Patterson Companies Inc. (PDCO) 2024年CSR報告「NASDAQ」.pdf

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1、CORPORATE RESPONSIBILITY REPORT2024PATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORT2|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIES404346APPENDIX05About This ReportForward-looking Statements GRI Content IndexSASB Content IndexEnvironmental Data TableSocial Data Table47484849565859OUR COMMITMENT T

2、O ADVANCEMENT 39FOCUSED OPERATIONS0102Letter from President and CEOAbout PattersonESG Approach4571013161821LeadershipEthics,Integrity and Compliance Risk ManagementProduct Safety and Responsible Supply ChainEnvironment392425283236PEOPLE-FIRST CULTURE PASSIONATE ABOUT OUR COMMUNITIES0304Human Capital

3、 ManagementEmployee DevelopmentDiversity,Equity and InclusionOccupational Health and SafetyThe Patterson FoundationCorporate GivingStrengthening Local CommunitiesPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORT3|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIES01OUR COMMITMENTTO ADVANCEMENT We chall

4、enge ourselves to become better every day.This includes improving management of our environmental,social and governance efforts,endowing Patterson with long-term value in a changing world.PATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORT4|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESTo Our Stakeh

5、olders:For more than a century,Patterson Companies has consistently delivered the products and services needed to support our customers.At its core,our purpose is to strengthen the people who keep us and our animals healthy.While we do so by providing our dental and animal health customers in North

6、America and the United Kingdom with the latest products,technologies,services and innovative business solutions that enable operational and professional success,our greatest strength comes from our dedicated,knowledgeable employees who deliver unrivaled expertise and unmatched customer service and s

7、upport.Our vision is to be the most indispensable partner for oral and animal health professionals,providing them with both solutions and our unique personal touch.Our core values underlie the execution of our purpose and vision.This Corporate Responsibility Report reflects the current state of work

8、 we have done,consistent with our core values,to develop and advance our environmental,social and governance efforts and provide a foundation for development of,and future report out on,goals and progress.I am grateful for the disciplined focus of our team,their commitment to our values-based cultur

9、e,and dedication to building connections with our customers,communities and other stakeholders.Throughout this report you will find information that aligns with our core values:We are always advancing:We seek to advance our performance with regard to issues that are meaningful to our stakeholders,wi

10、th the goal of creating long-term value.We are focused:We strive to operate our business with integrity and strong governance practices.We are people-first:We invest in our team members and are committed to cultivating a collaborative,responsive and inclusive workplace.We are passionate:We are dedic

11、ated to serving the communities where we live and work,both through our products and services and corporate giving and volunteerism.I believe the efforts reflected in this report lay a strong foundation to drive future progress on our journey.In closing,Id like to express my gratitude for the suppor

12、t of our companys stakeholders.It is because of you that we are able to pursue our Purpose,Vision and Values while enhancing our environmental,social and governance efforts and objectives.Letter from President and CEODon ZurbayPresident and CEOPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORT

13、5|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESAbout PattersonPURPOSEWe Are Patterson.We Strengthen the People Who Keep Us and Our Animals Healthy.VISIONWe will be the most indispensable partner for animal and oral health professionals,guiding them with bold solutions and a personal touch.VALUESWe are P

14、ASSIONATE.We are FOCUSED.We are PEOPLE-FIRST.We are ALWAYS ADVANCING.We are Patterson Patterson supports the oral and animal health markets in North America and the United Kingdom(U.K.).From small,private practices to large group networks and production operations,we guide our customers with bold so

15、lutions and a personal touch.We strive to be not only a distributor but an indispensable partner.Patterson Dental has served the dental industry since our companys founding.Today,Patterson Dental continues to partner with dental practices of all sizes to provide expertise,products,technologies and s

16、ervices needed to grow productive,modern practices and keep them running smoothly.We believe that no other company supports the animal health market like Patterson.We entered the animal health industry in 2001 with our acquisition of Webster Veterinary and expanded with our 2015 acquisition of Anima

17、l Health International,Inc.We provide the software,products,expertise and solutions needed to deliver exceptional animal care and drive profitability across the companion,production and equine markets.Our purpose is clear:We strengthen the people who keep us and our animals healthy.Our storyPatterso

18、ns story dates back to 1877,when two brothers opened a storefront in Milwaukee,Wisconsin.Now,more than 145 years later,Patterson is a publicly traded company headquartered in St.Paul,Minnesota,employing more than 7,500 people across North America and the U.K.Our cultureIts not often you hear the wor

19、d“love”when talking about a companys culture.Yet our teams love what they do.We believe our peoples dedication is driven by the people-first emphasis in our purpose,vision and values.Some of our employees have been here for their whole careers.We know one another,respect one another and know that we

20、 are accountable to each other.At Patterson,we support each others focus and passion,and challenge one another to do better making sure we are always advancing.6|OUR FOOTPRINTDental LocationsAnimal Health LocationsCorporate LocationsPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTPATTERSON C

21、OMPANIES 2024 CORPORATE RESPONSIBILITY REPORT7|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESESG Approach The Patterson value of always advancing inspires us to improve management of our ESG efforts;we believe a focus on issues of importance to our stakeholders can create long-term value in a changing wo

22、rld.We continue to build on ESG efforts undertaken in recent years,including:Creating an ESG Task Force comprised of cross-functional executive and senior leaders to guide strategy and focus on an ESG program that aligns with our business purpose Updating our governance practices to reflect oversigh

23、t of these efforts at the board level Enhancing our company compliance and ethics program through the addition of people,policies,processes and procedures Focusing on effective health and safety practices,reducing our incident rate and our lost time rate Continuing efforts to reduce environmental im

24、pact through minimizing package materials and maximizing efficiencies Hiring a DE&I director to build a strategy to support diversity and inclusion in our workforce Training Patterson managers on inherent bias and inclusive leadership Continuing to expand a formal mentorship program for employees Su

25、pporting students through the Patterson FoundationManagement and oversight Both company management and our board of directors oversee the companys ESG and corporate responsibility initiatives,including reviewing our ESG reporting.Board Pattersons board of directors and its designated committees over

26、see ESG strategy and initiatives in the following ways:Board members provide support as management sets goals and identifies targets for priority topics The Governance and Nominating Committee assists and advises the full board on ESG issues of strategic significance to Patterson The Compensation an

27、d Human Capital Committee reviews the development,implementation and effectiveness of our policies and strategies relating to human capital The Compliance Committee reviews progress and goals relating to environmental and occupational health mattersThe board regularly engages in educational activiti

28、es,and in FY24,ESG topics were among the areas of focus.Management A cross-functional task force of executive and senior leaders led by our chief legal officer oversees Pattersons ESG initiatives at the management level.The task force guided Patterson in conducting our FY24 materiality assessment an

29、d creating the present report.It is responsible for developing ESG strategies and goals,and,through our chief legal officer,provides progress updates to the board on these efforts.PATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORT8|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESMateriality assessmen

30、t In FY24,we added rigor around the process to identify ESG issues relevant to key stakeholders,peers and our industries,assess our current state,lay a foundation to set future goals and transparently report on results.To present a data-driven benchmark of our current state and orient Patterson towa

31、rds setting future ESG goals,we worked with a third party to conduct a materiality assessment that incorporated multiple key ESG frameworks to establish a robust foundation grounded in best practice for ESG reporting.These frameworks include:the Global Reporting Initiative(GRI),which provides widely

32、 used sustainability reporting standards;elements of the Task Force on Climate-related Financial Disclosures(TCFD);and the 17 United Nations Sustainable Development Goals(SDGs),which countries have adopted as a call for action on peace and prosperity while pursuing climate action and environmental p

33、rotection.We also examined three ESG data and standards organizations relevant to our industries:MSCI,which measures a companys resilience to long-term,industry-material ESG risks Sustainalytics,which supports investors in integrating sector-specific ESG information into their decision-making Sustai

34、nability Accounting Standards Board(SASB)Health Care Distributors standard,which allows companies to report on industry-relevant sustainability issues in a comparable wayIn addition,we reviewed a selection of peer companies and leading industry vendors,against which we created a benchmark of materia

35、l topics.To incorporate a company perspective,we conducted a written survey of our senior leadership team and interviews with executive leadership and members of our board of directors.The results of this research and engagement resulted in the material topics as presented in the matrix on this page

36、.Together,these inputs identified the top ESG topics most relevant to our business and industries,as well as opportunities to report about them.They are the basis of our reporting on the current state of our efforts,and we expect to provide updates periodically in future reports.While this document

37、describes matters that may be“material,”“substantive,”“significant”or similarly described in the context of our ESG priorities and related activities,such description does not necessarily equate to the level of materiality of disclosures required under the U.S.federal securities laws and these terms

38、 are not used,or intended to be construed,as they have been defined by or construed in accordance with such laws,or as these terms are used in the context of financial statements and financial reporting.Statements contained herein speak only as of the date made,and may be updated periodically in fut

39、ure reports.MATERIALITY MATRIXExternal Stakeholders PerspectivesIndustry PerspectivesLocal CommunitiesEmploymentTraining&EducationCustomer Health&Safety(Counterfeit Drugs)Occupational Health&SafetyDiversity&Equal OpportunityCustomer Privacy/CybersecurityClimate Change Risk&ResilienceEmissions&Energy

40、MaterialsMarketing&LabelingAnti-CorruptionGovernanceEthics&IntegrityIncreasing ImportanceIncreasing ImportanceEnvironmentSocialGovernance9|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTFOCUSED OPERATIONS 02We are focused on delivering results in the

41、 right way.We strive to operate our business with integrity and in ways that support protection of the environment.10|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTDelivering results in line with our purpose and values begins with strong governance

42、practices,through which our leadership can have a positive impact across the company and be accountable to all stakeholders.Role of the board and its committeesAn active board of directors leads Patterson by working in cooperation with executive and senior management to maintain high standards of bu

43、siness practice across operations.Our board size is designed to foster directors participation in the oversight of Patterson.With a broad set of responsibilities,our board and its designated committees provide oversight including with respect to company strategy,human capital management,enterprise r

44、isk management,and ESG matters.Our board of directors currently has four committees:The Audit and Finance Committee assists the board in its financial oversight responsibilities by:reviewing and overseeing the integrity of our financial statement and other financial information that is provided to o

45、ur shareholders and others;overseeing our system of internal controls and disclosure controls;reviewing with our accounting staff and independent registered public accountants the scope of our audit and related matters;reviewing the appointment of the senior internal auditing executive and the perfo

46、rmance of our internal audit function;overseeing our independent registered public accountants;and overseeing and reviewing controls and procedures related to sustainability data and the status of any environmental audit activities.In addition,the Committee reviews our strategies,policies and intern

47、al controls relating to information technology,data privacy,data protection and cybersecurity(including network security,cloud security and physical security),with respect to corporate goals,industry trends and competitive advantages.The Committee also reviews certain finance matters,including our a

48、nnual capital budget and capital allocations.The Compensation and Human Capital Committee assists the board in its executive compensation and human capital oversight responsibilities by approving executive officer compensation that is aligned with our business strategies and goals and that rewards e

49、xecutive officers for delivering value to shareholders.In addition,the Committee maintains the group of peer companies Patterson uses to survey executive compensation,considers the results of shareholder advisory votes on executive compensation,oversees our compensation clawback policies and reviews

50、 and modifies stock ownership policies.The Committee reviews annually and discusses with management the development,implementation and effectiveness of the Companys policies and strategies relating to human capital,and reviews our compensation and workplace conduct practices that relate to our value

51、s and desired cultural environment.The Committee also reviews public reporting with respect to human capital.The Governance and Nominating Committee assists the board in its director nomination and governance responsibilities by:recommending qualifications for and identifying and recommending direct

52、or nominees;developing criteria and policies for board service,including seeking to have diversity of experiences and backgrounds;overseeing matters of corporate governance;advising the board on ESG matters and overseeing sustainability,corporate social responsibility and corporate citizenship matte

53、rs;reviewing the performance of our CEO;and recommending a succession plan for our board and CEO.In addition,the Committee oversees annual board evaluations,board orientation and continuing education programs,and director compensation.The Committee also reviews corporate responsibility reports and m

54、akes recommendations to the board regarding shareholder proposals.The Compliance Committee assists the board with its compliance oversight responsibilities by monitoring our compliance with applicable laws and regulations in the jurisdictions in which we operate.In addition,the Committee reviews the

55、 results of compliance-related audits,reviews any violations of the Code of Conduct,monitors completion of employee training requirements and coordinates with the Audit and Finance Committee on oversight of matters of mutual interest.The Committee reports to the board on key compliance and regulator

56、y initiatives and the evolving regulatory landscape.Each committee has a separate chair and its own charter,and these are available on our website.On an annual basis,each committee reviews its respective charter and determines whether it believes any changes are necessary or beneficial in light of t

57、he ever-changing landscape of corporate governance and best practices.Leadership11|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTPolicies and guidance The board of directors has adopted two key policies our Corporate Governance Guidelines and our Co

58、de of Conduct to facilitate compliance with applicable laws and regulations,and to provide clarity about roles and responsibilities for oversight.Both policies are available on our website.Our Corporate Governance Guidelines address the operation of our board.They cover various governance topics,inc

59、luding:The role of our board of directors The composition of our board and selection of directors Functioning of our board and its committees Conduct and ethics standards for directorsThe Governance and Nominating Committee and the full board review our Corporate Governance Guidelines and update the

60、m periodically in response to changing regulatory requirements,evolving practices and any other relevant circumstances.Our Code of Conduct provides an overview of applicable laws,regulations and company policies.In 2023,all directors attended a live training on anti-corruption.We further discuss the

61、 Code of Conduct in the Ethics,Integrity and Compliance chapter of this report.Board education For newly appointed directors,we provide board orientation and training to assist in successful onboarding,including interviews,educational materials and information about our businesses.In the spirit of“a

62、lways advancing,”we encourage continuing education for all of our directors and dedicate a meaningful portion of a board meeting each year to a specific area of interest or emerging topic,the most recent of which concerned artificial intelligence.Board members also have access to a variety of third-

63、party educational resources,which many have taken advantage of,including the National Association of Corporate Directors.In addition,we have developed committee-level orientation materials.We have found that committee-specific orientation efficiently and productively allows a new member to understan

64、d their committees role and how they can contribute.It also enhances our current committee members knowledge about evolving responsibilities in the context of the changing regulatory and governance landscape.Stakeholder engagementOur board is able to consider the views of employees and investors thr

65、ough regular communication with senior management.We value the voices of our internal and external stakeholders including customers,suppliers,industry associations,shareholders,employees and communities and their opinions and insights help to inform our corporate responsibility strategy,product port

66、folio,process and business improvements,as well as identify opportunities for growth and innovation.Board leadership and independenceOur non-executive board chair provides leadership to our board,provides support and advice to our CEO,fosters an environment conductive to effective communication amon

67、g directors and senior management,and performs various duties and responsibilities as our board determines.All members of our board of directors,including our non-executive board chair,are independent(as defined under applicable listing standards),with the exception of our CEO.All committee members

68、are independent.Regular executive sessions of independent directors take place at our board meetings without management present and are chaired by our non-executive board chair.Likewise,executive sessions regularly occur at meetings of our committees and are conducted without management present.12|P

69、EOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTBoard diversity,refreshment and evaluationMembers of our board serve one-year terms and are elected on an annual basis.As expressed in our Corporate Governance Guidelines,we value a board composition that

70、 reflects diversity of experiences and backgrounds among members.Thus,as we look to refresh the board,we strive to consider candidate pools that include diverse individuals to ensure we bring multiple perspectives to the boards discussions and oversight responsibilities.Our current board includes fo

71、ur directors(40%)whose demographic background is racially or ethnically diverse and four directors(40%)who are women.We also believe we have balance on the board among active executives and retired leaders.In FY24,we made enhancements to our board of directors,refreshing our board composition and ga

72、ining two additional board members.Our newest directors bring valuable skillsets in customer experience and corporate development that we believe complement the knowledge already on our board.The board regularly evaluates its governance-related activities.We consider our evaluation approach to be a

73、success story,with its focus on our skills matrix as well as evolving best practices and business needs.We use a variety of methods to ensure an honest evaluation of each directors performance,including exercises conducted by external third parties,written evaluations and oral interviews.BOARD DIVER

74、SITYof our current board are womenof our current board has a demographic background that is racially or ethnically diverse40%40%13|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTEthics,Integrity and ComplianceThe way we conduct business is highly imp

75、ortant.We strive to protect the trust that our business partners,customers and consumers place in Patterson.We endeavor to operate with the highest standards of ethics and integrity,and to continue to improve and strengthen compliance at every level of our operations.Management and oversight Patters

76、ons ethics and compliance program is overseen and managed by our chief compliance officer,who reports directly to our CEO and indirectly to the Compliance Committee of our board.The compliance team advances awareness of compliance and ethics policies across facilities and operations,through subject

77、matter expertise,centralized policies and training.In partnership with stakeholders across the company,the team provides insights on key issues such as ethics,data privacy,hazardous materials,pesticides,environmental matters and adherence to Food and Drug Administration(FDA)regulations.Our chief com

78、pliance officer provides quarterly reports on the compliance and ethics program to:our management compliance committee,which includes cross-functional executive and senior leaders and oversees our program at the management level;and the Compliance Committee of the board.Both committees receive the s

79、ame information to promote transparency about the program as a whole,as well as about compliance risks and mitigation efforts.We follow the U.S.Department of Justices compliance program framework,with the board and Patterson leadership setting expectations for strong compliance throughout the compan

80、y.14|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTPoliciesOur Code of Conduct is a global policy that applies to every employee and member of our board.It sets out expectations for ethical business practices,including key issues such as anti-corrup

81、tion,bribery and antitrust.The Code is designed to deter wrongdoing,promote ethical conduct,including the handling of actual or apparent conflicts of interest,and support compliance with applicable laws and regulations.The Code of Conduct also reinforces our Purpose,Vision and Values,which express w

82、ho we are and what we stand for,and underpins the way we interact with key stakeholders.Compliance with the Code is a requirement for maintaining employment at Patterson.Our employees receive mandatory,role-specific training,which includes policy acknowledgement and proficiency testing to promote co

83、mprehension.We investigate reports of non-compliant behavior and take necessary action based on the results.We maintain policies to help manage our business with transparency,competence and integrity,which we believe supports the best interests of our key stakeholders.New policies generally go throu

84、gh an approval process with the compliance and regulatory team,which engages relevant stakeholders in development and rollout.With the launch of a new policy,we conduct a communication campaign for relevant employees and internal stakeholders and send reminders about reviewing the policy and taking

85、any other required action.We also have Partner Compliance Standards,which are intended to align our suppliers with our ethical expectations on issues including labor and human rights,bribery,conflicts of interest,and environment,health and safety conditions.We share Pattersons Partner Compliance Sta

86、ndards with suppliers during the contracting process for their awareness.Anti-corruption and briberyPatterson strives to comply with applicable laws and regulations governing anti-corruption and bribery,including the Foreign Corrupt Practices Act,as well as other relevant international anti-corrupti

87、on conventions.This supports our commitment to doing business ethically and lawfully,as expressed in our Code of Conduct.This commitment extends to our supply chain.Our Partner Compliance Standards provide that suppliers may not directly or indirectly provide or receive improper business advantages

88、by offering,giving or receiving anything of value in exchange for preferential treatment.Misconduct including bribery is neither permitted nor tolerated by Patterson.All employees receive training on anti-corruption and bribery through our Code of Conduct training.In addition,we provide further trai

89、ning on anti-corruption and bribery for certain employees based on their job function.15|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTRaising a concernWe endeavor to create a workplace culture where compliance concerns can be raised and questions a

90、sked,without fear of retaliation.Patterson encourages employees to report their concerns,regardless of magnitude,promptly.Patterson does not tolerate any form of retaliation against employees for good-faith reporting of concerns about alleged misconduct or legal violations within the company,or to a

91、 government authority.We also forbid retaliation against employees for assisting in an investigation of alleged misconduct or legal violation.“Speak Up Patterson,”an independent service monitored by a third party,is our confidential helpline,available 24-7 online and by telephone in multiple languag

92、es.Reports can be made anonymously.The helpline allows employees,business partners and others to ask questions about ethical expectations and report concerns.We promote the helpline through our communication campaigns on the Code of Conduct,and the Partner Compliance Standards make our suppliers awa

93、re of the helpline.When a report warrants further inquiry,we follow an investigation process.All investigations are documented,and we provide updates to relevant parties,as appropriate.We audit the integrity of investigations and the application of disciplinary measures.Our compliance team reports i

94、nvestigations to the management compliance committee as well as the Compliance Committee of the board on a quarterly basis.In addition to Speak Up Patterson,employees may also directly reach out to a member of the compliance team,human resources,the legal department or their manager with questions o

95、r concerns related to business ethics.Tracking effectiveness Patterson strives for compliance with federal regulations,necessitating tracking of inventories,licenses and more.To monitor our operations for adherence to policies,laws and regulations,we use monitoring and data collection.Among other me

96、asures:We generate weekly or monthly reports on training completion,audit results and more We conduct regular inventory counts on all regulated products,with frequency depending on a products risk level We escalate deviations and significant issues to the compliance team for investigationPatterson r

97、egularly tracks several metrics to measure the effectiveness of our compliance efforts,including training completion and proficiency levels.We strive for 100%compliance training completion by all employees across the company on role relevant topics.We provide tracking metrics and KPIs quarterly to t

98、he management compliance committee and to the Compliance Committee of the board.We also provide relevant teams across the company with weekly and monthly reports from real-time monitoring.16|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTRisk Managem

99、entAt Patterson,our full board oversees the most critical risks to our company,with support from its committees.While the board oversees risk,senior management is responsible for identifying,assessing and managing risk.We embed risk management practices into our business planning and management proc

100、esses.Discussion and review of key enterprise risks,risk management strategy and mitigation plans occur on an annual basis between the board and senior management.Risk assessmentTo assess our enterprise risk,Patterson conducts an annual survey of approximately 100 senior leaders and other employees

101、with relevant knowledge.For top risks,we create action plans and assign each one to an executive leader,as one piece of our cross-functional risk management approach.We directly support the appropriate teams and departments within the company to drive mitigation of those risks.We recently refined ac

102、countability for each item within the action plans by assigning specific ownership.In addition to the annual formal risk analysis,our compliance team conducts a quarterly review of risk,and the internal audit team engages in regular risk assessments of selected issues,such as fraud.Our internal audi

103、t team reports to Pattersons chief financial officer and,to maintain independence,has direct communication with the Audit and Finance Committee of the board.Specific oversight roles for our board committees include:BOARD COMMITTEEBOARD OVERSIGHTAudit and Finance CommitteeFinancial,cybersecurity,inte

104、rnal control over financial reportingCompensation and Human Capital CommitteeExecutive officer compensation and human capital mattersGovernance and Nominating CommitteeBoard composition,corporate governance,ESG,reputationalCompliance CommitteeCompliance with applicable laws and regulations17|PEOPLE

105、INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTSpotlight on cybersecurityWe rely on information systems in our business to obtain,rapidly process,analyze and store customer,product,supplier and employee data to conduct our business.We take steps designed to

106、 detect,mitigate,and remediate vulnerabilities in our information security systems.Our processes for assessing,identifying and managing material risks from cybersecurity threats are incorporated into our overall enterprise risk management framework.Our chief information security officer(CISO)is resp

107、onsible for developing and implementing our cybersecurity risk management and information security program,including regularly reporting on cybersecurity matters to management and the Audit and Finance Committee of our board.Our CISO has over 25 years of experience covering a wide range of enterpris

108、e information technology and information security programs for large,global corporations,and has multiple industry certifications,including as a certified information systems securities professional.Our CISO reports to our chief information officer,who has over 30 years of information technology exp

109、erience.Our risk management approach We take a cross-functional approach to cybersecurity risk,which includes input from information security,information technology,legal,compliance,internal audit,finance and operations,as appropriate.Under oversight of our board,including its Audit and Finance Comm

110、ittee,our senior management,information security team and our cybersecurity risk committee(comprised of key executive and senior leaders from primary corporate functions)devote resources to cybersecurity and implement risk management processes designed to adapt to the changing cybersecurity landscap

111、e,respond to emerging threats and proactively coordinate our people,processes and procedures to respond to cybersecurity incidents.We have operationalized a written incident response plan designed to assess,identify and coordinate among various functions the response activities to cybersecurity inci

112、dents and determine the impact of any such cybersecurity incidents that may jeopardize the confidentiality,integrity or availability of our information systems or adversely affect our business and information systems.In the event of a significant cybersecurity incident,the incident response plan pro

113、vides guidance on roles,responsibilities and procedures and reporting processes.The 2023 Global Risks Report from the World Economic Forum highlights widespread cybercrime and cyber insecurity in its top ten rankings of the most severe risks over the next decade.Training and testing:Targeting greate

114、st risks and needsPatterson conducts annual security awareness training for all employees.We conduct an additional phishing prevention campaign with higher-risk groups of employees.In addition,we provide specialized training based on actual need.By assessing our peoples knowledge before assigning tr

115、aining,we ensure a better use of everyones valuable time and the companys resources.In FY22,we conducted a Security Awareness Proficiency Assessment of 6,000 employees with a 63%response rate.The proficiency survey allowed us to identify the areas of greatest need for training and has informed secur

116、ity awareness training in the following years.We also conduct targeted trainings and add additional security for groups of employees based on risk,including key executives and those who lead human resources,finance,coding or SOX compliance work.18|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON C

117、OMPANIES 2024 CORPORATE RESPONSIBILITY REPORTProduct Safety and Responsible Supply ChainPatterson is proud of being a full-service supplier for the people who keep us and our animals healthy.As we source and distribute services and products,we have an opportunity to make a positive impact on health

118、and safety.We have various strategies for addressing the risks that are inherent to our business,in particular the distribution of pharmaceutical products to dental and veterinary practitioners.We have established strategies and processes to limit unauthorized trading(gray market)and product diversi

119、on and we follow the guidance of our manufacturing partners on claims related to their products.Management and oversightOur compliance team and supply chain team share the responsibility of managing the companys efforts around product safety,labeling and supply chain controls.Our chief compliance of

120、ficer reports on these matters to the Compliance Committee of the board,as needed.Our roleFrom the time products are loaded onto our dock until they reach our customer,we leverage policies,procedures,employee training,communication,auditing and monitoring to maintain product safety and comply with a

121、pplicable laws and regulations.Our internal policies address compliance with such regulations.We have monitoring protocols and controls designed to identify and prevent diversion risk for pharmaceutical products and controlled substances.PROCEDURES FOR PRODUCT SAFETYPatterson strives to incorporate

122、high standards of quality and safety during the phase of the products lifecycle over which we have control.PATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORT19|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESAssessing productsWe work to maintain product integrity by following manufacturer guidelines

123、for storage and handling requirements of pharmaceutical products we distribute.For regulated products,we conduct due diligence and vetting of potential new vendor partners prior to onboarding them.Pharmaceutical products are onboarded by our team of licensed and skilled pharmacists,who work to ensur

124、e the prescription drugs we distribute are themselves compliant,and the level of internal controls needed by Patterson is applied.The teams handling our products are assigned role and function relevant training,and we track completion rates of all training across the enterprise with goal of achievin

125、g 100%.Facilities and storageSeveral Patterson facilities are accredited by the National Association of Boards of Pharmacy,which governs a host of requirements,including cold storage and cleanliness practices.This aligns with several elements of ISO standards that are relevant to distributors of pha

126、rmaceutical products.Inventory and tracingWe work to keep our customers safe by seeking to minimize diversion risk of the pharmaceutical products we distribute.Our operations teams conduct inventory counts as part of our operational controls.The frequency of the inventory count depends on the risk l

127、evel we assign to the product.Per our internal procedures,any anomalies are reported to our compliance team,which promptly conducts any necessary investigation.The level of risk of the product determines the extent of our monitoring.For example,controlled substance products pose the highest risk and

128、 are therefore monitored on a stricter cadence.This helps us appropriately track and monitor our inventory to minimize diversion risk.We also partner with our manufacturers and work to support any recalls by tracking products and following manufacturer instructions to retrieve products from customer

129、s as needed.Our internal processes align with FDA requirements for distributors related to recalls.20|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTMonitoring our supply chainWe source a wide range of specialty materials from an international networ

130、k of suppliers.We endeavor to review and vet potential new suppliers,and we require our vendors globally to adhere to our Partner Compliance Standards.We update our processes and procedures related to third-party controls to keep pace with industry standards and guidance.Reviewing suppliers We rely

131、on our supply partners to provide safe products for our customers.With this in mind,Patterson expects its suppliers to conduct themselves in an ethical manner and to comply with applicable laws and regulations.Certain third-party vendors are subjected to a due diligence process and vetting to proact

132、ively identify potential risks and drive compliance with applicable laws and regulations.We use a risk-based approach to review potential new suppliers in the U.S.Products that carry a Patterson label receive rigorous vetting,including as to quality controls and quality agreements,in addition to the

133、 general due diligence process for relevant third parties.Approved suppliers for private label products require both a general contract as well as a quality agreement to track FDA or Health Canada regulations(as applicable).Our Partner Compliance Standards address avoidance of underage labor and oth

134、er human rights issues,conflict minerals,environment,health and safety conditions,and anti-corruption,among other topics.Ongoing monitoring Certain of our supplier contracts include language about following our Partner Compliance Standards.If non-compliance is observed or reported,we expect supplier

135、 correction as a condition for continued engagement.Violations reported to us may result in responses including warnings,suspension or termination of engagement,and referring the matter to the appropriate governmental authorities.Labeling and consumer educationThe FDA strictly regulates claims relat

136、ed to regulated products.While our manufacturing partners are obligated to ensure product claims are substantiated,we work to ensure that we follow any guidance or information provided by our manufacturing partners related to product claims or product safety.Patterson provides information about each

137、 product in close coordination with the manufacturer.For example,weve worked with our manufacturing partners to ensure they provide safety data sheets for their products,which we can pass on to our customers.We train and guide our marketing and sales teams on adherence to approved content and claims

138、 for each product.For the sales teams,this topic is part of mandatory online compliance training,as well as training provided at annual national sales meetings for both the Dental and Animal Health business segments.In addition,we partner closely with our marketing teams to regularly provide guidanc

139、e and training on FDA expectations related to product claims.As part of our efforts to protect the integrity of our supply chain,Patterson seeks to exclude any“gray market”goods by prioritizing sourcing directly from manufacturers,whenever possible.Gray market goods can include products that are rec

140、alled,counterfeit,expired,toxic,mislabeled or banned.For prescription drugs,Patterson strives to comply with the Drug Supply Chain Security Act(DSCSA),which creates an additional layer of security by requiring unit-level tracking and identification of those products.Over the past few years,we have w

141、orked to implement system changes and controls to enable compliance with the DSCSA to further bolster protection for our customers.21|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTSTRATEGIESPilot the use of electric vehicles for our dental service t

142、echniciansEnhance our capability for remote work EnvironmentWe recognize that environmental issues can impact our business operations,employees and communities and strive to track and reduce the environmental impact of our operations through our procedures,policies and systems.Management and oversig

143、htOur board Governance and Nominating Committee has broad oversight of ESG matters.The boards Compliance Committee also receives details on our environmental program through periodic updates provided by our chief compliance officer.Pattersons environmental initiatives are led by the senior director

144、of environmental health and safety(EHS).The EHS team which collaborates with people at Pattersons 150 sites across three countries to manage EHS issues includes a senior environmental and hazardous material manager,a senior safety and health manager,a commercial driver specialist,a radiation safety

145、specialist and an EHS data manager.At the management level,our chief compliance officer oversees our environmental program,which strives to adhere to applicable laws and industry best practices.Our management compliance committee receives detailed program updates on a quarterly basis from both our c

146、hief compliance officer and senior director of EHS.Our environmental initiatives are grounded in common industry practice and based on“plan,do,check,act”principles.They address hazardous waste,non-hazardous waste,hazardous materials,air emissions,refrigerant use,pesticides,water management and spill

147、 prevention and response.We maintain and provide policies,procedures,and training on these topics,and use a multi-layered process of audits to identify gaps in implementation.Identified gaps are tracked until they are filled or otherwise resolved.Employees receive role-appropriate training and are a

148、ccountable to their managers,who undertake a responsibility to ensure their teams complete all required training.Training completion reports are provided to senior leaders on a monthly basis by the compliance team.To inform planning around environmental management,we conduct an annual EHS risk asses

149、sment.Plan progress updates are provided to our management compliance committee by our senior director,EHS,and to the board Compliance Committee by our chief compliance officer,as appropriate.Each Patterson facility self-inspects its EHS compliance monthly using a checklist provided by the EHS team

150、and takes steps to remediate any deficiencies.Facilities also conduct an annual self-assessment on EHS policy compliance,and we use a risk-based approach to conduct additional site audits(based on the size of the site and number of employees),averaging 15 audits per year across our operations.Instal

151、l electric charging stations for employee and visitor vehicles Evaluate feasibility of renewable energy from utilitiesEvaluate use of solar generation,where practical22|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTEmissions We have conducted inform

152、al data assessments to understand our greenhouse gas(GHG)emissions,and are currently in the process of establishing a formal strategy to gather and assess our GHG data using accepted protocols and methodologies.A periodic GHG emissions inventory will provide insight into the state of our emissions a

153、nd opportunities for improvement.Vehicle fleet To mitigate emissions from our vehicle fleet,we intend to change 10%of our fleet in California to electric vehicles by December 31,2025.Using information gained through this pilot,we will evaluate feasibility to expand EV vehicle use in other regions.In

154、 the U.K.,we require new company vehicles to be fully electric or plug-in hybrid vehicles.Our entire U.K.vehicle fleet meets the latest EU emissions standards(Euro 5).At Spitfire House,our warehouse and distribution facility in Stoke-on-Trent,U.K.,48 parking spaces are equipped with electric vehicle

155、 chargers.Other strategies for reducing vehicle emissions in our U.K.operations include:Right-sizing the vehicle for each shipment to reduce gasoline consumed Using live engine data to improve fuel efficiency Selecting vehicles based on optimal miles per gallon Examining utilization of existing flee

156、t to minimize total number of vehicles Working with delivery partners to minimize miles driven Buildings We evaluate our facility needs to optimize efficiencies and seek opportunities to maximize the use of our real estate.Since 2017,we have reduced our global footprint by 700,000 square feet throug

157、h consolidation of our facilities.We also work to reduce emissions that come from heating and powering our offices,distribution centers and other facilities by leveraging energy-efficient building systems,where appropriate.For example,our fulfillment center in Dinuba,California,derives 70%of its ene

158、rgy from a rooftop solar array.Spitfire House incorporates features such as solar power,energy efficiency,rainwater harvesting,provision of showers to encourage active mobility for commuting,and landscaping using native species.We have identified each facility that can physically support a solar ins

159、tallation,a step towards increasing the share of renewable energy in our electricity mix.Costs and potential emission reductions have been estimated to support decision-making.Some buildings have motion sensors to conserve electricity on lighting,and we plan to expand this to other buildings.Current

160、ly 10%of our locations use LED lighting,which is an area of opportunity for reducing our electricity consumption.At Pattersons corporate headquarters,we run a“Go Green”campaign to promote sorting,composting and recycling materials to help reduce overall waste.WaterPattersons water management policy

161、focuses on efficient water use and the proper discharge of wastewater and stormwater runoff.It applies to both irrigation and sanitary water use.Consumption Patterson locations minimize water use to preserve community resources by promoting water conservation with employees,correcting water leaks an

162、d avoiding the use of water for cleaning when dry methods can be effective.We use reclaimed water for non-potable uses,such as irrigation,in the locations where it is feasible.We are also pursuing landscaping changes that will require less irrigation,particularly in water-scarce areas such as Califo

163、rnia.Discharge In settings where municipal treatment systems are available,we discharge wastewater according to our permits or local standards.We report any spills that enter a municipal treatment system.We minimize outside storage of materials to avoid pollutants from entering stormwater,and do not

164、 wash,clean or flush equipment outside.23|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTHazardous wastePatterson monitors hazardous waste data and has a process designed to enable proper third-party management of waste.Our standard operating procedu

165、res for hazardous waste management include a waste log,waste manifests,multi-part form return copies and reviewing to confirm that forms were received.We take care when working with hazardous waste.We seek to ensure waste,including any damaged or expired product,is safely stored and disposed of.We a

166、lso focus on training and compliance to manage the impact of hazardous waste and we maintain several policies,including our standard operating procedures on management of hazardous waste,medical and potentially infectious wastes and used X-ray tube heads.In the U.K.,pharmaceutical waste is required

167、to be incinerated and we have reduced the total amount of incinerated waste from 20 tonnes/year to 5 tonnes/year through training and improved separation of waste materials.Reducing materials and managing wasteWe reduce material use and minimize waste to help preserve natural resources and reduce co

168、sts.Our efforts address both the materials we receive from suppliers as well as our own packaging.Inbound materials Our largest recycling opportunities are materials from suppliers packaging,such as cardboard,wooden pallets and filmy plastic.We recycle each material separately where municipal waste

169、infrastructure is locally available.We also partner with our suppliers to minimize the materials used to ship product to us,such as by using thinner boxes and right-sizing boxes.Our procedures for handling waste,outlined in our policies,call for preserving the value of recyclable materials.Our locat

170、ions have established collection points for materials that can be recycled through local infrastructure.We provide a list of approved recyclers for each location.Patterson requires all employees to complete corporate waste training,which includes recycling procedures.We audit locations to ensure the

171、se procedures are followed.Specialty handling In the U.K.,customers can recycle batteries at a facility we provide in conjunction with our packaging compliance operator.U.K.facilities also recycle fluorescent lighting with a specialized waste company,recycle toner cartridges with their manufacturer

172、and donate used IT equipment to a non-profit mental health organization.Outbound materials Packaging products for shipping presents another opportunity to be efficient and minimize our environmental impact.Patterson recognizes that packaging is the aspect of our sustainability program most directly

173、visible to customers.In addition,customers are the ones who dispose of or recycle our packaging.Packaging elements that are not currently recyclable such as thermal insulation or frozen gel packs present opportunities for improving our environmental impact.We combine multiple orders into a single pa

174、ckage where possible.We use a cartonization technology to find the optimal package size for shipping that reduces material waste.We also strive to use cardboard that has been certified as produced using sustainable forestry practices and to source recycled material for our packaging.In the U.K.,we u

175、tilize plastic totes made from recycled material,which we use and reuse instead of shipping cardboard boxes.In the U.K.,we partner with a specialty waste management company to recycle plastic and cardboard.Annually,we recycle:tonnes of cardboardtonnes of plastic35228of our non-recyclable waste is sh

176、redded into an inert state for landfilling or converted to electricity for the national grid in the U.K.95%24|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTPEOPLE-FIRST CULTURE 03We build lasting relationships and invest in our team members,to culti

177、vate a collaborative,responsive and inclusive workplace.25|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTHuman Capital ManagementPeople are the foundation of who we are.Only with talented employees can we run our business to the highest standard and

178、 meet our customers needs.As of April 2024,we had approximately 7,600 full-time employees in the U.S.,Canada and U.K.,of which approximately 6,200 were employed in the U.S.To attract and retain the right people,we provide meaningful benefits,a collaborative culture and career opportunities with the

179、potential for advancement.Management and oversight Pattersons chief human resources officer leads our human capital management division,a dynamic and multifaceted team committed to fostering a thriving workforce.The division is comprised of multiple integral units,which together collaborate to deliv

180、er comprehensive talent development solutions and strive to ensure alignment of human capital strategies with organizational goals.Talent management teamThe talent management team spearheads initiatives across the entire employee lifecycle,from talent attraction and planning to onboarding and develo

181、pment.This team is dedicated to creating a robust pipeline of talent through strategic recruitment and succession planning.By focusing on retention and performance management,the talent management team seeks to ensure that employees are engaged,motivated and equipped to achieve their full potential.

182、These efforts are pivotal in nurturing a culture of continuous learning and development,driving both individual and organizational success.HR analytics teamThe HR analytics team harnesses data to inform and optimize HR strategies and practices.Analytical expertise enables the organization to make da

183、ta-driven decisions that enhance talent planning,improve employee engagement and drive business outcomes.The HR analytics team plays a crucial role in identifying patterns,predicting future trends and offering actionable recommendations that support effective talent management.Quarterly reports are

184、provided to our chief human resources officer,who updates our board Compensation and Human Capital Committee on such trends and patterns,as appropriate.Human resources business partners(HRBPs)HRBPs serve as strategic advisors to business leaders,aligning HR initiatives with business objectives.They

185、work closely with leadership to understand the unique needs of each department,providing tailored solutions designed to enhance workforce effectiveness.HRBPs facilitate the implementation of HR policies and programs,striving to ensure they are integrated seamlessly into business operations.Their par

186、tnership with business leaders is essential for fostering a cohesive and responsive HR function that supports the organizations strategic direction.Employee benefits and compensationThe employee benefits and compensation team plays a critical role in designing and managing comprehensive compensation

187、 packages and benefits programs.This team seeks to ensure that our offerings are competitive and aligned with the overall organizational strategy.By continuously evaluating market trends and internal data,they develop compensation structures that seek to attract,retain and reward top talent.The team

188、 is also dedicated to enhancing employee well-being through a diverse range of benefits,including health and wellness programs,retirement plans and work-life balance initiatives.The collaborative efforts of these teams are designed to ensure a holistic approach to talent development.From attracting

189、and onboarding new employees to planning for future leadership through succession planning,the human capital management division covers all facets of talent management.26|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTCompensation and benefits As a p

190、eople-first organization,the overall well-being of our team matters.Pattersons total reward philosophy includes market-competitive pay along with a range of benefit choices to meet employees diverse needs,reward performance and strengthen shareholder value.Compensation plans include base pay,sales i

191、ncentives,bonus plans,short-term incentives and long-term incentives.We conduct regular internal reviews of our pay structures.We provide medical,pharmacy,dental and vision plans,giving employees coverage and encouraging preventive care to identify health issues early.Our medical plan offers employe

192、es and their covered dependents the option for virtual visits with medical professionals 24 hours a day,seven days a week,as well as a 24/7 nurseline.Patterson strives to help employees achieve their personal fitness,emotional,finance and work/life balance goals.Through an employee assistance progra

193、m,we offer support to our employees and their dependents with a range of services for thriving in their personal lives and staying safe and well mentally,physically and financially.We also offer resources and support for diabetes,weight management,tobacco use and joint pain.Those on our medical plan

194、s also receive support for themselves and their families during significant health events,like dedicated maternity care management resources for high-risk pregnancies.We believe that flexible family-friendly policies are essential to cultivating a work environment where employees can thrive professi

195、onally without sacrificing essential personal obligations.We offer fully paid parental leave to employees growing their families,including for those becoming parents through adoption or foster care.Patterson supports employee goals for financial well-being through matching contributions to 401(k)ret

196、irement savings(up to 4%),life insurance,company-paid short-term disability insurance and an employee stock purchase plan that allows employees to purchase company stock at a discount.Our financial partners provide educational tools to help our employees keep their financial goals on track.Employee

197、engagement Patterson conducts an annual survey of our employees in the U.S.and Canada to better understand their experiences at work.We engage a third-party provider to administer the survey,protect anonymity and share analysis of results with our managers.Managers are expected to discuss results wi

198、th their teams to set goals that respond to the results.Survey results have prompted recent changes such as adding more wellness options to the employee assistance program.YEAR-OVER-YEAR RESULTSFY23FY24Participation rate(Global benchmark is 75%)80%81%Engagement score(Global benchmark is 75)7476Top S

199、trengths Priorities are clear for focused work Trust my manager Manager acts with integrity in all they do Priorities are clear for focused work Trust my manager Manager acts with integrity in all they do27|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY RE

200、PORTRecruiting and cultivating new talent Patterson participates in job fairs as part of our efforts to attract promising new team members.We also host a summer internship program that supports talent development across the enterprise.Internships are designed to address actual business needs and pro

201、vide real-world experience in students field of interest.We host approximately 20 college students per year.Among the many benefits of the internship program,our employees gain leadership experience by working with their interns.The intern program includes organized group activities,professional dev

202、elopment programming,volunteer events and a final presentation.In addition,we run several initiatives aimed at attracting diverse talent.More information is provided in the Diversity,Equity and Inclusion chapter of this report.YEAR-OVER-YEAR EMPLOYEE HIRESUndisclosedMaleFemaleFY23720401319MaleFemale

203、UndisclosedFY225832962861+137MaleFemaleFY24972572400+25228|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTInvesting in our employees is essential for our success,and Patterson strives to support their progression and career development.We encourage e

204、mployees initiative in taking on new roles and expanding their responsibilities through education and learning.Management Our talent team leads employee learning,leadership development and performance management at the enterprise level.Each business unit has specific development opportunities as wel

205、l,amounting to an extensive network of learning assets across the company.We track and report metrics on employee learning and development.These include the courses being accessed in our online platform,the number of new users and how many employees enroll in,complete and drop programs.Performance m

206、anagement We conduct performance reviews for employees every year.In FY23,93%of the companys eligible workforce in the U.S and Canada completed an annual performance review.Fulfillment center employees are reviewed more often so they can quickly build their skills and advance through operations.Revi

207、ews include setting goals for the employees job performance and growth and reviewing progress.The process centers around a conversation between the employee and their manager,and results in performance-based pay recommendations from the manager.In addition to the annual review process,we encourage e

208、mployees and their managers to informally discuss job performance and goals on a regular basis.Workforce planning We are proud of our history of promoting from within the company.For example,within the last two years we promoted four of our current senior executive leaders from other roles at Patter

209、son.We believe this reflects Pattersons strong professional development,talent review process and succession planning.It also demonstrates our commitment to creating opportunities for our team.As part of a strategic workforce planning approach,we conduct an annual exercise to assess leader-level tal

210、ent.We assess employees potential for future job openings and strive to prepare them for their desired career path,helping the company maintain a pipeline of internal talent for key roles.We update our action plans accordingly to ensure successors are in place for roles across the company.Our chief

211、human resources officer reports to the full board annually on succession planning for key executive roles.“I am proud of our commitment to develop our employees and present internal growth opportunities.Our employee development programs provide unique opportunities to invest in our people and prepar

212、e them for career advancement at Patterson.”Samantha BergesonChief Human Resources OfficerEmployee Development 29|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTMentoring Patterson runs a popular,thoughtfully designed Mentor Program.Now in its fourth

213、 year,the program attracts dozens of participants each year including the mentors and their mentees.Participation grew by over 100%between FY23 and FY24.The program takes place over the course of one year and consists of a monthly facilitated dialogue for networking and professional development,as w

214、ell as monthly meetings between the mentor and mentee.“The Patterson Mentor Program is the best thing I ever did for my personal&professional growth.Being able to spend time with my mentor helped me to grow my confidence and focus on my career path.Without the encouragement of my mentor I would not

215、have had the confidence to apply for a position in another department.I will be starting in my new role next week.Thank you again for offering this program and giving me the opportunity to be a part of it!”Teresa Bilancio MenteeFY2339FY2476Mentors+37FY2343FY2489Mentees+46FY2382FY24165Total participa

216、nts+83MENTOR PROGRAM PARTICIPATION GROWTH OVER THE LAST TWO YEARS30|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTLeadership development We seek to ensure new managers are effective in their leadership roles through our partnership with Franklin Cov

217、ey,a world leader in consulting and training.Our internal training team facilitates the Covey course“The 6 Critical Practices for Leading a Team.”In addition,leaders enterprise-wide complete our Inclusive Leadership program.The training builds awareness and skills in three core areas:identifying unc

218、onscious bias,increasing empathy in personal interactions and facing bias with courage.Inclusive Leadership equips leaders to address the impacts of unconscious bias on decision-making,improve collaboration among groups and take a practical,action-oriented approach to diversity training and inclusiv

219、ity.In FY24,we achieved approximately 86%participation,reaching nearly 800 individual leaders.For leaders at the director level and above in Canada and the U.S.,we offer the Patterson Leadership Academy,an intensive cohort-based development program that takes place every other year.We created the cu

220、rriculum in partnership with Carlson Executive Education at the University of Minnesotas Carlson School of Management.Participants are leaders at Patterson(director-level or higher)and must be nominated to participate.Participants work closely with our executive leadership team and other senior coll

221、eagues across the company to learn firsthand how we approach our business and industries.The experience also creates personal connections which can help elevate each participants career and strengthen networks across our functional teams.Patterson Leadership Academy is six months long,beginning with

222、 a one-week residency at the University of Minnesota for courses in leadership development and business acumen.This is followed by work on an actual Patterson business project,collaborating with an internal sponsor to gather data and present findings and recommendations to executive leaders.The prop

223、osed solutions have a high rate of success and adoption into Pattersons operations.It concludes with a final one-week residency.Our newest leadership development program engages Pattersons emerging sales leaders in the U.S.and Canada.We piloted our Emerging Leader program for dental leaders in 2023

224、and expanded it to include companion and animal health leaders in 2024.Emerging Leader training strives to build participants communication skills,help them develop an enterprise perspective and expand their network across the company.In the U.K.,employees have access to external training to develop

225、 their skills in management and leadership.The courses take place in partnership with local colleges and universities.participation achievedindividual leaders reached90%800+31|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTSkill development Patterson

226、 teams complete a significant amount of training and development each year.As leaders and team members in the U.S.and Canada identify skill-building and other development needs,they can take advantage of learning assets available through Workday.The training library provides thousands of online cour

227、ses for technical,professional and leadership development.In FY24,Patterson employees spent over 3,660 hours on learning experiences through our resource library.In the U.K.,employees can take internal training courses for learning and development related to their roles.In addition,as needed we plac

228、e employees in external courses to further support their growth.Such training is financed by the apprenticeship fund that we maintain in the U.K.As new hires,our dental sales professionals participate in a flexible and efficient onboarding experience.It includes an online,self-paced program for comp

229、letion within 30 days,in-person orientation at the branch,access to Workday and our sales platform(Seismic),and instructor-led virtual courses in the business of dentistry and professional selling.Our sales team has access to additional training on a periodic basis on topics like negotiating and adv

230、anced selling.Our service technician teams participate in upskilling opportunities and completed 8,640 hours of training in FY24.We conduct extensive internal training for our customer support teams.In FY24,they completed 33,139 hours of training.Tuition reimbursement Patterson provides financial as

231、sistance to encourage education,development and professional growth.For all full-time employees,we reimburse up to$3,500 in expenses for courses and other educational programs related to their jobs or careers.In FY24,35 employees took advantage of our tuition reimbursement program.Employees complete

232、d advanced-degree coursework in psychology,oral health,public health and organizational leadership,as well as undergraduate courses in business,software,finance and management.SKILL DEVELOPMENT HOURS3,660hours completed by Patterson employees on learning experiences through our resource library in F

233、Y248,640hours of training completed by service technicians in FY2433,139hours of training completed by our customer service teams in FY24Top Topics/CoursesExcelCustomer ExperienceEmotional Intelligence12332|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY RE

234、PORTDiversity,Equity and InclusionWe believe that a diverse and inclusive workforce strengthens our company.We encourage our teams to bring their authentic selves to work every day to create an environment where individuals from all backgrounds feel valued and respected.In so doing,we not only enric

235、h our workplace culture but also foster innovation and success.We are committed to diversity,equity and inclusion(DE&I)and we are dedicated to championing these principles throughout our organization.Management and oversight In FY24,Patterson took a significant step forward by appointing our inaugur

236、al director of DE&I.This strategic appointment underscores our commitment to a culture supportive of diversity,equity and inclusion and reflects the importance we place on our people-first values and collaborative leadership.This individual brings a consultative approach to leading our efforts in th

237、is vital area,providing updates to our chief human resources officer,who in turn reports on the companys overall progress across business units for DE&I initiatives to our CEO and the Compensation and Human Capital Committees of our board.We leverage DE&I as a catalyst to accelerate growth and innov

238、ation across the enterprise.By fostering a diverse and inclusive environment,we unlock the full potential of our workforce,driving creativity,engagement and superior business outcomes.STRATEGIC PLAN AND FOUNDATIONAL PILLARSBuilding on our commitment to DE&I,we have developed a strategic plan centere

239、d around the following foundational pillars that have been evolving and strengthening over the past five years:TALENT ACQUISITION AND WORKFORCEAttracting and retaining a diverse talent pool to enrich our organizational culture and performance is a priority.EMPLOYEE DEVELOPMENT AND LEARNINGProviding

240、ongoing education and development opportunities that promote DE&I awareness and competencies is essential.MARKETING AND COMMUNITYEnsuring that our DE&I values are prominently reflected in our internal and external communications is critical.EMPLOYEE ENGAGEMENT AND SUPPORTCreating an inclusive enviro

241、nment where all employees feel supported and valued is at the core of our DE&I strategy.33|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTPolicies The Patterson Code of Conduct expresses our commitment to an inclusive workplace and one that is free o

242、f discrimination,harassment,bullying and physical or verbal abuse.It also offers guidance for employees on speaking up about suspected discrimination or harassment.Our employee handbook sets forth policies and expectations that reflect an inclusive approach.It specifies that it is our policy not to

243、discriminate,and that we are committed to ensuring equal opportunities for all.Empowered workforce We recognize that empowering our workforce through a safe and inclusive culture is pivotal to our business impact and overall success.We work to develop a culture that promotes professional growth and

244、acknowledges individual differences,which in turn stimulates engagement,productivity and innovation.We believe the outcomes are tangible:an internal community that is engaged,innovative and productive,as demonstrated by our 81%engagement rate in the 2024 employee engagement survey.Affinity groups Af

245、finity groups work together on community engagement,volunteer efforts,inclusivity and forums for discussing employee experiences that have an impact on their professional lives.Through our affinity groups,we aim to amplify employee voices,providing platforms for skill development,collaboration and i

246、mpact on the business.These communities serve as catalysts for a diverse and inclusive workplace.Our affinity groups play a vital role in driving enterprise-wide awareness and capability in DE&I.Together,we strive to build a workplace where every individual is empowered to thrive and contribute.In F

247、Y24,acting on a recommendation of the Patterson Affinity Zone(PAZ)group for employees who fall into groups that are underrepresented,Patterson added Martin Luther King Jr.Day as a company-paid holiday for employees in the U.S.In addition to PAZ,we have an affinity group for LGBTQA+employees and laun

248、ched our newest affinity group,Women of the Workforce,in FY24.Our executives sponsor the affinity groups and there is a process for creating additional groups to ensure they are appropriately supported for success.External partnerships External partnerships also play a crucial role in supporting our

249、 workforce diversity initiatives.Through these collaborations we leverage additional expertise,resources and networks to access diverse talent pools,gain insights into best practices and expand our reach in creating an inclusive workplace culture.Patterson is a member of Out&Equal,a global non-profi

250、t organization advancing LGBTQA+equality in the workplace.Patterson employees attended the workplace summit in FY24 and virtually in past years.Our commitment to the advancement of women extends beyond our workforce to the industries we serve.Patterson partners with WILMAH,an organization that provi

251、des opportunities to help women succeed at every stage of their careers.We encourage Patterson women to participate in WILMAHs events and mentorship programs.We have served as a WILMAH sponsor for over three years.Through our work with Women in Dentistry,Patterson helps women in the industry connect

252、 and support one another.The organization holds locally focused events in 30 U.S.cities.Patterson leaders provide content and speakers for events.In FY24,we hosted a virtual series of events focused on why and how to network.Over the last year,unique membership in our affinity groups in the U.S.and

253、Canada increased by over30%EXTERNAL PARTNERSHIPSAFFINITY GROUPSBuilding and attracting a diverse workforce Patterson has a diverse customer base and works in all types of communities.It is important that the diversity of our workforce reflect this.To track our progress,we maintain several metrics re

254、levant to diversity.As of April 2024,42%of our workforce in the U.S.and Canada was female.In addition,as of that date,22%of our workforce in the U.S.was ethnically diverse.Patterson strives to provide and develop initiatives that attract,retain and support a diverse workforce.PATTERSON EMPLOYEE DIVE

255、RSITY DATA FY24YEAR-OVER-YEAR DIVERSITY OF NEW EMPLOYEE HIRES DURING REPORTING PERIOD*MaleUndisclosedFemaleof diverse new hiresof diverse new hires 504,10812,9319003,3652,775AGEGENDERMaleWhiteNon-WhiteFemaleUndisclosed34|PATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTPEOPLE INTROAPPENDIXOPE

256、RATIONSCOMMUNITIESFY23720FY22583FY24972+0.8%+2.4%total new hirestotal new hirestotal new hires*Data reflects operations in the U.S.35|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTTalent acquisition Our talent acquisition includes a focus on outreac

257、h and recruitment to expand diversity across our workforce.The team engages with both employees and candidates to share Pattersons efforts and collaborates with managers to source from diverse candidate pools for new positions.Fostering an inclusive workforce that reflects our customer base and thos

258、e with whom we do business benefits our employees,supports talent attraction and has the potential to bolster market reach through engagement and a sense of belonging.People of color We are implementing targeted recruitment strategies to attract qualified individuals from diverse racial and ethnic b

259、ackgrounds.Among these,we:Partner with community organizations that focus on supporting people of color in their career development Attend career fairs and networking events specifically tailored to communities of color Offer mentorship and professional development opportunities,like the Patterson M

260、entor Program,to support the advancement of employees from diverse backgroundsMilitary veterans We are proud to support veterans transition into civilian careers by actively recruiting from the U.S.military community.Our organization values the unique skills,experiences and dedication that veterans

261、bring to the workforce.Among our initiatives,we:Collaborate with veteran-focused organizations such as Hire Our Heroes to identify and recruit top military talent Participate in military career fairs to connect with veterans seeking employment opportunities Provide support for veterans throughout th

262、e recruitment and onboarding process to ensure a smooth transition into our organizationEarly career and students We partner with educational institutions in Minnesota to provide opportunities for students from underserved communities to explore careers in technology and other fields.In support of t

263、his goal,we:Collaborate with organizations like Genesys Works and Cristo Rey High School to offer workplace experiences for high school students Partner with colleges to offer summer internships Provide college scholarships and internship opportunities to support students in pursuing higher educatio

264、n and gaining real-world experience in their chosen fieldsDE&I scholarships We offer scholarships to support qualified students from underrepresented backgrounds in pursuing higher education,particularly in veterinary and dental careers.These scholarships reflect our commitment to diversity,equity,a

265、nd inclusion within our organization and the broader community.Up to four awards are granted per year.To help reach students,we partner with Scholarship America,a large non-profit,private scholarship organization.Supplier diversity Patterson aims to promote equity,inclusion and economic empowerment

266、within our supply chain.By partnering with qualified businesses owned by individuals from diverse racial and ethnic backgrounds,women,veterans,LGBTQA+individuals and people with disabilities,we enrich our supply chain and a diverse business ecosystem.We appreciate the importance of supplier diversit

267、y in driving innovation,enhancing competitiveness,and creating shared value for all stakeholders.Understand-Gain better insight and understanding of individuals in our communitiesNetwork-Build relationships with each other and the community;gain access to resourcesInclude-Create a welcoming,non-judg

268、mental space for all employees to bring their authentic selves to work every dayThrive-Establish and grow through achieving goals together and creating a lasting impactEducate-Learn from internal and external resources and each other;raise awarenessSupport-Work toward a more inclusive,diverse place

269、of employment that provides equal support for all36|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTOccupational Health and SafetyKeeping employees safe and healthy is essential to Pattersons value of putting people first.We are committed to high heal

270、th and safety standards and have systems in place designed to manage risks and drive compliance with applicable laws and industry best practices.Management and oversight Pattersons senior director of EHS leads our program,with oversight from our chief compliance officer.Our EHS team collaborates wit

271、h safety liaisons and managers at Pattersons 150 sites across three countries.The safety liaison completes monthly compliance audits,runs workgroup safety huddles to provide key safety reminders and communicates any updates in health and safety practices and expectations.The liaison also supports ma

272、nagement by driving training completion.Several of our larger sites have safety committees led by the safety liaisons,which meet monthly to discuss recent incidents,hazard reporting and safety initiatives.Detailed updates are provided quarterly to our management compliance committee.They cover our a

273、nnual risk assessment,the annual environmental health and safety plan,key project updates,recent wins and challenges and metrics such as injury rates,lost time and hazardous material shipping issues.37|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTO

274、ur boards Governance and Nominating Committee has broad oversight of ESG matters while the boards Compliance Committee specifically oversees our health and safety program.The Compliance Committee receives quarterly updates on health and safety from the chief compliance officer.As a matter of policy,

275、our sites conduct monthly self-inspections to determine compliance with relevant company policies and regulations.Inspections use a checklist provided by the EHS team.Each site is responsible to remediate any non-compliance in a timely way.On a monthly basis we confirm that leaders at each site have

276、 implemented appropriate remediations as needed and completed daily or per-shift safety measures.In addition to the monthly process,facilities must also conduct an annual self-assessment of their compliance with our health and safety policies,along with training completion.Policies and standards Our

277、 health and safety requirements apply to all Patterson employees.Contract workers must follow their own safety policies as well as our policy on contractor safety.Company policies cover key health and safety issues such as accident reporting and investigation,controlling exposure to bloodborne patho

278、gens,confined spaces,driving,electrical safety,safe lifting,fall protection,hearing conservation,preventing injury and illness,working with pesticides,radiation safety,respiratory protection and spill prevention.We outline procedures for workers to remove themselves from situations that they believe

279、 could cause injury or ill health and we have a policy that protects against reprisals.We also maintain emergency plans for scenarios related to weather,wildfires,earthquakes and more.Our employee handbook addresses emergency response procedures that we expect everyone to follow in the event of an e

280、mergency.We work to mitigate risks for our technicians,suppliers and other essential areas of our operations outside our facilities.For example,for driver safety,we conduct annual checks of driving records,and we maintain a guidebook on supervising commercial drivers.The guidance covers routine test

281、s,training and paperwork.For technicians installing X-ray equipment,we provide procedures on safely installing equipment and state-by-state regulations.Our employee handbook also addresses workplace security and handling workplace violence or bullying.It provides detailed definitions of prohibited b

282、ehavior and guidance on reporting it.Tracking The EHS team has access to a range of safety metrics,including incident rate and lost time rate on a rolling 12-month basis,as well as a summary of recordable incidents.The EHS team regularly reviews recordable incident data to promote targeted safety in

283、itiatives.We strive to reduce days lost from work-related injuries by 5%each year,generally using benchmarks provided by the National Association of Warehousing.Our EHS team tracks incident investigations,completion of site monthly self-inspections and annual self-assessments,and health and safety t

284、raining completion.Updates on these indicators are shared with executive leadership and the board of directors on a regular basis.We track any remediation gaps until closed,with closure due dates set by the EHS team.INTERACTIVE SCORECARDPatterson leaders use a health and safety scorecard to gather i

285、nformation and analysis.They can navigate by region,a specific facility,job function and more.The dashboard includes indicators such as:Frequency of occupational injuries,by siteCompletion of incident investigations and root cause determinationLost time rateInjury severity rate38|PEOPLE INTROAPPENDI

286、XOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTAssessing risks High-hazard risks include working at heights,using powered industrial vehicles to move supplies and transport driving.We also manage risks of back,shoulder and other ergonomic conditions.To aid us in identi

287、fying work-related hazards,the EHS team conducts an annual overall risk assessment and requires local management teams to maintain a job hazard analysis for each position.This job hazard analysis is part of the training and orientation for new hires in the role.When an audit or other process brings

288、our attention to a new type of risk,we add it to this job hazard analysis.We strive to mitigate risks through our reporting and investigation activities and the application of the hierarchy of controls.Reporting hazards Employees can report hazards in several ways,such as speaking to a safety liaiso

289、n or direct manager or making a report through our compliance helpline,“Speak Up Patterson.”We encourage a culture of speaking up and have a strict non-retaliation policy.We do not tolerate adverse actions directed at anyone who reports a good faith concern or participates in an investigation.Report

290、ing incidents Patterson leverages a nurse triage service available via telephone 24 hours a day for employees to self-report or for supervisors to report any injuries.The nurse can quickly direct the employee to the best care for their injury.This system also provides direct reports to the senior sa

291、fety and health manager.Investigating incidents Beyond tracking incidents,we place a special emphasis on investigations.After an incident occurs,supervisors and managers complete online incident investigation forms.We assess the root cause and determine potential improvement measures.We consult in d

292、epth with the leader most relevant to the affected employee.This process supports our efforts to prevent reoccurrences of incidents and keep everyone safe.Training Each employee must complete safety and health training according to the needs of their role.Each month,Patterson provides content on a s

293、pecific safety topic,which site teams share during monthly safety huddles.Recent focus issues include employee wellness such as hydration in high temperatures,ladders,learning from experience and vehicle chocking.We also provide in-depth training in ergonomics,safe driving,first responder training,p

294、ower tools,fall protection,ladder safety,power tool safety and more.For positions that require certification,such as operating a forklift or other powered industrial vehicle and shipping hazardous material,our employees receive and maintain certification via completion of formal training,job-specifi

295、c training and formal evaluations.We log and maintain employees certifications.The training coordinator on Pattersons compliance team regularly updates company leadership on completion of relevant training and any remaining needs or gaps.39|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIE

296、S 2024 CORPORATE RESPONSIBILITY REPORTPASSIONATE ABOUT OUR COMMUNITIES 04Giving back is second nature to us.We are dedicated to helping improve the communities where we live and work.40|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTThe Patterson Fou

297、ndationManagement and oversight The Patterson Foundation is a private grantmaking foundation established by former Patterson executives in 2004 and overseen by a senior manager at our company.The Patterson Foundation receives donations from Patterson,its employees and many partners.It also raises fu

298、nds through vendor-sponsored events such as an annual golf tournament.Employees are a central part of the Foundations work.The Foundations board of directors consists of current and retired Patterson employees.Three seats on the board are held by Pattersons CEO,the president of Patterson Dental and

299、the president of Patterson Veterinary.The remaining members are elected based on their skillsets and connections with stakeholders.Patterson employees and retirees also volunteer on a committee that reviews grant applications.The committee includes representatives from the sales teams from each divi

300、sion who are the most familiar with local non-profit organizations,and other Patterson employees.Patterson team members also play a role in identifying candidates for funding.We track the Foundations impact through yearly reports from grantees.Giving target As a private grantmaking organization,the

301、Foundation must give away at least 5%of its total assets each year.The Patterson Foundation aims to exceed this target by donating 6 to 7%of its assets each year.PATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORT41|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESDONATIONSIMPACT$1.36Mawarded by the Fo

302、undation in calendar year 2023$40,500$105,490Two of our grantmaking programs had record giving years!awarded across 9 organizations nationwide through Future Farmers of Americaawarded across 83 non-profit organizations through our Dollars for Doers program$608,000$631,945awarded in scholarships to 1

303、38 deserving students who are dependents of our employeesawarded through these community grants including oral health organizations,assistance dog organizations and Mission of Mercy events around the countryThe Foundation makes donations according to several pillars:Non-profit dental organizations C

304、reating access to oral health care for underserved,uninsured people Assistance dogs Pairing dogs with veterans,first responders and people with disabilitiesScholarshipsSupporting Patterson employee dependents in their post-secondary education.The scholarship is renewable each year.For this portion o

305、f our grantmaking,a third-party partner evaluates applications based on academic and extracurricular achievements Agricultural education Supporting student leadership organizations focused on agriculture education and teacher professional development through Future Farmers of AmericaDollars for Doer

306、s Donating$100 per employee every time two or more employees volunteer with a non-profit organizationPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORT42|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORT“Im proud to announce that the Patterson Fo

307、undation awarded Interfaith Dental a grant for$20,800 this year!Interfaith is funded 100%by grants and donations and as you know,they do amazing work,providing dental care for the most vulnerable people.Im grateful to work for a company that values this very important cause and contributes to helpin

308、g in a big way.”“It is not every day you get to tell a very deserving group of individuals that their jobs,lives and communities they serve are about to change for the best due to this incredible Foundation at the company where I work.I am excited to see where this partnership goes with the CincySmi

309、les Foundation.How cool is it that any time they get asked how they were able to move forward with their expansion project,that Patterson Dental and the Patterson Foundation will be mentioned?”Our grantees,in the words of our employees“Patterson has been a longtime supporter of NEADS by providing ch

310、aritable donations,support for capital expansion projects,volunteer projects and access to vital puppy raisers through its employee population.NEADS breeds,raises,trains and matches service dogs for people with physical disabilities.These highly trained dogs change lives,giving their partners increa

311、sed independence and providing support with numerous tasks,all while creating deep emotional bonds.The Patterson Foundation awards annual grants to aid in the development of on-campus facilities that will increase the number of service dogs placed with future clients.NEADS is extra special to Patter

312、son because Patterson team member Helen Cogan and her son Patrick received Knight,a black lab service dog,to help Patrick maintain his independence as he manages Friedreichs ataxia,a degenerative disease that causes mobility challenges and nervous system damage.”INTERFAITH DENTALCINCYSMILES FOUNDATI

313、ONNEADS WORLD CLASS SERVICE DOGS43|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTCorporate GivingManagement and oversightPattersons corporate giving is guided by our local teams,as each Patterson location has the opportunity to manage its own grantm

314、aking budget.This is essential to our role as a community partner for local response organizations in cases of natural disasters and other urgent relief needs.In FY24,we developed a company-wide Charitable Giving Policy on both monetary and in-kind donations.The policy expresses the importance of co

315、rporate giving and provides guidance for employees on participating in our giving programs.The policy also specifies the types of organizations and activities that would not represent a qualified non-profit,such as those that discriminate or pursue divisive public agendas.Each Patterson location tra

316、cks its contributions through our charitable donations system.Giving target In partnership with other members of the Minnesota Council of Foundations,Patterson has set a target of giving away 1 to 2%of its pretax dollars in cash,in-kind contributions and employee volunteer projects.Our target exceed

317、s the national rate of corporate giving of 0.8 to 1%.To demonstrate our success against this goal,we are working to expand our capacity to track each locations contributions.Giving focus At Patterson,we strive to put people first especially when most needed.Pattersons giving and community involvemen

318、t initiatives are designed to support the needs of the communities in which we live and work and the industries we serve.We prioritize dental and animal health as areas that align with our business and strategic focus.We also take into consideration causes and organizations that our employees recomm

319、end.We also conduct dozens of events each year to stimulate fundraising or volunteer projects from employees and wider contributors.Impact Patterson conducts our charitable giving in four ways,each providing unique opportunities to support our local communities and engage our employees.First,we make

320、 financial contributions to support non-profit organizations in communities where Patterson has a presence.These organizations include animal humane societies and sponsors of free dental clinics and other community programs.We also sponsor specific events or other programs led by non-profit organiza

321、tions in communities where we have a presence,with a priority for organizations that benefit dental and animal health.Third,we provide disaster relief funding in the communities where we operate.All Patterson locations can partner with their local non-profit organizations and participate in disaster

322、 relief efforts.Finally,we make in-kind donations(of non-prescription products)to support non-profit organizations in communities where Patterson has a presence.Pattersons disaster relief packages include:Contributions for a non-profit supporting recovery and relief effortsEmergency supplies and den

323、tal and animal health products44|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTEach year,our employee giving and volunteering efforts culminate in a Giving Week.The all-company event across the U.S.and Canada encourages each Patterson location to de

324、cide how it will participate by identifying non-profit organizations and causes that are meaningful to them and their communities.In FY24,we held our fifth annual Giving Week.It kicked off with a“Great Shave Off”to spark donations that raised almost$6,000 for two charities in South Carolina.Our sile

325、nt auction raised its highest amount ever.Teams in Minneapolis,Houston,Loveland and elsewhere contributed by packing dental hygiene supplies,sorting food donations and mobilizing construction volunteers.Since 2019,Patterson and the Patterson Foundation have donated over$532,795 in cash,in-kind produ

326、cts and volunteer hours through the annual Giving Week alone.volunteer events valued at52$8,346$104,128$27,109$5,934$19,684donations in cash,product,and timesilent auction donations and bidsraised for the Great Shave Offworth of products donatedGIVING WEEK 2023 RESULTS45|PEOPLE INTROAPPENDIXOPERATIO

327、NSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTMission of MercyAmericas Dentists Care Foundation(Dental Mission of Mercy),Patterson Dental and the Patterson Foundation have donated more than$1 million(the Foundation has granted$450,000 since 2016)to the ADCF,a driving force in

328、bringing dental care to underserved populations across the U.S.Recently,Patterson volunteers traveled to St.Cloud,Minnesota,to help with Mission of Mercys free dental clinic that provides dental care and procedures to those who otherwise would not be able to obtain them.To help make the event a succ

329、ess,Patterson provided supplies,merchandise,equipment/technology,technicians and on-the-ground volunteers.“I think this clinic encompasses everything that Patterson is,”shares volunteer and Minnesota sales representative Danielle Carlson.“We are a people-first company and this is at the forefront of

330、 everything we want to do.We want to be able to give back but also support our doctors,hygienists and everyone else who is offering their time to this cause.”Americas ToothFairy As the title sponsor of Americas ToothFairy,Patterson Dental and the Patterson Foundation have donated more than$2 million

331、 in cash and in-kind donations since 2004.Patterson and the Patterson Foundation sponsor the Smile Guardian Food Bank and Afterschool Program Initiative,which helped 40,000 kids across 21 states learn about the importance of a healthy smile.The sponsorship also supported“safety net”dental clinics in

332、 participating states by supplying them with dental products,including 25,000 toothbrushes,as well as educational materials.ABOUT OUR GRANTEES$2M+40,000donated by Patterson Dental and the Patterson Foundation in cash and in-kind donations since 2004children received oral health services from Nationa

333、l Childrens Oral Health Foundations mobile dental clinic partners in 202346|PEOPLE INTROAPPENDIXOPERATIONSCOMMUNITIESPATTERSON COMPANIES 2024 CORPORATE RESPONSIBILITY REPORTStrengthening Local Communities Volunteering is in our DNA at Patterson.Our employees are active members of the communities where they live and work.Each year,our employees donate thousands of hours to make a positive differenc