ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) | 2021 REPORTTA BLE OF
C ON T EN T S
Letter from our CEO						4Who We Are							5140 Year Anniversary						5Mission and Values						6Our Business							6O&M’s ESG Framework						7Our ESG Priorities						7ESG Governance						8Stakeholder Engagement					9Ensuring Environmental Stewardship			
10
Climate Risk						11Energy Efficiency and Fleet Management		
12
Water and Waste Management				15
Product Design and Lifecycle Management		
16
Caring for Our Customers and Community		
17
Strengthening Communities				17
Product Quality and Safety				19Innovative Healthcare Solutions			
21
Access and Affordability of Healthcare			
21
Operating Responsibly					22Governance and Accountability				22
Ethics and Compliance					23Data Privacy and Security				24
Responsible Supply Chain				25
Supplier Diversity					26Empowering Our Teammates				28
Talent Management and Planning Process		
31
Health and Safety					32Diversity and Inclusion					35Looking Ahead						38About This Report					39Content Index

https://investors.owens-minor.com/esg

Owens & Minor 2021 Environmental, Social, and Governance Report | 3

LE T T ER
FR OM OURCEOFor the 140 years we’ve been in business, Owens & Minor has operated in service ofour customers, our Teammates, and our surrounding communities. Whether throughdelivering essential solutions for healthcare providers and patients, providing awelcoming and engaging workplace for Teammates, or taking action to drive sustainable
practices across all of our locations, we are committed to being a force for good in all of
our global communities.
Building on this legacy of service, we launched our formal Environmental, Social andGovernance (ESG) program in 2020, followed by the publication of our inaugural ESG
Report in 2021. In our first report, we introduced four guiding ESG principles: (1)Ensuring Environmental Stewardship, (2) Caring for Our Customers and Communities,(3) Operating Responsibly, and (4) Empowering Our Teammates.
Over the last year, we continued to deliver on these principles and maintain a relentless
focus on the needs of our customers, our Teammates, and our communities. We
provided critical supplies for workers on the frontlines in the fight against COVID-19 andsupported key causes within local communities through The Owens & Minor Foundation.
With several strategic acquisitions, including Apria, Inc., the largest acquisition in
our company history, we expanded our business to further support the entire patient
journey. As the world continued to navigate COVID-19, we provided essential PersonalProtective Equipment (PPE) while remaining an industry leader in maintaining aresilient supply chain through our Americas-based manufacturing footprint and uniqueproduct and distribution value chain.
Owens & Minor incorporates ESG considerations into our strategic decision-making
across our organization. Championing ESG is a key pillar of our Corporate Strategic Plan
that will shape our journey ahead.

Our ESG Focus Areas include the following priorities focused on expanding our
influence as a leader in the healthcare industry:•

Environmental Stewardship•Community Engagement focused on access to healthcare and expanding
Diversity & Inclusion•

Operating Responsibly•

Empowering Our Teammates

In this 2021 annual ESG report, you’ll see how our long-term strategic plans arebuilt on a foundation of service and care. We’ve structured the report to mirror
our ESG Focus Areas. From our fleet to our frontline, our ESG efforts support
Owens & Minor’s resiliency and drive our organization and our industry toward amore sustainable and inclusive future.
We remain relentless in serving our customers, Teammates, investors, industry
partners, and surrounding communities. The 2021 ESG Report provides an
overview of our efforts. I’m excited to keep moving forward together.
Sincerely,

Edward A. Pesicka
Owens & Minor 2021 Environmental, Social, and Governance Report | 4

W HO
WE
AR E
Owens & Minor is a global healthcare solutions company integrating productmanufacturing and delivery, home health supply, and perioperative services
to support care through the hospital and into the home. Owens & Minor
drives visibility, control and efficiency for patients, providers and healthcare
professionals across the supply chain with proprietary technology and solutions,an extensive product portfolio, an Americas-based manufacturing footprint for
PPE and surgical products, as well as a robust portfolio of products and services
for patients managing chronic and acute conditions in the home setting.
Celebrating a Proud 140-Year Legacy
January 2022 marked the 140th year of Owens & Minor’s official founding,which occurred on January 18, 1882, in downtown Richmond, Virginia. Now
a Fortune 500 company with over 20,000 Teammates (as of March 2022), we
have navigated periods of growth and strategic progress while forging lasting
partnerships with the customers, communities, and Teammates that have fueled
our success.

Owens & Minor 2021 Environmental, Social, and Governance Report | 5

Guided by our Mission and Values

Our Business

Our Mission of Empowering Our Customers to Advance Healthcare® continues toguide our strategic growth as we enhance and expand our offerings to serve thehealthcare industry.

To best serve the needs of an evolving industry, Owens & Minor continues to expand its
service offering and deliver innovative solutions aligned to our customers’ success.

Our Teammates worldwide operate according to our shared IDEAL Values:

Beginning in the first quarter of 2022, Owens & Minor operates in two reporting
segments.

•

Integrity: We act with the highest standards of ethics and honor thecommitments made to our stakeholders.

••Development: We aspire for improvement and growth.

•

Excellence: We perform to the highest standards, embracing our Mission.

•

Accountability: We are responsible for our actions and results.

Products & Healthcare Services – Our Products & Healthcare Services segment
combines our HALYARD® and MediChoice® brand product manufacturing andsourcing excellence with our healthcare services, including kitting and CPT
assembly and sterilization, perioperative services and QSight® technology, andour product supply and third party logistics (3PL) capabilities.

•

Listening: We listen to our customers and to one another to understand needs
and deliver solutions.

•Patient Direct – Our Patient Direct segment combines our Byram Healthcare
business with recently acquired Apria, creating a leading portfolio of homehealthcare delivery capabilities covering diabetes, ostomy, incontinence, woundcare, home respiratory, obstructive sleep apnea, negative pressure woundtherapy and durable medical equipment and services.

20,000+

$9.7B

1882

400+

Teammates Worldwide

Annual Revenue

140-Year Legacy

Facilities Worldwide

Owens & Minor 2021 Environmental, Social, and Governance Report | 6

O&M’SESGFR AME WOR K

Our ESG framework forms the basis of our ESG program, integrating the priorities
identified in our materiality assessment into key aspects of our operations andoverall business strategy.
Our ESG framework is grounded in our Mission of Empowering Our Customers
to Advance Healthcare, and emphasizes the importance of incorporating ESG
commitments into our culture and values. Our framework is supported by thefollowing four focus areas:•

Ensuring Environmental Stewardship: Minimize the impact of our operations on the environment•

Caring for Our Customers and Communities: Deliver superior superior service and innovative solutions for our customers and the communities we support•

Operating Responsibly: Demonstrate sound governance, accountability, and responsible sourcing•

Empowering Our Teammates: Foster an empowering, safe, diverse, and inclusive work environment where all Teammates can thrive

Our ESG Priorities
We remain in alignment with the Material Topics that were outlined in our inaugural ESG Report:

O&M’s ESG Priorities
Environmental

SocialGovernanceWaste Management

Diversity and Inclusion (D&I)

Data Privacy and Security

Climate Risk

Health and Safety

Ethics, Anti-bribery and Anti-corruption

Energy Efficiency

Product Quality and Safety

Regulatory Compliance

Fleet Efficiency

Responsible Supply Chain and Human Rights

Corporate Compliance

Environmental
Stewardship

Access and Affordability of Healthcare Products andTalent Management

ESG Governance

Product Design andLifecycle Management

Community Engagement

Transparency

Water Management

Customized Healthcare Solutions

Owens & Minor 2021 Environmental, Social, and Governance Report | 7

ESG GovernanceOwens & Minor has established an ESG Governance body with accountability fromthe frontline Teammates all the way to the Board of Directors and our Executive
Leadership Team.
•Through the Governance and Nominating Committee, our Board of Directors is
responsible for formal oversight and strategic direction of the ESG program.
Approval of our ESG strategy, goals, and integration across our business units is
executed and supported by our Executive Leadership Team. More detail on our
Board Committees can be found on page 22.

•

ESG Steering Committee - Determines ESG strategy and is responsible for
implementation of ESG initiatives•

ESG Working Group - Responsible for implementing and driving ESG initiatives
and strategy within business units and achievement of ESG goals•

ESG Lead - Serves as a liaison between the two groups

Our ESG Steering Committee is comprised of the following executives:•

Corporate Chief Human Resources Officer•

ESG Lead & Sustainability Programs Steward•

Vice President of Supplier & Portfolio Management•

Vice President of Global Talent & Organizational Effectiveness•

Vice President of Global Manufacturing and Procurement•

Vice President and General Auditor•

CEO of Byram Healthcare•

Chief Human Resources Officer of Apria Healthcare

More information on our Governance can be found in the chapter entitled Operating
Responsibly on page 22.

Owens & Minor 2021 Environmental, Social, and Governance Report | 8

Stakeholder Engagement
Owens & Minor endeavors to keep two-way communication open and available
between a variety of key stakeholder groups to fulfill the pillars of our ESG
Framework. The chart below provides an overview of how we communicate with our
stakeholders:

Key Stakeholder
GroupsInternal & External Communication
Methods

Customers••

Customer Resources section on company
websiteDirect communications

Communities

•
•
•
•

Volunteering opportunities
Press Releases
WebsiteFoundation contributions to 501c3s

Teammates

•
•
•
•
•

Global Engagement Survey
Intranet
Quarterly Town Hall Meetings
Monthly Community Newsletters
Daily communication between management &Teammates

Governments &Regulators••

Government Relations Function
Regular communications concerning productregulation & facility compliance

Investors••••

Annual Shareholder meeting
SEC filings
Quarterly conference calls
Investor meetings, conferences, and roadshows

Vendors & Suppliers•••

Business reviews
Vendor Code of Conduct
Distributor Toolkit

Owens & Minor 2021 Environmental, Social, and Governance Report | 9

ENSUR ING
ENV IR ONMEN TALS T E WAR DSHIP

Owens & Minor is committed to being a leader in environmental
responsibility and sustainability. To that effect, in June of 2022,
Owens & Minor signed the White House Department of Health& Human Services Earth Day Pledge, becoming among the firstcompanies in the Healthcare Industry to do so. By that action, we
have committed to voluntarily:

1. Cut our Organizational Emissions in half by 2030 and achieve Net Zero by 2050, publicly sharing our strategies to achieve these goals
2. Conduct an inventory of Scope 3 emissions by the end of 2024
3. Develop and release a climate resilience plan for continuous operations by the end of 2023
This pledge is directly in alignment with the Mission and Values of Owens & Minor and we look forward to sharing the progress of our efforts with the wider community incoming years.
We align our efforts with the same management frameworks that have made Owens & Minor successful over the years to ensure the program’s integration into existingprocesses. We listen intently to the requests of our stakeholders to engage in our activities with transparency and a continuous improvement mindset.

Around the organization, we work to integrate Environmental Sustainability, Social Accountability, andResponsible Governance into our DNA, embedded in the IDEAL Values.
Environmental stewardship has existed at O&M since its inception, evidenced by the programs you readabout here. As we move into the coming years, we will work together to collect measurements on theimpacts of those efforts and target areas of greatest need.
I’m proud to be a Teammate at O&M and look forward to sharing the successes of our ESG program as wedevelop over the years.
Thank you,
Clay Cade
Sustainability Programs Steward
Owens & Minor 2021 Environmental, Social, and Governance Report | 10

CLIMATE RISK
Across Owens & Minor, we recognize that there are climate risks and opportunities
resulting from our operations. We continually evaluate steps to lessen the impact of
our energy usage and business operations primarily by improving energy and fleet
efficiency.
The Owens & Minor Mission – Empowering Our Customers to Advance Healthcare –aligns with supporting our customers to achieve their Environmental Stewardshipand emissions reductions goals. Healthcare systems around the country and aroundthe world are moving to cut carbon emissions from their operations. More than 8% of
US emissions are attributed to the healthcare industry, and more than 25% of global
healthcare emissions emanate from the United States1. Owens & Minor is working
to centralize data from across the organization on carbon emissions associatedwith the manufacture and distribution of our products so that we can assign data
to individual customers. This will provide our customers with the emissions dataneeded to measure progress towards achieving their carbon reduction goals. We
are working with our customers every step of the way to advance their mission andensure environmental stewardship.

Carbon Emissions
Owens & Minor is conducting an inventory of total organizational emissions including
all of Scope 1, 2, and 3 to be collected under a single reporting platform. We currently
capture over 75% of our Distribution site-based emissions (by area), our entire
Manufacturing site-based emissions, and are in the process of inventorying ourremaining downstream distribution emissions.
The emissions data captured below reflects the data-capture capabilities to date. We
are targeting collecting further historical data in the coming year to better reflect abaseline of normalized operations and look forward to elaborating on more detailed
Scope 3 emissions as data becomes available.
Emissions in Tons CO2
Offices & Distribution Centers
Manufacturing
Downstream Distribution

Scope 1
2

5,984
10,166

Scope 2

Scope 3

15,962104,238
29,5723*Our Safeskin Thailand Facility generated approximately 650,000 MWh of energy from on-site
renewable biomass in 2021
2. U.S. only
3. Data represents domestic distribution of two largest carriers

1. https://noharm-global.org/sites/default/files/documents-files/5961/HealthCaresClimateFootprint_092319.pdf

Owens & Minor 2021 Environmental, Social, and Governance Report | 11

ENERGY EFFICIENCY & FLEET MANAGEMENT
Energy Efficiency is being addressed in three main focus areas at Owens &Minor. We are addressing efficiency in our Manufacturing sites through our
Capital Engineering team in Products & Healthcare Services, in our Offices &Distribution Centers through our partnership with energy procurement services,
and in our Fleet Efficiency through our partnerships with third-party logistics
providers.
These three focus areas are helping us address our environmental impact in thecommunities where we operate.
Manufacturing
At Owens & Minor, we consider electrical efficiency to be the ‘first fuel’ as it still
represents the cleanest and, in most cases, the cheapest way to meet our energy
needs and reduce our carbon footprint. Energy efficiency plays an essential
role in accelerating clean energy transitions as we analyze targeted carbon
reductions across our organizational footprint.
Our Manufacturing Capital Engineering team from our Products & Healthcare
Services segment has efficiency, safety, and sustainability in their focus with
their BPOR (Boiler Plant Operation Review) and FEWER (Fuel Electricity Water
Energy Review) program.
•Since 2019, the team has conducted energy and operations reviews at four of
our eight production sites, with the remaining four targeted in 2022.

•

These reviews consist of a deep dive with the local teams into all
utilities equipment including HVAC, water boilers, lighting, generators,
and other large energy users in the plants, and cover the condition ofequipment, maintenance, and safety procedures, as well as energy savings
opportunities.

Owens & Minor 2021 Environmental, Social, and Governance Report | 12

The three main outcomes of this review are Future Savings Projects, Utilities Scorecards, and Usage Reviews:
FUTURE SAVINGS PROJECTSUTILITIES SCORECARDS

USAGE REVIEWSThe FEWER/BPOR program develops an inventoryof energy efficiency projects to prioritize in thenext year’s capital plan. Over 60,000 MMBTU ofenergy savings opportunities were identified in
our first phase across four sites, and over 50% of
the identified projects are complete or in progress.
60 operations improvement opportunities wereidentified, with over 95% complete or in progress,
resulting in improved efficiency and safety of thesystems in all four plants. Once all plants have beenreviewed, we will begin the process anew.

Next, a scorecard of all utilities equipment in eachplant identifies items in need of replacement. By
using a scorecard for equipment, we ensure targeting
optimal opportunities across our sites to keep
equipment up-to-date and ensure advancements inefficiency and safety. By extrapolating the electricaland natural gas consumption reductions, we prioritize
carbon reduction opportunities across our operations.
Through organizational goal setting, these scorecards
provide visibility to operational expenditures andefficiency upgrades that can support sustainable
operations.

The third outcome is a review of the billing and usage
statistics with local energy providers. Through thisreview we identify cost savings opportunities, andmake sure that energy providers are aware of any
expansions or energy needs to ensure they plan
appropriately. In one instance, our team collaborated
with the local energy provider to expand on-site usage
monitoring systems. With monitors installed at manysites, the energy provider is better equipped to deliver
power exactly when needed to minimize waste andensure a more stable energy grid in the surrounding
community. This review also assists energy providers
to identify opportunities for future solar or wind powersourcing.

Owens & Minor 2021 Environmental, Social, and Governance Report | 13

Offices & Distribution Centers
Through our relationship with third-party energy procurement and data tracking
organizations we collect regular reports on our energy consumption acrossour Distribution Centers (DCs), benchmarking our energy efficiency across ourportfolio.
As a function of this data and our relationship with third-party energy market
analysts, we are addressing strategic opportunities to pursue efficiency upgradesat our sites and analyze opportunities for alternative energy sourcing throughsolar power-purchase agreements.

PenskeIn 2020, O&M established targets for Penske to maintain guaranteeing theefficiency of the fleet delivering our products to our customers. We are proud of thepartnership with Penske and are pleased to say that since establishing these targets,they have been able to service nearly 17.2 million miles in 2021 and maintain:•

Fuel efficiency over 8 MPG•

Stop idle rate below 7%

2021 Electric Vehicle Demo
Fleet Efficiency
In 2022 and into 2023, we will conduct a comprehensive inventory of our Scope 3
emissions to include upstream and downstream freight, business travel, and the
production of sourced goods. These results will be shared in future sustainability
reporting and disclosures.

Route Optimizations
Fleet Asset Delivery Optimization (FADO) – FADO is the process of evaluating our
DC delivery operations on a yearly basis to ensure that we’re using the best modeand route to reduce mileage on our fleet, while protecting customer service. We
want to ensure that we’re using the right assets, routes, and mode to right size
our fleet footprint. By leveraging FADO, we are able to further reduce costs toour operations by ensuring that we are operating in the most efficient manner
possible.

In April 2021, Owens & Minor joined Penske Logistics in piloting
the use of a Daimler Freightliner eCascadia tractor to carry freightassociated with our Ontario, CA Distribution Center. Not only does
this pilot program reduce some of the carbon emissions associatedwith our distribution operations in California, but more importantly,
this pilot program provides Penske with real world use information tobetter support future deployment of electric vehicles.

The vehicle serviced*:
17,815
Miles

1,445

ReducedCarbonEmissions* Data represents year end 2021 metrics
Owens & Minor 2021 Environmental, Social, and Governance Report | 14

166

Trips

Days

50,000PoundsWATER AND WASTE MANAGEMENT
Alongside carbon emissions, our operations also create environmental impacts through our water usage and waste generation activities.
Water Management
We consume water daily in the manufacturing of our products. Given the intensity of
our water needs, we seek to limit our consumption by tracking our usage across all
our manufacturing sites and developing methods that can reduce our needs. Despite
increased manufacturing output, our manufacturing team in Thailand managed toconsume 5.5% less total water compared to 2020 and achieve their stated goal of
consuming 2 liters water / standard unit. The team achieved this goal through a strictwater management system integrating numerous process improvements including
recycling process water into equipment cooling, capturing condensate and cooling
tower blowdown, and improved valves on cleaning hoses.
Waste Management
Waste management focuses on three primary areas: our Distribution Centers &Offices, our Manufacturing sites, and accountability of the downstream wastes fromour operations through the Lifecycle Management of our manufactured products.
•

Owens & Minor Offices & Distribution Centers recycle over 50% of all waste
shipped off site by focusing on the most significant waste streams generated –paper and corrugated cardboard. We partner with New Market Waste Solutions
to provide recycling and waste disposal across the US and our Europe, Middle
East, and Asia (EMEA) operations. In 2021, our Distribution Centers diverted
over 3,100 tons of waste from landfill to recycling.

Two of our Manufacturing sites, Lexington, North Carolina and Thailand, maintainrecycling rates over 95%.
•

Lexington Sterile Wrap Scrap Reclamation – Our Lexington site reclaims
approximately 50% of the material scrap generated in their manufacturing
process and feeds the material right back into the process – eliminating
material loss at the point of generation – and sells the remaining scrap tovendors who then use the scrap as raw material in their own manufacturing
processes.

•

Our Nitrile Glove Manufacturing operation in Thailand recycles wood ash used
to generate process steam by coordinating with the regional Land Development
department. The partnership generates free fertilizer for local farmers bymixing the ash with rice husks and animal manure which then supports local
agriculture. Additionally, ceramic forms used in glove manufacturing andscrap nitrile material are used as raw material and fuel for local construction
activities in surrounding areas.
Offices andDistribution
Centers
Recycle1

50%

All Waste Recycled
Lexinton, NC
andThailand95%

Maintained Rate

3,100

Waste
Diverted
From
Landfill

Tons

50%

Scrap Reclaim

Lexinton, NC
Re-introduces
Scrap
Into
Manufacturing

1. U.S. only
Owens & Minor 2021 Environmental, Social, and Governance Report | 15

PRODUCT DESIGN AND LIFECYCLE MANAGEMENT

O&M
Partners With
The BlueCON
Company®

In hospitals, many materials, such as sterilization wrap, gowns, irrigation bottles, IV
bags, basins, pitchers and trays, are used once and then thrown away. According to
the Healthcare Plastics Recycling Council (HPRC), U.S. healthcare facilities create
approximately 14,000 tons of waste per day, most of which is eventually deposited into
landfills. Approximately 15% of that waste is plastic packaging or plastic products.
Specifically, sterilization blue wrap, which protects surgical instruments and otheritems from contamination after sterilization, is a big contributor. Blue wrap is made frompolypropylene, a disposable high-quality plastic commonly used in healthcare-grade
materials.
Owens & Minor recognized years ago that our organization had a responsibility to
manage the materials manufactured and distributed through our operations. Our
manufacturing team developed partnerships with domestic manufacturers and waste
haulers to reclaim the blue sterilization wrap distributed to Hospital ORs to reprocess
the material into reusable raw material that can then be used in the manufacture of new
products.
Owens & Minor has also partnered with an outside reprocessing and manufacturingfirm, The BlueCON Company®, to reclaim recyclable materials from hospital waste
streams and divert those materials from landfills back into a circular economy-focusedraw material for manufacturing. Since implementation, more than 250 hospitals inNorth America are diverting over 4 million pounds of sterilization wrap from landfills
each year. This effort not only reduces landfill waste through the remanufacturing ofmaterials, but the program also preserves natural resources.
The program offers staff training to empower hospital staff in contributing tosustainability efforts and partners with local waste haulers at each local facility,
strengthening the local economy to support new recycling efforts in our communities.

Hospitals
Particpatingin NorthAmerica

4,000,000

300+

Sterilization
Wrap
Diverted

Pounds

BlueCON
Resin®
Products
CreatedOwens & Minor is committed to managing the downstream material footprint associated with our manufacturing
and distribution operations. To that effect, we are exploring a pilot program for new materials reclaim andremanufacturing infrastructure. This effort could further empower our customers to reduce their landfilledwastes, create innovative new products from recycled post-consumer plastics, and further build on our alreadysuccessful recapturing and reprocessing of scrap material from our healthcare product offerings.
Owens & Minor 2021 Environmental, Social, and Governance Report | 16

C AR ING F OR OUR
CU S T OMER S
AND C OMMUNI T Y

STRENGTHENING COMMUNITIESOur Teammates have always been active members of thecommunities where we operate, and Owens & Minor has always
supported charities core to its mission. In 2021, we established
The Owens & Minor Foundation™ with initial funding of $10
million. The Owens & Minor Foundation is committed to building
healthier communities by supporting trusted organizations andis dedicated to making impactful investments to charitable andcivic organizations in the communities we serve and will focus
primarily in the three areas of environment, healthcare, anddiversity and inclusion.

Environment

Healthcare

Diversity and Inclusion

O&M takes responsibility for the environment
through our operational sustainability initiatives
and the support of programs that share our common
values. We believe that by supporting sustainable
initiatives, we can improve the overall health of ourenvironment.

O&M is committed to advancing healthcare
while also serving the customers andcommunities in which we live, work, and play.
We aim to support opportunities for people
to lead healthier lives and, therefore, create
overall healthier communities.

O&M is committed to building a diverse and inclusive
culture. This effort not only includes an open space where
our Teammates learn with and from one another, but it also
strengthens communities and the organizations with whom wepartner. We acknowledge the need for diversity and inclusion
within our suppliers,and we strive to support qualified small,
women, minority, LGBTQ+, disabled, and veteran-owned
businesses to advance a superior supply chain and the economic
development of small and under-represented businesses.

In its first partial year of operation, the Owens & Minor Foundation contributed to numerous organizations
supporting broader healthcare availability to all communities, promoting D&I opportunities, and protecting theenvironment.
As the Leader of Teammate and Community Engagement, I have the unique opportunity to leverage thecompany’s resources to ensure Owens & Minor remains an engaging place to work, where innovationand collaboration are valued in our business practices and evident in the ways we partner with
community members to enrich the lives of others. Our work is far from over, but I am proud of our ongoingcommitment to these worthy endeavors.
Tamara M. Thornton
Teammate and Community Engagement Leader
VP, Owens & Minor Foundation
Owens & Minor 2021 Environmental, Social, and Governance Report | 17

THE OWENS & MINOR FOUNDATION - 2021 GIVING
2021 Foundation contributions, amongst others:

Owens & Minor Teammates devoted their time and talent to assist many of our local communities. Below is asampling of just a few of those activities:•

Special Olympics®

•

The Doorways•

March of Dimes®

•

United Negro College Fund®

•

Tech for Troops®

•

Boys & Girls Clubs

•

YMCA

•

St Jude Children’s Research Hospital®

•

Dana Farber Cancer Institute®

-

Networking skills•

Wounded Warrior Project®

-

Time management•

United Ostomy Association of America-

Initiative•

Ronald McDonald House Charities-

Communications•

National Association of Free Charitable Clinics-

Public speaking•

Feeding America-

Personal branding•

Juvenile Diabetes Research Foundation®

-

Research

•

®

•

®

Fairfield Court Elementary School Lunch Buddies
Program-School supply drives for 220 students.

-

Survival kits for 60 teachers for virtual
learning.

•

-

•

®

®

Owens & Minor 2021 Environmental, Social, and Governance Report | 18

Bi-weekly seminar to teach students:•

Teammates raised funds in the American Cancer
Society Making Strides Against Breast Cancer
Walk to support advocacy and education.

National Wear Red Day® - National Heart Association-

Cristo Rey High School – Virtual Mentoring
Program-

Making Strides for Breast Cancer AwarenessSupport women’s health by wearing red to raiseawareness about cardiovascular disease — theleading cause of death in women.

MedShare®
-Donated $1.2M of medical supplies to MedShare, ahumanitarian aid organization sourcing and directly
delivering surplus medical supplies and equipment
to communities in need around the world.

PRODUCT QUALITY AND SAFETYAt Owens & Minor, we take pride in providing high quality and safe products
to our customers. We design, manufacture, and source products that support
superior patient care.
QARA
Our Quality Assurance and Regulatory Affairs (QARA) team oversees
the product life cycle from design through distribution and ensures that
suppliers and branded manufacturers have established quality systems andmeet regulatory requirements. QARA Teammates remain current on quality
and regulatory trends through active involvement with industry trade groups
and standards organizations such as the Association for the Advancementof Medical Instrumentation® (AAMI), MedTech Europe, Health Industry
Distributors Association (HIDA), and GS1.
Continuous Improvement Across Quality Initiatives
Across our global operations, we undertake product quality and safety
process improvement initiatives to improve, streamline, and standardize ourQuality Management System. In 2021, we piloted a Cost of Quality initiativein our manufacturing operations that is being refined for deployment
across global locations. This study will highlight those target areas
for improvement and inform how we can safeguard the affordability ofhealthcare
Improved training management processes were deployed alongside a
global learning management system to increase visibility of global training,
ensuring training compliance.
•

We routinely track, assess, and review the quality and safety of our
products and services. We use industry-standard enterprise quality
management systems to record and investigate customer complaints
and in-process deviations.

•

Our Quality Audit program manages internal quality system audits
required by the Federal Drug Administration (FDA) and the International
Organization for Standardization (ISO) and tracks third-party audit andinspection results.
Owens & Minor 2021 Environmental, Social, and Governance Report | 19

GLOBAL RECOGNITION• In 2021, our EMEA team was awarded Elemed’s“Most Collaborative MDR Implementation Award.”
The Elemed Awards were created to recognize
individuals and organizations that have made asignificant contribution to improving patients’ lives
and the MedTech industry in general.
• The EMEA and Thailand operations are in the
final stages of implementing the environmental
management system process and procedures tomeet ISO 14001 requirements.
• Owens & Minor has also aggressively pursued andmet packaging waste reduction goals driven by theEU packaging waste directive.

Owens & Minor 2021 Environmental, Social, and Governance Report | 20

INNOVATIVE HEALTHCARE SOLUTIONSAt Owens & Minor, we are driven to provide solutions that are essential for ourhealthcare customers to do what they do best—provide superior patient care.
With our predominantly Americas-based manufacturing footprint, verticallyintegrated supply process, and rigorous quality standards, we empower ourcustomers to deliver the best possible clinical and patient outcomes by ensuring thatcare providers have what they need, when they need it, no matter the situation.
We accomplish this by providing:• Innovative products for ever y care setting

ACCESS AND AFFORDABILITY OF HEALTHCAREPRODUCTS AND SERVICES
Through our Patient Direct segment, we can better serve the entire patient
journey.
We offer a home healthcare portfolio to cover a broad range of chronic andacute care needs. Owens & Minor supports patients as their care transitions
from the hospital into the home with an efficient single-source healthcaredelivery and distribution model. We continue to ensure patients have thebest care experience while simplifying the complexities of healthcare
reimbursement and insurance.

• Industr y leading solutions for distribution• Innovative supply chain management ser vices• A patient-focused approach

Owens & Minor 2021 Environmental, Social, and Governance Report | 21

Doing business the right way is a conscious decision and one that Owens & Minor
has prioritized since our founding. Our commitment to business integrity begins
with strong corporate governance policies and practices that support our core
Values and provide a framework for the operation of our company.

GOVERNANCE AND ACCOUNTABILITYOP ER AT ING
R E SP ONSIBLY

In 2021, the Owens & Minor Board was composed of seven Independent Directors and President & CEO Ed Pesicka.
The Board oversees the performance of our organization through three independent standing
Board Committees, which include:•

The Audit Committee, overseeing accounting, reporting, financial practices, and enterprise risk management program, including cyber risk•

The Governance and Nominating Committee (GNC) overseeing the governance of the corporation, annual review of Board performance, risks related to corporate
governance, nomination of new board members, and ESG program•

Our People & Culture Committee (OPCC) to discharge the Board’s responsibilities relating to compensation of the Corporation’s officers and overseeing talentmanagement, teammate well-being and culture

Charters for our Audit, GNC, and OPCC are publicly available and can be found on our
Investor Relations website at: https://investors.owens-minor.com/corporate-governance/highlights

Business Integrity is essential in managing our ethics, compliance & privacy programs, our interactions withcustomers, our social compliance commitment and our responsibility to partner with likeminded companies.
Owens & Minor stands committed to continuing to build and grow our ESG program and to continue to bridge thegaps between environmental, social compliance and governance factors.
Patrick Hogenbirk
Vice President of Ethics, Compliance, and Privacy
Owens & Minor 2021 Environmental, Social, and Governance Report | 22

ETHICS AND COMPLIANCE
Owens & Minor’s comprehensive Ethics and Compliance program aligns with thefundamental elements of an effective compliance program, as outlined by the U.S.
Government and healthcare industry best practices.

An overarching theme in our training is for Teammates to ask questions and seek
guidance when necessary. Key compliance and ethics courses include:•

Code of Honor

Elements of Owens & Minor’s compliance program include, but are not limited to:•Anti-Bribery and Anti-Corruption•

Interactions with Healthcare Professionals

•

HIPAA

•

Privacy and Data Protection•

Annual global risk assessment•

Our Code of Honor•

Compliance policies and procedures•

Training and communications•

Confidential reporting and investigations•

Third-party management•

Compliance guidance and support of senior and middle management•

Privacy guidance (including HIPAA, GDPR, and global privacy compliance)•

Transparency guidance•

Auditing and monitoring•

Expense management•

Analysis and remediation of misconduct, including disciplinary measures

Additionally, periodic communications are distributed to reinforce the training alongwith reminders on who to contact for questions or concerns.

Owens & Minor’s stance on Regulatory Compliance is clearly spelled out in our
Company’s Code of Honor:
The most fundamental premise of our Code of Honor is the requirementthat all Owens & Minor Teammates, directors and third parties comply fully
with applicable laws, rules, and regulations of all levels of government.
The Company is subject to a variety of federal, state and local laws andregulations covering everything from workplace safety to fair competition to
information disclosure. Through some of our activities, we are also subject
to international laws and the laws of countries other than the United States.
In addition to compliance with legal requirements, however, the Code of
Honor requires Teammates to demonstrate honesty, integrity, and ethicalbehavior in the performance of all services on behalf of the Company.

Effective training and communication are cornerstones of our complianceprogram. Training and communication help ensure everyone knows how
to perform their job responsibilities ethically and in compliance withapplicable laws and our policies and procedures. Our training incorporates
real world scenarios and important resources that are specifically
relevant to Owens & Minor. It is custom designed, instructionally sound,and incorporates adult learning best practices supporting learnerengagement.

Owens & Minor 2021 Environmental, Social, and Governance Report | 23

DATA PRIVACY AND SECURITY
Our cybersecurity program is overseen by the Vice President of Information Technology Security who provides updates to the Board regarding our IT Security Program noless than annually. In addition, our Audit Committee exercises oversight and meets with Information Security Office regularly.
We model our cybersecurity program to align with practices and standards referenced within the NIST Cybersecurity Framework. Our information security program
includes, but is not limited to:•

Following the methodology of Identify, Protect, Detect, Respond, and Recover•

Mandatory cybersecurity awareness training for all persons (Teammates and contractors) accessing the Company’s network•

Monthly Company-wide phishing exercises•

Identification and remediation of information security risks and vulnerabilities in our IT systems, including regular scanning of both internal and externally facing
systems and annual third-party penetration testing•

Implementation of security technologies that are able to identify and assist in containing and remediating malware risks•

Active monitoring of logs and events for our network perimeter and internal systems•

Due diligence of information security programs for third-party vendors that handle sensitive data, and•Partnering with Cybersecurity and Infrastructure Security Agency (“CISA”)/United States Department of Homeland Security/Federal Bureau of Investigation, toleverage their provided sensitive/confidential threat intel and with CISA for weekly vulnerability scans of our key public facing servers.

We are committed to safeguarding the data of our customers, business partners, patients, and Teammates. We maintain data privacy policies that help us manage ourapproach to specific regulations. We have provided our Teammates with relevant training related to the European Union’s General Data Protection Regulation (“GDPR”) andthe US Health Insurance Portability and Accountability Act of 1966 (“HIPAA”). Our goal in these trainings is to promote awareness of the importance of privacy in all aspectsof our Company.
Owens & Minor 2021 Environmental, Social, and Governance Report | 24

RESPONSIBLE SUPPLY CHAIN
Our Supplier Social Compliance Standards require our suppliers to comply
with the same standards as Owens & Minor. Any supplier deemed to behigh-risk is subject to our third-party audit process, and we ensure thatthey are aware of our social compliance and environmental objectives. We
strive to partner with suppliers who share our values and align with our
Code of Honor.
We have also established a Vendor Code of Conduct, which outlines basic
requirements for vendors, distributors, agents, suppliers, representatives,and other business partners and their employees, directors, officers,
agents, representatives, and subcontractors.
We are committed to supporting human rights. In 2021, we completed
the UK Modern Slavery Assessment to evaluate human rights risk in our
supply chain. We also maintain an active oversight and audit program toensure that our suppliers and our own manufacturing facilities outside of
the United States allow freedom of association and collective bargaining,protect against child labor, prohibit discrimination, and comply with wage
and safety standards across our supply chain.
In 2021, Owens & Minor took steps to improve on our Environmental,
Social Compliance, and Governance (ESG) efforts, which includes
addressing Modern Slavery in our supply chain through Social Compliance
Questionnaires, Vendor Audits, committees focused on Labor Standards
Assistance System (LSAS) and social compliance efforts globally.

Owens & Minor 2021 Environmental, Social, and Governance Report | 25

SUPPLIER DIVERSITY
For over 35 years, Owens & Minor has made diversity in our supplier base abusiness and economic imperative. Our long-standing commitment to advancing
supplier diversity in healthcare has expanded through the years as we pursue
innovative, unique, and cost-competitive solutions for our customers. Our
collaborative approach has helped build infrastructure and ethical businesspractices within a diverse group of small, woman-, minority- LGBTQ+-, and veteranowned businesses.
Building on our commitment to diversity, Owens & Minor has created a strategy tocontinuously improve our program to achieve best-in-class status through:•Ensuring job creation and growth•

Mentorship•

Performance tracking and visibility

Partnership is key as Owens & Minor focuses on accelerating the development of adiverse product portfolio. In 2021, Owens & Minor continued strategic efforts withpartner Caracal Products & Services, a certified Minority Business Enterprise andTier 1 diversity spend supplier providing medical supplies, PPE, apparel, printing
papers, consumable paper products, print management programs, kitting services,
warehousing and distribution. O&M and Caracal remain laser-focused on achieving
best-in-class programs that aim to create jobs while simultaneously developing
future leaders and mentoring diverse suppliers.

“All in all, Owens & Minor’s executive leadershipand its Minority Business Enterprise partners arecommitted to creating hundreds of new jobs for the
purpose of supporting Owens & Minor’s diversity
efforts. Owens and Minor has quietly been doing thesethings for a long while, and while their Executive
leadership may not boast about it to you, I will.”
Donald C Roberts
President/CEO, Caracal Corp.
Owens & Minor 2021 Environmental, Social, and Governance Report | 26

Our Mission is to proactively identify,
build relationships with, and purchasegoods and services from third-party
certified enterprises owned by minorities,
women, veterans, members of the LGBTQ+
community, and disabled persons that canhelp Owens & Minor achieve its corporate objective.
Our Supplier Diversity Policy can be found: (https://compliance.
owens-minor.com/docs/Supplier_Diversity_Policy.pdf)

Implementing this strategy is our Supplier Diversity Council (SDC), a crossfunctional team with members from each business area. In 2021, the SDC focused onstandardizing data across the company to gain a full year baseline of diverse spend,established goals for increased diverse spend by product category, and worked withcustomers to provide opportunities to increase their diverse spend.
For 2022, we plan to focus on expanding our diversity spend in new productcategories, establishing new creative relationships with diverse suppliers andworking with our customers to improve the communities in which we serve.

The number of Supplier Diversity Programs have increased by
60% within the past two years.
-

2021 State of Supplier Diversity Programs by Supplier.io

Industry Associations: Teammates remain current on quality and regulatory
trends through active involvement with industry trade groups and standards
organizations such as:

The National Minority Supplier Diversity Council (NMSDC) reported that certified
Minority Business Enterprises (MBE’s) generate $400 billion in economic output thatlead to the creation or preservation of 2.2 million jobs and $49 billion in annual revenue
for local, state, and federal tax authorities.
-

Harvard Business Review: Article Demographics Why You Need a Supplier
Diversity Program. 2020 Harvard Business School Publishing Corporation

Owens & Minor is represented on the Board of HSDA and on the
HIDA Supplier Diversity Council.

2021 Supplier Diversity Events
HIDA Webinar Distribution 101 panel to provide education to small diverse
suppliers about working with a distributor.
HSDA Webinar Value Analysis –interviewed past president and founder of the
Association of Healthcare Value Analysis Professionals (AHVAP), to provide
education to Healthcare Supplier Diversity Alliance (HSDA) members.
MBE Manufacturing Summit for Georgia Tech Business –joined other industry
thought leaders on a panel to discuss the future of healthcare supply chain withminority business entrepreneurs.

Owens & Minor’s Earl G. Reubel Awards - presented the O&M Earl G. Reubel
Awards at the Healthcare Supplier Diversity Alliance Conference to honor
individuals and organizations that are leaders in diversity and inclusion within
the healthcare supply industry. Details about the 2021 winners can be found at:https://www.owens-minor.com/news/owens-minor-announces-winners-of2021-earl-g-reubel-awards/
Premier Breakthroughs 21 Conference –presented the Hot Topic – Creating a
Supplier Diversity Program.
HSDA Symposium–moderated the Keynote Panel of industry leaders.
Owens & Minor 2021 Environmental, Social, and Governance Report | 27

EMP OW ER INGOUR
T E AMM AT E S

Our Teammates are the heart of our organization. In 2021, O&M remained focusedon furthering efforts to foster an empowering, safe, and inclusive work environment
where all Teammates can thrive. With this goal in mind, our 2021 efforts included:•

Listening to our Teammates: Launched a Global Teammate Engagement Survey•

Supporting Teammate Well-Being: Maintained and expanded Teammate benefits•

Developing our Talent: Expanded the career development opportunities forTeammates•

Focusing on Health and Safety: Continued emphasis on working conditions andtraining•

Fostering Diversity & Inclusion: Increased participation and engagement inTeammate led programs

I am proud to say I work for a company that recognizes the unprecedented challenges we face from a personal,
professional, and social perspective and has more than risen to the occasion. Building on our strong history ofTeammates first, we evolved our commitment to the health and safety of all of our Teammates, while maintaining
our ethical business practices and expanding our capacity to meet business needs while living our IDEAL Values.
Sharyn Ford
VP of Global Talent & Organizational EffectivenessOwens & Minor 2021 Environmental, Social, and Governance Report | 28

LISTENING TO OUR TEAMMATESIn May 2021, Owens & Minor conducted an annual Global Teammate Engagement Survey to continue building organizational continuous improvement through listening
and open communication. Over 90% of Teammates across our global organization participated in the survey and the company achieved high ratings across key drivers ofTeammate engagement. Based on the results of the survey, O&M leadership took action to develop plans aimed at addressing areas of development, leveraging areas ofstrength, and executing those plans across the company.

Favorable: 83.6%
Neutral: 10.9%
Unfavorable: 5.5%

Favorable: 80.1%
Neutral: 12.7%
Unfavorable: 7.2%

Favorable: 88.7%
Neutral: 7.9%
Unfavorable: 3.3%

The Global Engagement Survey will be an annual process to ensure as a company we continue to listen to our Teammates and drive engagement across the enterprise.
Owens & Minor 2021 Environmental, Social, and Governance Report | 29

SUPPORTING TEAMMATE WELL-BEING
To promote Teammate health and well-being, Owens & Minor offers comprehensive
benefits. Additional information about our total Teammate benefits can be found on
our website. In addition to our current benefits plan, Owens & Minor has made strides
in adapting our work-life environment to meet the needs of our Teammates. A few
spotlights are outlined below:

New Work-life Benefits Extended to All Teammates:
•
•

•
•
•
•

Additional 401(k) contribution to all eligible Teammates
100% company paid Teammate Assistance Plan (TAP)
for all Teammates and household members, which
includes no-cost counseling sessions
Paid time off plan
Flexible work policies to include, in office, hybrid andremote job opportunities
3 weeks of paid parental leave at 100%, for family
bonding after the birth of a Child
Dependent care spending accounts

Globally, each country has a market-competitive suite ofhealth, wellness, and financial benefits.
• Free telemedicine benefits• Coverage of COVID testing• Flexible attendance policies

Owens & Minor 2021 Environmental, Social, and Governance Report | 30

TALENT MANAGEMENT & PLANNING PROCESSOne of our strategic goals is to Develop, Retain and Attract Top Talent. Develop and retain are purposely listed first because we believe that we must first focus on the over
20,000 talented Teammates who empower our company. Owens & Minor is dedicated to providing the kind of culture where Teammates can grow their careers and enjoy the
rewarding work they do every day.
The annual Talent Planning process provides a strategic roadmap to plan for the future of our critical roles and talentneeds in support of our business deliverables.

2021 Key Areas of Focus:•

Leadership Development Program

The Talent Planning process is composed of three critical steps:•

Emerging Leaders Program•

Talent Assessment – assessing potential and ensuring alignment with company values•

Summer Intern Program•

Talent Calibration – making quantitative comparison of demonstrated performance and values•

Succession Planning – providing insight into strength of talent and identifying opportunities to address gaps

The Talent Planning process culminates into an Executive Leadership Team (ELT) and Board review of our mostcritical talent. Organization-wide data is collected, paired with analysis and reviewed by the ELT before a final
report-out is presented to the Board, which includes next steps and commitments for the coming year.

Owens & Minor 2021 Environmental, Social, and Governance Report | 31

Additional detail on how we are developing
Diversity and Inclusion in our leadership canbe found in the proceeding section of the samename.

HEALTH AND SAFETY
The health and safety of our Teammates and the sustainability of our processes
are a critical focus. As the company evolves and industry demands change, ourcommitment to continuous improvement across all aspects of health and safety
remains strong.

Days Away, Restrictions, or Transfer(“DART”)••

Owens &Minor 2020•

Development of a standard office safety orientation•

Creation of return-to-work programs•

Implementation of standard operating procedures to improve fire protection
systems•

Sharing resources for online Safety Data Sheets management, as well as other
online safety tools

Taking Proactive and Preventative Action

1.8 0.33 0.27
Industry Average

Special projects included the following:•

In 2021, all distribution and manufacturing facilities participated in Safety Week,
creating an opportunity for Teammate engagement and increased awareness.
Events supported cross-collaboration and communication to help educate andshare best practices where possible. This shared knowledge and understanding
enables focused efforts to reduce risk and create a safer workplace for all O&M
Teammates.

•

The foundation of our work centers around our Safety Management System(SMS), developed in the Fall of 2016. This system begins with a leadershipcommitment and facilitates a continuous loop of improvement. Through 2021,
O&M reported a 62% reduction in recordable incidents and 85% reduction in
DART incidents since the adoption of this system.

Owens &Minor 2021

In 2021, the overall Company cases of Days Away, Restrictions, or Transfer(“DART”) rate across all business units was 0.27, significantly better than theindustry average of 1.8 for all private industries as reported by the 2020 Bureauof Labor Statistics.
In 2021, 30 of our sites (60%) achieved our Crystal Eagle award for safety.
(Sites that perform 365 consecutive days free of recordable injury are eligible
for the award.)

Our Global Safety & Risk Council brings together all Owens & Minor Risk, Safety,
Security, and HR professionals in conjunction with leaders from each businesssegment to collaborate and share best practices. Environment, Safety, andHealth functional leadership sits on the ESG Committee and communicates
regularly with the ESG Lead & Executive Leadership Team. During 2021, we jointly
tackled initiatives such as development of One Point Lessons sharing of incident
investigations and corrective/preventive actions, and collaboration on important
projects.

Safety Management System (SMS)
Job Hazard
Analysis (JHA)
Review Leading Indicatorand KPIs
Celebrate Success and
Identify Improvements

Incident Investigations andRoot Cause Identification toPrevent Future Occurrences

Leadership
Commitment

SOP Development
and Training

Job Safety
Observations (JSO)Internal Inspections

Owens & Minor 2021 Environmental, Social, and Governance Report | 32

As an organization, we monitor injury trends, identify focus areas and contributing
factors, and create process improvements to reduce these variables. Owens &Minor uses a facilitated professional ergonomic assessment to share lessons
learned and adopt ideas for improvement. We continually review our processes,
from recruiting through onboarding, training, and coaching, to identify gaps.
Safety starts on day one and we are forming teams to focus on the new hire safety
experience.
Behavior-Based Safety to Support Risk Reduction
We continued to practice behavior-based safety (BBS) throughout our distribution
and manufacturing facilities. The purpose of this program is to conduct Job Safety
Observations (JSO) while Teammates are working and identify at risk behaviors.
•

Coaching is provided on the spot to correct movements and prevent injuries
from occurring.

•

Data is recorded and trends identified that may lead to new techniques,training, and increased accountability.

•

In 2021, all Distribution Supervisors and Managers received facilitator-led
training designed to improve the quality of the JSO and on the spot coaching forcorrection. This focused interaction also provides the opportunity to provide
direct reinforcement of safe behaviors.

•

An online JSO reporting database was created for ease of reporting andvisibility of data.

•

Our target was to complete 98% of assigned JSO’s, and in 2021 Distribution
leaders completed 146% of our goal, showcasing the dedication of our team toensuring a safe workplace for our Teammates.

Other leading safety indicators include near miss reporting, high impact andfailed inspection acknowledgment for material handling equipment, onsite safetycommittee meetings, inspections, open actions, safe catch recognition, andemergency response drills. An example of a new program in 2021 was a structured
high impact accountability guide. This program shows our Teammates the risks
associated with operating material handling equipment, and requires retraining,coaching, and accountability based on action level impacts registered on themachine.

Owens & Minor 2021 Environmental, Social, and Governance Report | 33

Our manufacturing facilities continue to operate at an exceptional level of safety,
finishing the year with a Recordable Incident Rate of 0.14, a full 95% lower than
the industry average. This is driven by a strong BBS observation program where
unsafe acts and conditions are captured prior to accidents and injuries occurring.
During 2021, our manufacturing team conducted over 6,500 behavior-based safetyassessments, against a target of 6,000, realizing 8% participation over target.
Throughout 2021, our EHS team analyzed the top risk behaviors of ourmanufacturing site Teammates. By trending and further analyzing this information,
our EHS teams designed programs across all sites designed specifically to addressand correct these risk behaviors and reduce related injuries of our Teammates.
Dedicated Training Based on Incident Reporting
To help mitigate the risks associated with an observed increase in ergonomic
injuries and “Slips, Trips, and Falls”, we have designated targeted training in our
Owens & Minor University system for all manufacturing Teammates.
•

This training also serves to address the top three BBS risks identified.

•

All manufacturing sites employ a quantitative risk assessment tool on
manufacturing equipment, measuring improvements in guarding, safety
software controls, and enhanced safety procedures.

•

During 2021, we realized a 29% reduction against the previous year in
manufacturing equipment related injury risk.

Each year, all Teammates and people leaders sign acommitment to safety and their three obligations:
1. I am obligated to refuse to perform any work that is
unsafe or for which I am not properly trained.
2. I am obligated to stop a fellow Teammate who may beengaged in work that is unsafe or for which they are notproperly trained.
3. I am obligated to stop and listen to a Teammate who may
caution me as to observed work that I am doing unsafely
until a safe manner can be agreed upon.
Owens & Minor 2021 Environmental, Social, and Governance Report | 34

DIVERSITY AND INCLUSION
Teammates are the heart of our organization. Just as our Teammates are committed to Empowering Our Customers To Advance Healthcare, Owens & Minor is committed tofostering an empowering work environment where every Teammate can thrive.
Diversity and Inclusion is a critical part of fulfilling our IDEAL Values—Integrity, Development, Excellence, Accountability, and Listening—and delivering on our Mission to ourcustomers.
To promote Diversity and Inclusion in O&M, our Culture & Inclusion Steering Committee meets regularly to promote and support our Teammate Resource Groups (TRGs) andincludes Committee leadership through our Human Resources and Talent Management teams.
Demographics Disclosure
DEMOGRAPHICS OF OUR BOARD OF DIRECTORS & U.S. TEAMMATES BY GENDER AND ETHNICITY AS OF DECEMBER 31, 2021
Male

FemaleUnknown

White

American Indianor Alaska Native

AsianBlack or African
AmericanBoard ofDirectors1

75%

25%

0%

75%

0%

0%

25%

0%

0%

0%

0%

Executive
Management2

80%

20%

0%

100%

0%

0%

0%

0%

0%

0%

0%

Nonexecutive
management

62%

38%

0%

68%

0%

3%

12%

8%

0%

1%

7%

Professionals3

48%

52%

0%

68%

1%

5%

12%

8%

0%

1%

6%

All other
Teammates4

51%

46%

3%

35%

1%

6%

29%

15%

0%

2%

12%

*Note: Due to rounding, percentages provided may not add up to 100%
1
Seven Independent Directors as of Dec 31, 2021

2
3

Leadership team of seven members
All exempt level Teammates excluding people leaders

Director & Above

Year over Year Changes in
Non-Executive Management
Demographics:

Hispanic or Native Hawaiian orMultiple
Unknown5
Latinoother Pacific Islander ethnicities

4
5

All non-exempt level Teammates excluding people leaders
Teammates who have not self-identified on our ‘Workday’ system

EVP

SVP

VP

2020

2021

Change2020

2021

Change2020

2021

Change2020

2021

ChangeGlobal Female

27.1%

27.6%

+0.5%

16.7%

20.0%

+3.3%

0.0%

0.0%

0.0%

32.4%

25.0%

-7.4%

US Ethnic
Minority

13.0%

14.5%

+1.5%

0.0%

0.0%

0.0%

0.0%

0.0%

0.0%

13.5%

17.3%

+3.8%

Owens & Minor 2021 Environmental, Social, and Governance Report | 35

TEAMMATE RESOURCE GROUPS (TRG)
All Teammates have the opportunity to join our Teammate Resource Groups (TRGs). Each TRG provides space, resources, and support for underrepresented identity groups
to develop goals that will help propel the Teammate and the organization forward. Through ongoing events and outreach, each TRG provides unique opportunities to connect
and foster community across the company. Any Teammate is welcome to join any TRG as a member or an ally.

ASPIRE – Asian Americans and PacificIslanders Rising to Excellence - To
promote, advance, and encourage
a positive and inclusive working
environment for Asian Americans andPacific Islanders by recognizing important contributions, providing thought
leadership, and building awareness within Owens & Minor.

BhOMe – Black Heritage Outreach
Mentorship and Enrichment - The
mission of the BhOMe TRG is to develop
and cultivate Black Heritage leaders,create an inclusive environment for all,increase thought leadership from diverse perspectives, and enhance theoverall cultural experience at Owens & Minor.

Hispanic Organization for Leadership& Achievement - A sustainable network
for Latinx Teammates that embraces
diversity, growth, and leadership to drive
awareness and create an inclusive culturethat enables the development of talent through education, networking, andmentorship.

P.R.I.D.E – Philanthropy. Respect.
Intersectionality. Diversity. Education.
- The PRIDE TRG is designed to offer
a space for social support and provide
an organized platform from which
Teammates can advocate for themselves and their LGBTQ+ Teammates/
allies. The initial focus is on generating awareness of the group’s role andobjectives while also providing educational opportunities for non-LGBTQ+
Teammates.

To position Owens & Minor as a veteranfriendly company to potential and current
Teammates and serve as a role model toothers for supporting local veterans.

Inspiring and elevating women to embrace
the technology field, thereby closing thegender gap.

Women’s Empowerment Network (WEN)– To support the Women of Owens &Minor in their careers and to provide anorganizational resource to attract and retain atalented, diverse workforce that will provide
a competitive advantage.

Owens & Minor 2021 Environmental, Social, and Governance Report | 36

BhOMe Leadership Symposium: The 2021 theme for this symposium was
Leadership Level Up and the event focused on improving and introducing newleadership skills to our Teammates. The symposium also included several leadershipexpert speaker sessions and workshops with topics such as: Building Your Network,
Leadership Skills Development, Navigating the Corporate Landscape, Effective
Communications, and Perspectives From Real Leaders.

Women’s Leadership Conference: Sponsored by the WEN and WIT TRGs, the theme
for this inaugural conference was Rise Up, Stay Connected, Be the Connection andincluded insights from Owens & Minor Executive leaders, networking sessions with
topics including Taking Risks, Leading Through Change and Mentoring.

Owens & Minor 2021 Environmental, Social, and Governance Report | 37

L OOK ING
AHE AD
Through 2024 and beyond, Owens & Minor plans to continue on our path ofbeing an ESG Champion by:•

Building upon ESG initiatives•

Expanding Diversity and Inclusion•

Retaining, attracting, and developing top talent•

Expanding training and growth opportunities

We continue to improve on our ESG journey and are further developing
our ambitions as it pertains to emissions reductions, the development of adiverse workforce and leadership, expansion of diverse partnerships across
our operations, and the continuous improvement of ethical and transparent
governance practices. We invite you to communicate with us and keep up todate on our progress through our ESG company webpage, https://investors.
owens-minor.com/esg, as we continue our ESG journey at Owens & Minor.

Owens & Minor 2021 Environmental, Social, and Governance Report | 38

A B OU T
T HISR EP OR T
Report Boundaries

Disclaimer

This report covers calendar year 2021. Some initiatives or targets that werelaunched during early 2022 are also included in this report to provide up-to-date
information for our stakeholders. We intend to report on ESG topics annually. This
report covers Owens & Minor’s ESG efforts across our entire company, including
our subsidiaries.

When we use the terms “Owens & Minor,” “OMI,” “O&M,” “we,” “us,” “our,” andthe “Company,” we mean Owens & Minor, Inc., a Virginia corporation, and its
consolidated subsidiaries, taken as a whole, unless the context otherwise
indicates. The intended audience of this communication is the general public andthe purpose is to communicate ESG information on Owens & Minor’s business
operations.

Reporting Guidelines & Content
We prepared this report leveraging the Global Reporting Initiative (GRI)
Sustainability Reporting Standards 2021 framework and the Sustainability
Accounting Standards Board (SASB) Healthcare Distributors industry guidance
report. GRI and SASB indexes can be found in the Appendix of the report.
We take seriously the views of all our stakeholders. The topics covered in thisreport were defined based on the ESG priorities that were identified in early 2021,
which has defined our ESG framework. More information may be found in the “OurESG Priorities” section on pages 7.
Reporting Uncertainties
Non-financial information in this report is subject to measurement uncertainties
resulting from limitations inherent in the nature and methods for determining
such data. The selection of different measurement techniques can result inmaterially different measurements. The precision of differing measurement
techniques may also vary.

Owens & Minor 2021 Environmental, Social, and Governance Report | 39

The use of the term “materiality” and other similar terms refers to ESG topics
and materiality assessments in the context of sustainability or ESG materiality
assessment as defined by voluntary ESG/Sustainability reporting frameworks. We
are not using such terms as they are used under the securities or other laws of theUnited States or any other jurisdiction or as these terms are used in the context offinancial statements and financial reporting.
Statements in this ESG report regarding the Company’s ESG initiatives and future
operating results, outlook growth, plans, and business strategies, including
statements regarding project savings and improvements to the Company’s
operations, product offerings, technologies, and ESG metrics as a result of its
initiatives and programs, as well as any other statements that are not related topresent facts or current conditions or that are not purely historical, constituteforward looking statements.
Content Index
https://investors.owens-minor.com/esg