02 FOCUSED OPERATIONS
We are focused on delivering results in the right way. We strive to operate our business with integrity and in ways that support protection of the environment.
Delivering results in line with our purpose and values begins with strong governance practices, through which our leadership can have a positive impact across the company and be accountable to all stakeholders.
An active board of directors leads Patterson by working in cooperation with executive and senior management to maintain high standards of business practice across operations. Our board size is designed to foster directors’ participation in the oversight of Patterson.
With a broad set of responsibilities, our board and its designated committees provide oversight including with respect to company strategy, human capital management, enterprise risk management, and ESG matters.
The Audit and Finance Committee assists the board in its financial oversight responsibilities by: reviewing and overseeing the integrity of our financial statement and other financial information that is provided to our shareholders and others; overseeing our system of internal controls and disclosure controls; reviewing with our accounting staff and independent registered public accountants the scope of our audit and related matters; reviewing the appointment of the senior internal auditing executive and the performance of our internal audit function; overseeing our independent registered public accountants; and overseeing and reviewing controls and procedures related to sustainability data and the status of any environmental audit activities. In addition, the Committee reviews our strategies, policies and internal controls relating to information technology, data privacy, data protection and cybersecurity (including network security, cloud security and physical security), with respect to corporate goals, industry trends and competitive advantages. The Committee also reviews certain finance matters, including our annual capital budget and capital allocations.
The Compensation and Human Capital Committee assists the board in its executive compensation and human capital oversight responsibilities by approving executive officer compensation that is aligned with our business strategies and goals and that rewards executive officers for delivering value to shareholders. In addition, the Committee maintains the group of peer companies Patterson uses to survey executive compensation, considers the results of shareholder advisory votes on executive compensation, oversees our compensation clawback policies and reviews and modifies stock ownership policies. The Committee reviews annually and discusses with management the development, implementation and effectiveness of the Company’s policies and strategies relating to human capital, and reviews our compensation and workplace conduct practices that relate to our values and desired cultural environment. The Committee also reviews public reporting with respect to human capital.
The Governance and Nominating Committee assists the board in its director nomination and governance responsibilities by: recommending qualifications for and identifying and recommending director nominees; developing criteria and policies for board service, including seeking to have diversity of experiences and backgrounds; overseeing matters of corporate governance; advising the board on ESG matters and overseeing sustainability, corporate social responsibility and corporate citizenship matters; reviewing the performance of our CEO; and recommending a succession plan for our board and CEO. In addition, the Committee oversees annual board evaluations, board orientation and continuing education programs, and director compensation. The Committee also reviews corporate responsibility reports and makes recommendations to the board regarding shareholder proposals.
The Compliance Committee assists the board with its compliance oversight responsibilities by monitoring our compliance with applicable laws and regulations in the jurisdictions in which we operate. In addition, the Committee reviews the results of compliance-related audits, reviews any violations of the Code of Conduct, monitors completion of employee training requirements and coordinates with the Audit and Finance Committee on oversight of matters of mutual interest. The Committee reports to the board on key compliance and regulatory initiatives and the evolving regulatory landscape.
Each committee has a separate chair and its own charter, and these are available on our website. On an annual basis, each committee reviews its respective charter and determines whether it believes any changes are necessary or beneficial in light of the ever-changing landscape of corporate governance and best practices.
The board of directors has adopted two key policies – our Corporate Governance Guidelines and our Code of Conduct – to facilitate compliance with applicable laws and regulations, and to provide clarity about roles and responsibilities for oversight. Both policies are available on our website.
Our Corporate Governance Guidelines address the operation of our board. They cover various governance topics, including:
The role of our board of directors
The composition of our board and selection of directors
Functioning of our board and its committees
Conduct and ethics standards for directors
The Governance and Nominating Committee and the full board review our Corporate Governance Guidelines and update them periodically in response to changing regulatory requirements, evolving practices and any other relevant circumstances.
Our Code of Conduct provides an overview of applicable laws, regulations and company policies. In 2023, all directors attended a live training on anti-corruption. We further discuss the Code of Conduct in the Ethics, Integrity and Compliance chapter of this report.
For newly appointed directors, we provide board orientation and training to assist in successful onboarding, including interviews, educational materials and information about our businesses.
In the spirit of “always advancing,” we encourage continuing education for all of our directors and dedicate a meaningful portion of a board meeting each year to a specific area of interest or emerging topic, the most recent of which concerned artificial intelligence.
Board members also have access to a variety of third-party educational resources, which many have taken advantage of, including the National Association of Corporate Directors.
In addition, we have developed committee-level orientation materials. We have found that committee-specific orientation efficiently and productively allows a new member to understand their committee’s role and how they can contribute. It also enhances our current committee members’ knowledge about evolving responsibilities in the context of the changing regulatory and governance landscape.
Our board is able to consider the views of employees and investors through regular communication with senior management. We value the voices of our internal and external stakeholders – including customers, suppliers, industry associations, shareholders, employees and communities – and their opinions and insights help to inform our corporate responsibility strategy, product portfolio, process and business improvements, as well as identify opportunities for growth and innovation.
Our non-executive board chair provides leadership to our board, provides support and advice to our CEO, fosters an environment conductive to effective communication among directors and senior management, and performs various duties and responsibilities as our board determines.
All members of our board of directors, including our non-executive board chair, are independent (as defined under applicable listing standards), with the exception of our CEO. All committee members are independent.
Regular executive sessions of independent directors take place at our board meetings without management present and are chaired by our non-executive board chair. Likewise, executive sessions regularly occur at meetings of our committees and are conducted without management present.
Members of our board serve one-year terms and are elected on an annual basis.
As expressed in our Corporate Governance Guidelines, we value a board composition that reflects diversity of experiences and backgrounds among members. Thus, as we look to refresh the board, we strive to consider candidate pools that include diverse individuals to ensure we bring multiple perspectives to the board’s discussions and oversight responsibilities.
Our current board includes four directors (40%) whose demographic background is racially or ethnically diverse and four directors (40%) who are women.
We also believe we have balance on the board among active executives and retired leaders. In FY24, we made enhancements to our board of directors, refreshing our board composition and gaining two additional board members. Our newest directors bring valuable skillsets in customer experience and corporate development that we believe complement the knowledge already on our board.
The board regularly evaluates its governance-related activities. We consider our evaluation approach to be a success story, with its focus on our skills matrix as well as evolving best practices and business needs. We use a variety of methods to ensure an honest evaluation of each director’s performance, including exercises conducted by external third parties, written evaluations and oral interviews.
The way we conduct business is highly important. We strive to protect the trust that our business partners, customers and consumers place in Patterson. We endeavor to operate with the highest standards of ethics and integrity, and to continue to improve and strengthen compliance at every level of our operations.
Patterson’s ethics and compliance program is overseen and managed by our chief compliance officer, who reports directly to our CEO and indirectly to the Compliance Committee of our board. The compliance team advances awareness of compliance and ethics policies across facilities and operations, through subject matter expertise, centralized policies and training. In partnership with stakeholders across the company, the team provides insights on key issues such as ethics, data privacy, hazardous materials, pesticides, environmental matters and adherence to Food and Drug Administration (FDA) regulations.
Our chief compliance officer provides quarterly reports on the compliance and ethics program to: our management compliance committee, which includes cross-functional executive and senior leaders and oversees our program at the management level; and the Compliance Committee of the board. Both committees receive the same information to promote transparency about the program as a whole, as well as about compliance risks and mitigation efforts.
We follow the U.S. Department of Justice’s compliance program framework, with the board and Patterson leadership setting expectations for strong compliance throughout the company.
Our Code of Conduct is a global policy that applies to every employee and member of our board. It sets out expectations for ethical business practices, including key issues such as anti-corruption, bribery and antitrust. The Code is designed to deter wrongdoing, promote ethical conduct, including the handling of actual or apparent conflicts of interest, and support compliance with applicable laws and regulations. The Code of Conduct also reinforces our Purpose, Vision and Values, which express who we are and what we stand for, and underpins the way we interact with key stakeholders.
Compliance with the Code is a requirement for maintaining employment at Patterson. Our employees receive mandatory, role-specific training, which includes policy acknowledgement and proficiency testing to promote comprehension. We investigate reports of non-compliant behavior and take necessary action based on the results.
We maintain policies to help manage our business with transparency, competence and integrity, which we believe supports the best interests of our key stakeholders.
New policies generally go through an approval process with the compliance and regulatory team, which engages relevant stakeholders in development and rollout. With the launch of a new policy, we conduct a communication campaign for relevant employees and internal stakeholders and send reminders about reviewing the policy and taking any other required action.
We also have Partner Compliance Standards, which are intended to align our suppliers with our ethical expectations on issues including labor and human rights, bribery, conflicts of interest, and environment, health and safety conditions. We share Patterson’s Partner Compliance Standards with suppliers during the contracting process for their awareness.
Patterson strives to comply with applicable laws and regulations governing anti-corruption and bribery, including the Foreign Corrupt Practices Act, as well as other relevant international anti-corruption conventions. This supports our commitment to doing business ethically and lawfully, as expressed in our Code of Conduct.
This commitment extends to our supply chain. Our Partner Compliance Standards provide that suppliers may not directly or indirectly provide or receive improper business advantages by offering, giving or receiving anything of value in exchange for preferential treatment.
Misconduct – including bribery – is neither permitted nor tolerated by Patterson. All employees receive training on anti-corruption and bribery through our Code of Conduct training. In addition, we provide further training on anti-corruption and bribery for certain employees based on their job function.
We endeavor to create a workplace culture where compliance concerns can be raised and questions asked, without fear of retaliation. Patterson encourages employees to report their concerns, regardless of magnitude, promptly. Patterson does not tolerate any form of retaliation against employees for good-faith reporting of concerns about alleged misconduct or legal violations within the company, or to a government authority. We also forbid retaliation against employees for assisting in an investigation of alleged misconduct or legal violation.
“Speak Up Patterson,” an independent service monitored by a third party, is our confidential helpline, available 24-7 online and by telephone in multiple languages. Reports can be made anonymously. The helpline allows employees, business partners and others to ask questions about ethical expectations and report concerns. We promote the helpline through our communication campaigns on the Code of Conduct, and the Partner Compliance Standards make our suppliers aware of the helpline.
When a report warrants further inquiry, we follow an investigation process. All investigations are documented, and we provide updates to relevant parties, as appropriate. We audit the integrity of investigations and the application of disciplinary measures. Our compliance team reports investigations to the management compliance committee as well as the Compliance Committee of the board on a quarterly basis.
In addition to Speak Up Patterson, employees may also directly reach out to a member of the compliance team, human resources, the legal department or their manager with questions or concerns related to business ethics.
Patterson strives for compliance with federal regulations, necessitating tracking of inventories, licenses and more. To monitor our operations for adherence to policies, laws and regulations, we use monitoring and data collection. Among other measures:
We generate weekly or monthly reports on training completion, audit results and more
We conduct regular inventory counts on all regulated products, with frequency depending on a product’s risk level
We escalate deviations and significant issues to the compliance team for investigation
Patterson regularly tracks several metrics to measure the effectiveness of our compliance efforts, including training completion and proficiency levels. We strive for 100% compliance training completion by all employees across the company on role relevant topics.
We provide tracking metrics and KPIs quarterly to the management compliance committee and to the Compliance Committee of the board. We also provide relevant teams across the company with weekly and monthly reports from real-time monitoring.
At Patterson, our full board oversees the most critical risks to our company, with support from its committees. While the board oversees risk, senior management is responsible for identifying, assessing and managing risk. We embed risk management practices into our business planning and management processes.
Discussion and review of key enterprise risks, risk management strategy and mitigation plans occur on an annual basis between the board and senior management.
To assess our enterprise risk, Patterson conducts an annual survey of approximately 100 senior leaders and other employees with relevant knowledge. For top risks, we create action plans and assign each one to an executive leader, as one piece of our cross-functional risk management approach. We directly support the appropriate teams and departments within the company to drive mitigation of those risks.
We recently refined accountability for each item within the action plans by assigning specific ownership.
In addition to the annual formal risk analysis, our compliance team conducts a quarterly review of risk, and the internal audit team engages in regular risk assessments of selected issues, such as fraud.
Our internal audit team reports to Patterson’s chief financial officer and, to maintain independence, has direct communication with the Audit and Finance Committee of the board.
Specific oversight roles for our board committees include:
BOARD COMMITTEE
BOARD OVERSIGHT
Audit and Finance Committee
Financial, cybersecurity, internal control over financial reporting
Compensation and Human Capital Committee
Executive officer compensation and human capital matters
Governance and Nominating Committee
Board composition, corporate governance, ESG, reputational
Compliance Committee
Compliance with applicable laws and regulations
We rely on information systems in our business to obtain, rapidly process, analyze and store customer, product, supplier and employee data to conduct our business. We take steps designed to detect, mitigate, and remediate vulnerabilities in our information security systems. Our processes for assessing, identifying and managing material risks from cybersecurity threats are incorporated into our overall enterprise risk management framework. Our chief information security officer (CISO) is responsible for developing and implementing our cybersecurity risk management and information security program, including regularly reporting on cybersecurity matters to management and the Audit and Finance Committee of our board. Our CISO has over 25 years of experience covering a wide range of enterprise information technology and information security programs for large, global corporations, and has multiple industry certifications, including as a certified information systems securities professional. Our CISO reports to our chief information officer, who has over 30 years of information technology experience.
The 2023 Global Risks Report from the World Economic Forum highlights widespread cybercrime and cyber insecurity in its top ten rankings of the most severe risks over the next decade.
Our risk management approach We take a cross-functional approach to cybersecurity risk, which includes input from information security, information technology, legal, compliance, internal audit, finance and operations, as appropriate. Under oversight of our board, including its Audit and Finance Committee, our senior management, information security team and our cybersecurity risk committee (comprised of key executive and senior leaders from primary corporate functions) devote resources to cybersecurity and implement risk management processes designed to adapt to the changing cybersecurity landscape, respond to emerging threats and proactively coordinate our people, processes and procedures to respond to cybersecurity incidents. We have operationalized a written incident response plan designed to assess, identify and coordinate among various functions the response activities to cybersecurity incidents and determine the impact of any such cybersecurity incidents that may jeopardize the confidentiality, integrity or availability of our information systems or adversely affect our business and information systems. In the event of a significant cybersecurity incident, the incident response plan provides guidance on roles, responsibilities and procedures and reporting processes.
Patterson conducts annual security awareness training for all employees. We conduct an additional phishing prevention campaign with higher-risk groups of employees.
In addition, we provide specialized training based on actual need. By assessing our people’s knowledge before assigning training, we ensure a better use of everyone’s valuable time and the company’s resources. In FY22, we conducted a Security Awareness Proficiency Assessment of 6,000 employees with a 63% response rate. The proficiency survey allowed us to identify the areas of greatest need for training and has informed security awareness training in the following years.
We also conduct targeted trainings and add additional security for groups of employees based on risk, including key executives and those who lead human resources, finance, coding or SOX compliance work.
Patterson is proud of being a full-service supplier for the people who keep us and our animals healthy. As we source and distribute services and products, we have an opportunity to make a positive impact on health and safety.
We have various strategies for addressing the risks that are inherent to our business, in particular the distribution of pharmaceutical products to dental and veterinary practitioners. We have established strategies and processes to limit unauthorized trading (gray market) and product diversion and we follow the guidance of our manufacturing partners on claims related to their products.
Our compliance team and supply chain team share the responsibility of managing the company’s efforts around product safety, labeling and supply chain controls. Our chief compliance officer reports on these matters to the Compliance Committee of the board, as needed.
From the time products are loaded onto our dock until they reach our customer, we leverage policies, procedures, employee training, communication, auditing and monitoring to maintain product safety and comply with applicable laws and regulations. Our internal policies address compliance with such regulations. We have monitoring protocols and controls designed to identify and prevent diversion risk for pharmaceutical products and controlled substances.
Patterson strives to incorporate high standards of quality and safety during the phase of the product’s lifecycle over which we have control.
We work to maintain product integrity by following manufacturer guidelines for storage and handling requirements of pharmaceutical products we distribute. For regulated products, we conduct due diligence and vetting of potential new vendor partners prior to onboarding them. Pharmaceutical products are onboarded by our team of licensed and skilled pharmacists, who work to ensure the prescription drugs we distribute are themselves compliant, and the level of internal controls needed by Patterson is applied. The teams handling our products are assigned role and function relevant training, and we track completion rates of all training across the enterprise with goal of achieving 100%.
Several Patterson facilities are accredited by the National Association of Boards of Pharmacy, which governs a host of requirements, including cold storage and cleanliness practices. This aligns with several elements of ISO standards that are relevant to distributors of pharmaceutical products.
We work to keep our customers safe by seeking to minimize diversion risk of the pharmaceutical products we distribute. Our operations teams conduct inventory counts as part of our operational controls. The frequency of the inventory count depends on the risk level we assign to the product. Per our internal procedures, any anomalies are reported to our compliance team, which promptly conducts any necessary investigation. The level of risk of the product determines the extent of our monitoring. For example, controlled substance products pose the highest risk and are therefore monitored on a stricter cadence. This helps us appropriately track and monitor our inventory to minimize diversion risk.
We also partner with our manufacturers and work to support any recalls by tracking products and following manufacturer instructions to retrieve products from customers as needed. Our internal processes align with FDA requirements for distributors related to recalls.
We source a wide range of specialty materials from an international network of suppliers. We endeavor to review and vet potential new suppliers, and we require our vendors globally to adhere to our Partner Compliance Standards. We update our processes and procedures related to third-party controls to keep pace with industry standards and guidance.
Reviewing suppliers We rely on our supply partners to provide safe products for our customers. With this in mind, Patterson expects its suppliers to conduct themselves in an ethical manner and to comply with applicable laws and regulations. Certain third-party vendors are subjected to a due diligence process and vetting to proactively identify potential risks and drive compliance with applicable laws and regulations.
We use a risk-based approach to review potential new suppliers in the U.S. Products that carry a Patterson label receive rigorous vetting, including as to quality controls and quality agreements, in addition to the general due diligence process for relevant third parties. Approved suppliers for private label products require both a general contract as well as a quality agreement to track FDA or Health Canada regulations (as applicable).
Our Partner Compliance Standards address avoidance of underage labor and other human rights issues, conflict minerals, environment, health and safety conditions, and anti-corruption, among other topics.
Ongoing monitoring Certain of our supplier contracts include language about following our Partner Compliance Standards. If non-compliance is observed or reported, we expect supplier correction as a condition for continued engagement. Violations reported to us may result in responses including warnings, suspension or termination of engagement, and referring the matter to the appropriate governmental authorities.
The FDA strictly regulates claims related to regulated products. While our manufacturing partners are obligated to ensure product claims are substantiated, we work to ensure that we follow any guidance or information provided by our manufacturing partners related to product claims or product safety.
Patterson provides information about each product in close coordination with the manufacturer. For example, we’ve worked with our manufacturing partners to ensure they provide safety data sheets for their products, which we can pass on to our customers.
We train and guide our marketing and sales teams on adherence to approved content and claims for each product. For the sales teams, this topic is part of mandatory online compliance training, as well as training provided at annual national sales meetings for both the Dental and Animal Health business segments. In addition, we partner closely with our marketing teams to regularly provide guidance and training on FDA expectations related to product claims.
As part of our efforts to protect the integrity of our supply chain, Patterson seeks to exclude any “gray market” goods by prioritizing sourcing directly from manufacturers, whenever possible. Gray market goods can include products that are recalled, counterfeit, expired, toxic, mislabeled or banned. For prescription drugs, Patterson strives to comply with the Drug Supply Chain Security Act (DSCSA), which creates an additional layer of security by requiring unit-level tracking and identification of those products. Over the past few years, we have worked to implement system changes and controls to enable compliance with the DSCSA to further bolster protection for our customers.
We recognize that environmental issues can impact our business operations, employees and communities and strive to track and reduce the environmental impact of our operations through our procedures, policies and systems.
Our board Governance and Nominating Committee has broad oversight of ESG matters. The board’s Compliance Committee also receives details on our environmental program through periodic updates provided by our chief compliance officer.
Patterson’s environmental initiatives are led by the senior director of environmental health and safety (EHS). The EHS team – which collaborates with people at Patterson’s 150 sites across three countries to manage EHS issues – includes a senior environmental and hazardous material manager, a senior safety and health manager, a commercial driver specialist, a radiation safety specialist and an EHS data manager.
At the management level, our chief compliance officer oversees our environmental program, which strives to adhere to applicable laws and industry best practices. Our management compliance committee receives detailed program updates on a quarterly basis from both our chief compliance officer and senior director of EHS.
Our environmental initiatives are grounded in common industry practice and based on “plan, do, check, act” principles. They address hazardous waste, non-hazardous waste, hazardous materials, air emissions, refrigerant use, pesticides, water management and spill prevention and response. We maintain and provide policies, procedures, and training on these topics, and use a multi-layered process of audits to identify gaps in implementation.
Identified gaps are tracked until they are filled or otherwise resolved. Employees receive role-appropriate training and are accountable to their managers, who undertake a responsibility to ensure their teams complete all required training. Training completion reports are provided to senior leaders on a monthly basis by the compliance team.
To inform planning around environmental management, we conduct an annual EHS risk assessment. Plan progress updates are provided to our management compliance committee by our senior director, EHS, and to the board Compliance Committee by our chief compliance officer, as appropriate.
Each Patterson facility self-inspects its EHS compliance monthly using a checklist provided by the EHS team and takes steps to remediate any deficiencies. Facilities also conduct an annual self-assessment on EHS policy compliance, and we use a risk-based approach to conduct additional site audits (based on the size of the site and number of employees), averaging 15 audits per year across our operations.
We have conducted informal data assessments to understand our greenhouse gas (GHG) emissions, and are currently in the process of establishing a formal strategy to gather and assess our GHG data using accepted protocols and methodologies. A periodic GHG emissions inventory will provide insight into the state of our emissions and opportunities for improvement.
Vehicle fleet To mitigate emissions from our vehicle fleet, we intend to change 10% of our fleet in California to electric vehicles by December 31, 2025. Using information gained through this pilot, we will evaluate feasibility to expand EV vehicle use in other regions.
In the U.K., we require new company vehicles to be fully electric or plug-in hybrid vehicles. Our entire U.K. vehicle fleet meets the latest EU emissions standards (Euro 5). At Spitfire House, our warehouse and distribution facility in Stoke-on-Trent, U.K., 48 parking spaces are equipped with electric vehicle chargers.
Other strategies for reducing vehicle emissions in our U.K. operations include:
Right-sizing the vehicle for each shipment to reduce gasoline consumed
Using live engine data to improve fuel efficiency
Selecting vehicles based on optimal miles per gallon
Examining utilization of existing fleet to minimize total number of vehicles
Working with delivery partners to minimize miles driven
Buildings We evaluate our facility needs to optimize efficiencies and seek opportunities to maximize the use of our real estate. Since 2017, we have reduced our global footprint by 700,000 square feet through consolidation of our facilities. We also work to reduce emissions that come from heating and powering our offices, distribution centers and other facilities by leveraging energy-efficient building systems, where appropriate.
For example, our fulfillment center in Dinuba, California, derives 70% of its energy from a rooftop solar array. Spitfire House incorporates features such as solar power, energy efficiency, rainwater harvesting, provision of showers to encourage active mobility for commuting, and landscaping using native species.
We have identified each facility that can physically support a solar installation, a step towards increasing the share of renewable energy in our electricity mix. Costs and potential emission reductions have been estimated to support decision-making. Some buildings have motion sensors to conserve electricity on lighting, and we plan to expand this to other buildings. Currently 10% of our locations use LED lighting, which is an area of opportunity for reducing our electricity consumption.
At Patterson’s corporate headquarters, we run a “Go Green” campaign to promote sorting, composting and recycling materials to help reduce overall waste.
Patterson’s water management policy focuses on efficient water use and the proper discharge of wastewater and stormwater runoff. It applies to both irrigation and sanitary water use.
Consumption Patterson locations minimize water use to preserve community resources by promoting water conservation with employees, correcting water leaks and avoiding the use of water for cleaning when dry methods can be effective. We use reclaimed water for non-potable uses, such as irrigation, in the locations where it is feasible. We are also pursuing landscaping changes that will require less irrigation, particularly in water-scarce areas such as California.
Discharge In settings where municipal treatment systems are available, we discharge wastewater according to our permits or local standards. We report any spills that enter a municipal treatment system.
We minimize outside storage of materials to avoid pollutants from entering stormwater, and do not wash, clean or flush equipment outside.
Patterson monitors hazardous waste data and has a process designed to enable proper third-party management of waste. Our standard operating procedures for hazardous waste management include a waste log, waste manifests, multi-part form return copies and reviewing to confirm that forms were received.
We take care when working with hazardous waste. We seek to ensure waste, including any damaged or expired product, is safely stored and disposed of.
We also focus on training and compliance to manage the impact of hazardous waste and we maintain several policies, including our standard operating procedures on management of hazardous waste, medical and potentially infectious wastes and used X-ray tube heads.
In the U.K., pharmaceutical waste is required to be incinerated and we have reduced the total amount of incinerated waste from 20 tonnes/year to 5 tonnes/year through training and improved separation of waste materials.
We reduce material use and minimize waste to help preserve natural resources and reduce costs. Our efforts address both the materials we receive from suppliers as well as our own packaging.
Inbound materials Our largest recycling opportunities are materials from suppliers’ packaging, such as cardboard, wooden pallets and filmy plastic. We recycle each material separately where municipal waste infrastructure is locally available.
We also partner with our suppliers to minimize the materials used to ship product to us, such as by using thinner boxes and right-sizing boxes.
Our procedures for handling waste, outlined in our policies, call for preserving the value of recyclable materials. Our locations have established collection points for materials that can be recycled through local infrastructure. We provide a list of approved recyclers for each location.
Patterson requires all employees to complete corporate waste training, which includes recycling procedures. We audit locations to ensure these procedures are followed.
In the U.K., we partner with a specialty waste management company to recycle plastic and cardboard. Annually, we recycle:
tonnes of cardboard
tonnes of plastic
Specialty handling In the U.K., customers can recycle batteries at a facility we provide in conjunction with our packaging compliance operator. U.K. facilities also recycle fluorescent lighting with a specialized waste company, recycle toner cartridges with their manufacturer and donate used IT equipment to a non-profit mental health organization.
Outbound materials Packaging products for shipping presents another opportunity to be efficient and minimize our environmental impact. Patterson recognizes that packaging is the aspect of our sustainability program most directly visible to customers. In addition, customers are the ones who dispose of or recycle our packaging. Packaging elements that are not currently recyclable – such as thermal insulation or frozen gel packs – present opportunities for improving our environmental impact.
We combine multiple orders into a single package where possible. We use a cartonization technology to find the optimal package size for shipping that reduces material waste. We also strive to use cardboard that has been certified as produced using sustainable forestry practices and to source recycled material for our packaging. In the U.K., we utilize plastic totes made from recycled material, which we use and reuse instead of shipping cardboard boxes.
of our non-recyclable waste is shredded into an inert state for landfilling or converted to electricity for the national grid in the U.K.
