maintaining an efficient supply chain while ensuring the well-being of its workforce.
Expanding Supply Chain Due Diligence
Cardinal Health expanded its supply chain due diligence efforts to cover all suppliers across the organization. This expansion allows the company to better understand its supplier base and identify potential risks. By collaborating with suppliers to mitigate these risks and comply with ever-evolving regulations, Cardinal Health is enhancing its ability to manage its supply chain responsibly and sustainably.
Building an Inclusive Work Culture
Fostering an inclusive work environment remains a key priority for Cardinal Health. The company continued its efforts to build a culture that attracts and retains top talent. It also expanded initiatives supporting the mental health of employees, providing innovative benefits and resources to help employees maintain their well-being. Cardinal Health’s commitment to inclusivity and employee support is vital to ensuring a positive and productive workplace culture.
Reporting Frameworks
Cardinal Health’s Fiscal 2024 ESG Report was prepared using three widely recognized reporting frameworks:
- Global Reporting Initiative (GRI) for comprehensive sustainability reporting.
- Sustainability Accounting Standards Board (SASB) for industry-specific disclosures.
- Task Force on Climate-related Financial Disclosures (TCFD) for climate-related risk disclosures.
These frameworks guide Cardinal Health in providing transparent and meaningful ESG disclosures to its stakeholders, aligning with global best practices in sustainability and responsible business management.
Conclusion
Cardinal Health’s Fiscal 2024 ESG Report reflects the company’s commitment to making a positive impact on the environment, society, and its workforce. By addressing critical issues such as climate change, healthcare equity, employee safety, and inclusivity, Cardinal Health continues to demonstrate how integrating ESG priorities into business strategy contributes to long-term success. As the company moves forward, it remains focused on delivering solutions that improve lives while driving meaningful progress in its ESG initiatives.
