McKesson Canada Corporation -

Forced Labour and Child Labour Report

McKesson Canada Corporation publishes this Forced Labour and Child Labour Report (this “Report”), pursuant to the Canada Fighting Against Forced Labour and Child Labour in Supply Chains Act, on its corporate website for itself and on behalf of the McKesson group of companies operating in Canada for the fiscal year ended March 31, 2024 (“FY24”).

McKesson is committed to good corporate citizenship, the highest ethical standards, and does not tolerate any form of forced labour or child labour in its supply chains.

BUSINESS AND ORGANIZATION

McKesson is dedicated to advancing health outcomes for patients and consumers everywhere. In Canada, McKesson provides pharmaceutical product distribution and automation, retail pharmacy services, pharmacy technology solutions, biopharma and provider solutions, and health and wellness products. McKesson sources its products from North America, Europe, and Asia. McKesson relies on its global and local procurement organization to source the products it sells and distributes.

CULTURE, VALUES, AND TRAINING

McKesson takes social responsibility seriously and is strongly committed to respecting applicable international human rights and fair labour practices and explicitly condemns all kinds of modern slavery, including forced or child labour, and human trafficking.

McKesson I²CARE Values.  McKesson its employees are fundamentally guided by McKesson’s global I²CARE Values, namely: Integrity, Inclusion, Customer-first, Accountability, Respect and Excellence. The I²CARE Values are foundational to all that we do, and who we are as a company. Consistent with these values, McKesson is committed to acting ethically and with integrity in all its business relationships, aiming to ensure that modern slavery and human trafficking is not taking place anywhere in its business.

In 2020, McKesson joined the United Nations (UN) Global Compact Initiative, a voluntary leadership platform focused on the development, implementation, and disclosure of responsible business practices. In taking this step, McKesson is explicit in its support of the UN Global Compact’s 10 principles which focus on the areas of human rights and labour, but also on environment and anti-corruption.

Our global Code of Conduct provides the guidelines for interactions with its employees and contractors, and other business partners. The Code highlights McKesson’s position on Respecting Human Rights and Responsible Sourcing. Code of Conduct training is mandatory for all employees and contractors, including senior management and executive-level staff, on an annual basis.

McKesson’s employees are encouraged through its Open Door Policy and Speak Up Policy to raise concerns including potential violations of the Code, I²CARE values, company policies and applicable laws. McKesson provides a confidential EthicsPoint platform, a hotline available 24 hours a day for internal and external stakeholders to facilitate confidential reporting of any ethical concerns. The ethical principles that form the basis of the Code are at the heart of all decisions made by McKesson.

McKesson employees receive periodic online and/or face-to-face training to emphasize the importance of acting with integrity and in line with the Code of Conduct and relevant applicable laws and internal policies.

SUPPLY CHAIN DUE DILIGENCE

McKesson’s principal suppliers are heavily regulated pharmaceutical manufacturers and medical and health product suppliers located in North America, Europe, and Asia.

McKesson’s global procurement organization has established a Responsible Sourcing Program to address operations and suppliers for ethical and social issues. It provides a framework that holds our international private label suppliers to an auditable set of expectations about protecting workers. McKesson’s procurement organizations audit select prospective and current suppliers for a range of issues, which may include labour issues.

The McKesson Supplier Sustainability Principles (“MSSP”) are a set of principles to which our private label suppliers outside the UK, US, Canada, and Europe must agree. Our MSSP cover compliance with appropriate laws along with adherence to our principles on protecting workers, preparing for emergencies, identifying and managing environmental risk, and protecting the environment. These principles also reflect our stance against forced labour and child labor.

McKesson takes a risk-based approach in its contracting processes and assesses whether the circumstances warrant the inclusion of specific prohibitions against the use of modern slavery and trafficked labour in our contracts with third parties and specific confirmation with our Code of Conduct. We expect our suppliers will hold their own contractors and suppliers to the same standards.

STEPS TAKEN

In FY24, the McKesson group of companies operating in Canada completed or refreshed supplier profiles for its main suppliers to assess their positions on forced labour and child labour. We also took initial steps to ensure our local procurement teams have standard policies to assess forced labour and child labour. McKesson’s Canadian EthicsPoint platform was expanded to include a dedicated category to report any supply chain issues, including suspected forced labour or child labour.

REMEDIATIONS AND ASSESSING EFFECTIVENESS

As we have not identified any forced labour or child labour in our business or supply chain, McKesson has not had to take any measures to remediate any forced labour or child labour or to remediate any loss of income to vulnerable families resulting from measures taken to eliminate the use of forced labour or child labour in our businesses or supply chains. As described in this Report, McKesson has introduced several measures to prevent and reduce these risks; however, to date no actions have been taken to assess the effectiveness of the measures.

This Report has been approved by McKesson Canada’s Executive Leadership Team (“ELT”), and the ELT has authorized Jennifer Zerczy to sign the Report on behalf of the McKesson group of companies operating in Canada. McKesson Canada has the legal authority to bind the McKesson group of companies operating in Canada.

Signed on behalf of McKesson Canada Corporation and its affiliates:

Jennifer Zerczy

Senior Vice-President

Legal and Regulatory Affairs

McKesson Canada Corporation

31/5/24