2021 Sustainability Report

Creating a healthier society requires a healthier environment.

As part of our efforts to improve the health of our communities, we pursue our mission as prudent stewards of the environment. We have a two-pronged approach to environmental management: first, to ensure our own corporate operations protect and improve the environment; and second, to identify, and help our members choose, responsible products and services that, importantly, are safe and efficacious, yet minimize their environmental footprint.

We’re a recognized leader in environmental excellence for our commitment to collaborate with our healthcare providers on environmentally responsible purchasing and energy efficiency initiatives. Our sourcing committees include environmental impact data in their contracting decisions, and our supply chain teams are driving continued green innovations to lower costs, reduce environmental impact and minimize negative consequences to public health.

Premier’s Environmentally Preferred Purchasing (EPP) program is intended to identify environmentally-preferable products, packaging and services. In collaboration with our contracted suppliers, sourcing team and member committees, we help to ensure the availability of those products and services for our members. Premier works with suppliers to ensure sustainability information is made available before purchasing decisions are made. Our requests for information (RFIs) include questions on environmentally preferable policies and practices and are guided by our EPP Advisory Council.

Comprised of sustainability specialists from a cross-section of member health systems, EPP Advisory Council input is vital to ensuring that our efforts reflect members’ goals, and that supplier documentation is fit for purpose. The Council serves not only to advise on EPP matters for contracts, but also as a forum for members to discuss how best to drive sustainability in healthcare and solve common challenges such as plastic elimination in the foodservice setting, composting and waste disposal, and contractual barriers to increased reuse and reprocessing.

Through these efforts, and many more, we are working to address healthcare's role in climate change.

Improving the health of communities is more than just our mission – it is our social responsibility.

We play a critical role in the rapidly evolving healthcare industry, collaborating with our member alliance of more than 4,400 U.S. hospitals and health systems and approximately 225,000 providers and other organizations to reinvent the way care is delivered. Through the collaborative power of our healthcare alliance approach, we are enabling better care and outcomes at a lower cost.

Our values – integrity, innovation, passion for performance and focus on people – guide every business decision we make. Our employees’ unique blend of compassion and innovation plays a core role in our long-term value creation. Our workforce requires diversity of thought, cross-cultural representation and engagement to solve the complex challenges we face. We are committed to a workforce representing different generations, ethnicities, genders, races, orientations, cultures and life experiences. Our values speak to our commitment to treat others fairly, equitably and consistently while affirming that respect for our differences creates our strength.

We believe the core principles of strong corporate governance, ethical standards and responsible business practices are foundational to creating long-term value.

Our Board of Directors sets high standards for our company’s employees, officers and directors. Implicit in their commitment is the importance of sound corporate governance. The Board holds ultimate responsibility for guiding the company’s environmental, social and governance (ESG) initiatives, and the Board’s Nominating and Governance Committee recently assumed responsibility for ESG oversight. We are committed to strong corporate governance, ethical behavior and responsible business practices that build trust and promote the long-term interests of our stakeholders. Integrity forms the basis of our business operations and underpins our business relationships.

For the 15th consecutive year, Premier was recognized by the Ethisphere® Institute as one of the World’s Most Ethical Companies. We were selected for this honor from among tens of thousands of companies around the world for continuing to raise the bar on ethical leadership and corporate behavior.

Sustainable management of the supply chain requires a greater diversity of manufacturing and suppliers than in the past, as well as added transparency. In 2020, we pioneered a syndicated investment model.

We, alongside our members, pool funds to co-invest in domestic manufacturing, providing up-front capital and long-term buying commitments needed to incentivize production capacity expansion, plant modernization and innovation.

Premier also encourages interest from small and diverse suppliers. Our Diverse Supplier Program provides minority, women and veteran-owned business enterprises the opportunity to partner with us to support our efforts to continually lead the way in healthcare innovation.