By developing and delivering a combination of technology, analytics, and expert services utilizing a single, cloud-based platform, we will empower healthcare and pharmacy providers to increase healthcare value and improve patient outcomes.
Omnicell is focused on reducing our own impacts and helping our customers and stakeholders operate more efficiently. Our expertise in developing innovative healthcare solutions should position us well to achieve our climate change goals and our customers’ demands for sustainable business performance.
Recognizing climate change is a risk for everyone, our goal is to actively contribute to efforts to limit global warming and realize a 1.5° Celsius future by 2030. While the biggest impacts we can achieve will be through our downstream partners, we will undertake our best efforts to innovate efficiently, adopting an ESG by Design philosophy as we explore new ways to develop and deliver our products and services to the communities we serve.
Leveraging our Risk Management (RM) strategy to address climate risk, we can be nimble and innovative in addressing material climate risks to our business. Our annual risk assessments and risk-mitigation exercises provide an opportunity for every Omnicell business unit to present real or potential risks to our RM team, as well as the opportunity to rank those risks according to their likelihood and severity.
Our RM team then prioritizes and develops a mitigation strategy, in collaboration with the affected business units, to address those risks. Our global Environmental, Health, and Safety Management System (EHSMS) Planning Process requires a risk-based assessment of all Environmental, Health and Safety (EHS) opportunities and an annual review of that assessment. While there is an opportunity to include climate in the robust risk-assessment process that we already conduct, in 2021 we completed comprehensive climate-risk assessments of four of our manufacturing sites: Bochum, Germany; Milpitas, California; Warrendale, Pennsylvania; and St. Petersburg, Florida. Based on those climate-risk assessments, we are implementing counter-measures to address disruptions in the transport of materials and products, where appropriate, as well as educating the local communities, as applicable, on climate-related risks that may impact them. Our Supply Chain management team has also undertaken risk assessments in the supply chain, identifying opportunities to expand our network of suppliers so that we do not depend on sole source suppliers in the long term. With these assessments completed, as well as with Board of Directors oversight of our Corporate Responsibility initiatives and the organizational risks we face, we believe Omnicell is prepared to anticipate and manage climate-related risks our business may face now and in the future.
In 2021, our Scope 1 and Scope 2 GHG emissions totaled 11,697 tonnes of CO2e, representing a 6% decrease from our base year 2019 emissions of 12,465 tonnes of CO2e. As in 2020, our 2021 consumption data was affected by the work-from-home mandates we implemented at Omnicell for employee safety during the pandemic.
Our carbon intensity, as measured in total GHG emissions per million dollars of revenue, was also impacted by our work from home mandates, as well as changing weather conditions. We are not yet able to identify a clear pattern between GHG emissions and revenue, particularly with the change in our work environment due to the impact of COVID-19 on our global workforce.
We are dedicated to actively contributing to global efforts to achieve a 1.5° Celsius future; this requires us to understand our global emissions, as well as the current and potential future risks that climate change poses to Omnicell’s direct operations and value chain. By gaining this understanding, we will be able to implement approaches and mitigation plans that can build resilience into our business. This includes developing an understanding of how climate variability can impact our year-to-year sales across all our distribution channels, as well as affecting our ability to source materials for our products.
Streamlining standards and systems into an integrated, global EHSMS allows us to ensure data reliability and gives us the ability to monitor progress against goals by leveraging common standards and terminology within Omnicell and among our industry peers.
Our Vice President of Corporate Responsibility is the executive with oversight of our EHS program, and the Board of Directors oversees our CR initiatives to help us anticipate and mitigate climate-related risks.
Our energy consumption is largely attributed to building lighting, heating, and air conditioning, in addition to powering our data centers. We also have significant opportunities to improve our GHG emissions generated from our travel profile. We measure our Scope 1 & Scope 2 greenhouse gas emissions across Omnicell’s operations, including from owned and leased buildings and data centers. Our GHG emission mitigation efforts include energy efficiency projects, reducing energy consumption technologies in operations, renewable energy procurement, and a continuing assessment of our energy consumption and ways to reduce impact.
Core to Omnicell’s Global EHSMS program is our adoption of the ISO 14001 Environmental Management System (EMS) and ISO 45001 (Health and Safety Management) standards. Our EHS program is focused on identifying risks and opportunities across our global operations and conducts annual audits and monthly monitoring, including certifications of our locations and products. In 2021, we finalized our combined Global EHSMS, which meets both ISO 14001 and 45001 standards.
In 2021, we achieved ISO 14001 certification at our Trieste, Italy, location, and we will continue to extend the scope of our new Global EHSMS to all locations globally, including the new ReCept, FDS Amplicare, MarkeTouch, our Omnicell 340B and international locations where we are yet to be formally accredited.
Our Scope 3 emissions span Omnicell’s value chain, focusing specifically on materials emissions categories such as purchased goods and services (such as data centers and IT services), our use of purchased goods, emissions among our suppliers, and employee travel.
We are continuously devising strategies to integrate sustainability considerations into the design of our products to minimize lifecycle environmental impacts, implementing sustainability requirements into our supply chain contracts, and reducing the impacts of employee travel through various means, including the possibility of remote servicing and communications, as well as the potential for carbon offsets for air travel.
We are not yet able to identify a clear pattern between GHG emissions and revenue, particularly with the change in our work environment due to the impact of COVID-19 on our global workforce.
Hired an EHS Engineer with deep experience and background
Applied for our multi-site ISO 14001/ISO 45001 site certification
Launched a survey to suppliers representing the top 80% of our business by spend to collect initial inputs and data regarding GHG emissions and reduction initiatives
Implemented our Global EHSMS
Moved conflict mineral verification and reporting to the Corporate Responsibility function
Achieved site certification to ISO 45001 for our Milpitas, California manufacturing operations
Achieved site certification to ISO 14001 for our Trieste, Italy facility
