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    PINC   US74051N1028

PREMIER, INC.

(PINC)
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Premier : Making a Premier Impact 2021 Sustainability Report - Form 8-K

10/21/2021 | 05:14pm EST

Making a Premier Impact 2021 Sustainability Report

Table of Contents Letter From Our President and CEO 3 Making a Premier Impact 5 Our Business Segments 5 Our Brands 6 Awards, Recognition and Associations 8 Corporate Professional Associations 8 About This Report 9 Governance, Ethics and Responsible Business Practices 10 Supply Chain Management 34 Environmental, Social and Governance Oversight 11 Supply Chain Services 35 Board Diversity and Succession Planning 12 Compliance and Ethics 39 Enterprise Risk Management and Business Continuity 13 Product Quality and Safety 39 Compliance and Ethics 14 Environmental Considerations 43 Cyber Risk Management, Data Security and Customer Privacy 16 Supplier Diversity 46 Government Affairs and Advocacy 19 Supplier Resiliency and Disaster Response 47 Stakeholder Engagement 21 Leading Through the COVID-19 Pandemic 48 Our People and Culture 22 Environmental Management 49 Human Capital Management 23 Energy Management 50 Our People Strategy 23 Waste and Water 51 Total Rewards Philosophy and Program 25 Diversity, Equity, Inclusion and Belonging 27 Frameworks and Standards 52 United Nations Sustainable Development Goals (SDGs) 53 Our Social Responsibility 30 Sustainable Accounting Standards Board (SASB) 54 Improving Patient Outcomes Cost-effectively 31 Supporting the Medically Underserved 31 Improving Health Through Community Development 32 Forward-Looking Statements Matters discussed in this Report that are not statements of historical or current facts, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Premier to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. Accordingly, readers should not place undue reliance on any forward-looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements in the conditional or future tenses or that include terms such as "believes," "belief," "expects," "estimates," "intends," "anticipates" or "plans" to be uncertain and forward-looking. Forward-looking statements may include comments as to Premier's beliefs and expectations as to future events and trends affecting its business and are necessarily subject to uncertainties, many of which are outside Premier's control. More information on potential factors that could affect Premier's financial results is included from time to time in the "Forward-Looking Statements," "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of Premier's periodic and current filings with the SEC and available on Premier's website at investors.premier.com. Forward-looking statements speak only as of the date they are made. Premier undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date. www.premierinc.com 2

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Letter From Our President and CEO We are fully committed to further embedding sustainability into our business to transform healthcare and make the world a better place. On behalf of our employees and Board of Directors, I am Our response to the COVID-19 pandemic underscores our thrilled to introduce Premier's inaugural sustainability report. ability to ensure supply chain resiliency and sustainability in healthcare operations. Throughout the pandemic, our compa-At Premier, we have long understood the importance and value ny has been at the forefront of response efforts, working to of environmental, social and governance (ESG), or sustainabili-ensure healthcare providers have access to personal protective ty, practices. We continue to incorporate them into how we equipment (PPE), medical supplies and pharmaceuticals to conduct ourselves and our business to achieve our longer-term provide care to their patients. Using our unique dataset that goals and deliver on our mission to improve the health of encompasses more than 45 percent of U.S. hospital discharg-communities. This report highlights the numerous ways ESG es, approximately 812 million outpatient and clinic encounters, practices guide us and are embedded in how we do business and nearly 132 million physician office visits, we developed a and support our mission. tool that can predict future caseloads and supply needs based Our corporate governance, ethical behaviors and responsible on the acuity of COVID-19 cases. The only source for such business practices are governed at the highest levels of the information at scale, this data was shared with the federal organization. We recently formalized our corporate sustainabili- government to shape the nation's response efforts and was ty program, demonstrating our commitment to ESG across our key to mitigating shortages that could have been devastating organization. Our Board is responsible for overseeing our for patient care. sustainability practices and will receive regular updates and Longer term, the pandemic made it abundantly clear that a novel recommendations on ongoing sustainability objectives from approach to managing the supply chain is needed, one based our Nominating and Governance Committee, which has been on greater diversity of manufacturing and suppliers, as well delegated principal responsibility for ESG oversight, and our ESG as added transparency. In 2020, we, alongside many of our Steering Committee, comprised of leaders from a broad cross members, co-invested in domestic manufacturing to help section of the business. In elevating ESG to a Board-level expand production capacities, plant modernization and spur mandate and centralizing its management at the highest levels innovation. We have since deployed this co-investment model of the company, we are sending a clear message about the by partnering with three leading manufacturers of face masks, importance of, and our focus on, these practices at our company. isolation gowns and pharmaceuticals to support the domestic production of critically needed products. With long-term buying commitments from our group purchasing organization members, we also collaborated with a leading manufacturer to promote the domestic production of critically needed nitrile exam gloves. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 3

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We seek to promote an inclusive culture of high-performing individuals, leaders and teams united behind a growth mindset. Our multi-decade legacy demonstrates staying power, yet that alone is no guarantee of future success. We are focused on building a culture with a growth mindset, one that is forward-thinking and committed to transforming healthcare. Our culture of excellence is, in part, reflected in our fiscal 2021 performance, where we increased total revenue by 32 percent to $1.72 billion, driven by strong results in our direct sourcing, technology and consulting businesses, and significant group purchasing wins. We also see it in our overall employee engagement scores, which have increased during the pandemic to outpace global benchmarks, and our low turnover rate, which Creating a healthier society requires a healthier environment. decreased to just 11 percent. We have a two-pronged approach to environmental management: first, to ensure our own corporate operations protect and Our long-term success is predicated on creating an inclusive improve the environment; and second, to help our members culture that attracts, engages, trains and retains top talent. choose responsible products and services that, importantly, are To ensure we are casting the broadest net possible, we hired safe and efficacious yet minimize their environmental footprint. a Chief Diversity and Inclusion Officer (CDIO) in 2020. A new executive team role at Premier, the CDIO reports directly to me To that end, we are proudly headquartered in a LEED-CS Gold and oversees and builds upon our Diversity, Equity, Inclusion certified building, rely heavily on energy efficient bulbs and and Belonging program. Core to that program is Premier's natural light and leverage digital technologies whenever pledge to model behaviors and create a culture that drives possible to reduce paper consumption. Notably, we recycled diversity and inclusion, both through our recruitment and 8-10 tons of electronic products over the past five years. For retention programs, as well as our Total Rewards programs our members, we have created purchasing programs that to support professional growth and career advancement. collect environmental impact data from suppliers, including the existence of chemicals of concern, recyclable or recycled Improving the health of communities is more than our mission packaging and responsible resources in their products, - it is our social responsibility. We play a critical role in providing transparency to allow members to make the most healthcare, collaborating with our members to co-develop ethical choices for their communities. long-term innovations that reinvent and improve the way care is delivered to patients nationwide. With our differentiated We know that we are on a journey, and while we are proud of the combination of integrated data and analytics, collaboratives, positive impact we are making, we know we have much more to supply chain solutions, and advisory and other services, we are do. We are fully committed to further embedding sustainability uniquely positioned to enable our members to deliver better into our business to transform healthcare and make the world a care and outcomes at a lower cost. better place. From using our data and analytics to study and prevent Sincerely, maternal harms in healthcare, to connecting our members with diverse, qualified suppliers in their communities, to financial donations and employee volunteer efforts to support nonprofits dedicated to improving community health, Premier is commit- ted to social responsibility - and to making a real difference Michael J. Alkire in communities. President and CEO October 20, 2021 Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards

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Making a Premier Impact We are a healthcare technology and performance improvement company that has united an alliance of hospitals, health systems and other providers and created one of the most comprehensive databases of actionable data, clinical best practices and efficiency improvement strategies in the industry. Through our two business segments - Supply Chain Services and Performance Services - we enable our members and other customers to deliver and provide access to high-quality healthcare and reduce costs. Powered by one of the largest data sets in the industry, predictive analytics and artificial intelligence (AI)-enabled, clinical-decision support tools, we are delivering meaningful solutions to transform healthcare from the inside. Our Business Segments Our Supply Chain Services business is built upon our Our Performance Services businesses are built on, and fueled industry-leading, technology-enabled, end-to-end supply by, a comprehensive healthcare data and technology platform chain capabilities that help our members safely reduce that uses AI and other enhanced technologies to translate this costs, gain transparency and ensure resiliency. data into actionable intelligence. Through our technology and advanced consulting services, we help our members and other customers deliver improved outcomes, sustainable financial performance and success in new payment models. We Deliver Value to Stakeholders by: Providing Connecting Saving clinicians with timely, critical insights to patients to necessary care healthcare providers millions of help determine the best care protocols for faster and more efficiently, dollars through automation of their patients. with less paperwork. purchasing and payment processes. Building Working a smarter, more resilient and technology-enabled supply chain to ensure providers with employers to deliver the most always have access to a competitive, stable and diverse market for medical supplies, appropriate care to their employees. pharmaceuticals, capital equipment, business supplies and professional services. Please visit www.premierinc.com to learn more. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 5

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Making a Premier Impact Who We Serve Our Brands Healthcare providers S2S Global® Direct sourcing of factory-direct, quality products Employers Stockd® eCommerce marketplace connecting healthcare providers and businesses to suppliers and products Governments Payers Conductiv® Provides procurement intelligence and spend management expertise to help businesses contain purchased services costs and optimize supplier Life sciences companies relationships Suppliers PINC AI™ Technology and services platform that provides actionable intelligence to help improve health outcomes, enables real-world research and automates Other non-healthcare customers clinical trial recruitment, supports improved financial performance, and (e.g., K-12 schools, colleges and enables success in new, alternative payment models universities) Contigo Health® Connects employers directly with providers to improve care for employees Remitra™ Automation of invoices and payments to streamline and simplify accounts payable processes in healthcare Committed to Making a Difference Sustainability is at the heart of our mission, culture and business practices. Transforming healthcare is more than our goal - it's in our DNA. At Premier, we're dedicated to ensuring better healthcare and making a positive impact on society. Vision Through the collaborative power of the Premier alliance, we will lead the transformation to high-quality, cost-effective healthcare. Mission To improve the health of communities. Values Integrity Passion for Performance Integrity of the individual, the enterprise A passion for performance and a bias for action, creating and the alliance real value for all stakeholders and leading the pace Innovation Focus on People Seeking breakthrough opportunities, taking Demonstrating respect for all, and mutual commitment risks and initiating meaningful change to the success of the alliance, our employees, our business partners and the communities we serve Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 6

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Making a Premier Impact (All metrics as of fiscal year ending June 30, 2021 except for GPO purchasing volume which is as of calendar year ending December 31, 2020.) 2,600+ ~225,000 4,400+ employees providers and other organizations U.S. hospitals and health systems ~3,100 400+ 300k contracts with over experts representing physicians enabled by PINC AI to 1,350+ suppliers deliver high-quality care while safely >130 reducing waste and inefficiencies U.S. hospital and health system members Data on participating in strategic and sourcing 90%+ committees to advise on ways to improve of GPO members view Premier the development, quality and value of 45%+ as strategic partner products and services of U.S. hospital discharges >$69 billion GPO purchasing volume in CY2020 Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 7

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Awards, Recognition and Associations CORPORATE CULTURE 2021 World's Most Ethical Companies® Honoree by Ethisphere - 14TH CONSECUTIVE YEAR 2021 Achievers 50 Most Engaged Workplaces® 100 Healthiest Workplaces in America - 14TH PLACE Best Places to Work in Healthcare for Conductiv, a Premier company Charlotte Business Journal's Healthiest Employers Award - FIRST PLACE LinkedIn's Top Companies in Charlotte DIVERSITY AND INCLUSION Top 10 Enterprise-Wide ERG Award for 2021 SOCIAL IMPACT Bringing Predictive Analytics to Healthcare, selected by the Agency for Healthcare Research and Quality (AHRQ) - FIRST PLACE 2021 Fast Company's World Changing Ideas for syndromic surveillance - HONORABLE MENTION Please visit Awards and Recognition at www.premierinc.com. Corporate Professional Associations We belong to several professional associations that provide us with the knowledge, perspective and relationships to further strengthen the execution of our corporate mission. Our corporate memberships as of June 30, 2021 include: American Hospital Association Health Coalition on Liability and Access Coalition to Protect America's Healthcare National Association of Specialty Pharmacy Confidentiality Coalition Steering Committee National Quality Forum Healthcare Leadership Council Public Affairs Council Health Care Transformation Task Force The Ripon Society Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 8

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About This Report We believe that we play a critical role in the rapidly evolving healthcare industry, collaborating with our member alliance of more than 4,400 U.S. hospitals and health systems and nearly 225,000 providers and other organizations to co-develop long-term, innovative solutions that reinvent and improve the way care is delivered to patients nationwide. Through the unique partnership-driven model of our approach and the dedication of our team, we aim to make a positive impact in service of our corporate mission to improve the health of communities by leading the transformation to high-quality, cost-effective healthcare. Our approach to ESG practices is at the improve healthcare outcomes, protect Our Board of Directors and leadership heart of our mission. By growing our the environment and provide a work team recognize the importance of solid company responsibly, we earn trust and environment where our employees are governance, environmental stewardship build relationships that will sustain us treated well and given the opportunity to and social responsibility. We are proud into the future. We behave ethically, are be all they can be. to publish our inaugural Sustainability transparent in our business dealings, Report outlining our current ESG make a positive social impact, help initiatives, practices and objectives in five areas fundamental to our business and our mission as described below. THE FIVE FUNDAMENTAL AREAS OF OUR BUSINESS GOVERNANCE, ETHICS OUR PEOPLE OUR SOCIAL SUPPLY CHAIN ENVIRONMENTAL AND RESPONSIBLE AND CULTURE RESPONSIBILITY MANAGEMENT MANAGEMENT BUSINESS PRACTICES We are committed to To effectively transform Our mission is to improve We enable our members to As part of our efforts to strong corporate gover- healthcare, we rely on our the health of communities. provide better care and out- improve the health of our nance, ethical behavior number one resource: We view this as our social comes at a lower cost for nation's communities, we and responsible business our team members. We responsibility. We help their patients by improving pursue our mission as practices that build trust aim to build a culture of enable our member health- the efficiency, sustainabili- prudent stewards of the and promote the long-term high-performing individu- care providers to improve ty, quality and resiliency environment. We strive not interests of our stockhold- als, leaders and teams healthcare quality and of the healthcare supply only to integrate environers and other key stake- with a "People First," growth outcomes by leveraging chain, leveraging indus- mentally friendly practices holders. Integrity forms mindset for evolving our our data and analytics try-leading data analytics throughout our operations, the basis of our business culture and organization, capabilities. Ultimately, we backed by one of the but also to identify products operations and underpins living by our values and are successful because our nation's largest repositories and services that help our our business relationships. maintaining a high level employees and other team of clinical data. members minimize their of employee engagement members are willing to go environmental footprint. and retention. above and beyond for our member healthcare providers and other customers we serve every day. Our Sustainability Report has been prepared in accordance with the Data provided within this report will be noted either as of the 12 months accounting standards published by the Sustainability Accounting of our 2021 fiscal year ending June 30, 2021 ("FY2021") or as of the Standards Board (SASB). We have also identified the United Nations 12 months of 2020 calendar year ending December 31, 2020 ("CY2020"). Sustainable Development Goals (SDGs) that we believe best align our This report is dated as of October 20, 2021, and the information herein business activities and key priority areas. Both are included in the speaks only as of that date. Premier undertakes no obligation to publicly Frameworks and Standards at the end of this report. update or revise this report, whether as a result of new information, future events or otherwise that occur after the date of this report. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 9

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Governance, Ethics and Responsible Business Practices Our Board of Directors and leadership team are committed to strong corporate governance, ethical standards and responsible business practices. We believe these core principles are foundational to creating long-term value for our stockholders and other key stakeholders. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 10

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Environmental, Social and Governance Oversight Our Board of Directors (Board) is responsible for the oversight and general compliance with laws, including those affecting of our environmental, social and governance (ESG) initiatives. ESG issues. For more information, please see our Board The Nominating and Governance Committee is responsible for policies and committee charters under Corporate Governance exercising this oversight and making periodic reports to the full in the Investors section of our corporate website. Board regarding ESG matters. In doing so, the Nominating and Our ESG Steering Committee is comprised of leaders repre-Governance Committee coordinates with the Compensation senting a broad cross-section of our business. This cross- Committee and Audit and Compliance Committee. The functional group will meet quarterly to discuss the sustainabili-Compensation Committee has oversight of our human capital ty issues most critical to our business and stakeholders and management, as discussed in our 2021 Annual Report on recommend steps to advance our sustainability objectives. Form 10-K, and our Diversity, Equity, Inclusion and Belonging The ESG Steering Committee will also report periodically to (DEIB) initiatives. The Audit and Compliance Committee has the Nominating and Governance Committee. oversight over our social responsibility audits, cybersecurity Belonging Accountability Passion Inclusion EquityCompliance Community Resiliency Caring Sustainability Advocacy Culture Safety Diversity Impact Governance Engagement Environment Values Wellness Transformation Continuity Responsibility Resources Innovation Ethics Security Oversight Development Privacy Quality Health Risk Management Charity Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 11

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Board Diversity and Succession Planning We recognize and value the benefits that diversity can bring to Board of Directors our Board, our organization and our stockholders. Our Board is Diversity comprised of talented and dedicated directors with a diverse mix of experience, skills and backgrounds, reflecting the strategic needs of our business and the nature of the environ- 1 ment in which we operate. African American Our existing Board composition complies with NASDAQ's 6 recently adopted Board Diversity Rule that requires us to have at Non-diverse least two diverse directors, including one who self-identifies as female and one who self-identifies as either an underrepresent-ed minority or LGBTQ+. As of August 31, 2021, our 10-person 3 Board includes four diverse directors, including three female 40% Women directors and one racially diverse director. Furthermore, we have diverse opted for early adoption of the requirement to provide a Board Diversity Matrix in the Proxy Statement for our 2021 Annual Meeting of Stockholders filed with the SEC. For a full discussion about our Board, please see our recent Proxy Statement. We believe diversity on our Board and within our company advances our overall DEIB strategy. More detail is discussed within the Our People and Culture section of this report. Board of Directors Experience and Skills Independence Executive Leadership Healthcare Industry ~5 years Digital Technology Average Board Operations Tenure Treasury Capital Allocation Finance/Accounting/Auditing M&A/Corporate Development Corporate Governance 64 Supply Chain Logistics Average Board Risk Assessment and Management Age ESG 0 1 2 3 4 5 6 7 8 9 10 Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 12

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Enterprise Risk Management and Business Continuity Our Board plays an active role in overseeing management of our risks. The leadership structure of our Board supports and promotes effective enterprise risk management (ERM) and oversight: PREMIER BOARD OF DIRECTORS OVERSEES ALL ENTERPRISE RISK MANAGEMENT (Strategic, Operational, Financial, Legal, Information Technology and Reputational) NOMINATING AUDIT AND AND FINANCE COMPENSATION COMPLIANCE GOVERNANCE COMMITTEE COMMITTEE COMMITTEE COMMITTEE Financial, legal and regulatory Financial risks related Risk assessments of executive Reputational, ESG and compliance cybersecurity and to capital allocation and compensation and compensation corporate governance risks ethical risks financial forecasting philosophy and structure at all employee levels While each committee is responsible for evaluating and Business Continuity and Disaster Recovery overseeing the management of risks within its area of responsi- Our Business Continuity and Disaster Recovery Plan (BCDRP) bility, our full Board retains ultimate oversight of ERM and is designed to minimize disruption in the quality of our service remains informed through regular reports and updates, delivery in the event of a natural disaster, cyber-attack or other including a standing ERM update at every quarterly Board emergency. Key business continuity and infrastructure recovery meeting. In addition, our Board and committees receive regular capabilities are validated at least annually. In addition, the reports from our President and Chief Executive Officer (CEO), BCDRP is periodically subject to internal audit to confirm it Chief Financial Officer (CFO), General Counsel, Chief Ethics and remains applicable to the current risk environment. Adjust- Compliance Officer, and other members of our leadership team ments are routinely made with the BCDRP to assure recovery regarding areas of significant risk. For more information, please of business operations and infrastructure in accordance with see our recent Proxy Statement. business commitments and other requirements. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 13

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Compliance and Ethics Our approach to compliance and ethics begins at the highest Code of Conduct level of our company. Our leadership team plays an important Premier has adopted a Code of Conduct (Code) that applies role in reinforcing our core values and behaviors at the top. to all directors and employees. We also hold our contractors For more information, please see our most recent Annual and vendors to applicable requirements in the Code. Employees Compliance Report. who violate our Code may be subject to disciplinary action, up to and including termination of employment, subject to Board Governance and Oversight applicable law. For more information on our policies regarding Our Board sets high standards for our employees and directors. human rights standards and ethical business practices, Implicit in this philosophy is the importance of sound corporate please see the Compliance and Ethics section of our website, governance. It is the duty of our Board to serve as prudent including key areas such as: fiduciaries for stockholders and oversee the management of • Code of Conduct our business. It is our goal to advance the highest standard • Conflict of Interest Policy of ethical behavior and integrity and to ensure compliance • Confidentiality Policy with all applicable laws, rules and regulations. Our corporate • Disclosure Of Corporate Equity Interests governance practices are established, monitored and regularly • Disclosure Of Business Relationships assessed by our Board, with assistance from the Nominating • Anti-Bribery Policy and Governance Committee. For more information, please see • Human Trafficking Policy our Corporate Governance Guidelines. • Whistleblower Policy Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 14

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Our Board is also subject to a Board Code of Ethics and a Whistleblower Policy Board Conflict of Interest Policy and Disclosure Statement. The Audit and Compliance Committee has established a These documents are intended to focus the Board and each Whistleblower Policy that includes our confidential and director on areas of ethical risk, provide guidance to directors anonymous reporting helpline, designed to promote open to help them recognize and deal with ethical issues, and to communication of concerns regarding potentially illicit or illegal promote honest and ethical conduct, including the handling of business practices and conduct, as well as provide reassurance actual, apparent or potential conflicts of interest between that any individual making a report will be protected from personal and professional relationships. For more information discrimination, retaliation, harassment or other reprisals for on the code and policy, please see the Investors-Governance raising concerns regarding potentially inappropriate conduct. Documents section of our website. For information, please see our Whistleblower Policy. Education, Awareness and Acknowledgments Intellectual Property and Competitive Behavior Employees complete an interactive We offer our members a range of products to which we have course that provides an overview intellectual property rights, including online services, best of our Code as part of our annual practices content, databases, electronic tools, web-based compliance education. The CY2020 100% applications, performance metrics, business methodologies, course included compliance topics proprietary algorithms, software products and consulting of employees completed such as conflict of interest, ethical services deliverables. We protect our intellectual property by our annual compliance leadership, information security, relying on federal, state and common law rights, as well as education. insider trading and social media. contractual arrangements. For more information, please see During CY2020, 100% of employees our recent 2021 Annual Report on Form 10-K. completed this education. Employees and contractors also complete annual awareness Industry-Leading Ethical Business Standards education on the Health Insurance Portability and Accountabili- We are a founding member of the Healthcare Group Purchasing ty Act (HIPAA) and on how to properly obtain, use, share, Industry Initiative (HGPII), a voluntary association dedicated to maintain and transfer protected data. During CY2020, 100% ethical conduct and business practices of Group Purchasing of employees completed this education. Organizations. HGPII is based on six core purposes, including As part of our annual compliance education, employees also the creation of and adherence to a written code of business complete several online education courses to meet regulatory conduct that establishes high ethical values, quality healthcare, requirements, including programs to satisfy the annual fraud, cost-effectiveness, an open and competitive purchasing waste and abuse education requirements per the Code of process, sound business practices and public accountability. Federal Regulations (CFR) and sub-regulatory guidance for For a complete list of our professional associations, please Medicare Parts C and D plan sponsors. During CY2020, 100% see page 8 of this report. of employees completed this education. For the 14th consecutive year, Premier was named as one Our directors annually attest to their compliance with the of the World's Most Ethical Companies by the Ethisphere® Code of Conduct, the Board Code of Ethics, the Board Conflict Institute, a global leader in defining and advancing the stan-of Interest Policy and Disclosure Statement and the Group dards of ethical business practices. We were selected for this Purchasing Code of Conduct (GPO Code). All sourcing commit- honor from among tens of thousands of companies around tee and advisory subcommittee members receive education the world in recognition of our continuing to raise the bar on annually on our GPO Code, Confidentiality Policy, Conflict of ethical leadership and corporate behavior. Interest Policy and Insider Trading Policy. During CY2020, 100% of directors, committee and subcommittee members completed this education and related acknowledgments. While addressing the challenges of 2020, Premier continues to cultivate trust and lead its employees and the communities it serves with purpose and a sense of corporate citizenship. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 15

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Cyber Risk Management, Data Security and Customer Privacy We rely on digital technology to conduct our business opera- disclosed to third parties in furtherance of the services offered tions and engage with our members and business partners. by us or for internal marketing practices, and is collected, Through a risk management approach that continually assess- stored and maintained in accordance with applicable privacy es and seeks to improve our information technology (IT) and laws and regulations. Our Privacy Policy addresses the require-cybersecurity risk deterrence capabilities, our Information ments of both the California Consumer Privacy Act and General Security, Privacy, Risk Management and Compliance groups Data Protection Regulation, including descriptions of the have formed a functional collaboration to provide leadership categories of data we collect from a consumer, what we do and oversight when managing our privacy, compliance and with that data and with whom we share it and the related cybersecurity risks. purpose. We also monitor the regulatory landscape to ensure we are in compliance with new and changing privacy-related Our cyber risk management, data security and customer regulations that may be applicable to our business. For more privacy practices and policies are built on a foundation of information, please see our Privacy Policy. integrity and transparency. Our information security, cyber risk management and privacy control framework, programs Addressing Cyber Threats and standards are essential in building trust with employees, members, customers and other stakeholders critical to The world has seen a significant increase in cyber-attacks. our success. As the capabilities and level of sophistication of hackers become more advanced, so do the threats they pose. To Privacy Policy effectively tackle this increasing threat, we have operationalized a series of measures that seek to prevent hackers from We collect and process various data files primarily from penetrating our systems (cybersecurity) and trigger isolation, healthcare providers to support their healthcare operations. orchestration and recovery capabilities should hackers pene-This data is typically used for internal purposes, is only trate our systems (cyber resilience). Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 16

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Cybersecurity party to maintain secure/safe backups and established artificial intelligence and machine learning to detect anomalies in our We aim to maintain the appropriate security in place to effec-environment and respond to them. tively mitigate the risk of our systems and networks being compromised. There is no single method that can protect Oversight and Training against every type of attack; therefore, we developed a multi-faceted approach, which we refer to as our Defense in Premier's Audit and Compliance Committee (ACC) oversees Depth architecture (DiD). In addition to monitoring security our cyber risk management program which is designed to control performance relative to the established enterprise monitor, mitigate and respond to cyber risks, threats and security control framework, our DiD protects valuable data and incidents. The ACC reviews periodic reports from our Chief information through a series of defensive mechanisms, where Information Security Officer (CISO), President of Performance if one mechanism fails, another one steps up immediately Services and Chief Financial Officer (CFO), including develop-to thwart an attack. Built with intentional redundancies, our ments in the cyber threat environment and cyber risk mitigation multi-layered approach increases the security of all systems efforts. and addresses our attack vectors. Our leadership team is committed to ensuring that risks related to information privacy laws and regulations are adequately Cyber Resilience managed and appropriate information security procedures While our implementation of cybersecurity best practices are applied throughout the organization. Our CISO and Chief continues to prevent a vast majority of attacks, 100% prevention Privacy Officer (CPO) plan, implement and administer our is not possible. In the event hackers should penetrate our information security and privacy initiatives, including providing systems, cyber resilience capabilities are focused on security regular updates on information security and privacy to our controls and managing risks to our information systems. leadership team, including executive team members and our To protect our assets, we regularly assess security controls to IT Steering Committee as well as the ACC. The CISO's and manage potential events, cyber patterns and attack modes. CPO's teams collaborate on the response and investigation of To provide contingent capital and specialized assistance in the suspected information security and privacy incidents, as well event of an attack, we have procured cyber insurance, partnered as privacy best practices and information, application and with an industry-leading security incident response organization, network security. secured an enterprise grade back-up service provided by a third Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 17

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programs against stringent standards. Upon request, our Vice We promote a strong culture of President of Risk and Compliance can provide our Security security awareness among our Assessment Report (SAR) and Security Compliance Letter of Attestation (LOA). These documents not only serve as prima employees through training and facie evidence of our security measures, but also as official regular communication. attestation that a comprehensive assessment was performed based on criteria relative to the Federal Information Security Management Act (FISMA), Office of Management and Budget (OMB) Circular A-130, Appendix III, Security of Federal Automat-Our CISO has a documented incident response policy for the ed Information Resources, National Institute of Standards and identification and escalation of security breaches and other Technology (NIST) Special Publication (SP) 800-37, Guide for incidents. The policy details guidelines for incident response the Security Certification and Accreditation of Federal Informa-and communication responsibilities. Customers are contraception Systems, NIST Special Publication 800-53A, "Security and ally responsible for informing us of potential security breaches. Privacy Controls for Federal Information Systems and Organi- There were no significant data breach incidents requiring zations," and NIST Special Publication 800-53. disclosure in FY2021. Third-party Technology Supplier Assessment and Compliance We promote a strong culture of security awareness among employees through training and regular communication. We We directly conduct all data processing activities required to have a formal Security Awareness Training program for all provide our services. However, we may engage third-party employees that addresses purpose, scope, roles, responsibili- suppliers to provide services related to our solutions. Prior to ties and management commitment. Training is provided at onboarding third-party suppliers, we assess and ensure they orientation for newly hired employees, and on an ongoing basis provide security and privacy appropriate to their access for all employees, including phishing exercises. During CY2020, privileges and scope of the services provided. Further, third 100% of employees completed our Security Awareness parties are required to agree to appropriate security, confidenti- Training program. ality and privacy contract terms. We outsource our data center needs to third-party providers, Certifications and Third-Party Audits utilizing cloud-based platforms and leveraging their physical Quality and objective assessments are critical to the continued and data security infrastructure. They are required to comply effectiveness of cyber security controls. We routinely engage with our third-party vendor and security protocols, as well as with a reputable, objective and licensed third party to perform a other policies, processes and procedures, in addition to all comprehensive assessment of our controls, capabilities and applicable data privacy laws. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 18

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Government Affairs and Advocacy Our Washington, D.C.-based Government Affairs team acts Our advocacy efforts have led to passage of legislation related as an advocate for our members and the communities they to standards development for electronic health information serve. Every day, we are working to shape federal laws and data, increasing use of application programming interfaces in regulations to align with member efforts to deliver people- electronic health record and claims data systems, protecting centered, high-quality and cost-effective care. the confidentiality of health information and advancing electronic prior authorization. To accomplish this, Premier educates federal and state lawmakers and the executive branch about our members, our industry and the issues that affect our business. We accomplish this by meeting with lawmakers and federal administra- Our Government Affairs team acts as tion staff; activating our members to reach out to their an advocate for our healthcare member lawmakers through our Government Affairs Network which is comprised of executives from our member healthcare provid- alliance and the communities they serve. ers; and through our Employee Political Action Committee (PAC). Our policy positions are developed and approved by a policy committee comprised of leaders in our Government Affairs Network. We have also played a leadership role in advocating for reforms to reduce drug shortages, improve Food and Drug Administra-Healthcare Advocacy tion (FDA) review of drugs and devices, protect the nation's supply chain from disruptions, ensure that group purchasing Our team successfully advocated for laws and regulations organizations' business models can continue to serve health-driving the movement to value-based care and evidence-based care providers, establish a unique device identification system, medicine, improving quality and cost measurement, and and address laws and regulations that inhibit competitive drug promoting healthy and competitive drug, device and supply and device marketplaces. marketplaces. This includes promoting passage and refinement of legislation related to accountable care organizations, bundled To learn more about the advocacy efforts of our Government payment, capitated primary care, bonus payments for participa- Affairs team, please see our most recent Compliance Report tion in alternative payment models and other payment reforms. and visit our Advocacy Newsroom. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 19

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CY2020 political-related spending by our PAC: ~$125,000 Total employee contributions $62,500 Total political disbursements Political Contributions Our political contributions are made through a voluntary, The PAC is overseen by the Employee PAC Advisory Committee eligible-employee-funded PAC. The PAC's mission is to raise comprised of a subset of contributors to the PAC. We share funds to support federal lawmakers who share the vision, information on all contributions made from the PAC with the values and commitment to improving healthcare quality and PAC contributors biannually. The PAC only contributes funds to safety and reducing costs. The PAC is voluntary and bipartisan, federal lawmakers. It does not make any contributions to state contributing to both political parties. Contributions are received policymakers or to organizations that are recognized under and disbursed pursuant to internal contribution guidelines and Section 527 of the U.S. federal tax code and are registered with in accordance with applicable election laws. the Federal Election Commission. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 20

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Stakeholder Engagement We proactively engage with our stakeholders to promote transparency, develop innovative solutions to improve healthcare quality and reduce costs, and garner their perspectives on our business and sustainability efforts. Stakeholder Key methods of engagement Area(s) responsible Outcomes Healthcare Provider Members • Meetings • Member Field Services • Goal achievement • Newsletters • Executives and leadership teams • Innovation and collaboration • Industry conferences • Customer success • Community inclusion • Surveys • Marketing • Transparency • Website • Corporate Communications • Member education • Forums and advisory groups • Public Relations • Sales teams Life Sciences, Commercial • Meetings • Respective business units • Innovation and collaboration Employers and Supplier • Newsletters • Marketing • Goal achievement Customers • Industry conferences • Corporate Communications • Transparency • Website • Public Relations • Customer relationships • Sales teams • Customer education GPO and Direct • Meetings • Member Field Services • Goal achievement Sourcing Suppliers • Newsletters • Supplier Engagement • Transparency • Industry conferences • Marketing • Supplier relationships • Surveys • Corporate Communications • Member education • Website • Committees Investors • Meetings • Investor Relations • Transparency • Earnings calls/webcasts • Executive team • Education • Investor conferences • Public Relations • Access to management • Industry conferences • Non-deal roadshows • Website • Investor day Employees • Meetings • Human Resources • Recruitment of diverse and • Newsletters • Corporate Communications high-quality candidates • Surveys • Diversity, Equity, Inclusion and • Employee retention and • Website and intranet Belonging (DEIB) team engagement • Employee Resource Groups (ERGs) • Employee education • Quarterly performance review and development program Communities • Donations • Human Resources • Community support • Volunteering • DEIB team • ERG events • Executive and leadership teams • CARES Award • Community Development Pillar Business Resource Group Federal and State Legislators, • Meetings • Public Affairs • Support member efforts to improve Policymakers, Regulators and • Newsletters • Executive team health of communities Advocacy Groups • Website • Create healthier markets • Lobbying • Improve data interoperability • Congressional briefings • Advance value-based care and • Regulatory comments payment reforms • Employee political action committee • Transparency • Industry associations and coalitions Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 21

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Our People and Culture Our values - integrity, innovation, passion for performance and focus on people - guide our business decisions and the manner in which we make them and are what make our solutions stand out. Without our employees' focus on our mission and willingness to serve, our ability to deliver value would be vastly diminished. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 22

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Human Capital Management Our employees are our most critical assets. The success and We are focused on demonstrating strong practices aligned with growth of our business depends on our ability to attract, our ethical, respectful and accountable culture, resulting in a reward, retain and develop diverse, talented and high-perform- positive employee experience. We believe that this goal is best ing employees at all levels of our organization, while sustaining supported by our emphasis on giving back to our communities, an environment of anti-discrimination that ensures equal increasing well-being and mental health awareness and access to opportunities. To succeed in an ever-changing and support, and creating a thoughtful, inclusive culture of diverse competitive labor market, we have developed human capital employees where everyone feels they can contribute and grow. management strategies, objectives and measures that drive We recently received the Achiever's annual "50 Most Engaged recruitment and retention, support business performance, Workplaces" award for our commitment to employee-centered advance innovation, foster employee development and support programs. We were also recognized for the outstanding our vision (to lead the transformation to high-quality, cost- achievements of our employee resource groups (ERGs) with effective healthcare), our mission (to improve the health of the 2021 Diversity Impact Awards™ "Top 10 Enterprise-Wide communities), and our values (integrity, passion for perfor-ERG Award" as well as "Executive Sponsor of the Year" by the mance, innovation and focus on people). Our vision, mission Global ERG Network in August 2021. Please visit the Awards and values, objectives and measures, form a framework and Recognition section of our website for a full listing. advanced through a variety of programs and initiatives. For more information, please see our 2021 Annual Report on Form 10-K. Our People Strategy We aim to build a culture of high performing leaders and teams To meet these objectives, our "People Strategy" is anchored with a "People First" growth mindset for evolving our culture upon three foundational goals: and organization, living by our values and maintaining a high • Attract the best people through effective workforce planning level of employee engagement and retention. and recruiting strategy. Our ability to attract, engage, train and retain top talent is • Create a high-performing workforce with clearly defined critical to our success and the value delivered to our members, goals, strong leadership and aligned incentives. other customers, stockholders and other stakeholders. • Create a compelling work environment where employees feel valued and able to contribute to the success of the business through fostering innovation, collaboration and growth. Integrity | Passion for Performance | Innovation | Focus on People We recognize and reward employees who Our successful execution of our "People This is enabled by strategic and intentional consistently display integrity, a passion for Strategy" is dependent upon having the right programs and practices that continually performance, a commitment to innovation talent, in the right place, at the right time, attract, engage, develop, effectively manage and focus on people. equipped to achieve and exceed organiza- and retain talent at all levels while maintaining tional goals. a culture of performance excellence and "People First" behaviors. Strategic and Structure, Talent Effective Reward and Health and Reporting, Leadership Acquisition Talent Recognize Well-being Compliance Management Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 23

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Employee Engagement and Turnover Our continuous listening strategy is centered around our February 2020's score of 72 and above the global engagement "People First" engagement survey which is conducted twice benchmark of 74. We outperformed global benchmarks in all annually by a well-regarded, third-party employee engagement benchmarked questions and produced strong scores in other survey firm to assess our employees' experience, ensure areas. Our leadership team outperformed global benchmarks alignment to our mission and goals and explore the factors for its response to the pandemic and for areas related to that influence a high-performance culture. Through this diversity, equity, inclusion and belonging in the workplace. practice, we empower leaders to utilize survey data insights The survey feedback provides valuable information about our to drive informed action planning at a local team level. workplace culture and employee morale, which may be used to develop or refine our culture. In FY2021, employee engagement remained strong, with increases in all major drivers of engagement. Our employee engagement score was 81 as of March 2021, an increase over Employee engagement remained strong in FY2021 with increases in all major drivers of engagement. Employee Employee Turnover Rate Engagement Score 15% 14% 13% Premier employee engagement 11% score 81 79 Global 72 benchmark 70 Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr FY 18 FY 19 FY 20 FY 21 2019 2020 2021 Employee engagement scores and benchmarks were provided by our third-party services provider that uses a proprietary survey and scoring system. Benchmarks are based on robust data sets that include employees from over 750 organization across 150 countries. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 24

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Total Rewards Philosophy and Program Our Total Rewards program combines competitive compensa- continuously review compensation levels to identify any tion packages with health and wellness resources, employee potential disparate impact of protected groups, and to ensure experiences, talent development and recognition opportunities. internal equity and external competitiveness. Our Total Rewards philosophy and programs are designed to attract and retain exceptional talent at all levels of our Health and Wellness organization. To best execute our mission to improve the health of communities, we realize that we must first start within our own homes. Compensation We therefore consider the health and well-being of our employ-Our Compensation Committee reviews compensation policies ees and their families as a top priority. and programs on an annual basis as part of the Board's risk We provide customizable benefits coverage, fitness and assessment and management responsibilities. Our Human wellness programs and healthy living incentives. We offer a Resources Compensation team is led by our Senior Vice Choice Flexible Benefits Program, providing an array of health, President of People and reports directly to our CEO. This team dental and vision coverages, along with life, disability, flexible prepares a risk assessment report that addresses the incentive spending and paid family leave offerings. compensation structure, plans and processes at all levels of our company for annual review by the Compensation Committee. We also provide a variety of resources from our Employee For a description of our company's executive compensation Assistance Program to support the health and well-being of our program, refer to our Proxy Statement. employees and their families during challenging times, such as: Premier uses a myriad of evaluation methods, including • Let's Talk about Mental Health and Emotional Well-Being external market surveys and geographic cost of living and • Weathering the Storm: The Value of Mindfulness in Times cost of labor assessors, and external experts to ensure our of Stress compensation programs are competitive, equitable and • Finding Balance in a Digitally Driven World reasonable. We use internally developed processes for career- • Managing Mental Health During Times of Social Change level framework and talent and succession planning to provide Our wellness strategy provides outcomes-based financial employees with growth and advancement opportunities which, incentives for employees who have completed activity-based in turn, drive the economic mobility of our workforce. We strive health alternatives such as personal health assessment, to comply with all equal opportunity and pay equity laws and biometric screening and activity goals. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 25

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Talent Development We take a comprehensive approach to talent development by Manager program. This program is designed to help new providing our employees opportunities for personal and career managers align to our management philosophies, requirements growth through a mix of in-person and online learning opportu- and resources, and provide helpful support in transition to this nities. We provide an assortment of instructor-led courses responsibility. for job-specific training, as well as access to online learning We also provide a "Leading at Premier" program for our leaders platforms such as Workday Learning and LinkedIn Learning. Our who have direct reports, providing relevant learning topics to online curriculum includes a selection of nearly 9,000 internally issues managers are facing real time across our business. developed and LinkedIn Learning courses, grouped categorically During FY2021, on a monthly basis, approximately 30% of our with topic areas such as leadership and management; produc-leaders participated in this program. tivity and time management; project management; diversity, inclusion, and belonging; personal and business acumen; Also, as part of our development programming, we have a data analytics; and new hire training. In FY2021, our employee partnership with Professional Women in Healthcare (PWH), participation rate was 94% in these programs, which has a an organization that provides a national voice and progressive positive influence on assessment of employee compensation. leadership for women. Through this partnership, a group of Additionally, tuition scholarships totaling nearly $170,000 were 70 Premier employees, both women and men, participate in a provided during FY2021 to 46 qualifying employees to aid in PWH curated development program, supplemented by internal advancing their higher and continuing education. complimentary education and mentorship to empower women to lead and succeed in their careers, while continuing to We offer a Mentor Program to support our learning culture, support a growing pipeline of women leaders in healthcare. provide career path guidance and support personal growth and development across our business units. Both mentors and We promoted 259 employees during FY2021 and 312 employees mentees gain opportunities for on-the-job growth, new connec- in FY2020, representing 10% and 12% of our total employees, tions and personal success while we gain a talent pipeline of respectively. Overall, we believe our internal development future leaders that is inclusive and diverse. All employees that initiatives are integral in bolstering career path opportunities become managers for the first time are invited to join a New and advancements for employees. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 26

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Recognition Diversity, Equity, Inclusion and Belonging We recognize and celebrate the outstanding, values-driven Improving the health of communities is more than an ambitious achievements of our employees through our Premier Individual goal; it is our mission. Solving the complex challenges that we and Team Values Awards for which individuals and teams are face requires a greater diversity of thought, cross-cultural nominated and selected as winners by their peers. Premier's representation and engagement. We know that a diversity of Values Awards are our most prestigious employee recogni- perspectives, experiences and backgrounds is a powerful way tion, presented to employees and teams that, through their to unlock new ideas and better understand the needs of others. daily behaviors and accomplishments, exemplify our values of Integrity, Passion for Performance, Innovation and Focus Our Strategy on People. Individual and Team Values Award recipients are We believe that the positive impact of our Diversity, Equity, recognized at corporate events and receive a substantial Inclusion and Belonging (DEIB) approach is far reaching, not monetary award. We also provide an online rewards program, only within our company, but also for the communities and Values in Action, to strengthen our culture of recognition by members we serve. Our new Chief Diversity and Inclusion promoting peer-to-peer appreciation. Recognized employees Officer was hired in 2020 to manage our DEIB strategy and can award and/or accumulate points that can be used to reports to our CEO with oversight by our Compensation purchase merchandise, gift cards or tickets or make Committee and Board. Our DEIB Council is comprised of charitable donations. employees and leaders and is our governing committee that defines, drives and supports our four strategic DEIB pillars designed to accelerate how we provide health and wellness solutions to an increasingly diverse world: FOUR STRATEGIC DEIB PILLARS 1 2 3 4 LEADERSHIP PEOPLE AND COMMUNITY SUPPLIER AND CULTURE WORKPLACE DEVELOPMENT DIVERSITY OUR MISSION: TO IMPROVE THE HEALTH OF COMMUNITIES The positive impact of our DEIB approach is far reaching, not only within our company, but also for the communities and members we serve. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 27

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Employee Resource Groups We support Employee Resource Groups (ERGs) as a vital part Our ERGs provide a way to channel information that enhances of our culture, helping us build an environment of belonging, our employees' ability to network with peers of similar interest equity, inclusion, diversity awareness and a sense of company and fosters a sense of belonging throughout the company, even pride. These groups and other company programs provide while many of us are working from home. We have 10 ERGs opportunities to listen, learn, mentor and grow and serve as that bring our employees together across business units and business resource advisory groups to assist leadership with the locations around the country: cultural development of the organization by providing critical • APEX (Asian Indian Professionals for Excellence) feedback on their workplace experiences and passion around community development. • Asian Employees & Allies As part of this work, we created a pledge to serve as our guide: • Black Professionals & Allies Connect • Disabled Employees & Allies • Generations Working Together Demonstrate commitment and • Latin Employees & Allies accountability for modeling behavior that drives diversity, inclusion and belonging. • LGBTQ+ Employees and Allies • Member Field Services Advisory Council on Diversity & Inclusion • Military Veteran Employees & Allies • Premier W.O.M.E.N. Through our ERGs and other company programs, we provide opportunities for our colleagues to listen, learn, mentor and Cultivate and support a grow. Reflecting our focus on nurturing a culture of diversity, values-driven culture that promotes inclusiveness, innovation, openness, equity, inclusion and belonging, every member of our executive listening, learning and compassion. team acts as a sponsor for one or more ERG. Build and maintain a diverse workforce at all levels of our organization, identify, attract and retain a pipeline of diverse and qualified candidates through targeted outreach, recruitment, employee development and selection. Create a work environment that assures equal access to opportunities for professional growth and advancement. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 28

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Employee Diversity Metrics Diversity, equity, inclusion and belonging is part of our organization's cultural DNA and critical to our success. Our vision is to maintain a workforce that is reflective of the ethnicity, race and gender of the U.S. working population. All our employees are located within the U.S., and we had 42 employees that qualified as foreign nationals as of June 30, 2021. The data below reflects our workforce diversity metrics as of June 30, 2021. We assess workforce diversity information as part of a broader effort to identify areas of continuous improvement to ensure that we are building and retaining a diverse workforce. We also analyze this data to determine how best to attract and develop a pipeline of diverse and qualified candidates and promote an inclusive, anti-discriminatory environment of belonging that ensures equal access to opportunities. Employee Gender Representation (Percentage of Total Workforce) Employee 53% 47% Female Male Race and Ethnicity Representation (Percentage of Total Workforce) 2% Other* 4% Hispanic or 11% Latino Asian 10% Black or African American 74% White *Includes full-time employees who self-identify as either Native Hawaiian, Pacific Islander, American Indian, Alaskan Native, or as being of two or more races. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 29

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Our Social Responsibility Our mission is quite simple: to improve the health of communities. We view this as not only our mission but our social responsibility. Ultimately, we are successful because our employees are willing to go above and beyond for our members and other customers every day. "CEC started as a food pantry in my home and has grown to serve more than 37,000 people per year, supported entirely by volunteers. Because of our efforts, fewer children wonder where their next meal will come from, fewer residents will be late to pay bills and more of my neighbors will have access to healthcare." Nadine McCrea Founder & President, Community Enhancement Collaboration, Inc. Recipient of the 28th annual Monroe E. Trout Premier Cares Award Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 30

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Improving Patient Outcomes Cost-effectively Monroe E. Trout Premier Cares Award Premier plays a critical role in the rapidly evolving healthcare Each year, we present the Premier Cares Award to recognize industry by collaborating with members to co-develop long- exemplary efforts by nonprofit community organizations to term innovations that reinvent and improve the way care is improve the health of populations in need. We have presented delivered to patients nationwide. With our differentiated the Cares Award annually since 1991, when it was created by combination of integrated data and analytics, collaboratives, Dr. Monroe E. Trout, former CEO of American Healthcare supply chain solutions and advisory and other services, we are Systems, one of our heritage organizations. Applications for uniquely positioned to enable better care and outcomes at a this $100,000 award are rigorously judged on innovation, lower cost. outcomes, ease of replicability, financial impact and future vision. We honor qualifying programs that support populations In order to strengthen our ability to have a positive impact, we excluded from, or underserved by, the mainstream health apply our comprehensive technology and services platform, delivery system, such as those who: PINC AI™, containing over 20 years' worth of quality, cost and operational data points gleaned from more than 45% of U.S. • Suffer severely limited access to medical, dental or hospital discharges, as well as approximately 812 million mental healthcare providers hospital outpatient and clinic encounters and nearly 132 million • Bear high infant mortality physician office visits. PINC AI™ provides a unique opportunity • Face low income and extreme poverty to use real-world data to conduct evidence-based and popula- • Experience high levels of drug abuse tion-based analyses of drugs, devices, treatments, disease • Are economically or medically vulnerable states, epidemiology, resource utilization, healthcare econom- • Possess a unique care need that is not being met ics and clinical outcomes. PINC AI™ delivers robust, real-world through traditional means data to drive informed decisions that are actionable to improve quality, lower costs, reduce risks and help ensure patient safety. Recent Premier Cares Award Recipients 2021: Community Enhancement Collaboration, Inc., Supporting the Medically Underserved a nonprofit dedicated to eradicating food insecurity. We aim to lead the transformation to high-quality, cost-effec- 2020: Call to Freedom, a nonprofit focused on navigating tive healthcare by supporting the medically underserved a healthy path for victims of human trafficking. throughout our communities. Through our data and analytics 2019: Lifehouse Maternity Home, a nonprofit providing a capabilities, collaboratives and other tools, we help healthcare home and compassionate care for high-risk pregnant providers better understand underserved populations, the women and their babies. severity of health-related problems and the root causes of disparate outcomes, connecting providers to best practices 2018: Hildegard House, a nonprofit providing a home and and care bundles for remediation. Some of the initiatives we compassionate care for individuals at the end of life. have in place to help address the medically underserved include those dedicated to maternal health, opioid abuse, Improving Maternal Healthcare in Underserved Communities disparity gaps, social determinants of health and chronic We are partnering with the U.S. Department of Health and health conditions. Human Services (HHS) Office of Women's Health (OWH) to work towards a better understanding of the current state of maternal-infant harm and death to improve the quality of care, particularly in hospitals that serve vulnerable populations. OWH is leveraging our data to scientifically examine the root causes of maternal-infant mortality and morbidity, including significant and persistent racial and ethnic disparities, and translate these findings into evidence-based care delivery. This effort unites a cohort of more than 200 diverse hospitals from every state and the District of Columbia, largely caring for the underserved to implement and scale standardized, evidence-based practices to identify and reduce factors that are proven to contribute to adverse outcomes. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 31

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Improving Health Through Community Development To advance our mission, we provide our members with many about taking responsibility to contribute to our mission of the tools needed to support the communities in which they because, by virtue of our footprint, we live in the communities operate. We also believe it is our social responsibility to do our we serve. We believe that our commitment to support these part in directly improving the health of communities. In this nonprofit organizations in helping the underserved is a corner-spirit, Community Development is one of the four strategic stone of our mission and social responsibility. pillars of our DEIB strategy. We drive coordinated organizational community development initiatives to address the root causes Social Responsibility Program of social determinants of health disparities such as social Our Social Responsibility Program reflects our commitment justice, education, nutrition, poverty, maternal health and to embracing our social responsibility by nurturing the commu-homelessness. nities in which we live and work. The program's framework We deliver upon our social responsibility through financial includes volunteering and financial support for those communi-donations and employee volunteer efforts to support nonprofits ty organizations and causes important to our employees during dedicated to improving community health. Our employees care FY2021, as outlined below: Program Opportunity Description Volunteering During We provide each employee with up to four hours of paid time off quarterly. In FY2021, employee volunteer hours totaled 329. Work Hours Volunteering Outside For every eight hours an individual employee volunteers during non-work hours, we will donate $100, up to a maximum of Work Hours $200 per employee, per fiscal year to the charitable organization. Last year, we donated $3,500 to various charities to match our employees' volunteer support. Corporate Gift Matching Employees may donate a minimum of $50 to an eligible charitable organization to receive a 50% Matching Gift up to $2,500 per employee per fiscal year. Last year, we matched $130,315 of our employees' charitable donations. Jeans Day Program Employees may also contribute toward a monthly Jeans Days to support an employee-nominated, national healthcare-related charitable organization, such as COVID-19 relief efforts. In CY2020, our employees donated nearly $45,000 through this program to the following organizations: January Hands for Holly Fund July Neuroendocrine Tumor Research Foundation February American Heart Association August Huntington's Disease Society of America, Inc. March Autism Speaks September Cure PSP April The Guthy-Jackson Charitable Foundation October Scott Hamilton Cares Foundation May Child's Play November JDRF (Juvenile Diabetes Research Foundation) June Barbells for Boobs December Dogs for Better Lives Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 32

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We believe it is important to be a good neighbor. We encourage proceeds to the Stop AAPI Hate nonprofit organization which employee volunteering with various nonprofits and corporate- tracks and responds to incidents of hate, violence, harassment, sponsored charitable events, from making life-saving donations discrimination, shunning and child bullying against Asian at local blood banks to building healthy snack packs for A Americans and Pacific Islanders (AAPI) in the U.S. Child's Place and The Boys & Girls Club, to supporting COVID-19 In total, our ERGs donated nearly $6,700 throughout FY2021 relief efforts. We also typically host a companywide volunteer to various community development initiatives. For more afternoon where our employees gather and give back to our information on our ERGs, please see the discussion of our local communities by supporting local charities. DEIB strategy. Employee Resource Group Social Responsibility Initiatives Our ERGs aim to bring their spirit of inclusion and belonging We believe it is important to be a good to transform our communities through both volunteering and charitable donations that support various nonprofits. Over the neighbor. We encourage employee past year, we supported various nonprofits aligned with each volunteering with various nonprofits and ERG's particular area of focus. For example, our CEO served as executive sponsor for our Latin ERG to raise funds for Family corporate-sponsored charitable events. Reach, a national non-profit organization dedicated to eradicating the financial barriers that accompany a diagnosis of cancer. With 42 recipes from over 14 countries, our Asian Employees & Allies ERG created the "The Premier Melting Pot: A Collaborative Cookbook" to connect with others through a shared love of food, tradition and culture. The ERG then donated the book 42 recipes DEFINITIONS OF A MELTING POT + countries 1: A place where a variety of peoples, cult or individuals assimilate into a cohesive whole. Our Asian Employees and Allies ERG created the 2: A process of blending that often results in "The Premier Melting Pot: A Collaborative Cookbook" invigoration or novelty. to connect with others through a shared love of 3: A place where different types of people live food, tradition and culture, then donated the book together and gradually create one community. proceeds to the Stop AAPI Hate nonprofit organization which tracks and responds to incidents of hate, violence, harassment, discrimination, shunning and child bullying against Asian Americans and Pacific Islanders (AAPI) in the U.S. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 33

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Supply Chain Management Our supply chain approach is designed to provide our members with valuable access to scale efficiencies, actionable data intelligence and information resources to help our members deliver higher quality and more cost-effective healthcare. We believe that our partners throughout the supply chain rely on our integrity, expertise and professionalism. We aim to provide our members with high quality products and services at the lowest price, and suppliers count on us to maintain competitive bidding processes that are fair, timely and understandable. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 34

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Supply Chain Services Our GPO members provide us with Our Supply Chain Services business supports our members in managing their non-labor expense and capital spend through additional insights into the latest a combination of products, services and technologies. These challenges confronting the industry include our group purchasing organizations (GPOs) serving acute, non-acute,non-healthcare and alternate sites; supply we serve and innovative best practices chain co-management; and direct sourcing activities. that we can share broadly throughout Supply Chain Services leverages the collective buying power of our membership. our GPO members that represent many of the country's most progressive and forward-thinking healthcare organizations. Our members represent many of the country's most progressive and forward-thinking healthcare organizations. The advances in clinical outcomes, efficiency or safety. We also participation of our healthcare providers gives us additional offer opportunities for businesses owned by minorities, women insights into the latest challenges confronting the industry, and veterans to submit bids on short-term contracts. as well as innovative best practices we can share broadly. Expedited Sourcing Process. To support our members and other healthcare providers during the COVID-19 pandemic, Group Purchasing Organizations our GPO established an expedited sourcing process (ESP) >$69 billion On behalf of our members, we to quickly include additional suppliers on contract to product negotiate approximately 3,100 categories experiencing shortages and supply chain disruption. total GPO purchasing contracts with over 1,350 suppliers The ESP incorporates products in categories that are under volume by all members through our GPOs, providing our protective allocation, expected to move into allocation, on participating in our GPO members with access to a wide backorder or currently in shortage, with the goal of rapidly during CY2020 range of products and services, increasing access to critically needed supplies. This process including medical and surgical enables us to meet market and member needs in a matter of products, pharmaceuticals, laboratory supplies, capital weeks instead of many months while still maintaining the equipment, IT, facilities and construction, food and nutritional quality and due diligence for which our standard sourcing products and purchased services (such as clinical engineering process is known. and document shredding services). Total purchasing volume by Sourcing Committees. We facilitate service line-specific all GPO members was more than $69 billion for CY2020. sourcing committees to determine which suppliers are awarded Through our GPO programs, we aggregate member purchasing group purchasing contracts. Over 400 individuals, representing power to negotiate pricing discounts and improve contract more than 130 of our U.S. hospital members, sit on 26 of our terms with suppliers. We do not take title to the underlying strategic and sourcing committees and, as part of these equipment or products purchased by members through our committees, use their industry expertise to advise on ways to GPO supplier contracts. improve the development, quality and value of our products and services. Our contracting process is guided by what we believe is the industry's most comprehensive GPO Code, which supports Clinical Councils and Selection Criteria. Our supplier selection healthy competition while encouraging new and innovative criteria vary by category and are created by our internal Clinical products to enter the market. Our sourcing process ensures Councils with member subject matter expertise on the product that factors beyond price are given serious and appropriate category being reviewed. Our Clinical Councils are comprised consideration. Clinical efficacy and improved patient care are of multi-disciplinary members with backgrounds including especially important to us and our members. pharmacy, laboratory, nursing, surgical and cardiovascular areas. The Clinical Councils establish the core evaluation GPO Supplier Selection Process framework that best accounts for safety regulations, clinical trials, product reviews and applicable certifications related to Supplier Contracting Overview. Contracting opportunities key assessment factors such as: become available for supplier categories at varied times over the year, and all prospective suppliers have the ability to • Quality • Environmental impact express interest in participating in our competitive bidding • Safety • Diversity process. Once available, new and incumbent suppliers can • Clinical impact • Breakthrough potential submit bids. The full award process typically takes one year. • Cost effectiveness • Member input Suppliers must wait until a contract is open, unless their • Physician preference product is a groundbreaking innovation that offers significant Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 35

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Core Tenets of Our Selection Process Stages of Our Supplier Selection Process Our product selection process is designed to be: Standardized, but flexible. Many factors go into the ultimate selection of a product for contract. The best available clinical and market knowledge and expert review give our Member Sourcing KICKOFF Committees and Clinical Councils the information they need to make sound product choices. When a product category opens, the evaluation process kicks off with supplier electronic Evidence-based. Products must be approved by the FDA and registrations with contract bids and requests demonstrate that they perform what they are designed to do in a 1 for information (RFI) on their products and/or safe and effective manner. Several resources are used to gather services through PASSport, our web-based, information about products, including randomized controlled trials electronic sourcing tool used to manage and record all sourcing and bidding activities from published in peer-reviewed professional journals, case studies, a centralized location. market guides or product comparisons, field trials, clinical staff surveys, quality monitors, customer satisfaction data and financial data. In addition, our Safety Institute may evaluate product-related information/data involving patient and worker safety as well as SHORT LIST APPROVAL environmental issues. The submitted contract bids and RFIs are Metric driven. The functionality of a product must be able to be 2 reviewed against the evaluation standards and criteria established by our service line-specific objectively measured. Clinical Councils, which then narrows the Transparent. Our goal is to ensure that all suppliers and products candidate pool to an approved shortlist. are considered and evaluated in a consistent, timely and fair manner, regardless of the size of a company, the breadth of its product line, or its relationship with our company. Dynamic. Our product planning process is shaped by our PRODUCT CATEGORY AWARD members' needs. The supplier applications and commercial proposals are reviewed with appropriate Diversity friendly. We encourage interest from small and diverse 3 Sourcing Committee throughout the selection suppliers, including through our Diverse Supplier Program, which process: at kickoff, after the initial RFI, during provides minority, women and veteran-owned business enterprises negotiations and then for the final assessment. the opportunity to partner with us to support our efforts to continu- The Member Sourcing Committee determines which suppliers are awarded contracts. ally lead the way in healthcare innovation. We also support our Sourcing Education and Enrichment for Diverse and Small Suppliers program, which is aimed at increasing the number of small, diverse and regional enterprises doing business with members of our MEMBER PURCHASING healthcare alliance. Suppliers have access to subject matter Once a supplier is awarded a contract agree-experts to develop robust marketing strategies to help them grow ment, our members have access to the product and scale their business and have a positive economic impact on detailed information through our online catalog disadvantaged communities across the country. For more informa- 4 at the prices we negotiated with the supplier. tion, see the Supplier Diversity section of this report. The online portal enables members to purchase Interdependent contracted products and manage the contracts . No product evaluations or contracting decisions with suppliers. The suppliers distribute are made in a vacuum. We rely on the input of our members for purchased products directly to members. decisions regarding new product categories and individual contracts. Member-based committees comprised of clinicians and others regularly meet to review new products and award contracts. Ethically driven. We require all suppliers to abide by the Healthcare ONGOING SUPPLIER ASSURANCE Group Purchasing Industry Code of Conduct, which underscores The contract agreement typically has a term the commitment of our organizations to help healthcare providers 5 of three years, after which the supplier must deliver the best in quality healthcare at a reasonable cost, and to engage in the supplier assessment process to do so in a way that is ethical and fair to all participants in the renew the agreement. healthcare marketplace. For more information on our supplier responsibilities and accountability, please visit our Supplier page. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 36

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We partner with a third-party supply chain management helps suppliers introduce groundbreaking products to our GPO provider for ongoing supplier and site assessment and monitor- members without them having to wait until the next bidding ing of a broad range of environmental and social issues, cycle for access to such products. Through a rigorous, four-including identifying chemical spills, environmental hazards, stage evaluation process, our sourcing committee reviews regulatory changes, labor disruptions or violations, fines, legal healthcare products or technologies that revolutionize treat-actions and actions under the FDA, European Medicines ment or processes (Breakthrough Products) that have the Agency (EMA) or Occupational Safety and Health Act (OSHA). potential to significantly improve patient and/or hospital staff We also incorporate risk scoring into our supply chain manage- safety and non-clinical operational efficiencies and deliver ment processes to analyze trends, identify risky suppliers or improved health outcomes or cost savings. Based on the parts, and mitigate risks where possible. During FY2022, we evidence presented, a member sourcing committee decides plan to incorporate supplier screening and ESG assessment whether to award a contract to a supplier mid-cycle. analytics to continue to advance our supply chain due diligence and risk management practices. Supply Chain Co-Management We manage and co-manage the supply chain operations for Breakthrough Process members to drive down costs through processes, including In support of our mission, we encourage the development of value analysis, product standardization and strategic resource healthcare technology that significantly improves healthcare allocation and improved operational efficiency. quality, outcomes and/or processes. Our technology program Our subsidiary, S2S Global, increased the production of masks, gloves and other personal protective equipment from multiple countries and regions to lower risk and increase redundancy. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 37

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Direct Sourcing We offer our members the opportunity to purchase directly Annual instructor-led anti-bribery and human trafficking sourced products in the healthcare space through our subsidi- education for all our S2S employees with webinar sessions for ary, S2S Global (S2S), for items such as patient gowns, exam S2S sourcing agents and other personnel who work with S2S, gloves, lab coats, masks and incontinence products. These including our Anti-Bribery and Human Trafficking Policies and products are typically offered to our members through our Procedures as provided in the Compliance and Ethics section GPO. We believe that our direct sourcing activities help of our corporate website. We continue to engage the Interna-our members and other customers access a diverse product tional Business Ethics Institute to develop and deliver the portfolio and help provide transparency to manufacturing annual education, review our Anti-Bribery and Human Traffick-costs and competitive pricing. We market our direct sourcing ing policies and increase knowledge of when and where to seek activities primarily under the PREMIERPRO® brand. advice. In 2020, 100% of S2S employees and other personnel that work with S2S, including our leadership team, completed Given the global footprint of our contract manufacturing this education. suppliers, our corporate social responsibility practices at S2S are paramount. S2S has adopted strong anti-bribery standards, Ongoing internal evaluation of potential risks via monitoring and seeks to identify and prevent the occurrence of forced by our legal and compliance departments. labor and human trafficking in our supply chain through: Anonymous third-party reporting portal, Premier's WorkSmart Annual social responsibility audits of our contracted manu- Integrity Help Line, is available to anyone to report unethical facturers conducted by an international third-party auditor. behavior, misconduct and suspected criminal or illegal activity. Audits are both announced and unannounced and include private worker interviews and inspections of manufacturing and living facilities. All findings are reported at the end of each audit. Manufacturers that repeatedly fail to meet our standards as set forth in a corrective action plan are terminated. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 38

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Compliance and Ethics We recognize the value of integrity - integrity of the individual, In addition, it is the responsibility of all sourcing committee and the enterprise and our alliance. Integrity forms the basis of our advisory subcommittee members to administer our corporate successful business operations and underpins all our business matters honestly and efficiently, and to exercise the best care, relationships. Our alliance members rely on our integrity, skill and judgment for the benefit of our company, consistent expertise and professionalism to receive the best products and with our ethical standards. For more information, please see services at the lowest price. Likewise, suppliers count on us to our Member Committee Conflict of Interest Policy. maintain competitive bidding processes that are fair, timely and understandable. Vendor Grievance Process All suppliers are expected to uphold our high standards and Our success is firmly rooted in develop-comply with the responsibilities and obligations of suppliers ing mutually beneficial relationships with when doing business with us, including responsible business 0 our vendors. We take vendor grievances practices as it relates to human rights, anti-bribery and anti- seriously and offer several ways to corruption standards. For more information, please see our grievances filed resolve possible issues. We have our own Supplier Standards and Suppliers sections on our website. by suppliers in vendor grievance process to ensure a CY2020 vendor's ability to access our contracting Over the past year, we improved our vendor management with staff and leadership to address concerns a centralized risk management and compliance cloud-based or complaints relating to the contracting award process or platform. The solution provides advanced capabilities to map decisions. In addition to our vendor grievance process, a vendor data across our environment, relate certain business areas to may request further review of any outstanding concerns specific vendors, improve accuracy in capturing information through the Healthcare Group Purchasing Industry Initiative from both internal resources and external vendors and develop (HGPII) Independent Evaluation Process, facilitated by the tighter IT controls to ensure vendor compliance with laws and American Arbitration Association® (AAA). For the calendar year regulations. ending in CY2020, there were no grievances filed by suppliers. For more information, please see our Vendor Grievance Policy. Our success is firmly rooted in develop- Product Quality and Safety ing mutually beneficial relationships with We act as a trusted connection point for healthcare providers, our vendors. suppliers and the government, by seeking to promote access to safe, high-quality products within our supply chain. GPO Quality and Safety Assurance GPO and Member Committee Compliance Our GPO operational contracting analysis is designed to ensure In providing our group purchasing services, we serve the that products provided by GPO suppliers are FDA-approved interests of our member hospitals and health systems and, as required and perform as intended in a safe and effective through them, the patients and communities they serve. manner. Several resources are used to gather information Foremost among those interests are good clinical outcomes about products, including randomized controlled trials pub-for patients and cost-effectiveness in care processes and lished in peer-reviewed professional journals, case studies, utilization of resources such as supplies, pharmaceuticals and market guides or product comparisons, field trials, clinical equipment. In so serving, we seek to act ethically, accountably staff surveys, quality monitors, customer satisfaction data and fairly with respect to all participants in the healthcare and financial data. In addition, our GPO may evaluate product- marketplace. Each GPO is bound to the terms outlined in related information/data involving patient and worker safety our GPO Code. During CY2020, 100% of our GPO Member as well as environmental issues. For a more detailed overview Committee participants completed their annual Conflict of of our vendor selection and management process, please see Interest attestations. the Supply Chain Services section of this report. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 39

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Recall Policies and Procedures Safe Healthcare Resources Our Quality and Safety assurance begins with the initial supplier We provide safety resources and tools to promote a safe bid submission. During the Kickoff stage of our Supplier healthcare delivery environment for patients, workers and their Selection Process, our RFI requires that each supplier disclose communities. Our goal is to assemble news and technical information related to product category regulations, including resources that help busy healthcare professionals effectively FDA inspection and clearance. Additionally, each supplier must tackle the challenge of preventing harm and fostering a safe provide its recall policies and procedures, including manage- and healthy healthcare environment for everyone - from ment of recall notifications, customer engagement, order patients and workers to the public. substitution and expectations regarding turnaround time The Premier Safety Institute®, a publicly accessible resource, thresholds. This information is reviewed by our service line- was designed to provide safety resources and tools to promote specific Sourcing Committees and Clinical Committees. a safe healthcare delivery environment for patients, workers Contracted suppliers are expected to comply with FDA require- and their communities. Launched in 1999, and aligned with ments for actions to be taken related to products (medical our vision and mission, the Safety Institute helps to improve devices, drugs, biologic products) that are found to be defec- the health of communities and lead the transformation to tive, could pose a risk to health or are in violation of FDA high-quality, safe and cost-effective healthcare. The Institute's regulations. This includes notification to the FDA, as well as website, launched in June 2001, was designed for busy collaboration with our GPO and subject matter experts to notify clinicians and others in need of curated content and resources the members, provide support and advice regarding supplier from credible sources to help support quality and safety safety incidents or recalls, and conduct follow-up checks to improvement efforts. assure successful resolutions. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 40

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The Safety Institute served as the original lead for Premier's products, all while driving tangible environmental stewardship efforts, such as GreenHealthy®, S2S savings to our alliance members. a program supporting our commitment to protecting the S2S's internal Quality Assurance environment and maintaining a safe and healthy climate for Quality Assurance team, along with the Quality patients, workers and communities, which includes the internal program uses industry Inspection team from our overseas corporate-wide "Say Yes to Green" program and a healthcare best practices to deliver exclusive sourcing agent, conduct energy reduction initiative. The Institute partnered with our GPO quality products both supplier and product validation to launch Premier's initial Environmentally Preferable Purchas- throughout the manufacturing ing Program, which featured such innovations as a latex-free process. Members conduct product validation and pre-produc-product list. The search capabilities for specific latex-free tion evaluation via our S2S Clinical Committee. Member products were enhanced by standardizing the nomenclature feedback also drives product improvements throughout the of key environmental attributes. contract cycle. We continue to enhance the role of the Safety Institute, and Supplier validation includes third-party auditing that covers it now also focuses on thought leadership. The Institute manufacturing specifications and facility capabilities (e.g., continues to provide our company, our members and others ISO9001, ISO13485, GMP, etc.). Products are inspected during with subject matter expertise, grounded evidence and timely production through random sampling prior to shipment and via resources for contemporary topics, such as COVID-19, Opioid inbound and random distribution center inspections to monitor Stewardship and Influenza Season-2021-2022. product consistency over time. Our third-party accredited product testing process covers all critical quality measures S2S Quality Assurance in Direct Sourcing specific to each product, including, but not limited to, claim verification, tensile strength, viral penetration and product Our S2S Quality Assurance program for our direct sourcing performance. option incorporates industry best practices to deliver quality GreenHealthy® is a program supporting our commitment to protecting the environment and maintaining a safe and healthy climate for patients, workers and communities. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 41

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Counterfeit Drugs and Traceability Our portfolio of pharmacy contracts covers more than 180 pharmaceutical suppliers and over 15,000 products, including branded and generic pharmaceuticals, compounding products, diabetic supplies and over-the-counter medications. We contract with suppliers approved by the Food and Drug Administration (FDA) and distributors that are authorized to do business with and by our suppliers. Distributors engaged in known grey market activity (e.g., selling Premier private-label products when they are not on contract with Premier) or price gouging on shortage-impacted drugs will not be awarded a contract with us. Through our pharmacy program, we contract with manufacturers of both commercially manufactured pharmaceuticals and 503B-manufactured pharmaceuticals. These manufacturers either deliver their products directly to the healthcare provider or they ship through authorized wholesalers and distributors who abide by Drug Supply Chain Security Act (DSCSA) regulations for tracking and tracing the ownership and delivery of pharmaceuticals. Upon receipt, the provider of a pharmaceuti- We contract with distributors that purchase pharmaceuticals cal product can track its movement through the supply chain for our GPO members directly from the manufacturer, thus from the manufacturer through a distribution channel to minimizing the chance for diversion or counterfeiting. In themselves. Our members and contracted distributors abide addition, with respect to 503B suppliers that are on contract by DSCSA rules and regulations. We offer supplier contracts with Premier and supply drug-shortage products to our for members with three DSCSA track-and-trace technology members, we have a process whereby we inspect each supplier solutions to assist our members in assuring the integrity of and require a lengthy questionnaire to be completed over the the drug supply chain. course of the life of the contract, or we will not include that supplier in our program. If a healthcare provider has a question or concern about a We offer supplier contracts for pharmaceutical product they purchased from the manufacturer members with three DSCSA track- or wholesaler/distributor and that concern is initially shared with us, we put that provider in touch with the appropriate and-trace technology solutions to individuals at the manufacturer or wholesaler/distributor to assist our members in assuring the discuss the concern and any appropriate action that needs to be taken regarding the individual product in question. integrity of the drug supply chain. In addition, we are on a variety of FDA and other industry mailing lists and receive immediate notification of any pharmaceutical recalls. This allows us to understand the nature of the recall and if it is a product and/or manufacturer with which we have on contract and if there is a need to discuss appropriate action with the supplier. Our members are alerted to shortages, recalls and other safety incidents through a weekly pharmacy newsletter. Time-sensitive updates to members on pharmaceuticals are provided through email. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 42

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Environmental Considerations We are committed to supplying our member health systems Our sourcing process includes questions about the existence with products that support the health of their patients, staff of chemicals of concern, recyclable or recycled packaging and and the populations they serve. As part of this commitment, responsible resources in their products. The Chemical Footprint our sourcing committees include environmental impact data Project (CFP) provides an independent assessment solution to in their contracting decisions. Enabled by our data-driven help track and encourage the use of safer chemicals. As a CFP approach, forward-thinking supply chain teams are driving signatory, and through the support of our individual members, continued green innovations in healthcare that are cutting we help accelerate the adoption of safer and environmentally costs over the long-term, reducing environmental impact and sustainable chemicals by industry suppliers. minimizing negative consequences on public health. Contracted products with environmental attributes are highlighted in our product catalog for use by our member health Environmental Assessment Process systems as part of our work to integrate critical environmental We work with suppliers to ensure environmental sustainability impact data for medical and non-medical products into the information is made available before purchasing decisions are purchasing process for hospitals, health systems and other made. We request extensive information from our suppliers provider organizations. The information provided by suppliers on environmentally preferable policies and practices and are is used by both our purchasing committees when making guided by our Environmentally Preferred Purchasing (EPP) contract award decisions and by our members more generally Council. The EPP Council is comprised of sustainability as they endeavor to meet sustainability goals. specialists from a cross-section of member health systems and advises on environmental matters for contracts. The EPP Member Support and Partnerships Council also acts as a forum for members to discuss best We work with member health systems in their varying organiza-practices to drive sustainability in healthcare, solve common tional EPP initiatives. These initiatives include efforts to challenges and drive continuous improvement. Recent eliminate certain chemicals from their health systems, reduce discussions have focused on plastic elimination in the food their environmental footprint through reprocessing, utilize service setting, composting and waste disposal, latex-free products with recyclable packaging and content to eliminate product lists, and contractual barriers to increased reuse waste and greenhouse gas emissions and reduce energy usage and reprocessing. through the purchase of energy efficient electronics. Through support of these efforts, we are working to address health-care's role in climate change. Enabled by our data-driven approach, forward-thinking supply chain teams are driving continued green innovations in healthcare that are cutting costs over the long-term, reducing environmental impact and minimizing negative consequences on public health. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 43

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We provide data and support to our members allowing them on how GPOs can support HAN's dual objectives of supporting to achieve their own environmental objectives. For example, local economies and furthering environmental justice. some members are pursuing the elimination of chemicals of concern from certain product categories in accordance with Transportation and Logistics industry guidelines established by Practice Greenhealth and We provide our GPO members with direct sourcing options the Healthcare Anchor Network (HAN). Combining member through our subsidiary, S2S, primarily for commodities, as purchasing data within our GPO supply chain with our EPP discussed in Global Direct Sourcing section above. Most supplier information allows our members to track and monitor of these direct-sourced items are produced by suppliers in compliance with their sustainability targets. Southeast Asia. Understanding that the enormous challenge of improving We rely on third-party transportation providers who use fuel healthcare's environmental footprint can only be solved by and energy on our behalf to transport our directly sourced close cooperation, we foster ties with all goods via various modes of transportation, including air, ocean concerned parties. We have a long history and road. We take a holistic approach to our energy manage-with Practice Greenhealth and continue to ment to seek to optimize delivery efficiencies within the value support their efforts. We have also collabo-chain we support between our members and suppliers. rated closely with HAN, providing feedback Our Holistic Approach We exercise a process of continual feedback and process refinement to seek to optimize practices that minimize the time, cost and environmental impact of our order fulfillment operations, as highlighted below: 1 2 3 4 Goods from Southeast Asia Once these containers arrive at a Once at the distribution For the final direct-to-customer delivery, are typically shipped to us U.S. port, they are delivered by center, the products are we again utilize third-party diesel trucks. through container ship third-party diesel trucks to one of offloaded and housed Once ordered, products reach the customer vessels, which we believe our two leased distribution within the warehouse through parcel mode for small items, and create a smaller carbon centers, strategically located at until ordered by a either full- or limited-truckloads for larger footprint when supporting each coast (Charlotte, North customer, using electric items. We continually review and manage our international transporta- Carolina, and Riverside, California), forklifts and automated this final order fulfillment stage to utilize tion needs as compared to to best minimize distance require- technology features. full-truckloads whenever possible to best airborne delivery options. ments and carbon footprints of that maximize delivery efficiency and minimize delivery transportation. the carbon footprint. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 44

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We employ eco-friendly practices at our leased distribution centers in Riverside, California, and Charlotte, North Carolina. RIVERSIDE Cardboard and pallets reused for multiple shipments Energy efficient bulbs and natural light used throughout the warehouse Electric forklifts used for loading and unloading Electronic scanners utilized to reduce paper use Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 45

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Supplier Diversity As an organization built on the foundation of transforming The SEEDS Program healthcare within communities across the country, we In 2009, we launched Sourcing Education and Enrichment recognize that supplier diversity is an important component for Diverse and Small Suppliers (SEEDS), a program aimed at of our members' success. Diverse suppliers help our hospitals increasing the number of small, diverse and regional enterpris-create jobs and improve life in the communities they serve. es doing business with members of our healthcare alliance. We appreciate the challenges that minority-owned, wom- The SEEDS program lends support to diverse and small en-owned and small businesses have with reach and access in business enterprises, enabling them to grow at a pace that the same ways as larger or more widely known organizations. is commensurate with their existing business infrastructure Therefore, we created a Supplier Diversity Program to provide (i.e., local, regional and/or national minority, women and veteran (veteran, disabled veteran, sales capabilities). Moreover, the service-disabled veteran) business enterprises (MWVBEs) 15% SEEDS program provides contracted the opportunity to partner with us to support our efforts to suppliers with coaching, mentoring, continually lead the way in healthcare innovation. Our Supplier business educational tools and a of our contract portfolio Diversity program is under the guidance and direction of our stair-stepped approach to help them was comprised of diversity GPOs. The program is also a strategic pillar under our DEIB develop strategic long-term relation-suppliers in CY2020. strategy under the direction of our Chief Diversity and Inclusion ships with members across our Officer. For further discussion, please see the DEIB section healthcare alliance. within this report. In CY2020, 15% of our contract portfolio was comprised of Our Supplier Diversity Program supports our members by: diverse suppliers and included agreements with minority, women, veteran and small business enterprises. In CY2020, our contract suppliers enjoyed 21% year-over-year growth in purchasing spend compared to CY2019. We continue to evolve our strategies to focus on socio-economic development and Ensuring growth of communities through minority- and women-owned business enterprises. We believe the increased use of our diverse suppliers are proactively Supplier Diversity Program and SEEDS will drive better health-considered for contracting opportunities. care outcomes, strengthen local economies and develop a more robust supplier diversity ecosystem for the healthcare industry. To further support and expand our supplier diversity program, Premier, Inc. is a corporate member of the following advocacy Encouraging organizations: contracted suppliers to • National Minority Supplier Development Council support and procure from diverse suppliers. • Women Business Enterprises National Council • Healthcare Supplier Diversity Alliance • Healthcare Group Purchasing Industry Initiative Supporting and facilitating procurement from diverse suppliers. Including diverse suppliers in our contract portfolio. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 46

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Supplier Resiliency and Disaster Response We created a program designed to promote domestic and COVID-19 Pandemic geographically diverse manufacturing and ensure a robust and Healthcare supply chain resiliency was tested during the resilient supply chain for essential medical products. The COVID-19 pandemic, particularly for PPE. With our unique program is intended to provide a means to invest in businesses position as a connection point between healthcare providers, that can supply shortage products, co-fund the development of suppliers and federal and state governments, we were able to affordable products that address specific market needs and provide the federal government's COVID-19 supply chain task create strategic sourcing contracts to ensure continuous force with insights about health system preparedness and supply. We believe this program is most successful when we potential actions that could be taken to ensure a more reliable are able partner with our members on these initiatives. For supply chain. example, we recently formed PRAM Holdings, LLC (PRAM) in partnership with our members to invest in Prestige Ameritech, We are uniquely positioned as a trusted partner in connecting a domestic manufacturer of masks and other PPE, whereby our the healthcare community with our valued capabilities and members obtain a direct source to critical PPE. integrated partnerships. During the pandemic, we launched a partnership to help align stakeholders around data-driven We also partner with health systems to find ways to deliver strategies to manage shortages, enable improvements in the critical drugs that pharmacists and clinicians need to serve supply chain and help place critical medical supplies where their patients. Guided by our member health systems, including they were needed most. Our network and solutions help match our National Pharmacy Committee, we are bringing an inhospitals and frontline providers in need of specific items with creased supply of generic drugs back to market to fill hospitals' peer organizations who can provide the needed supplies. Our critical needs and helping alleviate the drug shortage. Through GPO has also established an expedited sourcing process to our national drug initiatives, we have helped supply members add additional suppliers to product categories experiencing with nearly 150 shortage drugs. Specifically, we created shortages. Recognizing the need to balance America's reliance ProvideGx® to provide a vehicle to invest in innovative new on international manufacturing and sourcing, our direct business models and partnerships to address drug shortages, sourcing subsidiary, S2S, also increased the production of including partnering with quality generic drug manufacturers masks, gloves and other PPE from multiple countries and that can supply shortage products, co-funding the development regions to lower risk and increase redundancy. of affordable products that address specific market needs, and securing contracts for active pharmaceutical ingredients to ensure a continuous supply as well as strategic sourcing agreements. Disaster Response Community Team Our dedicated Disaster Response Community team ensures business continuity for our members during a hurricane, fire, tornado or other emergency. We serve as an extra set of hands and legs for our members and work across contracted suppliers, member health systems, business continuity experts and communications functions to serve as conduits for information and preparedness. Our team constantly monitors all areas of the U.S. for earthquakes, wildfires, hurricanes and other disruptive Health events that could potentially affect our members, suppliers or employees. The communications for these events, when Atrium elevated, are distributed across our membership and posted to by our Disaster Response Communities site. Additionally, we are Photo frequently in contact with local, state and national government organizations such as Federal Emergency Management Agency (FEMA), Cybersecurity and Infrastructure Security Agency (CISA), National Hurricane Center (NHC) and the appropriate State Emergency Management Office during disasters. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 47

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Leading Through the COVID-19 Pandemic Through our strategic relationships with healthcare systems and hospitals and unique capabilities, coupled with our positioning within the healthcare ecosystem, we have taken a leadership role in supporting our members through a challenging and dynamic environment. Our efforts are helping to stabilize the supply chain and secure PPE and other critically needed, high-demand supplies for our members and enabling them to deliver care to their patients. Below are many of the actions we have taken to deliver long-term, sustainable value to our members and the healthcare system: Solving for Overreliance on Overseas Manufacturing Promote Cross-Industry and Cross-Competitor Collaboration • We invested in Prestige Ameritech to provide more than 60 million We launched a coalition uniting executives from nearly 20 healthcare U.S.-made N95 masks, surgical masks and goggles per year for suppliers, manufacturers, distributors and others to help deliver participating Premier members. transparency to our supply chain and heal the challenges in our industry. • We are partnering with DeRoyal Industries Inc. to produce more than 40 million domestically manufactured gowns annually. Fast-Track Global Sourcing to Bring Critical Products to Members • Our collaboration with Honeywell is expected to produce at least 750 million domestically made nitrile exam gloves in the first year alone. The backbone for our PPE forward buy program, S2S delivered more than 166 million masks and respirators and 66 million gowns. • We are collaborating with ExelaPharma Sciences to support uninterrupted access to 19 generic injectable drugs. Enhance Existing Infection Prevention Technologies to Access Inventory Already in the Channel Monitor COVID-19 Cases • We partnered with Resilinc and Stanford University to launch an • Our clinical surveillance technology includes COVID-specific alerts online portal for providers to dynamically exchange needed products. and patient flags for tracking and analytics. • More than 1,000 hospitals have joined to swap five million products • Our clinical decision support technology uses natural language including masks and gowns. processing and machine learning to flag suspected or confirmed COVID-19 patient cases directly in the EMR, at the point of care. Embed Resiliency into Drug Supply Chain Create Early Warning System for Future Waves of COVID-19 • We pulled pharmaceuticals out of allocation and moved them to our • We are enabling health systems to set specific triggers alerting own distribution channel, allowing us to dynamically allocate them to upticks in certain symptoms, thus predicting future cases products to members based on clinical need. and potential surges in almost real time. • Our efforts avoided widespread drug shortages for members, • This early warning system buys time to support providers' and despite spikes in demand of more than 150%. communities' containment and mitigation strategies, preparing them to manage an uptick in volume. Safely Accelerate New Entrants' Access to the Market Leverage Predictive Modeling for Actionable Forecasts on • We developed an accelerated process to bring new suppliers to Potential Surges in Cases contract in 14 days or fewer in categories experiencing product allocation or shortages as a result of the pandemic. • Our integrated solution leverages clinical and public health information to create predictive models indicating the health systems' • As a result, we signed more than 120 new contracts and evaluated projected caseload for five to seven days. supplies from more than 2,500 brokers. • This solution then overlays predictive modeling to project supply utilization based on the acuity of cases to support planning and dynamic allocation of supplies. Ensure Smaller Providers Without Distributor Purchasing History Can Access Supplies We placed thousands of products from vetted suppliers on Stockd, Stay Informed and Ensure Adherence to Latest COVID-19 our e-commerce site, allowing for alternate site and physician source Clinical Guidance vital supplies. • Our clinical decision support technology embeds the latest and most relevant clinical guidance into the workflow, allowing nurses and physicians to incorporate the most recent findings into clinical practice after relevant guidelines become available. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 48

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Environmental Management We are committed to protecting and enhancing the environment. As part of our efforts to improve the health of our nation's communities, we pursue our mission as prudent stewards of the environment. We strive to identify products and services that not only help our members to protect the environment as discussed in the section on Supply Chain Management, but also seek to integrate environmentally friendly practices into our own operations. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 49

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Energy Management As a national organization, we seek to maintain a nimble energy We lease all our office space, which includes our footprint. Where it is operationally feasible, we support a corporate headquarters (HQ) in Charlotte, North remote work environment for our employees. Today, the vast Carolina, and eight smaller satellite office locations majority of our employees are working remotely (not in a across the U.S. Our HQ building is LEED-CS Gold® physical office) on a full-time basis, which contributes to an certified with LEED-CI principles applied within the overall lower carbon footprint. We are currently engaged with interior build-out design, resulting in a LEED Gold® certification of our employees to pilot a hybrid work schedule for a combina- the tenant upfit. Our landlord also received the 2021 Energy Star tion of work-from-home, work in a Premier office or work Partner of the Year Award from the U.S. Environmental Protec-elsewhere. We anticipate that this approach will contribute tion Agency and the U.S. Department of Energy. Additionally, to further reducing our carbon footprint. we eliminated our on-site data center from our headquarters in 2019, which reduced our equipment and related annual power needs by nearly 40%. Examples of Eco-friendly Practices at Our Leased Office Locations WELL LEED-CS- Health- BOMA Gold Safety Energy 360 LED Light E-Waste Green Touchless Location Certified Rated Star design Recycling Composting Lighting Sensors Pickup Cleaning Dispensers Charlotte, NC* • • • • • • • • • Charlottesville, VA • • College Station, TX • El Segundo, CA • • Hudson, OH • • • New York, NY • • • • • • San Diego, CA • Walnut Creek, CA • • • • • Washington DC • • *Corporate Headquarters We incorporated LED lighting requirements in all new leases We outsource portions of our operations such as our data that cover future build-out or space renovations and installed centers, which decreases our overall carbon footprint due to motion sensor lighting with auto-shutoff features when the economies-of-scale regarding carbon emissions and possible. We also work with our landlords to provide special electricity usage provided by third-party data center solutions parking for fuel-efficient cars, EV vehicles and carpooling. hosted on cloud-based platforms. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 50

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Waste and Water We are environmentally conscious in the acquisition, use, The facilities service company for our HQ building was awarded maintenance, reuse, recycling and disposal of products and the Cleaning Industry Management Standard (CIMS)-Green services used throughout our operations. We work with Building Certification with Honors by ISSA-The World Cleaning our landlords and suppliers to implement eco-friendly best Industry Association. The award is given to those companies practices as part of advancing our environmental management that demonstrate a commitment to the delivery of environmen-strategy, such as: tally preferable services that are designed to meet customer needs and expectations. Additionally, when scheduling external meetings and conferences, we strive to pursue contracts with facilities Discontinuing the use of straws, that integrate green offerings within their building operations providing compostable drinking cups and and customer service, such as recycling, water and energy utensils where applicable and replacing conservation. plastic with wooden stirrers. Electronic Waste Recycling With electronics recycling (e-waste) as an ongoing process, we recycled 8-to-10 tons of IT equipment over the past five years. Also, we are a member of e-Stewards Enterprises, which promotes the use of electronics recyclers that meet certified standards for responsible recycling practices. We Requesting cleaning vendor also offer a computer drawing twice a year to our employees partners to support "green" for the opportunity to purchase refurbished, previously used practices such as microfiber products, Premier computers with a portion of the proceeds being eco-friendly products, HEPA-filter donated to a nonprofit organization. vacuums, recycling and energy- and water-efficient cleaning equipment. In conjunction with our transition to an outsourced data center, we recycled and/or repurposed 49 server racks, 200 UPS batteries, 22 in-line CRAC (HVAC) units, a 1,000KW Caterpillar Generator and Enclosure and 5,800 pounds of copper cabling and piping during the decommissioning in 2019. Repurposing office furnishings to local charitable organizations, schools, churches, community organizations and our employees (auction process). Implementing eco-friendly initiatives such as hands-free water and soap dispensing systems, energy-efficient appliances and recycling of office waste. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 51

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Frameworks and Standards Our Sustainability Report has been prepared in accordance with the accounting standards published by the Sustainability Accounting Standards Board (SASB). We have also identified the United Nations Sustainable Development Goals (SDGs) that we believe best align with our business activities and key priority areas. Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 52

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United Nations Sustainable Development Goals (SDGs) The United Nations' Sustainable Development Goals (SDGs) are a collaborative, global effort to achieve a better and more sustainable future for all. Represented by 17 Global Goals and 169 targets, the SDGs address challenges of poverty, inequality, climate change, environmental degradation, peace and justice. We identified the key areas where we have the greatest influence and impact through our business strategy, products and services. SDG Description Section in the report Ensure healthy lives and promote well-being for all at all ages. Our Social Responsibility Achieve gender equality and empower all women and girls. Our People and Culture Promote inclusive and sustainable economic growth, Supply Chain Management employment and decent work for all. Reduce inequality within and among countries. Our Social Responsibility Governance, Ethics and Responsible Business Practices: Government Affairs and Advocacy Ensure sustainable consumption and production patterns. Supply Chain: Environmental Considerations Environmental Management Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 53

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Sustainable Accounting Standards Board (SASB) The table below incorporates accounting standards from the SASB related to Health Care Distributors (HC-DI), as well as to relevant topics from Medical Equipment & Supplies (HC-MS) and Software & IT Services (TC-SI). It includes references to sections within this report where specific topics are discussed. Topic Accounting Metric Category SASB Code Report Reference Fleet Fuel Management Payload fuel economy Quantitative HC-DI-110a.1 Supply Chain Description of efforts to reduce the environmental impact Discussion and HC-DI-110a.2 Management: of logistics Analysis Environmental Considerations Product Safety Total amount of monetary losses as a result of legal Quantitative HC-DI-250a.1 Supply Chain proceedings associated with product safety Management: Description of efforts to minimize health and safety risks Discussion and HC-DI-250a.2 Product Quality of products sold associated with toxicity/chemical safety, Analysis and Safety high abuse potential, or delivery Counterfeit Drugs Description of methods and technologies used to Discussion and HC-DI-260a.1 Supply Chain maintain traceability of products throughout the Analysis Management: distribution chain and prevent counterfeiting Product Quality Discussion of due diligence process to qualify suppliers Discussion and HC-DI-260a.2 and Safety of drug products and medical equipment and devices Analysis Discussion of process for alerting customers and Discussion and HC-DI-260a.3 business partners of potential or known risks associated Analysis with counterfeit products Product Lifecycle Discussion of strategies to reduce the environmental Discussion and HC-DI-410a.1 Supply Chain Management impact of packaging throughout its lifecycle Analysis Management: Amount (by weight) of products accepted for take-back Quantitative HC-DI-410a.2 Environmental and reused, recycled or donated Considerations Business Ethics Description of efforts to minimize conflicts of interest Discussion and HC-DI-510a.1 Governance, Ethics and unethical business practices Analysis and Responsible Total amount of monetary losses as a result of legal Quantitative HC-DI-510a.2 Business Practices proceedings associated with bribery, corruption, or other unethical business practices Product Design & Lifecycle Discussion of process to assess and manage environ- Discussion and HC-MS-410a.1 Supply Chain Management mental and human health considerations associated with Analysis Management: chemicals in products, and meet demand for sustainable Product Quality products and Safety Supply Chain Management Percentage of (1) entity's facilities and (2) Tier I suppliers' Quantitative HC-MS-430a.1 Supply Chain facilities participating in third-party audit programs for Management manufacturing and product quality Description of efforts to maintain traceability within the Discussion and HC-MS-430a.2 distribution chain Analysis Description of the management of risks associated with Discussion and HC-MS-430a.3 the use of critical materials Analysis Continued on next page Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 54

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Sustainable Accounting Standards Board (SASB) Continued from previous page Topic Accounting Metric Category SASB Code Report Reference Environmental Footprint of (1) Total energy consumed, (2) percentage grid electricity, Quantitative TC-SI-130a.1 Environmental Hardware Infrastructure (3) percentage renewable Management (1) Total water withdrawn, (2) total water consumed, Quantitative TC-SI-130a.2 percentage of each in regions with High or Extremely High Baseline Water Stress Discussion of the integration of environmental consider- Discussion and TC-SI-130a.3 ations into strategic planning for data center needs Analysis Data Security (1) Number of data breaches, (2) percentage involving Quantitative TC-SI-230a.1 Governance, Ethics personally identifiable information (PII), (3) number of and Responsible users affected Business Practices: Description of approach to identifying and addressing Discussion and TC-SI-230a.2 Cyber Risk data security risks, including use of third-party Analysis Management, cybersecurity standards Data Security and Customer Privacy Recruiting & Managing a Percentage of employees that are (1) foreign nationals Quantitative TC-SI-330a.1 Our People and Global, Diverse & Skilled and (2) located offshore Culture Workforce Employee engagement as a percentage Quantitative TC-SI-330a.2 Percentage of gender and racial/ethnic group representa- Quantitative TC-SI-330a.3 tion for (1) management, (2) technical staff and (3) all other employees Managing Systemic Number of (1) performance issues and (2) service Quantitative TC-SI-550a.1 Governance, Ethics Risks from Technology disruptions; (3) total customer downtime and Responsible Disruptions Description of business continuity risks related to Discussion and TC-SI-550a.2 Business Practices: disruptions of operations Analysis Cyber Risk Management, Data Security and Customer Privacy Table of Contents CEO Letter Making a Awards and About This Governance People and Social Supply Chain Environmental Frameworks Premier Impact Associations Report Culture Responsibility Management Management and Standards 55

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Disclaimer

Premier Inc. published this content on 21 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 October 2021 21:13:37 UTC.


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Sales 2022 1 398 M - -
Net income 2022 305 M - -
Net Debt 2022 192 M - -
P/E ratio 2022 15,6x
Yield 2022 2,08%
Capitalization 4 754 M 4 754 M -
EV / Sales 2022 3,54x
EV / Sales 2023 3,41x
Nbr of Employees 2 600
Free-Float 98,0%
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Michael J. Alkire President, Chief Executive Officer & Director
Craig S. McKasson SVP, Chief Financial & Administrative Officer
Terry D. Shaw Chairman
Richard J. Statuto Independent Director
Ellen C. Wolf Independent Director