ESG Materiality and Stakeholder Engagement

An inclusive approach

We are committed to strong, robust engagement with our stakeholder groups, including our supplier partners, customers, TSMs, shareholders, and society, in our business practices and decisions. Dialogue with stakeholders is continuous and grounded in a core set of principles designed to deepen our engagement and ensure the inclusion of stakeholder voices in our decisionmaking. This, in turn, supports the business in understanding and responding to material issues, risks, and opportunities. Our business and operating environments, and the needs of our stakeholders, are constantly evolving, and we review and adapt our approach accordingly. We increasingly engage with the investor community on key sustainability issues in our sector, such as climate change. We are encouraged to see continued investor engagement on this important topic, recognizing the direct link between a purpose-driven strategy and a positive impact on the world around us. We believe that together we can drive climate action across the value chain and support the global efforts in tackling the climate crisis. Read more about the progress we have made in environmental leadership on pages 13 to 22.

ESG materiality assessment

We initiated our first formal ESG materiality assessment in 2020, to better understand the issues most relevant to the business and our stakeholders, and to determine the issues that should be prioritized in our response and reporting. The assessment was targeted, scoped, and informed by GRI principles. The issues identified through the ESG materiality assessment have informed the content and structure of this report. The ESG materiality assessment included an in-depth review of the sustainability considerations that a sampling of our peers, suppliers, and customers report on, care about, and identify as material issues or risks, as well as surveys and interviews with a targeted subset of stakeholders. These stakeholders included selected TSMs and senior leadership, as well as external stakeholders such as investors, suppliers, sustainability organizations, professional associations, community partners, customers, clients, and business partners. Read more about the scope and findings of our ESG materiality assessment in our 2020 CSR Report, pages 44-45. We plan to conduct another ESG materiality assessment within the next five years to ensure that we stay informed of the business's risks and opportunities. Our plans to conduct scenario analysis as part of our next TCFD reporting process will also support our materiality process by identifying climate-related risks and opportunities that we may face under different climate scenarios in the future.

HENRY SCHEIN’S RESPONSE TO STAKEHOLDER NEEDS

Continuing customer success and satisfaction through innovative business solutions and high-quality service

Enhancing our human capital strategies, particularly on employee recruitment and retention as well as diversity and inclusion

Reducing our environmental footprint in our operations and supply chain in collaboration with suppliers and partners

Enhancing our corporate governance and helping to protect human rights, ecosystems, and responsible business everywhere we operate

Furthering our work in access to quality and a ordable care for vulnerable populations globally