We aim to be the clinician’s most trusted partner for medication management, which means our products and services must live up to expectations. When our products deliver, we improve healthcare systems’ performance as well as patient health outcomes. This ties in strategically with our ESG&I Pillar “Innovation” and our commitments to deliver access to integrated care, and equitable access to products and services.
Through the integrated functions of the Office of Corporate Responsibility, ESG risk is managed under one executive who has a direct line to both the Corporate Governance Committee and the Audit Committee of the Board of Directors, chairs the ESG Steering Committee at the executive level, and reports on ESG – including on the materiality of the risks facing Omnicell from an ESG perspective—to the full Board of Directors on a quarterly basis. This provides significant oversight and risk management at the highest levels in Omnicell. Our Vice President of CR also reports on initiatives and progress to the Corporate Governance Committee of the Board of Directors, which approves our ESG goals and targets.
We take a comprehensive view of risk and risk management under the COSO Framework – a philosophy that shapes our operations, including our company-wide ISO 14001 Environmental certification, our focus on continuous innovation in the reduction of Omnicell’s environmental footprint, our ISO 45001 Health & Safety certification at manufacturing facilities, responsible product design and performance, ensuring compliance, and keeping abreast of evolving health & safety regulations. These activities are meant to build trust with our stakeholders, including a Quality Management System (QMS) that is both ISO 13485 and ISO 9001 certified.
Our approach to CR is framed around the pillars of Environmental, Social, Governance, and Innovation. In 2021, we completed a materiality assessment, that identified the material risks to and opportunities for our business under each of these pillars, allowing us to better meet stakeholders’ expectations on performance, and to provide Omnicell the opportunity to link our ESG progress with our business success. This approach is intended to strengthen our protections against legal and regulatory pitfalls while addressing social, climate change, and business strategy risks.
In addition to ongoing engagements with our employees, investors, customers, and communities, in 2021 we undertook our first materiality assessment, designed to help guide our approach to CR in the coming months and years.
We gathered insights about the topics most important to our business, our stakeholders, and our future success through interviews with nearly two dozen internal and external stakeholders, including senior executives across Omnicell’s business as well as leaders from healthcare organizations and the Board of Directors. We also surveyed our employees to learn the compelling ESG factors that influence and inspire them to work for Omnicell. What we learned from this exercise offers us a roadmap to meet the moment through our key ESG&I initiatives and achieve our long-term objectives. To help determine the priority areas for Omnicell, in 2021 we engaged BSR, a global nonprofit business network and consultancy dedicated to sustainability, to conduct a materiality analysis.
Once we completed our materiality assessment, we met with our internal stakeholders and subject matter experts to develop meaningful and relevant goals and targets to address the top 11 material topics identified as paramount to our business. We identified DEI & B, Talent Retention and Recruitment, and Data Privacy and Network Resiliency as leading areas of focus. We presented each topic with goals and targets to the ESG Steering Committee for review and approval. Recognizing this as an iterative process, we intend to continually assess and reassess progress against the goals, as well as the short-term and long-term actions we have committed to undertake.
Once these focus areas were identified, the ESG Working Group developed targets, key performance indicators (KPIs), and short and long-term actions on each material topic. The targets approved by the Corporate Governance Committee of the Board of Directors will be included in the Performance Chapters in future reporting, as we begin to measure against our internal KPIs.
We regularly engage stakeholders to solicit feedback on their expectations, and to improve our performance. We measure employee satisfaction and engagement through regular surveys and facilitate their sharing of ideas and concerns. We are in active conversations with our investor stakeholders to continue to educate them about our business strategy and our positive impacts. Our customer stakeholders count on us to live up to their expectations to improve their efficiency and efficacy, and our customer-centric approach to product quality and innovation helps them achieve their own goals, providing them with their own Customer Success executives. In 2021, we began working with a group of Sustainable MBA students from Duquesne University to assist us with identifying opportunities for improving our environmental footprint. We have continued our engagement with Duquesne into 2022 to assist with our first climate risk assessment for Scope 1 & 2 emissions.
