Walgreens Boots Alliance: Our Approach to Corporate Social Responsibility - AHC Group Corporate Affiliates Workshop January 2017
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Walgreens Boots Alliance:
Our Approach to
Corporate Social Responsibility
AHC Group Corporate Affiliates Workshop
January 2017
© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Forward-Looking Statements
Certain statements and projections of future results made in this presentation constitute
forward-looking statements that are based on current market, competitive and regulatory
expectations that involve risks and uncertainties which may cause actual results to vary
materially. Except to the extent required by the law, Walgreens Boots Alliance undertakes
no obligation to update publicly any forward-looking statement after this presentation,
whether as a result of new information, future events, changes in assumptions or
otherwise.
Please see Walgreens Boots Alliance ’s latest Annual Report on Form 10-K and subsequent
filings with the U.S. Securities and Exchange Commission for a discussion of risk factors as
they relate to forward-looking statements.
© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Contents
1. Company Overview
2. Vision, Purpose and Values
3. Our Corporate Social Responsibility Approach
4. Implementing Our CSR Strategy
5. Our CSR Goals
6. Contributing to the UN Sustainable Development Goals
7. CSR Initiatives
8. Conclusion
3
Company Overview
© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Three success stories coming together
The first global pharmacy-led,
health and wellbeing enterprise
Two iconic retail pharmacy brands and an international leading
pharmaceutical wholesaler
5
© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Our growing global presence
As of 31 August 2016
6
© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
About us
Over 400,000*
people employed
Presence in
more than largest retail
The
25* countries pharmacy, health and
daily living destination in the
Global leader in pharmacy-led, health USA and Europe
and wellbeing retail with over
13,200* stores in 11* countries A global leading pharmaceutical
wholesale and distribution network with
largest over 390* distribution centers
One of the world's
purchasers in more than 20 * countries
of prescription drugs and many other
health and wellbeing products
*As of 31 August 2016, including equity method investments, using publicly available information 7
for AmerisourceBergen
© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Our vision
Be the first choice for pharmacy, wellbeing and beauty – caring for people and
communities around the world
Our purpose
We help people across the world lead healthier and happier lives
Our values
Care Partnership Trust
Dedication Innovation
8
“… securing a better world for future
generations and delivering a CSR
program of which we can be truly
proud”
Ornella Barra, January 2016
© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Our Corporate Social Responsibility
Approach
© 2016 Walgreens Boots Alliance, Inc. All rights reserved.© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Four categories for our CSR activities…
This process has been utilised within the company for 15 years
COMMUNITY ENVIRONMENT
To be a To protect it for
responsible future
neighbour generations
MARKETPLACE WORKPLACE
To do business To treat our people
fairly and with dignity and
with integrity respect
11Implementing Our CSR Strategy
© 2016 Walgreens Boots Alliance, Inc. All rights reserved.© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
…Deeply embedded in our enterprise…
Key sequences of our CSR framework
UN Sustainable
Development Goals
• Objectives
Commercial • Ambitions
Stakeholder Dialogue
Divisions + Cross
Commitments Divisional Functions
(eg. Global Brands)
Stakeholder
Benchmarks
DJSI, CDP • Targets
Review &
Communication
Local
• Report
• Audit • Delivery
• Further • Measurements 13
improvementsOur CSR Goals
© 2016 Walgreens Boots Alliance, Inc. All rights reserved.© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Our community Goals
To be a responsible neighbour
1. To support the health, wellbeing and vitality of the
communities we serve
(e.g. Red Nose Day, BBC Children in Need)
2. To develop and mobilise our resources and partnerships in the fight
against cancer (e.g. American Cancer Society, MacMillan and EORTC)
3. To enable young people to achieve their potential wherever they
are in the world
(e.g. Get a Shot Give a Shot, Vitamin Angels, Free the Children)
15© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Our environmental Goals
To protect it for future generations
1. To reduce our energy consumption and emissions on a
comparable basis as defined by the Greenhouse Gas Protocol
(e.g. MayDay Committee for legacy Boots stores to reduce their carbon footprint
by 30% by 2020)
2. To reduce the waste we create, on a comparable basis, and contribute
to the drive for increasingly circular economies through increased re-use
and recycling (e.g. Consumer Goods Forum declaration to half recycling by 2025)
3. To develop plans to help achieve zero net deforestation,
collaboratively with other organizations, by 2020
(e.g. New York Declaration to achieve net zero deforestation by 2020)
16© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Our marketplace Goals
To do business fairly and with integrity
1. To create a global process that enables transparency of
ingredients and their traceability for the exclusive consumer
retail product brands that we sell
(e.g. the Green Tick Process)
2. To work collaboratively with a global network of key external
organisations engaging in issues that carry the greatest social relevance to
the markets and in the communities we serve
(e.g. the Stakeholder Panel and the concept of critical friends)
3. To continue to drive ethical sourcing practices – protecting human
rights across our supply chain
(e.g. the Modern Slavery Directive is applicable to all businesses)
17© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Our workplace Goals
To treat our people with dignity and respect
1. To proactively support the personal health and wellbeing
of our team members
(“if we can’t look after our people, how can we look after our customers?”)
2. To foster a culture where differences are recognised,
understood and valued, to bring benefit for our individual team
members, our businesses, our customers, our shareholders and the
communities in which we work and live
(“all employees should have the same opportunities”)
3. To continuously improve our robust approach to health and safety,
actively caring for our team members and customers
(“consistent application of our rules and regulations wherever we operate”)
18Contributing to the UN Sustainable
Development Goals
© 2016 Walgreens Boots Alliance, Inc. All rights reserved.© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Contributing to the UN Sustainable Development
Goals (SDGs)
On September 25th 2015, a set of goals to end poverty, protect the planet,
and ensure prosperity for all, was adopted by countries and companies around
the world as part of a new sustainable development agenda. Each SDG has
specific targets to be achieved over the next 15 years.
20© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Contributing to the UN Sustainable Development
Goals (SDGs)
Our Approach in five steps
EMBEDDING the INTEGRATING the COMMUNICATING
UNDERSTANDING MEASURING and
SDGs into our SDGs into our and engaging our
the SDGs Reporting progress
Goals activities people
UN SDGs
No Poverty Zero Hunger Good Health Quality Gender Clean water Decent work Industry, Reduced Sustainable Responsible Life below Life on land Peace, Partnerships
and Well- Education Equality and and Innovation inequalities cities and consumption water Justice and for the goals
Goals Being Sanitation economic and Communities and strong
growth insfrastructur Production institutions
e
Local
Communities
Community
Fighting cancer
Young people
Energy
Environment
consumption
Waste and
recycling
Deforestation
Traceability and
Trasparency
Marketplace
Network
Human rights
Heath and
Wellbeing
Workplace
Diversity and
inclusion
Health and safety
21CSR Initiatives
Delivering a series of successful CSR
initiatives
© 2016 Walgreens Boots Alliance, Inc. All rights reserved.© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Community
Get a Shot. Give a Shot.
• Together with the United Nations
Foundation's Shot@Life campaign,
Walgreens is helping to provide lifesaving
vaccines to children in need.
• Walgreens donated 15 million life-saving
vaccines through the
“Get a Shot. Give a Shot.” campaign over
our three-year relationship*.
• Drives preference for Walgreens: 12% of
customers stated their reason for
choosing Walgreens for their flu shot was
due to the donation
*since the program’s inception in 2013
23© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Community
Vitamin Angels
Walgreens and Vitamin Angels are combating malnutrition, the #1 cause of preventable
child deaths around the world.
Insights Action Results
Malnutrition is the #1 cause of One percent of all vitamin Vitamin Angels Campaign has already
preventable child deaths purchases are donated to provide provided over 84 million children
vitamins to mothers and children in with life-changing vitamins and
91% of Americans are willing to impoverished communities nutrients and has pledged to reach
switch similar brands if the other 100 million children with life
brand is associated with a good changing vitamins by 2017.
cause
Walgreens vitamin share has
82% would recommend a brand increased in both Drug and AOC
that supports a good cause
24© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Community
EORTC Cancer Research Fund - SPECTAcolor Project
Since October 2011, Walgreens Boots Alliance has been working in partnership
with the EORTC Cancer Research Fund to support the creation of the first pan-
European Biobank for colorectal cancer research and at fiscal 2015 helped
achieving the five years target of five million Euros.
• The project, called SPECTAcolor which stands for
‘Screening Patients for Efficient Clinical Trial Access’ is the
first ever prospective fully annotated tumor samples
Biobank and Biomarker analysis platform for genetic
profiling of patients suffering from advanced colorectal
cancer.
• This unique platform develops personalized treatments
based on the results of tissue sampling analysis and is
supported by a network of over 30 clinical centers in
11 countries. An estimated 600 to 1,000 patients with
advanced colorectal cancer are expected to enroll on a
yearly basis. By the end of fiscal 2015, more than
740 patients have enrolled since the official start of the
biobank on 20 September 2013.
25© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Community
Boots UK and Macmillan Cancer support
Working together to improve the lives of everyone fighting cancer.
The partnership aims to make a positive impact on the lives
of those affected by cancer by giving them what they need
at the right time. This means being able to significantly
increase the amount of cancer information and support
Boots can give to customers in accessible and trusted High
Street stores.
• 2016 second “UK most admired charity partnership” *
• More than 2000** Boots Macmillan Information
Pharmacists trained
• Over 600** Boots Macmillan Beauty Advisors trained
• National campaigns, in store materials, online, social
media and PR
• More than £12 million*** from fundraising across
customers, colleagues, suppliers and partners
* From 2016 C&E Corporate–NGO Partnerships Barometer report
** As at 14 September 2016
*** As at 31 August 2015
26© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Community
“WE” Movement
WE partners with communities to help lift young people out of poverty using a holistic,
sustainable five-pillar development model.
• WE is a worldwide development charity and youth empowerment movement founded in 1995.
• The organization focuses on young people, with programs in Canada, the U.S. and U.K. for service
learning and active citizenship, and international development projects in Asia, Africa and Latin
America focused on children and education.
• Walgreens partnership with WE began in 2015 as a sponsor of WE Schools and WE Day (Chicago).
Over the last 18 months Walgreens sponsorship has grown to include 5 WE Days – Minnesota,
Seattle, LA, Chicago and New York. Walgreens also continues to partner on WE Schools.
• Beyond WE Schools and WE Days, Walgreens has partnered with ME to WE on retail products.
Walgreens sells rafiki bracelets year round allowing our customer to make an impact with each
purchase. Beyond rafikis we have launched a Back to School line of products and are set to launch
a Holiday giftables line this holiday season.
• Boots UK is beginning to work with WE Schools (summer 2016)© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Community
Red Nose Day USA 2016 BBC Children In Need
• Walgreens contributed $20 BBC Children in Need - helping
million in donations primarily children smile all around the UK
from the sale of 13.6 million red
noses & flair • 13th year partnership for Boots
• Total of $33 million to help fight UK and BBC Children in Need
kids’ poverty. • £1.5 million* raised in 2016, and a
• Walgreens is officially the largest total of £10 million* over 13 years
corporate fundraiser in Comic • BBC Children in Need supports
Relief’s 30 year history of Red 2,400 projects*
Nose Day
* as of 18 November 2016© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Environment
Energy and Carbon Reduction
The Boots UK EnergyCare Program, formed in 2012, enable the future growth of Boots
through energy reduction and increasing the security of supply. Part of sharing best
practice, this program has now been rolled out across Walgreens. It considers the
principle drivers and influencers that necessitate an integrated strategy.
four main areas of influence Outdoor Pedal Powered Cinema
• With no backup power supply, an energetic
fleet of brave cyclists were required to
power the lights, projector and sound
system using LED lighting to illuminate the
whole event , colour spheres and portable
uplighters.© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Environment
Waste and Recycling – Distribution Centre of the Future
We have endeavoured to create the Distribution Center (DC) of the future
in California where there is nil waste to landfill.
• Walgreen’s Distribution Center in Moreno Valley, CA sent approximately 291 tons
of trash to landfill in FY 2015. In support of CSR initiatives, a cross-functional team
of internal team members and vendor partners was assembled to pursue a, “Zero
Waste to Landfill” pilot program in the Moreno Valley DC.
• The program pilot began in April 2016 and was completely rolled-out (all
functional areas facility-wide) by August 2016. The result (in August 2016) was
that only 4.17 tons of trash was sent to landfill…..a reduction of over 82% from the
FYI ‘15 average.
30© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Marketplace
Stakeholder dialogue
Walgreens Boots Alliance recognises how important is to listen to
our stakeholders and reassess our priorities where needed.
31© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Marketplace
A whole life approach to product sustainability
32© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Marketplace
Carbon Footprint Study of Shampoo
33© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Workplace
Developing Global Citizens Initiative
• Ten colleagues from across Walgreens
Boots Alliance’s Divisions, businesses
and functions around the world were
nominated to attend the first
Company-wide ‘Developing Global
Citizens’ two-day event in London.
• The program was the result of a cross-
functional collaboration between
Group HR and Global Corporate Social
Responsibility (CSR) teams, providing
the nominated individuals with the
opportunity to discuss critical CSR
topics, network, meet with senior
leaders and gain a broader
understanding of our Company.
34© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Workplace
REDI (Retail Employees with Disabilities Initiative)
Walgreens program for people with disabilities
• Success from the Distribution Center
program provided confidence to
expand into retail stores
• REDI provides on-the-job training for
people with disabilities in our stores
• Positions include retail and customer
service jobs, such as customer
service associate positions
• Work with external agencies to fund
and facilitate the training program
35© 2016 Walgreens Boots Alliance, Inc. All rights reserved.
Conclusion
4 Keys pillars of our CSR approach
1. Flexible framework that can be adapted to global, national and local
needs and requirements
2. Developed and shaped through a regular and constructive dialogue
with our key stakeholders (therefore is reflective of the views of our
people and of the communities we serve.)
3. Able to use our knowledge and skills to create activities that are
strategically relevant to our business
4. Data collection process managed by our Finance department in
collaboration with the CSR team to ensure accuracy and consistency
within the company
36“…committed to be a standout global
company in supporting people and
the planet”
Stefano Pessina, January 2016
© 2016 Walgreens Boots Alliance, Inc. All rights reserved.You can also read
