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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): October 18, 2023

 

 

Premier, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

 

Delaware   001-36092   35-2477140
(State or Other Jurisdiction
of Incorporation)
  (Commission
File Number)
  (IRS Employer
Identification No.)

13034 Ballantyne Corporate Place

Charlotte, NC 28277

(Address of Principal Executive Offices) (Zip Code)

(704) 357-0022

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading
Symbol

 

Name of each exchange
on which registered

Class A Common Stock, $0.01 Par Value   PINC   NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2). Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 


Item 7.01.

Regulation FD Disclosure.

On October 18, 2023, Premier, Inc. (the “Company”) announced the release of its 2023 Sustainability Report, dated as of October 18, 2023 (the “Report”), which was approved by the Board of Directors and its Nominating and Governance Committee. The Report is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

The information discussed under this Item 7.01, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference in any filing by the Company under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.

 

Item 9.01.

Financial Statements and Exhibits.

 

(d)

Exhibits.

 

99.1    Premier, Inc. 2023 Sustainability Report, dated as of October 18, 2023.
104    Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  Premier, Inc.
  By:  

/s/ Michael J. Alkire

    Name:   Michael J. Alkire
    Title:   President and Chief Executive Officer
Date: October 18, 2023  

Exhibit 99.1 2023


TABLE OF CONTENTS LETTER FROM OUR PRESIDENT AND CEO 3 00 OVERVIEW 4 ABOUT US 5 OUR APPROACH TO SUSTAINABILITY 6 ABOUT THIS REPORT 8 ESG HIGHLIGHTS 9 AWARDS AND RECOGNITION 10 01 IMPROVING COMMUNITY HEALTH 11 IMPROVING PATIENT OUTCOMES AND LOWERING COSTS 12 SUPPORTING THE HEALTH OF HISTORICALLY MARGINALIZED PATIENTS 13 IMPROVING HEALTH THROUGH COMMUNITY DEVELOPMENT 14 02 ETHICS AND COMPLIANCE 16 CORPORATE GOVERNANCE 17 ENTERPRISE RISK MANAGEMENT AND BUSINESS CONTINUITY 18 CYBER RISK MANAGEMENT, DATA SECURITY AND CUSTOMER PRIVACY 19 GOVERNMENT AFFAIRS AND ADVOCACY 20 03 OUR PEOPLE AND CULTURE 22 OUR PEOPLE FIRST PHILOSOPHY 23 DIVERSITY, EQUITY, INCLUSION AND BELONGING 26 04 RESPONSIBLE SUPPLY CHAIN 28 SUPPLY CHAIN SERVICES 29 SUPPLIER ETHICAL STANDARDS 30 PRODUCT QUALITY AND SAFETY 31 SUPPLY CHAIN ENVIRONMENTAL SUSTAINABILITY 32 SUPPLIER DIVERSITY 33 SUPPLIER RESILIENCY AND DISASTER RESPONSE 33 05 ENVIRONMENTAL STEWARDSHIP 34 ADDRESSING CLIMATE CHANGE 35 FACILITIES MANAGEMENT 36 FORWARD-LOOKING STATEMENTS This report contains forward-looking statements that are based on Premier’s current expectations and beliefs. All statements, other than statements of historical 06 APPENDIX 38 fact, are statements that could be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward- ESG DATA TABLE 39 looking statements involve known and unknown risks, uncertainties, and other factors that may be out of the company’s control and could cause actual results to SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) 41 differ materially from future results expressed or implied by those statements. Premier disclaims any intention or obligation to update or revise forward-looking TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) ALIGNMENT 45 UN SUSTAINABLE DEVELOPMENT GOALS (SDGs) 49 statements, whether as a result of new information, future events or otherwise. ESG MATERIALITY ASSESSMENT DEFINITIONS 50 All metrics in this report are based on internal company data and estimates unless otherwise noted. CITATIONS AND FOOTNOTES 51 2


00 OVERVIEW Premier’s commitments to business ethics begin at the portfolio to include more than 250 diverse and small validated through security drills, third-party audits, cyber highest level of our company. Guided by our Board, business suppliers, accounting for approximately 12% maturity assessments and mock event drills that are run 01 IMPROVING which sets exacting standards for our employees, of our supplier contracts and more than $1 billion in at least annually to ensure currency with the current risk COMMUNITY contractors, suppliers, members and other customers, member purchasing spend. environment, compliance with applicable laws and HEALTH and directors based upon our philosophy regarding the adherence to Premier’s high standards of excellence. Premier is committed to sourcing safe, effective, importance of sound corporate governance, Premier New in 2023, Premier also developed new contracting 02 high-quality products. Premier actively strives to drive ® was named one of the World’s Most Ethical Companies standards for assessing and promoting the ETHICS AND business toward environmentally friendly suppliers. As COMPLIANCE ® cybersecurity of internet-connected medical devices and by the Ethisphere Institute for the 16th consecutive part of that commitment, Premier collects a host of data equipment to help member healthcare providers prevent year. Our track record of 100 percent employee points to help members pinpoint and avoid products 03 education and rigorous compliance with our ethical code breaches via these technologies. that may contain potentially harmful chemicals or other OUR PEOPLE of conduct reflects our commitment to integrity and AND CULTURE environmentally damaging components - information Building on a solid foundation, we made steady progress meeting the highest ethical standards. that is available before purchasing decisions are made. in 2023, and our work remains ongoing. We are fully 04 Premier is leading efforts to extend high-quality In addition, we review all suppliers’ safety and regulatory committed to further embedding ESG practices into our LETTER FROM RESPONSIBLE healthcare to underserved communities. Under our compliance records to assess product performance as business practices to transform healthcare and make SUPPLY CHAIN Contigo Health brand, Premier worked with our centers part of our bid process. For products we directly source, the world a better place. OUR PRESIDENT of excellence to design and implement a care bundle for we deploy a rigorous quality and inspection program Sincerely, 05 the treatment and ongoing management of substance that leverages industry best practices to deliver high- ENVIRONMENTAL AND CEO STEWARDSHIP use disorders, which our research shows costs the U.S. quality products, all while driving tangible savings. On behalf of Premier’s approximately 2,800 employees healthcare system more than $95 billion annually in Premier strives to reduce our environmental impact. and our Board of Directors (Board), I am delighted to 06 unnecessary expense. Now a stand-alone offering, the Premier continually works toward sustainable APPENDIX present Premier’s 2023 Sustainability Report. Michael J. Alkire substance use bundle can be incorporated into any operations, as demonstrated by our environmental President and CEO employer-sponsored health plan’s benefits package, Environmental, social and governance (ESG) practices policy, adopted in calendar 2022, as well as our October 18, 2023 helping to stem the tide of addiction in communities are core to who we are as a company, incorporated into commitment to the White House/Department of Health while controlling unsustainable treatment expenditures. our mission to improve the health of communities. and Human Services’ Health Sector Climate Pledge that 2023 was also the year that Premier formally launched Together with our values, ESG practices are the aims to reduce healthcare’s carbon footprint by 50% by our Health Equity Collaborative, enabling our healthcare guideposts we use to ensure that our strategy to deliver 2030. We also continued to assess our greenhouse gas provider members to create action plans applicable to long-term growth and value creation also results in a (GHG) emissions to baseline our carbon footprint for their community’s needs, as well as standardized positive and sustainable impact. Moreover, our approach Scope 1 and 2 GHG emissions. As part of our ongoing measures to evaluate social determinants of health and guides how we empower our members and other focus to minimize our environmental impact, we are equity outcomes. customers to deliver better healthcare, advance social committed to taking measured steps to continue to responsibilities and improve environmental stewardship. Premier is committed to health and wellness solutions advance our environmental efforts. for a diverse world. Premier grew its eight employee The purpose of this report is to highlight the numerous We continue to strengthen our risk management and resources groups (ERGs) focused on diverse ways ESG practices guide us in our defined priority data privacy programs. Managed directly by our Board, communities within the company to include 15% of all areas, how they are embedded in our business and how our risk-management and data security programs are employees, enabling these groups to help influence the they enable us to better support our members and other guided by robust plans designed to minimize disruptions culture of the organization and provide critical feedback stakeholders, including the communities we serve. What and ensure privacy protections in the event of a natural on their workplace experiences. In addition, we follows are highlights from our work in 2023. disaster, cyberattack or other emergency. Business continued to diversify our group purchasing contract continuity and infrastructure recovery capabilities are 3


IN THIS SECTION ABOUT US OUR APPROACH TO ABOUT THIS REPORT 2023 ESG HIGHLIGHTS 2023 AWARDS AND SUSTAINABILITY RECOGNITION 00 Overview Making a Premier Impact – At Premier, we’re reinventing the next generation of healthcare, using every tool in our arsenal to improve health outcomes and lower costs.


ABOUT US PREMIER AT A GLANCE Premier is a leading healthcare improvement 00 company uniting an alliance of more than 4,350 OVERVIEW U.S. hospitals and health systems and nearly 300,000 other providers and organizations to 01 transform healthcare from the inside out — making IMPROVING COMMUNITY it smarter, faster and better. With integrated data HEALTH and analytics, collaboratives, supply chain solutions, consulting and other services, we enable better 02 healthcare and outcomes at lower costs. We play a ETHICS AND COMPLIANCE critical role in the rapidly evolving healthcare industry, helping to shape everything from healthcare policy for populations to quality of life 03 OUR PEOPLE for patients. We do this by collaborating with our AND CULTURE members and leveraging the power of our data and technology and consulting platform to co- 04 develop innovative, long-term solutions that are RESPONSIBLE SUPPLY CHAIN reinventing and improving the way care is delivered to patients nationwide. 05 ENVIRONMENTAL COMMITTED TO MAKING STEWARDSHIP A DIFFERENCE Sustainability is at the heart of our mission, culture MORE THAN 06 MORE THAN DATA ON MORE THAN and business practices. Transforming healthcare is APPENDIX APPROXIMATELY more than our goal — it’s in our DNA. At Premier, , we’re dedicated to ensuring better healthcare and 4350 300K 83B 45% making a positive impact on society. OTHER PROVIDERS U.S. HOSPITALS AND HEALTH SYSTEMS U.S. HOSPITAL DISCHARGES AND ORGANIZATIONS GROUP PURCHASING VOLUME ARE PREMIER MEMBERS To improve the health OUR MISSION OUR VALUES of communities. Innovation Focus on People Seeking breakthrough opportunities, taking risks Demonstrating respect for all, and mutual commitment to the and initiating meaningful change. success of the alliance, our employees, our business partners Through the collaborative power of the and the communities we serve. Premier alliance, we will lead the transformation Passion for Performance OUR VISION Integrity to high-quality, cost-effective healthcare. A passion for performance and a bias for action, creating real value for all stakeholders and leading the pace. Integrity of the individual, the enterprise and the alliance. 5 5


Our mission is to improve OUR the health of communities. APPROACH TO SUSTAINABILITY We enable our member 00 We believe that our commitment in these CREATING SUSTAINABLE VALUE healthcare providers and OVERVIEW MAKING A PREMIER IMPACT strategic areas will create long-term value for our By leveraging the powerful combination of our other customers to deliver Premier’s sustainability strategy reflects the stakeholders, achieve sustainable business unique partnerships with health systems across 01 intersection of our mission to improve the health of higher-quality healthcare by success, and, ultimately, improve the health of the country and our extensive data and technology IMPROVING communities and our business strategy anchored in COMMUNITY our communities. Our 2023 Sustainability Report and services platform, we aim to lead the leveraging our data and HEALTH revolutionizing healthcare. Our sustainability details the work we do every day to advance our transformation to higher-quality, more cost-effective approach is centered on the environmental, social analytics capabilities, ESG initiatives and highlights the progress we healthcare. Our core ESG principles are embedded 02 and governance (ESG) areas most critical to our made over the past year thanks to the dedication in how we operate and empower our members and resulting in improved health ETHICS AND stakeholders, and guides how we aim to make a of our employees, members and suppliers. COMPLIANCE other customers to deliver better healthcare, outcomes and lower costs. sustainable, positive impact for our communities, advance social responsibilities and improve employees, partners, suppliers and the environment environmental impacts. Our ESG priorities are 03 — a Premier Impact. We believe that our long-term OUR PEOPLE aligned with five strategic pillars. AND CULTURE financial success and our sustainability strategy are interdependent and start with our unique culture 04 — one that is committed to making a difference in RESPONSIBLE all that we do. SUPPLY CHAIN 05 ENVIRONMENTAL IMPROVING STEWARDSHIP ETHICS AND OUR PEOPLE RESPONSIBLE ENVIRONMENTAL COMMUNITY COMPLIANCE AND CULTURE SUPPLY CHAIN STEWARDSHIP HEALTH 06 APPENDIX Our mission is to improve the We are committed to strong To effectively transform We enable our members to As part of our efforts to health of communities. We corporate governance, ethical healthcare, we aim to build a provide better healthcare and improve the health of our enable our member healthcare behavior and responsible culture of high-performing improved outcomes at a lower communities, we both pursue providers and other customers business practices that build individuals, leaders and teams cost for patients by improving eco-friendly practices to deliver higher-quality trust and promote the with a “People First” the quality, efficiency, throughout our operations and healthcare by leveraging our long-term interests of our philosophy, living our core sustainability and resiliency of advance solutions to help our data and analytics capabilities, stakeholders. values while maintaining a the healthcare supply chain, members minimize their resulting in improved health high level of employee and leveraging our industry- environmental footprint. outcomes and lower costs. engagement and retention. leading technology capabilities powered by one of the nation’s largest repositories of clinical, operational and financial data. 6 6


LEARNING FROM OUR STAKEHOLDERS 00 OVERVIEW As part of our approach to sustainability, we engage with a variety of internal and external stakeholders whose support is critical to the long-term success of our business or who are materially impacted by our business operations. Our stakeholders' perspective and feedback help to inform, prioritize and continuously improve our ESG strategy. 01 IMPROVING COMMUNITY Healthcare Provider Members and Other Customers HEALTH We continually engage with our healthcare provider members and other customers to solicit feedback across several critical ESG topics, including product quality and safety, climate change and environmental risks, supply 02 ETHICS AND chain resiliency and diversity, customer privacy, and business continuity. We engage with our members and other COMPLIANCE customers through industry conferences, newsletters, surveys, forums and advisory groups. 03 Regulators and Advocates OUR PEOPLE AND CULTURE Our Government Affairs team engages with legislators, regulators and key government decision-makers on ESG-related issues and seeks opportunities to provide regular input into government reviews related to healthcare policies. 04 RESPONSIBLE SUPPLY CHAIN Engaging with Our Key Stakeholders Group Purchasing Organization and Direct Sourcing Suppliers IDENTIFYING OUR ESG PRIORITIES An essential aspect of managing our ESG initiatives Whether through committee gatherings, industry conferences or in-person meetings, we diligently engage with Materiality Assessment of ESG Priorities 05 is the comprehensive approach we take to group purchasing organization (GPO) and direct sourcing suppliers to help us identify innovative, sustainable In FY2022, we assessed the material non-financial ENVIRONMENTAL stakeholder engagement. We believe that creating sourcing options, foster a diverse supply chain, and conduct due diligence that assesses environmental STEWARDSHIP issues designated by our business and our value for all stakeholders — both internal and considerations, human rights, cybersecurity and other ESG factors. stakeholders as important for Premier’s long-term external — is critically important for our long-term 06 success and positive impact. The findings from our business success. We frequently engage with our Communities APPENDIX assessment serve as a key input to help us stakeholders to help build a deeper understanding strategically deploy resources companywide and We engage and partner with community members and non-profit organizations to align their needs with Premier’s of key ESG topics and accelerate progress on our philanthropic support, employee volunteerism and innovative solutions to support and provide underserved refine our programs as needed. Please see the initiatives. Our engagement includes a mix of open communities with healthcare improvements, economic empowerment and health equity. Appendix for a complete list of definitions for the 24 dialogue, collaboration and transparent disclosure. high-priority ESG factors that were identified during We listen and learn from our stakeholders and use Financial Community this exercise. We plan to refresh this analysis their input to inform, shape and advance our ESG periodically as needed based on the evolution of We regularly communicate with investors and equity research analysts through industry conferences, earnings strategy. We value stakeholder views and insights, our business. calls, one-on-one meetings and website disclosures to discuss our ESG initiatives and progress in the areas of and believe that positive, multi-directional climate change, cybersecurity and data privacy, executive compensation and board composition, talent conversation builds informed relationships that management, and employee diversity as well as other ESG- and business-related topics that are important to the promote transparency and accountability. financial community. Employees Our employees are foundational to Premier’s success and their feedback helps shape our business decisions and advance our purpose-led strategy to improve the health of our communities. We are intentional in creating opportunities for employees at all levels to provide input into our ESG practices and strategy on topics such as As part of our overall stewardship engagement efforts, we meet with our stockholders to discuss workplace flexibility, Diversity, Equity, Inclusion and Belonging (DEIB) and professional development. We gather our ESG practices and initiatives. Over the past year, we reached out to stockholders representing valuable feedback through frequent employee engagement throughout the year with surveys, newsletters, employee resource groups and team meetings. approximately 43% of our total Class A common shares outstanding, and our stewardship team 7 met with stockholders representing more than 30% of our common stock.


OVERSIGHT OF ESG FACTORS Integration of ESG into Executive Compensation ESG GOVERNANCE Our Board works closely with our executive The Compensation Committee approved the management team to oversee effective governance inclusion of an ESG-related metric in our annual and management of our environmental and social incentive plan in FY2023. It is a two-part goal, where 00 BOARD OF DIRECTORS risks inherent in our business model and industry. Premier is first targeting an increase in GPO OVERVIEW As a whole and through its standing committees, member spend through diverse suppliers and, with the Board’s structure is intended to support and a second component (to help foster a high- 01 All enterprise risk management of ESG-related areas (strategic, operational, financial, promote effective oversight and risk management performance culture), we are also including an IMPROVING legal, information technology and reputational). COMMUNITY of ESG factors critical to our business, such as overall employee engagement score target based HEALTH information security and privacy, supply chain on our semi-annual employee engagement survey management, human capital management, and that incorporates diversity-related topics and 02 business ethics and compliance, as outlined below. questions. The Board believes that these two ETHICS AND The Nominating and Governance Committee (NGC) elements of the goal are additive to supporting our COMPLIANCE NOMINATING AND GOVERNANCE COMMITTEE has primary responsibility for ESG oversight, and mission to improve the health of communities and periodically reports to the full Board regarding ESG achieve our vision to lead the transformation to 03 OUR PEOPLE Corporate governance and primary ESG oversight of programs and policies, matters, such as: high-quality, cost-effective healthcare. AND CULTURE progress of initiatives, external disclosures, and stockholder trends and providing • Monitoring and evaluating programs and policies periodic updates to the Board. ABOUT THIS REPORT relating to ESG matters. 04 This report covers the progress of our ESG strategy RESPONSIBLE SUPPLY CHAIN • Periodically reviewing performance related to and initiatives during our fiscal year ending June 30, AUDIT AND COMPLIANCE COMMITTEE ESG issues, including progress toward the 2023 (FY2023). We have aligned our report with the 05 achievement of ESG goals. Sustainability Accounting Standards Board (SASB) ENVIRONMENTAL Standards related to Health Care Distributors and to Financial, legal and regulatory compliance, and cybersecurity and ethical risks, STEWARDSHIP • Overseeing corporate communication plans and relevant topics from Medical Equipment and including any required disclosures of ESG-related metrics. any sustainability or similar reports in connection Supplies and Software and IT Services. We also 06 with ESG initiatives. identified several UN Sustainable Development APPENDIX COMPENSATION COMMITTEE Goals (SDGs) that we believe are supported by our • Considering and monitoring trends, stockholder business activities and key priority areas. concerns and emerging issues related to ESG that affect Premier and its industry. Corporate compensation philosophy and structure at all employee levels and related Unless otherwise noted, all quantitative company policies concerning ESG matters. data provided throughout this report covers • Making recommendations to the Board FY2023, reflecting data for the period from July 1, regarding overall ESG matters. 2022 through June 30, 2023. Some information For more information, please see the Risk corresponds to the period of January 1, 2022, Management and Business Continuity Enterprise through December 31, 2022 (CY2022), and is noted ESG STEERING COMMITTEE section of this report or our 2023 Proxy Statement. as such. We have also included certain subsequent initiatives that occurred after the end of FY2023 and Key role in championing and governing our overall sustainability strategy and priorities. have noted them as such. Throughout the report, Composed of cross-functional leaders who meet quarterly to develop and drive we also guide readers to additional sources of Premier’s sustainability objectives. The ESG Steering Committee provides periodic information on our corporate website, SEC filings updates to the Nominating and Governance Committee on our ESG program, and other website references for convenience. emerging trends and stakeholder engagement. For more information, please see our Board committee composition and charters on the Corporate 8 Governance section of our Investor Relations website.


2023 ESG HIGHLIGHTS 00 OVERVIEW IMPROVING RESPONSIBLE ENVIRONMENTAL 01 ETHICS AND COMPLIANCE OUR PEOPLE AND CULTURE IMPROVING COMMUNITY HEALTH SUPPLY CHAIN STEWARDSHIP COMMUNITY HEALTH Administered a substance use Continued to baseline our Advanced collaboration with 02 Leadership Excellence 100% employee ETHIC disor S AND der program to help provide greenhouse gas (GHG) emissions, suppliers to ensure that at Premier (LEAP) COMPLIANCE completion an accessible, equitable solution calculating our Scope 1 and environmental sustainability addressing behavioral and Scope 2 emissions for FY2022. All employees, board members, information is made available before Enhanced professional development 03 physical health needs. and committee members purchasing decisions are made. opportunities with Leadership OUR PEOPLE AND CULTURE completed their respective Excellence at Premier (LEAP) program. required compliance training. Began aligning with the 04 RESPONSIBLE recommendations of the Partnered with Monitored quality, safety and value SUPPLY CHAIN Task Force on Climate-related Implemented companywide Henry Ford Health standards of supplier products and Financial Disclosures (TCFD). programming centered on growth, services with ongoing advice and 05 to lead screening exams for adults of the Board of diversity, equity, inclusion and ENVIRONMENTAL oversight from 29 strategic sourcing with diabetes experiencing inequities. Directors is diverse. STEWARDSHIP belonging in the workplace. 44% committees representing more than approximately 150 of our U.S. Continued to improve the data 06 hospital members. APPENDIX collection from our property managers to enhance our GHG Launched Health Equity Collaborative assessments and better understand Advanced advocacy for data-driven to support our members in meeting the impact of electricity and gas policies that help solve poor and exceeding new regulatory and consumption at our facilities. 79% outcomes and disparities in payer requirements. $1 Billion Offered over 9,000 online learning maternal-infant care. modules with an employee Assisted our members to transact participation rate of 79%. over $1 billion with diverse Continued to offer the option to work suppliers through Premier’s group remotely or in a hybrid capacity, which purchasing program. gives our staff flexibility, lowers our $100,000 energy demands, and ultimately Premier Cares Award decreases our Scope 1 and 2 footprint. Presented annual $100,000 Pioneered the development of supplier Premier Cares Award recognizing contracting standards for assessing nonprofit community and promoting the cybersecurity of organizations that are improving internet-connected medical devices health of populations in need. and equipment. 9


2023 Premier and our leaders were recognized in many ways this past year, and we are proud to share a few 00 awards and recognition here. To learn more, please see the Awards and Recognition section of our website. OA VERVIEW W ARDS AND 01 IMPROVING RECOGNITION COMMUNITY HEALTH 02 ETHICS AND 2023 World’s Most Ethical Modern Healthcare 2022 BWB Award Winner Charlotte Business Journal COMPLIANCE ® Companies Honoree by for innovative use of 100 Most Influential Public Company ® Ethisphere technology-enabled 03 People in Healthcare CFO of the Year OUR PEOPLE – healthcare solutions in the AND CULTURE – Michael J. Alkire – Craig McKasson th 16 Digital Medicine category. TM Consecutive 04 – PINC AI Applied RESPONSIBLE Year SUPPLY CHAIN Sciences , AstraZeneca, Clinithink 05 2023 Achievers 50 Most ® ENVIRONMENTAL Healthiest Employers ® STEWARDSHIP Engaged Workplaces Hall of Fame for 2023. 06 APPENDIX The awards program was 2023 Heartbeat of created to honor people-first Healthcare Supply Chain organizations that prioritize Award Winner the well-being of their TM employee population. – PINC AI Supply 2023 Best in KLAS Disruption Manager Team Award for Value-Based Care Consulting TM – PINC AI 10


IIN N T TH HIIS S S SE EC CT TIIO ON N IM IMP PR RO OV VIN ING G P PA AT TI IE EN NT T OU OUT TC CO OM ME ES S S SU UP PP PO OR RT TI IN NG G T TH HE E H HE EA AL LT TH H O OF F T TH HE E I IM MP PR RO OV VI IN NG G H HE EA AL LT TH H T TH HR RO OU UG GH H A AN ND D L LO OW WE ER RI IN NG G C CO OS ST TS S P PA ATI TIEN ENTS TS H HI IS ST TO OR RI IC CA AL LL LY Y M MA ARG RGI IN NA AL LI IZ ZED ED C CO OM MM MU UN NI IT TY Y D DE EV VEL ELO OP PM MEN ENT T 00 01 Improving Com Sec mu tion nit y H T eal itle th Our mission is quite simple: to improve the health of communities. section statement We view this as not only our mission but our social responsibility. FY2023 HHIIGGHHLI LIGGHHTS TS + + Administer Administered a substance use disor ed a substance use disorder der + + P Par artner tnered with Henr ed with Henry F y For ord Health t d Health to o + + Launched Health E Launched Health Equity Collabor quity Collaborativ ative e + + Pr Presented annual $100,000 Pr esented annual $100,000 Premier Car emier Cares es pr progr ogram t am to help pr o help pro ovide an accessible, vide an accessible, lead scr lead screening exams for adults with eening exams for adults with t to suppor o support our members in meeting and t our members in meeting and A Awar ward r d recognizing nonpr ecognizing nonprofit community ofit community equitable solution addr equitable solution addressing beha essing behavior vioral al diabetes experiencing inequities. diabetes experiencing inequities. ex exceeding new r ceeding new regulat egulator ory and pa y and pay yer er or organizations that ar ganizations that are impr e impro oving health of ving health of and physical health needs. and physical health needs. r requir equirements. ements. populations in need. populations in need.


IMPROVING PATIENT OUTCOMES AND LOWERING COSTS SUCCESS 00 OVERVIEW Premier plays a critical role in the rapidly evolving Contigo Health has launched pilot programs with SPOTLIGHT healthcare industry by collaborating with members employers by partnering with health systems in 01 to co-develop long-term innovations that reinvent select markets. The goals of the pilot programs IMPROVING and improve the way care is delivered to patients were to: COMMUNITY HEALTH nationwide. With our differentiated combination of • Increase engagement with employer health Advancing Access to Substance Use Disorder Treatment Solution integrated data and analytics, collaboratives, supply and wellness programs in the clinical setting. Substance Use Disorder (SUD) is a chronic disease that occurs when the chain capabilities, and advisory and other services, 02 use of alcohol and/or drugs causes clinically significant impairment. ETHICS AND • Empower clinicians with information on we believe that we are uniquely positioned to enable 1 COMPLIANCE Approximately one in seven Americans is affected by SUD , and this has employers’ existing ancillary benefits during better care and outcomes and improve overall 2 increased by 30% since the start of the pandemic . This disorder can have the patient encounter. patient experience at a lower cost. significant impacts on peoples’ health, ability to meet work and life 03 • Ensure patients are aware of the resources OUR PEOPLE To strengthen our ability to have a positive impact, responsibilities, and overall quality of life. AND CULTURE available to better manage their health. we apply our comprehensive technology and SUD has often been stigmatized as a moral failing or a choice, with many services platform, PINC AI™, with its more than 20 • Avoid unnecessary invasive treatments and people suffering in silence for fear of losing their jobs. However, employers 04 years of quality, cost and operational data points focus on delivering the most appropriate care RESPONSIBLE can help change the conversation by providing the pathway and SUPPLY CHAIN gleaned from more than 45% of U.S. hospital to improve quality and reduce costs. encouragement for treatment for this treatable, chronic health issue. discharges as well as approximately 2.7 billion CENTERS OF EXCELLENCE Through our SUD Program, employers finally have a SUD benefits plan that hospital outpatient and clinic encounters and nearly 05 Through Contigo Health, we have established helps deliver real results for their health plan members who need support, ENVIRONMENTAL 177 million physician office visits. We believe that STEWARDSHIP Centers of Excellence (COE) that offer specialized while treating them with the dignity, privacy and flexibility they deserve. PINC AI™ provides a unique opportunity to use programs that aggregate high concentrations of real-world data to conduct evidence-based and Designed alongside clinical partners, the Contigo Health SUD Program 06 expertise and related resources centered on population-based analyses of drugs, devices, provides access to treatment tailored to the individual through our trusted APPENDIX particular medical areas and delivered in a treatments, disease states, epidemiology, resource partners. Our hybrid virtual and in-person treatment program includes a full comprehensive, interdisciplinary fashion, while utilization, healthcare economics and clinical continuum of treatment service options for behavioral and physical health demonstrably improving outcomes and reducing outcomes. PINC AI™ delivers robust, real-world data needs, including integration into employers’ existing benefits. We believe costs. Cross-functional teams work closely to drive informed decisions that are actionable to there is no other SUD solution that is as accessible, equitable, throughout the entire care continuum to help improve quality, lower costs, reduce risks and help comprehensive and private. Our treatment solution is designed to result in improve access and inclusivity and drive optimal ensure patient safety. fewer relapses and healthier, more productive lives for employees and their patient safety and an overall quality experience. dependents. Workers who are actively in recovery help employers avoid CLINICALLY LED These qualities can also provide employers with the 3 $8,175 in turnover, replacement and healthcare costs . The annual PROVIDER NETWORK value-added benefit of bundled payments to control ® attributable medical expenditure of a SUD diagnosis for employer-sponsored Premier's subsidiary, Contigo Health , is focused on overall healthcare costs. With COE, organizations insurance was found to be $15,640 per affected enrollee and a staggering revolutionizing healthcare through affordable, are demonstrably improving outcomes for their 4 $35.3 billion in the population . transparent, comprehensive access, and thoughtful employees, saving costs and — most importantly benefits design. This subsidiary was designed to be — keeping the workforce healthy, productive and a clinically driven network of health systems ready for tomorrow. collaborating with employers and their health plans to deliver the best care possible for their employees. 12


• IMPROVE: Collaboration to improve health equity Reducing inequities across health outcomes will thinking approach, PINC AI™ Applied Sciences SUPPORTING THE and reduce disparities with standardized social require a diverse and inclusive healthcare co-designs solutions that help eliminate inequities. HEALTH OF HISTORICALLY determinants of health (SDOH) data integrated environment where all patients can thrive and Patients, providers and communities are active MARGINALIZED PATIENTS with quality outcomes and utilization data. have the opportunity to achieve optimal health participants in this process to help ensure their views outcomes. All people deserve high-quality and perspectives are included. Using this approach, 00 • INNOVATE: Navigate the future of health equity OVERVIEW We aim to lead the transformation to high-quality, healthcare delivered with dignity. Premier we can better understand problems, build solutions improvement with patient-specific social needs cost-effective healthcare by supporting the care for believes in the power of collaboration to improve and take action. data and a unique Health Equity Index to support 01 people who have been historically marginalized the health of communities and are leading IMPROVING benchmarking, improve care for populations that throughout our communities. Through our data and several endeavors committed to eliminate COMMUNITY have been historically marginalized, and guide HEALTH analytics capabilities, collaboratives and other tools, inequities. Using an equity-centered, design- policy development. we help healthcare providers better understand populations that experience health inequities, the 02 We have a Health Equity Planning Council in place ETHICS AND severity of health-related problems and the root to identify the areas in which Premier can best COMPLIANCE causes of inequitable outcomes, connecting support members using data and evidence-based providers to best practices and care bundles for research to solve health equity issues in member 03 SUCCESS remediation. Some of the initiatives we have in OUR PEOPLE communities. In CY2022, the Health Equity Planning AND CULTURE place to help address health inequities include Council reviewed the elements in development of those dedicated to improving maternal and infant SPOTLIGHT the Health Equity Collaborative, and that work health, opioid abuse, preventing and managing 04 supported the creation of the collaborative. RESPONSIBLE chronic health conditions, increasing Additionally, the planning council work led to greater SUPPLY CHAIN representativeness in research, and addressing integration of health equity-related initiatives Henry Ford Health and PINC AI™ Applied Sciences social drivers of health. between the Strategic Collaboratives and PINC AI™ Team Lead Action to Advance Health Equity 05 ENVIRONMENTAL Applied Sciences and expanding opportunities to This collaborative effort between PINC AI™ Applied Sciences (PAS) and Henry Ford HEALTH EQUITY COLLABORATIVE STEWARDSHIP design and conduct critical research projects to Health/Henry Ford Innovations turned health equity conversations into action by taking In January 2023, Premier launched its Health Equity focused on mental health, maternal and infant measurable steps toward improving the health of millions. Collaborative to support our members in meeting 06 health, impact of cancer care, neurodegenerative and exceeding new regulatory and payer APPENDIX In October 2022, more than 100 participants, including team members from the health conditions, SDOH, and other factors that contribute requirements set forth by the CMS, other payers system, community organizations, patient advocacy groups, funders, payers and life to health inequities. and accrediting bodies, which are focused on sciences organizations, gathered in Detroit to learn and engage in collaborative working reducing health inequities and thereby addressing sessions using an equity-centered, design-thinking approach. With a focus on ADVANCING HEALTH EQUITY the needs of communities that have been understanding the barriers to equitable healthcare that patients face and alignment to THROUGH RESEARCH, historically marginalized. Through this new existing efforts to advance health equity, the event highlighted opportunities to eliminate COLLABORATION AND INNOVATION collaborative, efforts are focused on the following inequities and build on local efforts. At Premier, we view health equity to mean that areas with a goal of providing data our members every person has the opportunity to achieve their Now, PAS and Henry Ford Health are co-designing solutions, using an equity-centered, need to address the health equity issues pertinent best health. Despite attention to health inequalities design-thinking approach, to increase referrals and use of annual diabetic eye screening to the communities they serve. since the 1980s, preventable and unjust differences exams for adults with diabetes experiencing inequities. People who are Black, American 5 still exist . The COVID-19 pandemic reinforced the Indian/Native and Hispanic/Latinx as well as people with lower income and education The Health Equity Collaborative has coast-to-coast disproportionate burden of illness, death and levels, experience a higher risk of developing diabetes and receive diabetic eye screens at member participation. Premier’s role is to act as a healthcare needs as well as heightened public lower rates than other groups. The collaborative team, in partnership with patients and facilitator in the following three specific areas: awareness of ongoing racial and economic providers, is designing and testing person-centered support systems to meet patients • ENGAGE: Participate in shared learning and best inequities, making health equity a national priority. where they are — addressing social and structural barriers to care, and enabling people practices, and create a Health Equity Action Plan, Premier recognizes that the underrepresentation of to get the care they need where and how they want it. thus meeting regulatory requirements while people in research and quality improvement efforts minimizing burden to existing staff. across gender, age, race and ethnicity has implications for patients, providers and life 13 science companies.


IMPROVING HEALTH Volunteering During Work Hours Our employees donated nearly $29,830 through this We provide each employee up to four hours of paid program to the following organizations: THROUGH COMMUNITY time off to volunteer quarterly. Employee volunteer • July – American Diabetes Association • January – National Organization for Rare Disorders DEVELOPMENT hours totaled 1,073. To advance our mission, we provide our members 00 • February – American Heart Association • August – PKD Foundation OVERVIEW Volunteering Outside Work Hours with many of the tools needed to support the • March – March of Dimes • September – Alzheimer's Association For every eight hours an individual employee communities in which they operate. We also believe volunteers during non-work hours, Premier donates • April – Royal Family KIDS • October – Scott Hamilton Cares Foundation 01 it is our social responsibility to do our part in directly IMPROVING $100, up to a maximum of $200 per employee per improving the health of communities. In this spirit, ® COMMUNITY • May – Colon Cancer Coalition • November – Dementia Society of America fiscal year, to the charitable organization. In FY2023, HEALTH community development is one of the four strategic ® • June – Scleroderma Foundation • December – Wounded Warrior Project we donated $2,700 to various charities to match pillars of our DEIB strategy. We drive coordinated our employees’ volunteer support. organizational community development initiatives 02 ETHICS AND to address the root causes of social determinants Corporate Gift Matching COMPLIANCE of health disparities, such as social justice, Employees may donate a minimum of $50 to an education, nutrition, poverty, maternal health and eligible charitable organization to receive a 50% 03 homelessness. matching gift up to $2,500 per employee per fiscal SUCCESS OUR PEOPLE AND CULTURE year. We matched $101,000 of our employees’ We deliver upon our social responsibility through charitable donations. Additionally, over $30,000 was SPOTLIGHT financial donations and employee volunteer efforts 04 donated between employees and employer to support nonprofits dedicated to improving RESPONSIBLE gift-matching to benefit disaster relief efforts for SUPPLY CHAIN community health. Our employees care about Premier Employee Shelter Security Exercise Kentucky tornado victims and Ukraine. taking responsibility to contribute to our mission Employees engaged in a Shelter Security exercise with Roof Above to help support several because, by virtue of our footprint, we live in the ERG Social Responsibility Initiatives 05 hundred homeless individuals and families by packing over 1,000 bags of necessary ENVIRONMENTAL communities we serve. We believe that our In total, our Employee Resource Groups (ERGs) STEWARDSHIP toiletries required to help improve their health outcomes and basic dignity. commitment to support these nonprofit helped spur donations of $28,574 to the Wounded ® organizations in helping the underserved is a Warrior Project (one of the largest donors). ERG 06 cornerstone of our mission and social responsibility. donations also provided over 3,200 items for the APPENDIX North Carolina USO Snack Pack drive. In addition, SOCIAL RESPONSIBILITY PROGRAM as part of the A Million Thanks Letter Writing Our Social Responsibility Program reflects our Campaign, Premier employees sent an estimate of commitment to nurturing the communities in which 100 handwritten letters to active-duty service we live and work. Our employee-driven programs members during Military Appreciation Month, they are reviewed annually with input from our assembled over 1,000 care packages for those employees to determine the recipients of our experiencing homelessness with the Roof Above monthly giving program, Giving Goodwill. Premier program, and they wrote letters to support the Love also actively conducts programs in support of for Our Elders program. For more information, natural disasters or humanitarian needs on an please see the ERG section of this report. as-needed basis. Lastly, our ERGs regularly Monthly Giving Goodwill Donations participate in programs near and dear to their Employees may also contribute through a monthly populations. Since launching our Social Giving Goodwill payroll deduction to support an Responsibility Program in 1998, Premier employees employee-nominated, national healthcare-related have supported local and national organizations, charitable organization. global nonprofits, and each other through various volunteering efforts and financial donations, as follows for FY2023: 14


PREMIER CARES AWARD 2023 Each year, we present the Premier Cares Award to Aging Gracefully recognize exemplary efforts by nonprofit community organizations to improve the health of A nonprofit program dedicated to 00 populations in need. We have presented the Cares making homes safer for low-income OVERVIEW Award annually since 1991, when it was created by adults over the age of 65. Dr. Monroe E. Trout, former CEO of American 01 Healthcare Systems, one of our heritage IMPROVING COMMUNITY organizations. Applications for this $100,000 award 2022 HEALTH are rigorously judged on innovation, outcomes, ease The BreakAway of replicability, financial impact and future vision. 02 We honor qualifying programs that support A nonprofit to help women recover ETHICS AND from the disease of addiction. populations who have been historically excluded COMPLIANCE from, or underserved by, the mainstream health delivery system. 03 OUR PEOPLE 2021 AND CULTURE Community Enhancement 04 Collaboration, Inc. RESPONSIBLE CARES AWARD SUPPLY CHAIN A nonprofit dedicated to CRITERIA eradicating food insecurity. 05 ENVIRONMENTAL + Suffer severely limited access STEWARDSHIP to medical, dental or mental 2020 healthcare providers. 06 Call to Freedom APPENDIX + Bear high infant mortality. A nonprofit focused on + Face low income and navigating a healthy path for extreme poverty. victims of human trafficking. + Experience high levels of drug abuse. 2019 + Are economically or Lifehouse medically vulnerable. Maternity Home + Possess a unique care need A nonprofit for high-risk pregnant that is not being met through women and their babies. traditional means. 2018 2023 Premier Cares Award Winner Hildegard House Aging Gracefully allows homeowners to move through A nonprofit providing a home and their homes safely and stay in their homes longer. compassionate care for individuals at the end of life. 15


IN THIS SECTION ENTERPRISE RISK MANAGEMENT AND CYBER RISK MANAGEMENT, DATA CORPORATE GOVERNANCE GOVERNMENT AFFAIRS AND ADVOCACY BUSINESS CONTINUITY SECURITY AND CUSTOMER PRIVACY 02 Ethics & Compliance Value of Integrity : We recognize the value of integrity as the underpinning of our business operations and relationships. FY2023 HIGHLIGHTS + 100% of employees, board members, and + 44% of our Board is comprosed of + Advanced advocacy for data-driven committee members completed their diverse directors. policies that help solve poor outcomes respective required compliance training. and disparities in maternal-infant care.


BOARD OF DIRECTORS At Premier, we recognize the value of integrity, and our 9 Directors Average Board Tenure: approach to ethics and compliance begins at the highest 00 level of our company. Our Board sets high standards for our >5 years 6 OVERVIEW directors and workforce members, which include employees < 5 years Women 33% 3 01 and contractors, based upon our philosophy regarding the IMPROVING COMMUNITY importance of sound corporate governance. 44% HEALTH Average Board Board Members DIVERSE African- Member Age: With ESG Skillset: American 02 ETHICS AND 11% 65 3 COMPLIANCE CORPORATE 03 OUR PEOPLE GOVERNANCE AND CULTURE Our accomplishments over the past year assessment. In addition, every two years, we Premier maintains Supplier Standards that 04 demonstrate the continued collaboration between benchmark our ethics and compliance program communicate our values and expectations, and RESPONSIBLE business leaders and the Corporate Compliance SUPPLY CHAIN through an independent third party. Our next emphasize the responsibilities and obligations of team toward achieving Premier’s growth goals workplace ethical culture assessment is expected suppliers when doing business with us and our through a safe and secure process. Named as 05 to be launched in early FY2026. For more alliance members. Suppliers are expected to uphold ® ENVIRONMENTAL one of the World’s Most Ethical Companies by information, please see our Corporate Governance these standards. STEWARDSHIP ® the Ethisphere Institute for the 16th consecutive Guidelines. year, our continued success reflects our Our Board is also subject to a Board Code of Ethics 06 commitment to integrity and meeting the highest Our Board is composed of talented and dedicated and a Board Conflict of Interest Policy and APPENDIX ethical standards. For more information on our directors with a diverse mix of experience, skills and Disclosure Statement. These documents are compliance program, please see our most recent backgrounds that reflect the strategic needs of our intended to focus the Board and each director on Annual Compliance Report. business and the nature of the environment in areas of ethical risk, provide guidance to directors which we operate. We believe diversity on our Board to help them recognize and deal with ethical issues, BOARD GOVERNANCE AND DIVERSITY also helps to advance the diversity of our corporate and promote honest and ethical conduct, including It is the duty of our Board of Directors to serve as leadership and overall DEIB strategy. the handling of actual, apparent or potential prudent fiduciaries for our stockholders and conflicts of interest between personal and oversee the management of our business. It is Code of Conduct professional relationships. For more information, our goal to advance the highest standard of Premier maintains a Code of Conduct (Code) that please see the Corporate Governance section of ethical behavior and integrity, and to ensure applies to all workforce members and directors. our website. compliance with all applicable laws, rules and Workforce members who violate our Code may be regulations. Our corporate governance practices subject to disciplinary action, up to and including We are a founding member of the Healthcare Group are established, monitored and regularly assessed termination of employment, subject to applicable Purchasing Industry Initiative (HGPII), a voluntary by our Board, with assistance from the laws. For more information on the Code as well as association dedicated to ethical conduct and Nominating and Governance Committee (NGC). related ethical business policies — including but not business practices of GPOs. For more information, At least annually, we regularly assess our policies, limited to conflict of interest, confidentiality and please see our most recent Annual Compliance programs and initiatives to ensure compliance human trafficking — please see the Ethics and Report and the HGPII website. with the latest regulatory requirements and best Compliance section of our website. Premier's Governance Documents practices as part of our corporate risk 17


Employee Training and Acknowledgements Our directors annually attest to their compliance Through a risk management approach that ENTERPRISE RISK All employees complete an interactive course that with the Board Code of Ethics, the Board Conflict of continuously assesses and improves our MANAGEMENT AND provides an overview of our Code as part of our Interest Policy and Disclosure Statement, and the information technology and cybersecurity risk annual compliance education. The CY2022 course Group Purchasing Organization Code of Conduct BUSINESS CONTINUITY deterrence capabilities, our Information Security, included compliance content about ethical (GPO Code). All sourcing committee and advisory Our Board plays an active role in overseeing the Privacy, Risk Management and Corporate 00 OVERVIEW workplace conduct, records retention and social subcommittee members receive education annually management of our risks. The committee structure Compliance groups have formed a functional media. During CY2022, 100% of our employees on our GPO Code, Confidentiality Policy, Conflict of of the Board supports and promotes effective collaboration to provide leadership and oversight 01 completed this education, which includes Interest Policy, and Insider Trading Policy. During enterprise risk management (ERM) and oversight. when managing privacy, compliance and IMPROVING attestation that they recognize and understand CY2022, 100% of directors and committee and cybersecurity risks. COMMUNITY ENTERPRISE RISK MANAGEMENT HEALTH the Code. subcommittee members completed this education Our Board retains ultimate oversight of ERM and BUSINESS CONTINUITY and related acknowledgments. Employees and contractors also complete annual remains informed through regular reports and AND DISASTER RECOVERY 02 awareness education on the Health Insurance Whistleblower Policy updates, including a standing ERM update at every Our Business Continuity and Disaster Recovery Plan ETHICS AND COMPLIANCE Portability and Accountability Act (HIPAA) and on The Audit and Compliance Committee (ACC) quarterly board meeting. Furthermore, each board (BCDRP) is designed to minimize disruption in the how to properly obtain, use, share, maintain and established a Whistleblower Policy that includes our committee evaluates and oversees the quality of our service delivery in the event of a 03 transfer protected data. During CY2022, 100% of confidential and anonymous reporting helpline management of risks within its area of natural disaster, cyberattack or other emergency. OUR PEOPLE employees completed this education. designed to promote open communication of responsibility. In addition, our Board and Key business continuity and infrastructure recovery AND CULTURE concerns regarding potentially unethical or illegal committees receive regular reports from our capabilities are validated through third-party audits, As part of our annual compliance education, activites. We provide whistleblowers with protection President and Chief Executive Officer (CEO), Chief cyber maturity assessments, and executive- and 04 employees also complete several online courses to from retaliation including loss of employment Administrative and Financial Officer (CAO/CFO), board-level companywide tabletop exercises at RESPONSIBLE meet regulatory requirements, including programs SUPPLY CHAIN status and workplace harassment. For more General Counsel, Chief Ethics and Compliance least annually. In addition, the BCDRP is periodically to satisfy the annual fraud, waste and abuse information on these procedures, please see our Officer, and other members of our leadership team subject to internal audit to confirm that it remains education requirements per the Code of Federal 05 Whistleblower Policy and our corporate compliance regarding areas of significant risk. For more applicable to the current risk environment. ENVIRONMENTAL Regulations (CFR) and sub-regulatory guidance guidelines that are a part of the ACC charter. information, please see our 2023 Proxy Statement. Adjustments are routinely made to the BCDRP to STEWARDSHIP for Medicare Parts C and D plan sponsors. During assure recovery of business operations and CY2022, 100% of new employees and selected staff Premier has established a robust framework and infrastructure in accordance with business 06 completed this education. continues to build our sustainability-conscious commitments and other requirements. APPENDIX enterprise risk management program, enabling: • Thorough organizational knowledge of sustainability, promoting the capture of emerging sustainability risks. • Assessments of sustainability opportunities as well as risks. • Measurement (qualification and quantification) of sustainability risks. • Common language and standards across enterprise functions increasing collaboration, coverage, rigor, consistency in management and reporting. 18


• Federal Information Security regulatory requirements, monitor control design, CYBER RISK and management commitment. Training, including Management Act (FISMA) and continually develop and update response plans “phishing” exercises, is provided at orientation and MANAGEMENT, DATA that support organizational risk tolerance. at least annually thereafter for all employees. During • System and Organization Control (SOC) 2 Type 2 SECURITY AND CY2022, 100% of employees completed our DATA PRIVACY 00 CUSTOMER PRIVACY Security Awareness Training Program. • System and Organization Control (SOC) 1 Type 2 As part of our services and solutions offered to OVERVIEW We rely on digital technology to conduct our customers, we collect and process various types of ADDRESSING CYBER THREATS • Payment Card Industry Data Security business operations and engage with our members data. This data is used to provide certain contracted 01 As the capabilities and level of sophistication of Standard (PCI DSS) and business partners. Through a risk management IMPROVING services and is collected, stored and maintained in hackers become more advanced, so do the threats COMMUNITY approach that continually assesses and seeks to • Sarbanes-Oxley Act of 2002 accordance with applicable privacy laws and HEALTH they pose. To effectively tackle this increasing risk, improve our information technology (IT) and regulations. Certain of our customer agreements we have operationalized a series of measures that cybersecurity risk deterrence capabilities, our Upon request, our Vice President of Risk and provide for secondary data rights, such as are designed to prevent hackers from penetrating 02 Information Security, Privacy, Risk Management and Compliance can provide our Security Assessment permitting the de-identification of protected health ETHICS AND our systems (cybersecurity), and trigger Corporate Compliance groups have formed a Report (SAR) and Security Compliance Letter of COMPLIANCE information (PHI), which is done in accordance with containment and recovery capabilities should they cross-functional collaboration to provide leadership Attestation (LOA). These documents not only serve HIPAA. Our Privacy Policy addresses the use and penetrate our systems (cyber resilience). and oversight when managing our privacy, as prima facie evidence of our security measures 03 disclosure of data collected outside our customer OUR PEOPLE compliance and cybersecurity risks. but also as official attestation that a comprehensive Our CISO has a documented Incident Response agreements, including the requirements of the AND CULTURE assessment was performed based on criteria Policy for the identification and escalation of California Consumer Privacy Act (CCPA) and other SECURITY, GOVERNANCE relative to the Federal Information Security security breaches and other cyber incidents. The applicable state privacy laws, such as the AND OVERSIGHT 04 Management Act (FISMA); Office of Management policy details guidelines for incident response and categories and types of personal information we RESPONSIBLE Premier’s Board and leadership team are and Budget (OMB) Circular A-130, Appendix III, SUPPLY CHAIN communication responsibilities. Customers are may obtain, what we do with that data, with whom committed to ensuring that information security Security of Federal Automated Information contractually responsible for informing us of we share it, and its related purpose. We also risks are adequately managed, and appropriate Resources; National Institute of Standards and 05 potential security breaches. There were no continuously monitor the legal and regulatory procedures are applied throughout the organization ENVIRONMENTAL Technology (NIST) Special Publication 800-37, significant data breaches requiring disclosure landscape to ensure that we are compliant with STEWARDSHIP to effectively monitor, mitigate and respond to cyber Guide for the Security Certification and during FY2023. new and changing privacy-related laws and risks, threats and incidents. Accreditation of Federal Information Systems; NIST regulations that may be applicable to our business. 06 CERTIFICATIONS AND Special Publication 800-53A, Assessing Security The ACC oversees our cyber risk management APPENDIX THIRD-PARTY AUDITS and Privacy Controls in Federal Information For more information, please see our Privacy program. Our Chief Information Security Officer High-quality and objective assessments are critical Systems and Organizations; and NIST Special Notice on our website. (CISO) and Chief Privacy Officer (CPO) plan, to the continued effectiveness of cybersecurity Publication 800-53, Security and Privacy Controls implement and administer our information security controls. Our products regularly undergo for Information Systems and Organizations. and privacy initiatives, including providing quarterly independent verification of their security, privacy updates on information security and privacy to the SECURITY ASSESSMENT AND and compliance controls, achieving certifications, ACC, as well as continuous updates to our COMPLIANCE FOR THIRD-PARTY attestations of compliance, or audit reports against leadership and executive teams and IT Steering VENDORS stringent standards. As a part of the independent Committee. The CISO’s and CPO’s teams jointly Prior to onboarding third-party vendors, we ensure verification process, third-party auditors examine collaborate on the response and investigation of that such vendors provide attestations from Premier’s end-to-end security practices — including suspected information security and privacy objective, reputable and licensed assessors as to data centers, infrastructure and operations — at a incidents. the caliber of the vendor’s security controls relative regular cadence. We routinely engage with a to stringent industry standards, which are SECURITY AWARENESS licensed third party to perform a comprehensive appropriate to their access privileges and scope of TRAINING PROGRAM assessment of our controls, capabilities and services provided. Further, third parties are required We promote a strong culture of security awareness programs against stringent standards, such as: to agree to commercially reasonable security, among our employees through ongoing training and confidentiality and privacy contractual terms. regular communication. We have a formal Security Vendors are periodically reassessed depending on Awareness Training Program for all employees that risk level to better ensure compliance with legal and 19 addresses purpose, scope, roles, responsibilities


GOVERNMENT AFFAIRS pledged to fulfill the White House/HHS Health Sector Climate Pledge, which commits us to AND ADVOCACY reducing our GHG emissions by 50% by 2030 and Our Washington, D.C.-based Government Affairs achieving net-zero emissions by 2050. Premier is team acts as an advocate for our members and the SUCCESS 00 also advocating for federal policies to support communities they serve. Premier educates federal OVERVIEW healthcare providers’ efforts to reduce their carbon lawmakers and the executive branch about our SPOTLIGHT footprint through incentives to drive greener members and industry, and the issues that affect 01 choices. This includes responding to congressional IMPROVING our business. We accomplish this by meeting with Advocacy Extending Home-based Care Options for Underserved COMMUNITY inquiries to help lawmakers understand lawmakers and federal administration staff; HEALTH The FY2023 omnibus federal funding package adopted Premier’s recommendations to decarbonization efforts in healthcare and sharing activating our members to reach out to their extend the COVID-19 telehealth waivers and Hospital at Home program through 2024. how Premier, alongside our members, are lawmakers through our Government Affairs 02 advancing decarbonization and sustainability Network, which is composed of executives from our ETHICS AND efforts in the healthcare supply chain. COMPLIANCE member healthcare providers; and working through Thought Leader in Strengthening Supply Chain Integrity and Resiliency our Employee Political Action Committee (PAC). Our Advancing Health Equity and Premier shared with lawmakers the lessons learned from the COVID-19 pandemic, which 03 policy positions are developed and approved by a Social Determinants of Health (SDOH) OUR PEOPLE lead to the inclusion in the FY2023 omnibus federal funding package of many of Premier’s policy committee composed of leaders in our AND CULTURE Premier is advocating for federal policies to address recommendations around strengthening the Strategic National Stockpile, mitigating drug Government Affairs Network. Premier released an the underlying social and economic inequities, as and device shortages, maintaining supply chain integrity, and requiring medical device Advocacy Roadmap for the 118th Congress in well as systemic barriers and biases that drive 04 manufacturers to ensure cybersecurity of devices. January 2023 with a bipartisan, holistic approach to RESPONSIBLE disparities in care. To gain insights into health SUPPLY CHAIN optimizing the value of healthcare, building a disparities and effective methods of tackling them, resilient healthcare supply chain, tech-enabling Premier is advancing health equity via standardized Addressing Inequities in Blood Donation Rules 05 healthcare and eliminating gaps in healthcare. data collection and incorporation of SDOH in federal ENVIRONMENTAL Premier drew attention to the inequality that exists for the men who identifiy as LGBTQ+ STEWARDSHIP quality measurement programs. Premier is also OUR POLITICAL ADVOCACY EFFORTS and their eligibility to donate blood and advocated for action in this space. This led the U.S. working with Congress and the Biden Every day, we work to shape laws and regulations Food and Drug Administration (FDA) to revise blood donation rules to reverse policy administration to advance data-driven policies that 06 that reflect our commitment to improving the cost, discriminatin against LGBTQ+. The Red Cross, which provides 40% of blood donations in APPENDIX help solve poor outcomes and disparities in quality and safety of healthcare and advance our the U.S., subsequently adopted the updated FDA guidance that assesses blood donor maternal-infant care. Premier plans to leverage data mission of improving the health of communities. eligibility by using a risk-based assessment. and outcomes from the Department of Health and Below, we highlight a selection of notable advocacy Human Services (HHS) Perinatal Improvement initiatives over the past year. For more information, Collaborative, which has tapped into Premier’s please see the Advocacy section of our website. extensive data to understand why disparate The Government Affairs team reports directly to maternal outcomes occur, to inform Premier’s Premier’s Board of Directors every quarter on its advocacy strategy on maternal health. Finally, policy focus and progress. Premier has provided recommendations to Aligning Policies with Environmental Principles Congress on ways to remove barriers that keep We work to shape federal policies to better prepare people with disabilities from living up to their full hospitals and other providers for the impact of potential and contributing to their communities. climate change and propel efforts to reduce healthcare’s carbon footprint. To this end, Premier 20


Expanding Access to Medically Underserved and Reducing Risks in the Healthcare Supply Chain disbursed pursuant to internal contribution Vulnerable Populations From the beginning of the COVID-19 pandemic, guidelines and in accordance with all applicable Premier advocates for policy and regulatory Premier has been at the forefront of efforts to laws and regulations, including the election laws. solutions that support healthcare providers’ efforts address challenges and enable access to lifesaving The PAC is overseen by the Employee PAC 00 to advance innovative, effective home-based care healthcare supplies, intelligence and technology. OVERVIEW Advisory Committee, composed of a subset of options, unlocking the potential for reduced costs From this hands-on perspective, Premier has contributors to the PAC. We share information on and improved outcomes, such as those worked closely with Congress and the 01 all contributions made by the PAC with its highlighted below: administration to advance policies that create IMPROVING contributors biannually. The PAC only contributes COMMUNITY greater resiliency in the supply chain and to develop HEALTH · Permanently extending telehealth flexibilities, funds to federal lawmakers. It does not make a more robust national strategy to prepare for and including allowing for audio-only medical visits, any contributions to state policymakers or to respond to future national public health to expand access to underserved areas and organizations that are recognized under Section 02 emergencies. In 2023, Premier is leveraging the ETHICS AND populations. 527 of the U.S. federal tax code and registered reauthorization of the Pandemic and All-Hazards COMPLIANCE with the Federal Election Commission. Preparedness Act to continue to advocate for · Extending the Hospital at Home program, which additional policies to modernize the nation’s supply 03 has helped health systems provide better care, The PAC abides by all applicable laws and FY2023 POLITICAL-RELATED OUR PEOPLE chain data infrastructure and incentivize domestic reduce readmissions and lower costs. regulations and the federal lobbying disclosure SPENDING BY OUR PAC: AND CULTURE manufacturing, among other priorities. requirements. Premier’s previous Federal · Ensuring access to home infusion services for Election Commission and Form LD-2 lobbying Advancing Technology Adoption to Improve 04 vulnerable patients that are susceptible to activity disclosure reports may be found at the RESPONSIBLE Outcomes and Lower Costs $100,097 infection and other adverse clinical outcome. SUPPLY CHAIN following websites: Premier advocates for policies to advance Total Employee Contributions Alongside these efforts, Premier is advocating for technology that will enhance patient safety and • Federal Election Commission (FEC) 05 other policies that bridge the care gap and reduce quality improvement, facilitate secure and timely ENVIRONMENTAL Regular Lobbying Disclosures STEWARDSHIP disparities in outcomes for underserved communication and data exchange among communities and populations by: healthcare stakeholders, and produce actionable • Clerk of U.S. House of Representatives and reportable data. As an instance, Premier is LD-2 Lobbying Disclosure Reports 06 · Leveraging Premier data sources and analysis $46,500 APPENDIX advocating that Congress establish federal to support policymaking to improve access to Democrat – 48% and Republican – 52%. incentives that would allow long-term care and critical behavioral and mental health services. Total Political Contributions post-acute care providers to leverage technology to prevent and manage widespread infectious · Ensuring rural providers have the funding and diseases. Premier has championed legislation and flexibilities needed to continue providing submitted comments to CMS on advancing high-quality and sustainable care in their interoperability and improving prior authorization communities and can participate in value-based processes across CMS-regulated health programs. care models; and POLITICAL CONTRIBUTIONS · Preserving Medicaid Disproportionate Share SUCCESS Our political contributions are made through a Hospital (DSH) payments to help ensure voluntary, eligible employee-funded PAC, the patients have access to critical community SPOTLIGHT Premier, Inc., Employees’ Civic Action Fund (FEC ID: services. C00346288). The PAC’s mission is to raise funds to support federal lawmakers who share the vision, Leveraging Technology to Advance Patient Safety and Improved Outcomes values and commitment to improve healthcare CMS issued a rule that answered Premier’s call to implement electronic prior quality and safety and reduce costs. The PAC is authorization to help reduce the inefficiencies, burdens and care delays that the voluntary and bipartisan, contributing to both highly manual and time-consuming prior authorization process places on patients political parties. Contributions are received and 21 and providers.


IN THIS SECTION OUR “PEOPLE FIRST” PHILOSOPHY DIVERSITY, EQUITY, INCLUSION AND BELONGING 03 Our People & Culture Guided by our values, our employees work every day to make meaningful differences in healthcare. At the core of what we do is our most valuable resource — our people. H I G H LI G H TS + Implemented company-wide + Enhanced professional development + Offered over 9,000 online learning programming centered on growth, opportunities with Leadership modules with employee participation diversity, equity, inclusion and belonging Excellence at Premier (LEAP) Program. rate of 79%. in the workplace.


We also provide a variety of resources from our Employee Assistance Program to support the Our values – integrity, innovation, passion for performance mental health and emotional well-being of our and focus on people – guide our business decisions and the employees and their families that provide support for mental health, childcare, eldercare, legal 00 manner in which we make them and are what make our OVERVIEW assistance and financial wellness, with features solutions stand out. Without our employees' focus on our such as: 01 mission and willingness to serve, our ability to deliver value • Free therapy IMPROVING COMMUNITY would be vastly diminished. • Personalized care plans HEALTH • Dedicated support • Diverse providers 02 • Work-life services the company’s severance plan, offering benefits ETHICS AND OUR PEOPLE FIRST • Medication management COMPLIANCE that include salary continuation, coverage for the PHILOSOPHY employer's portion of health benefits premiums, 03 We aim to build a culture of high-performing leaders and access to outplacement services. ENGAGEMENT AND RETENTION OUR PEOPLE and teams with a People First mindset for evolving Our employees are our most critical asset. The AND CULTURE Premier uses a variety of objective evaluation our culture and organization, staying true to our success and growth of our business depends on methods, including external market surveys, values, and maintaining a high level of employee our ability to attract, reward, retain and develop 04 geographic cost of living and cost of labor engagement and retention. Our people strategy is diverse, talented and high-performing employees at RESPONSIBLE assessors, and external experts, to ensure that our SUPPLY CHAIN anchored upon three foundational goals: all levels of our organization and provide equal compensation programs are competitive, equitable access to opportunities. We are focused on • Attract the best people through effective and commercially reasonable. We provide pay 05 demonstrating strong practices aligned with our workforce planning and recruiting strategy. ENVIRONMENTAL ranges in our human resources system and on all ethical, respectful and accountable culture, resulting STEWARDSHIP • Maintain a high-performing workforce with job postings to further pay-equity efforts and in a positive employee experience. We believe that clearly defined goals, strong leadership and provide greater wage transparency to employees this goal is best supported by our emphasis on aligned incentives. 06 and applicants. We also engage third-party experts creating a thoughtful, inclusive culture where APPENDIX • Create a compelling work environment where to conduct pay-equity analyses to drive greater everyone can contribute and grow, increasing employees feel valued and able to contribute to insight into our total rewards strategy. well-being and mental health awareness and the success of the business through fostering support, and giving back to our communities. To innovation, collaboration and growth. HEALTH AND WELLNESS strengthen our culture of promoting appreciation, We offer a Choice Flexible Benefits Program that we provide an online rewards program, Values in provides an array of health, dental and vision COMPENSATION AND BENEFITS Action, to facilitate peer-to-peer recognition with a coverage, along with life and disability insurance, Our Total Rewards Program combines competitive note of thanks and award points that can be used flexible spending, and paid family leave offerings. compensation packages with health and wellness to purchase merchandise, gift cards or tickets, or We provide customizable benefits coverage, fitness resources, employee experiences, talent make charitable donations. and wellness programs, and healthy living development, and recognition opportunities. Our incentives, such as personal health assessments, Total Rewards philosophy and programs are preventive screenings, activity goals and wellness designed to attract and retain exceptional talent at incentive program. all levels of our organization. We strive to comply with all applicable laws and regulations, including equal-opportunity laws and regulations, and continuously review compensation levels to ensure fair and equal pay for all employees. If organizational restructuring is necessary such that 23 workforce adjustments must be made, we follow


00 OVERVIEW 01 IMPROVING COMMUNITY HEALTH 02 OUR PEOPLE FIRST To maintain a “People First” culture, we have taken TALENT DEVELOPMENT evaluation, check-in conversations and ETHICS AND ENGAGEMENT SURVEY steps to act on our 2022-2023 survey results in We provide an assortment of instructor-led courses COMPLIANCE acknowledgements. This practice ensures that Our continuous listening strategy is centered many ways, including the following: for job-specific training, as well as access to online every employee at Premier is intentionally working around our “People First” engagement survey, which learning platforms such as Workday Learning and 03 • Implemented programming that centers on to execute key work objectives and develop OUR PEOPLE has typically been conducted biannually by a LinkedIn Learning. Our online curriculum includes a growth, diversity, equity, inclusion and belonging competencies, skills and knowledge for ongoing AND CULTURE third-party employee engagement survey firm. It selection of over 9,000 internally developed and in the workplace, such as launching season two individual development and learning toward career allows employees to share their views LinkedIn Learning courses, grouped categorically of an all-employee podcast, growing participation aspirations and professional growth. We find that 04 anonymously, and for the company to listen and with topic areas such as leadership and in the Professional Women in Healthcare consistently more than 90% of employees and RESPONSIBLE learn from employees’ experiences. The survey management; productivity and time management; SUPPLY CHAIN program, and deploying mentorship and leaders complete this process quarter over quarter. provides us with valuable information about our project management; diversity, inclusion and networking opportunities across the company. workplace culture and employee morale, which may belonging; personal and business acumen; data Annually, talent planning has leaders think 05 • Launched Phase 3 of “One Premier Growth ENVIRONMENTAL be used to develop or refine our culture and to drive analytics; and growth-mindset behaviors. In strategically about existing talent and future STEWARDSHIP Mindset,” an initiative focused on enhancing our informed action planning at a local team level. We FY2023, 79% of our employees consumed business needs by systematically reviewing internal existing culture by adopting a blueprint of believe our strength is in our people, and we remain eLearning content on Workday. Additionally, tuition talent pipelines for potential, retention risk, agreements. In summer 2022, we introduced the 06 committed to making Premier a great place to work scholarships totaling nearly $173,486 were provided promotional readiness and alignment to living APPENDIX first two agreements, Self-Mastery” and “Real by aligning our People First culture to our strategic during FY2023 to 47 qualifying employees to aid in Premier’s values. Through the calibration process, Talk,” which encourage a growth mindset and priorities as an intentional, continuous improvement advancing their higher and continuing education. we intentionally inform meaningful self-mastery open and honest feedback between individuals strategic initiative. objectives, identify talent gaps and risks, and and within teams. Phase 3 addresses leveraging TALENT MANAGEMENT AND PLANNING develop retention strategies. In FY2023, employee engagement remained strong, these concepts to enhance and sustain an The success of our approach to talent management with increases in all major drivers of engagement. environment of “Multi-Level Trust.” is strengthened by our dedicated integration of Our employee engagement score was 80 as of Quarterly Check-Ins and diligent approach to talent • Hosted regular company-wide leadership spring 2023, above the global engagement planning. Through the practice of open and honest meetings and quarterly all-employee “Let’s benchmark of 75. We outperformed global “real talk” that aligns with the One Premier Growth Connect” meetings to drive connection and benchmarks in all benchmarked questions and Mindset, these cornerstone practices work together communication with executive leadership. continue to see incremental improvements in areas to align individual skills and strengths to Premier’s • Completed our first cohort of the Leadership previously seen as relative opportunities. Two areas mission, vision and strategic objectives. Excellence at Premier Program, delivering a historically seen as relative opportunities are the leadership development opportunity to select Premier’s Quarterly Check-In practice provides growth category, which outperformed the participants. leaders the platform to coach talent on how they benchmark by six points and an item relating to performed in their role as compared to job diversity, equity, inclusion and belonging in the • Expanded discussion, education and connection responsibilities, team and department goals, and workplace, that outperformed the global benchmark regarding employee networking through ERGs. what is expected of them in the future. The process by ten points. consists of an employee self-evaluation, manager 24


LEADERSHIP DEVELOPMENT Supporting Our Premier Leaders Mentoring All employees who become managers for the first Our mentoring program supports our learning time are invited to join a new manager program culture, provides career path guidance, and designed to orient those new to our management 00 encourages personal growth and development philosophies, requirements and resources, and OVERVIEW across the enterprise. In FY2023, we had 52 provide support in transition to this increased mentorship pairs to facilitate opportunities for responsibility. In addition, in FY2022, we introduced 01 on-the-job growth, new connections, visibility and the Leadership Excellence at Premier (LEAP) IMPROVING COMMUNITY personal success. Approximately 25% of these Program and in FY2023, we delivered this HEALTH mentors and mentees found new opportunities at leadership development opportunity to 27 high- Premier, and all program participants were either potential leaders. Designed to leverage a 02 satisfied or very satisfied with their mentor or comprehensive needs analysis, this program ETHICS AND mentee pair and the overall program experience. encourages bold thinking, develops leadership skills COMPLIANCE and builds a cross-functional network. LEAP offers Internships virtual classroom learning through external training 03 In support of early career talent, Premier annually OUR PEOPLE providers, networking with program alumni, AND CULTURE sponsors a summer internship program for cross-collaborative cohort meetings to enrich students from undergraduate to post-graduate learning, and a real-world project where individuals programs across the country to contribute to 04 can apply their knowledge and newly gained skills RESPONSIBLE meaningful projects over a 12-week period. Each toward strategic business initiatives in the SUPPLY CHAIN student is paired with a supervisor and mentor to organization. guide their professional development along with 05 access to ongoing education sessions and We also offer more broad-based leadership training ENVIRONMENTAL STEWARDSHIP community and social events to learn more about through our monthly Leading at Premier webinar Premier, the healthcare industry and the impact on series. Approximately 25% of our leaders communities we serve. Furthering our commitment participated in this training during FY2023. 06 APPENDIX to diversifying our workforce, of the 2023 summer INTERNAL PROMOTIONS intern class, over 40% of our interns were of We believe our internal development initiatives are ethnically diverse backgrounds and over 60% were integral in bolstering career path opportunities and female, thus supplementing our diverse talent pool advancements for employees. We promoted 366 of qualified candidates. Once the program was employees during FY2023, representing completed, 96% were recommended for hire. approximately 13% of our total employees. 25


DIVERSITY, EQUITY, EMPLOYEE DIVERSITY METRICS • Engaging our ERG members and recruiting more • For the third straight year, our strategy to develop Our vision is to maintain a workforce that than 100 “employee ambassadors” to create a a diverse applicant pool for our intern program INCLUSION AND represents the populations we serve. All our talent outreach team that engages colleges and has yielded representation of over 40% people of BELONGING employees are located within the U.S., and 56 universities. color and is over 60% female. We believe that solving complex challenges requires 00 employees qualified as foreign nationals as of June OVERVIEW a greater diversity of thought, cross-cultural 30, 2023. We assess workforce diversity as part of representation and engagement. We know that a broader effort to identify areas of continuous 01 diverse perspectives, experiences and backgrounds EMPLOYEE DIVERSITY METRICS As of June 30, 2023 improvement to ensure that we are building and IMPROVING are powerful ways to unlock new ideas and better COMMUNITY retaining a diverse workforce while also leveraging HEALTH understand the needs of others. the importance of different knowledge areas and perspectives to drive innovation, productivity and OUR DEIB STRATEGY TOTAL EMPLOYEES MANAGER-LEVEL AND ABOVE 02 excellence. We also analyze this data to determine The positive impact of our Diversity, Equity, Inclusion ETHICS AND Employee Gender Representation Employee Gender Representation how best to attract and develop a pipeline of diverse COMPLIANCE and Belonging (DEIB) approach is far-reaching, not and qualified candidates and promote an inclusive, only within our company, but also for the anti-discriminatory environment of belonging that 03 communities and members we serve. Our Chief OUR PEOPLE ensures equal access to opportunities. Diversity and Inclusion Officer leads our DEIB AND CULTURE strategy and reports to our CEO with oversight by RECRUITING DIVERSE TALENT our Compensation Committee and Board. Our Once again, in FY2023, we have been successful in 04 Council on Diversity, Equity, Inclusion and Belonging RESPONSIBLE fostering gender parity between our total workforce SUPPLY CHAIN is composed of Premier’s Executive Leadership representation and management-level Female - 56% Female - 51% Team, organizational vice presidents and Employee representation. We continue to make efforts to Male - 44% Male - 49% 05 Resource Group Co-Chairs and is the governing identify opportunities to drive even more parity in ENVIRONMENTAL committee that defines, drives and supports our five STEWARDSHIP our representation of employees from diverse strategic DEIB pillars. These strategic pillars act as backgrounds across the organization. As such, we the key performance indicators of our DEIB strategy have enhanced our approaches by addressing 06 and are designed to nurture and promote an APPENDIX Race and Ethnicity Representation Race and Ethnicity Representation recruitment sources and development programs, as environment for high-performing teams to improve well as engaging hiring managers in understanding and thrive while delivering extraordinary solutions to the need to grow diverse pools of available and improve healthcare to our members, partners and qualified talent by creating targeted initiatives and community at large. investing in tools to engage employees from all backgrounds. Improvements to our activities Prioritizing Diverse Leadership Composition include: We recognize and value the benefits that diversity can bring to our Board, and our Corporate • Engaging with colleges, universities and White - 81% White - 70.8% Governance Guidelines include a formal Board professional affinity organizations with a higher Diversity Policy. The Board believes that diversity population of diverse representation. Asian - 11% Asian - 7.6% promotes the sharing of different perspectives, • Utilizing data to identify school, industry and Black or African American - 10.8% Black or African American - 6% mitigates against group thinking and improves geographic statistics for the highest numbers Hispanic of Latino - 4.2% Hispanic of Latino - 3.7% oversight, decision-making and governance. of qualified diverse talent by providing real-time Other* - 3.2% Other* - 1.7% Diversity on the Board also demonstrates our population data. commitment to diversity at all levels within our company. To learn more, please see our * Includes full-time employees who self-identify as Native Hawaiian, Pacific Islander, American Indian, Alaskan Native, or two or more races. 2023 Proxy Statement. 26


EMPLOYEE RESOURCE GROUPS Demonstrating our focus on nurturing a culture of DEIB initiatives showed improvement over last year, • Premier also has a Corporate Emergency We support ERGs as a vital part of our culture, diversity, equity, inclusion and belonging, every with the “Inclusion” measure coming in at ten points Response Team (CERT) responsible for helping us build an environment of diversity, equity, member of our executive team acts as a sponsor above the benchmark and “Belonging” coming in at coordination and management of emergency inclusion and belonging and a sense of company for one or more ERGs, leads the strategic pillars of three points above the benchmark. situations, such as disruptive weather events, 00 pride. These groups provide opportunities to listen, DEIB, and sits on the Leadership Committee of the safety incidents, building disruption, public OVERVIEW EMPLOYEE HEALTH AND SAFETY learn, mentor, grow and assist leadership with the DEIB Council. In FY2023, our ERGs held over 25 health concerns, and technology and Premier is proud of its commitment to employee cultural development of the organization and workshops, lectures, fireside chats, lunch and communication issues. Together with the 01 health and safety. We take a multi-pronged provide critical feedback on their workplace learns, and other events to further educate, relate, Premier Continuity Management Team, CERT IMPROVING approach to safety programs in the workplace to COMMUNITY experiences and passion around community interact and network with one another to form helps ensure a return to business as usual as HEALTH provide a healthy work environment for all development. Our ERGs act as the employee voice bonds and build a culture of understanding that soon as possible. employees, as highlighted below. in helping leadership define the employee helps us to provide a high-performing workplace • Our Emergency Response Program provides 02 experience and leverage their knowledge for and truly embody a culture of belonging. • Premier maintains health and safety policies that ETHICS AND guidance in the event of situations that may broader organizational success. COMPLIANCE cover all aspects of the work environment, from Our ERGs aim to bring their spirit of inclusion and impact employee safety or normal business day-to-day office expectations to disease Our ERGs provide a way to channel information that belonging to transform our communities through operations. We leverage the Emergency 03 preparedness and natural disaster response. enhances our employees’ ability to network with both volunteering and charitable donations. Each Response Program to provide all-staff alerts OUR PEOPLE These policies and plans are communicated and AND CULTURE peers of similar interest, and fosters a sense of ERG is allocated funds each year to support group and engage in regular testing and training to made available to employees, which include: belonging throughout the company, even while events and charities. For example, for the third year make sure our workforce is familiar with many of us are working from home. We have eight in a row, our Senior Vice President of Supply Chain Premier’s process in the event of an 04 • Workplace Safety RESPONSIBLE ERGs with more than 275 employee representatives sponsored an event for the Wounded Warrior emergency. SUPPLY CHAIN ® (10% of our employee population, our Executive Project (WWP), leading Premier's Military Veterans • Emergency Response Program • Premier maintained a robust and flexible Leadership Team and Vice Presidents as co- and Allies ERG to being named by WWP as their 05 • Worker's Compensation Policy response to the COVID-19 pandemic over the sponsors) that operate together across business top-contributing team in CY2022. Please see Our ENVIRONMENTAL last several years and will carry important STEWARDSHIP units and locations around the country: Social Responsibility Program section of this report • Drug and Alcohol Policy learnings forward to continue to provide a for more information on our ERGs’ contributions to • AAPI Employees & Allies healthy workplace for an evolving world. We improving community health. • Workplace Violence Policy 06 • Black Professionals & Allies Connect remain flexible and prepared to address APPENDIX • Disabled Employees & Allies Lastly, one of the most critical metrics in our DEIB • Internal Infectious Disease Preparedness Plan unforeseen health events as they may arise in • Latin Employees & Allies strategy is employee engagement, which is the future. • LGBTQ+ Employees & Allies • Premier has staff that visit and work with our measured twice per year through our employee • Member Field Services Advisory Council on healthcare members. Any staff that performs engagement survey. This year, not only did our Diversity & Inclusion work on a member site are also subject to employees tell us that eight out of ten employees • Military Veteran Employees & Allies member safety protocols. are engaged in our culture, but specific measures in • W.O.M.E.N. & Allies the survey designed to gauge the success of our Our Five Strategic DEIB Pillars LEADERSHIP PEOPLE AND COMMUNITY SUPPLIER PARTNERS AND AND CULTURE WORKPLACE HEALTH DIVERSITY MEMBERS Build a culture of high-performing leaders and Build a diverse workforce by identifying, Design and implement coordinated Evolve strategies to continue the focus on Create a Chief Diversity and Inclusion teams with a mindset for evolving our culture and attracting and retaining a pipeline of diverse and community development initiatives in socioeconomic development and growth of Collaborative with member hospital maintaining a high level of employee engagement qualified candidates through targeted outreach, partnership with employees, health system communities through minority- and women-owned chief diversity and inclusion officers to share and retention and organizational growth. recruitment, employee development and members and life sciences partners to business enterprises (MWBE+). Use mass and volume best practices and discuss the future of DEIB selection in an anti-discriminatory environment address the drivers of health that achieve of these programs to drive better healthcare outcomes, in healthcare. that ensures equal access to opportunities. health equity. strengthen local economies, and develop a more robust 27 supplier-diversity ecosystem for the healthcare industry.


IN THIS SECTION SUPPLY CHAIN SUPPLIER ETHICAL PRODUCT QUALITY SUPPLY CHAIN SUPPLIER SUPPLIER CHAIN RESILIENCY SERVICES STANDARDS AND SAFETY ENVIRONMENTAL SUSTAINABILITY DIVERSITY AND DISASTER RESPONSE 04 Responsible Supply Chain We believe we play a critical role in the rapidly evolving healthcare industry, collaborating with members and other customers to co-develop long-term innovative solutions that reinvent and improve the way care is delivered to patients nationwide. H I G H LI G H TS + Assisted our members to transact over + Advanced collaboration with suppliers to + Monitored quality, safety and value + Pioneered the development of supplier $1 billion with diverse suppliers through ensure that environmental sustainability standards of supplier products and contracting standards for assessing Premier’s group purchasing program. information is made available before services with ongoing advice and and promoting the cybersecurity of purchasing decisions are made. oversight from 29 strategic sourcing internet-connected medical devices committees representing more than and equipment. 150 of U.S. hospital members.


Our supply chain approach is designed to provide our members with valuable access to scale efficiencies, actionable data intelligence and information resources to help them 00 deliver higher-quality and more cost-effective healthcare. We OVERVIEW believe that our partners throughout the supply chain rely on 01 our integrity, expertise and professionalism. Our suppliers IMPROVING COMMUNITY count on us to maintain competitive bidding processes that are HEALTH fair, timely and understandable. 02 ETHICS AND COMPLIANCE 03 OUR PEOPLE SUPPLY CHAIN SERVICES GROUP PURCHASING GPO Supplier Selection Process We partner with a third-party provider for ongoing AND CULTURE Our Supply Chain Services business supports our ORGANIZATION PROGRAM Sourcing Committees supplier and site assessment and monitoring of a members in managing their non-labor expenses On behalf of our members, we negotiate over 3,300 We facilitate service line-specific sourcing broad range of environmental and social issues, 04 and capital spend through a combination of contracts with more than 1,400 suppliers through committees to determine which suppliers are including identifying chemical spills; environmental RESPONSIBLE products, services and technologies. These include our GPO program, providing our members with awarded group purchasing contracts. More than hazards; regulatory changes; labor disruptions or SUPPLY CHAIN our GPO serving acute, non-acute and non- access to a wide range of products and services, 450 individuals — collectively representing more violations; fines; legal and regulatory actions; and healthcare, supply chain co-management, and including medical and surgical products, than 150 of our U.S. hospital members — sit on one actions under the FDA, European Medicines 05 ENVIRONMENTAL direct sourcing activities. pharmaceuticals, laboratory supplies, capital of our 29 strategic sourcing committees. These Agency, or Occupational Safety and Health Act STEWARDSHIP equipment, IT, facilities and construction, food and committees advise on ways to improve the (OSHA). We also incorporate risk scoring into our Supply Chain Services leverages the collective nutritional products, and purchased services (such development, quality and value of our products and supply chain management processes to analyze buying power of our members that represent many 06 as clinical engineering and document shredding services. trends, identify risky suppliers or parts, and APPENDIX of the country’s most progressive and forward- services). Total purchasing volume by all GPO mitigate risks where possible. thinking healthcare organizations. The participation Clinical Councils and Selection Criteria members was more than $83 billion for CY2022. of these healthcare providers gives us additional Our supplier selection criteria vary by category and For more information on our supplier selection insights into industry challenges and innovative Through our GPO programs, we aggregate member are created by our internal Clinical Councils with criteria, please visit the Suppliers page on our best practices that we can share broadly. purchasing power to negotiate pricing discounts member subject-matter expertise on the product website. and improve contract terms with suppliers. We do category being reviewed. Our Clinical Councils are Premier is committed to contracting with suppliers DIRECT SOURCING not take title to the underlying equipment or composed of multidisciplinary members with that demonstrate manufacturing resiliency, We offer our members the opportunity to purchase products purchased by members through our GPO backgrounds, including pharmacy, laboratory, redundancy and quality investments while also products that are directly sourced in the healthcare supplier contracts. nursing, surgical and cardiovascular areas. Clinical adhering to our labor law policies. Therefore, our space through our subsidiary, S2S Global (S2S), Councils establish the core evaluation framework contract portfolio includes suppliers that Our contracting process is guided by what we primarily for commodity items such as patient that best accounts for safety regulations, clinical manufacture in varied locations outside of China, believe is the industry’s most comprehensive GPO gowns, exam gloves, lab coats, masks and trials, product reviews and applicable certifications including in the United States, elsewhere in North Code, which supports healthy competition while incontinence products, among others. We believe related to key assessment factors such as: America, South America, Europe, Africa and other supporting the development of new and innovative that our direct sourcing activities help our parts of Asia. products. Our sourcing process ensures that members and other customers access a diverse + Quality + Safety + Clinical impact + Cost factors beyond price are given serious and product portfolio and provide transparency related effectiveness + Physician preference + appropriate consideration. Clinical efficacy and to manufacturing costs and competitive pricing. Environmental impact + Diversity + Breakthrough improved patient care are especially important to We market our direct sourcing activities primarily potential + Member input ® us and to our members. under the PremierPro brand. 29


SUPPLIER ETHICAL the independent verification process, third-party In addition to our vendor grievance process, a auditors examine our end-to-end security practices, vendor may request further review of any Premier's Supplier Standards STANDARDS including data centers, infrastructure and outstanding concerns through the Healthcare Integrity forms the basis of our successful operations, at a regular cadence. Group Purchasing Industry Initiative (HGPII) business operations and underpins all our 00 Independent Evaluation Process, facilitated by the business relationships. All suppliers are expected OVERVIEW S2S GLOBAL COMPLIANCE ® American Arbitration Association (AAA). For to uphold our high standards and comply with our Given the global footprint of our contract CY2022, there were no grievances filed by suppliers. obligations as outlined in our Supplier Standards, 01 manufacturing suppliers, our corporate social For more information, please see our Vendor IMPROVING including responsible business practices related responsibility practices at S2S are paramount. S2S COMMUNITY Grievance Policy. to human rights and antibribery and anti- HEALTH has adopted strong anti-bribery and anti-corruption corruption standards. standards, and seeks to identify and mitigate the occurrence of forced labor and human trafficking in 02 GPO AND MEMBER COMMITTEE ETHICS AND our supply chain through training. In CY2022, 100% COMPLIANCE COMPLIANCE of S2S employees and other personnel who work In providing our group purchasing services, we with S2S completed this education. As part of our serve the interests of our member hospitals and 03 overall Social Compliance Program, every OUR PEOPLE health systems and, through them, the patients AND CULTURE contracted supplier in our S2S direct sourcing and communities they serve. Foremost among business is required to participate in our S2S Social those interests are good clinical outcomes for Compliance Program to ensure they conduct 04 patients and cost effectiveness in care processes RESPONSIBLE themselves in an ethical and socially responsible and resource utilization of supplies, SUPPLY CHAIN manner. They are required to undergo an initial pharmaceuticals and equipment. We seek to act on-site audit conducted by a third-party auditing ethically, accountably and fairly with respect to all 05 firm during the on-boarding process. The audit ENVIRONMENTAL participants in the healthcare marketplace. Each STEWARDSHIP covers labor, wage, health and safety, trafficking, GPO member is bound by the terms outlined in and other social compliance metrics. An our GPO Code. During CY2022, 100% of our GPO unannounced follow-up visit is made to ascertain 06 Member Committee participants completed their APPENDIX progress. Results and corrective actions are then annual conflict of interest attestations. For more shared annually with Premier’s ACC and BOD. information, please see our Member Committee Conflict of Interest Policy. An ongoing internal evaluation of potential risks is monitored by our Legal and Corporate Compliance COMPLIANCE AND AUDITS departments. Our anonymous third-party reporting Premier is committed to providing safe products portal, Premier’s WorkSmart Integrity HelpLine, is and services that meet compliance and reporting available to anyone to report unethical behavior, needs. We have integrated a centralized risk misconduct and/or suspected illegal activity. management and compliance cloud-based platform within our vendor management system VENDOR GRIEVANCE PROCESS to ensure vendor compliance with all applicable We take vendor grievances seriously and offer laws and regulations. Premier’s security, third- several ways to resolve possible issues. We have party audits and certifications, documentation, our own vendor grievance process to ensure a and legal and regulatory commitments help vendor’s ability to access our contracting staff and support customer compliance teams to regularly leadership for concerns relating to the contracting undergo independent verification of their security, award process. Concerns, grievances and privacy and compliance controls, achieving complaints are reviewed by the Vendor Grievance certifications, attestations of compliance or audit Review Panel. reports against stringent standards. As a part of 30


PRODUCT QUALITY Contracted suppliers are expected to comply with offerings provided to members. It also provides If a healthcare provider has a question or concern all FDA requirements for actions to be taken customer training and counseling for all product about a pharmaceutical product they purchased AND SAFETY related to products (medical devices, drugs, offerings to members. from the manufacturer or wholesaler/distributor We act as a trusted connection point for healthcare biologic products, etc.) that are found to be and that concern is shared with us, we put that providers, suppliers and the government by seeking COUNTERFEIT DRUGS AND 00 defective, could pose a risk to health or are in provider in touch with the appropriate individuals to promote access to safe, high-quality products OVERVIEW TRACEABILITY violation of FDA regulations. This includes to discuss the concern and action that needs to throughout our supply chain. Our portfolio of pharmacy contracts covers notification to the FDA as well as collaboration be taken. 01 hundreds of suppliers and distributors that provide Premier’s Risk and Compliance organization has with our GPO and subject-matter experts to notify IMPROVING thousands of products to our GPO that are In addition, we monitor a variety of FDA and other COMMUNITY incorporated baseline control expectations in our members, provide support and advice regarding HEALTH authorized to do business with our suppliers. industry sources for notification of any group purchasing contracts that suppliers must safety incidents or recalls, and conduct follow-up Distributors engaged in known gray-market activity pharmaceutical recalls. This allows us to formally attest to in writing as conditions of sale/ checks to assure successful resolutions. (e.g., selling Premier private-label products when understand the nature of the recall, if it is a 02 usage. Sourcing with such diligence and care ETHICS AND S2S QUALITY ASSURANCE AND they are not under contract with Premier) or price product and/or manufacturer with which we are promotes the quality and security of the digital COMPLIANCE TRACEABILITY IN DIRECT SOURCING gouging on shortage-impacted drugs will not be under contract, and if there is a need to take products and services within our group The Quality Assurance program for our S2S direct awarded a contract with us. action. purchasing catalog. 03 sourcing option incorporates industry best OUR PEOPLE Through our pharmacy program, we contract with Our members are provided alerts regarding AND CULTURE GPO QUALITY AND SAFETY ASSURANCE practices to deliver high-quality products, manufacturers of both commercially manufactured shortages, recalls and other safety incidents Our GPO operational contracting analysis is designed traceability and tangible savings. S2S’s internal pharmaceuticals and 503B-manufactured (i.e., through a weekly pharmacy newsletter. Time- to ensure that products provided by GPO suppliers are Quality Assurance team, along with the Quality 04 outsourced drug compounding facility) sensitive updates on pharmaceuticals are RESPONSIBLE FDA-approved as required and perform as intended in Inspection team from our overseas exclusive SUPPLY CHAIN pharmaceuticals. These manufacturers either provided to members through email. a safe and effective manner. Several resources are sourcing agent, conduct both supplier and product deliver their products directly to the healthcare used to gather information about products, including validation throughout the manufacturing process. 05 provider or ship through authorized wholesalers and randomized controlled trials published in peer- Members conduct product validation and pre- ENVIRONMENTAL distributors who abide by Drug Supply Chain STEWARDSHIP reviewed professional journals, case studies, market production evaluation via our S2S Clinical Security Act (DSCSA) regulations for tracking and guides or product comparisons, field trials, clinical Committee. Member feedback also drives product tracing the ownership and delivery of staff surveys, quality monitors, customer satisfaction improvements throughout the contract cycle. 06 pharmaceuticals. Upon receipt, the provider of a APPENDIX data, and financial data. In addition, our GPO may Supplier validation includes third-party auditing pharmaceutical product can track its movement evaluate product-related information involving patient covering manufacturing specifications and facility throughout the supply chain. Our members and and worker safety as well as environmental issues. capabilities (e.g., ISO 9001, ISO 13485, GMP, etc.). contracted distributors abide by DSCSA rules and Our GPO does not independently test any products. Products are inspected during production through regulations. We offer supplier contracts for RECALL POLICIES AND PROCEDURES random sampling prior to shipment, and via members with DSCSA track-and-trace technology Our quality and safety assurance begins with the inbound and random distribution center solutions to assist our members in assuring the initial supplier bid submission. During the kickoff inspections to monitor product quality and integrity of the drug supply chain. stage of our supplier selection process, we require consistency over time. We contract with distributors that purchase that each supplier disclose information related to During FY2023, S2S has developed and deployed pharmaceuticals for our GPO members directly product category regulations, including FDA internal product portfolio training for all S2S from the manufacturer, thus minimizing the chance inspection and clearance status. Additionally, each employees as it relates to product quality and for diversion or counterfeiting. In addition, with supplier must provide its recall policies and product safety. Traceability capabilities are respect to 503B suppliers that are under contract procedures, including management of recall facilitated throughout the supply chain fulfilment with Premier and supply drug-shortage products to notifications, customer engagement, order process by utilizing identifiers on packaging (both our members, we have a process whereby we audit substitution and expectations regarding turnaround- inner and outer), such as printed lot numbers, date each supplier over the course of the life of the time thresholds. This information is reviewed by our of manufacture and unique device identifiers. S2S contract. service line-specific sourcing committees and offers safety data sheets for some of the product clinical committees. 31


process and offering a database with environmental SUPPLY CHAIN Recent updates to our supplier questionnaires take a holistic approach to optimize delivery and human health impact data integrated at the include questions specifically addressing suppliers’ efficiencies between our members and suppliers. ENVIRONMENTAL product level. We support members pursuing the Scope 1 and Scope 2 emissions. These include SUSTAINABILITY SUPPORTING elimination of chemicals of concern from certain whether suppliers are measuring their emissions We are committed to supplying our members with SUSTAINABILITY INITIATIVES product categories in accordance with industry 00 and reporting them publicly, if they have been OVERVIEW products that support the health of their patients, Recognizing that the challenge of improving guidelines established by Practice Greenhealth and independently verified, and what their emission staff and communities. As part of this commitment, healthcare’s environmental footprint can only be HAN. Other member programs we help support reduction plans are. 01 our Sourcing Committees include data on solved by close cooperation, we foster ties with all include: IMPROVING environmental impact in their contracting decisions. Contracted products with environmental attributes relevant parties. Premier is a Premier Affiliate COMMUNITY • Reducing waste through reprocessing. HEALTH Enabled by our data-driven approach, forward- are highlighted in our product catalog for use by our Partner of Practice Greenhealth, the foremost NGO • Using products with recyclable packaging and thinking supply chain teams are driving continued member health systems as part of our work to operating in the healthcare sustainability space. We content. green innovations in healthcare that cut costs over integrate critical environmental impact data for have also collaborated closely with Healthcare 02 • Decreasing greenhouse gas (GHG) emissions. ETHICS AND the long term, reduce environmental impact and medical and non-medical products into the Anchor Network (HAN), providing feedback on how • Lowering energy usage through the purchase of COMPLIANCE minimize negative consequences on public health. purchasing process for hospitals, health systems GPOs can support HAN’s dual objectives of energy-efficient electronics. and other provider organizations. For example, the supporting local economies and furthering 03 ENVIRONMENTAL consideration of Premier’s environmental data environmental justice. Through these efforts, we are OUR PEOPLE Combining member purchasing data within our ASSESSMENT PROCESS AND CULTURE within supplier decision-making helps our hospital working to address the healthcare sector’s role in GPO supply chain with our EPP supplier information We work with suppliers to ensure that members to better integrate eco-friendly products climate change. helps our members to track and monitor environmental sustainability information is made and sustainable practices within targeted 04 compliance with their environmental objectives and available before purchasing decisions are made. We We also work with member health systems to RESPONSIBLE healthcare areas to make positive impacts, such as sustainability goals. SUPPLY CHAIN request extensive information from our suppliers on advance their own sustainability initiatives in a in operating rooms. While operating rooms generate environmentally preferable policies and practices, cost-effective and efficient way. This includes approximately 60% of a hospital’s revenues, they 05 and are guided by our Environmentally Preferred utilizing environmental analytics in the contracting also produce approximately one-third of a hospital's ENVIRONMENTAL Purchasing (EPP) Advisory Council. The EPP STEWARDSHIP waste and two-thirds of its regulated medical Advisory Council is composed of sustainability, waste, and can consume three to six times more supply chain and facilities specialists from a energy per square foot than anywhere else within 06 cross-section of member health systems. It reviews APPENDIX 7 the hospital . and advises on upcoming contracts from a sustainability perspective. The EPP Advisory TRANSPORTATION AND LOGISTICS Council also acts as a forum for members to We provide our GPO members with direct sourcing discuss best practices to promote sustainability in options through our subsidiary, S2S. While most of healthcare, solve common challenges and drive these direct-sourced items are produced by continuous improvement. suppliers in Southeast Asia, we have implemented and will continue to explore opportunities to create Our sourcing process includes questions about the a more resilient healthcare supply chain by existence of chemicals of concern, recyclable or partnering with healthcare providers and suppliers recycled packaging, and non-latex, non-DEHP/PV to increase domestic and near-shore production of 6 products . Premier is also a signatory of the personal protective equipment (PPE) and other Chemical Footprint Project (CFP), which provides critical supplies. In FY2023, S2S has on-shored an independent assessment solution to help track production of nitrile exam gloves, AAMI level 2 and encourage the use of safer chemicals. As a isolation gowns and incontinence pads. CFP signatory, and through the support of our individual members, we help accelerate the We rely on third-party transportation providers who adoption of safer and environmentally sustainable use fuel and energy on our behalf to transport our chemicals by industry suppliers. directly sourced goods via various modes of 32 transportation, including air, ocean and road. We


SUPPLIER We believe the increased use of our Supplier • Partnered with our members to invest in Prestige DISASTER RESPONSE Diversity Program will help drive better healthcare Ameritech, a domestic manufacturer of masks COMMUNITY TEAM DIVERSITY outcomes, strengthen local economies and develop and other PPE, for a direct source of critical Our dedicated Disaster Response Community As an organization built on the foundation of a more robust supplier-diversity ecosystem for the supplies. Team ensures business continuity for our transforming healthcare within communities across 00 healthcare industry. To further support and expand • Created a joint venture, DePre, LLC, with our members during a hurricane, fire, tornado or other the country, we recognize that supplier diversity is OVERVIEW our Supplier Diversity Program, Premier is a members and DeRoyal Industries, Inc., a global emergency. We serve as an extra set of hands and an important component of our members’ success. corporate member of the following advocacy medical manufacturer dedicated to the domestic legs operating as conduits for information and We believe that minority- and women-owned 01 organizations: production of isolation gowns. preparedness. Our team constantly monitors all IMPROVING business enterprises (MBE and WBE, collectively COMMUNITY • Collaborated with Honeywell to expand U.S. areas of the U.S. for earthquakes, wildfires, referred to as “diverse” or M/WBE) and small • National Minority Supplier Development Council HEALTH production of nitrile exam gloves. hurricanes and other disruptive events that could business enterprises (SBE) help our hospitals • Women’s Business Enterprise National Council • Partnered with leading health systems to invest potentially affect our members, suppliers or create jobs and improve life in the communities • Healthcare Supplier Diversity Alliance 02 ® in Exela Pharma Sciences, LLC, to support employees. they serve. • Healthcare Group Purchasing Industry Initiative ETHICS AND U.S.-based drug supply and manufacturing. COMPLIANCE • Premier’s GPO portfolio includes contracts with The global supply chain continues to experience • Created a joint venture, Princo LLC, with our over 250 diverse and SBE suppliers, accounting THE SEEDS PROGRAM unprecedented disruptions, which are affecting members and Premium PPE, to engage in the 03 8 for 12% of our total contract portfolio . Within the framework of Premier’s Supplier Diversity multiple economies and industries, including the OUR PEOPLE domestic production of incontinence pads. AND CULTURE • In CY2022, our GPO members spent over $1 Program, our Sourcing Education and Enrichment U.S. healthcare industry. The rising costs of energy, billion with diverse and SBE suppliers, or 1.9% of for Diverse and Small Suppliers (SEEDS) program transportation, food and labor, and the Russia- We also partner with health systems to find better the total spend, reflecting a decrease from aims to increase the number of small, diverse and Ukraine war present additional challenges. Within 04 ways to deliver critical drugs that pharmacists and RESPONSIBLE CY2021, largely due to headwinds associated regional enterprises doing business with members this dynamic environment, Premier continues to clinicians need to serve their patients. Guided by SUPPLY CHAIN with lower demand for PPE products and of our healthcare alliance. It lends support to provide our members with the information, tools, our member health systems, including our National declining patient utilization trends. diverse and small business enterprises, including and support needed to tackle cost imperatives and Pharmacy Committee, we are bringing an increased 05 • Premier’s FY2023 annual incentive plan includes coaching, mentoring, business educational tools, provide vital supplies to care for patients. ENVIRONMENTAL supply of generic drugs back to market to fill STEWARDSHIP a strategic goal focused on increasing member and a stair-stepped approach to help them develop hospitals’ acute needs and help alleviate certain spend through diverse suppliers in our GPO and grow strategic long-term relationships. drug shortages. Through our national drug contract portfolio. 06 initiatives, we have helped supply members with APPENDIX SUPPLIER RESILIENCY nearly 150 shortage drugs. Specifically, we created ® SUPPLIER DIVERSITY PROGRAM ProvideGx to invest in innovative new business AND DISASTER We appreciate the challenges that diverse suppliers models and partnerships to address drug RESPONSE have with reach and access to market opportunities shortages, including partnering with high-quality We have a program in place designed to promote for their healthcare-related products and services. generic drug manufacturers that can supply geographically diverse manufacturing and ensure a Our Supplier Diversity Program was created to shortage products, co-funding the development of robust and resilient supply chain for essential provide an opportunity for these businesses to affordable products that address specific market medical products. Its aim is to help members invest partner with us, and has been prioritized as a needs, and securing contracts and strategic in businesses that can supply shortage products, strategic pillar of our DEIB strategy. The program is sourcing agreements for active pharmaceutical co-fund the development of affordable products constantly expanding to include additional diverse ingredients to ensure a continuous supply, as well that address specific market needs, and create suppliers such as veteran-owned businesses (VET), as strategic sourcing agreements. strategic sourcing contracts to ensure continuous service-disabled veteran-owned businesses supply. We partnered with members to successfully (SDVOB) and LGBTQ+-owned businesses. We advance initiatives that promoted supply chain continue to evolve our strategies so that our efforts resiliency, such as: can also help to provide focus to socioeconomic development and growth of communities served by our healthcare members. 33


IN THIS SECTION ADDRESSING CLIMATE CHANGE FACILITIES MANAGEMENT 05 Environmental Stewardship A healthy planet means healthy people. We strive to reduce our environmental impact and help our members integrate environmentally friendly practices into their own operations. H I G H LI G H TS + Continued to baseline our greenhouse + Began aligning with the recommendations + Continued to improve the data collection + Continued to offer the option to work gas (GHG) emissions, calculating our of the Task Force on Climate-related from our property managers to enhance remotely or in a hybrid capacity, which Scope 1 and Scope 2 emissions for Financial Disclosures (TCFD). our GHG assessments and better gives our staff flexibility, lowers our energy FY2022. understand the impact of electricity demands, and ultimately, decreases our and gas consumption at our facilities. Scope 1 and 2 footprint.


9 As part of our efforts to improve the health of our nation’s U.S. EMISSIONS (IN MTCO E ) 2 communities, we pursue our mission as prudent stewards of the EMISIONS CATEGORY FY2020 FY2021 FY2022 environment. We strive to identify products Scope 1 Emissions 425 438 331 00 10 and services that not only help our members protect the Location-based Scope 2 Emissions 2,052 2,013 1,576 OVERVIEW 11 environment but also seek to integrate evironmentally friendly Market-based Scope 2 Emissions 1,646 1,596 1,166 01 Total Scope 1 and Location-based Scope 2 Emissions 2,477 2,450 1,907 practices into our own operations. Premier’s Environmental IMPROVING COMMUNITY Total Scope 1 and Market-based Scope 2 Emissions 2,071 2,033 1,497 Policy, affirmed by Premier’s Board and senior management, HEALTH Total Scope 1 and 2 Location-based GHG Intensity by continues to serve as the base for our environmental initiatives. 6.53 6.50 5.59 e/1,000 square feet) Floor Area (MTCO 2 02 ETHICS AND Total Scope 1 and 2 Market-based GHG Intensity by COMPLIANCE 5.46 5.39 4.38 Floor Area (MTCO e/1,000 square feet) 2 Total Scope 1 and 2 Location-based GHG Intensity by 03 1.91 1.42 1.33 OUR PEOPLE ADDRESSING The results of our annual GHG assessment Revenue (MTCO e/$1 million) 2 AND CULTURE are shown in the table to the side. CLIMATE CHANGE Total Scope 1 and 2 Market-based GHG Intensity by 1.59 1.18 1.04 We are cognizant of our duty to reduce the Revenue (MTCO e/$1 million) 2 Consistent with our first GHG assessment, 04 environmental impact of our operations in a fiscally RESPONSIBLE electricity consumption at our Charlotte co-located SUPPLY CHAIN responsible manner and are taking steps to shore data center and headquarters accounted for the up our resilience and adaptability, as discussed in bulk — approximately 78% — of our market-based 05 the Supply Chain Environmental Sustainability Scope 1 and 2 emissions. The overall decrease in ENVIRONMENTAL section of this report. We are utilizing a phased SUCCESS STEWARDSHIP our total market-based emissions since 2020 is due approach to understand our baseline emissions as to several factors, including planned reductions in an organization, establish effective governance and SPOTLIGHT our real estate footprint and the improved data 06 oversight structures, and identify the next steps to APPENDIX collection noted above, which showed lower GHG take to do our part in a transition to a low-carbon Premier Signs Pledge to Lead Decarbonization of Healthcare Sector values from our operations vs. the average intensity economy. Premier was recognized at the United Nations Climate Conference (COP27) by the U.S. literature values that were utilized in our inaugural Department of Health and Human Services (HHS) for pledging ongoing action to GHG assessment. In 2023, Premier completed its annual GHG decarbonize the healthcare sector and make healthcare facilities more resilient to the effects assessment, calculating our FY2022 Scope 1 and of climate change. The White House/HHS Health Sector Climate Pledge was developed as Scope 2 emissions for our U.S. offices and data part of a series of initiatives by the Biden-Harris administration to protect the health of centers. This assessment was completed in FY2022 Market-Based Emissions people in the U.S. from climate change. The pledge has been signed by more than 100 accordance with the GHG Protocol Corporate by Location healthcare organizations so far. Accounting and Reporting Standard and Scope 2 By signing the White House/HHS Health Care Sector Climate Pledge, Premier has committed Standard. For this assessment, we focused on to progressive climate action that includes reducing our organizational emissions by 50% by improving and standardizing our data collection 2030 (from a baseline no earlier than 2008), designating an executive-level lead for work on processes to increase the amount of primary data reducing emissions, and developing a climate resilience plan for continuous operations. utilized in our calculations and ultimately boost the accuracy of the assessment. Through these efforts, To help meet this commitment, we have designated our General Counsel as our executive- we effectively increased the percentage of GHG level lead, and we continue to baseline our Scope 1 and 2 GHG emissions to identify key calculations that leveraged primary data. We aim to levers for emissions reductions. As a first step to building organizational resilience to climate Charlotte HQ - 41% continue to enhance our data collection methods change, in 2023, Premier also completed an initial alignment with the Task Force on for this assessment moving forward. Charlotte Data Center - 37% Climate-Related Financial Disclosures (TCFD). 35 Other - 22%


Looking ahead, we recognize that we face certain FACILITIES limitations in reducing our Scope 1 and Scope 2 MANAGEMENT emissions, as all our offices, including our As part of our ongoing commitment to headquarters, are leased. Nevertheless, we plan to understand and manage our environmental SUCCESS 00 utilize our GHG assessment as a starting point to impact, we seek to optimize our energy, water OVERVIEW explore future emissions reduction initiatives. This and waste use across our operations. This SPOTLIGHT includes introducing environmental considerations starts at our Charlotte headquarters building, 01 and requirements in new lease agreements; IMPROVING which is managed by Northwood Office and is This year, our Director of Facilities COMMUNITY exploring additional opportunities for efficiency ® LEED -CS Gold certified, with LEED-CI principles HEALTH Tammy Dorcas, received a scholarship to upgrades in existing facilities (see Facilities applied within the interior build-out design. To pursue her IFMA Sustainability Facility Management); and utilizing Renewable Energy encourage low-impact commuting, our HQ has Professional (SFP) certification by the 02 Certificates (RECs). Premier’s primary production preferred parking places closer to the building ETHICS AND International Facility Manager data center in Culpeper, Va., is 100% covered by COMPLIANCE for hybrid vehicles and carpools. Association. SFP is an assessment- Renewable Energy Certificates (RECs) from U.S. based certificate program delivering a wind Virtual Power Purchase Agreements (VPPAs) The facilities service company for our 03 specialty credential in sustainability. By ® OUR PEOPLE and Green-e wind RECs. headquarters was awarded the Cleaning AND CULTURE earning this SFP credential, our Director Industry Management Standard (CIMS)-Green of Facilities will be recognized for her Premier is committed to taking measured steps as Building Certification with Honors by ISSA, the part of our investment in ESG and climate-related expertise in sustainable facility 04 World Cleaning Industry Association. The award RESPONSIBLE initiatives. Our continued growth in this space is management and contributions to is given to those companies that demonstrate a SUPPLY CHAIN discussed annually with our executive sponsors to Premier’s economic, environmental and commitment to the delivery of environmentally determine where and when to move the program social bottom lines. preferable services designed to meet customer 05 forward. We plan to evaluate if a screening and ENVIRONMENTAL needs and expectations. STEWARDSHIP calculation of material Scope 3 emissions may be pertinent to Premier in the future. ENERGY USE REDUCTION Pursing my SPF certification has broadened my understanding of the critical role In all our facilities, we have taken several steps 06 For more information on our approach to managing APPENDIX sustainability plays for an organization. Sustainability initiatives impact not only the social, to promote energy conservation. Premier has our emissions and key climate-related risks and financial and environmental aspects of an organization, but also our local communities and occupancy sensors in most of our office opportunities, please see the TCFD table in the beyond. It is exciting to see the work Premier is already doing to be a more sustainable locations, allowing us to reduce power Appendix. organization, and the knowledge gained by earning my SFP certificate will allow me to be a consumption if there is no occupancy on the bigger part of the conversation. floors or in the buildings. We actively and continually monitor our energy needs, and have – Tammy Dorcas taken steps like reducing the number of office printers where feasible. We have an ongoing initiative to replace all interior lighting with LED bulbs where possible and provide LED fixtures We incorporate LED lighting requirements in all new building operations and customer service, such as for any fixture replacements. leases that cover future build-out or space recycling and water and energy conservation. Where applicable, in conjunction with our renovations, and install motion-sensor lighting with Finally, where feasible, we also offer a hybrid work property management teams, Premier auto-shutoff features when possible. We also work schedule in which employees may elect a participates in electricity curtailment events. with our landlords to provide special parking for combination of work from home, work in a During these events, Premier turns off any fuel-efficient cars, electric vehicles and carpools. In Premier office, or work elsewhere, which has devices that are not in use and minimizes addition, when scheduling external meetings and allowed us to decrease our office space and lighting to only what is necessary for safety conferences, we strive to pursue contracts with associated energy use. and productivity. facilities that integrate green offerings within their 36


WASTE AND WATER WASTE REDUCTION IN IN OUR OPERATIONS MEMBER HOSPITALS We are conscious of our acquisition, use, Helping to reduce waste produced by our members maintenance, reuse, recycling, and disposal of reduces the impact from the entire product 00 products and services used throughout our lifecycle. We facilitate waste reduction through the OVERVIEW operations. We work with our landlords and contracts we offer. Reprocessing, both as a suppliers to implement eco-friendly best practices stand-alone contract and in the form of blended 01 as part of advancing our environmental codes, eliminates significant quantities of waste for IMPROVING management strategy, such as: our members. For example, just one reprocessing COMMUNITY HEALTH contract at Premier saved 1 million pounds of • Requesting cleaning vendor partners to support waste from going to a landfill last year. We also “green” practices, such as using eco-friendly 02 offer items on contract, such as reusable waste products, HEPA-filter vacuums, recycling ETHICS AND disposal or sterilization containers, which have the COMPLIANCE implements, and energy- and water-efficient potential to eliminate hundreds or even thousands cleaning equipment. of pounds of unrecyclable waste at any system that 03 • Repurposing office furnishings and supplies to deploys them. OUR PEOPLE AND CULTURE local charitable organizations, schools, churches, community organizations and our employees (by auction). 04 RESPONSIBLE • Encourage local employees in Charlotte to SUPPLY CHAIN check on-site office supplies before ordering. 05 In 2022, we successfully relocated or recycled ENVIRONMENTAL over 250 file boxes of paper confidential STEWARDSHIP documents from multiple storage facilities with focus on centralization of all files that need to be 06 retained per member contracts that cannot be APPENDIX recycled at this time. Our current initiative is to have all future documents scanned and stored electronically. Electronic waste (e-waste) recycling is an ongoing process, and we have recycled over 13 tons of IT equipment in the past six years. We are a member of e-Stewards Enterprise, which recognizes electronics recyclers that meet certified standards for responsible recycling practices. We also offer a computer drawing twice a year to our employees for the opportunity to purchase refurbished, previously used Premier computers, with a portion of the proceeds being donated to a nonprofit organization. 37


06 Appendix


ESG DATA TABLE For additional reference, the following table highlights key ESG metrics and resources related to our operations: 00 FY2023 FY2022 FY2021 FY2023 FY2022 FY2021 OVERVIEW 12 ETHICS AND COMPLIANCE OUR PEOPLE AND CULTURE 01 Board ESG Oversight Nominating and Governance Committee Charter Total Head Count (#) ~2,800 ~2,600 ~2,600 IMPROVING COMMUNITY Board Composition As of 10/18/2023 As of 10/19/2022 As of 10/20/2021 Total Employee Turnover Rate (%) 16% 18% 11% HEALTH Voluntary Employee Total Directors 9 10 10 11% 14% 9% Turnover Rate (%) 02 Average Age (Years) 65 63 62 ETHICS AND Involuntary Employee COMPLIANCE 5% 4% 2% Average Tenure (Years) 7 5 5 Turnover Rate (%) 03 Independent Directors (#) 8 9 9 Employee Diversity OUR PEOPLE AND CULTURE Independent Directors (%) 89% 90% 90% Total Employee Diversity (%) Women (#) 3 3 3 Women 56% 54.6% 53.3% 04 RESPONSIBLE Women (%) 33% 30% 30% Asian 11% 10.9% 10.7% SUPPLY CHAIN Underrepresented Minorities (#) 1 1 1 Black or African American 10.8% 10.0% 9.6% 05 Underrepresented Minorities (%) 11% 10% 10% ENVIRONMENTAL Hispanic or Latino 4.2% 3.6% 3.8% STEWARDSHIP White 70.8% 72.3% 73.2% Anti-Bribery Policy 2022 Annual Compliance 06 13 Other 3.2% 2.7% 2.7% Report Human Trafficking Policy APPENDIX Ethics and Compliance Policies Code of Conduct Whistleblower Policy Diversity by Role (%) Conflict of Interest Policy WorkSmart Integrity Hotline Manager Level and Above Women 51% 51.7% 51.9% Whistleblower Reports 0 0 0 Made to Premier Asian 7.6% 7.6% 7.3% Types of Whistleblower Reports Not Applicable Not Applicable Not Applicable Black or African-American 6% 6.2% 5.7% Government Relations Hispanic or Latino 3.7% 3.2% 3.4% White 81% 80.7% 81.4% Total Employee Total Employee Total Employee 14 Other 1.7% 2.1% 2.1% Contributions: Contributions: Contributions: $100,097 $109,114 $123,334 Political Contributions Employees Eligible for 401(k) (%) 99.0% 99.0% 99.0% through Employee PAC Total Political Total Political Total Political Contributions: Contributions of Contributions: 100% of first 3% 100% of first 3% 100% of first 3% Employer 401(k) Match (%) $56,500 and 50% of next 2% and 50% of next 2% and 50% of next 2% $46,500 $152,500 Total Lobbying Expenditures $1,000,000 $1,070,000 $3,540,000 Employee Resource Groups (#) 8 9 10 39


ESG DATA TABLE For additional reference, the following table highlights key ESG metrics and resources related to our operations: 00 FY2023 FY2022 FY2021 OVERVIEW IMPROVING COMMUNITY HEALTH 15 01 Total Charitable Giving 1,073 329 288 IMPROVING COMMUNITY Total Employee Volunteer Hours $192,952 $208,894 $278,751 HEALTH RESPONSIBLE SUPPLY CHAIN 02 Group Purchasing Code of Conduct ETHICS AND COMPLIANCE Supplier Standards 03 OUR PEOPLE Contract Portfolio Comprised of AND CULTURE Diverse Suppliers (including agreements with minority-, women- 12% 11% 12% 04 and veteran-owned companies and RESPONSIBLE SUPPLY CHAIN small business enterprises) (%) 05 Location-based GHG Intensity by 1.33 1.42 1.91 ENVIRONMENTAL Revenue (MTCO e/$1 million) 2 STEWARDSHIP 9 U.S. EMISSIONS (IN MTCO E ) 2 06 APPENDIX EMISIONS CATEGORY FY2020 FY2021 FY2022 Scope 1 Emissions 425 438 331 16 Location-based Scope 2 Emissions 2,052 2,013 1,576 17 Market-based Scope 2 Emissions 1,646 1,596 1,166 Total Scope 1 and Location-based Scope 2 Emissions 2,477 2,450 1,907 Total Scope 1 and Market-based Scope 2 Emissions 2,071 2,033 1,497 Total Scope 1 and 2 Location-based GHG Intensity by 6.53 6.50 5.59 Floor Area (MTCO e/1,000 square feet) 2 Total Scope 1 and 2 Market-based GHG Intensity by 5.46 5.39 4.38 Floor Area (MTCO e/1,000 square feet) 2 Total Scope 1 and 2 Location-based GHG Intensity by 1.91 1.42 1.33 Revenue (MTCO e/$1 million) 2 Total Scope 1 and 2 Market-based GHG Intensity by 1.59 1.18 1.04 Revenue (MTCO e/$1 million) 2 40


SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) The tables below incorporate accounting standards from the SASB related to Health Care Distributors (HC-DI) as well as relevant topics from Medical Equipment and Supplies (HC-MS) and Software and IT Services (TC-SI). It includes references to sections within this report where specific topics are discussed in further detail. 00 OVERVIEW SUSTAINABILITY DISCLOSURE TOPICS AND SUSTAINABILITY DISCLOSURE TOPICS AND 01 ACCOUNTING METRICS: HEALTHCARE DISTRIBUTORS ACCOUNTING METRICS: HEALTHCARE DISTRIBUTORS IMPROVING COMMUNITY HEALTH SASB SASB SASB TOPIC ACCOUNTING METRIC RESPONSE SASB TOPIC ACCOUNTING METRIC RESPONSE CODE CODE 02 We rely on third-party transportation ETHICS AND COMPLIANCE providers who use fuel and energy on Description of methods and our behalf to transport our directly technologies used to maintain HC-DI- sourced goods via various modes of traceability of products HC-DI- See the Counterfeit Drugs and 03 Payload fuel economy. OUR PEOPLE 110a.1 transportation and therefore do not throughout the distribution 260a.1 Traceability section of this report. AND CULTURE have operational control of the fuel chain and prevent consumption needed to calculate counterfeiting. this metric. 04 RESPONSIBLE FLEET FUEL SUPPLY CHAIN MANAGEMENT We exercise a process of continual feedback and refinement to optimize 05 Discussion of due diligence practices that minimize the time, cost ENVIRONMENTAL process to qualify suppliers of HC-DI- See the Product Quality and Safety Description of efforts to STEWARDSHIP and environmental impact of our order HC-DI- COUNTERFEIT drug products and medical 260a.2 section of this report. reduce the environmental fulfillment operations. 110a.2 DRUGS equipment and devices. impact of logistics. 06 For more information, see the APPENDIX Transportation and Logistics section of this report. Total amount of monetary In FY2023, Premier incurred no Discussion of process losses as a result of legal HC-DI- monetary losses that resulted from for alerting customers proceedings associated with 250a.1 legal proceedings associated with and business partners HC-DI- See the Counterfeit Drugs and product safety. product safety. of potential or known 260a.3 Traceability section of this report. risks associated with PRODUCT counterfeit products. Description of efforts to SAFETY minimize health and safety risks of products sold HC-DI- See the Product Quality and Safety associated with toxicity/ 250a.2 section of this report. chemical safety, high abuse potential or delivery. 41


SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) The tables below incorporate accounting standards from the SASB related to Health Care Distributors (HC-DI) as well as relevant topics from Medical Equipment and Supplies (HC-MS) and Software and IT Services (TC-SI). It includes references to sections within this report where specific topics are discussed in further detail. 00 OVERVIEW SUSTAINABILITY DISCLOSURE TOPICS AND SUSTAINABILITY DISCLOSURE TOPICS AND 01 ACCOUNTING METRICS: HEALTHCARE DISTRIBUTORS ACCOUNTING METRICS: MEDICAL EQUIPMENT AND SUPPLIES IMPROVING COMMUNITY HEALTH ACCOUNTING SASB ACCOUNTING SASB SASB TOPIC RESPONSE SASB TOPIC RESPONSE METRIC CODE METRIC CODE 02 Discussion of process to ETHICS AND Discussion of strategies to assess and manage COMPLIANCE reduce the environmental HC-DI- See the Supply Chain Environmental environmental and human PRODUCT DESIGN impact of packaging 410a.1 Sustainability section of this report. health considerations HC-MS- See the Supply Chain Environmental AND LIFECYCLE 03 throughout its lifecycle. associated with 410a.1 Sustainability section of this report. OUR PEOPLE MANAGEMENT chemicals in products and AND CULTURE PRODUCT meet demand for LIFECYCLE This data is not collected at this time. sustainable products. MANAGEMENT 04 Amount (by weight) of See the Supply Chain Environmental RESPONSIBLE SUPPLY CHAIN Percentage of (1) entity’s products accepted for HC-DI- Sustainability section of this report for facilities and (2) Tier I take-back and reused, 410a.2 more information on how we suppliers’ facilities recycled or donated. incorporate environmental 05 HC-MS- See the Supply Chain Services participating in third-party ENVIRONMENTAL considerations into our services. 430a.1 section of this report. STEWARDSHIP audit programs for manufacturing and Description of efforts to product quality. 06 minimize conflicts of HC-DI- See the Ethics and Compliance APPENDIX interest and unethical 510a.1 section of this report. Description of efforts to business practices. maintain traceability HC-MS- See the Counterfeit Drugs and BUSINESS SUPPLY CHAIN within the distribution 430a.2 Traceability section of this report. Total amount of monetary ETHICS MANAGEMENT chain. losses as a result of legal In FY2023, Premier did not incur any proceedings associated HC-DI- losses as a result of legal proceedings with bribery, corruption or 510a.2 associated with bribery, corruption or other unethical business other unethical business practices. practices. Description of the management of risks HC-MS- See the Supply Chain Services associated with the use of 430a.3 section of this report. critical materials. 42


SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) The tables below incorporate accounting standards from the SASB related to Health Care Distributors (HC-DI) as well as relevant topics from Medical Equipment and Supplies (HC-MS) and Software and IT Services (TC-SI). It includes references to sections within this report where specific topics are discussed in further detail. 00 OVERVIEW SUSTAINABILITY DISCLOSURE TOPICS AND SUSTAINABILITY DISCLOSURE TOPICS AND 01 ACCOUNTING METRICS: SOFTWARE AND IT SERVICES ACCOUNTING METRICS: MEDICAL EQUIPMENT AND SUPPLIES IMPROVING COMMUNITY ACCOUNTING SASB ACCOUNTING SASB HEALTH SASB TOPIC RESPONSE SASB TOPIC RESPONSE METRIC CODE METRIC CODE 02 (1) Total energy Estimated electricity use associated ETHICS AND consumed, (2) percentage TC-SI- COMPLIANCE Number of users whose with data centers in FY2022: (1) 3550 TC-SI- The use of user information is grid electricity, (3) 130a.1 information is used for MWh, (2) 100%, (3) 49% 220a.2 described in our Privacy Notice. percentage renewable. secondary purposes. 03 OUR PEOPLE (1) Total water withdrawn, AND CULTURE (2) total water consumed, Total amount of monetary In FY2023, Premier did not incur percentage of each in TC-SI- ENVIRONMENTAL 04 This data is not tracked at this time. losses as a result of legal TC-SI- any losses, fines or penalties resulting regions with high or 130a.2 FOOTPRINT OF RESPONSIBLE proceedings associated 220a.3 from legal proceedings related to SUPPLY CHAIN HARDWARE extremely high baseline INFRASTRUCTURE with user privacy. user privacy. water stress. 05 Discussion of the ENVIRONMENTAL STEWARDSHIP In FY2023, Premier’s Chief Privacy integration of Officer did not receive any requests environmental TC-SI- See the Facilities Management section (1) Number of law DATA PRIVACY from government or law enforcement considerations into 130a.3 of this report. 06 enforcement requests for AND FREEDOM APPENDIX related to user information. strategic planning for user information, (2) OF EXPRESSION TC-SI- data center needs. number of users whose Consequently, there were no users 220a.4 information was requested, whose information was requested and Premier aligns digital activities with the (3) percentage resulting in no resulting disclosures. This response laws of the nations in which we disclosure. excludes requests, if any, that Premier operate. Premier’s Privacy Statement is is prohibited from disclosing by law. Description of policies reviewed and updated with reference DATA PRIVACY and practices relating to TC-SI- to standardized processes and tools to AND FREEDOM behavioral advertising 220a.1 help us comply with applicable laws. In OF EXPRESSION Premier’s products and services are List of countries where core and user privacy. addition, Premier maintains a number subject to customer oversight and products or services are of internal privacy-related policies to contract terms but are not otherwise subject to government- TC-SI- ensure that we have a comprehensive subject to government-required required monitoring, 220a.5 approach to privacy management. monitoring (other than applicable blocking, content filtering or regulatory requirements), blocking, censoring. content filtering or censoring. 43


SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) The tables below incorporate accounting standards from the SASB related to Health Care Distributors (HC-DI) as well as relevant topics from Medical Equipment and Supplies (HC-MS) and Software and IT Services (TC-SI). It includes references to sections within this report where specific topics are discussed in further detail. 00 OVERVIEW SUSTAINABILITY DISCLOSURE TOPICS AND SUSTAINABILITY DISCLOSURE TOPICS AND 01 ACCOUNTING METRICS: SOFTWARE AND IT SERVICES ACCOUNTING METRICS: SOFTWARE AND IT SERVICES IMPROVING COMMUNITY HEALTH ACCOUNTING SASB ACCOUNTING SASB SASB TOPIC RESPONSE SASB TOPIC RESPONSE METRIC CODE METRIC CODE 02 Percentage of gender and (1) Number of data ETHICS AND COMPLIANCE RECRUITING AND racial/ethnic group breaches, (2) percentage See the Cyber Risk Management, MANAGING A representation for (1) TC-SI- involving personally TC-SI- Data Security and Customer Privacy GLOBAL, DIVERSE See ESG Data Table above. management, (2) 330a.3 identifiable information (PII), 230a.1 03 AND SKILLED section of this report. OUR PEOPLE technical staff and (3) all (3) number of users WORKFORCE AND CULTURE other employees. affected. 04 Premier maintains a formal Total amount of monetary RESPONSIBLE INTELLECTUAL In FY2023, Premier did not experience Information Security Risk losses as a result of legal SUPPLY CHAIN PROPERTY TC-SI- a monetary loss as a result of legal Management Program to continually proceedings associated PROTECTION AND 520a.1 proceedings associated with anti- COMPETITIVE identify, assess, mitigate, report, and with anti-competitive DATA SECURITY 05 competitive behavior regulations. BEHAVIOR monitor security risks across the behavior regulations. ENVIRONMENTAL STEWARDSHIP Description of approach to enterprise. Premier’s Information identifying and addressing Security Risk Management and In FY2023, Premier did not experience TC-SI- data security risks, including Compliance (ISRMC) team reviews 06 Number of (1) a performance or downtime issue that 230a.2 use of third-party APPENDIX and evaluates the risks identified in performance issues, (2) TC-SI- had a material impact on the business cybersecurity standards. the program at least annually. service disruptions, (3) 550A.1 that required regulatory reporting to total customer downtime. authorities or incurred financial For more information see the Cyber penalties. Risk Management, Data Security and Customer Privacy section of this Risks and potential risks are identified, report. and incidents (man-made disasters, extreme weather, epidemics/ MANAGING pandemics, natural disasters) are SYSTEMIC RISKS Percentage of employees FROM tracked that could result in either TC-SI- that are (1) foreign nationals For FY2023: 1) 2% 2) 0% TECHNOLOGY short- or long-term disruptions. 330a.1 DISRUPTIONS and (2) located offshore. Continuity measures are implemented Description of business RECRUITING TC-SI- and monitored as appropriate across continuity risks related to AND MANAGING 550A.2 business and information technology disruptions of operations A GLOBAL, Employee engagement score vs. operations to mitigate identified DIVERSE AND global benchmark as of Spring 2023: potential materially adverse impacts. SKILLED 80 (benchmark: 75). WORKFORCE Employee engagement as a TC-SI- For more information, see the percentage. 330a.2 For more information, see the Enterprise Risk Management and Engagement and Retention section Business Continuity section of this of this report. report. 44


TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) ALIGNMENT TCFD DISCLOSURE TCFD PILLAR PREMIER’S ALIGNMENT RECOMMENDATION 00 OVERVIEW Our Board of Directors works closely with our executive management team to oversee our ESG initiatives and sustainable business practices, which includes climate risks and opportunities as appropriate. Our Board retains ultimate oversight of 01 enterprise risk management (ERM) and remains informed through regular reporting and updates, including a standing IMPROVING COMMUNITY ERM presentation at each quarterly board meeting. Furthermore, each board committee evaluates and oversees the HEALTH management of risks, including those related to climate, within its area of responsibility. The Nominating and Governance Committee has primary responsibility for ESG oversight and reports to the full Board 02 ETHICS AND regarding ESG and climate matters, such as: COMPLIANCE a) Describe the board’s • Evaluating climate programs and policies. oversight of climate- 03 related risks and OUR PEOPLE • Reviewing performance related to ESG matters, (i.e., progress toward the achievement of climate goals). opportunities. AND CULTURE • Overseeing corporate communication plans and any reports in connection with climate initiatives. 04 • Monitoring trends, stockholder concerns and emerging issues related to climate that affect Premier and its industry, RESPONSIBLE SUPPLY CHAIN consulting with management, and making recommendations to the Board regarding overall ESG matters. Governance In carrying out its responsibilities for climate oversight, the Nominating and Governance Committees will coordinate with 05 the Compensation Committee and the Audit and Compliance Committee on climate-related subjects, including risk ENVIRONMENTAL STEWARDSHIP management as needed to ensure adequate oversight and awareness. 06 APPENDIX Premier’s ESG Steering Committee also plays a key role in governing our overall sustainability strategy and priorities, including climate impacts. The ESG Steering Committee is directed by and composed of cross-functional senior leaders who meet quarterly to develop and drive Premier’s sustainability objectives. The group provides updates to the b) Describe Nominating and Governance Committees on our ESG program and climate matters, emerging trends, and stakeholder management’s role in engagement. assessing and managing climate- In addition, Premier’s General Counsel is the executive-level lead for our initial initiatives to manage and, going forward, related risks and attempt to reduce our emissions and ensure we meet the stated requirements as defined in the White House/HHS opportunities. Climate Pledge (which Premier signed in 2022). Management is apprised of climate-related issues on an ad-hoc basis. If an issue being reviewed by any business unit is identified a material, climate-related issue, it may be brought to management for consideration and review of risk impact. 45


TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) ALIGNMENT TCFD DISCLOSURE TCFD PILLAR PREMIER’S ALIGNMENT RECOMMENDATION 00 OVERVIEW Premier recognizes that human health is inextricably linked to the planet’s health. Climate change has and will continue to increase the incidence and complexity of many health issues like asthma, especially in vulnerable and disadvantaged 01 IMPROVING populations. Climate change is also expected to trigger physical and economic impacts, including infrastructure and COMMUNITY supply chain disruptions. a) Describe the HEALTH climate-related risks and In 2022, climate change was not identified as a stand-alone risk thr ough our ERM process. However, we recognize that opportunities the 02 several risks that emerged through this process have potential to be intensified by climate change-related drivers. These company has identified ETHICS AND include risks related to macroeconomic conditions, governmental affairs and regulatory compliance, business continuity COMPLIANCE over the short, medium, and organizational resiliency, and third-party and vendor relationships. These risks are outlined in more detail in our 10-K. and long terms. 03 Premier understands our role as a player in the healthcare industry, and will continue adapting to changing public health OUR PEOPLE needs as health conditions emerge and intensify due to climate change. We anticipate opportunities emerging as we AND CULTURE respond to these changing health needs and as we work toward mitigating our impact on climate change. 04 RESPONSIBLE Premier is committed to taking annual, measured steps to address the impact of climate-related risks and opportunities SUPPLY CHAIN as part of our overall investment in the key ESG topics most relevant to our business. Strategy b) Describe the impact of climate-related risks In 2022, we began to baseline our Scope 1 and 2 GHG emissions to better understand our climate impact. In 2023, we 05 ENVIRONMENTAL and opportunities on the designated our General Counsel as our executive-level lead for our emissions reduction initiatives. In future years, we may STEWARDSHIP company’s businesses, expand our GHG reporting to include Scope 3 emissions, which will help inform Premier’s strategic decisions around our strategy and financial supply chain and business operations. 06 planning. APPENDIX Our continued growth in this space is discussed annually with our executive sponsors to determine how we will apply resources to advance our climate initiatives in alignment with our business strategy. c) Describe the resilience of the company’s strategy, taking into consideration Premier plans to explore scenario analysis in future ESG reporting. different climate-related scenarios, including a 2°C or lower scenario. 46


TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) ALIGNMENT TCFD DISCLOSURE TCFD PILLAR PREMIER’S ALIGNMENT RECOMMENDATION 00 OVERVIEW Premier has established a robust risk management framework and continues to build capacity to complement our sustainability-conscious enterprise risk management program, enabling: 01 IMPROVING • A thorough organizational knowledge of sustainability, promoting the capture of emerging sustainability risks. COMMUNITY HEALTH • Assessments revealing sustainability opportunities as well as risks. 02 a) Describe the • Measurement (qualification and quantification) of sustainability risks. ETHICS AND COMPLIANCE company’s processes • Common language and standards across enterprise functions, increasing collaboration, coverage, rigor, consistency in for identifying and management, and reporting. assessing climate- 03 related risks. OUR PEOPLE If climate-related risks arise, these risks are evaluated to determine associated impacts on each business unit and AND CULTURE considered as part of our quarterly ERM process. Results are presented to a collective group of individuals and executive team members for confirmation and then presented to the Board each quarter. 04 RESPONSIBLE Premier actively monitors the SEC and other institutions for potential and upcoming regulations and how they will impact SUPPLY CHAIN our various businesses. Impacts of upcoming financial regulations are presented to the Audit and Compliance Committee, as needed. 05 Risk ENVIRONMENTAL STEWARDSHIP Management Our Business Continuity and Disaster Recovery Plan (BCDRP) is designed to minimize disruption to our service delivery in the event of a natural disaster. Key business continuity and infrastructure recovery capabilities are validated through 06 third-party audits and through companywide tabletop exercises at least annually. APPENDIX b) Describe the company’s processes In addition, our Disaster Response Community team ensures business continuity for our members during a hurricane, fire, for managing climate- tornado or other emergency. We monitor all areas of the U.S. for natural disasters and other disruptive events that could related risks. affect our members, suppliers or employees. We are frequently in contact with local, state and national government organizations, such as Federal Emergency Management Agency (FEMA), National Hurricane Center (NHC), and the appropriate State Emergency Management Agency during disasters. c) Describe how processes for identifying, assessing and managing climate- Although climate change was not identified as a material risk in 2022, climate-r elated risk identification, assessment and related risks are management is encompassed within our overall risk management process. integrated into the company’s overall risk management. 47


TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) ALIGNMENT TCFD DISCLOSURE TCFD PILLAR PREMIER’S ALIGNMENT RECOMMENDATION 00 OVERVIEW a) Disclose the metrics used by the company to 01 IMPROVING assess climate-related Premier measures our Scope 1 and 2 greenhouse gas emissions year over year and quantifies the intensity of our COMMUNITY risks and opportunities emissions to better understand our climate impact. As we continue to advance our climate initiatives, we aim to develop HEALTH in line with its strategy other key performance indicators that will enable us to better track and assess climate risks and opportunities. and risk management 02 process. ETHICS AND COMPLIANCE b) Disclose Scope 1, 03 Scope 2, and, if OUR PEOPLE appropriate, Scope 3 Please see the Addressing Climate Change section of this report for our Scope 1 and 2 emissions figures for AND CULTURE greenhouse gas (GHG) FYs 2020, 2021, and 2022. emissions, and the 04 related risks. RESPONSIBLE SUPPLY CHAIN 05 ENVIRONMENTAL Metrics and STEWARDSHIP In 2022, Premier joined the White House/HHS Health Sector Climate Pledge, demonstrating our commitment to lowering Targets greenhouse gas emissions and building more climate-resilient infrastructure. As a part of this voluntary pledge, we have 06 committed to the following: APPENDIX 1. At minimum, reduce organizational emissions by 50% by 2030 (from a baseline no earlier than 2008) and achieve net-zero by 2050, publicly accounting for progress on this goal every year. c) Describe the targets used by the company to 2. Designate an executive-level lead for our work on reducing emissions by 2023, and conduct an inventory of Scope 3 manage climate-related (supply chain) emissions by the end of 2024. risks, and opportunities and performance 3. Develop and release a climate resilience plan for continuous operations by the end of 2023, anticipating the needs of against targets. groups in our communities that experience disproportionate risk of climate-related harm. As noted above, since committing to this pledge, we have designated our General Counsel as our executive-level lead, and improved data management practices for our annual Scope 1 & 2 GHG assessment. We plan to evaluate if a screening and calculation of material Scope 3 emissions may be pertinent to Premier in the future. We have also started exploring opportunities to build our climate resilience through a phased adoption of the TCFD framework. 48


UN SUSTAINABLE DEVELOPMENT GOALS The UN Sustainable Development Goals (SDGs) are a collaborative, global effort to achieve a better and more sustainable future for all. Represented by 17 global goals and 169 targets, the SDGs address challenges of poverty, inequality, climate change, environmental degradation, and peace and justice. Below we have identified the SDGs we believe have the greatest influence and impact through our business strategy, products and services. 00 OVERVIEW REPORT REPORT GOAL DESCRIPTION PREMIER'S ALIGNMENT GOAL DESCRIPTION PREMIER'S ALIGNMENT SECTION SECTION 01 IMPROVING COMMUNITY Through our data and analytics capabilities, Ensure healthy Premier is driven by our mission to improve the HEALTH Improving collaboratives and other tools, we help healthcare lives and promote health of communities. We are uniquely Community providers better understand underserved Improving well-being for all at positioned to enable better care and outcomes at Health 02 populations, the severity of health-related Community all ages. a lower cost. ETHICS AND Health problems and the root causes of disparate COMPLIANCE Reduce inequality outcomes, connecting providers to best practices within and among Our People We believe the positive impact of our Diversity, and care bundles for remediation. Some of the and Culture countries. 03 Equity, Inclusion and Belonging (DEIB) approach is initiatives we have in place to help address the OUR PEOPLE Achieve gender far reaching, not only within our company, but also Ethics and medically underserved include those dedicated to AND CULTURE Compliance equality and for the communities and members we serve. Our People maternal health, opioid abuse, disparity gaps, and Culture empower all Premier is committed to equal opportunity and social determinants of health and chronic health 04 women and girls. pay equity in the workplace and has various conditions. RESPONSIBLE programs in place to ensure women thrive in our SUPPLY CHAIN professional environment. 05 Through our Sourcing Education and Enrichment ENVIRONMENTAL for Diverse and Small Suppliers (SEEDS) program, STEWARDSHIP This report constitutes Premier’s third year of Ensure sustainable we aim to increase the number of small, diverse ESG reporting. We have also established ESG consumption and and regional enterprises doing business with structures, including an ESG Steering Committee Overview 06 production members of our healthcare alliance; support that meets quarterly to ensure progress toward APPENDIX patterns. diverse and small business enterprises; enable our sustainability goals. them to grow; and provide coaching, mentoring, Promote and business educational tools to help them sustained, develop strategic long-term relationships with our inclusive and members. sustainable Responsible Supply Chain economic growth; Premier’s commitment to a safe and healthy work This year, Premier completed our second GHG full and productive environment extends to our overseas supply chain assessment, baselining our carbon footprint by employment; and operations. Through our work with Bureau Veritas, Environmental Take urgent calculating our Scope 1 and Scope 2 emissions decent work for all. an international social compliance audit Stewardship action to combat for FY2022.. organization, Premier has established criteria for climate change Responsible our contracted manufacturing factories in East Our Environmentally Preferred Purchasing (EPP) and its impacts. Supply Chain and Southeast Asia that require factories to Advisory Council helps our GPO members identify ensure a safe, healthy work environment, sustainable products, packaging and services. compensation that adheres to local law and at no time permits indentured service. 49


ESG MATERIALITY ASSESSMENT DEFINITIONS The following table lists the definitions of each of the 24 key ESG factors that surfaced through our ESG Materiality Assessment completed during FY2022. Please see page 6 for more information regarding this assessment and how Premier is incorporating it into its approach to ESG. 00 BUSINESS MODEL AND INNOVATION HUMAN CAPITAL OVERVIEW Providing a work environment that promotes diversity of gender, ethnicity, Business Model Resilience and Preparing for and managing potential crises and risks that may impact the Diversity, Equity and Inclusion sexual orientation, physical ability, age, religious or personal beliefs and 01 Systemic Risk Management business. socioeconomic background. IMPROVING COMMUNITY Researching, developing and offering products that integrate environmental, HEALTH Employee Engagement, Training ESG Impacts of Products Implementing programs and policies that attract and retain talent. social and governance considerations and take advantage of consumer trends and Development and Services and interests in sustainability. 02 Labor Practices and Employee ETHICS AND Upholding fair labor practices for all employees. Well-Being COMPLIANCE Understanding and minimizing the risks associated with climate change and their Impacts of Climate Change impacts on the company. ENVIRONMENT 03 OUR PEOPLE Management of the Legal Ensuring compliance with applicable laws and regulations and upholding ethics Measuring and minimizing the usage and impacts from the company’s data AND CULTURE Energy Management and Regulatory Environment and values when engaging in activities that may influence public policy. centers and energy consumption. Establishing strategies to reduce the environmental impacts and risks throughout 04 Understanding and ensuring that the entire value chain, including suppliers, Environmental Management RESPONSIBLE Supply Chain Management the company’s operations and facilities. aligns with the company’s business ethics, including social and environmental SUPPLY CHAIN and Human Rights performance. Greenhouse Gas Measuring and minimizing greenhouse gas emissions wherever feasible (GHG) Management throughout the company’s operations and facilities. 05 GOVERNANCE AND LEADERSHIP ENVIRONMENTAL Recycling and Waste Measuring and minimizing the production of waste wherever feasible throughout STEWARDSHIP Board Independence Promoting and accurately sharing the structure of the company’s Board to ensure Management the lifecycle of the company’s products and services. and Diversity effectiveness and representation of stockholder values. Measuring and minimizing the usage and impacts from water consumption 06 Water Management wherever feasible throughout the company’s operations and facilities. APPENDIX Ensuring that the company’s values, standards and norms are ethical and Business Ethics managed throughout business operations. SOCIAL CAPITAL Ensuring oversight and management of environment, social and governance Taking measures to ensure the accessibility and inclusiveness of Governance of “ESG” Access and Affordability topics throughout the company’s operations. products and services. Protecting and mitigating the risks associated with personally identifiable Intellectual Property and Anti- Implementing anti-competitive practices and behaviors that address the issues Customer Privacy information (PII) and user data. Competitive Behavior associated with monopolies. Establishing an information and cybersecurity system that is secure, Data Security resilient and reliable. Actively seeking input from stakeholders to incorporate Stakeholder Engagement into business strategies and priorities. Customer Welfare Promoting and protecting customer well-being by minimizing the health and Product Safety and safety risks of product offerings. Philanthropy and Volunteerism Supporting and establishing positive relations with communities. Product Quality and Supply Establishing and sustaining processes to ensure that products meet quality Chain Integrity standards in accordance with regulatory requirements. 50


CITATIONS AND FOOTNOTES 1 Centers for Disease Control and Prevention. 2022. “Stigma Reduction.” https://www.cdc.gov/stopoverdose/stigma/index.html 2 Hazelden Betty Ford Foundation. 2021. “Americans Increasing Substance Use to Cope with Mental Strain; Parents at Highest Risk.” 00 https://www.hazeldenbettyford.org/press-release/mental-health-index-report OVERVIEW 3 National Safety Council (NSC) and NORC at the University of Chicago, December 2, 2020. “New Analysis: Employers Can Save Average of $8,500 for Supporting Each Employee in Recovery from Substance Use Disorder.” https://www.nsc.org/newsroomnew- 01 analysis-employers-stand-to-save-an-average-of IMPROVING COMMUNITY 4 Li, M., Peterson, C., Xu, L., Mikosz, C. A., & Luo, F. “Medical costs of substance use disorders in the U.S. employer- HEALTH sponsoredinsurance population. ”JAMA Network Open, 6(1). January 24, 2023. https://doi.org/10.1001/ jamanetworkopen.2022.52378 02 5 Murray CJL, Gakidou EE, Frenk J. Critical reflection – health inequalities and social group differences: what should we measure? ETHICS AND Bull World Health Organ. 1999;77:537–44. COMPLIANCE 6 Di (2-ethylhexyl) phthalate (DEHP) is a plasticizer in the phthalate family that is commonly added to polyvinyl chloride (PVC) as a softener for medical products such as intravenous (IV) containers. 03 7 Greening the OR”, Practice Greenhealth Greening the OR | Practice Greenhealth. Note: Premier is a Premium Affiliate Member. OUR PEOPLE AND CULTURE 8 As of March 2023. 9 Metric Tons of Carbon Dioxide equivalent. Total emissions numbers may not sum due to rounding. 04 RESPONSIBLE 10 Location-based emissions are those estimated based on local grid power sources. SUPPLY CHAIN 11 Market-based emissions are those estimated after factoring in power purchase agreements and renewable energy certificates. 12 For additional information on Premier’s ethics and compliance programs and practices, please see the Ethics and Compliance and 05 Governance Documents sections of our website. ENVIRONMENTAL STEWARDSHIP 13 Includes full-time employees who self-identify as Native Hawaiian, Pacific Islander, American Indian, Alaskan Native, or two or more races. 06 14 Ibid. APPENDIX 15 Includes cash donations, matched donations and Volunteer Hours Program. 16 Location-based emissions are those estimated based on local grid power sources. 17 Market-based emissions are those estimated after factoring in power purchase agreements and renewable energy certificates. 51


00 OVERVIEW 01 IMPROVING COMMUNITY HEALTH 02 ETHICS AND COMPLIANCE 03 OUR PEOPLE AND CULTURE 04 RESPONSIBLE SUPPLY CHAIN 05 ENVIRONMENTAL STEWARDSHIP 06 APPENDIX 52

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