MCKESSON FY24 IMPACT REPORT
Community.
Planet.
People.
Partners.
Community.
Planet.
People.
Partners.
Community.
Planet.
At McKesson, our purpose is
Advancing Health Outcomes For All.
®
People.
Partners.
Community.
Planet.
People.
Partners.
Community.
Planet.
People.
Partners
4
16
24
34
43
50
Introduction
5
A message from our Chief
Executive Officer
6
Q&A with our Chief Impact
Officer
7
McKesson at a glance
8
What we do
9
Our impact pillars
10
Governance and sustainability
14
Awards and recognition
15
About this report
People
17
Care: Employee health and
well-being
19
Meaning: Employee
engagement and purpose
21
Belonging: The power of
inclusion
Partners
25
Government partnerships
27
Improving access, affordability
and adherence
31
Health equity advances in
oncology
33
Inclusive approach to supplier
relationships
Community
35
Supporting the fight against
cancer
37
Employee engagement with
our communities
39
The McKesson Foundation
Planet
44
Greenhouse gas emissions
reduction targets
45
Progressing our GHG
emissions reduction efforts
46
Expanding sustainability
through innovation and green
buildings
47
Improving technology and
efficiencies across our
transportation network
48
Enhancing operations with
sustainable packaging and
waste reduction
49
Using renewable energy
sourcing to acquire emission
reductions
ESG Markers
51
Overview
51
United Nations Global Compact
52
Global Reporting Initiative (GRI)
59
Sustainability Accounting
Standards Board (SASB)
61
Task Force on Climate-related
Financial Disclosures (TCFD)
63
Sustainable Development
Goals (UN SDGs)
64
McKesson’s GHG and energy-
use data table
66
Basis of Reporting —
Greenhouse Gas (GHG)
Emissions
67
Emissions Factors Sources
68
Calculation Methodology
69
Data Quality and Reporting
70
Cautionary Statements
70
Legal Notices
3
Introduction
Community
Planet
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MCKESSON FY24 IMPACT REPORT
We are pleased to present our Impact Report for fiscal year 2024
(FY24), covering April 1, 2023 through March 31, 2024 and highlighting
McKesson’s commitment to our purpose of Advancing Health Outcomes
for All®.
This report illustrates our continued efforts to communicate our
progress in achieving our corporate purpose, with a focus on the ways
we are making an impact on our people, partners, community and planet.
Community
Planet
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Introduction
People
MCKESSON FY24 IMPACT REPORT
A message from our Chief Executive Officer
Our journey continues to be anchored in Team
McKesson’s commitment to make better health
possible, notably in improving healthcare access and
equity. Our pilot program to bridge gaps in healthcare
delivery by providing essential pharmacy services
to underserved communities is a testament to our
progress. In addition, our efforts to diversify clinical trials
have further ensured that advancements in medicine
are inclusive and representative of all patients.
Another area of focus for us this year centered on
embracing technology and innovation across our
operations to enhance our services and improve
patient care. Setting a solid foundation for our digital
enablement efforts, we launched training with our top
600 leaders designed to increase digital literacy and
embed a digital mindset throughout the organization,
with plans to roll out additional learning opportunities
for all employees. We also accelerated several digital
enablement initiatives across our business units and
corporate functions that will help unlock efficiencies
and create greater value for our company and everyone
who depends on us.
Beyond our efforts to improve health for people and
communities everywhere, we also devoted our actions
to contribute to a healthier planet. We accelerated
our sustainability priorities with environmental
responsibility initiatives like optimizing our distribution
centers and fleet operations to minimize our
environmental footprint.
This report highlights our far-reaching impact in fiscal
year 2024 — and our unwavering commitment to
advance our strategy to drive meaningful outcomes
and help build a healthier tomorrow. As we look ahead,
I am confident we will continue to grow our impact,
guided by our I²CARE values and ILEAD leadership
principles, to meet the changing needs of our
customers and the broader healthcare community.
Over the past year, McKesson proudly achieved significant milestones in our growth as an
impact-driven organization.
Guided by our purpose of Advancing Health Outcomes for All®,
we’ve pushed boundaries, embraced change and dedicated ourselves to doing what is right for
our people, partners, community and planet.
BRIAN TYLER
Chief Executive Officer,
McKesson Corporation
This report highlights our
far-reaching impact in fiscal
year 2024 and our unwavering
commitment to advance our
strategy to drive meaningful
outcomes and help build a
healthier tomorrow.
“
5
Introduction
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MCKESSON FY24 IMPACT REPORT
It’s a very exciting time to work in this industry and
I’m extremely excited about the work that we’ve
accomplished over the last several years — whether it’s
driving affordable access to the medications patients
need or bringing different innovations to providers,
pharmacies or hospitals. But what gets me really
excited is the fact that I believe McKesson is the future
of healthcare. I have big ambitions for our company, and
I know McKesson and our more than 51,000 employees
are up for the challenge and ready to tackle whatever
lies ahead to help make a lasting impact on the world
around us.
What is McKesson’s approach to
making an impact and how is the
company focusing its efforts?
How do McKesson’s employees
embody the company’s purpose
and values?
What is your vision
or hope for McKesson
moving forward?
As an organization, we think about making an impact
across four different areas:
OUR
PEOPLE
First is our people, and our impact providing our
employees with the opportunity to succeed and grow
in their careers.
OUR
PARTNERS
Second is our partners, and our impact working with
other companies and organizations to provide access
to good, quality care in the communities that we serve.
OUR
COMMUNITIES
Third is our communities, and our impact supporting
the unique needs of different areas and providing
them with the right health solutions.
OUR
PLANET
Fourth is our planet, and our impact doing the right
things to protect our environment as we sustain our
business and advance our purpose.
Although there are few companies that have the same
breadth and depth as McKesson, I believe what really
sets us apart from others is our strong culture. Our
purpose of Advancing Health Outcomes for All® is
simply part of who we are, and we wake up every
morning eager to use our talents to make just one
more life a little bit better.
1
2
3
Q&A with our Chief Impact Officer
NIMESH JHAVERI
Executive Vice President
& Chief Impact Officer,
McKesson Corporation
Click the play button to hear more Q&A
content with our Chief Impact Officer
6
Introduction
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MCKESSON FY24 IMPACT REPORT
McKesson
at a glance
FISCAL YEAR 2024
40M+
pharmaceutical
and medical supply
deliveries annually
Strength in Distribution
99% pharmaceutical order accuracy
in North America
285,000+ customers
served with
medical-surgical products
Superior Specialty Assets
1.4+ million patients
annually treated by
The
US Oncology Network physicians
+1,000 clinical trials
actively enrolling
Technology
Differentiation
Connected to payers
representing
94% of U.S.
prescription volume
Access to research
data from
>2.4M
patient
records
including
>85
oncology indications
Biopharma Services
More than
650 biopharma
brands
served
Increased value to biopharma
and enabled
>$8.8B in
prescription savings
95%
of therapeutic
areas
Supported
Network of
950,000
providers
and
over 50,000
pharmacies
Leading
distributor
in oncology and
specialty therapies
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Introduction
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MCKESSON FY24 IMPACT REPORT
U.S. PHARMACEUTICAL
Our U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter
pharmaceutical drugs and other healthcare-related products across the U.S. This segment provides practice
management, technology, clinical support and business solutions to community-based oncology and other
specialty practices. In addition, the segment sells financial, operational and clinical solutions to pharmacies
(retail, hospital, alternate sites) and provides consulting, outsourcing, technological and other services.
PRESCRIPTION TECHNOLOGY SOLUTIONS
Our Prescription Technology Solutions (RxTS) segment helps solve medication access, affordability and
adherence challenges for patients by working across healthcare to connect patients, pharmacies, providers,
pharmacy benefit managers, health plans and biopharma. RxTS serves our biopharma and life sciences
partners, delivering innovative solutions that help people get the medicine they need to live healthier lives.
RxTS also offers prescription price transparency, benefit insights, dispensing support services, as well as
third-party logistics and wholesale distribution support.
MEDICAL-SURGICAL SOLUTIONS
Our Medical-Surgical Solutions segment provides medical-surgical supply distribution, logistics and other
services to healthcare providers, including physician offices, surgery centers, nursing homes, hospital
reference labs and home health care agencies. The segment offers more than 245,000 national brand
medical-surgical products as well as McKesson’s own line of high-quality products through a network of
distribution centers across the U.S.
INTERNATIONAL
Our International segment provides distribution and services to wholesale, institutional and retail customers
in Canada and Europe, where we own, partner or franchise with retail pharmacies and support better, safer
patient care by delivering vital medicines, supplies and information technology solutions.
Our business segments
We impact virtually every aspect of
healthcare through our four business
segments — U.S. Pharmaceutical, Prescription
Technology Solutions, Medical-Surgical Solutions
and International.
What we do
McKesson is a diversified healthcare services leader dedicated to advancing health outcomes for patients everywhere.
Our solutions help patients access life-changing therapies, create
a real difference for patients with cancer and equip pharmacies, health systems and clinics with technologies to operate more effectively. We partner with biopharma companies, care providers,
pharmacies, manufacturers, governments and others to deliver insights, products and services to help make quality care more accessible and affordable.
Aligning with our enterprise strategy
The four priorities of our enterprise strategy are:
•
Focus on people and culture
•
Drive sustainable core growth
•
Expand oncology and biopharma platforms
•
Evolve and grow the portfolio
These priorities guide our daily efforts and
serve as a common framework to track our
company’s success.
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Introduction
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MCKESSON FY24 IMPACT REPORT
Our impact pillars
We believe the best way to make an impact is
to utilize our strengths and put our purpose
of Advancing Health Outcomes for All® at the
center of everything we do.
To track, measure and share how we live our purpose, our
efforts are guided by four impact pillars:
This report showcases some of the McKesson programs,
initiatives and progress from the past fiscal year that best
illustrate the themes of each of our impact pillars.
OUR
PEOPLE
Providing equitable and dynamic opportunities for people to thrive
OUR
PARTNERS
Collaborating to improve health outcomes for patients
OUR
COMMUNITY
Enhancing the health of those in our communities
OUR
PLANET
Delivering environmental action for health
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MCKESSON FY24 IMPACT REPORT
Governance and sustainability
We are committed to leading corporate
governance practices, which we believe are
essential to delivering long-term value to our
shareholders and other key stakeholders.
Our purpose guides us as we foster a robust approach
to governance. This includes maintaining the integrity
of our Board-level oversight structures and senior
leadership team initiatives, allowing us to:
•
Attract, develop and retain the best talent
at all levels
•
Strengthen our core business with skilled and
innovative partners and employees
•
Implement thoughtful and strategic business
priorities and risk management initiatives
•
Monitor the impacts we have on our people, partners,
community and planet
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Introduction
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MCKESSON FY24 IMPACT REPORT
Board of Directors and management
governance structure
Our Board of Directors (Board) and senior leadership
team continually seek to build sustained shareholder
value and to strengthen the vitality of McKesson
for our employees, customers, suppliers and other
stakeholders who depend on us.
To help achieve these objectives, our Board and
its committees monitor our overall performance
with respect to long-term value creation and
sustainability initiatives.
BOARD COMMITTEES
The Board’s Governance and Sustainability Committee
is responsible for the oversight of corporate
governance and sustainability matters, including an
annual review of sustainability strategy.
The Compensation and Talent Committee is
responsible for the oversight of senior management
succession planning and topics related to our best
talent strategy and talent development, employee
engagement and company culture matters.
The Compliance Committee, in coordination with
the Audit Committee, reviews our approach to
risk identification and mitigation plans for certain
cybersecurity and technology-related risks. These
focused committee-level responsibilities allow our
Board to effectively address issues salient to our
company strategy and the broader market environment.
SENIOR LEADERSHIP TEAM
With Board oversight, our senior leadership team
continuously monitors our business environment to
assess and address risk areas that could potentially
impact McKesson’s business performance, priorities
and growth strategies.
To guide and focus McKesson’s sustainability initiatives,
a Sustainability Steering Committee, led by our
Chief Impact Officer and including our Chief Human
Resources Officer, Chief Financial Officer and Chief
Legal Officer, helps to confirm that any priorities set on
sustainability are aligned with our business goals.
Supporting Board diversity
Building a culture of inclusion and belonging starts with
our leadership. We believe that diverse representation
on our Board helps further the balanced and robust
deliberation and decision-making process that is
critical to McKesson’s long-term success. The Board’s
Governance and Sustainability Committee takes a
broad view of diversity to include:
•
Backgrounds, cultures, thoughts and perspectives
•
Education, experience and skills
•
Personal qualities and other attributes
•
Race, ethnicity, gender, national origin, veteran status
and other categories
Members of our Board bring their unique backgrounds
and ranges of expertise, knowledge and experience,
which we believe provide an appropriate and diverse mix
of qualifications necessary for our Board to effectively
fulfill its oversight responsibilities.
Each year, our proxy statement for our annual meeting
contains a skills matrix that identifies the prominent
experiences and qualifications of the director
nominees to serve on our Board.
The matrix contained in our 2024 Proxy
Statement can be found
here.
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MCKESSON FY24 IMPACT REPORT
Shareholder and other
stakeholder engagement
Our shareholder engagement program includes
hosting meetings throughout the year to encourage
meaningful dialogue about the issues our shareholders
find most important.
In FY24, we proactively reached out to shareholders
representing 51% of our outstanding common stock
and engaged with shareholders representing 33% of
our outstanding common stock.
Topics discussed with our shareholders included,
among others, Board composition, Board skills and
diversity, Board evaluation, management succession
planning, sustainability metrics in executive
compensation, human capital management, and
emissions reductions targets.
In addition to our shareholders, we regularly receive
feedback from other stakeholders — such as employees,
customers, business partners and governments.
See
Our People
and
Our Partners
in
this report to learn more about our
engagement efforts.
12
Introduction
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MCKESSON FY24 IMPACT REPORT
Compliance Program and
Our Code of Conduct
At McKesson, the way we do business is just as
important as the business itself. Our Compliance
Program grounds our employees in four core principles:
•
Follow the laws and regulations that apply to
McKesson
•
Live our I
2
CARE values in action in all McKesson
activities
•
Speak up promptly with any concerns about
complying with our Code of Conduct, McKesson
policies or the law
•
Drive regulatory excellence every day
CODE OF CONDUCT
McKesson’s Code of Conduct acts as a guide to help
employees make ethical decisions and underscore
the criticality of regulatory excellence. Our Code of
Conduct embodies our I²CARE values and applies to
all of our employees, officers and directors.
We have created a Code of Conduct microsite that is
available to McKesson employees to highlight policies,
procedures, training and other key resources aligned
with our Code.
Code of Conduct training is also required for all our
employees and directors. We utilize a combination of
online and instructor-led training techniques that are
tailored to our employees’ roles and locations, and we
provide training across our entire distribution network
in the U.S. and Canada. Together in action, the Code,
our policies and our ethical decision-making serve as
the backbone of our commitment to excellence.
SPEAK UP: THE MCKESSON INTEGRITY LINE
While doing business honestly, fairly and ethically
may not always be easy, it is always right. Integrity
starts with a shared responsibility, and all McKesson
employees are expected to speak up if they are
aware of conduct believed to be illegal, unethical or in
violation of our Code of Conduct or other policies.
We use a third-party vendor to manage our Integrity
Line 24/7/365, and McKesson policy prohibits any
form of retaliation against individuals who act in good
faith to report any suspected improper, unethical
or illegal conduct, including concerns related to
controlled substances.
COMPLIANCE COMMITTEE
The Board’s Compliance Committee assists our
Board and the Board’s Audit Committee in overseeing
management’s handling of legal and regulatory
compliance risks and our compliance program. The
Compliance Committee in coordination with the Audit
Committee has oversight of current and emerging
legal and regulatory compliance risks and enforcement
trends that may affect our business operations,
performance or strategy. In addition, the Compliance
Committee’s mandate includes oversight of our
compliance reporting mechanisms and the assessment
of our principal legal and regulatory compliance risks.
GLOBAL PRIVACY OFFICE
McKesson has a responsibility to help protect the
privacy and security of the information we receive
from customers, patients, business partners and
our employees. We protect data in accordance with
McKesson’s Privacy Principles, our Code of Conduct
and laws and regulations.
Leveraging McKesson’s Privacy Principles as our
foundation, employees from our Global Privacy Office
and Digital Data and Assets teams work with internal
stakeholders — including business unit compliance
officers, our cybersecurity team and business unit
privacy leads — and external stakeholders to mitigate
risk and provide strategic advice.
Enterprise focus on quality
As a company, we have a foundational commitment
to excellence in everything we do — especially when it
comes to delivering high-quality products and services,
prioritizing customer satisfaction and driving continuous
improvement. Focusing on product quality and patient
safety, our Enterprise Quality Management team:
•
Provides enhanced oversight for our quality
management activities across our company
•
Facilitates the sharing of knowledge and best
practices
•
Drives a culture of quality throughout McKesson
Our Enterprise Quality Management team coordinates
our Enterprise Quality Operating Committee,
consisting of Quality leaders from across various
businesses.
Together, this committee and members of our
Enterprise Quality Management team assist
businesses across the company in setting priorities
and continuously improving the quality of our
operations and services.
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Awards and recognition
McKesson continues to be recognized externally for our efforts to become the best place
to work in healthcare.
FORBES
As one of America’s Best Large Employers
and one of the Best Employers for Women
DISABILITY EQUALITY INDEX
As one of the Best Places to Work for Disability Inclusion
LATINA STYLE
As one of the Best 50 Companies for Latinas to
work for in the U.S.
FORTUNE
As one of America’s Most Innovative Companies
HUMAN RIGHTS CAMPAIGN FOUNDATION
One of the Best Places to Work for
LGBTQ+ Equality
DIVERSITY COMM MAGAZINE
As a Best of the Best 2024 — Top Women Employer
NEWSWEEK
As one of America’s Greatest Workplaces for Diversity
and America’s Greatest Workplaces for Women
NEWSWEEK
As one of America’s Greenest Companies
SERAMOUNT
As a Leading Inclusion Index Company including
a Best Company for Multicultural Women
and a Top Company for Executive Women
GI JOBS
As a Military Friendly Employer
AGE-FRIENDLY INSTITUTE
As a Certified Age-Friendly Employer
WOMEN IN GOVERNANCE
As a recipient of gold-level Parity Certification for
commitment to closing the gender parity gap in the
workplace (McKesson Canada)
In FY24, McKesson was honored by:
MONTREAL’S TOP EMPLOYERS
As one of Montreal’s Top Employers (McKesson Canada)
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Introduction
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MCKESSON FY24 IMPACT REPORT
Our current Impact Report covers McKesson’s
FY24 (April 1, 2023 through March 31, 2024)
unless stated otherwise.
The report includes real-world stories to illustrate the impact of
our work, as well as data-driven insights and ESG (Environmental,
Social, Governance) performance metrics in the ESG Markers
section. We include indices that report against metrics from the
following ESG standards and frameworks:
•
Global Reporting Initiative (GRI)
•
Sustainability Accounting Standards Board (SASB)
•
Task Force on Climate-related Financial Disclosures (TCFD)
•
United Nations Sustainable Development Goals (UN SDGs)
•
United Nations Global Compact (UNGC)
About this report
15
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MCKESSON FY24 IMPACT REPORT
We believe that the future of health starts with our employees. Every
day, we foster a sense of belonging, find meaning in our work and care
for each other, our customers and all those who depend on us.
As an industry leader, we are committed to investing in our employees so
that they, in turn, can focus on making better health possible for others.
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Enhancing our employee
benefits experience
Focusing on enhancing our employee experience,
we continue to find new ways to make it easier for
employees to quickly and easily get the help they
need with their McKesson benefits.
One of the ways we’re enhancing employee support
is through the launch of a digital assistant to provide
real-time help navigating across all human resources
(HR)-related topics. Out of the approximately
100,000 cases our HR team manages annually,
our digital assistant is handling 35% of the volume
and independently resolving 68% of those cases.
Expanding the capabilities for our digital assistant
has enabled us to simplify processes and increase
employee satisfaction.
Our success in leveraging automation to support our
people inspires us to scale and explore other digital
solutions to improve our employee experience.
Care: Employee health and well-being
It’s simple, we care about our employees and their families.
We take a holistic approach to empowering our employees to be at their best,
including offering health and wellness benefits to advance their physical, mental and social well-being, savings programs to help prepare
them for retirement, flexible work arrangements and more.
Helping those with cancer through
The McKesson Cause Network
The McKesson Cause Network provides a supportive
community for employees and their family
members facing the challenges that come
with a cancer diagnosis.
The McKesson Cause Network enhances and
promotes the cancer-related tools and resources
available for employees and their families, while also
providing information on volunteer opportunities and
cancer focused organizations.
In addition to offering personal advice and words
of encouragement for both cancer survivors and
caretakers, The McKesson Cause Network’s
support includes:
GETTING STARTED
Guidance in learning about treatment options,
validating in-network doctors, resolving claim issues
and arranging for a chronic care advocate.
GETTING A SECOND OPINION
Resources to help find a second medical opinion
and additional treatment options, so employees can
make the best choices possible.
CLINICAL TRIALS
Ways to access resources and non-biased opinions
that can identify relevant clinical trials that may offer
new treatment and care options.
HEALTH INSURANCE AND LEAVE BENEFITS
Information on short- and long-term leave options,
including how a leave may impact employee pay and
medical benefits.
FINANCIAL ASSISTANCE
Guidance on applying for financial assistance and
grants, as well as engaging with medical advocates.
OTHER SUPPORT RESOURCES
Education about cancer research treatments, nursing,
social support, finding medications, and locating other
advocacy and comprehensive support resources.
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MCKESSON FY24 IMPACT REPORT
‘We Take Care of Each Other’
In 2019, Brandy Hulsey learned she had stage II breast
cancer. During her aggressive treatment, including
chemotherapy, radiation, a double mastectomy and
breast reconstruction, Brandy remained optimistic.
Crucial to her optimism was the support of Texas
Oncology, a member of The US Oncology Network, and
The McKesson Cause Network, which provided her
and her caregivers with compassion and quality care.
Now, Brandy is facing lifelong cancer management
with hope and gratitude, and gives back through
The McKesson Cause Network by mentoring others
affected by cancer — whether personally or by caring
for a family member.
SPOTLIGHT
“It’s humbling and amazing
to know
that McKesson is not only invested in
my journey, but is also supporting such
a special platform to help employees
care for and encourage each other.”
BRANDY HULSEY
Vice President, Corporate Accounts Payable at McKesson
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Meaning: Employee
engagement and
purpose
We set out every day to do meaningful work and
foster a positive culture where our employees can
grow and share their ideas.
In FY24, we helped link employees to our company’s
purpose by offering ongoing employee feedback
mechanisms, an engaging onboarding experience,
career development programs, and innovative and
flexible benefits.
Promoting shared behaviors through ILEAD
Our vision for a healthier world is shared by our employees, who
bring our purpose of Advancing Health Outcomes for All® to life
every day. Our ILEAD leadership principles of Inspire, Leverage,
Execute, Advance and Develop are intended to bring out our best
selves as we seek to make a meaningful and lasting difference.
INSPIRE
Set strategy and
drive innovation
With an inspiring vision,
McKesson employees
rally together to engage
their creativity to build
innovative solutions
that drive the long-term
success of McKesson and
our customers.
LEVERAGE
Champion an enterprise
mindset and be open
and candid
Our employees are at the
center of our success. We
encourage collaboration
across boundaries and
communicate with
transparency to create the
best possible solutions for
the company.
EXECUTE
Deliver results
We empower our
employees to engage
the right people and
align talent, resources
and systems needed to
achieve our goals.
ADVANCE
Be courageous and
lead change
Courage is required
to take risks and face
challenges head on. We
encourage employees
to take on challenges
and risks, while having
the resilience to move
forward in uncertain or
difficult situations.
DEVELOP
Grow self and others,
and build an inclusive
culture
We actively invest in
career development and
inclusively build the talent,
capabilities and culture we
need for the future.
ILEAD Leadership Principles
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Seeking actionable feedback
through Employee Opinion and
Manager Quality Surveys
We seek employee feedback through annual and
mid-year Employee Opinion Surveys, which use
industry benchmarks to assess our employees’ levels
of engagement, commitment and overall satisfaction.
We then use the survey results and feedback to inform
action plans to enable us to improve and realize our
aspiration to be the best place to work in healthcare.
We also obtain feedback through our annual Manager
Quality Survey, which is an opportunity for employees
to provide insights to help their manager become more
effective, grow professionally and build the leadership
skills necessary to create a positive, productive and
inclusive workplace at McKesson.
We are proud that the vast majority of our employees,
including those on the frontline, participate in all of
our surveys, giving us confidence that the results are
representative of the full voice of our people.
Investing in employee onboarding
with The McKesson Experience
To help new employees immerse themselves in our
company, our culture and the role McKesson plays
in healthcare, in FY24 we introduced McKesson
Experience, an orientation event that plays an
important part of onboarding many of our employees
and increasing their sense of belonging at McKesson.
As a part of our flexible work strategy to collaborate
and connect with a purpose, the two-day event takes
place on a rolling basis across several of our hub
locations in the U.S. and Canada.
Employees who participate in this onboarding
experience gain a better understanding of what it
means to be part of McKesson by engaging in culture
breakouts, career-building and wellness sessions,
site tours and more. They also develop a deeper
understanding of our I²CARE values and ILEAD
leadership principles, along with taking part in a
community impact activity and learning about our
employee resource groups.
In addition to many benefits, including cultivating
lasting career connections, participants also learn
about the customers and communities we serve and
how McKesson is working to address some of the
most pressing healthcare challenges of our time.
Time to Volunteer
As an industry leader shaping the future of health,
we are committed to making a positive impact in the
communities where we live and work. We encourage
our employees who want to volunteer their time to
give back to their communities. In April 2024, we
formalized our support through the launch of a new
Time to Volunteer program. Each calendar year, this new
program gives many of our employees paid time off to
choose to volunteer during their workday and support
meaningful causes that are of personal importance to
them. Eligible part-time employees receive four hours of
paid time off per year and eligible full-time employees
receive eight hours.
SPOTLIGHT
Your Day, Your Way
The health and well-being of our
employees matters to us. At McKesson,
we’ve made self-care a little easier with
Your Day, Your Way, our annual day of
wellness. This day is intended to support
the physical and emotional health of our
employees, as well as show McKesson’s
appreciation for all our people do every
day to improve care in every setting — one
product, one partner, one patient at a time.
We encourage each employee to support
good physical and mental health on Your
Day, Your Way by doing whatever makes
the most sense for them — whether
that’s taking the opportunity to unplug
and disconnect, giving back to the
community through volunteering, finding
opportunities to connect with others,
learning a new skill or other activities.
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Belonging:
The power of inclusion
Our vibrant and inclusive culture welcomes everyone to bring their authentic self to work
every day.
We are strengthened by differing perspectives, experiences and skills, and prioritize
belonging as we strive to be the best place to work in healthcare.
Enhancing inclusion and awareness
with I
2
CARE
Our people make McKesson an exceptional place that
has earned the reputation as a trusted partner to our
customers and their patients.
Guiding and unifying our employees and our company
around our purpose of Advancing Health Outcomes
for All® are our I²CARE values: Integrity, Inclusion,
Customer-First, Accountability, Respect and Excellence.
We aim to raise the bar on employee behavior and
expect employees to embed these values into their
everyday actions and decision-making.
Foundational to all that we do and who we are as a
company, our I²CARE values remind us that the way we
do business is just as important as the business itself.
INTEGRITY
We do what’s right
Demonstrate honesty. Keep commitments.
Behave consistently.
INCLUSION
We embrace and accept each other as we are
Be curious, inquisitive and open. Demonstrate
inclusive behaviors. Consistently listen, reflect
and grow.
CUSTOMER-FIRST
We succeed when our customers succeed
Understand and educate customers. Build
relationships and get feedback. Take action to
meet needs and concerns.
I
2
CARE Values
ACCOUNTABILITY
We take personal responsibility
Take responsibility for actions. Set and clarify
expectations. Encourage others to take responsibility.
RESPECT
We treat people with dignity and respect
Consider others’ self-esteem when working
collaboratively. Listen and respond with empathy.
Be inclusive, offer help and support.
EXCELLENCE
We insist upon quality
Ensure high-quality outputs. Follow standard
processes. Aim high.
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Enhancing our workplace
environment and culture for people
with disabilities
There are far more people in the world living with
disabilities than many realize. In fact, one in every four
adults in the U.S. has a disability, according to the U.S.
Department of Health and Human Services.
Our Ability ERG brings together employees with visible
and unseen disabilities, as well as allies and employees
caring for loved ones with disabilities.
Supporting belonging through
employee resource groups
One important way we nurture belonging at
McKesson is through our 11 employee resource
groups (ERGs). These voluntary, employee-led,
company-sponsored networks aim to make a
positive impact on our employees’ lives.
Our ERGs focus on helping employees make
authentic connections, share and affirm their
identities and perspectives, showcase leadership
skills and find ways to nurture belonging and
empowerment across our company.
Our ERG ecosystem consists of 60+ chapters
and over 8,000 unique employee members.
We view the current level of enrollment in our
ERGs as robust, and expect them to continue to
expand in the years ahead, with growth fueled in
part by our annual ERG leadership training.
In FY24, we hosted our third-annual ERG
Summit, open to all employees. This four-day
event included multiple fireside chats, speakers
and various ERG Summit Awards.
“Any one of us
can become affected by
a disability at any time. I’ve been blessed
to have support and encouragement from
family and friends, and I want to give back
to others.”
TERRY BLACK
Chair of the local chapter of the Ability ERG in The Woodlands, Texas, and
Senior Health Information Scientist, Ontada
Our ERGs
ABILITY
Disability
Community
WE
Women
Empowered
UNITY
Uniting Native
and Indigenous
Tribes with You
PRIDE
Advancing
LGBTQIA+
inclusion
PALMa
Professional
Association of
Latinos at McKesson
PAVE
Pan-Asian
Voices for
Excellence
MMRG
McKesson Military
Resource Group
MENA
Middle Eastern
and North African
EP
Emerging
Professionals
BE
Black Excellence
— be empowered
ARC
An open cultural
resource for all
Ability collaborates with other ERGs — such as the
McKesson Military Resource Group — to highlight
issues affecting multiple McKesson communities. Terry
Black, chair of the local chapter of the Ability ERG in
The Woodlands, Texas, credits McKesson for creating a
culture that values diversity and an environment where
employees with disabilities can thrive.
Terry was born with spina bifida, a condition that
affects the development of the spine. At the time, the
prognosis was bleak for babies born with this disorder,
but Terry defied the odds. Eventually, he earned
degrees in engineering, physics and computer science
and joined McKesson in 2014 to support our data and
analytics efforts.
In 2019, Terry was diagnosed with non-Hodgkin’s
lymphoma, a type of blood cancer. Shortly after
completing chemotherapy treatment, he joined
Ontada, McKesson’s oncology data insights and
technology business, as a senior health information
scientist — a role that has significant meaning for him
as a cancer survivor.
SPOTLIGHT
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SPOTLIGHT
McKesson’s digital
enablement journey
McKesson, recognized as one of Fortune’s 2024
Most Innovative Companies, is committed to
improving health outcomes, advancing our
capabilities and driving innovation through digital
enablement and the use of data.
McKesson’s digital enablement journey is focused
on helping employees develop a digital mindset by
elevating their digital literacy and embracing the
opportunities that digital technologies have to offer
in efficiency, growth and performance.
With the advancement of artificial intelligence (AI)
and generative AI (GenAI) technologies, McKesson
believes digital enablement can provide better
experiences for our employees and customers.
As we have begun to provide training to our
employees on these topics, we have quickly started
to see new skills come to life to advance core digital
enablement workstreams at the enterprise level and
various projects across our business units
and corporate functions.
By educating our people on the benefits of digital
enablement, McKesson is unlocking meaningful
value for our employees and external stakeholders.
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We know that our purpose of Advancing Health Outcomes for All® is, and will remain,
a team effort. That’s why our businesses proactively engage with our partners —
biopharma companies, care providers, pharmacies, manufacturers, governments and
others — to deliver insights, products and services that positively impact health.
We are strategically investing in our growth priorities of oncology and biopharma
services while strengthening our core distribution businesses. Working together, we
navigate today’s evolving healthcare landscape and make a lasting difference for those
who depend on us.
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More information about our lobbying
activities, policies and expenditures is
available on
our website
.
committed to applying that knowledge to serve
providers and improve patient outcomes.
Drug shortages are an ongoing, industry-wide issue,
and while rare, even the smallest disruption can impact
patients and care.
Collaboration across the public and private sectors is
vital to strengthening supply assurance. McKesson
Government partnerships
As a global healthcare leader, we are
subject to a wide range of complex and
evolving regulatory requirements.
Our
commitment to regulatory excellence and
compliance extends to all aspects of our
operations and is a foundational discipline of
our business strategy. Offering our unique
perspective and expertise, we collaborate
with policymakers, elected officials and
other stakeholders for the benefit of
patients everywhere.
We also seek to educate elected and
appointed officials about the solutions
McKesson offers to enhance patient safety,
reduce costs and improve healthcare delivery.
We prioritize transparency and accountability
in all political engagement activities.
One of our public policy efforts:
Combatting drug shortages
For nearly two centuries, McKesson has worked to
ensure patients have access to the medicines they
need. We bring deep expertise in pharmaceutical
distribution, supply chain analytics and market access
dynamics to our public policy efforts — and we remain
launched a
microsite
in FY24, providing stakeholders
an additional forum to learn more about our advocacy
and partnerships to address drug shortages.
Additionally, our white paper on the root causes of drug
shortages and recommended solutions, available on
the microsite, provides a deeper look at the intricacies
of the challenge and pragmatic solutions.
SPOTLIGHT
Advocating for patients
before Congress
In February 2024, Gene Cavacini, Senior
Vice President and Chief Operating
Officer for U.S. Pharmaceutical, delivered
testimony on behalf of McKesson to the
United States House Committee on Ways
& Means.
The hearing aimed to shed light on
supply chain dynamics and offer policy
recommendations.
Gene, joined by five other witnesses,
helped to advocate for policy
recommendations, including:
•
Enhancing the reimbursement and
marketing access landscape
•
Incentivizing supply preservation
programs
•
Improving supply chain visibility
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Government partnerships
to advance oncology research
SUPPORTING THE CANCER MOONSHOT
The objective of the Cancer Moonshot is to halve the rate of
cancer deaths and improve the lives of people with cancer in
the U.S. over the next 25 years. As part of this collective effort,
McKesson’s oncology data insights and technology business,
Ontada, is collaborating with other healthcare leaders, electronic
health record vendors and government officials to harness data-
driven solutions to enhance cancer treatment outcomes.
One of the key initiatives from the Cancer Moonshot is to
accelerate the cancer data standards adoption needed for the
Enhancing Oncology Model (EOM). EOM is a new cancer care
model developed by the Centers for Medicare and Medicaid
Services to lower costs, bring effective patient-centered care
and improve outcomes for those facing a cancer diagnosis.
Ontada was one of the first to pledge to begin adoption of the
EOM data elements and is working to deliver those elements in
time for the first EOM data reporting deadline in October 2024.
PARTNERING WITH THE FDA ON RARE CANCER RESEARCH
In FY24, Ontada was awarded a contract with the U.S. Food
and Drug Administration (FDA) to study the natural history of
certain rare cancers and advance the use of real-world data in
the U.S. community oncology setting. The goal of the study is
to enhance understanding of how patients with rare cancers
present and are treated in order to inform drug development
for life sciences companies and the FDA. Ontada’s data
footprint will allow the FDA to further its understanding of
patient populations with rare cancers that historically have
been underrepresented in studies.
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Distribution access to supplies,
services and solutions
McKesson Medical-Surgical Solutions partners
with our customers to provide products, services
and expertise to help improve patient care as
it shifts from in-facility to in-home. Through a
network of distribution centers across the U.S., we
offer more than 245,000 products from national
brand manufacturers and McKesson’s own brand
of high-quality products, serving more than
285,000 customers.
We deliver for our customers, so they can deliver
and care for their patients, and we never lose
focus on helping customers improve patient and
business outcomes.
Improving access,
affordability and adherence
SPOTLIGHT
Bringing access to one patient
at a time: Noah’s story
When doctors told Tanasha she needed
to bring her four-year-old son Noah across
the country for an open-heart surgery to
treat his rare heart condition, she faced a
daunting problem: getting Noah from their
home in Spokane, Washington, to Boston,
Massachusetts, given that his condition
couldn’t tolerate air travel.
A 3,000-mile drive in an RV seemed like
the only solution. But how would she attend
to his delicate medical needs during the
long journey? Noah would need a dozen
tracheostomies during the trip, among other
demands, which required accessing a vast
array of medical supplies.
As a leading healthcare services company,
we have a long history of managing medical
and pharmaceutical supply chains and
offering flexible and agile responses.
McKesson’s Medical-Surgical Solutions
committed to providing Noah’s supplies and
handling the intricate logistics. We were able
to deliver the right items to Noah during the
13-day trip to Boston.
Today, Noah is, as Tanasha puts it, “a happy,
fun, goofy little boy.” McKesson remains
grateful to be able to support patients, families
and providers, offering hope and solutions for
the health challenges so many face.
McKesson applies its expertise to initiatives and services designed to help patients with
access, affordability and adherence.
We also seek partnerships to understand and address
the many factors that create barriers and hinder patient access to the medications they need.
These factors include drug affordability, drug shortages and access to prescribing clinicians,
pharmacists and pharmacy services.
Click here
to learn more and
watch a video about how
McKesson helped Noah
when he needed it most.
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Patient access through
community pharmacies
Pharmacists are one of the most accessible healthcare
providers for the majority of Americans. In fact,
patients in the U.S. visit their community pharmacist
twice as often as they visit primary care physicians.
McKesson helps provide access to community-based
pharmacist care in a variety of ways.
WORKING WITH HEALTH MART PHARMACIES
Health Mart, a McKesson pharmacy franchise program,
supports approximately 4,500 independently owned
community pharmacies in the U.S. Sixty percent of
Health Mart pharmacies are in high social vulnerability
areas, as measured by the Centers for Disease Control
and Prevention’s Social Vulnerability Index score.
Pharmacies can be integral in advancing disease
screening, testing, vaccine administration and other
care in medically underserved communities.
Community pharmacies can also impact patients
beyond direct health services. For example, McKesson
and Health Mart are working together to support
#NourishMyHealth, a collaboration among the National
Association of Chain Drug Stores and leading health
organizations to encourage eating in ways that can
help reduce disease risks.
COMMUNITY HEALTH WORKER TRAINING
McKesson is facilitating community health worker
training for pharmacy staff to help community
pharmacies provide additional resources to patients in
vulnerable or medically underserved communities.
In FY24, in partnership with an accredited provider of
continuing pharmacy education, McKesson supported
120 scholarships for certified pharmacy technicians
to participate in a 16-week community health worker
training program.
Once trained, these professionals are better equipped
to help patients navigate the healthcare landscape and
find resources for social determinants of health, and to
conduct community outreach and health education.
NEW COMMUNITY PHARMACY PROJECTS
Through our micro-access pharmacy project,
McKesson is helping fund new pharmacies in existing
Federally Qualified Health Centers. In FY24, McKesson
selected two centers in Texas and one in Colorado
as existing locations helping at-risk, underserved
populations gain better access to essential healthcare
where McKesson would help add pharmacy services.
In FY24, McKesson also launched a community
pharmacy project intended to help licensed
pharmacists own and operate independent community
pharmacies in areas without storefront pharmacies.
A pilot location in Ohio — Altev Community Pharmacy
— opened in FY24. Read more about this project on
the next page.
Click here
to learn how McKesson is
helping improve access to care through
micro-access pharmacies.
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SPOTLIGHT
Altev Community Pharmacy
Altev Community Pharmacy in Avondale, a
neighborhood in Cincinnati, Ohio, originated from a
McKesson project to improve access to care in areas
without storefront pharmacies by helping to facilitate a
path to independent pharmacy ownership.
McKesson assessed communities across the nation
before selecting Avondale as its pilot location. Through
an objective screening process, McKesson helped
expedite a path to independent pharmacy ownership for
Dr. Emmanuel Ayanjoke, a licensed pharmacist focused
on building strong ties with the local community.
With the support of McKesson, Dr. Ayanjoke and
Altev Community Pharmacy are now proudly serving
Avondale and its residents and helping tackle
healthcare disparities.
Click here
to learn more
and watch a video about
Altev Community Pharmacy.
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McKesson’s Prescription Technology Solutions
(RxTS) seeks to break down barriers — like financial
constraints or navigating complex insurance
requirements — to enhance patient outcomes.
RxTS’s suite of comprehensive solutions spans across
the entire patient journey, including medication
access and affordability, prescription decision support,
prescription price transparency, benefit insights and
dispensing support services, as well as third-party
logistics and wholesale distribution support. With
connections to most electronic health record systems,
over 50,000 pharmacies, approximately 950,000
providers, most pharmacy benefit managers and
health plans, RxTS has supported over 650 biopharma
brands representing most therapeutic areas. Through
industry connections and the ability to navigate the
healthcare ecosystem, RxTS helps increase speed to
therapy and reduce prescription abandonment.
Investing in startups to advance
patient outcomes
Researchers are pioneering therapies today that will
hopefully cure diseases tomorrow. At McKesson,
we are investing resources to accelerate the very
breakthroughs that will help people lead longer
and healthier lives.
Our venture capital arm, McKesson Ventures,
provides financial support for startups that are
actively improving access and align with our
purpose of Advancing Health Outcomes for All®.
To learn more about our
active investments and
the bold ideas we are
supporting, visit
McKesson Ventures
.
Creating prescription access,
affordability and adherence solutions
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More than 18 million people in the U.S. are living with
cancer, according to the National Institutes of Health’s
National Cancer Institute. As we strive to make a world
without cancer a reality, McKesson continues to work
to help oncologists provide these patients with the
treatment, care and support they need.
We provide access to our resources, best business
practices, experience, infrastructure and support to The
US Oncology Network, our association of independent
oncology practices. The US Oncology Network is
one of the nation’s largest networks of physician-led,
integrated, community-based oncology practices
dedicated to advancing high-quality, evidence-based
cancer care. The community-based oncologists and
cancer care centers that are members of The US
Oncology Network offer patients access to local
treatment options and deliver cutting-edge cancer
care at over 600 locations in 31 states. Practices in The
US Oncology Network can employ a value-based care
model that expands access to services to underserved
populations by eliminating economic, social and
environmental barriers to treatment.
Improving patient outcomes and
increasing diversity in clinical trials
Clinical trials can advance the state of medicine and
pave the way for new treatments, bringing hope,
better care and improved outcomes to patients
who participate.
McKesson is expanding access to potentially lifesaving
oncology medication and clinical trial opportunities
at the community level through our joint venture with
HCA Healthcare, which has combined US Oncology
Research with Sarah Cannon Research Institute (SCRI)
under the SCRI brand. Over 3,000 cancer patients who
participated in clinical trials of investigational therapies
in FY24 did so through a clinic associated with SCRI.
More than 80% of newly approved cancer treatments
by the FDA were studied in the SCRI network.
Statistics show that racial and ethnic minorities
continue to be underrepresented in cancer clinical
trials. Increasing diverse participation in trials can
improve the quality of trials and the applicability of their
findings. We’re using our subject matter expertise and
technology to better understand and mitigate some
of the hurdles that patients can face in enrollment
and ongoing participation in trials. To help reduce
health disparities and enhance trial representation,
we are advancing economic opportunities to foster
participation for individuals from all backgrounds.
Health equity advances in oncology
Cancer touches the lives of people of
all ages, genders, locations, races and
ethnicities.
These factors, however, along
with other social determinants of health, can
impact a patient’s treatment.
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Advancing science through studies
and thought leadership
Our businesses provide critical research, insights,
technologies and services to our partners, and enable
McKesson to help accelerate clinical research and
development, while also delivering insights that inform
and improve patient care. This also includes our work
with government partners to advance oncology
research, discussed
here
.
HOPE STUDIES
Ontada’s Health Outcomes Powered by Evidence
(HOPE) Studies enable eligible providers in The
US Oncology Network to investigate unanswered
questions about health disparities in cancer care. The
goal of HOPE is to combine the practice knowledge of
community oncologists with Ontada’s data-analytical
expertise to gain insight into healthcare disparities
through real-world evidence.
HOPE’s first major finding, shared by Ontada at
the American Society of Clinical Oncology (ASCO)
Annual Meeting in FY24, was that patients with
triple-negative breast cancer treated in a U.S.
community oncology setting were significantly less
likely to have received genetic testing if they were
Black, had lower socioeconomic status and resided
in southern or midwestern geographic regions.
This result demonstrated HOPE’s power to identify
socioeconomic and other factors that may impact
care and outcomes among cancer patients.
ADVANCING DATA STANDARDS FOR SOCIAL
DETERMINANTS OF HEALTH
The Social Determinants of Health Working Group
is a cross-stakeholder research partnership to help
uncover which data or determinants can be reliably
used in the course of ongoing care to provide actionable
information and meaningful benefit to patients. Race,
ethnicity, socioeconomic factors and geography — social
determinants of health — can potentially impact cancer
risks, quality of care and outcomes.
The working group brings together a range
of providers, payers, vendors and community
organizations with the goal of developing consensus-
driven data standards to support the collection, use
and exchange of data to address social determinants
of health and advance health equity.
SPOTLIGHT
INVIVA
McKesson Canada’s INVIVA, Canada’s largest private infusion network,
has launched an innovative pilot program to address the impact of social
determinants of health on oncology care by supporting patients’ access to
care and therapeutic treatments.
In FY24, two INVIVA clinics in Ontario participated in the pilot program,
which leverages community partnerships to help provide patients with
transportation to and from appointments, as well as weekly produce, for up
to a year while receiving treatment.
Through the increased number of touchpoints, INVIVA hopes the additional
support will better the patient experience and improve patient outcomes.
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McKesson’s Enterprise Supplier Diversity Program
aligns with our purpose of Advancing Health
Outcomes for All® by fostering inclusivity and growth
opportunities for suppliers. The program seeks to
promote equitable consideration for opportunities for
qualified businesses and support the economic growth
and development of the communities in which they
operate and serve.
In doing so, we are shifting to a more proactive
alignment with our enterprise strategy. To facilitate
this shift, we have established a Supplier Diversity
Steering Committee and identified other key leaders to
represent sourcing across our businesses and increase
program recognition and opportunity awareness, while
maintaining our strategic priorities.
Our focus through this program is on the growth of
supplier partners that are small and disadvantaged,
owned by veterans or women, or located in historically
underutilized business zones, as designated by the
U.S. Small Business Administration. McKesson is a
Inclusive approach to
supplier relationships
federal prime vendor contractor and our supplier
diversity program complies with federal contract-
established requirements related to the use of small
and diverse businesses.
In FY24, we have prioritized the growth of existing
supplier partners with a positive track record of
performance. We have also implemented additional
technologies to make it easier for new, small suppliers
to engage with McKesson.
We are enhancing our ability to support our aspirations
and those of our partners through our supplier
diversity program. These intentional and meaningful
partnerships ultimately create positive outcomes for
our businesses, as well as our customers, their patients
and our communities.
As a company serving a diverse customer base,
we seek to source high-quality products
and services from a wide range of suppliers and contractors.
The work McKesson does
related to supplier diversity is another illustration of our commitment to inclusion.
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We’re all about creating healthier communities. Through partnerships with philanthropic
and other organizations, and the generosity and engagement of our employees, we’ve
found many ways to improve care for those who need it most.
Whether by providing medical supplies to underserved areas or supporting programs
that promote wellness and education, we believe it’s our responsibility to serve people
and support causes that align with our purpose. By leveraging our resources and the
dedication of our people, we’re able to make a positive impact and create lasting change
in the communities we serve.
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Every year, more than 1.9 million people
in the U.S. hear the sobering phrase: “You
have cancer.”
In an instant, everything
changes, and the repercussions of a few
simple words affect countless lives in
unimaginable ways. As an impact-driven
organization, McKesson is committed to
leading with purpose and making a difference
for the millions of people who are living with
cancer today.
Supporting
the fight
against cancer
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Brian Tyler, CEO, McKesson,
presenting
a
$200,000
donation on behalf of the
company to support the
ACS Hope Lodge® program
to Jeff Fehlis, Executive Vice
President, South Region of
the American Cancer Society.
SUPPORTING ACS FIT2BE CANCER FREE
CHALLENGE AND HOPE LODGE® PROGRAMS
For the fifth consecutive year, McKesson joined in the
Fit2Be Cancer Free Challenge benefitting ACS and the
Canadian Cancer Society. In the Challenge, Fortune
500 companies compete to take as many steps as
possible while raising awareness for cancer prevention
and treatment. Nearly 4,700 employees participated in
April 2024, helping McKesson to finish first in both the
number of total steps (533,994,178) and total distance
(238,910 miles). For every employee registration,
McKesson also contributes $10 to the relevant cancer
society on the employee’s behalf.
In addition, McKesson continues to provide support
to ACS Hope Lodge® and the patient lodge program
of the Canadian Cancer Society. As a home away from
home, Hope Lodge® provides a community of support
and a free place to stay for people facing cancer and
their caregivers when their treatment is far away.
PREPARING THE NEXT GENERATION OF
ONCOLOGY PROFESSIONALS
In FY24, the McKesson Foundation awarded $1.5 million
over three years to support ACS’s Summer Health
Experience, a two-week program that introduces high
school students to career and leadership opportunities
in the field of oncology. Participants learn about careers
across the cancer continuum, including research, clinical
care and patient support.
ACS ST. GEORGE NATIONAL AWARD
In April 2024, McKesson CEO Brian Tyler was honored
by ACS with the 2023 St. George National Award for his
leadership and commitment to the fight against cancer.
Partnership with the American
Cancer Society
For more than 40 years, we’ve partnered with the
American Cancer Society (ACS) by contributing to
health equity initiatives, cancer research, screenings,
prevention and care.
ACS LEADERSHIP IN ONCOLOGY
McKesson and The US Oncology Network are proud
supporters of ACS’s new program, Leadership
in Oncology Navigation, a national training and
credentialing program that works with oncology
organizations to standardize high-quality, expert care
navigation for patients. Oncology navigation is a widely
recognized intervention in addressing cancer care
disparities and helps individuals, caregivers and families
navigate the complexities of their cancer journey,
including cancer screening, diagnosis, treatment and
survivorship. The program seeks to achieve consistent,
reliable cancer navigation nationwide through
standardization of training based on best practices.
THE NEW YORK STOCK EXCHANGE (NYSE) GLOBAL
GIVING CAMPAIGN
NYSE’s annual Global Giving Campaign provides listed
companies the opportunity to highlight their efforts to
help those in need and raise awareness for a charitable
organization of their choice. McKesson chose to
share our partnership with ACS, including unveiling a
commemorative ACS ornament at the 100th annual
Tree Lighting ceremony, located in front of the NYSE.
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We empower our employees to make a difference, both within their own communities
and in support of causes that matter the most to them.
We strive to create an environment
where everyone can make a positive impact and are incredibly proud of the generosity and
engagement displayed by our employees. By working together as one team, we can pool our
resources, knowledge and expertise to maximize our reach and drive lasting change in the
communities that need it most.
Employee engagement with our communities
Supporting childhood oncology
patients in Canada
Campfire Circle makes a summer camp experience
possible for children who are battling cancer by
being the only camp in Canada that offers onsite
chemotherapy. Employees at McKesson’s INVIVA are
proud to participate and support the camp each year,
including efforts to prepare for the arrival of campers —
like painting facilities or hauling canoes.
When we learned that the camp had a critical lack
of nurses during the summer of FY24, McKesson
decided to jump in and help. Thanks to our
community partnership, we were able to send
four INVIVA nurses to help alleviate the burden of
cancer for those at the camp, extending a hand of
friendship, support and healing.
SPOTLIGHT
Community Impact Days
Employees in the U.S. and Canada joined in celebrating
McKesson’s 25 years of Community Impact Days in FY24, our
largest company-wide employee engagement event.
Honoring the theme: Cancer Awareness, Prevention and Support,
employees took time to recognize the many ways McKesson
supports individuals with cancer. They also participated in projects
that help address cancer prevention, provide comfort and support
to cancer patients, and raise awareness around the potential
impacts social determinants of health, environmental factors and
healthcare disparities have on cancer.
To better enable continued
employee engagement
throughout the year, we also
encourage employees to
take advantage of our new
volunteer program
which
provides paid time
to volunteer.
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McKesson Care Ambassadors
The success of company-wide engagement events
like Community Impact Days is amplified by the
commitment and drive of employees who are
McKesson Care Ambassadors. Our Care Ambassadors
volunteer to support local community impact
activations and encourage participation among other
employees. Throughout April of FY24, McKesson
Care Ambassadors organized and supported various
employee activities for Earth Month, including
providing educational tips on ways to reduce
pollution, manage resources more wisely and increase
stewardship of our environment.
McKesson Advocacy Ambassadors
We’re committed to advocating for legislative solutions
that support our business and benefit patients and
their communities. We seek to make a difference by
educating elected officials on the vital role McKesson
plays in improving health outcomes.
The McKesson Advocacy Ambassador Program
gives interested employees the chance to share
their passion for delivering better health with elected
officials. Employees who volunteer their time through
the program are given the opportunity to forge new
relationships and educate their elected officials on key
public policy issues.
Our nonpartisan McKesson Votes program provides
employees who are eligible to vote in the U.S. with
election education resources.
SPOTLIGHT
CoverMyQuest
CoverMyQuest is an annual initiative that awards employees with mini grants of $5,000 to help
them pursue their passions, once-in-a-lifetime adventures and more.
In FY24, as one of the 30 winners of these grants, Denee Lees, Supervisor, Health Services -
Patient Support Center Operations, was able to bring three generations of her family to serve as
medical interpreters on a mission trip in Guatemala.
Another winner, Storm Estes, Account Coordinator, secured funds to create care packages for
women who have suffered from domestic abuse and domestic violence.
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SPOTLIGHT
Parkland Health
In 2024, the Foundation awarded a $500,000 grant to
Parkland Health, expanding its long-term partnership with
the Dallas-based public health system.
The grant, which supports colorectal care for underserved
communities, will bring flexible sigmoidoscopy to Parkland
Hospital. Flexible sigmoidoscopy is a less-invasive
alternative to a colonoscopy and can help increase cancer
screening rates, as well as provide important surveillance
for rectal cancer patients during and post-treatment.
The Foundation also financially supports Annie’s Place, a
childcare center at the hospital that provides free daycare
for the children of patients receiving medical attention at
Parkland. The grant helps fund specialized staff, including
a registered play therapist, who assists children and their
families and can connect those who may need additional
services with specialized resources.
The mission of the McKesson Foundation (the Foundation) is to remove barriers to quality
healthcare across North America, with a special focus on vulnerable and underserved
communities.
A 501(c)(3) organization, the Foundation is more than 80 years old and strives
to advance health equity. Today, the Foundation’s expanding portfolio of nonprofit partners
advance its work from many different angles, ranging from reducing the burden of cancer, to
preparing tomorrow’s healthcare workforce and bolstering crisis response.
The McKesson Foundation
Reducing the burden of cancer
One of the Foundation’s priorities is supporting
organizations dedicated to improving care, outcomes
and equity in cancer prevention, screenings and
treatment. Studies show that race, ethnicity, health
insurance status and income, among other factors, can
affect how early a patient’s cancer is diagnosed and
treated, as well as the patient’s financial burden.
Through both financial contributions and partnerships,
the Foundation is working to reduce the risks of getting
cancer and address socioeconomic barriers to early
diagnosis and appropriate care.
The Foundation aims to bring everyone closer to the
day when fewer people get cancer, and those with
cancer benefit from earlier diagnosis and better, more
accessible treatment.
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Preparing tomorrow’s
healthcare workforce
Studies indicate increasing the diversity of clinicians
and other healthcare practitioners can improve
patient outcomes. The Foundation supports
initiatives that seek to close the gap between diverse
representation among the general population and
among healthcare practitioners. Patients report that
having a healthcare practitioner of a similar racial or
ethnic identity is important to them, and studies show
that patient-provider concordance can also improve
patient health outcomes.
To help address this challenge, the Foundation is
beginning with a critical profession: pharmacists, where
the current demographics are not representative of
those of the broader U.S. population. The Foundation
has made multi-year grants to five pharmacy schools
in the U.S. and recently expanded its grant footprint to
include four pharmacy schools in Canada.
Accelerating crisis response
One of the Foundation’s top philanthropic priorities is
accelerating crisis preparedness and disaster relief.
When emergencies strike, our nonprofit partners are
quick to put in place resources and services to help
individuals and communities with essential relief such
as meals, shelter or medicines
The Foundation also provides funding to food banks
that can provide regular, nutritious meals to children,
families and seniors in need. The Foundation supports
central food banks in four North American cities,
helping them ensure that more food can be distributed
to the communities they serve.
As a member of the American Red Cross Disaster
Responder Program, the Foundation backs the
program’s efforts to provide proactive funding needed
to deploy critical systems and supplies to communities
impacted by disaster. The Foundation also partners
with the Canadian Red Cross, Team Rubicon,
Americares, Direct Relief and World Central Kitchen,
furthering our commitment to disaster preparation,
mitigation, recovery and rebuilding.
SPOTLIGHT
Supporting disaster relief in Canada
The Foundation is a proud partner of the Canadian Red Cross Disaster
Response Alliance. Through our support for this alliance, we proactively invest
in emergency response, so that services and resources can be rapidly deployed
when disaster hits.
In FY24, the Canadian Red Cross provided critical help to the many people
impacted by the wildfires in British Columbia, Alberta, North West Territories and
Atlantic Canada during the most destructive wildfire season recorded by Natural
Resources Canada.
Our employees donated generously to support those efforts, and the McKesson
Foundation matching gift program doubled those donations. In addition,
McKesson Canada collaborated with the Canadian Red Cross and government
agencies to get essential medications to impacted areas.
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ANGELS FOR CHANGE
Angels for Change is a global organization
with a mission of ending drug shortages
through advocacy, increasing awareness
and supply chain resiliency.
TASTE PROJECT
Taste Project operates a nonprofit
restaurant in Fort Worth, Texas dedicated
to serving healthy meals to the food
insecure. The restaurant asks patrons in
need to pay only what they can afford, and
others to pay what they would typically pay
in a restaurant or slightly more.
JUNIOR ACHIEVEMENT PARTNERSHIP
Junior Achievement (JA) of Dallas is
introducing students to healthcare
careers as early as elementary school. The
nonprofit’s JA BizTown program in Garland,
Texas, connects classroom learning with
visits to a simulated town, which features a
Health Mart pharmacy branded storefront
and a McKesson distribution center.
McKesson Foundation partnerships
The McKesson Foundation continues to expand its range
of partnerships to support our purpose of Advancing
Health Outcomes for All® and help those in need in our
communities. The Foundation looks to its partners and their
projects to improve health and wellness and assist those
facing disasters, emergencies and other hardships.
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Supporting our employees through
philanthropic grants and giving
In addition to the many external causes it supports, the
Foundation also seeks to recognize both the needs and
generosity of our employees.
We know that employees, like anyone else, can face
hardships and disaster, and deserve support in their
times of need.
The Foundation also reinforces employees’ own
involvement in charitable causes.
MCKESSON FOUNDATION
TAKING CARE OF OUR OWN FUND
The Taking Care of Our Own Fund provides grants to
McKesson employees facing unexpected financial
hardships such as family emergencies or natural
disasters. The fund is supported by the Foundation
and donations from our company and employees, and
administered by the Emergency Assistance Foundation.
In FY24, the Foundation awarded 377 support grants,
totaling $1.1 million in grant funds.
MCKESSON FOUNDATION
SCHOLARSHIP PROGRAM
The Foundation’s scholarship program helps
employees’ dependents who plan to continue
education in college or vocational school programs.
The scholarships are for full-time study at an
accredited institution of the student’s choice,
renewable for up to three years.
In FY24, the program, administered by Scholarship
America, expanded the number of scholarships from
30 to 40 and increased the amount per scholarship
from $2,500 to $3,500.
MCKESSON FOUNDATION
MATCHING GIFTS PROGRAM
Employees support a wide range of causes
as volunteers and donors, and the Foundation
encourages these activities by doubling any
employee’s donation to an eligible nonprofit, up to
$2,500 per employee, per fiscal year. Employees can
also earn grants for nonprofits of their choice, for
individual and team volunteering.
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Our purpose of Advancing Health Outcomes for All® is inextricably linked with protecting the
environment in which we operate our businesses. As a global leader in healthcare, we recognize
and embrace our responsibility to protect our planet as we sustain our business and make an
even greater impact.
McKesson is actively shaping our impact on the planet by investing in projects and initiatives
that support the sustainability of our businesses and align with our near-term Science Based
Targets, such as reducing our greenhouse gas emissions, minimizing operational waste,
improving energy efficiency and increasing the use of renewable energy. We continue to
explore new initiatives, tools and opportunities for environmental actions that further our
purpose through impact.
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Our current targets
for reduction of greenhouse gas
emissions (GHG) were approved by the Science-based
Targets Initiative (SBTi) in our prior fiscal year, FY23,
when McKesson made our commitments to:
•
Reduce 50.4% of direct GHG emissions (Scope 1 and Scope 2
(operational)) by FY32 from a FY20 base year
•
Ensure 70% of McKesson suppliers, by spend covering purchased
goods and services, will have their own SBTi-approved GHG
reduction targets by FY27
SCIENCE-BASED TARGETS INITIATIVE (SBTI)
SBTi, a collaboration between CDP (formerly the Carbon Disclosure
Project), the United Nations Global Compact, World Resources
Institute and the World Wide Fund for Nature, drives climate action
in the private sector by encouraging companies to set targets to limit
global warming to 1.5°C. McKesson has joined companies across the
globe committed to setting and achieving targets to reduce GHG
emissions toward this goal.
GREENHOUSE GAS EMISSIONS (GHG)
In FY24, we have been progressing our efforts to reduce GHG
emissions across our value chain and to work with our suppliers in
connection with our SBTi targets. McKesson is taking steps designed
to reduce both our direct (Scope 1 and 2) GHG emissions and those
produced in our upstream and downstream value chain (Scope 3).
We also engage with the National Academies of Medicine and the
Association for Health Care Resource & Materials Management of
the American Hospital Association on reducing GHG emissions.
See
Overview in ESG Markers
section of this report for more fiscal year reported data and details about our assurance process and Scope 3 category-specific information.
See our Basis of Reporting — Greenhouse Gas (GHG) Emissions in ESG Markers section for more details about our GHG inventory and associated methodology.
Actual numbers will fluctuate as we re-baseline, adjusting for divestitures and acquisitions, per the Greenhouse Gas Protocol.
Greenhouse gas emissions reduction targets
NOTES TO THE CHART
FY20
FY23
FY24
Direct (Scope 1) GHG emissions
88,219
79,293
79,848
Indirect (Scope 2) GHG emissions – Location-Based
190,289
140,582
153,783
Indirect (Scope 2) GHG emissions – Market-Based
189,365
140,215
152,129
Gross Scope 1 + Scope 2 – Location-Based
278,508
219,875
233,631
Gross Scope 1 + Scope 2 – Market-Based
277,584
219,508
231,977
Gross Scope 3 emissions
25,426,174
28,980,752
32,569,160
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REAL ESTATE
Identifies GHG emission reduction opportunities through site selection,
construction and delivery, and decommissioning phases.
FLEET
Seeks ways to meet our GHG emission reduction targets through
alternative fuel vehicles, routing efficiency and driving behaviors.
OPERATIONS
Supports growth in operations through efficiency improvements that
reduce GHG emissions and waste.
DIRECT PROCUREMENT
Engages suppliers to seek their adoption of SBTi commitments in
support of our SBTi targets.
INDIRECT PROCUREMENT
Looks for ways to use indirect purchases to reduce emissions from
operations, real estate and other business units.
Progressing our GHG emissions reduction efforts
To help us meet our GHG emission reduction objectives, we assembled
a cross-functional group from our various businesses to serve as our
Environment Impact Council.
The council has established a series of McKesson working groups tasked with
engaging in a range of activities intended to move us towards reducing our GHG
emissions consistent with our SBTi targets and in a manner aligned with our
business growth strategies and priorities.
Currently, we have five working groups:
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In FY24, we developed our own green building and
design standards, curated to consider McKesson’s
specific operations and facility types, and identified
a sample set of locations where we are assessing
performance against these standards for projects in
FY25. We expect this process will help us establish
benchmarks for our existing portfolio as well as potential
goals for future sites. Although we may continue to
pursue WELL Building Standard® and Leadership in
Energy and Environmental Design (LEED) certifications,
we believe that following a customized approach will be
more impactful long term when considering the diverse
nature of our building types and operations. As a result,
we are transitioning towards tailored standards for how
we update existing buildings and design and construct
new offices and distribution centers.
Our real estate group has piloted digital-first facility
management in select distribution centers and
office sites. In FY24, we introduced computerized
maintenance management software with the goal of
Expanding sustainability through
innovation and green buildings
realizing energy savings through earlier indications of
when our assets need to be maintained or replaced.
Our building management system platform is designed
to create value by reducing energy waste, improving
issue response time and proactively identifying system
failures before they interrupt business operations.
Providing users with remote access, alarming and
comprehensive fault detection and diagnostic tools, this
platform can help optimize facility energy operations.
As McKesson finds ways to reduce how much energy
we use, decrease our carbon footprint and create a
better environment for our employees, we are upgrading
to LED lighting in many of our buildings.
In FY24, we continued to make LED lighting upgrades in
our buildings in Canada and parts of the U.S. We are now
quantifying and comparing energy use for buildings with
upgraded lighting to those without lighting upgrades in
order to determine GHG emissions impact.
Real Estate
One of the ways
we seek to be impactful is by integrating more sustainable design features
into our company campuses, distribution centers and other real estate holdings.
These
sustainable features enable us to enhance energy efficiency through innovative technology and
green building standards and create a better working environment for our employees.
SPOTLIGHT
Double platinum level environmental standards
certification for our Prescription Technology Solutions
(RxTS) campus
One of our RxTS commercial office buildings located in Columbus, Ohio
achieved both WELL and LEED Platinum certifications in FY24, a rare
accomplishment. LEED is a widely used green building rating system that
provides a framework for sustainable, efficient, low-carbon buildings. The
WELL standard provides a framework for buildings and organizations to
deliver intentional spaces that put human health and well-being first by
measuring and monitoring features of the built environment that impact
the quality of our air, water and light.
Together, these certifications show our commitment to helping our people
and our community live healthier lives and demonstrate our leadership in
transforming health and well-being in the spaces where we spend our time.
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Improving technology and efficiencies
across our transportation network
Fleet
As a distributor of pharmaceuticals and
other healthcare supplies and equipment,
we know the importance of a robust,
reliable and efficient transportation
network.
In FY24, we continued to explore
strategies to advance sustainability by cutting fuel
usage and decreasing carbon emissions across our
fleet. These strategies include leveraging advanced
routing software to enhance efficiency and taking
a range of actions to optimize load capacities and
minimize empty trips.
Vehicle optimization through
software solutions
Our use of route optimization software helps us
reduce fuel consumption and greenhouse gas
emissions and can improve the customer experience.
Optimization techniques we use include strategically
assessing the best type of vehicle for the intended
route, route distances and delivery order. Optimizing
truck capacity enables our delivery professionals to
deliver more volume while reducing the number of
vehicles on the road.
One example is the use by McKesson’s Medical-Surgical
Fleet of optimization software to provide analysis on
last-mile delivery routes, decreasing miles and reducing
fuel consumption. In FY24, as part of continuous
improvement, we evaluated additional options for
advancements in routing technology.
In FY24, McKesson Canada also added a driver
awareness software solution to monitor idle time and
track driver behavior with an aim to reduce fuel usage
and emissions and increase safety, while allowing
drivers the independence of maintaining their individual
driving preferences.
Ontario fleet gets a high-tech boost
McKesson Canada has focused on driving safety and
efficiencies in FY24 by incorporating 12 new, state-
of-the-art trucks into our fleet in Ontario. Equipped
with advanced collision mitigation technology and
fuel-saving features, these trucks not only drive the
transition towards more efficient and sustainable
healthcare logistics, but also prioritize the safety of our
drivers and cargo.
The addition of these 12 trucks to the fleet
demonstrates McKesson Canada’s commitment to
providing efficient and sustainable transportation
services. By integrating advanced safety features and
fuel-saving technologies, McKesson Canada aims to
enhance the overall delivery experience for customers
while minimizing our environmental impact.
McKesson Medical-Surgical Services
alternative fuel vehicle pilots
PROPANE PILOT
Conversion of current Transit Vans to
vehicles that can use either gasoline
or propane
ELECTRIC VEHICLE (EV) PILOT
Successfully piloted two makes
and models of EVs over two years
97%
Reduction of
GHG emissions
vs. conventional
24%
Reduction of
GHG emissions
vs. conventional
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Sustainability opportunities can be found
throughout our operations, from our
facilities and equipment assets, to the way
we package our products.
McKesson Plasma and Biologics services first began
using reusable containers for refrigerated drug
shipments in our prior fiscal year FY23.
In FY24, we have continued to use them to improve
performance, keep products cooler for longer and reduce
landfill. By extending the shipping lifespans of products,
the reusable containers also help avoid disruptions to
patient care in the event of shipping delays.
Other recent initiatives to make packaging more
sustainable include McKesson Medical-Surgical piloting
replacing the plastic fill used in boxes with an air pillow
made with recycled content, and introducing a recyclable
aluminum sustainable packaging solution into some
of our Foster & Thrive™ name brand over-the-counter
healthcare products.
Enhancing operations
with sustainable
packaging and
waste reduction
Operations
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Procurement
Renewable energy sourcing: Virtual
Power Purchase Agreements
McKesson’s Virtual Power Purchase Agreements
(VPPAs) can be a useful tool to help us procure more
energy from renewable sources in support of our GHG
emissions reduction strategy.
As of the end of FY24, we have entered into two VPPAs
with project developers in Texas for a total of 35
megawatts (MW).
The first VPPA, which was entered into in FY23, relates
to 15 MW from a solar facility in Liberty County, Texas.
Construction began on the facility in FY24, and it is
expected to become operational in FY25. The second
VPPA was entered into in FY24 for 20 MW with a solar
energy farm in Haskell, Texas, that is expected to begin
operations in FY27.
Using renewable
energy sourcing
to acquire emission
reductions
AI-generated graphic
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Overview
United Nations
Global
Compact
Our most recent Communication on Progress in response to the UN Global Compact can be found
here
.
ESG markers
Metric
1
McKesson
Overall
McKesson
Leadership
2
Women
62%
43%
People of Color
3,4
49%
28%
People with Disabilities
4.7%
3.9%
Veterans
4.1%
2.9%
LGBTQIA+ Community
2.7%
2.9%
Description
Metric
# of Part-Time Employees
~6,000
# of Employees in the U.S.
~35,000
# of Employees Worldwide
~51,000
Description
Metric
# of Part-Time Employees
~6,000
# of Employees in the U.S.
~35,000
# of Employees Worldwide
~51,000
McKesson Policies
Conflict Minerals Policy
Code of Conduct
1
The data for our Metrics is derived from our employee voluntary self-identification process as of March 31, 2024 and
represents our best estimate of representation at this time.
2
Represents our leadership at the vice president level and above.
3
Represents U.S. employees only because the data for Canada and Europe is not available.
4
People of Color includes the following self-identification categories: American Indian or Alaska Native, Asian, Black or African
American, Hispanic or Latino, Native Hawaiian or Other Pacific Islander, or Two or More Races.
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GRI Disclosure
GRI Requested Information
McKesson FY24 Responses
GRI 2: General Disclosures
Organizational profile
2-1
Organizational details
a. Legal name
b. Nature of ownership and legal form
c. Location of headquarters
d. Countries of operation
a. McKesson Corporation
b. McKesson Corporation is a publicly held Delaware
corporation that is listed on the New York Stock
Exchange under ticker symbol MCK.
c. Our headquarters are at 6555 State Highway 161, Irving,
Texas, U.S.
d. Operations in the United States, Canada, and Norway.
See Annual Report for information regarding European
divestitures.
2-2
Entities included in the organization’s
sustainability reporting
a. All entities included in sustainability
reporting
b. Differences between entities
included in consolidated financial
statements and entities included in
sustainability reporting (if applicable)
c. Approach used for consolidating
information (if applicable)
a. McKesson US and McKesson Canada included
c. See
McKesson at a glance
2-3
Reporting period, frequency and
contact point
a. Reporting period and frequency of
sustainability reporting
b. Reporting period of financial
reporting and explanation for
differences in timing with sustainability
reporting (if applicable)
c. Publication date
d. Point of contact for questions
a. Covering FY24. See
Our impact pillars
b. FY24 ending March 31, 2024. See
Our impact pillars
c July 2, 2024
d. Lauren Rodgers: Lauren.Rodgers@McKesson.com
2-4
Restatements of information
No restatements in FY24
2-5
External assurance
See
Independent Limited Assurance Statement
GRI Disclosure
GRI Requested Information
McKesson FY24 Responses
2-6
Activities, value chain and other
business relationships
See
McKesson at a glance
See
Business Segments
section within Item 1 of Form 10-K
2-7
Employees
a. Total number of employees and
breakdown of this total by gender and
region
b. Total number of:
i. Permanent employees, by gender
by region
ii. Temporary employees, by gender
by region
iii. Non-guaranteed hours employees,
by gender by region
iv. Full-time employees, by gender by
region
v. Part-time employees, by gender by
region
See
Human Capital
section of Form 10-K
a. Approximately 51,000 worldwide,
35,000 in the US, 13,000 in Canada, and 3,000 in Europe
62% self-identified as women
b. 6,000 part-time employees
2-8
Workers who are not employees
See
Human Capital
section of Form 10-K
2-9
Governance structure and composition
See
Governance and sustainability
See
Director Nominees and Our Approach to Governance
section of FY24 Proxy
2-10
Nomination and selection of the highest
governance body
See
Director Nominees and Our Approach to Governance
section of FY24 Proxy
2-11
Chair of the highest governance body
See
Director Nominees and Our Approach to Governance
section of FY24 Proxy
2-12
Role of the highest governance body in
overseeing the management of impacts
See
Governance Highlights
section of FY24 Proxy
2-13
Delegation of responsibility for
managing impacts
See
Governance and sustainability
See
Director Nominees and Our Approach to Governance
section of FY24 Proxy
Global
Reporting
Initiative
(GRI)
ESG reporting frameworks
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GRI Requested Information
McKesson FY24 Responses
2-23
Policy commitments
See
McKesson Policies
2-26
Mechanisms for seeking advice and
raising concerns
McKesson offers multiple channels for employees
and third parties to raise concerns. Employees may contact
any people leader, compliance officer, human resources, or
the legal department with concerns. Employees may also
report concerns by email. In addition, McKesson provides
confidential integrity hotlines available 24 hours a day,
seven days a week, 365 days a year with multiple language
capabilities.
2-27
Compliance with laws and regulations
See
Government Regulation
and
Commitments and
Contingent Liabilities
sections of FY24 Form 10-K
2-28
Membership associations
See
Our Industry Partnerships
2-29
Approach to stakeholder engagement
Our stakeholders include employees, shareholders,
communities, customers, suppliers, joint venture partners,
investors, government/ policymakers and nongovernmental
organizations.
See
Proxy Summary: We Welcome Shareholder Feedback
Year-Round
section of FY24 Proxy
See
Shareholder and other stakeholder engagement
2-30
Collective bargaining agreements
Union/collective bargaining:
We are committed to respecting the rights of all McKesson
employees. Labor laws and practices vary among the
countries where we do business, and we are committed to
following all applicable labor laws and regulations in those
countries, including those governing labor-management
relationships.
See
Multiemployer Plans
section of FY24 Form 10-K
GRI 3: Material Topics
3-1
Process to determine material topics
See
Shareholder and other stakeholder engagement
3-2
List of material topics
See
Shareholder and other stakeholder engagement
GRI 201: Economic Performance
201-1
Direct economic value generated and
distributed
FY24 revenues were $309 billion
See
McKesson FY24 At a glance
See
Results of Operations
section of FY24 Form 10-K
GRI Disclosure
GRI Requested Information
McKesson FY24 Responses
2-14
Role of the highest governance body in
sustainability reporting
See
Governance and sustainability
See
Director Nominees and Our Approach to Governance
section of FY24 Proxy
2-15
Conflicts of interest
See
Election of Directors: The Board, Committees and
Meetings
section of FY24 Proxy
2-16
Communication of critical concerns
See
Election of Directors: Evaluating Board Composition,
Performance and Effectiveness
section of FY24 Proxy
2-17
Collective knowledge of the highest
governance body
See
Governance and sustainability
See
Director Nominees and Our Approach to Governance
section of FY24 Proxy
2-18
Evaluation of the performance of the
highest governance body
See
Election of Directors: Corporate Governance
section
of FY24 Proxy
See
Election of Directors: Evaluating Board Composition,
Performance and Effectiveness
section of FY24 Proxy
2-19
Remuneration policies
See
Election of Directors: Director Compensation, Risk
Assessment of Compensation Policies and Practices
section of FY24 Proxy
2-20
Process to determine remuneration
See
Election of Directors: Risk Assessment of
Compensation Policies and Practices
and
Executive
Compensation: Independent Review Process
sections of
FY24 Proxy
2-21
Annual total compensation ratio
For purposes of our CEO pay ratio, our CEO’s compensation
is $18,997,543 and our median employee compensation
is $64,861. Accordingly, our CEO to median pay employee
ratio is 293:1
See
Executive Compensation: CEO Pay Ratio
section of
FY24 Proxy
2-22
Statement on sustainable development
strategy
Report a statement from the highest
governance body or most senior
executive of the organization about the
relevance of sustainable development
to the organization and its strategy
for contributing to sustainable
development.
See our
CEO Letter
and
Q&A with our Chief Impact Officer
53
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MCKESSON FY24 IMPACT REPORT
GRI Disclosure
GRI Requested Information
McKesson FY24 Responses
GRI 305: Emissions 2016
305-1
Direct (Scope 1) GHG emissions
See
Greenhouse gas emissions reduction targets
See
McKesson’s GHG and energy-use data table
305-2
Energy indirect (Scope 2) GHG emissions
See
Greenhouse gas emissions reduction targets
See
McKesson’s GHG and energy-use data table
305-3
Other indirect (Scope 3) GHG emissions
See
Greenhouse gas emissions reduction targets
See
McKesson’s GHG and energy-use data table
305-4
GHG emissions intensity
See
Greenhouse gas emissions reduction targets
See
McKesson’s GHG and energy-use data table
305-5
Reduction of GHG emission
See
Greenhouse gas emissions reduction targets
See
McKesson’s GHG and energy-use data table
GRI 306: Waste 2020
306-1
Waste generation and significant waste-
related impact
See
Greenhouse gas emissions reduction targets
306-2
Management of significant waste-related
impacts
See
Greenhouse gas emissions reduction targets
306-3
306-4
306-5
Waste generated
Waste diverted from disposal
Waste directed to disposal
Waste Composition:¹
Total hazardous waste generated²: 199,313 lbs
Hazardous waste diverted from disposal: 18,600 lbs
Hazardous waste directed to disposal:
180,713 lbs
Total non-hazardous waste generated: 35,414,965 lbs
Non-hazardous waste diverted from disposal: 43,040 lbs
Non-hazardous waste directed to disposal: 35,371,925 lbs
1
All waste data is for US operations only.
² Hazardous wastes as referenced herein refer to those
wastes which carry a hazardous waste number as defined by
the U.S. Environmental Protection Agency (EPA).
GRI 401: Employment 2016
401-1
New employee hires and employee
turnover
See
Our People
See
Human Capital
section of FY24 Form 10-K
401-2
Benefits provided to full-time employees
that are not provided to temporary or
part-time employees
See
Executive Compensation: Other Compensation and
Benefits
section of FY24 Proxy
See
Pension benefits
section of FY24 Form 10-K
GRI Disclosure
GRI Requested Information
McKesson FY24 Responses
201-2
Financial implications and other risks
and opportunities due to climate
change
See our
Statement on Climate Change
See
Risk Factors
section of FY24 Form 10-K
201-3
Defined benefit plan obligations and
other retirement plans
See
Other Compensation and Benefits
section of FY24
Proxy
See
Pension Benefits
section of FY24 Form 10-K
GRI 203: Indirect Economic Impacts
203-1
Infrastructure investments and services
supported
See
Employee engagement with our communities
See
Expanding sustainability through innovation and
green buildings
203-2
Significant indirect economic impacts
See
Our Partners
for detail on how McKesson impacts
health equity
GRI 205: Anti-corruption 2016
205-2
Communication and training about anti-
corruption policies and procedures
See
Compliance Program and Our Code of Conduct
GRI 302: Energy
302-1
Energy consumption within the
organization
See
McKesson’s GHG and energy-use data table
See
Our Statement on Climate Change
FY 2024: 818,536 MWh
302-3
Energy intensity
a. Energy intensity ratio for the
organization
b. Organization-specific metric (the
denominator) chosen to calculate the
ratio
See
McKesson’s GHG and energy-use data table
See
Our Statement on Climate Change
302-4
Reduction of energy consumption
See
Greenhouse gas emissions reduction targets
See
Expanding sustainability through innovation and green
buildings
See
Our Statement on Climate Change
GRI 303: Water and Effluents 2018
303-3
Water withdrawal
a. Total water withdrawal from all areas
b. Total water withdrawal from all areas
with water stress
See
Enhancing operations with sustainable packaging and
waste reduction
Total water withdrawn: 297,201,073 US Gallons
Total water withdrawn from areas with water stress:
43,423,055 US Gallons
54
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GRI Disclosure
GRI Requested Information
McKesson FY24 Responses
403-3
Occupational health service
McKesson has implemented a safety management system
approach utilizing the ANSI Z10 model to identify and control
potential risks for workplace incidents, employee injuries
and regulatory (OSHA, EPA) matters. The management
system systematically addresses and reduces risk through
implementation of policies and procedures, training,
employee engagement and feedback loops through
inspection and audit processes. McKesson’s safety
leadership is comprised of business leaders with specialized
education, credentials and experience which aid in the
successful management of the safety management system.
GRI Disclosure
GRI Requested Information
McKesson FY24 Responses
GRI 403: Occupational Health and Safety 2018
403-1
Occupational health and safety
management system
We use safety performance scorecards to track and
monitor our Occupational Safety and Health Administration
(OSHA) Total Recordable Incident Rate (TRIR), among other
metrics. Each of our U.S. businesses receives an overall
Safety Performance Index score quarterly, which considers
factors such as completion of Safety Committee meetings
and inspections; percent of completed employee safety
orientations, certifications and other trainings; and injury
rates. In FY24, our U.S. Safety Performance Index score
remained constant, at 97%.
We routinely assess facilities to monitor adherence to
established security and safety standards. We completed 181
onsite and virtual safety visits in FY23 to provide support,
coaching, and oversight for implementation of accident
prevention and regulatory environmental health and safety
programs. We also completed over 149 in FY24, aimed at
reinforcing safe work practices for employees.
McKesson Canada has a robust health and safety program
which includes a continuous training program offered to
all employees, monthly “set the tone” topics shared to
distribution center employees, and ergonomic assessment
to improve best work practices. The program also includes
a health and safety executive summary dashboard that is
shared quarterly with McKesson Canada’s CEO.
EHS - US Safety Performance Index Score YoY
Improvement: FY24: 97% (flat to FY23)
EHS - # of Onsite and Virtual Safety Visit
Completed: FY24: 149
EHS - # of Safety Observations Completed: FY24: 28,343
403-2
Hazard identification, risk assessment,
and incident investigation
If a serious vulnerability is identified, it is documented, and
the facility prepares an action plan. Across distribution
facilities, we prepare a monthly leading safety indicator
dashboard to measure performance to our standards.
In FY24, our distribution centers in the U.S. had a 100%
execution rate in core injury prevention programs, including
joint health and safety committees, periodic self-inspections,
and employee training. We also maintain an internal
database of all major incidents at our facilities, which allows
us to investigate the circumstances surrounding the injury
or event. This helps us learn how we can prevent similar
incidents in the future.
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GRI Disclosure
GRI Requested Information
McKesson FY24 Responses
403-5
Worker training on occupational health
and safety
We aim to foster a “safety matters because you matter”
culture. Our safety training programs are for employees at all
levels. Throughout their time at McKesson, employees learn
to identify and control hazards they may encounter at work.
All employees, upon hiring and annually thereafter, receive
health and safety training through our internal learning
portal. Employees also receive specialized training related to
their role, environment, and the equipment used in their work
environment, for example proper use of personal protective
equipment, safe lifting techniques and safe operation of
powered industrial trucks.
Just as we continually update our processes, we refresh
our training modules and programs. In FY24, employees
completed more than 97,000 safety training courses.
403-6
Promotion of worker health
See
Our People
403-7
Prevention and mitigation of
occupational health and safety impacts
directly linked by business relationships
We successfully executed the Focus DC EH&S Service Plan,
emphasizing review/control of primary risks; implemented
updated PIT Safe Operating Rules and integrated them
into Operator (Re)certification Programs; developed Safety
Accountability Guidelines for appropriate, fair and consistent
progressive disciplinary actions; refreshed Pre-Shift Warm-
up and Stretching Program, including new learning aids;
produced Ergonomics training module for People Leaders;
updated New Employee Safety Orientation training modules
and protocol; Created hands-on employee on-boarding
procedures for Operation Hyperdrive employees; updated
Monthly and Annual Safety Inspections & Self-Assessment
Programs; reengineered the Employee Safety Observations
Program which emphasizes PIT and manual material
handling risks, and integrated them into new employee
orientation.
403-8
Workers covered by an occupational
health and safety management system
All U.S. Employees
GRI Disclosure
GRI Requested Information
McKesson FY24 Responses
403-4
Worker participation, consultation, and
communication on occupational health
and safety
Safety Committees are comprised of management and non-
management employees with representation from a cross-
section of the facility’s departments and functions. Each
committee has a chairperson who is elected by the safety
committee members. Members serve a minimum of one year
with appointments staggered to assure that no more than
one third of the committee is new at any time. All committee
meetings are open to any employee who wishes to attend.
Safety Committee Responsibilities:
• Create and maintain each employee’s active and positive
interest in safety.
• Provide open communication among management, its
representatives, and employees.
• Provide an open forum where accident causes and means
of prevention can be discussed.
• Establish provisions to complete regular periodic
inspections, review results and recommend and track the
status of indicated changes through resolution.
• Identify unsafe work practices or conditions and suggest
appropriate remedies.
• Encourage feedback from all levels of employees in all areas
of the company in regard to problems, ideas and solutions.
• Keep everyone in the facility informed about new safety
policies, training programs and other safety related ideas.
• Develop a positive safety culture that will support and
promote an effective safety system.
Meeting Frequency:
Safety committee meetings are held in accordance with the
following schedule:
• All distribution centers, Central Fills and manufacturing
facilities will conduct monthly meetings.
• Non-distribution centers with more than 10 employees will
conduct quarterly meetings.
• Facilities with fewer than 10 employees will conduct
meetings as needed.
Employees participate in Employee Perception surveys every
2 years since 2018. There are 3 survey categories: Leader
Member Exchange (Relationships/Communication), Role
Integrity (Accountability) and Safety Climate (Safety Culture).
Scores in all categories have improved each year (with one
score remaining flat from FY22 – FY24).
See summary below.
FY22 Results – 71% DC employee participation. 642
comments
FY24 Results – 76% participation. 750 comments
Also, there is a question on the McKesson EOS annually…
”Safety is a top priority here”. The question received a
favorability rating of 82% in both FY23 and FY24. In FY24,
this was the highest scoring question across the enterprise.
56
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MCKESSON FY24 IMPACT REPORT
GRI Disclosure
GRI Requested Information
McKesson FY24 Responses
403-9
Work-related injuries
In the U.S., injury rates (number of recordable injuries per 100
employees) were calculated for both distribution centers
and office locations during calendar year 2022 and 2023.
We disclose Total Recordable Incident Rates (TRIR) and Lost
Time Incident Rates (LTIR) on a calendar year basis as this
approach aligns with the Occupational Safety and Health
Administration reporting requirements.
EHS - US DC Core Injury Prevention Execution Rate: FY24:
100%
EHS - US Incident Rates (Lost-Time): -20%
EHS - US Incident Rates (Total Recordable): +2%
EHS - US Safety Performance Index Score YoY Improvement:
FY24: 97% (Flat YoY)
GRI 404: Training and Education 2016
404-1
Average hours of training per year per
employee
In FY24, employees completed more than 97,000 safety
training courses.
404-2
Programs for upgrading employee skills
and transition assistance programs
See
Our People
See
Human Capital
section of FY24 Form 10-K
404-3
Percentage of employees receiving
regular performance and career
development reviews
See
Human Capital
section of FY24 Form 10-K
GRI 405: Diversity and Equal Opportunity 2016
405-1
Diversity of governance bodies and
employees
See
Governance and sustainability
62% of Employees are women
43% of Leadership are women
49% of Employees are POC
28% of Leadership are POC
50% of Board directors are women or POC (as of March 31,
2024)
GRI 408: Child Labor 2016
408-1
Operations and suppliers at significant
risk for incidents of child labor
See our
UK Modern Slavery Act Statement
for more details
See our
McKesson Canada Corporation Forced Labour and
Child Labour Report
GRI Disclosure
GRI Requested Information
McKesson FY24 Responses
GRI 409: Forced or Compulsory Labor 2016
409-1
Operations and suppliers at significant
risk for incidents of forced or compulsory
labor
Established in 2012, the Responsible Sourcing program
provides a framework that holds our international private-
label suppliers to an auditable set of expectations. Private-
label suppliers outside the U.S. must agree to comply
with the MSSP, which address compliance with applicable
laws along with adherence to our principles on protecting
workers, preparing for emergencies and protecting the
environment. These principles likewise reflect our stance
against forced and child labor, which is also articulated in our
response to the
UK Modern Slavery Act
for our UK business.
See our
McKesson Canada Corporation Forced Labour and
Child Labour Report
GRI 413: Local Communities 2016
413-1
Operations with local community
engagement, impact assessments, and
development programs
See
Our Community
McKesson Foundation Programs:
•
McKesson Foundation Scholarship Program
— FY24:
Awarded 40 new scholarships, 64 renewal scholarships,
$364K total scholarships
•
Taking Care of Our Own Fund
— Awarded 377 support
grants, total of $1.1M grant funds
•
Giving Tuesday 2:1 Matching Gifts
— 1,092 employee
participants, $579K in employee contributions, more than
$1.5M total charitable contributions
•
Matching Gifts
— 2,404 employee participants, distributed
$1.98M in matching gifts to 2,285 charities
•
Employee Volunteering & Board Service
— $423K
distributed in volunteer and board service grants
McKesson Programs:
•
Fit2Be Cancer Free Challenge
— In April 2024, McKesson
finished 1st in the Most Steps Accrued and Total Distance
for the 5th year in a row. 4,672 participants across the
enterprise
•
Community Impact Days
— Nearly 9,170 hours of service
across 8,410 employee engagements, provided over 14,000
care kits across North America, 92 nonprofits received care
kits
•
McKesson Community Heroes
— Total $19,000 in
contributions across seven organizations
GRI 415: Public Policy 2016
415-1
Political contributions
See
Our Political Engagement
landing page for details
57
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MCKESSON FY24 IMPACT REPORT
GRI Disclosure
GRI Requested Information
McKesson FY24 Responses
GRI 416: Customer Health and Safety 2016
416-1
Assessment of the health and safety
impacts of product and service
categories
We endeavor to provide safe, high-quality products to
our customers and their patients, and are committed
to regulatory excellence and compliance with laws and
regulations that apply to us in all aspects of our operations.
For product quality, these laws and regulations include the
Drug Supply Chain Security Act in the United States and
the Food and Drugs Act and Good Manufacturing Practices
in Canada. Our quality management systems are based on
international procedures and industry standards to help
ensure the products we handle and distribute, the products
we source in our private-label line of business, and the
packaging and labeling thereof, follow applicable regulations
and are in line with or exceed industry best practices. When
potential product quality incidents occur, we work to respond
promptly and follow a Corrective Action — Preventive Action
(CAPA) process. To prevent counterfeit products from
entering the legal distribution network and to help ensure
the integrity of the products we take ownership of, we follow
a supplier qualification procedure for vendors. Potential
suppliers are vetted using industry accepted tools. As part
of this process, we perform regular audits and checks of
authorizations and certifications, as appropriate.
See our
FY24 Form 10-K
for more details
GRI 417: Marketing and Labeling 2016
417-1
Requirements for product and service
information and labeling
In the U.S., McKesson complies with the Drug Supply Chain
Securities Act (DSCSA)
In Canada, McKesson follows Good Manufacturing Practices
In Europe, McKesson follows the Falsified Medicines
Directive
See
McKesson’s Controlled Substances Monitoring
Program
GRI 418: Customer Privacy 2016
418-1
Substantiated complaints concerning
breaches of customer privacy and losses
of customer data
See
Risk Factors
section of FY24 Form 10-K
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MCKESSON FY24 IMPACT REPORT
Sustainability
Accounting
Standards
Board (SASB)
Disclosure
Topic
Accounting Metrics
Disclosure
Product
Lifecycle
Management
Discussion of strategies to reduce the
environmental impact of packaging
throughout its lifecycle
See
Enhancing operations with sustainable packaging and
waste reduction
Product Safety
HC-DI-250a.1 Total amount of monetary
losses as a result of legal proceedings
associated with product safety
HC-DI-250a.2 Description of efforts
to minimize health and safety risks of
products sold associated with toxicity/
chemical safety, high abuse potential, or
delivery
See
Opioid-related Litigation and Claims
section of FY24
Form 10-K
See
McKesson’s Controlled Substance Monitoring
Program
Access to
Medicines
HC-BP-240a.1 Description of actions
and initiatives to promote access
to health care products for priority
diseases and in priority countries as
defined by the Access to Medicine
Index
HC-BP-240a.2 List of products on the
WHO List of Prequalified Medicinal
Products as part of its Prequalification
of Medicines Programme
See
Our Partners
See the
Prequalified Medical Products list
outlined by the
World Health Organization
HC-DI-000.A Number of pharmaceutical units sold, by
product category
See
Fiscal Year 2024 Highlights
section of FY24 Proxy
See
Business Segments
section of FY24 Form 10-K
HC-DI-000.B Number of medical devices sold, by product
category
See
Fiscal Year 2024 Highlights
section
of FY24 Proxy
See
Business Segments
section of FY24 Form 10-K
Disclosure
Topic
Accounting Metrics
Disclosure
Business Ethics
HC-DI-510a.1 Description of efforts
to minimize conflicts of interest and
unethical business practices
HC-DI-510a.2 Total amount of monetary
losses as a result of legal proceedings
associated with bribery, corruption, or
other unethical business practices
See
Compliance Program and Our Code of Conduct
See
Other Litigation and Claims
section of FY24 Form
10-K
Counterfeit
Drugs
HC-DI-260a.1 Description of methods
and technologies used to maintain
traceability of products throughout
the distribution chain and prevent
counterfeiting
HC-DI-260a.2 Discussion of due
diligence process to qualify suppliers of
drug products and medical equipment
and devices
HC-DI-260a.3 Discussion of process
for alerting customers and business
partners of potential or known risks
associated with counterfeit products
Our Global Sourcing organization is responsible for
identifying potential overseas suppliers for our private-label
brands. Once suppliers are identified, we begin assessment
and qualification processes to determine if these suppliers
meet our criteria. Our Global Sourcing evaluates suppliers
for adherence to Current Good Manufacturing Practices
and other regulations, while our Responsible Sourcing
evaluates supplier conformance to the Medicare Shared
Savings Program.
To prevent counterfeit products from entering the legal
distribution network and to help ensure the integrity of
the products we take ownership of, we follow a supplier
qualification procedure for vendors. Potential suppliers
are vetted using industry accepted tools. As part of
this process, we perform regular audits and checks of
authorizations and certifications, as appropriate.
See
McKesson’s Controlled Substance Monitoring
Program
Fleet Fuel
Management
HC-DI-110a.1 Payload fuel economy
HC-DI-110a.2 Description of efforts
to reduce environmental impacts of
logistics
We utilize a combination of third-party transportation &
logistics providers and a private fleet of delivery vehicles
for product deliveries. We do not have direct operational
control over the third-party provider deliveries and do
not have access to all third-party partners’ fuel data for
emissions reporting.
See
Improving technology and efficiencies across our
transportation network
See our
Climate Change Position Statement
ESG markers
59
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MCKESSON FY24 IMPACT REPORT
Disclosure
Topic
Accounting Metrics
Disclosure
Employee
Engagement,
Diversity &
Inclusion
Employee engagement as a percentage
Percentage of gender and racial/ethnic
group representation for
(1) management, (2) professionals,
and (3) all other employees
Percentage of gender and racial/ethnic
group representation for
(1) executive management and (2) all
other employees
Voluntary and involuntary turnover rate
for employees
See
Seeking actionable feedback through Employee
Opinion and Manager Quality Surveys
See
Governance and sustainability
62% of Employees are women
43% of Leadership are women
49% of Employees are POC
28% of Leadership are POC
50% of Board directors are women or POC (as of March 31,
2024)
See
Governance and sustainability
62% of Employees are women
43% of Leadership are women
49% of Employees are POC
28% of Leadership are POC
50% of Board directors are women or POC (as of March 31,
2024)
See
Belonging; The power of inclusion
Safety of
Clinical Trial
Participants
Discussion, by world region, of
management process for ensuring
quality and patient safety during clinical
trials
Number of FDA Sponsor Inspections
related to clinical trial management and
pharmacovigilance that resulted in:
(1) Voluntary Action Indicated (VAI)
and (2) Official
Total amount of monetary losses as a
result of legal proceedings associated
with clinical trials in developing
countries
See
Improving patient outcomes and increasing diversity
in clinical trials
and
Partnering with the FDA on Rare
Cancer Research
Disclosure
Topic
Accounting Metrics
Disclosure
Supply Chain
Management
Percentage of (1) entity’s facilities
and (2) Tier I suppliers’ facilities
participating in the Rx-360 International
Pharmaceutical Supply Chain
Consortium audit program or equivalent
third-party audit programs for integrity
of supply chain and ingredients
Percentage of (1) entity’s facilities and
(2) Tier I suppliers’ facilities participating
in third-party audit programs for
manufacturing and product quality
Description of efforts to maintain
traceability within the distribution chain
Description of the management of
risks associated with the use of critical
materials
See
Inclusive Approach to Supplier Relationships
Customer
Privacy
Description of policies and practices
relating to behavioral advertising and
customer privacy
See our
Privacy Notice
Data Security
Description of policies and practices
to secure customers’ protected health
information (PHI) records and other
personally identifiable information (PII)
See our
Privacy Notice
Energy
Management
1) Total energy consumed,
(2) Percentage grid electricity,
(3) Percentage renewable
See
McKesson’s GHG and energy-use data table
Physical
Impacts
of Climate
Change
Discussion of the strategy to address
the effects of climate change on
business operations and how specific
risks presented by changes in the
geographic incidence, morbidity, and
mortality of illnesses and diseases are
incorporated into risk models
Description of policies and practices to
address: (1) the physical risks due to an
increased frequency and intensity of
extreme weather events
See our
TCFD
index, the
Risk Factors
section of our FY24
Form 10-K and
McKesson's Statement on Climate Change
60
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Task Force
on Climate-
related
Financial
Disclosures
(TCFD)
TCFD Recommendations
Disclosure
Strategy
a) Describe the climate-related risks
and opportunities the organization
has identified over the short, medium
and long term
b) Describe the impact of climate-
related risks and opportunities on the
organization’s businesses, strategy
and financial planning
c) Describe the resilience of the
organization’s strategy, taking into
consideration different climate-
related scenarios, including a 2°C or
lower scenario.
Climate change is a global development that will require
coordination and collaboration across geographies,
industries and societies. It poses unique risks, but also
presents opportunities for companies to adapt and
increase the efficiency of their operations.
The long-term effects of climate change are difficult to
predict and may be widespread. The impacts may include
physical risks (such as rising sea levels or increased
frequency and severity of extreme weather conditions),
social and human effects (such as population dislocations
or harm to health and wellbeing), compliance costs and
transition risks (such as regulatory or technology changes)
and other adverse effects. The effects could impair, for
example, the availability and cost of certain products,
commodities, and energy (including utilities), which in
turn may impact the ability to procure goods or services
required for business operations.
Risk 1
Acute physical — Increased severity and frequency of
extreme weather events such as cyclones and floods
Time horizon: long term
Risk 2
Chronic physical — Rising mean temperatures
Time horizon: long term
Opportunity 1
Resource efficiency — move to more efficient buildings
Time horizon: long term
Opportunity 2
Energy source — Use of lower-emission sources of energy
Time horizon: long term
See
Our Planet
See our
Climate Change Position Statement
See
Risk Factors: General Risks
section of FY24 Form 10-K
TCFD Recommendations
Disclosure
Governance
a) Describe the board’s oversight
of climate-related risks and
opportunities
b) Describe the organization’s Describe
management’s role in assessing and
managing climate-related risks and
opportunities
The Board’s Governance and Sustainability Committee
has oversight of sustainability matters, including our
commitment to delivering value to customers, employees,
suppliers, shareholders, and local communities.
The Board, the Governance and Sustainability Committee,
and/or other committees periodically review the
Company’s ESG strategy and practices, including
environmental sustainability, pay equity, human capital
management and diversity, equity and inclusion.
The Global Impact Organization (GIO), led by the Chief
Impact Officer, has Management-level oversight of
McKesson’s climate-related risks and opportunities.
Our Chief Impact Officer and VP of Environmental
Responsibility work with other employees across the
company to develop our enterprise-wide strategies and
monitor relevant metrics, aided by guidance from our
Environmental Impact Council. The GIO meets bi-weekly to
discuss our impact approaches and results.
See
Governance and sustainability
See
Science-Based Targets Governance
See
Election of Directors: The Board, Committees and
Meetings
of FY24 Proxy
See our
Climate Change Position Statement
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TCFD Recommendations
Disclosure
Risk
Management
a) Describe the organization’s
processes for identifying and
assessing climate-related risks
b) Describe the organization’s
processes for managing climate-
related risks
c) Describe how processes for
identifying, assessing, and managing
climate-related risks are integrated
into the organization’s overall risk
management
The Board’s Governance and Sustainablility Committee
regularly reviews McKesson’s ESG practices, including
environmental sustainability and matters concerning our
commitment to delivering value to customers, employees,
suppliers, shareholders, and local communities.
The Board, the Governance and Sustainablility
Committee, and/or other committees periodically review
the Company’s ESG strategy and practices, including
environmental sustainability, pay equity, human capital
management and diversity, equity and inclusion.
The Global Impact Organization (GIO), led by the Chief
Impact Officer, has Management-level oversight of
McKesson’s climate-related risks and opportunities.
Our Chief Impact Officer and VP of Environmental
Responsibility work with other employees across the
company to develop our enterprise-wide strategies and
monitor relevant metrics, aided by guidance from our
Environmental Impact Council. The GIO meets bi-weekly to
discuss our impact approaches and results.
See
Election of Directors: The Board, Committees and
Meetings
section of FY24 Proxy
See
Risk Factors: General Risks
section of FY24 Form 10-K
Metrics &
Target
a) Disclose the metrics used by the
organization to assess climate-
related risks and opportunities
in line with its strategy and risk
management process.
b) Disclose Scope 1, Scope 2, and, if
appropriate, Scope 3 greenhouse gas
(GHG) emissions, and the related risks
c) Describe the targets used by the
organization to manage climate-
related risks and opportunities and
performance against targets
See
Our Planet
See our
Climate Change Position Statement
See
McKesson’s GHG and energy-use data table
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Sustainable
Development
Goals
(UN SDGs)
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SDG
Example of McKesson’s approach
SDG 3 – Good Health and Wellbeing
Ensure healthy lives and promote
wellbeing for all at all ages
See
Improving Access, Affordability and Adherence
SDG 10 – Reduce Inequalities
Reduce inequality within and among
countries
See
Improving Access, Affordability and Adherence
See
Supporting Belonging Through Employee Resource Groups
See
Our Community
for more detail
SDG 13 – Climate Action
Take urgent action to combat climate
change and its impacts
Implement efficiency measures to reduce our energy consumption
Increase our renewable energy procurement
See
Our Planet
See our
Climate Change Position Statement
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McKesson’s
GHG and
energy-use
data table
GHG emissions in metric tons CO
2
e
1, 2, 4, 9, 10, 11
FY20
FY23
FY24
Direct (Scope 1) GHG emissions
88,219
79,293
79,848
Indirect (Scope 2) GHG emissions – Location-Based
190,289
140,582
153,783
Indirect (Scope 2) GHG emissions – Market-Based
189,365
140,215
152,129
Gross Scope 1 + Scope 2 Location-Based
278,508
219,875
233,631
Gross Scope 1 + Scope 2 Market-Based
277,584
219,508
231,977
Scope 3 Emissions³
Category 1 — Purchased Goods and Services
25,242,171
28,173,399
31,925,992
Category 2 — Capital Goods
8,261
69,132
50,694
Category 3 — Fuel- and Energy-related activities⁵
10,915
48,178
69,675
Category 4 — Upstream transportation and distribution
117,702
546,463
398,635
Category 5 — Waste generated in operations
6,091
10,879
11,271
Category 6 — Business travel⁶
20,634
13,144
13,598
Category 7 — Employee Commuting⁷
20,400
119,557
99,295
Gross Scope 3 Emissions
25,426,174
28,980,752
32,569,160
Total Energy Consumption (mWh)⁸
758,142
801,354
818,536
GHG emissions intensity (Gross Scope 1+ Scope 2
Market Based / Unit Revenue ($M) (metric tons CO
2
e/Unit
revenue ($M))
12
1.36
0.79
0.751
1
McKesson has engaged with Deloitte & Touche LLP to ensure that the methods, calculations, and emissions factors used
to calculate our GHG emissions inventory are correct. Deloitte has issued a letter of assurance for our FY23 and FY24 GHG
emissions inventory to demonstrate our adherence to The GHG Protocol and GHG accounting practices.
2
The boundaries for our GHG reporting is for all operations within North America and Norway. The one notable exclusion is the
Rexall pharmacy locations throughout Canada.
3
Emissions for the fifteen different Scope 3 categories were calculated only for the categories relevant to our business. The
Scope 3 categories excluded from our calculations are categories 8–15.
4
Our emissions estimations for Scope 3 categories 1 and 2 only include spend data from within our boundary.
5
Our emissions from energy related activities include estimations from transmissions & distribution line losses for electricity
and well-to-tank estimations for fuels.
6
Our business travel data is based on invoice date. Our estimated emissions from business travel only include activity from air
travel and personal vehicle use.
7
Emissions from employee commuting do not include estimated emissions from employees working from home.
8
For fiscal years FY23–FY24, the energy consupmtion of fuel used for transportation is not included in our total energy use
calculation. Our energy use calculation for these years includes the energy consupmtion of all electricity and fuels used for
space conditioning as well as the energy consupmtion of fuels used specifically or energy generation, such as diesel fuel used
in our generators.
9
“Information covered by McKesson’s assurance Scope does not contain any material errors or omissions, given the sector, the
nature of the information, and the methods used for measuring, calculating or estimating the data”.
10
Actual numbers will fluctuate as we re-baseline, adjusting for divestitures and acquisitions, per the Greenhouse Gas Protocol.
11
FY20 is the baseline year, which was assured by ERM Certification & Verification Services Incorporated (“ERM CVS”)
previously.
12
Not subject to assurance by Deloitte & Touche LLP.
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Item
Description
Reporting Period
McKesson’s fiscal year is April 1st – March 31st
Units
All reported emissions are in metric tons of carbon dioxide equivalent,
CO
2
e.
Total energy use
McKesson’s reported energy consumption is based on the energy
content of sources that power our building operations. It does not
include the energy content of the fuel used for fleet transportation.
Reported greenhouse gases
Individual GHG emissions from carbon dioxide (CO2), methane
(CH4), nitrous oxide (N2O), and F Gases (Hydrofluorocarbons (HFCs)
are incorporated into our CO2 equivalent (CO2e) values by utilizing
the 100-year Global Warming Potential (GWP) recommended by
the Fourth Assessment Report of the Inter-governmental Panel on
Climate Change (IPCC).
Scope 1 emissions
All material sources of Scope 1 emissions are included in our
inventory. These Include:
• Natural gas and propane for building conditioning,
• Fuel consumption from fleets for product transportation,
• Fuel consumption from on-site generator usage,
• Refrigerants that escape into the atmosphere from HVAC/R
equipment leaks
Scope 2 emissions
We practice dual-reporting, where location-based and market-based
Scope 2 emissions are calculated and disclosed. All material sources
of Scope 2 emissions are included in our inventory. These include:
• Purchased electricity from utility providers
• Any purchased district heating or cooling
For Scope 2 Market-based reporting, we procure contractual
instruments in the form of Renewable Energy Certificates (RECs)
at certain facilities to reduce electricity consumption. Contractual
instruments are purchased and applied in line with the Scope 2 Quality
Criteria
Basis of Reporting —
Greenhouse Gas (GHG)
Emissions
Completeness, accuracy, and validity of the
company’s GHG emissions in the GHG and
Energy-use data table within the 2024 Impact
Report for the years ended March 31, 2023
and March 31, 2024. Management is also
responsible for the collection, quantification,
and presentation of the Statements and for the
selection of the criteria, which management
believes provide objective bases for measuring
and reporting. Management of McKesson
asserts that the GHG disclosures are
presented in accordance with the Greenhouse
Gas Protocol: A Corporate Accounting
and Reporting Standard (Revised Edition),
published by the World Resources Institute/
World Business Council for Sustainable
Development (the ‘GHG Protocol”).
This document sets out the principles,
boundaries, methodologies, and assumptions
used by McKesson in the preparation and
reporting of its Greenhouse Gas (GHG)
emissions data. Organizational boundary
and control methodology for GHG emissions
reporting McKesson draws our boundary
around all locations and operations that are
within North America and Norway. We utilize
the operational control methodology for our
GHG emissions calculations. One notable
exclusion within our boundary is the Rexall
pharmacy locations throughout Canada. We
define operational control as assets where
McKesson has full authority to make changes
to the operational characteristics of that asset.
Item
Description
Scope 3 emissions
The below Scope 3 categories are considered material and relevant to
McKesson’s organizational boundary. The Quantis estimation tool was
used to estimate FY23 GHG emissions for categories 3 and 7.
• Category 1 — Purchased goods and services
• Category 2 — Capital Goods
• Category 3 — Fuel and energy-related activities
• Category 4 — Upstream transportation and distribution
• Category 5 — Waste generated in operations
• Category 6 — Business travel
• Category 7 — Employee commuting
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Emissions
Factors
Sources
Emissions Source
Emissions Factor Source
Scope 1 Fuels
FY24 — Department of Environment Food & Rural affairs (DEFRA)
EPA GHG Emissions Factors Hub – 2021
Commercial Building Energy Consumption Survey (CBECS)
Refrigerants
EPA GHG Emissions Factors Hub GWPs - modified 2023
Scope 2 location-based factors
Global: International Energy Agency (IEA)
US: EPA eGRID factors (For FY23 – eGRID 2022, For FY24 – eGRID
2023)
Canada: Official GHG Inventory 2021
Scope 2 market-based factors
Global: AIB Residual mix factors
US: Edison Electric Institute Emissions factors by supplier for CO2
US: EPA eGRID factors (For FY23 – eGRID 2022, For FY24 – eGRID
2023)
Green-e Residual mix factors
Canada: Official GHG Inventory 2021
Category 1 — Purchased goods and services
Category 2 — Capital goods
Global: WIOD
US: USEEIO EPA Supply Chain GHG emissions factors
Category 3 — Fuel and energy-related activities
FY23 – Quantis Estimator Tool
FY24 – DEFRA
Category 4 — Upstream transportation and
distribution
Spend-based calculations: WIOD
Vendor-specific factors where vendors provide GHG reports
Category 5 — Waste generated in operations
Category 6 — Business travel
DEFRA
Category 7 — Employee Commuting
Quantis GHG estimation tool (FY23 Only)
EPA GHG Emissions Factors Hub – 2021
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Calculation
Methodology
Scope
Methodology
Scope 1
Where primary evidence is available, Scope 1 emissions are calculated by multiplying the fuel
consumption within the fiscal year by the appropriate emissions factor based on the fuel type.
Where primary evidence is not available, fuel consumption is estimated based on a number of
factors. Natural gas consumption is based on energy splits based on building type and location
based on CBECS utilization factors. The total estimated energy use for a building is calculated
by multiplying the floor area by the appropriate CBECS factors based on building type and
location. The energy split is also used to break out the buildings total estimated energy use
by natural gas and electricity, and the same emissions factors are applied here as they are for
where primary evidence also exists. We only use primary data to calculate mobile combustion
emissions.
Scope 2
Where primary evidence is available, Scope 2 emissions are calculated by multiplying the
energy consumption within the fiscal year by the appropriate emissions factor based on
geographic location of the energy use. McKesson practices dual-reporting by calculating
Location- and Market-based Scope 2 emissions. The different emissions factors are used for
location and market-based reporting based on the emissions factor source table above.
Where primary evidence is not available, energy consumption is estimated based on a number
of factors. Electric consumption is based on energy splits based on building type and location
based on CBECS utilization factors. The total estimated energy use for a building is calculated
by multiplying the floor area by the appropriate CBECS factors. based on building type and
location. The energy split is also used to break out the buildings total estimated energy use
by natural gas and electricity, and the same emissions factors are applied here as they are
for where primary evidence exists. McKesson ensures adherence to the Scope 2 Market-
Based Data Hierarchy when applying these factors for the purpose of Scope 2 market-based
reporting and also adherence to ensuring all RECs/certificates meet the Scope 2 quality criteria
when being applied for the purpose of Scope 2 market-based reporting
Scope 3 —
Category 1 — Purchased
goods and services
Spend data is sourced from multiple Enterprise Resource Planning (ERP) tools that are utilized
cross the organization. The spend data is consolidated into a single file for analysis, and
vendors are analyzed and assigned appropriate emissions factors based on the vendor
spend-type categorization. WIOD emissions factors are applied for all global spend and non-
pharmaceutical related spend. The USEEIO EPA Supply Chain emissions factors are used for
pharmaceutical-categorized spend in the US from the Medical Surgical and Pharmaceutical
Solutions business units. We utilize the calculated CO2e factor from the detail commodity
factors for pharmaceutical products commodities within the EPA dataset.
McKesson’s GHG
calculation methodology
follows the Greenhouse
Gas Protocol’s guidance
for Scopes 1, 2, 3 emissions
calculations.
Scope
Methodology
Scope 3 —
Category 2 — Capital
goods
Capital spend data is sourced from multiple Enterprise Resource Planning (ERP) tools that are
utilized across the organization. The spend data is consolidated into a single file or
analysis andappropriate WIOD emissions factors are applied based on the spend-type on
categorization. Based on certain limitations working with multiple ERP systems, capital
expenses are included in Category 1 spend value. In order to report on these two categories
separately, we calculate the emissions from Capital goods, and then subtract this value from
the total
Category 1 spend.
Scope 3 —
Category 3 — Fuel and
energy-related activities
Emissions from fuel and energy-related activities are based on primary data where available
or estimated data for Scope 1 and Scope 2 emissions sources. For FY23 we used the Quantis
Estimator tool. In FY24, we switched to using DEFRA factors. DEFRA’s well-to-tank (WTT) and
International Energy Agency (IEA) annual emissions factors for transmission and distribution
losses (T&D) emissions factors are used for calculating category 3 emissions based on
consumption. Fuels where WTT emissions are calculated apply to natural gas, diesel fuel and
propane consumption. T&D losses are calculated for all electric energy consumption.
Scope 3 —
Category 4 — Upstream
transportation and
distribution
Emissions from upstream transportation and distribution are estimated based on the
major vendor. For distribution providers, we leverage their annual GHG emissions estimations
based on McKesson’s specific activity with those providers. Emissions from all other
transportation and distribution related activities are estimated based on vendor spend
categorization, or prior year data, and using the WIOD emissions factors.
Scope 3 —
Category 5 — Waste
generated in operations
Emissions from waste are estimated based on waste tonnage multiplied by the waste-type
specific factors. Emission from waste are estimated based on waste tonnage when available
and multiplied by the waste-type specific DEFRA factors. Where tonnage is not available
spend-based EPA emission factors are used.
Scope 3 —
Category 6 — Business
travel
Emissions from business travel are estimated based on multiple data sources. Our corporate
business travel partner provides an annual emissions file that is based on air travel at
the segment level. Our other primary source of business travel emissions is based on
reimbursements made to employees for personal vehicle use for business purposes.
Scope 3 —
Category 7 — Employee
Commuting
Using our full-time employee headcount at the time of reporting, in FY23 McKesson utilized the
Quantis tool to estimate emissions related to employee commuting. In FY24 McKesson began
using EPA emission factors.
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Data Quality
and Reporting
McKesson’s GHG inventory
listed below is assured by
an outside third party on
an annual basis at a limited
level of assurance. The
metrics below are assured
for the 2023 and 2024
reporting periods.
• Direct Scope 1 GHG emissions [metric tons CO
2
e]
• Indirect Scope 2 emissions - Location-based) [metric tons CO
2
e]
• Indirect Scope 2 emissions - Market-based) [metric tons CO
2
e]
• Gross GHG emissions (Scope 1 + Scope 2 Location-based) [ metric tons CO
2
e]
• Gross GHG emissions (Scope 1 + Scope 2 Market-based) [ metric tons CO
2
e]
• Scope 3 GHG emissions [metric tons CO
2
e]
Category 1 — Purchased goods and services
Category 2 — Capital goods
Category 3 — Fuel- and energy-related activities
Category 4 — Upstream transportation and distribution
Category 5 — Waste generated in operations
Category 6 — Business travel
Category 7 — Employee commuting
Before our inventory is assured, a gap analysis is completed on the underlying datasets to observe potential issues with
the source data. Data owners and subject matter experts are involved in the analysis process to rectify any potential
issues related to the data analysis.
We rely on the data owners to incorporate issues discovered through the data analysis process to ensure that they can
be addressed for future reporting year.
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Cautionary Statements
Legal Notices
This report contains forward-looking
statements within the meaning of Section
27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934.
Forward-looking statements may be identified
by their use of terminology such as “believes,”
“expects,” “anticipates,” “may,” “will,” “should,”
“seeks,” “approximately,” “intends,” “projects,”
“plans,” “estimates,” “targets,” or the negative of
these words or other comparable terminology.
The discussion of trends, strategy, plans,
assumptions, commitments, potential impacts,
or intentions and our greenhouse gas emission
targets may also include forward-looking
statements. Readers should not place undue
reliance on forward-looking statements,
which speak only as of the date they are first
made. Except to the extent required by law, we
undertake no obligation to update or revise our
forward-looking statements. Forward-looking
statements involve risks and uncertainties that
could cause actual results to differ materially
from those projected, anticipated, or implied,
which might impede our sustainability initiatives.
Although it is not possible to predict or identify
all such risks and uncertainties, we encourage
investors to read the risk factors described in
our most recent annual and periodic report filed
with the Securities and Exchange Commission.
These risk factors include, but are not limited
to: we might be adversely impacted by changes
in the economic environments in which we
operate, including from inflation, an economic
slowdown, or a recession; we might be
adversely impacted by events outside of our
control, such as widespread public health issues,
natural disasters, political events and other
catastrophic events we are adversely impacted
by changes or disruptions in product supply
and have had difficulties in sourcing or selling
products due to a variety of causes; We may be
unsuccessful in achieving our strategic growth
objectives, including our AI efforts; we may not
achieve our GHG emissions reduction targets;
SBTi may not validate a sufficient number of our
suppliers’ GHG reduction targets; we may incur
additional costs or operational impacts related
to our GHG reduction initiatives; we may be
adversely affected by global climate change or
by legal, regulatory, or market responses to such
change; and governance issues and regulations,
including those related to social issues, climate
change, and sustainability, and stakeholder
response thereto may have an adverse effect
on our business, financial condition, and results
of operations and damage our reputation.
Except where noted, the information covered
in this report highlights our performance and
initiatives in fiscal year 2024. All calculations
and statistics are in part dependent on the
use of estimates and assumptions based
on historical levels and projections and are
therefore subject to change. This report has
not been externally assured or verified by an
independent third party.
The inclusion of information or the absence
of information in this report should not be
construed to represent McKesson’s belief
regarding the materiality or financial impact of
that information. For a discussion of information
that is material to McKesson, please see our
filings with the SEC, including our Annual
Reports on Form 10-K and Quarterly Reports on
Form 10-Q.
This report may contain links to other internet
sites or references to third parties. Such links or
references are not incorporated by reference
to this report and we can provide no assurance
as to their accuracy. The use or inclusion of the
information is also not intended to represent
endorsements of any products or services.
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© 2024 McKesson Corporation. All rights reserved.
MCKESSON and the MCKESSON logo, and Advancing Health Outcomes for All,
are registered trademarks of McKesson Corporation in the U.S. and other countries.
All other trademarks shown are the property of their respective owners.
Report updated as of July 2, 2024.