How Cardinal Health is Approaching Sustainable Supply Chains

Cardinal Health operates one of the most extensive pharmaceutical distribution networks in the United States, making 70,000 daily deliveries to healthcare facilities while serving more than 29,000 pharmacies, 6,200 laboratories and nearly 90% of US hospitals.

The company's ability to maintain supply chain integrity while advancing environmental goals could demonstrate how large-scale healthcare distributors are balancing operational demands with sustainability commitments.

This extensive distribution infrastructure requires careful coordination to ensure products reach healthcare providers efficiently while minimising environmental impact.

With more than 50,000 employees worldwide and US$222.6bn in fiscal 2025 revenue, the distributor and manufacturer provides pharmaceuticals, specialty medications, medical and laboratory products, home-health solutions and direct-to-patient services.

The company also operates nuclear pharmacies and manufacturing facilities, while supporting healthcare providers across hospitals, long-term care facilities, retail and specialty pharmacies and physician practices. This diverse portfolio of services positions Cardinal Health as a critical link in the pharmaceutical supply chain.

Science-based emissions reduction targets

Cardinal Health has established science-based targets for Scope 1, 2 and 3 greenhouse gas emissions, approved by the Science Based Targets initiative. The company aims to reduce absolute Scope 1 and 2 emissions by 50% by fiscal 2030 from a 2019 baseline and to ensure that 75% of its suppliers by spending have science-based targets by 2028.

"At Cardinal Health, our environmental, social and governance (ESG) priorities are aligned with our business strategy, as we safely and efficiently deliver products and solutions for our customers and the patients they serve, while fulfilling our role as healthcare's most trusted partner," says Jason Hollar, Chief Executive Officer, in the company's fiscal 2024 ESG Report.

By the end of fiscal 2024, Cardinal Health had achieved a 17% reduction in Scope 1 and 2 emissions and 66.4% of suppliers by spend had established science-based goals.

"We made progress toward our first target, reducing our Scopes 1 and 2 emissions by 17% since fiscal 2019," Jason explains.

"With these efforts, we're reducing our environmental impact and generating savings across our businesses. This work also allows us to respond to evolving customer expectations and support our customers in achieving their own sustainability goals."

The company's Sustainable Technologies business reprocesses single-use medical devices, diverting millions of pounds of waste from landfills and helping customers avoid carbon emissions. Cardinal Health integrates these environmental, social and governance priorities into its core business strategy, aligning environmental stewardship with operational efficiency across its distribution operations.

All supply chain, sustainability, Scope 3 and net zero leaders should attend:

• Procurement and Supply Chain LIVE: The Net Zero Summit - QEII Centre, London, March 4-5
• Procurement and Supply Chain LIVE: The US Summit - Navy Pier, Chicago, April 21-22

Co-located with Sustainability LIVE, these events brings together CSCOs, CSOs and senior decision-makers at a moment when sustainability, supply chains and commercial performance are increasingly interconnected.
Tickets can be booked online today for The Net Zero Summit and The US Summit. Group discounts available.

Pharmaceutical traceability and compliance

In compliance with the Drug Supply Chain Security Act, Cardinal Health provides 24/7 access to transaction data for eligible drugs at no cost, electronically tracks products at the individual package level using manufacturer product identifiers and works closely with manufacturers and trading partners to prevent counterfeit, contaminated or otherwise harmful medications from reaching patients.

This traceability system enhances supply chain transparency and helps ensure product authenticity throughout the distribution process, from manufacturer to end user.

Temperature-controlled logistics solutions

The company leads the industry in refrigerated pharmaceutical packaging, offering insulated totes with performance-qualified phase-change panels that maintain precise temperature ranges of 2 C to 8 C during transportation.

The green and orange panels work together to protect products from freezing or excessive heat and the materials are non-toxic, environmentally friendly and reusable. Customers can safely return products using the same totes and panels, ensuring that temperature-sensitive medications remain uncompromised throughout the supply chain.

These reusable packaging solutions demonstrate how operational efficiency and environmental responsibility can be integrated within pharmaceutical logistics networks.

Through these initiatives, Cardinal Health demonstrates how pharmaceutical distributors are addressing regulatory compliance, patient safety and environmental responsibility across complex logistics networks serving thousands of healthcare facilities nationwide.