Cardinal Health Inc. - Climate Change Response 2019 · Cardinal Health Inc. - Climate Change 2019...

Cardinal Health Inc. - Climate Change 2019

C0. Introduction

C0.1

(C0.1) Give a general description and introduction to your organization.

Cardinal Health, Inc. is an Ohio corporation formed in 1979 and is a global, integrated healthcare services and products companyproviding customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories andphysician offices. We provide medical products and pharmaceuticals and cost-effective solutions that enhance supply chainefficiency. We manage our business and report our financial results in two segments: Pharmaceutical and Medical.

Backed by nearly 100 years of experience, Cardinal Health ranks among the top 25 on the Fortune 500. Being a good corporatecitizen is as much about how we work as it is about the work we do. Every day, our approximately 50,000 employees in 46 countriesleverage their experience and expertise to reduce healthcare costs and improve the lives of patients. We aim to create workenvironments where every one of our employees can thrive, professionally and personally. As a company and as employees, westrengthen the communities where we live and work. And we work to minimize our businesses’ impact on the environment.

Our Pharmaceutical segment distributes branded and generic pharmaceutical, specialty pharmaceutical, and over-the-counterhealthcare and consumer products in the United States. This segment also provides services to pharmaceutical manufacturers andhealthcare providers to support the development, marketing, and distribution of specialty pharmaceutical products; operates nuclearpharmacies and radio-pharmaceutical manufacturing facilities; provides pharmacy management services to hospitals, as well asmedication therapy management and patient outcomes services to hospitals, other healthcare providers and payers; and repackagesgeneric pharmaceuticals and over-the-counter healthcare products.

Our Medical segment manufactures, sources and distributes Cardinal Health branded medical, surgical and laboratory products,which are sold in the United States, Canada, Europe, Asia and other markets. In addition to distributing Cardinal Health brandedproducts, this segment also distributes a broad range of national brand products and provides supply chain services and solutions tohospitals, ambulatory surgery centers, clinical laboratories and other healthcare providers in the United States and Canada. Thissegment also distributes medical products to patients' homes in the United States through our Cardinal Health at Home division

C0.2

(C0.2) State the start and end date of the year for which you are reporting data.

Start date End date Indicate if you are providing emissions data for pastreporting years

Select the number of past reporting years you will be providingemissions data for

Row1

January 12018

December 312018

Yes 2 years

C0.3

CDP Page of 301

(C0.3) Select the countries/regions for which you will be supplying data.AustraliaCanadaCosta RicaDominican RepublicGermanyIrelandJapanMalaysiaMaltaMexicoPhilippinesPuerto RicoThailandUnited States of America

C0.4

(C0.4) Select the currency used for all financial information disclosed throughout your response.USD

C0.5

(C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are beingreported. Note that this option should align with your consolidation approach to your Scope 1 and Scope 2 greenhouse gasinventory.Operational control

C1. Governance

C1.1

(C1.1) Is there board-level oversight of climate-related issues within your organization?Yes

C1.1a

(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.

Position ofindividual(s)

Please explain

Board-levelcommittee

In May 2019, the board approved a change to its Nominating and Governance Committee’s Charter to designate that committee as havingoversight of the Company’s environmental sustainability and other corporate citizenship activities.

C1.1b

CDP Page of 302

(C1.1b) Provide further details on the board’s oversight of climate-related issues.

Frequency with whichclimate-related issues are ascheduled agenda item

Governance mechanismsinto which climate-relatedissues are integrated

Please explain

Other, please specify Other, please specify In May 2019, the board approved a change to its Nominating and Governance Committee’sCharter to designate that committee as having oversight of the Company’s environmentalsustainability and other corporate citizenship activities.

C1.2

(C1.2) Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues.

Name of the position(s) and/or committee(s) Responsibility Frequency of reportingto the board on climate-related issues

Other, please specify (The Environment, Social, and Governance (ESG) Steering Committee is comprised andlead by senior leadership (Senior Vice Presidents, Vice Presidents, Directors, and Managers) from diversecompany branches. This committee addresses ESG issues.)

Assessing climate-related risks andopportunities

As important matters arise

C1.2a

(C1.2a) Describe where in the organizational structure this/these position(s) and/or committees lie, what their associatedresponsibilities are, and how climate-related issues are monitored (do not include the names of individuals).

Cardinal Health has a Global Environmental Sustainability Program is responsible for providing subject matter expertise onemissions, energy efficiency, and external sustainability reporting to meet the global business agenda. The Global EnvironmentalSustainability Program provides reports to the Environmental, Social, Governance Committee (Corporate Responsibility Committee)which helps assess opportunities. The Global Environmental Sustainability Program reports through the Environment, Health andSafety function up to the Chief Human Resources Officer.

C1.3

(C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets?Yes

C1.3a

(C1.3a) Provide further details on the incentives provided for the management of climate-related issues (do not include thenames of individuals).

Who is entitled to benefit from these incentives?Business unit manager

Types of incentivesMonetary reward

Activity incentivizedBehavior change related indicator

CommentA portion of the business unit manager pay structure is tied to a monetary incentive that is based off of EH&S risk metrics.

CDP Page of 303

C2. Risks and opportunities

C2.1

(C2.1) Describe what your organization considers to be short-, medium- and long-term horizons.

From (years) To (years) Comment

Short-term 1 2

Medium-term 3 5

Long-term 5 10

C2.2

(C2.2) Select the option that best describes how your organization's processes for identifying, assessing, and managingclimate-related issues are integrated into your overall risk management.Integrated into multi-disciplinary company-wide risk identification, assessment, and management processes

C2.2a

(C2.2a) Select the options that best describe your organization's frequency and time horizon for identifying and assessingclimate-related risks.

Frequency of monitoring How far into the future are risks considered? Comment

Row 1 Annually 1 to 3 years

C2.2b

(C2.2b) Provide further details on your organization’s process(es) for identifying and assessing climate-related risks.

Cardinal Health utilizes an Enterprise Risk Management (ERM) process to identify and prioritize risks to the company. This processmonitors legal and regulatory requirements to support compliance and risk identification and reduction efforts. Environment Healthand Safety (EHS) is one of the many areas that ERM monitors. ERM addresses general risks to overall business continuityoperations for protection of people and processes while developing action plans to reduce risk.

Cardinal Health has an EHS risk management process that is managed through the EHS Management System (EHSMS). A keyelement of the EHSMS (similar to ISO 14001) is hazard recognition, evaluation, and control. This element establishes the need for aprocess to continuously identify and assess hazards and their associated risks, and requires elimination or reduction strategies to beimplemented.

C2.2c

CDP Page of 304

(C2.2c) Which of the following risk types are considered in your organization's climate-related risk assessments?

Relevance & inclusion Please explain

Current regulation Relevant, sometimes included

Emerging regulation Relevant, sometimes included

Technology Relevant, sometimes included

Legal Relevant, sometimes included

Market Relevant, sometimes included

Reputation Relevant, sometimes included

Acute physical Relevant, sometimes included

Chronic physical Relevant, sometimes included

Upstream Not evaluated

Downstream Not evaluated

C2.2d

(C2.2d) Describe your process(es) for managing climate-related risks and opportunities.

Identifying relevant risks or opportunities is an ongoing process and integrated into the management process.

C2.3

(C2.3) Have you identified any inherent climate-related risks with the potential to have a substantive financial or strategicimpact on your business?No

C2.3b

(C2.3b) Why do you not consider your organization to be exposed to climate-related risks with the potential to have asubstantive financial or strategic impact on your business?

Primary reason Please explain

Row1

Risks exist, but none with potential to have asubstantive financial or strategic impact onbusiness

we are primarily a pharmaceutical and medical products distribution and logistics company withmanufacturing operations and do not believe we are exposed to significant climate-related risks in ourfacilities.

C2.4

(C2.4) Have you identified any climate-related opportunities with the potential to have a substantive financial or strategicimpact on your business?No

C2.4b

CDP Page of 305

(C2.4b) Why do you not consider your organization to have climate-related opportunities?

Primary reason Please explain

Row 1 Evaluation in progress There is a continuous process to address risks and opportunities related to the business.

C3. Business Strategy

C3.1

(C3.1) Are climate-related issues integrated into your business strategy?Yes

C3.1a

(C3.1a) Does your organization use climate-related scenario analysis to inform your business strategy?No, and we do not anticipate doing so in the next two years

C3.1c

(C3.1c) Explain how climate-related issues are integrated into your business objectives and strategy.

The Cardinal Health Global Environmental Sustainability Program has key principles that guide our efforts. Pollution Prevention,Energy Optimization, Design for Environment, and Employee and Public Outreach guide the programs strategic priorities. The GlobalEnvironment Health and Safety (EHS) Program has a Global EHS Policy, Global EHS Management System (EHSMS), and GlobalEHS Standards.

Cardinal Health utilizes a Global EHSMS similar to ISO 14001 and OHSAS 18001.

The EHSMS is a Plan-Do-Check-Adjust continuous model to manage EHS and that holds management accountable for EHS throughgoal setting, defining roles, and responsibilities, developing proactive performance measures, as well as holding individualsaccountable. The Cardinal Health EHSMS provides the structure, strategy and expectations to continually improve EHSperformance. This establishes the need for a process to continuously identify and assess hazards and their associated risks, andrequires elimination or reduction strategies to be implemented.

A key element of the EHSMS is Hazard Recognition, Evaluation and Control which establishes and documents a process tocontinuously identify and assess hazards and associated risks (including compliance with existing and emerging regulatoryrequirements) and establishes methods to eliminate or reduce the risk. The EHSMS defines the planning, implementation,assessment and measurement of the management system.

Cardinal Health utilizes an Enterprise Risk Management (ERM) process to identify and prioritize risks to the company. This processmonitors legal and regulatory requirements to support compliance and risk identification and reduction efforts. Environment Healthand Safety (EHS) is one of the many areas that ERM monitors. ERM addresses general risks to overall business continuityoperations for protection of people and processes while developing action plans to reduce risk.

CDP Page of 306

C3.1g

(C3.1g) Why does your organization not use climate-related scenario analysis to inform your business strategy?

Cardinal Health has not undertaken a comprehensive analysis to climate related scenarios. The organization has a multitude of risksand opportunities that have been prioritized and climate scenario analysis has not risen to the top yet.

C4. Targets and performance

C4.1

(C4.1) Did you have an emissions target that was active in the reporting year?No target

C4.1c

(C4.1c) Explain why you do not have emissions target and forecast how your emissions will change over the next five years.

Primary reason Five-year forecast Please explain

Row1

Other, pleasespecify (Internaltargets, but nopublic targets.)

A greenhouse gas emission reduction target will be established andpublicly disclosed for the pharmaceutical distribution business in the nexttwo years. Further analysis may lead to a broader scope of the emissionreduction target.

The nature of the business has undergone substantialchanges over the past 5 years and during these times it ishard to anticipate the carbon accounting practices ofacquired businesses.

C4.2

(C4.2) Provide details of other key climate-related targets not already reported in question C4.1/a/b.

C4.3

(C4.3) Did you have emissions reduction initiatives that were active within the reporting year? Note that this can includethose in the planning and/or implementation phases.Yes

C4.3a

(C4.3a) Identify the total number of initiatives at each stage of development, and for those in the implementation stages, theestimated CO2e savings.

Number of initiatives Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)

Under investigation 10

To be implemented* 5

Implementation commenced* 1

Implemented* 6 0

Not to be implemented 0 0

CDP Page of 307

C4.3b

(C4.3b) Provide details on the initiatives implemented in the reporting year in the table below.

Initiative typeEnergy efficiency: Building services

Description of initiativeLighting

Estimated annual CO2e savings (metric tonnes CO2e)1100

ScopeScope 2 (location-based)

Voluntary/MandatoryVoluntary

Annual monetary savings (unit currency – as specified in C0.4)

Investment required (unit currency – as specified in C0.4)

Payback period1-3 years

Estimated lifetime of the initiative6-10 years

CommentMultiple LED conversion projects were completed in 2018.

C4.3c

(C4.3c) What methods do you use to drive investment in emissions reduction activities?

Method Comment

Compliance with regulatoryrequirements/standards

Cardinal Health has engaged in building bench marking through Energy Star Portfolio Manager in sites that are within thejurisdiction of mandatory bench marking requirements.

Dedicated budget for energyefficiency

Capital is budgeted for energy efficiency projects on a site by site basis.

Employee engagement Individual site management works with employees to help drive reduction in operational costs.

C4.5

(C4.5) Do you classify any of your existing goods and/or services as low-carbon products or do they enable a third party toavoid GHG emissions?No

C5. Emissions methodology

C5.1

CDP Page of 308

(C5.1) Provide your base year and base year emissions (Scopes 1 and 2).

Scope 1

Base year startJuly 1 2009

Base year endJune 30 2010

Base year emissions (metric tons CO2e)148856

Comment

Scope 2 (location-based)

Base year startJuly 1 2009

Base year endJune 30 2010

Base year emissions (metric tons CO2e)212644

Comment

Scope 2 (market-based)

Base year start

Base year end

Base year emissions (metric tons CO2e)

Comment

C5.2

(C5.2) Select the name of the standard, protocol, or methodology you have used to collect activity data and calculate Scope1 and Scope 2 emissions.The Climate Registry: General Reporting Protocol

C6. Emissions data

C6.1

CDP Page of 309

(C6.1) What were your organization’s gross global Scope 1 emissions in metric tons CO2e?

Reporting year

Gross global Scope 1 emissions (metric tons CO2e)173000

Start dateJanuary 1 2018

End dateDecember 31 2018

Comment

Past year 1




CommentValidated with a Limited Level of Assurance in accordance with ISO14064-3

Past year 2





C6.2

(C6.2) Describe your organization’s approach to reporting Scope 2 emissions.

Row 1

Scope 2, location-basedWe are reporting a Scope 2, location-based figure

Scope 2, market-based

Comment

C6.3

CDP Page of 3010

(C6.3) What were your organization’s gross global Scope 2 emissions in metric tons CO2e?

Reporting year

Scope 2, location-based350000

Scope 2, market-based (if applicable)<Not Applicable>



Comment

Past year 1






Past year 2






C6.4

(C6.4) Are there any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissionsthat are within your selected reporting boundary which are not included in your disclosure?Yes

C6.4a

CDP Page of 3011

(C6.4a) Provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundarywhich are not included in your disclosure.

SourceScope 1 and 2 for selected sites.

Relevance of Scope 1 emissions from this sourceEmissions are not evaluated

Relevance of location-based Scope 2 emissions from this sourceEmissions are not evaluated

Relevance of market-based Scope 2 emissions from this source (if applicable)Please select

Explain why this source is excludedThere are selected sites that do not disclose emissions as a result of lack of access to data. Some sites are leased facilities forwhich there is no visibility to electric or natural gas usage as a result landlord billing.

C6.5

(C6.5) Account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions.

Purchased goods and services

Evaluation statusRelevant, not yet calculated

Metric tonnes CO2e<Not Applicable>

Emissions calculation methodology<Not Applicable>

Percentage of emissions calculated using data obtained from suppliers or value chain partners<Not Applicable>

ExplanationNo system in place to determine these emissions of related goods and services.

Capital goods





ExplanationNo system in place to evaluate the emissions associated with capital goods.

CDP Page of 3012

Fuel-and-energy-related activities (not included in Scope 1 or 2)

Evaluation statusNot evaluated




Explanation

Upstream transportation and distribution





ExplanationNo method in place to track emissions data related to upstream distribution.

Waste generated in operations





ExplanationNo framework for calculating emissions associated with waste practices.

Business travel

Evaluation statusRelevant, calculated

Metric tonnes CO2e20400

Emissions calculation methodologyBusiness travel flights from North America are booked using a centralized service. The software that books the trips can providereports that outline the distance traveled each flight. EPA Guidance on Emission Factors for Greenhouse Gas Inventories are usedto break out the flights into Short, Medium and Long Haul flights from which emissions are calculated accordingly.

Percentage of emissions calculated using data obtained from suppliers or value chain partners0

ExplanationWe utilize our travel booking software to report our business travel miles directly.

CDP Page of 3013

Employee commuting





ExplanationNo framework in place to capture emissions associated with commuter mileage across the enterprise.

Upstream leased assets





Explanation

Downstream transportation and distribution





ExplanationNo methodology has been developed to evaluate downstream transportation emissions.

Processing of sold products





ExplanationNo framework exists to capture the emissions of products that are processed outside of our boundary.

CDP Page of 3014

Use of sold products

Evaluation statusNot relevant, explanation provided




ExplanationMedical and pharmaceutical products that are manufactured or distributed by Cardinal Health have a minimal carbon footprintduring use and no methodology exists to track emissions during use of product.

End of life treatment of sold products





ExplanationNo system in place to determine the end of life outcomes for products sold.

Downstream leased assets





Explanation

Franchises





Explanation

CDP Page of 3015

Investments





ExplanationNo framework in place to evaluate the emissions of the investment portfolio.

Other (upstream)





Explanation

Other (downstream)





Explanation

C6.7

(C6.7) Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?No

C6.10

CDP Page of 3016

(C6.10) Describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tons CO2e per unitcurrency total revenue and provide any additional intensity metrics that are appropriate to your business operations.

Intensity figure0.0000038

Metric numerator (Gross global combined Scope 1 and 2 emissions)523000

Metric denominatorunit total revenue

Metric denominator: Unit total136809000000

Scope 2 figure usedLocation-based

% change from previous year31.6

Direction of changeIncreased

Reason for changeThe carbon intensity increased in a year over year comparison as a result of the acquisition of our Patient Recovery medicalproducts business from Medtronic in July 2017. The acquisition substantially increased the number of manufacturing facilities withinthe portfolio which are inherently more energy intensive relative to the core distribution business.

C7. Emissions breakdowns

C7.1

(C7.1) Does your organization break down its Scope 1 emissions by greenhouse gas type?Yes

C7.1a

(C7.1a) Break down your total gross global Scope 1 emissions by greenhouse gas type and provide the source of each usedgreenhouse warming potential (GWP).

Greenhouse gas Scope 1 emissions (metric tons of CO2e) GWP Reference

CO2 172220 IPCC Fifth Assessment Report (AR5 – 100 year)

CH4 3.15 IPCC Fifth Assessment Report (AR5 – 100 year)

N2O 2.45 IPCC Fifth Assessment Report (AR5 – 100 year)

C7.2

CDP Page of 3017

(C7.2) Break down your total gross global Scope 1 emissions by country/region.

Country/Region Scope 1 emissions (metric tons CO2e)

Puerto Rico 838

Other, please specify (United States of America and Canada) 122007

Europe, Middle East and Africa (EMEA) 2650

Latin America (LATAM) 2198

Asia Pacific (or JAPA) 45284

C7.3

(C7.3) Indicate which gross global Scope 1 emissions breakdowns you are able to provide.By business division

C7.3a

(C7.3a) Break down your total gross global Scope 1 emissions by business division.

Business division Scope 1 emissions (metric ton CO2e)

Medical 77800

Pharmaceutical 32700

Corporate 62500

C7.5

(C7.5) Break down your total gross global Scope 2 emissions by country/region.

Country/Region Scope 2, location-based (metric tonsCO2e)

Scope 2, market-based (metric tonsCO2e)

Purchased and consumedelectricity, heat, steam orcooling (MWh)

Purchased and consumed low-carbon electricity,heat, steam or cooling accounted in market-basedapproach (MWh)

Puerto Rico 3591 7004

Latin America (LATAM) 30092 71166

Other, please specify(United State of Americaand Canada)

272039 548211

Europe, Middle East andAfrica (EMEA)

5104 8353

Asia Pacific (or JAPA) 38377 72888

C7.6

(C7.6) Indicate which gross global Scope 2 emissions breakdowns you are able to provide.By business division

C7.6a

CDP Page of 3018

(C7.6a) Break down your total gross global Scope 2 emissions by business division.

Business division Scope 2, location-based emissions (metric tons CO2e) Scope 2, market-based emissions (metric tons CO2e)

Medical 240600

Pharmaceutical 83900

Corporate 24700

C7.9

(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to those of theprevious reporting year?Increased

C7.9a

(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of themspecify how your emissions compare to the previous year.

Change in emissions(metric tons CO2e)

Directionof change

Emissions value(percentage)

Please explain calculation

Change in renewableenergy consumption

<NotApplicable>

Other emissionsreduction activities

<NotApplicable>

Divestment <NotApplicable>

Acquisitions 145000 Increased 28 Major acquisition of Patient Recovery medical products business fromMedtronic resulted in substantial increase in emission profile.

Mergers <NotApplicable>

Change in output <NotApplicable>

4

Change in methodology <NotApplicable>

Change in boundary <NotApplicable>

Change in physicaloperating conditions

<NotApplicable>

Unidentified <NotApplicable>

Other 14000 Increased 3 Natural fluctuations in production and weather likely resulting in minor increasein emission profile.

C7.9b

(C7.9b) Are your emissions performance calculations in C7.9 and C7.9a based on a location-based Scope 2 emissions figureor a market-based Scope 2 emissions figure?Location-based

C8. Energy

CDP Page of 3019

C8.1

(C8.1) What percentage of your total operational spend in the reporting year was on energy?More than 0% but less than or equal to 5%

C8.2

(C8.2) Select which energy-related activities your organization has undertaken.

Indicate whether your organization undertakes this energy-related activity

Consumption of fuel (excluding feedstocks) Yes

Consumption of purchased or acquired electricity Yes

Consumption of purchased or acquired heat No

Consumption of purchased or acquired steam No

Consumption of purchased or acquired cooling No

Generation of electricity, heat, steam, or cooling Yes

C8.2a

(C8.2a) Report your organization’s energy consumption totals (excluding feedstocks) in MWh.

Heating value MWh from renewablesources

MWh from non-renewablesources

Total MWh

Consumption of fuel (excluding feedstock) HHV (higher heatingvalue)

0 844309 844.3

Consumption of purchased or acquired electricity <Not Applicable> 0 707623 707623

Consumption of purchased or acquired heat <Not Applicable> <Not Applicable> <Not Applicable> <NotApplicable>

Consumption of purchased or acquired steam <Not Applicable> <Not Applicable> <Not Applicable> <NotApplicable>

Consumption of purchased or acquired cooling <Not Applicable> <Not Applicable> <Not Applicable> <NotApplicable>

Consumption of self-generated non-fuel renewableenergy

<Not Applicable> 181 <Not Applicable> 181

Total energy consumption <Not Applicable> 181 1551932 1552113

C8.2b

(C8.2b) Select the applications of your organization’s consumption of fuel.

Indicate whether your organization undertakes this fuel application

Consumption of fuel for the generation of electricity Yes

Consumption of fuel for the generation of heat Yes

Consumption of fuel for the generation of steam Yes

Consumption of fuel for the generation of cooling No

Consumption of fuel for co-generation or tri-generation Yes

CDP Page of 3020

C8.2c

(C8.2c) State how much fuel in MWh your organization has consumed (excluding feedstocks) by fuel type.

Fuels (excluding feedstocks)Diesel

Heating valueHHV (higher heating value)

Total fuel MWh consumed by the organization182068

MWh fuel consumed for self-generation of electricity0

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self-generation of steam0

MWh fuel consumed for self-generation of cooling<Not Applicable>

MWh fuel consumed for self-cogeneration or self-trigeneration0

Comment

Fuels (excluding feedstocks)Natural Gas








Comment

Fuels (excluding feedstocks)Jet Kerosene




CDP Page of 3021





Comment

Fuels (excluding feedstocks)Motor Gasoline








Comment

Fuels (excluding feedstocks)Liquefied Petroleum Gas (LPG)








Comment

C8.2d

CDP Page of 3022

(C8.2d) List the average emission factors of the fuels reported in C8.2c.

Diesel

Emission factor10.21

Unitkg CO2 per gallon

Emission factor sourceTCR 2017 Default Emissions Factors Table 13.1

Comment

Jet Kerosene

Emission factor9.75

Unitkg CO2e per gallon


Comment

Liquefied Petroleum Gas (LPG)

Emission factor5.68



Comment

Motor Gasoline

Emission factor8.78



Comment

Natural Gas

Emission factor53.06

Unitkg CO2 per million Btu


Comment

C8.2e

CDP Page of 3023

(C8.2e) Provide details on the electricity, heat, steam, and cooling your organization has generated and consumed in thereporting year.

Total Grossgeneration (MWh)

Generation that is consumed by theorganization (MWh)

Gross generation fromrenewable sources (MWh)

Generation from renewable sources that isconsumed by the organization (MWh)

Electricity 3615 3615 181 181

Heat 0 0 0 0

Steam 0 0 0 0

Cooling 0 0 0 0

C8.2f

(C8.2f) Provide details on the electricity, heat, steam and/or cooling amounts that were accounted for at a low-carbonemission factor in the market-based Scope 2 figure reported in C6.3.

C9. Additional metrics

C9.1

(C9.1) Provide any additional climate-related metrics relevant to your business.

DescriptionWaste

Metric value

Metric numerator

Metric denominator (intensity metric only)

% change from previous year

Direction of change<Not Applicable>

Please explain

C10. Verification

C10.1

(C10.1) Indicate the verification/assurance status that applies to your reported emissions.

Verification/assurance status

Scope 1 Third-party verification or assurance process in place

Scope 2 (location-based or market-based) Third-party verification or assurance process in place

Scope 3 Third-party verification or assurance process in place

CDP Page of 3024

C10.1a

(C10.1a) Provide further details of the verification/assurance undertaken for your Scope 1 and/or Scope 2 emissions andattach the relevant statements.

ScopeScope 1

Verification or assurance cycle in placeAnnual process

Status in the current reporting yearComplete

Type of verification or assuranceLimited assurance

Attach the statementCardinal Health - CDP Verification Statement Limited_Final 7.10.2019.pdf

Page/ section reference

Relevant standardISO14064-3

Proportion of reported emissions verified (%)100

ScopeScope 2 location-based



Type of verification or assuranceLimited assurance


Page/ section reference


Proportion of reported emissions verified (%)100

C10.1b

CDP Page of 3025

(C10.1b) Provide further details of the verification/assurance undertaken for your Scope 3 emissions and attach the relevantstatements.

ScopeScope 3- at least one applicable category




Page/section reference


C10.2

(C10.2) Do you verify any climate-related information reported in your CDP disclosure other than the emissions figuresreported in C6.1, C6.3, and C6.5?No, but we are actively considering verifying within the next two years

C11. Carbon pricing

C11.1

(C11.1) Are any of your operations or activities regulated by a carbon pricing system (i.e. ETS, Cap & Trade or Carbon Tax)?Yes

C11.1a

(C11.1a) Select the carbon pricing regulation(s) which impacts your operations.EU ETSIreland carbon taxJapan carbon taxMexico carbon tax

C11.1b

CDP Page of 3026

(C11.1b) Complete the following table for each of the emissions trading systems in which you participate.

EU ETS

% of Scope 1 emissions covered by the ETS

Period start date

Period end date

Allowances allocated

Allowances purchased

Verified emissions in metric tons CO2e

Details of ownershipFacilities we own and operate

Comment

C11.1c

(C11.1c) Complete the following table for each of the tax systems in which you participate.

Ireland carbon tax

Period start dateJanuary 1 2018

Period end dateDecember 31 2018

% of emissions covered by tax0.5

Total cost of tax paid

Comment

Japan carbon tax





Comment

Mexico carbon tax





Comment

CDP Page of 3027

C11.1d

(C11.1d) What is your strategy for complying with the systems in which you participate or anticipate participating?

Carbon pricing increases costs on pass through fuel and electricity charges for operations. Not a large enough user for direct taxationor application of other ETS.

C11.2

(C11.2) Has your organization originated or purchased any project-based carbon credits within the reporting period?No

C11.3

(C11.3) Does your organization use an internal price on carbon?No, and we do not currently anticipate doing so in the next two years

C12. Engagement

C12.1

(C12.1) Do you engage with your value chain on climate-related issues?Yes, our suppliersYes, our customers

C12.1a

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(C12.1a) Provide details of your climate-related supplier engagement strategy.

Type of engagementOther, please specify (Vendor Code of Conduct Policy)

Details of engagementOther, please specify (Vendor Code of Conduct Policy)

% of suppliers by number100

% total procurement spend (direct and indirect)100

% Scope 3 emissions as reported in C6.50

Rationale for the coverage of your engagementCardinal Health expects all vendors to abide by the Vendor Code of Conduct Policy which is provided at the beginning of theengagement.

Impact of engagement, including measures of successVendors who continue to earn business from Cardinal Health follow the Vendor Code of Conduct Policy.

CommentFrom the Vendor Code of Conduct: "Environment and Sustainability. Vendors must operate in an environmentally responsible andefficient manner and shall strive to minimize adverse impacts on the environment. Vendors must conserve natural resources, avoidthe use of hazardous materials where possible, and promote activities that reuse and recycle. Vendors will engage in thedevelopment and use of climate-friendly products and processes to reduce power consumption and greenhouse gas emissions."

C12.1b

(C12.1b) Give details of your climate-related engagement strategy with your customers.

Type of engagementCollaboration & innovation

Details of engagementRun a campaign to encourage innovation to reduce climate change impacts

% of customers by number

% Scope 3 emissions as reported in C6.50

Please explain the rationale for selecting this group of customers and scope of engagementCardinal Health engages with customers to meet growing demands of the market and to retain good working relationships.

Impact of engagement, including measures of successPrograms have been designed to reduce waste in interactions with customers, particularly as it relates to reducing the packagingduring the shipment and delivery of goods.

C12.3

(C12.3) Do you engage in activities that could either directly or indirectly influence public policy on climate-related issuesthrough any of the following?Please select

C12.4

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(C12.4) Have you published information about your organization’s response to climate change and GHG emissionsperformance for this reporting year in places other than in your CDP response? If so, please attach the publication(s).

PublicationIn voluntary sustainability report

StatusComplete

Attach the documentcardinal-health-corporate-citizenship-report-2018.pdf

Page/Section reference

Content elementsGovernanceStrategyRisks & opportunitiesEmissions figuresOther metrics

Comment

C14. Signoff

C-FI

(C-FI) Use this field to provide any additional information or context that you feel is relevant to your organization's response.Please note that this field is optional and is not scored.

C14.1

(C14.1) Provide details for the person that has signed off (approved) your CDP climate change response.

Job title Corresponding job category

Row1

Senior Vice President, Associate General Council, CorporateSecretary

Other, please specify (Senior Vice President, Associate General Council, CorporateSecretary)

Submit your response

In which language are you submitting your response?English

Please confirm how your response should be handled by CDP

Public or Non-Public Submission I am submitting to

I am submitting my response Public InvestorsCustomers

Please confirm belowI have read and accept the applicable Terms

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Cardinal Health Inc. - Climate Change Response 2019 · Cardinal Health Inc. - Climate Change 2019...

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