A technician carrying out energy efficientcy upgrades at Walgreens store

Walgreens Boots Alliance has adopted a goal to reduce emissions to help mitigate global warming and combat the urgent threat of climate change.

This goal is embedded in the Company’s business strategy and allows us to manage fluctuating energy costs as well as reduce environmental impact.
 

The Company’s emissions reduction strategy includes the implementation of large-scale initiatives, such as a global process to measure and monitor Scope 1, Scope 2 and some Scope 3 emissions. The strategy involves investment in energy and fuel efficiency programs in office buildings, distribution centers, stores and transportation fleets.
 

Our 2018 emissions performance 

Walgreens Boots Alliance reduced its carbon footprint in fiscal 2018 compared with the previous year, primarily due to a change in U.S. Environmental Protection Agency (EPA) published conversion factors and to lower electricity consumption at Walgreens related to energy efficiency initiatives.

Our total carbon footprint in fiscal 2018 was 2,129,000 metric tonnes of CO2e (carbon dioxide equivalent), down 9.6 percent from fiscal 2017. The reduction since our baseline year, fiscal 2016, is 15.3 percent.



Total Company CO2e emissions,
by source
(000 metric tonnes)



Fiscal 20181    



Fiscal 20172   



Fiscal 20162   


Change vs.
baseline year
fiscal 2016 (%)

Energy

1,800

2,011

2,142

-16.0

Product Delivery

273

284

314

-13.1

Business Travel

56

59

57

-1.8

 

2,129

2,354

2,513

-15.3


1 Fiscal 2018 data within Deloitte & Touche LLP’s review scope as detailed on pages 90-91 of our CSR Report. We previously reported CO2e amounts that totaled 2,341,000 metric tonnes for fiscal 2017 and 2,504,000 metric tonnes for fiscal 2016. The relevant figures have been restated to reflect changes in measurement methodologies to include backhaul data for product delivery and more accurate data for business travel.

 
Fiscal 2018 Company CO2e emissions, by source1


















 


1 Fiscal 2018 data within Deloitte & Touche LLP’s review scope as detailed on pages 90-91.


Energy use reduction initiatives and investments

Walgreens Boots Alliance’s businesses made significant investments in energy efficient equipment to drive a reduction in energy use and emissions from energy use. These investments are key to reducing our carbon footprint, as electricity accounts for most of our emissions. Walgreens invested more than $115 million in energy efficiency programs, including projects in approximately 2,500 stores last year. These upgrades included replacing HVAC units and converting to LED exterior and interior lighting.
In Boots UK £14.4 million ($19.4 million) was invested during fiscal 2018.

Each business within Walgreens Boots Alliance sets energy use reduction goals and maintains a record of performance against its targets.
 

Engaging employees on energy reduction

WBA employers trialing bicycle generators
Walgreens Boots Alliance’s innovative EnergyCare program to educate employees about energy waste and encourage an energy conscious culture continued in 2018. The program has helped to reduce energy consumption at Boots UK stores and at its support office in Nottingham.

The program includes events and installations such as bicycle generators, to raise awareness about energy reduction.

 



Product delivery and business travel

An Alliance Healthcare employee charging his car
Our emissions from product delivery decreased by 3.9 percent in fiscal 2018 compared with the previous year due to improved fleet fuel efficiency in our Retail Pharmacy USA Division, route changes and efficiencies that drove emissions down in the Retail Pharmacy International Division and a decrease in delivery volumes in the Pharmaceutical Wholesale Division.

Emissions from product delivery decreased 13.1 percent in fiscal 2018 compared with fiscal 2016.
 

CO2e emissions from product delivery, by Division
(000 metric tonnes)

Fiscal 20181

Fiscal 20172

Fiscal
20162

Change vs. baseline year fiscal 2016(%)

Retail Pharmacy USA

125

133

136

-8.1

Retail Pharmacy International

38

41

51

-25.5

Pharmaceutical Wholesale

110

110

127

-13.4

 

273

284

314

-13.1


1 Fiscal 2018 data within Deloitte & Touche LLP’s review scope as detailed on pages 90-91 of our CSR Report.
2 We previously reported amounts that totaled 272,000 metric tonnes for fiscal 2017 and 305,000 metric tonnes for fiscal 2016. The relevant figures have been restated to reflect changes in measurement methodologies to include backhaul data for product delivery.


Our CO2e emissions from business travel fell 5.1 percent in fiscal 2018 compared with the previous year due to reduced road travel and fuel efficiency improvements in our corporate vehicles. Compared with baseline year fiscal 2016, our emissions from business travel in fiscal 2018 decreased 1.8 percent. 


CO2e emissions from business travel,
by Type(000 metric tonnes)

Fiscal 20181

Fiscal 20172

Fiscal 2016

Change vs. baseline year fiscal 2016 (%)

Road

25

29

31

-19.4

Air

30

29

25

+20.0

Rail

1

1

1

0.0

 

56

59

57

-1.8

1 Fiscal 2018 data within Deloitte & Touche LLP’s review scope as detailed on pages 90-91 of our CSR Report.
2 We previously reported amounts that totaled 58,000 metric tonnes for fiscal 2017. The relevant figures have been restated to reflect more accurate data for business travel.

 

Renewables

Walgreens Boots Alliance businesses generated close to 17,000 mWh of electricity through solar panels in fiscal 2018, mostly from solar installations on 240 stores and distribution centers in the U.S. Walgreens is the third ranked U.S. corporation for number of solar installations, according to the Solar Energy Industries Association’s 2018 Solar Means Business report, and is ranked No. 17 for installed capacity. 

A number of our businesses in the UK and Republic of Ireland—including Boots UK, Boots Opticians, Alloga UK, Alliance Healthcare in the UK and Boots Ireland—have contracts to purchase electricity generated from renewable origins. Our businesses in Norway are certified for purchasing 100 percent renewable energy.
 

Refrigerants

During fiscal 2018, we made further steps in understanding our refrigerant use and estimated baselines for Total Equivalent Warming Impact from refrigeration, air conditioning and heating equipment in three of our businesses: Walgreens, Boots UK and Boots Ireland.

We have formulated strategies to reduce our environmental impact through new technologies. We also continue to pursue our commitment to the Consumer Goods Forum’s second refrigeration resolution—to phase down high Global Warming Potential gases by enabling all new refrigeration installations to use only natural or ultra-low refrigerants by no later than 2025.


UK Cycle to Work Incentive

Our UK businesses including Boots UK, Alliance Healthcare, Boots Opticians and Alloga, participate in the UK government’s Cycle to Work program, which encourages employees to bicycle to work as an environmentally friendly means of travel through incentivizing the purchase of a new bicycle. Under the benefit, employees can select a bike and equipment and spread the cost over a 12-month period. In fiscal 2018 more than 350 employees from our participating UK companies purchased a bicycle through the program.


Beauty and sustainability in Boots UK

beauty display at Boots

New displays installed in 2,244 existing Boots stores in UK and Ireland in fiscal 2018 are 40 percent more energy efficient than in the previous displays, resulting in an estimated reduction of 590 metric tonnes of annual CO2e emissions across all stores with the installations. Close to 100 percent of the waste generated from the project, including the obsolete store furniture as well as packaging materials for the new fixtures, was recycled or recovered and did not go to landfill. More than 3,200 metric tonnes of waste from the previous displays was diverted from landfill as a result.

 

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