Greenhouse Gas Emissions Reduction

Our facilities are not just buildings—they are opportunities to demonstrate what decarbonization looks like in practice. We are aggressively retrofitting our existing warehouses and distribution centers with high-efficiency HVAC systems that use advanced controls and smart technologies to optimize energy usage in real-time. We are replacing all lighting with energy-efficient LED systems that use a fraction of the energy of traditional lighting while providing better illumination. We are implementing advanced building management systems that monitor and optimize energy usage across all building systems, identifying inefficiencies and opportunities for improvement continuously. These retrofits are not one-time projects—they are part of an ongoing program of continuous improvement that reduces energy consumption year over year.

New construction projects are designed from the ground up for sustainability and decarbonization. Every new facility follows LEED Gold or higher standards, incorporating sustainable materials, energy-efficient design, water conservation, and other green building features. We incorporate onsite renewable energy generation wherever feasible, including solar panels, wind turbines, and other technologies that generate clean energy on-site. We design buildings to be net-zero or net-positive where possible, meaning they generate as much or more energy than they consume. We recognize that the decisions we make in building design will impact emissions for decades, and we make those decisions with that long-term perspective in mind.

Energy performance is continuously benchmarked and optimized using ENERGY STAR Portfolio Manager and other tools across our entire real estate portfolio. We track energy consumption, identify outliers, investigate causes, and implement improvements systematically. We set aggressive energy reduction targets for each facility and hold facility managers accountable for achieving them. We recognize that what gets measured gets managed, and we measure energy performance with the same rigor we apply to other business metrics. We share best practices across facilities, recognizing that what works in one location can often be adapted for others.

We are transitioning our entire facility portfolio to renewable electricity, recognizing that this is one of the fastest and most effective ways to reduce emissions. We procure renewable energy through power purchase agreements, renewable energy credits, and direct investment in renewable generation. We prioritize onsite generation where feasible, understanding that generating clean energy on our own facilities provides energy security, cost stability, and visible demonstration of our commitment. We work with utilities and energy providers to increase the renewable content of grid electricity, and we advocate for policies that accelerate the transition to renewable energy.

We are exploring and implementing innovative technologies that can further reduce facility emissions, including battery storage systems, microgrids, advanced insulation, smart windows, and other cutting-edge solutions. We recognize that technology is advancing rapidly, and we commit to being early adopters of technologies that can accelerate our decarbonization. We partner with technology providers, research institutions, and other organizations to pilot and scale innovative solutions. We understand that achieving deep emissions reductions will require technologies that do not yet exist, and we are committed to supporting their development and adoption.

Transportation is a major source of emissions in our operations, and we are transforming our logistics to minimize that impact. Fleet electrification is a top priority, and we are transitioning our delivery vehicles to electric and other zero-emission technologies as rapidly as possible. We recognize that the technology and infrastructure for electric vehicles are advancing quickly, and we are positioning ourselves to take advantage of those advances. We work with vehicle manufacturers, charging infrastructure providers, and other partners to accelerate the transition to electric fleets. We understand that fleet electrification requires significant investment, but we also understand that the cost of inaction is far greater.

For vehicles that cannot yet be electrified, we are adopting alternative fuels including renewable natural gas, hydrogen, and advanced biofuels. We recognize that different applications may require different solutions, and we are exploring all viable options. We work with fuel providers to increase the availability and reduce the cost of low-carbon fuels. We understand that the transition to low-carbon transportation requires building new infrastructure and supply chains, and we are committed to being part of that build-out.

Route optimization algorithms minimize miles traveled, reduce idling time, and maximize load efficiency, reducing emissions even from conventional vehicles. We use advanced logistics software that considers traffic patterns, weather, delivery windows, and other factors to optimize routes in real-time. We consolidate shipments whenever possible, recognizing that fewer trips mean fewer emissions. We work with customers to optimize delivery schedules and frequencies, balancing service levels with environmental impact. We understand that optimization is an ongoing process, and we continuously refine our algorithms and processes.

Carrier contracts include carbon intensity metrics and incentives for adopting cleaner technologies, ensuring that our logistics partners share our commitment to emissions reduction. We measure and report on the carbon intensity of our logistics operations, and we work with carriers to reduce that intensity over time. We provide incentives for carriers who invest in low-emission vehicles, optimize their operations, and achieve emissions reductions. We recognize that we cannot achieve our logistics emissions goals alone—we need our carrier partners to be part of the solution, and we structure our relationships to make that happen.

Inventory positioning and demand forecasting reduce the need for expedited air freight, which has a much higher carbon footprint than ground or sea transport. We position inventory strategically to minimize transportation distances and enable ground or sea transport instead of air. We use advanced demand forecasting to reduce the need for expedited shipments, recognizing that better planning means fewer emissions. We work with customers to optimize order patterns and lead times, balancing their needs with environmental impact. We recognize that modal shifts—moving freight from air to ground, or from truck to rail or sea—can dramatically reduce emissions, and we make those shifts whenever possible without compromising service levels.

The products we distribute have environmental impacts throughout their lifecycle, and we are working to minimize those impacts through circular economy strategies. We are expanding product take-back and refurbishment programs in collaboration with manufacturers and healthcare institutions, recognizing that keeping products in use is far better for the environment than disposing of them. We work with manufacturers to design products for durability, repairability, and recyclability, understanding that design decisions made today will impact the environment for decades. We partner with healthcare institutions to establish take-back programs that recover products at end-of-life and return them to productive use through refurbishment, remanufacturing, or recycling.

Lifecycle assessments inform our product and packaging decisions, ensuring that we understand the full environmental impact of the products we distribute. We use these assessments to identify opportunities for packaging redesigns that reduce material use, increase recyclable content, and eliminate unnecessary packaging. We work with manufacturers to identify component reuse opportunities, recognizing that many products contain components that can be recovered and reused. We explore material substitution opportunities, working with manufacturers to replace high-impact materials with lower-impact alternatives. We understand that product lifecycle impacts are often the largest portion of our carbon footprint, and we are committed to addressing those impacts comprehensively.

Customer education is essential to circular economy success, and we run comprehensive campaigns that promote sustainable procurement choices and end-of-life management best practices. We help customers understand the environmental impact of their procurement decisions, providing tools and information that enable them to make more sustainable choices. We educate customers about proper end-of-life management, including take-back programs, recycling options, and disposal best practices. We recognize that customers are essential partners in building a circular economy, and we invest in their education and engagement.

We are building reverse logistics capabilities that enable us to efficiently collect, sort, and process products at end-of-life. We recognize that effective circular economy strategies require robust reverse logistics, and we are investing in the infrastructure and processes necessary to make that happen. We work with partners who specialize in product recovery, refurbishment, and recycling, recognizing that building a circular economy requires collaboration across the value chain. We understand that reverse logistics can be complex and costly, but we also understand that the environmental benefits make it essential.

We measure and report on our circular economy progress, tracking metrics including product take-back rates, refurbishment volumes, recycling rates, and other indicators of circularity. We set ambitious goals for increasing circularity and hold ourselves accountable for achieving them. We recognize that building a circular economy is a long-term transformation, but we are committed to making progress continuously. We understand that circular economy strategies not only reduce emissions but also reduce waste, conserve resources, and create economic value, and we are committed to realizing those benefits.