Corporate Social Responsibility Report 2018 - Boots UK
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Corporate Social
Responsibility Report
2018
Walgreens Boots Alliance
Our 2018 Corporate Social Responsibility Report covers the fiscal year ended August 31, 2018.
We are the first global pharmacy-led, health and wellbeing
enterprise. Our purpose is to help people across the world lead
healthier and happier lives.
Overview 1 Community 24 Workplace 62
A Message from Our Executive Health and Wellbeing ........................... 26 Employee Health and Wellbeing ....... 64
Chairman and Our Chief Executive Our People Care: Giving back and
Cancer Programs .. ................................. 30
Officer ........................................................... 1 supporting communities in
Supporting Young People ................... 34 Nottingham and Chicagoland........... 66
A Message from Our CSR Committee
Our Impact: Supporting young people
Chairman .................................................... 2 Our People Care: Volunteer
with disabilities in the UK ................... 38
spotlight . . .............................................. 68
Our Vision, Purpose and Values .. ......... 3
Corporate Giving ................................... 39
Equal Opportunities.............................. 69
About Our Company ................................ 4
Shared Values: Disability inclusion
CSR Highlights .......................................... 5 at Chit Shing supplier in Asia . . ........... 73
Our Approach to CSR .............................. 6 Environment 40 Health and Safety................................... 74
Our CSR Materiality Assessment .. ...... 10 Energy ...................................................... 42
Case Study: Beauty and
Stakeholder Engagement .................... 15 About This Report .................................. 75
sustainability in Boots UK .................. 48
Focus Stories GRI Content Index . . ................................ 76
Waste . . ...................................................... 49
Our efforts to combat
opioid abuse ......................................... 19 Assurance Report . . ................................ 90
Hurricane Recovery: Our commitment Legal Notice ............................................ 92
to providing access and care during Marketplace 52
large-scale disasters ........................... 21
Our Approach to Responsible
Dementia awareness in the UK ........ 23 Sourcing .. ................................................. 54
Transparency and traceability .......... 56
Ethical sourcing . . ................................. 59
Supplier diversity ................................. 61
A Message from Our Executive Chairman
and Our Chief Executive Officer
GRI Disclosure 102-14
At Walgreens Boots Alliance we believe
we can be a force for good, leveraging
our many decades of experience and
our international scale to care for people
and the planet.
We are pleased to present our annual
Corporate Social Responsibility (CSR)
Report, communicating our progress James Skinner (l), Stefano Pessina (r).
on the issues where we have significant
impact and can contribute the most
businesses in The Consumer Goods operations, including an independent
benefit. These include access to
Forum (CGF) to work on phasing out the review of specified indicators. In some
affordable healthcare, helping to
refrigerants that do the most harm to the areas, such as diversity in management,
prevent opioid abuse, collaborating with
environment. we are presenting data for the first time,
industry partners to address packaging
and in other areas we are committed
concerns, combating climate change We believe that we can drive business
to putting processes in place to collect
and promoting diversity. results while benefiting society, and
information on our most material
for that reason we focus on initiatives
The CSR agenda has taken center CSR topics.
that contribute to our profit, generate
stage in the boardrooms of the world,
enthusiasm among employees and It is humbling for us to see the many ways
changing the way companies think and
customers, and positively contribute to that Walgreens Boots Alliance employees
motivating them to take a long-term
society. We build customer loyalty and share our commitment to our CSR goals
view on business. CSR has certainly
energize employees through initiatives — in everything from raising funds for our
become a larger part of our day-to-day
and partnerships such as Red Nose Day, cancer charity partners to innovating to
lives as Executive Chairman and Chief
Macmillan Cancer Support, ME to WE, reduce waste and energy use — and for
Executive Officer. These days we find
Vitamin Angels and Get a Shot. Give a that we thank them. We also thank our
there is a CSR element to most projects
Shot., while also helping children in need generous customers for supporting the
that cross our desks. When people
and supporting healthcare services. causes we champion that help to reduce
think about developing and delivering
poverty and bring vital healthcare to
products, providing new services, caring Walgreens Boots Alliance carried out
children around the world.
for customers, entering a business an externally facilitated CSR materiality
partnership or being an employer of assessment during fiscal 2018, engaging
James Skinner
choice, they are often thinking about with numerous stakeholders to determine
Executive Chairman
sustainability and responsibility. the CSR topics where we have the most
Walgreens Boots Alliance, Inc.
impact. This assessment guided us on
The important issues of our day will be
the disclosures contained in this report
solved only through collaboration. This Stefano Pessina
and will also steer us in the future as
report describes the many ways we are Executive Vice Chairman and
our CSR strategy evolves to address
engaging with stakeholders to work Chief Executive Officer
emerging issues.
together on solutions. For example, Walgreens Boots Alliance, Inc.
we partner with other companies and We are proud to present a third year of
government agencies to combat opioid environmental, workplace and corporate January 16, 2019
abuse and we are teaming up with other giving data across our ongoing
Walgreens Boots Alliance Corporate Social Responsibility Report 2018 1
A Message from Our CSR
Committee Chairman
GRI Disclosure 102-14
“Pharmacy is in a unique position to improve community
health and wellbeing. We have a special mission;
it’s our opportunity to change the world for the better.”
Our Company broadened and deepened Healthcare, including accessibility and research to all types of cancer. Having
our CSR work during fiscal 2018. We affordability, is at the heart of our CSR supported EORTC through fundraising in
built on long-standing partnerships to strategy, and this long-standing focus Europe — especially through the efforts
deliver vital healthcare services around was confirmed by our CSR materiality of our Alliance Healthcare employees —
the world, extended our commitment assessment. As a global healthcare we are proud to be helping the EORTC
to issues such as access to healthcare company, it is our duty to deliver tangible extend its model to other regions through
and invested in programs to reduce our health and wellbeing benefits through collaboration.
environmental impact. Now, more than all that we do. Pharmacy is in a unique
Our stakeholders have told us that they
ever, our customers and our stakeholders position to improve community health and
care about ingredients and transparency
expect us to make a positive contribution wellbeing. We have a special mission; it’s
in the products we sell and we have made
to communities and the planet. our opportunity to change the world for
steps in this area, publishing a Chemical
the better.
Our CSR initiatives have become integral Policy Statement, which is summarized in
to our employees and customers as they Our commitment to long-term partnerships this report.
pour their hearts into our brand causes, continued to bear fruit this year. Donations
I was so moved when I visited stores
such as BBC Children in Need in the UK from Walgreens over our four-year
affected by the hurricanes in Puerto
and Red Nose Day in the U.S. Our CSR partnership with Vitamin Angels have
Rico and Florida. Our customers and
agenda makes everyone at Walgreens helped provide life-changing vitamins
employees responded to these disasters
Boots Alliance come together as a team and minerals to more than 160 million
with extraordinary generosity, making
and develop a common culture, enriching children and women in at-risk populations.
donations to the Walgreen Benefit Fund,
us personally and professionally, as Since the start of the partnership with
local charities and the American Red Cross.
we fulfill our Company purpose to help United Nations Foundation in 2013,
They demonstrated our CSR values, doing
people across the world lead happier and Walgreens donations for Get a Shot. Give
everything they could to re-open stores
healthier lives. a Shot. have helped provide more than
as quickly as possible to provide tangible
34 million vaccines to communities in
The publication of our 2018 CSR Report support in their communities.
the developing world. Over eight years
coincides with the 170th anniversary
of supporting Baan Gerda, a program I believe that our employees’ strong
of the opening of the first Boots store.
for HIV infected and affected children, sense of belonging runs throughout our
Boots UK has pioneered CSR work
Boots Thailand employees have raised businesses around the world and shows
in many areas and has reported on
more than 15 million Baht ($460,000) for how rooted we are in our communities.
sustainability for more than 40 years.
the organization and dedicated many
That example now extends throughout
volunteer hours. Ornella Barra
Walgreens Boots Alliance. I am proud
Co-Chief Operating Officer
of Boots UK’s expanding efforts to raise I would like to congratulate the European
awareness about dementia and its Organisation for Research and Treatment Walgreens Boots Alliance, Inc.
decades of community engagement in of Cancer (EORTC), a CSR partner of ours Chairman of the Corporate Social
the Nottingham area, among many other for more than seven years, for expanding Responsibility Committee
initiatives. their infrastructure for clinical cancer
January 16, 2019
2 Walgreens Boots Alliance Corporate Social Responsibility Report 2018
Our Vision, Purpose and Values
OVERVIEW
GRI Disclosure 102-16
Our vision
COMMUNITY
Be the first choice for pharmacy, wellbeing and
beauty—caring for people and communities around the world
Our purpose
ENVIRONMENT
We help people across the world lead healthier and happier lives
Our values
Walgreens Boots Alliance takes seriously its aim of inspiring
MARKETPLACE
a healthier and happier world, as reflected in 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
WORKPLACE
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 2018 3
About Our Company
GRI Disclosures 102-3, 102-4, 102-9, 103-2, 103-3, 201-1
Walgreens Boots Alliance is the first global, pharmacy-led health and wellbeing
enterprise, with sales of $131.5 billion in the fiscal year ended August 31, 2018.
The three Divisions that make up our
WE*:
Company are Retail Pharmacy USA,
Retail Pharmacy International and
EMPLOY MORE THAN 415,000 PEOPLE
25
Pharmaceutical Wholesale.
Additionally, Walgreens Boots Alliance
has a portfolio of highly regarded and
ARE PRESENT IN MORE THAN COUNTRIES
long-established product brands,
which we continue to grow on a global
scale. More information about our LARGEST RETAIL PHARMACY, HEALTH
ARE THE
Divisions and our owned brands can
be found on our corporate website. AND DAILY LIVING DESTINATION ACROSS THE
Walgreens Boots Alliance has U.S. AND EUROPE
a complex international supply
chain involving relationships with ARE A GLOBAL LEADER IN PHARMACY-LED, HEALTH AND
numerous suppliers in areas such as
pharmaceuticals, consumer products,
owned brands, business services,
WELLBEING RETAIL WITH MORE THAN 18,500
supply chain services, goods for our
operations and more.
STORES IN 11 COUNTRIES
Our principal executive offices are
RUN A GLOBAL PHARMACEUTICAL WHOLESALE AND DISTRIBUTION
located in Deerfield, Illinois, USA.
NETWORK WITH
MORE THAN 390
DISTRIBUTION CENTERS
➜ IN MORE THAN
20 COUNTRIES
ARE ONE OF THE WORLD’S LARGEST PURCHASERS
OF PRESCRIPTION DRUGS AND MANY OTHER
HEALTH AND WELLBEING PRODUCTS
*All figures are as of August 31, 2018, including equity method investments, using publicly available information for AmerisourceBergen.
4 Walgreens Boots Alliance Corporate Social Responsibility Report 2018
CSR Highlights*
MORE THAN 1,000 SAFE MEDICATION DISPOSAL
KIOSKS IN WALGREENS STORES — MORE THAN 410 TONS
(372 METRIC TONNES) OF MEDICATION COLLECTED AND
SAFELY DISPOSED OF
RED NOSES:
40M SOLD,
$71M RAISED
GET A SHOT. GIVE A SHOT. MORE THAN 34M LIFESAVING
VACCINES FOR CHILDREN AROUND THE WORLD
BBC CHILDREN IN NEED: £11.5M ($18.6M) RAISED
WALGREENS BOOTS ALLIANCE ENERGY USE:
4%
15.3%
EMISSIONS:
FISCAL 2018 VS. FISCAL 2016
HOW2RECYCLE LABEL ON MORE THAN
600
WALGREENS OWNED BRAND PRODUCTS
75% CERTIFIED SUPPLY CHAIN SUSTAINABLE
PALM OIL USE IN CALENDAR 2017, IN BOOTS UK OWNED BRANDS
*Figures as of August 31, 2018 unless otherwise stated.
Walgreens Boots Alliance Corporate Social Responsibility Report 2018 5
Our Approach to CSR
GRI Disclosures 101, 102-15, 102-17, 102-18, 102-20, 102-22, 102-23, 102-24, 102-26,
102-29, 102-30, 102-31, 102-32, 102-46, 102-54, 103-1, 103-2, 103-3, 416-1, 417-1, 418-1
Walgreens Boots Alliance touches millions of lives Community
around the world every day, through the medicines we We strive to be a responsible neighbor
in the communities we serve around
dispense and distribute, our convenient retail stores and the world. We are taking actions to:
our health and beauty products. We deliver healthcare
• Support the health, wellbeing and
and support communities through both our day-to-day vitality of the communities we serve
operations and our business values, and those essential • Enable young people to achieve
their potential wherever they are in
roles shape our approach to CSR.
the world
• Develop and mobilize our resources
Given our scale and our position at the Sustainable Development Goals and partnerships in the fight against
intersection of healthcare, retail and (SDGs), which we are committed to cancer
beauty, we believe that we can make supporting.
a profound and positive impact on the
world.
Walgreens Boots Alliance anticipates Environment
that the outcomes from the materiality
We are determined to protect the
During fiscal 2018 Walgreens Boots assessment will guide an evolution in
environment and do our part to ensure
Alliance conducted a thorough CSR our CSR strategy in the coming years,
it flourishes for future generations.
materiality assessment to identify along with a revision of our CSR goals
We understand our potential positive
the CSR material topics we should and the development of disclosures
impact and are taking actions to:
measure and against which we should and performance indicators to map
report our impact. The CSR materiality our progress on material CSR topics • Reduce our energy consumption and
assessment process and outcomes are that emerged. It will ultimately help emissions on a comparable basis*
explained on pages 10-14 of this report. drive us to focus on those issues and as defined by the Greenhouse Gas
opportunities where we can make the Protocol
This exercise showed that many of the
greatest positive impact.
highest priority issues for stakeholders, • educe the waste we create, on a
R
and areas where we have the greatest For this report we continue to report comparable basis*, and contribute
impact, are healthcare related: access progress on our 12 existing CSR goals, to the drive for increasingly circular
to affordable and quality healthcare, grouped into four areas — Community, economies through increased re-use
consumer health education and Environment, Marketplace and and recycling
prescription drug abuse. This outcome Workplace — as follows: • Develop plans to help achieve zero
supports our ongoing, healthcare- net deforestation by 2020,
centered CSR strategy, which was collaborating with other organizations
developed to reflect the nature of our in a global initiative
business and our stated purpose to * Excludes the impact of acquisitions, disposals
help people across the world lead and any significant changes in existing
healthier and happier lives. It should operations.
also be noted that our CSR activities
and targets across the Company
are aligned with the United Nations
6 Walgreens Boots Alliance Corporate Social Responsibility Report 2018
Boosting shared value Our Approach to CSR, Our CSR
Our aim is to lead by example and to Materiality Assessment and About This
maximize the impact of our initiatives, Report sections (respectively).
OVERVIEW
especially in the area of health and
This report underwent the new GRI
wellbeing. To boost shared value, our
Disclosure Review service, designed
businesses support campaigns that
to help organizations improve the
differentiate their commercial offers,
content of their reports by reviewing
generate customer loyalty, energize
specific disclosures and determining
employees and help to improve the health
Marketplace whether the organization has responded
and wellbeing of millions of children. This
COMMUNITY
to the information requests from the
We aim to do business fairly and with means our CSR work is good for business,
requirements outlined in the GRI
integrity and are taking actions to: people and the community.
Standards. More information pertaining
• Create a global process that enables Through these initiatives — such as Red to the review can be found in the GRI
transparency of ingredients and Nose Day and ME to WE in the U.S., and Content Index on page 76.
their traceability for the exclusive our support of BBC Children in Need in
Boundaries for information within this
ENVIRONMENT
consumer retail product brands the UK — customers and employees are
report are evaluated based on the
that we sell empowered to give back and have an
location and level of impact Walgreens
• Continue to drive ethical sourcing impact on child poverty and health.
Boots Alliance has on the topic, as
practices across our supply chain, defined by GRI. Details on the boundary
GRI Standards
protecting human rights, supporting for each topic can be found in section
This report has been prepared in
diverse suppliers and engaging with introductions.
accordance with the GRI Standards: Core
suppliers around environmental
MARKETPLACE
option. GRI is the world’s most widely
issues The United Nations
used set of sustainability reporting
• Work collaboratively with a global standards and we engaged with GRI as we
Sustainable Development
network of key external organizations developed this report. We believe the CSR Goals (UN SDGs)
engaging in issues that carry the materiality assessment described in this Walgreens Boots Alliance is committed
greatest social relevance to the report on pages 10-14, together with the to contributing to the implementation of
markets and in the communities disclosures that correspond to the material the SDGs and we have mapped our CSR
we serve disclosures in our table of material topics
WORKPLACE
topics that were identified through
the assessment, provide enhanced and elsewhere in this report.
transparency and credibility and will give
Workplace During fiscal 2018 we evaluated our
our stakeholders greater confidence in our performance on the SDGs through
We strive to treat our people with CSR work. In addition, Walgreens Boots participation in the SDG Evaluation
dignity and respect and are taking Alliance plans to make a climate change Tool, an assessment by Trucost, part of
actions to: submission to CDP (formerly the Carbon S&P Global. Walgreens Boots Alliance
Disclosure Project) for fiscal 2018, as it did
• Proactively support the personal joined a group of more than a dozen
the two previous years. companies in the inaugural application of
health and wellbeing of our
employees The GRI Content Index at the back of this the tool, designed to enable companies
and investors to align their sustainability
• Deliver our commitment to equal report reflects the CSR material topics
identified in the materiality assessment strategies with the SDGs.
opportunities for everyone across
our employment practices, policies — addressing the issues through which The Trucost evaluation, published
and procedures the Company has the most impact on the after the end of fiscal 2018, provided
environment, on society and communities
• Continuously improve our robust and on the economy.
a scorecard of Walgreens Boots
approach to health and safety, Alliance’s overall SDG performance as
actively caring for our employees and This report aligns with the GRI reporting well as individual scores for each goal,
customers, throughout the Company principles of stakeholder inclusiveness, including positive contributions toward
sustainability context, materiality and the SDGs and areas of risk. Through our
completeness. Information related to how participation in the evaluation we gained
the Company applies these principles can insight that will help us to prioritize our
be found in the Stakeholder Engagement, focus on the SDGs where we have the
greatest impact.
Walgreens Boots Alliance Corporate Social Responsibility Report 2018 7
Targets program (including the selection and
We are committed to setting measurable approval of our CSR goals and the
targets to hold ourselves accountable. oversight of our CSR policy statements)
and our progress towards achieving
Our individual businesses are located those goals. The Committee also
in different countries around the world formally approves our annual CSR
with different infrastructure and market report.
realities. Each business has a designated
CSR champion who coordinates the At the Board level, the Nominating
setting of CSR targets relevant to and Governance Committee reviews,
its local communities and context. at least annually, our policies and
Targets are agreed with each business’ activities regarding sustainability and
Walgreens Boots Alliance is committed
leadership team. The Walgreens Boots CSR and assesses our management
to the distribution of medicines in a safe
Alliance CSR Committee confirms, of risks in those areas. The members
environment.
on an annual basis, the overarching of the Nominating and Governance
Walgreens Boots Alliance CSR strategy Committee are all independent
and goals and reviews divisional updates directors. improvement in pharmacy dispensing
throughout the year. Our Corporate Social Responsibility are identified as material risks for
Policy Statements are available on the Company. Climate change risk
Corporate governance and and plastics reduction are among
our website under the “Governance
risk management guidelines & policies” heading. These sustainability issues included on the
Walgreens Boots Alliance believes Company’s risk watch list.
statements shape our approach to
that strong corporate governance
our sustainability and CSR activities
is an essential element to achieving Code of Conduct and
and help ensure that our Divisions
our overall objectives and acting as a
and businesses are working within
Business Ethics
responsible organization. The Walgreens Boots Alliance Code of
comparable parameters.
Conduct and Business Ethics supports
The Board of Directors of Walgreens
Walgreens Boots Alliance maintains a good governance of our behaviors and
Boots Alliance is committed to sound
risk register that summarizes material approach to CSR. It sets out the ethics
corporate governance and sets high
Company risks and related mitigation, and principles that are to be upheld by
standards for employees, officers and
based on an analysis of financial, each Division, business and corporate
directors. Our governance structure
reputational, operational and regulatory function within Walgreens Boots Alliance.
helps enable the Board to fulfill its
impact. For material risks that are
fiduciary duties to our stockholders and The Code extends to all our officers
identified, the Company develops
helps ensure the long-term success and employees no matter where they
mitigation plans with clear allocation
of the Company. The Board exercises are located in the world. It also extends
of responsibilities and timescales for
oversight of the Company’s strategic, to other parties acting on behalf of
completion and works to ensure that
operational and financial matters, Walgreens Boots Alliance or any of its
progress toward implementing these
including the elements and dimensions subsidiaries, such as consultants, agents,
plans is monitored and reported. More
of major risks facing the Company. intermediaries or other representatives
information on the risk management
of Walgreens Boots Alliance, including
Having appropriate oversight and process and the material risks is
our Board of Directors.
governance of our CSR program included in Walgreens Boots Alliance’s
is critical to its success. Our CSR most-recently filed Annual Report on The confidential reporting telephone
Committee plays a leading role in Form 10-K. lines/website addresses listed in
providing this oversight and governance. Appendix A of the Code are managed
In addition, the Company maintains a
The CSR Committee is chaired by our for Walgreens Boots Alliance by
risk watch list, identifying certain risks
Co-Chief Operating Officer Ornella Barra independent companies that provide
that have not fully developed or for
and includes senior executives from reporting services for hundreds of
which the potential impact cannot be
our key businesses as well as the legal, companies worldwide. They are available
accurately assessed.
human resources and communications 24 hours a day, seven days a week
functions. The CSR Committee meets Based on analysis of potential impacts and in local languages. Information
regularly and, among other obligations, on adjusted operating income and received by the independent companies
is charged with reviewing our CSR reputation, data privacy and continued is relayed to the Walgreens Boots
8 Walgreens Boots Alliance Corporate Social Responsibility Report 2018Alliance Compliance Office for further development requirements for confidentiality, integrity and availability
investigation and review as appropriate. pharmacy staff; processes to are maintained.
ensure concerns about pharmacy
More information on our Corporate Under the leadership of our Global Chief
OVERVIEW
professionals’ fitness to practice are
Governance Guidelines, and the Information Security Officer, Walgreens
referred to the appropriate regulatory
Code of Conduct, can be found on our Boots Alliance devotes significant
body; compliance with safe storage,
corporate website. resources to protect the security of
preparation, dispensing, compounding,
our computer systems, data, networks
Customer, patient and sale and supply of medicinal products;
and other assets. Our IT department
mechanisms for compliance with
product safety maintains procedures to manage and
standard operating procedures
COMMUNITY
Walgreens Boots Alliance is committed escalate information security incidents.
covering dispensing, pharmacist control
to the safe dispensing of medicines
checks, patient counseling, record Our global information security policies,
in our pharmacies, the wholesaling
keeping, management of controlled which are based on cybersecurity
and distribution of medicines in a safe
drugs and narcotics, medicines date frameworks such as the International
environment, and the production and
checking, quality assurance, error Organization for Standardization and
sale of high-quality health and beauty
management and other issues; and the National Institute of Standards
products. Pharmaceutical products
ENVIRONMENT
recording, management and reporting and Technology, set the compliance
accounted for 72 percent of our sales
of dispensing errors, including a formal guidelines for our people, processes
in fiscal 2018, making distribution and
review process and action planning and systems. Walgreens Boots
dispensing of medications the most
to minimize the risk of such errors Alliance has programs in place to help
significant part of our business. In this
occurring. ensure adherence to security policies,
section of the report we discuss how we
address safety in pharmacy operations, control frameworks and regulatory
All Walgreens Boots Alliance
requirements. We also periodically
MARKETPLACE
dispensing and distribution. In the businesses must have documented
Marketplace section of the report we engage independent third parties to
processes in place to facilitate the
discuss product safety, information and conduct cybersecurity risk assessments.
collection of key performance metrics
labeling in our owned brands. on health and safety, including The Company maintains a Data Security
pharmacy incidents. Event Plan to effectively manage
All Walgreens Boots Alliance
pharmacy dispensing businesses and respond to information security
To help ensure patient safety, our
annually review pharmacy operations incidents. In 2018, Walgreens Boots
prescription labels are designed to
WORKPLACE
for compliance with our Pharmacy Alliance established a new partnership
meet both regulatory requirements and
Operations Governance Policy. Each with a third-party endpoint security firm
our internal standards.
operating business completes a letter to proactively provide breach response
of representation highlighting whether Data privacy and security services, in the event we should need
there are areas of noncompliance in Throughout our operations, we them. Additionally, following our
business procedures, with an action receive, retain and transmit personal leadership in 2017 as an early adopter of
plan stating when those areas will information from customers and others. chip credit card technology in our U.S.
be rectified. During fiscal 2018, the This information is provided when retail stores, Walgreens implemented
Walgreens Boots Alliance Patient Safety they purchase products or services, the process of tokenization as an added
Forum met three times. The meetings fill prescriptions, enroll in promotional layer of protection to our customers.
convened representatives from all programs, participate in our customer Walgreens Boots Alliance complies with
pharmacy dispensing businesses to loyalty programs, register on our global industry standards, including
share best practice operations, facilitate websites or otherwise communicate HITRUST Alliance CSF framework and
a culture of openness and shared and interact with us. In addition, the Payment Card Industry Data Security
learning and develop innovative patient aspects of our operations depend upon Standard.
safety solutions. the secure transmission of confidential
Moving forward, the Company will
information over public networks. The
Annual pharmacy operations reviews continue to closely review, assess and
security processes the Company has in
include monitoring procedures improve policies and procedures to
place for all Walgreens Boots Alliance
for the professional qualifications help ensure the integrity of data and
information technology (IT) systems
of pharmacists and employees in the protection of our customer, patient,
and resources, our businesses, and all
pharmacy-related positions; processes employee and company data.
respective employees, contractors and
to ensure compliance with professional third parties help ensure that security,
Walgreens Boots Alliance Corporate Social Responsibility Report 2018 9Our CSR Materiality Assessment
GRI Disclosures 102-15, 102-21, 102-29, 102-43, 102-44, 102-46, 102-47, 103-1, 103-2, 103-3
To better understand our Forum for the Future worked with and CSR managers and executives
environmental, social and economic us to identify internal and external in determining the impact of the
impacts throughout our operations, stakeholders to interview, including CSR material topics, taking into
Walgreens Boots Alliance conducted a suppliers, employees, customers, the consideration how far or wide the
thorough CSR materiality assessment media, nonprofit groups, investors and impact is, the magnitude of the impact
during fiscal 2018. The aim of the regulatory bodies. The stakeholders and the significance of the impact in
assessment was to encourage insightful reflect the diverse and global nature the world. The outcome of this exercise
stakeholder dialogue, to inform our of Walgreens Boots Alliance, spanning is reflected in the X-axis of our CSR
evolving sustainability strategy and multiple countries and businesses. materiality matrix.
to form the basis for our public CSR The assessment included 60 in-depth
The matrix was validated with key
reporting. The assessment included stakeholder interviews. In addition,
stakeholders and refined appropriately.
horizon scanning: identifying emerging through a third party, we conducted
topics that could become a focus for the surveys with thousands of customers By going through this process of
Company’s sustainability efforts in the in our two largest markets: the U.S. and identifying material CSR issues, we
future. the UK. endeavor to adhere to best practices in
corporate sustainability reporting. The
Our size means that we can have a In the interviews and surveys, we
GRI Content Index at the back of this
significant economic impact in the asked stakeholders about a wide range
report provides a guide for readers to
countries and regions where we do of potential topics. Stakeholders were
find disclosures related to the material
business. Our economic performance asked to indicate how much Walgreens
topics. Our definition of material for
is the bedrock of our CSR commitments Boots Alliance’s performance on these
CSR purposes is distinct from the
because it enables us to promote issues influenced their assessments of
definition of that term that may be used
health, wellbeing and sustainability the Company and decisions whether to
by the Company for other purposes.
through employment, investment, engage with the Company. After a first
initiatives and corporate giving. For tier of interviews, we refined our list This report reflects insights from the
this reason, our overall mission as a of potential material topics and added materiality assessment in a number of
business, and our competitive strategy, issues brought up by stakeholders. ways: more robust disclosure on higher
were central to our process of defining Through additional research, we also priority topics, including additional data
our material CSR issues. considered the material CSR issues in some cases; further explanation of
identified by our corporate peers our management approach to material
We engaged global nonprofit Forum for
and by retail and pharmacy industry topics; and a commitment to develop a
the Future to guide us on the materiality
groups. thorough management approach and
assessment, which was conducted
identify key metrics for future reporting
following GRI reporting requirements. Data from the interviews and from
on our progress on the highest priority
Through stakeholder engagement the surveys of customer panels were
topics, including access to affordable
for the assessment, we identified the used to assign a stakeholder priority
and quality healthcare and consumer
material topics that merit inclusion in to each topic or issue, after applying a
health education and marketing.
this report, which are those that can methodology to calculate the relative
More information on the processes
reasonably be considered important importance of each. These priorities
surrounding the development of this
to reflect our Company’s economic, are shown on the Y-axis of our CSR
report can be found in the About This
environmental and social impacts or materiality matrix.
Report section on page 75.
those that may impact the decisions of
Forum for the Future then guided
stakeholders.
a group of Walgreens Boots
Alliance subject matter experts
10 Walgreens Boots Alliance Corporate Social Responsibility Report 2018CSR materiality matrix
The following matrix shows the issues that were deemed material to our Company from a CSR
perspective. Shading indicates higher, moderate and lower priority topics, and color coding
OVERVIEW
indicates how each topic aligns with our four CSR focus areas and our governance practices.
COMMUNITY
Community
Influence on stakeholder assessments and decisions
Environment
higher priority
Marketplace
Workplace
Governance
ENVIRONMENT
MARKETPLACE
moderate priority
lower priority
WORKPLACE
Significance of Walgreens Boots Alliance’s impacts
Access to affordable and Product labeling and Waste management
quality healthcare transparency
Community engagement
Product safety Corporate governance and partnerships
Consumer health education Environmental impacts Animal testing
and marketing of materials
Energy use and climate impacts
Responsible and ethical Packaging
supply chains Product end-of-life
Employee wages and
Employee health, safety Tobacco use
hiring practices
and wellbeing Supplier diversity
Diversity and inclusion
Prescription drug abuse Deforestation
Cancer cure and prevention
Data privacy and security Water consumption and use
Chemical use and management
Walgreens Boots Alliance Corporate Social Responsibility Report 2018 11Mapping of CSR material topics
In the following table we define our material topics — the moderate and higher priority issues
on the matrix — and map them to the corresponding GRI Topic Specific Standards, which are
included in this report, and to the UN SDGs.
Corresponding GRI Topic
Material Topic Definition Specific Standard(s) Corresponding UN SDG(s)
Supporting Walgreens Boots Alliance
Access to customers, employees, community members This issue does not map
affordable and and other stakeholders to easily access directly to a GRI Topic
quality healthcare affordable, quality prescriptions, immunizations Specific Standard
and health services
Ensuring that products sold, including their
GRI 416: Customer Health
Product safety ingredients, meet rigorous safety standards that
and Safety
in some cases go above and beyond regulation
Through campaigns and other communication
Consumer tools, raising awareness among consumers This issue does not map
health education and sharing information about critical health directly to a GRI Topic
and marketing issues, prevention tips and other health-related Specific Standard
information, such as smoking cessation
Driving good practices across Walgreens Boots
Alliance’s supply chain, protecting human
Responsible and GRI 414: Supplier Social
rights, supporting diverse suppliers and
ethical supply chains Assessment
engaging with suppliers around environmental
and social issues
Offering benefit packages, workplace conditions
Employee health, and other support systems to help ensure the
GRI 401: Employment
safety and wellbeing health, safety and wellbeing of all Walgreens
Boots Alliance employees
Investing in or supporting external community
solutions, and/or providing programs, This issue does not map
Prescription
information or other support to communities and directly to a GRI Topic
drug abuse
individuals in the U.S. and elsewhere, to fight Specific Standard
prescription drug abuse
Working to protect Walgreens Boots Alliance
Data privacy and customers’ and employees’ data and privacy,
security and investing in the security of information GRI 418: Customer Privacy
technology systems
Collecting and tracking product information from
Product labeling and suppliers, and providing consumers with the GRI 417: Marketing and
transparency information they care about in a clear, accessible Labeling
and thorough way
Ensuring Walgreens Boots Alliance is led Covered in General
Corporate internally with the highest standards of Disclosures (Governance)
governance governance, and that all employees, officers
GRI 205: Anti-corruption
and directors practice sound ethics
Working with suppliers to help ensure
that raw materials are sourced in the most GRI 417: Marketing
Environmental
environmentally appropriate way possible, or and Labeling
impacts of materials
eliminated or replaced where environmental
impact cannot be reduced
12 Walgreens Boots Alliance Corporate Social Responsibility Report 2018Corresponding GRI Topic
Material Topic Definition Specific Standard(s) Corresponding UN SDG(s)
Working to reduce negative impacts
of product packaging, including using
Packaging recycled/recyclable packaging, eliminating GRI: 301: Materials
chemicals of concern from packaging and
other steps
Executing leading hiring practices and
offering compensation to Walgreens
Employee wages and
Boots Alliance employees at all levels GRI 202: Market Presence
hiring practices
and locations, including equal pay across
genders and a living wage
Attracting diverse employees, increasing
opportunities for all staff through
GRI 405: Diversity and
Diversity and inclusion transparent career progression plans and
Equal Opportunity
promoting an agile and flexible working
culture
Raising awareness about cancer risk
factors and prevention, supporting
This issue does not map
Cancer cure individuals with cancer care, reducing sales
directly to a GRI Topic
and prevention of products that are known or at risk to be
Specific Standard
carcinogenic and/or investing in cancer
cure research efforts
Selecting safe materials, eliminating
ingredients deemed to be a risk, and This issue does not map
Chemical use and
helping to ensure safe use throughout their directly to a GRI Topic
management
life cycle, including sourcing, transport, Specific Standard
storage, use and production
Responsibly and sustainably managing
waste at stores, offices and other facilities,
Waste management GRI 306: Effluents and Waste
including reducing, reusing, recycling and
composting
Working with or otherwise supporting
Community engagement nonprofit organizations, community groups
GRI 413: Local Communities
and partnerships and other external organizations to support
their social or environmental impact
Reducing or eliminating the testing
of products or ingredients on animals This issue does not map
Animal testing whenever possible, and/or contributing directly to a GRI Topic
to efforts (i.e. research) to support other Specific Standard
means of safety testing
Working with upstream suppliers
and facilities managers to reduce the GRI 302: Energy
Energy use and
greenhouse gas emissions associated with
climate impacts GRI 305: Emissions
Walgreens Boots Alliance’s footprint and
supply chain
In addition to the GRI Topic Specific Standards mapped to the CSR material topics in the table, we report
on the following, which we consider fundamental to our social license to operate and to our efforts to
be a good corporate citizen — GRI 201: Economic Performance; GRI 203: Indirect Economic Impacts; GRI 206:
Anti-competitive Behavior; and GRI 415: Public Policy.
Walgreens Boots Alliance Corporate Social Responsibility Report 2018 13The definitions for the material topics roduct end-of-life: Working to
P eforestation: Working to
D
that were considered lower priority reduce the environmental impact responsibly source products and
are as follows: of sold products and offering ingredients in order to reduce
consumers product and packaging deforestation, which destroys plant
disposal information to help protect and animal habitats, affects local
the planet communities and impacts climate
change
obacco use: Selling of tobacco
T
products in our stores in North ater consumption and use:
W
America Working to reduce water use
associated with facilities,
upplier diversity: Procuring
S
to provide consumers with
products and services from a
information on proper disposal of
diverse supplier base to foster
flushable products and to reduce
sustainable communities
ingredients in rinse-off products
that could potentially harm the
environment
14 Walgreens Boots Alliance Corporate Social Responsibility Report 2018Stakeholder Engagement
GRI Disclosures 102-21, 102-29, 102-40, 102-42, 102-43, 102-44, 102-46
Engaging and collaborating with our stakeholders helps us to address
the most relevant sustainability issues for our Company. We regularly
consult with our stakeholders, internal and external, to seek their feedback
on our performance in the areas where we have the greatest economic,
environmental and social impact.
Dialogue with stakeholders across the engagement carried out for preparing
world provides us with a broad and the CSR materiality assessment
diverse understanding of their evolving described elsewhere in this report, as
priorities and of issues that are emerging well as regular ongoing engagement.
as potential priorities in the future. Issues brought to our attention by
Ultimately, this helps enable us to deliver stakeholders are escalated to our CSR
products and services that make positive Committee.
impacts throughout our lines of business.
We maintain an open door at all times
We identify relevant stakeholders in a for stakeholder feedback on our CSR
variety of ways. Stakeholders impacted reporting and strategy. One way to
by our business and who influence reach us is by email at CSR@wba.com.
our business — such as customers, Customers and pharmacists are among
stockholders and nonprofit groups — our key stakeholder groups.
frequently approach us with issues. We
also engage stakeholders proactively
on matters where we feel we can have
significant impact, such as in the health
and wellbeing arena, and also on topics
where we are aware of evolving societal
expectations. We also endeavor to
engage with stakeholders representing
a range of sectors, geographies,
organization types and sizes.
The table in this section describes the
form and frequency of engagement with
key categories of stakeholders during
fiscal 2018, their expectations, matters
they raised and actions we have taken.
The table content reflects stakeholder
Walgreens Boots Alliance Corporate Social Responsibility Report 2018 15Expectations/issues that
Stakeholders Mechanism for engagement arose through engagement Actions taken
Non-governmental • At a minimum, quarterly • Consumer health education • Mental health education and
organizations (NGOs) meetings with key charity and marketing resources for veterans
partners • Product safety • Expanded UK dementia
• Formal yearly feedback with • Community engagement and awareness campaign
key charity partners partnerships • Trained cancer information
• Regular and ad hoc meetings, pharmacists
as well as conference • Chemical Policy Statement
participation with NGOs; • Collaboration on personal care
frequency varies from business products rating system with The
to business and from group Sustainability Consortium (TSC)
to group
Stockholders, investors, lenders • Annual stockholders meeting • Prescription drug abuse • Expansion of opioid abuse
• Frequent dialogue through our • Access to affordable and prevention programs and
investor relations team quality healthcare partnerships
• May 2018 sell-side analyst • Tobacco use • Copay support for patients
event, participation in investor • Disaster response and
conferences at least twice enhanced preparedness to
yearly provide healthcare access
• Annual submission of CDP • Tobacco removed from pilot
Climate Change questionnaire project stores in Gainesville,
Florida
Government bodies and • Weekly or more frequent • Energy use and climate impacts • Energy efficiency investments
agencies meetings with government • Packaging • Established refrigerant baseline
agencies • Waste management in our main markets
• Weekly or more frequent • Prescription drug abuse • Joined UK Plastics Pact
dialogue with membership • Expansion of opioid abuse
associations prevention programs and
• Consultation responses at partnerships
national and international levels
• Quarterly industry panels
Internal stakeholders • Annual employee performance • Employee health, safety • U.S. parental leave benefit and
reviews/appraisals and wellbeing other benefit updates
• Quarterly and/or annual • Employee wages and hiring • U.S. wage increase
employee feedback surveys, practices • Walgreens Boots Alliance
varies from business to diversity and inclusion
business leadership goal
• Ethics, safety, compliance, • UK gender pay gap, actions
development and other taken
training — frequency varies
from business to business and
from role to role
• Daily Company and business
communications through email,
intranet and bulletin boards
• Quarterly town hall meetings
with senior leadership
16 Walgreens Boots Alliance Corporate Social Responsibility Report 2018Expectations/issues that
Stakeholders Mechanism for engagement arose through engagement Actions taken
Suppliers • Annual supplier conferences • Prescription drug abuse • Partnership on expansion
• Quarterly joint business • Energy use and climate impacts of Safe Medication Disposal
OVERVIEW
plans meetings with selected • Product safety Kiosks
suppliers • Collaboration on personal
care products rating system
with TSC
Communities • Daily, through our retail • Diversity and inclusion • Unconscious bias training for
pharmacies and CSR initiatives • Prescription drug abuse Walgreens store employees
COMMUNITY
• Annual campaigns with charity • Access to affordable and quality • Expansion of opioid abuse
partners healthcare prevention programs and
• Daily response to issues raised partnerships
on social media • Community health events, flu
shot vouchers
Customers (pharmacy benefit • Always-on Walgreens and • Access to affordable and quality • Copay support for patients
managers (PBMs), pharmacists, Boots UK customer satisfaction healthcare • Community health events, flu
ENVIRONMENT
consumers, patients) surveys • Product labeling and shot vouchers
• Corporate website, business transparency • HIV testing
websites • Data privacy and security • Chemical Policy Statement
• Social media • Packaging • Package label enhancements
• Daily, through our retail • Continued information security
pharmacies and CSR initiatives efforts
Academics • Face-to-face bi-annual • Product safety • Chemical Policy Statement
MARKETPLACE
meetings • Chemical use and management • Mica, talc suppliers survey
• Regular guest-speaker slots • Responsible and ethical supply • Adopted employer pays
• Presentations at scientific chains principles
meetings several times a year • Consumer health education • Promotion of safe medication
and marketing use and regimen adherence
• Access to affordable and
quality healthcare
WORKPLACE
Media • Media releases and social • Consumer health education and • Mental health education and
media most weekdays marketing resources for veterans
• Quarterly streaming of earnings • Product safety • Expanded UK dementia
call with analysts, twice awareness campaign
yearly streaming of executive • Trained cancer information
participation in investor pharmacists
conferences • Chemical Policy Statement
• Media interviews
Peers • Ad-hoc meetings and regular • Data privacy and security • Continued information security
dialogue through membership • Product labeling and efforts
organizations transparency • Collaboration on personal care
products rating system with
TSC
Walgreens Boots Alliance Corporate Social Responsibility Report 2018 17Industry organizations
and networks
Walgreens Boots Alliance’s work with a
number of industry organizations and
networks is central to our CSR agenda,
as we believe that collaboration is key to
being a force for good.
Our Company’s leaders are actively
involved on the boards of a number of
industry organizations and networks
that have CSR agendas that we support.
Walgreens Boots Alliance’s Co-Chief
Operating Officer Alex Gourlay and
Walgreens President of Operations
Richard Ashworth both served on the
We engage with our customers through surveys, websites, social media and in our stores.
board of the U.S. National Association
of Chain Drug Stores (NACDS) during
fiscal 2018. Co-Chief Operating Officer As a member of the CGF, Walgreens the learnings from this work to influence
Ornella Barra served on the board Boots Alliance has pledged to our business approach globally on this
of the International Federation of follow the group’s resolutions and important topic.
Pharmaceutical Wholesalers (IFPW) commitments on health and wellness,
Walgreens Boots Alliance also
and as a Trustee of IFPW Foundation, ethical supply chains (including modern
continued its involvement with the
whose work includes supply chain slavery), food waste, refrigerants and
Collaboration for Healthier Lives,
safety initiatives and collaboration with deforestation, among other issues.
a CGF initiative to explore ways to
Gavi, the Vaccine Alliance, to improve More information on those resolutions
help customers shop for healthier
the access and availability of vaccines is available on the CGF website at
products through a series of projects
worldwide. www.theconsumergoodsforum.com
in cities around the world. In fiscal
and our response and progress is
Walgreens has worked for a number 2018 Walgreens stores in Hagerstown,
detailed on pages 47, 55-57 and 59-60
of years with a group of U.S. retailers Maryland participated, along with
of this report.
and consumer goods companies on the other retailers and consumer goods
cross-industry, collaborative Beauty and During fiscal 2018 we also established companies, in a campaign called One
Personal Care Products Sustainability a steering committee with senior for Good, part of the Collaboration
Project, an initiative coordinated by appointments from across our for Healthier Lives. The campaign, in
Forum for the Future, an independent, businesses to provide further strategic partnership with local public health
international nonprofit working to solve support and drive for the internal authorities, supported the community in
complex sustainability challenges. More processes and working groups adopting healthier diets and lifestyles
about this collaboration can be found in delivering our commitments. by encouraging consumers to make the
the Marketplace section of this report. healthier choice.
During fiscal 2018, following a CGF
The Consumer Goods Forum board meeting and agreement that the
(CGF) industry must act on the issue of plastic
Our Chief Executive Officer, Stefano waste, Walgreens Boots Alliance joined
Pessina, serves on the board of the one of four CGF task forces created
CGF, a prominent global association of in relation to the issue. The Company
retailers and manufacturers that looks joined the global Inspiring Participation
to drive positive change and efficiency task force, focused on increasing
around the world for the benefit of both consumer awareness about recycling
people and the planet, as well as our and recyclability. The Company will use
business.
18 Walgreens Boots Alliance Corporate Social Responsibility Report 2018Focus — Our efforts to combat opioid abuse
OVERVIEW
GRI Disclosures 103-2, 103-3, 301-3
Now more than ever, the United States During fiscal 2018 Walgreens expanded
COMMUNITY
needs collaborative solutions to the opioid its ongoing multi-million dollar effort to
help combat overdose-related deaths.
epidemic. Opioid abuse is devastating
This expansion built on our influence as
families and entire communities, and the a leader in the retail pharmacy industry
numbers continue to rise. As of 2017, the Centers for and presence in communities across the
country. Walgreens focuses on saving
Disease Control and Prevention estimates that more than lives by prioritizing efforts to curb
ENVIRONMENT
115 people in the United States die from an opioid overdose the misuse and abuse of prescription
drugs through a medication disposal
every day. Given its scale of operations and reach in local
program, a teen awareness and
communities, Walgreens can have significant impact on education campaign and collaboration
this issue. with government bodies to expand
the availability of opioid overdose
MARKETPLACE
antidotes.
Walgreens enlarged its medication
disposal program, the first national
effort of its kind by a retailer, through
a partnership with leading healthcare
organizations AmerisourceBergen,
Pfizer and Prime Therapeutics. As
WORKPLACE
of the end of fiscal 2018 Walgreens
had installed more than 1,000 safe
medication disposal kiosks at its
retail pharmacies, with a goal to
reach approximately 1,500 kiosks.
The kiosks are designed for safe and
convenient disposal of unwanted,
unused or expired medications.
Between May 2016, when the kiosk
program launched, and August 31,
2018, Walgreens collected and safely
disposed of more than 410 tons (372
metric tonnes) of medication.
Walgreens also worked to raise
awareness and educate teenagers
about opioid abuse through the
#ItEndsWithUs campaign, introduced
in September 2017. Walgreens reached
thousands of young people with the
Safe medication disposal kiosks are designed for safe and convenient disposal
campaign through its sponsorship of
of unwanted, unused or expired medications. five WE Day events during fiscal 2018.
Walgreens Boots Alliance Corporate Social Responsibility Report 2018 19You can also read
