Corporate Social Responsibility Report 2016 - Walgreens ...
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Walgreens Boots Alliance is the first global pharmacy-led, health and wellbeing enterprise. Our purpose is to help people across the world lead healthier and happier lives. Our 2016 Corporate Social Responsibility Report covers the fiscal year that ended 31 August 2016. In this year’s report: Overview Marketplace 28 Introduction.. .................................................. 1 Our CSR goals.............................................. 2 Our vision, purpose and values.. ............... 3 Our approach to CSR.................................. 4 Contributing to the United Nations Sustainable Development Goals.............. 6 Transparency. . .......................................... 30 Our impact.................................................... 8 Ethical Sourcing.. ..................................... 30 About our Company.................................. 10 External Stakeholders. . .......................... 31 Stakeholder engagement........................ 12 Workplace Community 32 14 Employee Health and Wellbeing......... 34 Equal Opportunities............................... 36 Health and Wellbeing. . ............................ 16 Health and Safety.................................... 37 Young People............................................ 17 Cancer Programs. . .................................... 20 About this report....................................... 38 Data management process.. ............... 38 Environment Data............................................................. 38 22 Community data.. .................................. 38 Environment data.. ................................ 39 Workplace data..................................... 39 Corporate governance.. ........................... 40 Our code of ethics................................ 40 GRI content index...................................... 41 Assurance report....................................... 42 Energy........................................................ 24 Waste. . ........................................................ 26 Legal notice and basis of preparation. . .. 43 Deforestation........................................... 27
Introduction overview Community Walgreens Boots Alliance was honored with the United Nations Foundation’s Global Leadership Award in 2016, recognizing our ongoing commitment to Corporate Social Responsibility. Environment Stefano Pessina (l), James Skinner (r) Driving socially responsible business growth around the world Marketplace Walgreens Boots Alliance is privileged to Colleagues in both our legacy companies Through proactive support of our care for people and communities around have long pursued local CSR initiatives colleagues’ personal health and wellbeing the world as we deliver our vision to be linked to the nature of our businesses. and by providing equal opportunities the first choice for pharmacy, wellbeing In our first full fiscal year as a combined for everyone, we are building a culture and beauty. global Company, we focused on the CSR of looking after our people. This means work that prioritizes our communities, that we are even more engaged to better Our commitment to Corporate Social environment, marketplace and workplace. serve our customers. Workplace Responsibility (CSR) is embedded in our Our global reach means we can drive drive to operate both a sustainable and We thank all of our employees for acting large-scale initiatives and replicate profitable enterprise. Advancing our locally to help people across the world successful programs around the world environmental, social and governance lead healthier and happier lives. while collaborating with key stakeholders. performance involves many aspects of our Company, builds trust in our We strive to be global leaders in James Skinner brands and lies at the core of our supporting people and the planet and Executive Chairman everyday work to support healthy living. to innovate in the face of the long- Walgreens Boots Alliance, Inc. term challenges for all businesses due to environmental change and global population growth. To set CSR targets Stefano Pessina for the future we have developed internal Executive Vice Chairman and procedures for gathering data and Chief Executive Officer reporting performance. For fiscal 2016 Walgreens Boots Alliance, Inc. we collected data across our enterprise on community contributions, carbon emissions, energy use, waste disposal, 16 February 2017 employee retention and employee gender. These externally assured metrics, published in this report, will serve as the baseline for evaluating our progress in these areas. Walgreens Boots Alliance Corporate Social Responsibility Report 2016 1
Our CSR goals Delivering a CSR program that makes us proud In the past year, I was often reminded In our first full fiscal year as a combined The United Nations Foundation of how much this Company inspires me. Company we strengthened our existing recognized our ongoing commitment I witnessed first-hand many examples activities by increasing the scale of our to CSR, honoring us in October 2016 of local initiatives from our businesses impact and sharing best practices. We with its Global Leadership Award. The around the globe that demonstrate how expanded successful local initiatives – for foundation cited our commitment to the CSR activities are truly embedded in example our U.S. stores raised $20 million U.N.’s recently published Sustainable our work. These initiatives take on even in fiscal 2016 for Red Nose Day, more Development Goals through the Get greater significance as part of our CSR than double the amount raised in the a Shot. Give a Shot. campaign, which strategy, through which we prioritize previous year. helped provide life-saving vaccines to our responsibility to the community, more than 15 million children worldwide As committed global citizens we choose environmental protection, doing business over the past three years. to aim high, and have set challenging fairly and treating our people with respect goals in 12 areas connected to our By remaining dedicated to causes, we and dignity. business activities, including helping have made a substantial impact in the I had the privilege of visiting our to fight cancer, reducing waste and area of cancer research. An example is the distribution center in Windsor, energy consumption, driving ethical partnership dating to 2011 with the EORTC Connecticut, USA, where specialized sourcing practices and promoting equal Cancer Research Fund to support the workstations address the needs of opportunities throughout the Company. first pan-European Biobank for colorectal employees with disabilities. I felt proud cancer. We continue to raise funds for We aspire to be a standout global CSR of Walgreens Boots Alliance’s long-term EORTC through numerous employee-led company; I am pleased to report that commitment to creating job opportunities events. By the end of fiscal 2016, 1,100 in fiscal 2016 we achieved important for people of all abilities. At an EnergyCare patients from 11 European countries had milestones such as providing life-changing event at our Nottingham support office enrolled in the biobank, a unique platform vitamins to nearly 100 million children and I learned more about how we encourage to develop personalized treatments. mothers in at-risk populations through our energy efficiency consciousness in our support of Vitamin Angels, harmonizing From my heart, I want to take this teams. I was touched by the passion our our ethical sourcing policies and piloting a opportunity to thank our employees, colleagues show for social, healthcare zero waste to landfill distribution center in suppliers and partners for showing they and environmental issues. the USA. care, by supporting and delivering a CSR program that makes us proud. Ornella Barra Co-Chief Operating Officer Walgreens Boots Alliance, Inc. Leader of Corporate Social Responsibility 16 February 2017 2 Walgreens Boots Alliance Corporate Social Responsibility Report 2016
Our vision, purpose and values overview Our vision Be the first choice for pharmacy, wellbeing and beauty – caring for people and communities around Community the world Our purpose Environment We help people across the world lead healthier and happier lives Marketplace Our values Walgreens Boots Alliance takes seriously its aim of inspiring a healthier and happier world, as reflected in Workplace our core values: Trust Respect, integrity and candor guide our actions to do the right thing Care Our people and customers inspire us to act with commitment and passion Innovation We cultivate an open and entrepreneurial mind-set in all that we do Partnership We work collaboratively with each other and our partners to win together Dedication We work with rigor, simplicity and agility to deliver exceptional results Walgreens Boots Alliance Corporate Social Responsibility Report 2016 3
Our approach to CSR Around the world, every day, millions of people rely on the medicines we distribute and dispense. They rely on our local pharmacists for information, support and advice. They rely on the convenience of our retail presence to support their daily living and on our beauty products to look their best. Our business values and the nature of our Another important step during fiscal day-to-day operations, which are rooted 2016 was aligning our target-setting in supporting communities and connected methodology with our business and to healthcare, inform and shape our CSR strategies. Through alignment approach to CSR. with the United Nations’ Sustainable Development Goals, conversations Since the Company was created through with our stakeholders, and stakeholder the combination of Walgreens and benchmarks, we’ve transitioned our Alliance Boots in December 2014, we have efforts into four key focus areas that will worked diligently to align our global CSR shape our CSR approach moving forward: strategy. As a global company inheriting the significant historical CSR contributions 1. Community – We strive to be a of our legacy companies, we are in a responsible neighbor in the communities position to make a profound impact. This we serve around the world report shows the progress we are making 2. Environment – We are determined to in combining our CSR practices. We are protect the environment and do our excited to evolve our CSR strategy into a part to ensure it flourishes for future more holistic approach, measuring and generations showing stakeholders our progress along 3. Marketplace – We aim to do business the way. fairly and with integrity 4. Workplace – We strive to treat our For the first time in fiscal 2016, Walgreens people with dignity and respect Boots Alliance collected data from all our businesses across the globe As we continue to integrate CSR into our on community contributions, carbon businesses, we are committed to setting emissions, waste disposal and employees measurable targets to hold ourselves by gender. Deloitte & Touche LLP accountable and to demonstrate our conducted a review of selected indicators annual progress. This is a process that within this report in accordance with will take time. It begins with the updated attestation standards established by the focus on key areas and with our global American Institute of Certified Public data collection for fiscal 2016, which you Accountants. Their assurance report can can read more about in the “About this be found on page 42 of this report. The report” section. data will serve as a baseline to show our future progress in these areas. 4 Walgreens Boots Alliance Corporate Social Responsibility Report 2016
overview Our businesses engage in initiatives Environment • Continue to drive ethical sourcing that are both relevant to their local practices – protecting human rights communities and markets and fall To protect the earth and its resources for across our supply chain future generations, we understand our within the central, Company-wide CSR potential positive impact and are taking • Work collaboratively with a global framework. We adjusted the framework network of key external organizations this year to define 12 CSR goals, three in actions to: Community engaging in issues that carry the each of our four focus areas. Each goal • Reduce our energy consumption and greatest social relevance to the markets is addressed in a section of this report emissions on a comparable basis* and in the communities we serve explaining our impact and progress in that as defined by the Greenhouse Gas specific area during fiscal 2016. The goals Protocol Workplace are as follows: • Reduce the waste we create, on a To treat our people with dignity and comparable basis*, and contribute to the Environment respect, we are taking action to: Community drive for increasingly circular economies We understand our responsibility to our through increased re-use and recycling • Proactively support the personal health neighbors and are taking actions to: • Develop plans to help achieve zero and wellbeing of our employees net deforestation by 2020, collaborating • To deliver our commitment to equal • Support the health, wellbeing and with other organizations in a global opportunities for everyone across our vitality of the communities we serve employment practices, policies and initiative • Enable young people to achieve their Marketplace procedures * Excludes the impact of acquisitions, disposals and potential wherever they are in the world any significant changes in existing operations • Continuously improve our robust • Develop and mobilize our resources approach to health and safety, and partnerships in the fight against actively caring for our employees and cancer Marketplace customers, throughout the Company To compete fairly and with integrity, we are taking action to: Workplace • Create a global process that enables transparency of ingredients and their traceability for the exclusive consumer retail product brands that we sell Employees at Boots Thailand celebrate an initiative where they raised money for the country’s National Cancer Institute. Walgreens Boots Alliance Corporate Social Responsibility Report 2016 5
Contributing to the United Nations Sustainable Development Goals Since United Nations member states 1. Understanding the SDGs: adopted an agenda in 2015 for sustainable We reviewed the scope of all 17 development including 17 aspirations goals and worked to understand the known as the Sustainable Development different targets that feed into each Goals (SDGs), Walgreens Boots Alliance of the goals. has worked to ensure that our overall CSR strategy, and the goals within this strategy, 2. Embedding the SDGs into work to achieve the SDGs. our goals: After a thorough understanding of Every Walgreens Boots Alliance CSR goal what each of the 17 SDGs entail, we has been mapped to one or multiple SDGs worked to align this understanding to make it easier to measure progress into our CSR goals. The SDGs and report our findings. Our approach to helped to not only streamline the aligning with the SDGs was broken down way we work toward our goals, but into five key steps: also to reinforce their motivation and direction. Goals Community Health and Wellbeing Young People Cancer Programs Environment Energy Waste Deforestation Marketplace Transparency Ethical Sourcing External Stakeholders Workplace Employee Wellbeing Equal Opportunities Health and Safety 6 Walgreens Boots Alliance Corporate Social Responsibility Report 2016
overview 3. Integrating the SDGs into 5. Measuring and reporting Given our global impact, we have our activities: progress: decided to take the approach of Community We are working with our individual Alignment to the SDGs is a journey addressing as many of the SDGs as we businesses to address specific targets and we are only at the beginning. can, in areas where we as a Company can that are relevant to the SDGs. We are dedicated to communicating be the most impactful. We recognize that our progress and connection to the the 17 SDGs are interconnected and, with 4. Communicating and SDGs in our annual CSR report. By multiple strands of activities throughout engaging our people: taking the first steps to align with our lines of business, we can make a Environment In order to continue the alignment significant and meaningful contribution international frameworks (such as the to the SDGs, we are educating and to end poverty, hunger and inequality, Global Reporting Initiative), we are engaging our employees about how take action on climate change and the excited to share our progress against they can have a positive impact and environment, improve access to health the SDGs on an annual basis. help the Company achieve its goals. and education, build strong institutions and partnerships, and more. Marketplace Workplace Walgreens Boots Alliance Corporate Social Responsibility Report 2016 7
Our impact Walgreens Boots Alliance 2016 CSR Highlights At Walgreens Boots Alliance we are proud that bolster vitamin distribution in of the impact our CSR initiatives have on developing nations and through our work people in our communities and around with diverse suppliers and employees in the world. From our support of vanguard the United States, the people pictured on Gladys is a child in Guatemala who received twice yearly vitamin cancer research in Europe, to donations these two pages are a testament to how A supplements and deworming we make a difference. tablets, and a daily multivitamin, during 2015 and 2016 at her preschool in San Antonio Palopó on the shore of Lake Atitlan. The vitamins, provided through the Walgreens-Vitamin Angels partnership, helped supplement her limited diet. Her mother, the sole earner for her household, makes most of her money from weaving. Vitamin Angels partners with non-governmental organizations to provide life- changing vitamins and minerals for pregnant women, new mothers and children under five. Vitamin A deficiency, which is moderate in Guatemala, can cause blindness. “Through partnering with companies that share our interests and goals for diversity, opportunity, and responsibility to society, we know that we will continue to move forward while helping others,” says Alison Gutterman, owner of Jelmar, a woman-owned firm that supplies cleaning products and rust removers to Walgreens. 8 Walgreens Boots Alliance Corporate Social Responsibility Report 2016
Jamie Graham, one of more overview than 900 employees at our U.S. distribution centers who identify as people with disabilities, has worked at the Walgreens Connecticut Distribution Center for eight years as a general warehouse worker. Jamie, Community shown here with Field Inclusion Manager Joe Wendover, says the job has transformed her life: “This job has allowed me to be more independent in what I do. The benefits are huge. I had no Environment benefits before I started. I had no life insurance. This job has helped me financially.” Marketplace Workplace “It is very rewarding to work on a project that gives cancer patients new and hopefully better treatment opportunities,” says Dr. Daniella Aust, a study coordinator for the European Organisation for the Research and Treatment of Cancer (EORTC) SPECTAcolor Biobank, which has been supported by numerous fundraisers held by employees at Walgreens Boots Alliance and its legacy businesses. “Platforms such as SPECTAcolor will be the only way to find novel treatment opportunities in the future.” Walgreens Boots Alliance Corporate Social Responsibility Report 2016 9
About our Company Our Company was created through the The three Divisions that make up our combination of Walgreens and Alliance Company are Retail Pharmacy USA, Boots in December 2014. This transaction Retail Pharmacy International and brought together two leading companies Pharmaceutical Wholesale. Additional with iconic brands, complementary information on these Divisions can be geographic footprints, shared values and found on our corporate website. a heritage of trusted healthcare services Additionally, Walgreens Boots Alliance through pharmaceutical wholesaling and has a portfolio of highly regarded community pharmacy care, dating back and long established product brands, more than 100 years. which we continue to grow on a global scale. Additional information about our product brands can also be found on our corporate website. Our principal executive offices are located in Deerfield, Illinois, USA. Owned businesses Equity method investments Branded products & franchises* *Countries where the Company’s products are available for purchase or there are Company franchises (other than those countries where there are owned businesses, equity method investments or joint ventures) 10 Walgreens Boots Alliance Corporate Social Responsibility Report 2016
400,000*people employed overview over 25* Community presence in more than countries largest retail pharmacy, health Environment the and daily living destination in the USA and Europe Marketplace Global leader in pharmacy-led, health and wellbeing retail with over 13,200* stores 11* countries Workplace in A global leading pharmaceutical wholesale and distribution network with over 390* distribution centers in more than 20* ➜ countries One of the world’s largest purchasers of prescription drugs and many other health and wellbeing products *As of 31 August 2016, including equity method investments, using publicly available information for AmerisourceBergen Walgreens Boots Alliance Corporate Social Responsibility Report 2016 11
Stakeholder engagement Engaging and collaborating with our Walgreens has also continued its productive relationship with Safer stakeholders allows us to address the most Chemicals, Healthy Families. In addition to participating in quarterly dialogue, material sustainable issues in our industry. Walgreens is working closely with this organization to understand issues This dialogue provides us with a broad • E mployees around ingredients used in the products and diverse understanding of our Performance management processes, it sells and produces, as well as to help stakeholders’ evolving priorities and employee engagement surveys and ensure alignment with best sustainability the issues that are of utmost concern to forums, union management forums and practices in our industry. them. Ultimately, this enables us to deliver work councils, consultations, training, We remained actively involved on the products and services that make positive one-on-one meetings, Company and boards of a number of organizations. impacts throughout our lines of business. business communications, annual During fiscal 2016 our Co-Chief Operating CSR report Our external sustainability advisory panel, Officer Alex Gourlay served as Vice • Local communities created in 2015 to identify sustainability Chairman of the National Association Local business forums, regular and ad topics that could be material to the brands of Chain Drug Stores (NACDS), while hoc meetings with local not-for-profit or products throughout their respective our President of Pharmacy and Retail groups, public consultations, employee life cycles, accomplished many things Operations Richard Ashworth served volunteering in fiscal 2016. In the past year the panel on the organization’s Retail Advisory • Suppliers has been instrumental in helping to Board. Co-Chief Operating Officer Ornella Supplier forums, one-on-one meetings, give us clear direction to a sustainability Barra was Chairman of the International policy statements, site visits, supplier assessment covering our product brands Federation of Pharmaceutical Wholesalers conferences, supplier audits such as No7, Botanics, Soap & Glory and (IFPW) during the fiscal year. Over the • Customers Liz Earle. To read more about this panel’s course of the year, accomplishments with (pharmacists, consumers, patients) assessment, please visit the Marketplace these organizations included working with Customer panels, focus groups, section of this report. NACDS to develop its CSR agenda, and customer satisfaction surveys, direct supporting the IFPW Foundation’s CSR Stakeholders – engagement feedback, conferences for pharmacists, agenda, such as its partnership with the channels pharmacist associations Gavi Vaccine Alliance, which works with • Academics • N on-governmental organizations industry and governments to increase Face-to-face meetings, research and Donations and sponsorships, joint access to immunizations in poor countries. sustainability projects, guest-speaker fundraising events, partnerships, in-kind slots, internships, logistical support, support and volunteering initiatives, annual CSR report face-to-face meetings, formal feedback, • Media critical friends Performance updates, media releases, • Stockholders and investors interviews with senior management, Regular dialogue, annual meeting annual CSR report • Government bodies and agencies Consultation responses at national In fiscal 2016, we made a number of and international levels, association strides in sustainability based on our membership, industry panels, public engagement with a range of stakeholders. affairs outreach, site visits For example: Non-governmental organizations: Walgreens worked with The Humane Society of the United States, an animal protection group, and with The Humane League, a farm animal advocacy nonprofit, to create a cage-free egg policy in fiscal 2016. 12 Walgreens Boots Alliance Corporate Social Responsibility Report 2016
overview Government bodies and agencies: Walgreens worked with state governments across the United States during fiscal 2016 on efforts to combat Community drug abuse and curb the misuse of medications by providing a year-round safe and convenient way to dispose of unwanted medications and to make the lifesaving opioid antidote naloxone available without requiring a prescription. Environment Safe disposal helps to combat drug In the USA, Walgreens, along with other abuse and misuse of medications. corporate sponsors, in collaboration with Resource Recycling Systems (RRS), and with participation from state and of the circular economy and using this to compared adherence rates for more than local chambers, city officials and other advocate successfully for policy reviews 300,000 patients, focusing on those filling civic stakeholders, supported the U.S. on the harmonization and simplification of new prescriptions for statin medications at Marketplace Chamber of Commerce Foundation waste and recycling collection services. Walgreens pharmacies in neighborhoods Corporate Citizenship Center’s Beyond with different racial makeup. Academic partnerships: 34: Recycling and Recovery for A New The U.S.-wide reach of Walgreens and Other engagements: Economy. Focused on breaking through its access to communities make it a key We continue to work closely with the current 34 percent recycling barrier collaborator in health studies. organizations and industry networks in the United States, the project is on a variety of issues. For example, designed to provide a scalable model for In July 2016 Walgreens announced it we participate in the Consumer Goods Workplace improving recycling and recovery rates will participate in an ambitious medical Forum in two key ways. First, our chief in order to help communities, cities and research program, the U.S. Precision executive, Stefano Pessina, serves on the businesses achieve their circular economy Medicine Initiative (PMI) Cohort Program. organization’s board of directors. Second, and sustainability goals. The project will Customers will be able to enroll in the a number of our people sit on various be conducted in a phased approach program through Walgreens stores, Consumer Goods Forum committees. In beginning in January 2017. clinics, website and mobile app. January 2016, the forum’s board approved Participants will share health history In the UK, the Circular Economy Task a Social Resolution on Forced Labor, and information about their lifestyle and Force is a government-endorsed, which states that members of the forum environmental exposures to contribute to business-led group convened by Green will strive to eradicate forced labor from a landmark research effort. The program Alliance; a charity and independent their value chains and will continue aims to engage at least one million policy think tank focused on ambitious not to tolerate forced labor within their participants in the USA to improve the leadership for the environment. We own operations. ability of preventing and treating disease are a founding member of the Task based on individual differences in lifestyle, In addition to the resolution, the Consumer Force through our legacy company environment and genetics. Goods Forum’s Social Sustainability Alliance Boots. A circular economy Committee, which Walgreens Boots emphasizes reuse and durability, Walgreens also announced in fiscal Alliance is part of, researched key drivers reducing waste and pollution, and 2016 the results of a study developed of forced labor in global supply chains renewable energy. in collaboration with the University and developed industry principles of Chicago that suggest pharmacy Over the past four years, the Circular to counter these drivers. The forum’s interventions and benefit plan designs Economy Task Force has made significant member companies are working together with low co-pays could be key factors in progress in driving policy and activity to fine-tune and assure the adoption of helping to improve adherence to statin around more efficient use of resources the principles. We intend to report our (cholesterol) medications for patients in the UK. Its focus has been on progress against these commitments in living in minority communities. The study, providing analysis on the opportunities future reports. published in the peer-reviewed Journal of Racial and Ethnic Health Disparities, Walgreens Boots Alliance Corporate Social Responsibility Report 2016 13
Community Walgreens Boots Alliance strives to be a responsible neighbor in the local communities we serve. Our efforts are centered around making communities healthier and happier. Our business of making medicines, general merchandise and services available to customers and patients embeds us in communities around the world, where we are a significant local employer. Our conveniently located stores put professional pharmacists at the heart of healthcare in the communities we serve and our online channels provide further options for our customers. To continue making meaningful impacts in our local communities, we have focused our efforts on three key areas through our Community Goals. Health and Wellbeing: To support the health, wellbeing and vitality of the communities we serve Young People: To enable young people to achieve their potential wherever they are in the world Cancer Programs: To develop and mobilize our resources and partnerships in the fight against cancer 14 Walgreens Boots Alliance Corporate Social Responsibility Report 2016
overview Community Environment Marketplace Workplace 13.6 noses sold million $20 million Raised Where the money goes: Money donated to the Red Nose Day Fund and proceeds from Red Nose Day merchandise help children in poverty. For every $1, we give 10 meals for those in need. For every $10, an essential immunization for one child. For every $30, clean water for one family. Walgreens Boots Alliance Corporate Social Responsibility Report 2016 15
Health and Wellbeing Red Nose Day and beyond “Red Nose Day is what helps us keep going, Examples of these programs include: • T hrough an 11-year partnership and if we didn’t have this program these kids with International Health Partners could be going down paths that wouldn’t (IHP), Europe’s largest coordinator of donated medicines, Walgreens help them succeed in life.” Boots Alliance, including its legacy businesses, has provided medical —Joseph Mclaughlin, director of the Sipayik Boys and Girls Club in Perry, Maine, supplies on an ongoing basis to aid a beneficiary of Red Nose Day funds. agencies and healthcare companies to support natural disaster relief and In 2016 Walgreens employees across the Several weeks before and after the refugee crises. Walgreens Boots USA embraced the spirit of Red Nose second annual U.S. Red Nose Day, on Alliance also provides medicines for Day for the second year in a row. To raise 26 May, Walgreens asked customers pre-packed kits of essential medicines money and awareness for the charity to purchase red noses and other red for UK healthcare professionals who campaign they did everything from items such as beads and bow ties, with travel overseas on short-term medical throwing red paint on store managers proceeds benefitting the Red Nose missions in the developing world. to sharing images of themselves on Day Fund. Walgreens also absorbed • T he First Ladies Health Initiative, social media. Through sales of 13.6 marketing costs for the campaign. The spearheaded by African-American million red noses and other activities activities culminated in a two-hour women church leaders and sponsored with customers, employees and supplier live broadcast on NBC with popular by Walgreens, provided no-cost partners, Walgreens hit its expanded comedians and Hollywood stars, echoing medical screenings and personal fundraising goal, raising $20 million, the original UK Red Nose Day in 1988. contacts in fiscal 2016 to help more than double the amount raised for In alignment with its grant methodology, detect or prevent illnesses which the inaugural event in 2015. The funds the Red Nose Day Fund distributed disproportionately impact African- went to providing nutritious meals, donations to programs including: Boys & American and Latino communities. essential medicine, clean water and other Girls Clubs of America, which provides The annual program at close to 150 vital aid and services to children in need safe places for children to learn and play churches in five U.S. cities is designed in the USA and internationally, making after school; Children’s Health Fund, to reach people in minority and low- Red Nose Day an anchor of Walgreens which brings essential medical services income communities who are at a Boots Alliance’s goal of supporting health to underserved children; Covenant higher risk for certain diseases but less and wellbeing. House, which provides shelter and likely to seek medical attention. services for homeless youth; hunger “The entire Walgreens organization relief organization Feeding America; and • In advance of U.S. National HIV Testing and its customers’ support have been Save the Children, which provides critical Day on 27 June 2016, Walgreens and absolutely vital to the success of Red early childhood programs. Greater Than AIDS, a leading national Nose Day,” said Janet Scardino, chief public information response to the executive officer of Comic Relief Inc., In addition to Red Nose Day, Walgreens domestic HIV/AIDS epidemic, teamed the charity behind Red Nose Day. Boots Alliance strives to support health up with health departments and local “While the numbers are impressive, the and wellbeing in local communities in AIDS service organizations (ASOs) to truly gratifying part of Red Nose Day many different ways. Our people and offer free HIV testing and counseling is knowing that the lives of so many businesses around the world participate about new prevention strategies, children will be transformed.” in volunteering activities, fundraising including Pre-Exposure Prophylaxis activities and awareness campaigns. (PrEP). Testing took place at Walgreens stores in 150 participating cities including Atlanta, Baltimore, Chicago, Dallas, New Orleans and Memphis. 16 Walgreens Boots Alliance Corporate Social Responsibility Report 2016
Young People: Making a difference overview Community Environment Marketplace Walgreens expanded its Get a Shot. Give a Shot. program in 2016, its third year of work with the United Nations Foundation to provide life-saving polio and measles vaccines to children in Workplace Walgreens has made a difference, one Walgreens added impact to the campaign need around the world. Donations vaccine at a time. Donations to the Get a in 2016 by generating social engagement to the program have helped through emotional videos, interactive provide more than 15 million Shot. Give a Shot. program have helped vaccines. Walgreens makes a provide more than 15 million life-saving social units, valuable flu shot health donation to the U.N. Foundation’s polio and measles vaccines to children content and prompting patients to share Shot@Life campaign every time a in need around the world. Walgreens their flu shot selfies with #giveashot. patient gets an immunization of expanded the campaign in fiscal 2016, The social channels drove 139 million any type. which marked the third year of the displays of the ad on Facebook, more than program, by making a donation to the 500,000 engagements (such as clicks, United Nations Foundation’s Shot@Life shares or likes) on Twitter, and 76,000 Boots UK customers and colleagues campaign every time a patient got an engagements on Pinterest. raised $1.4 million in November 2015 for immunization of any type, up to a total of “Vaccines protect and improve the lives of BBC Children in Need; a total of more than $2 million. The previous year, Walgreens millions of children in developing countries $14 million over 12 years of supporting donated $1 million and matched a each year,” said Kathy Calvin, president the charity. BBC Children in Need funds narrower range of vaccines. and chief executive officer of the U.N. a number of projects that work with We work with the U.N. Foundation and Foundation. “The prevention of measles children and young people facing a range other organizations to identify countries deaths has been the single largest of disadvantages or challenges in their and programs where we can make contributor to reducing childhood deaths lives such as poverty, deprivation, abuse, significant impact in community health and over the last decade and we are now neglect or any kind of disability. The Boots in preventing communicable diseases. so close to ending polio. By expanding relationship with BBC Children in Need For example, the Get a Shot. Give a Shot. our partnership with Walgreens, we can goes well beyond donations, building on campaign has provided critical support support U.N. efforts to help children the links our pharmacies and stores have for polio immunization programs in access these life-saving vaccines around with their local communities. Boots stores Tanzania and Afghanistan and measles the globe.” and employees get involved with BBC immunization in Chad and East Timor. Children in Need partners in their areas, Walgreens Boots Alliance Corporate Social Responsibility Report 2016 17
Her Royal Highness The Duchess of Cornwall (m), Patron of the National Literacy Trust, visited Boots Opticians in Peterborough volunteering to teach children about Walgreens also continued to work on a in the UK to find out more about dental health, helping to put on seasonal number of programs with WE Charity, an the Boots Opticians partnership events at youth centers, holding exercise international organization that partners with the National Literacy Trust. and leadership workshops and much more. with communities to help them lift The partnership, which aims to themselves out of poverty using a holistic, break the cycle of illiteracy, gave As of August 2016 the Company neared sustainable five-pillar development model. away 350,000 copies of children’s its goal set in May 2014 of helping to eye health book Zookeeper Zoe provide 100 million children and pregnant in fiscal 2016, to help detect women in at-risk populations in the USA undiagnosed eye conditions and in other countries around the world that affect an estimated 1 million with essential vitamins and minerals children in the UK. Low literacy to help combat malnutrition, through a is most prevalent in the poorest partnership with Vitamin Angels. communities and potentially correlated to vision problems. New initiatives around Vitamin Angels Boots Opticians employees in fiscal 2016 connected employees and also visit schools to encourage customers to some of the kids impacted reading, promote eye health by the program. Store employees and provide teachers with vision mailed greeting cards to Vitamin Angels screening tools. recipients and the children responded back to the stores with cards. Walgreens continued to partner with the U.S. Department of Health and Human Services on a flu shot voucher program, in its sixth year in fiscal 2016, to help our local communities. Through this program, Walgreens has provided more than $50 million in free vouchers to uninsured and underinsured residents in the USA and Puerto Rico. 18 Walgreens Boots Alliance Corporate Social Responsibility Report 2016
Walgreens sponsored four WE Days in Romania program. Teach for Romania Community data fiscal 2016 in Illinois, Minnesota, California recruits talented future leaders, trains We measured our businesses’ fiscal overview 2016 cash and non-cash donations and Washington. WE Day brings together them to become inspiring teachers and to local, national and international young people who participated in WE places them in high-need schools where charitable and community groups Schools, a program in which students they are given the support to make a that work in health, education, social develop action plans to improve their difference for students who are at risk welfare and other areas. These metrics do not include donations raised in community and the world. Walgreens also of dropping out of school. employee, customer and supplier sponsored curriculum through the WE fundraisers. See pages 38-39 of this Community are Love campaign, which encourages report for additional data. students to show appreciation for people How the Company contributes* who get overlooked at school and in cash their community. non-cash Walgreens customers can also contribute to healthcare, education, water or Environment Children in the rural Kenyan financial opportunity projects for people village of Kipsongol gather at a in developing communities through the well donated through funds raised 39% Walgreens/ME to WE platform, WE Impact during the fiscal 2015 Give H2OPE Lives. The programs are funded through to Others campaign. The program is purchases in Walgreens stores of WE 61% a collaboration between Walgreens, rafiki bracelets and selected, exclusive Unilever and ME to WE, a social Marketplace seasonal WE products. enterprise that is part of the We Charity, to provide access to clean One example of many fundraising water through select Unilever Areas impacted by the Company’s efforts at our businesses around the product purchases at Walgreens. contributions* world took place in Romania in fiscal The collaboration continued in health 2016. Farmexpert, our pharmaceutical fiscal 2016, raising funds to donate social welfare wholesale business in Romania, made more than 13.1 million gallons of other a donation to support three teachers clean water to another Kenyan education Workplace during one school year in the Teach for community. Wells help reduce the incidence of waterborne disease to 7% families and eliminates travel time 8% to collect water, allowing children more time in the classroom. 26% 59% The types of groups the Company contributes to* Local ORGANIZATIONS INternational ORGANIZATIONS National ORGANIZATIONS 25% 41% 34% *Within Deloitte & Touche LLP’s review scope as detailed on page 42 19
Cancer Programs Long-term partnerships are key From a Thailand talent show to solidarity In partnership with the EORTC, Alliance Between October 2011 and August breakfasts in Spain; from charity soccer Boots supported the creation of the first 2016, Walgreens Boots Alliance and its in the United Kingdom to a 5K/10K run pan-European Biobank for colorectal legacy businesses have raised nearly in Mexico, Walgreens Boots Alliance cancer. Three years later, during fiscal 5.2 million euros ($6.3 million) for employees around the globe together 2016, we reached an important milestone EORTC, surpassing the original goal with corporate sponsorships raised funds with 1,100 patients participating in the of 5 million euros. for cancer programs in fiscal 2016. EORTC SPECTAcolor biobank program. Since 2009, Boots UK’s partnership with These patients were recruited from Walgreens Boots Alliance takes a Macmillan Cancer Support has aimed to 28 hospitals and research institutions in comprehensive approach toward make a positive impact on the lives of 11 European countries. supporting cancer programs, including those affected by cancer by significantly advancing research, expanding SPECTAcolor, “Screening Patients for increasing the amount and accessibility prevention and assisting people and Efficient Clinical Trial Access,” is the first of cancer information and support families affected by cancer. Our legacy ever prospective fully annotated tumor Boots can provide to customers in its businesses have made a significant samples Biobank and Biomarker analysis trusted stores and online. Through the impact through long term commitments, platform for genetic profiling of patients partnership more than 2,200 Boots which Walgreens Boots Alliance has built suffering from advanced colorectal cancer. Macmillan Information Pharmacists on. Those include a partnership since This platform develops personalized have been trained to offer support to 2011 with the European Organisation for treatments based on the results of tissue cancer patients and their loved ones. the Research and Treatment of Cancer sampling analysis. An estimated 600 More than 800 Boots Macmillan Beauty (EORTC), a seven-year partnership with to 1,000 patients with advanced Advisors have also been trained to help UK-based charity Macmillan Cancer colorectal cancer are expected to enroll women, both in our stores and out in the Support and a multi-year history of on a yearly basis. communities where they live and work, collaboration with the U.S. Leukemia manage the visible side effects of and Lymphoma Society (LLS). cancer treatment. Farmacias Benavides in Mexico sponsored the Rosa Fuerte 5K/10K run to raise funds for Fundación Alma, which helps women with breast cancer. 20 Walgreens Boots Alliance Corporate Social Responsibility Report 2016
overview Employees of Alliance Healthcare España held a fundraising activity for the European Organisation for Research and Treatment of Cancer (EORTC). Community Environment Boots UK colleagues, customers, can provide better care for patients. At one important fundraiser, more than suppliers and partners raised $3 million Walgreens blood cancer patients will have 250 employees gathered in Nottingham for Macmillan Cancer Support in fiscal access to LLS’s Information Resource for soccer and netball tournaments. 2016, bringing the total to more than Center where they can access guidance • In Spain, employees organized activities $23 million since the partnership began. on treatments, supportive care, financial in 23 warehouses of Alliance Healthcare support and information about clinical Marketplace Boots Republic of Ireland has partnered España, raising funds for the EORTC. trials. Also, Walgreens will accelerate its for more than four years with the Irish support for LLS’s Light The Night Walk • In France, Alliance Healthcare Cancer Society and in fiscal 2016 raised fundraising campaign, which helps fund warehouse employees raised money more than $250,000 for the organization’s research to find cures and supports access for the EORTC through a run and a Night Nursing service, which provides to treatment for all blood cancer patients. disco party. free end-of-life care to cancer patients, allowing them to remain in their homes. “Since we launched our partnership • In Thailand, Boots employees Workplace Throughout the partnership, the total with Walgreens nearly a year ago, it is performed at an annual talent show amount raised by Boots Republic of already demonstrating a benefit for blood for dozens of their colleagues, raising Ireland has been more than $1 million, cancer patients, and there’s more to thousands of dollars for the country’s or just over 2,700 nights of nursing come. Walgreens and LLS together are National Cancer Institute (NCI). care. Boots Republic of Ireland has also addressing the critical unmet medical • F armacias Benavides in Mexico implemented a program, the “Boots Irish need represented by blood cancers, sponsored the Rosa Fuerte road race to Cancer Society Information Pharmacists,” through dedicated patient support benefit Fundación Alma, its third year of to raise cancer awareness and provide services and pharmacist education. collaboration with the foundation. More patients and local communities with We are confident that this shared value than 3,500 runners participated, raising access to information on cancer, as well as collaboration will set a high standard for funds to donate 20 reconstructive support and referrals. non-profit and industry collaborations as surgeries and 300 external prostheses we look to the future of cancer cures,” In the USA, under Walgreens Boots to uninsured or underinsured women says Louis J. DeGennaro, Ph.D., president Alliance’s comprehensive CSR strategy, with breast cancer. and chief executive of LLS. legacy fundraising traditions are taking In the USA, Walgreens was a key sponsor on a larger dimension. Walgreens is a To support the fight against cancer, for the Stupid Cancer Road Trip in longstanding supporter of The Leukemia Walgreens Boots Alliance employees fiscal 2016, a cross-country grassroots & Lymphoma Society (LLS) through around Europe held fundraising initiatives campaign raising awareness for cancer fundraising at individual stores. Our throughout the year. Other fundraisers, in young adults. Stupid Cancer helps partnership entered a new phase with a in Asia and Latin America, gathered young adults find support from peers corporate-level collaboration launched donations for cancer programs in those and reinforces messages about cancer in March 2016, under which LLS and regions. Fundraisers during the year screening, fertility preservation and side Walgreens will continue to help patients included: effect management. manage their disease. • In the UK, Alliance Healthcare employee LLS will train Walgreens pharmacists fundraising and company contributions on blood cancer information so they for the EORTC totaled nearly $200,000. Walgreens Boots Alliance Corporate Social Responsibility Report 2016 21
Environment At Walgreens Boots Alliance we have the ability to drive large-scale initiatives and positively impact our environment, which is why we aim to protect it and do our part to ensure it flourishes for future generations. We assessed where we can make the greatest impact in the realm of environmental efficiencies and identified three key goals. While our Company promotes safe drinking water initiatives through our community programs, we are not a high-use water industry, and therefore have chosen to focus on energy, waste and deforestation. This section outlines our environmental efforts in fiscal 2016 and the progress we are making through our three Environmental Goals. Energy: To reduce our energy consumption and Scope 1 and Scope 2 emissions on a comparable basis* as defined by the Greenhouse Gas Protocol (GHGP)** Waste: To reduce the waste we create, on a comparable basis*, and to contribute to the drive for increasingly circular economies through increased re-use and recycling Deforestation: To develop plans to help achieve zero net deforestation by 2020, collaborating with other organizations in a global initiative *Excludes the impact of acquisitions, disposals and any significant changes in existing operations **The GHGP, established by the World Resources Institute and the World Business Council on Sustainable Development (WBCSD), sets the global standard for how to measure, manage, and report greenhouse gas emissions; Scope 1 emissions arise directly from sources owned or controlled by the Company while Scope 2 emissions are those generated by purchased electricity, heat and steam consumed by the Company; Scope 3 refers to other indirect emissions 22 Walgreens Boots Alliance Corporate Social Responsibility Report 2016
overview Community Environment Marketplace Workplace Our Moreno Valley, California distribution center sent 4 metric tonnes of waste to landfill in August 2016, down from an average of 22 metric tonnes a month in fiscal 2015, through a zero waste to landfill pilot program. The program is a key initiative as Walgreens continues to define and implement a Company-wide best-in-class waste and recycling program in the United States. Walgreens Boots Alliance Corporate Social Responsibility Report 2016 23
Energy Boots UK accelerates progress toward Mayday target The Boots UK support office in Nottingham held an energy fair organized by our EnergyCare program in September 2015 to celebrate 100 years of energy generation at its efficient Combined Heat and Power Walgreens Boots Alliance is involved investing in technology to reduce energy Plant. The celebration included in multiple energy efficiency projects, consumption; and sourcing electricity an outdoor movie screening alternative energy management from low carbon generation sources. Our that was powered by children programs and interaction with utilities investments are particularly focused in the and adults pedaling bicycles. toward programmed demand-response retail stores, which account for the largest The plant generates the majority curtailment of the energy we use. Each portion of carbon emissions. of the energy for the support business is committed to reducing its office site. In the UK, Spain and elsewhere in Europe, energy intensity. Across our Company, our businesses moved forward with Walgreens Boots Alliance continues to programs to reduce energy consumption invest on a prioritized basis to reduce and our carbon footprint in fiscal 2016, our impacts. while sharing knowledge with our In the UK, our businesses work to business in the United States. We will work reduce energy use through three to implement comprehensive programs in main strands: engaging and educating Walgreens stores and buildings in fiscal colleagues around energy consumption; 2017 that expand on existing energy savings programs in the USA.
LED lighting replacements in Boots stores Walgreens Boots Alliance’s retail stores in the UK in fiscal 2016 accounted for in the USA and UK (Walgreens and Boots overview a consumption reduction of around 7.9 UK) made their first-ever joint submission million kilowatt hours, enough to power to the Carbon Disclosure Project (CDP) over 1,700 UK households for a year. As in fiscal 2016, and achieved a rating of of the end of fiscal 2016, approximately B. Submissions to the CDP in the climate 600 stores have been upgraded with the category are rated on completeness, lighting, equating to 24 percent of the assessment of environmental issues and Community Boots UK footprint. The lighting upgrade risks and the extent to which the Company program is accelerating progress toward has implemented actions, policies and the Boots UK Mayday target. strategies to address these. Compared to the market and to the individual This ambitious CO2 (carbon dioxide) Walgreens submission a year earlier, reduction target, agreed to following a which received a D rating, this represents 2007 challenge by His Royal Highness Environment substantial progress. The Prince of Wales, is to reduce CO2 emissions by 30 percent between 2005 Walgreens Boots Alliance also aims to and 2020, on a comparable basis. As of reduce carbon emissions from product the end of fiscal 2016, we were on track delivery in our Pharmaceutical Wholesale to reach this emissions reduction target at Division. In the UK in fiscal 2016, Alliance Boots stores that were open in 2005. Healthcare conducted a substantial trial Marketplace of new technology to help reduce carbon Through a variety of programs over the emissions in its fleet of more than 1,100 past few years, including the LED lighting vehicles. In the UK, Alliance Healthcare replacement program and an EnergyCare began contract negotiations during fiscal program that encourages an energy 2016 for installing Lightfoot technology in conscious culture among colleagues in the its vehicles, a system that alerts drivers UK, we have made significant progress. when they brake excessively, speed, We are also investing in improved food Workplace or idle their engines, all of which can refrigeration and building management help drivers lower fuel consumption and controls to reduce carbon while improving carbon emissions. the experience in our stores. Alliance Healthcare in the UK conducted a substantial trial of In the USA, through its partnership in the new technology in fiscal 2016 to Department of Energy’s Better Buildings help reduce carbon emissions in Challenge, Walgreens is committed to its fleet of over 1,100 vehicles. reducing energy use by 20 percent by 2020 across 100 million square feet of real estate, compared with consumption data from calendar 2010 that was reviewed by an external consultant (ICF) supporting the Better Buildings Challenge. Walgreens is supporting this commitment through improved heating, ventilation, air conditioning and refrigeration efficiency, conversions to LED lighting and using data to pinpoint areas for improvement. Walgreens Boots Alliance Corporate Social Responsibility Report 2016 25
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