At Humana, we recognize that our suppliers are an extension of our company. We are committed to collaborating with a diverse supplier base and all of our suppliers to improve our collective environmental sustainability efforts.
Supplier Diversity at Humana prioritizes obtaining a diverse supplier base that’s a reflection of the customers, associates and communities we serve. In 2016, Humana partnered with more than 690 approved suppliers, such as Minority-owned Business Enterprises, Woman-owned Business Enterprises, Small Business Enterprises, Disability-owned Business Enterprises, and Lesbian, Gay, Bisexual and Transgender-owned Business Enterprises. Those partnerships led Humana to spend more than 15 percent of our overall supplier spend with diverse suppliers, exceeding our 2016 goal.
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Humana’s diverse suppliers include the following minorities: African-American, Asian-Indian American, Asian-Pacific American, Hispanic American, Native American and individuals found to be disadvantaged by Small Business Administration guidelines, both socially and economically. Humana has continued to stay engaged with key national councils advocating supplier diversity and inclusion through conference participation and council committee involvement. These engagements positioned Humana to be able to support contract compliance, identify new and valuable talent and create supplier partnerships.
In 2016, we surpassed our supplier diversity spend goal of 12 percent, and that spend was divided among three main classification groups of diverse businesses that include other diversity groups, such as LGBT, Veteran and Service Disabled.
Sustainable procurement is another area of focus for our procurement team. We’ve made a concerted effort to increase the amount of sustainable promotional goods and office supplies purchased. During regularly scheduled business reviews with a pool of our suppliers with which we spend the most, we ask them to share progress made on incorporation of sustainable products into their offering – further emphasizing our commitment to building a sustainable supply chain. Their level of commitment to sustainability influences our procurement decisions because we want to offer our associates a wide range of sustainable options from which they can choose.
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We’ve worked hard to further integrate sustainability into our supply chain through a number of efforts. One example includes implementing a pallet recycling program at our Ohio pharmacy location in late 2016 (we’ve been recycling pallets at our Arizona pharmacy location since 2015) with the hope of reducing the amount of waste going into landfills from that location by 50 percent. In its first four months, the program yielded the following results:
Another example of a supplier sustainability partnership is our work with Sodexo. We have teamed up in our on-site eateries to divert waste by donating excess foods and composting others to minimize our environmental footprint.
In 2016, we released our second Supplier Self-Assessment Sustainability Scorecard. The scorecard helps us understand the environmental impact of our vendors' work for Humana, and we aim to expand this initiative by engaging even more suppliers. We engaged 20 critical suppliers and garnered an 80 percent response rate to the scorecard exercise in 2016.