LABORATORY CORPORATION OF AMERICA HOLDINGS 2023 CORPORATE RESPONSIBILITY REPORT
Creating a healthier world
Our company
Our people
Our operations
Our community
Appendix
Table of contents
O U R CO M PA N Y
5Our mission and promise
7Governance
10Materiality assessment
10Code of Conduct and Ethics
13Supplier oversight and business diversity program
14Enterprise Third-Party Risk Management (ETRPM)
14Advancing privacy and security
O U R P E O P L E
18Workforce demographics
19Inclusion, Diversity and Belonging (ID&B)
21Employee Resource Groups (ERGs)
24Our employee story
25Rewarding our teams
26Developing our teams
O U R O P E R AT I O N S
30Enhancing our sustainability impact
30Key impact areas of focus
31Lab operations sustainability
33Sustainability highlights
35Environmental impact
36Environmental sustainability data
40Keeping our teams safe
41Climate change risk, risk management and resiliency planning
42Animal care and welfare
44Decentralized clinical trial (DCT) and patient centricity
O U R CO M M U N I T Y
46Disaster relief for global communities
47Supporting our communities
48The Labcorp Charitable Foundation
A P P E N D I X
53 Independent limited assurance report
54 Global Reporting Initiative (GRI)
56 Sustainability Accounting Standard Board (SASB)
57 Task Force on Climate-Related Financial Disclosures (TCFD)
59 EEO-1 Report
60 Cautionary statement regarding forward-looking statements
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Our company
Our people
Our operations
Our community
Appendix
A message from Labcorp's Chairman and CEO
Our mission to improve health and improve lives is carried out every day by our 67,000 employees around the world. This mission is intrinsically linked to the way we operate, our deep commitment to our patients and customers, and the positive impact we make on the communities we serve.
We understand our actions, global operations and daily work make a societal impact, and we believe we can help healthcare move forward. This means consciously and actively engaging underserved communities, focusing on improving health outcomes and pursuing sustainable results.
Labcorp took purposeful steps in 2023 to extend our impact on healthcare and patients through acquisitions and strategic partnerships. We successfully integrated the lab operations of Ascension, one of the largest health systems in the United States. We also announced six new laboratory partnerships, reinforcing our position as a partner of choice for health systems, and regional and local laboratories. These partnerships brought our innovative and comprehensive diagnostic testing services to millions of patients and physicians across the U.S. For example, we reached an agreement with Legacy Health to acquire select assets of its outreach laboratory business while also managing Legacy's inpatient hospital laboratories and expanding the offerings available to communities in Oregon and Southwest Washington. Labcorp also forged a strategic partnership with Tufts Medicine to provide more seamless service in areas such as oncology, neurology, women's health and autoimmune diseases to populations in Massachusetts.
We worked with biotech and pharmaceutical partners around the globe to help accelerate the development and commercialization of new therapies for patients. As part of this work, we also focused on efforts to reach underserved and underrepresented communities. We worked closely with the Tigerlily Foundation, a leading breast cancer patient advocacy organization, to launch the "I AM INCLUDED" framework and shared best practices of diverse clinical trial site leaders to carry out more inclusive clinical trials.
We continue to make great strides in science, technology and innovation. In 2023, we launched new innovative tests in our focused specialty areas across the business. For example, we are proud of our efforts toward the campaign against Alzheimer's disease, the most common form of dementia. The launch of the ATN Profile-ablood-based test to identify and assess biological changes associated with Alzheimer's-can help speed up the process of diagnosing and treating the disease. This acceleration is a crucial development, especially in light of 55 million people worldwide who already have Alzheimer's and an estimated 10 million more who will suffer from it each year.
Finally, last year we completed the spin of Fortrea, our former Clinical Development and Commercialization Services business. Today, we are operating Labcorp under two segments: Diagnostics Laboratories and Biopharma Laboratory Services. Biopharma Laboratory Services consists of two businesses: Central Laboratory Services and Early Development Research Laboratories. These operating segments position us as a leader in healthcare, helping to bring new treatments, improve diagnostics and monitor diseases for millions of patients worldwide suffering from serious diseases.
These initiatives represent a snapshot of the advances Labcorp has made in corporate social responsibility and healthcare. Yet as impressive as these accomplishments are, we know that sustained progress demands a relentless commitment to innovation, our customers, patients and the communities we serve. I have no doubt that we will continue to improve health and improve lives around the world.
Adam H. Schechter
Chairman and Chief Executive Officer
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Our company
Our people
Our operations
Our community
Appendix
Our company
05Our mission and promise
07Governance
10Materiality assessment
10Code of Conduct and Ethics
13Supplier oversight and business diversity program
14Enterprise Third-Party Risk Management (ETRPM)
14Advancing privacy and security
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Our company
Our people
Our operations
Our community
Appendix
RECOGNITION
Labcorp takes great pride in being a global leader of innovative and comprehensive laboratory services that is recognized as a top place to work by some of the world's most influential publications and organizations. We value these recognitions and insights as they validate the hard work of our dedicated employees, help us attract top talent and inspire us to improve.
AMERICA'S
GREATEST WORKPLACES
FOR
PARENTS & FAMILIES
2 0 2 3
In addition to these accolades, in 2023, Labcorp was recognized by Fortune Magazine for innovation and by Newsweek
as a top company for remote working, workplace diversity, corporate responsibility and environmental sustainability programs
Our mission and promise
As the largest laboratory services provider in the world, we embrace the tremendous opportunity we have to help solve society's most critical health challenges. We are on a mission to improve health and improve lives- from helping providers and patients diagnose and manage life-threatening diseases to making healthcare more accessible for all.
Powered by our employees around the world, we use cutting-edge science, technology and innovation to help doctors, hospitals, pharmaceutical companies, researchers and patients make clear and confident decisions. We provide insights and advance science to improve health and improve lives through our unparalleled diagnostics and drug development laboratory capabilities. Our work is helping transform patient care in the areas of oncology, women's health, autoimmune disease, neurology and other serious diseases while also helping patients and consumers manage their health.
We recognize the link between human and environmental health, and we take seriously the leading role our company plays in creating healthier communities. We pledge to improve health and lives in a responsible and sustainable way through practices that positively impact our employees, operations and the communities we serve.
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Our company
Our people
Our operations
Our community
Appendix
Our Community
2023 Labcorp at a glance
160+ million
patient interactions
600+ million
tests performed
$12.16 billion | 67,000+ | |||
FY 2023 revenue | mission-driven employees | |||
84% | ||||
130+ | ~100 | of the new drugs and | ||
approved by the | ||||
therapeutic products | ||||
new tests launched | countries served globally | U.S. FDA in 2023 included | ||
Labcorp collaboration |
Our
mission
Improve health,
improve lives
Near-term strategic priorities
- To be the partner of choice for health systems and local and regional laboratories
- To lead in the development, licensing and scaling of specialty testing including companion diagnostics
Long-termenterprise-wide priorities
- Establish leadership and partnership capabilities in cell and gene therapy
- Expand consumer-centric capabilities
- Expand global reach
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Our company
Our people
Our operations
Our community
Appendix
Governance
The Labcorp Board of Directors is fundamental to our governance approach. Our refreshment process aims to bring a strong balance of skills, experiences, diversity and expertise to our board. We proactively recruit board candidates to align with our commitment to a diverse and inclusive governance structure.
LABCORP BOARD OF DIRECTORS1
Adam H. Schechter | Kerrii B. Anderson |
President and Chief | Former CEO of |
Executive Officer, Chairman | Wendy's International, Inc. |
of Labcorp | Audit Committee |
Nominating and Corporate | |
Governance Committee |
Garheng Kong, MD, PhD | Peter M. Neupert |
Managing Partner of | Former Operating Partner |
HealthQuest Capital | at Health Evolution |
Lead Independent Director | Partners Inc. |
Compensation and Human | Audit Committee |
Capital Committee | Nominating and Corporate |
Chair, Nominating and Corporate | |
Governance Committee | |
Governance Committee |
Jean-Luc Bélingard
Operating Advisor to Clayton, Dubilier & Rice; Vice President of Institut Mérieux
Former Chairman and CEO of bioMérieux-Pierre Fabre
Compensation and Human Capital Committee
Quality and Compliance
Committee
Richelle P. Parham
President of Global
eCommerce and Business
Development of Universal
Music Group
Chair, Compensation and Human Capital Committee
Nominating and Corporate Governance Committee
Jeffrey A. Davis
Chief Financial Officer of
Dollar Tree, Inc.
Chair, Audit Committee
Quality and Compliance Committee
Paul B. Rothman, MD
Former Dean of the Medical Faculty for Johns Hopkins University School of Medicine
Former CEO of Johns Hopkins Medicine
Quality and Compliance
Committee
D. Gary Gilliland, MD, PhD
President and Director
Emeritus of the Fred
Hutchinson Cancer Research
Center
Audit Committee
Quality and Compliance
Committee
Kathryn E. Wengel
Executive Vice President,
Chief Technical Operations
and Risk Officer, and
Executive Committee
Member of Johnson &
Johnson
Compensation and Human
Capital Committee
Kirsten M. Kliphouse
Former President of Google
Cloud Americas
Audit Committee
R. Sanders Williams, MD
Professor of Medicine and Senior Advisor for Science and Technology at Duke University
President Emeritus of the
J. David Gladstone
Institutes
Audit Committee
1Labcorp's Corporate Governance Guidelines provide for a mandatory director retirement age of 75, subject to limited exceptions. Accordingly, consistent with our Corporate Governance Guidelines, Mr. Bélingard and Dr. Williams are not standing for re-election at the 2024 Annual Meeting.
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Quality and Compliance Committee
Chair, Quality and Compliance
Committee
Our company
Our people
Our operations
Our community
Appendix
LABCORP BOARD OF DIRECTORS DEMOGRAPHICS
Directors | Board Diversity |
90% 60%
IndependentDiverse*
* Ethnic/racial and gender diversity
The following charts provide information on the expected composition of the directors on our Board if the current nominees are elected at the 2024 Annual Meeting.
Director tenure | 0 - 5 years | 4 | Director age | ≤60 years | 6 |
6 - 11 years | 5 | 61 - 70 years | 4 | ||
>12 years | 1 | >70 years | 0 |
Learn more aboutcorporate governance at Labcorp
Environmental, Social and Governance Executive Steering Committee
Labcorp embraces its responsibility for environmental, social and governance (ESG) matters. In 2020, we established the ESG Executive Steering Committee (ESC) to lead our strategic approach to key ESG topics. Today, we continue to shape our initiatives under the committee's guidance. The ESC consists of cross-functional executive and senior management members who collaborate with Labcorp Chairman and Chief Executive Officer Adam Schechter, other senior executives and the board of directors in formulating our ESG strategy. Additionally, ESC members play a pivotal role in recommending policies, practices and disclosures aligned with our strategic objectives.
Our ESC meets regularly to assess our operations in relation to the environment, employee health and safety, corporate social responsibility, corporate governance and relevant public policy issues. These meetings serve as a platform
for committee members to evaluate our advancements in these areas and offer leadership, guidance and support for creating and implementing both short- and long-term initiatives, strategies and commitments. These efforts are directed towards achieving a positive global impact across our business units, geographies and functions.
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Our company
Our people
Our operations
Our community
Appendix
ESG Executive Steering Committee members
Sandra van der Vaart, JD | Lance Berberian | Anita Graham | Amy Summy |
Executive Vice President, | Executive Vice President | Executive Vice President | Executive Vice |
Chief Legal Officer, Chief | and Chief Information and | and Chief Human | President |
Compliance Officer and | Technology Officer | Resources Officer | and Chief Marketing |
Corporate Secretary | Brian Caveney, MD, JD, MPH | Christin O'Donnell | Officer |
Co-Chair, ESG ESC | |||
Executive Vice President | Vice President, | Ken Younts | |
Ted Wagner | |||
and President, Early | Investor Relations | ||
Vice President, | |||
Vice President, Environment, | Development Research | ||
Sabine Schneider | Strategic Initiatives | ||
Health and Safety, | Laboratories, and Chief | ||
Vice President, Global | |||
Sustainability, Facilities and | Medical and Scientific Officer | Clarissa Willett | |
Government Relations | |||
Real Estate | |||
Jon DiVincenzo | Senior Vice President | ||
Co-Chair, ESG ESC | |||
Mark Schroeder | and Chief Financial | ||
Executive Vice President | |||
Executive Vice President | Officer, Diagnostics | ||
and President, Labcorp | |||
and President, Diagnostics | Laboratories | ||
Central Laboratories and | |||
Laboratory Services and | |||
International | |||
Chief Operations Officer | |||
ESG LEADERSHIP SPOTLIGHT
Committee accomplishments include:
- Created ESG-focused goals tied to executive compensation
- Received approval from Science Based Targets initiative (SBTi) for science-based targets for greenhouse gas (GHG) emission reduction
- Committed to the UN Global Compact (UNGC) to meet fundamental responsibilities in the areas of human rights, labor, environment
and anti-corruption - Maintained a B rating for CDP Climate Change
- Achieved an A- rating on the Supplier Engagement Rating portion of the 2023 CDP
- Maintained a Bronze Rating on the 2023 EcoVadis assessment, improving our overall score from 48 to 52
As a global leader of innovative and comprehensive laboratory Sandra van der Vaart services, everything we do at Labcorp has the ability to change
lives. Our mission to improve health and lives goes beyond Diagnostics Laboratories and Biopharma Laboratory Services to our commitment to being strong stewards of the environment and the communities we serve.
With a footprint that serves clients in more than 100 countries, we have a tremendous responsibility to use our scale to make a meaningful impact and demonstrate progress on important ESG efforts. Our ESG Executive Steering Committee guides our strategy on priorities that align with our high standards for corporate governance.
In 2023, we made significant strides on key priorities including: fostering a more sustainable lab culture to reduce our impact on the environment; advancing our inclusion, diversity and
belonging framework; and expanding access to healthcare resources to underserved communities. In support of these priorities, we received approval from SBTi for science-based targets for GHG emission reduction and committed to the UN Global Compact to meet fundamental responsibilities in the areas of human rights, labor, environment and anti-corruption.
Our progress is only possible through the commitment of our more than 67,000 employees who work tirelessly each day to create a healthier world. We are grateful for their dedication and look forward to building upon our progress in the years ahead.
Sandra van der Vaart
Executive Vice President, Chief Legal Officer,
Chief Compliance Officer and Corporate Secretary
Co-Chair ESG ESC
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Our company
Our people
Our operations
Our community
Appendix
Materiality assessment: Evolving Labcorp's reporting transparency and disclosures
The Labcorp executive leadership team has prioritized enhancement of our ESG reporting.
As a leading global life sciences and healthcare company, we understand the importance of transparently addressing key ESG issues that impact our business.
Our materiality assessment has identified ESG concerns crucial to Labcorp, which we organized into three categories: compliance, people and operations. This categorization aligns with the coordinated efforts and activities within each area.
Compliance
People
Operations
- Affordability and fair pricing
- Business ethics
- Corporate governance
- Cybersecurity
- Global privacy
- Human rights
- Inclusion, Diversity and Belonging
- Community relations
- Employee engagement, recruitment and retention
- Employee well-being
- Energy management
- Animal care and welfare
- Manufacturing and supply chain quality management
- Quality and patient and client satisfaction
- Patient safety
Our materiality assessment adheres to established applicable principles and criteria outlined by reputable standards, including the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) and the Task Force on Climate- Related Disclosures (TCFD).
This assessment serves as a foundation for shaping our corporate responsibility strategy, initiatives and reporting practices.
Code of Conduct and Ethics
Labcorp maintains a robust compliance program with clear and easily accessible written policies and guidelines. Our Code of Conduct and Ethics outlines the compliance principles and standards to which every employee, officer, director, agent, representative, consultant, vendor and contractor must adhere. This document, translated into 14 languages, is distributed to all employees and is also available on our public website for easy access.
Please review ourCode of Conduct and Ethics.
To align our business practices with the principles set forth in the Code of Conduct and Ethics, Labcorp employs the Business Practices Manual. This manual encompasses policies covering topics such as healthcare fraud and abuse, anti-corruption, international trade, client and third-party expenses, privacy, insider trading, conflicts of interest, ethical labor and the Labcorp Action Line. These policies are accessible in multiple languages to all employees.
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Laboratory Corporation of America Holdings published this content on 09 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 May 2024 07:54:05 UTC.
