How Cardinal Health Delivers Sustainability in Healthcare

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Jason Hollar, Chief Executive Officer at Cardinal Health
Cardinal Health provides sustainable pharmaceutical distribution and healthcare solutions to thousands of facilities across the United States

Cardinal Health operates as a major distributor serving thousands of pharmacies throughout the care spectrum, spanning retail pharmacy operations, hospital facilities, long-term care providers and community health centres across the United States.

The business delivers customised solutions designed to support pharmacy operations regardless of size or specialism, allowing these facilities to prioritise patient care delivery.

Through 70,000 daily deliveries to healthcare facilities nationwide and partnerships with more than 29,000 pharmacies, 6,200 laboratories and nearly 90% of US hospitals, Cardinal Health offers a combination of dependability and adaptability to address the distinct requirements of each pharmacy partner.

The company's established track record provides the appropriate equilibrium between consistent operations and flexible solutions for healthcare collaborators throughout the country.

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Cardinal Health functions as a prominent distributor and manufacturer within the healthcare and pharmaceutical industries, offering an extensive portfolio of products and services encompassing pharmaceuticals, speciality medicines, medical and laboratory supplies, home healthcare solutions and patient-direct services.

The organisation manages nuclear pharmacy facilities and manufacturing sites, delivers performance and data solutions and assists healthcare providers across hospital settings, long-term care environments, retail and speciality pharmacy operations and physician practices.

Employing more than 50,000 people globally, Cardinal Health generated US$222.6bn in revenue during fiscal year 2024. The company merges operational quality with customer-centric innovation, creating solutions that advance patient care and drive improved outcomes on a daily basis.

The company's dedication to environmental, social and governance principles reinforces its position as a dependable healthcare partner, providing safe, efficient and trustworthy products and services that respond to the changing requirements of patients and providers.


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Cardinal's approach to sustainability

Cardinal Health has developed science-based targets for Scope 1, 2 and 3 greenhouse gas emissions, validated by the Science Based Targets initiative, demonstrating its dedication to quantifiable climate action.

The business targets a 50% reduction in absolute Scope 1 and 2 emissions by fiscal 2030 from a 2019 baseline and seeks to achieve science-based targets among 75% of its suppliers by spending by 2028.

"At Cardinal Health, our environmental, social and governance (ESG) priorities are aligned with our business strategy, as we safely and efficiently deliver products and solutions for our customers and the patients they serve, while fulfilling our role as healthcare's most trusted partner," says Jason Hollar, Chief Executive Officer, in the company's FY24 ESG Report.

"We made progress toward our first target, reducing our Scopes 1 and 2 emissions by 17% since fiscal 2019.

Cardinal Health delivers daily to tens of thousands of locations, supporting millions of patients that rely upon the company’s ability to safely, securely and efficiently deliver critical products and services at the right place and time. Credit: Cardinal Health

"With these efforts, we're reducing our environmental impact and generating savings across our businesses.

"This work also allows us to respond to evolving customer expectations and support our customers in achieving their own sustainability goals."

By fiscal 2024's conclusion, Cardinal Health had secured a 17% reduction in Scope 1 and 2 emissions whilst 66.4% of suppliers by expenditure had implemented science-based objectives.

The organisation's climate action strategy incorporates decarbonisation mechanisms that adapt alongside technological advancement and market shifts, whilst its Sustainable Technologies division reprocesses single-use medical devices, redirecting millions of pounds of waste away from landfills and supporting customers in avoiding carbon emissions.

Cardinal Health embeds these ESG priorities, including energy and climate considerations, responsible sourcing practices, product innovation and community involvement, within its fundamental business strategy, connecting environmental responsibility with operational effectiveness, patient safety and sustained value generation for stakeholders.

Pharmaceutical supply chain security standards

Cardinal Health maintains a leadership position in upholding the safety, integrity and traceability of pharmaceuticals throughout the US supply chain.

In adherence to the Drug Supply Chain Security Act, the company offers round-the-clock access to transaction data for eligible medications at no charge, electronically monitors products at individual package level using manufacturer product identifiers and collaborates extensively with manufacturers and trading partners to prevent counterfeit, contaminated or otherwise dangerous medications from reaching patients.

Cardinal Health's method of optimisation of supply chains in a complex environment. Credit: Cardinal Health

Cardinal Health also holds an industry-leading position in refrigerated pharmaceutical packaging, providing insulated containers with performance-qualified phase-change panels that sustain precise temperature ranges of 2C to 8C during transit.

The green and orange panels function in tandem to safeguard products from freezing or excessive heat exposure and the materials are non-toxic, environmentally responsible and reusable.

Customers can securely return products utilising the same containers and panels, ensuring temperature-sensitive medications remain protected throughout the supply chain.

Through these programmes, Cardinal Health illustrates its commitment to patient safety, regulatory adherence and the dependable delivery of high-quality pharmaceuticals to hospitals, pharmacies and healthcare providers across the nation.

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