Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environment
• Workplace
• Products
• Customers
• Community

Environmental Achievements

• Partnered with MIT to measure company's carbon footprint for the first time.
• Implemented energy management initiatives resulting in cost savings.

Social Achievements

• Introduced ExtraCare® Health card for PBM clients, offering savings on CVS Brand products.
• Launched CVS/pharmacy® Health Savings Pass for uninsured patients.
• Launched Proactive Pharmacy Care™ program to improve patient engagement and lower costs.
• Expanded MinuteClinic to approximately 500 clinics in 27 states.
• Exceeded goal of delivering one million flu shots during the 2008 flu season.
• Recognized for customer satisfaction excellence by J.D. Power and Associates.
• Conducted employee engagement survey with high levels of employee satisfaction and engagement.
• Implemented various workforce initiatives, including CVS Regional Learning Centers, Welfare-to-Work, Pathways to Pharmacy, and Job Corps Pharmacy Technician Training Programs.
• Contributed $39 million in cash and in-kind contributions to communities.
• Supported children with disabilities through CVS Caremark All Kids Can™ program.

Governance Achievements

• Board of Directors adopted Corporate Governance Guidelines meeting or exceeding NYSE listing standards.
• 70-80% of executive compensation based on performance; 90% for CEO.
• Instituted a “claw back” provision for financial fraud or misconduct.
• Maintained a formalized compliance program, including a dedicated ethics hotline.

Climate Goals & Targets

Environmental Challenges

• Increased emissions (1.6%) despite a 4.4% decrease in emissions per square foot due to increased square footage (6.3%).
• Proper consumer disposal of unused prescription drugs.
• Managing product recalls and returns.

Mitigation Strategies

• Implementing green solutions to lessen environmental impact.
• Working with peers to develop an industry-wide solution for prescription drug disposal.
• Having an immediate response plan and process in place for managing product integrity-related recalls.

Supply Chain Management

Supplier Audits: Random factory audits of overseas suppliers

Responsible Procurement

• Vendor Quality Assurance Policy
• Supplier Ethics Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

• Earth Essentials eco-friendly product line

Awards & Recognition

• National Influenza Vaccine Summit Immunization Excellence Award
• eHealthcare Leadership Award
• U.S. Chamber of Commerce Business Civic Leadership Center (BCLC) Finalist Corporate Leadership Award
• Pioneer Award for Leadership in Employer-Assisted Housing
• State of Ohio Governor’s Office of Workforce Investment Board’s Employer of the Year Award
• African American Contractors Association Education & Training Award

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Customer and Patient Care
• Workplace and Colleagues
• Philanthropy
• Environment

Environmental Achievements

• Reduced absolute GHG emissions by 8,000 tonnes compared to 2009 (after recalculation to include refrigerants).
• Achieved significant energy savings through lighting upgrades at five major distribution facilities and a new distribution center.
• Reduced water usage related to sprinkler and irrigation systems by nearly 26% compared to 2009.
• Recycled 45,000 tons of cardboard and 178 tons of plastic stretch film from stores and distribution centers.

Social Achievements

• Launched PCI Connect, a patient management system that doubled opportunities for first-time prescription counseling and increased interventions by 30%.
• Provided free flu shots to uninsured patients through a partnership with Direct Relief USA.
• Expanded MinuteClinic by 100 clinics annually for five years.
• Launched ExtraCare Advantage for Diabetes program, enrolling over 1.5 million members.
• Launched ExtraCare Beauty Club™, enrolling over seven million members.
• WellRewards programs supported employees in smoking cessation, improved screenings, and healthier lifestyles; over 1,000 colleagues enrolled in the Healthy and Smokefree program, with 43% quitting smoking.

Governance Achievements

• Adopted updated Corporate Governance Guidelines meeting or exceeding NYSE listing standards.
• Implemented a comprehensive Compliance and Integrity Program, including a Code of Conduct, ethics hotline, and periodic risk assessments.
• Enhanced information governance procedures, including the designation of a Chief Privacy Officer.
• Implemented a Supplier Ethics Policy with third-party auditing of factories outside the US.

Climate Goals & Targets

Environmental Challenges

• Increased absolute carbon emissions in 2009 due to the acquisition of Longs Drugs stores.
• Maintaining pricing accuracy across numerous products and locations.
• Ensuring 100% compliance with product expiration date removal policies.
• Medication non-adherence among patients.

Mitigation Strategies

• Expanded carbon footprint measurement to include refrigerants and set a 15% carbon intensity reduction goal by 2018.
• Implemented weekly and monthly inspections to ensure pricing accuracy.
• Conducted weekly and monthly internal audits and monthly third-party audits of compliance with dated merchandise policies.
• Undertook significant health policy research to understand medication non-adherence and developed programs like Maintenance Choice® and Pharmacy Advisor™ to improve adherence.

Supply Chain Management

Supplier Audits: Third-party audits of factories outside the US.

Responsible Procurement

• Supplier Ethics Policy requiring compliance with ethical standards, product quality and safety, child labor restrictions, fair wages, non-discrimination, and legal and ethical business conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G3 (Level C)

Certifications: URAC accreditations for Mail Service Pharmacy, Specialty Pharmacy, Accordant Health Services case management, Pharmacy Benefit Management, and Drug Therapy Management.

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Earth Essentials product line (paper products, cleaning products); natural beauty products meeting EU standards.

Awards & Recognition

• Forbes Magazine’s 2011 Most Reputable Companies list; FORTUNE Magazine’s World’s Most Admired Companies; PBMI’s 2011 Rx Benefit Innovation Award (Pharmacy Advisor™ program); Chicago Minority Supplier Development Council Minority Business Enterprise Input Committee Chairman’s Special Recognition Award and Outstanding Buyers Award; NCOA’s National Institute of Senior Centers (NISC) Public Private Partnership Award.

Environmental Metrics

ESG Focus Areas

• Health Care
• Children
• Environmental Sustainability
• Diversity & Inclusion
• Corporate Governance
• Ethical Business Practices

Environmental Achievements

• Marginal increase of less than 1.3 percent in absolute emissions, but carbon intensity per square foot of retail space slightly decreased.
• Reduced irrigation water use by 20 percent annually at select stores.
• Realized energy savings from lighting upgrades at four major distribution centers.
• 182 tons of plastic stretch film recycled.
• Reduced packaging and associated waste of 79 products.

Social Achievements

• Launched Pharmacy Advisor® program, resulting in a 7.6 percent decrease in prevalence of gaps in medication therapy for diabetes.
• Launched Maintenance Choice® program, with 30 percent more new-to-therapy members staying on therapy after 180 days.
• Provided free or affordable health services to uninsured or underinsured individuals.
• Provided free flu shots to patients in need.
• Provided free health screenings and services to more than 162,000 people.
• Raised $4.15 million for Easter Seals through Walk With Me program.
• Donated nearly $450,000 toward disaster relief.

Governance Achievements

• Adopted updated Corporate Governance guidelines meeting or exceeding NYSE listing standards.
• Implemented enhanced factory audit program for workplace conditions.
• Maintained a toll-free Ethics Line for reporting potential unethical behavior.
• Implemented new components for information security program.
• Maintained a privacy program to improve privacy practices.

Climate Goals & Targets

Environmental Challenges

• Growth of retail footprint leading to marginal increase in absolute emissions.
• Medication non-adherence costing the U.S. healthcare system $300 billion annually.
• Shortage of primary care physicians in the U.S.
• Natural disasters impacting communities.

Mitigation Strategies

• Implemented various measures to reduce energy use in stores.
• Launched research collaborations to understand medication adherence.
• Provided increased access to quality care through MinuteClinic®.
• Provided disaster relief funding and resources.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Ethics Policy requiring adherence to ILO conventions, prohibiting human trafficking and child labor, ensuring safe and fair working conditions, and upholding the right to freedom of organization.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G3 Guidelines (Level B)

Certifications: LEED Gold certification for Chemung Distribution Center

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Earth Essentials product line
• Natural beauty brands meeting EU standards

Awards & Recognition

• Forbes Most Reputable Companies
• Fortune World’s Most Admired Companies
• Bloomberg Businessweek 50 ranking
• Interbrand Most Valuable U.S. Retail Brands
• CR Magazine’s 100 Best Corporate Citizens
• Supply Chain Logistics Summit Award for Sustainable Transportation Practices
• National Private Truck Council Award for Local Truck Safety

Environmental Metrics

ESG Focus Areas

• Medication Adherence
• Health Care Access
• Environmental Sustainability
• Community Engagement
• Workplace Well-being
• Diversity and Inclusion
• Corporate Governance
• Supply Chain Ethics

Environmental Achievements

• Reduced carbon intensity by 7% by 2012, exceeding initial goals despite increased square footage and store count.
• Expanded energy management systems to 3,800 stores.
• Implemented lighting retrofits and energy-efficient HVAC systems.
• Improved fleet fuel efficiency and reduced fuel consumption.
• Increased recycling initiatives across stores and distribution centers.

Social Achievements

• Launched Pharmacy Advisor® program, reducing non-adherence by 17% and first-fill drop-offs by 26% among participating patients.
• Expanded Maintenance Choice® program to 16 million plan members.
• Provided free health screenings and services to over 160,000 people through Project Health.
• Offered free flu shots to the uninsured.
• Administered prescription discount programs reaching 520,000 people.
• Launched Values in Action program, awarding over $3 million in employee recognition points.
• Supported Hiring Our Heroes program, assisting veterans and military spouses in finding employment.
• Provided job opportunities to 27,000 young people through Summer Jobs+ initiative.
• Donated over $81 million to charitable causes.

Governance Achievements

• Maintained a robust Compliance and Integrity Program, including a Code of Conduct, ethics training, and an ethics hotline.
• Implemented a comprehensive Information Governance Framework to protect personal information.
• Enhanced factory audit program to ensure compliance with Supplier Ethics Policy and human rights standards.
• Adopted Corporate Governance guidelines exceeding NYSE listing standards.

Climate Goals & Targets

Environmental Challenges

• High cost of medications as a barrier to medication adherence.
• Shortage of primary care physicians.
• Increasing demand for healthcare services.
• Climate change impacts on business operations and supply chain.
• Ensuring access to healthcare during extreme weather events.

Mitigation Strategies

• Developed innovative programs like Pharmacy Advisor® and Maintenance Choice® to improve medication adherence and access to care.
• Expanded MinuteClinic® services to provide convenient and affordable healthcare.
• Offered free or affordable health services to uninsured and underinsured patients.
• Implemented an Emergency Action Plan to address weather-related risks.
• Deployed mobile pharmacies to ensure continuity of care during Hurricane Sandy.

Supply Chain Management

Supplier Audits: 702 audits in China, 4 in India, 1 in Philippines, 1 in South Korea, 5 in Taiwan, 4 in Thailand, 1 in UK, 11 in Vietnam.

Responsible Procurement

• Supplier Ethics Policy aligned with ILO and UN principles.
• Risk-based audits conducted by third parties.
• Prohibition of human trafficking, child labor, and forced labor.
• Commitment to fair wages and safe working conditions.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (e.g., hurricanes)

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and operations.

Reporting Standards

Frameworks Used: GRI G3.1 Guidelines (Level B)

Certifications: ISO 14001 (implied)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Earth Essentials® eco-friendly household products
• Expansion of natural and organic beauty products

Awards & Recognition

• Forbes' Most Reputable Companies
• FORTUNE's World's Most Admired Companies
• Bloomberg Business Week 50
• Interbrand's Most Valuable U.S. Retail Brands
• CR Magazine's 100 Best Corporate Citizens
• DiversityInc's 25 Noteworthy Companies
• Top 10 Companies for Veterans

Environmental Metrics

ESG Focus Areas

• Building healthier communities
• Protecting the planet
• Creating economic opportunities

Environmental Achievements

• Achieved a 9% reduction in carbon intensity from the 2010 baseline.
• Opened a LEED Platinum store in West Haven, CT.
• Reduced fuel consumption slightly due to fleet efficiency initiatives.
• Expanded energy management system (EMS) to the majority of stores and two distribution centers.
• Completed LED lighting retrofits in 566 stores and two distribution centers.
• Converted approximately 2,350 stores to digital photo-processing.

Social Achievements

• Launched several pilot programs to support patient medication adherence (refill synchronization, reminder devices, digital tools).
• Pharmacy Advisor program delivered over 8 million live interventions.
• Provided more than $10.5 million worth of free medical services through Project Health.
• Made a $5 million commitment to expand access to quality health care nationwide.
• Hired approximately 5,000 people through the Welfare to Work program.
• Launched the CVS/pharmacy Medication Disposal for Safer Communities Program.
• Announced the decision to stop selling tobacco products in all stores by October 1, 2014.

Governance Achievements

• Nominating and Corporate Governance Committee took on oversight of CSR strategy and performance.
• Increased transparency on political spending and lobbying activities.
• Completed an annual external assessment of information security policies and safeguards with no major security risks found.

Climate Goals & Targets

Environmental Challenges

• Increased GHG emissions in 2013 due to mandatory refrigerant change-outs, colder weather, and changes in emission factors.
• Potential for extreme weather-related events disrupting business operations.
• High cost of health care and difficulty in accessing the system.
• Prescription drug abuse.
• Need to improve visibility into the supply chain's environmental impacts.

Mitigation Strategies

• Investing in changes to prevent emissions from growing at the same rate as square footage.
• Developed enhanced emergency response action plans.
• Business Continuity Plan addresses loss of facilities, IT infrastructure, human resources, and supply chain disruptions.
• Collaborating with various organizations to combat prescription drug abuse (legislation, technology, safer communities).
• Implementing WERCSmart tool to monitor product inputs and supplier compliance.

Supply Chain Management

Supplier Audits: 667 audits in 2013

Responsible Procurement

• Supplier Ethics Policy (aligned with ILO and UN principles)
• Factory social audit program (WCA and GSV audits)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: Null

Third-party Assurance: Third-party assurance for carbon footprint data; no other external assurance.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Earth Essentials product line
• Reformulated Essence of Beauty line

Awards & Recognition

• DiversityInc’s 25 Noteworthy Companies
• Top 10 Companies for Veterans

Environmental Metrics

ESG Focus Areas

• Building healthier communities
• Protecting the planet
• Creating economic opportunities

Environmental Achievements

• Achieved an 11% reduction toward a 15% carbon intensity reduction goal by 2018
• Diverted more than 35,000 pounds of plastic bags from landfills (6% improvement over 2013)
• Converted nearly 3,200 stores to digital photo processing (eliminating photo-development chemicals)

Social Achievements

• Expanded Project Health to 27 cities, providing free health services to over 83,000 patients
• Launched a national smoking cessation program, counseling over 67,000 patients
• Expanded MinuteClinic to 970 locations, adding 175 new locations

Governance Achievements

• All Board members except the CEO are independent
• Posted federal lobby reports on the company website
• Received Community Pharmacy accreditation from URAC

Climate Goals & Targets

Environmental Challenges

• Potential for extreme weather-related events disrupting business operations
• Increasing costs of specialty drugs
• Prescription drug abuse

Mitigation Strategies

• Developed regional emergency response action plans
• Acquired Coram to better manage specialty drug costs
• Launched Medication Disposal for Safer Communities Program, establishing 275 permanent drug disposal sites

Supply Chain Management

Supplier Audits: 890 audits performed in 2014

Responsible Procurement

• Supplier Ethics Policy
• WERCSmart supply chain reporting tool
• Risk-based audits by third parties

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Opportunities

• Energy and cost savings through efficiency improvements

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines

Third-party Assurance: Ernst & Young (for carbon footprint data)

Sustainable Products & Innovation

• Gold Emblem Abound snacks
• Seventh Generation household products

Awards & Recognition

• DiversityInc’s 25 Noteworthy Companies
• Top 10 Companies for Veterans
• Top 10 Companies for Employee Resource Groups
• Best Employers for Healthy Lifestyles Award

Environmental Metrics

ESG Focus Areas

• Accessible and Affordable Health Care
• Support for Patients with Chronic Disease
• Patient and Customer Well-being and Safety
• Sustainable Operations
• Sustainable Products and Packaging
• Safe, Rewarding and Inclusive Workplace
• Supply Chain Responsibility

Environmental Achievements

• Surpassed target of reducing greenhouse gas (GHG) intensity by 15% per square foot of retail space by 2018, achieving a 16% reduction by year-end 2015.
• Completed lighting retrofits in 854 stores in 2015, 349 of which used LED lighting. Lighting retrofits saved $1.7 million in energy costs in 2015.
• Completed conversion to digital photo processing in all CVS Pharmacy locations, eliminating photo-development chemicals and wastewater.
• Diverted more than 42,000 pounds of plastic bags from landfills (20% increase over 2014).

Social Achievements

• Reached nearly 89,000 participants through 1,113 Project Health events, valued at $8.8 million.
• Hired more than 83,000 new colleagues at retail locations, more than 11,000 at corporate facilities and distribution centers, and nearly 1,300 at MinuteClinic.
• Hired more than 1,960 people through Welfare to Work initiative (65% retention rate).
• More than 5 million patient visits at MinuteClinic locations in 2015; added 85 new locations.
• Provided more than 5 million consultations through Pharmacy Advisor program.

Governance Achievements

• Improved 2015 Proxy Statement based on shareholder feedback.
• Adopted a proxy access by-law in January 2016.
• Posted copies of federal lobby reports on website.

Climate Goals & Targets

Environmental Challenges

• Rising medication costs, driven by brand price increases and the rise of specialty drugs.
• Growing prevalence of chronic diseases.
• Prescription drug abuse.
• Deforestation contributing to climate change.
• Water scarcity issues.

Mitigation Strategies

• Formulary strategies incorporating selective drug coverage, tiering, and utilization management.
• Expanded services at MinuteClinic locations and other support services for chronic disease management.
• Prescription drug take-back and community prevention programs; expansion of naloxone availability.
• Target to procure 100% of paper stock from sustainable sources by 2020; responsible palm oil sourcing policy.
• Water reduction target: Reduce water use in retail operations for new construction by 20% by 2020; assessment of conservation irrigation solutions.

Supply Chain Management

Supplier Audits: 100% of factories producing CVS Brand and direct import products underwent a human rights screening in 2015.

Responsible Procurement

• Supplier Ethics Policy aligned with ILO Declaration, UN Universal Declaration of Human Rights, and UN Guiding Principles on Business & Human Rights; factory audit program.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting operations and supply chain.

Transition Risks

• Regulatory changes related to GHG emissions.

Opportunities

• Energy efficiency improvements.

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines

Certifications: Null

Third-party Assurance: Third-party assurance for carbon footprint data; report not externally assured otherwise.

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth

CVS Health's initiatives contribute to these goals through improved access to healthcare, chronic disease management, job creation, and workforce development.

Sustainable Products & Innovation

• Gold Emblem Abound™ product line; Promise Organic™ skincare and body products.

Awards & Recognition

• America’s Top Corporations for Women Business Enterprises (WBENC); Corporation of the Year (Florida Minority Supplier Diversity Council and Center for Women and Enterprise); Top Supplier Diversity Program (Black EOE Journal); Secretary of Defense Employer Support Freedom Award; DiversityInc’s 25 Noteworthy Companies; Top 10 Companies for Veterans.

Environmental Metrics

ESG Focus Areas

• Health in Action
• Planet in Balance
• Leader in Growth

Environmental Achievements

• Retrofitted 5,691 stores with LED lighting, saving $23.5 million
• Announced plans to remove parabens, phthalates, and formaldehyde donors from nearly 600 beauty and personal care products by end of 2019
• Announced new palm oil policy with a goal of 100% responsibly sourced palm oil by 2020
• Committed to developing a science-based emissions reduction target

Social Achievements

• Provided $117 million worth of free medical services through Project Health since 2006
• Expanded healthier food and beverage assortment to more than 2,900 stores
• Launched Be The First, a five-year, $50 million initiative to help create a tobacco-free generation
• Pharmacists gave over 4,200 presentations on prescription drug abuse prevention, reaching over 170,000 students
• Offered urgent care services to over 60,000 veterans in California through a partnership with the VA
• Hired more than 20,000 youths in full-time and part-time summer positions
• Achieved $1 billion (10% of total spend) on diverse Tier 1 suppliers by 2017
• Expanded Registered Apprenticeships program to over 2,700 participants with a goal of 3,000 by 2020
• Published Human Rights Policy aligned with UN Guiding Principles on Business and Human Rights

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Limited access to affordable healthcare
• Rising rates of chronic disease
• Aging population
• Prescription drug abuse epidemic
• Expanding environmental footprint
• Climate change

Mitigation Strategies

• Various initiatives under Health in Action, Planet in Balance, and Leader in Growth pillars
• Investing in LED lighting, responsible palm oil sourcing, and science-based emissions reduction targets
• Removing harmful chemicals from products
• Partnerships with organizations to address tobacco and prescription drug abuse

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier diversity program, achieving $1 billion spend on diverse suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Healthier food and beverage offerings
• Products without parabens, phthalates, and formaldehyde donors

Awards & Recognition

• CR magazine’s 100 Best Corporate Citizens List (#29)
• Newsweek’s Rankings of America’s Greenest Companies (#16)
• Dow Jones Sustainability Index
• Fortune’s Change the World List
• Fortune’s Most Admired Companies List (#27)
• FTSE4Good Index
• Corporate Equality Index (100% score)
• DiversityInc’s 2017 Top 50 Companies for Diversity

Environmental Metrics

ESG Focus Areas

• Accessible and Affordable Health Care
• Patient and Customer Well-Being and Safety
• Prescription Drug Abuse
• Environmental Sustainability
• Workforce Development
• Diversity and Inclusion
• Supply Chain Responsibility
• Corporate Governance

Environmental Achievements

• Achieved a 30% reduction in carbon intensity compared to 2010 baseline.
• Reduced fleet travel by approximately 1 million miles due to improved routing software.
• Diverted 47.9% of waste to recycling or reuse.
• 93% of paper used was sustainably sourced.

Social Achievements

• Expanded partnership with U.S. Department of Veterans Affairs (VA) to provide access to affordable health services for veterans.
• Launched Prescription for Parents drug abuse education program.
• Increased participation in Colleague Resource Groups (CRGs) by 34% to 3.43% of workforce.
• Value of volunteer time increased by 48%.
• Hired 4,700 Registered Apprentices (with a commitment to hire 5,000 more by 2022).
• Earned a place on DiversityInc’s 2017 Top 50 Companies for Diversity list.
• Achieved perfect scores on Corporate Equality Index and Disability Equality Index.

Governance Achievements

• Elected Mary L. Schapiro to the Board of Directors.
• 99.9% of colleagues completed Code of Conduct training.
• Implemented a new data loss prevention tool.
• Achieved a 91.4% score on the CPA-Zicklin Index.

Climate Goals & Targets

Environmental Challenges

• Escalating prescription drug prices.
• Opioid abuse epidemic.
• Challenges in accessing health care for underserved populations.
• Climate risks.
• Maintaining the confidentiality, integrity and accountability of CVS Health data.

Mitigation Strategies

• Launched real-time medication benefit and cost information for prescribers, pharmacists, and patients.
• Implemented enhanced utilization management program to reduce opioid abuse.
• Expanded safe medication disposal program.
• Developed science-based emissions reduction target.
• Expanded partnerships with community health centers and free clinics.
• Implemented a new data loss prevention tool and upgraded CVS Caremark proxy servers.

Supply Chain Management

Supplier Audits: 792 factories audited in 2017

Responsible Procurement

• Diverse supplier spending goals.
• Human Rights Policy embedded in vendor policies and practices.
• Zero-tolerance policy for child labor, forced labor, and other human rights violations.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Third-party Assurance: EY (for carbon footprint data)

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 8: Decent Work and Economic Growth
• Goal 13: Climate Action
• Goal 15: Life on Land

CSR strategy and initiatives contribute to these goals through various programs and initiatives.

Sustainable Products & Innovation

• Earth Essentials Dish Soap
• Total Home Laundry Detergent
• Promise Organic personal care items
• Honest Company products

Awards & Recognition

• DiversityInc’s 2017 Top 50 Companies for Diversity
• Perfect score on Corporate Equality Index
• Perfect score on Disability Equality Index
• Billion Dollar Roundtable
• National Minority Supplier Development Council Corporation of the Year Top Performer
• Points of Light Civic 50

Environmental Metrics

ESG Focus Areas

• Healthier Communities
• Workforce Innovation
• Diversity & Inclusion
• Sustainability
• Responsible Sourcing

Environmental Achievements

• Reduced absolute GHG emissions (progress toward 36% reduction by 2030)
• Converted nearly 1,000 retail locations to interior LED lighting, reducing consumption by 47,000 megawatt hours (MWh)
• Diverted 53.7 percent of waste to recycling or reuse
• Reduced paper use by more than 3,600 tons
• Removed oxybenzone and octinoxate from store brand sunscreens
• 100 percent of store brand palm oil suppliers are RSPO members or Rainforest Alliance certified

Social Achievements

• Launched HealthHUB® locations combining pharmacy, nutrition, MinuteClinic, and more
• Partnership with Unite Us to provide easier access to social services
• More than 11,000 veterans received care at MinuteClinic locations
• Participated in Ready, Set, PrEP program to reduce new HIV infections
• Launched Transform Oncology Care® program
• 10K+ colleagues hired through workforce innovation programs
• 1.2K+ youths hired for summer positions
• Nearly 2,000 community members participated in WITC development program
• More than 3,000 CVS Health nurse practitioners and physician assistants participated in cultural competency trainings
• $2.2 million invested with small and diverse suppliers
• 175 service members trained in store manager training program at Fort Bragg
• Launched Merchandising Accelerator Program for diverse suppliers
• 1.35M lbs. of unused prescriptions collected
• CVS pharmacists presented on prescription drug misuse to more than 570,000 teens and parents
• Aetna® “Guardian Angel” program provided resources for over 1,000 Aetna members for opioid treatment
• $50M invested in affordable housing
• $8.7 million provided to build affordable housing community in Orlando, FL
• CarePass program grew to 1.9 million members
• $100 million investment over two years to make healthcare more affordable for colleagues
• 5.9M CVS Pharmacy customers enrolled in digital receipts

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Investment in diverse suppliers; 100% of store brand palm oil suppliers are RSPO members or Rainforest Alliance certified

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Store brand sunscreens without oxybenzone and octinoxate; phenol-free paper receipts

Awards & Recognition

• DJSI World Index, CDP A List

Environmental Metrics

ESG Focus Areas

• Healthy People
• Healthy Business
• Healthy Community
• Healthy Planet

Environmental Achievements

• Reduced electricity use by more than 27.5 gigawatt-hours (GWh) and achieved a net reduction of 20,000 tons of carbon through LED lighting retrofits.
• Reduced water usage per square foot by 10%
• Diverted more than 66 percent of all waste to recycling or reuse.
• Eliminated more than 540,000 empty miles through backhaul program.

Social Achievements

• Invested nearly $600 million over the next five years to address racial health disparities and injustices.
• Invested nearly $180 million in 2020 to build healthier communities.
• Administered more than 3 million COVID-19 vaccine doses to patients and staff in long-term care facilities.
• Launched a program for Aetna members with risk factors for developing preeclampsia, delivering care kits to more than 5,000 pregnant members.
• Expanded relationship with Discovery Education and Pharmacists Teach™ program, reaching millions more students virtually.
• Provided nearly $3 million in colleague grants from the CVS Health Employee Relief Fund to support colleague health and well-being.

Governance Achievements

• Established an ESG Steering Committee to oversee the advancement of environmental, social, and governance commitments.
• Tied executive compensation to improving diverse representation.
• Completed rollout of patented Alert IQ program systemwide to provide early error detection and prevention in pharmacies.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on operations, community health, and colleague well-being.
• Racial health disparities and systemic racism.
• Increased food insecurity.
• Supply chain disruptions.
• Growing mental health challenges.

Mitigation Strategies

• Rapid scaling of COVID-19 testing and vaccination services.
• $600 million investment in social justice and racial equity initiatives.
• Support for Feeding America and other food insecurity organizations.
• Development of alternative sourcing strategies for supplies.
• Expansion of telehealth and mental health services and resources.

Supply Chain Management

Supplier Audits: 80% of suppliers by spend participated in data collection for GHG emissions reductions; virtual and physical audits conducted.

Responsible Procurement

• Code of Conduct, supplier sustainability requirements, Human Rights Policy, Palm Oil Policy, sustainable packaging requirements.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and operations.

Reporting Standards

Frameworks Used: GRI Standards, TCFD, SASB Foundation, Culture of Health for Business (COH4B)

Certifications: LEED

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 15: Life on Land

CVS Health's Transform Health 2030 strategy aligns with these SDGs through various initiatives described in the report.

Sustainable Products & Innovation

• Live Better™ by CVS Health products; Fair Trade certified coffee.

Awards & Recognition

• Dow Jones Sustainability World Index; CDP A List; Fortune Magazine World’s Most Admired Companies; 100 Best Corporate Citizens; Civic 50; Top 50 Companies for Diversity; Top Companies for Supplier Diversity; Best Place to Work for Disability Inclusion

Environmental Metrics

ESG Focus Areas

• Climate change
• Health equity
• Social determinants of health
• Diversity, Equity, Inclusion and Social Justice
• Sustainable operations

Environmental Achievements

• Became one of the first companies to have net-zero targets validated by the Science-Based Targets initiative.
• Reduced paper use by 70% through digital receipts and phasing out print circulars.
• Achieved 100% interior LED lighting upgrades in eligible stores.
• Expanded LED lighting in retail store exteriors and corporate properties.

Social Achievements

• Launched more than 300 new HealthHUB® locations.
• Provided 159M+ meals for people who are food insecure.
• Invested $185M+ in affordable housing.
• Administered more than 32 million COVID-19 tests and more than 59 million vaccines.
• Appointed the first Chief Health Equity Officer.
• Launched Health Zones initiative to improve health outcomes in high-risk communities.
• Introduced Spoken Rx, an audio prescription label solution for patients with visual impairments.
• Expanded virtual care services, including 157K MinuteClinic Virtual Care visits.

Governance Achievements

• Published first Strategic Diversity Management Report and disclosed EEO-1 data.
• Committed to increasing hourly minimum wage across enterprise to $15 an hour.
• Invested more than $100 million in reducing medical contributions for colleagues.
• Opened three new Workforce Innovation and Talent Centers (WITCs).

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on human health.
• Health disparities and racial inequities.
• Lack of access to affordable and culturally competent mental health services.
• Growing concern of vaping among young people.
• High maternal mortality rate in the U.S., disproportionately affecting Black women.
• Need to reduce plastic waste and improve sustainability of packaging.

Mitigation Strategies

• Developed a climate action strategy with science-based emissions reduction targets.
• Implemented Health Zones initiative to address social determinants of health.
• Awarded grants to organizations addressing mental health disparities.
• Funded education and outreach programs to combat tobacco and vaping.
• Invested in programs to improve maternal health outcomes.
• Launched initiatives to reduce plastic use and improve packaging sustainability.
• Developed new policies for anti-deforestation, forestry, timber commodities, pollinator and pest management and water.

Supply Chain Management

Responsible Procurement

• Supplier diversity initiatives
• Focus on reducing unnecessary packaging

Climate-Related Risks & Opportunities

Physical Risks

• Heat waves
• Storms
• Floods
• Wildfires

Transition Risks

• Regulatory changes

Opportunities

• Renewable energy investments
• Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Sustainable Products & Innovation

• Gold Emblem Abound® product line
• Store Brand products with sustainable packaging
• Sustainable organic cotton women’s hygiene products

Awards & Recognition

• CDP’s Climate A-List (3 consecutive years)
• CDP Supplier Engagement Leader
• S&P Dow Jones Sustainability North American Index (9 consecutive years)
• Dow Jones Sustainability World Index (3 consecutive years)
• Civic 50 list of America’s Most Community-Minded Companies

Environmental Metrics

ESG Focus Areas

• Access to quality health care
• Prescription drug misuse
• Diversity, equity and inclusion
• Governance
• Health equity
• Advancing public health
• Colleague health and safety
• Mental health
• Public policy
• Workforce development
• Responsible marketing and advertising
• Patient and customer safety
• Chronic disease prevention and management
• Wages and benefits
• Responding to public health challenges
• Safe and affordable housing
• Medication adherence
• Maternal health
• Data protection and privacy
• Human rights
• Ethics and compliance
• Risk management
• Pricing of drugs and services
• Community investments
• Climate action
• Supply chain sustainability
• Smoking cessation
• Sustainable operations
• Deforestation
• Sustainable packaging
• Product quality and ingredients
• Social determinants of health
• Waste reduction
• Water stewardship

Environmental Achievements

• Reached an agreement to purchase clean, renewable energy through a 42-megawatt share of the Mammoth Central solar facility in Indiana.
• Diverted 52 percent of all waste from landfill in 2022.
• Completed waste audits at corporate headquarters.
• Added How2Recycle messaging to 60 percent of store brand products.

Social Achievements

• Provided more than $27 million to Feeding America to support local food banks.
• Provided one million pounds of food to those who are food insecure.
• Launched more than 70 different training courses as part of our Enterprise Compliance Training Program.
• Nearly 100% of active colleagues completed annual Code of Conduct and Compliance training in 2022.
• 77% of the workforce was actively engaged in 2022.

Governance Achievements

• Board of Directors and CEO lead governance of ESG framework.
• Nominating and Corporate Governance Committee oversees ESG strategy and performance.
• Remuneration of key colleagues partially linked to performance against ESG business plans.

Climate Goals & Targets

Environmental Challenges

• Global cyber attacks on technology systems.
• Increase in ransomware threats throughout the health care industry.
• Supply chain disruptions (implied)

Mitigation Strategies

• Significant investments in cybersecurity program.
• Deployment of machine learning models to detect complex threats.
• Regular practice responding to different types of attacks.
• Continuous monitoring of third parties’ ability to deliver services securely.
• Building zero-trust principles into operating models.
• Collaboration across sectors through Information Sharing and Analysis Centers (ISACs).

Supply Chain Management

Supplier Audits: Risk-based audits conducted by UL Solutions, focusing on social, legal, and trade security standards.

Responsible Procurement

• Ethical Sourcing & CTPAT Compliance Program
• Human Rights Policy
• Code of Conduct
• Responsible Palm Oil Policy
• Supplier Ethical Standards
• Responsible Sourcing Standard
• Restricted Substances List
• Chemical Safety Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Energy efficiency opportunities

Reporting Standards

Frameworks Used: GRI Standards (2021), TCFD, CDP, SASB

Third-party Assurance: Apex Company (carbon footprint and water data)

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 15: Life on Land

CVS Health's Healthy 2030 strategy aligns with these SDGs through various initiatives described in the report.

Sustainable Products & Innovation

• Store brand products with How2Recycle labeling and sustainable sourcing.

Environmental Metrics

ESG Focus Areas

• Healthy People
• Healthy Business
• Healthy Community
• Healthy Planet

Environmental Achievements

• 18% reduction in Scope 1 and 2 GHG emissions from 2019 baseline
• 500,000 megawatt hours (MWh) of renewable energy sourced
• Eliminated over 550 MT of plastic bags
• 13% of paper packaging in store brand products contained PCR or sustainable sourcing certification as of December 31, 2023.

Social Achievements

• Donated one million period products to Feeding America
• Awarded $1.3 million in scholarship funding
• Over 11,000 colleagues participated in tuition assistance benefit
• Expanded doula coverage reimbursement from $1,600 to $10,000 a year
• Added digital support for family building and heart health
• Expanded infertility benefits to all enrolled colleagues

Governance Achievements

• Remuneration of key colleagues partially linked to performance against Healthy 2030 goals
• Board oversight of climate change reporting and risks, emissions reduction targets, sustainability initiatives, renewable energy procurement, and philanthropic programs.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather events
• Increased costs of sustainable raw materials
• Growing expectations for supply chain transparency
• Plastics regulation increasing costs

Mitigation Strategies

• Response Ready program to monitor and respond to extreme weather
• Proactive mitigation strategies to reduce inventory losses
• Evaluating and negotiating costs with suppliers
• Working with suppliers to reduce emissions and set SBTi-validated targets
• Assessing and monitoring prescription bottle waste to guide use of alternative materials and recycling
• Pushing for efficiencies in transportation and logistics to reduce emissions

Supply Chain Management

Supplier Audits: Risk-based audits conducted by UL; number not specified.

Responsible Procurement

• Ethical Sourcing & CTPAT Compliance Program
• Annual e-learning courses on social, legal, and trade security standards
• Zero Tolerance policy for child labor, abuse, bribery, forced labor
• Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat
• Extreme cold
• Wildfires
• Coastal flooding
• Storm surges
• Tropical cyclones
• Extreme rainfall
• River flooding

Transition Risks

• Carbon pricing
• Regulatory pressure to decarbonize
• Plastics regulation
• Increased pass-through costs
• Supply chain transparency
• Demand for sustainable raw materials

Opportunities

• Reduce Scope 3 transport emissions
• Circular economy principles
• Decarbonization of operations through renewable energy
• Opportunity to sell low-carbon products

Reporting Standards

Frameworks Used: GRI Standards (2021), SASB Standards, TCFD, UNGC

Certifications: Null

Third-party Assurance: UL (for carbon footprint and water data); AA1000 (for Healthy 2030 report appendix)

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 15: Life on Land

Initiatives aligned with each goal are described in the report.

Sustainable Products & Innovation

• Dry powder inhalers replacing HFC-containing inhalers

Awards & Recognition

• Not disclosed