Boots CSR rEPORT

Building a sustainable
group for a better world

Alliance Boots Corporate Social
Responsibility Report 2013/14
We are a leading international
pharmacy-led health and
beautygroup. Our focus
isonhelping people look
andfeeltheir best.
In this years report
In focus
Alliance Boots | Corporate Social Responsibility Report 2013/14
Our approach IFC
Our vision and ambitions 01
Executive Chairmans statement 02
Our Group at a glance 03
Our mission, purpose and values 04
Our business activities 05
Our approach 06
Corporate governance 06
Risk management 06
Establishing our priorities 07
Our exible framework 08
Social responsibilities committee 10
Community 11
2013/14 community targets 14
Community healthcare 15
Education and research 15
Fundraising 16
Volunteering 18
Giving 19
Community contributions data 20
Environment 21
2013/14 environmental targets 23
Sustainable products 23
Managing carbon 24
Carbon management data 24
Saving energy 24
Sustainable transport 25
Waste and recycling 27
Water 27
Marketplace 28
2013/14 marketplace targets 31
Cause-related marketing 31
Healthy living 32
Our supply chain 32
Workplace 33
2013/14 workplace targets 35
Employee health 35
Diversity 36
Women at work 36
Training and development 37
Engaging our people 38
Health and safety 39
Performance 40
2014/15 CSR objectives and priorities 40
KPMG assurance report 42
Prosecutions and environmental incidents 44
GRI compliance and index 44
Reporting guidelines 44
12
Continuing the ght
against cancer
22
Investing in more
efcient technology
29
A sustainable approach
toresponsible sourcing
34
Inspiring young talent
We recognise the importance of working
in partnership and championing worthwhile
causes, such as the ght against cancer.
Wesupport many cancer charities across
ourorganisation, including the long term
partnerships we have with the European
Organisation for Research and Treatment
ofCancer (EORTC) Charitable Trust and
Macmillan Cancer Support in the UK.
Throughout the year, our people have
again shown true passion and enthusiasm
for our charitable partnerships through
a wide variety of fundraising activities
and volunteering initiatives.
We understand the value that can be created
through collaboration between academia
andindustry and are proud of the work we
have achieved together with several highly
regarded academic institutions, including
TheUniversity of Nottingham and
TheUniversity of Manchester in the UK
andThe University of Rome Tor Vergata
in Italy. Such collaborations help to better
inform our business activities, as well as
generate benets within the health and
beauty industry for customers and patients.
In recognition of our commitment to high
streets across the UK, we remain an active
member of several public and private
organisations focussed on ensuring the future
prosperity of town centres. In April, we were
awarded platinum status by Business in the
Community, as part of its 2014 Corporate
Responsibility Index, for the third consecutive
year. This accolade is a testament to the
combined efforts of our people and the
difference we make within the communities
that we serve.
With an increasing presence across many
communities around the world, we continue
to recognise the importance of ensuring
thatour business practices are socially,
environmentally and economically
sustainable across the Group. Working in
close partnership with our many stakeholders
and inspiring our teams within the eld of
CSR has enabled us to succeed in becoming
a leader within the responsibility agenda.
Ornella Barra
Chairman of the social
responsibilities committee
At Alliance Boots, corporate social
responsibility (CSR) forms an integral
part of the Groups commercial
philosophy, enabling us to serve
ourcommunities with care and
commitment. It is thanks to the
engagement of our teams in
supporting our CSR agenda that
weare able to feel proud of the
contribution we make and our role
as a responsible global citizen.
Alliance Boots | Corporate Social Responsibility Report 2013/14 01
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Our vision and ambitions
Making a positive
and lastingdifference
to thewellbeing of the
communities we serve.
Ornella Barra
Chairman of the social responsibilities committee, Alliance Boots
Our objective of building a
sustainable world leading group,
making healthcare more accessible
to the communities we serve,
remains unchanged.
Being global is increasingly important in
manybusiness sectors, including our own,
and can prove instrumental in advancing
theeld of corporate social responsibility.
Bycombining global solutions with local
action, businesses can positively assist in
addressing the many environmental, social
andhealthcare challenges present across
the world.
Our transformational partnership and
expected merger with Walgreens, our joint
agreement with AmerisourceBergen and
ourrecent geographical expansion in
LatinAmerica mean we are interacting
withmore countries and cultures than
everbefore. Our expanding global
footprintprovides us with opportunities
tofurtherourcontribution in building strong
foundations for a sustainable future that
allour stakeholders can benet from.
We believe in making a difference and are
proud of the contribution we make to the
wellbeing of the communities we serve.
Working within the healthcare industry places
us in a privileged position to help improve the
healthcare available to communities, through
providing medicines, quality products and
services as well as expert advice, to people
every day.
We fully recognise the vital link between
good corporate social responsibility and
goodbusiness. I strongly believe that global
businesses can be a powerful force for good
in progressing CSR and that Alliance Boots
hasdemonstrated the right credentials,
experience and track record to be a
responsible global citizen. Combined with
the fantastic energy and commitment of our
teams, as well as strong partnerships with our
stakeholders, our continued contribution will
help succeed in securing a better world for
future generations.
As in previous years, this report includes an
independent assurance report on our 2013/14
CSR data, issued by KPMG, which reinforces
our established processes and procedures
inrelation to data capture and accuracy.
Stefano Pessina
Executive Chairman
Executive Chairmans statement
Leading corporate
responsibility in
a global marketplace.
Stefano Pessina
Executive Chairman, Alliance Boots
02 Alliance Boots | Corporate Social Responsibility Report 2013/14
Our approach
Over 120,000* employees
120,000+
Presence in more than
27* countries
27+
Operating more than 4,600*
health and beauty retail
stores, of which more than
4,450* have apharmacy
4,600+
Dispensing over 300*
million items each year
300m+
Operating more than 370*
pharmaceutical wholesale
distribution centres
370+ Delivering over 4.5* billion
unitseach year tomore than
180,000* pharmacies, doctors,
health centres and hospitals
4.5bn+
Owned businesses
Associates and joint ventures
Branded products and franchises**
Alliance Boots is a leading international pharmacy-led health and beauty
group delivering a range of products and services to customers.
Working in close partnership with manufacturers and pharmacists,
wearecommitted to improving health in the local communities we serve
andhelping our customers and patients to look and feel their best.
Our focus is on growing our two core business activities of:
Pharmacy-led health and beauty retailing
Pharmaceutical wholesaling and distribution
while increasingly developing and internationalising our product brands.
Our Group at a glance
* Figures are approximations as at 31 March 2014, with the addition of Farmacias Ahumada data at the date of its acquisition on 11 August 2014, and include associates and joint ventures.
** Countries where Boots products are available for purchase or there are Boots franchises (other than those countries where there are owned businesses, associates or joint ventures).
We also have around 600* optical practices, of which around 180* operate on a franchise basis, and hearingcare services in around 430* locations.
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Our mission, purpose and values
Our mission
We seek to develop our core businesses of pharmacy-led health and beauty
retailing and pharmaceutical wholesaling across the world and become
a signicant player in many major international markets.
Our purpose
We deliver products and services that help people look and feel their best.
Our values
We believe in making a difference and are proud of the contribution
we make to the wellbeing of the communities we serve.
Our core values are:
Partnership Trust Service
Includes respect, understanding
andworking together. We create
and build value through partnerships
andalliances, inside and outside
thebusiness. Together we can
achieve more.
The essence of the way we do
business. We are trusted because
we deliver on our promises.
We hold ourselves to high
standards of care and service, for
our customers and our people.
Entrepreneurship Simplicity
We are innovators, seeking
newchallenges and having
awinning spirit.
We are proud of being lean and
efcient, uncomplicated and easy
todo business with.
Our approach
Our business activities
Alliance Boots, including our associates and joint ventures, has
pharmacy-led health and beauty retail businesses in 11 countries,
eachfocussed on helping people look and feel their best.
Together with our associates and joint ventures, we operate more than
4,600 health and beauty retail stores, of which more than 4,450 have a
pharmacy, with a fast growing online presence. In Europe, we are the clear
market leader in pharmacy with stores in the UK, Norway, the Republic
of Ireland, The Netherlands and Lithuania. We also have pharmacies in
Mexico, Chile and Thailand and our associates and joint ventures operate
pharmacies in China, Italy and Croatia. In addition, around 80 Boots
branded stores operate in the Middle East on a franchise basis.
Our stores are located in convenient locations and put pharmacists at
theheart of healthcare. Our pharmacists are well placed to provide a
signicant role in the provision of healthcare services, working closely
withother primary healthcare providers in the communities we serve.
Our principal retail brand in the Health & Beauty Division is Boots,
whichwe trade under in the UK, Norway, the Republic of Ireland,
TheNetherlands and Thailand. The Boots omni-channel offering is
differentiated from that of competitors due to the product brands
weown and only at Boots exclusive products, together with our
longestablished reputation for trust and customer care.
Boots Opticians is one of the leaders in the UK optical market with
around600 practices, of which around 180 operate on a franchise basis.
Around 30% of practices are located in Boots stores with the balance
being standalone optical practices. In addition, we have a leading position
in the UK hearingcare market through our associate, Boots Hearingcare,
which operates in around 430 locations across the UK, almost all of
whichare within Boots stores or standalone Boots Opticians practices.
We recognise the special status of Boots as the UKs most trusted
pharmacy brand and continue to enhance our position as a leading
provider of healthcare, beauty advice and services in local communities.
We do this by delivering expert customer care, through investment
inexisting stores, by selectively expanding our store portfolio and,
increasingly, through developing our omni-channel offering.
Our pharmaceutical wholesale businesses, together with our associates
and joint ventures, supply medicines, other healthcare products and
related services to more than 180,000 pharmacies, doctors, health centres
and hospitals from more than 370 distribution centres in 20 countries.
Our businesses provide high core service levels to pharmacists in terms
offrequency of delivery, product availability, delivery accuracy, timeliness
and reliability at competitive prices. We also offer our customers
innovative added-value services which help pharmacists develop their
own businesses. This includes membership of Alphega Pharmacy, our
pan-European network for independent pharmacies. Alphega Pharmacy
has a membership of more than 4,800 pharmacies in seven countries.
This will increase signicantly following the March 2014 vote by the
vivesco pharmacy network in Germany, which has around 950 members,
to rebrand as Alphega.
In addition to the wholesale of medicines and other healthcare
products,we provide services to pharmaceutical manufacturers who are
increasingly seeking to gain greater control over their product distribution
while at the same time outsourcing non-core activities. These services
include pre-wholesale and contract logistics, direct deliveries to
pharmacies, and specialised medicine delivery including related
home healthcare.
Combined with local engagement, scale is very important in
pharmaceutical wholesaling. In addition to being the largest
pharmaceutical wholesaler/distributor in Europe, Alliance Boots typically
ranks as one of the top three in the individual countries in which
we operate.
We continually seek to grow our wholesale and related distribution
activities organically and through acquisitions, including investments
inassociates and joint ventures. These acquisitions are either in current
orcomplementary business areas in countries in which we already
operate or in new geographical markets which are typically large, fast
growing and where we see the potential for market consolidation.
Our product brands
Pharmaceutical
wholesaling and
distribution
Pharmacy-led
health and beauty
retailing
* Figures are approximations as at 31 March 2014, with the addition of Farmacias Ahumada data at the date of its acquisition on 11 August 2014, and include associates and joint ventures.
In our Health & Beauty Division, we have highly regarded and long
established product brands such as No7, Soltan and Botanics, together
with newer brands such as Boots Pharmaceuticals and Boots Laboratories.
Product innovation and development, packaging and product marketing
capabilities are key skills which enable us to develop new and existing brands.
We are continuing to internationalise our key product brands, increasingly
selling them through select retail partners, our own and third party
internet shopping sites, and independent pharmacies. In the US, where
Boots product brands have been sold through Target for many years,
we are, in addition, introducing No7 and other key Boots product brands
into the drugstore channel through Walgreens on a phased basis. In Asia,
we extended our partnership with Dairy Farm to sell Boots product
brands in their health and beauty stores in Hong Kong and Singapore.
In Europe, our Boots Laboratories range is sold by independent
pharmacies in ve countries.
In addition, we have long term partnerships with a select number of
third party brand owners to sell their products in Boots stores on an
exclusive basis, sharing in the future brand equity. Most recently, we have
established a specialist investment fund to invest in small and medium
sized consumer brand businesses within the health, wellness, beauty
andpersonal care sector. We continue to manufacture a signicant
proportion of our most popular own brand and exclusive products.
In our Pharmaceutical Wholesale Division and associates, Almus, our
range of generic medicines, is sold in ve countries and Alvita, our range
of patient care products, is sold in six countries.
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Corporate
governance
Helping people look and feel their
best is at the heart of what we do on
a day to day basis. Everyday around
the world, millions of people rely
on the medicines we distribute
and dispense to feel their best.
They rely on our local pharmacists
for information, support and advice.
They rely on the beauty products
we have developed to look their best.
We are proud of our contribution to the
wellbeing of the communities we serve
andas a business focussed on healthcare,
webelieve that our corporate social
responsibilities are integral to our activities.
Furthermore, we believe that our initiatives
actively help us to further our mission,
full our purpose and live our values.
Our businesses engage in activities which
arerelevant to their local communities and
markets, but which all fall within a central,
Group-wide, CSR framework and process.
Across the Group we support local initiatives,
share best practice and innovation, and
measure the positive impact of our businesses.
The process is the same across our businesses
where they each set their own specic targets.
For example, our businesses in Germany and
Turkey have different targets on waste which
reect the realities of the recycling and waste
infrastructure in their respective markets.
CSR is naturally embedded in the working
practices of our people. It is part of our daily
routines. Many of our CSR initiatives also
deliver additional value for the Group
through reducing costs or generating new
commercial opportunities.
We engage with our stakeholders on a local,
regional and national basis to formulate our
CSR strategy. They advise us on our approach
to risk and help us in our analysis of material
issues. Our robust data management process
ensures we know how we are performing
against our key targets. Our transparent
reporting ensures that we communicate
this clearly and simply.
Our approach is to identify, monitor
and assess all signicant risks
andtake steps, where necessary,
tomitigate them.
Our executive Directors and the Director of
Internal Audit & Risk Management continue
to play a leading role in monitoring the overall
risk prole and regularly report to the Board
through the audit and risk committee.
The process of risk identication is facilitated
by the use of risk registers for Alliance Boots
and for each business. In addition, the Board,
through the executive Directors, is responsible
for determining clear policies asto what
Alliance Boots considers to be acceptable
levels of risk. These policies seek to enable
employees to use their expertise toidentify
risks that could undermine performance and
to devise ways of bringing them to within
acceptable levels.
Where we identify risks that are not acceptable,
we develop action plans to mitigate them
with clear allocation of responsibilities and
timescales for completion and ensure that
progress towards implementing these plans
is monitored and reported upon.
Full information on our risk management
process and the most signicant risks we face
are included in the Alliance Boots Annual
Report 2013/14.
Our
approach
Risk
management
Alliance Boots considers that
good corporate governance is an
essential element of achieving its
overall objectives and acting as
a responsible organisation.
To support good governance of our
behaviours and approach to CSR, we
haveGroup policy statements in place.
These cover the environment, health and
safety, charity, product testing, customer
safety and diversity and are available to view
on our website. These shape our businesses
approach to their activities and ensure they
are all working within the same parameters.
In addition, the Group has a specic
Anti-Corruption and Bribery Policy.
Bothdocuments are published on the
Companys website in the corporate
governance section.
A Code of Conduct and Business Ethics,
approved by the social responsibilities
committee and the Board, sets out the ethics,
principles and standards which are required
tobe consistently upheld by each Division,
business and corporate function within
the Group.
Our approach
Media
Non-
governmental
organisations
Academics
Customers
(pharmacists-
consumers-
patients)

Suppliers
Local
communities
Employees
Shareholders
Government
Government
bodies and
agencies
Stakeholders: Engagement channels:
Media Performance updates, media releases,
interviews with senior executives
Non-governmental
organisations
Donations and sponsorship, joint fundraising
events, partnerships, in kind support and
volunteering schemes, face-to-face meetings,
formal feedback sessions
Shareholders Regular dialogue as a private company
Government bodies
and agencies
Consultation responses at national and European
level, association membership, industry panels,
public affairs outreach, site visits
Employees Performance management process, employee
engagement surveys and forums, union-
management forums and work councils,
consultations, training, one on one meetings,
Groupand business communications
Local communities Local business forums, regular and ad hoc
meetings with local not for prot groups,
public consultations, employee volunteering
Suppliers Supplier forums, one on one meetings,
policy statements, guidelines, site visits,
supplier conferences and supplier audits
Customers
(pharmacists,
consumers, patients)
Customer panels, focus groups, customer
satisfaction surveys, direct feedback, conferences
for pharmacists, pharmacist associations
Academics Face-to-face meetings, research and sustainability
projects, guest-speaker slots, internships,
logistical support
Establishing
our priorities
Stakeholder dialogue is also crucial in
ensuring that our businesses are continuing
to meet and exceed best practice. Boots UK
uses a network of critical friends to advise
and inform on a range of issues, for example,
waste management.
Across the Group, we also carry out
industry benchmarking, obtain informal
stakeholder feedback and conduct
stakeholder impact assessments for specic
Group ad hoc projects, such as our plans
for the Nottingham Enterprise Zone on the
Alliance Boots site in Beeston, Nottingham,
UK. The local community has been involved
in the plans and we have worked closely with
authorities at a regional level to develop the
concept, while working closely with national
Government todeliver the project.
These examples of our stakeholder
engagement, whether led by the Group,
ourexecutives, or our individual businesses
enable us to better understand the material
issues we face and ensure that our CSR
activities are targeted, appropriate
and impactful.
Consortium, at a national level, to implement
recommendations arising from the
Government commissioned independent
High Street Review. This accompanies our
local stakeholder dialogue where our
individual stores are encouraged to support
the principles of local Business Improvement
Districts and participate in town centre
forums. Additionally, since the year end,
Simon Roberts, Managing Director,
Health&Beauty UK and Republic of Ireland,
was appointed co-chairman of the Future
High Streets Forum, which works with
Government onchallenges facing high streets
and helps todevelop practical policies to
enable town centres to adapt and change.
Furthermore, Ornella Barra, Chief Executive,
Wholesale and Brands, in her capacity
as Chairman ofthe social responsibilities
committee at Alliance Boots and as a
member of the Business in the Community
International Leadership Team, continues
to lead our CSR efforts. Her position also
enables her to share our Groups CSR
experiences, whilst learning of other CSR
developments and initiatives across other
international businesses.
Our businesses are also shaping their activities
to meet their specic needs and undertaking
regional and local engagement where
necessary. In response to a strong local
culture of environmental awareness,
Alliance Healthcare Norge continues to use
recognised external accreditation schemes to
reinforce its values in this area to its suppliers.
Engaging with our stakeholders
ensures that we continue to operate
responsibly, address their concerns,
and learn from their insight and
experience. This meaningful,
in-depth dialogue provides us with
abroad and diverse understanding
of our stakeholders evolving
priorities and interests, ultimately
helping us to deliver products and
services which positively impact
thewellbeing of communities.
Through this dialogue we identify and
prioritise our stakeholder audiences, deepen
our understanding of their expectations
andinterests, and undertake a variety of
engagement channels, some of which we
have outlined below. We especially focus
on those stakeholders who are directly
impacted by our diverse operations.
An example of how we interact with our
stakeholders at various levels can be seen
inBoots UKs support for the High Street.
Boots UK continues to work closely with
many public and private sector organisations,
including other members of the British Retail
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Our exible framework
The Groups CSR framework of
priorities covers four key areas:
community; environment;
marketplace; and workplace. We call
this framework the Alliance Boots
scorecard and it is used across our
businesses. Each of our businesses
CSR plans are created based on
localstakeholder engagement, an
analysis of key issues, and meeting
the Groups overall priorities.
Thesearepresented to the social
responsibilities committee for
approval and progress against
theseplans and the scorecard
ismonitored centrally.
The Alliance Boots scorecard
Every year, after consultation
with our stakeholders, we review
the Groups priorities and, where
appropriate, set new revised
priorities within which targets
canbeset for the year ahead.
Our priorities focus on community
healthcare (community); reducing our
carbon footprint (environment); sustainable
products (marketplace); and healthy
workplaces (workplace).
All of our businesses have their own scorecard
based on these four key areas and, consistent
with the Groups priorities, settheir own
programmes and targets as appropriate.
There is a range of different strands of
activity across each of the four key areas
andit is within this framework that plans
are made by each business. These priorities
are further divided into areas of focus and
are apportioned around our wheel structure
which is submitted to the Alliance Boots
social responsibilities committee for review.
We work across pharmacy-led health and
beauty retailing, pharmaceutical wholesaling
and distribution, and contract manufacturing.
Our businesses are of varying size and work in
different economic and social circumstances.
As such, we have ensured that our CSR
framework is robust enough to provide
leadership and direction, yet exible enough
to take into account differences in approach
for each business working within the context
of their local communities and markets. It is
necessary to have a support structure which
helps each business to develop and take
ownership of a CSR agenda that is appropriate
to local circumstances, whileremaining within
the overall Alliance Boots framework.
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Carbon
management
sustainability
Community
healthcare
Healthy
workplaces
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Product
Community
healthcare
Education
and research
Fundraising
Giving
Volunteering
Sustainable
products
Managing carbon
Saving energy
Sustainable transport
Waste and recycling
Water
Employee health
Diversity
Women at work
Training and
development
Engaging
our people
Health and
safety
Cause-related marketing
Corporate governance
Healthy living
Our supply chain
Environment
At Alliance Boots, we are determined to
be a leader and an example to others in
addressing the threat of climate change.
We pursue many practical activities
which contribute to the overall reduction
of our carbon footprint.
Workplace
As a Group whose purpose is to deliver
products and services that help people
look and feel their best, it is second nature
to make the health and wellbeing of our
own employees a priority. We continue
to support our people through training
and development, so that they can both
grow professionally, and meet the
evolving challenges of our industry.
Community
We strive to support the communities
that we work in. We provide our people
with opportunities to devote their time,
energy and talent to support the causes
that matter through volunteering
and fundraising.
Marketplace
Our mission to make people look and
feeltheir best comes alive through a range
ofpartnerships and health campaigns.
Inaddition, we can build on our position
of trust to make a positive impact on
ourindustry and our patients and
customers lives.
Our approach
included for the current but not prior
yeardata, being the rst full year since
acquisition. To provide meaningful year
on year comparisons for our environmental
performance data, we have referenced
organic growth where relevant, removing
the impact of prior year acquisitions
recorded for the rst time in 2013/14.
Re-statements: In 2013, the UK
Governments Department for Environment,
Food and Rural Affairs (DEFRA) completed
a signicant review of the content and
format of the conversion factors used
to convert different forms ofenergy use
into a common measure (e.g.tonnes of
CO2 emission). The Group has adopted
the new methodology to continue to apply
best practice. To providecomparable data,
the prior year information has been
restated applying the new methodology.
Data collected locally is rst reviewed by
our CSR champions and nance teams
at a local level. The data is then signed off
by the business Finance Director. This is
then reviewed by the Divisional nance teams
before being submitted to Group nance,
and our central CSR team, for nal review.
Finally, the data is independently assured
by KPMG, before publication in our annual
CSR report.
In addition to the independent assurance
report on our 2013/14 CSR data issued
by KPMG, we continue to use the Global
Reporting Initiative (GRI) sustainability
reporting framework as a checklist for our
reporting and we have also included a fully
referenced GRI index in the report.
Our corporate social responsibility
management
As part of our CSR programme, we have
achampion in each business with
responsibility for dening and delivering local
CSR priorities and targets in line with the
Groups overall objectives. These objectives
provide a framework for our businesses to
establish their own priorities and targets
thatreect the local business environment.
Progress against these targets is monitored
quarterly by the Group and a senior business
leader is accountable for each target.
Eachchampion works with an action group
(which includes senior representatives of
relevant business functions) for his or her
individual business and the champions
holdteleconferences to share initiatives and
internally report on their activity. They meet
together once a year to share their skills,
experiences and ideas with their peers
andmembers of the social responsibilities
committee. Formal and informal collaboration
between champions helps us toshare best
practice and ensures that our businesses can
benet from progress made across the Group.
For example, Boots UK hasworked in close
partnership with Alliance Healthcare UK on
an energy saving campaign for all its sites,
including warehouses and support ofces.
All champions across Alliance Boots are
supported by the Groups CSR Director and
coordinator, who provide guidance and
additional expertise on working within the
Groups CSR framework. In addition, each
champion is supported by colleagues from
their respective business and a number of
Group functions including human resources,
communications and nance. In March 2014,
we launched an innovative learning and
development programme to support our
corporate social responsibility champions
with training on CSR theory and its practical
implementation, developed in conjunction
with Birkbeck University, London. This new
CSR e-learning programme is composed
ofeight e-learning modules and uses case
studies, debates, discussion and real outcomes.
It aims to ensure that each champion across
the Group has a consistent knowledge and
understanding of the CSR agenda, combined
with the condence to manage and collaborate
with internal and external stakeholders.
The corporate governance section of this
report offers more on how we structure
our work in this area.
Data management process
We have a Group-wide approach to
recording, measuring and reporting on our
CSR performance. We have a set of reporting
criteria and a set of CSR measures and
performance indicators that are applicable
across the Group. The CSR data captured is
used to inform and assist in the development
of each business individual CSR programme.
The data presented within this report reects
the continuing operations of the Group.
TheGroups CSR data is produced in
accordance with the Alliance Boots CSR
Reporting Guidelines (which can be found
atallianceboots.com/corporate-governance/
committees).
Acquisitions: In 2013/14 performance
data for the Groups prior year acquisition
(Alliance Healthcare Russia) has been
Data published
annually in
Alliance Boots CSR
report in line with
GRI guidelines
Business Finance
Directors review
and sign off data
Data
independently
reviewed
Data is reviewed
by Divisional
nance teams
Data consolidated
and reviewed by
Group nance and
central CSR teams
Data is collected
by business nance
teams assisted by
CSR champions
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Social responsibilities committee
The social responsibilities
committee, comprised of ve
members of the Board of Directors,
meets four times a year. They keep
under review and advise the Board
on the Groups policies and practices
in the area of corporate social
responsibility, including issues
related to the environment,
health and safety, diversity and
equal opportunities, race relations,
employment of people with
disabilities, charitable giving and
ethical matters, and the Groups
values and standards.
05 Marco Pagni 04 Thomas Sabatino 01 Ornella Barra 02 Nick Land 03 Chris Britton
01 Ornella Barra
Chairman of the social
responsibilities committee
Chief Executive,
Wholesale and Brands
Ornella Barra is Chief Executive, Wholesale
and Brands. She had previously been Chief
Executive of the Pharmaceutical Wholesale
Division (from January 2009 to September
2013), and before that, Wholesale &
Commercial Affairs Director. In her role,
sheoversees the Pharmaceutical Wholesale
Division and the overall development of
International Health & Beauty and Brands.
Ornella is Chairman of the social
responsibilities committee. Prior to the
merger of Alliance UniChem and Boots Group
she was executive Director of
Alliance UniChem with wholesale and
commercial affairs responsibilities, having
been appointed to its Board in 1997 when
Alliance Sant merged with UniChem.
InApril 2013, Ornella was appointed as
anindependent member of the Board of
Assicurazioni Generali. She started her career
as a pharmacist in Italy and is an honorary
professor at the University of Nottinghams
School of Pharmacy.
02 Nick Land
Non-executive Director
Nick Land was appointed as a non-executive
Director in March 2008, is Chairman of the
audit and risk committee and is a member
of the social responsibilities committee.
Nick is a non-executive Director of Vodafone
Group, BBA Aviation, Ashmore Group and
the Financial Reporting Council. He is also
Chairman of the Guidelines Monitoring
Group, the Board of Trustees of the Vodafone
Group Foundation and of Farnham Castle,
amember of the Advisory Board of Alsbridge
and an advisor to the board of Dentons
UKMEA. Previously he was a partner and
Chairman of Ernst & Young in the UK and
a member of its Global Executive Board.
Heisamember of the Institute of Chartered
Accountants in England and Wales.
03 Chris Britton
Non-executive Director
Chris Britton was appointed as a
non-executive Director in June 2008 and
is a member of the social responsibilities
committee. Since September 2013,
Chrishasmanaged B&B Capital Partners,
aspecialist investment fund, established
byAlliance Boots. In addition, he is a
non-executive Director of DS Smith and
a Director of a number of privately owned
foodcompanies. Previously, Chris was
non-executive Chairman of Ellas Kitchen
andbefore that was Chief Executive Ofcer
of the Findus Group. Earlier in his career he
was Executive Board member and President
Baby Food Division of Royal Numico and
healso worked for Diageo in various general
management and marketing positions.
04 Thomas Sabatino
Walgreens
Thomas Sabatino was appointed to the
Board of Alliance Boots in August 2012.
Thomas is Executive Vice President,
General Counsel and Corporate Secretary
of Walgreens. Previously Thomas held
general counsel roles with United Airlines,
Schering-Plough Corporation, Baxter
International, andAmerican Medical
International. Thomasis also Chairman of
the Association of Corporate Counsel, the
advisory Board of Corporate Pro Bono and
a member of the Board of the International
Institute for Conict Prevention and
Resolution. Thomas is a member of the
Bar in Massachusetts, Illinois and California.
05 Marco Pagni
Group Legal Counsel &
ChiefAdministrativeOfcer
Marco Pagni is Group Legal Counsel & Chief
Administrative Ofcer, having been appointed
a Director of Alliance Boots in July 2007.
Previously he was General Counsel and
Company Secretary of Alliance Boots, having
joined Alliance UniChem in the same position
in 2003. Prior to this, Marco held senior
management positions in McDonalds and
Texas Instruments, having started his career
as a law lecturer at Oxford University before
being admitted to the Bar in England
and Wales.
Our approach
Community
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We strive to support the communities that we work in.
We provide our people with opportunities to devote their time,
energy and talent to support the causes that matter through
volunteering and fundraising.
In our day to day business we help people to look and feel their best
around the world. Our work in the community naturally complements
this and is focussed on health and wellbeing.
Thanks to the enthusiasm of our people we help others to lead healthier
lifestyles and support those living with disease or in extreme need.
We encourage our people to support the ght against cancer, supporting
the European Organisation for Research and Treatment of Cancer (EORTC)
Charitable Trust to nd new ways to ght the disease. We also encourage
our people to support charities local to their communities.
In June 2013, our partnership with the EORTC
Charitable Trust won the Best International
Community Investment Award at the Ethical
Corporations Responsible Business Awards
inLondon. This recognition is a further
testament to the importance of our work,
together with the EORTC Charitable Trust,
inthe ght against cancer.
The Group-wide partnership also
complements our other collaborations with
local cancer charities, including Macmillan
Cancer Support in the UK, reecting our
holistic approach to supporting the cause,
nding new ways to ght the disease and
supporting those living with it.
Employees at Alliance Boots have continued
to show enthusiastic support for the cause
throughout the year, 0.9 million being raised
for the EORTC Charitable Trust in 2013/14.
A wide range of fundraising events have
enabled our people to raise 1.9 million since
the launch of the partnership and we remain
committed to our fundraising target of over
5 million to support the EORTC Charitable
Trust by 2016.
As Europes largest clinical cancer research
organisation, the EORTC collects colorectal
cancer tissue samples to develop new cancer
research treatments aimed at identifying
andtargeting specic types of tumours.
TheBiobank builds on the identication of
the gene mutations involved in colorectal
tumours using advanced sequencing
technology. This enables doctors to develop
personalised medical treatments based on
the genetic make-up of a patients cancer.
The project is now well underway and the
Biobank is taking shape at the Institute of
Pathology in Dresden, Germany, with several
other European institutions assisting in the
collection of tumour biological samples.
Since its ofcial opening in September 2013,
more than 390 patients from Belgium,
Germany, Cyprus, Spain, Italy, Portugal and
Switzerland have enrolled in the project as
part of the drive to collect samples, with the
number of patients enrolled set to grow to
600 per year.
Alliance Boots continues to pledge its support to the European
Organisation for Research and Treatment of Cancer (EORTC)
Charitable Trust. Our fundraising partnership enables the ongoing
development and running of a pioneering pan-European Biobank
for colorectal cancer, the worlds third most common cancer,
which is responsible for around 220,000 deaths a year in Europe.
Continuing the ght
against cancer
Community
In focus
Our partnership with Alliance Boots plays a leading role in making
cancer treatment progress. Today, I can proudly say that the
project is developing fast, and to date we have more than
390 patients enrolled in the Biobank. The funds that Alliance
Boots is raising are key to the development of innovative cancer
treatments that will contribute to saving lives in the future.
Count Diego du Monceau de Bergendal
Chairman of the EORTC Charitable Trust
ParkLife2013 team covers distance
from UK to Italy
In June 2013, over 210 colleagues collectively
covered 2,905km around Londons Hyde Park,
by foot or by bike. This far exceeded their
original target of 1,600km (the approximate
distance between the Boots UK ofces in
Nottingham and the Alliance Healthcare
Italia ofces in Lavagna, Italy). The event
raised over 60,000 for the EORTC
Charitable Trust.
London to Paris Ride for Life
In September 2013, the London to Paris
Ride for Life bike ride took place with a
teamof 17 colleagues cycling a combined
4,000km in less than 48 hours. Starting from
the Boots UK agship store on Oxford Street,
the team cycled to the Arc de Triomphe
in Paris, raising over 17,000 in the process,
withthe active engagement of colleagues
and suppliers.
Alliance Healthcare football
and netball championships
Our sporting champions came to the fore
when Alliance Healthcare UK held its rst
ever football and netball championships
in September 2013. Over 300 people
gathered from across the UK for the event,
held in Nottingham, for a day of activities
and competitions. The championships
raised more than 40,000 for the EORTC
Charitable Trust.
Group-wide fundraising engagement
In addition to these signicant one-off
fundraising events, our people across the
Group have imaginatively raised funds and
awareness for the charity in a variety
of other ways.
An International Cookbook was published
in order to raise money and awareness for
the EORTC Charitable Trust. This comprises
a collection of traditional recipes suggested
by Alliance Boots colleagues from across
17 countries.
During the year, about 50 of our
AllogaFrance colleagues took part in a
charity run from Marseille to Cassis, while
teams from Alliance Healthcare Netherlands
participated in two running events the
Vestingloop and the Meppel Cityrun
andAlliance Healthcare Czech Republic
organised acharity football match.
Alliance Healthcare Italia, our associate
business in Italy, also offered colleagues the
opportunity to donate a proportion of their
salary to the EORTC Charitable Trust, which
resulted in 300 colleagues raising 11,000.
Funds were also raised through
Group-wideproduct sales, promotional
campaignsand supplier donations.
AllianceHealthcareNetherlands,
Alliance Healthcare Espaa, our associate
business Alliance Healthcare Italia, as well as
BCM our contract manufacturing business
in the UK and Boots Norge all held sales
during the year to help raise money.
Rafes run by Alliance Healthcare France
andat the Alliance Healthcare Deutschland
Pharmacists Ball 2013 also helped to raise
funds, with the latter collecting 65,000
inone night.
Alliance Healthcare France also ran a three
month fundraising campaign directed at
Alphega Pharmacy managers and teams
in France, which raised more than 3,000.
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Objective: To establish meaningful
multi-year partnerships with charitable
organisations and other stakeholders
that share our values of making a
difference and our commitment to
improving health and wellbeing in
thelocal communities that we serve.
Our priorities for 2013/14 were:
To raise over 5 million by 2016 to establish a
Biobank for colorectal cancer in partnership
with the EORTC Charitable Trust.
In 2013/14, Alliance Boots businesses raised
0.9 million for the EORTC Charitable Trust,
bringing the cumulative total to 1.9 million.
Fundraising and volunteering initiatives
included sporting events such as
ParkLife2013, which involved over
210colleagues covering 2,905km of
LondonsHyde Park by foot or by bike to raise
over 60,000 with the support of partners,
and the London to Paris Ride for Life, which
raised over 17,000. Associate businesses also
participated in the programme, an example
being Alliance Healthcare Italia where around
300 colleagues donated a proportion of their
salary, raising 11,000.
For each principal business to establish
partnerships with charitable organisations
with supporting activities to improve the
health and wellbeing of people within its
local community.
During the year, 12 of our businesses
had charitable partnerships and related
supporting activities in place. Examples
include Boots Irelands partnership with
the Irish Cancer Society, which raised over
190,000 during the year, activities including
the National Night Walk for Night Nurses.
Boots Thailand has a three year partnership
with the BaanGerda Foundation, providing
shelter and food for HIV-infected children.
Boots UK supported BBC Children in Need
for the tenth year, raising around 1 million
for the charity, with the help of colleagues
in Boots Opticians and BCM, the cumulative
total raised being almost 6.5 million.
Additionally, Boots Opticians, through its
partnership with Action for Blind People,
raised over 255,000.
To make use of our signicant consumer
reach through our owned and franchise
pharmacies as well as the Alphega Pharmacy
network with local programmes to deliver
health-related information and advice to
customers and patients.
A further 500 Boots UK pharmacists trained
as Boots Macmillan Information Pharmacists
during the year, bringing the total to over
1,850. In addition, Boots UK launched
itsGetActive, Feel Good campaign to
encourage customers to talk to pharmacy
teams about the importance of physical
activity. Boots Opticians installed retinal
cameras in all locations, and now includes
a digital retinal check as standard in the
Boots eye check. Alliance Healthcare Espaa
worked with Alphega pharmacies to relaunch
its Pregnancy and Baby Guide, which
addresses health and emotional concerns
of pregnant women and mothers with
children up to age two, and in France, a
diabetes awareness campaign was launched
across allAlphega pharmacies.
Objective: To support our employees
to volunteer their time to make a
difference in the communities that
weserve. Our priority for 2013/14 was:
To increase the number of our businesses
with employee volunteering programmes
in place.
Across our businesses employees are
encouraged to participate in employee
volunteering opportunities in their local
communities. Boots UK, Boots Opticians and
Alliance Healthcare Czech Republic all have
employee volunteering programmes in place.
Boots UK was a joint winner of the Business
inthe Community Employee Volunteering
Company of the Year Award at the East
Midlands Local Impact Awards, in recognition
of 200 Boots UK employees renovating
Nottingham Forest Recreation Ground in
May2013. Alliance Healthcare Czech Republic
employees also participated in Give & Gain
Day 2013, volunteering to upkeep gardens,
elds and orchards at an ecological centre,
renovating the gardens of a care home
specialising in patients with autism and
clearing up gardens at a nature park.
2013/14 community targets
Community
Community
healthcare
As an organisation focussed on pharmacy-led
health and beauty, promoting and supporting
a range of initiatives that improve the health
and wellbeing of the communities we serve is
a natural extension of our business activities.
We have a strong heritage in providing
accessible and affordable healthcare services
and products to patients and customers.
Forover 160 years, Boots UK has championed
the right of everybody to access affordable
quality medicines, thereby improving general
health and wellbeing. This ethos continues
across Alliance Boots today.
Supporting those living with cancer
Now in its fth year, Boots UKs
partnership with Macmillan Cancer
Support continues to provide
invaluable and accessible support to
those affected by cancer in the UK.
During the year, a further 500 Boots UK
pharmacists trained as
Boots Macmillan Information Pharmacists,
bringing the total to over 1,850 across the UK.
Boots Macmillan Information Pharmacists
work in store, offering help and advice to
those living with cancer. The initiative
received positive external recognition in the
UK and was shortlisted for Corporate Social
Responsibility Initiative of the Year category
at the Retail Week Awards 2014.
Boots UK also ran a Get Active, Feel Good
campaign across its store network to
encourage customers to talk to pharmacy
teams about the importance of physical
activity to post-cancer recovery.
In September 2013, Boots Macmillan Beauty
Advisors were introduced in select Boots
stores across the UK. Together with
Macmillan Cancer Support, No7 beauty
advisors have been specially trained to offer
practical advice and support to help those
affected by cancer manage and disguise
thevisible side effects of their treatment.
Improving the health
of local communities
We can leverage the thousands of
pharmacies that we operate, and the
thousands that we support through
our networks, to have a really positive
impact on health and wellbeing in
our local communities.
Alliance Healthcare Netherlands has
introduced a LungCheck service, in
partnership with local pharmacists, to provide
bespoke support for asthma and chronic
obstructive pulmonary disease patients
across the country. The targeted checks
involve patients receiving a personalised
consultation at their local participating
pharmacy to help improve their inhalation
technique, screen for malnutrition, and
provide advice on therapy adherence.
TheLungCheck also includes guidance on
theassociated health risks of smoking and
tips to stop smoking.
Boots Thailand continued its support for the
BaanGerda Foundation, a childrens charity
that provides shelter and food for HIV/AIDS
affected children in the Lopburi province in
Thailand. Customer, supplier and employee
donations have contributed vital funds and
supplies to BaanGerdas on-site team, which
provides high quality treatment and medicine
for the children.
Education
and research
Alliance Boots is committed to helping
improve healthcare in the communities we
serve. Education is one of the many channels
which can help make a difference to peoples
understanding of health issues.
Raising the awareness
of major health issues
Heart disease is one of the principal
causes of death in Norway, but despite
this many Norwegians do not know
their cholesterol level. In response,
allBoots Norge pharmacies now offer
a walk-in cholesterol measurement
service. Advice given on healthy
lifestyles includes encouragement
tobe more physically active, to eat
hearthealthy foods, to stop smoking
and to better understand what
cholesterol levels really mean.
To help address the growing issue of diabetes
in the UK, Alphega Pharmacy, our network
for independent pharmacists, introduced a
Diabetes Risk Awareness Service for members
to enable patients and customers to
understand if they are potentially at risk,
allowing them to take preventative action
where necessary. The service is carried out
by trained members of the pharmacy team
inprivate consultation areas and includes
discussions on lifestyle, diet and exercise, a
measure of blood glucose level and advice
onways to reduce the risks of developing
Type 2 diabetes.
Alphega Pharmacy France also launched
a diabetes awareness campaign during the
year,which comprised posters and leaets,
in addition to in-depth training for
pharmacists to enable them to directly
support their customers.
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Similarly, Boots UK now offers a service which
aims to identify a patients risk of developing
Type 2 diabetes and in high risk cases a
referral to a GP for a full diagnostic test will be
made. Pharmacists have also been trained to
offer advice to patients on lifestyle changes
and how they can help to reduce their level
ofrisk of developing Type 2 diabetes.
Improving healthcare
through the media
We continue our partnership with
the BBCs international development
charity, BBC Media Action, which
we have supported since 2012when
Alliance Boots became its rst
healthcare partner.
BBC Media Action uses the power of the
media and communication to tackle poverty,
improve health and give people a clearer
understanding of their rights. Health is a key
area for the charity, which uses TV, radio and
mobile phones to help save lives in more than
35 developing and transitional countries
around the world.
Fundraising
At Alliance Boots, we rmly believe in the
importance and value of helping good
causes. Our people across all our businesses
are encouraged to support and raise money
for local, national and international charities
supporting communities around the world.
Improving the lives of children
around the world
Boots UK has supported BBC Children
in Need for 10 years and, with the help
of colleagues in Boots Opticians and
BCM in the UK, the cumulative total
raised is almost 6.5 million.
Across Boots UK, colleagues took part in
numerous fundraising activities throughout
the year. Events included everything from a
bingo bonanza in the Nottingham support
ofce to zumbathons on high streets across
the UK and numerous fancy dress activities.
No7 colleagues in stores also supported
BBC Children in Needs BearFaced campaign,
encouraging women to swap their make-up
for a paw print in November 2013. During
2013/14, Boots UK raised around 1.0 million
to support the work of BBC Children in Need.
We have also fundraised to help those living
without the support of a family. Since 2004,
Alliance Healthcare Czech Republic has
worked with the Fund for Children in Need,
anational charity which helps children who
are neglected, abused or fostered through
their network of Kangaroo homes.
AllianceHealthcare Czech Republic works
with the pharmacies it serves to raise funds
through collection boxes positioned in stores.
To date the partnership has raised more than
CZK8.5 million in total (almost 250,000).
Farmexpert, our wholesale business in
Romania, runs a series of initiatives in aid
of children. These include Read with me,
a project created for children in poor areas
aged between three and 11 years old, in order
to offer them school supplies and childrens
books. Each year a Childrens Day is held
on1 June and Farmexpert offers nancial
support for the purchase of toys and sweets
which are then distributed to placement
centres, both for orphans and children from
troubled households. In addition, Farmexpert
makes a direct contribution of more than
11,000 to purchase rucksacks.
Farmexperts other ways of helping local
children during the year included the provision
of dentistry services to over 420abandoned
children, employees donating gifts and toys
for children in orphanages and offering the
chance for children with different disabilities
to create paintings that were later auctioned
with theproceeds going towards medical
care. Farmexpert also distributed food
packages tomore than 600 elderly people
and children in Romania at Easter
andChristmas, as part ofits ongoing
commitment to the wider community.
BCM in the UK has partnered for a number
ofyears with Rainbows Childrens Hospice
in Loughborough. As the East Midlands
only hospice for children and young people,
Rainbows provides life-limited children and
their families with much needed care and
support, both throughout the illness and
beyond, for bereaved parents and siblings.
During the year, BCM raised over 2,500
through initiatives such as a book sale, a
fragrance sale and an annual Rainbows lottery
draw. Colleagues also volunteered and
raninthe annual Rainbows Santa Fun Run
inDecember 2013. Additionally, over
40Christmas presents purchased by BCM UK
were wrapped by colleagues and donated
to Rainbows.
Community
Partnering to support those
living with cancer
Boots UK raised 2.7 million for
Macmillan Cancer Support in 2013/14.
In total, through signicant activity
with colleagues, customers and third
parties, Boots UK has collectively
raised 9.0 million since its partnership
with Macmillan Cancer Support began
in 2009.
The partnership with Macmillan Cancer
Support continues to engage our people and
customers across Boots UK stores, employees
at the support ofce in Nottingham and
stakeholders more widely to support the
charity which helps people who are living
with cancer.
Notable events during the year included
colleagues from Boots UK and the wider
Group climbing Mount Kilimanjaro in
Tanzania. Scaling 5,895 metres of Africas
highest mountain, the team of 60 employees
raised more than 380,000. In addition,
August and September 2013 saw a series of
nine sponsored Miles for Macmillan walks
involving hundreds of colleagues, along with
their friends and family, in locations across
the UK.
In Norway, Boots Norges partnership with
ScreenCancer has seen Boots pharmacies
across the country continuing to deliver a
mole screening service, testing for malignant
melanoma, as well as less dangerous varieties
of skin cancer and other less serious illnesses.
The testing portfolio in Boots pharmacies
in Norway also now covers checks for
colon cancer.
Since 2012, Boots Ireland has supported
theIrish Cancer Society. In addition to
pharmacists being trained by the charity to
provide expert guidance to customers in
stores nationwide, the partnership extended
to a number of key campaigns and activities
during the year. The National Night Walk for
Night Nurses saw around 900 colleagues and
a number of customers participate in a series
of walks across the country, raising in excess
of 45,000 for the cause. Other fundraising
events included a Shave or Dye charity
challenge and Boots Irelands second annual
Blue Hair Day, which saw colleagues across
stores dye their hair blue or shave it off
entirely to raise more than 27,000 for
theIrish Cancer Society. In addition,
BootsIreland ran Breast Cancer Awareness
month in October 2013 and Lung Cancer
Awareness month in January 2014.
In 2013/14, 190,000 was raised for the Irish
Cancer Society, bringing the total raised so far
to 338,000. In recognition of Boots Irelands
fundraising commitment to the Irish Cancer
Society, the business received the Best
Corporate Charity Partnership award at the
Fundraising Ireland Awards 2014.
Our associate business,
Alliance Healthcare Portugal, held a breast
cancer awareness month in association with
the breast cancer charity, Associao Lao.
Teams wore pink throughout October 2013 to
raise awareness of breast cancer prevention
and treatment.
Support for blind and
partially-sighted people
The partnership between
Boots Opticians and Action for Blind
People, a national charity in the UK
which supports blind and partially-
sighted people of all ages, continued
in 2013/14 with the business raising
over 255,000 through a wide variety
of fundraising events.
In June 2013, members of Boots Opticians
Operating Committee raised more than
4,000 by cycling from the home of
Dollond& Aitchison (which merged with
BootsOpticians in 2009) in Birmingham, to
the Boots UK support ofce in Nottingham,
visiting as many optician practices as possible
along the way. Similarly, another team
completed a 17 mile sponsored walk around
Rutland Water in November 2013, raising
almost 1,500 for Action for Blind People.
In addition to its charitable support, the
business has taken further steps to boost eye
health more generally. Boots Opticians has
retinal cameras installed in all locations and
now includes a digital retinal check as standard
in the Boots eye check. These scans enable
Boots optometrists to create permanent
records of a patients eye health and to track
any changes.
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Volunteering
We encourage our people to contribute in a
way that benets the wider community and
encourage volunteering opportunities with
our charity partners. Volunteering provides
our people with a sense of pride and helps
to develop their leadership and organisational
skills. In addition to this, we can harness this
energy towards common goals.
Volunteering across the Group
Across the Group, volunteering is an
important part of how we help our
local communities, with employees
encouraged to give their time and
effort to work on charitable projects.
Boots UK, Boots Opticians and
AllianceHealthcare Czech Republic
all have dedicated employee
volunteering programmes in place.
Alliance Healthcare Czech Republic
participated in Give & Gain Day 2013
inMay2013, with three groups of colleagues
helping with upkeep and renovation projects
for gardens at a care home specialising in
patients with autism, an ecological centre
anda nature park.
In July 2013, a team of 26 colleagues
fromGroup Finance and FM Solutions, our
facilities contractor, dedicated their time
to agardening project for a local primary
school in Weybridge, UK.
Recognition for
outstanding volunteering
In 2013, Boots UK was a joint winner
of the Business in the Community
Employee Volunteering Company of
the Year Award atthe East Midlands
Local Impact Awards. The award
specically recognised the efforts
of 200 Boots UK colleagues who
participated in renovating the
Nottingham Forest Recreation
Ground in May 2013. The award also
recognised Boots UKs active role in
helping develop healthier communities
in Nottinghamshire through its
charitable giving,charity partnerships,
colleague fundraising and volunteering
programmes.
In addition, Boots UK volunteers were
credited by British responsible business
charity, Business in the Community, for
helping to create feel good moments for
families affected by bereavement and/or
domestic abuse. Throughout the year,
colleagues organised parties, pamper sessions
and coffee mornings for those on the waiting
list for support with the Spiral charity, which
provides care and support for children and
families in Nottingham.
Community
Giving
Alliance Boots is committed to supporting
worthwhile causes that benet the
communities we serve. During the year,
theGroup made cash donations totalling
1.8 million.
Where possible, we go beyond the traditional
charity partnership and our involvement is
more than simply a nancial transaction.
Weuse our position of trust within local
communities to raise awareness around
issues, inspire our customers to become
involved, and we encourage our people
to become involved too. In addition to
Group-wide initiatives, all of our businesses
have local charitable partnerships in place
to support the communities in which
they operate.
The Group has no afliation to any political
party or group in any country and makes
no political donations.
Supporting others in times of crisis
Alliance Boots continues to support
International Health Partners, a charity
which aids relief efforts around the
world through the distribution of
medical products some of which
are donated and others purchased
through our cash donations.
In September 2013, Boots Thailand donated
asupply of Boots insect repellent to the
ThaiFood and Drug Administration to
support communities impacted by ooding,
particularly across the north-eastern regions
of the country.
In November 2013, in the wake of
TyphoonHaiyan, a deadly tropical cyclone
which devastated South-East Asia and killed
morethan 6,000 in the Philippines alone,
Alliance Boots donated medical supplies
through International Health Partners to help
survivors on the ground, many of whom
were left homeless.
Donating to the local community
The Boots Charitable Trust plays
animportant role in supporting local
communities close to its historic
homein Nottingham.
Since its establishment in 1970, the
BootsCharitable Trust has donated more
than 10 million to local charities and
organisations which benet the people
of Nottinghamshire. Boots UK continues
to support the Boots Charitable Trust,
donating 250,000 to it in 2013/14. The trust
distributes small grants tohealth, lifelong
learning, community development and social
care charities in the county. Examples of
recent grantees can be found on the
Boots UK CSR website.
Alliance Healthcare Italia, our associate
business, has a long term relationship
with Banco Farmaceutico, a not-for-prot
organisation based in Milan, Italy, which
provides medical supplies to disadvantaged
people inthe country. The business
supports BancoFarmaceuticos medicines
collectionbystoring donated items in
Alliance Healthcare Italia warehouses around
Italy for them topick up and distribute via a
network of charitable partners. Working with
Banco Farmaceutico, Alliance HealthcareItalia
also identies surplus stock that can benet
charities. For example, in February 2014
thebusiness donated over 1,500 units of
arespiratory drug. Only drugs that have
previously been requested are supplied,
inorder to ensure that efforts are focussed
onmeeting real and specic needs.
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Community
contributions data
During 2013/14, our community contributions
increased by 0.3 million to a total of
5.4million. These contributions comprised
cash donations (charitable and other
donations) and non-cash donations, which
included employee time, in kind donations
and also management costs.
The 0.3 million increase in community
contributions was mainly due to higher
employee time reecting our employees
commitment to fundraising and volunteering,
the level of cash contributions
being maintained.

How we contribute
for the year ended 31 March 2014*
Cash 33%
Non-cash 67%
How we contribute
for the year ended 31 March 2014
Continuing operations
2014*
million
2013
million
Cash donations
Charitable 1.6 1.5
Other 0.2 0.3
1.8 1.8
Non-cash donations
Employee time 2.1 1.6
In kind donations 0.9 1.1
Management costs 0.6 0.6
5.4 5.1
What we support
Health 56%
Education 19%
Social welfare
17%
Other 8%
What we support
2014*
million
2013
million
Health 3.0 2.8
Education 1.0 0.9
Social welfare 0.9 0.9
Other 0.5 0.5
5.4 5.1
Our key focus areas for community
contributions are health, education and
social welfare. During the year contributions
increased or were maintained across all areas
with the highest increase being in the health
category. Charities within this category
include the EORTC Charitable Trust and
Macmillan Cancer Support.
As a leading international pharmacy-led
health and beauty group we are in a position
to make a signicant impact on major issues,
such as supporting the ght against cancer,
through our international partnership with
the EORTC Charitable Trust. We also aim
toimprove the wellbeing of the local
communities in which we operate, and our
organisation is well placed to support local
organisations and charities. Contributions to
local and national organisations accounted
for 85% of our donations in 2013/14.

Where we contribute
Local 28%
National 57%
International 15%
Where we contribute
2014*
million
2013
million
Local 1.5 1.4
National 3.1 3.0
International 0.8 0.7
5.4 5.1
Community contributions
By Division
2014*
million
2013
million
Health & Beauty 4.0 3.6
Pharmaceutical
Wholesale 0.8 0.7
Contract
Manufacturing &
Corporate 0.6 0.8
5.4 5.1
* Within KPMGs limited assurance scope.
Community
Environment
At Alliance Boots, we are determined to be a leader and an
example to others in addressing the threat of climate change.
We pursue many practical activities which contribute to the
overall reduction of our carbon footprint.
Our businesses are fully aware of their responsibilities to the environment.
In addition to mandatory compliance programmes, many of our businesses
have undertaken a number of voluntary initiatives, which demonstrate the
importance that is given to environmental issues and how these are moving
up the business agenda.
We want to help people look and feel their best, but we want to do this
within the framework of helping the planets wellbeing too.
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During the year, Boots commenced a chiller
replacement programme, which involves
installing over 2,500 new food and
drinksrefrigeration cabinets and related
refrigeration equipment in around
780stores across the UK and the Republic
ofIreland at a cost of just under 30 million.
The replacement chillers are 40% more
energy efcient, helped by better
performing refrigerant gasses, variable
capacity compressors, LED lighting and low
energy fans. The chillers will help reduce
food waste through better temperature
controls and are easier and less expensive
to maintain.
We believe investment in such efcient
technology marks an important step
forward by Boots UK in reducing energy
consumption in its stores across the
country, while at the same time improving
the reliability of our food offering for
customers.
Investing in more
efcient technology
We continue to look for ways to reduce our impact on the
environment and take steps that will contribute to a more
sustainable future.
In focus
Environment
2013/14 environmental targets
Objective: To reduce the Groups like
for like CO2 emissions. Our priorities
for 2013/14 were:
To achieve a like for like percentage decrease
in usage of energy (our largest category of
CO2 emissions), through increased awareness
and sharing of best practice methods across
the Group.
In 2013/14, on a like for like basis, we achieved
6.1% decrease in energy usage across the
Group. During the year, Boots commenced
achiller replacement programme, which
involves installing over 2,500 new food and
drinks refrigeration cabinets and related
refrigeration equipment in around 780 stores
across the UK and the Republic of Ireland
atacost of just under 30 million. The
replacement chillers are 40% more energy
efcient, will help reduce food waste through
better temperature controls and are easier and
less expensive to maintain. Boots buildings
in Great Britain, with the exception of power
generated on the Nottingham campus and
landlord supplies, are now powered by green
(low carbon) electricity. Inaddition, Boots UK
continues to be compliant with the Carbon
Reduction Commitment Energy Efciency
Scheme andfrom April 2013 was re-accredited
with the Carbon Trust Standard.
To minimise the level of non-essential
business travel through increased usage of
the Group-wide videoconferencing system.
Many of our businesses are making greater
use of the Group-wide videoconferencing
systems, including the Group Board and
related committees. This is saving valuable
management time and travel costs, as well
as reducing carbon emissions. To help reduce
the impact of essential travel, the Groups
new company car policy now includes more
fuel-efcient cars and a prohibition on cars
that achieve less than 40 miles per gallon
on average.
for like total waste levels and increase
the proportion of waste that is recycled.
Our priority for 2013/14 was:
For each principal business within the
Group to achieve a waste recycled level
of 50% or higher, where local facilities exist
to enable recycling.
During the year 14 of our principal
businesses achieved over 50% waste recycled
levels. Across the Group, businesses have
undertaken numerous initiatives to both limit
the amount of waste produced and increase
the proportion which is recycled. During the
year, Farmexpert in Romania and Hedef
Alliance in Turkey both launched awareness
campaigns to encourage employees to
separate their waste for recycling across
ofce locations. BCMs UK site continued
toachieve zero waste to landll.
Sustainable products
Improving the environmental performance
of the retail products wesell is a natural
way of making a positive contribution to
sustainable development. It is also a stimulus
forinnovation, developing new product
ideas that enhance customer condence
and convenience. Our aim therefore is to take
a holistic approach to product sustainability,
embracing the whole product lifecycle, from
concept and design through to customer
use and nal disposal of packaging and
waste product.
Preserving the planets biodiversity is a key
aim of sustainable development and involves
all sectors of society. Our commercial
operations have the potential to impact
onbiodiversity in a variety of ways.
For Alliance Boots, the two main areas
of impact arise from the sourcing of raw
materials and from the facilities we operate.
Our environmental management processes
seek to minimise the negative impacts
of these activities. We take into account
protected species and habitats, as required
by national and international legislation,
and we encourage opportunities to promote
and protect biodiversity.
The impact of chemicals on human health
and the environment has long been a matter
of concern for manufacturers and retailers in
relation to product formulation, development
and manufacture. To regulate our chemicals
usage across our retail products we have set
realistic but challenging targets to monitor
and manage our usage and related impact.
Building on the natural
goodness of Botanics
Our Botanics range combines natural
ingredients with scientic formulations
to create effective skincare products.
The range was rst launched in 1995,
in collaboration with scientists at the
Royal Botanical Gardens, Kew. Expert
advice ensures the vital plant extracts
used in our Botanics range are sourced
to conserve biodiversity.
Following a product sustainability process
review in 2012, we have continued to
make improvements to the Botanics range
throughout 2013/14, from packaging and
recyclability, to the sourcing of raw materials
that meet our strict sustainability criteria.
Theproduct sustainability process checks
against 24 criteria across the product journey.
This establishes a holistic footprint from
start to nish for each product, focussing
attention on where improvements can
bemade.
In recognition of our efforts to continually
improve the sustainability performance
of the range, Botanics was named winner
of the Natural Capital award at The Guardian
Sustainable Business Awards 2014.
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Carbon management
data

Total Group CO2 emissions
By source
Energy 60%
Product
delivery 34%
Business travel 6%
By source
Year on year growth
2014*
000
tonnes
2013
000
tonnes Total
Organic
basis
Energy 251.6 263.0 -4.3% -6.1%

Product delivery 141.7 137.9 +2.8% +0.2%
Business travel 27.6 27.0 +2.2% +0.9%
420.9 427.9 -1.6% -3.6%
By Division
Year on year growth
2014*
000
tonnes
2013
000
tonnes Total
Organic
basis
Health & Beauty 238.1 250.7 -5.0% -5.0%

Pharmaceutical
Wholesale 160.6 153.7 +4.5% -1.1%
Contract
Manufacturing
& Corporate 22.2 23.5 -5.5% -5.5%
420.9 427.9 -1.6% -3.6%
Saving energy
We aim to reduce our energy consumption
wherever possible across all our operations.
We have a two-pronged approach to
reducing our energy use: through education
and raising awareness, and through the
introduction of new technology.

Energy use
By Division (GWh)
Health
& Beauty 66%
Pharmaceutical
Wholesale 23%
Contract
Manufacturing
& Corporate 11%
CO2 emissions from energy
By Division
Year on year growth
2014*
000
tonnes
2013
000
tonnes Total
Organic
basis
Health & Beauty 187.4 201.1 -6.8% -6.8%

Pharmaceutical
Wholesale 44.3 41.9 +5.7% -5.3%
Contract
Manufacturing
& Corporate 19.9 20.0 -0.5% -0.5%
251.6 263.0 -4.3% -6.1%
CO2 emissions from energy decreased by
4.3%, 6.1% on an organic basis
, mainly due
to a milder winter in Europe and energy
efciency projects in many of our businesses.
Managing carbon
Carbon management is one of the biggest
environmental challenges the world faces
today. Alliance Boots recognises how
important this is and we seek to substantially
reduce the carbon intensity of our businesses.
Energy use is by far the biggest contributor
toour carbon emissions, and our health and
beauty stores continue to be the main energy
users in the Group. Boots UK is continuing
toemploy technology that enables it to
monitor energy use in its stores and respond
quickly to unexpected increases. A key aim
is to minimise energy usage when stores
are closed.
Boots UK continues to be compliant with
theCarbon Reduction Commitment Energy
Efciency Scheme, and from April 2013 was
re-accredited with the Carbon Trust Standard.
In addition, green (low carbon) electricity
powers all Boots buildings in Great Britain,
with the exception of power generated on
the Nottingham site and landlord supplies.
Across the Group, carbon dioxide (CO2)
emissions resulting from product delivery
arecalculated by adding emissions for our
owned eet vehicles and those of third party
contractors, where they are acting solely
on our behalf, and using their transport for
our operations only.
Organic basis excludes the impact of acquisitions made in the

prior year.
To account for material changes in conversion factors provided

by DEFRA, the carbon footprint from standard tariff electricity for
all countries and from air travel has been restated for prior year.
Refer to the data management process section.
Environment

CO2 emissions from energy
By type
Electricity 79% Gas 12%
Other 9%
Cutting energy across the Group
Across the Group our businesses
arecontinuing to seek new ways to
reduce the impact of their operations.
Initiatives are trialled, lessons are
learned and experiences are shared
across all our businesses.
For example, following the success of
Boots UKs pioneering EnergyCare project
(which has now seen more than 19,000
colleagues complete e-learning modules
to raise their awareness about energy saving),
Alliance Healthcare UK has been working
closely with Boots UK to establish an
adapted version of the campaign for all
its sites, including distribution centres
and support ofces.
Launched in March 2014, the
Alliance Healthcare UK EnergyCare project
isa three-part campaign focussed on small
steps that colleagues can take to make big
reductions in their energy consumption, both
at work and at home. The energy project is
supported by a new energy report dashboard
which is provided to distribution centre
managers each month to inform them
ofprogress.
In recognition of the importance of
energy conservation within Alliance Boots,
a Group-wide energy event took place in
September 2013. In addition to sharing best
practice from successful energy initiatives
from across different functions and
businesses, the event included an awards
ceremony to recognise star achievers.
Sustainable
transport
Transport is a key contributor to our carbon
footprint. The movement of goods from
distribution centres to retail stores,
pharmacies and hospitals generates carbon
dioxide. We are committed to reducing the
amount of carbon dioxide produced by our
distribution operations whilst maintaining
our high service level commitment to
provide frequent, on time deliveries for
critical pharmaceutical products. In addition,
we work with our manufacturers to reduce
their carbon footprint, in both their supply
of product to us as well as their own sourcing
of products.
As well as making environmental sense,
itmakes commercial sense for vehicles to
travelmore kilometres per litre of fuel, so
wecontinue to look at a range of different
activities to improve this efciency. These
include driver training, the purchasing of
more fuel efcient vehicles, and optimising
delivery routes.
The nature of our Pharmaceutical Wholesale
Division requires us to maintain and
usearelatively large eet of vehicles in
ordertoenable the high level of service
weprovideour pharmacy customers.
OurHealth&Beauty Division operations
require fewer vehicles. Owing to the nature
of our business activities, rail usage is low.
CO2 emissions from product delivery
By Division
Year on year growth
2014*
000
tonnes
2013
000
tonnes Total
Organic
basis
Health & Beauty 39.0 38.4 +1.6% +1.6%

Pharmaceutical
Wholesale 101.5 97.4 +4.2% +0.5%
Contract
Manufacturing
&Corporate 1.2 2.1 -42.9% -42.9%
141.7 137.9 +2.8% +0.2%
Group CO2 emissions from product delivery
increased 2.8% to 141.7 thousand tonnes in
2013/14 mainly due to the impact of including
businesses acquired in the prior year. On an
organic basis
, CO2 emissions from product

delivery increased 0.2% due to the increasing
international distribution of our products
andthe expansion of our business into
new services and contracts, partially offset
by lower emissions in our Boots UK logistics
operations. Contract Manufacturing
emissions from product delivery decreased
42.9% due to lower volumes and the
optimisation of vehicle transport.
Organic basis excludes the impact

of acquisitions made in the prior year.
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CO2 emissions from business travel
By type
Year on year growth
2014*
000
tonnes
2013
000
tonnes Total
Organic
basis
Road 19.0 18.9 +0.5% +0.5%

Air 7.9 7.4 +6.8% +1.9%
Rail 0.7 0.7 0.0% +0.7%
27.6 27.0 +2.2% +0.9%
Business travel Air
By length of haul
2014*
000 km
2013
000 km
Short haul 3,953 3,088
Medium haul 11,629 11,981
Long haul 12,905 12,066
28,487 27,135
By Division
Year on year growth
2014*
000
tonnes
2013
000
tonnes Total
Organic
basis
Health & Beauty 11.6 11.2 +3.6% +3.6%

Pharmaceutical
Wholesale 14.8 14.4 +2.8% +0.7%
Contract
Manufacturing
&Corporate 1.2 1.4 -14.3% -14.3%
27.6 27.0 +2.2% +0.9%
per thousand employees
By Division
2014*
tonnes
2013
tonnes
Health & Beauty 159 156
Pharmaceutical Wholesale 575 575
Contract Manufacturing
& Corporate 559 652
274 273
Minimising business travel
We continue to explore ways to
reduce business travel wherever
possible and encourage all our
businesses to increase their use
of videoconferencing.
Many of our businesses and corporate
functions are increasingly making use
of videoconferencing systems to reduce
our carbon emissions, enabling us to save
valuable management time and travel costs.
In addition, our businesses have their
ownpolicies regarding carbon emissions.
Alliance Healthcare France introduced a
newtravel policy in November 2013, which
prohibits travel where a videoconference or
conference call is appropriate, and the use of
public transport is encouraged in preference
to taxi use. To facilitate this, senior managers
now have videoconferencing facilities on
their own laptops. In Italy, our associate
business Alliance Healthcare Italia encourages
car sharing, with an online calendar which
shows colleagues upcoming car journeys
sothat others can join them.
The Groups CO2 emissions from business
travel increased by 2.2% to 27.6 thousand
tonnes in 2013/14, the increase reecting the
increased size of the Group. On an organic
basis

increased 0.9% due to increases in road and
air travel. The increase in air travel was mainly
due to organisational changes in the UK
resulting in more travel requirements and
expansion of the Groups presence in the
US and Asia.
Organic basis excludes the impact of acquisitions made in the

prior year.
To account for material changes in conversion factors provided

by DEFRA, the carbon footprint from standard tariff electricity for
all countries and from air travel has been restated for prior year.
Environment
Waste and recycling
We encourage waste reduction and an
increase in recycling across Alliance Boots.
We encourage our people to recycle the
waste they are responsible for, but we actively
seek to remove waste from the system.
Total waste produced by the Group for
theyear ended 31 March 2014 was
70.5thousandtonnes, a reduction of 2.8%.
On an organic basis
, total waste decreased

by 4.1%. The proportion of waste recycled
increased to almost 70%, resulting in a 4.4%
decrease inwaste to landll or incinerated.
Waste
By method of disposal
2014*
000
tonnes
2014*
%
2013
000
tonnes
2013
%
Landll or
incinerated 21.5 30.5% 22.5 31.1%
Recycled** 49.0 69.5% 50.0 68.9%
70.5 72.5
We consider waste reduction at all stages of
the product lifecycle, including raw material
and supply chain waste, and seek to minimise
the potential for waste at the consumer use
phase and at the end of a products life.
Waste
By Division
Year on year growth
2014*
000
tonnes
2013
000
tonnes Total
Organic
basis
Health & Beauty 41.3 42.8 -3.5% -3.5%

Pharmaceutical
Wholesale 19.7 21.2 -7.1% -12.0%
Contract
Manufacturing
&Corporate 9.5 8.5 +11.8% +11.8%
70.5 72.5 -2.8% -4.1%
Year on year growth in Contract
Manufacturing waste was mainly due to a
stock reduction programme in the UK which
resulted in the disposal of obsolete items.
Reducing waste and
increasing recycling
We strive to reduce waste and increase
recycling across our businesses.
Boots UK continues to look for opportunities
to reduce packaging at its boots.com logistics
facility. For example, in September 2013 new
equipment removed the need for cardboard
wedges in customer deliveries. In the run up
to Christmas, this change reduced cardboard
usage by approximately 60 tonnes.
Following successful campaigns
at Alliance Healthcare Espaa,
Alliance Healthcare UK and our associate
business Alliance Healthcare Portugal in
theprior year, Farmexpert in Romania and
HedefAlliance in Turkey launched awareness
campaigns during 2013/14 to encourage
employees to separate their waste from
recycling in ofce locations.
Elsewhere, in our contract manufacturing
operations, BCMs UK site continued to
achieve zero waste to landll.
Water
There is a nite amount of freshwater on
the planet (only 3% of total water in the
world is freshwater and less than 1% is usable
by humans). Rapid population growth and
accelerating levels of consumption mean
thatthe worlds water supplies face
increasing demand.
Water usage in our Health & Beauty and
Pharmaceutical Wholesale Divisions is modest.
Water scarcity implications for Alliance Boots
mainly concern the products we manufacture
and source from other suppliers.
During the year, a water usage review was
undertaken across the Groups UK businesses.
Boots UK uses its own sustainability
methodology to assess raw material and
manufacturing water impacts in producing
itsown brand and exclusive products
and product development teams work
to improve performance.
BCM in the UK continues to actively
pursueways to minimise water usage in its
manufacturing operations and is developing
a water usage strategy to reduce future usage.
In December 2013, Boots UK joined forces
with representatives from utility companies,
bathroom retailers and consumer product
manufacturers in an ongoing collaborative
project todevelop initiatives to improve the
sustainability impacts arising in the bathroom.
The project objectives included saving
water and protecting water quality, looking
at more efcient technologies, recycling and
responsible waste disposal. The project is
facilitated by Forum for the Future. We are
also working closely with the water industry
to improve the sustainability of ushable
products.
In addition, Boots UK held a Water Week
event in March 2014, in support of global
charity Water Aids World Water Day, which
included events across its Nottingham siteto
raise awareness around water conservation.
For further information on how
Alliance Boots manages resources, including
water, in product manufacturing, please see
the marketplace section of this report.
** Includes materials recycled via incineration with heat recovery.
Organic basis excludes the impact of acquisitions made

in the prior year.
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Marketplace
Our mission to make people look and feel their best comes
alivethrough a range of partnerships and health campaigns.
Inaddition, we build on our position of trust to make a positive
impact on our industry and our patients and customers lives.
Alliance Boots has a strong heritage as a valued and trusted member of
thelocal community. This goes back to the social mission and values which
Boots UK aspired to when founded over 160 years ago and championed
theright for everyone to access affordable medicines and healthcare.
We continue to champion easy access to affordable healthcare through
ourday to day operations. We strive to improve the wellbeing of the
communities in which we operate.
Alliance Boots faces the same social, ethical
and environmental risks as other large global
companies with complex worldwide supply
chains. We only source from suppliers who
satisfy our standards with regard to labour
and welfare conditions, health and safety
and environmental management, or who
have given a commitment to achieving
these standards within an agreed timeframe.
Boots UK introduced a supplier verication
process in 2002, to ensure that the suppliers
it works with when sourcing retail products
or the raw ingredients used to make Boots
own brand and exclusive products are
compliant with its Code of Conduct and
Business Ethics.
In November 2013, Alliance Boots
strengthened its position on supplier
verication with the launch of the
Group-wide Sourcing Responsibly assurance
programme for Goods Not for Resale; the
products we purchase for use within our
businesses, such as ofce equipment.
Combined, our verication programmes
ensure that we buy goods and services
which take social, ethical and environmental
issues fully into account and balance these
against our commercial needs of quality,
reliability and value for money. Internally,
our teams are also engaged in the sourcing
process, to ensure that we build sustainable
thinking into all our purchasing decisions.
Our mission is to build trust and transparency
in our supply chain through collaboration
with suppliers who share our commitment
tofair and honest trading. By monitoring
environmental performance, business
practices and how and where raw materials
are sourced, our approach to verication
covers everything from the components
used in goods and services, to the working
conditions of the people producing them.
A sustainable approach
toresponsible sourcing
Alliance Boots takes the sourcing of its products and services
very seriously. In 2013/14, we took steps to build upon our
framework for responsible sourcing in order to further ensure
our rigorous standards are met, both within the Group and
by our external suppliers.
In focus
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In focus
Boots UK is working in partnership with
local businesses, authorities and customers
to ensure high streets remain an important
part of retail in the UK, thus supporting
theregeneration of the communities
theyserve.
In April 2013, Alliance Boots pledged its
support to the High Street Champions
initiative, a scheme led by Business in the
Community in partnership with major
retailers. The initiative is running trials in
towns across the UK, with Boots UK among
a number of retailers to nominate people
from within their businesses tosupport the
Government funded regeneration work.
To help raise awareness of the High Street
Champions initiative, Simon Roberts,
Managing Director, Health & Beauty Retail
UK & Republic of Ireland, led a group of
senior business leaders on a High Street
Regeneration day, as part of Business
intheCommunitys The Princes Seeing
isBelieving programme.
The day included a visit to Croydon
Old Town, one of the pilot towns, and
highlighted the business benets of
engaging with communities at a local level.
To further demonstrate our commitment
tohigh streets, Simon Roberts was also
appointed co-chair of the Future High
Streets Forum with effect from April 2014,
alongside the UK Governments
(nowformer) High Streets Minister,
BrandonLewis.
The Future High Streets Forum was set up
in2012 and includes a number of senior
gures from across the retail, property and
leisure sectors in the UK. The Forum advises
on the challenges facing high streets and
helps to develop practical policies to enable
town centres to adapt andchange.
Safe-guarding the future
of UK high streets
Boots UK continues to champion the important role
high streets play at the heart of their communities and
the business is uniquely placed to offer valuable expertise
and support at a local level.
Marketplace
2013/14 marketplace targets
Objective: To evaluate and work
withthe Groups major suppliers
to establish that they have suitable
processes in place to comply with
thestandards set out in our Code
ofConduct and Business Ethics.
Ourpriority for 2013/14 was:
To implement a process to ensure that
suppliers and business partners for our owned
brands and exclusive products, and other
selected products, fully comply with our
Code of Conduct and Business Ethics
through our supplier verication programme.
During the year, we developed our process
forreviewing compliance with our Code of
Conduct and Business Ethics which forms the
basis of our assessment criteria for suppliers
of owned brands and exclusive products,
andother selected products.
Objective: To ensure that an
awareness of, and focus on,
sustainability is embedded within
ouractivities acrossthe Group.
Ourpriorities for 2013/14 were:
To ensure that we understand and review
thesocial and environmental benets and
impacts of our businesses.
During the year, Boots UK continued to
review its food ranges, including food
labelling and nutritional values. The business
also continued to work with the British Retail
Consortium on the Department of Healths
Public Health Responsibility Deal regarding
salt content in food products. In addition,
Boots Ireland achieved Business in the
Communitys Business Working
ResponsiblyMark.
To review water usage in our UK-based
businesses and develop an appropriate
waterusage strategy.
This review concluded that water usage in
our Health & Beauty and Pharmaceutical
Wholesale Divisions is modest. BCM has an
ongoing programme to actively pursue ways
to minimise water usage in its manufacturing
operations. In addition, Boots continues to
work to ensure that water scarcity is taken
into consideration when manufacturing,
using our own sustainability methodology.
Cause-related
marketing
At Alliance Boots, we recognise our
responsibilities as a corporate citizen to
deliver what we promise and to maintain
thetrust of our customers and other
stakeholders. For us, the key to successful
cause-related marketing is to nd causes
that make a difference in improving peoples
quality of life and which t strategically
with our mission, purpose and values.
Our chosen partners benet from the
willingness and enthusiasm of our people and
our ability to reach out to our customer base.
At the same time, we gain the opportunity to
demonstrate our commitment to health and
wellbeing and to reinforce trust in our brands.
Making a difference
to the lives of people
The Alphega Pharmacy network in
France continued its involvement
in +de Vie (or more life), a campaign
designed to help change lives for
elderly people living in hospitals.
An initiative led by the Fondation Hpitaux
de Paris Hpitaux de France, the annual
fundraising campaign works to improve living
conditions for the estimated 860,000 elderly
people living in hospitals across France.
In addition to improving hospital surroundings,
funds are used to create family apartments
and develop activities for inpatients such
as cooking, gardening and painting.
Members of Alphega Pharmacy in
France donated 5.00 from every Alvita
incontinence product sold during October
2013, which resulted in a total of 10,000
being raised for the campaign.
Alliance Healthcare France also showed
its support for + de Vie through external
marketing and press coverage.
Creating accessible
healthcare partnerships
BootsWebMD, the consumer health
and wellbeing information portal
created in partnership with WebMD,
now receives on average around
3.5million visitors every month.
Theonline portal is a source of original
andtimely health information and
alsofeatures material from established
content providers such as NHS
Choices, which builds on WebMDs
experience as the worlds largest and
most experienced source of online
health information.
As part of our desire to create an accessible
and helpful online healthcare resource, thesite
is designed to be as informative as possible.
In-depth resources on key topics such as
childhood health, healthy skin and weight
loss, and a Medicines A-Z with the latest
information on treatments, are combined
with interactive tools designed tomake a
users experience relevant and engaging.
Visitors can also sign up to e-newsletters to
ensure they are kept up to date on the latest
developments. The website can be viewed
atBootsWebMD.com.
Supporting enterprise
and innovation
Alliance Boots collaborated with
BioCity, the UKs leading bioscience
incubation company, to establish
MediCity, a new business incubator
focussed on health, beauty and
wellness based on our site in
Nottingham.
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MediCity opened for business in
November2013 and is the rst initiative to
open in the Nottingham Enterprise Zone,
which was established last year following
closecollaboration with the UK Government,
localauthorities and the Nottinghamshire
andDerbyshire Local Enterprise Partnership.
MediCity provides a stimulating and supportive
business development environment for
innovators in consumer healthcare, medical
technology, diagnostics and beauty products.
At the end of March 2014, MediCity was home
to ve businesses.
Investing in academic partnerships
Alliance Boots has a strong
underlying belief in the importance
of how academia and industry can
work together.
Such collaborations can create value that
goes beyond the partnership itself and,
inturn, help to make a difference to
communities around the world. We have an
established track record of supporting several
leading academic institutions, including
TheUniversity of Manchester, The University
of Nottingham and The University of Rome
Tor Vergata. These ongoing partnerships
enable Alliance Boots to contribute positively
to research and development, as well as
further develop peoples understanding
ofthe global health and beauty industry.
Healthy living
Across our businesses we can use our
expertise and position of trust with
customers to help people make positive
changes to their lives. We can partner with
others to improve the health and wellbeing
of our patients and we can support initiatives,
both national and international, to improve
peoples health around the world, wherever
we work.
Bridging the gap between
pharmacy and the home
SmartCare, an Alphega Pharmacy
service in The Netherlands, bridges
the gap between care in pharmacies
and in a customers home.
The Alphega network of pharmacies is
improving its customer care by providing
additional support via an online customer
portal, MyCare. Patients can conveniently
access services and through a My medicine
coach module they can receive personalised
information about their medicine and its
correct use, order medicine through a
repeatprescription service, ask a pharmacist
questions and join a forum for customers
todiscuss conditions and their medication.
Backing health responsibility
Boots UK is committed to making
a signicant contribution to public
health and encouraging healthy diets
and lifestyles. The business continues
to actively enforce pledges it made
as part of the Department of Healths
Public Healths Responsibility Deal
in 2011, to ensure a healthy culture
is promoted, both inside and outside
ofthe business.
Boots UK continues to implement a
programme to limit the salt content in food
products, including its Shapers and Delicious
ranges, which it has done since 2003.
Wherever possible, all Boots products are
developed in accordance with strict nutritional
criteria and maximum limits forsalt.
In October 2013, Boots Ireland became the
rst retailer in the Republic of Ireland to
achieve the Business Working Responsibly
Mark, following an evaluation of the business
achievements in sustainable and responsible
practices across its entire operation by the
National Standards Authority of Ireland.
Living more healthily with Almus
Our range of generic medicines,
Almus, was created with packaging
designed to clearly communicate
the essential information on the pack
and to differentiate products in the
dispensary, thereby reducing the
potential for dispensing errors and
supporting the safe use of medicines
by patients at home.
Since launching in the UK in 2003, the
Almusrange has broadened to include over
700products. Almus is distributed in the UK,
Spain and France and through our associates
in Portugal and Italy.
Our supply chain
Alliance Boots continues to work with
supplierstoemphasise the importance
of CSR.
In recent years, Boots UK has reviewed
suppliers in more than 40 countries to assess
their ethical and sustainability performance.
To date, Boots UK has conducted over 1,500
audits of suppliers, instigating follow-up
actions appropriate to managing each
situation.
Boots UK has continued to implement its
supplier verication programme. Details of
this are available on the Boots UK website,
boots.com/csr.
Boots UK own brand and exclusive product
suppliers have been audited against their
Code of Conduct for Ethical Trading and their
products are not sold without conrmation
that the supplier meets our rigorous standards.
Marketplace
As a Group whose purpose is to deliver products and services
that help people look and feel their best, it is second nature to
make the health and wellbeing of our own employees a priority.
We continue to support our people through training and
development, so that they can both grow professionally
andmeet the evolving challenges of our industry.
We look after our people, so that they can better look after our customers.
At 31 March 2014, the Group, including our associates and joint ventures,
employed over 108,000 people in more than 25 countries. Subsequent to
the year end, the Group acquired Farmacias Ahumada on 11 August 2014,
which comprises two main businesses in Mexico and Chile, with a
headcount of over 12,000 people.
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Workplace
In focus
Employees
By Division
as at 31 March 2014
2014*
thousand
2013
thousand
Health & Beauty 73 72
Pharmaceutical
Wholesale 26 27
& Corporate 2 2
101 101
The loyalty of our experienced,
knowledgeable and well trained workforce
isevidenced by the fact that over half of
these employees have worked for the Group,
or for predecessor companies, for more than
ve years.
Employee retention
as at 31 March 2014
2014*
thousand
2013
thousand
Working for us for >1 year 85% 85%
Working for us for >5 years 55% 54%
Since its introduction in 2011, Boots UK
hascontinued to develop its Higher
Apprenticeship Programme for people aged
18 and over. In 2014, the business enrolled a
further 25 people into roles across a number
of functions including human resources,
IT,nance, supply chain and commercial.
The Higher Apprenticeship Programme is
now complemented by a new scheme,
StepIn2 Boots, which provides 16 to 18 year
olds the opportunity to lay the foundations
for a career in IT, science, engineering or
retail. The programme provides young
people with a role and the opportunity
to continue their education, and furthers
Boots UKs support of Get Notts Working,
acampaign spearheaded by the regional
newspaper The Nottingham Post.
In addition, Boots UK runs a shinebright
campaign, as a way of communicating
to students, teachers, career advisors
and parents about opportunities on the
apprenticeship and work inspiration
programmes, and engaging proactively
inthe issue of youth unemployment.
To support the campaign, the business ran
events in November 2013 and March 2014
which approximately 250 people attended.
Topics covered CV and interview skills
workshops, as well as information on the
history of Boots, to engage with local
people about developing a career in
Boots UK. More than half of the students
who attended the March 2014 event said
they would be applying for one of the
Boots UK apprenticeship and work
experience programmes in the future.
In January 2014, the business launched
the Lets Inspire work experience and
apprenticeships eBook, which aims to
support other businesses in creating their
own exciting and engaging apprenticeship
and work experience programmes.
Inspiring
young talent
Across the Group, we are dedicated to ensuring that young
people are given access to valuable work experience, career
opportunities and training. In 2013/14, Boots UK actively
engaged with young talent in a number of ways, to help
inspire those both inside and outside of the business.
Workplace
2013/14 workplace targets
Objective: To reinforce that a robust
health and safety regime exists in
all parts of the Group supported with
appropriate training, education and
incident management practices.
Ourpriorities for 2013/14 were:
To reduce the number of greater than
three day lost time accidents within each
principal business.
In 2013/14, there were two employee
fatalities, one as a result of a trafc accident
in Turkey and the other in Egypt where
masonry fell from a building as our delivery
driver exited a customers pharmacy.
Therewere 486 employee related greater
than three day lost time accidents, a year
onyear decrease of 121. The majority of
these accidents related to trips or falls,
withimprovements in both Divisions.
We continue to place signicant focus on
health and safety issues. Marco Pagni, the
Director responsible for the leadership of
health and safety issues across the Group,
has overseen arange of initiatives designed
to improve safety at all levels and for
all employees.
To improve the health and wellbeing of
ourcolleagues across the Group, using
ourhealthcare service expertise.
The health and wellbeing of our colleagues
across the Group is of paramount
importance. During the year, Boots UK
launched the second edition of its
LetsMakeitHappen booklet, with ideas
onimproving health and wellbeing.
Inaddition, Alliance Healthcare Netherlands
launched its We Care About Your Health
programme, which included workshops
andrelated training.
Objective: To engage with our
employees through regular feedback
sessions and through local forms of
employee appraisal and development
plans. Our priority for 2013/14 was:
To introduce employee feedback
programmes, such as surveys, across the
major parts of the Group, and ensure that
results are reviewed by senior management
and appropriate responses developed.
Nine of our businesses have employee
feedback programmes in place.
Farmexpertin Romania and Boots Norge
introduced surveys during the year and
Boots UK introduced a revised colleague
feedback scheme, called Listen Up.
Employee health
We encourage our people to live the health
and wellbeing values that we stand for and
work with our people to help and support
initiatives which make positive changes to
our peoples lifestyles. We encourage each
of our businesses to promote and develop
a healthy living agenda among our people.
Employee absence rates due to illness
By Division
2014*
%
2013
%
Health & Beauty 2.7% 2.6%
Pharmaceutical Wholesale 3.1% 2.9%
&Corporate 4.2% 4.0%
2.9% 2.8%
The employee absence rate due to illness for
the Group for the year ended 31 March 2014
was 2.9% of the total number of contractual
hours, compared with 2.8% the previous year.
Ensuring a supportive
working environment
Keeping our people t and healthy
benets our businesses and is an
extension of our commitment to
helping people to look and feel their
best. A variety of schemes exist
across the Group to promote healthy
living and give our people the
information they need to make
informed decisions about lifestyle
anddiet.
Alliance Healthcare Netherlands launched
itsWe Care About Your Health programme
in early 2014, in collaboration with Dutch
organisation CZ health insurance. The
programme provides access to online courses
about healthy living, and features a series of
interactive workshops focussed on topics
including tness and lifestyle.
Boots Thailand ran an employee
engagement survey with a particular focus
on working environment. Feedback led to
a number ofimprovements, including new
ofce equipment.
To promote healthier journeys to work and
reduce environmental pollution, Boots UK
and Boots Opticians launched a Cycle to Work
scheme in summer 2013, with a second
enrolment phase in early 2014. More than
450 colleagues have already taken advantage
of the scheme, which enables them to
purchase a bike and safety equipment.
Boots UK also launched the second edition
ofits Lets Make it Happen booklet during
2013/14. Aimed at Boots UK colleagues,
thebooklet features guidance on improving
health and wellbeing, information on
smokingcessation and u services, and
includes offers on associated products
available in Boots stores.
In addition, as part of its commitment to
theBusiness in the Community Workwell
campaign, Boots UK participated in the
employee wellness and engagement survey
for the second time, with results showing
clear improvements year on year.
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Diversity
Alliance Boots is committed to equality of
opportunity in all its employment practices,
policies and procedures. Within the
framework of various laws we operate
under, we are committed to achieving and
maintaining a workforce which broadly
reects the local catchment area within
which we operate.
No employee or potential employee
therefore receives less favourable treatment
due to their age, disability, marital status,
religion, colour, ethnic origin, nationality,
religious belief, creed, gender, race or
sexual orientation.
Our approach to diversity aims to ensure
that differences are recognised, understood
and valued, to bring benet for our individual
employees, our businesses, our customers
and the communities in which we work.
It is critical to the success of the Group that
we continue to nurture the different and
diverse talents in our business and corporate
functions and we have designed our
employment policies to achieve this.
Wedoall that is practicable to meet our
responsibilities towards the employment and
training of disabled people. Where one of
our people becomes disabled, every effort
is made to provide continuity of employment
inthe same job, or a suitable alternative.
We are committed to promoting and
maintaining a culture of respect and equal
opportunity in which all decisions about
recruitment, hiring, compensation,
development and promotion are made
solely on the basis of a persons ability,
experience, behaviour, work performance
and demonstrated potential.
Our continuing challenge is to ensure that
diversity is appropriately supported in our
workforce and reected in our leadership.
Inour businesses, understanding different
cultures is a major advantage. We view
diversity as a key to our future. To understand
the needs of our customers and consumers,
we must reect this diversity inour
employees, our suppliers and in everything
we do. Offering a workplace where diversity
is valued helps us to build the top quality
workforce that is crucial to our success and by
enabling us to attract and retain great people
from a wide spectrum ofbackgrounds.
We communicate with our people through
awide variety of channels and formats,
reecting the diversity and geographical
spread of our Group. For more on how we
dothis, please see Engaging our people
inthis section of the report.
The Groups diversity policy statement is
published on the Companys website in the
corporate governance section.
Inspiring young people to work
Boots UKs Work Inspiration
programme, an initiative to help
bridge the gap between the classroom
and the world of work, has, for the
third year in a row, been recognised
by Business in the Community with
BigTick status an award for
signicant achievement in tackling
keysocial and environmental issues.
This follows the programme being
the national example of excellence
the previous year.
The programme was reaccredited in 2013 in
recognition of its success at providing young
people with work experience and motivation
for the future. A number of the programmes
placements are specically targeted at
disadvantaged young people within the care
system in Nottingham and 16 to 24 year olds
that are not in education, employment or
training. On nishing their 2013 placements,
96% of participants said the programme
was overall excellent or good and the same
proportion agreed that it was interesting
and informative.
Boots UK carefully assigns individuals their
chosen placement to try and ensure that they
obtain the maximum benet from the role.
Participants are exposed to real challenges
faced by a retail business to ensure their
experience is genuine and rewarding.
Women at work
Alliance Boots is committed to being an equal
opportunities employer. A range of initiatives
and activities, which include exible working
hours, ensure that women have the same
career opportunities as men. We want to
make it as easy as possible for the women
we have recruited and trained to continue
in our talent pool, so we are able to continue
to makethemost of their skills, knowledge
and experience.
Today, across the Group, women make
up68% of the workforce. The particularly
high number of female employees within
ourHealth & Beauty Division reects the
nature of our businesses and their principal
customer base.
Employees
By gender
as at March 2014*
2014
%
2013
%
Women 68% 68%
Men 32% 32%

671
727
Women employees
By Division
as at 31 March 2014*
80% 80%
38% 38%
45% 46%
Health &
Beauty
2014
2013
Pharmaceutical
Wholesale
Contact
Manufacturing
& Corporate
The percentage of women in the Group for
the year ended 31 March 2014 is 68%, the
same as in the prior year.
Workplace
Promoting skills and condence
to get women back to work
For the second year in a row,
BootsIreland partnered with local
charity Dress for Success to promote
the economic independence of
disadvantaged women and provide
invaluable advice and support for
women seeking to gain employment
for the rst time or get back into
the workplace.
Boots Ireland colleagues ran an interview and
CV writing workshop in February 2014 which
gave guidance for successful job interviews,
tips for getting noticed in a competitive job
market and practical advice on professional
business attire and make-up.
Supporting International
Womens Day
Highlighting the important role women
play in business and the community
was the focus for a series of events
atthe Boots UK support ofce in
Nottingham to celebrate International
Womens Day in March 2014.
Paying particular tribute to Florence Boot,
who was one of the key pioneers leading
the success of Boots in the 20th century,
colleagues took part in three days of activities
to celebrate the social, political and economic
achievement of women. This helped to draw
attention to issues of inequality which still
exist in societies across the world. Interactive
sessions with internal and external speakers
included tips on balancing career with family,
career progression and womens roles in the
digital revolution.
A key part of the programme was to launch
the Boots Big Sister project, designed to
bring together the collective wisdom of
women at Boots and share this with young
women about to enter their rst role in
the business. Throughout the three days,
colleagues shared advice for building
successful careers, which has been collected
into a booklet for new female employees
of Boots UK.
Training and
development
Alliance Boots is a dynamic international
group and achieving our ambitious goals
depends on the motivation and quality of our
employees at every level. Our employees are
a key asset and we recognise that our success
is a result of their loyalty, passion and drive.
We offer considerable scope for personal
and professional development through
training and international mobility. We also
provide opportunities for continuous learning
undertaken in the working environment,
such as learning another language, IT
or leadership training.
During the year, more than 2,200 employees
participated in our Group-wide assessment
and development programmes. Bespoke
training is also provided as a means of sharing
best practice and skills among peers, whether
internationally or locally.
In March 2014, we launched an innovative
learning and development programme to
support our corporate social responsibility
champions with training on CSR theory and
its practical implementation. This e-learning
programme is composed of eight modules
and uses case studies, debates, discussion
and real outcomes to ensure that each
CSR champion has a consistent knowledge
and understanding of the CSR agenda,
combined with the condence to manage
and collaborate with internal and external
stakeholders.
Recognising and nurturing potential
We pride ourselves on nurturing talent
and offering our people opportunities
to realise their potential, wherever
they work.
The Alliance Boots High Potential
development programme, launched in
the summer of 2012, continues to provide
structured, intensive training for our next
generation of business leaders. Following the
graduation of 23 participants in June 2013,
the second intake began their training in
autumn 2013.
Participants are selected for the 12 month
development programme following a
rigorous assessment process which targets
aset of key leadership competencies.
Boots UK has created an I Can at Boots
section on its intranet, which provides
recruitment and development resources
forsupport ofce colleagues. The section
includes clear guidance and information
regarding recruitment and introducing career
development programmes for our people.
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Engaging our people
Employee engagement is important to
our operations and the way we do business.
We believe that it is only through an engaged
workforce that wecan continue to offer the
best to our customers and stakeholders.
As of March 2014, nine of our businesses
have employee feedback programmes in
place. All of these surveys collect opinion
which informs action plans for future
development and highlight current important
issues and trends. During the year, both
Farmexpert in Romania and Boots Norge
inNorway introduced new surveys.
As a Group which has activities in many
European countries, we have a European
Works Council which brings together
representatives from across those
businesses within the European Economic
Area once a year. European Works Councils
are pan-European initiatives designed to
promote the exchange of information and
the development of dialogue between
senior management and team members
working forcompanies in European
Economic Area countries.
Listening to our
colleagues opinions
Boots UK introduced Listen Up in
2014, a feedback scheme made up of
three channels for its people to share
their views. Replacing the Boots UK
annual colleague survey,
ListenUpLive (ongoing),
ListenUpLatest (monthly) and
ListenUp Large (annual) provide
morefrequent opportunities for
opinion gathering.
In addition to Listen Up Large, a refreshed
and simplied annual survey for all colleagues,
Listen Up Live enables face-to-face
conversations between managers and
colleagues, with feedback via the Boots UK
National Forum (made up of representatives
from across Boots stores and support
functions) and Pharmacist Partnership Panel
representatives.
Listen Up Latest is a series of optional
monthly polls, giving colleagues a chance
to share their opinions, ask questions and,
in some cases, provide feedback on specic
people or business-related topics. Colleagues
can take part by phone, text or online.
Thepolls have quickly gained momentum,
with more than 4,500 colleagues signed up
by31 March 2014.

Workplace
Health and safety
We continue to promote a strong health
and safety culture throughout our Group.
We have a duty to employees, customers
andothers connected to our businesses
(forexample contractors and suppliers)
tomake sure our retail stores, distribution
centres and ofces are safe places to work.
We view standards of health and safety
required by law as only a minimum.
During 2013/14, across the Group there
were two employee fatalities, one as a result
of a trafc accident in Turkey and the other
in Egypt where masonry fell from a building
asour delivery driver exited a customers
pharmacy. There were 92 work related
major accidents representing a year on year
increase of 12, and 486 employee work
related greater than three day lost time
accidents, a year on year decrease of 121.
The majority of these accidents were
related to trips or falls, with improvements
in both Divisions.
We continuously seek to minimise the
number of workplace incidents across the
Group by:
Having operational safety policies for
eachbusiness and ensuring their effective
implementation through local
business teams
Ensuring health and safety is given the
same importance as all other business
matters and that it is not cash constrained
Seeking best practice throughout our
businesses by, amongst other things,
identifying workplace hazards, prioritising
risks, and in ensuring we have appropriate
control measures in place to minimise
those risks
Fostering a culture where health and safety
is always on the agenda
Continuously reviewing risk assessments
and accident statistics for businesses
across the Group to sustain a culture
of prevention, and
Ensuring that health and safety training is
provided for employees so that they can
full the health and safety responsibilities
and duties allocated to them. We believe
that excellent health and safety standards
contribute to the development of our
employees, our key resource, and lead
toexcellent business performance
We continue to place signicant focus
on health and safety across the Group.
Marco Pagni, the Director responsible
for the leadership of health and safety,
has overseen a range of initiatives
designed to improve safety at all levels
and for all employees.
In addition to health and safety refresher
courses, Alliance Healthcare UK used a
focussed internal communication campaign
throughout 2013/14 to raise awareness of
housekeeping standards and common causes
of workplace accidents.
Boots UK and Boots Opticians undertook an
anonymous health and safety survey of more
than 1,800 employees in 2013. Feedback is
helping to shape the next phase of the Boots
Retail Safety Culture Plan, which will provide
a framework for further health and safety
improvements across the business.
In addition, Boots UK developed a
primary authority arrangement for food
safety withRushcliffe Borough Council in
Nottinghamshire, following approval by
the Better Regulation Delivery Ofce.
The arrangement involves the Boots UK food
safety team working closely with the councils
environmental health experts on topics
including food storage, transport, handling
and chilling.
Health and safety information
Health and safety information relating
to accidents, pharmacy dispensing errors
and environmental incidents is collected
on a monthly basis across our businesses
using standardised criteria and denitions.
This information is reported to the Board
each month and reviewed at every
Board meeting.
Accidents for the year ended 31 March 2014
are disclosed below (including data from new
businesses from the date of acquisition).
Accidents
2014*
number
2013
number
Employees: number of work
related fatalities 2 0
Employees: work related
major accidents 92 80
greater than three day lost
time accidents 486 607
greater than three day lost
time accidents (rate per
100,000 hours worked) 0.3 0.4
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The following section sets out our
CSRobjectives and priorities for the
coming year, outlines our compliance
with the Global Reporting Initiative
(GRI) G3 Sustainability Reporting
Guidelines, includes an assurance
report from KPMG, our Alliance Boots
CSR Reporting Guidelines and also
provides details on all prosecutions
and environmental incidents
in 2013/14.
Our corporate social responsibility objectives
for 2014/15 are set out below. These Group
objectives provide a framework for each of
our principal businesses to establish their
own priorities and targets that reect their
local markets.
We have an overall objective to share
knowledge and experiences across the Group
via an active and engaged CSR network, with
a dedication to continuous improvement.
Inaddition we have an ongoing process to
promote the understanding of approved
corporate governance directives and policies
as well as the Code of Conduct and Business
Ethics, and ensure that the Directors and
employees of Alliance Boots continue to
act in accordance with these. We undertake
to incorporate acquired businesses into our
CSR framework and reporting processes on a
timely basis and appoint local CSR champions.
Community
Objective: To establish meaningful
multi-year partnerships with charitable
organisations and other stakeholders
that share our values of making a
difference and our commitment to
improving health and wellbeing in
the local communities that we serve.
Ourcurrent priorities are:
To raise over 5 million by 2016 to
establisha Biobank for colorectal cancer in
partnership with the European Organisation
for Research and Treatment of Cancer
(EORTC) Charitable Trust
For each principal business to establish
partnerships with charitable organisations
with supporting activities to improve the
health and wellbeing of people within its
local community
To make use of our signicant consumer
reach through our owned and franchise
pharmacies and the Alphega Pharmacy
network with local programmes to
deliver health related information and
advice to customers and patients
Objective: To support our employees
to volunteer their time to make a
difference in the communities that
weserve. Our current priority in this
area is:
To increase the number of our businesses
that have employee volunteering
programmes in place
2014/15 CSR objectives andpriorities
Performance
Environment
for like CO2 emissions. Our current
priorities are:
To achieve, on an organic basis
, a decrease
in usage of energy (our largest category
ofCO2 emissions), through increased
awareness and sharing of best practice
methods across the Group
To minimise the level of non-essential
business travel through increased
usageofthe Group-wide
videoconferencing system
for like total waste levels and increase
the proportion of waste that is recycled.
Our current priority in this area is:
For each principal business within the
Group to achieve a waste recycled level
of 50% or higher, where local facilities exist
to enable recycling
Marketplace
Objective: To evaluate and work
withthe Groups major suppliers
to establish that they have suitable
processes in place to comply with
thestandards set out in our Code
ofConduct and Business Ethics.
Ourcurrent priority in this area is:
To create a stakeholder panel of critical
friends to challenge our processes and
approach to the development of new
products and the use of scarce resources
and materials
Objective: To ensure that an awareness
of, and focus on, sustainability is
embedded within ouractivities across
the Group. Ourcurrent priorities in
this area are:
To build a product sustainability strategy
that takes account of all the elements
of the product life cycle
To establish programmes to meet the
commitments that have been given to
the Consumer Goods Forum on the use
of refrigerants and deforestation
Workplace
Objective: To reinforce a robust health
and safety regime in all parts of the
Group supported with appropriate
training, education and incident
management practices. Our current
priorities in this area are:
To reduce the number of greater than
three day lost time accidents within each
principal business
To improve the health and wellbeing of
ourcolleagues across the Group, using
our healthcare service expertise
Objective: To engage with our
employees through regular feedback
sessions and through local forms of
employee appraisal and development
plans. Our current priority in this
areais:
To introduce employee feedback
programmes, such as surveys, across major
parts of the Group and ensure that the
results are reviewed by senior management
and appropriate responses developed
Organic basis excludes the impact of acquisitions.

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Independent Assurance Report
toAlliance Boots GmbH
KPMG LLP (KPMG or we) were engaged
by Alliance Boots GmbH (Alliance Boots) to
undertake a limited assurance engagement
over selected aspects of the Alliance Boots
Corporate Social Responsibility Report
(Alliance Boots report as a whole is referred
tobelow as the Report) for the reporting
year ended 31 March 2014.
We have not performed any procedures with
respect to other information included in the
Report and, therefore, no conclusion on the
Report as a whole is expressed. Assurance
standards require that we state the reporting
criteria we used to form our judgements.
Forthe self-declared GRI application level
weused the GRI G3 Sustainability Reporting
Guidelines and application level requirements.
For the selected CSR performance data we
used the relevant contents of Alliance Boots
reporting guidelines as set out in the
Alliance Boots CSR Reporting guidelines which
are available on the Alliance Boots website.
Responsibilities
The Directors of Alliance Boots are
responsible for the proper preparation and
presentation of a Report that is fairly stated
in accordance with the applicable criteria and
for the content and statements contained
therein. This responsibility includes designing,
implementing and maintaining internal
control relevant to the preparation and
presentation of a Report that is free from
material misstatement, whether due to fraud
or error. It also includes selecting and/or
developing the reporting guidelines to be
used as the criteria against which to evaluate
the elements of the Report that are within
scope and maintaining appropriate records
from which the reported information
isderived.
Our responsibility is to examine the Report
prepared by Alliance Boots and to report in
the form of an independent limited assurance
conclusion in relation to the above scope
based on the procedures performed and the
evidence obtained.
This assurance report is made solely to
Alliance Boots in accordance with the terms
of our engagement, which include agreed
arrangements for disclosure. Our work has
been undertaken so that we might state to
Alliance Boots those matters we have been
engaged to state in this assurance report,
andto facilitate the presentation by
Alliance Boots of matters relating to the
Alliance Boots Corporate Social Responsibility
Report and for no other purpose. Our
assurance report should not be regarded as
suitable to be used or relied on by any party
wishing to acquire rights against us other than
Alliance Boots for any purpose or in any
context. Any party other than Alliance Boots
who obtains access to our assurance report
or a copy thereof and chooses to rely on our
assurance report (or any part thereof) will
do so at its own risk. To the fullest extent
permitted by law, we accept or assume no
responsibility and deny any liability to any
party other than Alliance Boots for our work,
for this independent limited assurance report,
or for the conclusions we have reached.
Assurance standards applied
Our assurance engagement has been
conducted in accordance with two
International Standards issued by the
International Auditing and Assurance
Standards Board. The component of our
engagement relating to Greenhouse Gas data
has been conducted in accordance with the
International Standard on Assurance
Engagements 3410 (ISAE 3410): Assurance
Engagements on Greenhouse Gas
Statements. Our assurance engagement
onall other elements of the scope has
beenconducted in accordance with the
International Standard on Assurance
Engagements 3000 (ISAE 3000): Assurance
Engagements Other Than Audits or Reviews
of Historical Financial Information. Both these
Standards require that we comply with the
Code of Ethics for Professional Accountants
issued by the International Ethics Standards
Board for Accountants, which sets out ethical
requirements, including independence and
other requirements founded on fundamental
principles of integrity, objectivity, professional
competence and due care, condentiality
and professional behaviour, and plan and
perform our procedures to enable us to
express a limited assurance conclusion
in relation to the above scope.
A limited assurance engagement in
accordance with ISAE 3410 or ISAE 3000
involves assessing the risks of material
misstatement of the elements of the Report
that are within scope, whether due to fraud
or error, responding to the assessed risks as
necessary in the circumstances of the
engagement and evaluating the overall
presentation of those elements. The nature,
timing and extent of procedures selected
depend on our understanding of the Report
and other engagement circumstances, and
our consideration of areas where material
misstatements of the elements of the Report
that are in scope are likely to arise.
In developing our understanding of the
Report, we developed an understanding
of internal control over the preparation and
presentation of the Report in order to design
assurance procedures that are appropriate in
the circumstances, but not for the purposes
of expressing a conclusion as to the
effectiveness of Alliance Boots internal
control over the preparation and presentation
of the Report.
KPMG assurance report
Scope of our assurance engagement
Assurance scope Level of assurance Reporting criteria
1. Selected Corporate Social
Responsibility (CSR) performance
data for the year ended 31 March
2014 marked with the symbol *
inthe Report
Limited assurance Alliance Boots reporting
guidelines for the selected
performance data as set out
in the Alliance Boots CSR
Reporting Guidelines
2. Alliance Boots self-declared
Global Reporting Initiative (GRI)
application level for the year
ended 31 March 2014
Limited assurance GRIs G3 Sustainability
Reporting Guidelines and
application level requirements
Performance
Limited assurance is less than absolute
assurance and reasonable assurance.
Alimited assurance engagement is
substantially less in scope than a reasonable
assurance engagement in relation to both
the risk assessment procedures, including an
understanding of internal control, and the
evidence-gathering procedures performed
in response to the assessed risks, which vary in
nature from and are substantially less in scope
than for a reasonable assurance engagement.
As a result, the level of assurance obtained
in a limited assurance engagement is
substantially lower than the assurance that
would have been obtained had we performed
a reasonable assurance engagement.
We conducted our engagement with a
multidisciplinary qualied and experienced
team in non-nancial assurance. The team
included Chartered Accountants and
specialist professionals in providing assurance
over non-nancial information and with many
years experience in similar engagements.
Inherent limitations
Non-nancial performance information is
subject to more inherent limitations than
nancial information, given the characteristics
of the subject matter and the methods used
for determining such information. The absence
of a signicant body of established practice
on which to draw allows for the selection of
different but acceptable measurement
techniques which can result in materially
different measurements and can impact
accuracy and comparability. Greenhouse
gas quantication is unavoidably subject to
inherent uncertainty as a result of both
scientic and estimation uncertainty and for
other non-nancial performance information
the precision of different measurement
techniques may also vary. Furthermore, the
nature and methods used to determine such
information, as well as the measurement
criteria and the precision thereof, may change
over time. It is important to read the selected
corporate responsibility information contained
within the Report as set out in the assurance
scope in the context of Alliance Boots
reporting guidelines.
Work performed to reach conclusions
We planned and performed our work to
obtain all the evidence, information and
explanations that we considered necessary
toobtain a meaningful level of assurance in
relation to the above scope. The procedures
we performed, which are set out in more
detail below, were based on our professional
judgement and included, as appropriate,
inquiries, observation of processes
performed, inspection of documents,
analytical procedures, evaluating the
appropriateness of quantication methods
and reporting policies and agreement or
reconciliation with underlying records.
Webelieve that the procedures we have
performed and the evidence we have
obtained is sufcient and appropriate
toprovide a basis for our limited
assuranceconclusion.
Assurance Scope 1: Limited assurance
over selected Corporate Social
data for the year ended 31 March 2014
marked with the symbol * in the Report
With regard to the selected performance
data marked with the symbol * in the Report,
our procedures were performed at three sites
and included a desktop review of the group
CSR data collection, aggregation and
reporting processes. Specically, we:
Conducted interviews with management
and other personnel at Alliance Boots,
to understand the systems and controls
in place during the year ended
31 March 2014.
Evaluated the design, existence and
operation of the systems and methods
used to collect, process and aggregate
the selected performance data as well as
testing the reliability of underlying data
atarisk based selection of the following
principal businesses:
Boots UK;
Alliance Healthcare Deutschland; and
BCM UK operations.
We also performed desktop reviews
on the following principal businesses:
Alliance Healthcare Czech Republic; and
BCM French operations.
The work performed represented:
79% of the selected Community data;
64% to 74% of the selected
Environment data;
54% to 68% of the selected Workplace
data; and
100% of the selected Environmental
Incidents data.
Reviewed the presentation of the selected
CSR performance data in the Report to
ensure consistency with our ndings.
over the Alliance Boots self-declared
application level for the year ended
31March 2014
Checking in the Report the description
of the requirements for the achievement
of GRI application level B+ under the
GRI index against the G3 Sustainability
Reporting Guidelines; and
Reviewed the self-declaration by
Alliance Boots of GRI application level B+
including their description of the extent
of reporting.
Conclusions
The following conclusions are based on
the work performed and evidence obtained
and the scope of our assurance engagement
described above.
over selected Corporate Social
datafor the year ended 31 March
2014marked with the symbol *
in theReport
Based upon our work described in this report,
nothing has come to our attention that
causes us to believe that the selected CSR
performance data for the year ended
31 March 2014 marked with the symbol *
inthe Report, is not, in all material respects,
fairly stated in accordance with Alliance Boots
reporting guidelines.
over the Alliance Boots self-declared
application level forthe year ended
31March 2014
Based upon our work described in this report,
nothing has come to our attention that
causes us to believe that the self-declaration
by Alliance Boots of GRI application level B+
for the year ended 31 March 2014, is not,
inallmaterial respects, fairly stated in
accordance with the G3 Sustainability
Reporting Guidelines.
Richard Pinckard for and on behalf
ofKPMG LLP
Chartered Accountants
London
19 September 2014
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Environmental incidents
for year ended 31 March 2014*
Health & Beauty
Pharmaceutical
Wholesale
&Corporate
High impact
Spills/pollution incidents which are not contained within the outer
boundary oftheCompany premises
1
Medium impact
Spills/pollution incidents which are not contained within the immediate
area butdonotgo over the outer boundary

Low impact
Spills/pollution incidents which are conned to the immediate area

Prosecutions/nes
Spills/pollution incidents which resulted in a prosecution or ne during
the nancial year (even if the incident occurred in previous years)

Prosecutions and environmental incidents
GRI compliance
andindex
The contents of the Corporate Social Responsibility Report 2013/14
incorporate the Global Reporting Initiative (GRI) G3 Sustainability
Reporting Guidelines and cover the substantive issues relevant to
our Group. We have self-declared a GRI application level B+, which
has been covered under KPMGs limited scope assurance.
Our GRI disclosure assessment is available to view in full within the
online version of this report at:
allianceboots.com/corporatesocialresponsibilityreport2013-14

Reporting guidelines
Reporting guidelines are available on the Group website, within
the online version of this report.
In total there was one environmental incident recorded during
2013/14 (high impact) at our Contract Manufacturing business
in the UK. The incident related to foaming in an external drainage
system caused by excessive waste disposal. No external
complaints were received in relation to this matter.
Performance
Alliance Boots GmbH
Copyright and trade mark notices
All rights reserved
Copyright 2014 Alliance UniChem IP Limited
BCM, BOOTS, BOOTS CHARITABLE TRUST, BOOTS
HEARINGCARE, BOOTS IRELAND, BOOTS LABORATORIES,
BOOTS NORGE, BOOTS OPTICIANS, BOOTS
PHARMACEUTICALS, BOOTS THAILAND, BOOTS UK,
BOOTS.COM, BOOTSWEBMD, BOOTSWEBMD.COM,
BOTANICS, DELICIOUS, No7, SHAPERS and SOLTAN
are trade marks owned by The Boots Company plc.
ALLIANCE HEALTHCARE CZECH REPUBLIC, ALLIANCE
HEALTHCARE DEUTSCHLAND, ALLIANCE HEALTHCARE
ESPAA, ALLIANCE HEALTHCARE FRANCE, ALLIANCE
HEALTHCARE ITALIA, ALLIANCE HEALTHCARE
NETHERLANDS, ALLIANCE HEALTHCARE NORGE,
ALLIANCE HEALTHCARE PORTUGAL, ALLIANCE
HEALTHCARE RUSSIA, ALLIANCE HEALTHCARE UK,
ALLIANCE UNICHEM, ALLOGA FRANCE, ALMUS,
ALVITA, FARMEXPERT and HEDEF ALLIANCE are trade
marks owned by Alliance Unichem IP Limited.
ALPHEGA PHARMACY and ALPHEGA PHARMACY IN
FRANCE are trade marks owned by Alliance Healthcare
France Socit Anonyme (AHF).
VIVESCO is a trade mark owned by Alliance Healthcare
Deutschland Gmbh.
FARMACIAS AHUMADA is a trade mark owned by
Farmacias Ahumada S.A.
All content, artwork, trade marks and associated imagery
are trade marks and/or copyright material of their
respective owners.
This report is printed on Amadeus 100% Offset which
is FSC certied and contains 100% recycled waste.
The paper has been independently certied according
to the rules of the Forest Stewardship Council (FSC).
The inks used are all vegetable oil based.
Design and produced by
Radley Yeldar
Registered ofce:
Alliance Boots GmbH
Untermattweg 8
CH-3027 Bern
Switzerland
Tel: +41 58 852 8299
Contact:
csr@allianceboots.com
Website:
allianceboots.com
Registered ofce:
Alliance Boots GmbH
Untermattweg 8
CH-3027 Bern
Switzerland

Contact:
csr@allianceboots.com
Website:
www.allianceboots.com
For more information
allianceboots.com

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Building a sustainable

group for a better world

Energy 251.6 263.0 -4.3% -6.1%

Health & Beauty 238.1 250.7 -5.0% -5.0%

Health & Beauty 187.4 201.1 -6.8% -6.8%

Organic basis excludes the impact of acquisitions made in the

To account for material changes in conversion factors provided

Health & Beauty 39.0 38.4 +1.6% +1.6%

, CO2 emissions from product

Organic basis excludes the impact

Road 19.0 18.9 +0.5% +0.5%

Health & Beauty 11.6 11.2 +3.6% +3.6%

CO2 emissions from business travel

Organic basis excludes the impact of acquisitions made in the

To account for material changes in conversion factors provided

, total waste decreased

Health & Beauty 41.3 42.8 -3.5% -3.5%

Organic basis excludes the impact of acquisitions made

Organic basis excludes the impact of acquisitions.

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