ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG)
2020 REPORTTABLE OF CONTENTS

Who We Are								4Our History								5Our Values								5Our Business								6About this Report							8Our Approach to ESG							10Our ESG Priorities							10Integrating ESG into Our Business					10Stakeholder Engagement						11Empowering Our Teammates					12Talent Management							13Health and Safety							15Diversity and Inclusion						18Caring for Our Customers and Communities			20
Innovative Healthcare Solutions					22Product Quality and Safety						22Access and Affordability of Healthcare Products and Services
22
Strengthening Communities						23Operating Responsibly						24Governance and Accountability					25Ethics and Compliance						26Data Privacy and Security						27Responsible Supply Chain						28Ensuring Environmental Stewardship				30Energy Efficiency and Climate Risk					31Fleet Efficiency							33Water and Waste Management					34Responding to the COVID-19 Pandemic				36GRI/SASB Content Index						38GRI Content Index							38SASB Content Index							41Owens & Minor 2020 Environmental, Social, and Governance Report | 3

LETTER FROM OUR CEO

The criticality of our business has become even more apparent throughout the
pandemic as the PPE we produce became more important than ever for protecting
healthcare professionals and other essential workers. Our relentless focus on theresiliency of our value chain allowed us to rise to the COVID-19 challenge and increase
manufacturing to respond to the needs of our customers and, in doing so, reinforced
our healthcare system at a very vulnerable time.
Over the years, our business has intrinsically supported Environmental, Social andGovernance (ESG)-related outcomes, and we recognize the significance of identifying,prioritizing, and managing the ESG impacts created within our operations. In 2020, we
started the journey of building a formal ESG program. Our team has embraced thiswith enthusiasm, and I am proud of the progress we have made, including:• Identifying our priority ESG topics• Developing an ESG strategy and focus areas of (1) Empowering our Teammates,(2) Caring for our customers and communities, (3) Operating responsibly, and (4)Ensuring environmental stewardship to support intentional progress toward ESG
outcomes

Since our founding, Owens & Minor has supported healthcare providers andprofessionals in driving positive health outcomes for society. Throughout our nearly
140-year legacy, we have been focused on providing superior healthcare solutions.
With our broad experience and extensive medical distribution reach, we touch manydifferent parts of healthcare.
Our business has evolved over time; from a local drug company to a verticallyintegrated healthcare solutions provider, we have adapted our business to takeadvantage of technological innovation and globalization to advance healthcare supply
chain and logistics.
COVID-19 impacted the world in unforeseen and unprecedented ways. In 2020, we, likenumerous other companies, had to adapt our business and operations while keeping
our Teammates healthy and protected during the pandemic. We stepped up to thechallenge to address the demand for personal protective equipment (PPE) and othercritical products and services that keep providers safe while enabling them to continue
their critical work of caring for patients.
4 | Owens & Minor 2020 Environmental, Social, and Governance Report• Developing an ESG governance and accountability structure, including a teamdedicated to implementing our ESG strategy• Continuing to support the care continuum, delivering solutions to empower
healthcare, and strengthening communities
We are committed to our journey to further develop and implement our ESG strategy
across the business to drive long-term value.
From design to delivery, it is our responsibility to be relentlessly focused on building
a business aligned to our IDEAL Values (Integrity, Development, Excellence,
Accountability, and Listening) that benefits our customers, Teammates, communities,
investors, and the world. We take that commitment very seriously every single day.
Sincerely,

Edward A. Pesicka

WHO WE ARE

Since our founding, Owens & Minor has been serving the healthcare system, in alignment with our Mission of Empowering Our Customers to Advance Healthcare™. Through ourtechnology, products, and service offerings, we deliver significant and sustained value across the breadth of the industry – from acute care to patients in their home.

OUR HISTORYOUR VALUES

In 1882, Owens & Minor Drug Company was founded when we opened our first locationin downtown Richmond, Virginia. Our company operated principally as a pharmaceutical
distributor for more than 80 years until 1966, when we purchased A&J Hospital Supply,
creating the Company’s first presence in the healthcare supply industry.

We believe that the future of healthcare depends on healthcare providers being able to focus
on the needs of our communities. We live our Mission of Empowering our Customers to Advance
Healthcare™ through the work of over 15,000 Teammates worldwide operating under a shared
set of Values, our IDEAL framework:

At Owens & Minor, we have continued to innovate over time to meet the evolving needs ofthe healthcare market and our commitment to serving our customers has resulted in steady
growth for our business.

•

Integrity: We act with the highest standards of ethics and honor the commitments 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•

Listening: We listen to our customers and to one another to understand needs and deliver
solutionsOWENS & MINOR FAST FACTS

HEADQUARTERS

Richmond, VA

NUMBER OF PROVIDER
FACILITIES SERVED

4,000+

as of December 31, 2020

TEAMMATES WORLDWIDEFACILITIES WORLDWIDEREVENUE

15,000+

9 production facilities
53 distribution centers
7 storage facilities
26 office locations$8.4bnOwens & Minor 2020 Environmental, Social, and Governance Report | 5

WHO WE ARE
OUR BUSINESSWe are a healthcare solutions provider, offering an integrated set of technologies, products, and services to healthcare providers, manufacturers, and patients. Our vast medical distribution platform along with astrong portfolio of proprietary products and exciting solutions in our patient direct business support the healthcare value chain from acute care to hospitals to patient care in the home.
Our enterprise-wide offerings are designed to navigate a rapidly changing healthcare environment while enhancing our customers’ experience along the continuum of care. As healthcare continues to evolve, weare prepared to address the current and future needs of our customers through our differentiators:••
We manage the materials, design, strict quality standards, andproduct specifications in our own facilities with our own Teammates.

We self-manufacture most of our proprietary products in theAmericas. In terms of volume of units manufactured, a large portionof our products (particularly gloves) are made in Thailand.

•

We have strategically located distribution centers in North
America for rapid deployment.

OUR OFFERINGS INCLUDE PRODUCTS AND SOLUTIONS IN FOUR CRITICAL ASPECTS OF HEALTHCARE SUPPLY CHAIN:PRODUCTS
Through our standard-setting HALYARD*, MediChoice®, and Medical Action® brands,
our vertically integrated business produces our own non-woven rolled goods andmanufactures medical equipment used every day in hospitals and medical clinics,
including medical exam gloves, personal protective equipment such as facial
protection and protective apparel, patient gowns, surgical drapes, and more.

Owens & Minor Products in COVID-19
With our Americas-based manufacturing, we are wellpositioned to help with the COVID-19 response. PersonalProtective Equipment (PPE), such as N95 respirators,
gloves, and more are critical tools to helping slow the
spread of the virus. In 2020, we installed new capacity for
N95s and non-woven fabric, along with the expansion ofisolation and surgical gown capacity, to help keep medical
first responders and the patients they served, safe. For
example, we surged manufacturing of N95s by over 1000%
relative to 2019 levels.

6 | Owens & Minor 2020 Environmental, Social, and Governance ReportDISTRIBUTION
We operate a robust value chain that brings leading
products, including our own proprietary brands, tomedical facilities. With 90% of Americans living less thanfour hours from Owens & Minor distribution centers and
99% rates for on-time delivery, shipping accuracy, andpricing accuracy, our distribution solutions are trusted
for their flexibility in providing seamless support to thehealthcare facilities they serve.

SERVICES
In addition to operating distribution networks, we provide supply
chain management services, including inventory and suppliermanagement and analytics. These services help our customers
save the valuable time of clinicians for patient care, decrease costs
associated with unneeded inventory, and reduce overall inventory
and supplier risk.

Logical Unit of Measure Distribution
Globally, medical facilities havepredictable and specific demand for
medical products, and one-size-fitsall distribution solutions such as bulk
purchasing often do not meet the needsof medical providers and create risks
related to the quality and timing of care.
We offer Logical Unit of Measure (LUM)
solutions that precisely meet the needsof providers while reducing surplus
inventory.

Diabetes care
Through Byram, our Patient Direct business,
we are dedicated to providing timely andreliable delivery of medical supplies forpatients with diabetes which allows them toeffectively and easily manage their health. We
offer a one source total solution for diabetescare, including glucose monitors, test strips,
insulin pumps and more while providing
insights and resources to help patients spend
less time worrying about their health.

QSight®
Medical supply chain managers deal with hundredsof SKUs and suppliers every day to create a custom
value chain right-sized for their operations. Our QSight
supply chain software solution helps them manage thatprocess by facilitating simplified data input, providing
visibility of products from manufacturing to point ofuse, and eliminating manual tasks that drive costs andrisk.

PATIENT DIRECT
Millions of people managing chronic conditions are in needof medical supplies outside of a healthcare facility. ThroughByram Healthcare, our Patient-direct subsidiary, we provide
patients access to affordable, convenient, and high-quality
medical supplies to manage diabetes, chronic wounds
ostomy, and more at home.

Owens & Minor 2020 Environmental, Social, and Governance Report | 7

ABOUT THIS REPORT
Owens & Minor’s 2020 Environmental, Social and Governance (ESG) Report provides qualitative and quantitative information regarding our ESG performance to our stakeholders.

REPORT BOUNDARIESDISCLAIMER

This report covers calendar year 2020. Some initiatives or targets that were launched during
early 2021 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 company, including our subsidiaries.

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

REPORTING GUIDELINES AND CONTENT
We prepared this report leveraging the Global Reporting Initiative (GRI) Sustainability ReportingStandards reporting framework and the Sustainability Accounting Standards Board (SASB)
Health Care Distributors and Medical Equipment and Supplies industry guidance report. GRI
and SASB indexes can be found in the Appendix of the report.
While this is our inaugural report, we are proud of our ESG focused initiatives that have beenongoing for years. We recognize we are at the beginning of our ESG journey, and continue
to improve the quality of our disclosures on ESG to provide a deeper understanding of ourperformance to our stakeholders.
We take seriously the views of all our stakeholders. The topics covered in this report were
defined based on the ESG priorities identified through our ESG materiality assessment thatwas performed in early 2021, which has defined our ESG framework. More information may befound in the “Our ESG priorities section” on pages 10-11.

REPORTING UNCERTAINTIES
Non-financial information is subject to measurement uncertainties resulting from limitations
inherent in the nature and the methods used for determining such data. The selectionof different but acceptable measurement techniques can result in materially different
measurements. The precision of different measurement techniques may also vary.

8 | Owens & Minor 2020 Environmental, Social, and Governance Report

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 the United States or any other jurisdiction or as theseterms are used in the context of financial statements and financial reporting.
Statements in this ESG report and Owens & Minor’s website 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 andprograms, as well as any other statements that are not related to present facts or current
conditions or that are not purely historical, constitute forward looking statements. Forward
looking statements involve known and unknown risks and uncertainties that may cause actual
results in future periods to differ materially from those projected or contemplated in theforward looking statements.

Owens & Minor 2020 Environmental, Social, and Governance Report | 9

OUR APPROACH TO ESG
We believe in a future of sustainable and effective healthcare, and every day, our healthcare solutions in manufacturing, distribution, and services empower clinicians,
researchers, and hospital systems to make this vision a reality. While we are dedicated to continuously improving our offerings, we also know that progress requires managing
the impacts from every aspect of our business, and we are committed to doing our part to identify and address ESG in our products, our operations, and our entire value chain.

OUR ESG PRIORITIESIn early 2021, we performed an ESG materiality assessment to identify and prioritize ESG
topics that are most relevant to our key stakeholders. By using the results of the materiality
assessment Owens & Minor will align ESG risks and opportunities with our overall strategy,
while striving to improve our societal impacts.

We recognize that ESG materiality assessments should be updated on a regular basis toreflect changing trends, business impacts and stakeholder priorities. We plan on updating
our ESG materiality assessment process to incorporate additional external stakeholder
engagement and current market trends.

Prior to executing the ESG materiality assessment, we identified the topics that could
be potentially relevant to our business and stakeholders by conducting research,
benchmarking and leveraging external ESG reporting frameworks (e.g., The Sustainability
Standards Accounting Board (SASB), the Global Reporting Initiative (GRI)).

INTEGRATING ESG INTO OUR BUSINESSWe engaged with representatives across the business and executive leadership to obtain
their perspectives on the relative importance of these ESG topics. We then prioritized the
ESG topics that are most significant to Owens & Minor. The results (shown below) were
ultimately validated by our CEO and the Board of Directors:

O&M’s ESG Materiality Results (prioritization of ESG topics)
IMPERATIVEVERY IMPORTANT

IMPORTANT

G – Data privacy and security
S – Diversity and Inclusion (D&I)
G – Ethics, anti-bribery andanti-corruption
S – Health and safety
S – Product quality and safety
S – Responsible supply chain
and human rights
G – Regulatory compliance
E – Waste management

S – Access and affordability ofhealthcare products and services
E – Climate risk
G – Corporate governance
E – Energy efficiency
G – ESG governanceE – Fleet efficiency
E – Environmental stewardship
E – Product design and lifecycle
management
S – Talent management
G – Transparency

S – Community engagement
G – Customized healthcare
solutions
E – Water management

Legend: E – Environmental topic, S – Social topic, G – Governance topic
10 | Owens & Minor 2020 Environmental, Social, and Governance Report

Our ESG framework forms the basis of our ESG program, integrating the ESG priorities
identified in our materiality assessment into key aspects of our operations and overallbusiness strategy. To define our framework, we conducted a number of “visioning” sessions
that presented our materiality assessment findings to our ESG team and executive
leadership. We also held comprehensive discussions to formulate the core components ofour framework, the Owens & Minor ESG focus areas, and corresponding commitments.
The implementation of Owens & Minor’s ESG framework will be managed by our newly
formed, cross-functional team, with diverse expertise and responsibilities, including
representatives from Investor Relations, Human Resources, Supply Chain, Community
Engagement, Environment, Legal, Ethics and Compliance, and Health and Safety. This teamwill be led by the executive leadership with oversight and final approval by the Governanceand Nominating Committee (GNC). To help formalize this oversight, the charter for the
GNC was amended in 2021 and the ESG team will continue providing regular updates to theBoard on the progress of implementing the ESG strategy.

O&M’S ESG FRAMEWORKSTAKEHOLDER ENGAGEMENT

Empowering Our Customers
To A d v a n c e H e a l t h c a r e ™

Our stakeholders are a consideration in every part of our business, and we stay connectedwith customers, investors, vendors (suppliers, distributors, agents, and other business
partners) communities, Teammates, and other stakeholders through a variety ofengagement methods, including live discussion, reports, and surveys. The chart below
provides an overview of how we communicate with our stakeholders:

Key Stakeholder
GroupsEMPOWERING OURTEAMMATESCARING FOR OUR
CUSTOMERS ANDCOMMUNITIESFoster anempowering, safe
and inclusive work
environment where
all Teammates canthriveDeliver superior
and easily
accessible care forcustomers and thecommunities wesupportOPERATINGRESPONSIBLY
Demonstratesound governance,accountability,
and responsible
sourcing

ENSURING
ENVIRONMENTAL
STEWARDSHIP
Minimize the impactof our operations on
the environment

Our ESG framework is grounded in our Mission statement, underlining how ourenvironmental, social, and governance-related efforts are firmly rooted in our culture,value proposition, and Values. This overarching message is supported by our four focus
areas and accompanying objectives, defining the outcomes we hope to achieve by ourefforts and encompassing the impact areas identified in our materiality assessment.

Internal & External Communication Mechanisms

Customers• Customer resources tab on corporate website• Direct communications with customers

Communities• Local volunteering opportunities• Press releases• Corporate website disclosures

Teammates••••

Government/
Regulators• Government relations function• Ongoing interactions with regulators associated with productand facility registrations and related reporting requirements

Investors••••

Vendors• Regular communication and business reviews with vendors
including adherence to the Vendor Code of Conduct

Teammate engagement survey
Intranet - Featured News
Quarterly town hall meetings
Monthly community newsletters

Annual shareholder meeting
SEC filings and annual report
Quarterly conference calls
Investor meetings, conferences, and roadshows

Owens & Minor 2020 Environmental, Social, and Governance Report | 11

EMPOWERING OUR TEAMMATES

Foster an empowering, safe, and inclusive work
environment where all Teammates can thrive.
Teammates are at the heart of our organization. We believein creating an environment focused on the health, safety, andwell-being of our Teammates and aim to provide tools andresources needed for their personal well-being and professional
development.
We strive to create an environment where our Teammates feelvalued, included, and heard. We believe that diverse and inclusive
teams are essential to broaden perspectives and ignite creativity
and innovation in our business. Our Teammates are empowered tohelp lead us on this journey to create a culture where everyone canbe their authentic self at Owens & Minor.

12 | Owens & Minor 2020 Environmental, Social, and Governance ReportTALENT MANAGEMENT
Owens & Minor is committed to supporting the growth anddevelopment of its Teammates. We are continually focusedon developing, retaining and attracting top talent, and we
recognize that continuous improvement is a key component tobuilding a high performing organization.

Over 6,000
Teammates
In the U.S.

Our Talent Center of Excellence leads O&M’s TalentManagement Programs in partnership with Human Resource
leaders in each business unit. The Talent Center of Excellence
team reports to the Chief Human Resources Officer who
provides regular updates to our Board of Directors.
We integrate continuous improvement into our TalentManagement Programs, which includes effectiveness surveys
to clients and participants, and structured open feedback
sessions allowing our HR team to share feedback during andafter the process. These inputs can then be incorporated
into the Talent Management Programs. Additionally, it is ourgoal to conduct Teammate engagement surveys once every
18 months to obtain feedback which can be used to improveexisting programs and inspire future projects.

OVER

15,000Teammates

Over 9,000 International Teammates

Health and well-being benefits:

Financial benefits:•

Medical coverage, including prescription drug coverage,
free in-network preventive care, cost sharing for nonpreventive care, out-of-pocket maximums••

Supplemental medical coverage that provides cash
payments in the event of significant unexpected medical
expense•365+ HUB, a benefit that provides one-on-one support tohelp Teammates improve the quality and cost of care•

Dental and vision coverage401(k) retirement plan that matches Teammatecontributions at 100%, up to 4% of earnings andopportunity for an annual discretionary contribution• Teammate Stock Purchase Plan
• Healthcare savings plan
• Tuition reimbursement for job-related courses• Advisory resources to help Teammates manage theirsavings and investments
Additional benefits:

TEAMMATE WELL-BEING•

Wellness resources to help Teammates manage andmaintain health••

To help manage their health and well-being, Owens & Minor
offers comprehensive benefits to all its Teammates.

•

Health savings and spending accounts

For example, for our Teammates in the U.S., some of ourbenefits include:•

Life and accident insurance••

Disability insurance

Owens & Minor is committed to providing support to ourTeammates as they grow and develop within our company. Our
Total Rewards Program focuses on well-being initiatives for
our Teammates. Key aspects of our program include:

Paid time off plan
Paid parental leave for family bonding after the birth of achild
“Giving Back Day,” which provides Teammates one day per
year where they can participate in a local charity event orcommunity-based program

Globally, each country has a market-competitive suite ofhealth, wellness and financial benefits.
Owens & Minor 2020 Environmental, Social, and Governance Report | 13

SUPPORTING OUR TEAMMATES
COVID-19: As a vital component to the healthcare supply chain, Owens & Minor
manufacturing facilities and distribution centers remained operational throughout the
pandemic. Our Teammates around the world responded selflessly to the pandemic andworked tirelessly to manufacture and distribute healthcare products. During these trying
times, the Company provided additional paid time-off along with COVID stipends to ourfront-line workers. In addition, emergency pay was granted to Teammates who wererequired to quarantine during the pandemic and telemedicine was offered at no cost to
our Teammates.
14 | Owens & Minor 2020 Environmental, Social, and Governance Report

Honduras: For our Honduran Teammates who suffered a devastating hurricane
this past year, we provided additional compensation, beds, and household items
to lessen the severity of the impact. In 2020, during the month of November, thecountry of Honduras experienced two consecutive hurricanes (ETA and IOTA)
resulting in massive flooding in the region surrounding our manufacturing plant.
Over 670 of our Teammates were affected by the flooding, with many losing all theirpersonal property. Owens & Minor supported Teammates by providing food baskets,
mattresses, linens and gift cards for new clothes. Additionally, medical camps were
set up to treat families affected by illness and disease following the storms.

TRAINING AND DEVELOPMENTHEALTH AND SAFETY

We are focused on creating a work environment that provides growth opportunities for
our Teammates to develop new skills and hone existing skills to support their personal
and professional development.

The safety of our Teammates is paramount for us. We are committed to providing a work
environment that empowers all Teammates to make safe choices and leave work safely eachday.

As part of this commitment, we offer Teammates a variety of eLearning training
modules and virtual instructor-led trainings. We are also investing in our learning anddevelopment platform, enabling one learning management system for our Teammates
globally. As a response to the global pandemic, we increased the number of virtual
instructor-led training courses to enable our Teammates to continue enhancing
their skill sets in a virtual environment. In 2020 there were 42,000 learning modules
completed, an increase of over 8% from 2019.

In 2020, we formed a cross-functional Global Safety & Risk Council bringing together all Owens& Minor business units, including Risk Management, Safety Leadership, Security, Quality, andHuman Resources. The Council’s purpose is to share best practices, align and implement
standard practices, standardize compliance procedures, and strengthen our safety culture
through collaboration.
Across our manufacturing and distribution center operations, our Safety Management System(SMS) standardizes safety procedures and improves performance. The foundation of our SMS
is leadership commitment and support that empowers the organization to make safety a toppriority. We continuously assess the health and safety risks our Teammates face in their jobs,
and we work to mitigate those risks using our SMS through job hazard assessments, behaviorbased safety protocols, Teammate engagement programs, and internal safety inspections. A
few examples of how our SMS creates a culture of safety include:•

Training and Standard Operating Procedures: We have Training and Standard Operating
Procedures in place to mitigate risks identified in our job hazard assessments and tocomply with applicable laws, rules, and regulations. In addition, we provide routine safety
training to our Teammates, which includes formal onboard training for new hires with an
in-depth overview of our safety culture and practices.

•

Teammate engagement programs: Each manufacturing and distribution site has a Safety
Committee where Teammates are provided access to management system elements (e.g.,
behavior-based safety database), participate in the development, implementation andcontinuous improvement of all safety management systems. Teammates act as conduits
for sharing information related to safety practices and improvements.

•

Measuring performance: We regularly track leading indicators and lagging indicators anddevelop action plans for improvement based on the results. Leading indicators include
internal inspections, near-miss incidents, high impact reporting, and training compliance;
lagging indicators include recordable incidents, Days Away Restricted or Transferred(DART) incidents, and incident rates. Leading indicators evaluate the strength of our safety
culture, while lagging indicators evaluate the results of our safety efforts.

Owens & Minor 2020 Environmental, Social, and Governance Report | 15

O&M
SAFETY INITIATIVES AND ACHIEVEMENTS
ACROSS GLOBAL PRODUCTS:•

In the last twenty four months, eight of our nine
manufacturing sites received our “Crystal Eagle”
Excellence Safety Awards for operating safely, recordable
injury-free for 365 days.

•

Achieved and beat our goal of 50% reduction of recordable
incident rate over 2019, with a 53% reduction.

•

Teammates and supervisors meet annually to sign a jointcommitment prioritizing their safety and the safety of theirfellow Teammates.

SAFETY INCIDENTS ACROSS ALL OUR BUSINESS UNITS
as of December 31, 2020:
2020
Total number of incidents

110

Total recordable incident rates (TRIR)

0.57

Days away from work, days of restricted work,
and/or days of job transfer (DART)63

DART Rates

0.33

16 | Owens & Minor 2020 Environmental, Social, and Governance Report

SAFETY INITIATIVES AND ACHIEVEMENTS ACROSS
DISTRIBUTIONS:•In 2020, 17 sites achieved incident-free status, two sites achieved two years of incidentfree status, and one site achieved four years of incident-free status.

•

Achieved a 35% reduction in recordable incident rate and a 57% reduction in DART
incidents from 2019.

••100% of distribution sites participated in the annual Occupational Safety and HealthAdministration’s national Safe + Sound week, a nationwide event held each August thatrecognizes the successes of workplace health and safety programs and offers informationand ideas on how to keep Teammates safe.

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Owens & Minor 2020 Environmental, Social, and Governance Report | 17

DIVERSITY AND INCLUSION
We are committed to fostering an empowering work environment that enables our Teammates to thrive. Diversity and inclusion are a critical part of fulfilling our IDEAL Values—Integrity,
Development, Excellence, Accountability, and Listening—and delivering on our Mission. We actively participate and have taken steps to support initiatives that promote diversity and inclusion in
our workplace. We continue to focus on improving the diversity of our leaders. For instance, in 2020, our promotions to Vice President level roles were 57% ethnically diverse and 42% were female.

Diversity means that we …

Inclusion helps to ensure …

retain, develop, attract, and advocate for all Teammates, each and everyday. That we welcome all forms of diversity—including race, ethnicity,
gender, religion, age, and sexual orientation as well as diversity of thought,
experiences and skills.

that we seek to create an organization where each Teammate feels a senseof belonging to Owens & Minor through our IDEAL Values.

To execute on our commitment, our Diversity and Inclusion (D&I) Steering Committee oversees and supports our diversity and inclusion strategy and initiatives. The Committee is composed of
our Talent Management, Learning & Talent Development, and Teammate and Community Engagement teams, and reports to our Chief Human Resources Officer and Chief Operating Officer. The
D&I Steering Committee works in conjunction with the Executive committee (CHRO and COO) for D&I. The Steering committee is responsible for the development and management of Teammate
resource groups, D&I Teammate metrics, communications and conferring with the Executive committee on key focus areas related to D&I. The committee also owns the development of external
relationships/partnerships with Historically Black Colleges and Universities (HBCUs) and Military/Veteran Associations for the purposes of attracting and hiring more diverse and military talent.

DEMOGRAPHICS OF OUR BOARD OF DIRECTORS & U.S. TEAMMATES BY GENDER AND ETHNICITY AS OF DECEMBER 31, 2020
Male

FemaleUnknown

White

American Indianor Alaska Native

Asian

Board ofDirectors1

86%

14%

0%

71%

0%

0%

29%

0%

Executive
Management2

86%

14%

0%

100%

0%

0%

0%

Non-executive
management

63%

37%

0%

71%

0%

2%

Professionals3

49%

51%

0%

70%

1%

All other
Teammates4

52%

46%

2%

38%

1%

*Note: Due to rounding, percentages provided may not add up to 100%
1
Seven Independent Directors as of Dec 31, 202018 | Owens & Minor 2020 Environmental, Social, and Governance Report23Black or African Hispanic or Native Hawaiian orAmericanLatinoother Pacific IslanderMultipleethnicities

Unknown5

0%

0%

0%

0%

0%

0%

0%

13%

7%

0%

1%

5%

4%

12%

7%

0%

1%

5%

6%

27%

14%

0%

2%

12%

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

4
5

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

RECRUITMENT
We believe that a diverse workforce enhances creativity, creates a sense of belonging, anddrives innovation, which is why we embed diversity and inclusion in our Teammate recruitment
practices.
We partner with HBCUs to increase visibility of Owens & Minor’s hiring opportunities forstudents and alumni through networking events, career development workshops, internships,
and career fairs. We provided virtual training sessions for students focused on resume
writing and building interview skills. These schools include Virginia Union University, Howard
University, Hampton University, Clark Atlanta University, and Virginia State University.
In addition, we are a proud military employer of choice and we partner with multiple militaryand veteran organizations to support the service members in our company and communities.

ENGAGEMENT
We increased our efforts to create open spaces and dialogue that engage our Teammatesand foster a culture that embraces and celebrates the varied backgrounds, experiences, andviewpoints our Teammates bring to work.
As part of these efforts, we facilitated a series of focus groups to discuss belonging, culture,and career growth with over 150 diverse Teammates throughout our organization in order togain insight into our Teammate experience. We held two deep-dive sessions that focused on
African American Teammates and female Teammates to provide open and safe spaces for
dialogue.
In 2020, we created Teammate Resource Groups (TRGs), which provide resources and support for underrepresented identity groups to improve innovation, promote belonging, increase team alignment, and boost engagement. TRGs are overseen by our Diversity andInclusion Steering Committee to ensure their voices and messages are elevated throughout
our company. We have approximately 260 Teammates participating as members or allies,
and our TRGs continuously lead events that connect and foster a sense of community:•

In response to the events highlighting racial injustice, our Black Heritage, Outreach,Mentorship, and Enrichment TRG sponsored company-wide “Voice Forums,” whichbrought together African American vice presidents and directors who spoke of theirlife experiences involving racial injustice and racism and on opportunities to unite as acountry.

•

Our Military and Veteran TRG sponsored an interview with our board member, Lieutenant
General Gwendolyn Bingham, to speak on her experience in the military.

•

Our Women Empowerment Network TRG hosted a forum to have open conversations on
pathways to leadership, overcoming gender bias, and professional development.

IN 2020, WE CREATED THE FOLLOWING TRGs:• Black Heritage, Outreach,Mentorship, and Enrichment• Military and Veteran• LGBTQ+• Women Empowerment Network• Women in Tech

Owens & Minor 2020 Environmental, Social, and Governance Report | 19

CARING FOR OUR CUSTOMERSAND COMMUNITIESDeliver superior and easily accessible care forcustomers and the communities we support.
We are dedicated to supporting the care continuum by providing
high-quality healthcare solutions that meet customer andregulatory requirements and empower our customers to continue
the critical work of caring for patients.
We recognize our responsibility to improve access and affordabilityof our healthcare products and services for our customers and are
constantly evaluating new programs and initiatives to help us do so.
We are also committed to building stronger communities where
we operate. Our Teammates participate enthusiastically as active
members of our larger, global communities, through fundraisingand volunteering with community groups. In May 2021, we launched
the Owens & Minor Foundation to further our commitment towards
impactful contributions.

20 | Owens & Minor 2020 Environmental, Social, and Governance Report

I M PACT F U L C O N T R I B U T I O N S TO S H A P E O U R C O M M U N I T I E SENVIRONMENT:

Environmentally aware contributions

HEALTHCARE:

Healthcare-focused contributions

DIVERSITY:

Diversity-driven contributions

INITIAL FUNDING OF $10 MILLION
Owens & Minor 2020 Environmental, Social, and Governance Report | 21

INNOVATIVE HEALTHCARE SOLUTIONSAt Owens & Minor, we’re focused on developing and enhancing products and services thatprovide our customers the support and tools they need to advance healthcare. We have a richhistory of market leadership in product innovation.
We design, manufacture, and source innovative products that help reduce risks and support
superior patient care in a variety of care settings. In addition, our rigorous safety and quality
standards ensure products are dependable and effective. For instance, the introduction of
disposable sterilization wraps or initiating the replacement of latex exam gloves with nitrile
gloves to protect healthcare providers, showcases our legacy of leading change to evolve our
product offerings to meet our customers’ needs.
We understand that our healthcare customers face challenges unique to their organization.
That’s why we develop specialized solutions that correspond to the specific needs of ourcustomers.

ACCESS AND AFFORDABILITY OF HEALTHCARE PRODUCTS ANDSERVICES
Through our Patient Direct business, Byram Healthcare, Owens & Minor improves healthoutcomes, access, and affordability of care for people living with chronic conditions byproviding timely, reliable delivery of a broad offering of medical supplies directly to a patient’s
home. We also contract directly with home health agencies to provide needed supplies forpatients who require home health services.
We work to ensure patients have the best care experience while simplifying the complexitiesof healthcare reimbursement and insurance. We offer in-network coverage with Medicare,
Medicaid, and most private insurance to help patients save on out-of-pocket expenses for
medical supplies. In addition, patients facing financial hardships are eligible to participate inpayment plans to assist with the payment of co-pays, deductibles, non-covered services, andother out-of-pocket expenses.
Owens & Minor is committed to doing our part to close the gaps in healthcare disparities that
continue to impact the communities we serve. We are in the process of evaluating additional
programs and initiatives to increase the access and affordability of our healthcare products.

PRODUCT QUALITY AND SAFETY
Providing high quality and safe products to our customers is our top priority. We design,
manufacture, and source products that support superior patient care.
Our Quality Assurance and Regulatory Affairs (QARA) team oversees the product life cyclefrom design through distribution and ensures that suppliers and branded manufacturers
have established quality systems and meet regulatory requirements. QARA Teammatesremain current on quality and regulatory trends through active involvement with industry
trade groups and standards organizations such as the Association for the Advancement ofMedical Instrumentation® (AAMI), MedTech Europe, Health Industry Distributors Association(HIDA), and GS1.
Across our global operations, we undertook product quality and safety process improvement
initiatives, updating our corporate quality policy, standardizing our Corrective Action
Preventive Action process, and rolling out an innovative human factors-based root cause
investigation methodology.
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 and inspection results.
22 | Owens & Minor 2020 Environmental, Social, and Governance Report

Furthermore, we implemented strategic initiatives at the business unit level—for example:•

Across Global Solutions, we monitored and tracked data more efficiently to help manage
recalls, resulting in a 60% decrease in the cycle time of recall events; implemented
enhanced statistical methods to help identify trends and pain points with existing clients;
and upgraded equipment to enhance monitoring tools across our distribution network.

•

Across Global Products, we responded to and complied with a complex and rapidlychanging global regulatory environment; reduced customer complaints by focusing on
product reliability and customer satisfaction; and modified processes to improve efficiency,
effectiveness, and compliance.

Owens & Minor has meaningfully supported the fight against COVID-19, and our QARA
team successfully implemented expedited validation and quality updates in response to thecontinuously evolving regulatory landscape of PPE. This included emergency use authorizationof PPE, limitations on the volume of product that could be imported and exported, and asignificant PPE production ramp-up.

STRENGTHENING COMMUNITIESWe are active members in the communities where we
operate. By contributing financially and through volunteer
work, we help build stronger communities and create abetter environment. Overseen by our Charitable Contribution
Committee and our Chief Human Resources Officer we
accomplish our objectives in a few ways, including directcontributions and corporate sponsorships to charitableorganizations, specific programs designed to enrich ourcommunities, and community volunteer efforts. During 2020,
Owens & Minor donated nearly $1.25 million to organizationsin the United States and Honduras. Our primary focus areas
are:•Health and wellness: We strive to improve the quality oflife for our Teammates and the people in our communities
by supporting organizations such as the Special Olympics,
American Heart Association and American Cancer Society.

•

Education: Access to quality education ensures the growthof the future workforce and provides better opportunities
for our community. We strive to strengthen programs by
supporting organizations such as Community in Schools
and the Boys & Girls Club.

•

Civic and community: We believe vibrant communities
support strong companies, which is why we invest in ourcommunities by providing opportunities for Teammates
to volunteer where they live and work, supportingorganizations such as FeedMore and Red Cross ofAmerica.

Our Teammates are active members of our larger, global
communities through fundraising and volunteering with
community groups. As the world shifted to working fromhome in response to COVID 19 in 2020, our Teammates quickly
innovated to continue virtually participating in community
events and volunteer activities.

LUNCH BUDDIES PROGRAMWORK STUDY PROGRAM

For over 14 years, Owens & Minor’s Lunch Buddies
Program matches Teammates with a third-gradestudent at Fairfield Court Elementary School inRichmond, Virginia for a partnership that lasts
until the student completes fifth grade. Teammatesprovide mentorship and guidance to the students
while eating lunch together.

Owens & Minor hosts a work-study program with
Cristo Rey Richmond High School in Richmond,
Virginia that onboards a group of ninth graders
as “junior Teammates,” providing students theopportunity to gain professional experience and build
connections across our organization.

TECH FOR TROOPS

In 2020, we provided charitable
contributions to multiple organizations,
locally and nationally:

We proudly partner with Tech for Troops, a local
nonprofit bridging the digital divide and helping
veterans overcome barriers when competing in themodern workforce, by donating monitors to support
the organization's training program.

• Special Olympics in Virginia and Georgia• Red Cross of America• Rebuilding Together• American Heart Association• Massey Cancer Center• Boys & Girls Club of Richmond and Atlanta• The Doorways• Mentor Virginia• Making Strides Against Breast Cancer
Owens & Minor 2020 Environmental, Social, and Governance Report | 23

OPERATING RESPONSIBLY

Demonstrate Sound Governance, Accountability,
and Responsible Sourcing.
Doing business the right way is a conscious decision and one thatOwens & Minor has successfully accomplished 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. It alsomeans conducting ourselves with integrity; complying with theappropriate laws and regulations; and protecting the security,
privacy, and confidentiality of our data.
Lastly, we strive to partner with organizations that share our Values
in business ethics, integrity and social compliance. We are proud
to collaborate with a diverse network of trusted vendors to drive
progress, productivity, and performance across the healthcare
supply chain.

24 | Owens & Minor 2020 Environmental, Social, and Governance ReportGOV E R N A N C E A N D ACCO U N TA B I L I T Y
CORPORATE GOVERNANCE
Our Board of Directors sets high standards for our Teammates, officers, and directors. The
Board serves as a prudent fiduciary for our shareholders and oversees the management of theCompany’s business.
We have an independent Chair and all directors are independent with the exception of ourChief Executive Officer (CEO). Our goal is to have a board whose membership reflects a mixof diverse skill sets, technical expertise, education and professional backgrounds, industry
experiences, and public services as well as perspectives of different genders and ethnicities.
The Board established the following three committees to assist it with its responsibilities:
Audit, Compensation & Benefits, and Governance & Nominating.
For additional information on our governance structure, please refer to our 2021 Proxy
Statement and the Corporate Governance section of our website.

ESG GOVERNANCE
In 2020, our executive leadership, together with a subcommittee of members of the Board
began defining our ESG governance, strategy, and accountability structure. It is expected that
the Governance & Nominating Committee will oversee the development and implementation ofOwens & Minor’s ESG strategy, and the Committee’s charter was amended in 2021 to include
information regarding our ESG strategy and governance.
Owens & Minor leadership designated a cross-functional ESG team to develop its ESG strategy.
The ESG team, composed of representatives from Investor Relations, Human Resources,
Supply Chain, Community Engagement, Legal, Ethics and Compliance, Environment, Healthand Safety and additional functions, contributed to the development of our material ESG topics
and ESG framework. The ESG team will be responsible for implementing the Owens & Minor
ESG strategy and will report progress to the Board annually.
Owens & Minor 2020 Environmental, Social, and Governance Report | 25

ETHICS AND COMPLIANCE
We maintain a Code of Honor (Code) that sets forth thestandards and guidelines for ethical behavior expected ofeveryone who works for and with our company. The Code iscore to our Mission and Values. We require that every Owens& Minor Teammate and member of our Board of Directors
annually pledge to abide by the standards set forth by theCode. The Code addresses a variety of topics, including
our expectations related to diversity and equal opportunity
employment, data privacy, fair compensation, and anti-bribery.
We developed a comprehensive Ethics and Complianceprogram to ensure we do the right thing to protect employees,
customers, patients, shareholders, and the communities
where we operate. Additional information on the Ethics
and Compliance program can be found on our website athttps://compliance.owens-minor.com/EthicsAndCompliance.
html#en-US. The Ethics and Compliance Program ismanaged by the Vice President of Global Ethics, Compliance,
and Privacy and overseen by the General Counsel andChief Compliance Officer and consists of the following key
components:•

Policy management: Written policies and procedures areroutinely reviewed and updated to align with the latest
laws, regulations, and industry best practices. In 2020,
we updated our Foreign Corrupt Practices Act Policy
and developed a Vendor Code of Conduct to further ourcommitment to collaborate with ethical companies thatshare our strong belief in business ethics, integrity, andsocial compliance.

•

Training and communication: Our training supports
the regulatory and legal requirements that apply to ourglobal healthcare company. We provide training in myriad
formats and languages to ensure our Teammates have thenecessary knowledge to help us compete and succeed as a
medical device manufacturer, a healthcare distributor, anda healthcare services organization.

•

Internal monitoring, auditing and reporting: We workwith our Corporate Internal Audit, Procurement, andVendor Relations teams to review various elements ofour business such as expense reports, hotline reporting,Open Payments Program (Sunshine Act), anti-bribery
anti-corruption, social compliance, compliance training
completions, and others.

•

Reporting compliance concerns: We provide a hotline
reporting tool for anyone to use to report an issue, ask aquestion, or express an idea. We continually review reports
to determine trends, and the Board is provided a summaryof hotline reports quarterly. Additional information onreporting concerns is available on our website at thefollowing link: https://compliance.owens-minor.com/
AskQuestionsAndReportConcerns.html#en-US.

Owens & Minor is Recognized as Having a State-of-the-Art Compliance Training Course
We received the Brandon Hall Group Gold Award for “Best Advance in Compliance Training” for our
Code of Honor course. Brandon Hall Group Awards recognize organizations that have successfully
deployed human capital management programs.

2020 ACHIEVEMENTS• Developed an external-facing Distributor Toolkit to help guide
distributors, suppliers, and partners toward compliant behavior
with every employee, supplier, healthcare professional, andgovernment official they engage with. The Toolkit contains
useful compliance tools, training and resources.
26 | Owens & Minor 2020 Environmental, Social, and Governance Report• Created an Ethics and Compliance website, which includes
an overview of our Ethics and Compliance Program, relevant
policies, access to our Distributor Toolkit, and reference to our
Ethics Hotline.

DATA PRIVACY AND SECURITY
At Owens & Minor, our Teammates, customers and business partners trust us to safeguard their data. We are committed to protecting and securing personal data through Teammate education,alignment to industry-recognized standards for security and privacy-related risk and compliance frameworks, and restrictions on access to data.

DATA PRIVACYDATA SECURITY

Our Teammates who oversee compliance of privacy policies, maintain comprehensive
data privacy policies to manage risk and align with the applicable regulations in thejurisdictions where we operate. In addition to a Global Privacy Policy, we provide
Teammates with policies aligned to local regulation including the United States Health
Insurance Portability and Accountability Act of 1966 (HIPAA) and the European Union’s
General Data Protection Regulation (GDPR) legislation.

Our Vice President of Information Technology Security is responsible for overseeing the Company’s
Cyber Security program and provides annual updates on our IT Security program to the Board of
Directors.

To promote Teammate awareness of data privacy issues, we provide relevant trainings
and informative content to Teammates who handle personal identifiable information(PII) and are impacted by HIPAA or GDPR legislation:••

GDPR European Union Privacy training: An annual training that is required for all
European Union Teammates, contractors and those outside of the European Union
who support or may access European Union PII.
HIPAA training: An annual training assigned to certain distribution centers thatship to patients, sales representatives and sales management, or IT systems
professionals who may be providing support to systems that contain PII orprotected health information.

As part of ongoing efforts to enhance our data security program, we are in the process of aligning someof our most sensitive programs to the industry-recognized Health Information Trust Alliance (HITRUST)
framework and documenting formal policies on how we handle sensitive data. This includes but is not
limited to:•

Enhancing protections and controls around removable media from workstations•

Increasing the use of Multi-Factor Authentication (MFA) for authentication to critical platforms•

Enhancing controls around overall access and identity management services and programs•

Ongoing efforts to strengthen the “Human Layer” of the Cybersecurity model by expanding andstrengthening our existing training and awareness programs

We conduct regular data security audits and follow established monitor and alert processes to assess
the effectiveness of our data security program.

We are conducting a global needs assessment regarding PII stored within our systemand processes in anticipation of legislation we expect to become enacted in the UnitedStates and to align with global laws similar to GDPR.

Owens & Minor 2020 Environmental, Social, and Governance Report | 27

RESPONSIBLE SUPPLY CHAIN
We believe that good corporate citizenship by our company and those with whom we dobusiness is essential to our long-term business success. We engage in business globally andwork with third-party suppliers across our global supply chain.
We maintain Supplier Social Compliance Standards (SSCS) to hold our third-party suppliers
accountable to our expectations. These standards communicate our Values and expectations
from our suppliers with respect to health and safety, environmental impact, prohibition of childor forced labor, working conditions, freedom of association and collective bargaining, antidiscrimination, integrity, and conflict minerals.
Our Social Compliance Leadership Committee oversees the implementation of our SSCS
internally and externally within our supply chain. This committee also oversees the auditing
and due diligence of suppliers; conducts trainings to educate teams across manufacturing,
supply chain, and procurement; and raises awareness of trends and issues related to global
social compliance.

# of surveyed Tier 1 suppliers regarding theircompliance to “O&M Supplier Standards” inDecember 2020
% of new/renewed Tier 1 contracts as of
September 2020 which have a reference to
O&M Social Compliance standards in theircontract

100 out of 124
suppliers100%

We achieved Level II Compliance with the UK’s Social Compliance
Certification Program – Labor Standards Assurance System.
The Labor Standards Assurance System was developed in collaboration
between the UK National Health Service and the UK Department of
Health to ensure the products, good and services coming from anorganization’s suppliers are produced using fair labor practices.

28 | Owens & Minor 2020 Environmental, Social, and Governance Report

To increase Teammate awareness of social compliance issues, we conduct social compliancetraining for key leaders in our manufacturing, supply chain, procurement, and executive
leadership. Our Code of Honor training includes information on human rights and how
Teammates can address concerns that arise. In 2020, 100% of Teammates completed the Codeof Honor training.
Furthermore, we hire third-party organizations to audit high-risk suppliers and occasionallyhave access to those audits. We ensure they are aware of our social compliance objectives andmaintain compliance in their factories and supply chain. We also incorporate social compliancecriteria into the audits of our distributors to ensure we partner with organizations that share
our Values from a business and ethical perspective. 100% of O&M’s manufacturing facilities
are audited on an annual basis with a focus on quality systems. A risk-based approach is used
to audit critical suppliers annually with a focus on anti-bribery, anti-corruption and quality
systems.
We have also established a Vendor Code of Conduct, which outlines basic requirements forvendors, distributors, agents, suppliers, representatives, and other business partners andtheir employees, directors, officers, agents, representatives, and subcontractors (collectively
referred to as “Vendors”).
A resilient supply chain is essential for us to quickly deliver critical products to the front
lines, which was greatly required during the COVID-19 pandemic. We routinely audit suppliers
based on risk and impact on the supply chain and product safety. We use well-defined quality
requirements to give us predictable and repeatable confidence in the quality of product flowing
through the supply chain. We work with suppliers to share demand forecasts and immediately
address material shortages, lead-time concerns or compliance concerns.

SUPPLIER DIVERSITY
We are committed to advancing our supplier diversity by working with qualified small-,woman-, minority-, LGBTQ-, disabled-, and veteran-owned businesses to advance a superior
healthcare supply chain and support the economic development of small and underrepresented businesses in the communities that we service. We believe a thriving communityof diverse suppliers generates innovation while contributing to the economic development of
the communities in which we live and work.
To help us achieve a strong Supplier Diversity program, we created a working group composedof cross-functional team members to drive and implement the Supplier Diversity strategy andcorresponding day-to-day activities. An Operational Leadership Team coordinates and oversees
the program’s progression and reports to our Executive Steering Committee, which provides
guidance and feedback on program goals and strategy.

Our Supplier Diversity Mission
Owens & Minor’s supplier diversity Mission isto proactively identify, build relationships with,and purchase goods and services from thirdparty certified enterprises owned by minorities,
women, veterans, members of the LGBTQ
community, and disabled persons that can help
Owens & Minor achieve its corporate objectives.

Our supplier diversity mission, objectives and commitments
are outlined on our Supplier Diversity Policy.
We are in process of baselining our current enterprise
supplier diversity performance, which will help us set
quantitative targets to track the progress and growth in our
supplier diversity program over the next two years.

OUR PLAN FOR INCREASING THE DIVERSITY OF OUR SUPPLIER BASE INCLUDES:
1. Selecting diverse suppliers through category analysis: We review product spend and identify specific productcategories to meet supplier diversity goals.
2. Ensuring growth and job creation for selected diverse suppliers: We set growth targets for each diverse supplier weselect, review job creation plans based on the growth targets, and monitor plans on an ongoing basis.
3. Mentorship of diverse suppliers: Diverse suppliers that have been in business for over five years are paired with amature diverse supplier to set individualized mentorship goals. Owens & Minor oversees the goals and mentorship
relationship.
Owens & Minor 2020 Environmental, Social, and Governance Report | 29

ENSURING ENVIRONMENTAL
STEWARDSHIP

Minimize the Impact of our Operations on theEnvironment.
As a healthcare company, our ultimate focus is on improving thehealth of our communities. The environment is an important driverof health, and thus, we seek to limit the environmental impacts of
our operations and our value chain.
We limit the environmental impacts of our greatest areas of
impact, our manufacturing facilities and distribution centers, byimplementing initiatives that improve energy efficiency and reduce
waste generation and water consumption. We are also working on
improving our management of environmental impacts from ourvalue chain through initiatives such as assessing our distribution
centers for improvement opportunities and enhancing the fuelefficiency of our vehicle fleet.
30 | Owens & Minor 2020 Environmental, Social, and Governance ReportENERGY EFFICIENCY AND CLIMATE RISK1
Globally, our manufacturing facilities, distribution centers, and offices
rely on energy to provide our offerings to the healthcare system.
However, this consumption, alongside global energy needs, comes ata cost; our energy needs contribute to climate change, creating risks
globally, including toward our own business. Thus, we consider ways tomitigate impact of our energy usage and business performance fromglobal emissions by making our operations more energy efficient. We
recognize that there are additional opportunities to manage climate
risks and opportunities in our business, and we plan to continue
working on this in the future.

1. We are working on refining the data collection and calculations of ourenergy data and GHG emissions for our overall fleet, manufacturing andoffices activities and hope to be able to disclose this information for the2021 calendar year. For 2020, we only disclose specific initiatives and data
related to a few sites.

Owens & Minor 2020 Environmental, Social, and Governance Report | 31

ENERGY INITIATIVESLEADING BY EXAMPLE

LIGHTING•

O&M’s Real Estate team is installing and retrofitting LED lighting in our facilities. In
2020, four locations had LED lights installed, bringing our total to 43 Owens & Minor
locations, including our corporate offices.

•

Our warehouses have been fitted with lighting sensors, conserving our energy usage by
only turning on during activity.

One of our large manufacturing sites, based in Songkhla, Thailand, highlights ourcommitment to reducing our energy usage. Over the past 10 years, the site has
reduced its energy and steam usage by over 25% through on-site programs andinitiatives, earning the factory a level 5 Green Industry Award, the highest possible
environmental award given by the Thailand Ministry of Industries.

ENERGY MONITORING: The majority of Owens & Minor manufacturing facilities leverageIntelex software to collect and monitor their energy consumption.
EQUIPMENT:•Our warehouses leverage energy efficient appliances, such as ENERGY STAR® certified
restroom hand dryers, refrigerators, and more to conserve energy.

•

Our systems have been equipped with electronic monitoring tools that provide our realestate managers with early warning of heating, ventilation, and air-conditioning (HVAC)
failure, allowing us to proactively manage our system and create operational savings.

TARGET SETTING: Two of our international locations have set 2021 energy efficiency
targets, including our Thailand location of 16.91 kWhs per standard unit and our Diagem
location of a reduction of 5% in energy usage vs 2020.
A responsible and sustainable operation also entails considering how environmental
impacts, especially those related to climate change, may have an impact on our business.
Climate change is linked to an increase in physical risks, such as extreme weather eventsand flooding, and transition risks, such as carbon pricing and reputational scrutiny. Our
business has begun developing measures to control for these risks, principally in thedevelopment of Environmental Management Systems (EMS). These systems develop
a framework for considering environmental impacts and risks holistically, with every
stakeholder group—including end users, customers, external providers, and communities—
explicitly defined and incorporated. Environmental risks, many of them related to climatechange, are identified in the framework, and risk responses are developed. To date, twoof our sites have EMS systems, both of which are seeking alignment to the ISO 14001
certification standard, an industry-leading certification standard.

32 | Owens & Minor 2020 Environmental, Social, and Governance Report

The site has consistently set targets for energy reduction, and in 2021, our sitemanagers are targeting 16.91 kilowatt hours (kWhs) per standard unit (SU)produced at the site. Some of the energy efficiency initiatives in the past 10 years
include:•Upgraded to more energy efficient compressed air strippers•

Exchanged lighting for more efficient fluorescent and LED options•

Installed inverters on blowers and ID fans across several manufacturing lines,
reducing energy usage

In addition to energy efficiency initiatives, the site has also sought to increase
its use of sustainable fuel sources for its energy and steam consumption. 11%of the electricity used at the site comes from renewable sources, especiallyhydroelectric sources, while 100% of the steam consumed is from renewablesolid fuels, including wood and rubber. Collectively, 91% of the total energy usedat the facility is renewable.

FLEET EFFICIENCYIn addition to the energy and carbon impacts from our facilities, we utilize a fleet of vehicles aspart of our healthcare supply chain offerings. The vehicles included in our footprint are owned
and operated by third-party carriers, and our Transportation team directs their movements
to help deliver our products and services to our customers. In 2020, three targets were set
associated with Owens & Minor vehicles in this fleet, including:
TARGET
Complete three route optimizations
Reduce Stop Idle rate* to 7% or less
Increase fuel efficiency to 8 Miles Per Gallon(MPG)

PERFORMANCE
Complete- In 2020, we completed 8 marketroute optimizations
Complete – In 2020, we reduced the Stop Idle
rate to <7%Complete – In 2020, fleet vehicles averaged
over 8 MPG

PARTNERING WITH PENSKE
Historically, Owens & Minor owned and operated the fleet of vehicles usedin our distribution operations and won the SmartWay excellence award
in 2018 for our environmental and economic performance. In 2018, wetransitioned our fleet into the management of Penske, who have sincemaintained the high standards set under our legacy program by winning
the same SmartWay excellence award in 2019.
Alongside their support in our own sustainability objectives, Penske
maintains their own sustainability program that incorporates
driver training, vehicle efficiency programs, and data tracking andcommunication through an online dashboard and monthly, quarterly, andannual summary reports.

*Stop Idle rate is defined as the percent of time each truck’s ignition is turned on and it is not moving.
Idle time starts to clock after five minutes of no movement.

We help achieve these targets by engaging with our vehicle carriers on best practices
and incorporating fuel efficiency factors into our procurement practices. In particular, we
encourage our vehicle carriers to participate in the EPA’s SmartWay program. The program,launched in 2004, provides a system for tracking and sharing fuel and environmental
information across carriers, developing more energy efficient, environmentally friendly
shipping methods, and reducing business and environmental risk associated with freighttransportation. We leverage over 140 carriers to help support our business and we encourage
all our carriers to join the program in recognition of the potential impact our company can havein this area.
In addition to this program, our Transportation team works with our carriers to:•

Increase shipment density on our fleet to leverage existing routes/trucks and reducecarbon output.

•

Increase efficiency of existing fleet by replacing older tractors and straight trucks withmore efficient (MPG) equipment. In 2020, we purchased over 200 new tractors and straighttrucks, replacing 2012–2014 models.

•

Reduce fuel consumption by reducing idle time at stops and optimizing routes, which drives
better fuel efficiency.

•

Monitor/track/post MPG to encourage fuel economy, driver engine idle time.

As we continue our work, we are hoping to expand our efforts into electric vehicles
as automakers continue to scale and economize these options to further reduce theemissions footprint and cost of our fleet.
Owens & Minor 2020 Environmental, Social, and Governance Report | 33

WATER AND WASTE MANAGEMENT
Alongside carbon emissions, our operations also create environmental
impacts through our water usage and waste generation activities.
PRODUCT MANUFACTURING
We consume water daily in the manufacturing of our products. Given
the intensity of our water needs, we seek to limit our consumption bytracking our usage across all our manufacturing sites and developing
methods that can reduce our needs. At our Lexington, North Carolina
facility, we use water in our manufacturing process. Water is usedprimarily for cooling towers, chemical treatment dilutions, and in
steam boilers for material-drying. All outflow is monitored closely,with reporting to U.S. EPA (Environmental Protection Agency). Our
manufacturing facility in Thailand has developed a robust water
efficiency program that tracks the site’s usage, sets targets on
consumption, and develops programs and initiatives that limit the water
intensity at the site. Since 2010, the site has implemented numerous
capital improvements resulting in a nearly 8% reduction in consumption
per standard unit, including:•Wastewater recycling in cooling processes•

Improved condensation capture from boiler/steam usage•

Enhanced metering controls•

Water-saving valves installed on site hoses

In 2021, the site has set a target for reducing water usage to 2 liters perstandard unit.
Similarly, our manufacturing facilities maintain a continuous focus on
the waste generated alongside the products created at the sites. We haveachieved 97% landfill free operations across all of our manufacturing
sites, principally by developing circular processes that utilize waste
generated by the facility to fuel our on-site boilers utilized for steam
generation. Furthermore, we set regional targets for waste reduction,
including:•

Ireland: Reduce waste generated 5% on an ongoing annual basis•

Thailand: Reduce solid waste generation to 0.5 tons/million pieces•

All sites: Achieve greater than 98% landfill free operations

34 | Owens & Minor 2020 Environmental, Social, and Governance ReportDISTRIBUTION
In addition to the impacts in our manufacturing facilities, we maintain programs and initiatives designed to limit
the waste generated in our distribution operations. Our distribution centers maintain robust recycling programsfor the wood pallets, plastic shrink wrap, plastic totes, and cardboard discarded at the facility. Furthermore,
we partner with New Market Waste Solutions, a leading waste management consultant, to analyze the waste
generated at our distribution facilities and develop solutions that further limit the tonnage we generate. In 2020,
approximately 60% of our material generation was recycled, thereby reducing our waste disposal and protecting
the environment.
2020 Distribution waste stream volume
Waste Type

Tonnage

Hazardous Waste
Extra Pickup
Hazardous Materials1
Hazardous Waste1
HazMat Pickup

9
9
14
1

Production Destruction

4

Special Waste

2
Total

38

Waste Type

Tonnage

Recyclable material
Cardboard
Single Stream
Waste to Energy
Wood
Total

3,722
80
201
1
4,005

Total

58
2,659
2,716

Waste Material
Construction and Demolition Waste
Other Waste

1 Hazardous materials are defined by “P-“ and “U-“ listed wastes, as defined by the U.S. EPA and the Resource Conservation
and Recovery Act.

Owens & Minor 2020 Environmental, Social, and Governance Report | 35

RESPONDING TO THE COVID-19
PANDEMIC

36 | Owens & Minor 2020 Environmental, Social, and Governance Report

The COVID-19 pandemic caused widespread disruption around the world. When the pandemic struck, our company quickly responded by protecting our Teammates, executing for our customers
and supporting the communities where we operate.

PROTECTING OUR TEAMMATES

DELIVERING FOR OUR CUSTOMERS

Our first and foremost priority is always Teammate safety. We established a COVID-19 Steering Committee,
which is responsible for establishing and overseeing implementation of COVID-19 protocols across theCompany, including usage of PPE, social distancing, limiting the number of visitors, temperate checks,
testing, and most recently, vaccination availability. The Committee members meet on a daily basis withOperations and Distribution leaders to track cases and provide resources necessary for our Teammates tocontinue producing and delivering life-saving medical products to healthcare systems globally.

At the onset of the pandemic, Owens & Minor acted swiftly to increase supply
and ensure our customers and frontline healthcare workers received critical
PPE and other medical supplies necessary to combat COVID-19 and focus on
patient care.

Our Teammates are critical to our success and at the heart of our Mission. Our top priorities in 2020 included
keeping our Teammates employed and safe and a focus on their well-being. For our Teammates in the UnitedStates, we took the following actions to demonstrate our appreciation of their work and the value we place intheir commitment:•

Ensured safe working conditions in our distribution centers and manufacturing facilities•

Restricted visitation of all non-essential workers to our sites starting in January 2020 to best protect ourcritical distribution centers from COVID-19 outbreaks•

Increased routine cleaning/sanitizing, as well as enhanced industrial cleaning and disinfecting•

Enhanced communications and training for our Teammates on COVID-19 safety protocols•

Enhanced Teammate benefits, including covering all costs for COVID-19 testing, providing freetelemedicine and relaxing our attendance policies•

Focused on job security by not engaging in mass reductions-in-force or furloughs•

Held healthcare premiums flat for our Teammates for 2021•

Made an additional 401(k) contribution to all eligible Teammates equal to 2% of the Teammate’s salary (inaddition to our standard company-provided 4.0% match)•

Paid mid-year special bonuses to all hourly Teammates in consideration of their extraordinary efforts•

Allowed Teammates to carry-over or cash out some of their paid-time-off balances, rather than lose thosebalances at year’s end

In 2020, we delivered over 12 billion units of PPE to US healthcare workers
in the fight against COVID-19, of which approximately 5 billion units were
produced with materials manufactured in our American factories or Owens &Minor-owned facilities.
We closely coordinated with the federal and state governments tostrengthen the nation’s response to the pandemic through expanded PPE
manufacturing capacity, distribution of PPE to frontline healthcare workers
and replenishment of the Strategic National Stockpile. Many of these efforts
continue to this day as we continue to strive towards a more resilient medical
and surgical supply chain to best prepare for future crises.

SUPPORTING OUR COMMUNITIESIn our local communities, O&M donated masks, gloves and other PPE to
emergency services such as the police, fire and first responders who were notable to access PPE. Additionally, in various countries, our donations of gowns
and masks to local healthcare organizations aided medical professionals tosafely treat COVID patients during critical outbreaks.

Owens & Minor 2020 Environmental, Social, and Governance Report | 37

GRI/SASB CONTENT INDEXThis year’s report was developed with consideration for the standards set out by the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB) Health Care
Distributors and Medical Equipment and Supplies industry guidance report. The tables below represent disclosures that we have started to incorporate within our reports but do not always fullyalign yet. Over time we do expect to continue to align the disclosures with the reporting framework expectations.

GRI CONTENT INDEX

38 | Owens & Minor 2020 Environmental, Social, and Governance ReportOwens & Minor 2020 Environmental, Social, and Governance Report | 39

40 | Owens & Minor 2020 Environmental, Social, and Governance Report

SASB CONTENT INDEX

Owens & Minor 2020 Environmental, Social, and Governance Report | 41

42 | Owens & Minor 2020 Environmental, Social, and Governance ReportOwens & Minor extends heartfelt thanks to every healthcare worker on the frontlines of the fight against COVID-19.
As the industry continues to navigate ongoing pandemic response, we remain extraordinarily grateful for theincredible work of the healthcare community as they consistently go above and beyond for their patients. We’re proud
to serve our Mission of Empowering Our Customers To Advance Healthcare™ by ensuring healthcare providers and first
responders have what they need, when they need it, so that they can continue to provide essential patient care.

Owens & Minor 2020 Environmental, Social, and Governance Report | 43

CORPORATE OFFICE
804.723.7000
www.owens-minor.com
STREET ADDRESS
9120 Lockwood Boulevard
Mechanicsville, VA 23116
MAILING ADDRESS
Post Office Box 27626
Richmond, VA 23261-7626