Corporate Social Responsibility Report 2016 Walgreens Boots Alliance is the first global pharmacy-led, health and wellbeing enterprise. Our purpose is to help people across the world lead healthier and happier lives.

Our 2016 Corporate Social Responsibility Report covers the fiscal year that ended 31 August 2016.

In this year’s report:

Overview Marketplace

Introduction...... 1 Our CSR goals...... 2 28 Our vision, purpose and values...... 3

Our approach to CSR...... 4

Contributing to the United Nations Sustainable Development Goals...... 6 Transparency...... 30 Our impact...... 8 Ethical Sourcing...... 30 ...... About our Company...... 10 External Stakeholders 31

Stakeholder engagement...... 12 Workplace Community 32 14

Employee Health and Wellbeing...... 34 Equal Opportunities...... 36 Health and Wellbeing...... 16 Health and Safety...... 37 Young People...... 17 ...... Cancer Programs...... 20 About this report 38 Data management process...... 38

Environment Data...... 38 Community data...... 38 Environment data...... 39 22 Workplace data...... 39

Corporate governance...... 40 Our code of ethics...... 40

GRI content index...... 41

Assurance report...... 42 Energy...... 24

Waste...... 26 Legal notice and basis of preparation....43 Deforestation...... 27 Introduction iew e rv ov ty i

Walgreens Boots Alliance was honored with the United Nations Foundation’s Global Leadership Award in 2016, recognizing our ongoing Commun commitment to Corporate Social Responsibility. e nt

Stefano Pessina (l), James Skinner (r) Driving socially responsible business growth ronm around the world Env i

Walgreens Boots Alliance is privileged to Colleagues in both our legacy companies Through proactive support of our ace care for people and communities around have long pursued local CSR initiatives colleagues’ personal health and wellbeing tpl the world as we deliver our vision to be linked to the nature of our businesses. and by providing equal opportunities the first choice for pharmacy, wellbeing In our first full fiscal year as a combined for everyone, we are building a culture rk e and beauty. global Company, we focused on the CSR of looking after our people. This means Ma work that prioritizes our communities, that we are even more engaged to better Our commitment to Corporate Social environment, marketplace and workplace. serve our customers. Responsibility (CSR) is embedded in our Our global reach means we can drive ace drive to operate both a sustainable and We thank all of our employees for acting large-scale initiatives and replicate profitable enterprise. Advancing our locally to help people across the world successful programs around the world environmental, social and governance lead healthier and happier lives.

while collaborating with key stakeholders. Workpl performance involves many aspects of our Company, builds trust in our We strive to be global leaders in James Skinner brands and lies at the core of our supporting people and the planet and Executive Chairman everyday work to support healthy living. to innovate in the face of the long- Walgreens Boots Alliance, Inc. term challenges for all businesses due to environmental change and global population growth. To set CSR targets Stefano Pessina for the future we have developed internal Executive Vice Chairman and procedures for gathering data and Chief Executive Officer reporting performance. For fiscal 2016 Walgreens Boots Alliance, Inc. we collected data across our enterprise on community contributions, carbon emissions, energy use, waste disposal, 16 February 2017 employee retention and employee gender. These externally assured metrics, published in this report, will serve as the baseline for evaluating our progress in these areas.

Walgreens Boots Alliance Corporate Social Responsibility Report 2016 1 Our CSR goals

Delivering a CSR program that makes us proud

In the past year, I was often reminded In our first full fiscal year as a combined The United Nations Foundation of how much this Company inspires me. Company we strengthened our existing recognized our ongoing commitment I witnessed first-hand many examples activities by increasing the scale of our to CSR, honoring us in October 2016 of local initiatives from our businesses impact and sharing best practices. We with its Global Leadership Award. The around the globe that demonstrate how expanded successful local initiatives – for foundation cited our commitment to the CSR activities are truly embedded in example our U.S. stores raised $20 million U.N.’s recently published Sustainable our work. These initiatives take on even in fiscal 2016 for Red Nose Day, more Development Goals through the Get greater significance as part of our CSR than double the amount raised in the a Shot. Give a Shot. campaign, which strategy, through which we prioritize previous year. helped provide life-saving vaccines to our responsibility to the community, more than 15 million children worldwide As committed global citizens we choose environmental protection, doing business over the past three years. to aim high, and have set challenging fairly and treating our people with respect goals in 12 areas connected to our By remaining dedicated to causes, we and dignity. business activities, including helping have made a substantial impact in the I had the privilege of visiting our to fight cancer, reducing waste and area of cancer research. An example is the distribution center in Windsor, energy consumption, driving ethical partnership dating to 2011 with the EORTC Connecticut, USA, where specialized sourcing practices and promoting equal Cancer Research Fund to support the workstations address the needs of opportunities throughout the Company. first pan-European Biobank for colorectal employees with disabilities. I felt proud cancer. We continue to raise funds for We aspire to be a standout global CSR of Walgreens Boots Alliance’s long-term EORTC through numerous employee-led company; I am pleased to report that commitment to creating job opportunities events. By the end of fiscal 2016, 1,100 in fiscal 2016 we achieved important for people of all abilities. At an EnergyCare patients from 11 European countries had milestones such as providing life-changing event at our Nottingham support office enrolled in the biobank, a unique platform vitamins to nearly 100 million children and I learned more about how we encourage to develop personalized treatments. mothers in at-risk populations through our energy efficiency consciousness in our support of Vitamin Angels, harmonizing From my heart, I want to take this teams. I was touched by the passion our our ethical sourcing policies and piloting a opportunity to thank our employees, colleagues show for social, healthcare zero waste to landfill distribution center in suppliers and partners for showing they and environmental issues. the USA. care, by supporting and delivering a CSR program that makes us proud.

Ornella Barra Co-Chief Operating Officer Walgreens Boots Alliance, Inc. Leader of Corporate Social Responsibility

16 February 2017 2 Walgreens Boots Alliance Corporate Social Responsibility Report 2016 Our vision, purpose and values iew e rv

Our vision ov Be the first choice for pharmacy, wellbeing and ty beauty – caring for people and communities around i the world Commun Community e nt Our purpose e nt

We help people across the world lead healthier and ronm happier lives Env i Environm ace

Our values tpl Walgreens Boots Alliance takes seriously its aim of rk e Ma Marketplace inspiring a healthier and happier world, as reflected in

our core values: ace

Trust Respect, integrity and candor guide our actions to do the right thing Workpl Workplace Care Our people and customers inspire us to act with commitment and passion

Innovation We cultivate an open and entrepreneurial mind-set in all that we do

Partnership We work collaboratively with each other and our partners to win together

Dedication We work with rigor, simplicity and agility to deliver exceptional results

Walgreens Boots Alliance Corporate Social Responsibility Report 2016 3 Our approach to CSR

Around the world, every day, millions of people rely on the medicines we distribute and dispense. They rely on our local pharmacists for information, support and advice. They rely on the convenience of our retail presence to support their daily living and on our beauty products to look their best.

Our business values and the nature of our Another important step during fiscal day-to-day operations, which are rooted 2016 was aligning our target-setting in supporting communities and connected methodology with our business and to healthcare, inform and shape our CSR strategies. Through alignment approach to CSR. with the United Nations’ Sustainable Development Goals, conversations Since the Company was created through with our stakeholders, and stakeholder the combination of Walgreens and benchmarks, we’ve transitioned our Alliance Boots in December 2014, we have efforts into four key focus areas that will worked diligently to align our global CSR shape our CSR approach moving forward: strategy. As a global company inheriting the significant historical CSR contributions 1. Community – We strive to be a of our legacy companies, we are in a responsible neighbor in the communities position to make a profound impact. This we serve around the world report shows the progress we are making 2. Environment – We are determined to in combining our CSR practices. We are protect the environment and do our excited to evolve our CSR strategy into a part to ensure it flourishes for future more holistic approach, measuring and generations showing stakeholders our progress along 3. Marketplace – We aim to do business the way. fairly and with integrity 4. Workplace – We strive to treat our For the first time in fiscal 2016, Walgreens people with dignity and respect Boots Alliance collected data from all our businesses across the globe As we continue to integrate CSR into our on community contributions, carbon businesses, we are committed to setting emissions, waste disposal and employees measurable targets to hold ourselves by gender. Deloitte & Touche LLP accountable and to demonstrate our conducted a review of selected indicators annual progress. This is a process that within this report in accordance with will take time. It begins with the updated attestation standards established by the focus on key areas and with our global American Institute of Certified Public data collection for fiscal 2016, which you Accountants. Their assurance report can can read more about in the “About this be found on page 42 of this report. The report” section. data will serve as a baseline to show our future progress in these areas.

4 Walgreens Boots Alliance Corporate Social Responsibility Report 2016 • • • to: actions and are taking neighbors to our We our responsibility understand Community follows: as are specific area duringfiscal 2016. The goals explaining and our progress impact in that report this of asection in addressed is goal Each areas. focus four our of each three in goals, CSR 12 define to year this framework. We adjusted the framework CSR the central,within Company-wide communities and markets and fall local their to relevant both are that Our businesses engage in initiatives

cancer in the fightagainst and partnerships Develop and mobilize our resources world the in are they wherever potential Enable young to people achieve their serve we communities the of vitality the wellbeing health, and Support Environment • to: action are taking we integrity, with and To fairly compete Marketplace * • • • to: actions and are taking impact positive potential future generations, we our understand for resources its and earth the To protect

retail product brands that we sell we that brands product retail fortraceability the exclusive consumer of andtransparency ingredients their Create a global process that enables initiative aglobal in organizations other with net by deforestation 2020, collaborating Develop plans to help achieve zero andthrough increased recycling re-use drive for increasingly circular economies comparable basis*, and contribute to the a on create, we waste the Reduce Protocol Gas Greenhouse the by defined as emissions on a comparable basis* Reduce our energy consumption and any significant changes in operations existing Excludes the of impact acquisitions, disposals and Corporate Social Responsibility Report 2016 Report Responsibility Social Alliance Corporate Boots Walgreens

• • to: action taking are we respect, and dignity with To people our treat Workplace • • •

procedures policiesemployment practices, and our across everyone for opportunities To deliver our commitment to equal and wellbeing of our employees health the personal support Proactively serve we communities the in and markets the to relevance social greatest the engaging in issues that carry organizations key of external network Work collaboratively with a global across chain our supply rights human –protecting practices toContinue drive ethical sourcing customers, throughout the Company customers, caring foractively our employees and approach to and safety, health improveContinuously our robust National Cancer Institute. Cancer National country’s the for money raised celebrate an they where initiative Thailand atEmployees Boots 5

Workplace Marketplace Environment Community overview Contributing to the United Nations Sustainable Development Goals

Since United Nations member states 1. Understanding the SDGs: adopted an agenda in 2015 for sustainable We reviewed the scope of all 17 development including 17 aspirations goals and worked to understand the known as the Sustainable Development different targets that feed into each Goals (SDGs), Walgreens Boots Alliance of the goals. has worked to ensure that our overall CSR strategy, and the goals within this strategy, 2. Embedding the SDGs into work to achieve the SDGs. our goals: After a thorough understanding of Every Walgreens Boots Alliance CSR goal what each of the 17 SDGs entail, we has been mapped to one or multiple SDGs worked to align this understanding to make it easier to measure progress into our CSR goals. The SDGs and report our findings. Our approach to helped to not only streamline the aligning with the SDGs was broken down way we work toward our goals, but into five key steps: also to reinforce their motivation and direction.

Goals

Community Health and Wellbeing Young People Cancer Programs

Environment Energy

Waste Deforestation

Marketplace Transparency Ethical Sourcing External Stakeholders

Workplace Employee Wellbeing Equal Opportunities Health and Safety

6 Walgreens Boots Alliance Corporate Social Responsibility Report 2016 iew e rv ov

3. Integrating the SDGs into 5. Measuring and reporting Given our global impact, we have our activities: progress: decided to take the approach of ty

We are working with our individual Alignment to the SDGs is a journey addressing as many of the SDGs as we i businesses to address specific targets and we are only at the beginning. can, in areas where we as a Company can that are relevant to the SDGs. We are dedicated to communicating be the most impactful. We recognize that our progress and connection to the the 17 SDGs are interconnected and, with 4. Communicating and Commun SDGs in our annual CSR report. By multiple strands of activities throughout engaging our people: taking the first steps to align with our lines of business, we can make a In order to continue the alignment international frameworks (such as the significant and meaningful contribution to the SDGs, we are educating and e nt Global Reporting Initiative), we are to end poverty, hunger and inequality, engaging our employees about how excited to share our progress against take action on climate change and the

they can have a positive impact and ronm the SDGs on an annual basis. environment, improve access to health help the Company achieve its goals. and education, build strong institutions and partnerships, and more. Env i ace tpl rk e Ma ace Workpl

Walgreens Boots Alliance Corporate Social Responsibility Report 2016 7 Our impact

Walgreens Boots Alliance 2016 CSR Highlights At Walgreens Boots Alliance we are proud that bolster vitamin distribution in of the impact our CSR initiatives have on developing nations and through our work people in our communities and around with diverse suppliers and employees in the world. From our support of vanguard the United States, the people pictured on Gladys is a child in Guatemala cancer research in Europe, to donations these two pages are a testament to how who received twice yearly vitamin A supplements and deworming we make a difference. tablets, and a daily multivitamin, during 2015 and 2016 at her preschool in San Antonio Palopó on the shore of Lake Atitlan. The vitamins, provided through the Walgreens-Vitamin Angels partnership, helped supplement her limited diet. Her mother, the sole earner for her household, makes most of her money from weaving. Vitamin Angels partners with non-governmental organizations to provide life- changing vitamins and minerals for pregnant women, new mothers and children under five. Vitamin A deficiency, which is moderate in Guatemala, can cause blindness.

“Through partnering with companies that share our interests and goals for diversity, opportunity, and responsibility to society, we know that we will continue to move forward while helping others,” says Alison Gutterman, owner of Jelmar, a woman-owned firm that supplies cleaning products and rust removers to Walgreens.

8 Walgreens Boots Alliance Corporate Social Responsibility Report 2016 Jamie Graham, one of more than 900 employees at our U.S. distribution centers who identify as people with disabilities, iew e rv

has worked at the Walgreens ov Connecticut Distribution Center for eight years as a general warehouse worker. Jamie, ty shown here with Field Inclusion i Manager Joe Wendover, says the job has transformed her life: “This job has allowed me to be Commun Community more independent in what I do. The benefits are huge. I had no benefits before I started. I had no e nt life insurance. This job has helped e nt me financially.” ronm Env i Environm ace tpl rk e Ma Marketplace ace Workpl Workplace

“It is very rewarding to work on a project that gives cancer patients new and hopefully better treatment opportunities,” says Dr. Daniella Aust, a study coordinator for the European Organisation for the Research and Treatment of Cancer (EORTC) SPECTAcolor Biobank, which has been supported by numerous fundraisers held by employees at Walgreens Boots Alliance and its legacy businesses. “Platforms such as SPECTAcolor will be the only way to find novel treatment opportunities in the future.”

Walgreens Boots Alliance Corporate Social Responsibility Report 2016 9 About our Company

Our Company was created through the The three Divisions that make up our combination of Walgreens and Alliance Company are Retail Pharmacy USA, Boots in December 2014. This transaction Retail Pharmacy International and brought together two leading companies Pharmaceutical Wholesale. Additional with iconic brands, complementary information on these Divisions can be geographic footprints, shared values and found on our corporate website. a heritage of trusted healthcare services Additionally, Walgreens Boots Alliance through pharmaceutical wholesaling and has a portfolio of highly regarded community pharmacy care, dating back and long established product brands, more than 100 years. which we continue to grow on a global scale. Additional information about our product brands can also be found on our corporate website.

Our principal executive offices are located in Deerfield, Illinois, USA.

Owned businesses Equity method investments Branded products & franchises*

*Countries where the Company’s products are available for purchase or there are Company franchises (other than those countries where there are owned businesses, equity method investments or joint ventures)

10 Walgreens Boots Alliance Corporate Social Responsibility Report 2016 over people employed 400,000* iew e rv ov ty presence in more than *countries i

25 Commun

the largest retail pharmacy, health e nt

and daily living destination in the USA ronm and Europe Env i ace

Global leader in pharmacy-led, health and tpl rk e wellbeing retail with over 13,200* stores Ma in 11* countries ace Workpl

A global leading pharmaceutical wholesale and distribution network with over 390*distribution centers in more than 20*countries ➜

One of the world’s largest purchasers of prescription drugs and many other health and wellbeing products

*As of 31 August 2016, including equity method investments, using publicly available information for AmerisourceBergen

Walgreens Boots Alliance Corporate Social Responsibility Report 2016 11 Stakeholder engagement

Engaging and collaborating with our Walgreens has also continued its productive relationship with Safer stakeholders allows us to address the most Chemicals, Healthy Families. In addition to participating in quarterly dialogue, material sustainable issues in our industry. Walgreens is working closely with this organization to understand issues This dialogue provides us with a broad • Employees around ingredients used in the products and diverse understanding of our Performance management processes, it sells and produces, as well as to help stakeholders’ evolving priorities and employee engagement surveys and ensure alignment with best sustainability the issues that are of utmost concern to forums, union management forums and practices in our industry. them. Ultimately, this enables us to deliver work councils, consultations, training, We remained actively involved on the products and services that make positive one-on-one meetings, Company and boards of a number of organizations. impacts throughout our lines of business. business communications, annual During fiscal 2016 our Co-Chief Operating CSR report Our external sustainability advisory panel, Officer Alex Gourlay served as Vice • Local communities created in 2015 to identify sustainability Chairman of the National Association Local business forums, regular and ad topics that could be material to the brands of Chain Drug Stores (NACDS), while hoc meetings with local not-for-profit or products throughout their respective our President of Pharmacy and Retail groups, public consultations, employee life cycles, accomplished many things Operations Richard Ashworth served volunteering in fiscal 2016. In the past year the panel on the organization’s Retail Advisory • Suppliers has been instrumental in helping to Board. Co-Chief Operating Officer Ornella Supplier forums, one-on-one meetings, give us clear direction to a sustainability Barra was Chairman of the International policy statements, site visits, supplier assessment covering our product brands Federation of Pharmaceutical Wholesalers conferences, supplier audits such as No7, Botanics, Soap & Glory and (IFPW) during the fiscal year. Over the • Customers Liz Earle. To read more about this panel’s course of the year, accomplishments with (pharmacists, consumers, patients) assessment, please visit the Marketplace these organizations included working with Customer panels, focus groups, section of this report. NACDS to develop its CSR agenda, and customer satisfaction surveys, direct supporting the IFPW Foundation’s CSR feedback, conferences for pharmacists, Stakeholders – engagement agenda, such as its partnership with the pharmacist associations channels Gavi Vaccine Alliance, which works with • Academics • Non-governmental organizations industry and governments to increase Face-to-face meetings, research and Donations and sponsorships, joint access to immunizations in poor countries. sustainability projects, guest-speaker fundraising events, partnerships, in-kind slots, internships, logistical support, support and volunteering initiatives, annual CSR report face-to-face meetings, formal feedback, • M e d i a critical friends Performance updates, media releases, • Stockholders and investors interviews with senior management, Regular dialogue, annual meeting annual CSR report • Government bodies and agencies Consultation responses at national In fiscal 2016, we made a number of and international levels, association strides in sustainability based on our membership, industry panels, public engagement with a range of stakeholders. affairs outreach, site visits For example:

Non-governmental organizations: Walgreens worked with The Humane Society of the United States, an animal protection group, and with The Humane League, a farm animal advocacy nonprofit, to create a cage-free egg policy in fiscal 2016.

12 Walgreens Boots Alliance Corporate Social Responsibility Report 2016 iew e rv Government bodies and agencies: ov Walgreens worked with state governments across the United States during fiscal 2016 on efforts to combat ty drug abuse and curb the misuse of i medications by providing a year-round safe and convenient way to dispose of unwanted medications and to make Commun the lifesaving opioid antidote naloxone available without requiring a prescription. Safe disposal helps to combat drug e nt In the USA, Walgreens, along with other abuse and misuse of medications. corporate sponsors, in collaboration

with Resource Recycling Systems (RRS), ronm and with participation from state and of the circular economy and using this to compared adherence rates for more than local chambers, city officials and other advocate successfully for policy reviews 300,000 patients, focusing on those filling Env i civic stakeholders, supported the U.S. on the harmonization and simplification of new prescriptions for statin medications at Chamber of Commerce Foundation waste and recycling collection services. Walgreens pharmacies in neighborhoods ace Corporate Citizenship Center’s Beyond with different racial makeup. Academic partnerships: 34: Recycling and Recovery for A New tpl The U.S.-wide reach of Walgreens and Other engagements: Economy. Focused on breaking through its access to communities make it a key We continue to work closely with rk e the current 34 percent recycling barrier collaborator in health studies. organizations and industry networks Ma in the United States, the project is on a variety of issues. For example, designed to provide a scalable model for In July 2016 Walgreens announced it we participate in the Consumer Goods improving recycling and recovery rates will participate in an ambitious medical Forum in two key ways. First, our chief ace in order to help communities, cities and research program, the U.S. Precision executive, Stefano Pessina, serves on the businesses achieve their circular economy Medicine Initiative (PMI) Cohort Program. organization’s board of directors. Second, and sustainability goals. The project will Customers will be able to enroll in the

a number of our people sit on various Workpl be conducted in a phased approach program through Walgreens stores, Consumer Goods Forum committees. In beginning in January 2017. clinics, website and mobile app. January 2016, the forum’s board approved Participants will share health history In the UK, the Circular Economy Task a Social Resolution on Forced Labor, and information about their lifestyle and Force is a government-endorsed, which states that members of the forum environmental exposures to contribute to business-led group convened by Green will strive to eradicate forced labor from a landmark research effort. The program Alliance; a charity and independent their value chains and will continue aims to engage at least one million policy think tank focused on ambitious not to tolerate forced labor within their participants in the USA to improve the leadership for the environment. We own operations. ability of preventing and treating disease are a founding member of the Task based on individual differences in lifestyle, In addition to the resolution, the Consumer Force through our legacy company environment and genetics. Goods Forum’s Social Sustainability Alliance Boots. A circular economy Committee, which Walgreens Boots emphasizes reuse and durability, Walgreens also announced in fiscal Alliance is part of, researched key drivers reducing waste and pollution, and 2016 the results of a study developed of forced labor in global supply chains renewable energy. in collaboration with the University and developed industry principles of Chicago that suggest pharmacy Over the past four years, the Circular to counter these drivers. The forum’s interventions and benefit plan designs Economy Task Force has made significant member companies are working together with low co-pays could be key factors in progress in driving policy and activity to fine-tune and assure the adoption of helping to improve adherence to statin around more efficient use of resources the principles. We intend to report our (cholesterol) medications for patients in the UK. Its focus has been on progress against these commitments in living in minority communities. The study, providing analysis on the opportunities future reports. published in the peer-reviewed Journal of Racial and Ethnic Health Disparities,

Walgreens Boots Alliance Corporate Social Responsibility Report 2016 13 Community

Walgreens Boots Alliance strives to be a responsible neighbor in the local communities we serve. Our efforts are centered around making communities healthier and happier.

Our business of making medicines, general merchandise and services available to customers and patients embeds us in communities around the world, where we are a significant local employer. Our conveniently located stores put professional pharmacists at the heart of healthcare in the communities we serve and our online channels provide further options for our customers.

To continue making meaningful impacts in our local communities, we have focused our efforts on three key areas through our Community Goals.

Health and Wellbeing: To support the health, wellbeing and vitality of the communities we serve Young People: To enable young people to achieve their potential wherever they are in the world Cancer Programs: To develop and mobilize our resources and partnerships in the fight against cancer

14 Walgreens Boots Alliance Corporate Social Responsibility Report 2016 iew e rv overview ov ty i Commun e nt e nt ronm Env i Environm ace tpl rk e Marketplace Ma ace Workplace Workpl 13.6 million noses sold

$20 million Raised

Where the money goes: Money donated to the Red Nose Day Fund and proceeds from Red Nose Day merchandise help children in poverty. For every $1, we give 10 meals for those in need. For every $10, an essential immunization for one child. For every $30, clean water for one family.

Walgreens Boots Alliance Corporate Social Responsibility Report 2016 15 Health and Wellbeing Red Nose Day and beyond

“Red Nose Day is what helps us keep going, Examples of these programs include: • Through an 11-year partnership and if we didn’t have this program these kids with International Health Partners could be going down paths that wouldn’t (IHP), Europe’s largest coordinator of donated medicines, Walgreens help them succeed in life.” Boots Alliance, including its legacy businesses, has provided medical —Joseph Mclaughlin, director of the Sipayik Boys and Girls Club in Perry, Maine, supplies on an ongoing basis to aid a beneficiary of Red Nose Day funds. agencies and healthcare companies to support natural disaster relief and In 2016 Walgreens employees across the Several weeks before and after the refugee crises. Walgreens Boots USA embraced the spirit of Red Nose second annual U.S. Red Nose Day, on Alliance also provides medicines for Day for the second year in a row. To raise 26 May, Walgreens asked customers pre-packed kits of essential medicines money and awareness for the charity to purchase red noses and other red for UK healthcare professionals who campaign they did everything from items such as beads and bow ties, with travel overseas on short-term medical throwing red paint on store managers proceeds benefitting the Red Nose missions in the developing world. to sharing images of themselves on Day Fund. Walgreens also absorbed • The First Ladies Health Initiative, social media. Through sales of 13.6 marketing costs for the campaign. The spearheaded by African-American million red noses and other activities activities culminated in a two-hour women church leaders and sponsored with customers, employees and supplier live broadcast on NBC with popular by Walgreens, provided no-cost partners, Walgreens hit its expanded comedians and Hollywood stars, echoing medical screenings and personal fundraising goal, raising $20 million, the original UK Red Nose Day in 1988. contacts in fiscal 2016 to help more than double the amount raised for In alignment with its grant methodology, detect or prevent illnesses which the inaugural event in 2015. The funds the Red Nose Day Fund distributed disproportionately impact African- went to providing nutritious meals, donations to programs including: Boys & American and Latino communities. essential medicine, clean water and other Girls Clubs of America, which provides The annual program at close to 150 vital aid and services to children in need safe places for children to learn and play churches in five U.S. cities is designed in the USA and internationally, making after school; Children’s Health Fund, to reach people in minority and low- Red Nose Day an anchor of Walgreens which brings essential medical services income communities who are at a Boots Alliance’s goal of supporting health to underserved children; Covenant higher risk for certain diseases but less and wellbeing. House, which provides shelter and likely to seek medical attention. services for homeless youth; hunger “The entire Walgreens organization relief organization Feeding America; and • In advance of U.S. National HIV Testing and its customers’ support have been Save the Children, which provides critical Day on 27 June 2016, Walgreens and absolutely vital to the success of Red early childhood programs. Greater Than AIDS, a leading national Nose Day,” said Janet Scardino, chief public information response to the executive officer of Comic Relief Inc., In addition to Red Nose Day, Walgreens domestic HIV/AIDS epidemic, teamed the charity behind Red Nose Day. Boots Alliance strives to support health up with health departments and local “While the numbers are impressive, the and wellbeing in local communities in AIDS service organizations (ASOs) to truly gratifying part of Red Nose Day many different ways. Our people and offer free HIV testing and counseling is knowing that the lives of so many businesses around the world participate about new prevention strategies, children will be transformed.” in volunteering activities, fundraising including Pre-Exposure Prophylaxis activities and awareness campaigns. (PrEP). Testing took place at Walgreens stores in 150 participating cities including Atlanta, Baltimore, Chicago, Dallas, New Orleans and Memphis.

16 Walgreens Boots Alliance Corporate Social Responsibility Report 2016 Young People: Making a difference iew e rv overview ov ty i Commun e nt ronm Environm Env i ace Walgreens expanded its Get a tpl Shot. Give a Shot. program in

2016, its third year of work with rk e the United Nations Foundation MarketplaceMa to provide life-saving polio and measles vaccines to children in Walgreens has made a difference, one Walgreens added impact to the campaign need around the world. Donations ace vaccine at a time. Donations to the Get a in 2016 by generating social engagement to the program have helped Shot. Give a Shot. program have helped through emotional videos, interactive provide more than 15 million vaccines. Walgreens makes a provide more than 15 million life-saving social units, valuable flu shot health

donation to the U.N. Foundation’s WorkplaceWorkpl polio and measles vaccines to children content and prompting patients to share Shot@Life campaign every time a in need around the world. Walgreens their flu shot selfies with #giveashot. patient gets an immunization of expanded the campaign in fiscal 2016, The social channels drove 139 million any type. which marked the third year of the displays of the ad on Facebook, more than program, by making a donation to the 500,000 engagements (such as clicks, United Nations Foundation’s Shot@Life shares or likes) on Twitter, and 76,000 Boots UK customers and colleagues campaign every time a patient got an engagements on Pinterest. raised $1.4 million in November 2015 for immunization of any type, up to a total of “Vaccines protect and improve the lives of BBC Children in Need; a total of more than $2 million. The previous year, Walgreens millions of children in developing countries $14 million over 12 years of supporting donated $1 million and matched a each year,” said Kathy Calvin, president the charity. BBC Children in Need funds narrower range of vaccines. and chief executive officer of the U.N. a number of projects that work with We work with the U.N. Foundation and Foundation. “The prevention of measles children and young people facing a range other organizations to identify countries deaths has been the single largest of disadvantages or challenges in their and programs where we can make contributor to reducing childhood deaths lives such as poverty, deprivation, abuse, significant impact in community health and over the last decade and we are now neglect or any kind of disability. The Boots in preventing communicable diseases. so close to ending polio. By expanding relationship with BBC Children in Need For example, the Get a Shot. Give a Shot. our partnership with Walgreens, we can goes well beyond donations, building on campaign has provided critical support support U.N. efforts to help children the links our pharmacies and stores have for polio immunization programs in access these life-saving vaccines around with their local communities. Boots stores Tanzania and Afghanistan and measles the globe.” and employees get involved with BBC immunization in Chad and East Timor. Children in Need partners in their areas,

Walgreens Boots Alliance Corporate Social Responsibility Report 2016 17 Her Royal Highness The Duchess of Cornwall (m), Patron of the National Literacy Trust, visited Boots Opticians in Peterborough volunteering to teach children about Walgreens also continued to work on a in the UK to find out more about dental health, helping to put on seasonal number of programs with WE Charity, an the Boots Opticians partnership events at youth centers, holding exercise international organization that partners with the National Literacy Trust. and leadership workshops and much more. with communities to help them lift The partnership, which aims to themselves out of poverty using a holistic, As of August 2016 the Company neared break the cycle of illiteracy, gave sustainable five-pillar development model. away 350,000 copies of children’s its goal set in May 2014 of helping to eye health book Zookeeper Zoe provide 100 million children and pregnant in fiscal 2016, to help detect women in at-risk populations in the USA undiagnosed eye conditions and in other countries around the world that affect an estimated 1 million with essential vitamins and minerals children in the UK. Low literacy to help combat malnutrition, through a is most prevalent in the poorest partnership with Vitamin Angels. communities and potentially correlated to vision problems. New initiatives around Vitamin Angels Boots Opticians employees in fiscal 2016 connected employees and also visit schools to encourage customers to some of the kids impacted reading, promote eye health by the program. Store employees and provide teachers with vision mailed greeting cards to Vitamin Angels screening tools. recipients and the children responded back to the stores with cards.

Walgreens continued to partner with the U.S. Department of Health and Human Services on a flu shot voucher program, in its sixth year in fiscal 2016, to help our local communities. Through this program, Walgreens has provided more than $50 million in free vouchers to uninsured and underinsured residents in the USA and Puerto Rico.

18 Walgreens Boots Alliance Corporate Social Responsibility Report 2016 Walgreens sponsored four WE Days in Romania program. Teach for Romania Community data fiscal 2016 in Illinois, Minnesota, California recruits talented future leaders, trains We measured our businesses’ fiscal and Washington. WE Day brings together them to become inspiring teachers and 2016 cash and non-cash donations to local, national and international young people who participated in WE places them in high-need schools where charitable and community groups iew e rv Schools, a program in which students they are given the support to make a that work in health, education, social develop action plans to improve their difference for students who are at risk welfare and other areas. These metrics ov do not include donations raised in community and the world. Walgreens also of dropping out of school. employee, customer and supplier sponsored curriculum through the WE fundraisers. See pages 38-39 of this

report for additional data. ty

are Love campaign, which encourages i students to show appreciation for people How the Company contributes* who get overlooked at school and in cash their community.

non-cash Commun Walgreens customers can also contribute to healthcare, education, water or Children in the rural Kenyan financial opportunity projects for people e nt village of Kipsongol gather at a in developing communities through the well donated through funds raised 39%

Walgreens/ME to WE platform, WE Impact ronm during the fiscal 2015 Give H2OPE Lives. The programs are funded through to Others campaign. The program is

61% Env i purchases in Walgreens stores of WE a collaboration between Walgreens, rafiki bracelets and selected, exclusive Unilever and ME to WE, a social seasonal WE products. enterprise that is part of the We ace Charity, to provide access to clean One example of many fundraising water through select Unilever Areas impacted by the Company’s tpl efforts at our businesses around the product purchases at Walgreens. contributions* world took place in Romania in fiscal rk e The collaboration continued in health

2016. Farmexpert, our pharmaceutical Ma fiscal 2016, raising funds to donate social welfare wholesale business in Romania, made more than 13.1 million gallons of other a donation to support three teachers clean water to another Kenyan education

during one school year in the Teach for community. Wells help reduce the ace incidence of waterborne disease to 7% families and eliminates travel time 8% to collect water, allowing children Workpl more time in the classroom. 26%

59%

The types of groups the Company contributes to* Local ORGANIZATIONS INternational ORGANIZATIONS National ORGANIZATIONS

25%

41%

34%

*Within Deloitte & Touche LLP’s review scope as detailed on page 42 19 Cancer Programs Long-term partnerships are key

From a Thailand talent show to solidarity In partnership with the EORTC, Alliance Between October 2011 and August breakfasts in Spain; from charity soccer Boots supported the creation of the first 2016, Walgreens Boots Alliance and its in the United Kingdom to a 5K/10K run pan-European Biobank for colorectal legacy businesses have raised nearly in Mexico, Walgreens Boots Alliance cancer. Three years later, during fiscal 5.2 million euros ($6.3 million) for employees around the globe together 2016, we reached an important milestone EORTC, surpassing the original goal with corporate sponsorships raised funds with 1,100 patients participating in the of 5 million euros. for cancer programs in fiscal 2016. EORTC SPECTAcolor biobank program. Since 2009, Boots UK’s partnership with These patients were recruited from Walgreens Boots Alliance takes a Macmillan Cancer Support has aimed to 28 hospitals and research institutions in comprehensive approach toward make a positive impact on the lives of 11 European countries. supporting cancer programs, including those affected by cancer by significantly advancing research, expanding SPECTAcolor, “Screening Patients for increasing the amount and accessibility prevention and assisting people and Efficient Clinical Trial Access,” is the first of cancer information and support families affected by cancer. Our legacy ever prospective fully annotated tumor Boots can provide to customers in its businesses have made a significant samples Biobank and Biomarker analysis trusted stores and online. Through the impact through long term commitments, platform for genetic profiling of patients partnership more than 2,200 Boots which Walgreens Boots Alliance has built suffering from advanced colorectal cancer. Macmillan Information Pharmacists on. Those include a partnership since This platform develops personalized have been trained to offer support to 2011 with the European Organisation for treatments based on the results of tissue cancer patients and their loved ones. the Research and Treatment of Cancer sampling analysis. An estimated 600 More than 800 Boots Macmillan Beauty (EORTC), a seven-year partnership with to 1,000 patients with advanced Advisors have also been trained to help UK-based charity Macmillan Cancer colorectal cancer are expected to enroll women, both in our stores and out in the Support and a multi-year history of on a yearly basis. communities where they live and work, collaboration with the U.S. Leukemia manage the visible side effects of and Lymphoma Society (LLS). cancer treatment.

Farmacias Benavides in Mexico sponsored the Rosa Fuerte 5K/10K run to raise funds for Fundación Alma, which helps women with breast cancer.

20 Walgreens Boots Alliance Corporate Social Responsibility Report 2016 Employees of Alliance Healthcare España held a fundraising activity

for the European Organisation for iew e rv

Research and Treatment of Cancer overview ov (EORTC). ty i Commun

Boots UK colleagues, customers, can provide better care for patients. At one important fundraiser, more than e nt suppliers and partners raised $3 million Walgreens blood cancer patients will have 250 employees gathered in Nottingham for Macmillan Cancer Support in fiscal access to LLS’s Information Resource for soccer and netball tournaments. ronm 2016, bringing the total to more than Center where they can access guidance

• In Spain, employees organized activities Env i $23 million since the partnership began. on treatments, supportive care, financial in 23 warehouses of Alliance Healthcare support and information about clinical Boots Republic of Ireland has partnered España, raising funds for the EORTC. trials. Also, Walgreens will accelerate its for more than four years with the Irish ace support for LLS’s Light The Night Walk • In France, Alliance Healthcare

Cancer Society and in fiscal 2016 raised tpl fundraising campaign, which helps fund warehouse employees raised money more than $250,000 for the organization’s

research to find cures and supports access for the EORTC through a run and a rk e Night Nursing service, which provides to treatment for all blood cancer patients.

disco party. Ma free end-of-life care to cancer patients, allowing them to remain in their homes. “Since we launched our partnership • In Thailand, Boots employees Throughout the partnership, the total with Walgreens nearly a year ago, it is performed at an annual talent show amount raised by Boots Republic of already demonstrating a benefit for blood for dozens of their colleagues, raising ace Ireland has been more than $1 million, cancer patients, and there’s more to thousands of dollars for the country’s or just over 2,700 nights of nursing come. Walgreens and LLS together are National Cancer Institute (NCI). care. Boots Republic of Ireland has also addressing the critical unmet medical Workpl • Farmacias Benavides in Mexico implemented a program, the “Boots Irish need represented by blood cancers, sponsored the Rosa Fuerte road race to Cancer Society Information Pharmacists,” through dedicated patient support benefit Fundación Alma, its third year of to raise cancer awareness and provide services and pharmacist education. collaboration with the foundation. More patients and local communities with We are confident that this shared value than 3,500 runners participated, raising access to information on cancer, as well as collaboration will set a high standard for funds to donate 20 reconstructive support and referrals. non-profit and industry collaborations as surgeries and 300 external prostheses we look to the future of cancer cures,” In the USA, under Walgreens Boots to uninsured or underinsured women says Louis J. DeGennaro, Ph.D., president Alliance’s comprehensive CSR strategy, with breast cancer. and chief executive of LLS. legacy fundraising traditions are taking In the USA, Walgreens was a key sponsor on a larger dimension. Walgreens is a To support the fight against cancer, for the Stupid Cancer Road Trip in longstanding supporter of The Leukemia Walgreens Boots Alliance employees fiscal 2016, a cross-country grassroots & Lymphoma Society (LLS) through around Europe held fundraising initiatives campaign raising awareness for cancer fundraising at individual stores. Our throughout the year. Other fundraisers, in young adults. Stupid Cancer helps partnership entered a new phase with a in Asia and Latin America, gathered young adults find support from peers corporate-level collaboration launched donations for cancer programs in those and reinforces messages about cancer in March 2016, under which LLS and regions. Fundraisers during the year screening, fertility preservation and side Walgreens will continue to help patients included: effect management. manage their disease. • In the UK, Alliance Healthcare employee LLS will train Walgreens pharmacists fundraising and company contributions on blood cancer information so they for the EORTC totaled nearly $200,000.

Walgreens Boots Alliance Corporate Social Responsibility Report 2016 21 Environment

At Walgreens Boots Alliance we have the ability to drive large-scale initiatives and positively impact our environment, which is why we aim to protect it and do our part to ensure it flourishes for future generations.

We assessed where we can make the greatest impact in the realm of environmental efficiencies and identified three key goals. While our Company promotes safe drinking water initiatives through our community programs, we are not a high-use water industry, and therefore have chosen to focus on energy, waste and deforestation.

This section outlines our environmental efforts in fiscal 2016 and the progress we are making through our three Environmental Goals.

Energy: To reduce our energy consumption and Scope 1 and Scope 2 emissions on a comparable basis* as defined by the Greenhouse Gas Protocol (GHGP)** Waste: To reduce the waste we create, on a comparable basis*, and to contribute to the drive for increasingly circular economies through increased re-use and recycling

Deforestation: To develop plans to help achieve zero net deforestation by 2020, collaborating with other organizations in a global initiative

*Excludes the impact of acquisitions, disposals and any significant changes in existing operations

**The GHGP, established by the World Resources Institute and the World Business Council on Sustainable Development (WBCSD), sets the global standard for how to measure, manage, and report greenhouse gas emissions; Scope 1 emissions arise directly from sources owned or controlled by the Company while Scope 2 emissions are those generated by purchased electricity, heat and steam consumed by the Company; Scope 3 refers to other indirect emissions

22 Walgreens Boots Alliance Corporate Social Responsibility Report 2016 iew e rv overview ov ty i CommunityCommun e nt ronm Env i ace tpl rk e MarketplaceMa ace WorkplaceWorkpl

Our Moreno Valley, California distribution center sent 4 metric tonnes of waste to landfill in August 2016, down from an average of 22 metric tonnes a month in fiscal 2015, through a zero waste to landfill pilot program. The program is a key initiative as Walgreens continues to define and implement a Company-wide best-in-class waste and recycling program in the United States.

Walgreens Boots Alliance Corporate Social Responsibility Report 2016 23 Energy Boots UK accelerates progress toward Mayday target

The Boots UK support office in Nottingham held an energy fair organized by our EnergyCare program in September 2015 to celebrate 100 years of energy generation at its efficient Combined Heat and Power Walgreens Boots Alliance is involved investing in technology to reduce energy Plant. The celebration included in multiple energy efficiency projects, consumption; and sourcing electricity an outdoor movie screening alternative energy management from low carbon generation sources. Our that was powered by children programs and interaction with utilities investments are particularly focused in the and adults pedaling bicycles. toward programmed demand-response retail stores, which account for the largest The plant generates the majority curtailment of the energy we use. Each portion of carbon emissions. of the energy for the support business is committed to reducing its office site. In the UK, Spain and elsewhere in Europe, energy intensity. Across our Company, our businesses moved forward with Walgreens Boots Alliance continues to programs to reduce energy consumption invest on a prioritized basis to reduce and our carbon footprint in fiscal 2016, our impacts. while sharing knowledge with our In the UK, our businesses work to business in the United States. We will work reduce energy use through three to implement comprehensive programs in main strands: engaging and educating Walgreens stores and buildings in fiscal colleagues around energy consumption; 2017 that expand on existing energy savings programs in the USA. The Prince of Wales, is to reduce CO reduce to is Wales, of Prince The 2007 challenge by His Royal Highness target,reduction agreed to following a This CO ambitious target. Mayday UK Boots the toward progress accelerating is program UKBoots footprint. The lighting upgrade the of 24 to percent equating lighting, the with upgraded been have stores 600 approximately 2016, fiscal of end the of ayear. As for households UK 1,700 over million enough hours, kilowatt to power a consumption of reduction around 7.9 for accounted 2016 fiscal in UK the in stores Boots in replacements lighting LED to pinpoint areas for improvement. data using and lighting LED to conversions conditioning and refrigeration efficiency, through improved ventilation, air heating, Walgreens this commitment is supporting Challenge. Buildings the Better supporting (ICF) consultant external an by reviewed data from calendar 2010 that was real estate, compared consumption with of feet square million 100 2020 across by 20 by percent use energy reducing Challenge, Walgreens is committed to of Energy’sDepartment Buildings Better in the partnership through its In the USA, stores. our in experience the controls to reduce carbon while improving refrigeration and building management We are also investing in improved food progress. significant made have we UK, conscious culture among colleagues in the program that encourages an energy replacement program and an EnergyCare fewpast years, including the LED lighting the over programs of avariety Through 2005. in open were that stores Boots at target reduction emissions this reach to track on were we 2016, fiscal of end the of As basis. 2020, acomparable and on 2005 between percent 30 by emissions 2 (carbon dioxide) 2

carbon emissions. help drivers lower fuel consumption and or idle their engines, all of which can speed, excessively, brake they when drivers alerts that asystem vehicles, its 2016 for technology in Lightfoot installing began negotiations contract during fiscal vehicles. Alliance In the Healthcare UK, 1,100 than more of fleet its in emissions carbon reduce help to technology new of trial a conducted Healthcare substantial Alliance 2016, fiscal in UK the In Division. in our Pharmaceuticaldelivery Wholesale reduce carbon emissions from product to aims also Alliance Boots Walgreens progress. substantial represents this aDrating, received which Walgreens submission a year earlier, to the market and to the individual Compared these. address to strategies has policies implemented and actions, Company the which to extent the and risks assessment of environmental issues and arecategory rated on completeness, climate the in CDP the to Submissions B. of rating a achieved and 2016, fiscal in (CDP) Project Disclosure Carbon the to submission joint first-ever their made UK) Boots and (Walgreens UK and USA the in stores retail Alliance’s Boots Walgreens Corporate Social Responsibility Report 2016 Report Responsibility Social Alliance Corporate Boots Walgreens

its fleet of over 1,100 vehicles. 1,100 over of fleet its help reduce in emissions carbon to 2016 fiscal in technology new trial of a substantial conducted in UK the Alliance Healthcare 25

Workplace Marketplace Environment Community overview Waste Pilot project sets stage for comprehensive U.S. waste programs

In fiscal 2016, Walgreens diverted more than 1,800 metric tonnes (4 million pounds) of product from landfills across the United States by donating them to Feeding In its first full fiscal year as a combined With Company-wide data collected in America, the largest domestic company, Walgreens Boots Alliance fiscal 2016 for the first time, the Retail hunger-relief organization. shared best practices across the Pharmacy USA Division will have Donations of slightly damaged or enterprise on waste reduction. We established a baseline for diversion discontinued products, screened appointed a Director of Waste Reduction rates for municipal solid waste. This will for safety, include food as well who is working across the entire Company better position Walgreens to continue as toiletries and household items on collaborative, strategic and innovative developing a comprehensive zero waste that often cannot be purchased ways of reducing waste. We are active to landfill approach that will include through government assistance participants in the American Chamber of distribution centers, retail stores and programs. Featured in this photo is Feeding America food Commerce’s Beyond 34: Recycling and support center offices. distribution in Illinois. Recovery for a New Economy project, The Walgreens distribution center in the Consumer Goods Forum’s (CGF) Moreno Valley, California, USA, launched Solid Waste Working Group & Food a zero waste to landfill pilot program in Waste Working Group, and the Retail fiscal 2016. The pilot aims to contribute Industry Leader’s Association’s (RILA) directly to our CSR environmental Environmental Compliance, Sustainable sustainability initiatives. Once fully Consumption and Sustainability groups. developed into an effective multi-stream Walgreens Boots Alliance is working to recycling and waste reduction program, identify realistic waste reduction targets Walgreens aims to replicate the program and is in the process of establishing throughout its network of 17 distribution new possibilities in different countries, centers in the USA and one in Puerto Rico. while taking into account available Walgreens also began a request for infrastructure. Our new global data proposals to identify waste removal service collection process will give us valuable partners to collaborate on innovative information for measuring performance sustainability solutions, increase diversion and progress in this area in future years. rates for waste removal and improve recycling rates.

26 Walgreens Boots Alliance Corporate Social Responsibility Report 2016 Environment data Deforestation Integrating standards We measured our fiscal 2016 carbon emissions and energy use to establish across the Company baselines as well as track our progress in the future. See pages 38-39 of this iew e rv report for additional data. ov Reducing deforestation is important to Recent measures we have taken in this Total Company CO2e emissions Walgreens Boots Alliance because in our area include the following: by source* supply chains and businesses we use Energy ty In calendar year 2015, Boots UK achieved i significant amounts of materials such as more than 90 percent of wood, pulp Product delivery wood, paper, palm oil, soy and beef. The Business travel and paper used in products and goods production of these items contributes to not for resale from credibly certified or 2% deforestation, which destroys habitats Commun recycled sources. And, in fiscal 2016, for plants and animals, affects local Boots introduced a new supplier portal communities and is a major impact on 12% to capture data on palm oil and soy climate change. e nt use in products, which has greatly Since the formation of Walgreens improved the depth of traceability data Boots Alliance, we have prioritized for these products. ronm integration of standards for traceability In the USA, in fiscal 2016, Walgreens 86% Env i and sustainable sourcing across the modified its paper purchasing by reducing company. Walgreens Boots Alliance the basis weight of the paper used for its is a signatory to the Consumer Goods ace newspaper advertising insert program. Forum 2020 commitment to achieve

Energy use by Division (GWh)* tpl Walgreens centrally sources paper for its zero net deforestation by 2020. These newspaper insert program, requiring that retail pharmacy USA standards, based on principles and criteria rk e it be purchased from credibly certified or retail pharmacy international for sustainable sourcing developed by Ma verified sources. Walgreens carries out Pharmaceutical wholesale stakeholders such as WWF’s Global random audits to help ensure compliance. Forest Trade Network and the Roundtable 4% on Sustainable Palm Oil (RSPO), will help In addition, effective fiscal 2016, ace position us to further reduce deforestation Walgreens implemented a new process 14% related impacts. for sourcing paper product goods not

for resale, designed to ensure that all Workpl We recognize this is a complex subject products within this group came from and not all of our businesses are at credibly certified or verified sources. This the same stage. We are developing a enabled traceability and accountability 82% consistent approach based on what our within the chain of custody. key stakeholders regard as best practice.

CO2e emissions from energy, by type*

Electricity gas other In fiscal 2016, Alliance Healthcare 1% España achieved its zero waste to 5% landfill target for the first time at its largest warehouse, located in Polinya, not including customer returns, damaged and out of date stock. The warehouse decreased waste sent to landfill by 41 metric tonnes over the two calendar 94% years ending 30 December 2015.

*Within Deloitte & Touche LLP’s review scope as detailed on page 42 27 Marketplace

Our approach to the way we operate sustainably in the marketplace is simple. We aim to do business fairly and with integrity.

Operating sustainably in the marketplace starts with understanding where our products come from, holding our suppliers accountable for using ethical sourcing and promoting human rights, and consistently engaging with external stakeholders to understand the most material issues facing our markets and industry.

Through our assessment process we’ve identified three key areas that will guide our approach to marketplace sustainability.

Transparency: To create a global process that enables transparency of ingredients and their traceability for the exclusive consumer retail product brands that we sell Ethical Sourcing: To continue to drive ethical sourcing practices, protecting human rights across our supply chain External Stakeholders: To work collaboratively with a global network of key external organizations engaging in issues that carry the greatest social relevance to the markets and in the communities we serve

28 Walgreens Boots Alliance Corporate Social Responsibility Report 2016 iew e rv overview ov ty i CommunityCommun e nt ronm Environm Env i ace tpl rk e Ma ace WorkplaceWorkpl

Sustainable ingredients in our product brands are important to us. Our external Advisory Panel for Sustainability guided us on traceability issues in fiscal 2016.

Walgreens Boots Alliance Corporate Social Responsibility Report 2016 29 Transparency

Created in 2015, our external Advisory We received views on transparency and The Company has worked with a range Panel for Sustainability is comprised of traceability of product ingredients of stakeholders, including UK industry seven independent experts from industry, and on how to ensure we address issues group the Cosmetic, Toiletry & Perfumery civil society, and corporate governance. around manufacturing, climate change and Association, to understand and address The panel is chaired by Mark Goyder, supply chains. The panel helped us identify this industry-wide issue. We have also founder and chief executive of Tomorrow’s business targets for fiscal 2017 to build been working with our suppliers, many of Company, and the other members are responsible and sustainable supply chains, whom have already committed to phase Oonagh Harpur, senior advisor on strategy, create brands with a caring social purpose out plastic microbeads, to develop further reputation and governance; Tobias Webb, and build engagement on sustainability measures in this area. founder of Innovation Forum; Stephanie and CSR across our company. Boots brands and exclusive beauty and Draper, deputy chief executive of Forum Within their end of year review the personal care products that contained for the Future; community development panel stated: “We warmly welcome the microbeads were reformulated, and as consultant Tom Levitt; Alex Maitland, high level ambitions expressed by the of the end of 2015, are being produced corporate relations manager at Tomorrow’s leadership of the Company in relation to without plastic microbeads. Boots as a Company; and Yogesh Chauhan, director social and environmental supply chain retailer will no longer purchase products of corporate sustainability at Tata issues and the steps they are considering with plastic microbeads after December Consultancy Services. The panel offers making towards creating a sustainable 2017. In the USA, the Company is insights, anticipates opportunities and supply chain. If these ambitions are working with its suppliers to reformulate responds to risks. fulfilled then, in our view, the Company its product brands to eliminate plastic During fiscal 2016, the panel helped guide has the potential to become a recognized microbeads in advance of U.S. state and a sustainability assessment covering our leader among sustainable brands.” federal legislation deadlines. product brands such as No7, Botanics, Another example of how the Company Boots UK has also been working Soap & Glory and Liz Earle. This process has worked with external stakeholders collaboratively with the water treatment was conducted with 150 stakeholders, on traceability is the issue of plastic industry, suppliers and stakeholders to including suppliers, sustainability experts, microbeads, a type of waste that can enter address other materials which are prone investor houses and consumers, and watercourses and oceans and contribute to being incorrectly disposed of in waste collated more than 2,000 data points. to marine litter. water systems and to develop consistent labelling for non-flushable products.

Ethical Sourcing

Walgreens Boots Alliance continues to exploitation of workers through any form brands. In addition, we conducted more recognize its responsibility to address and of forced or bonded labor, slavery, human than 1,200 ethical compliance assessments mitigate any risk of modern slavery and trafficking or labor practices that involve on new and existing suppliers in the human trafficking in its operations. The harsh or inhumane treatment. production of our product brands and Company took a number of actions during worked with suppliers on remedial action Walgreens Boots Alliance requires its fiscal 2016 to help do our part to eradicate plans where non-compliance has been vendors to be subject to this policy and to these abhorrent practices and to meet the identified. We also developed a formal share it with any subcontractors they use. requirements of the UK Modern Slavery rapid escalation process for any issues The Company has contracted with service Act 2015 and the California Transparency in within our supply chain. provider Dow Jones Risk & Compliance to Supply Chains Act of 2010. provide due diligence reviews of business In response to the California Transparency The Company established a global Ethical partners around the globe. Act, the Retail Pharmacy USA Division Trading Standards Policy that consolidated created an annual online training course The Company also convened an internal vendor responsibility and ethical sourcing that is required for all relevant employees. global task force on the modern slavery statements from our legacy businesses crisis, with representation by senior Our 2016 Modern Slavery and Human into a consistent worldwide set of managers from legal, compliance, human Trafficking Statement and our Ethical standards. Primary among the provisions resources, procurement and our product Trading Standards Policy can be found on in the new policy is our opposition to the our corporate website. 30 Walgreens Boots Alliance Corporate Social Responsibility Report 2016 External Stakeholders

Engaging with our stakeholders helps An area of extensive stakeholder antidote naloxone without requiring a iew e rv ensure that we understand and seek to engagement in fiscal 2016 involved the prescription. As many states worked to ov address their concerns. We listen to our epidemic of opioid overdoses in the update their rules, Walgreens announced stakeholders to understand evolving United States, which Walgreens sought plans to make naloxone available priorities and interests, and also share to contribute to solving through two without a prescription in 35 states and ty our own experience in important issues initiatives. in Washington D.C. As of 31 August, the i to the wider community. In fiscal 2016, naloxone program had been implemented First, Walgreens worked with state Walgreens Boots Alliance worked in 18 states. governments and regulators across the with dozens of non-governmental country to allow for medication take- Another example of work with external Commun organizations, government bodies back programs to be implemented in stakeholders in fiscal 2016 was Walgreens and agencies, employee groups, local pharmacies. In February 2016, Walgreens adopting a policy on cage-free eggs. community groups, suppliers, customer

announced the first ongoing national This was developed through work with e nt panels, pharmacist associations, effort of its kind by a retailer to install safe The Humane Society of the United States academics and the media to deepen medication disposal kiosks in drugstores animal protection group and with The our understanding of their expectations ronm across the country. To help combat Humane League, a farm animal advocacy and interests.

drug abuse and reduce the misuse of nonprofit. Walgreens is committed to Env i For example, as a model of success medications, the kiosks provide a year- providing 100 percent cage-free shell and in hiring people with disabilities, round safe and convenient method to liquid eggs to stores nationwide by 2025,

Walgreens has been sought out by dispose of unwanted, unused or expired based on available supply. To read more ace some 200 employers, civic leaders and prescriptions, including controlled about our cage-free statement, please tpl government officials who wish to study substances, at no cost. visit the Walgreens website. and benchmark our disability inclusion rk e As of 31 August 2016, Walgreens had programs and practices. Ma installed nearly 500 kiosks at pharmacies In fiscal 2016 Walgreens initiated dialogue in 34 states and Washington, D.C. Since with Safer Chemicals, Happier Families implementation of the safe medication to help us understand issues around disposal program, more than 9 metric ace ingredients. Similarly, we engaged in tonnes of medications have been dialogue with the American Chamber of collected and safely disposed.

Commerce around best practices in waste Workpl Second, Walgreens worked with disposal and recycling. regulators to help update rules to allow for dispensing the lifesaving opioid

As of 31 August 2016 opioid overdose antidote naloxone was available in Walgreens stores in 22 U.S. states following engagement with state regulators and governments.

Walgreens Boots Alliance Corporate Social Responsibility Report 2016 31 Workplace

The purpose of Walgreens Boots Alliance is to help people around the world lead healthier and happier lives. We do this through the hard work and dedication of our valued employees and we recognize that taking care of their health and wellbeing is a top priority.

We have a rich history of providing training programs and job opportunities for people with disabilities. By embracing diversity and inclusion, while maintaining our focus on driving operational excellence, we can improve our collective performance and profoundly impact the lives of our patients and customers.

Through the following three key goals, we strive to create a workplace that treats everyone with dignity and respect.

Employee Health and Wellbeing: To proactively support the personal health and wellbeing of our employees Equal Opportunities: To deliver our commitment to equal opportunities for everyone across our employment practices, policies and procedures Health and Safety: To continuously improve our robust approach to health and safety, actively caring for our colleagues and customers, throughout the Company

32 Walgreens Boots Alliance Corporate Social Responsibility Report 2016 iew e rv overview ov ty i CommunityCommun e nt ronm Environm Env i ace tpl rk e MarketplaceMa ace Workpl

Boots UK’s new healthcare apprenticeship program is designed to generate excitement about careers in community pharmacy.

Walgreens Boots Alliance Corporate Social Responsibility Report 2016 33 Employee Health and Wellbeing

The benefits of having women in leadership was discussed at the Walgreens Boots Alliance Global Supporting young people in work and has seen increased and sustained Executive Women’s Conference in July 2016. education, training and developing our engagement since it began in 2013, employees in healthcare, retail and other is repeated two or three times each careers, and providing them with tools year, with approximately 10 activities to stay healthy are part of the heritage offered each period. More than 45,000 of our legacy companies. At Walgreens employees enrolled in the Walgreens Boots Alliance, we launched or expanded medical plan participated in healthy on several initiatives in these areas in activities in January-April 2016, earning fiscal 2016. points that are redeemable at Walgreen stores and at Walgreens.com. The points More than 50 young people, aged 16 are earned by completing wellness to 18, participated in Boots UK’s new programs and activities such as health healthcare apprenticeship program, coaching, getting a flu shot, joining a which is designed to generate excitement weight management or smoking cessation about careers in community pharmacy. program and more. The apprentices learn on the job in paid positions at the most vibrant Boots stores The Walgreen Benefit Fund assists across the UK. During their 12-month employees experiencing hardship. program, apprentices are trained to offer The employee-supported non-profit industry-leading healthcare advice and organization, established in 1939, assists dispense medication within the pharmacy. employees and retirees facing financial Boots UK plans to expand the program in difficulty due to accidents, long illnesses fiscal 2017. or natural disasters. In fiscal 2016 the Benefit Fund provided more than $2 In the USA, the Balance Rewards wellness million in assistance to 1,406 employees engagement program continued to and retirees. grow in fiscal 2016. The program, which

34 Walgreens Boots Alliance Corporate Social Responsibility Report 2016 Employees give directly to the Benefit Education providers to Walgreens warehouse positions. These jobs provided Fund or donate through the Charity University include DePaul University; the candidates with accredited training Choice payroll deduction plan. Loyola University of Chicago; Lake and skills building to gain confidence Walgreens employees donated more Forest Graduate School of Management, about sustaining a life without crime. than $700,000 through Charity Choice University of Maryland University College The candidates applied through two iew e rv in fiscal 2016, with the five choices for (UMUC); Webster University; the University recruitment agencies and went through a ov payroll deduction being United Way, the of Phoenix; and DeVry University. Tuition formal interview process. American Cancer Society, the American discounts of 10 percent to 25 percent In fiscal 2016, our human resources and ty

Heart Association, the Juvenile Diabetes are available to many Walgreens team i CSR teams launched the Global Citizen Research Foundation and the Walgreen members and their families. Initiative, where 10 colleagues from across Benefit Fund. In collaboration with business-led charity Walgreens Boots Alliance were nominated

Another ongoing initiative that promotes Business in the Community (BITC), Boots to attend the Developing Global Citizens Commun wellbeing for our employees is Walgreens UK and Alliance Healthcare in the UK event in London. University, which helps our people build have continued to lead the Reducing Re- During the two-day program, participants their careers by providing them with the offending through Employment network, e nt discussed critical CSR topics, networked tools and resources to learn and grow. which has convened 19 different member and met with senior leaders to gain a

Every year, Walgreens University delivers companies since 2012, primarily from ronm broader understanding of our Company. hundreds of hours of training courses that the Boots supply chain. The network are developed both internally and through builds partnerships with prisons and They also attended the “Future Leaders Env i other educational institutions. In fiscal 2016 social enterprises to offer employment Summit,” sponsored by Fujitsu, which the University launched an exciting new opportunities to ex-offenders to help them formed part of the annual Business in ace career development platform that aims to rebuild their lives free from crime. Boots the Community Responsible Business help employees grow their careers. Also UK was also one of the earliest companies Awards Gala. The summit and awards tpl in fiscal 2016, more than 2,200 employees to sign up to the international Ban the Box dinner, which celebrated the role rk e participated in leadership development campaign, which encourages employers businesses play in creating a fairer Ma programs, including LEAP, Walgreens to give ex-offenders a fair chance to society and a more sustainable future award-winning program for assistant store compete for jobs by removing the criminal in the UK and internationally, brought managers. Employees who complete record check box from hiring applications. together approximately 1,600 guests from ace training through Walgreens University can business, communities, non-governmental Through a three-year partnership with also receive college credit through our organizations, government and the HM Prison & Young Offenders Institute university partners. media at the O2 arena in London on

Sudbury, as of 31 August 2016 Boots UK Workpl 11 July 2016. had supported 82 ex-offenders through temporary paid work placements in

Colleagues attend the two-day Developing Global Citizens event in London.

Walgreens Boots Alliance Corporate Social Responsibility Report 2016 35 Equal Opportunities

“Walgreens is on the cutting edge in believing The Company strives to promote the diverse experiences and voices of its that people with disabilities can do the same employees through engagement with employee-driven business resource work as anyone else.” groups (BRGs). A number of important initiatives grew out of this engagement —Carla Gaouette, associate vice president of the national job training and placement program for Community Enterprise. in fiscal 2016. One example was the two-day Walgreens Boots Alliance Global Executive Women’s Conference in July In fiscal 2016 Walgreens continued to Walgreens distribution centers are built 2016. More than 250 female directors and build on its reputation for integrating for access with touch screens, adjustable vice presidents from across the Company people with disabilities throughout our work stations and iconography. As of 31 gathered for the event in Wheeling, U.S. workplaces, welcoming diverse August 2016, more than 900 employees Illinois, near our support office, to discuss suppliers, recruiting military veterans, at 18 Walgreens distribution centers, 17 in topics related to the benefits of women tapping into business resource groups the USA and one in Puerto Rico, are self- in leadership. The event, hosted by the representing diverse communities identified as individuals with disabilities, Diversity & Inclusion department and among employees, and partnering with which is more than 10 percent of total the Women of Walgreens (WOW) BRG, community and professional groups employees in those workplaces. underscored the importance of hiring and representing people of color. retaining women and other diverse talent, Walgreens expanded strategic recruiting both in the support office and in stores. In 2012, Walgreens launched the relationships with external organizations nationwide Retail Employees with in fiscal 2016 to encourage more military Our global cross divisional function, Disabilities Initiative (REDI), which veterans and individuals with disabilities Global Brands, established a Diversity and continued to grow in fiscal 2016. As of 31 to consider careers at Walgreens. Partners Inclusion team in December 2015, focused August 2016 the program has enrolled for this initiative include Hirepurpose, on engaging senior team members and more than 1,200 externs, identified by which shares job opportunities with driving awareness and education about publicly funded community providers, transitioning veterans at military bases diversity and inclusion. The function’s each of whom completes up to six weeks and career events, full-service disability leadership team participated in a coaching of in-store training on cash register recruitment solution GettingHired, and session on inclusive leadership and operation, customer service, stocking RecruitMilitary, which hosts the nation’s unconscious bias, and this workshop was and loading. largest single-source veteran database. rolled out to extended leadership teams. Additionally, Walgreens Veteran Network More than 65 percent of REDI externs members engaged with newly hired have completed the training and received employees through networking and a minimum evaluation score of 3.0, peer mentoring. allowing them to apply for employment with a “recommended for hire” flag. Walgreens has long-standing partnerships Walgreens is casting a wider net for talent with the League of Latin American Citizens by working to include more people with (LULAC), the National Council of La disabilities at the corporate level through Raza (NCLR) and the Hispanic Alliance partnerships with U.S. Leaders Business for Career Advancement (HACE). In Network, Talent Acquisition Portal (TAP) November 2015, Walgreens co-sponsored and GettingHired. LULAC’s Latinos Living Healthy: Feria de Salud in Brownsville, Texas, an event that encourages healthy eating habits and regular exercise. Additionally, Walgreens has sponsored the Health/Tu Salud Pavilion at NCLR’s annual conference for the past five years.

36 Walgreens Boots Alliance Corporate Social Responsibility Report 2016 Health and Safety iew e rv We are dedicated to conducting our The Walgreens Security Operations Workplace data ov worldwide business operations with the Center provided critical support on We measured our one-year and five- utmost concern for the health and safety several emergencies, including winter year retention rates as of 31 August 2016. The five-year figures include storm Jonas in January 2016, which of all employees, agency staff, customers, existing employees of businesses that ty business partners, contractors and the closed 800 Walgreens stores and left have become part of Walgreens Boots i general public. We fully recognize the 98 stores without power along the U.S. Alliance. See pages 38-39 of this report for additional data. duties placed upon ourselves under East Coast. We also provided support relevant health and safety regulations during severe flooding in August 2016 Commun in all countries in which we operate, in southeast Louisiana, which impacted Employee retention* and encourage open dialogue with approximately 260 employees, some all stakeholders. of whom lost homes, cars and personal e nt possessions. During these emergencies 68% A global chief risk officer chairs the the Security Operations Center and WORKING FOR WALGREENS BOOTS Walgreens Boots Alliance Health, ronm support office teams expedited plans for ALLIANCE FOR MORE THAN 1 YEAR Safety and Environmental Committee the resumption of business operations that is responsible for the effective Env i and supported the needs of employees management of all health, safety and and their communities. 34% environmental matters throughout the ace worldwide organization. All Divisions are Boots UK relaunched its compliance WORKING FOR WALGREENS BOOTS ALLIANCE FOR MORE THAN 5 YEARS required to have processes to govern the audit program on a digital platform in tpl management and performance of health, fiscal 2016 to include a range of safety *Within Deloitte & Touche LLP’s review rk e safety and environmental matters in their standards that better support and scope as detailed on page 42 Ma business operations. inform store leadership. This program has already delivered improved store Several health and safety initiatives were performance, as demonstrated by a rise launched in fiscal 2016 at Walgreens, ace in the number of stores achieving the including safety training programs for top score between January and July employees engaged in stockroom 2016. Boots UK also launched a program activities and for awareness and Workpl aimed at reducing the frequency of store prevention of slips and falls. Additionally, employees falling on stairs. Walgreens launched a safety award program in retail stores and distribution centers. Walgreens also launched a Seniors Safety Outreach program that enabled pharmacists to engage more Walgreens supported Louisiana than 250,000 seniors and provide tips employees during severe on living, shopping experience and flooding in August 2016. medication safety.

37 About this report Data

As Walgreens Boots Alliance becomes emissions, energy use, waste disposal, Walgreens Boots Alliance gathered fiscal 2016 a fully integrated company, we are employee retention and employee gender, data in a number of areas to establish a baseline developing a plan to publish a more and use the data to inform and assist in the for our future CSR reporting. We plan to use comprehensive CSR report over the course development of individual CSR programs these externally assured metrics to evaluate our of the next three years. In order to achieve in each business. progress in the coming years. this, we have begun to align the contents The data on contributions will help us measure The data presented within this report of this report against the Global Reporting our impact in our three Community goals reflect the ongoing operations of Initiative (GRI) Standards. Just as GRI is by showing how the Company supports the Company and were produced in evolving to a new modular structure that organizations that work in areas such as health, accordance with the Walgreens Boots will continually be updated to address education and social welfare. Alliance Corporate Social Responsibility the most critical, up-to-date sustainability Performance Data Basis of Preparation, The data on carbon emissions, energy use and issues, we too anticipate that our alignment which can be found in the Corporate waste disposal allow us to track our progress on to this framework will hold us accountable Responsibility area of the Company’s two of our Environment goals: reducing energy to evolve our CSR program to address corporate website in the “About this consumption and emissions and reducing the these key issues. Although this report is report” section. waste we create. And the figures on employee currently not “in accordance” with the core retention and employees by gender will provide GRI option, we have taken initial steps to CSR performance data is collected insight into our progress in our Workplace address GRI disclosures. The location of comprehensively on an annual basis. All goals of fostering employee wellbeing and these disclosures can be found in our GRI submissions by individual businesses are equal opportunity. content index at the end of this report on prepared by local finance teams and local page 41. CSR champions and are reviewed by senior Community data finance leaders. In addition to internal This report covers data and progress from For the 12 months ending 31 August 2016 reviews, we believe external assurance fiscal year 2016 and includes content enhances the credibility and transparency Community contributions by Division* from all our global operations. The prior $million of information reported. Deloitte & Touche report from fiscal 2015 can be found on Retail Pharmacy USA 31.1 LLP conducted a review of selected the sustainability section of our corporate Retail Pharmacy International 7.8 indicators within this report in accordance Pharmaceutical Wholesale 1.2 website. We plan to continue to report on with attestation standards established by 40.1 an annual basis moving forward. the American Institute of Certified Public How the Company contributes* We welcome feedback on the contents Accountants. Their assurance report can $million of this report as well as our CSR strategy. be found on page 42. Cash Please contact us at [email protected]. Charitable 22.1 The fiscal year that ended 31 August 2016 Other 2.5 Data management process: represents the first year that CSR data 24.6 was collected across the entire Company. Non-cash We have a Company-wide approach to Therefore, no prior year comparatives are Employee time 5.7 recording, measuring and reporting CSR presented in the summary tables and the In kind 7.6 Management costs 2.2 performance, including a set of reporting CSR data provided will form the baseline 15.5 criteria and a set of CSR measures and for future reporting. 40.1 performance indicators that are applicable across the Company. We capture data Areas impacted by the Company’s on community contributions, carbon contributions* $million Health 23.5 Education 3.0 Data collected by business Data reviewed by senior Social welfare 10.3 finance teams assisted by finance leaders Other 3.3 CSR champions 40.1

The types of groups the Company contributes to* $million Data published annually in Data independently reviewed Local organizations 16.6 Walgreens Boots Alliance by Deloitte & Touche LLP National organizations 9.8 CSR Report International organizations 13.7 40.1

38 Walgreens Boots Alliance Corporate Social Responsibility Report 2016 Environment data CO2e emissions from energy, by Division* For the 12 months ending 31 August 2016 000 metric tonnes Our energy data combine emissions generated Retail Pharmacy USA 1,857 Waste by method of disposal* directly from sources owned or controlled by Retail Pharmacy International 242 000 metric tonnes the Company (Scope 1) and those generated by Pharmaceutical Wholesale 43 Landfill 265 Incinerated1 10 purchased electricity, heat and steam consumed 2,142 Recycled2 274 by the Company (Scope 2). CO2e emissions from energy, by type* 549 Our product delivery and business travel data 000 metric tonnes 1 Without heat recovery include emissions generated directly from sources Electricity 2,022 Gas 102 2 Includes materials recovered via incineration owned or controlled by the Company (Scope 1) Other 18 with heat recovery and indirectly by Company operations (Scope 3). 2,142 Our total carbon footprint in fiscal 2016 was Waste by Division* CO2e emissions from product delivery, 000 metric tonnes 2.5 million metric tonnes of CO2e (carbon by Division* Retail Pharmacy USA 467 dioxide equivalent). Energy used to power stores 000 metric tonnes Retail Pharmacy International 62 and warehouses was the biggest contributor, Retail Pharmacy USA 127 Pharmaceutical Wholesale 20 accounting for 86 percent. Emissions from Retail Pharmacy International 51 549 product delivery accounted for 12 percent of the Pharmaceutical Wholesale 127 Company’s carbon emissions, while emissions 305 from business travel accounted for 2 percent, Workplace data driven by road travel in the USA. CO2e emissions from business travel, by type* 000 metric tonnes As of 31 August 2016 The Retail Pharmacy USA Division accounted Road 31 for more than 80 percent of the Walgreens Air 25 Employees by Division* Boots Alliance carbon footprint and energy Rail 1 Retail Pharmacy USA 247,000 usage, reflecting the size and scale of the U.S. 57 Retail Pharmacy International 89,000 retail operation. Pharmaceutical Wholesale 26,000 Business travel – air (by length of haul)* 1 Electricity accounted for more than 90 percent 000 km 362,000 of the Walgreens Boots Alliance carbon footprint Short haul 66,795 1 Employees of fully owned Walgreens Boots from energy, reflecting the reliance on electricity Long haul 24,397 Alliance businesses; does not include to power our retail stores and warehouses. Natural 91,192 employees of companies in which Walgreens gas accounted for around 5 percent, primarily for Boots Alliance has equity method investments CO2e emissions from business travel, heating buildings. by Division* Employee retention* 000 metric tonnes Walgreens Boots Alliance businesses generated % nearly 17,000 mWh of electricity through solar Retail Pharmacy USA 26 Working for Walgreens Boots Alliance panels during fiscal 2016. Retail Pharmacy International 17 Pharmaceutical Wholesale 14 > 1 year 68 For the 12 months ending 31 August 2016 57 Working for Walgreens Boots Alliance > 5 year1 34 CO2e emissions from business travel, Total Company CO2e emissions by source* 1 Includes existing employees of businesses that 000 metric tonnes per 1,000 employees, by Division and have become part of Walgreens Boots Alliance Energy 2,142 for the Company* Product delivery 305 metric tonnes Employees by gender* Retail Pharmacy USA 108 Business travel 57 % Retail Pharmacy International 186 2,504 Pharmaceutical Wholesale 529 Men 34 Walgreens Boots Alliance 157 Women 66 Total Company CO2e emissions by Division* 000 metric tonnes 100 The Company generated 549,000 metric tonnes Retail Pharmacy USA 2,010 Women employees by Division and in Retail Pharmacy International 310 of waste in fiscal 2016, of which approximately the Company* Pharmaceutical Wholesale 184 50 percent was recycled. The Retail Pharmacy % 2,504 International Division achieved the highest recycling rate, more than 70 percent, followed Retail Pharmacy USA 66 Energy use by Division* by Pharmaceutical Wholesale’s more than Retail Pharmacy International 77 GWh 60 percent and Retail Pharmacy USA’s nearly Pharmaceutical Wholesale 35 Retail Pharmacy USA 3,860 50 percent. Retail Pharmacy International 656 Walgreens Boots Alliance 66 Pharmaceutical Wholesale 170 Our businesses in Norway and the Netherlands 4,686 have achieved zero waste to landfill. *Within Deloitte & Touche LLP’s review scope as detailed on page 42

Walgreens Boots Alliance Corporate Social Responsibility Report 2016 39 Corporate governance

Walgreens Boots Alliance believes During fiscal 2016 we established a global that strong corporate governance is an Ethical Trading Standards Policy that essential element of achieving our overall consolidated standards for our business objectives and acting as a responsible partners from the legacy businesses of organization. Walgreens Boots Alliance. Primary among the provisions in the consolidated Policy The Board of Directors of Walgreens is our opposition to the exploitation of Boots Alliance is committed to sound workers through any form of forced or corporate governance and sets high bonded labor, slavery, human trafficking standards for employees, officers and or labor practices that involve harsh or directors. Our governance structure helps inhumane treatment. To read more about enable the Board to fulfill its fiduciary our 2016 Modern Slavery and Human duties to our stockholders and helps Trafficking Statement, please see the ensure the long-term success of the Marketplace Section of this report. Company. The Board exercises oversight of the Company’s strategic, operational More information on our corporate and financial matters, including the governance guidelines can be found on elements and dimensions of major risks our corporate website. facing the Company and which may include risk management with respect to Our code of ethics: CSR matters. The Code of Conduct and Business Ethics (“the Code”) extends to all our officers In furtherance of those goals, the and employees no matter where they Board has charged its Nominating and are located in the world. It also extends Governance Committee with reviewing, to other parties acting on behalf of at least annually, the Company’s policies Walgreens Boots Alliance, Inc. or any of its and activities regarding CSR. subsidiaries, such as consultants, agents, The Walgreens Boots Alliance Code of intermediaries or other representatives of Conduct and Business Ethics supports Walgreens Boots Alliance, including our good governance of our behaviors Board of Directors. and approach to Corporate Social The confidential reporting telephone Responsibility. It sets out the ethics and lines/website addresses listed in principles which are to be upheld by Appendix A of the Code are managed for each Division, business, corporate Walgreens Boots Alliance by independent function and team member within companies that provide reporting services Walgreens Boots Alliance. for hundreds of companies worldwide. Additionally, Walgreens Boots Alliance They are available 24 hours a day, seven annually reviews our policy statements. days a week and in local languages. These statements shape our approach Information received by the independent to CSR activities and help ensure our companies is relayed to the Walgreens Divisions and businesses are working Boots Alliance Compliance Office for within the same parameters. further investigation and review as appropriate.

To view the Code in its entirety, please visit our corporate website.

40 Walgreens Boots Alliance Corporate Social Responsibility Report 2016 GRI content index

Although this report is currently not “in the following content index as a first accordance” with the core GRI option, step to address which GRI standards we are beginning to align our content to and disclosures are referenced within the GRI framework and have compiled this report.

GRI content index

GRI Standard Disclosure Page number(s) and/or URL(s)

GRI 102: General Disclosures 2016 102-1: Name of the organization Overview, About our Company; pages 10-11

GRI 102: General Disclosures 2016 102-2: Activities, brands, products, and services Overview, About our Company; pages 10-11

GRI 102: General Disclosures 2016 102-3: Location of headquarters Overview, About our Company; pages 10-11

GRI 102: General Disclosures 2016 102-4: Location of operations Overview, About our Company; pages 10-11

GRI 102: General Disclosures 2016 102-6: Markets served Overview, About our Company; pages 10-11

GRI 102: General Disclosures 2016 102-7: Scale of the organization Overview, About our Company; pages 10-11

GRI 102: General Disclosures 2016 102-8: Information on employees and other workers Data, Workplace data; page 39

GRI 102: General Disclosures 2016 102-12: External initiatives Marketplace, Ethical Sourcing; page 30

GRI 102: General Disclosures 2016 102-14: Statement from senior decision-maker Overview, Introduction; page 1

GRI 102: General Disclosures 2016 102-16: Values, principle, standards and norms of behavior Overview, Our vision, purpose and values; page 3 Overview, Our approach to CSR; pages 4-5

GRI 102: General Disclosures 2016 102-17: Mechanisms for advice and concerns about ethics Corporate governance; page 40

GRI 102: General Disclosures 2016 102-26: Role of highest governance body in setting purpose, Corporate governance; page 40 values and strategy

GRI 102: General Disclosures 2016 102-40: List of stakeholder groups Overview, Stakeholder engagement; page 12

GRI 102: General Disclosures 2016 102-43: Approach to stakeholder engagement Overview, Stakeholder engagement; page 12

GRI 102: General Disclosures 2016 102-44: Key topics and concerns raised Overview, Stakeholder engagement; page 12

GRI 102: General Disclosures 2016 102-49: Changes in reporting About this report; page 38

GRI 102: General Disclosures 2016 102-50: Reporting period About this report; page 38

GRI 102: General Disclosures 2016 102-51: Date of most recent report About this report; page 38

GRI 102: General Disclosures 2016 102-52: Reporting cycle About this report; page 38

GRI 102: General Disclosures 2016 102-53: Contact point for questions regarding the report About this report; page 38

GRI 102: General Disclosures 2016 102-54: Claims of reporting accordance with the GRI Standards About this report; page 38 GRI content index; page 41

GRI 102: General Disclosures 2016 102-55: GRI content index GRI content index; page 41

GRI 102: General Disclosures 2016 102-56: External assurance Assurance report; page 42

GRI 203: Indirect Economic Impacts 203-1: Infrastructure investments and services supported Community, Health and Wellbeing; page 16 Community, Young People; pages 17-19 Community, Cancer Programs; pages 20-21

GRI 203: Indirect Economic Impacts 203-2: Significant indirect economic impacts Community, Health and Wellbeing; page 16 Community, Young People; pages 17-19 Community, Cancer Programs; pages 20-21

GRI 302: Energy 2016 302-1: Energy consumption within the organization Data, Environment data; page 39

GRI 302: Energy 2016 302-4: Reduction of energy consumption Environment, Energy; page 24

GRI 305: Emissions 2016 305-1: Energy direct (Scope 1) GHG emissions Data, Environment data; page 39

GRI 305: Emissions 2016 305-2: Energy indirect (Scope 2) GHG emissions Data, Environment data; page 39

GRI 305: Emissions 2016 305-3: Other indirect (Scope 3) GHG emissions Data, Environment data; page 39

GRI 306: Effluents and Waste 2016 306-2: Waste by type and disposal method Data, Environment data; page 39

GRI 409: Forced or Compulsory Labor 409-1: Operations and suppliers at significant risk for incidents Marketplace, Ethical Sourcing; page 30 of forced or compulsory labor

GRI 413: Local Communities 2016 413-1: Operations and local community engagement, impact Community, Health and Wellbeing; page 16 assessments, and developing programs Community, Young People; pages 17-19 Community, Cancer Programs; pages 20-21

Walgreens Boots Alliance Corporate Social Responsibility Report 2016 41 Assurance report

INDEPENDENT ACCOUNTANTS’ REVIEW REPORT Board of Directors, Shareowners, and Stakeholders Walgreens Boots Alliance, Inc., Deerfield, Illinois

We have reviewed the following indicators presented in the 2016 Corporate Social Responsibility Report (the “specified indicators”) of Walgreens Boots Alliance, Inc. (the “Company”) for the fiscal year ended August 31, 2016:

Environmental Community

1. Total Company CO2e emissions by source 1. How the Company contributes – cash

2. Total Company CO2e emissions by Division 2. How the Company contributes – non-cash 3. Energy use by Division 3. Areas impacted by the Company’s contributions

4. CO2e emissions from energy, by Division 4. The types of groups the Company contributes to

5. CO2e emissions from energy, by type 5. Contributions by Division

6. CO2e emissions from product delivery, by Division

7. CO 2e emissions from business travel, by type Workplace 8. Business travel – air (by length of haul) 1. Employees by Division

9. CO2e emissions from business travel, by Division 2. Employee retention

10. CO2e emissions from business travel, per 1,000 3. Employees by gender employees, by Division and for the Company 4. Women employees by Division and in the Company 11. Waste by method of disposal 12. Waste by Division

The Company’s management is responsible for the specified indicators presented within the Corporate Social Responsibility Report.

We conducted our review in accordance with attestation standards established by the American Institute of Certified Public Accountants. A review consists principally of applying analytical procedures, considering management assumptions, methods, and findings, and making inquiries of and evaluating responses from persons responsible for corporate sustainability and operational matters. It is substantially less in scope than an examination, the objective of which is the expression of an opinion on the specified indicators. Accordingly, we do not express such an opinion. A review of the specified indicators is not intended to provide assurance on the Company’s compliance with laws or regulations.

The preparation of specified indicators within the Corporate Social Responsibility Report requires management to establish the criteria, make determinations as to the relevancy of information to be included, and make estimates and assumptions that affect reported information. Measurement of certain amounts and sustainability metrics, some of which may be referred to as estimates, is subject to substantial inherent measurement uncertainty. Obtaining sufficient, appropriate review evidence to support our conclusion does not reduce the inherent uncertainty in the amounts and metrics. The selection by management of different but acceptable measurement methods, input data, or model assumptions, or a different point value within the range of reasonable values produced by the model, may have resulted in materially different amounts or metrics being reported.

Our review was limited to those indicators specified by management and such specified indicators may not necessarily reflect the overall sustainability profile of the Company.

Based on our review, nothing came to our attention that caused us to believe that the specified indicators are not presented, in all material respects, in conformity with the Walgreens Boots Alliance Corporate Social Responsibility Performance Data Basis of Preparation, which is available in the Corporate Responsibility area of the Company’s corporate website in the “About this report” section.

DELOITTE & TOUCHE LLP Stamford, CT 16 February 2017

42 Walgreens Boots Alliance Corporate Social Responsibility Report 2016 Legal notice Third party trademarks mentioned are the property of their respective owners. Forward-Looking Statements All statements in this Report that are The use of the word “partner” does not not historical, including goals and imply a partnership relationship between projections of future results, constitute Walgreens Boots Alliance and any other forward-looking statements that are company. based on current market, competitive and Exchange rates basis of preparation regulatory expectations, and involve risks Foreign currency amounts have been and uncertainties that may cause actual presented in U.S. Dollars for consistency, results to vary materially. Except to the having been translated at the average extent required by the law, Walgreens exchange rate for the 12 months ending Boots Alliance undertakes no obligation 31 August 2016. The most significant rates to update publicly any forward-looking being 1.44 U.S. Dollar per Pound Sterling statement included in this Report, and 1.11 U.S. Dollar per Euro. whether as a result of new information, future events, changes in assumptions EORTC funds raised in various currencies or otherwise. Please see Walgreens were converted to Euros and to U.S. Boots Alliance’s latest Form 10-K and Dollars using average exchange rates subsequent SEC filings for a discussion for the reporting periods in which the of risk factors as they relate to forward- funds were raised. Funds for Macmillan looking statements. Cancer Support and for BBC Children in Need were raised in Pounds Sterling and Trademarks converted to U.S. Dollars using average Walgreens Boots Alliance, the Walgreens exchange rates for the reporting periods Boots Alliance logo and the other trade in which the funds were raised. names listed below are trademarks or registered trademarks of Walgreens Boots Alliance and/or its affiliates in the USA and Page 2 photo: Diane Bondareff/UN other countries. Foundation

WALGREENS BOOTS ALLIANCE is a Page 13, 31 photos: Allison Shelley trademark owned by Walgreens Boots Photography Alliance, Inc. Page 26 photo: courtesy of Feeding BALANCE REWARDS, GET A SHOT. America GIVE A SHOT., W REDI, and WALGREENS are trademarks owned by Walgreen Co. This report is printed on Finch Fine offset which is FSC® certified and contains 10 ALLIANCE BOOTS, ALLIANCE percent post-consumer recycled waste HEALTHCARE UK, ALLIANCE fiber. The paper has been independently HEALTHCARE ESPAÑA, ALLOGA FRANCE certified according to the rules of the and FARMEXPERT are trademarks owned Forest Stewardship Council® (FSC). by Alliance Unichem IP Limited.

BOOTS, BOOTS IRELAND, BOOTS OPTICIANS, BOOTS THAILAND, BOOTS UK, BOTANICS, NO7 and SOAP & GLORY are trademarks owned by The Boots Company PLC. Designed and produced by LIZ EARLE is a trademark owned by Liz Avila Creative, Inc. Earle Beauty Co. Limited.

FARMACIAS BENAVIDES is a trademark ©2017 Walgreens Boots Alliance, Inc. owned by Farmacias Benavides, S.A.B. All rights reserved DE C.V. Website: www.walgreensbootsalliance.com

Walgreens Boots Alliance Corporate Social Responsibility Report 2016 43 Contact us

Walgreens Boots Alliance, Inc. 108 Wilmot Road Deerfield, IL 60015 USA +1 (847) 315-3700