A Purposeful Journey:
2020 Innovation, Environmental, Social and Governance Disclosures

December 22, 2020

Message from Randall Lipps, Chairman, President, CEO, and Founder of Omnicell

At Omnicell, we are accountable not only to our customers and shareholders, but also to the global community. As a company and as employees, in small ways and large, we look beyond ourselves and seek to make a difference for others.

We believe that there is a better way – a better way to do business, a better way to enable our customers' success, a better way to engage our employees, a better way to interact with the communities in which we live and serve. And so we are outlining the roadmap of our Purposeful Journey, adopting SASB principles as a way to do it better when it comes to Innovation along with the Omnicell Environment, Social Impact, and Governance (ESG), respecting and honoring our founding principles and purpose, and underscoring our commitment to create enduring long-term value for all of our stakeholders.

      • Introduction

      Introduction

      Our Vision: Accelerate Pharmacy to Perfection

      Omnicell is committed to improving pharmacy operations to enable pharmacists to practice at the “top of their license.” With nearly half a trillion dollars in medication spend annually, and suboptimal outcomes, we know there’s much room for improvement. Our vision to accelerate pharmacy to perfection includes our mission to be the care provider’s most trusted partner. We will accomplish this by helping them to reduce errors in dispensing and compounding, improve patient outcomes through medication adherence, provide an intelligent platform for centralizing workflows, optimizing contribution margin through new pharmacy services, facilitating regulatory compliance with smart analytics, and enhancing our customers’ ability to provide value-based care with increased safety and efficiency.

      Omnicell is committed to improving pharmacy operations to enable pharmacists to practice at the “top of their license.” With nearly half a trillion dollars in medication spend annually, and suboptimal outcomes, we know there’s much room for improvement. Our vision to accelerate pharmacy to perfection includes our mission to be the care provider’s most trusted partner. We will accomplish this by helping them to reduce errors in dispensing and compounding, improve patient outcomes through medication adherence, provide an intelligent platform for centralizing workflows, optimizing contribution margin through new pharmacy services, facilitating regulatory compliance with smart analytics, and enhancing our customers’ ability to provide value-based care with increased safety and efficiency.

      Our Priorities

      We believe we will realize our Vision for the Autonomous Pharmacy by focusing on our priorities as outlined below:

      We believe we will realize our Vision for the Autonomous Pharmacy by focusing on our priorities as outlined below:

      Looking Forward

      A Purposeful Journey: We See a Better Way to Do Business

      Let’s be honest – we’re not there yet in terms of attaining ideal business processes. A journey of a thousand miles begins with a single step. We are taking deliberate steps towards that “better way,” as we work towards our vision to accelerate pharmacy to perfection.

      Let’s be honest – we’re not there yet in terms of attaining ideal business processes. A journey of a thousand miles begins with a single step. We are taking deliberate steps towards that “better way,” as we work towards our vision to accelerate pharmacy to perfection.

      We’ve done great things to improve health outcomes in the communities where we live and work. Omnicell continually innovates to enable safe, accurate medication delivery while helping pharmacies meet business objectives and improve patient care. Our comprehensive medication adherence solutions help pharmacies guide patients, save time, and reduce costs. When patients get personalized, attentive and informative pharmacy care, they’re more likely to adhere to a medication regimen. Our medication adherence solutions include a wide range of medication packaging and packaging supplies to enhance adherence in a variety of non-acute care settings. We offer multi-med adherence cards and single-dose blister cards in addition to software that streamlines packaging and labeling workflows while increasing accuracy. We believe this underscores the positive impact our innovative solutions have on social determinants of health. But we also realize there are significant opportunities to improve medication management.

      As a global citizen, we have contributed to society at large in numerous ways, such as equipment and financial contributions to Mercy Ships; employee participation in charitable giving and volunteering with Bright Funds (including company matching program); our Omnicell Cares program; raising money for prominent charities such as Habitat for Humanity; participating in walk-a-thons for healthcare-related causes and helping with collection drives for families in need; disaster relief programs to donate equipment and assist in recovery efforts after life-changing natural disasters such as hurricanes, tornados, and floods; and most recently, our immediate pandemic response efforts, which have effectively mitigated our employee risks of exposure for those working in the field in “hot zones” around the globe.

      We’ve collected data about our products, processes, some gaps we’ve identified, and the progress we’ve made over time, and we are processing that data to determine its impacts on our business and the risks it presents. We are currently working to determine what the business impacts and risks mean in terms of future goals and targets. We continuously work to ensure that our products and facilities are following regulations related to power consumption, clean air, waste, and other environmental factors. We have implemented specific policies to reduce, reuse, recycle, and reclaim materials. We continually seek to reduce our impact on the environment through innovations in the design and packaging of our products as well as how we operate our facilities. Importantly, we have assembled a team of senior leaders from all walks of the enterprise to shape the future of Innovation, along with Environment, Social Impact, and Governance (ESG) at Omnicell.

      But we know that’s not enough, so our invitation to our stakeholders is to directly engage with us in our journey, to help us get to a better place and do things in a better way, to support our goals of good corporate citizenship. Only then can we provide a full outlook on our Purposeful Journey – where we’ve been, where we hope to go, and how long we expect to take to get there.

      As a global citizen, we have contributed to society at large in numerous ways, such as equipment and financial contributions to Mercy Ships; employee participation in charitable giving and volunteering with Bright Funds (including company matching program); our Omnicell Cares program; raising money for prominent charities such as Habitat for Humanity; participating in walk-a-thons for healthcare-related causes and helping with collection drives for families in need; disaster relief programs to donate equipment and assist in recovery efforts after life-changing natural disasters such as hurricanes, tornados, and floods; and most recently, our immediate pandemic response efforts, which have effectively mitigated our employee risks of exposure for those working in the field in “hot zones” around the globe.

      We’ve collected data about our products, processes, some gaps we’ve identified, and the progress we’ve made over time, and we are processing that data to determine its impacts on our business and the risks it presents. We are currently working to determine what the business impacts and risks mean in terms of future goals and targets. We continuously work to ensure that our products and facilities are following regulations related to power consumption, clean air, waste, and other environmental factors. We have implemented specific policies to reduce, reuse, recycle, and reclaim materials. We continually seek to reduce our impact on the environment through innovations in the design and packaging of our products as well as how we operate our facilities. Importantly, we have assembled a team of senior leaders from all walks of the enterprise to shape the future of Innovation, along with Environment, Social Impact, and Governance (ESG) at Omnicell.

      But we know that’s not enough, so our invitation to our stakeholders is to directly engage with us in our journey, to help us get to a better place and do things in a better way, to support our goals of good corporate citizenship. Only then can we provide a full outlook on our Purposeful Journey – where we’ve been, where we hope to go, and how long we expect to take to get there.

      Our Approach

      Corporate Responsibility: A Strategic Approach

      Omnicell has taken the initiative to consolidate its Corporate Compliance, Privacy, Risk Management, Environmental Health & Safety (EHS), and Business Continuity functions under one executive leading Omnicell Corporate Responsibility initiatives. As such, we are well-positioned to leverage the Risk Management function to assess and remediate climate-related risks (under the Task Force for Climate-Related Financial Disclosures – TCFD). We are also aligned to create targets and measure improvements for Innovation, Environmental, Social, and Governance utilizing frameworks established by the Global Reporting Initiative (GRI), and/or the Sustainability Accounting Standards Board (SASB).

      With this in mind, we are prepared to disclose preliminary findings for Innovation, Environmental, Social, and Governance Indices in the company. Our disclosures will be based on the principles of Governance, Strategy, and Risk Management, with metrics we have captured to date. Targets for improvement will be discussed in our first full Corporate Responsibility report in Spring 2021.

      Omnicell has taken the initiative to consolidate its Corporate Compliance, Privacy, Risk Management, Environmental Health & Safety (EHS), and Business Continuity functions under one executive leading Omnicell Corporate Responsibility initiatives. As such, we are well-positioned to leverage the Risk Management function to assess and remediate climate-related risks (under the Task Force for Climate-Related Financial Disclosures – TCFD). We are also aligned to create targets and measure improvements for Innovation, Environmental, Social, and Governance utilizing frameworks established by the Global Reporting Initiative (GRI), and/or the Sustainability Accounting Standards Board (SASB).

      With this in mind, we are prepared to disclose preliminary findings for Innovation, Environmental, Social, and Governance Indices in the company. Our disclosures will be based on the principles of Governance, Strategy, and Risk Management, with metrics we have captured to date. Targets for improvement will be discussed in our first full Corporate Responsibility report in Spring 2021.

      Setting the Standard

      Omnicell Governance, Strategy, Risk Management, and Goals

      The Governance Committee of the Board of Directors maintains oversight of Omnicell Environment, Social Impact, and Governance (ESG) reporting, providing guidance and authority to the Omnicell Corporate Responsibility function to set targets and measure outcomes across the enterprise. Corporate Responsibility teams up with senior leaders from Human Capital, Quality, Legal, International Business, Manufacturing & Supply Chain, EHS, Data Privacy & Security, Information Technology, Finance, and Investor Relations with the objective to ensure Omnicell ESG priorities are, and will continue to be, relevant to our stakeholders and aligned with our mission, vision, and values as we evolve in our Purposeful Journey.

      By integrating Risk Management, Compliance, and Ethics functions under one umbrella, Omnicell has strategically positioned itself to strengthen protections against legal and regulatory pitfalls.1 Further integrating Omnicell EHS within the Corporate Responsibility function provides a principled approach to managing climate risk and serves to strengthen our resolve to appropriately address climate risk in our overall business strategy and risk management objectives.

      The Governance Committee of the Board of Directors maintains oversight of Omnicell Environment, Social Impact, and Governance (ESG) reporting, providing guidance and authority to the Omnicell Corporate Responsibility function to set targets and measure outcomes across the enterprise. Corporate Responsibility teams up with senior leaders from Human Capital, Quality, Legal, International Business, Manufacturing & Supply Chain, EHS, Data Privacy & Security, Information Technology, Finance, and Investor Relations with the objective to ensure Omnicell ESG priorities are, and will continue to be, relevant to our stakeholders and aligned with our mission, vision, and values as we evolve in our Purposeful Journey.

      By integrating Risk Management, Compliance, and Ethics functions under one umbrella, Omnicell has strategically positioned itself to strengthen protections against legal and regulatory pitfalls.1 Further integrating Omnicell EHS within the Corporate Responsibility function provides a principled approach to managing climate risk and serves to strengthen our resolve to appropriately address climate risk in our overall business strategy and risk management objectives.

      Context and Outlook

      Starting Small, with Big Ambitions

      We have begun our journey with thoughtful and deliberate steps to lead us on this Purposeful Journey. We operate our business with a commitment to actively manage risk, paired with continuous improvement philosophies across the enterprise. The data we are reporting in 2020 sets the baseline – where we are, and where we’ve been. It is important to note that our 2020 consumption data will be affected by COVID-19, as we mandated work from home commencing mid-March 2020 for all employees not directly supporting manufacturing or field service operations. This has naturally reduced our energy needs at all of our office facilities. Our ultimate goal is to set meaningful and relevant targets to conduct our business in a better way – better for Omnicell as well as our customers, employees, investors, and communities.

      We have begun our journey with thoughtful and deliberate steps to lead us on this Purposeful Journey. We operate our business with a commitment to actively manage risk, paired with continuous improvement philosophies across the enterprise. The data we are reporting in 2020 sets the baseline – where we are, and where we’ve been. It is important to note that our 2020 consumption data will be affected by COVID-19, as we mandated work from home commencing mid-March 2020 for all employees not directly supporting manufacturing or field service operations. This has naturally reduced our energy needs at all of our office facilities. Our ultimate goal is to set meaningful and relevant targets to conduct our business in a better way – better for Omnicell as well as our customers, employees, investors, and communities.

      Our Performance

      Innovation: Accelerating for Perfection

      Omnicell has a rich history of leveraging technology to improve operating efficiency for our customers, but that’s just the beginning as we continue on the path to realize our vision of the Autonomous Pharmacy. We believe that our solutions drive meaningful outcomes in the areas of safety, financials, efficiency, compliance, and people (patients and clinicians). Using data intelligence with predictive analytics, we help pharmacies manage inventory and improve performance. Our workflow automation tools give clinicians safe, efficient, secure access to the right medication at the right time. Data-fueled advanced robotics provide sorting, preparation, compounding, and dispensing solutions. We use innovative solutions for our customers to engage and communicate with their patients, and provide effective medication adherence tools for improved patient outcomes.

      Omnicell has a rich history of leveraging technology to improve operating efficiency for our customers, but that’s just the beginning as we continue on the path to realize our vision of the Autonomous Pharmacy. We believe that our solutions drive meaningful outcomes in the areas of safety, financials, efficiency, compliance, and people (patients and clinicians). Using data intelligence with predictive analytics, we help pharmacies manage inventory and improve performance. Our workflow automation tools give clinicians safe, efficient, secure access to the right medication at the right time. Data-fueled advanced robotics provide sorting, preparation, compounding, and dispensing solutions. We use innovative solutions for our customers to engage and communicate with their patients, and provide effective medication adherence tools for improved patient outcomes.

      Omnicell Environmental Insights

      We advocate for environmental protections throughout our supply chain and request that suppliers adopt environmental management practices aligned with our expectations. We have made extra efforts to reduce GHG emissions caused by certain materials and are dedicated to reducing the depletion of the Earth’s ozone layer through policies such as minimizing or eliminating the use of hazardous chemicals and volatile organic compounds (VOCs); complying with the Restriction of Hazardous Substances (RoHS) standards; and restricting suppliers from the use of lead, mercury, cadmium, hexavalent chromium, and brominated flame retardants. We maintain and continually improve our environmental management system (EMS), and where possible, conform to more stringent requirements as dictated by specific markets or customer needs.

      We advocate for environmental protections throughout our supply chain and request that suppliers adopt environmental management practices aligned with our expectations. We have made extra efforts to reduce GHG emissions caused by certain materials and are dedicated to reducing the depletion of the Earth’s ozone layer through policies such as minimizing or eliminating the use of hazardous chemicals and volatile organic compounds (VOCs); complying with the Restriction of Hazardous Substances (RoHS) standards; and restricting suppliers from the use of lead, mercury, cadmium, hexavalent chromium, and brominated flame retardants. We maintain and continually improve our environmental management system (EMS), and where possible, conform to more stringent requirements as dictated by specific markets or customer needs.

      Innovating for Efficiency

      Through energy efficient manufacturing processes, our engineers diligently design products that are more energy efficient, less costly, and more environmentally friendly. Some innovative examples include, but are not limited to:  

      Through energy efficient manufacturing processes, our engineers diligently design products that are more energy efficient, less costly, and more environmentally friendly. Some innovative examples include, but are not limited to:  

      Omnicell Social Factors

      Responsible Sourcing

      Omnicell is committed to complying with the Dodd-Frank Wall Street Reform and Consumer Protection Act regarding the use of so-called “conflict minerals” such as tin, tantalum, tungsten, and gold in the solutions we build. We’re committed to taking reasonable measures to source conflict-free minerals, and encourage our suppliers and partners to do the same. We follow the 5-step process recommended by the internationally recognized OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.

      Omnicell Diversity – Every Voice Counts

      Omnicell’s Core Value of Relationships Matter means equality and inclusion for all people, and intolerance for discrimination of any kind. In the wake of the death of George Floyd, Omnicell’s CEO, Randall Lipps, reinforced Omnicell’s Core Value of Relationships Matter.

      Responsible Sourcing

      Omnicell is committed to complying with the Dodd-Frank Wall Street Reform and Consumer Protection Act regarding the use of so-called “conflict minerals” such as tin, tantalum, tungsten, and gold in the solutions we build. We’re committed to taking reasonable measures to source conflict-free minerals, and encourage our suppliers and partners to do the same. We follow the 5-step process recommended by the internationally recognized OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.

      Omnicell Diversity – Every Voice Counts

      Omnicell’s Core Value of Relationships Matter means equality and inclusion for all people, and intolerance for discrimination of any kind. In the wake of the death of George Floyd, Omnicell’s CEO, Randall Lipps, reinforced Omnicell’s Core Value of Relationships Matter.

      Omnicell Governance

      Doing the Right Thing

      We expect our employees to demonstrate honesty and truthfulness at work, hold themselves and others to the highest standards, keep commitments, follow our processes, always act with integrity, and never, ever compromise our values for business reasons. Our strong Governance Practices and our commitment to acting with integrity are demonstrated below:

      Doing the Right Thing

      We expect our employees to demonstrate honesty and truthfulness at work, hold themselves and others to the highest standards, keep commitments, follow our processes, always act with integrity, and never, ever compromise our values for business reasons. Our strong Governance Practices and our commitment to acting with integrity are demonstrated below:

      Contacts

      Omnicell is continuing to progress on our Purposeful Journey. We are excited about the future and where we are heading as a company. Look for more updates in spring 2021 when we plan to include additional guidance on these baseline metrics as well as insights for many of our exciting programs currently underway or on our roadmap for the future.

      For questions or further information about Omnicell’s Purposeful Journey, please contact:

      Roxanne Turner, Vice President, Corporate Responsibility (Roxanne.turner@omnicell.com)
      Kathleen Nemeth, Vice President, Investor Relations (Kathleen.nemeth@omnicell.com)

      1. Compliance Risk Management: Applying the COSO ERM Framework

      Omnicell is continuing to progress on our Purposeful Journey. We are excited about the future and where we are heading as a company. Look for more updates in spring 2021 when we plan to include additional guidance on these baseline metrics as well as insights for many of our exciting programs currently underway or on our roadmap for the future.

      For questions or further information about Omnicell’s Purposeful Journey, please contact:

      Roxanne Turner, Vice President, Corporate Responsibility (Roxanne.turner@omnicell.com)
      Kathleen Nemeth, Vice President, Investor Relations (Kathleen.nemeth@omnicell.com)

      1. Compliance Risk Management: Applying the COSO ERM Framework

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