Rite Aid Releases Fourth Annual Environmental, Social and Governance Report

Company Provides Progress Updates and Standards for Environmental Responsibility, DEI, Community Impact and More

Rite Aid (NYSE: RAD) today published its fourth annual Environmental, Social and Governance (ESG) Report, detailing the company’s strategy and progress against goals over the past year. This year’s report addresses the four ESG pillars introduced in the company’s 2021 report: Thriving Planet, Thriving Business, Thriving Workplace and Thriving Community.

“As a purpose-driven healthcare organization, we recognize the need to do our part in minimizing our environmental footprint and making a positive impact through our associates in the communities we serve,” said Paul Gilbert, Chief Legal Officer overseeing ESG efforts at Rite Aid. “Our advancement thus far is exciting, and we look forward to further progress in the months and years ahead.”

This year’s report furthers Rite Aid’s commitment to transparency and accountability on important topics and acts as a benchmark to help inform future ESG priorities and goals.

Thriving Planet

Rite Aid advanced its objective of reducing the company’s environmental impact by lessening energy demand, transitioning to lower carbon energy sources, minimizing waste and improving fleet efficiency. Specifically:

• Rite Aid expanded its partnership with 3 Phases Renewables to purchase 50% renewable power at select stores in Southern California to include an additional 150 stores, the Thrifty ice cream plant and a distribution center.
• By the end of 2021, 42% of Rite Aid stores had transitioned to LED lighting. The company is on track to complete a goal of installed LED lighting at 100% of its stores by 2035.
• Throughout 2021, Rite Aid diverted more than 76,000 tons of recyclable material from landfills through its recycling programs.

Thriving Business

Rite Aid is working to embed sustainability in every level of its value chain, improving supply chain transparency and engagement, formalizing environmental and social sourcing guidelines and policies and enhancing consumer transparency around sustainable products and sourcing. To support these goals:

• Rite Aid utilizes the services of independent, third-party auditors to evaluate supplier partners’ compliance in both security and social accountability. In 2021, Rite Aid audited 51 factories, and while the vast majority received an overall acceptable rating, Rite Aid ended relationships with seven suppliers that did not correct deficiencies identified in the audit.
• Rite Aid held its first supplier sustainability summit, meeting with more than 75 different suppliers showcasing products that support whole health and clean ingredients across categories such as food and beverage, health and beauty care and general merchandise.
• Rite Aid accelerated plans to source 100% cage-free eggs in all of locations by the end of 2022. In 2016, Rite Aid committed to providing 100% cage-free eggs to stores by 2025. The new goal represents the company’s commitment to responsible sourcing and advancing sustainable and ethical practices.

Thriving Workplace

To encourage a thriving workplace and optimize associate experience, opportunity and well-being across the organization, Rite Aid is implementing a transformative DEI strategy and recruitment and retention practices to drive positive business outcomes.

• In 2021, the company introduced the DEI Talent Network, an employee resource group aimed at promoting diversity and health and wellness equity, improving the workplace and community and providing professional development opportunities. Rite Aid also developed a new DEI strategy roadmap, which includes the integration of DEI into human resource policies as well as business processes.
• Also in 2021, Rite Aid announced its decision to be a remote-first employer, allowing more flexibility for associates to balance work and family priorities. The policy underscores Rite Aid’s commitment to modernize the workplace and allows the company to recruit the best talent regardless of location.

Thriving Community

Rite Aid continues to improve health equity, outcomes and access to care in the communities it serves.

• Over the past year, Rite Aid has improved access to COVID-19 vaccines in neighborhoods across the country, partnering with organizations such as the Newark Equitable Vaccine Initiative and the NAACP and the Philadelphia Council AFL-CIO to set up clinics for vulnerable or underserved populations. To date, Rite Aid has administered over 17 million COVID-19 vaccines.
• Also in 2021, Rite Aid pharmacists received training to become certified integrative pharmacy specialists, and now are able to counsel on both traditional and alternative remedies, ensuring customers receive the best whole-health consultations.
• Rite Aid continues to help combat the opioid crisis in the United States. Through the DEA National Take Back Days, more than 792 tons of unused medications were removed from homes and more than 80,000 pounds removed from Rite Aid in-store medication disposal kiosks. Rite Aid distributed 412,354 Dispose Rx packets free of charge to assist opioid patients in quickly and safely disposing unused excess opioids.

New this year, Rite Aid proclaimed its support of eight of the 17 United Nations Sustainable Development Goals (UN SDGs), which are designed to facilitate significant global development by 2030. The report maps Rite Aid ESG achievements and priorities to the eight goals, including Zero Hunger, Good Health and Wellbeing, Affordable and Clean Energy, Gender Equality, Decent Work and Economic Growth, Reduced Inequalities, Responsible Consumption and Production, and Peace, Justice and Strong Institutions.

About Rite Aid Corporation

Rite Aid is a full-service pharmacy that improves health outcomes. Rite Aid is defining the modern pharmacy by meeting customer needs with a wide range of vehicles that offer convenience, including retail and delivery pharmacy, as well as services offered through our wholly owned subsidiaries, Elixir, Bartell Drugs and Health Dialog. Elixir, Rite Aid’s pharmacy benefits and services company, consists of accredited mail and specialty pharmacies, prescription discount programs and an industry leading adjudication platform to offer superior member experience and cost savings. Health Dialog provides healthcare coaching and disease management services via live online and phone health services. Regional chain Bartell Drugs has supported the health and wellness needs in the Seattle area for more than 130 years. Rite Aid employs more than 6,400 pharmacists and operates more than 2,350 retail pharmacy locations across 17 states. For more information, visit www.riteaid.com.

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