Raia Drogasil 2020 Annual and sustainability report

An overview of our processes, impacts, relations and commitments

The year at a glance

Manufactured Capital >>

240 stores opened

A total of 2,303 stores in 23 Brazilian states + Federal District

Opened a new, 9,200 square-meter distribution center in Gravataí (RS)

Intellectual Capital >>

Launched Stix reaching a universe of more than 56 million RD, Pão de Açúcar and Extra customers

3x faster private label product launch rate

4 million customers onboarded to digital channels

First startup investment within RD Ventures — a compounding pharmacy marketplace

Financial capital >>

R$ 21.2 billion in revenue

R$ 673.1 million in CAPEX 2020

R$ 601.0 million in net income
up 2.4% on 2019

7.5% of variable compensation for senior leadership linked to environmental, social and governance performance

Human capital >>

103.93 hours on average of training per employee

14,556 new hires in the year

5,000 employees trained on COVID-19 in one month

22,977 free telemedicine consultations provided to our employees by Albert Einstein Hospital as part of our Employee Care program

Emergency Fund for employees: R$ 437,000 donated via the fund to support employees affected by COVID-19

Social capital >>

R$ 25 million donated to support referral hospitals in the COVID-19 response as part of our All Care Matters fund

200+ suppliers assessed on ESG criteria and 7 audited on-site by a specialized independent firm

0.9 million rapid COVID-19 tests administered at Droga Raia and Drogasil stores (2020)

Natural capital >>

4+ metric tons of batteries collected and sent for recycling

1,800+ stores in 23 states and more than 200 cities equipped with drop-off stations for expired or unused medicines

202 stores powered by distributed generation systems

63+ metric tons of expired or unused medicines collected and compliantly disposed of

Our business

Leadership in health and well-being

We are a publicly traded health and wellness company that is today the market leader in the Brazilian drug retail sector both by number of stores and by revenue.

We are present in 24 states and 409 municipalities across the country, accounting for 57% of Brazil’s population. RD relies on the combined experience of our founding companies, the strength and engagement of our human capital, and our clarity of purpose as differentiators that bolster our business model.

We are proud of the impact we can have on people’s lives and are working to build a comprehensive platform of health solutions that can drive positive change in society.

Purpose

Take close care of people’s health and well-being at each stage in life.

Belief

People taking care of people.

Values

Efficiency

Getting things done well to deliver outstanding results.

Ethics

Doing the right thing, openly and honestly, whatever the situation.

Innovation

Innovating today to be better tomorrow.

Trust-based relations

Taking a genuine interest in people, building relations based on trust.

Long-term vision

Acting today to create future value for us and broader society.

Our aspiration

Reconciling business with sustainability

In recent years, we have accelerated efforts to embed sustainability into executive and employee routines, and to support the UN Global Compact Network Brazil and the Sustainable Development Goals (SDGs).

As part of this journey, in 2021 we will launch our Sustainability Strategy 2030, which articulates our commitments to growing the business in harmony with the challenges facing humanity; to working in partnership with our value chain; and to promoting health and wellness among employees, partners and communities.

Our sustainability aspiration for 2030:

To be the biggest contributor to a healthy society in Brazil

Aligned with the future of the business:

Offering Brazil’s first integrative health platform

Our focus

People, business and planet in harmony

We have translated our strategy into three pillars that articulate our efforts around sustainability. Through these efforts, we are encouraging healthy behaviors and mindsets among our employees, customers and communities; addressing the environmental impacts from our own and partners’ operations; and strengthening our business through a model that creates shared value.

Healthier People

Our focus: promoting integrative health

Action areas:

Healthier employees
Healthier customers
Healthier community

Healthier Planet

Our focus: emissions, energy and waste

Action areas:

RD operations
Value chain

Healthier Business

Our focus: education, employment, diversity and inclusion

Action areas:

Empowering and developing employees and suppliers
Empowering communities

Our impact

Success stories and challenges that defined 2020

We opened 240 stores amid the pandemic, entered a new state (Rondônia), and ended the year with 2,303 stores (RD + 4Bio).

We also expanded our presence on digital channels, which now account for 7% of our annual revenue, and enhanced our in-store convenience and private-label offerings.

Safe operations

In our efforts to prepare our stores for such an unprecedented year, we trained 5,000 employees in a single month. We expanded our offering of rapid COVID-19 tests in record time, as well as our stocks of alcohol gel and masks. And we implemented stringent prevention protocols to protect the health of our employees .

Integrative health for our employees

Integrative health goes beyond our services to customers. Within RD, we expanded our Employee Care program to include the physical, emotional, spiritual, social and environmental dimensions of wellness . We conducted a deep dive into our employees’ health journey; we offered primary care, counseling and mental health programs; and more than 22,300 employees joined our My Best Version program in just five months .

Healthier communities

To support our communities in the pandemic response, RD created a R$ 25 million fund that we donated to 51 hospitals outside major cities . Beyond providing immediate relief to communities at such a critical time, the initiative aims to leave a post-pandemic legacy in healthcare. Click here to learn more.

Enhancing suppliers’ social and environmental performance

We made further progress in our supplier engagement program. In 2020, we audited seven RD Private Labels suppliers and sent a sustainability self-assessment form to more than 200 companies , with a 66% response rate.

Eco-efficiency efforts

In 2020, we developed and published our Environmental and Occupational Health & Safety Policy (read it here); we reached a milestone of 202 stores powered by distributed generation systems; we offset 50% of our total emissions in 2019; and the number of stores covered by our drug disposal program rose to 1,823.