Fiscal

2023

Environmental, socialand governance report

Published February 2024

FY23 ESG Report

Overview|

Our people|

Customers and communities|

Operations and supply chain|

Governance, ethics and compliance|

Reporting indices

Table of contents
A message from our CEO | p3

01 02 03 04
About
Cardinal Health

Empowering
our people

Creating value for ourcustomers and communities

Operating sustainably
and responsibly

7

Company overview

15 Diversity, equity and29

Product quality and patient safety

8Awards and recognition

inclusion (DE&I)

31

9

Fiscal 2023 ESG highlights

19 Talent management

10 ESG topics and priorities

21 Wages and benefits

32

Supply chain resiliency

11 Our ESG goals and progress

23 Employee well-being

36

Community engagement

12 ESG governance at a glance

25 Workplace health and safety

05 06
Governance, ethics
and compliance

Reportingindices

43 Energy and climate

57 Corporate governance68

Responsible use of

47 Waste59 Data privacy and security

prescription medications

48 Efficient transportation

61 Business ethics and complianceand logistics
50 Product and service innovation
52 Responsible sourcing
54 Supplier diversity

66 About this report andcautionary statement

Global Reporting

Initiative (GRI) Index91

Sustainability AccountingStandards Board (SASB) Index

97

Task Force on Climate-Related
Financial Disclosures (TCFD) Index

102 Basis of reporting2

FY23 ESG Report

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A message from our CEO
Dear Stakeholders,
As a crucial link between the clinical and operational sides of healthcare, Cardinal Healthis committed to our Environmental, Social and Governance (ESG) initiatives as we work
to improve the lives of people every day. We approach ESG in a way that supports ourbusiness, positions us as a partner of choice for customers and suppliers, and ensurescompliance with evolving regulatory requirements.
In fiscal 2023, our internal ESG Governance Committee established seven enterprise ESG priorities. These seven priorities, which
are also the foundation of our three-year ESG strategic plan, are community engagement; diversity, equity and inclusion (DE&I);
employee well-being; energy and climate; product and service innovation; responsible sourcing; and talent management.
I’m pleased to share with you our Fiscal 2023 ESG Report, which illustrates how our ESG priorities are helping us to create long-term,
sustainable value for all our stakeholders. I want to share my gratitude to our Board of Directors for their commitment to, engagementwith and oversight of our ESG work. The Board supports us in the firm belief that ESG is not only the right thing to do, but also the rightthing to do for our business.

Building a world-class workplace culture
Our success begins with our employees, who work tirelessly
to support the needs of our customers and the patients ourcustomers serve.
We believe our workplace culture is one of our greatest strengths,
enabling us to attract, develop and retain top talent, best meet
our customers’ needs and those of their patients, and strengthen
the communities where we work and live. We continued ourefforts throughout fiscal 2023 to further our goal of creating aworkplace where everyone is encouraged to be their authentic
selves, and where all people are treated fairly and equitably.

Throughout the year, we increased efforts to reduce stigma about
mental health issues in the workplace, and to increase employees’
access to mental health services, including the addition of amental health specialist to our Benefits team and offering suicide
prevention training. We began bringing together private andpublic sector leaders to discuss possible solutions to the growing
prevalence of mental health issues in our workplaces and ourcommunities. For example, the Ohio Business Roundtable (OBRT)and I convened a discussion on mental health with Ohio CEOs andOhio Governor Mike DeWine.

Jason Hollar

Chief Executive Officer|

Governance, ethics and compliance|

Reporting indices3

FY23 ESG Report

We approach ESG in a waythat supports our business,positions us as a partnerof choice for customers
and suppliers, and ensurescompliance with evolving
regulatory requirements.

Overview|

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Reducing our environmental impact

Increasing access to care

In the fall of 2021, we announced our intent to reduce our
Scope 1 and 2 greenhouse gas (GHG) emissions by 50%
by fiscal 2030 (from a fiscal 2019 base year). We continue
to make progress toward this goal, and have reduced our
Scope 1 and 2 emissions by 13%.

In the pages that follow, we share some of the ways
we are helping to increase equitable access to quality
healthcare among our workforce, through our business,and through the work that the Cardinal HealthFoundation does in our communities.

In addition, we have baselined our Scope 3 GHG emissions
and aligned on a near-term science-based target (SBT) that
includes Scope 3 emissions. We have submitted this SBT to the
Science Based Targets initiative (SBTi) for validation, and expect
to provide more details in the coming months. Meanwhile, we
continue to invest in energy efficiency opportunities across ourdistribution and manufacturing sites and are looking to expand
our use of renewable energy across the enterprise.

I have signed on to the Zero Health Gaps Pledge,
an initiative of the World Economic Forum’s Global Health
Equity Network. The pledge reflects a commitment from
CEOs across industries and regions to embed healthequity in their respective organization’s core strategies,
operations and investments.

Finally, our U.S. hospital customers are increasingly embracing
the reprocessing of medical devices, both to reduce theircosts and lessen their environmental impact. I am particularly
proud of the work our Sustainable Technologies™ business isdoing to meet this important and growing need. Sustainable
Technologies collects certain single-use devices (SUDs) andreprocesses them for reuse. In fiscal 2023, the business nearly
doubled the size of its Florida facility, enabling reprocessing at
a larger volume and providing dedicated lab space for testing
new reprocessing methodologies.

In closing

Ensuring a responsible supply chain
We are committed to ensuring that our supply chain reflects
both our values and our ESG priorities, which is why wecontinued to improve our supplier due diligence programand supply chain mapping in fiscal 2023. Throughout theyear, our Responsible Sourcing team focused on simplifying,
improving and embedding a structure for our supplier due
diligence processes, adding new tools and capabilities.
These new capabilities, focused on increasing transparency
and business integrity throughout the supply chain, are driving
positive and broader engagement with our supplier partners inboth the Medical and Pharmaceutical Segments.

Thank you – to all of our stakeholders,
including our 48,000 employees
around the globe – for your supportof, partnership with, and contributions
and commitment to our ESG work.
We understand that there is more to
be done, but we are working towarda fair, equitable and livable planet into
the future and we are proud to share
this report with you.
Sincerely,

Jason Hollar

Chief Executive Officer

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FY23 ESG Report

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About
Cardinal HealthIn this section:

7 Company overview

10 ESG topics and priorities

8 Awards and recognition

11 Our ESG goals and progress

9 Fiscal 2023 ESG highlights

12 ESG governance at a glance|

Governance, ethics and compliance|

Reporting indices5

FY23 ESG Report

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Governance, ethics and compliance

Cardinal Health is a global
healthcare services andproducts company providing
customized solutions for
hospitals, healthcare systems,
pharmacies, ambulatory
surgery centers, clinicallaboratories, physician offices
and patients in the home.
We are a distributor of pharmaceuticals, a global
manufacturer and distributor of medical andlaboratory products, and a provider of performanceand data solutions for healthcare facilities. With morethan 50 years in business, we are building on our
expertise in distribution, products and solutions toinnovate and create customer-centric solutions that
address healthcare’s most complicated challenges.

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Reporting indices6

FY23 ESG Report

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Company overview
Pharmaceutical Segment

03|

Reporting indices1

Through our Medical Segment, we manufacture,source and distribute Cardinal Health™ Brand
and national brand products to global healthcare
providers across the care continuum.

Key capabilities:

02

Governance, ethics and compliance

Medical Segment

Our Pharmaceutical Segment comprises three key
areas: Pharmaceutical and specialty distribution,
sourcing and manufacturer services, and Nuclear& Precision Health Solutions (NPHS).

01|

Key capabilities:

01

Distribution
Delivering branded, generic and specialty pharmaceuticals
and over-the-counter healthcare and consumer products

02

Sourcing and manufacturer services
Providing end-to-end logistics and technology solutions
for manufacturers, pharmacies and healthcare providers

03

Nuclear & Precision Health Solutions
Manufacturing radiopharmaceuticals, operating nuclear
pharmacies and supporting radiopharmaceutical innovation

Integrated manufacturer
Manufacturing, sourcing and distributing Cardinal Health™ Brand and national
brand products to global healthcare providers across the care continuum

Direct to patient
Distributing products directly to the home and enabling customers to serve
patients in their homes with supply chain solutions through at-Home Solutions

Digital supply chain
Through Wavemark™, providing an automated technology platform forinventory management.
Through OptiFreight™ Logistics, supporting the shipping and logistic needs ofhealthcare providers by optimizing direct shipments through integrated technology

Pharmaceutical
Segment

cardinalhealth.com
1

190B

$

in revenue

MedicalSegment

facebook.com/cardinalhealthinc

15B$

in revenue

205B

Total fiscal$
2023 revenue

linkedin.com/company/cardinal-health@CardinalHealthE ffective January 1, 2024, the company began operating under an updated enterprise operating and segment reporting structure, which includes two reportable segments: the Pharmaceutical and Specialty Solutions segment and the Global Medical Products and Distribution segment.
Separate from these two new reportable segments, the company’s Nuclear and Precision Health Solutions, at-Home Solutions and OptiFreight® Logistics operating segments will be reported as Other.

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2023
FY23 ESG Report

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Reporting indicesAwardsand recognition
100 Best Corporate Citizens, 3BL Media est Places to Work for LGBTQ+
B
Equality, Human Rights Campaign

Business Group on Health Best Employers
Excellence in Health & Well-being
Excellence in Health Equity
Excellence in Mental HealthBloomberg Gender-Equality Index

Campus Forward Award

Brandon Hall Group Learningand Development Award, Gold

Chief Learning Officer Learning EliteBest Advance in the Flow of WorkBest Use of Blended Learning

For early career programs

Columbus Business First Corporate
Citizenship Award and Vanguard Award

Human Rights Campaign Foundation'sCorporate Equality Index
Perfect score of 100

LATINA Style 50 Companies

Ruth Bader Ginsburg Board
Diversity Award
Seramount Awards

100 Best Companies
Best Companies for Multicultural Women
Inclusion Index
Top Companies for Executive Women8

FY23 ESG Report

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Reporting indicesFiscal 2023 ESG highlights
January2023

February
2023

April
2023

May
2023

June
2023

We published an extensive ESG Report,aligned with the Global Reporting
Initiative (GRI), Sustainability AccountingStandards Board (SASB) and Task Forceon Climate-related Financial Disclosures(TCFD) frameworks.

We established a company-wide
decarbonization working groupthat brings together senior advisors,
managers and directors from business
units and functions across the enterpriseand the ESG team to identify strategic
ways to integrate climate considerations
into business decisions. The group has
been meeting monthly since its inception.

We hosted the company’s first seriesof Earth Day events, one of which
engaged employees in 13 of ourdistribution centers in an electronics
recycling event. Employees brought inmore than 300 pounds of e-waste fromtheir homes to be recycled.

We baselined our Scope 3 greenhousegas (GHG) emissions, and with our
executive leadership team and theBoard of Directors’ Governance andSustainability Committee, we aligned
on a new near-term science-basedtarget that includes Scope 3 emissions.

Our ESG Working Group,comprising vice president-level
leaders, completed benchmarking
and development of three-year
strategic plans for each of ourseven ESG priority topics.
(Please see these seven ESG
priority topics on the next page.)

We submitted this science-basedtarget (SBT) to the Science Based
Targets initiative (SBTi) for validation;
we expect to provide more details in
the coming months.

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ESG topics and priorities
In our fiscal 2022 ESG Report,
Cardinal Health introduced arefreshed list of ESG topics thatguide our ESG strategy development,
manage organizational risks, andare intended to create lasting value
for our stakeholders. These 17 ESG
topics are deemed to be our ‘material
ESG topics,’ as referred to in the
Global Reporting Initiative (GRI) andincluded in our GRI Index, basedon our impact on the environment,
society and stakeholders.
When reviewing these ESG topics with the internal ESG
Governance Committee, we elected to narrow the focus
of our strategy development and prioritize seven topics
to serve as the foundation for our three-year strategicplan. We selected these seven ESG priorities because
they allow us to differentiate ourselves in the market
while, we believe, enabling us to mitigate environmental
and social risks to the company. Our ESG Working Group,composed of vice-president-level subject matter experts,
with oversight from our ESG Governance Committee,
is responsible for developing a strategy for each of theseven priorities.

Our seven ESG
priority topics are:
01. Community
engagement
02. Diversity, equity,and inclusion (DE&I)
03. Employee well-being
04. Energy and climate
05. Product andservice innovation
06. Responsible
sourcing
07. Talent management

The remaining 10 ESG topics serve as the basis for the
ESG team’s approach to managing organizational ESG
risk in coordination with our traditional enterprise risk
management (ERM) processes. We have robust programs inplace to address and monitor risks for these 10 ESG topics.
We regularly assess these ESG topics and related metrics tomaintain visibility into Cardinal Health's performance and to
determine whether our policies and programs are effectively
managing risk. The remaining ESG topics included in our risk
management activities are:• Workplace healthand safety• Wages and benefits• Waste management• Efficient transportationand logistics• Responsible use ofprescription medications• Corporate governance• Product quality andpatient safety•B usiness ethics
and compliance• Data privacy and security• Supply chain resiliency
Though these 10 ESG topics are not directly included in our
ESG team's three-year strategic plan, we do report on them inthis report. On the pages that follow, we have organized the
17 ESG topics into four broad categories: empowering ourpeople, creating value for our customers and communities,
operating sustainably and responsibly, and governance,
ethics and compliance. Additionally, within our GRI Index,
we align our disclosures with all corresponding standards foreach of the 17 ESG topics.

United Nations Sustainable
Development Goals
The United Nations (UN)
Sustainable Development Goals(SDGs) continue to serve as
guideposts for our ESG priorities and initiatives.
Of the 17 SDGs resulting from the 2030 Agenda
for Sustainable Development, we have prioritized
the four goals below, as they are most alignedwith our ESG priorities and we believe they canenable Cardinal Health to generate positive
impact and create long-term value.

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Our ESG goals and progress
ESG priority

Aspirational goal

Scope

Fiscal 2023 progress against base year

Energy and climate

By fiscal 2030, reduce Scope 1 and 2 greenhouse gas (GHG) emissions by 50%,
from a fiscal 2019 base year

Global

13% reduction as of the end of fiscal 20232

Set a Science-Based Target approved by the Science Based Targets initiative (SBTi)

GlobalProposed Science-Based Target was submitted to the SBTi in July 2023.
We will communicate this goal once validation is completed.

Diversity, equity
and inclusion*

Between fiscal 2021 and fiscal 2030, see increased representation globally of women3
at the manager level and above, from 40% to 48%

40%

Global5%

Between fiscal 2021 and fiscal 2030, see increased representation in the U.S. of African
American and Black employees4 at the manager level and above, from 5% to 11%

U.S.

Between fiscal 2021 and fiscal 2030, see increased representation in the U.S. of Asian,
Latino, Indigenous and all other ethnically diverse groups4,5 at the manager level
and above, from 17% to 23%

U.S.

17%

41.5%

5.6%

48%

11%

19.8%

23%

*At Cardinal Health, we are focused on continuing to build and foster a workplace that values the unique perspectives and contributions of all our employees. Our people are our most important assets — and we believe that a diverse and inclusive workforce leads tobetter business results. Our talent strategy furthers our aspiration to be an employer of choice for all. Our DE&I program helps identify and eliminate barriers to equal opportunity and development, inspires outreach and recruitment efforts to reach a broader base ofqualified individuals, and allows all individuals to feel comfortable bringing their authentic selves to work. We believe these efforts will result in progress toward our aspirational goal of seeing enhanced diversity in management.
2In fiscal 2023, we restated our fiscal 2019 GHG emissions. These have been assured, as have fiscal 2023 emissions, as part of Cardinal Health's commitment to accurate data reporting that best represents our business. The restatement was donein part due to the addition of new activities such as emissions from biomass and refrigerants; as well as adding market-based emissions calculations for Scope 2. Additionally, some data was removed due to the divestiture of the Cordis business,and therefore properties and activities associated with that business have been removed from Cardinal Health's operational boundary. Knowing that renewable energy will be a critical piece to Cardinal Health's emissions reduction strategy,
we have transitioned to tracking progress towards our goals utilizing the market-based emissions method to be able to properly account for renewable energy within our boundary.

3
45This goal excludes Cardinal Health employees who identify as non-binary (U.S. only) or do not specify a gender within our voluntary survey.
This goal excludes Cardinal Health employees located within U.S. Territories, and employees who do not specify an ethnicity or respond to the voluntary survey.
We use the ethnic diversity categorization of the Equal Employment Opportunity Commission (EEOC). “All other ethnically diverse groups” include American
Indian or Alaska Native, Native Hawaiian or Other Pacific Islander, and two or more races.

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ESG governance at a glance
The management and oversight of ESG-related risks and opportunities are critical to engaging our entire organizationand successfully carrying out our strategy, improving our impact across ESG priorities, and achieving our climate andrepresentation goals. At Cardinal Health, ESG governance starts with our Board of Directors, setting a strong tone at thetop, and ends with our employees across the organization who champion ESG priorities in their day-to-day work.
Board of Directors

ESG Governance Committee

Decarbonization Working GroupESG team

The full Board discusses significant ESG risks andopportunities, but specific issues are overseen by the
Board’s relevant committees:

Comprising the senior-most leaders of Cardinal Health,including the CEO, his direct reports and other leaders acrossthe company, the internal ESG Governance Committee is
responsible for approving and tracking progress against
enterprise-wide ESG strategies, providing guidance onmanaging ESG risks, and helping to embed ESG-related
policies and consistent messaging throughout the company.

Formed in February 2023, Cardinal Health’s
Decarbonization Working Group leads operational
efforts to reduce our GHG emissions and mitigate
climate risk across the organization. Composed ofsenior advisors, managers, and directors, this working
group provides better line-of-sight for the ESG teamto understand where we can best make an impact toimplement energy efficiency and renewable energy
solutions to achieve our climate goals, work with
our suppliers, customers, and business partners to
reduce our value-chain impacts and maintain strong
governance over our climate data for reporting.

The ESG team at Cardinal Health is responsible
for supporting and advising on the enterprise
ESG strategy in collaboration with crossfunctional owners and partners. It is directly
accountable for the ESG data and reporting,environmental sustainability and ESG supply
chain strategies.

The Governance and Sustainability Committee
provides formal oversight of enterprise ESG activities,
policies, strategy, and reporting and disclosure practices(except to the extent such matters are overseen byanother Board committee). The Vice President of ESG
provides a report out to the committee each quarter
that includes updates on the regulatory environment,
progress against our ESG priorities, governance over ESG
risks and opportunities, and our strategy for the coming
months and years. The Governance and Sustainability
Committee plays an active role in our goal-setting andreporting activities, as well. For example, in fiscal 2023 thecommittee was presented with our proposed sciencebased target (SBT) for alignment prior to submission
for validation to the Science Based Targets initiative.
Additionally, the committee is updated on our ESG
reporting process.
Other Board committees have oversight of other specific
ESG-related areas such as human capital management,
diversity, equity and inclusion, and responsible sourcing.

Vice President of ESG and our ESG
Working GroupThe Vice President of ESG leads and coordinates ESG
matters and regularly engages with the Board’s Governanceand Sustainability Committee. The VP of ESG is responsible
for assessing and managing our ESG topics; collaboratingwith senior leaders to instill ESG-related priorities into ourbusiness operations; and developing ESG-related goals andmanaging our ESG data, measurement, and reporting.
The VP of ESG also chairs the ESG Working Group,comprising vice president-level subject matter experts for
Cardinal Health’s ESG priority topics. This group is responsible
for working together to set action plans for integrating
ESG considerations into business strategies, policies, andoperations and to identify gaps and opportunities for success.

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FY23 ESG Report

Overview |Our people|

Customers and communities

Empowering
our people
In this section:

15 D
 iversity, equity and inclusion

23 Employee well-being

19 Talent management

25 Workplace health and safety

21 Wages and benefits|

Operations and supply chain|

Governance, ethics and compliance|

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FY23 ESG Report

Overview |Our people|

Customers and communities|

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Governance, ethics and compliance

Our employees aroundthe globe are committed
to our mission of delivering
the products and solutions
that improve the lives ofpeople every day.
In turn, we support our employees with opportunities
for ongoing learning and professional development.
We provide a variety of benefits to help employees
and their families care for their physical, mental andfinancial well-being and we work hard to create aworkplace culture where every employee is invitedand encouraged to be their authentic selves.

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Overview |Our people|

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Diversity, equity and inclusion
We know there is strength in our differences.
This drives us to create a workplace where
every employee feels welcome, seen, heard
and safe to bring their authentic selves
to work. Creating this culture is a journey;
there is always work to be done, but weare making progress.
At Cardinal Health, we organize ourdiversity equity and inclusion (DE&I) work
under the pillars of engagement, equity
and representation.

Engagement
Since fiscal 2022, DE&I learning objectives have been included in
Cardinal Health's annual incentive plan. In fiscal 2023, all incentiveeligible employees were required to complete training on various
DE&I topics, like how to build and maintain inclusive teams, how
our company defines and operationalizes diversity and inclusion,
how to challenge assumptions, and why allyship matters.

6
7

Celebrating ESG and DE&I in an annual town hallIn fiscal 2023, CEO Jason Hollar hosted the company’s
fourth annual DE&I town hall for all employees. The
meeting introduced our fiscal 2022 ESG Report andhelped employees understand the importance of ourwork on DE&I.
Our ESG work helps us to ensure a fair, equitable andlivable planet into the future, and our DE&I work helps
create a workplace where all people, regardless of race,
ethnicity, sex, sexual orientation, age, ability or religion,
are treated fairly and equitably. During the town hall,Hollar emphasized that ESG and DE&I initiatives areboth the right things to do and good for business.
ESG helps us fulfill our corporate mission of improving
people's lives every day, allowing us to partner moreclosely with our customers and other stakeholders andbetter meet their expectations.

approximately 46% of the U.S. workforce, care about
diversity, equity and inclusion, societal impact andenvironmental sustainability – and want to work for
a company whose values align with their own7.
Brenton Wheaton, manager of Cardinal Health’s
People Analytics team, was in the audienceduring the meeting and shared his reflections:

Both ESG and DE&I help us to recruit and retain
top talent – because, more and more, ESG matterswhen people choose where they want to work.
For example, numerous reports show that Gen Z
and millennials6, who collectively make up

The Deloitte 2023 Gen Z and Millennial Survey: Waves of change: acknowledging progress, confronting setbacks. https://www.deloitte.com/global/en/issues/work/content/genzmillennialsurvey.html. Accessed November 28, 2023.
Britt Peterson. What Gen Z wants in the workplace. The Washington Post, June 16, 2023. https://www.washingtonpost.com/business/2023/06/16/gen-z-employment/#.

It’s clear that our CEO truly believes
that DE&I and ESG are important
both to individuals throughout thecompany and to our business: when
we do these things well, it’s best forour employees and for the business.
That is very heartening.
These things do impact ourculture: I can honestly saythat this is the first place
I’ve worked where I feelcompletely comfortablebeing my authentic self.

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Empowering all employees through diversity, equity and inclusion (DE&I) initiatives

Multiple employee organizations
within Cardinal Health help
incorporate DE&I into ourwork. These groups help us tocreate a workplace where all
employees are empowered
to bring their authentic selves
to work every day, using theirunique perspectives andexperiences to generate newideas and innovative solutions.

DE&I Steering Council
Mission: To champion internalconversations about DE&I. Members
are senior leaders from across thecompany who are charged withidentifying and discussing barriers to
DE&I, challenging the status quo andchampioning change.
Executive sponsors/advisors:
Jason Hollar, CEO
Ola Snow, CHRO

Black and African American
Racial Equity Cabinet
Mission: To create a safe space for seniorleaders at Cardinal Health to listen andlearn from Black and African American
leaders from across the company.
Executive sponsors/advisors:
Jason Hollar, CEO
Ola Snow, CHRO
Michelle Greene, CIO
Ben Brinker, President, Global Products
and Supply Chain

DE&I Ambassadors

GenerationNext

New Perspectives

Mission: To promote DE&I initiatives
within their facilities. Ambassadors meetmonthly with a DE&I team member todiscuss the company’s DE&I work, hearfrom various company leaders andbrainstorm ideas for advancing DE&I in
their locations. DE&I Ambassadors also
gain valuable leadership experiences as
they initiate and engage their colleagues
in DE&I activities.

Mission: To support the initiatives of
Cardinal Health’s DE&I Steering Council
and the Black and African American
Racial Equity Cabinet. Members arediverse, mid-level leaders; their workwithin GenerationNext also helps themdevelop important leadership skills.

Mission: To host conversations
about social issues that aren’t often
talked about in the workplace.
Employees are invited to gather
virtually to discuss a predeterminedsubject. Among the topics thisgrassroots organization discussed
in fiscal 2023 were mental healthissues, access to healthcare andsocial determinants of health.

Executive sponsor/advisor:
Devray Kirkland, Chief DE&I Officer

Executive sponsor/advisor:
Devray Kirkland, Chief DE&I Officer

Learning from the past

DE&I in a box

Gaining a better understanding of how racism, discrimination
and racial inequality impact our employees, communities, andour customers’ patients is a priority at Cardinal Health.

In June 2023, inspired by our Black andAfrican American Racial Equity Cabinet,
our DE&I team packed boxes with theProgress Pride flag and the Pan-African
flag (a symbol of freedom for Blackand African American people), signage
and messaging around DE&I for all
employee resource groups (ERGs), andsent them to many facilities aroundthe globe, as a way to engage more
employees in our DE&I work.

In fiscal 2023, teams across the company continued work to better
understand how the history of slavery, lynching, segregation and Jim Crow laws have
impacted the U.S. and how contemporary issues like discrimination, racial inequality andover-incarceration affect our communities. These teams, including CEO Jason Hollar andother senior leaders, the Human Resources leadership team, and the DE&I team, withmembers of our Black and African American Racial Equity Cabinet and our DE&I Steering
Council, made multiple trips to Montgomery, Alabama, to visit the National Memorial for
Peace and Justice and the Legacy Museum. Both facilities are projects of the Equal JusticeInitiative, a nonprofit organization that provides legal representation to those who havebeen wrongfully incarcerated.

Left: Employees in Cardinal HealthInternational India (CHII) hung theProgress Pride flag from the DE&I kit
in celebration of Pride Month.

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FY23 ESG Report

Overview |Our people|

Customers and communities|

EquityEmployee Resource Groups (ERGs):
Advancing DE&I and well-being initiatives

Open to all employees, our seven ERGs help
create community for underrepresented
populations, their allies and advocates.
The ERGs regularly support nonprofit organizations that serve
their constituencies in our communities. The ERGs also dedicate
programming each year to help advance members’ well-being.
In addition, through attendance at external job fairs, mentorship,and event programming, they help recruit, develop, engage andretain diverse talent, all of which help further our 2030 aspirational
representation goals.

Our ERGs by the numbers

678

1,261

members

We also have seven Multi-Cultural
Communities (MCCs) around the globe.
Like our ERGs, our MCCs are engrainedin the culture of Cardinal Health andwelcome employees around the globe
to get involved. The MCCs’ mission is to bring more people acrossthe globe into our diversity, equity and inclusion (DE&I) efforts.

813

613

members

members993

members

members

Access for everyone
Access is a key component of equity; it means identifying
and eliminating barriers that can prevent full participationof some individuals or groups. One way we ensure accessis by including lactation rooms and meditation rooms in
our facilities. These exist in our corporate headquarters
and many of our sites around the globe. Today, we ensure that every
new facility we open has both.

962

members

3,213
members

8,533
8,533
total
memberships

Operations and supply chain|

Governance, ethics and compliance|

Reporting indices17

FY23 ESG Report

Overview |Our people||

Customers and communities

Operations and supply chain|

Governance, ethics and compliance|

Reporting indices18

Representation
Inviting employees to self-identify

2030 aspirational representation goals: Fiscal 2023 progress

We welcome all employees in the U.S. to self-identify their disability status,
gender preference and/or veteran status within Workday, our human resourcesmanagement software. Self-identification helps us foster a more inclusive
environment, where all are included and respected. We’ve also enabled our
employees around the globe to identify as non-binary and share their pronouns
and display their chosen names in Workday and other internal applications.

 e believe that a diverse and inclusive workforce leads to better business results. If our talent strategy is successful,W
we will be an employer of choice for all and will see progress toward enhanced diversity in management.

We want everyone at Cardinal Health to be proud of who they are and what theybring to the company. These are small but significant steps that empower our
employees to show up and be seen as themselves.

PROUD ERG presents at Out & Equal

Goal: Globally see increased
representation of women at the
manager level and above from
40% to 48%

41.5%

Progress:
Grew to 41.5% in fiscal 2023
(compared to 40.9% in fiscal 2022)88
9

Goal: In the U.S., see increased
representation of African American
and Black employees at the manager
level and above from 5% to 11%

5.6%

Progress:
Grew to 5.6% in fiscal 2023
(compared to 5.3% in fiscal 2022)9

Goal: In the U.S., see increased representationof Asian, Latino, Indigenous and all otherethnically diverse groups at the manager
level and above from 17% to 23%

19.8%

Progress:
Grew to 19.8% in fiscal 2023
(compared to 19.1% in fiscal 2022)9This goal excludes Cardinal Health employees who identify as non-binary (U.S. only) or do not specify a gender within our voluntary survey.
This goal excludes Cardinal Health employees located within U.S. Territories, and employees who do not specify an ethnicity or respond to the voluntary survey.

Current representation highlights

For several years, PROUD has promoted its allyship program – urging employees to

Boardof Directors

55%

27%

femaleethnically diverse

57%

14%

femaleethnically diverse

learn more about the LGBTQ+ community and sign an ally pledge. By the end of
fiscal 2023, more than 6,000 employees had signed the pledge.
In the fall of 2022, Cardinal Health and PROUD were asked to participate in Out &Equal’s annual Workplace Summit to talk about this initiative. Out & Equal is a global
nonprofit organization that works exclusively toward LGBTQ+ workplace equality.
(According to Out & Equal's website, the Summit brings together executives, DE&I
practitioners, ERG members, and others for workshops, networking and the sharingof best practices.) Steve Mason, CEO of our Medical Segment and Executive Sponsorof PROUD, plus several members of the ERG presented a panel discussion that drewa standing-room-only crowd and inspired lengthy discussion.

Executive
leadership team(CEO and his direct10
reports)

Operatingcommittee(CEO, direct reports,business presidents,and other business and
10functional leaders)

Employee
population9

27%

20%

femaleethnically diverse

50%

50%

femaleethnically diverse(globally)
10 (U.S. only)

Diversity of employees is calculated based on data pulled from our HR system of record in September 2023 for the population of employees as of June 30, 2023 and excludes our
Kinray employee base. Kinray is excluded as employment information is managed by a third party in a separate system of record and represents a minimal impact on the metrics.
As of October 2023, Cardinal Health's operating committee comprises our CEO, his direct reports, business presidents, and other business and functional leaders, representing a
total of 15 executives. The diversity of employees by ethnicity is limited only to Cardinal Health's permanent employees based in the U.S. Cardinal Health does not collect racial/ethnic demographics of its employees outside of the U.S. Ethnically diverse is defined as all nonwhite employees.

FY23 ESG Report

Overview |Our people|

Customers and communities|

Operations and supply chain

Talent management
Delivering our mission requires effective strategies to attract, recruit, develop and retain
employees at every level around the globe.
Assessing employee engagement
Through the Voice of the Employee (VOE) initiative, the TalentManagement team surveys employees about their engagement
and sentiment. Every two years – including in fiscal 2023 – the teaminvites all regular, non-contracted employees around the world
to participate in the survey, which asks employees to share their
sentiments on a broad range of engagement categories, including
career development, communication, customer focus, DE&I,
empowerment, leadership, goals and objectives, work environment,
retention and more. (In the years between these full VOE surveys, theTalent Management team sends a check-in survey, inviting all regular,
non-contracted employees to respond to a briefer set of questions.)
Participation in these surveys is consistently high; this year’s
response rate was 88%.

As a result of these key takeaways, we have established a set ofenterprise-wide focus areas for the year, including:

The 2023 survey responses showed that our workforce is highly
engaged. Sustainable engagement, meaning how engaged,energized and empowered employees feel at work, is at 87%
across the enterprise. Key drivers of employee engagement
are the company’s focus on customers, employees’ feelings ofempowerment, and their work environment.

Our Time to Talk performance conversations

Other key takeaways include:
More than 90% of employees say they have a clear
understanding of the company’s goals and objectives
and they know how their work contributes to them.

90% of employees
also say Cardinal Healthmanagement supports
diversity in the workplace.

87% of employees
say they can be themselves
at Cardinal Health without worrying
about how they will be accepted.

01
02
03

A continued focus on clear, compelling goals andobjectives achieved in a way that’s consistent
with Cardinal Health values and behaviors.
Ensuring clear communications around thecompany’s long-term strategy and direction.
A continued focus on purposeful actions tomaintain our culture and retain talent.

In addition, leaders across the organization use the VOE results tocreate action plans to guide the work of their individual teams.

We help to inspire high performance through quarterly, one-on-one
check-ins between employees and their managers, called Our Time
to Talk conversations. During the first quarter of each fiscal year,
employees work with their managers to set annual performancegoals and plans for personal development. In the second and third
quarters, these conversations focus on progress toward goals anddevelopment plans. In the final quarter, employees complete selfassessments of their performance and engage with their managers
for performance reviews.

Leader development and succession planning
At Cardinal Health, succession plans for roles at the vice president
level and above are routinely evaluated and measured to help us
plan for critical workforce needs and ensure our leaders are equippedwith the skills they need to align with long-range business plans.

We regularly assess the readiness of all those on succession
plans, identifying the specific development areas andexperiences needed and the targeted time frame for each plan.
Each year, we identify the individuals at the vice president
level and above who are critical to retain and focus efforts on
keeping them engaged through new roles and assignments,
coaching and regular one-on-one “stay” conversations with
their direct supervisor. Stay conversations help us understandthese leaders’ motivation and engagement, what they need inorder to be more successful in their roles, and their evolving
career goals.
In support of our talent and succession planning process,we have a commitment to leadership development for ourhighest potential talent from mid-management to executivelevel leaders. A part of our development process is architecting
careers through a tool called "Charting a Course." This mappingof the critical experiences and assignments needed allows us
to better align our talent to the optimal next moves with longterm succession in mind.

How we approach development

70% + 20% + 10%
on-the-job
experience

networking

formal learning
sessions|

Governance, ethics and compliance|

Reporting indices19

FY23 ESG Report

Overview |Our people||

Customers and communities

Operations and supply chain|

Governance, ethics and compliance|

Reporting indices20

Learning and development
Growing and developing all employees and equipping them withlearning opportunities aids in building the skills needed to serve
the greater goal of healthcare. In fiscal 2023, the team focused onproviding performance-based learning, which teaches employees the
specific skills they need to achieve a desired outcome. Performancebased learning helps employees become more competent more
quickly and make fewer on-the-job errors. Because it helps employees
feel empowered, it also increases employee engagement.
The Learning and Development team also has incorporated
gamification learning in some training programs, in which participantslearn by solving problems in game-based settings. They compete withpeers, participate as teams and earn points or badges.

Learning academies: Creating customized
training for employees across businesses
Seven academies pair Learning and Development experts withbusiness leaders across the enterprise to develop and implement
training to equip employees in a rapidly changing work environment.
The academies support training for employees within thefollowing areas:

01 Leadership
02 Nuclear and pharmacy clinical work
03 Supply chain and manufacturing
04 Sales05 Customer experience
06 Corporate functions
07 International business

myLeaderMoments

Building digital strength

myLeaderMoments is a brief
weekly email to all people
leaders with tips and relevant
resources designed to boost
leadership development. In fiscal 2023,
topics included providing feedback
virtually, Generation Z employees andwhat they value at work (mental wellbeing initiatives, a supportive approach to
DE&I and a strong commitment to worklife balance), and the importance of goal
setting and holding frequent meetings to
discuss progress against goals. In 2023,
this initiative received a Gold Learningand Development Award from Brandon
Hall Group™, a professional development
company that offers data, research, insights
and certification to learning and talent
executives and organizations.

In close collaboration with leaders in Global Technology and Business
Services, the Learning and Development team launched Digital U in
fiscal 2021. Digital U empowers employees with digital skills alignedwith the company’s strategic business outcomes, and it is helping
build digital strength within the enterprise.
Three priorities guided the program in fiscal 2023:
I ncrease the number of employees who have the digitalskills necessary for key roles and responsibilities.
Increase career progression of digital college students
and graduates.
Increase retention of graduates.
There are seven colleges (analytics, automation and AI; architecture;cloud; engineering; information security; project management;
and SAP), and each one offers intensive learning programs that
employees must apply for. Each student has an assigned mentor
and the opportunity for job shadowing, stretch assignments andproject work. By the end of a digital college program, each graduate
can perform new digital skills or roles.

Mentoring
We have championed a robust, global mentoring program that provides development in a customized,
tailored way. Through mentoring, the organization supports employee development – building capability
and capacity to deliver on their business and professional objectives. At the same time, mentoring helps tofurther employees' personal development goals.
Mentoring has not only created connections for employees throughout the company but also has been acritical lever to foster and sustain our inclusive culture. By bringing together employees across businesses,
functions and geographies, these collaborative mentoring partnerships are strengthened by their diversity.
Some of our largest mentoring program participation falls within our Employee Resource Groups (ERGs).
Individual ERGs have long championed mentoring as a way to foster relationships across this large company.
Mentoring is also embedded throughout our leadership development offerings from early-career programs
to mid-level high potential development programs. Additionally, mentoring programs exist in ourbusinesses and functional areas to create new relationships and foster career growth across the company.

FY23 ESG Report

Overview |Our people|

Customers and communities|

Operations and supply chain|

Governance, ethics and compliance|

Reporting indices21

Wages and benefits
Benefits overview
We know that when our employees and their families thrive, they can be their best selves at work, at home andin their communities. Our benefits empower employees’ physical, mental and financial well-being. They reflect
our values and help create a workplace culture where everyone is invited to bring their authentic selves towork. Here’s a brief look at these benefits:

401(k)
savings plan

Live and Work
Well employee
assistanceprogram (EAP*)

Flexible spending
accounts

Physical andfinancial well-being
programs

Short- and longterm disability
coverageLifeinsurance

Backupchildcare andeldercare

Virtual physicaltherapy

Tuitionreimbursement

Paid parental
leave

AdoptionassistanceDomestic
partner benefits

Mental well-being
programs and free accessto a meditation app*

Virtual coaching
program forpain management

Access to experts inchildren’s learning,

Business travel
insuranceemotional, developmental
or behavioral challenges

Increasing mental well-being benefits
The Benefits team now includes a mental health specialist, a former practicing nurse who
believes mental well-being is at the very core of wellness. In fiscal 2023, our specialist
organized multiple small group discussions for employees to share stories of their mental
well-being journeys and to hear from and support others. The Benefits team also produces
the monthly “It’s Okay” podcast, designed to further normalize conversations about mental
well-being. Each episode features a different employee sharing personal experiences.

The benefits team is also working collectively toincorporate mental well-being messages into all
employee benefits. As an example, Principal, our401(k) benefit provider, has shared instructions
with our employees on accessing our EAP todiscuss financial stresses or retirement questions.

* Regardless of benefit enrollment, all employees and their household members have access to our EAP and a meditation app to help manage stress and support mental well-being. When reaching out to the EAP,
employees and their household members can choose a series of phone sessions with mental health professionals, or can select from a list of qualified professionals in their local community for in-person sessions.

College coachingfor dependents

Backup pet care

FY23 ESG Report

Overview |Our people

Pay equity
Each year, Cardinal Health conducts a pay
equity study to assess progress towards equalpay for all employees who are performing
substantially similar work, regardless ofgender or ethnicity. Some of the things
we consider include job-related skills,
tenure, experience and education level,
performance rating and geography.

98.6¢

For every dollar male employees
are paid, female employees
at Cardinal Health are paid 98.6¢11.

For every dollar non-minority employees
are paid, minority employees
at Cardinal Health are paid 99.5¢12.

99.5¢

We continuously assess our pay practices and make adjustments as
we strive to equitably compensate our employees. We engage withan industry-leading independent third party to analyze our pay data
at least twice each year and provide ongoing consultation to help
inform our salary investments and compensation practices.
Increasing transparency around compensation is one step on thejourney towards pay transparency and continued pay equity.
To increase pay transparency at Cardinal Health, effective January 1,
2024, we began including hiring ranges on all internal and external
U.S. job postings. While only some local and state legislation requires
this level of pay transparency, we believe this is the right thing to
do for our organization. Though this initial phase is only impacting
the U.S., we are continuing conversations with our leadershiparound the globe to remain aware of and engaged in the rightways to promote pay transparency and pay equity internationally.

Customers and communities|

Operations and supply chain

Black orAfricanAmericanHispanicor Latino

NativeAmericanHawaiian orIndian orother Pacific
Alaska Native
IslanderWhite

Two ormore races

F

M

F

M

F

M

F

M

F

M

F

M

F

M

Total

Executive/senior-level
officials and managers

1

1

1

3

1

3

0

0

0

0

13

33

0

2

58

First/mid-level officials
and managers

132

222

172

212

135

198

5

8

1

4

1,293 1,605

29

38

4,054

Professionals

381

427

447

259

269

232

18

11

6

11

2,542 2,170

83

67

6,923

Technicians

43

87

153

156

178

151

9

8

5

6

440

460

22

20

1,738

Sales workers

16

19

32

38

41

34

4

1

2

3

524

555

9

16

1,294

Administrative
support workers

54

25

613

72

208

54

13

5

8

2

948

186

58

8

2,254

Craft workers

0

4

16

51

3

40

0

1

0

0

11

148

1

1

276

Operatives

469

698

1,111 1,885 1,422 1737

29

44

55

78

1,170 2,610

82

156

11,546

Laborers and helpers

21

11

77

30

265

79

5

1

0

1

119

64

6

4

683

Service workers

0

1

0

11

1

8

0

0

0

0

1

31

0

1

54

Total

1,117 1,495 2,622 2,717 2,523 2,536

83

79

77

105

7,061 7,862

290

313 28,880

Previous report total

1,052 1,422 2,560 2,557

73

79

69

80

7,084

248

261

2,280

2,303

7,982

28,050(F) Female, (M) Male
11|

Below is the EEO-1 report that we file with the U.S. Equal Employment Opportunity Commission (EEOC) basedon calendar year filing requirements. The data reflect U.S. representation of racial/ethnic groups in various job
categories at Cardinal Health as of December 30, 2022. (The EEOC mandates the use of specific job categories
that differ from our workplace categories.)

EEO-1 survey data
Asian

|

 ardinal Health’s gender pay equity metric is calculated using U.S. permanent employee compensation as of October 24, 2023. The calculation excludes
C
employees located in U.S. territories, executives, employees on select incentive compensation plans, and employees who either identify as non-binary
or do not respond to the voluntary survey.

12

 ardinal Health’s minority pay equity metric is calculated using U.S. permanent employee compensation as of October 24, 2023. Minority employeesCare those who identify with a race or ethnicity other than white. The calculation excludes employees located in U.S. territories, executives, employees
on select incentive compensation plans, and employees who do not respond to the voluntary survey.

Governance, ethics and compliance|

Reporting indices22

FY23 ESG Report

Overview |Our people|

Customers and communities|

Operations and supply chain|

Governance, ethics and compliance

Employee well-being
MovingMatters

MoneyMatters

All employees and their covered family members are encouraged to seek
regular care to identify ailments early when they are most treatable. This
year, we restructured our annual incentive program to emphasize theimportance of a primary care physician relationship: enrolled employees
and covered partners who complete a check-up with their healthcare provider during
this calendar year will receive a discount on their 2024 medical premiums.

Earned wage accessOn the Spot recognition

According to a recent health and well-being survey13, 60% of fulltime employees are stressed about finances; even among those
who earn $100,000 or more annually, nearly half report feelingfinancial stresses. Nearly half of financially stressed employees said
these worries have a significant impact on their mental health.

In fiscal 2022, we piloted a recognition program called“On the Spot," which was designed for leaders to
immediately recognize and reward front-line workers
for outstanding work. In April 2023, we rolled out On the
Spot to distribution centers, manufacturing facilities
and warehouses across the U.S.

We also achieved significant health plan savings this year for our employees andbusiness by identifying program efficiencies. These savings were passed through to ouremployees and Cardinal Health was able to offer reduced or flat premiums for mostplans as well as increasing affordability based on income level. Finally, we introduced a
copay health plan to reduce monthly premiums and provided employee education toincrease understanding about choosing providers based on both cost and quality.

Supporting those in transition
In fiscal 2023, we also expanded benefits for those who are seeking gender-affirming
care, to include access to transgender advocates who can help employees findexperienced care providers and social service professionals. Employees also have accessto services including trachea shaves – a gender-affirming procedure for those seeking amore feminine appearance and voice training to help transitioning patients modify theway they speak to more closely align with how they identify.

Supporting pelvic healthFamily history, childbirth, hormonal changes and aging all can impact pelvic health.
To make pelvic healthcare more accessible, in fiscal 2023 we added a no-cost benefit
to any U.S.-based employee with a vaginal anatomy. (Spouses, domestic partners anddependents ages 18 and older who are enrolled in a Cardinal Health medical plan canalso participate in the program at no cost.)
The program provides confidential, private, clinical-grade care for pelvic-floor health.
It gives access to pelvic health specialists, an intravaginal biofeedback sensor, a tailoredpelvic-exercise program and resources. The pelvic health specialists are trained physicaltherapists with appropriate clinical experience.
13

Late in calendar year 2023, we began piloting a new benefit to
support the financial well-being of employees in the U.S.

Earned wage access allows employees toaccess a portion of their earned wages
for hours already worked in a current pay
period to meet their financial needs.
Earned wage access empowers employees to pay bills on timeand avoid high-cost financial options like payday loans, borrowing
against 401(k) accounts or late payments on bills.
Through a digital pay app, employees can access a portion of
the money they’ve earned prior to pay day, and have the moneytransferred as direct deposits to their bank. The app also allows
employees to set up a savings goal through direct deposit.

Backup pet care
We also added backup pet care through Bright
Horizons, the same program that provides
employees with backup childcare and elder carebenefits. Now, employees with pets can access free backup
boarding, pet walking or pet sitting services through rover.com.

PwC’s 2023 employee financial wellness survey. PwC. 2023. https://www.pwc.com/us/en/services/consulting/business-transformation/library/employee-financial-wellness-survey.html

Throughout the fiscal year, leaders awarded more than

2,700 employeeswith On the Spot recognitions.

|

Reporting indices23

FY23 ESG Report

Overview |Our people|

Because stigma remains one of the most significant barriers
to getting appropriate treatment, it’s particularly important tonormalize mental health issues. Eight in 10 employees say stigma
prevents them from seeking mental health support, according to
the National Alliance on Mental Illness (NAMI)14, and only 51% of
employees report feeling safe in their role if their mental healthissues are revealed, according to 2022 research commissioned
by Modern Health15.

Through our global MindMatters initiative, designed to reduce
stigma and increase access to mental health resources, we arebuilding a psychologically safe culture where employees at alllevels are invited to bring their authentic selves to work. They areencouraged to use support resources and to share their personalmental health journeys. Some of our senior leaders have been
setting the example: Russell Schuster, President of Cardinal Health
Canada, joined an all-employee town hall to talk about anxiety
and how he manages it. CHRO Ola Snow has openly shared how
her high-functioning anxiety manifests itself in worry, stress andloss of sleep; she was a featured guest on an episode of our internal“It’s Okay” podcast.

Below are some of the ways we’re supporting employees’ mental well-being:
Bringing on mental health professionals

Training employees

Through our EAP provider, we have dedicatedmental health specialists available to our workforce.
They host trainings and video podcasts, and support
each of our employee resource groups (ERGs) in creating mental
health awareness sessions relevant to the ERGs’ constituencies.
In fiscal 2023, we added three contractor positions for mental
health professionals to work with employees both on-site andremotely at our facilities in Chicago and LaVergne, Tennessee.

All U.S. employees have access to Mental HealthFirst Aid (MHFA) training to learn to identify andsupport anyone experiencing a mental health issue
and connect them with appropriate care. Employees also can take
Question. Persuade. Refer. (QPR) training to learn to recognize thewarning signs when someone has suicidal thoughts and how tooffer hope and direct the person to proper help.

In fiscal 2023, for the second year in a row, Cardinal Health’s supportof employee mental well-being was recognized for excellence in mental
health by the Business Group on Health’s Best Employer Awards.

14
15
16

|

Operations and supply chain|

Governance, ethics and compliance

Bringing employers together

MindMatters
Addressing mental well-being openly is core
to Cardinal Health's culture and is one of our
ESG priorities.

Customers and communities

Use of EAP
in fiscal 2023

9.2%

Pledge to be StigmaFree, National Alliance on Mental Illness website: https://www.nami.org/Get-Involved/Pledge-to-Be-StigmaFree/StigmaFree-Company. Accessed October 23, 2023.
State of employee mental health in the world. Modern Health website: https://www.modernhealth.com/press/state-of-employee-mental-health-in-the-world. Accessed October 23, 2023.
Mental health in the workplace, a resource guide for employers. OSPF website. https://www.ohiospf.org/employer-toolkit/. Accessed October 23, 2023.

At Cardinal Health, we believe that engaging with a cross-sectionof private and public sector leaders to discuss the prevalenceof mental health issues is critical, because it will take collective
action to help people throughout our communities to live
happier, healthier and more productive lives.
In May 2023, CEO Jason Hollar and the Ohio Business Roundtable
convened a group of Ohio CEOs for a discussion with Ohio Governor
Mike DeWine about mental health issues facing employees andtheir families. Following the event, Hollar and the leader of the
Ohio Business Roundtable co-authored an op-ed published in the
Columbus Dispatch in support of the Ohio Governor’s mental healthpriorities, which include expanding mental health resources andreducing stigma. They noted,
Supporting the mental
health provisions in the
Governor’s budget is simply theright thing to do, for our businesses,
for our employees, for our children
and for our communities.

CHRO Ola Snow and the Ohio Chamber of Commerce also hosted
a meeting to address mental health issues in the spring of 2023,
with a panel of experts sharing their insights about mental wellbeing in the workplace. Joining the conversation were the directorof the Ohio Department of Mental Health and Addiction Services(OhioMHAS) and the executive director of the Ohio Suicide Prevention
Foundation (OSPF), who introduced a new employer mental healthtoolkit16 that helps employers talk to their employees when someone
experiences a mental health crisis in the workplace, and promotes
the 988 Suicide & Crisis Lifeline, which offers 24/7 access to crisis
counselors. Cardinal Health and the Ohio Chamber of Commerce
supported the rollout of this resource to employers across Ohio.

|

Reporting indices24

FY23 ESG Report

Overview |Our people|

Customers and communities|

Operations and supply chain|

Governance, ethics and compliance|

Reporting indicesWorkplace health and safety
The safety of our employees and contractors is always our first priority, and we focus oncontinuous improvement and discipline to keep our people safe and healthy on the job.
In fiscal 2023, our Environment, Health and Safety(EHS) team set the goal of streamlining how wemanage workplace health and safety at each of
our sites through our EHS Management System(EHSMS). The EHSMS defines our overall strategy foraddressing EHS-related risks and streamlines the management ofthese risks and the implementation of risk control measures. Cardinal
Health has historically used two distinct EHS management systems,
one for our 18 ISO-certified manufacturing sites and another for allother facilities. During fiscal 2023, our EHS team strategized a plan
to bring all sites under one EHSMS aligned with the International
Organization for Standardization (ISO) standards and piloted thisapproach with select distribution centers and manufacturing sites.
As a result, the revised EHSMS was launched in August 2023.
The management of EHS-related risks at a site level is monitored
through Cardinal Health’s EHS compliance assurance program,which enables our teams to monitor EHS risks proactively andensures immediate steps are taken to address any noncomplianceissues through corrective action plans.
Additionally, to further drive safety and risk
management at our sites, safety metrics areincluded in annual performance goals for all
incentive-eligible employees in our facilities.

Focus Five transitions to a broader
Safety Improvement Plan
Our Focus Five program, designed to bring safety excellence
throughout our operations, has been in place since fiscal 2020. It isa three-year program built on the pillars of management, employee
participation and risk mitigation. Ten sites completed their Focus Fivework in fiscal 2023 and have collectively achieved a 22% year-overyear reduction in injury.
With the success of the Focus Five program, and to further reduce
EHS risk, maintain compliance and achieve continuous improvements
throughout the enterprise, we shifted our approach and launcheda Safety Improvement Plan in fiscal 2023. The new program
incorporates many elements from Focus Five and augments themwith management leadership; communications and documentation;
evaluations and continuous improvement; a system to recognize,
evaluate and mitigate hazards; and employee training. We believe
this new program will help us further a culture where every employee
prioritizes their own and others’ safety.
By the end of fiscal 2024, our new Safety Improvement Plan will be inplace throughout the entire enterprise. Our EHS team and the Learningand Development team are collaborating to create relevant training
for employees in all distribution centers and manufacturing facilities.

18

 otal number ofT
manufacturing sitesthat are ISO 14001
and ISO 45001
certified as of theend of fiscal 2023

1.51

Total recordable
incident rate (TRIR)*
in fiscal 2023

0.59

Lost time
incident rate (LTIR)*
in fiscal 2023

(Fiscal 2022 TRIR = 1.48)(Fiscal 2022 LTIR = 0.65)*Includes Cardinal Health employees only (not contractors).

25

FY23 ESG Report

Overview |Our people|

Building a strong culture of safety in our distribution centers“Safety has always been a priority here; we carefully maintain thesafe handling of all our products,” said Marsha Aragon, Director ofOperations at our pharmaceutical distribution center (DC) in Valencia,
California. “But we realized a couple of years ago that we could
improve the ways in which we communicate our safety standards toour frontline people – those who pick, pack and ship, lift heavy boxes
and manage heavy equipment.”
So, as the DC leadership team began to roll out the Focus Five
program late in fiscal 2022, “we took a step back and realized thatthough we talked about safety all the time, we weren’t doing a goodenough job of explaining the ‘why.’ And we learned that employees
didn’t always feel they could ask for explanations.”
Aragon and her team started with a comprehensive site assessmentthat included all employees. “We asked lots of questions to learn
where the knowledge gaps were and why,” she said. “One of the firstthings we learned is that new employees or those newly assigned todifferent areas needed more and better safety training.”

They engaged frontline employees in planning and executing
training, creating brief videos with smartphones that show theright way to lift heavy boxes, to safely operate a forklift, and tobend and move to complete repetitive tasks to avoid injury.
Leaders regularly walk the DC floor to check safety and security,
Aragon said:
We decided that anytime any of us walked thefloor, we would bring along a frontline worker.
As we walked, we looked at every area of the
facility and brainstormed ways to do things
more safely. We talked about
everything, from increasing theuse of power equipment to moveheavy pallets to always putting
equipment away where it belongs
to wearing appropriate personal
protective equipment (PPE).
The team also developed and implemented an environment,
health and safety (EHS) scorecard, which tracked data on
safety improvements throughout the facility. The scorecard
was recognized with an EHS innovation award and is now
being used in DCs across Cardinal Health.
Through this process, the team reduced its total recordable
incident rate (TRIR), an indicator that helps benchmark
safety measures.
In addition, “our site was promoted out of the Focus Five
program after just one year,” Aragon said. “We now mentor
other DCs as they progress on their employee safety journeys.
Ultimately, implementing the Focus Five program has led toa shared understanding of how a culture of safety can makeeveryone’s life a little easier and is allowing us to make great
steps forward.”

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FY23 ESG Report

Overview |Our people|

Customers and communities|

Operations and supply chain

Creating value
for our customers
and communities
In this section:

29  Product quality and patient safety

32 Supply chain resiliency

31  R esponsible use ofprescription medications

36  Community engagement|

Governance, ethics and compliance|

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FY23 ESG Report

Overview |Our people|

Customers and communities|

Operations and supply chain|

Governance, ethics and compliance

At Cardinal Health, weunderstand that what we
do every day supports ourcustomers, the communities
where we work and live,
and the patients that ourcustomers ultimately serve.
We are dedicated to continually improving
product quality and patient safety, increasing
supply chain resiliency, and helping ourcustomers provide the quality of care that
their patients need.
Through the Cardinal Health Foundationand corporate giving, we work to improve
equitable access to healthcare for those in
need. We also encourage and empower
employees around the globe to give back totheir communities, and they do, generously,
through volunteer service and donations.

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FY23 ESG Report

Overview |Our people|

Customers and communities|

Operations and supply chain

Product quality
and patient safety
Our Quality and Regulatory Affairs (QRA)
team drives the work that ensures the highest
quality, safety and integrity of our products.
Cardinal Health has robust Quality Management
Systems (QMS) governing our product manufacturing
and distribution. As part of our comprehensive
QMS, Cardinal Health has a robust training programfor personnel involved in Quality processes, where employees aretrained in requirements and procedures that apply to the roles they
perform. These training programs include new hire training, annual
training requirements, new training when a procedure is revised andongoing “refresher” training as needed.
Our Quality functions report up through the Chief Legal andCompliance Officer to ensure the independence necessary to performtheir job functions. The Risk Oversight Committee of our Board of
Directors also has oversight over our Quality functions, with thehead of Quality participating in the Committee’s quarterly meetings.
Quality also works closely with other Cardinal Health functions
such as Legal, Regulatory and Compliance, on matters involving
regulatory compliance, including field action determinations andinspection management.

Improving our Quality Management System
In fiscal 2023, the team began deploying an enterprise-wide electronic
quality management system (eQMS).
An eQMS is a structured electronic system for Quality
Management System (QMS) processes and systems, suchas design, manufacturing and process controls, suppliermanagement, risk management, complaint handling, anddocument management controls required by regulations.
This project, which will be phased in over several years, is transformational,
centralizing and harmonizing quality processes (such as document
management, internal audit, supplier audit and response, complaints, risk
management and lab investigation), and data and analytics. While we havethe utmost confidence in our current quality processes, we believe thisinitiative will further enhance our QMS. At the same time, the conversion
from a manual system to an electronic system will free up more time for
employees to focus on the needs of our customers.
Our new eQMS system is designed to provide integrated digital capabilities
to help improve process-driven decision-making and reduce technicalcomplexities across the enterprise. The project will fold six legacy systems
into one, and replace more than 100 paper-based processes with electronic
workflows. The solution will ultimately provide a centralized system for
quality-related activities such as complaint handling and investigations,corrective and preventive actions (CAPAs), and QMS policies and procedures.

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FY23 ESG Report

Overview |Our people|

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Operations and supply chain

Quality Begins
with Me continues
Now in its fourth year, our Quality Begins with Me program
continues to drive significant improvements. First launchedin fiscal 2020, the program is in place in multiple of our
medical manufacturing facilities around the globe, focusing
our attention on delivering safe and effective products andsolutions. Quality Begins with Me encourages employees
to ask questions and to speak up if something doesn’t lookor feel right.

The program’s purpose is fourfold:

01
02
03
04

Promote a culture of accountability
that drives the right behaviors.
Empower employees to promote
operational excellence.
Create a singular and binding focus on
quality and compliance improvements.
Drive flawless execution to achieve
first time right, every time.

Through the program, employees are developing anenhanced understanding of our products – asking questions
about the manufacturing process, how and when our
products are used and the reasons our customers andtheir patients rely on our products. Leaders across Medical
Segment manufacturing have embraced the program, andeach manufacturing site has elected Quality Begins with Meambassadors, chosen by their peers, to keep the program’s
purposes top of mind.

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Monitoring product quality
The Quality Begins with Me program and othercross-functional efforts to implement robust
quality controls have helped drive improvements
in product quality. We also have systems andprocesses to continuously monitor and address instances whenmanufactured or supplied products may not meet relevant
quality and safety standards. These systems and processes
include investigations and trending of external complaints
about non-conforming products and other quality issues.
If a potential issue is identified with a productdistributed in the field, we conduct a rigorous
cross-functional assessment, with patient safety
and product performance risks at the forefront.
That assessment includes convening a multi-functional board,which then makes process- and evidence-driven decisions on
initiating a field action on the distributed product.
If Cardinal Health decides to initiate a field action, or when aproduct in our supply chain is subject to a recall initiated byanother manufacturer, Cardinal Health identifies impacted
product through the supply chain to retail or health system
customers, as warranted based on the level of recall andrequirements for the product. When executing any recall,
Cardinal Health also works closely with our customers tocommunicate the recall and provide support during execution.
For example, Cardinal Health ensures customer service andsales functions are aware of product quality events to provide
support through multiple points of contact. Cardinal Healthfocuses on initiating and executing product field actions in acompliant manner, with patient and customer needs always
the top priority.

FY23 ESG Report

Overview |Our people|

Customers and communities

Responsible use ofprescription medications
At Cardinal Health, we operate an uncompromising system to identify and report suspicious
orders of controlled substances and maintain effective controls against diversion.
Our Controlled Substance Monitoring Program teamincludes investigators, data analysts, pharmacists
and compliance officers at our pharmaceutical
distribution centers, in the field and at our corporate
headquarters. We regularly conduct on-site
inspections of our pharmacy customers and collect pharmacy
customer data. We identify and terminate the distribution ofcontrolled substances to pharmacies that do not meet ourrigid Controlled Substance Monitoring Program standards.
As part of the nationwide settlement that resolved most opioidrelated lawsuits filed by state and local government entities,
Cardinal Health and two other national distributors agreed to
injunctive relief terms that apply to our Controlled Substance
Monitoring Program; these injunctive relief terms were effective
July 1, 2022. The terms require distributors to conduct consistentpractices including the analysis of retail pharmacy customers’ orderingand dispensing of controlled substances, and our monitoring fordisciplinary or other regulatory actions involving our customers.
Additionally, the injunctive relief terms require training uponhire and annually thereafter for all employees who work on ourControlled Substance Monitoring Program team, and employees
in our distribution centers whose jobs involve direct handlingor oversight of the distribution of controlled substances.

This training is also required upon hire and every three years
thereafter for employees in sales and operations and for senior
executives who support our controlled substance/pharmaceutical
distribution business.
This training is offered online, and includes four courses:

01

The duties of Cardinal Health to maintain effective
controls against the potential diversion of controlled
substances and to report suspicious orders.

02T he core functions of the Controlled Substance
Monitoring Program at Cardinal Health.

03T he responsibilities of Cardinal Health under the
injunctive relief terms.

04

What employees must do if they observe or suspectpotential diversion of controlled substances or violationsof Cardinal Health policy or procedure.

Approximately 1,600 employees are required to take thistraining upon hire and annually; approximately 8,400 employees
are required to take the training upon hire and every three
years. The training is available online for all other employees totake electively.

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FY23 ESG Report

Overview |Our people|

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Supply chain resiliency
Increasing resiliency within our Medical Segment
Cardinal Health’s U.S. Medical
Products and Distribution (U.S.
MPD) business manufactures,sources and distributes medical
products to hospital systems, ambulatory
surgery centers and clinical labs. After nearly
three years of working collaboratively withcustomers to address pandemic-related supply
chain challenges, the business has developed
a supply chain that is resilient, flexible, fastmoving and continually evolving.
With the goal of continuous improvement in safety, service,quality and efficiency across the supply chain, U.S. MPD has
invested in employees, physical space and innovations that
add automation, enhance data and planning capabilities,
and strengthen the employee experience:• Ensuring employees can best serve customers: We’ve broughton experts in collaborative planning; forecasting and replenishment
analytics; and supply chain visibility, flow, and innovation. We also
ensure the more than 3,600 frontline employees in six regional
replenishment centers (RCs) and 34 forward-facing distribution
centers (DCs) in U.S. MPD have the tools they need to accurately andefficiently pick, pack and ship products to our customers.

• Increasing physical space: U.S. MPD’s strategy to increase service
levels and supply chain resiliency with increased inventory andexpanded physical infrastructure led to a large DC opening inCentral Ohio in fiscal 2023, and a significant square footage capitalproject completed in fiscal 2023 that added nearly 1.5 million square
feet to our RC network. These investments strengthen our on-handinventory, allowing us to rapidly restock our DCs and store more
Cardinal Health™ Brand inventory.
• Investing in automation and other innovations: The new Central
Ohio facility features an innovation lab where the U.S. MPD team candevelop and test solutions in a real-world environment, like small,
handheld product scanners and a variety of robotics. Solutions thathave been deployed in fiscal 2023 include autonomous mobile
robots (AMRs) that eliminate the need for employees to push carts
filled with as many as 400 pounds of product from station to station
within the DCs. AMRs are now deployed in eight U.S. MPD facilities(as well as in a medical products DC in Quebec). The Central Ohio
facility tested an autonomous security robot (ASR) in fiscal 2023,
which employs self-driving technology, face and license plate
recognition and the ability to engage with people to help increaseon-site security. And U.S. MPD is testing autonomous floor sweepers
and scrubbers in a California facility.
Our at-Home Solutions business, which provides medical equipment
and supplies to support patients in the home, also opened a new DC
in Central Ohio in fiscal 2023. This facility is the first Cardinal Healthwarehouse to feature AutoStore, an automated fulfillment technology
from Swisslog optimized by Swisslog's SynQ software, which provides
warehouse management, material flow and automation controls that
integrate with host systems and other warehouse software.

At-Home Solutions also announced in fiscal 2023 a new,
350,000-square-foot building that will be built in Greenville,
South Carolina. Construction began in the summer of 2023 andis expected to be completed sometime in fiscal 2025. Like thefacility in Central Ohio, it will be equipped with AutoStore.
Cardinal Health Canada also announced plans to open a new DC
in Toronto. The new 160,000-square-foot facility will feature robotic
technologies and is expected to be fully operational early in calendar
year 2024. This brings Cardinal Health Canada’s national distribution
footprint to 1.12 million square feet.
Our continuous efforts in global logistics
to enhance end-to-end international
visibility and to collaborate with strategic
logistics partners exemplify our commitment toincreasing supply chain resiliency.
To improve international end-to-end visibility, we have successfully
integrated international third-party logistics (3PL) milestone data
into our supply chain operations, significantly boosting efficiency.
This includes real-time tracking of goods through our logistics
network. Looking ahead, we plan to implement an advanced
global trade management software solution, which will incorporatea transportation management system with routing software.
We believe this strategic move will enable us to minimize travel
distances, optimize shipments in transit, cut costs, enhance service
levels and reduce GHG emissions.

FY23 ESG Report

Increasing resiliency
within our Pharmaceutical
Segment
As hospitals balance the increase in medication
expenses due to the growth of specialty therapies
and biosimilars, they are struggling to rightsize pharmacy inventory and are challenged
with constantly evolving formulas used to calculate insurance
reimbursements. (Depending on state regulations, plans maychange these formulas many times a year.)In fiscal 2023, we announced a strategic collaboration with Palantir
Technologies, Inc., a proven leader in delivering mission-criticalsoftware across the public health supply chain, to design a solutionthat will give health systems and hospitals dynamic purchasing
decision insights to help improve the bottom line and help themto increase access to specialty medications. This solution will be
integrated into Foundry, Palantir's industry-leading operating
system. It will deploy artificial intelligence (AI) and machine learning(ML) to bring together diagnostic and clinical data with real-time
customer purchasing and consumption data for pharmaceuticalproducts with best-in-class data and privacy protections.
Future iterations of the tool are expected to help inform purchasing
decisions for therapeutic use, reimbursement insights and predictive
drug inventory needs, all helping to advance the connection
between health system purchasing and supply chain support.
Our collaboration with Palantir will create a datadriven solution that analyzes real-time clinical andpurchasing data to effectively create a clinicallyintegrated supply chain for pharmaceuticals.
Ultimately, we believe that the new software solutions will
help expand patient access to innovative medications.

Overview |Our people|

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Governance, ethics and compliance

Reducing physical risks
from climate change

Committing to theZero Health Gaps Pledge

Physical risks from climate change can harm our vehicles, facilities,
and employees as well as cause disruptions to our business. Thesemight be acute physical risks (in the case of a severe storm or flood), or
chronic, related to longer-term shifts in climate patterns like sustained
higher temperatures, rising sea levels, or changing precipitation. Bothcan cause disruptions to operations and the supply chain.

In August 2023, CEO Jason Hollar signed the Zero
Health Gaps Pledge, an initiative of the World
Economic Forum’s Global Health Equity Network,
which brings together leaders across sectors andindustries to advance health equity. The Zero Health
Gaps Pledge is a commitment from CEOs acrossindustries and regions for their organizations toembed health equity in core strategies, operations
and investments. The pledge intends to eliminate
health gaps, so that all people have a fair
opportunity to fulfill their human potential in
all aspects of health and well-being. Eliminating
health gaps is also aligned with United Nations
Sustainable Development Goals #3: Good Healthand Well-being and #10: Reduced Inequalities.

To mitigate disruptions from these risks, each year our Facilities andReal Estate Management team works closely with our insurance
provider to conduct a physical risk assessment. The assessment results
in a list of priority projects for our facilities in the areas of greatest risk
and helps us determine what we need to focus on in the near term toprotect these facilities against floods, extreme storms, hurricanes andother events exacerbated by climate change.
This assessment led us to implement mitigating measures toreduce our physical risk exposure at a Texas-based medical productdistribution center (DC). The risk assessment conducted in fiscal
2022 identified this site as at high risk for physical damage andbusiness interruption from extreme wind gusts. To mitigate therisk, the Facilities and Real Estate Management team designed a
project to improve the roofing system, including securing the site’sroof-mounted HVAC equipment to better handle wind conditions.
In addition, all dock doors at the site were replaced with wind- andimpact-resistant doors. This project was completed in fiscal 2023.
Another risk reduction project completed in fiscal 2023 addressedflood exposure at one of our pharmaceutical distribution centers in
the Midwest. This site was identified as being exposed to a 500-year
flood event, if a flood were to exceed the DC’s existing 100-year flood
levee protection. This physical risk was mitigated by the purchaseand installation of flood barrier systems to protect all doors, window
openings and critical outside utilities.

By signing the Zero Health Gaps
Pledge, Cardinal Health joins morethan 80 other organizations incommitting to providing accessible
high-quality physical and mental
health services, investing in safe
living environments and more.
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Overview |Our people|

Customers and communities

Helping customers provide equitable care to patients
At Cardinal Health, we believe that everyone
has the right to high-quality healthcare.
We know that by addressing disparities andincreasing equitable access to healthcare,
we are building a healthier future for our
employees, customers and communities.
Health disparities are differences in health that occur because ofincome, education, disability, race, ethnicity, sex, age or various
other factors. They put underserved populations at greater risk ofpoor health outcomes. Health disparities also come with a great
financial burden: A study funded by the National Institutes of
Health (NIH)17 found that they cost the U.S. economy $451 billion
a year – a combination of medical care, lost productivity andpremature deaths among impacted groups.
With a health equity lens and targeted
strategies, we are working to reduce healthdisparities and improve access to care tohelp improve patient health outcomes.
These are some of the ways that we support our customers inproviding equitable access to healthcare for their patients.

Sonexus™ Access and Patient Support
Specialty medications hold the promise of better healthoutcomes, but they come with significant barriers. They
are costly and often require clinical management, special
storage, handling, administration and monitoring. Thosepatients who don’t have adequate health coverage and/or
financial assistance are often excluded from these therapies.
That’s where Sonexus™ Access and Patient Support comesin: Sonexus partners with biopharmaceutical companies tooffer expertise and tailored solutions that help patients geton, and stay on, prescription medication therapy.
In fiscal 2023, Sonexus supported more than

116,000 patientswith cancer, rheumatic or other rare diseases.

The business offers patient assistance programs (PAPs)
to uninsured or underinsured patients and offers services
that assist patients who are waiting on a response fromtheir insurance company to get time-sensitive medication,
if possible. In fiscal 2023, PAPs dispersed more than 1,650
shipments a day, totaling approximately $5.1billion in free
medications annually.
In addition, Sonexus call center representatives, including ateam of nurses, are trained to support patients, respond totheir questions and help minimize their stress by providing
education on what to expect as they go through treatment.

17

 IH-funded study highlights the financial toll of health disparities in the United States. May 16, 2023. National Institutes of Health.
N
https://www.nih.gov/news-events/news-releases/nih-funded-study-highlights-financial-toll-health-disparities-united-states|

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Overview |Our people|

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Helping customers provide equitable care to patients (continued)

at-Home Solutions
Through at-Home Solutions, a medical supplies provider that serves people withchronic and serious health conditions in the U.S., we launched Velocare™, an exciting
new care model that intends to enable the delivery of hospital-level care to patientsin their homes. As traditional healthcare becomes more decentralized, hospitalat-home care models are enabling a broader spectrum of individuals to receive
hospital-level care all within the familiar and nurturing confines of their home.
The hospital-at-home care model not only extends the opportunity for qualified
patients to experience continuity of care in their home but also frees up hospitalbeds, allowing more individuals access to critical care promptly. Velocare, a supply
chain network and last-mile fulfillment solution capable of reaching patients within
one to two hours with critical products and services required for hospital-level
care at home, is creating critical infrastructure to make hospital-at-home programs
work and grow.
Our goal is twofold – to help our customers provide the best quality
care to patients and ensure patients have timely access to criticalsupplies and services needed for recovery at home.
We have also invested in Medically Home, a technology company that provides
health systems and hospitals with all the elements required to safely care forpatients, including clinical protocols, payer access support, platform technology
and fulfillment of all the clinical services required in the home through partners.
At-Home Solutions currently is supporting several health systems as they provide
at-home, acute-level care to patients. Ultimately, we believe care at home cansignificantly advance equity, lower costs and improve patient outcomes.

Cardinal Health Community Health Center
Pharmacy Services
Cardinal Health currently owns and/or manages the pharmacies at more than
50 Community Health Centers across the country, with another 10 coming
online in the near future. These are federally-funded nonprofit health centersthat serve medically-underserved populations, and provide primary careservices, regardless of a patient’s ability to pay. With an onsite pharmacy, a clinic
can expand services and improve patient care and health outcomes. An onsite
pharmacist ensures that clinic patients can get their prescriptions filled easily
and affordably; the pharmacist also provides education that helps patients
increase medication adherence. As part of the clinic’s health team, the Cardinal
Health pharmacy staff has access to patients’ electronic medical records (EMR)
and has a full picture of the patient’s history, drug interaction and compliance.

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Government Relations hosts executives on
Capitol Hill to build stakeholder engagement
As experts on key issues that impact Cardinal Health andthe healthcare industry, the Government Relations teamplays a critical role, assessing legislation to determine
how it may impact our business and our customers
and building relationships with federal, state, andlocal government officials and educating them on thecompany’s priorities. The team works to ensure that ourviews are represented as public policy takes shape inlocal, state, and national healthcare discussions.
One of the team’s key initiatives in fiscal 2023 andinto fiscal 2024 was to increase the engagement of
Cardinal Health’s senior executives with policymakers inWashington, D.C. “Relationships between members of our
executive leadership team and policymakers is invaluable,”said Rebecca McGrath, SVP of Government Relations.
“When lawmakers know our leaders and understand theimpact our employees and facilities have in their districts,
they see that Cardinal Health is not just a business, but acompany led by people who truly care about healthcare,
our customers and the patients they serve.”
In September, McGrath accompanied CEO Jason Hollar
to D.C. where they met more than 20 members of the
U.S. Congress and discussed legislative and policy issues
important to Cardinal Health and to the healthcare
supply chain. The Government Relations team thenhosted a reception with Hollar, the Ohio delegationand leaders of the Ohio Chamber of Commerce and the
Ohio Business Roundtable.
Earlier in the year, the team arranged visits for Debbie
Weitzman, CEO of Cardinal Health’s Pharmaceutical
Segment, and Jessica Mayer, Chief Legal and Compliance
Officer, with members of Congress. Among the topics
Weitzman and Mayer discussed with policymakers: thecritical role of the pharmaceutical wholesaler and theneed for certain flexibilities to be made permanent after
the end of the Public Health Emergency.
Chief Human Resources Officer Ola Snow also joined theGovernment Relations team in D.C. to meet with membersof Congress for discussions about the rise of mental healthissues across the country, and the need for increased
access to mental and physical healthcare services.
Steve Mason, CEO of Cardinal Health’s Medical Segment,
joined AdvaMed’s Board of Directors’ Hill Day in
D.C., meeting with senior staff for House and Senate
leadership and the U.S. Department of Health andHuman Services (HHS). Mason discussed critical issues
in the medical device industry, including the need toprotect the supply chain and modernize the regulatory
framework for diagnostics.
“These meetings have been very helpful in deepening
relationships between policymakers and our leaders,
and reflecting our value and contributions to healthcare,”
McGrath said.

FY23 ESG Report

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Community engagement
Addressing inequities in our communities
The Cardinal Health Foundation is focused on improving equitable health outcomes in the communities where
our employees live and work. Using an equity lens with its investments, and by focusing on long-term outcomesand seeding programs with partners, the Foundation is helping to create sustainable, positive change.
New signature program piloted in Ohio
In fiscal 2023, the Cardinal Health Foundation adopted a new strategic
initiative, called Equity Rx, to advance health equity by increasing
access to medications. The program is designed to help those whowill lose Medicaid coverage as the continuous enrollment provision
established during the COVID-19 pandemic winds down. In Ohioalone, it is estimated that 220,000 individuals will lose coverage18.
Lack of coverage and the cost of care are among the most significant
barriers that prevent the uninsured from getting essential, andpotentially lifesaving, treatments and medications. In 2021,
uninsured nonelderly adults were two and a half times as likely as
adults with private coverage to say that they delayed filling or did not
get a needed prescription drug due to cost19.
Early in fiscal 2024, the Cardinal Health Foundation launched Equity
Rx through a funding partnership with the Charitable Health Network(CHN), the membership organization for Ohio's charitable healthcareorganizations. Through the Foundation’s support, CHN will expand
access to medication for Ohio’s most vulnerable citizens by:18
19• Establishing an Equity Rx fund to support free and charitable
healthcare providers in meeting the increased demand for
medications among those who lose Medicaid coverage. CHN
established application guidelines and processed member
applications to award funds to participating clinics and pharmacies.
• Creating regional access to medications for charitable clinics
through an existing charitable pharmacy. The Foundation
launched its pilot with St. Vincent de Paul Charitable Pharmacy
in southwest Ohio and three charitable clinics in the region.
St. Vincent de Paul Charitable Pharmacy fills prescriptions forclinic patients and delivers them to the free clinics for on-site
dispensing to patients during their visits with primary care
physicians. CHN oversees the coordination between St. Vincent
de Paul Charitable Pharmacy and the free clinic partners. CHN
also is collecting and analyzing data from this pilot, including
medications dispensed, numbers of patients served, and healthoutcomes, with the expectation of developing a model that canbe replicated throughout the state in future years.

 esuming routine eligibility operations, Ohio Department of Medicaid. March 15, 2023. https://medicaid.ohio.gov/static/Stakeholders%2C+Partners/Unwinding/ODM_JMOC+Committee+Presentation_031523.pdf.
RKey facts about the uninsured population. KFF website: https://www.kff.org/uninsured/issue-brief/key-facts-about-the-uninsured-population. Accessed October 23, 2023.

Equity Rx will also include two long-standing programs focused on
educating our communities about medication safety. Each of these
programs provides volunteer opportunities for our employees andothers in our communities:• G eneration Rx, an evidence-informed prevention education
and awareness program founded at The Ohio State University
College of Pharmacy and powered through a partnership with
the Foundation since 2009. Generation Rx enables volunteers to
educate people of all ages about using medications safely.
• D rug take-back days across the country, sponsoredby the Foundation twice a year, in partnership with Kroger
and Giant Eagle. These events are designed to encourage
everyone to safely, anonymously and easily dispose of expired
and unused medications.

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Operations and supply chain

Over the next two fiscal years, the Cardinal Health Foundation will continue two existing
equitable health programs that are proving to catalyze sustainable change:
Through its Food Rx for Health program, the Foundation
supports community health centers that are increasing access tohealthy foods among their low-income diabetes patients to improvehealth outcomes. They are tracking each participating patient’s
A1C scores, which reflect a patient’s average blood sugar levels.
(The higher the patient’s A1C score, the poorer their blood sugar
control and the higher the risk of diabetes complications, including
problems with eyes, kidneys, heart or nerves.) With more blood sugar
control, patients are likely to experience fewer complications andhospitalizations and higher quality of life. The health centers provide
food insecurity screenings for patients, and help connect patients toadditional community resources. All participating health centers areworking together in a learning collaborative to support each otherand share best practices.
Through its Preventing Youth Suicide: A Cardinal HealthFoundation National Collaborative, the Foundation is bringing
together children’s hospitals across the country to implement the

Zero Suicide Institute’s framework for systemwide transformation toprevent deaths by suicide among children in their care. The Foundation
has engaged the national Children’s Hospital Association (CHA) as along-term partner in the Zero Suicide framework. CHA will sustain thiswork and spread it to other children's hospitals across the country.
The Foundation launched this work in fiscal 2021 with 17 adult andpediatric hospitals across the country. In fiscal 2023, the Zero Suicide
Institute analyzed the results of the hospitals' work, and found that
100% of the health systems in the collaborative had created policies
or protocols for suicide risk screening and assessment. Find more
results here.
Also in fiscal 2023, the Foundation created its pediatric collaborativewith a total of 25 hospitals (including nine of the hospitals thatwere involved in the 2021 collaborative plus 16 new grantees).
In September 2023, the Foundation and the Children's Hospital
Association announced a second pediatric suicide prevention cohort.

Supporting the mental well-being of frontline healthcare workers
In fiscal 2023, the Foundation piloted a program to support
nurses and other frontline healthcare workers’ mental wellbeing – helping them to recover from the struggles of caregiving
throughout the COVID-19 pandemic so that they’re able tocontinue to provide the best care for their patients.
The pilot delivered a six-week training course created by theCenter for Mindful Self Compassion (CMSC) specifically for
healthcare workers. More than 60 nursing leaders from four ofthe largest health systems in Central Ohio participated in the
program, learning skills to harness mindfulness and compassion
for themselves, their nursing teams, their patients and theircolleagues. All sessions were delivered virtually in an interactive
learning experience by two instructors at each session. All
instructors were CMSC-certified instructors (either medical
doctors or other healthcare professionals with the necessary
physician education experience). Participants were awarded
continuing education credits.

Following completion of the program:82%of the participants said they would
recommend the training to a colleague.

The chief nursing officers of the4participating
health systems

advocated for the training fornurses throughout their hospitals.

All participants
reported an improvement in “decompression”– the degree to which they can withdraw,
recharge and enjoy life outside of work.

Partnering with customers to enable
equitable access to education
Customers and employees at the Pharmaceutical
Segment's Retail Business Conference (RBC) in Boston filled

2,500 backpacks
with supplies for students of Title 1 schools.

(Title 1 is a federal education program that supports students in high-poverty schools,
determined by the number of students who qualify for free or reduced lunch.)|

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Cardinal Health Volunteers of the Year
Shining a light on our Volunteer of the Year and runners up – the employees who logged the most volunteer hours in fiscal 2023.

Danny Peterson
Data analyst, global supply chain reporting, Columbus, Ohio
Danny Peterson and his wife live in a diverse Columbus neighborhood known
as the Hilltop, located just a few miles west of downtown. The Hilltop is a historic
residential section that is currently undergoing urban renewal.

programs for area high school students, and supports the installation of public art,
including murals and sculptures, throughout the neighborhood.

The Petersons were attracted by the affordable housing in the area when they moved
in nine years ago. “But it was the community that kept us here,” Peterson said.
“People here are very proud of the Hilltop, and eager to work together to makeit better.” He quickly became involved in the Hilltop Arts Collective, which hosts
an annual free, family-friendly arts and culture festival, supports arts mentoring

There’s always more to be done than we can accomplish,
but we’re driven by the impact that the arts are making in
our community – as well as our neighbors’ response to it. For thoseof us who live here, the Hilltop is a very special place.

Peterson is chair of the Hilltop Arts Collective, an all-volunteer organization. He said,

Kim Naumann

Wilda Ferch

Rick Hurley

Product systems analysis consultant
O'Fallon, Missouri

Senior specialist, customer engagement
Bakersfield, California

IT manager, global technology
and business services
Dublin, Ohio

Kim Naumann, who lives and works just west of St. Louis, serves
as volunteer president for the St. Charles Sister Cities program.
The program implements programs that foster understanding,friendship, and goodwill through cultural, social, business andeducational exchanges between St. Charles and its sister cities,
Ludwigsburg, Germany, and Inishowen, Ireland. Among otherprograms, Sister Cities sponsors high school exchange students
and student visits to the sister cities.
For 25 years, Naumann has also volunteered with Susan G. Komen in
St. Louis, an organization that raises money for breast cancer researchand supports patient navigation and advocacy. She managed the localorganization’s website for many years, and continues to organize andchair fundraisers. “All the women in my family have been impacted
by breast cancer,” she said. “When I’m supporting Susan G. Komen,
I’m fighting for my daughter, my granddaughter and myself.”
She also spends volunteer hours supporting her granddaughter’sGirl Scout troop. “It’s a great way to spend time with mygranddaughter and give back at the same time,” she said.
Left: Danny Peterson speaks to a crowd at the Hilltop Arts Collective summer
festival. He's standing in front of a public mural that the Collective sponsored.

Most of Wilda Ferch’s volunteer hours are devoted to a parents’group at her children’s school. Called #Parentsquad, the groupraises money for athletics programs, prepares and serves meals
to the teams after the games, and chaperones the teams foraway games. Ferch is the volunteer leader for the group; herhusband, an alumnus of the school, volunteers, as well.
“The school has a flag football season, a volleyball season anda basketball season,” she explains. “Throughout the school year
our lives consist of work and the kids’ games.”
She created the logo for athletic department sweatshirts, andsells the merchandise to raise money for the school. “It’s great tosee all the parents and kids in their school colors when we travel
to away games,” she said.
“We started this volunteer work when my older son, now a
freshman in college, began high school. He now comes backto volunteer with us. My younger son is a senior in high school,
and my daughter is still in junior high – so we have a few more
years to go. It’s sort of our life, but we find it very fulfilling.”

Rick Hurley serves on the board of directors of Willow Ridge Therapeutic
Riding Facility, which provides equine-assisted therapy for children
with special needs. His older son, who has autism spectrum disorder,
was a student there for many years. (Now graduated from high school
and an Eagle Scout, the son volunteers at Willow Ridge once a week.)“The Cardinal Health Foundation Leadership Grants, which help fundthe nonprofits whose boards Cardinal Health employees serve on, havebeen helpful to the growth of this nonprofit – which aims to provide
services to children regardless of their economic situations,” he said.
Hurley also is a past Scoutmaster and current unit committee chairmanof Boy Scouts troops 185 (which his sons belonged to) and 581, a girls’
unit. He’s a booster for his younger son’s school marching band, anda musician in a band that occasionally performs to raise money forvarious causes.
“Volunteering is rewarding – you feel like you’re really doing something
to support your community,” Hurley said. “And volunteering with yourkids is a great way to help ensure they grow up with lots of goodexperiences, as well as a deep interest in giving back themselves.

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Pelotonia
In 2023, Pelotonia celebrated its 15th anniversary.
Since its inception, through cycling andvolunteerism events, the organization has
raised more than $258 million for innovativecancer research at the Arthur G. James Cancer
Hospital and Richard J. Solove ResearchInstitute at The Ohio State University.
Cardinal Health has been a Pelotonia funding partner since the beginning;in fiscal 2023, more than 100 individuals participated on Cardinal Health's
behalf in a weekend of bicycling or other activities and volunteerism.
Recently, funds collectively raised led to the opening of the Pelotonia
Research Center at OSU, named in honor of every Pelotonia participant,donor and partner. The Pelotonia Research Center will house thePelotonia Institute for Immuno-Oncology – a research initiative focusedon harnessing the body’s immune system to fight cancer at all levels –the Center for Cancer Engineering, and other programs, enabling moreseamless collaboration across departments.

$340K

Cardinal Health employees
and the company donatednearly $340,000 to
Pelotonia in fiscal 2023

More than 100 individuals
participated on Cardinal
Health's behalf in fiscal 2023

100+

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American Heart Association Heart Walk
Every year, employees across the U.S. support the American Heart Association (AHA)
through local Heart Walks, Go Red for Women and STEM Goes Red. The AHA is thecountry’s largest and oldest volunteer organization dedicated to fighting heartdisease – the number one killer in the world – and stroke, the number two killer.
Collectively, employees and Cardinal Health donated more than $494,000 to help
fund the AHA’s research and education initiatives in fiscal 2023.
In fiscal 2023, Cardinal Health launched its inaugural National Heart Walk Team,to better coordinate the fundraising activities and engagement of employees acrossthe country and include our international colleagues. Thirty-nine local teams acrossthe U.S. came together under the National Team. Employees outside the U.S. joined
the National Team as well: employees in Tijuana joined walkers in San Diego, and ateam in India walked on the day of the Central Ohio Heart Walk.

$494K+
In fiscal 2023, employees
and Cardinal Health donatedmore than $494,000 to help
fund the AHA’s research andeducation initiatives

Also in fiscal 2023, Cardinal Health funded the AHA’s hands-only cardiopulmonary
resuscitation (CPR) training for employees in multiple distribution centers andmanufacturing facilities across the U.S. The potentially life-saving training reachedemployees through onsite education and virtual programming.

Cardinal Health philanthropy and volunteer giving in fiscal 2023
The Cardinal Health Foundationand the company donated$8.4M

to charitablecauses.

Cardinal Health employees donated an additional

Product donations:to charitable causes representing morethan 1,300 organizations across the globe,
and collectively gave more than 54,600 hours of volunteer service.

Total:$1.0M(Volunteer hours are based on employee self reporting.)$13.53M

Pharmaceutical Segment donations: $9.88M
Medical Segment donations: $3.65M|

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Operatingsustainably
and responsibly
In this section:

43 Energy and climate

50 Product and service innovation

47 Waste

52 Responsible sourcing

48 Efficient transportationand logistics

54 Supplier diversity|

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Governance, ethics and compliance

As a large global company,
we are committed to
improving our impact
on the environment andon society, particularly as
global challenges continue
to become more complex.
In this section, we focus on ourefforts to address climate change,
protect natural resources, reduce
the environmental impact of our
products and ensure fair working
conditions in our supply chain.

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43

Energy and climate
In fiscal 2023, we continued to makeprogress towards our Scope 1 andScope 2 GHG emissions reduction goal,
as shown at right.

Scope 1 and 2 greenhouse gas (GHG) emissions

Additionally, we measured our Scope 3
GHG emissions, or value chain emissions,that represent the emissions generated
from business transactions occurring both upstream (i.e.,purchasing goods and services from our tier 1 suppliers) anddownstream (i.e., emissions generated from the use of oursold products) from Cardinal Health operations. As a result,
we were able to baseline our Scope 3 GHG emissions for the
purpose of setting a science-based target (SBT) and disclose
our fiscal 2023 Scope 3 GHG emissions within this report.

450,000

As of the publication of this report, we have officiallysubmitted our SBT, which includes Scope 1, 2 and 3
emissions, to the Science Based Targets initiative (SBTi) for
validation. Targets are considered science-based if they arein line with what the latest climate science says is necessary
to meet the goals of the Paris Agreement, limiting global
warming to 1.5°C above pre-industrial levels.

150,000

Also in fiscal 2023, we completed a project we’d begun
in fiscal 2022, conducting ESG audits at all of our owned
manufacturing sites to assess their environmental and social
performance and identify opportunities for improvement.
As a result of the audits, corrective and preventive actions(CAPAs) have been identified and provided to the director ofoperations at each site to review and implement solutions.

Cardinal Health FY2023 GHG footprint

Total market-based GHG emissions(metric tons CO2e)

Total: 38,315,954 mt CO2e

500,000

438,879
265,989

400,000

390,860
223,745

350,000

383,728
220,684

300,000
250,000
200,000
172,890

167,115

13%*

reduction fromfiscal 2019

Scope 1:
Direct emissions (0.43%)
163,044 mt CO2e

FY30 target

Scope 2:
Purchased electricity (0.58%)
220,684 mt CO2e

163,044

100,000
50,0000

Fiscal 2019base year

Fiscal 2022

Scope 1

Scope 2

Fiscal 2023

 I n fiscal 2023, we restated our fiscal 2019 GHG emissions. These have been assured, as have fiscal 2023 emissions, as part of Cardinal Health's*

commitment to accurate data reporting that best represents our business. The restatement was done in part due to the addition of newactivities such as emissions from biomass and refrigerants; as well as adding market-based emissions calculations for Scope 2. Additionally,some data was removed due to the divestiture of the Cordis business, and therefore properties and activities associated with that businesshave been removed from Cardinal Health's operational boundary. Knowing that renewable energy will be a critical piece to Cardinal Health's
emissions reductions strategy, we have transitioned to tracking progress towards our goals utilizing the market-based emissions method to beable to properly account for renewable energy within our boundary.

Scope 3: Indirect value chain activities (99.00%)
37,932,226 mt CO2e91.26% Purchased goods
and services

0.04% Business travel
0.09% Employee commuting

0.08%

Capital goods

0.00% Upstream leased assets

0.25%

Fuel- andenergy-related activities

0.09% Use of sold products

6.42%

Upstream transportationand distribution

0.09%

Waste generated inoperations

0.63% End-of-life treatmentof sold products
0.02% Downstream
leased assets
0.03% Investments

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Using renewable energy and increasingenergy efficiency
Renewable energy comes from sources like sun and wind that aren’t depleted
when they’re used. They emit little or no greenhouse gases and are abundantly
available around the globe. Climate scientists say that transitioning from relianceon fossil fuels to renewable energy is key to addressing climate change. That iswhy, throughout fiscal 2023, we continued to expand projects and initiated new ones acrossthe enterprise that are driving energy savings and climate action.
First, we entered into a strategic relationship with an energy
services company to conduct energy audits of select distribution
and manufacturing sites and conduct a renewable energy
assessment of both on- and off-site opportunities.
We have also begun thinking long-term when upgrading ourexisting facilities. For example, when we upgrade roofing at our
distribution centers and manufacturing facilities across the U.S.,
we are making the roofs ready for the installation of solar panels.
Additionally, we’ve begun to increase the thickness of our facility
insulation when making upgrades in the U.S., as thicker insulation
is a solution used to improve an air barrier across the building
envelope, resulting in less energy used for heating and cooling.
Throughout facilities across the enterprise, we are focusing on
increasing energy efficiency and, where possible, transitioning toelectricity as a primary energy source. For example, in fiscal 2023,
we replaced several hydraulic presses in U.S. facilities with moreenergy-efficient electric presses; one facility has completelytransitioned to electric presses. With hydraulic systems, the motor
and pump run continuously, consuming energy even when they’re
not in use. An electric system uses energy only when it’s working.
Electric presses also take up less space, require less maintenanceand can be controlled with a greater degree of precision. As wetransition to equipment powered by electricity, we also increase
our ability to reduce GHG emissions by powering that equipmentwith electricity from renewable energy sources.

We continued our retrofitting projects,
installing light-emitting diode (LED) lighting at
6 additional facilities in fiscal 2023. Switching
to LED lighting reduces GHG emissions, andprovides benefits for employees: it improves employee
safety, productivity, picking accuracy and overall comfort.
We’ve also begun replacing old boilers in our facilities with moreenergy-efficient models. In addition, we have begun installingcharging stations in our Medical Segment manufacturing facilities
immediately adjacent to breakrooms, to recharge the 1,000-poundbatteries that are used to power equipment like forklifts. This isenabling opportunity charging: traditionally, these large batteries
need significant downtime to cool down and recharge, which is achallenge in facilities that run multiple shifts in a day. Opportunity
charging is more efficient, because it means the equipment operator
can move equipment directly to the charging station to charge thebatteries during any downtime – like breaks or shift changes. Oncethe equipment operator is ready to go back to work, the battery
will have enough charge to work until the next break. Opportunity
charging makes it easier for operators to recharge the batteries andhas the added benefit that it can extend the batteries’ working life.

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Driving year-over-year energy savings
Leaders at the Cardinal Health medical
manufacturing facility in Tullamore, Ireland,
kicked off an energy reduction program earlyin fiscal 2023, to support the company’s goal of
reducing Scope 1 and Scope 2 GHG emissions
by 50% by fiscal 2030 (from a fiscal 2019 baseyear), and to better manage local increases inenergy costs.
Their site goal was ambitious: Reduce energy use by 10%– or 750,000 kWh – in fiscal 2023 over the prior year.
Their success was enabled through planning, research,and continuous communications that ultimately engaged
the site’s entire workforce.
They first invested in automated systems and controls to gather
data and provide real-time analysis. “We wanted to be able to show
data-driven results, to prove that the changes we make would resultin sustained, long-term energy management solutions,” said Sean
McCormack, site facilities engineering supervisor.
The Tullamore team established a baseline of energy use in eachof three pillars – general plant usage, power used by production
tools, and unmetered energy – and then set up a core team aroundeach pillar to identify savings opportunities. They also developed
an internal governance team supporting the pillars to deliver theirobjectives. Through collaboration with the enterprise Environment,
Health and Safety (EHS) team, the ESG team and external experts
including Irish utility providers, they developed a site action plan inline with business strategies.
As part of their focus on cultural transformation, they launched
a communications campaign for employees and appointed“energy champions” throughout the facility to help lead change.
They instituted new energy-focused Gemba walks, where managers
and leaders regularly walk the facility, observing various processes
and talking with and learning from employees on the floor.

The walks identified multiple energy improvements to take action
on, from using ultrasonic tools to identify compressed air leaks inequipment and improving HVAC efficiency, to adding local controlsthat shut off vacuums when not in use and turning lights off in lowoccupancy areas. “Our Gemba walks focus primarily on easy wins
– relatively low-cost fixes that have a big impact for the production
tools pillar,” McCormack said.
“Our first significant investment within the facilities pillar was a ductsealing project in our air handling units (AHUs). Eliminating leakages
allows the fan motors to run more efficiently, while also reducing theamount of air that has to be heated or cooled."An energy awareness campaign for employees is ongoing,
McCormack explained:
We talk about saving energy at home and at theplant, to make the issue meaningful on a personallevel. So when we bring in clean energy vendors,
we make sure that employees
know they can talk to them about
solutions, like solar installations
and smart lighting, for their homes
as well as our facility.

The Tullamore team achieved its fiscal 2023 goal, and is now working
on further energy savings in fiscal 2024. Projects include light-emitting
diode (LED) lighting retrofits, new fans, and a proposed upgrade to anew, higher-efficiency combined heating and power (CHP) unit.
Everyone in the Tullamore facility now has an energy savings goal
listed among their annual performance goals, McCormack said.
“We talk about energy issues very regularly, share progress, and getlots of ideas and input. There’s been a culture shift here – folks arereally engaged in reducing energy both at work and at home.”

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Giant ice cubes keep employees cool and save on energy costs
Most electric utility providers charge different rates for electricity consumption dependingon the time of day. Commonly referred to as on- and off-peak hours, rates are significantly
higher during on-peak hours, when the highest amount of stress is put on the electricity
grid’s capacity. It also happens to result in more environmentally harmful fuels being usedby electricity providers to meet demand.
In our facility in Greenwood, South Carolina, air-cooled chillers workat full capacity during off-peak hours to turn water collected frommanufacturing processes in ice storage tanks into an ice slurry thatcan be used to cool our manufacturing plant during on-peak hours.

Each ice storage tank contains thousands of small capillaries, and during on-peak hours
a glycol and water mixture runs through these capillaries where heat is exchanged (i.e., theglycol and water mixture is cooled by the ice in the storage tank). The glycol mixture thenflows to heat exchangers where plant-supply chilled water is cooled.

Depending on outside temperature, the facility can achieve up to several hours of coolingfrom the ice slurry when the air-cooled chillers are in shutdown status. By using electricity
during off-peak hours to create the ice slurry and reducing the run time of our air-cooled
chillers during on-peak hours, our site is saving on annual electricity costs and helping theelectric utility with demand-side management.

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Waste
Paper
Paper accounts for nearly 12% of total waste in U.S.
landfills, according to the Environmental Protection
Agency20. Its production requires significant amountsof energy and water usage. Even seemingly small steps,
like moving to paperless invoicing and packing slips,
can have a significant environmental impact.
In fiscal 2023, we partnered with CVS Health,
our largest customer, to implement
electronic invoicing – a transition that issaving approximately 36,000 – 44,000
pieces of paper each day, resulting in morethan 66 – 79 tons of paper saved per year21.
Electronic invoicing also saves time and increases
invoice accuracy, while helping both companies
advance commitments to reduce our impacts.

Celebrating Earth Day

Water
Water is a critical resource toour operations, employees
and the communities where
we live and work. Though
we must withdraw water to manufacture
our products and provide our services, weunderstand that freshwater is a local andregional resource. In fiscal 2023, Cardinal
Health performed an assessment of our water
withdrawal volumes by activity to better
understand our impacts. We plan to conduct
a water risk assessment during fiscal 2024
as part of a larger strategy on addressing
freshwater availability in the regions where
we operate.

(metric tons)

120,000
100,000
58,51463,504

61,28960,0000

Employees in Lakeland, Florida, planted thyme in small pots andsent them to school children across the U.S. to help them learn
about gardening. Employees in Norfolk, Nebraska, and all acrossCanada participated in cleanups near their work locations.

Recycling e-waste

Collectively, the employees sent more than

40,00020,000In Central Ohio, about 50 employees planted more than 300 trees,
removed invasive species, and weeded the children’s garden at theStratford Ecological Center, a nonprofit organization that teaches
children and adults about the interconnectedness of humans,
animals and the environment.

In addition, our ESG team worked with our Total Waste Management
vendor to promote electronics recycling in 13 of our U.S. distribution
centers. Employees were encouraged to bring to work with themthe small, hard-to-recycle home electronics (including old laptops,
cell phones, calculators and cords) they no longer use and placethem in collection boxes for recycling.

Total weight of waste generated globally

80,000Across the U.S. and around the world, employees celebrated
Earth Day in 2023 by planting trees, participating in local
cleanups, and even plogging (picking up trash while jogging
or walking).

25,85525,855

Fiscal 2021

Fiscal 2022

31,001

Non-recycled
Recycled

Fiscal 2023

20

T he U.S. Environmental Protection Agency: National overview: Facts and figures on materials, wastes and recycling. Last updated December 3, 2022.
https://www.epa.gov/facts-and-figures-about-materials-waste-and-recycling/national-overview-facts-and-figures-materials.

21

Based on June 2023 data, using 365 days per year in calculating tons of paper saved, and assuming that 50% of paper waste is sent to landfill and 50% is recycled.

22

Per our Total Waste Management vendor Veolia, who was responsible for collecting and measuring this waste and reporting the final waste collected.

300 lbs.

of e-waste to recycling centers rather than to landfill22.

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Efficient transportation and logistics
In fiscal 2023, our domestic
logistics team focused on
identifying ways to increase
middle mile efficiencies. Middle miles include
deliveries between distribution centers,
between replenishment centers, or between
replenishment centers and distribution
centers. Because many trucks travel the
middle mile with less than full loads, theteam knew that there were opportunities forincreasing fuel efficiencies and cost savings
and reducing emissions.
The team also began implementing systems to baseline load
utilization for first, middle and final mile shipments and better
manage freight spend and usage. In fiscal 2024, the team is looking
at other opportunities, as well, like changing delivery schedules tocustomers to ensure optimized truckloads, deploying strategies toreduce “empty miles” and taking on additional inventory to order
goods less frequently.
Cardinal Health also considers the environmental and social impact of
our international transportation and logistics activities, managed by
our Global Trade team. In fiscal 2023, the Global Trade and ESG teams
collaborated on key screening questions that should be consideredwhen onboarding new maritime or aviation shipping partners.

Screening questions for new partners address
topics such as their measurement and disclosureof greenhouse gas (GHG) emissions, their GHG
emissions reduction targets, and whether they had
existing policies on human rights and forced labor.
The ESG team is now included in quarterly business review meetings
with our existing portfolio of long-standing global trade partners tobetter understand how they are working to improve environmental
and social impact.
The supply chain crisis brought on by the COVID-19 pandemic
continued to impact international shipments through fiscal 2022,with ports backed up and cargo stuck on ships. In fiscal 2023,
the Global Trade team focused on reducing cargo detention anddemurrage – the charges incurred when our containers are notcleared and returned within a specified time. These efforts haveresulted in a significant cost avoidance year over year.
In addition, throughout fiscal 2023, the Global Trade team refined its
international logistics model, work that continues in fiscal 2024. For
example, a significant number of our shipments from the Asia-Pacific(APAC) region come through the Port of Long Beach in California,
then require extensive middle-mile trucking to reach various
destinations across the U.S. Through network design optimization,
we are assessing transportation routes from APAC directly to ports
along the east coast to significantly reduce middle-mile trucking and
GHG emissions and move products more efficiently.

The team’s strategic logistics partnerships play a vital role in its
sustainability efforts, and, by closely monitoring container usage,
Global Trade has been reducing less-than-container loads and 20foot containers. This promoted consolidation for enhanced efficiency
and reduced environmental impact. (20-foot containers require
special equipment and handling for loading, and are less efficientthan 40-foot containers.)
The team is also actively encouraging mode shifts
from air to ocean. In fiscal 2023, the company put
into place a systematic air freight approval processthat involves close evaluation with senior leadershipin Manufacturing, Planning, and Global Logistics. This is dramaticallyreducing our air shipments to only those that are truly essential.
In fiscal 2024, a key focus for the team is a collaboration with thecompany’s packaging engineers to significantly reduce overages,
shortages and damages (OS&D). OS&D are the discrepancies
between the products that arrive at a warehouse or distribution
center and the bill of lading. Together, the teams will reevaluate theway damaged packaging is handled, work to eliminate the use of
unnecessary packaging materials, and explore new opportunities
for reusing and recycling products.
In fiscal 2023, the Global Trade team brought on a training manager
and launched a company-wide education campaign to ensure that
employees across the enterprise understand the importance andimpact of supply chain resiliency. In fiscal 2024, we are creating new
training on our online learning platform that will be required for all
employees who play a role in the supply chain.

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Cardinal Health is a SmartWay® High Performer
The U.S. Environmental Protection Agency’s (EPA's) SmartWay® program
helps advance supply chain sustainability by measuring, benchmarking,and improving companies’ freight transportation fuel efficiency.
Thousands of companies partner with the
EPA through SmartWay and fewer than 10%of these companies are High Performers.
Cardinal Health achieved this designation
for calendar year 2022.

To be named a High Performer, companies submit their annual efficiency and air
quality performance data to the EPA. For Cardinal Health, this designation means the
553 trucks in our fleet move heavier and more efficient loads and consume thousandsof gallons less fuel each year compared to SmartWay peers23. Our efficiencies and air
quality performance fall within the SmartWay programs’ top performance range.

Putting electric vehicles to work
In February 2023, Cardinal Health signed a six-year lease on twoelectric tractor-trailers. Based in our Ontario, California, facility,
they deliver medical products throughout Southern California.
Both run full-time routes, five days a week. The trucks can go as
far as 220 miles (depending on the weight of cargo on board,
topography and traffic) between charges.
The Ontario facility also operates an electric transit van, used tohaul smaller loads throughout Southern California. The transit
van is charged onsite overnight. The site also is currently beta
testing a smaller step van, designed to travel longer distances –up to 250 miles – between charges than the transit van.

23

According to data accepted and approved by the EPA, March 8, 2023.

Late in fiscal 2023, we also leased an electric yard dog (also known
as a terminal tractor) at our Ontario facility and replaced twoelectric yard dogs with newer versions equipped with smart
chargers at our location in Riverside, California. Yard dogs move
empty semi-trailers to the dock for loading, then to the yard for
drivers to collect them. In addition to eliminating emissions,electric yard dogs make very little noise, enhancing the experience
for their drivers and minimizing noise pollution in the surrounding
communities.

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Product and service innovation
Within our Global Products team, engineers and innovators are increasingly considering
the sustainability and circularity of our products, packaging and services. Throughout fiscal
2023, the team gathered baseline data to assess the sustainability of current offerings andto identify future opportunities.
In fiscal 2024, the team is using this assessment to define product stewardship key performance indicators and resources required
to deploy sustainable product development. Both product development and change management processes are being tailored tobetter integrate purposeful ESG initiatives.

For this team, product stewardship will include these factors:

01 Cultural changes in the organization.
02 Process and procedural changes: each design now
requires a sustainability consideration.

03 Categorizing products as primary or secondary

environmental and social projects, with plans to
set targets.

04 Alignment with customers to support their ESG goals.
05 Using fewer resources, leveraging recycled or
recyclable materials, and designing products for fulllifecycle consideration, including reprocessing.

06 Minimizing energy consumption at point of use.
07 Initiation of specific programs and partnerships.
08 Reducing or eliminating single-use disposable items(or ensuring that single-use items are reprocessed).

09 Reducing the use of hazardous materials.
10 Selecting materials that help support a diverseand humane supply chain.

11 Reducing the amount of packaging waste throughreduced volume per product or increased use of
eco-friendly packaging and labeling.

The team is fostering a culture of innovation and responsibility by investing in training and development programs aimed
at increasing employees’ understanding of the impacts of sustainability. They are focused on highlighting the significant efforts
and accomplishments to the company’s marketing and sales organizations so the marketing and sales teams can in turn convey
to customers how our sustainability work can support our customers’ efforts toward greater sustainability.

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Sustainable Technologies™
Reprocessing medical devices to reduce healthcare’s carbon footprint

More and more, U.S. hospitals are turning to reprocessing single-use medical devices, both to
reduce their environmental impact and reduce costs. Through Cardinal Health’s Sustainable
Technologies™ business, we are helping to meet the demand, providing single-use device (SUD)
collections and reprocessing services. Reprocessed devices are regulated by the Food and Drug
Administration and have the potential to extend the life of medical devices and reduce waste.
Hospitals that purchase reprocessed SUDs rather than new products
can achieve significant savings: a report24 by the Association of Medical
Device Reprocessors noted that in 2021, U.S. hospitals and surgicalcenters saved more than $412 million through reprocessing.
The growing demand for reprocessing services led Sustainable
Technologies™ to nearly double the size of its facility near Tampa,
Florida, in fiscal 2023. This expansion has expanded capacity toreprocess a larger number of SUDs, and provided a lab space fortesting new ways of reprocessing products that aren’t yet in the
Sustainable Technologies™ portfolio.
Among the products Sustainable Technologies™ reprocesses arecompression sleeves, electrocardiogram lead wires and cables,
and air transfer mats (used to transfer and reposition patients).
Our portfolio includes many other reprocessed products usedin surgery, including ablation wands and electrodes, orthopedic
manual devices and more. Many SUDs can be reprocessed multiple
times, and when they can no longer be reprocessed, they can berecycled through our zero waste-to-landfill operating model.
The Florida facility operates on a unique zero waste-to-landfill
model for disposing of devices at the end of their useful life.

SUDs collected
in fiscal 2023
24

17.05M

Lithium-ion and alkaline batteries, for example, are melted down into
a commodity for the metals market; corrugated cardboard is recycled
into more corrugated cardboard or chipboard; and regulated medical
waste and plant trash are turned into energy through a waste-toenergy program.
With its zero waste-to-landfill initiative,
Sustainable Technologies™ has diverted
99.9% of waste from landfills.
During fiscal 2023, the Sustainable Technologies™ team engaged
a third party to conduct a lifecycle assessment (LCA) and compare
the environmental impact of using new, single-use intermittent
pneumatic compression (IPC) devices (used to prevent deep veinthrombosis and pulmonary embolism) instead of reprocessed,
single-use compression sleeves. The study concluded there isan environmental and economic benefit in using reprocessed
compression sleeves. The overall life-cycle environmental footprintof a reprocessed device was found to be, on average, 43% lower
than that of a single use device. In a breakdown of the lifecycle
assessment results, reprocessed compression sleeves were found
to reduce the carbon footprint by 40% and reduce hospital waste
disposal costs by 90%.

Pounds of waste
diverted from landfills

2021 annual AMDR member survey results: reprocessing by the numbers. AMDR. 2023. https://amdr.org/newsroom/reprocessing-by-the-numbers/

5.24M

Packaging redesign
to reduce waste
Late in fiscal 2023, we initiateda packaging redesign for
our Presource surgical kits
designed to significantly
reduce waste. Our engineers created more efficient
packaging for two distinct kits; the new design not
only saves packaging materials, it allows the kits tobe stored more efficiently within our distribution
centers and in our customers’ supply storage rooms.
We anticipate that the new packaging
will eliminate more than 169,000 poundsof packaging waste in fiscal 2024.
The majority of our Presource kits are custom,
meaning that the customer determines exactly
what is in the kits. We have a team of businessand clinical optimization experts, logisticians,
clinicians and trained sales representatives wholeverage data and analytics to optimize the kits.
We are always looking for ways to add products
or remove products to reduce waste and drive
efficiencies. For example, in fiscal 2023, after
customer engagement revealed customers threw
away some of the unused components within oururology kits, we removed those components.

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Responsible sourcing
We are committed to ensuring that our supply chain reflects our core values and our ESG priorities.
All of our suppliers are expected to comply with our Vendor Code of Conduct and Standards for
Suppliers. These documents set forth the obligation of all vendors and suppliers that do businesswith Cardinal Health; they are reviewed and updated regularly. We also have a Global Human
Rights and Labor Standards policy and a Conflict Minerals policy, which establish requirements for global
conduct related to human rights and labor standards.
In addition, we issue an annual Modern Slavery Statement that sets forth
the steps Cardinal Health has taken to prevent modern slavery and humantrafficking in the business and supply chain.
In fiscal 2023, we improved our supplier assessment program, analytics
and mapping with the addition of new tools and third-party providers.
These new capabilities are enabling broader supplier engagement inboth the Medical and Pharmaceutical Segments in fiscal 2024. Supplierassessments include self-assessment questionnaires (SAQs) and on-site
audits; the ESG Supply Chain team focuses on assessing the suppliers withthe highest inherent risk associated with human rights, labor standards,
health and safety, environmental standards, business ethics and impact
on the business. We performed a review of the fiscal 2022 self-assessment
questionnaire and revised the number and types of questions to improvealignment with key risks in our supply chain.
As a result of our revised self-assessment questionnaire,
we achieved an improved response rate which has helped
improve our efficiency with risk-rating suppliers.

After completing their assessments, suppliers receive feedback from the ESG
team, and when required, training and corrective action requests. When asignificant issue with a supplier is identified, an investigation is conducted,
and if necessary, the issue is escalated to cross-functional leadership for
prompt action. Remediation of significant issues requires suppliers to
implement Corrective and Preventive Actions (CAPAs) and complete followup audits to confirm that actions have been taken. In extreme cases, thesupplier relationship may be terminated.
Throughout fiscal 2023, the ESG team focused on simplifying, improving
and embedding a structure for the due-diligence process, which is helping
to ensure transparency and business integrity. Cross-functional teams
across the enterprise are being engaged to help them understand theimportance of this work. In fiscal 2023, for example, members of the Global
Procurement team were trained in ESG supply chain due diligence andabout supply chain risks, including human rights, forced labor, child laborand conflict minerals.

Our supplier due diligence program
Inherent risk
assessment
New suppliers/
locationsSAQs
andauditsMonitoring

Ongoing

Remediation

Investigation

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Responsible Glove Alliance
The Responsible Glove Alliance (RGA) is a collaborative initiativethat works to prevent, identify and remediate conditions that
contribute to forced labor in the medical gloves industry.
All members apply significant due diligence to their supply
chains and recruitment channels, and companies are vetted before they’reallowed to become members. Currently, the RGA has six member companies;
two additional companies are under consideration as potential new members.
Cardinal Health is a founding member of RGA and leads its steering committee. Early in fiscal 2024, the steeringcommittee met in person for the first time, gathering in Malaysia, the world’s largest supplier of medical gloves.
Participants included government officials and senior leaders representing companies from the U.S., the United
Kingdom, the European Union and Malaysia.
Among the meeting highlights: Leaders from member companies reiterated their commitment to eliminate forcedlabor in the medical gloves supply chain, and Malaysia’s Deputy Minister of Human Resources discussed Malaysia’s
focus on human rights. In addition, the director of the U.S. Customs and Border Protection (CBP) Forced Labor
Division told the gathering that the CBP can work with RGA to establish standards and collective goals.

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Overview |Supplier diversity
We are committed to supporting and working with qualified
diverse businesses, and we believe that diversity in our supply
chain helps increase innovation, improve quality, and create
opportunities and economic growth in the communities we serve.
As the healthcare industry continues to evolve, we rely on our diverse supplier partners
to help us identify opportunities and navigate through challenges to ensure we continue
to meet the needs of our customers.
We define diverse suppliers as small businesses and businesses that are owned, operated
and controlled by people with disabilities, veterans and service-disabled veterans, and ethnic
and gender minorities.
We have been committed to supplier diversity for more than 30 years. It has played a criticalrole in how we deliver value to our customers and the patients they serve. Supplier diversity
will continue to play a key role in our work to move healthcare forward.

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05

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Governance,
ethics andcomplianceIn this section:

57  Corporate governance61 Business ethics and compliance59 Data privacy and security

66 About this report andcautionary statement|

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Governance, ethics and compliance

Strong corporate governance,data privacy and security,and business ethics andcompliance are foundational
to Cardinal Health; they create
an environment of trust andaccountability.
They guide our work anddrive our business growth,
empowering us to deliver
the products and solutions
that improve people's lives
every day.

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57

Corporate governance
Board of Directors

25

The Board of Directors is responsible for monitoring the conduct of our businesses and of management’s efforts to establish
and maintain high standards of legal and ethical conduct; management’s accounting, financial reporting and controls; risk
management policies and practices; and our ESG strategy, goal setting, performance, and disclosures, among other things.

25

26

Gregory B. Kenny

Sheri H. Edison

Akhil Johri

Independent Chairman of the Board
Retired President and Chief Executive
Officer of General Cable Corporation
Committee: Governance and Sustainability

Retired Executive Vice President
and General Counsel of Amcor plc
Committees: Audit, Risk OversightOperating Advisor to Clayton, Dubilier &Rice and retired Executive Vice President
and Chief Financial Officer of United
Technologies Corporation
Committees: Audit, Business Review*

Steven K. BargDavid C. Evans

Nancy Killefer

Global Head of Engagement of ElliottManagement Corporation
Committees: Business Review,* Governanceand Sustainability

Retired Executive Vice President and Chief
Financial Officer of The Scotts Miracle-Gro
Company and former Executive Vice
President and Chief Financial Officer ofBattelle Memorial InstituteCommittees: Audit, Risk Oversight

Retired Senior Partner, Public Sector
Practice of McKinsey & Company, Inc.
Committees: Governance andSustainability, Human Resources andCompensation

Michelle M. Brennan

Patricia A. Hemingway Hall

Christine M. Mundkur

Retired Value Creation Leader ofJohnson & Johnson
Committees: Audit, Human Resources
and Compensation

Retired President and Chief Executive Officer
of Health Care Service Corporation
Committees: Governance and Sustainability,
Human Resources and Compensation

Retired Chief Executive Officer of
Impopharma, Inc.
Committees: Human Resources andCompensation, Risk Oversight

Sujatha Chandrasekaran

Jason M. Hollar

Retired Senior Executive Vice President
and Chief Digital and Information Officerof CommonSpirit HealthCommittees: Audit, Risk OversightChief Executive Officer
of Cardinal Health, Inc.
Committee: Business Review*

 urrent Board members as of the publication of this Report. All Board members, with theCexception of CEO Jason Hollar, are independent.
Ethnically diverse Directors are all those who identify as a non-white race/ethnicity.

Board of Directors diversity

55% female 27% ethnicallydiverse26* The Business Review Committee was formed in September 2022 pursuant to a cooperation agreement with
Elliott Management to conduct a review of the company’s strategy, portfolio, capital allocation frameworkand operations. In May 2023, the term of the Business Review Committee was extended to July 15, 2024.

Cardinal Health honored with
Ruth Bader Ginsburg Board Diversity Award
We are proud of the diverse representation on our Board of Directors, which helps
ensure that our company benefits from diverse perspectives and experiences.
In May 2023, the national nonprofit
organization DirectWomen announced that
Cardinal Health was a recipient of the2023 Ruth Bader Ginsburg Board Diversity
Award, which recognizes corporations
that have served as leaders in the effort toachieve board diversity, as illustrated by thecritical mass of women directors on theirboards and their strong commitment todiversity in the boardroom.
DirectWomen, whose mission is to increase
the representation of women lawyers on
corporate boards, presented the award at
the Sandra Day O’Connor Board ExcellenceAward Luncheon in New York City in
October 2023.

FY23 ESG Report

Investor Day highlights
In June 2023, Cardinal Health hosted
an Investor Day at the New York Stock
Exchange; investors, analysts and otherstakeholders joined the audience either
live or virtually.
CEO Jason Hollar highlighted areas of focus and strategic
priorities, including the actions the company is taking tomaximize and sustain value at Cardinal Health, and the work
we’re doing through our ESG initiatives to enable a moresustainable, equitable world.

Cardinal Health iscontinuing its journey to
becoming a simplified andmore focused company,
but the company willremain a crucial link
between the clinical andoperational aspects of thehealthcare ecosystem.
Jason Hollar
CEO

Top photo: CEO Jason Hollar surrounded by senior executives of thecompany at Cardinal Health's Investor Day. Lower left: Hollar at Investor Day.
Lower right: Investor Day panel and presentation.

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Data privacy and security
Our Enterprise Privacy Office (EPO), established in fiscal 2022, was designed
to strengthen and centralize our Global Privacy Program. It is responsible forenabling Cardinal Health to remain current on changes in the privacy regulatory
landscape, industry-leading practices, and emerging areas of privacy risk, in
addition to addressing existing risks and enabling the use of personal data forbusiness growth and innovation in a compliant manner.
Privacy remains a key priority at Cardinal Health, and the EPO
partners with the Information Security team to protect the personal
information we collect from our customers, patients, employees,
suppliers, and other business partners.
The EPO is continuing to leverage its Global Privacy Framework
to identify and implement the priority privacy initiatives for theenterprise. Recent accomplishments include the centralization ofPrivacy Officer roles within the EPO to create a more streamlined
governance structure and the continued enhancement ofenterprise privacy tools, processes and controls that promoteorganizational efficiencies and consistency. Other key events
included the implementation of compliance work plans for
newly-enacted comprehensive state and international privacy
laws and the continued implementation of our cross-borderdata transfer strategy for the sharing of personal data.
The EPO is also continuing to drive
awareness and provide training on the
rapidly evolving privacy landscape andbuild greater connectivity with key
stakeholders across the enterprise.

In May, the EPO held its Annual Privacy Summit over a three-day
period, discussing key privacy topics with Security and Privacy
Officers from across the enterprise, as well as marketing teams,
indirect procurement, human resources, and other business teams.
Additionally, the EPO met with Security and Privacy Officers on aquarterly basis to raise awareness of Global Privacy Program initiatives,and provided training within certain business units on privacy topics
relevant to their specific areas and business initiatives.
The EPO continues to enhance the use of Radar First, an automatedtool adopted in fiscal 2022 that enables greater transparency, tracking
and analytics for all data privacy issues. The tool stores all incidents
in one place and helps simplify all stages of incident management,
including discovery, triage and investigation; regulatory research;
third-party contracts; team collaboration; risk assessment andbreach decision; remediation and notification; and analysis andbenchmarking. The EPO also continues to utilize the OneTrustsoftware platform for its record of processing activities.

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Governance, ethics and compliance

Employee cybersecurity training
The Information Security Awareness team, part of our enterprise
IT organization, ensures that employees have the information andknowledge they need to help keep data secure.
Each year, all global employees who have a Cardinal Healthemail address are required to complete an online training
on cybersecurity best practices and review internal
information security policies. Issues covered in the
training include electronic device management,
creating strong passwords, social engineering scams,
and identifying phishing emails.

Each year, the team hosts events throughout Cybersecurity
Awareness Month in October. In past years, programming has
focused on employees in the U.S., but in fiscal 2023, cybersecurity
activities included employees in Europe, the Middle East, Africa
and Latin America. Additionally, we host a “Ninja Series” eachspring and follow that series with an outside speaker event in thesummer. The Ninja Series covers a wide variety of cybersecurity
topics and is open to all Cardinal Health employees. Our summer
speaker event highlights emerging topics; in fiscal 2023, thesubject was generative artificial intelligence (AI) and its impact on
security trends and risks.

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60

+
2,200
,
The fiscal 2023 Ninja Series
drew more than 2,200
attendees, an increase overfiscal 2022 participation.

Guarding against phishing schemes
In addition to providing training on identifying
phishing schemes, the Information Security
Awareness team also regularly sends employees
test emails that look like phishing emails. Whenemployees forward these emails to the team’s “Keep IT Safe” mailbox
without clicking on any of the links, the team knows that training
has been successful. Those employees who do click on the links are
required to complete additional training.
Our Customer Service representatives in particular are targets ofphishing schemes; they get additional customized training from theInformation Security Awareness team. Those on the Finance andTreasury teams also get specialized training relevant to their workand the types of phishing emails they are likely to receive. And,because phishing schemes continue to grow more sophisticated,the Information Security Awareness team regularly increases thecomplexity of its phishing test emails.

The team also publishes Free Tip Friday
notices each week on our enterprisesocial networking service, providing
guidance on keeping information secure
at trade shows and conferences, staying cybersafe
during vacations, avoiding phishing schemes and more.

The team also enlists the help of our Security Ambassadors.
These Ambassadors are Cardinal Health employees fromacross the globe who hold trainings, publish articles,
and provide information security tips to their teams intheir local languages. This ensures we are able to better
understand our risks and make personal connections formore impactful results.

Cardinal Health's teamof Security Ambassadors
around the globe

30%

are actively engaged in upskilling our workforce
to combat information security threats.

Our phishing program's annual report rate averaged

in fiscal 2023,
surpassing theindustry standard.

FY23 ESG Report

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Business ethics and compliance
At Cardinal Health, our culture
reinforces our value of integrity:
Employees hold themselves to thehighest ethical standards so our customers,
suppliers, shareholders and fellow employees
can trust us to do the right thing and enable
us to be healthcare’s most trusted partner.

Our program is informed by thefundamental elements of aneffective compliance program:

7

01 Written policies and procedures
02 Designated compliance officer
and compliance committee

Our compliance program is aligned with our company values andtakes into consideration business operations and associated risks
to ensure that we comply with all applicable laws and regulations.
Our Ethics and Compliance team leads this work and reports
directly to our Chief Legal and Compliance Officer with oversightfrom the Risk Oversight Committee of the Cardinal Health Boardof Directors.
The Ethics and Compliance team works in close partnership withbusiness leaders to implement our compliance program andfoster a culture of compliance throughout our operations.

03 Training and education
04 Effective lines of communication
05 Internal auditing and monitoring
06 Enforcement of standards
according to guidelines

07 Prompt corrective actions
for problems

We continually evaluate and modify
our compliance program based onchanging regulatory expectations.
The work of the Ethics and Compliance team is overseen
by a Compliance Committee comprising the executive
leadership team, which includes our CEO and his direct
reports. Chaired by our Chief Legal and Compliance Officer,
the Compliance Committee provides guidance on theimplementation of the compliance program and monitors
ongoing improvement in the overall processes acrossthe organization that prevent, detect and respond tocompliance risks.
Our Board of Directors has established the Risk OversightCommittee to assist the Board in overseeing the Ethics andCompliance program and in monitoring risks associatedwith Cardinal Health's operations, including, without
limitation, risks associated with ethical, quality and legal
and regulatory compliance matters, other than legal andregulatory requirements related to audit, accounting andfinancial disclosure matters and related internal matters,
which are overseen by the Board’s Audit Committee.

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Standards of Business Conduct
The Cardinal Health Standards of Business Conduct outline the standards of integrity and responsible conductthat all employees must follow to protect the trust of our suppliers, customers and shareholders.
Employees are directed to use the Standards of Business Conduct asa navigation tool to guide daily decisions and to include consideration of ethics, values,
policies, and laws in the work that they do every day.
Our Standards of Business Conduct are the foundation for responsible work and integrity.
They are authorized and supported by the Cardinal Health Board of Directors andsenior leadership, and available in 11 languages. They are distributed internally to every
employee and are posted on the Cardinal Health website and intranet. View them here.
As part of our global compliance training program, employees are expected to complete
training on the Standards of Business Conduct upon hire and thereafter on an annual basis.

In fiscal 2023, Standards of Business Conduct training was deployed to all exempt andnon-exempt employees through our web-based training platform. Of those assigned,
96% completed the course in fiscal 2023. For those employees who do not have accessto Cardinal Health’s web-based training platform, the Ethics and Compliance team works
to deploy the training in a method that best supports their learning environment, throughlive training or training videos, for example.
In addition to our Standards of Business Conduct, Cardinal Health has numerous policies
and procedures that support the principles in our Standards of Business Conduct.

Training and awarenessOur global training and awareness program seeks to equip our
employees with the information they need to make wise decisions
that foster a culture of trust and responsible business conduct.
The information is delivered through web-based training programs,
compliance-focused communications, or both.
Cardinal Health employees receive training upon hire and annually thereafter throughour web-based training platform on a core curriculum that addresses applicable risks
within our businesses. Compliance Business Partners supplement our web-based
training with additional virtual or in-person training sessions based on specific areas ofrisk within those business units. They also help augment compliance engagement andreinforce training topics.

In fiscal 2023, the Ethics and Compliance team increased the number of visits to ourglobal facilities with the intended goal of raising compliance awareness, conducting
compliance culture assessments, and fostering relationships with operational
employees. These site visits include training for supervisors and employees and provide
opportunities for employees to ask questions, raise concerns and meet with Ethics andCompliance representatives one on one.
Communications and messaging about ethics and integrity, including newslettersand articles about compliance topics published on our intranet, help reinforce ourculture of encouraging employees to do the right thing. In fiscal 2023, the Ethics andCompliance team conducted a companywide “Compliance Week” event, with multiple
written communications and video messages from leadership, focused on inspiring acommitment to compliance and discussions of how compliance enables the business.

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Customers and communities

Interactions with customers and healthcare professionals
In connection with Cardinal Health business activities, we interact with customers, healthcare
professionals, and government officials in various ways, including the promotion and sale ofproducts and services.
Our interactions with customers and healthcare professionals
are monitored to align with all laws. Cardinal Health prohibits
any transfers of value to a customer, healthcare professional or
government official if even one purpose of the transfer of value isto induce the purchase, use, lease or recommendation of products
or services offered by Cardinal Health. As part of our Ethics andCompliance program, Compliance Business Partners train, monitor
and oversee compliance with all such interactions.

Cardinal Health has also adopted the AdvaMed Code of Ethics
on Interactions with Healthcare Professionals. All policies relating
to interactions with customers and healthcare professionals aredesigned to align with laws, regulations, and industry guidelines
issued by trade associations such as AdvaMed.
In the U.S., we annually report transfers of value made to certain
healthcare professionals and organizations as required by law, andthese transfers of value are published publicly on the Centers for
Medicare and Medicaid Services (CMS) website. In addition, we report
payments and other transfers of value made to healthcare professionals
outside of the U.S., as required by applicable country laws.

Bribery and corruption prevention
As part of Cardinal Health’s global footprint, we operate throughextended distribution channels and supply chains while remaining
steadfast in our commitment to following the highest ethical andbusiness standards and prohibiting all forms of bribery and corruption.

Cardinal Health’s anti-bribery and anti-corruption program focuseson compliance with the U.S. Foreign Corrupt Practices Act, the U.K.
Bribery Act and other country-specific anti-corruption laws.
In addition, our Standards of Business Conduct and Anti-Bribery
and Anti-Corruption (ABAC) Guide prohibit bribery or otherwise
attempting to obtain any improper advantage from government
officials or others with decision-making power or influence over any
aspect of our business.

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Third-party compliance risk management program
Cardinal Health engages third party intermediaries in several countries to distribute and sell our
products. Therefore, we maintain a robust third-party compliance risk management program
aimed at mitigating bribery and corruption risks that may arise from interactions with certain
third parties such as distributors, resellers and other potentially high-risk vendors.
Prior to engaging any new third-party intermediary, the Ethics
and Compliance team performs due diligence on that third party
to ensure they have not had any ethical issues or been sanctioned
in the past for bribery or related matters.
Cardinal Health expects third-party intermediaries to comply with
our Vendor Code of Conduct, Anti-Bribery and Anti-Corruption
Guide for Third Party Sellers working for or on behalf ofCardinal Health and with all applicable anti-bribery and anticorruption laws. In addition to this, Cardinal Health has adopted
industry ethical codes and best practices that our third-party
intermediaries should also follow with respect to their sales andmarketing activities.
Cardinal Health requires that third parties have the necessary internal
processes to help ensure their employees and representatives follow
the respective industry standards and prohibit and help prevent
bribery and other crimes from occurring within their organization.

Third-party intermediaries must train their employees andrepresentatives who directly or indirectly transact business with us oron our behalf about their responsibilities to avoid and report bribery
or other violations of the law or our standards. Cardinal Health’s
Anti-Bribery and Anti-Corruption Training and Certification Programis provided to third-party intermediaries through an online tool, or inperson whenever possible. Third-party intermediaries are expected
to complete their training before starting work for or on behalf ofCardinal Health, and refresher training is provided periodically.
To continuously assess the strength and effectiveness of our thirdparty compliance risk management program, we engage an externalvendor to audit certain third-party intermediaries to ensure theiradherence to ethical business practices and standards. These audits
focus on anti-bribery, anti-corruption, and the regional or local ethicalcodes (such as those from AdvaMed, MedTech, APACMed, MECOMED
and others).

Risk assessments and monitoring
Cardinal Health believes an effective compliance program is one that
conducts periodic risk assessments to determine the effectivenessof its program and to proactively identify risks. The Ethics andCompliance team’s risk assessment program comprises internal risk
assessments led by members of the Ethics and Compliance team
who work day-to-day with Cardinal Health’s various businesses andperiodic risk assessments conducted by third parties. The current
Ethics and Compliance team’s internal risk assessment framework
includes risk identification through a variety of methods such as

surveys, interviews and reviews of internal policies and processes,
Business Conduct Line reporting, investigations, internal auditing
and regulatory enforcement trends; documentation of risk
assessments; and implementation of remediation action plans.
To continue building our capabilities in this area,
the Ethics and Compliance team is implementing a newrisk assessment tool in fiscal 2024 to enhance the risk
assessment process with an automated component.

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Business Conduct Line
The Business Conduct Line is available 24 hours a day, 365 days a year to employees and third
parties to confidentially and, if desired, anonymously, raise issues about the business conduct
of Cardinal Health and its employees.
The Ethics and Compliance team encourages and promotes a“speak-up” culture, free from retaliation. If employees want to raiseissues, voice concerns, or are in need of guidance, there are several
internal avenues available for them to do so, including the BusinessConduct Line.
In addition to calling the Business Conduct Line, employees andthird parties may submit written concerns regarding other matters,
including ethical, quality and legal and regulatory compliancematters, to the Senior Vice President of Ethics and Compliance, to
the Chief Legal and Compliance Officer or to the chairperson of the
Cardinal Health Risk Oversight Committee of the Board of Directors,
c/o Chief Legal and Compliance Officer, 7000 Cardinal Place, Dublin,
OH 43017 USA.
Employees and third parties may also submit written concerns
regarding accounting, internal controls, financial reportingor auditing matters to the Senior Vice President of Ethics andCompliance, to the Chief Legal and Compliance Officer or tothe chairperson of the Cardinal Health Audit Committee of theBoard of Directors, c/o Chief Legal and Compliance Officer,
7000 Cardinal Place, Dublin, OH, 43017 USA.

All reports will be treated confidentially, except where disclosure
is required to properly investigate the issue or where disclosure ismandated by law. All issues submitted are entered into an electroniccase management system for tracking and communication.
The Cardinal Health Internal Investigations team is resourced bydedicated individuals with diverse and experienced backgrounds
in law, procurement, human resources and e-discovery. This teamis responsible for the management and thorough investigationand documentation of matters escalated through the BusinessConduct Line as well as other reporting channels. Cardinal Health’s
investigations process includes a review of the misconduct and actions
taken to ensure that discipline is applied and documented consistently.

U.S. Business Conduct Line

800.926.0834

Find an international number »Multilingual representatives available.

FY23 ESG Report

Overview |Our people|

Customers and communities

About this report andcautionary statement
This report provides qualitative and quantitative information regarding performance on our environmental, socialand governance (ESG) priorities and other related information in fiscal 2023 (July 1, 2022 through June 30, 2023)
or for other periods where noted.
When we use the terms such as “Cardinal Health,” “company,” “enterprise,”“we,” “us,” or “our,” in this report, we mean Cardinal Health, Inc., and its
majority-owned and consolidated subsidiaries, unless noted otherwise.
In this report, the use of the term “material” and other similar terms is
intended to reflect our priority ESG topics and risks. We are not using
such terms as they are used under securities or other laws of the UnitedStates or any other jurisdiction or as these terms are used in the context
of financial statements and financial reporting. Therefore, the inclusionof information or the absence of information in this report should not be
construed to represent Cardinal Health’s belief regarding the financial
impact of that information or its importance to shareholders and otherstakeholder groups.
This report includes estimates, projections and statements relating to ourbusiness plans, objectives and expected results regarding ESG-related
priorities and goals that are “forward-looking statements” within themeaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements generally are identified by the words “believe,”“project,”“expect,”“anticipate,”“estimate,”“intend,”“potential,”“strategy,”“future,”“opportunity,”“commit,”“plan,”“goal,”“may,”“should,”“could,”“will,”“would,”“will be,”“will continue,”“will likely result” and similar expressions.
Forward-looking statements are based on current expectations andassumptions that are subject to risks and uncertainties that may cause
actual results to differ materially.

The most significant of these risks and uncertainties are described in “Risk Factors”
in Cardinal Health’s most recent Form 10-K and other related information filedwith the United States Securities and Exchange Commission (SEC). Forwardlooking statements in this report speak only as of the date of this document and
we undertake no obligation to update or revise any forward-looking statement.
In addition, climate-related science, data and methodologies are rapidly evolving;those underlying our climate-related analysis and strategy remain subject
to evolution over time. For example, we believe the methodology of carbon
accounting will continue to improve over time, especially as it relates to Scope 3
GHG emissions. As a result of improvements to the quality and completeness ofour data and updates to our methodology over time, we may include informationin future disclosures that differ from those contained in this report or restate
information contained in this report.
We report in accordance with the Global Reporting Initiative (GRI): Universal
Standards and Sustainability Accounting Standards Board (SASB) reporting
guidelines with respect to our material ESG topics and risks. Given the scope of
our core business activities, we report to both the SASB Health Care Distributor
and Medical Equipment and Supplies standards. We also report informationaligned with the Task Force on Climate-related Financial Disclosures (TCFD)
framework. Our GRI Content Index, SASB disclosures and TCFD disclosures areavailable in our Reporting indices. Additionally, we engaged ERM CVS to provide
limited assurance over select environmental and DE&I metrics disclosed within
this report. Please see our fiscal 2023 assurance statement here.

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ReportingindicesIn this section:

68 G lobal Reporting
Initiative (GRI) Index

97  Task Force on Climate-Related
Financial Disclosures (TCFD) Index

91 S ustainability AccountingStandards Board (SASB) Index

102 Basis of reporting|

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Global Reporting Initiative (GRI) Index
Reference

MetricDisclosure

Boundary, Assumptions, and Estimations

Business operations are based on permanent employee work location.

GRI 2 – General Disclosures 2021

27

GRI 2-1

Organizational details

Cardinal Health, Inc. is a U.S. publicly traded Ohio corporation headquartered in Dublin, Ohio, with business operations in more than 30 countries globally.

GRI 2-2

Entities included in theorganization’s sustainability
reporting

As used in this report, "we," "our," "us," "Cardinal Health" and similar pronouns refer to Cardinal Health, Inc., and its majority-owned and consolidated
subsidiaries, unless the context requires otherwise. For a list of majority-owned and consolidated subsidiaries, please refer to Exhibit 21.1 within
our Form 10-K.

GRI 2-3

Reporting period, frequency
and contact point

Unless noted otherwise, the enclosed ESG report and supporting indices cover Cardinal Health’s fiscal 2023 (July 1, 2022-June 30, 2023), therebyaligning with our company’s financial reporting period.
Please submit inquiries regarding the information included within this report and supporting indices to: ESGinquiries@cardinalhealth.com

GRI 2-4

Restatements of
information

As noted earlier in this Report, the ESG team baselined our Scope 3 GHG emissions as a part of submitting our science-based target to the Science-Based
Targets initiative (STBi) for validation. During that time, we also elected to review our inventory management plan and base year calculations for Scope 1
and 2 location-based GHG emissions and identified opportunities to improve the precision of our inventory.
As a result of this review, Cardinal Health elected to restate our 2019 Scope 1 and 2 GHG emissions in this report, due to the Cordis divestiture and the
addition of new emissions sources. Restated numbers can be seen in the table below. Additionally, market-based emissions were calculated and are to
be used to track progress against our goal. These figures were subject to third-party assurance and included in our fiscal 2023 assurance statementfrom ERM CVS. The assured, restated base year values for Scope 1 and 2 GHG emissions were also included in our submission to SBTi as a part of ourtarget validation application.
FY19 restated

Location-based mtCO2e

Scope 1

172,890

Scope 2

289,392

Market-based mtCO2e
265,989

Per the Greenhouse Gas Protocol Corporate Standard, direct CO2 emissions from the combustion of biomass shall not be included in Scope 1 but
reported separately. Cardinal Health’s FY19 direct CO2 emissions from the combustion of biomass is not included in figures reported here in GRI 2-4,
but is noted separately here as 18,927 mtCO2e.

27

GRI 2-5External assurance

Cardinal Health engaged an external, third-party assurance provider to verify our Scope 1 and 2 location- and market-based GHG emissions,water withdrawal, global gender diversity and U.S. racial and ethnic diversity, as well as progress against our aspirational representation targets.
We have indicated the specific metrics that were assured by placing a double asterisk next to the value (**). Please see our fiscal 2023 assurance
statement here.

GRI 2-6

Activities, value chain andother business relationships

Cardinal Health is a distributor of pharmaceuticals, a global manufacturer and distributor of medical and laboratory products, and a providerof performance and data solutions for healthcare facilities. The diverse set of products and services we offer our customers requires a globallyinterconnected value chain. For more information on the specific activities, products, services, and markets please see the Business section of
our fiscal 2023 Form 10-K (pages 28-35).

Cardinal Health includes the year in which the GRI Standard was released to note the version we are disclosing against. Please see GRI 2-3 for our reporting period.

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GRI 2 – General Disclosures 2021 (continued)
GRI 2-7

Employees

Employees by type and gender

FemalePermanent
employees

Temporaryemployees

Non-guaranteed
hours employees

Full-time
employees

Part-time
employees

23,800670

476

23,920

1,026

Male

23,344265

236

23,001844

Non-binary (U.S. only)

24

0

0

24

4

Not declared

232

34

19

265

16

Total

47,400969

731

47,2101,890

Workers who are not
employees

Permanent
employees

Temporaryemployees

Non-guaranteed
hours employees

Full-time
employees

Part-time
employees

U.S.

29,971

85

731

28,965

1,822

Outside U.S.

17,429884

018,24568

Total

47,400969

731

47,2101,890

Employee by type and region

3,786

Light industrial

2,652

Professional

2,103

Quality & regulatory, and engineering

238

Cardinal Health International India

62

Total Contractors
GRI 2-9

Governance structure andcomposition

Number of contractors

Information technology

8,841

Cardinal Health’s Board of Directors represents the highest governance body at the organization and comprises 11 directors with relevant skills andexperience that contribute to a well-functioning Board effectively overseeing our strategy and management. On page 57 of this report, we provide a fulllisting of our Board members as well as their diversity and the committees on which each of them serve.
The management of Cardinal Health’s ESG function receives oversight from the Board’s Governance and Sustainability Committee, which is specificallyoutlined in the Committee’s charter. However, the full Board discusses significant ESG risks, and each standing Board committee has oversight of select risks.
For more details regarding the composition of the Board and its committees, please see our 2023 Proxy Statement.

GRI 2-10

Nomination and selection of
the highest governance body

Permanent employees are defined as regular employees (both full- and part-time) or employees
not otherwise identified as on-call (employees that work “as needed”), Intern, or Global Assignee(employees that have taken an assignment in a country other than their normal work country). Note
some part-time employees are not permanent employees. Cardinal Health discloses human capital
information in our Form 10-K based on our permanent employee population, which agrees to thefigures presented herein.
Temporary employees: Non-U.S. Temporary/Fixed Term (employees who are paid directly by thecompany and whose employment is for a limited period – not valid in the U.S.) and interns.
Non-guaranteed hours employees: on-call.

Employee by type and region

GRI 2-8

Cardinal Health’s population of employees is calculated based on data pulled from our HR system ofrecord in September 2023 for the population of employees as of June 30, 2023.

For information regarding the nomination and selection process for Cardinal Health’s Board of Directors, please see our2023 Proxy Statement.

Full time employees: Employees who work 30 or more hours per week.
Part time employees: Employees who work less than 30 hours per week.

Workers who are not employees are defined as the number of contractors on assignment at the end of
fiscal 2023 (i.e., June 30, 2023).
Contractors are workers whose scope is based on a defined contract and who are not permanent or
temporary employees of Cardinal Health.

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GRI 2 – General Disclosures 2021 (continued)
GRI 2-11

Chair of the highest
governance body

Our Chairman of the Board of Directors is Gregory B. Kenny, who is not a senior executive of Cardinal Health.

GRI 2-12

Role of the highest
governance bodyin overseeing themanagement of impacts

The management of Cardinal Health’s ESG function receives oversight from the Board’s Governance and Sustainability Committee, which is specificallyoutlined in the Committee’s charter.

GRI 2-13

Delegation of responsibility
for managing impacts

For information on Cardinal Health’s ESG governance model to manage impacts throughout the organization, please see the
ESG governance section within this report.

GRI 2-14

Role of the highest
governance body insustainability reporting

The Board's Governance and Sustainability Committee has formal oversight of ESG matters such as environmental, social, and political risks, andreviews the ESG report prior to publication. Other standing Board committees have oversight of other specific ESG-related areas, such as human capitalmanagement.

GRI 2-15

Conflicts of interest (within
highest governance body)

Our Board of Directors has adopted written Standards of Business Conduct that outline our corporate values and standards of integrity and behavior,including conflicts of interest. Please see pages 14–15 of our Standards of Business Conduct to learn more about how we seek to prevent andmitigate potential conflicts of interest.

GRI 2-16

Communication of criticalconcerns

As noted on page 9 of our Standards of Business Conduct, items of critical concern regarding Cardinal Health’s business practices are communicatedthrough our Business Conduct Line.

GRI 2-17

Collective knowledge of thehighest governance body

Please see the Director Skills Matrix on page 20 of our 2023 Proxy Statement for more information on the collective knowledge of our Board of
Directors.

GRI 2-18

Evaluation of performanceof the highest governancebody

Please see page 30 of our 2023 Proxy Statement to learn more about our Board of Directors’ performance evaluation process.

GRI 2-19

Remuneration policies

Please see pages 34–35 of our 2023 Proxy Statement to learn more about director compensation and pages 40–71 to learn more about named
executive officer compensation.

As described in the proxy statement and consistent with U.S. Securities and Exchange Commission(SEC) requirements, named executive officers include the CEO, CFO, CEO of the Pharmaceutical
Segment, CEO of the Medical Segment, and Chief Legal and Compliance Officer.

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GRI 2 – General Disclosures 2021 (continued)
GRI 2-20

Process to determine
remuneration

Please see pages 34–35 of our 2023 Proxy Statement to learn more about director compensation and pages 40–71 to learn more about named
executive officer compensation.

GRI 2-21

Annual total compensation
ratio

As noted on page 67 of our 2023 Proxy Statement, “the median annual total compensation of all our employees (other than the CEO) was $69,024.
Mr. Hollar's annual total compensation for fiscal 2023 for purposes of the pay ratio disclosure was $18,536,924. Based on this information, for fiscal
2023, the ratio of the compensation of the CEO to the median annual total compensation of all other employees was estimated to be 269 to 1.”

GRI 2-22

Statement on sustainable
development strategy

See letter from CEO Jason Hollar at the beginning of this report.

GRI 2-23

Policy commitments

Cardinal Health’s Standards of Business Conduct is our policy for responsible business conduct. It communicates both our company’s core values andstandards to our employees and contractors for how we interact with each other, customers, vendors, and all other third parties. Employees worldwide,from our senior leadership to our sales and marketing departments to our warehouse and plant employees, are trained on our Standards of BusinessConduct when they join the company and certify compliance annually thereafter. For fiscal 2023, 96% of all eligible employees and contractors
certified compliance through completing our Standards of Business Conduct training.

GRI 2-24

Embedding policy
commitments

Cardinal Health builds on our Standards of Business Conduct and guidance when we implement company-wide policies and procedures thatprovide requirements for doing our jobs in compliance with the laws and regulations applicable to each business unit’s operations. From ourmanufacturing locations to our distribution centers to our sales and marketing teams, these policies often require detailed procedures to ensure
appropriate review and approval of various regulated activities and activities that involve a transfer of value to third parties, specifically customers andhealthcare professionals.

GRI 2-25

Processes to remediate
negative impacts

Cardinal Health provides all stakeholders a confidential and anonymous platform to raise issues about business conduct of Cardinal Health and its
employees. All reports will be treated confidentially by our Ethics and Compliance division, except where disclosure is required to properly investigate
the issue or where disclosure is mandated by law. All issues submitted are entered into an electronic case management system for tracking andcommunication.

GRI 2-26

Mechanisms for seeking
advice and raising concerns

As noted on page 9 of our Standards of Business Conduct, items of critical concern regarding Cardinal Health’s business practices can be raised
through our Business Conduct Line.

GRI 2-27

Compliance with laws andregulations

We report any significant instances of non-compliance with laws and regulations in our Forms 10-K and 10-Q filed with the SEC to the extent required
by SEC rules. Please see our Investor Relations website for access to corporate filings.

GRI 2-28

Membership associations

Cardinal Health plays an active role in several membership and advocacy associations globally. For a full listing of trade associations to which we paid
more than $25,000 in 2022, please see our Political Activities and Contributions Report

As described in the proxy statement and consistent with U.S. Securities and Exchange Commission(SEC) requirements, named executive officers include the CEO, CFO, CEO of the Pharmaceutical
Segment, CEO of the Medical Segment, and Chief Legal and Compliance Officer.

Cardinal Health updates our Political Activities and Contributions report on a calendar year basis.
Therefore, the report link will provide our data for 2022.

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GRI 2 – General Disclosures 2021 (continued)
GRI 2-29

Approach to stakeholder
engagement

Some of the ways we engage with key stakeholders include:• Employees: providing regular town halls and leadership panels that help drive diversity, equity and inclusion, talent development and retention, andstrategies and goals; engaging employees and gathering feedback through a biennial employee engagement survey, more frequent pulse and life
cycle surveys, and connecting with employees at all levels through internal social media websites, newsletters, digital signage, and posters.
• Investors and other interested parties: disclosing against standards and frameworks (e.g., SASB, TCFD, GRI) and participating in the ESG surveys (e.g.,
CDP, EcoVadis, Sustainalytics) that are significant to them; engaging in investor engagement calls and the Annual Meeting of Shareholders.
• Customers: assessing satisfaction through periodic surveys and responding to ESG surveys and inquiries.
• Suppliers and partners: engaging to improve our responsible procurement and sourcing practices, increase employee well-being, and holdourselves and our suppliers to high ethical standards.

GRI 2-30

Collective bargaining
agreements

As disclosed in our fiscal 2023 Form 10-K, approximately 11% of total employees are covered by a collective bargaining agreement.

GRI 3 – Material Topics 2021
GRI 3-1

Process to determinematerial topics

To determine our material ESG topics, the ESG team partnered with a third-party consulting firm to perform the following steps:
1. Through peer and industry research, we aligned on a list of topics relevant for the company.
2. We interviewed and surveyed internal and external stakeholders, including Cardinal Health’s executive leaders, other key business, functional and
ESG leaders across the company, customers, investors, outside experts, and associations.
3. We scored, prioritized, and ranked the topics based on the company’s priorities and strategies, relevant reporting frameworks, global goals, industry
association and collaborative initiatives, and existing and potential regulation.
4. We validated the results with internal stakeholders and then reviewed the final list of ESG priorities with our internal ESG Governance Committee
and the Governance and Sustainability Committee of our Board of Directors.
Please see the ESG topics and priorities section of this report for more information.

GRI 3-2

List of material topics

Within the ESG topics and priorities section of this report, we disclose the full list of material ESG topics and how we’ve organized them to effectively
conduct strategic planning and risk management activities.

GRI 3-3Management ofmaterial topics

The enclosed ESG Report and accompanying indices were organized based on our list of material ESG topics, so we could directly describe theactual and potential, positive and negative impacts that Cardinal Health has on the environment, society, and other stakeholders. Throughout these
disclosures, we include descriptions of business relationships, company policies and commitments, and actions taken to manage each topic and therelated impacts. To determine the effectiveness of these policies and actions, we measure and disclose within this report performance metrics for each
ESG topic that align with GRI, SASB, and TCFD standards and frameworks.

The percentage of global employees covered by a collective bargaining agreement is calculated bytaking the number of employees covered by a collective bargaining agreement that was still valid as ofthe end of fiscal 2023 (i.e., June 30, 2023) and dividing that by the total number of global permanent
employees (GRI 2-7).

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GRI 201 – Economic Performance 2016
GRI 201-1

Direct economic value
generated and distributed

For information on Cardinal Health’s financial performance, including the generation and distribution of economic value, please see our Financial
Statements starting on page 51 of our 2023 Form 10-K.

GRI 201-2

Financial implications
and other risks andopportunities due toclimate change

As noted in our TCFD Index, Cardinal Health has performed a qualitative analysis to identify relevant climate-related risks and opportunities forconsideration during strategic, financial, and business planning activities. We have not yet performed a quantitative scenario analysis to determine thespecific financial implications of climate-related risks and opportunities, but plan to do so in fiscal 2024.

GRI 201-3

Defined benefit plan
obligations and otherretirement plans

Cardinal Health offers a 401(k) defined contribution plan to all regular U.S. employees. We offer a full suite of investment options, and participants
can defer into pre-tax and Roth accounts up to the annually defined IRS contribution limits, while benefitting from a competitive company match.
Internationally, all countries have government mandated retirement programs; some schemes are defined benefit or defined contribution. In many
countries, Cardinal Health also contributes to supplemental retirement programs on behalf of employees.

GRI 201-4

Financial assistance received
from government

For information on Cardinal Health’s financial performance, please see our Financial Statements starting on page 51 of our 2023 Form 10-K.

GRI 202 – Market Presence 2016
GRI 202-1

Ratios of standard entry level
wage by gender comparedto local minimum wage

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

GRI 202-2

Proportion of senior
management hired fromthe local community

55% of senior management

Senior management is defined as all permanent employees who are at a Vice President level and above
within the management and executive tracks, excluding Kinray employee details.
Local community is defined by work address in our HR system of record and includes the Dublin, Ohio,
headquarters or other Central Ohio Cardinal Health locations.

GRI 203 – Indirect Economic Impacts 2016
GRI 203-1

Infrastructure investments
and services supported

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

GRI 203-2

Significant indirect
economic impacts

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

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GRI 204 – Procurement Practices 2016
GRI 204-1

Proportion of spending on
local suppliers

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

GRI 205 – Anti-corruption 2016
GRI 205-1

Operations assessed forrisks related to corruption

Our Anti-Bribery and Anti-Corruption Policy identifies requirements for employee conduct, and we train all employees and contractors on thoserequirements. Third-party sellers are bound by contractual provisions that oblige them to follow our Standards of Business Conduct and how toapply them when transacting business with Cardinal Health or when acting on our behalf. We regularly seek guidance from outside legal experts andconsultants to make improvements to our anti-bribery and anti-corruption program.
We subject third-party intermediaries who market or sell products on our behalf to regular compliance due diligence, training, and monitoring. We
also implement a strict due diligence, training, and monitoring system for our higher risk vendors across the globe; currently, we are enhancing ourcompliance program for our suppliers and contract manufacturers.
Our Ethics and Compliance team conducts risk assessments and uses data from various compliance systems to monitor activity levels in key
compliance risk areas. In addition, our Internal Audit department conducts regular Foreign Corrupt Practices Act (FCPA) audits in our commercialorganizations, manufacturing, and sourcing locations.

GRI 205-2

Communication andtraining about anticorruption policies andprocedures

All employees and contractors are assigned a training, whether in person or online, on our Standards of Business Conduct. The online training course
is deployed to any new hire and annually thereafter, and includes scenario-based situations, knowledge checks, policy links and other information
on anti-bribery and anti-corruption, conflicts of interest and privacy and confidential information. The online training course was deployed in 17
different languages in 32 countries in all regions – U.S., Canada, LATAM, EMEA and APAC. Those in manufacturing and distribution centers mostly
received in-person trainings, with certifications kept locally. We actively monitor training completions and follow up with reminders to employees
and leadership teams to ensure the online training is completed. For fiscal 2023, 96% of all eligible employees and contractors certified compliancethrough completing our Standards of Business Conduct training.

GRI 205-3

Confirmed incidents ofcorruption and actions
taken

We report any significant incidents of corruption, or alleged corruption, and actions taken in our Forms 10-K and 10-Q filed with the SEC to the extent
required by SEC rules. Please see our Investor Relations website for access to corporate filings.

GRI 206 – Anti-competitive Behavior 2016
GRI 206-1

Legal actions foranti-competitive behavior,anti-trust, and monopoly
practices

We report any significant legal proceedings concerning alleged anti-competitive behavior, anti-trust and monopoly practices in our Forms 10-K and
10-Q filed with the SEC to the extent required by SEC rules. Please see our Investor Relations website for access to corporate filings.

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GRI 207 – Tax 2019
GRI 207-1

Approach to tax

For information on our approach to tax during fiscal 2023, please see our Financial Statements and Notes to Consolidated Financial Statements startingon page 51 of our 2023 Form 10-K.

GRI 207-2

Tax governance, control,
and risk management

For information on tax governance, control and risk management activities during fiscal 2023, please see our Financial Statements and Notes toConsolidated Financial Statements starting on page 51 of our 2023 Form 10-K.

GRI 207-3

Stakeholder engagement
and management ofconcerns related to tax

For information on stakeholder engagement and management of concerns related to tax during fiscal 2023, please see our Financial Statements andNotes to Consolidated Financial Statements starting on page 51 of our 2023 Form 10-K.

GRI 207-4

Country-by-country
reporting

For information on country-specific reporting on tax, please see our Financial Statements and Notes to Consolidated Financial Statements starting on
page 51 of our 2023 Form 10-K.

GRI 301 – Materials 2016
GRI 301-1

Materials used by weight orvolumeCardinal Health has elected not to disclose performance on this metric for fiscal 2023.

GRI 301-2

Recycled input materials
used

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

GRI 301-3

Reclaimed products andtheir packaging materials

Sustainable Technologies™, a Cardinal Health business, is a leading provider of single-use device collections, reprocessing, and recycling services in the
U.S. The business reprocesses pneumatic tourniquet cuffs, lateral air transfer mats, compression sleeves, disposable lead wires, pressure infusion bags,
pulse oximetry sensors and more. The products to be reprocessed are inspected, sorted, and cleaned, then tested, inspected, disinfected, and sterilized,
and finally, redistributed to healthcare locations. In fiscal year 2023, the team collected approximately 17.05 million single use devices which diverted
5.24 million pounds of waste from landfill.

Waste diversion is calculated by multiplying the average weight of all devices eligible for collection andreprocessing by the number of single use devices collected during the reporting period.

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Reporting indicesDisclosure

Boundary, Assumptions, and Estimations

Total energy consumption (non-renewable and renewable): 4,659,773 Gigajoule (GJ)

Energy consumption within the organization is inclusive of all energy sources consumed by assets
under Cardinal Health's operational control, including diesel, gasoline, jet fuel, liquified petroleumgas (LPG), natural gas, grid-purchased electricity, and solar photovoltaic (PV)-generated electricity.
Renewable energy consumption includes on-site PV generated electricity, green power purchases fromutilities, and a single on-site biomass facility.

GRI 302 – Energy 2016
GRI 302-1

Energy consumption within
the organization

Total non-renewable energy consumption: 4,656,824 GJ
Total renewable energy consumption: 2,949 GJ
Total grid-purchased electricity consumption: 2,176,027 GJ

Cardinal Health reports energy consumption within the organization with actuals that covers 88%
of the operational boundary square footage, and for the first time, is estimating consumption for theremaining 12% where reported data is not available currently. This is done in an effort to provide themost realistic representation of all Cardinal Health operations, while simultaneously acting as a gauge
to continuously improve data reporting coverage.
Conversion factors used:• 2023 Climate Registry Default Conversion Factors (unit conversions)
GRI 302-2

Energy consumption
outside of the organization

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

GRI 302-3

Energy intensity

0.000026 GJ of energy consumption per dollar of revenue

Energy intensity is calculated by dividing total energy consumption (as reported in GRI 302-1) by total
enterprise-wide revenue as reported in our fiscal 2023 Form 10-K.

GRI 302-4

Reduction of energy
consumption

8,885 GJ

Cardinal Health completed 10 LED retrofit projects during fiscal year 2023, reductions calculated
utilizing vendor supplied expected annual savings.

GRI 302-5

Reductions in energy
requirements of products
and services

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

GRI 303 – Water and Effluents 2018
GRI 303-1

Interactions with water as ashared resource

Cardinal Health withdraws, consumes, and discharges water at our locations globally. Most locations, including all distribution centers and pharmacies,
withdraw water via the local municipality or utility. In distribution centers and pharmacies, water is typically used for general office and landscaping
activities. At these locations, water is discharged through the local municipality or utility’s wastewater infrastructure. Manufacturing locations withdraw
water via wells and the local municipality or utility.
To monitor water usage, data is assessed for withdrawal that exceeds a location-specific threshold to reduce water wasted from leaks or to identify
changes in personnel or operational water-related behavior. We also seek opportunities to reduce water withdrawal at our locations.
While Cardinal Health has not established external water-related goals, water withdrawal was included in the scope of our fiscal 2023 assurance
statement.

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Boundary, Assumptions, and Estimations

GRI 303 – Water and Effluents 2018 (continued)
GRI 303-2

Management of water
discharge-related impacts

Cardinal Health internal environment, health and safety (EHS) Standard 10-100: Water Management requires managers of operations with wastewater
discharge to understand their location’s wastewater generation, characterize the properties of that wastewater, and to not discharge that material
unless allowed to do so by a discharge permit. Additionally, the water management standard requires the implementation of several other best
management practices related to water discharge.
In areas without existing discharge regulations, the water management standard sets minimum water quality thresholds for effluent discharges. These
thresholds represent maximum daily concentration limits for typical wastewater parameters such as: oil and grease, total suspended solids (TSS),
biological oxygen demand, chemical oxygen demand, and pH. These concentration limits are based on general discharge conditions often found inindustrial discharge permits issued in locations with wastewater discharge regulations.
Locations in jurisdictions with water quality regulations are required to obtain permits before discharging any effluent. Locations in jurisdictions
without water quality regulations are required to follow the internally developed effluent water quality standards found in the water management
standard.
While we do not specifically consider the profile of the receiving waterbody at each location, our approach ensures that impacts to waterbodies arecompliant when local authorities issue location-specific permits with conditions specific to receiving waterbodies, such as the U.S. National Pollutant
Discharge Elimination System (NPDES) permitting program. For waterbodies located in jurisdictions without water quality regulations, our best
management practices implemented by each location mitigate potential impacts.

GRI 303-3

Water withdrawal

4.65** million cubic meters

Water withdrawal data is captured for locations that receive third-party invoices with metering
infrastructure and owned sub-meters when locations withdraw water from a well or shared location.
This value was included in our fiscal 2023 assurance statement.

GRI 303-4

Water discharge

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

GRI 303-5

Water consumption

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

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Boundary, Assumptions, and Estimations

163,044** mtCO2e

Scope 1 GHG emissions were measured in accordance with the World Resources Institute (WRI)/World
Business Council for Sustainable Development’s (WBCSD), The Greenhouse Gas Protocol: A Corporate
Accounting and Reporting Standard (GHG Protocol). Cardinal Health selected an organizationalboundary based on operational control and direct emissions sources include stationary and mobile
combustion. Fuel sources included in Cardinal Health’s calculation of Scope 1 GHG emissions include
natural gas, gasoline, diesel, jet fuel, and liquified petroleum gas (LPG), and CH4 and N20 from biomass.

GRI 305 – Emissions 2016
GRI 305-1

Direct (Scope 1)
GHG emissions

Per the Greenhouse Gas Protocol Corporate Standard, direct CO2 emissions from the combustionof biomass shall not be included in Scope 1 but reported separately. Cardinal Health’s direct CO2
emissions from the combustion of biomass is not included in figures reported here in GRI 305-1, but isnoted separately here as 31,712 mtCO2e.
Emission factors used:• 2023 Environmental Protection Agency (EPA) Center for Corporate Climate Leadership GHG Emission
Factors Hub
Please see our Basis of reporting for details on boundary, estimations, assumptions, and emission
factors.
Please see our fiscal 2023 assurance statement here.
GRI 305-2

Indirect (Scope 2) GHG
emissions

Location-based method: 222,308** mtCO2e
Market-based method: 220,684** mtCO2e

Scope 2 GHG emissions were measured using both the location- and market-based method in
accordance with the WRI WBCSD GHG Protocol Scope 2 Guidance. Cardinal Health selected anorganizational boundary based on operational control and direct emissions sources include stationary
and mobile combustion.
Cardinal Health calculates Scope 2 emissions with actuals that covers 88% of the operational boundary
square footage, and for the first time, is estimating consumption for the remaining 12% where reported
data is not available currently. This is done in an effort to provide the most realistic representation of
all Cardinal Health operations, while simultaneously acting as a gauge to continuously improve datareporting coverage.
Emissions factors used:• 2023 Environmental Protection Agency (EPA) Center for Corporate Climate Leadership GHG Emission
Factors Hub• 2023 IEA Emissions Factors• 2022 Green-e Residual Mix• 2022 Edison Electric Institute: Electric Company Carbon Emissions and Electricity Mix Reporting
Database for Corporate Customers• 2022 AIB Residual Mix Results
Please see our Basis of reporting for details on boundary, estimations, assumptions, and emission
factors.
Please see our fiscal 2023 assurance statement here.

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Boundary, Assumptions, and Estimations

GRI 305 – Emissions 2016 (continued)
GRI 305-3

Other indirect (Scope 3)
GHG emissions

Category number

Relevant Scope 3 categories

Emissions (mtCO2e)1

Purchased goods and services

34,966,010

2

Capital goods

29,6663

Fuel- and energy-related activities

94,193

4

Upstream transportation and distribution

2,460,995

5

Waste generated in operations

35,736

6

Business travel

16,164

7

Employee commuting

34,864

8

Upstream leased assets

990 location-based method (LBM)
1,024 market-based method (MBM)11

Use of sold products

35,19312End-of-life treatment of sold products

240,942

13

Downstream leased assets

6,943 (LBM)
6,592 (MBM)

15

Investments

10,894

Please see our Basis of reporting for details on boundary, estimations, assumptions, and emission
factors.

GRI 305-4

GHG emissions intensity

0.000002 mtCO2e / USD

Emissions intensity is calculated by dividing the sum of Scope 1 and Scope 2 GHG emissions under
the location-based method (as reported in GRI 305-1 and 305-2) by total enterprise-wide revenue asreported in our fiscal 2023 Form 10-K.

GRI 305-5

Reduction of GHG emissions

1,506 mtCO2e

Cardinal Health experienced emissions reductions in Scope 2 directly due to the LED retrofit projects
described in GRI 302-4.

GRI 305-6

Emissions of ozonedepleting substances (ODS)

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

GRI 305-7

Nitrogen oxides (NOx), sulfur
oxides (SOx), and othersignificant air emissions

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

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GRI 306 – Waste 2020
GRI 306-1

Waste generation andsignificant waste-related
impacts

As a distributor of pharmaceuticals, a global manufacturer and distributor of medical and laboratory products, and a provider of performance anddata solutions for healthcare locations, Cardinal Health has several waste streams and related impacts throughout our value chain that we actively
work to measure and manage. Activities such as sourcing raw materials, manufacturing products, distribution of products and services, routine waste
generation from operations, regulatory actions, product recalls, and changing waste disposal requirements all have an impact on Cardinal Health’s
waste streams and must be monitored on an on-going basis. We recognize that waste-related impacts apply not only to Cardinal Health, but also
extend upstream to our raw material and product suppliers, and downstream to our customers.

GRI 306-2

Management of significant
waste-related impacts

Cardinal Health’s Environment, Health and Safety (EHS) team develops and oversees our waste management program that requires all operations tomanage waste in accordance with regulatory requirements, monitor waste streams (including identifying new waste streams or significant changes towaste generation), and consider the feasibility of reducing waste generation.
We partner with third-party providers to dispose of waste, divert waste from landfills where possible, and manage our hazardous waste. Our EHS
team requires these partners to provide Certificates of Destruction, if necessary, waste manifests, and other instruments to document contractual andregulatory requirements are being met.
One external partner, Veolia, provides select sites detailed data regarding their activity via an online database shared with Cardinal Health EHS leaders.
Cardinal Health also maintains an internal database to manage information related to waste generation and recycling. Field EHS teams and the ESG teammonitor this data for completeness and accuracy as part of our environmental data validation process.

GRI 306-3

Waste generated

During fiscal 2023, Cardinal Health generated 92,290 metric tons of waste.

Cardinal Health reports waste generation across our locations that contract directly with a waste
management provider or actively manage waste collection and disposal. For locations that are notinvoiced based on weight, the size and type of receptacle as well as the frequency of pick-up by thethird-party vendor are used to estimate waste generation.
Please note Cardinal Health reports on waste generated within the organization for only 78% of thetotal square footage within our operational control.

GRI 306-4

Waste diverted
from disposal

During fiscal 2023, Cardinal Health diverted 61,289 metric tons of waste from disposal.

Cardinal Health reports waste diversion across our locations that contract directly with a recycling
provider or actively manage recycling collection and disposal.

GRI 306-5

Waste directed to disposal

During fiscal 2023, Cardinal Health directed 31,001 metric tons of waste to disposal. 8,409 metric tons were directed to disposal for energy generation
through our waste to energy program. Of our disposal materials, nearly 2,151 metric tons were designated hazardous.

Cardinal Health reports waste diversion across our locations that contract directly with a recycling or
waste to energy provider or actively manage recycling collection and disposal. For locations that are
not invoiced based on weight, the size and type of receptacle as well as the frequency of pick-up by thethird-party vendor are used to estimate waste diversion.

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Boundary, Assumptions, and Estimations

GRI 308 – Supplier Environmental Assessment 2016
GRI 308-1

New suppliers thatwere screened using
environmental criteria

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

GRI 308-2

Negative environmental
impacts in the supply chain
and actions taken

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

GRI 401 – Employment 2016
GRI 401-1

New employee hires andemployee turnover

Percentage of new hires by gender and region
Gender break-out
Female

46.4%

Male

52.5%

Non-binary

0.1%

Not Declared

1.0%
Regional break-out

U.S.

50.7%

O.U.S.

49.3%

Percentage of turnover by gender and region
Gender break-out
Female

45.6%

Male

53.7%

Non-binary

0.1%

Not Declared

0.6%
Regional break-out

U.S.

52.7%

O.U.S.

47.3%

The number and percentage of new employee hires and turnover by gender and region are calculated
for fiscal 2023 (i.e., June 30, 2023) based on data pulled from our HR system of record in September
2023. Given the sensitive nature of our employees' age information, we have elected to exclude thatdata point from this topic’s disclosure.
New hires include both internal employee transfers and external candidates selected to fill open
positions at Cardinal Health. Turnover includes both voluntary and involuntary separations from
Cardinal Health. Both new hires and turnover percentages are calculated for permanent employees
only and excludes our Kinray employee base. Kinray is excluded as employment information is
managed by a third party in a separate system of record and represents a de minimis impact on themetrics.

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GRI 401 – Employment 2016 (continued)
GRI 401-2

Benefits paid to full-time
employees that are notprovided to temporary or
part-time employees

Cardinal Health offers health and wellbeing benefits and resources that include comprehensive support for the “whole self” at affordable prices.
Our benefits team’s guiding principle is to manage costs and drive efficiencies to provide the best care to our employees and their families. U.S.-based
staff, who work an average of 30 or more hours per week, can choose from a menu of health and wellness plans that best support their unique needs.
International employee benefits vary by country and are established based on market competitiveness, while maintaining statutory compliance. All
global employees and their household members, regardless of benefit enrollment, have access to a robust Employee Assistance Program (EAP) to help
them manage stress and support their mental health.

GRI 401-3

Parental leave

In the U.S., Cardinal Health offers employees 2.5 weeks of paid parental leave for fathers and mothers, including adoptive parents. This benefit provides
birth mothers 100% of pay for up to 10.5 weeks (when used in combination with the short-term disability benefit). International parental leave benefits
vary by country and are established based on market competitiveness, while maintaining statutory compliance.

Benefit enrollment and tracking occurs on a calendar year basis and does not align with Cardinal
Health’s fiscal year.

GRI 402 – Labor/Management Relations 2016
GRI 402-1

Minimum notice periods
regarding operationalchanges

6 out of the 10 active collective bargaining agreements at the end of fiscal 2023 include specific language regarding the minimum notice periods forany operational changes.

All collective bargaining agreements are active as of the end of fiscal 2023 (i.e., June 30, 2023).

GRI 403 – Occupational Health and Safety 2018
GRI 403-1

Occupational health andsafety management system

Cardinal Health has established and implemented a global Environmental, Health, and Safety Management System (EHSMS) comprising 10 elements.
The EHSMS is implemented to manage risks in all the high-risk operations in the company (e.g., distribution centers, manufacturing, and nuclear
pharmacies). It applies to all workers (including those who are not employees but whose work is controlled by Cardinal Health), and all activities
performed within the physical boundaries of the operations. In addition to Cardinal Health’s EHSMS, 18 of our 31 manufacturing sites have adopted theISO 14001:2015 and ISO 45001:2018 management system standards. These manufacturing sites have been audited and certified to both ISO standards
by an external third party.

EHSMS applies to Cardinal Health, Inc., its divisions and majority-owned or controlled subsidiaries,
including those joint ventures, partnerships, or other business arrangements where Cardinal Healthholds a majority ownership interest, majority voting control or where Cardinal Health by contract has
agreed to manage the company.

GRI 403-2

Hazard identification, risk
assessment, and incident
investigation

Element 2 of Cardinal Health’s EHSMS, Hazard Recognition, Evaluation and Control, requires the recognition of work-related hazards, evaluation ofrisks on a routine and non-routine basis, and the application of hierarchy of controls in order to eliminate hazards and minimize risks. Further, Cardinal
Health’s EHS function has established a Risk Assessment and Reduction Program to guide operations through the risk assessment process. Finally, there
is a requirement for workers to report work-related hazards and hazardous situations and for workers to remove themselves from work situations thatthey believe could cause injury or ill health.

See GRI 403-1

Cardinal Health protects workers against reprisals when they are reporting hazards or stopping unsafe work situations by empowering them to getengaged in safety activities and programs, particularly in addressing the hazards and investigating incidents that arise from those hazards or unsafe
work situations. Element 8 of the EHSMS, Incident Investigation, defines the requirement to investigate work-related incidents. This includes theprocesses to identify hazards and assess risks relating to the incidents, determining corrective actions using the hierarchy of controls, and determining
improvements needed in the occupational health and safety management system.

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Occupational
health services

Cardinal Health has established and implemented an EHS Standard for Occupational Health that defines the requirements to recognize, evaluate,
and control occupational health hazards. The standard requires each location to have a system in place to deliver timely medical care in the event of
sudden injury or illness, which includes having the appropriate number of trained personnel and ensuring the availability of first responders. Eachlocation is also required to establish a relationship with a local medical clinic, have a first aid kit(s) to provide for the immediate treatment of minor
injuries by first aid responders, and to have automatic external defibrillators (AEDs) that can be used by authorized operators who have been trained as
required by local regulations and as recommended by the manufacturer.

See GRI 403-1

Cardinal Health maintains the confidentiality of workers’ personal health-related information through our data management system (i.e., Intelex) where
personal health-related information is reported and kept. In addition, paper copies of reports or assessments that may contain other personal healthrelated information are required to be kept in a secured filing system at each location. Cardinal Health ensures that workers’ personal health-related
information and their participation in any occupational health services is not used for any favorable or unfavorable treatment through the establishedaccountability systems and mechanisms as required by the EHSMS.

GRI 403-4

Worker participation,
consultation, andcommunication on
occupational healthand safety

Element 5 of Cardinal Health’s EHSMS, Employee Engagement, requires operations to provide employees opportunities to engage in EHS initiatives
and processes. Our 18 manufacturing locations operating in accordance with the ISO Standards 14001 and 45001 follow the guidance provided in ISO
45001:2018 clause 5.4d and 5.4e. Some examples of how our operations provide workers the opportunity to participate, consult, and communicate
include but are not limited to:

See GRI 403-1• EHS committees that address specific issues• Annual safety or EHS awareness campaigns• Management or business reviews• Employee suggestion programs or surveys• Town halls or employee group meetings
Operations are required to define location-specific processes for employee participation and consultation. For team-based mechanisms, the locationspecific process includes the frequency of meetings, members of the teams, topics needed to be discussed, specific goals they need to achieve, and tasksneeded to be completed to achieve the team goals. For the rest of the mechanisms, the location is required to establish goals that they need to achieve(e.g., number of inspections to be completed, number of suggestions to be addressed).

GRI 403-5

Worker training on
occupational healthand safety

Element 6 of Cardinal Health’s EHSMS, Training and Education, requires operations to ensure employees have the required skills and knowledge tosafely and accurately complete all assigned tasks. Each operation is required to provide effective training and education opportunities for employees
to engage in the EHS initiatives and processes. Training can be delivered online through the Cardinal Health Learning Management System or by live
instructor-led training (ILT) sessions. Corporate EHS and its Learning Management and Development business partners provide training guidance andtools to operations to plan for and deliver the training, including a Training Needs Analysis template to establish training topics for that operation.
These topics include regulatory-required training (e.g., hazard communication, blood-borne pathogen) and company-required training (e.g., EHSMS
training, risk assessment training, incident investigation and root cause analysis training).

Governance, ethics and compliance

Boundary, Assumptions, and Estimations

GRI 403 – Occupational Health and Safety 2018 (continued)
GRI 403-3|

See GRI 403-1|

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GRI 403 – Occupational Health and Safety 2018 (continued)
GRI 403-6

Promotion of worker health

Cardinal Health’s Benefits team actively manage and facilitate workers’ access to non-occupational medical and healthcare services and voluntary
health promotion services and programs.

Benefits disclosed are specific to U.S. based, full-time Cardinal Health employees.

Cardinal Health offers a digital physical care program with real-time feedback as employees complete exercises designed just for them by a physicaltherapist. With 24/7 text-based support, participants get high-quality care when and where they need it. The program is free for all employees working
20+ hours per week, as well as free for all spouses, domestic partners, and dependents age 13 and older who are enrolled in a Cardinal Health medical
plan.
Cardinal Health provides 100% preventive care coverage in all medical plan options. In addition, Cardinal Health offers many well-being tools andresources such as, a well-being premium incentive, an employee assistance program, virtual behavioral health visits, a weight management program,a tobacco cessation program, 100% covered immunizations and mindfulness programs.
GRI 403-7

Prevention and mitigationof occupational healthand safety impacts
directly linked bybusiness relationships

Element 2 of Cardinal Health’s EHSMS, Hazard Recognition, Evaluation and Control, requires the identification of hazards and assessment of risks
on a routine and non-routine basis and to apply the hierarchy of controls in order to eliminate hazards and minimize risks. These activities include
the mitigation of significant negative occupational health and safety impacts directly linked to the operations' activities, products, and services.
The identification of hazards and assessment of risks account for all interested parties, including but not limited to contractors, vendors, regulatory
agencies, communities, and business partners. Cardinal Health’s Risk Assessment and Reduction Program provides operations with guidance andmethodologies to determine the significance of the risks associated with hazards identified for activities, products and services of our operations andtheir interested parties.

See GRI 403-1

GRI 403-8

Workers covered by an
occupational health andsafety management system

Cardinal Health actively uses two EHS management systems at our operations, which comprise manufacturing locations, distribution centers, andnuclear pharmacies.

All employees and workers who are not employees but whose work and/or workplace is controlled by
the organization as of June 30, 2023 are included in the calculation of these metrics.

1. ISO 14001:2015 and ISO 45001:2018 for 18 manufacturing locations that have been certified by an external third party.
2. Cardinal Health’s internal EHSMS for operations controlled by Cardinal Health.
Total number and percentage of workers that are covered by an occupational health and safety management system: 32,168 (68%)
Total number and percentage of workers covered by an internally audited occupational health and safety management system (i.e., Cardinal Health’sinternal EHSMS): 28,845 (61%)
Total number and percentage of workers covered by an externally audited and certified occupational health and safety management system (i.e., ISO
14001:2015 and ISO 45001:2018): 13,238 (28%)

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GRI 403 – Occupational Health and Safety 2018 (continued)
GRI 403-9

Work-related injuries

MetricAll Employees

Workers who are not
employees but whose work is
controlled by Cardinal Health

Unit of Measure# of fatalities fromwork-related injury

00Fatalities# of high-consequence workrelated injury/illness(excluding fatalities)

130

Injuries/illnesses

Recordable work-related
injury/illness

667

15

Injuries/illnesses

Total Recordable Incident Rate
(TRIR)1

1.51

0.83

Incident per 200,000 hours
workedMain type of work-related
injury/illness

StrainStrainN/A# of hours worked

88,185,385

3,608,682

Hours

Cardinal Health calculates TRIR by dividing the number of recordable work-related injuries and illnesses by the total
number of hours worked and multiplying the quotient by 200,000.

1

GRI 403-10

Work-related ill health

Cardinal Health does not distinguish between work-related injuries and ill health; therefore, all work-related incidents are disclosed within GRI 403-9.

Work-related injuries and illnesses are self-reported by employees and entered by a location manager
into the Intelex application for record keeping and reporting.
Fatalities, high-consequence work-related injuries and illnesses, and recordable work-related injuries
and illnesses were determined as of October 3, 2023, for fiscal 2023.
Cardinal Health defines a recordable injury or illness in accordance with the Occupational Safety and
Health Administration’s (OSHA) definition. Cardinal Health defines high-consequence work-related
injuries and illnesses as those that result in employee lost time exceeding 180 days.

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GRI 404 – Training and Education 2016
GRI 404-1

Average hours of training
per year per employee

Cardinal Health utilizes two online platforms to administer training for employees and contractors.
The first serves as the primary platform to ensure employees and contractors understand and comply with Cardinal Health policies and procedures. For
fiscal 2023, employees and contractors together obtained, on average, 30.9 hours of training on myLearning.
The second online platform serves as the primary platform to provide employees learning and development opportunities on a variety of subject matterincluding but not limited to diversity, equity, and inclusion, finance, customer impact, supply chain, and manufacturing excellence. For fiscal 2023,
employees obtained, on average, 12.6 hours of training while contractors obtained, on average, 6.0 hours of training on this platform.

GRI 404-2

Programs for upgrading
employee skills andtransition assistanceprograms

Within the first online platform, training hours consist of an estimate of how long a specific training willtake an employee or contractor to complete, and not the actual duration of how long a training took tocomplete.
Within the second online platform, training hours are recorded based on the actual duration it took an
employee or contractor to complete the training. In some instances, if the total time is recorded as zero,
it is assumed that an average of 30 minutes was needed to complete the training.

We offer interactive leadership development programs for first-time people leaders who have transitioned from individual contributors to leading othersand existing leaders who are looking for practical relevant resources to effectively lead and manage their teams.
Programs such as Leading the Cardinal Health Way, Sales Leadership Academy, FrontLine Leaders and Aspiring Leaders are designed to prepare our
employees to be effective, inclusive people leaders that align with Cardinal Health’s core values. While most are U.S.-based, we are actively seeking toprovide access to our international teams. We have a team dedicated to the leadership and professional development for our international employees.
We also offer a robust curriculum of professional development courses that will increase our employees’ skillsets in business writing, presentation skills, andtechnical skills. Our content is available in our learning management system and is offered in a variety of methods including in person, virtual and web-based.

GRI 404-3

Percentage of employees
receiving regularperformance and careerdevelopment reviews

At Cardinal Health, we encourage quarterly “Our Time to Talk” (OTTT) performance and development conversations between employees andmanagers. While completion is tracked quarterly, the fourth quarter and fiscal year end OTTT4 is formally tracked and used for reporting purposes. For
fiscal 2023, 96% of employees completed their OTTT4 discussion with their manager.

Percentage of employees receiving regular performance and career development reviews is calculated
as of September 18th, 2023, when OTTT4 officially closed in our Workday system of record.
The metric includes all eligible global employees where the manager has acknowledged in Workdaythat an end-of-year performance and development conversation has occurred.
The following employees are not “eligible” and are not included in this report:• Field/operations and executive level employees• Employees from countries that have labor union laws prohibiting this process• Employees who are on leave of absence or have been terminated during the process timeframe• Employees who are defined as “too new to rate” (started employment on or after March 27, 2023)

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GRI 405 – Diversity and Equal Opportunity 2016
GRI 405-1

Diversity of governancebodies and employees

Board of Directors – Gender Diversity
GenderDirector count (percentage of total)
Female6 (54.5%)Male
5 (45.5%)
Total
11

Board of Directors – Racial/Ethnic Diversity
Race/Ethnicity
AsianBlack or African American
White
Total

Operating Committee – Racial/Ethnic Diversity

Operating Committee – Gender Diversity
Gender
Employee count (percentage of total)
FemaleMale
Total

Director count (percentage of total)
2 (18.2%)
1 (9.1%)8 (72.7%)
11

Race/Ethnicity
AsianBlack or African American
Hispanic or Latino
White
Total

4 (26.7%)
11 (73.3%)
15

Employee count (percentage of total)
1 (6.6%)1 (6.7%)1 (6.7%)
12 (80.0%)
15

The composition of the Board of Directors is disclosed on page 20 of our 2023 Proxy Statement.
The composition of Cardinal Health’s operating committee is disclosed on our website:
Our Leaders (cardinalhealth.com).
The diversity of employees by gender includes Cardinal Health’s global population of permanent
employees. The diversity of employees by ethnicity is limited only to Cardinal Health’s permanent
employees that are based in the United States. Cardinal Health does not collect racial/ethnic
demographics of its employees outside of the United States. The number of employees that arereported is based upon employees self-reporting their gender and/or ethnicity. The “Not declared/Not
specified” category of employees are those who declined to disclose such information.
Please see our fiscal 2023 assurance statement here.

Global Employees – Gender Diversity
GenderDiversity of employees is calculated based on data pulled from our HR system of record in September
2023 for the population of employees as of June 30, 2023 and excludes our Kinray employee base.
Kinray is excluded as employment information is managed by a third party in a separate system ofrecord and represents a de minimis impact on the metrics. Given the sensitive nature of our employees'
age information, we have elected to exclude that data point from this topic’s disclosure.

Global count(percentage of total)

U.S. count(percentage of total)

Outside U.S. count(percentage of total)

Female23,800 (50.2%)**

14,224 (47.5%)

9,576 (54.9%)

Male

23,344 (49.3%)**

15,647 (52.2%)

7,697 (44.1%)

Non-binary

24 (0.1%)**24 (0.1%)

0 (0.0%)Not declared

232 (0.5%)**76 (0.2%)

156 (1.0%)

Total

47,40029,971

17,429US Employees – Racial/Ethnic Diversity
Race/Ethnicity

U.S. employee count (percentage of total)

Not declared / Not specified

164 (0.5%)**

American Indian / Alaskan Native

164 (0.5%)**

Asian2,724 (9.1%)**

Black or African American

5,504 (18.4%)**

Hispanic or Latino

5,624 (18.8%)**Native Hawaiian or Other Pacific Islander

179 (0.6%)**

Two or More Races

651 (2.2%)**

White

14,961 (49.9%)**Total

29,97187

FY23 ESG Report

Reference

MetricOverview |Our people|

Customers and communities|

Operations and supply chain

Disclosure|

Governance, ethics and compliance|

Reporting indices

Boundary, Assumptions, and Estimations

GRI 405 – Diversity and Equal Opportunity 2016 (continued)
GRI 405-2

Ratio of basic salary andremuneration of women
to menAmong employees who are performing substantially similar work, for every dollar male employees are paid, female employees at Cardinal Health arepaid 98.6 cents.

GRI 406 – Non-discrimination 2016
GRI 406-1

Incidents of discriminationand corrective actions taken

Cardinal Health provides equal employment opportunity to all applicants and employees in all aspects of employment, including but not limited
to sourcing; recruiting; hiring; transferring; promoting; maintaining or establishing terms and conditions of employment; training; educational
assistance; compensation and benefits; corrective action; and determining layoffs, recalls, position eliminations, and terminations. Discriminationon the basis of race, religion, sex, color, national origin, ancestry, age, physical or mental disability, sexual orientation, gender identity/expression,
veteran status, pregnancy, marital status, creed, reproductive health decision making, status with regard to public assistance, genetic status or any
other status protected by federal, state, or local law is prohibited and is not tolerated.
All Cardinal Health employees share in the responsibility for fulfilling the commitment of Cardinal Health to equal employment opportunity.
Employees who believe they have been discriminated against or who believe they have witnessed discrimination against others must report theirconcerns to their manager or supervisor immediately. If the employee is uncomfortable raising the concern with their manager, the employee mustraise the concern with the Human Resources department immediately. Note that all complaints of discrimination must be reported to the BusinessConduct Line (businessconductline.com).
All allegations of discrimination are investigated. The Advice & Counsel Center (ACC) within the Human Resources function has primary
responsibility for leading these investigations but will do so in partnership with the Ethics and Compliance department as needed. The ACC consistsof experienced investigators that have deep expertise in Title VII and Equal Employment Opportunity to identify actions that are a violation of ourpolicy, which is posted on our internal intranet and externally on cardinalhealth.com.
Immediate measures and corrective action, up to and including termination, will be taken against any person we find has engaged in conductthat is in violation of our policy. No employee will be retaliated against for making a complaint in good faith or for participating in good faith in an
investigation pursuant to our policy.

GRI 407 – Freedom of Association and Collective Bargaining 2016
GRI 407-1

Operations and suppliers inwhich the right to freedomof association and collective
bargaining may be at risk

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

GRI 408-1 – Child Labor 2016
GRI 408-1

Operations and suppliers at
significant risk for incidents
of child labor

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

Cardinal Health’s gender pay equity metric is calculated using U.S. permanent employee compensation
as of July 7, 2023. The calculation excludes employees located in U.S. territories, executives, employees
on select incentive compensation plans, and employees who either identify as non-binary or do notrespond to the voluntary survey.

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Reference

MetricOverview |Our people|

Customers and communities|

Operations and supply chain

Disclosure

GRI 409 – Forced or Compulsory Labor 2016
GRI 409-1

Operations and suppliers at
significant risk for incidents
of forced or compulsory
labor

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

GRI 410 – Security Practices 2016
GRI 410-1

Security personnel trainedin human rights policies orprocedures

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

GRI 411 – Rights of Indigenous People 2016
GRI 411-1

Incidents of violations
involving rights ofindigenous peoples

We report any significant legal proceedings concerning the rights of indigenous people in our Forms 10-K and 10-Q filed with the SEC to the extent
required by SEC rules. Please see our Investor Relations website for access to corporate filings.

GRI 413 – Local Communities 2016
GRI 413-1

Operations with local
community engagement,
impact assessments, anddevelopment programs

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

GRI 413-2

Operations with significant
actual and potential
negative impacts on local
communities

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

GRI 414 – Supplier Social Assessment 2016
GRI 414-1

New suppliers that werescreened using social criteria

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

GRI 414-2

Negative social impacts
in the supply chain andactions taken

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

|

Governance, ethics and compliance

Boundary, Assumptions, and Estimations|

Reporting indices89

FY23 ESG Report

Reference

MetricOverview |Our people|

Customers and communities|

Operations and supply chain|

Governance, ethics and compliance|

Reporting indicesDisclosure

Boundary, Assumptions, and Estimations

For information on our political contributions, please see our Political Activities and Contributions Report.

Cardinal Health updates our Political Activities and Contributions Report on a calendar year basis.
Therefore, the report link will provide our data for 2022.

GRI 415 – Public Policy 2016
GRI 415-1

Political contributions

GRI 416 – Customer Health and Safety 2016
GRI 416-1

Assessment of the healthand safety impacts ofproduct and service
categories

Cardinal Health understands the importance of identifying and responding to the health and safety impacts our products and services have on ourcustomers. An example of how we identify and manage those impacts are demonstrated through our Controlled Substance Monitoring Program.

GRI 416-2

Incidents of noncompliance concerning thehealth and safety impacts ofproducts and services

We report any significant legal proceedings concerning the health and safety of our products and services in our Forms 10-K and 10-Q filed with the
SEC to the extent required by SEC rules. Please see our Investor Relations website for access to corporate filings.

GRI 417 – Marketing and Labeling 2016
GRI 417-1

Requirements for productand service information andlabeling

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

GRI 417-2

Incidents of noncompliance concerning
product and service
information and labeling

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

GRI 417-3

Incidents of noncompliance concerningmarketing communications

We report any significant incidents regarding non-compliance, or alleged non-compliance, concerning marketing communications in our Forms 10-K
and 10-Q filed with the SEC to the extent required by SEC rules. Please see our Investor Relations website for access to corporate filings.

GRI 418 – Customer Privacy
GRI 418-1

Substantiated complaints
concerning breaches ofcustomer privacy and lossesof customer data

Cardinal Health has established strong governance measures to protect the security and confidentiality of the information it collects, including policies
and procedures for identifying, prioritizing, reporting, mitigating, and responding to potential security and privacy incidents. Training has been
deployed across the organization to aide in incident identification and escalation. Additionally, Cardinal Health has invested in technology solutions to
expedite our incident discovery and assessment processes. We also leverage these tools to better enable timely notifications to impacted stakeholders
as appropriate. We report any material complaints or events concerning breaches of customer data or losses of customer data in our Forms 10-K, 10-Q
and 8-K filed with the SEC to the extent required by SEC rules. Please see our Investor Relations website for access to corporate filings.

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Overview |Our people|

Customers and communities|

Operations and supply chain|

Governance, ethics and compliance|

Reporting indicesSustainability Accounting Standards Board (SASB) Index
Topic

SASB Code

Accounting Metric

Disclosure

Boundary, Assumptions, and Estimations

Fuel efficiency for our fleet operating on diesel fuel – 8.29 MPG

Fuel efficiency reported under this metric includes only trucks within
the Medical Segment Fleet operated by Penske Logistics and leased
through Penske Truck Leasing. Penske Truck Leasing’s telematics
system, Omnitracs, supplies the data used to calculate the fuelefficiency for trucks that operate on diesel and unleaded gasoline.
Penske Logistics and Penske Truck Leasing provided the data directly
to Cardinal Health, using a date range of July 1, 2022 – June 30, 2023.

SASB Index – Health Care Distributors Standard
Fleet FuelManagement

HC-DI-110a.1

Fleet FuelManagement

HC-DI-110a.2

Payload fuel economy

Fuel efficiency for our fleet operating on gasoline – 11.41 MPG

Description of efforts to
reduce the environmental
impact of logistics

The Enterprise Logistics Center of Excellence (COE) within Cardinal Health is responsible for the environmental impact reduction of our Medical Segment fleet.
Equipment specification: When ordering and securing equipment, significant investments in technology are part of an ongoing strategy to improve fuelefficiency. The tractors, trucks, and trailers we lease are equipped with physical options designed to improve fuel economy. These features include roof fairings,
side extenders, aerodynamic mirrors, aerodynamic bumpers, fuel tank skirts, eco-flap mud flaps, trailer side skirts, SmartWay fuel efficient tires (low roll resistance),
single torque engines, automated transmissions with overdrive, aluminum rims, and tire pressure management systems, including automatic inflation. According
to the North American Council for Freight Efficiency (NACFE), a fleet investing in these technologies can see fuel efficiency increase up to 13%.
Vehicle maintenance: Penske Truck Leasing maintains our equipment and uses synthetic oil and lubricants where available. This is done both to reduce
impact on engine performance and reduce the waste stream. Regularly scheduled maintenance, paired with onboard proactive diagnostic alerts, identify any
malfunctions or non-optimal conditions early; therefore, decreasing the risk that a truck is not performing in top condition. Malfunctions are identified early forcorrection before impacting fuel economy at a meaningful level.
Vehicle speed management: When a tractor or truck is put into service, the engine governors are set at 67 mph. The vehicle’s road speed affects its fueleconomy, since as road speed increases, so does air resistance. By limiting the top speed of the vehicle, this loss of efficiency can be reduced.
Vehicle idle management: When we put a tractor or truck into service, the idle auto shutoff is set at three minutes. Idle time can significantly affect the vehicle’s
fuel efficiency. Every hour of idle time can decrease fuel efficiency by 1%.
Tracking and management programs: Penske Logistics, which operates our fleet, is required to report miles per gallon and idle time monthly to allow
corrective action or investigation of outliers if needed. Additionally, all tractors and trucks are equipped with On-Board technology for driver monitoring.
SmartWay®: Cardinal Health’s Medical Segment fleet participates in the EPA’s SmartWay program and has been a SmartWay Truck Carrier partner since 2010. In
2023, the Medical Segment private fleet received a Smartway ‘High Performer’ designation for our 2022 performance.
Electrification: In fiscal 2023, Cardinal Health put into operation two electric-powered tractors and one electric-power van at our Ontario, California, location,bringing the total number of electric vehicles in Cardinal Health’s California fleet to five. In compliance with new California regulatory requirements (i.e., CARB
Advanced Clean Fleet (ACF) Rule), Cardinal Health will continue to put electric vehicle assets into operation in our California fleet in the short term.

Product Safety

HC-DI-250a.1

Total amount of monetarylosses as a result of legal
proceedings associatedwith product safety

We report any significant legal proceedings concerning the safety of our products in our Forms 10-K and 10-Q filed with the SEC to the extent required by SEC
rules. Please see our Investor Relations website for access to corporate filings.

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Topic

SASB CodeOverview |Accounting Metric

Our people|

Customers and communities|

Operations and supply chain|

Governance, ethics and compliance

Disclosure

SASB Index – Health Care Distributors Standard (continued)
Product Safety

HC-DI-250a.2

Description of efforts tominimize health and safety
risks of products soldassociated with toxicity/chemical safety, high abusepotential, or delivery

To address the health and safety risks of sold products, Cardinal Health has established multiple programs designed to combat prescription drug misuse andthe diversion of controlled substances. For more information, please see the following pages within the Cardinal Health website: Combating Opioid Misuse,
Controlled Substance Monitoring Program (CSMP), Addressing the Opioid Crisis: Board Engagement and GovernanceCounterfeit
Drugs

HC-DI-260a.1

Description of methods
and technologies used
to maintain traceabilityof products throughout
the distribution chain andprevent counterfeiting

The safety and security of our nation’s pharmaceutical supply chain is among our highest priorities. A safe and reliable supply chain is critical to the healthand well-being of patients and central to our customers’ businesses. Our pharmaceutical distribution procedures are designed to comply with the U.S.
Drug Supply Chain Security Act (DSCSA). Before we receive pharmaceuticals, we conduct a licensing check to make sure the product comes from an entity
authorized to distribute prescription pharmaceuticals. We visually inspect products for signs of tampering or any indications that the products are suspect.
If we discover illegitimate product, we notify our trading partners, the U.S. Food and Drug Administration (FDA) and other regulatory bodies as required. In
2018, as a requirement of the DSCSA, manufacturers began placing a unique product identifier on every pharmaceutical package and case. In 2023, we started
electronically tracking product at the individual package level with this product identifier. Transaction data is starting to be exchanged through the Electronic
Product Code Information Services (EPCIS), a secure, interoperable, and electronic system to further minimize the threat of counterfeit product entering the
supply chain. Please see the Cardinal Health Pharmaceutical Tracing website for more information.

Counterfeit
Drugs

HC-DI-260a.2

Discussion of due diligenceprocess to qualify supplierof drug products andmedical equipment anddevices

The distribution of drug products is conducted through Cardinal Health’s Pharmaceutical Segment and the distribution of medical equipment and devices
is conducted through Cardinal Health’s Medical Segment. Each segment has their own approach for conducting due diligence to qualify suppliers, which is
described below:
Medical Segment: Within the Medical Segment, Cardinal Health’s procurement team evaluates suppliers to select the ones that are best able to meet theneeds of the business in terms of quantity, specification, price, etc. Once selected by procurement, these suppliers are subject to the approved supplier list (ASL)
qualification process that is conducted by the Medical Segment supplier quality team. Depending on a supplier’s risk profile, the supplier quality team may audit
the supplier, obtain a quality agreement, or send a survey to further qualify the supplier prior to including them in the ASL.
Once on the ASL, the supplier is subject to performance monitoring and audits on a recurring basis. Audits conducted by the supplier quality team are inaccordance with the standard the supplier holds (i.e., ISO 13485 or ISO 9001), confirm compliance with FDA’s Current Good Manufacturing Practice (CGMP)(21 CFR 820), and determine the supplier quality agreement is adhered to. We verify that the supplier has a current ISO certificate, and that they have FDA
Establishment Registration for the current calendar year.
Pharmaceutical Segment: The Pharmaceutical Segment conducts due diligence in two stages: the supplier qualification process and the supplier lifecycle
management program.
As part of the supplier qualification process, Cardinal Health implements quality agreements, which describe the materials or services to be provided, quality
specifications, and communication mechanisms between Cardinal Health and the supplier. Within the qualification process, questionnaires may be posed to the
supplier or location to gain additional insights into the potential working relationship with a new supplier. For example, this questionnaire can have a scope thatis focused on a new supplier’s Quality Management System (QMS) to ensure the company has the adequate procedures in place to support a product.
Once engaged with Cardinal Health, the supplier enters the lifecycle management program. In this program, Cardinal Health may use a series of questions
to confirm an existing supplier has continued to maintain their QMS or other mechanisms, such as a risk assessment, to determine if an inspection or audit isrequired for a supplier or location. The inspection or audit is an event that evaluates a process (e.g., QMS) to ensure compliance to a set of requirements and may
be performed routinely or for cause.
If available, Cardinal Health may request third-party certification for FDA's Current Good Manufacturing Practice (CGMP) regulations enforced by the FDA from its
suppliers or locations. This third-party certification, such as UL, NSF, and ISO, include an independent evaluation of a manufacturing process to show it meets a
set of specific requirements.

|

Reporting indices

Boundary, Assumptions, and Estimations

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Topic

SASB CodeOverview |Accounting Metric

Our people|

Customers and communities|

Operations and supply chain|

Governance, ethics and compliance

Disclosure|

Reporting indices

Boundary, Assumptions, and Estimations

SASB Index – Health Care Distributors Standard (continued)
Counterfeit
Drugs

HC-DI-260a.3

Discussion of process
for alerting customers
and business partners ofpotential or known risks
associated with counterfeit
products

When we discover potential suspect or counterfeit product, either through the receiving process at our distribution centers, a customer complaint, an
inquiry from a state or federal agency, or from a manufacturer communication, we immediately quarantine the product and investigate, in conjunction withthe manufacturer, to determine if the product is illegitimate. The identification of illegitimate product triggers several subsequent notification processes.
Downstream customers would be notified through our recall process. In addition, the Drug Supply Chain Security Act (DSCSA) requires that any trading
partner who identifies illegitimate product in their possession or control to notify the FDA and all immediate trading partners believed to have received theillegitimate product within 24 hours of the determination. Notifications to the FDA regarding illegitimate product are made on Form FDA 3911.

Product
Lifecycle
Management

HC-DI-410a.1

Discussion of strategies toreduce the environmental
impact of packaging
throughout its lifecycle

At Cardinal Health, our packaging engineering team is responsible for the design and sourcing of packaging materials used for our Cardinal Health-branded
medical equipment and supplies as well as our Presource® kitting services. As resources, materials and costs allow, the Cardinal Health team evaluates ways
to reduce the environmental impact of packaging within our primary control. To help monitor these efforts, the packaging engineering team has createda sustainability tracker that categorizes projects based on the strategy used to reduce environmental impact, including component elimination, materialchanges, or smaller packaging. Several active projects are being tracked and once implemented Cardinal Health will be able to quantify the weight reduced
and emissions avoided because of these efforts. Additionally, Cardinal Health is actively working on compiling packaging material weights for all Cardinal
Health products to understand volumes of materials, recycled content from suppliers, and recyclability of material.

Product
Lifecycle
Management

HC-DI-410a.2

Amount (by weight) of
products accepted for takeback and reused, recycled,
or donatedCardinal Health engages in both the take-back and reprocessing of single-use medical devices for reuse as well as donation of both medical andpharmaceutical product each year. During fiscal 2023, we collected and reprocessed more than 17.05 million single use devices representing 5.24 million
pounds and donated more than $13.65 million in medical and pharmaceutical product.

Business Ethics

HC-DI-510a.1

Description of efforts
to minimize conflicts ofinterest and unethicalbusiness practices

Within our Standards of Business Conduct, Cardinal Health outlines our corporate values and standards of integrity and behavior. Please see pages 62-66 of
this report to learn more.

Business Ethics

HC-DI-510a.2

Total amount of monetarylosses as a result of legal
proceedings associated withbribery, corruption, or other
unethical business practices

We report any significant legal proceedings concerning bribery, corruption, or other unethical business practices in our Forms 10-K and 10-Q filed with the SEC
to the extent required by SEC rules. Please see our Investor Relations website for access to corporate filings.

Activity
Metrics

HC-DI-000.A

Number of pharmaceuticalunits sold by productcategory

Approximately 751 million units

Waste diversion is calculated by multiplying the average weight ofall devices eligible for collection and reprocessing by the numberof single use devices collected during the reporting period. Productdonation (in dollars) is calculated based on the internal cost of
products at the time they are designated for donation.

Pharmaceutical units are measured using the number of items ordered
by a customer and fulfilled by Cardinal Health as recorded in our sales
system of record. Pharmaceutical units are reported depending on
how our sales systems organize items into purchase orders and canrepresent both single- and multi-dose volumes sold by both Cardinal
Health’s Medical and Pharmaceutical Segments.
For the Medical Segment, pharmaceutical units include items assigneda prescription drug regulatory code in our sales system of record.
For the Pharmaceutical Segment, all non-prescription drug-related items
were excluded from the metric as well as the following business units:• Metro Medical• Major Rugby

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FY23 ESG Report

Topic

SASB CodeOverview |Accounting Metric

Our people|

Customers and communities|

Operations and supply chain|

Governance, ethics and compliance

Disclosure|

Reporting indices

Boundary, Assumptions, and Estimations

SASB Index – Health Care Distributors Standard (continued)
Activity
Metrics

HC-DI-000.B

Number of medical devices
sold by product category

Approximately 465 million units

Medical devices are measured using items ordered by a customer andfulfilled by Cardinal Health as recorded in our sales system of record
within the Medical Segment only. Cardinal Health defines a medical
device in accordance with the World Health Organization’s definition,
which states “a medical device can be any instrument, apparatus,
implement, machine, appliance, implant, reagent for in vitro use,
software, material or other similar or related article, intended by
the manufacturer to be used, alone or in combination for a medical
purpose.” The value reported excludes the following medical segment
business units:• Medical Distribution - International• Cardinal Health Canada• Cardinal Health at-Home Solutions• Cardinal Health Singapore

SASB Index – Medical Equipment and Supplies Standard
Affordability& Pricing

HC-MS240a.1

Ratio of weighted averagerate of net price increases(for all products) to theannual increase in the US
Consumer Price Index

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

Affordability& Pricing

HC-MS240a.2

Description of how priceinformation for eachproduct is disclosed tocustomers or to their agents

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

Product Safety

HC-MS250a.1

Number of recalls issued,
total units recalled

During fiscal 2023, Cardinal Health reported 5 Class II product recalls. Class II recalls represent situations in which use of or exposure to a violative product may
cause temporary or medically reversible adverse health consequences or where the probability of serious adverse health consequences is remote.

Product Safety

HC-MS250a.2

List of products listed in
the FDA’s MedWatch Safety
Alerts for Human Medical
Products database

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

Product Safety

HC-MS250a.3

Number of fatalities related
to products as reported
in the FDA Manufacturer
and User Facility Device
Experience

Cardinal Health reports all data as required by the U.S. FDA regarding Manufacturer and User Facility Device Experience (MAUDE). To see Cardinal Healthinformation, please visit the MAUDE Database.

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FY23 ESG Report

Topic

SASB CodeOverview |Accounting Metric

Our people|

Customers and communities|

Operations and supply chain|

Governance, ethics and compliance

Disclosure|

Reporting indices

Boundary, Assumptions, and Estimations

SASB Index – Medical Equipment and Supplies Standard
Product Safety

HC-MS250a.4

Number of FDA
enforcement actions
taken in response toviolations of current Good
Manufacturing Practices(cGMP), by type

We report any significant regulatory matters concerning FDA enforcement actions taken in response to violations of cGMP, or allegations of such violations, in
our Forms 10-K and 10-Q filed with the SEC to the extent required by SEC rules. Please see our Investor Relations website for access to corporate filings.

EthicalMarketing

HC-MS270a.1

Total amount of monetarylosses as a result of legal
proceedings associatedwith false marketing claims

We report on significant legal proceedings concerning false marketing claims in our Forms 10-K and 10-Q filed with the SEC to the extent required by SEC rules.
Please see our Investor Relations website for access to corporate filings.

EthicalMarketing

HC-MS270a.2

Description of code of
ethics governing promotionof off-label use of products

Cardinal Health maintains an active policy in the U.S. that prohibits the promotion of medical device products for off-label use as defined within ourpolicy or otherwise unapproved purposes. The policy applies to all forms of promotional activities, including but not limited to direct healthcare provider
communications, conducting, or sponsoring promotional talks or discussions that involve off-label promotions, and providing access to online materials or
educational programs for the purpose of off-label promotions.

Product
Design andLifecycle
Management

HC-MS410a.1

Discussion of process
to assess and manage
environmental and humanhealth considerations
associated with chemicals in
products, and meet demand
for sustainable products

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

Product
Design andLifecycle
Management

HC-MS410a.2

Total amount of products
accepted for take-backand reused, recycled, or
donated, broken down by:(1) devices and equipmentand (2) suppliers

Cardinal Health engages in both the take-back and reprocessing of single-use medical devices for reuse as well as donation of both medical andpharmaceutical product each year. During fiscal 2023, we collected and reprocessed more than 17.05 million single use devices representing 5.24 million
pounds and donated more than $13.65 million in medical and pharmaceutical product.

Supply Chain
Management

HC-MS430a.1

Percentage of (1) entity's
facilities and (2) Tier
1 suppliers' facilities
participating in thirdparty audit programsfor manufacturing andproduct quality

Cardinal Health has elected not to disclose performance on this metric for fiscal 2023.

Waste diversion is calculated by multiplying the average weight ofall devices eligible for collection and reprocessing by the numberof single use devices collected during the reporting period. Productdonation (in dollars) is calculated based on the internal cost of
products at the time they are designated for donation.

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FY23 ESG Report

Topic

SASB CodeOverview |Accounting Metric

Our people|

Customers and communities|

Operations and supply chain|

Governance, ethics and compliance

Disclosure|

Reporting indices

Boundary, Assumptions, and Estimations

SASB Index – Medical Equipment and Supplies Standard (continued)
Supply Chain
Management

HC-MS430a.2

Description of efforts tomaintain traceability within
the distribution chain

Starting in fiscal 2023, the ESG team initiated a risk-based approach to mapping our critical supply chains using digital technology ensuring supply chaintransparency and enabling identification of ESG-related risks.

Supply Chain
Management

HC-MS430a.3

Description of the
management of risks
associated with the use ofcritical materials

Cardinal Health acknowledges that 3TG minerals (tin, tantalum, tungsten and gold) are used in the manufacturing of medical devices and electronic
components. We also recognize that profits from certain mining operations of conflict minerals found in the Democratic Republic of the Congo andadjoining countries, and other conflict-affected and high-risk areas of the world, may provide financial support to armed groups that commit violenceand human rights violations. In addition, the U.S. Conflict Minerals Rule requires public companies such as Cardinal Health to annually disclose specificinformation about the origin of the conflict minerals in the products they manufacture or contract to manufacture to the extent those conflict minerals
are necessary to the products’ functionality or production, as well as information on their related compliance procedures. For more information, please see
Cardinal Health’s Conflict Minerals Global Policy and our 2022 Form SD filed with the SEC.

Business Ethics

HC-MS510a.1

Total amount of monetarylosses as a result of legal
proceedings associatedwith bribery or corruption

We report on significant legal proceedings concerning bribery or corruption in our Forms 10-K and 10-Q filed with the SEC to the extent required by SEC
rules. Please see our Investor Relations website for access to corporate filings.

Business Ethics

HC-MS510a.2

Description of codeof ethics governinginteractions with healthcare professionals

Our Interactions with Customers and Healthcare Professionals policy applies to all interactions by Cardinal Health companies, business units and functionalgroups with customers, healthcare professionals (HCPs) and government officials (GOs). This policy applies to all transfers of value to a customer, HCP or
GO even if an employee pays for a transfer of value to a customer, HCP or GO out of his or her own funds and does not seek reimbursement from Cardinal
Health. It also applies to indirect transfers of value to customers, HCPs or GOs requested by Cardinal Health or its employees through third parties. Employeesthat violate this policy or its related procedures will be subject to disciplinary action up to and including termination. Cardinal Health has also adopted
the AdvaMed Code of Ethics on Interactions with Healthcare Professionals. As part of our Ethics and Compliance program, Cardinal Health has engaged
compliance business partners who train, monitor, and oversee compliance with this policy.

Activity
Metrics

HC-MS-000.A

Number of units sold by
product category

Approximately 2.16 billion units

Please note Form SD is reported on a calendar basis and therefore
does not align with our fiscal year reporting period.

Number of units are measured using the number of items ordered by acustomer and fulfilled by Cardinal Health as recorded in our sales systemof record. This includes all medical equipment and supplies, including
general medical suppliers, at-home healthcare supplies, and heath aid
items sold by our Pharmaceutical Segment to retail pharmacies.
23.84M of units sold included in this total were pulled under categories
labeled “HBA – Health and Beauty Aid” and “GENMERCH” (General
Merchandise) and include Medical Equipment and Supplies but also
include many other product types. Business unit exclusions include:• Medical Distribution - International• Cardinal Health Canada• Cardinal Health at-Home Solutions• Metro Medical• Major Rugby• Nuclear and Precision Health Solutions

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Overview |Our people|

Customers and communities|

Operations and supply chain|

Governance, ethics and compliance|

Reporting indices

Task Force on Climate-Related Financial Disclosures (TCFD) Index
Recommended Disclosure

Disclosure

Governance
Describe the board's oversight of climaterelated risks and opportunities.

Board-level oversight of Environmental, Social and Governance (ESG) activities, policies, strategy, and reporting resides with the Governance and Sustainability Committee, which is formalized within the committee charter (Governance and Sustainability Committee
Charter). The ESG activities overseen by the Governance and Sustainability Committee include climate-related risks and opportunities and the strategy to manage those risks and opportunities. For example, during fiscal 2023 the Committee reviewed and aligned
on Cardinal Health’s Science-Based Target (SBT), which includes Scope 3 greenhouse gas (GHG) emissions, prior to submission to the Science Based Targets Initiative (SBTi) in July 2023. Among its other responsibilities, the Governance and Sustainability Committee is
expected to:
1. Oversee and report to the full Board regarding the company’s ESG activities, policies, strategy, and reporting (except to the extent such matters are overseen by another Board committee) and discuss such matters with the company’s management as appropriate.
2. Monitor and evaluate environmental, social, and political issues and risks potentially impacting the company and report to the full Board regarding such matters.

Describe management's role in assessing
and managing climate-related risks andopportunities.

Cardinal Health’s internal ESG Governance Committee, comprising Cardinal Health’s CEO, his direct reports, and other leaders across the company, is the highest level of management responsible for aligning on the company’s ESG strategy, action plans, and goal setting,including our approach to climate-related risks and opportunities. Our VP of ESG, who reports to the SVP & Deputy General Counsel, communicates ESG risks (including climate-related risks and opportunities) to the internal ESG Governance Committee at least six times
per year to maintain line of sight into ESG performance and industry trends and expectations.
In fiscal 2023, the ESG Governance Committee aligned on the key ESG-related risks and opportunities to prioritize for strategy development and risk management, which included energy and climate (see ESG topics and priorities). To manage these priorities anddevelop a three-year strategic plan for improving Cardinal Health’s performance on each priority, the VP of ESG formed the ESG Working Group, comprising vice-president-level subject matter experts, with oversight from our ESG Governance Committee.
The VP of ESG then coordinates with the broader ESG team to engage with employees across the organization to help them understand how they can collectively contribute to managing ESG risks and opportunities. In fiscal 2023, the ESG team further formalized thisengagement through the development of a Decarbonization Working Group to specifically address climate-related risks and opportunities in our operations and across our supply chain.

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Strategy
Describe the climate-related risks andopportunities the organization has identified
over the short, medium, and long term.

Given the nature of our operations, Cardinal Health is exposed to a diverse portfolio of risks and may be presented with a diverse range of opportunities. We continuously monitor those risks and opportunities that could have a significant impact on our financial
performance, our ability to meet the needs of our customers and other stakeholders, and our Company’s reputation. As noted in the Governance section on the previous page, our VP of ESG and SVP & Deputy General Counsel, communicate climate-related risks andopportunities to the Governance and Sustainability committee of the Board and ESG Governance Committee, which also considers the potential financial impact and time horizon of each risk and opportunity.
Across short-term (1-2 years), medium-term (2-5 years), and long-term (5-10 years) time horizons, Cardinal Health considers the impacts of climate-related physical and transition risks and opportunities on our physical long-lived assets and our products and services.
Through our enterprise risk management (ERM) process, the qualitative scenario analysis completed in 2021, and our property management and logistics teams, we identified climate-related risks and opportunities and organized them into key themes that may
impact Cardinal Health over the short-, medium-, and long-term:
Climate-related risks28:• Acute physical risk: In the healthcare industry, the timely delivery of products and services is critical to allow our healthcare partners to treat their patients. To meet our customers’ needs, Cardinal Health maintains a diverse, global portfolio of manufacturing,
distribution, and office facilities and constantly assesses the risk of climate-related physical events that could impede those facilities’ operations. Acute physical risks including but not limited to flooding, wildfire, and wind brought on by rising temperatures andsevere weather events are a significant climate-related risk to our operations over the short-, medium-, and long-term, and mitigating those risks is a critical piece of our business resilience strategy.
• Current and emerging regulatory risk: As a global distributor, energy and fuel represent a key resource to Cardinal Health. However, our reliance on energy and fuel also represents a key risk to our business. Domestically and abroad, regulations are being passed
focused on energy and emissions that could impose fines and other financial burdens on our business over the medium- and long-term time horizons. Additionally, volatile global energy markets and the resulting impact on pricing are short- and medium-term risks
that must be considered when conducting strategy planning.
• Market and reputational risk: There is a growing understanding of the value of managing ESG and climate-related risks among Cardinal Health’s stakeholder groups. Stakeholder expectations for transparency and action on climate continue to grow, and notmeeting these investor, customer, employee, or other stakeholders’ expectations may adversely impact Cardinal Health’s financial performance in the short-, medium-, and long-term. We are managing an increasing number of customer inquiries related to Cardinal
Health’s greenhouse gas (GHG) emissions and climate action plans. Climate-related questions are also becoming more standard in customer RFPs, making the requests for climate-related information relevant for both current and potential customers over the shortand medium-term time horizons.
Climate-related opportunities:• Energy sources: The development of new technologies present opportunities for Cardinal Health to optimize and decarbonize the transportation and distribution of goods within the healthcare delivery ecosystem. Whether upstream from Cardinal Health’s
distribution centers, within our own operations, or downstream delivery to our customers, our teams are evaluating and integrating lower- or zero-emission fuels and equipment or software that enable us to improve efficiency in the short-, medium-, and long-termtime horizons.
• Products and services: We are regularly challenged by our customers and the marketplace to continue developing and distributing products and services in a manner that reduces our impact on the environment. Cardinal Health has made strategic decisions within
our business units to recognize and respond to these challenges with the intent of improving the lives of the patients our customers serve while reducing our environmental impact over the short-, medium-, and long-term time horizons. These opportunities candifferentiate Cardinal Health in the market, build a positive reputation, and build stronger stakeholder relationships.
• Resource efficiency: Within Cardinal Health’s manufacturing operations, the ability to enhance the efficient use of resources is always present. Our teams regularly evaluate site-specific fuel and energy use and the related costs as these have a direct impact on site
operations and profitability. Additionally, we maintain line of site regarding material use and whether opportunities exist to repurpose scrap materials as pre-consumer recycled content in other processes, which help save on both the cost of materials and waste
generation over the short- and medium-term time horizons.

28T he inclusion of examples of potential climate-related risks relating to Cardinal Health should not be read as a characterization regarding the materiality or financial impact of such potential risks for purposes of applicable securities laws or any other laws of the United States.
For a discussion of risks that Cardinal Health has determined could be financially material, please see “Risk Factors” and other sections in and exhibits to our Form 10-K, as well as any such risk factors and other sections in and exhibits to our subsequent Form 10-Q filings.

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Strategy (continued)
Describe the impact of climate-related risks
and opportunities on the organization’s
businesses, strategy, and financial planning.

As noted above, Cardinal Health has identified climate-related risks and opportunities that can have a significant impact on the operational and financial performance of the business as well as our reputation over the short-, medium-, and long-term. These also serve as
Cardinal Health’s foundation for considering climate during business, strategy, and financial planning to mitigate risks and take advantage of opportunities.
Climate-related risks:• Acute physical risk: Cardinal Health’s Facilities and Real Estate Management team partners with our global insurance provider to regularly assess the risk of acute physical climate events on our manufacturing, distribution, and office facilities. As a part of thisassessment, we consider the potential loss expectancy at each facility from wildfire, wind gusts, storms, and flood risk in terms of both physical damage and business interruption. These loss expectancy figures are considered when preparing our business resilience,
strategic, and financial planning activities, which has resulted in capital expenditures across Cardinal Health’s portfolio of facilities to mitigate loss expectancy, improve resilience, and reduce our insurance premiums.
• Current and emerging regulatory risk: As regulations focused on energy and emissions are adopted domestically and abroad, Cardinal Health considers the impact on our operations when engaging in strategic and financial planning. For example, our Transportationand Logistics team identified a regulation within California’s South Coast Air Quality Management District (AQMD – Jurisdiction that covers Southern California, specifically large areas of Los Angeles, Orange, Riverside, and San Bernadino counties), which enacted the
Warehouse Indirect Source Rule (ISR). The Warehouse ISR is a credit-deficit system based on warehouse truck traffic. Through the Warehouse Actions and Investments to Reduce Emissions (WAIRE) program, operators must submit annual compliance reports and earnenough “WAIRE points” to offset the determined air quality impact or pay an annual mitigation fee. Cardinal Health has begun implementing various emission mitigation actions to decarbonize our operations in order to avoid paying an annual mitigation fee. These
actions include (but are not limited to) working with our fleet management partner to lease electric vehicles (now totaling six), installing electric vehicle (EV) charging stations, and increasing the number of EV trips going in and out of our facilities. In compliance year
2023, Cardinal Health implemented mitigation actions sufficient to cover all obligations resulting in zero fees.
• Market and reputational risk: In response to stakeholder and customer inquiries on ESG and climate, Cardinal Health’s ESG team has worked to improve our external-facing commitments and communications to meet changing expectations. For example, in fiscal
2023, Cardinal Health submitted our SBT to the SBTi for validation which includes our Scope 3 greenhouse gas (GHG) emissions. Additionally, we have measured and disclosed all relevant categories of Scope 3 GHG emissions for fiscal 2023 and included those figures inthis Report. Finally, the ESG team has increasingly attended quarterly business reviews with our suppliers and customers to provide updates on progress against our targets, present updates on our strategies to address material ESG topics and identify opportunities toincrease industry collaboration.
Climate-related opportunities:• Energy sources: Within our global logistics footprint, Cardinal Health has partnered with our global trade vendors, fleet management vendors, and operations leaders to transition to lower- and zero-emissions fuels and assets that not only help with decarbonizing ourlogistics activities but also hedge against future fuel price volatility. For example, our Global Trade team has taken advantage of opportunities presented by select marine shipping partners to leverage the use of sustainable marine fuel (SMF) to decarbonize some of our
product shipments. Additionally, in February 2023, Cardinal Health signed a six-year lease on two electric tractor-trailers. Based in our Ontario, California, facility, they deliver medical products throughout Southern California. Both run full-time routes, five days a week.
The trucks can go as far as 230 miles (depending on the weight of cargo on board, topography and time stuck in traffic) between charges. Finally, in 2023, Cardinal Health was named a High Performer in the U.S. Environmental Protection Agency’s SmartWay® program.
This designation means our fuel efficiency and air quality performance fell within the SmartWay programs’ top performance range.
• Products and services: Through Cardinal Health’s Sustainable Technologies™ business, we are helping to meet the demand for environmentally preferable products, providing single-use device (SUD) collections and reprocessing services. These processes extend thelife of medical devices, reduce waste, and offer products with lower carbon footprints. In fiscal 2023, Sustainable Technologies™ completed a lifecycle assessment to compare the environmental impact of using new, single-use intermittent pneumatic compression (IPC)
devices (used to prevent blood clots) instead of reprocessed, single-use compression sleeves. The reprocessing of IPC sleeves provides an environmental and economic benefit in comparison to single-use devices. The environmental footprint of reprocessed sleeves wasfound to be reduced in all categories compared to single-use devices, leading to a weighted normalized reduction of 43% across all categories. In a breakdown of the life cycle assessment results, reprocessed IPC sleeves were found to reduce the carbon footprint by40%; hospital waste disposal costs were reduced by 90%.
• Resource efficiency: Within our operations, Cardinal Health employees are encouraged to identify opportunities to improve energy and material efficiency where possible to reduce our impact. In fiscal 2023, a Cardinal Health manufacturing site located in Ireland
implemented a comprehensive energy reduction program with the aim of achieving an annualized electrical energy consumption reduction of 10%. The Cardinal Health facility implemented a data-driven approach to energy reduction following the examination
and understanding of the high energy uses across the facility. Through the implementation of energy efficiency measures and engaging with employees to generate collective buy-in, the Cardinal Health manufacturing facility achieved an 11.8% annualized electricalenergy reduction of 880,000 kWh through the implementation of more efficient HVAC units/AHU duct sealing, intelligent compressed air controls, and automation and deployment of smart equipment controls. The energy reduction achieved equates to a 157 metric
ton reduction in associated CO2 emissions.

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Strategy (continued)
Describe the resilience of the organization’s
strategy, taking into consideration different
climate-related scenarios, including a 2oC
or lower scenario.

Cardinal Health performed a qualitative analysis in fiscal 2021 using three different scenarios augmented with industry and geographic trends specific to Cardinal Health. The scenarios were used to evaluate the resilience of Cardinal Health’s business, strategy, andfinancial planning against changes occurring to the environments we operate within and rely upon. The three scenarios were all extended to the year 2030, which aligned with our existing GHG emissions reduction target and included:• 1.5oC trajectory using Representative Concentration Pathway 2.6 and Shared Socioeconomic Pathway 1.
• 3oC trajectory using Representative Concentration Pathway 6.0 and Shared Socioeconomic Pathway 4.
• >4oC trajectory using Representative Concentration Pathway 8.5 and Shared Socioeconomic Pathway 3.
Through this analysis, the Cardinal Health team recognized that our strategy must continue evolving as the impacts of climate change are felt throughout our business. Our ESG team continues to monitor and assess both the physical and transition risks that climatechange may pose to our business, and in fiscal 2024 we plan to refresh our climate scenario analysis and include a quantitative component in the future as part of planning for and responding to the impacts of climate change.

Risk Management
Describe the organization’s process
for identifying and assessing
climate-related risks.

The VP of ESG shares responsibility for the identification of climate-related risks and opportunities with Cardinal Health’s business leaders. Risks and opportunities are identified primarily through engagement and discussion with teams across the business, active
participation in industry groups, and news monitoring. The ultimate assessment and management of such risks and opportunities is led by the relevant impacted internal business partners and considers both physical and transition risks as well as existing and emerging
regulatory requirements related to climate change.
Climate-related risks and opportunities are then presented to Cardinal Health’s ESG Governance Committee, where they are prioritized based on significance and ultimately presented to the Board’s Governance and Sustainability Committee, which is responsible forboard-level oversight of climate-related risks and opportunities and the strategy to manage those risks.
Our ESG team works closely with our business partners in Legal, Finance, Accounting, and Government Relations to maintain line of sight into other emerging domestic and international regulations pertaining to limits on emissions, use of materials, waste management,
and financial controls on climate-related capital expenditures.

Describe the organization’s processes for
managing climate-related risks.

Just as the climate-related risk assessment process is managed by a cross-functional group including our Enterprise Risk Management (ERM) team, business unit leaders, VP of ESG, the ESG Governance Committee, and the Board’s Governance and Sustainability Committee,
the effective management of climate-related risks takes a cross-functional team of business leaders. Once the most significant risks are identified for prioritization, the ESG team engages with functional leaders to determine the impact each risk could have on our productand service offerings, raw material availability, and the performance of our locations and vehicle fleet. As noted in the Strategy section of this index, climate-related risks are then integrated into business, strategy, and financial planning activities at the functional-levelwithin Cardinal Health. The ESG team acts as subject matter experts and an on-going resource to business units to ensure that climate-related risks and their impacts are being defined and interpreted consistently throughout the enterprise, and the plan for risk mitigationis aligned with the strategic direction set forth by the ESG Governance Committee and the Board’s Governance and Sustainability Committee. The ESG team meets regularly on its own and with other business units to discuss climate-related risks, which keeps the ESG teamapprised of progress the business is making in managing such risks. The VP of ESG then provides updates to the ESG Governance Committee and the Board’s Governance and Sustainability Committee during regularly scheduled meetings throughout the year.

Describe how processes for identifying,assessing, and managing climate-relatedrisks are integrated into the organization’s
overall risk management.

As previously noted, the responsibility for identifying, assessing, and managing climate-related risks is shared among business leaders and the ESG team. Through these activities, climate-related risks and opportunities are shared with Cardinal Health’s ERM team forinclusion in their enterprise-wide risk assessment process. A summary of our ERM process and function at Cardinal Health is provided below:
The ERM function develops with the risk owners an initial risk rating for each identified risk. The assessments with initial risk identification, mitigation controls and risk ratings are then presented to the area’s leadership team for review and to make changes. A risk matrix isused to assist in rating each risk and contains guidelines for assessing a risk impact against the likelihood of the risk to occur. Each risk identified will be assessed (a score of 1-5) based on each of the impact factors identified (financial, reputational, and business strategy).
The scores of the individual impact factors are added together to determine the total impact score, and then the likelihood of the risk is assessed and given the appropriate value (1-5). These values of likelihood and impact are then plotted on a risk radar, to determine
the overall risk rating. This radar is plotted as necessary for risk review.
Business and functional leaders are responsible for addressing the risks that have been identified through the ERM process and determine the necessary risk mitigation action, assess its effectiveness, and monitor progress. The ERM function will facilitate the process andfurther support as necessary with annual reviews to assess progress of mitigation plans. Cardinal Health’s ERM function reports to our Chief Financial Officer, who oversees the ERM process. An ERM Steering Team led by our Chief Audit Executive and composed of senior
functional leaders sets strategic direction, defines risk appetite, drives accountability, and oversees Board communications. Oversight is provided by the ERM Steering Team, senior management, and the Board’s Audit Committee.

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Metrics & Targets
Disclose the metrics used by the organization
to assess climate-related risks andopportunities in line with its strategy and risk
management process.

Through our ESG materiality assessment, Cardinal Health identified energy and climate as an ESG topic that would be included in our three-year strategic plan. As our ESG report is prepared in accordance with the GRI Universal Standards and our index includes
disclosures in alignment with SASB standards for Health Care Distribution and Medical Equipment and Supplies, we report on GRI- and SASB-related climate metrics that include energy, greenhouse gas (GHG) emissions, fleet efficiency, and waste management. We also
disclose climate-related metrics through our annual CDP disclosure. The metrics are tracked, disclosed, and used to assess our progress against publicly-stated targets, risks, opportunities, and overall performance.

Disclose Scope 1, Scope 2, and, if appropriate,
Scope 3 GHG emissions, and the related risks

Cardinal Health measures our Scope 1 and 2 GHG emissions using the market-based method in accordance with the World Resources Institute (WRI)/World Business Council for Sustainable Development's (WBCSD) The Greenhouse Gas Protocol: A Corporate Accounting
and Reporting Standard (GHG Protocol) and we receive limited assurance annually from an independent third party. Please see our fiscal 2023 assurance statement here.
We also measure our Scope 3 GHG emissions across the categories that the ESG team at Cardinal Health determined to be relevant in accordance with the WRI/WBCSD’s Greenhouse Gas Protocol but do not receive assurance for those metrics at this time.
Emissions (mtCO2e)
Fiscal 2023 Scope 1 GHG emissions

163,044

Fiscal 2023 Scope 2 GHG emissions (market-based)

220,684

Relevant Scope 3 categories
1

Describe the targets used by theorganization to manage climate-relatedrisks and opportunities and performanceagainst targets.

Purchased goods and services

34,966,010

2

Capital goods

29,6663

Fuel- and energy-related activities

94,193

4

Upstream transportation and distribution

2,460,995

5

Waste generated in operations

35,736

6

Business travel

16,164

7

Employee commuting

34,864

8

Upstream leased assets

990 location-based method (LBM)
1,024 market-based method (MBM)11

Use of sold products

35,19312End-of-life treatment of sold products

240,942

13

Downstream leased assets

6,943 (LBM)
6,592 (MBM)

15

Investments

10,894

In September 2021, we publicly announced our goal to reduce aggregate Scope 1 and 2 GHG emissions by 50% by fiscal 2030, as compared to a fiscal 2019 base year. At the end of fiscal 2023, we achieved a 13% reduction in emissions compared to our base year.
Additionally, in fiscal 2023, we submitted our SBT, which includes Scope 3 GHG emissions, to SBTi for validation. We plan to release more information regarding that target following the validation process.
NOTE: In fiscal 2023, we restated our fiscal 2019 GHG emissions. These have been assured, as have fiscal 2023 emissions, as part of Cardinal Health's commitment to accurate data reporting that best represents our business. The restatement was done in part due tothe addition of new activities such as emissions from biomass and refrigerants; we also added market-based emissions calculations for Scope 2. Additionally, some data was removed due to the divestiture of the Cordis business, and therefore properties and activities
associated with that business have been removed from Cardinal Health's operational boundary.

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Basis of reporting
Greenhouse Gas (GHG) Emissions - Basis of Reporting
Guidance andBoundary

Within this report, Cardinal Health measures and discloses the company’s Scope 1, Scope 2, and relevant categories of Scope 3 GHG emissions in accordance with the following guidance and standards:• World Resources Institute (WRI)/World Business Council for Sustainable Development’s (WBCSD), The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (GHG Protocol)• WRI/WBCSD GHG Protocol Scope 2 Guidance• WRI/WBCSD GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard
For Scope 1 and Scope 2 location- and market-based GHG emissions, Cardinal Health selected an organizational boundary based on operational control. Therefore, only assets or facilities where our business operates and has the ability to directly influence emissions-generating activities areincluded in our Scope 1 and Scope 2 GHG emissions calculations. Boundaries for Scope 3 categories can vary slightly, as detailed below, but are generally defined as activities upstream from Cardinal Health’s operational control but limited to Tier 1 suppliers (i.e., those who contract directly with
Cardinal Health or a Cardinal Health business) and downstream from Cardinal Health’s operational control but limited to transactions made directly by Cardinal Health with customers or investees.

Scope 1
GHG emissions

Scope 1 GHG emissions were measured in accordance with the World Resources Institute (WRI)/World Business Council for Sustainable Development’s (WBCSD), The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (GHG Protocol). Cardinal Health selected an organizationalboundary based on operational control and direct emissions sources include stationary and mobile combustion. Fuel sources included in Cardinal Health’s calculation of Scope 1 GHG emissions include natural gas, gasoline, diesel, jet fuel, LPG, refrigerant loss, and palm kernel shells (biomass)29.
Cardinal Health obtains primary data from utility invoices, aviation reports, fuel receipts, fleet telematics, manufacturing site logs, and maintenance logs. Where primary data is not available, the Cardinal Health team uses generally accepted methods to estimate in order to calculate emissions using acomplete and accurate population of data for the reporting period. The following summarizes estimation methodologies used by Cardinal Health for Scope 1:• For facility-level data gaps, Cardinal Health uses the Commercial Building Energy Consumption Survey (CBECS) energy intensity values and facility square footage or historic monthly consumption values to estimate.
• In fiscal 2023, Cardinal Health took the first steps to understand and estimate fugitive emissions. Currently, about 80% of fugitive emissions is estimated, based on extrapolation of actual data. Cardinal Health is considering a phased approach for data collection for sites to begin reporting actual data forrefrigerant losses/leakages in the future.
• Biomass emissions are related exclusively to a single manufacturing site located in Thailand, which utilizes a biomass facility on-site to reduce the use of fossil fuels for energy. This site uses palm kernel shell for combustion to generate power. Cardinal Health leverages the provided emissions factors fromthe journal article “Life-cycle greenhouse gas emissions in power generation using palm kernel shell” (Sato, Issei, et al.)30 , and obtains source data collected from the site for tons of material purchased, to generate estimated emissions. Starting with total tons of palm kernel shell (PKS) from the reporting
period, converting to kilograms, Cardinal Health applies the provided conversion of 17.3 MJ/kg PKS to transform the data from weight to energy output based on a low heating value (LHV). From there, the LHV energy is converted to both N2O and CH4 equivalencies with the journal supplied emissions
factors and then GWP’s applied appropriately.
As noted above, Scope 1 fuel sources include palm kernel shells (PKS) which is considered to be a biofuel. Our Scope 1 emissions footprint includes the methane and nitrous oxide emissions from the combustion of these biofuels, converted into carbon dioxide equivalent. In accordance with the GHG
Protocol, Cardinal Health separately disclosed biogenic CO2 emissions generated from the combustion of this biofuel.
Scope 1 Emissions Factors:• 2023 Environmental Protection Agency (EPA) Center for Corporate Climate Leadership GHG Emission Factors Hub.
• California Air Resources Board High-GWP Refrigerants• IPCC Changes in Atmospheric Constituents and in Radiative Forcing, Table 2.14 Lifetimes, radiative efficiencies and direct (except for CH4) GWPs relative to CO2. For ozone-depleting substances and their replacements, data are taken from IPCC/TEAP (2005) unless otherwise indicated.
• A Comparative Life Cycle Assessment of Palm Kernel Shell in Ceramic Tile Production: Managerial Implications for Renewable Energy Usage

Scope 2
GHG emissions

Scope 2 GHG emissions were measured using the location- and market-based methods in accordance with the WRI/WBCSD GHG Protocol Scope 2 Guidance. Cardinal Health selected an organizational boundary based on operational control. Sources of emissions included in Cardinal Health’s
calculation of Scope 2 GHG emissions includes electricity.
Cardinal Health obtains primary data to calculate Scope 2 GHG emissions from utility invoices at sites that are within Cardinal Health’s operational control. Where primary data is not available, the Cardinal Health team uses generally accepted methods to estimate in order to calculate emissions
using a complete and accurate population of data for the reporting period. The following summarizes estimation methodologies used by Cardinal Health for Scope 2:• For facility-level data gaps, Cardinal Health uses the Commercial Building Energy Consumption Survey (CBECS) energy intensity values and facility square footage or historic monthly consumption values to estimate.
• To generate market-based emissions values, Cardinal Health applies the appropriately assigned market-based emissions factors as outlined below, to the total consumption per site that is not provided from renewable sources. Therefore, consumption that is used to calculate emissions equals
total annual consumption less annual consumption from renewable sources (in the case of Cardinal Health, on-site PV and green power contracts through utilities).
Scope 2 Emissions Factors:• Location-based method emission factors- 2023 International Energy Agency (IEA) Emission Factors- 2023 EPA eGRID Emission Factors

2930• Market-based method emission factors- 2022 Green-e Residual Mix Emissions Rates- 2023 International Energy Agency (IEA) Emission Factors

Diesel and gasoline consumption associated with carrier fleet includes only US fleet vehicles. Canada fleet contribute to an immaterial portion of fleet emissions (<5%) and has been excluded
Sato, Issei, et al. “Life‐cycle Greenhouse Gas Emissions in Power Generation Using Palm Kernel Shell.” GCB Bioenergy, vol. 14, no. 7, 2022, pp. 875–892, https://doi.org/10.1111/gcbb.12950- 2023 EPA eGRID Emission Factors- AIB 2022 Residual Mix Results- Electric Edison Institute (EEI) Electric Company Carbon Emissions
and Electricity Mix Reporting Database for Customers

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Scope 3
GHG emissions

Prior to measuring and disclosing Scope 3 GHG emissions, the Cardinal Health team assessed each of the 15 categories of emissions, as defined by the WRI/WBCSD GHG Protocol, for relevancy. Based on Cardinal Health’s understanding of each category’s definition and our business operations, weelected to exclude the following categories from our boundary based on the conclusions listed below:• Category 9 – Downstream Transportation and Distribution- A
 s Cardinal Health pays for the transportation and distribution of goods to the retailer, we include emissions related to this business activity within Category 4: Upstream Transportation and Distribution, which aligns with the guidance provided by the WRI/WBCSD GHG Protocol Corporate
Value Chain (Scope 3) Accounting and Reporting Standard.
• Category 10 – Processing of Sold Product- Cardinal Health does not manufacture intermediate goods that require additional processing following sale to customers.
• Category 14 – Franchises- Cardinal Health does not operate as a franchisor or franchisee.
The following table contains details regarding boundaries, activity data, and emissions factors used for each Scope 3 category:
Scope 3 Category

Methodology

Emissions Factors

Purchased goods
and services

Emissions are calculated using a hybrid-method and includes both spend-based and supplier-specific calculations:

EPA Supply Chain Greenhouse Gas Emission
Factors for U.S. Industries and Commodities
v1.1 (2022)• Across each of Cardinal Health’s business units, annual procurement figures by supplier were provided by either the accounts payable or procurement team leads. Additionally, both the U.S. and International indirect
procurement leads provided annual spend by supplier for inclusion in the calculation. Across each population of transactions included in the calculation of emissions, the suppliers comprising the top 90% of spend
were aggregated and assessed for emissions calculations.
• For suppliers representing 59% of total category emissions, Cardinal Health performed calculations using CDP supplier-specific emissions data by using the supplier’s Scope 1, 2 (location based) and relevant Scope 3
emissions, obtained from CDP and multiplying it by Cardinal Health spend with the supplier divided by supplier total revenue.
• The remaining suppliers spend was converted into emissions using the industry-based environmentally extended input–output (EEIO) emission factors published by the EPA then extrapolated to represent emissions
generated from 100% of upstream purchasing activity.

Capital goods

Emissions from capital goods are calculated using a spend-based method. Within each business segment, teams at Cardinal Health track actual spend that occurs during the fiscal year for projects that have been
approved by leadership. Actual spend figures are converted into emissions using the commodity-based EEIO emission factors published by the EPA.

EPA Supply Chain Greenhouse Gas Emission
Factors for U.S. Industries and Commodities
v1.1 (2022)

Fuel- and energyrelated activities

Emissions from fuel- and energy- related activities were calculated by fuel and energy type, by country, following the guidance set forth by the Greenhouse Gas Protocol Technical Guidance for Calculating Scope 3
Emissions Chapter 3 utilizing the average-data method requiring the quantities and types of fuel consumed and estimating emissions by using secondary (e.g., industry average) emissions factors.

2023 IEA Life Cycle Upstream Emissions
Factors (Pilot Edition)
DEFRA UK Government GHG Conversion
Factors for Company Reporting – WTT Fuels

Upstreamtransportation &distribution

Emissions are calculated using a hybrid-method and includes both spend-based and supplier-specific calculations:• Across each of Cardinal Health’s business units, annual contract distribution spend figures by supplier were provided by both U.S. and international indirect procurement leads. Across each population of transactions
included in the calculation of emissions, the suppliers comprising the top 90% of spend were aggregated and assessed for emissions calculations.

EPA Supply Chain Greenhouse Gas Emission
Factors for U.S. Industries and Commodities
v1.1 (2022)• For suppliers representing 30% of total category emissions, Cardinal Health obtained statements that contained emissions from the supplier’s business activities with Cardinal Health during the reporting period.
• The remaining suppliers spend was converted into emissions using the industry-based EEIO emission factors published by the EPA then extrapolated to represent emissions generated from 100% of upstream
purchasing activity.

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Scope 3
GHG emissions(continued)

Scope 3 Category

Methodology

Emissions Factors

Waste generated inoperations

Emissions from waste generated in Cardinal Health’s operations are calculated using weight of waste as entered by Environment, Health and Safety (EHS) professionals into our environmental management system ofrecord. Emissions factors used account for the end-of-life treatment of the waste, as well as the waste category.

2023 U.S. Environmental Protection Agency(EPA) Emission Factors for Greenhouse Gas
Inventories

Business travel

Emissions from business travel include air, rail, and rental car usage by all Cardinal Health employees when traveling away from their home office as noted in Cardinal Health’s HR system of record. Data for each mode oftransportation comes from our travel booking partner’s system of record and emissions are calculated based on passenger miles traveled. Cardinal Health’s boundary for the calculation is inclusive of all business-related
travel activity that is booked using our partners, which aligns with the Cardinal Health Employee Travel Policy. Any business travel booked by employees individually is considered outside the reporting boundary and isconsidered de minimus.

DEFRA/DECC Conversion factors for
Company Reporting (2023)

Employeecommuting

Emissions from employee commuting are calculated for U.S. employees only using data from our HR system of record that provides the zip code of each employee’s home address, the zip code of each employee’s
work location, and the number of days the employee has agreed to commute to the work location. Using this information, Cardinal Health calculates the distance employees commute over the reporting period andconservatively assume that every employee drives individually using a passenger vehicle.

2021 U.S. Environmental Protection Agency(EPA) Emission Factors for Greenhous Gas
Inventories

Emissions are also calculated for U.S. employees who are identified as being full-time remote workers, using a methodology published in a white paper by Anthesis Group in February 2021.

Anthesis Group, Remote Worker Emissions
Methodology, February 2021

Upstream leased
assetsEmissions for upstream leased assets are determined by Cardinal Health’s operational boundary definition for which stationary assets and activities fall within the boundary by leasing language. Leasing structures thatplace Cardinal Health as the lessee, operating an asset with little to no insight or control over utilities, have their energy and emissions placed in this category.

See Scope 2 GHG Emissions Factors

Use of sold product

Emissions are calculated for every Cardinal Health™ Brand product that has a plug load and is sold during the reporting period. Using the country of sale, the estimated useful life of the product, and the rated plug load,
emissions were calculated for the estimated electricity consumption of the products sold during the fiscal year.

• U.S. EPA Emissions & Generation Resource
Integrated Database (eGRID) Year 2021
(released 01/30/2023)• 2022 International Energy Agency(IEA) Emission Factors

End of life
treatment of soldproduct

Emissions are calculated using the weight of every Cardinal Health™ brand or manufactured product using items ordered by a customer and fulfilled by Cardinal Health as recorded in our sales system of record within
the medical segment only for the reporting period. Emissions factors used account for the end-of-life treatment of the waste.
The value reported excludes the following medical segment business units:• Medical Distribution – International• Cardinal Health Puerto Rico
• Cardinal Health Canada• Cardinal Health at-Home Solutions• Cardinal Health Singapore

2023 U.S. EPA Emission Factors forGreenhouse Gas Inventories

Downstream
leased assets

Emissions for downstream leased assets are determined by Cardinal Health’s operational boundary definition for which stationary assets and activities fall within the boundary by leasing language. Leasing structuresthat place Cardinal Health as the lessor or acting lessor (in the event of a sublease), operating an asset where the activities within the space are not controlled by Cardinal Health, have their energy and emissions placedin this category.

See Scope 2 GHG Emissions Factors

Investments

Emissions are calculated for all direct and indirect investments held by Cardinal Health as of the end of the reporting period.

U.S. EPA Supply Chain Greenhouse Gas
Emission Factors for U.S. Industries andCommodities v1.1 (2022)

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