2018 Corporate Social Responsibility Report
1 Better Health, Better Community, Better World.
Letters 3 Building Healthier Communities 21 Larry J. Merlo Transforming the Health Care Experience 22 President and Chief Executive Officer 3 Investing in Community Health 34 Eileen Howard Boone Senior Vice President, Corporate Social Leading and Inspiring Growth 43 Responsibility & Philanthropy 4 Inspiring the Next Generation of Health Care Innovators 44 Ensuring a Best-in-Class Workplace 47 Corporate Profile 5 Continuing Our Best-in-Class Governance 57 CSR Strategy 9
CSR Governance 11 Protecting Our Planet 62 CSR Material Topics 12 Engaging Internal and External Stakeholders 63 Stakeholder Engagement 13 Sustainable Operations 65 Tracking Our Performance 17 Sustainable Products and Packaging 72
About This Report 74
2 Larry J. Merlo Letters President and Chief Executive Officer “ By bringing together CVS Health and Aetna, we are creating a uniquely powerful new platform that will open a new front door to health care, reshape the consumer experience and lead to healthier communities.”
Dear Stakeholders, We will engage consumers with platform – Better Health, Better One-third of Americans interact with Today’s health care system is complex the care they need, when and where Community, Better World – and update our company every year – including and can be very challenging to they need it – giving them human you on the pillars that guide our efforts: 4.5 million people who visit our retail navigate for many of us. High costs, connections with pharmacists, nurse Building Healthier Communities; stores daily in nearly 10,000 a fragmented system and a lack of practitioners and other skilled providers, Leading and Inspiring Growth; and communities across the country support to help patients manage along with digital options for those Protecting our Planet. and more than 38 million medical their own care are creating barriers who prefer to access care in the palm members who rely on us to help them to the overall health of our country. We of their hand. To deliver on this vision, In the pages that follow, you’ll read make decisions about their health. have long been focused on improving we are building a consumer-centric more about 2018 as a milestone year As we deliver on our purpose of helping not only the health of our patients and approach to health care that offers for CVS Health. At MinuteClinic®, we people on their path to better health, colleagues, but the health of all of a better experience, which in turn will provided 5.2 million patients with we have high expectations for 2019 and the communities we serve. drive better patient engagement with quality, affordable care. We created beyond. There is no more pressing issue programs and services, improving employment opportunities for 6,000 than fixing what is broken with the U.S. As we look back on 2018 and plan their health and delivering better military members and their spouses. health care system and CVS Health for 2019 and beyond, we are excited outcomes that reduce costs. We worked across our entire company is positioned to lead the change. about this time in our company’s and with community partners to We welcome the opportunity to work history – as we combine with Aetna®, As a socially responsible company, implement solutions that help tackle with our partners, shareholders, and we know we have an opportunity to we believe that we have a role to play the opioid crisis and we helped 82 other stakeholders. Together, we will help fundamentally transform the way in helping to solve important societal college campuses go tobacco-free in deliver better health, all toward better the health care system works. problems in meaningful ways. Our pursuit of delivering the first tobacco- communities and a better world. corporate social responsibility (CSR) free generation. We continue to put By bringing together CVS Health® and strategy ensures we put our businesses new products on our shelves that Sincerely, Aetna, we are creating a uniquely and resources to work in tangible ways provide healthier, more sustainable powerful new platform that will open that make a difference in our local options for our on-the-go customers, a new front door to health care, reshape communities and people’s lives. In and ensure we are efficiently and the consumer experience and lead our 12th annual CSR Report, we’re responsibly managing our supply chain. Larry J. Merlo to healthier communities. excited to share our refreshed President and Chief Executive Officer
3 Eileen Howard Boone Senior Vice President, Corporate Social Responsibility & Philanthropy
“ We believe our greatest CSR opportunities ahead will be a result of our ability to meaningfully impact the health of whole communities, bringing together the power of our business and strategic community investment.”
Dear Stakeholders, care at the local level. We are taking $100 million commitment to improve ensuring that we have the most highly- Thank you for being on this exciting an increasingly sophisticated approach community health in one-third of U.S. skilled, compassionate health care CSR journey with us. I am particularly to reducing our environmental impact counties through partnerships and professionals in the industry. proud to present this year’s CSR Report and creating economic opportunity community support. This means more to you because 2018 marks the biggest for hundreds of thousands of people, free health screenings and more funding In addition to the health and financial corporate social responsibility move and we have always been focused on to tackle public health challenges, wellness of our colleagues, we are we have ever made as a company: building healthier communities while including tobacco use and opioid abuse. equally committed to the health of welcoming Aetna to our enterprise. driving healthy growth for our company. We will aim to support more patients our planet. By continuing to reduce with chronic disease, improve overall our resource use and embedding Like our decision to stop selling tobacco During this exciting time of health outcomes and relieve the strain sustainability into our products and products, this business decision has transformation, in 2018 we took the on our health care system. supply chain, we are helping to build far-reaching benefits and will positively opportunity to reframe our CSR strategy healthier communities for the long- impact the lives of tens of millions of to more accurately reflect our new Through these Foundation investments, term. We are particularly proud to people across the U.S. It exponentially enterprise. Our refreshed CSR we are filling gaps within our commercial have established a science-based expands our ability to effect positive framework, Better Health, Better footprint to support underserved emissions reduction target in 2018, change in local communities and across Community, Better World, charts our populations and aligning our resources embracing climate science to guide the health care system – more so course for the future and focuses in with communities’ most pressing our sustainability initiatives in the than any other business combination three priority areas: Building Healthier health issues. Our colleagues’ energy years to come. in the sector. We are truly reinventing Communities; Leading and Inspiring and enthusiasm will deliver more health care delivery and, with each Growth; and Protecting Our Planet. volunteer hours to our community Thank you for taking the time to learn step of the way, staying true to our initiatives. And to our nonprofit partners, more about our many accomplishments purpose of helping people on their We believe our greatest CSR we will bring support, expertise, and in 2018 – and some of the exciting path to better health. opportunities ahead will be a result replicable approaches that improve changes to come – as we continue of our ability to meaningfully impact the health care at the community level. our journey as a health care innovation Our CSR journey is more than a decade health of whole communities, bringing company shaping the future of health in the making. Since publishing our together the power of our business and Better Health, Better Community, care. We look forward to your feedback. first CSR Report in 2008, we’ve built strategic community investment. And, Better World also means supporting our reputation as a leader in corporate it is clear to us that it will take more the economic health and mobility of our Sincerely, social responsibility through business than incremental steps to support all communities and colleagues. Through decisions that deliver on our purpose. Americans on their path to better health. innovative workforce development We are tackling our nation’s most Along with the CVS Health and Aetna programs and a steadfast commitment Eileen Howard Boone pressing public health challenges and Foundations, we have launched Building to helping our colleagues grow their Senior Vice President, Corporate investing in increased access to health Healthier Communities, a five-year, careers with CVS Health, we are Social Responsibility & Philanthropy
4 Our Operations Corporate Profile & Supply Chain CVS Health is the nation’s premier health innovation company helping people on their path to better health.
Whether in one of our pharmacies or through serving more than one million patients per our health services and plans, CVS Health year, expanding specialty pharmacy services, is pioneering a bold new approach to total and a leading stand-alone Medicare Part D Headquarters: health by making quality care more prescription drug plan. CVS Health also Woonsocket, RI affordable, accessible, simple and seamless. serves an estimated 38 million people CVS Health is community-based and locally through traditional, voluntary and consumer- focused, engaging consumers with the care directed health insurance products and they need when and where they need it. related services, including rapidly expanding We have more than 9,900 retail locations, Medicare Advantage offerings. This approximately 1,100 walk-in medical clinics, innovative health care model is believed a leading pharmacy benefits manager with to increase access to quality care, delivers approximately 92 million plan members, better health outcomes and lowers overall a dedicated senior pharmacy care business health care costs. More than 245,000 colleagues in 50 states, the District of Columbia, Puerto Rico and Brazil
5 Our Operations & Supply Chain
9.9K+ 26 Front-of-Store Revenues retail locations retail specialty including 118 new and pharmacy stores acquired retail stores net of closures 17 specialty mail 1.1K+ order pharmacies walk-in medical clinic (MinuteClinic) locations in 33 states and the 86 District of Columbia branches for infusion 23% 77% sales from store sales from national and enteral services and proprietary brand suppliers 37 brands specialty on-site 15 4 pharmacy stores long term care pharmacies
6 2018 Financial Results & Economic Impact
$4.8B $10 0M+ to providers in charitable Our employees earned of capital contributions, employee giving,
$10.9B $19 4.6B in-store fundraising in wages in total revenues $3.7B and in-kind in income, donations property and $1.9B employer taxes in benefits in the U.S.
7 WeWe ar aree Our healthhealth ca carere strategic innovinnovatorsators imperatives
Be local Lead the change Engage people Challenge the with the care status quo with they need new technologies, where they business models need it and partnerships
Make it simple Attract and inspire Make a Unlock the power complicated of our people system easier to transform for all health care
Our PuOurrpos Purposee OurOur Strategy Strategy OurOur Values Values Improve health Optimize performance HelpingHelping people people CreaCreatingting unmatched unmatched InnovationInnovati on Help people and service on thoneir their path path humanhuman connec connectionstions CollaborationCollaboratio n achieve better Ensure our people, to betott erbetter health health toto transf transformorm CaringCarin g health at a processes and ththee heal healthth care care IntegrityIntegri ty lower cost technology enable exexperienceperience AccountabilityAccountability our strategy
8 CSR Strategy Building Healthier Leading and Inspiring Communities Growth Better Health, Better Community, Better World At CVS Health, we share a single, clear purpose: Make community health and Leverage the assets, scale and helping people on their path to better health. As we wellness central to our charge expertise of our business to create for a better world. economic opportunities and value integrate Aetna into our enterprise, our innovative new for employees, customers, suppliers business model will allow us to bring real, meaningful • Accessible and affordable and investors. change to the marketplace. This transformation is health care guided by six strategic imperatives that will help people • Safe, rewarding and inclusive • Support for patients/members workplace get well and stay well, in body, mind and spirit. with chronic diseases • Regulatory compliance and voluntary Our CSR strategy is central to the way we advance our • Patient, member and customer standards are met or exceeded purpose and support our strategic imperatives. In 2018, safety and well-being we took the opportunity to reframe our CSR strategy • Supply chain responsibility to be more inclusive of our broader enterprise and maximize our impact. Our refreshed CSR framework, Better Health, Better Community, Better World, conveys our mission to leverage our scale, expertise and Protecting Our To ensure accountability Planet innovative spirit in ways that positively impact all of for delivering on our strategy, we track our our stakeholders. It charts our course for the future Ensure environmental sustainability progress against 23 and focuses in the three key areas: is embedded in our approach to business operations and product measurable, multi-year development. performance targets. We continue to work • Sustainable operations with internal and external • Sustainable products stakeholders to deliver and packaging on these commitments, identify new opportunities • Internal and external engagement to strengthen our around our sustainability vision performance and increase transparency.
9 Contributing to the we extended our STEM-enriched, a meaningful role in helping to reverse its United Nations Sustainable nationally recognized program, myCVS devastating effects. In 2018, the Science Development Goals Journey Pathways to Health Care Based Targets Initiative (SBTi) approved Our CSR strategy also continues Careers, through a new collaboration our greenhouse gas (GHG) reduction to support the United Nations’ with Job Corps, giving us the potential targets to reduce our absolute scope 1 Sustainable Development Goals to expose 60,000 youth to careers at and 2 GHG emissions by 36 percent (SDGs), 17 aspirational global goals CVS Health. Our colleague development by 2030 from a 2010 base year, and to that aim to make dramatic progress initiatives provided new opportunities commit that 70 percent of our suppliers on development issues by 2030. from retail to mid-level leadership, by emissions will set science-based We believe we can most meaningfully including our LearnRx Pharmacy emissions reduction targets on their contribute to five of the SDGs that Technician Program, which was scope 1 and 2 emissions by 2023. most closely align with our business completed by nearly 18,000 pharmacy Read more on page 67. impact and CSR initiatives. technicians in 2018. On track to hire 5,000 more Registered Apprentices Goal 15: Life on Land Goal 3: Good Health and by 2022, at the end of 2018 we had Sustainable use of resources remains Well-Being hired more than 3,200. We also invested a central part of our work to protect the Through our innovative health care nearly $1.4 million in scholarships to planet. In 2018, 96 percent of the paper model, we continue to make substantial advance the aspirations of students, we procured across the enterprise was strides in providing more accessible including those studying to be sustainably sourced, and 84 percent of and affordable health care to more pharmacists and nurse practitioners. our store brand suppliers had either Americans. Our Project Health campaign Read more on page 44. become members of the Roundtable connects multicultural communities on Sustainable Palm Oil or obtained with large numbers of uninsured or Goal 8: Decent Work and Rainforest Alliance certification. Read underinsured residents to no-cost Economic Growth more on page 72. comprehensive health assessments As one of the nation’s largest that detect early risks for chronic companies, our business decisions In addition to supporting these five conditions. In 2018, Project Health have far-reaching impacts on the SDGs, in all of our work we aim to delivered more than $5.3 million in economic mobility of thousands of strengthen partnerships that help free health care services to more than local communities. In 2018, we hired extend our environmental support 77,000 Americans. These screenings nearly 85,000 new colleagues and paid programs. In 2018, we became the first are often how an estimated one-third $10.9 billion in wages. Our diverse U.S. pharmacy chain to join the United of attendees first become aware of supplier program, focused on creating Nations Global Compact, confirming a health concern or condition. Read economic impact for women- and our commitment to implementing the more on page 38. diverse-owned businesses, drove a total Compact’s ten principles with respect economic impact of $5.8 billion and to human rights, labor, the environment Goal 4: Quality Education supported more than 38,000 jobs across and anti-corruption; engaging in Our workforce initiatives expose young the country. Read more on page 59. partnerships to advance the broader people across the country to meaningful goals of the United Nations; and taking careers in health care and present new Goal 13: Climate Action action in support of the SDGs. Our educational opportunities to those who Climate change is affecting global annual Communication on Progress may not otherwise have access. In 2018, health, and we believe we can play can be found in the Appendix.
10 CSR Governance
Governance of our CSR framework is led by our Board of Directors and President and Chief Executive Officer. The Nominating and Corporate Governance Committee of the Board of Directors is formally charged with oversight of CSR strategy and performance, and reviews our annual priorities and CSR Report along with our President and Chief Executive Officer.
Our Senior Vice President of CSR and Philanthropy shares relevant CSR-related impacts, risks and opportunities with the Nominating and Corporate Governance Committee semi-annually. In 2018, the Nominating and Corporate Governance Committee was engaged on topics including climate change, science-based targets, renewable energy, the opioid crisis, tobacco use among youth, and veteran health. At these presentations, requests were made for approval to act on a selected issue or for funding to support a new initiative.
Our Senior Vice President of CSR and Philanthropy also ensures we are progressing against our strategy and performance targets. She and her team regularly work with company leadership to align our strategy with business imperatives and collaborate with colleagues throughout the company on key initiatives. She also serves as the Executive Sponsor of our GreenTeam Colleague Resource Group.
Colleagues with direct oversight of areas within our three CSR pillars are responsible for driving performance and meeting established targets as part of their business plan. These internal partners are regularly engaged by the CSR team to provide progress updates and identify emerging risks and opportunities. Remuneration of leaders, colleagues, as well as business unit and facility managers is partially linked to performance against these business plans.
We have also established several policies that govern our approach to issues of importance to our business and our stakeholders, including our Climate Change Policy, Human Rights Policy and Privacy Commitments, all located in our online Resource Library.
11 CSR Material Topics Our CSR material topics inform the assessments and decisions of our We find these issues remain relevant for Building Healthier Communities content of this report. These 23 topics stakeholders. We conducted a the 2018 reporting year and will conduct below represent our most significant comprehensive materiality assessment another materiality assessment in 2019 Leading and Inspiring Growth economic, environmental and social in 2017 in accordance with the Global to reflect our evolving business strategy impacts, as well as those topics Reporting Initiative (GRI) Standards’ and stakeholder expectations. Protecting Our Planet that substantively influence the guidance for defining material topics.
1 Access to quality health care 3 VERY HIGH 2 Pricing of drugs and services 1 3 Patient and customer safety
11 4 2 4 Prescription drug abuse
5 Product quality and ingredients For the material topics (1) access to quality health care and (2) pricing of drugs and services, they have very 5 15 6 Chronic disease prevention and management high influence on Stakeholder Assessments12 and Decisions and have very high significance of Economic, 16 7 Tobacco use Environmental and Social Impacts. For the material topics (3) patient and customer safety, (4) prescription drug 19 8 Community investments abuse, (5) product quality and ingredients, (11) climate risks, (12) sustainable17 operations, (15) ethics and 18 9 Medication adherence compliance and (16) governance,7 they have very high influence on Stakeholder Assessments and Decisions 10 Public policy and has high significance of Economic, EnvironmentalHIGH and Social Impacts. For the material topics (6) chronic 11 Climate risks disease prevention and management20 and (17) diversity and inclusion, they have a high influence on 13 Sustainable operations Stakeholder Assessments and Decisions and has very high significance of Economic, Environmental12 and 6 13 Supply chain responsibility Social Impacts. For the material topics (13) supply chain23 responsibility, (14) packaging, (18) human rights, (19) data protection and privacy, (22) wage and benefits and (23) employee health and safety, they have 14a highPackaging influence on Stakeholder Assessments14 and Decisions and have22 a high significance of Economic, Environmental15 Ethics and compliance 21 and Social Impacts. For the material topics (7) tobacco8 use, (20) workforce development and (21) risk16 Governance management, they have a high influence on Stakeholder Assessments and Decisions and have moderate17 Diversity and inclusion 10 significance of Economic, Environmental9 and Social Impacts. For the material topics (8) community 18 Human rights
In uence on Stakeholder Assessments and Decisions investments and (9) medication adherence, they have moderate influence on Stakeholder Assessments19 Data and protection and privacy
Decisions and has high significance of Economic, Environmental and Social Impacts. For the material20 topicWorkforce (10) development
public policy, it has moderate influence on Stakeholder Assessments and Decisions and has moderate21 Risk management significanceMODERATE of Economic, Environmental and Social impacts. 22 Wages and bene ts 23 Employee health and safety
Signi cance of Economic, Environmental, and Social Impacts
12 Stakeholder Engagement We are committed to maintaining We’re proud of the work we’ve done implement and advance our CSR resulted from engagements in 2018. regular, open communication with to establish a two-way dialogue with strategy. On pages 13–16 of this report, For more information about recent a broad range of stakeholders advocates, policymakers, investors, we have detailed how we engage with collaborations and partnerships, who help us fulfill our purpose of helping customers and patients. It’s their stakeholder groups and highlighted visit the “Stakeholder Engagement” people on their path to better health. insights and feedback that help us some of the notable outcomes that section of our website.
Stakeholder How We Engaged Them Top Issues Raised Outcomes in 2018 Group
• In-person interactions • Access to quality health care • With an average of 4.5 million people who visit our retail stores daily in nearly 10,000 communities across the country and more than 38 million medical • Focus groups • Pricing of drugs and services members, we engage with our patients and customers millions of times a day • Customer relations hotline • Patient and customer safety as we help them on their path to better health. • Surveys • Chronic disease prevention and • Through Pharmacy Advisor®, we’ve delivered more than 32 million personal management • Social media counseling interventions, which have improved patient medication adherence • Medication adherence by 10 percent for hypertension medication, 9 percent for anti-diabetics and • Websites Patients and 12 percent for cholesterol therapy. consumers • Data protection and privacy • Mail/email • We continued to respond to our consumers’ preference for healthier, more • Tobacco use sustainable products, expanding healthier options through our Gold Emblem • Patient and customer safety Abound® line to more than 160 items; increasing the number of dye-free products we offer; and removing chemicals oxybenzone and octinoxate from • Packaging our store brand sun-care products. • Data protection and privacy • Community investments
• Meetings and interviews • Diversity and inclusion • Our FAITH CRG and Merchandising Team came together to gain a better with subject matter experts understanding of religious differences and how they impact employee and • Workforce development customer relationships during the holiday season, both in stores and offices. • Engagement surveys • Wages and benefits Topics included holiday greetings, adjusting product offerings to be reflective • Training and professional • Employee health and safety of community cultural preferences and celebrations, dietary restrictions, Colleagues development opportunities holiday scheduling and respectful communication. • Community investments • myLife/Intranet • Our Diversity Management Leadership Council (DMLC), a group of cross- • Colleague Resource Groups functional senior leaders with oversight from our Board of Directors, (CRGs) provides guidance on the tools and resources we use to equip colleagues to promote diversity across the company.
13 Stakeholder Engagement
Stakeholder How We Engaged Them Top Issues Raised Outcomes in 2018 Group
• Annual Stockholders • Climate risks • We conducted 15 shareholder engagement meetings during the fall off-season, Meeting and engaged with shareholders that proposed resolutions for inclusion in our • Prescription drug abuse proxy statement. • Quarterly earnings calls • Product quality and safety • Throughout the year, we responded to investor inquiries on a broad range of • Phone briefings Investors and • Access to quality health care CSR topics, most often through phone briefings and email correspondence. • Email correspondence stockholders • Pricing of drugs and services We also responded to investor ratings and rankings including the Dow Jones • Response to ratings and Sustainability Index and MSCI to provide investors with a deeper understanding • Diversity and inclusion rankings of our Environmental, Social and Governance (ESG) impacts and commitments. • Human rights • Conferences • Risk management
• Briefings and meetings • Pricing of drugs and services • A major focus of our public policy work focused on engaging policymakers around the important role of the Pharmacy Benefit Manager (PBM) in controlling • Phone briefings • Ethics and compliance drug costs. Learn more in the Helping Reshape Public Policy section of this • Email correspondence • Prescription drug abuse report on page 58. • White papers and other • Public policy • We collaborated with the Environmental Protection Agency (EPA) on regulatory briefing materials • Access to quality health care requirements for the disposal of pharmaceutical waste. The EPA Acting • Trade organizations Administrator issued the final rule in December. • Workforce development Government • Participation in coalitions and regulators • Supply chain responsibility • Roundtable discussions • Public events • Sponsorships of events • Speaking engagements • Conferences • Media engagements
14 Stakeholder Engagement
Stakeholder How We Engaged Them Top Issues Raised Outcomes in 2018 Group
• Conferences • Access to quality health care • We continued to reduce chemicals of consumer concern through ongoing collaboration with The Safer Chemicals, Healthy Families coalition and its Mind • Roundtables • Chronic disease prevention and management the Store campaign and were given a B+ in their annual report card. • Strategic partnerships • Climate risks • While preparing our science-based emissions reduction target for approval by Nonprofit • Participation on boards and • Supply chain responsibility the Science Based Targets initiative (SBTi), we sought counsel from many organizations advisory councils • Packaging stakeholders, including CDP, our suppliers and agency partners. and NGOs • Attending annual meetings • Pricing of drugs and services • Virtual and in-person • Prescription drug abuse engagement meetings • Product quality and ingredients • Webinars
• Conferences • Diversity and inclusion • We hosted more than 300 participants at the 2018 Billion Dollar Roundtable Summit and induction ceremony, convening leaders from 29 Billion Dollar • In-person meetings • Climate risk Roundtable companies, academics, government officials and diverse suppliers • Product quality and ingredients to share best practices, opportunities and strategies to continue to grow Industry groups • Patient and customer safety supplier diversity programs. and forums • Access to quality health care • We also shared key learnings and best practices that we gleaned from setting our science-based target with the Retail Industry Leaders Association (RILA), • Pricing of drugs and services We Mean Business and CDP in a joint webinar. • Packaging
• Direct engagement • Diversity and inclusion • We hosted the Supplier Diversity 2020 Ideation Session to identify new ways to achieve our 2020 spending targets by convening CVS Health business leaders, • Trainings • Supply chain responsibility strategic partners, existing and potential diverse suppliers and representatives Suppliers • Business building events • Human rights from national minority councils. • Supplier compliance • Product quality and ingredients program
15 Stakeholder Engagement
Stakeholder How We Engaged Them Top Issues Raised Outcomes in 2018 Group
• Community engagement • Access to quality health care • Our Project Health campaign reached 77,000 participants through 55 events in programs 11 communities across the country. We provided 176,000 biometric screenings, • Community investments 4,300 smoking cessation counseling sessions and $5.3 million worth of free • Volunteering • Prescription drug abuse prevention medical services. • Board memberships Local • Workforce development • We continued to support communities in their effort to ensure safe disposal of communities • Event participation prescription medication. The more than 1,650 safe medication disposal units we have installed or donated nationwide have collected more than 480,000 pounds, or 217 metric tons, of unwanted medication. We plan to expand in-store units and have accessible units in every city where we operate, including incorporating disposal units into new store plans.
• In-person meetings • Access to quality health care • We measure the satisfaction of our PBM clients twice a year through a web-based survey, and use their feedback to improve our services and client relationships. • Phone • Pricing of drugs and services Our approach to quality improvement has resulted in year-over-year improvement • Email correspondence • Prescription drug abuse in PBM client and member satisfaction: In 2018, 97 percent of clients were • Surveys • Medication adherence satisfied. In 2018, 96 percent of members were satisfied.
Clients • Disclosure requests • Chronic disease prevention • Omnicare Long Term Care Pharmacy measures the satisfaction of our Post-Acute and management and Senior Living facility customers through a web-based survey on a quarterly basis and uses their feedback to improve our products and services. Our • Tobacco use Service1st-related initiatives have resulted in year-over-year improvement in customer satisfaction: In 2018, 84 percent of facility customers were satisfied or better. In 2018, 92 percent of Senior Living Residents and Responsible Parties were satisfied or better.
• Direct outreach • Access to quality health care • As part of our partnership with the American Heart Association’s Go Red for Women campaign, we deployed an integrated communications strategy to • Website • Pricing of drugs and services promote no-cost heart health screenings at MinuteClinic and the in-store • Responses to inquiries • Prescription drug abuse customer fundraiser. This included using MinuteClinic nurse practitioners to Media • Public policy act as local market spokespeople, leveraging the personal heart health story of U.S. Olympic swimmer Dana Vollmer to secure national media interest, • Data protection and privacy integrating with our Government Affairs partners to invite elected officials to visit the no-cost screenings and spread the word to their local constituents, and amplifying our commitment with paid social media content.
16 Building Healthier Communities Performance Targets Over the past several years we have established 23 measurable, time-bound performance targets to track progress against our goals and strategic priorities. Below is a snapshot of our progress. You can read more about our work to achieve each target throughout this report.
Target: Increase enrolled Target: Establish colleagues investing in Target: Increase pharmacist MinuteClinic partnerships a health savings account outreach to educate youth with five VA Health Care (HSA) and average HSA and families by reaching Systems by 2022 account balance by 5% 750,000 individuals by 2020 by 2022
2018 Progress: In 2018, we built upon our 2018 Progress: On track to meet our goal 2018 Progress: “One Choice Changes footprint, launching pilots in California and Texas by 2022 Everything” curriculum delivered to nearly 450,000 teens and parents
Target: Achieve a 10% Target: Achieve a 3% Target: Reach 5 million decline in new youth decline in the national youth youth with tobacco-free smokers by 2020, compared smoking rate by 2020, messaging by 2020, to 2015 baseline compared to 2015 baseline compared to 2015 baseline
2018 Progress: 20% decrease in new youth 2018 Progress: 1.7% decline in the national 2018 Progress: We have reached more smokers since 2015 youth smoking rate since 2015 than 9 million youth with smoking prevention messaging
Target: Double the number of tobacco-free educational institutions by 2020, compared to 2015 baseline
2018 Progress: In 2018, 15% of schools had gone tobacco-free
17 Leading and Inspiring Growth Performance Targets Over the past several years we have established 23 measurable, time-bound performance targets to track progress against our goals and strategic priorities. Below is a snapshot of our progress. You can read more about our work to achieve each target throughout this report.
Target: Increase participation Target: Increase the Target: Provide in-person, in Colleague Resource number of hours our classroom training sessions Groups (CRG) to 10% of colleagues volunteer by for 100% of mid-level our workforce by 2025 10% year-over-year leaders by 2019
2018 Progress: In 2018, 4% of our workforce 2018 Progress: The value of volunteerism 2018 Progress: 44% of current mid-level leaders participated in a CRG, up from 3.43% in 2017 increased by 43% have benefited from our leadership program
Target: Colleagues will Target: Increase the Target: Hire another collectively complete at average participation rate 5,000 registered apprentices least 2 million hours of across all 401(k) plans for by 2022 compliance training eligible colleagues by 2020 every year
2018 Progress: In 2018, colleagues completed 2018 Progress: In 2018, 45.4% of our colleagues 2018 Progress: At the end of 2018, we had hired 2.06 million hours of compliance training contributed to their 401(k) plans more than 3,200 colleagues through this program
Target: Increase our Target: Increase our Target: Achieve review and annual spending with Tier I annual spending with Tier II acknowledgement of our diverse- and women-owned diverse- and women-owned Human Rights Policy from suppliers to $1.5 billion suppliers to $1 billion 100% of colleagues by 2019
2018 Progress: By the end of 2018, we had 2018 Progress: In 2018, we increased 2018 Progress: By the end of 2018, 99% of exceeded our 2020 Tier I spending target our spend with diverse Tier II suppliers to colleagues had reviewed and acknowledged $746 million the policy
18 Protecting Our Planet Performance Targets Over the past several years we have established 23 measurable, time-bound performance targets to track progress against our goals and strategic priorities. Below is a snapshot of our progress. You can read more about our work to achieve each target throughout this report.
Target: NEW: By 2023, we Target: NEW: By 2030, will ensure that 70% of our Target: Reduce water use reduce our absolute scope 1 suppliers by emissions in retail operations for new and 2 GHG emissions by establish their own science- construction by 20% in 2020 36% from a 2010 base year based reduction targets for their scope 1 and 2 emissions
2018 Progress: This is a new target in 2018 2018 Progress: This is a new target in 2018 2018 Progress: Achieved 20% reduction in our standard prototype stores
Target: Ensure 100% Target: NEW: By 2023, our Target: Source all palm oil of paper procured is fleet will reduce empty miles in our store brand products sustainably sourced by 2.5 million, compared to from verified, responsible by 2020 a 2018 baseline sources by 2020
2018 Progress: In 2018, 96% of the paper 2018 Progress: This is a new target in 2018 2018 Progress: 97% of our store brand our company used was sustainably sourced suppliers had either become members of RSPO or obtained Rainforest Alliance certification
Target: Our colleagues will log 10,000 “green actions” on our online colleague engagement portal by 2020
2018 Progress: Colleagues have logged more than 6,000 green actions
19 Building Healthier Communities
Building Healthier Communities 20 Our Top Accomplishments Building Healthier in 2018 Communities At CVS Health, our purpose is helping people on their path to better health – and we’ve never been better Brought the Pharmacists Teach Prescription for Parents positioned to do so. As we combine with Aetna, we are program to 26 new states, creating a new, innovative health care model. We are delivering 134 presentations transforming the health care experience and investing in community health at the local level.
With a presence in thousands of We’re creating bold solutions that combine communities across the country, and new technologies, business models and 4.5 million customers in our stores each partnerships, all to better interact with Delivered $5.3M in free day, we recognize how difficult it can be for patients and give providers a more complete health care services through people to address their health challenges. picture of their health. Through our scale, Project Health As a health care innovation company, we capabilities and resources – and building on are committed to delivering patient-centric our legacy of community investment – we are and locally-focused care that is affordable, making community health and wellness accessible, simplified and seamless. central to our charge for a better world.
Introduced MinuteClinic Virtual Care to provide patients with quality, convenient care via mobile app or desktop computer
Building Healthier Communities 21 Transforming the Health Care Experience
As the front door to health care, we work every day to simplify a complex system and help people get better, more affordable care, right in their own neighborhoods. In our 9,900 retail locations, 1,100 walk-in clinics, and through health services and plans, we are increasing access to lower-cost, quality care; introducing programs and services that support chronic disease management; and championing healthier lifestyle decisions. And we are helping patients and consumers identify the best ways to improve their health – when and where they need it. We believe that highly personalized experiences are most effective in preventing and managing costly and complex health challenges. This means making the health care system more connected and manageable and expanding access to skilled providers.
Building Healthier Communities 22 Increasing Accessibility The MinuteClinic Virtual Care Through the CVS Health-Veterans and Affordability program provides the same quality Administration program, veterans can Care for Our Veterans through MinuteClinic of care administered at MinuteClinic contact a VA-run triage help line and “We are proud to have As the largest provider of walk-in clinics and extends our reach with health care when clinically appropriate, VA nurses in the country, we are continuously professionals who are following offer eligible veterans the options worked closely with the innovating to improve the patient evidence-based guidelines. CVS Health to receive care at participating VA on the local and experience and expand MinuteClinic also has a comprehensive quality MinuteClinic locations for treatment of national levels to ensure services. Today, more than 50 percent program, including chart reviews to minor illnesses and injuries. Additionally, our walk-in clinic of the U.S. population lives within ensure quality of services. Based on MinuteClinic has integrated information ten miles of a MinuteClinic. Offering the initial consult, a Video Visit may lead technology with the VA, allowing programs deliver high- evening and weekend hours, and to a subsequent in-person appointment MinuteClinic to make patient data quality care to veterans with most services costing less than to address concerns only properly available to the VA via the eHealth when and where they $100 – as much as 90 percent less assessed face-to-face. Unlike most Exchange, so the VA has the full record need it. The new law than urgent-care centers and hospital telehealth providers, MinuteClinic can of any medical services provided during emergency departments – millions connect patients to a store location, the MinuteClinic visit. These programs provides opportunities of patients depend on us for accessible seamlessly extending services within have served more than 3,500 veterans to serve even more of our and affordable care. the same system. over the last three years, most nation’s veterans across commonly treating conditions such the country, increasing Expanding Our Reach By the end of 2018, the MinuteClinic as ear infections, sinus infections, Through Virtual Care Virtual Care program was available in 18 and cough. Veterans’ average in-clinic access, reducing wait In 2018, we took an important step states and the District of Columbia. We wait time remains under 30 minutes, times for minor illnesses, forward to reach more people with the plan to implement the program in every and in quality surveys, veterans have coordinating patient care, expert care provided by MinuteClinic. state where telehealth is permitted, and reported a very positive experience. and integrating In partnership with telehealth leader the services will be covered through Teladoc, we introduced our MinuteClinic insurance later this year. In 2017, we set a new CSR performance information technology. Virtual Care platform to provide patients target to form partnerships with five VA We look forward to with quality, convenient care at Ensuring Care for Our Veterans health care systems by 2022. In 2018, continuing to partner with reasonable costs via a mobile app The comprehensive health care services we built upon our footprint of Phoenix, the VA and to sharing the or desktop computer. The service provided by MinuteClinic positions AZ and Northern California, launching connects patients, ages 2 years and CVS Health to make a meaningful pilots in Santa Clarita, CA and Corpus experiences we have up, to certified health care providers difference in the lives of America’s Christi, TX to help achieve our goal. garnered through our through video-enabled consults, instead 19 million veterans. To provide our We were also proud to support the work together.” of just telephonic, to address minor nation’s heroes with the high-quality, enactment of the VA Mission Act, which illnesses, injuries and skin conditions. convenient care they deserve, we have enhances veteran access to community — Sharon Vitti, Senior Vice We will continue to add services that invested in a strategic partnership care through the VA. President and Executive are appropriate for the virtual setting. with the U.S. Department of Veterans Director, MinuteClinic Consults are $59, less than the average Affairs (VA) since 2016. in-person doctor visit, and available 24 hours a day, seven days a week.
Building Healthier Communities 23 MinuteClinic 1M+ flu shots in 2018 administered
5.2M patient visits
94% patient satisfaction rate
Building Healthier Communities 24 Responding to Community • Expanded our efforts to administer Health Care Needs the mainstream flu shot to children, We are constantly expanding reaching nearly 13,000 toddlers MinuteClinic offerings to address the aged 18–35 months. specific health care needs of all the communities we serve. In 2018, we: • Shared vaccination information with 16 state immunization registries to • Increased focus on prevention advance public health. and management of chronic care, including diabetic retinopathy to Making Optometry prevent disease progression among Care More Accessible customers who have diabetes. As part of our commitment to meeting We also expanded abilities for community health needs, we continue more in-clinic tests to support the to make access to optometry care management of chronic disease more convenient. In 2018, our optometry and medication adherence. operations expanded to a total footprint of 36 locations in six states. Our team • Identified 66 MinuteClinic locations of 150 professionals served more than near universities and colleges where 5,000 patients with eye exams, vision we will expand services. The goal of tests and contact lens or glasses fittings this new offering is to deliver high- and evaluations. We also partnered with quality care to college-aged adults MinuteClinic to introduce a new diabetic who may have limited access to care retinopathy service and address the Women’s Heart Health while attending school. In addition leading cause of blindness in patients to the standard services provided at who have diabetes. As part of our continued support of the American Heart MinuteClinic, we will also include Association’s Go Red for Women movement, we extended expanded sexual and women’s health our commitment to women’s health in 2018 by offering services and age-appropriate screenings and counseling services. no-cost “Know Your Numbers” heart health screenings for the second year at MinuteClinic locations any Wednesday • Piloted Flublok®, a new influenza in February, including Valentine’s Day. We also created an vaccine that does not use eggs, opportunity for customers to support women’s heart health antibiotics or live influenza virus in the manufacturing process, at by donating to life-saving cardiovascular research and 100 MinuteClinic locations. We education at the register at CVS Pharmacy® stores during administered an estimated 4,000 the month of February. Flublok shots to patients.
Building Healthier Communities 25 Supporting Our Patients tailored solutions for patients managing representing 3.4 million members. • The member’s care manager will with Chronic Disease chronic conditions. Expanded diabetes- The program uses advanced analytics also have access to the member’s As we transform the health care focused clinical services include to identify members with diabetes and information from their engagement experience for all patients, we pay screenings, maintenance appointments, target appropriate interventions. A in the Transform Diabetes Care special attention to the needs of and annual assessments. More than certified coach develops and helps program and can coach based off patients with chronic diseases who 20 percent of the store is dedicated to execute personalized management of that information. seek care more frequently. We continue health services, including new durable plans for Type 2 diabetes patients based to invest in the development of smart medical equipment and supplies. on their pharmacy data and electronic Creating Comprehensive and robust solutions to address the health record information. The patients Programs for Complex Conditions health impacts and escalating costs Care Concierge professionals act use at-home, connected glucometers Another way we are reducing costs related to chronic disease in the U.S. as the connection point inside the for glucose readings, which their coach and enhancing patient care is through Our efforts include expanding preventive HealthHUB location, helping patients can monitor to offer help as needed. the development of comprehensive care and treatment for chronic navigate options and connect with the The program also ensures patients programming designed specifically for conditions, improving medication services they need. On-Demand Health receive prescription refill reminders, complex chronic conditions like kidney adherence, coordinating care across Kiosks help customers measure and in-person counseling on diabetes disease and cancer. the healthcare system, engaging track their blood pressure, weight and management, and comprehensive patients where they are, and offering body mass index (BMI), and digital tools diabetes visits at MinuteClinic In 2018, we introduced a program healthier product options at our stores. will help them progress once they leave locations at no out-of-pocket cost. to support patients with End Stage the store. The design of the HealthHUB Renal Disease (ESRD), a disease that Piloting Solutions through location also includes Wellness Rooms, By 2021, we plan to offer an affects nearly 700,000 Americans. HealthHUB® available for colleagues and community enhanced diabetes program that Taking a staged approach, our program Our new HealthHUB concept stores are partners to host group events like health combines CVS Health’s local and seeks to slow the progression of a cornerstone of our work to transform classes, nutritional seminars, and pharmacy care with Aetna’s care ESRD and reduce associated the health care experience. Debuting benefits education. management, targeting, analytics hospitalizations. Beginning with early in February 2019 at three locations in and other capabilities, resulting in disease identification and patient the Houston, TX area, HealthHUB Personalizing Care Solutions a best-in-class diabetes and chronic education, the program will follow with locations are piloting several programs Our Transform Care® programs offering. The enhanced program will the development of a comprehensive to support patients in managing chronic continue to deliver frequent and derive from the current Transform home dialysis program, for both conditions and drive medical cost highly personalized care to millions Diabetes Care model, making for hemodialysis and peritoneal dialysis. savings. Through HealthHUB locations, of CVS Caremark® members who a seamless transition and member Understanding that longer, more we are identifying the most effective and are managing a chronic condition. experience for clients who wish to frequent hemodialysis treatments often scalable solutions to introduce across The programs combine patient-related adopt the enhanced product. Features lead to better outcomes, we will initiate our footprint and provide easy access to health and pharmacy data with drug of the enhanced product may include: a pivotal clinical trial of a new home services – in patients’ local communities cost management strategies that make hemodialysis device in support of and on their schedules. care more effective, affordable and • Aetna’s care managers can a planned U.S. Food and Drug easy to navigate. provide a single point of contact Administration (FDA) submission HealthHUB locations bring together a for members with chronic conditions to obtain market clearance. full suite of support, including pharmacy, Transform Diabetes CareTM, introduced regardless of which conditions nutrition, MinuteClinic and health- in 2016, has since been adopted by members have. focused product offerings that provide more than 230 CVS Caremark clients,
Building Healthier Communities 26 HealthHUB “We believe that transforming the consumer health care experience begins with creating a new front door to health care. Our new HealthHUB locations are just that – helping to elevate the store into a convenient neighborhood, health care destination that brings easier access to better care at a lower cost.”
— Alan Lotvin, Chief Transformation Officer, CVS Health
Building Healthier Communities 27 We will select new program participants foundation of multi-drug regimen prior Our ScriptPath® prescription for anti-diabetics and 12 percent by determining who is most at risk authorization (PA) for physicians and management system helps patients for cholesterol therapy. for kidney disease and progression patients. Novologix helps drive cost- understand and manage their to kidney failure, as identified through effective regimen selection by medications, improve the effectiveness Optimizing Sites of Care medical and pharmacy claims data determining treatment coverage that of their medication regimens and drive Coram® CVS Specialty Infusion and predictive analytics algorithms, meets treatment plan needs. better patient safety and outcomes. Services provide patients with the in accordance with HIPAA. Our The ScriptPath Prescription Schedule infusion care they need in the location Accordant Care nurses will engage Improving Medication Adherence expanded in 2018 with new prescription that’s right for them. Our more than these individuals to educate them on We design medication adherence labels and helpful information included 2,000 clinicians provide care to nearly their risk level, important tests they solutions that simplify complex on prescription bags. The prescription 200,000 patients annually for a range of should consider taking, and the need medication regimens to help patients schedule, new labels and bag tags complex conditions including immune to see a nephrologist. This team better manage their chronic conditions. use color-coded and easy-to- deficiencies, neurological disorders, will work with individuals as they Managing varying dosing instructions understand icons to communicate digestive disease and serious infections. progress toward ESRD. and tracking side effects can be what time of day medications should challenging for many patients. We have be taken. Clear refill instructions Infusion therapy delivers medication We also work with our health care committed to improving medication facilitate reordering, a simplified dosage through a catheter into a vein, and many partners and clients to help manage adherence and reducing the costly and schedule makes directions clearer, patients can receive this care safely and the cost of oncology care while ensuring detrimental effects of non-adherence and easy-to-find prescription notes effectively in the comfort of their own access to vital therapies for patients. by providing meaningful solutions. relay important information. homes rather than more costly and less Our approach promotes evidence- These solutions have resulted in: convenient hospital or clinical settings. based cancer care, lower-cost but CVS Caremark’s Pharmacy Advisor Our teams work to meet the patients’ clinically equivalent treatment options, • An 11.4 percent adherence program is another patient care health needs as soon as possible after and a holistic patient care model that improvement for patients receiving model helping to improve adherence they are discharged from the hospital, helps patients adhere to therapy. An CVS Specialty® CareTeam support, rates. Available to CVS Caremark or when such support is needed as part important component of our cancer which involves pharmacists and members diagnosed with certain of their overall treatment regimen. care approach is helping providers stay nurses who are specially trained chronic conditions, the program up-to-date with the latest research in chronic conditions. provides key information about For patients coming out of the hospital, and advancements, a challenge in the prescribed therapy when members we know that can sometimes be a fast-paced field of oncology. • An 8 percent improvement in are most receptive to these messages: fragmented and cumbersome process. rheumatoid arthritis adherence face-to-face when filling a prescription Patients need to focus on getting better In 2018, we partnered with the leading through Specialty Connect®, which or by phone from the Pharmacy and maintaining their health regimen, oncology organization National enables specialty prescription fills Advisor Call Center when members so we’ve built a high-touch personalized Comprehensive Cancer Network at CVS Pharmacy or by mail. choose home delivery. Through care model and invested in technologies (NCCN) to provide physicians with a tool Pharmacy Advisor, more than 32 million to support patients. Through preferred to access the latest evidence-supported • A 6 percent improvement in personal counseling interventions partnerships with hospitals, our Coram information. Treatment Guidelines from adherence through ScriptSync®, have been delivered, which has teams can receive the most up-to-date the NCCN are integrated into Novologix, which makes it easier for patients improved patient medication information on patients as they’re being CVS Health’s proprietary technology to refill all their prescriptions at adherence by 10 percent for discharged, which enables us to provide platform, and serve as the clinical one time. hypertension medication, 9 percent them with the care, support and
Building Healthier Communities 28 education they need as quickly or therapeutic alternative with “Until now, patients haven’t had the appropriate tools available as possible. In 2019, we’re implementing equivalent efficacy of treatment. to them to help them manage these costs. We are committed to machine learning readmissions risk finding the right drug at the lowest possible cost for patients modeling to help identify patients at • If the patient may be able to to ensure they are able to access and stay on the medications higher risk for hospital readmission save money by filling a 90-day they need. That’s our promise.” who may require additional support prescription rather than a and interventions. 30-day prescription. — Kevin Hourican, Executive Vice President, CVS Health and President, CVS Pharmacy Making Prescription If generic or lower-cost alternatives Drugs More Affordable are not available, the Rx Savings prescription medications, and nearly foremost responsibility to ensure the We’ve developed the most Finder identifies other potential savings 90 percent of members spending less quality and safety of our products comprehensive program in the industry options for eligible or uninsured than $300, even as adherence improved and services. We continue to invest to ensure that rising prescription drug patients, where allowed by applicable to its highest level in seven years. in training, processes, and technologies prices are not a barrier to adhering laws and regulations. We have also deployed value-based to ensure the programs and systems to treatment plans and achieving better contracts that more closely tie the in place across our operations meet health. At the pharmacy counter, at the We’re also helping CVS Caremark outcomes of a drug to its final cost. the highest standards. doctor’s office, and through solutions members save by reaching their These strategies have been deployed provided by CVS Caremark, we’re providers with prescription benefits for rheumatoid arthritis, non-small Through engagement with independent combining our vast expertise with new information at the point of prescribing. cell lung cancer, breast cancer and industry experts, including the patient technologies to develop innovative Our proprietary real-time benefits tool high cholesterol. These innovative safety organization PSO Advisory, we solutions that help patients manage powers a database of clinically mapped approaches are now in place for more are continuously evaluating our quality prescription drug costs. drugs, providing the prescriber easy than 21 million member lives. and safety procedures and advancing access to member-specific pharmacy performance metrics and safeguards. The CVS Pharmacy Rx Savings Finder benefit and drug cost information. In addition to our efforts to make enables our 30,000 retail pharmacists prescription drugs more affordable, we Ensuring Quality and to seamlessly evaluate savings It continues to be a priority for us to help also publicly voiced our support of new Safety in the Pharmacy opportunities for patients at the keep prices down for members. For government policies to reduce the cost Every prescription we dispense pharmacy counter. The tool is expected example, in 2017, despite manufacturer of prescription drugs. We believe more undergoes a multi-step clinical to produce an average of $420 in price inflation near 10 percent, we were needs to be done, and we are well- and quality assurance review by additional annual savings for eligible able to keep drug prices nearly flat for positioned to implement many of the a pharmacist, and all our pharmacy patients, and shows pharmacists: CVS Caremark clients at 0.2 percent. government’s key proposals focused on operations follow comprehensive quality The combination of nearly flat drug price improving competition, ensuring better assurance processes for prescription • If the prescribed medication is on growth with low drug utilization growth negotiations, incentivizing lower list safety. These processes come in many the patient’s formulary and is the resulted in a reduced drug trend for prices and lowering out-of-pocket costs. different forms, including: lowest cost option available. commercial clients of 1.9 percent – the lowest level in five years. Out-of-pocket Maintaining Focus • On-screen computer messaging • If there are lower-cost options costs for members also declined, with on Safety and Quality covered under the patient’s pharmacy three out of four members spending less As patients turn to CVS Health for • Bar-coded prescription labeling benefit – such as a generic medication than $100 out-of-pocket for their expert care and counsel, it’s our
Building Healthier Communities 29 • Electronic prescribing compounding medications. For example, they are now outfitted • Automated prescription filling with a one-piece medical suit when working with medications to help • Electronic pill imaging ensure a sterile environment.
• Quality procedures for compounded Emphasizing Product prescription items Quality and Transparency When consumers select one of our • Drug utilization reviews store brand products, they can trust that what they see on the label is • Quality assurance training for what they get. We use PurView, all pharmacy staff a monitoring tool that accesses a database to screen all store brand We have also developed a two-step food ingredients, label claims and verification process that separates nutritional specifications to ensure data entry/drug utilization review and they comply with regulations and product verification steps for pharmacy CVS Health policies. Our increased staff, and enhanced pharmacist visibility into product ingredient profiles communication to escalate the most enables us to deliver compliant and important messages, such as those accurately-labeled products. This Safeguarding Pediatric Patients related to drug-to-drug interactions. also helps us ensure our suppliers In 2018, we armed our field leaders are adhering to our restricted In a recent study, researchers found that more than with monthly campaigns focused on substances list. 80 percent of parents made at least one dosing error when safety topics, coupled with relevant measuring out liquid medication for their children. Most trainings, to elevate a culture of patient In 2018, we became the first retailer safety in all our pharmacies. to establish and begin implementation dosing errors occur with fever-reducing pain relievers, of guidelines and processes to followed by allergy medicines and antibiotics. In 2018, Going Above and Beyond for guarantee the quality of our vitamin, we introduced store-brand, over-the-counter single pack Quality and Safety at Coram nutrition, and energy supplement allergy, cold and flu products to facilitate accurate Our Coram infusion pharmacy selection. We’ve committed that, teams compound medications in by the end of 2019, all vitamins and dosage delivery to children. compounding pharmacies across supplements sold in our stores and the country. In 2018, Coram continued on CVS.com® will have completed to advance commitments to high third-party testing to confirm accuracy quality patient services and safe of the ingredients on the label and working environment by continuously to make certain the products are seeking to elevate safety protocols free from any concerning additives and processes for technicians and ingredients.
Building Healthier Communities 30 Elevating the Consumer of which are organic, that are free from Retail Experience artificial flavoring and preservatives Our expansive retail footprint allows us and clearly highlight at least one to positively impact the lives of millions better-for-you characteristic on the of Americans each day, and we work package. In 2018, we expanded the hard to ensure their retail experience is Gold Emblem Abound line to more than consistent with our purpose of helping 160 items, including White Cheddar people on their path to better health. Bite-Sized Quinoa Rice Cakes (Winner of Product of the Year 2019 in the Supporting Healthier Choices Better-For-You Snack Category) and We became the first and only major Blueberry Pomegranate Trail Mix Bites drugstore chain to stop selling tobacco (Winner of the Cooking Light Taste Test in 2014, and since then have been Award) and have an additional 33 hard at work to ensure our consumers items planned for 2019. can always make healthier choices in our stores – whether it’s by providing We have implemented a seasonal better-for-you food options, personal program, Better Choices Made care items that are free from unwanted Simple™, to promote brands like chemicals of consumer concern, Annie’s, Blue Diamond and Kind during or products that support everyday Easter, Halloween, and back-to-school health needs. periods when it can be hard to find healthy food. We also offer a variety of In 2018, we implemented our health- smaller-portion packs of healthier snack focused store design, using a items during back-to-school season. streamlined layout to highlight themes that make healthier shopping easier. Ingredients are another important “Discovery Zones,” located in key consideration for our consumers health categories take a holistic when making purchasing decisions. approach to care and product Our Live Better™ brand offers simple selections, and informational signage health solutions that use only essential guides consumers to easily find an ingredients and are free from artificial appropriate solution. preservatives, dyes, and flavors. In 2018, the line grew beyond children’s Increasing healthier food options is and adult cough and throat relief and a focus at all our retail stores, and we now includes sleep aids and products continue to dedicate 25 percent of that support digestive health. Read front checkout space to these items. more about our efforts to remove Many of our healthier offerings come unwanted ingredients in the from our Gold Emblem Abound Protecting Our Planet section line, which features snack items, many of this report on page 61.
Building Healthier Communities 31 With the 2018 launch of same-day of beauty imagery in CVS Pharmacy compression legwear, orthotics, delivery in six cities, we’ve made it locations nationwide featuring either specialty incontinence, specialty wound easier than ever for CVS Pharmacy the Beauty Mark to indicate that an care and arthritis gloves/supports. customers to receive their prescriptions. image has not been materially altered, These stores have a dedicated, full-time Using the CVS Pharmacy app, or a label noting “digitally altered.” Home Health Care specialist to help customers can arrange for delivery We are working toward 100 percent consumers with product questions, within three hours and include vitamins transparency by the end of 2020. product fittings and special orders. and other select non-prescription In 2018, we added 13 new Home Health items with their orders as well. In early We also engaged key brand partners Care Stores for a total of 61 stores, 2019, three-hour delivery expanded to join us in this commitment to full with plans to expand in 2019. The Beauty Mark to nearly 6,000 CVS Pharmacy locations transparency by 2020, including with more stores to be added Neutrogena, COVERGIRL, Revlon, Improving Colleague Health “Foundational to our work throughout the year. Olay, Almay, Aveeno, Rimmel, JOAH, In addition to helping our customers is ensuring girls have the L’Oréal, Maybelline, Unilever, Burt’s on their path to better health, we are skills and knowledge to Creating New Standards Bees, and Physician’s Formula. equally committed to the health of critically analyze the for Beauty Imagery COVERGIRL Ayesha Curry, our colleagues. For us, being a great As a purpose-led health care company Neutrogena Brand Ambassador Kerry employer means ensuring our messages and images and the second largest beauty retailer Washington, and Revlon Brand colleagues and their families can they receive daily and in the country, we want our consumers Ambassador Ashley Graham already lead healthy lives – in body, mind and reinforcing the importance to see a more authentic and diverse appear digitally unaltered in their spirit. In 2018, we: of valuing their whole representation of beauty. In January respective new campaigns. 2018, we announced our commitment • Committed to no increase in selves. The commitment to transparency for all beauty imagery To extend our impact beyond the employee health insurance premiums CVS Pharmacy has made by the end of 2020 and our effort beauty aisle, we are proud to support employee premiums for the 2018 – through the Beauty Mark to strive toward a more authentic Girls Inc. in its mission to help all 2019 plan year despite a year-over- initiative aligns perfectly representation of beauty by promoting girls become strong, smart and bold. year 5 percent increase in medical and celebrating unaltered imagery. Through multiple cause-marketing and prescription costs. We are to our mission and sends To accomplish this, we made a campaigns with Johnson & Johnson, absorbing the increase for our more a powerfully positive commitment to not materially alter the Procter & Gamble, L’Oréal, and the sale than 100,000 employees enrolled in message to girls that beauty imagery we create for our stores, of limited edition t-shirts, more than the company-sponsored health plan. beauty comes in all forms marketing materials, websites, mobile $500,000 was donated to Girls Inc. apps or social media and introduced the • Implemented a Value Formulary and is a reflection of every CVS Beauty MarkTM, a watermark which Addressing Home Health Care Needs to encourage use of generic drugs part of who they are and appears on imagery that is authentic We created Home Health Care stores when possible to reduce costs while what makes them unique.” and has not been digitally altered. to help patients live healthier, providing the same health benefits. empowered and independent lives. — Judy Vredenburgh, In January 2019, we announced They offer products to assist with • Contributed to health savings President & CEO, Girls. Inc. significant progress toward our goal of improved mobility, bath safety, aids accounts (HSAs) as part of our full transparency, with nearly 70 percent for daily living, bedroom independence, employee benefits package, in
Building Healthier Communities 32 addition to a high-deductible health Our colleagues’ emotional well-being plan. On average, we contribute is just as important to us as their $1,100 annually per enrolled physical well-being, and we believe they colleague. Lower-salaried colleagues should have the resources available receive greater company contribution. to receive confidential support for mental health challenges when needed. • By the end of 2018, the proportion For CVS Health colleagues who work of enrolled colleagues investing 30 hours a week or more, we have made in their HSA was 53 percent, available six face-to-face professional representing a 3 percent decline counseling sessions per person, per since 2017. This is due to acquisitions issue, per year through our Employee where some new colleagues delayed Assistance Program (EAP). This benefit making their contributions. We remain is accessible to colleagues and their on track to meet our goal by 2022. family members and doesn’t require CVS Health medical plan enrollment. While affordability is critically important, so is accessibility. Our Strive well-being We are committed to investing in program offers convenient, low- or benefits and compensation plans that no-cost benefits and activities that are most valued by our colleagues. In make it easier for employees to invest 2019, we will collect colleague feedback in their health at or away from work. to inform a Total Rewards program that Benefits include free flu shots, smoking reflects our evolving organization and cessation support, weight-management incorporates compensation, health and programs, health screenings, and welfare, financial well-being, and family physical fitness activity challenges. support programs. Innovating for Better Health Outcomes in Retail All CVS Health colleagues have access through our mobile app HealthConnect, We are always looking for ways to improve the products our which connects users to well-being consumers depend on most. Wound care products make resources to set and achieve goals. up half of CVS Pharmacy’s first aid category sales, and in In 2018, we also built upon these 2018 we set out to improve our offerings by gaining a deeper investments to our employees through understanding of the wound care process. Partnering with our new paid parental leave program, a design-focused agency, we visited patient homes to learn which allows colleagues to take up to more about the challenges they face and innovations they’d four weeks leave at 100 percent of their pay to welcome a new child into their like to see. With this feedback, we have developed a new home. Learn more about this program bandage that will launch in 2019. and other investments we’re making in our colleagues in Supporting Colleague Health and Well-being on page 52.
Building Healthier Communities 33 Investing in Community Health
Our purpose of helping people on their path to better health begins with our commitment to supporting accessible, affordable and quality care for all patients – regardless of where they live, how much money they have, the language they speak, or the health challenges they face. Our community investment approach aims to fill gaps within our commercial footprint, support underserved populations, and positively impact public health. In January 2019, we announced Building Healthier Communities, a $100 million commitment through our company and the CVS Health and Aetna Foundations, to support this work and make community health and wellness central to our charge for a better world. Building Healthier Communities focuses on the areas where we can leverage our organization’s size and scale to maximize our impact in local communities. Funding from CVS Health and the CVS Health and Aetna Foundations will be invested over five years to support initiatives and nonprofits across three categories: improving local access to affordable quality care; impacting public health challenges; and partnering with local communities on the most pressing health issues. Our colleagues will play a key role in these efforts by supporting awareness of our work and deploying their time, talent and passion to give back to their communities. We are committed to delivering at least $10 million in value of volunteer hours a year to creating healthier communities. Together, we will deliver significant social impacts that support the health of communities across the U.S., including an increase in patient engagement and improving health outcomes in communities we serve. All of this work will build on the strong legacies of community commitment established by both CVS Health and Aetna, along with our Foundations.
Building Healthier Communities 34 Support through the CVS Health and Aetna Foundations
Through the CVS Health Foundation, we make strategic We proudly extend our philanthropic efforts through investments that increase access to health care in the Aetna Foundation, which works to influence the social local communities. A private foundation created by and economic factors impacting health in communities CVS Health, the CVS Health Foundation provides across the country through four main initiatives. support for nonprofit partners, pharmacy schools and our colleagues. The Foundation focuses philanthropic giving in four areas: access to health care for underserved Multi-year collaboration with U.S. News & World Report populations; smoking cessation and youth tobacco to evaluate which communities across the U.S. are prevention; mitigating and preventing prescription drug doing the best job of improving health and to inspire abuse; and local community support. localized action by policy and health officials.
In 2018, the CVS Health Foundation awarded $1 million State and community-based grants to address in new grants to the National Association of Free the national opioid crisis. and Charitable Clinics to support 49 clinics working to improve health outcomes for patients managing chronic conditions.
Grants for local, not-for-profit organizations focused on social determinants of health impacting underserved populations.
Partnering with the National Association of Community Health Centers, in 2018 we continued to fund health centers addressing the opioid crisis in their local communities. A multi-year competition across the U.S. to help 50 communities tackle their most pressing local health issues.
Building Healthier Communities 35 Combating Prescription • Immediate release (IR) before Teach prevention education program, Pharmacists Teach Drug Abuse extended release (ER) step therapy pharmacists go beyond their day-to-day CVS Health has made a commitment responsibilities behind the counter and In 2018, we brought our to help address the abuse and misuse For clients adopting utilization into classrooms to educate teens and of prescription opioids by designing management criteria, the number parents on the dangers of misusing Pharmacists Teach programs and collaborating with of prescriptions covered for a seven-day prescription drugs. program to Metro Youth community leaders, policymakers, law supply or less is now 94.8 percent. Day in Detroit. Our enforcement, health care professionals We will continue to monitor and optimize Since 2015, our pharmacists have pharmacists educated and others to increase community- our utilization management to build volunteered their time to deliver the based educational programs related to on these early results. “One Choice Changes Everything®” attendees on prescription opioid misuse and abuse, create safe curriculum to more than 450,000 teens drug misuse and prescription drug disposal sites, expand CVS Pharmacy also strengthened and parents across the country, with colleagues from access to life-saving antidotes and counseling for patients filling their first a goal to reach 750,000 people by MinuteClinic discussed advocate for targeted and effective opioid prescription, helping them to 2020. In 2018, we proudly expanded policies, locally and nationally. Learn understand the risk of dependence, Pharmacists Teach into Colorado, smoking cessation and more about our opioid response here. importance of safe storage and Delaware, South Dakota and Utah, MinuteClinic services disposal, and recommendations from and to-date, our pharmacists have available to the community. Adopting Utilization the CDC on using the lowest effective delivered more than 9,800 presentations Metro Youth Day, which Management and Strengthening dose for the shortest possible duration. across 48 states, the District of Patient Consultations Columbia and Puerto Rico. has taken place for more One of our greatest opportunities to To support our pharmacists in providing than 35 years, aims to reduce medication misuse is through the best care for patients struggling with Education for parents was a priority area build better relationships the implementation of enhanced opioid opioid-use disorder, in 2018 we offered of focus in 2018 and we began providing between the community utilization management for our new training for retail pharmacists on our curriculum to CVS Caremark CVS Caremark clients, who represent medication assisted treatment (MAT). members. In 2018, Pharmacists Teach and the private sector by 92 million member lives. Statistics The training, developed in partnership brought the Prescription for Parents bringing together metro show that the longer the days supply with TRC Healthcare, the authors of program to 26 new states, delivering Detroit area youth for a of opioids, the more likely a first-time Pharmacists Letter, sought to reduce 134 presentations. day of fun and activities. user is to become a chronic user. In stigma related to MAT and arm line with the Guideline for Prescribing pharmacists with strategies to work Safe Medication Disposal Opioids for Chronic Pain issued by the with patients, providers and colleagues Increasing access to safe medication U.S. Centers for Disease Control and in providing the most appropriate and disposal in local communities helps Prevention (CDC), updated standards compassionate care. clear homes of unused medications that for CVS Caremark members, unless could be diverted, abused, contaminate prior authorization is given, include: Pharmacists Teach about the the water supply or end up in landfills, Dangers of Prescription Drug Misuse if disposed of improperly. In 2018, we • Seven-day supply limits for acute Our pharmacists are on the front lines drastically increased the number of safe pain where appropriate of our work to reduce prescription drug medication disposal sites, adding abuse and their commitment to helping 750 units in CVS Pharmacy locations. • Morphine milligram equivalent communities combat opioid misuse In addition, we continued to work with (MME) quantity limit is inspiring. Through our Pharmacists The Partnership™ at Drugfree.org to
Building Healthier Communities 36 make drug collection units available • In-store signage and radio to law enforcement agencies. Local messages that highlight the law enforcement agencies can apply availability and accessibility of online for a disposal unit. Through naloxone and seek to remove the this program, we have donated nearly stigma around substance-abuse 950 units to police departments disorders and treatments. across the country. In total, the more than 1,650 safe medication units • Enhanced counseling for we have installed or donated nationwide CVS Pharmacy patients, have collected more than particularly those with higher 480,000 pounds, or 217 metric tons, doses of prescription opioids, of unwanted medication. about the availability and importance of naloxone. We also helped raise awareness of the importance of proper drug disposal CVS Pharmacy also began accepting through participation in the U.S. Drug and automatically applying Enforcement Administration (DEA) a coupon for NARCAN nasal spray National Prescription Take-Back Day for patients without insurance, biannual events. In 2018, more than through our partnership with Adapt 100 CVS Pharmacy locations joined Pharmaceuticals. The resulting other community sites around the out-of-pocket cost of $89.99 for country to host law enforcement the spray is the lowest net price Prescription Drug Abuse take-back events in April and October, available on the market for patients allowing the public to safely dispose without insurance. We also work to increase awareness of the dangers of of unwanted medication. prescription drug abuse and misuse by leveraging our In addition to educating patients Increasing Naloxone Education, on the importance of naloxone, we communications channels reaching millions of customers Access and Affordability have worked for years to increase each day. In January 2019, we participated in the National CVS Pharmacy continues to expand the availability of naloxone at Institute on Drug Abuse (NIDA) Drug and Alcohol Facts its industry-leading program to provide CVS Pharmacy without requiring an Week and donated in-store radio and receipt messaging patients with education and access individual prescription. As a result of to naloxone, the lifesaving opioid collaboration with state lawmakers to inform customers and direct them to online resources. overdose-reversal drug. Our enhanced and local advocates, today we’re proud We also partnered with Viacom to promote Listen, an patient education campaign, consistent to offer access to naloxone without initiative developed in partnership with the Surgeon with the Surgeon General’s Advisory a prescription to CVS Pharmacy General and the nonprofit organization Facing Addiction on Naloxone and Opioid Overdose patients in 48 states. issues in April 2018, includes: focused on breaking down the stigma of addiction through an in-store radio donation.
Building Healthier Communities 37 Supporting Addiction Recovery We plan to expand Aetna’s 2018 pilot Programs for At-Risk Patients program, “Guardian Angel,” which As part of our commitment to fighting provides Aetna members who recently the opioid epidemic, the CVS Health experienced an opioid overdose with Foundation made a $2 million support from a clinician specializing commitment in support of federally- in substance use disorders. The qualified community health centers clinician connects with these members to increase access to medication- to provide them with support to prevent assisted treatment and other recovery a future overdose. Since the program’s services. We partnered with the launch, more than 400 patients have National Association of Community successfully engaged with clinicians Health Centers (NACHC) to convene who connect them with treatment a panel of experts that developed options, identify resources in the local a protocol of best practices for community, and encourage them community health centers on provider to seek support with their primary prescription guidelines, medication- care physician. assisted treatment, behavioral health, and collaboration with other community Expanding Preventive Care organizations to treat and prevent Through Project Health prescription drug abuse among Our Project Health campaign connects at-risk patients. multicultural communities with large numbers of uninsured or underinsured Through this commitment, in 2018 the residents to no-cost comprehensive CVS Health Foundation provided grants health assessments that detect early to 12 additional community health risks for chronic conditions. Since its centers across the U.S. to reach nearly founding in 2006, Project Health has 350,000 patients and support 115 delivered more than $127 million in physicians working to increase access free health care services to nearly to medication-assisted treatment. 1.7 million Americans. These screenings are often how an estimated one-third Our investments also support efforts of attendees first become aware of to ensure effective protocols for a health concern or condition. opioid prescriber practices, strengthen and systematize partnerships with specialists and community-based organizations, and help create safe, judgment-free environments for all patients.
Building Healthier Communities 38 Project Health 550 77K+ in 2018 events participants
176K 4.3K biometric smoking cessation screenings counseling sessions
40K $5.3M referrals for worth of free a flu shot medical services
Building Healthier Communities 39 As part of Building Healthier on their path to better health is to help Communities, we will expand Project those who smoke quit and ensure those Health to reach more underserved and who don’t, never start. underinsured communities. Our goal is to reach 180 million people in We were proud to be the first – and 16 U.S. markets and Puerto Rico, for continue to be the only – national a projected consumer value of $8.5 pharmacy chain to remove tobacco million. The expansion will also do more products from our stores. In addition to screen for the social determinants of to investing in cessation programs health, including family, education, for people of all ages, we have made housing and access to fresh food. significant investments in tobacco prevention initiatives for youth. That’s Project Health participants who receive why CVS Health and the CVS Health abnormal screenings are referred Foundation made a five-year, $50 million to treatment and advised on follow-up commitment called Be the First, which care. For uninsured and underinsured aims to deliver the first tobacco-free patients, we provide a directory of generation. Be The First brings together low- and no-cost primary care options. the nation’s leading anti-tobacco and We also offer an Individual Health youth-serving organizations to support Access Plan with an explanation education, advocacy, tobacco control of screening results, including a and healthy behavior programming comparison to target numbers, and that not only focuses on the use of nutrition and fitness suggestions. More combustible cigarettes, but also than 87 percent of patients who attend addresses the skyrocketing rate Project Health events report following of e-cigarette use and vaping up with their primary care physician among youth. and were significantly more likely to proactively discuss their blood 2018 saw a dramatic rise in youth pressure, BMI and blood sugar levels. tobacco use, according to the FDA and CDC. For the first time in several years, Delivering the First the percentage of high school students Tobacco-Free Generation who are current cigarette smokers Part of our commitment to building increased. More than 3.6 million middle healthier communities is helping people and high school students were current live tobacco-free lives. As we continue e-cigarette users, according to the to support patients in managing chronic latest report, an increase from more conditions, one of the best ways we can than 1.5 million students the previous support the health of our communities year. In addition, youth who use and fulfill our purpose of helping people e-cigarettes are using them more
Building Healthier Communities 40 frequently and using flavored products rapid growth of e-cigarette use among more often than last year. youth. Key highlights included:
To help combat these alarming trends, • Through partnerships with the CATCH we awarded, through the company and Global Foundation and Stanford the Foundation, more than $4 million in University, we developed curriculums grants in 2018 to organizations that and campaigns to address the provide an array of programming that dangers of e-cigarette use among support our Be The First focus areas, youth and to help students including youth tobacco and e-cigarette understand how to develop healthy prevention in classrooms and coping and refusal skills. communities across the country; supporting clinicians with trainings • We developed an innovative and resources on screening youth for campaign with DoSomething.org, tobacco use; helping youth become aimed at banning flavors in tobacco-free advocates in their own e-cigarettes, as research shows communities; and creating more this is one of the leading reasons smoke-free college campuses across that youth try e-cigarettes for the the country. first time. Later in 2018, the FDA announced that they would begin Through these programs, partnerships placing tighter restrictions on the and strategic investments, we have sale of flavored tobacco products, reached more than 9 million youth including e-cigarettes. with smoking prevention messaging. The CVS Health Foundation has • We launched a new partnership also supported a total of 228 colleges, with the American Academy of Family universities, women’s colleges, Physicians to train clinicians on the historically black colleges and dangers of ENDS (electronic nicotine universities, and community colleges delivery systems). to implement smoke- and tobacco-free policies, including 82 schools in 2018. CVS Health remains steadfast in our commitment to helping the next E-cigarettes are threatening to addict generation be the first tobacco-free a new generation, and reverse the generation. We will continue to invest enormous, decades-long progress in best-in-class programming that our nation has made in reducing youth provides our communities with the tobacco use. As a result, in 2018 tools they need to live smoke-free. we focused our partnerships and investments on halting the use and
Building Healthier Communities 41 Leading and Inspiring Growth
Leading and Inspiring Growth 42 Our Top Accomplishments Leading and in 2018 Inspiring Growth As a health care innovation company, the way we do business has far-reaching impacts on the health of Provided opportunities for 2,800+ youth to participate in millions of Americans and the economic mobility of myCVS Journey Pathways to thousands of communities across the country. As we Health Care Careers continue to grow, we are committed to creating value for all our stakeholders, including our shareholders, clients, partners, communities and colleagues.
Our colleagues’ dedication to helping our stakeholders have entrusted to us, Drove a total economic impact people on their path to better health is the meeting or exceeding applicable regulatory of $5.8 billion and supported driving force behind our work to transform compliance and voluntary standards, 38,000+ jobs through our the health care experience. In turn, our and using our expertise to advocate for supplier diversity program commitment to them spans a best-in-class solutions to our country’s most pressing rewards package, opportunities to advance health care challenges. We continue their careers at every level, and an inclusive to uphold our commitment to having workplace. We must have a workforce a responsible supply chain with respect that is representative of the diverse for human rights and the livelihoods communities we serve and are constantly we impact around the world. bringing a wider range of perspectives Achieved nearly 100% to our company. By leading and inspiring growth in every facet of our business, we are colleague review and We conduct business with integrity, positioning our company for continued acknowledgment of our transparency and accountability. This success and deepening our ability to Human Rights Policy includes protecting the valuable information create positive social change.
Leading and Inspiring Growth 43 Inspiring the Next Generation of Health Care Innovators
A diverse, skilled workforce is at the core of our strategy to transform health care delivery. Our workforce development programs and recruitment strategies leverage the exceptional talents available in our local communities to ensure CVS Health colleagues serve as the face of health care for generations to come. We invest in youth education and career training, provide quality employment opportunities for people of all abilities and support our nation’s veterans as they transition into civilian life. These programs are made possible through collaboration with state and federal agencies, schools, universities and community organizations. Across our company in 2018, through workforce development programs and other recruiting efforts, we hired nearly 85,000 colleagues. We also welcomed more than 13,450 youths in full- and part-time summer positions. To date, our efforts have helped more than 120,000 people transition off public assistance and into meaningful employment opportunities.
Leading and Inspiring Growth 44 Creating Opportunities training, as well as pre- and post- colleagues also receive training at the Growing with for Youth placement retention support. At the end RLCs, with more than 11,000 people CVS Pharmacy With some of the best talent in the of 2018, we had hired more than 3,200 having participated in 2018. industry, we have a unique opportunity colleagues through this program. Kaylee Merrick is a cashier to expose youth to a vast number Welcoming Individuals and stock clerk who works of careers in health care. Our STEM- We continue to identify ways to reach of All Abilities enriched, nationally recognized more prospective apprentices, and We believe in breaking down at a CVS Pharmacy program, myCVS Journey Pathways our newest program in Maryland – the employment barriers for individuals location in Virginia. Kaylee to Health Care Careers, introduces state’s first for pharmacy technicians of all abilities. Since 2015, we’ve graduated from our training students to career opportunities in and pharmacy managers – provides hired nearly 7,000 colleagues with program at the mock pharmacy services; professional structured training through our Regional disabilities, who bring valuable and management; medicine and nursing; Learning Centers (RLC) in Washington, diverse life experiences to their pharmacy in Fishersville, and IT, analytics and engineering. D.C., and District Heights, MD. Once roles with CVS Health. VA, where she used her In 2018, more than 2,800 youth apprentices complete the training, they time to develop the participated in the program, nearly are eligible to apply for a position In 2018, we expanded on this customer service skills half of whom engaged in the pharmacy at one of our more than 220 retail commitment and opened seven track. We extended the program’s locations in the state. mock pharmacies at rehabilitation necessary to work in a reach through a new collaboration centers around the country through CVS Pharmacy or other with Job Corps, the largest free Our RLCs serve as a hub for job a partnership with the National retail environment. When residential education and job training training and a pipeline for new talent. Consortium of State-Operated asked about her job, she program for young adults that reaches Through our four, fully operational Comprehensive Rehabilitation Centers more than 60,000 students per year. store and pharmacy training locations (NCSOCRC). Mock pharmacies said, “CVS Pharmacy has in Boston, Cleveland, New York City provide opportunities for students open arms to everyone and Investing in Job Training and Washington, D.C., we support that are training for roles as certified they have a lot of patience, To strengthen our workforce and the development of colleagues and pharmacy technicians and retail too. I love seeing and address our nation’s widening skills partner with community agencies sales associates to practice what gap, we train highly capable individuals through a range of workforce they are learning in the classroom interacting with my regular for meaningful careers in pharmacy development programs. Each RLC before entering the workforce. At the customers. Working at care, prescription benefit management, houses classrooms, office space and end of 2018, CVS Health had more CVS Pharmacy has been and retail store management. In 2005, a full mock pharmacy. In 2018, 1,400 than 43 of these training centers an amazing experience.” we became the first employer to launch community members participated around the country, with 29 geared a U.S. Department of Labor Registered in an RLC workforce development toward individuals with disabilities. Apprenticeship program for pharmacy program, with many transitioning to technicians. By 2022, we plan to hire positions within CVS Health. Retention 8,000 registered apprentices and rates among CVS Health colleagues provide these new colleagues with who participate in an RLC program classroom and online instruction, are 35 percent higher than for professional mentorship, and on-the-job colleagues who have not. Current
Leading and Inspiring Growth 45 Helping Military Veterans employment facility in Fort Bragg, Find Meaningful Careers NC in 2018. The Talent Connect As thousands of veterans and their Center (TCC) guides veterans and their families return to civilian life each day, spouses through CVS Health career transitioning to meaningful post-military opportunities nationwide. Since its careers can be challenging. CVS Health opening, 61 people have graduated is dedicated to recruiting, hiring, from the TCC program, and 75 percent training and retaining veterans to ensure of participants who completed the their invaluable skills and expertise required courses and training have are part of our talent pipeline. People been hired by CVS Health, with the with military experience are employed remaining majority using skills gained at all levels – including as store to find other employment. associates and managers, pharmacists and MinuteClinic nurses, and leaders Our commitment to America’s 19 million in our corporate offices. Since 2015, veterans includes providing access we have hired 15,000 colleagues with to high-quality, affordable care and military experience and more than providing colleagues throughout our 4,000 military spouses. company with opportunities to support veteran causes. Read more about our In 2018, we expanded our involvement partnership with the VA on page 23 of in the Department of Defense this report and learn how our colleagues SkillBridge Initiative to two military are supporting veterans through our bases: Hampton Roads in Virginia Valor Colleague Resource Group on and Schofield Barracks in Hawaii. our website. Transitioning service members are connected with a CVS Health CVS Health also supports the military colleague to learn about available job community through external opportunities and how their skills partnerships. Last year we provided can translate to a career at CVS Health. 10 college scholarships to military Training includes classroom curricula spouses and family members as part and a 12-week internship at a nearby of our ThanksUSA sponsorship. Our CVS Pharmacy, followed by a virtual colleagues extend our commitment to job tryout. Once military service is supporting veterans through volunteer complete, veterans participating in efforts, and in 2018 helped pack and this program are eligible to apply for ship thousands of care packages for any position with CVS Health. deployed service members as well as make stuffed bears for the children We celebrated the one-year anniversary of deployed service members in of our company’s training and partnership with Operation Gratitude.
Leading and Inspiring Growth 46 Ensuring a Best-in-Class Workplace
Our efforts to provide a best-in-class workplace are focused on attracting and retaining the talented colleagues at the heart of our company’s success. This includes offering a benefits package that is comprehensive, competitive and customizable; programs and tools that improve financial, emotional and physical well-being; a culture that celebrates diverse experiences and backgrounds; and opportunities for all colleagues to grow their careers with CVS Health.
Leading and Inspiring Growth 47 Championing Diversity Each CRG is tasked with identifying to work and we commit to ensuring To build a better world, we are building challenges within our company and our workplace makes this possible. a workforce that is representative of leveraging their unique perspectives This is brought to life through our the communities we serve. Our senior to bring forward solutions. corporate policies, our PRIDE CRG, leadership team champions a strategic and the actions of our colleagues who diversity management model that is Celebrating Religious Diversity believe deeply in equality for the connected to every aspect of our Embracing an interfaith/multi-faith Lesbian, Gay, Bisexual, Transsexual business and includes workplace approach, our FAITH CRG focuses and Queer (LGBTQ) community. representation, colleague engagement, on making all colleagues feel welcome and forward-looking policies and by raising awareness of religious We also believe that LGBTQ consumers programs. Helping share and execute diversity. The FAITH CRG has reached and patients deserve to do business Walking With Pride this model is our Diversity Management a membership of more than 1,000 since with companies that are inclusive and Our PRIDE CRG serves as Leadership Council (DMLC), a group its inception in 2015, in large part due to have all of their healthcare needs of cross-functional senior leaders with to the group’s quarterly webinars. met with respect, kindness and dignity. a resource for LGBTQ- oversight from our Board of Directors. These educate, equip and empower To ensure we provide the best possible related issues for our The DMLC provides guidance on the CVS Health colleagues on issues related experience for the LGBTQ community, company and communities. tools and resources we use to equip to faith, religion and deeply held beliefs in 2018, we re-communicated the As a sponsor of the 2018 colleagues to promote diversity across in the workplace and marketplace. Human Rights Campaign’s Resource the company. Guide for Pharmacists and Pharmacy NYC Pride March, many A FAITH CRG 2018 webinar, “December Staff to our colleagues. This guide, CVS Health colleagues Diversity Networks for Professional Dilemma: Managing the Challenges of along with a variety of internal training walked and volunteered. and Personal Growth the Holiday Season,” brought together resources, such as “Understanding Recounting the event, Our 14 Colleague Resource Groups the FAITH CRG and our Merchandising the T in LGBTQ,” helps equip colleagues (CRGs) promote diversity across the Team to learn more about religious to offer LGBTQ-inclusive care and Marco Benjamin, an HIV company, facilitate communication differences and the ways in which those positive experiences for all customers advocate who works with with senior leaders, and help us solve differences often impact employee and patients. Through inclusive care, our HIV patients in business challenges. More than and customer relationships during the we can more effectively fulfill our New York, New Jersey and 10,000 colleagues across 45 states holiday season, both in stores and purpose to help people on their path and Puerto Rico support their offices. Topics covered included holiday to better health. Pennsylvania, shared, professional and personal growth greetings, adjusting product offerings “Many of my colleagues through participation in a CRG, to be reflective of community cultural who are volunteering are representing a wide variety of preferences and celebrations, dietary from MinuteClinic and from professional, cultural and personal restrictions, holiday scheduling and interests. In 2018, 4 percent of respectful communication. our Specialty business in our workforce participated in a CRG, Fairfield, CT. The fact that up from 3.4 percent in 2017. Our goal Standing with Our LGBTQ most are not in the LGBTQ is to increase participation to 10 Colleagues and Communities community but are percent of our workforce by 2025. Our colleagues perform at their best when they can bring their whole selves here to support us is really amazing.”
Leading and Inspiring Growth 48 We received a number of third-party recognitions for our leadership in diversity and inclusion in 2018:
DiversityInc Top 50 Companies Best Place to Work for LatinaStyle 50 Report 2018 for Diversity Disability Inclusion Included as part of annual Top 50 Named to this list for the second For the second consecutive year, report which recognizes excellence consecutive year, we climbed we received a perfect score of in leadership programs, employee 10 spots in 2018 as a result of hiring 100 on the annual Disability benefits, and Latina representation and promoting more women and Equality Index (DEI). for Fortune 1000 companies. minorities into mid- and senior-level leadership roles, compared to other Top 50 companies.
DiversityInc #10 in Top 2018 Employer of the Year, Military Times Best Employers Companies for Supplier Diversity Goodwill Industries of Greater for Vets 2018 In recognition of our focus on New York and Northern New Recognized among Top 100 expanding our engagement of Jersey, Inc. companies for culture, minority- and women-owned For sharing the vision of Goodwill recruitment, and policies that businesses in our supply chain. NYNJ that all work environments be serve veterans, service members, accessible, equitable and inclusive and military families. for individuals with disabilities.
2019 Bloomberg Gender-Equality Human Rights Campaign U.S. Veterans Magazine Index (GEI) Foundation’s 2018 Corporate Best of the Best A measure of gender equality across Equality Index (CEI) Best of the Best companies internal company statistics, employee Received a perfect score of offer employment, business, policies, external community support, 100 percent on the national and supplier opportunities for engagement and gender-conscious benchmarking survey and report veterans, transitioning service product offerings. on corporate policies and members, disabled veterans, practices related to LGBTQ spouses, and veteran business workplace equality. owners. CVS Health was recognized for both Top Veteran-Friendly Companies and Top Supplier Diversity Programs.
Leading and Inspiring Growth 49 Speaking Our Patients’ Language performance and help them grow increase in classroom enrollment for Growing Pharmacy Careers We are making health care more their careers with CVS Health. We our program, Foundations for Leading Our 30,000 retail pharmacists serve as accessible to Spanish-speaking consistently deliver innovative and and Learning (FLL), and an average trusted, local community-based health communities by growing our bilingual technology-focused trainings, and of 538 participants for the program’s care resources to millions of patients workforce and offering products in 2018, CVS Health colleagues 10 virtual reinforcement workshops each day, making their continued and services that take cultural participated in 14 unique career throughout the year. Leader Essentials growth critical to our success. In 2018, differences into account. development and leadership training (LE), the virtual counterpart to FLL we launched a self-directed Pharmacy programs. This culture of learning for leaders who cannot attend in-person Emerging Leaders Program that Now in its second year, our Spanish starts on the first day of employment classrooms, grew by 35 percent provides skills-development immersion internship program requires through a robust online orientation in 2018. Each of the more than opportunities and prepares emerging pharmacy students to work at a program that pairs new hires with 450 colleagues who participated in pharmacy leaders for promotion. There CVS Pharmacy in a Spanish-speaking seasoned colleagues. Additionally, we LE completed nine hours of virtual were 398 individuals who joined the community. Interns have access to provide access to LEARNet, our online classroom training, totaling more than program in 2018, and to-date, 217 Rosetta Stone, the language learning education portal that provides a tailored 4,100 hours of development for the pharmacists have been promoted program, and attend a virtual Spanish colleague curriculum as well as a skills cohort. Both programs enhance the to roles in pharmacy management medical terminology course. Upon enhancement library. In 2018, more than leadership proficiency of our first-level following their participation in the pharmacy degree completion, graduates 20,000 colleagues completed skills leaders, covering topics such as program. In 2018, 955 incumbent of the program are placed in a enhancement courses, accessed effective communication, setting pharmacy managers were also given CVS Pharmacy location in Florida, e-books or completed video modules. expectations and coaching. the option to participate in additional California, Texas or Puerto Rico. self-development opportunities. Developing Leaders from Within Since July 2016, 745 mid-level leaders The CVS Health Foundation provides Our training and development strategy have completed our foundational We also offer specialized training for scholarships to pharmacy, nurse emphasizes leadership training and Transitions to Advanced Leadership our pharmacy technicians, who are practitioner and physician assistant readies colleagues to take on (TAL) program, a collaboration with often the first point of contact for our schools across the country to support increasingly important roles while Duke Corporate Education, which patients and central to delivering on future health care workers. The funds achieving our business objectives. In provides targeted training to mid-level pharmacy effectiveness. Our self-paced are given directly to the qualified 2018, we experienced growth in our leaders to prepare for senior roles at LearnRx Pharmacy Technician program schools, which award a diverse group high-potential, first-level leader the company. In 2018, 248 colleagues takes a blended learning approach with of students through their internal rotational program and also fulfilled our attended the classroom portion of the didactic learning, classroom learning scholarship processes. At least enrollment goals for our high-potential program, each dedicating 22 hours and on-the-job training with an internal 25 percent of the scholarships are mid-level and senior leader programs. to development. Once TAL participants coach. We had nearly 18,000 pharmacy provided by the schools to bilingual Our high-potential programs target complete the classroom program, they technicians complete this program and diverse candidates. colleagues that possess the innate have the option to take part in eight in 2018. Upon program completion, they skill sets and motivation necessary to virtual workshops on additional continue working with their pharmacy Advancing Careers through position CVS Health for future growth. leadership topics throughout the year. managers to review assessment results Training and Development In 2018, these virtual classes averaged and identify opportunities for continued We support all our colleagues with We also grew participation in our more than 100 participants per session. skills development. development opportunities that foundational first-level leadership We will continue to grow this program strengthen their skills, improve their programs. We saw a 17 percent to support all eligible mid-level leaders.
Leading and Inspiring Growth 50 In addition, we are creating career Pharmacy Technician Certification Helping Our Colleagues Awards and Recognition path opportunities for colleagues Board (PTCB) exam, a requirement Give Back already working in our retail stores. in many states that technicians must Our colleagues play a meaningful role In 2018, Chief Learning In 2018, nearly 5,000 colleagues were become nationally certified within in advancing our purpose and delivering Officer magazine promoted from front store positions a period of time post-hire. The program on our CSR commitments. In early 2019, to pharmacy roles, with 20 percent of will ensure colleagues have access we pledged a minimum of $10 million recognized CVS Health pharmacy technician roles sourced from to a comprehensive library of online in value of volunteer time each year as a LearningElite Silver front of store. Retail-to-pharmacy materials and instructor-led virtual to building healthier, more sustainable Finalist for continuously colleagues have experience in two store training classes. communities. We support these efforts improving learning and positions and can enable more flexibility through a robust volunteer platform, in scheduling. By the end of 2018, We are constantly evaluating new where colleagues can identify volunteer development for our we had more than 8,200 cross-trained programs that can make colleague opportunities and engage with local organization and industry. colleagues, capable of working training more impactful and engaging. partner organizations to address unmet Training Magazine listed both front of store and in the In 2017, we successfully tested an health and social needs. us #27 on their Top 125 pharmacy, who can be considered alternative training solution, a mobile for permanent pharmacy roles as platform that uses science to deliver In 2018, our colleagues invested more list, which celebrates they become available. personalized learnings based on the than $5.3 million in time, a 43 percent organizations that colleague’s learning needs. Learning increase from $3.7 million in 2017. champion training and Offering Innovative Training experiences last only a few minutes Our colleagues dedicate their time to employee development Programs and are delivered daily, using spaced supporting thousands of organizations As health care innovators, we create repetition to increase knowledge in the communities we serve each year. tied to corporate strategic training and development programs that retention. In 2018, we expanded our In 2019, we expanded our colleague goals and business impact. are tailored to meet the unique needs pilot and deployed this innovation engagement program to offer new of colleagues across our enterprise. in more than 100 retail stores across initiatives to colleagues that allow them Texas, South Carolina and Louisiana, to apply the skills developed through For MinuteClinic, in 2018 we made with participation from around 1,900 their professional careers to make the training process for donor sample colleagues. Content is focused on a difference in their communities collection more consistent across our pharmacy services. Feedback from through a range of activities: nearly 4,000 providers by revamping colleagues includes positive remarks their shared website to provide learning around their engagement and • Through CareerVillage.org, on demand, easy-to-find information, improvement in learning. The results a crowdsourcing platform that and interactive and engaging training. also showed that the training innovation provides personal career guidance These updates resulted in $130,000 in stimulated social learning. We are to students at massive scale, our payroll savings and saved 2,600 hours pursuing opportunities to incorporate colleagues offer virtual career advice spent on webinars each year. this innovation as a regular standard to underserved youth related to on how we train colleagues. pharmacy education, medical issues, To help grow internal talent, Omnicare work-life balance and more. piloted a virtual preparation course for pharmacy technicians to pass the
Leading and Inspiring Growth 51 • Our Nurses Board Service Program, Most notably in 2018, we: facilitated by the Nurses on Boards Coalition, allows our MinuteClinic • Invested tax savings created by nurses to develop leadership skills the U.S. Tax Cuts and Jobs Act into and address the health priorities wages and benefits improvements, of the communities they serve. totaling $425 million annually. With these savings, we did not increase • From advising on HR policies insurance premiums, per-paycheck and labor practices to reviewing contributions, deductibles and contracts and providing guidance out-of-pocket maximums for medical, on organizational governance, the dental and vision care for the 2018– Community Outreach CVS Health Legal team has a wide- 2019 plan year to ensure access to range of specialized skills that provide affordable health care; launched For the second year in a row, CVS Health has been support to nonprofit organizations. our parental leave plan; and increased named an honoree of The Civic 50 by Points of Light, Our comprehensive legal pro-bono the starting wage rate for hourly the world’s largest organization dedicated to volunteer program includes resources and colleagues to $11 an hour. service, for being one of the most community-minded opportunity-matching assistance. • Created a new paid parental leave companies in the United States. The Civic 50 provides • Since 2005, our pharmacists have program. The program, which went a national standard for superior corporate citizenship delivered presentations on the into effect April 1, 2018, is available and showcases how companies can use their time, dangers of prescription opioid abuse to all full-time employees who skills and other resources to improve the quality of life to more than 400,000 teens and welcome a new child into their home parents through our Pharmacists through birth or adoption. Colleagues in the communities where they do business. Teach program. Read more about can take up to four weeks away this program in the Combating from work at once or in week-long Prescription Drug Abuse section increments at 100 percent of their of this report on page 36. pay to ensure the newest addition to their family gets off to a strong start Supporting Colleague in life. Since its inception, more than Health and Well-Being 4,000 colleagues have utilized this We offer a robust rewards package new benefit. that attracts and retains one of the best workforces in the country. Our benefits and compensation packages take a holistic view of colleague health and are reflective of our commitment to making health care more affordable, accessible, simple and seamless.
Leading and Inspiring Growth 52 A Top Employer for Healthy Lifestyles CVS Health was presented with a 2018 Best Employers for Healthy Lifestyles Gold award by the National Business Group on Health for having one of the best workforce health and well-being programs in the nation. The award, also bestowed upon Aetna in 2018, recognizes exceptional commitments to improving overall well-being, productivity, and quality of life for employees. Contributors include job satisfaction, community involvement, financial security, emotional and physical health, and social connectedness.
Leading and Inspiring Growth 53 • Increased colleague retirement Prioritizing Colleague Safety The Value of Parental Leave readiness by contributing to our The health and safety of our colleagues When Emma Grace was born, her dad, CVS Pharmacy 401(k) match each pay period versus is paramount for overall employee quarterly. At the end of 2018, and company wellness. A strong safety colleague Edwin Cruz, was there – that day and every 45.5 percent of our colleagues were program earns the trust of our day for the first four weeks of her life. “It was a blessing contributing annually to their 401(k) colleagues and reduces risks and costs. to be able to bond with Emma, and to be home to help plans with their own savings, keeping In 2018, we focused on strengthening Christy, my wife, and our three kids,” shares Edwin, us on track to achieve our target of the mentoring and coaching skills of increasing the average participation our business partners and field leaders a store manager in New Orleans who took advantage of rate to half of all eligible colleagues to continue building upon our safety our parental leave policy in 2018. “I was surprised and so by 2022. culture. We worked with internal subject grateful when I heard about this option. It meant I could matter experts to identify root causes be with my family, and I didn’t have to worry about • Supported colleagues in paying and improve performance when off student loan debt. Colleagues workplace incidents occur. And, when finances. I’d never taken more than one week of vacation have refinanced more than 750 loans an opportunity to improve worker safety at a time. When you’re a store manager, your store is your totaling more than $90.6 million in was identified, we embraced it. baby, too, and you never want to be away for long,” says student loan debt, with our Edwin. “But, I was also worried about Christy managing pharmacists having the highest rate At our distribution centers, we amplified of participation in the program as they efforts to mitigate incidents and everything. I’d seen her overwhelmed and sleep deprived tend to accrue high postsecondary increase efficiencies. Our New Hire when our other kids were born. It’s a big job giving birth education costs. The program has Safety Program offers additional to a baby and running a family.” saved colleagues on average an training, a buddy system and supervisor estimated $24,000 in interest costs. check-ins, and has reduced new hire workplace incidents by 43 percent. In 2018, we began a new on-site education and service program through which select distribution center leaders and safety business partners collaborated to identify policies, procedures and processes that could improve their own operations. One participating distribution center reduced its incident rate to zero following the site visit and solution implementation.
Leading and Inspiring Growth 54 Planning for the integration of Aetna into CVS Health in 2018 required thorough analysis of safety risks to ensure our robust safety culture will apply across our new company.
In 2018, we continued to move existing center standard. Our occupational safety trainings and programs forward. illness frequency rate for employees in 2018 was 3.26. CVS Health follows • We completed the implementation the U.S. Occupational Safety and Health of retail step ladders to assist Administration (OHSA) guidelines on with activities such as stocking recordable accident injuries and shelving units and decreased illnesses; incident rates account for retail store colleague injuries by claims requiring medical attention. nearly 40 percent. The safety management program • Needle stick trainings and safer utilizes the ANSI z-10 as a guide auto-retract injection systems have to meeting business needs and led to a 58 percent reduction in requirements, and it incorporates accidental needle sticks since OSHA, department of health, fire program implementation in 2017. codes and life safety codes to assure compliance with regulatory agencies • We conducted training on new and promote colleague safety. workplace violence guidelines and we are working to make these Colleague Safety Program trainings available in Spanish. Omnicare has made great strides integrating a colleague In 2018, we had zero high gravity safety program that includes new safety colleague citations. Our recorded incident rate for on-boarding training, monthly director calls, and quarterly 2018 was 3.39, an 11 percent reduction safety coordinator calls to address exposure/loss over our 2017 incident rate and 12 percent lower than the industry retail trends and solutions. store standard. Our accident frequency rate in distribution centers was 4.79, down 10 percent over 2017 and 10 percent lower than industry distribution
Leading and Inspiring Growth 55 Safety Beyond the Workplace Our Family Matters CRG empowers colleagues to become informed, successful and engaged in the workplace with support and resources that promote the growth and development of healthy families. In June 2018, we hosted several family safety programs that focused on home emergency safety (e.g., fires and severe weather), including having an evacuation plan with a designated place to meet if separated during exit.
Leading and Inspiring Growth 56 Continuing Our Best-in-Class Governance
CVS Health upholds best-in-class corporate governance practices. We achieve our long-term financial and strategic objectives by conducting business transparently and with integrity. Our strong leadership team and Board of Directors are poised to guide our new company forward. Under their leadership, we maintain the highest level of performance in areas of great importance to our corporate reputation including compliance, privacy, information security, public policy and supply chain responsibility. Our Board of Directors guides our policies and practices. They work closely with our senior leaders to ensure we operate responsibly and deliver on our purpose while executing our business strategy. We enhanced our Board of Directors to include deep insurance company oversight experience through the addition of four new directors from Aetna. We also established an Investment and Finance Committee to oversee the company’s capital allocation and investments. The renamed Medical Affairs Committee (previously called Patient Safety and Clinical Quality) will take on a broader scope of responsibilities to advance accessible, affordable and quality health care, patient safety and experience, and patient safety, including matters related to opioid safety. Our Corporate Governance Guidelines provide the framework for effective governance, outline performance expectations of our Board of Directors and management and promote the interest of our shareholders. We proactively address the needs of our shareholders through regular engagement. In 2018, we conducted shareholder engagement meetings during the fall off-season, and also engaged with shareholders that proposed resolutions for inclusion in our proxy statement.
Leading and Inspiring Growth 57 Helping Reshape By lending our voice to policy Our Information Security organization our privacy measures meet Public Policy conversations on drug pricing, we continues to: established standards. We leverage our unique expertise hope others will work with us to to advance public policy and legislation put patients first. • Maintain focus on identifying and • Implemented new trainings and to build healthier communities by thwarting attempts to socially procedures for physical mailings addressing health costs, quality and Advancing legislation that addresses engineer colleagues by deploying to remove reference codes access. We work with federal and state the opioid crisis is another area where regular education and simulations from envelopes. policymakers, industry peers, the we leverage our expertise to make to the workforce, aiding their abilities business community and nonprofit a difference in our communities. Across to detect fraudulent and potentially • Invested in a new compliance tool and civic partners to ensure people the country, we’re collaborating with malicious electronic communication to identify trigger points for sensitive get the right care at the right time, community leaders, policymakers, law and transactions. information. This helps address legal in the right setting. enforcement, health care professionals requirements and assess patterns and many others to expand opioid • Deliver continuous monitoring related to privacy incidents across We recognize the importance of political education, encourage safe prescription services through the Security the company. disclosure and accountability and drug disposal and advocate for new Operations Center and actively continue to rank in the highest tier within policies that tackle this public health participate in the Health Information Promoting a Strong Culture these categories by the CPA-Zicklin challenge. Learn more about our work Sharing and Analysis Center. of Compliance Index, with a score of 91.4 percent in in this area in the Combating Our commitment to compliance starts at 2018. This annual, non-partisan study Prescription Drug Abuse section • Deploy next generation technology the top. Our Chief Executive Officer and is used as a resource for shareholders, of this report on page 36. designed to detect and Board of Directors have established an journalists, academics, business leaders prevent malicious compromises enterprise-wide culture that promotes and others seeking to understand which Safeguarding Information of CVS Health systems and the importance of compliance. public companies lead in transparency and Protecting Privacy information assets. and accountability. We safeguard the invaluable information Our compliance program incorporates of our patients, customers and In 2018, our privacy team: the seven elements of an effective A major focus of our public policy colleagues through increasingly compliance program as outlined in work in 2018 focused on engaging sophisticated systems and the • Prepared the company to meet the Federal Sentencing Guidelines and policymakers around the important dedicated work of our Privacy and the EU General Data Protection generally applies to all colleagues, role of the PBM in controlling drug Information Security teams to identify Regulation (GDPR), a set of rules vendors and the Board of Directors. costs. We advocate for many solutions and mitigate risk. that give individuals more control that could be easily implemented within over their personal data. This strong culture of compliance is the existing statutory and regulatory In 2018, we maintained and renewed reflected in the completion rate of framework to reduce overall prescription our independent certification of • Received third-party validation that our annual Code of Conduct training. drug costs in the system and for essential security practices and our organization aligns with SOC 2’s In 2018, 99.9 percent of our colleagues patients, while also increasing completed audits of our Information (Service Organization Controls for completed this training. Additionally, medication adherence. When Security controls in accordance Service Organizations) five trust in 2018 we benchmarked our Code of medications are affordable, patients with guidelines established by the principles and criteria for professional Conduct against peer competitors are more successful adhering to their American Institute of Certified Public assurance services. Alignment and other healthcare companies to medical regimen, which leads to Accountants (AICPA). gives our business partners the ensure our Code of Conduct remains improved overall health and lower costs. confirmation and confidence that practical and relevant.
Leading and Inspiring Growth 58 Compliance training remains a focus for all CVS Health suppliers in the areas at CVS Health. In 2018, we continued of ethics and governance, environmental to enhance course designs that and social impacts and management streamlined content and provided and transparency. the most timely and relevant training materials to our colleagues. Generating Economic Impact with Suppliers Colleagues, business partners, patients Diverse suppliers help us add and anyone else with concerns about distinctive goods, services and our company can call our anonymous capabilities to our business offerings and confidential Ethics Line. Each call and create a competitive advantage. to our Ethics Line is investigated and Our Supplier Diversity team partners the company promptly addresses any with our business leaders to integrate potential compliance issues. supplier diversity into procurement activities, and with national Responsibly Managing organizations to identify and develop Our Supply Chain diverse businesses. We are proud As one of the nation’s largest to have one of the leading supplier companies, our supply chain has the diversity programs in the country. power to generate positive economic and social impacts around the globe. By the end of 2018, we had exceeded In the U.S., we are committed to our 2020 Tier I spending target, investing in diverse suppliers in our having spent $1.6 billion with diverse local communities and have built Tier I suppliers. We also increased a leading supplier diversity program our spend with diverse Tier II suppliers to support that effort. Around the to $746 million and remain on track to world, we work to ensure that every achieve our 2020 goal of $1 billion. person who participates in our supply We increased our spend in 2018 by chain is treated with the dignity and supporting diverse- and women-owned respect they deserve. suppliers through their certification process and expanding our use of We believe that responsibly managing diverse-owned pharmacies. In total, our supply chain contributes to our we partnered with businesses through ability to provide quality, safe products our diverse supplier program to drive and services that contribute to people’s a total economic impact of $5.8 billion health and well-being. In early 2019, we and support more than 38,000 jobs introduced our Responsible Sourcing and more than $532 million in wages Standard, developed in collaboration across the country. with Business for Social Responsibility (BSR), which establishes expectations
Leading and Inspiring Growth 59 In 2018, CVS Health conducted more than 1,000 audits in approximately 40 countries through our Ethical Sourcing & 2018 Ruby Award Customs Trade Partnership Against Terrorism Program (CTPAT). Winners
The Ruby Award Star Acting as a Convener Vice President of Workforce Strategies providers identified four zero-tolerance of the Year Winners Bringing diverse voices to the table for and Chief Diversity Officer David Casey issues. Non-compliance findings are suppliers who have dialogue and collaboration makes us led a fireside chat to discuss how identified during the audit result in demonstrated exemplary a better company and is a key tenet strategic diversity management helps immediate cancellation of outstanding of our approach to problem-solving. In companies drive business growth, purchase orders and one year of performance, industry March 2018, CVS Health hosted the deepen relationships with customers factory probation. leadership, business Supplier Diversity 2020 Ideation Session and build an inclusive workplace. success, economic to identify new ways to achieve our We are also proud to announce that impact, community 2020 spending targets. The session Supporting Human Rights we have recently joined the Responsible served as a venue to hear from internal Respecting and supporting Business Alliance’s (RBA) Responsible involvement and strong and external voices with diverse internationally recognized human Factory Initiative (RFI). As part of commitment to perspectives. Attendees included rights policies and preventing adverse CVS Health’s Ethical Sourcing and CVS Health’s mission CVS Health business line leaders, impacts in our direct operations is CTPAT program, our suppliers and and values. In 2018, strategic partners, existing and potential a responsibility we take seriously. Our factories have been invited to leverage diverse suppliers and representatives Human Rights Policy, published in 2016, the toolsets developed by the we recognized NEI Global from national minority councils. outlines our commitment to respecting RBA to support factory continuous Relocation, a Women’s and supporting these rights, including improvement. The online classes, Business Enterprise, We were also proud to host more than basic labor principles, and incorporates offered in multiple languages, will which delivers world class 300 participants at the 2018 Billion our company, subsidiaries and supply help our suppliers and factories address Dollar Roundtable Summit and induction chain business partners. By end of several findings from their audits and relocation management ceremony. The Billion Dollar Roundtable 2018, 99.9 percent of colleagues had facilitate the implementation of more and consulting services, is an organization that recognizes and reviewed and acknowledged the policy, robust internal management systems. and Hammons Paper celebrates companies that achieve a target we met one year ahead of This program offers on-demand training Group, a Minority spending of at least $1 billion with schedule. Colleagues will review and for some of the most critical risks in certified diverse suppliers, primarily acknowledge the policy annually. supply chain manufacturing including Business Enterprise and minority- or woman-owned. The event (but not limited to): health and safety, wholesaler of printing brought together leaders from 29 Billion In 2018, CVS Health conducted more chemical management, environmental and writing paper. Dollar Roundtable companies, than 1,000 audits in approximately sustainability, recognizing forced labor academics, government officials and 40 countries through our Ethical and corrective action planning. diverse suppliers to share best Sourcing & Customs Trade Partnership practices, opportunities and strategies Against Terrorism Program (CTPAT), to continue to grow supplier diversity which monitors supplier compliance programs. CVS Health President and with social, legal and trade security Chief Executive Officer Larry Merlo and standards. Our audit service
Leading and Inspiring Growth 60 Protecting Our Planet
Protecting Our Planet 61 Our Top Accomplishments Protecting Our Planet in 2018 Protecting our planet is imperative to delivering on our purpose of helping people on their path to better health. Climate change is affecting global health, and we believe we can play a meaningful role in helping to Established science-based emissions reduction targets reverse its devastating effects. The latest findings from the Intergovernmental Panel on Climate Change (IPCC) make it clear that bold action is needed today.
We are committed to doing our part, efficiently, provide consumers with more not only because it’s our role as a leader sustainable product offerings and ensure Removed oxybenzone in health care, but because doing so also a responsible supply chain. In 2018, we and octinoxate from our makes us a more innovative organization, strengthened our leadership on sustainability store brand sunscreens and inspires confidence from our investors, issues through continued collaboration with SPF 50 and lower colleagues, partners and customers. with a multitude of partners and experts.
Year after year, we build on the progress we’ve made to run our business more
Recognized among the top 3% of 5,000 companies as a CDP Supplier Engagement Leader
Protecting Our Planet 62 Engaging Internal and External Stakeholders
We advance our sustainability strategy through engagement with our colleagues, business partners, customers, suppliers and industry subject matter experts. We identify ways to collaborate with like-minded organizations on pressing sustainability issues and welcome opportunities to share our perspective with others. We also listen closely to these stakeholders to understand their expectations and ensure they’re informed of our work to tackle big environmental challenges such as addressing climate change impacts, removing chemicals of concern from our products and ensuring a responsible supply chain. Our colleagues care deeply about the health of the planet and support our sustainability efforts through volunteerism and every day actions to embed sustainability at home and at work. Their passion to create a healthier, more sustainable planet, along with their insights and ideas, have helped ignite some of our key initiatives. Our GreenTeam Colleague Resource Group (CRG) promotes awareness, provides education and works to make environmental sustainability a relevant part of every colleague’s role and responsibility. Today, the GreenTeam has more than 1,000 members across the country, a 45 percent increase over 2017, and continues to grow.
Protecting Our Planet 63 CVS Health is a proud partner of In 2018, we: • Were recognized as a CDP Supplier Ocean Conservancy and is a member Engagement Leader for managing of the Trash Free Seas Alliance. • Sought counsel while preparing our climate emissions and engaging Through our partnership and colleague our climate science-based target our suppliers to help address participation in the International Coastal for approval by the Science climate change impacts. Of the Cleanup, we have helped remove more Based Targets initiative (SBTi), 5,000 companies that participated than 2 million pieces of tobacco-related including from suppliers, agency in the CDP’s supply chain program, trash from coastlines in 2018. partners and industry leaders CVS Health was among the 3 percent Cigarettes butts are the most commonly like BSR, CDP and the World awarded a leadership position found items littering our shorelines, Resources Institute. on the organization’s Supplier and hundreds of CVS Health colleagues Engagement Rating leader board. GreenTeam Initiatives across the country joined cleanup • Continued our work to reduce events in their local communities chemicals of consumer concern Partnering with Our Throughout April 2018, to support these efforts. through ongoing collaboration Suppliers the GreenTeam celebrated with The Safer Chemicals, Healthy In 2016, we introduced our supplier Earth Month by engaging To inspire our colleagues to make Families coalition and its Mind award for sustainability and social its membership in a more sustainable choices on a daily the Store campaign. We scored responsibility to recognize our suppliers’ basis, we established a 2020 target a B+ in 2018 on their annual report efforts across our three key CSR variety of environmental for colleagues to log 10,000 green card, the sixth highest score of pillars as well as their partnership sustainability events. actions on our online volunteer portal, the 40 retailers evaluated. with us on advancing our priorities. They hosted webinars CVS Health Community Crew. Green with leading industry actions, such as recycling at home, • Collaborated with the Environmental In 2018, we honored Mars, Inc. turning off water while brushing teeth Protection Agency on regulatory for their efforts as a leader through partners like Ocean or switching to online bill pay, reduce requirements for the disposal innovative partnerships with Conservancy and the personal environmental impacts. Since of pharmaceutical waste, which CVS Health, including collaborating Sustainable Packaging establishing this target, colleagues have bans the use of sewers or landfills with us on three in-store cause Coalition to educate logged more than 6,000 green actions and codifies the standards for marketing campaigns which delivered in Community Crew. Collectively, reverse distribution. nearly $500,000 to important charitable colleagues on approaches colleague green actions have saved causes. They also actively promoted to sustainable living, 3 million gallons of water, avoided • Partnered with DOVE Chocolate and our partnerships through social media shared environmental 224,000 metric tons of carbon emissions, Mars, Inc. for the third consecutive and advertising. Mars, Inc. also stories and tips across our saved 225,000 kilowatts of energy and year to support the livelihoods of collaborated with us to provide avoided 45,000 pounds of waste. female cocoa farmers and promote support to the CVS Health Employee internal communications sustainable cocoa farming. From Relief Fund (ERF), a charity that channels and hosted Collaboration with external July 22 to August 18, we donated provides grants to CVS Health volunteer cleanup events stakeholders and experts strengthens $1 to international humanitarian colleagues in times of hardship. in communities across our sustainability commitments. organization CARE for every purchase of specially marked the country. DOVE Chocolate PROMISES at CVS Pharmacy locations.
Protecting Our Planet 64 Sustainable Operations
We continue to implement new technologies and operational practices to minimize our environmental footprint and contribute to healthier, more sustainable communities. With more than 9,900 retail locations, 22 distribution centers, numerous field offices, and a fleet of 2,500 delivery vehicles, we aim to drive efficiency across all aspects of our business – reducing our carbon footprint, energy usage, water consumption and waste.
Protecting Our Planet 65 1,740 Sustainability retail locations with interior Highlights LED lighting
$1.7M in utility rebate incentives for replacement of rooftop HVAC units
2.5M less empty miles by 2023 compared to 2018
Protecting Our Planet 66 Reducing Greenhouse offered our own resources to support Ensuring Risk Resiliency Gas Emissions them in joining us. Our Enterprise Response and Resiliency program We embrace climate science in determining how best to manage Leveraging the expertise of external identifies and evaluates risk related to our company’s our supply chain impacts. In 2018, partners, including CDP and SBTi, physical assets, operations and colleagues, 24 hours we were proud to establish science- provided invaluable insight throughout a day, seven days a week. These risks include severe based greenhouse gas (GHG) reduction our process. We have continued to weather events, such as hurricanes, flooding, and wildfires, targets that have been approved by share our key learnings with others SBTi, the leading organization in driving so we may all work toward a common as well as other human-caused and technological corporate climate action: goal of corporate leadership on risks to the enterprise. The program has enhanced climate action. our ability to monitor and respond to the increased • By 2030, we will reduce our absolute number of weather-related events, helpi scope 1 and 2 GHG emissions We also continued to reduce our 36 percent from a 2010 base year. GHG emissions in 2018, achieving a 34 percent reduction in carbon In 2018, we established a newly designed 24/7 Operations • By 2023, we will ensure that intensity against a 2010 baseline, 70 percent of our suppliers by a 4 percent improvement over 2017 Center to monitor threats and risk events; coordinate emissions establish their own despite a 1 percent increase in our incident response across the company; and support science-based reduction targets retail square footage. Additionally, our emergency hotline for colleagues and field leaders for their scope 1 and 2 emissions. we saw an absolute emissions reduction to report emergencies, incidents or risk events. The of 29 percent of scope 1 and 2 The key driver of our success in emissions based on a 2010 baseline Operations Center provided coordination and situational establishing science-based targets which means we are on track for our awareness to support our colleagues and customers was our company’s purpose: helping SBT goal of a 36 percent absolute facing earthquakes in Hawaii and Alaska; hurricanes people on their path to better health. emissions reduction by 2030. We and tropical cyclones in the Mid-Atlantic, Southeast and We built the business case for this work achieved these reductions through by demonstrating why it was critical store efficiencies and by mandating Pacific; wildfires and mudslides in California; a volcano to CVS Health’s ability to support the sustainability requirements in new eruption in Hawaii; and winter storms across multiple health of the people and communities construction. We have implemented regions, among other events. we serve. ongoing tracking and measurement practices to capture 2019 progress Robust and thoughtful engagement against our new targets, which will with our supplier partners – particularly be reported in 2020. in our pharmacy supply chain – was also central to our success. We developed With the addition of Aetna and our a strong understanding of where our newly established science-based supplier partners were in their climate target, we are reviewing expanded action journeys, worked with internal opportunities for renewable and business leaders to engage them, and alternative energy strategies for the
Protecting Our Planet 67 short-term and long-term. Aetna energy savings of $600,000. Our new and end-of-life units replaced in existing currently leverages four solar farms building standards dictate that LED buildings meet the latest energy located in Connecticut and Arizona, and lighting be installed in the interior efficiency ratio (EER) and seasonal has in place a purchase program for and exterior areas of all new stores. energy efficiency ratio (SEER) as US Wind eRECs. recommended by the U.S. Department • Extended our reach beyond retail in of Energy. This update provides Electricity 2018 to office campuses and other 12 –15 percent annual energy savings Electricity accounts for approximately facilities. In 2019, we plan to reach compared to previous HVAC standards. 80 percent of our carbon footprint. more non-retail locations, including The outcome of these savings will be In 2018, we used 2.6 million megawatt administrative and production areas, evaluated in 2019. hours (MWh) of electricity, a 4 percent for a true, enterprise-wide approach reduction from 2017, a result of our to lighting energy-use reductions. Additional energy efficiency measures continued LED lighting conversion taken in 2018 included: strategy and efforts to reduce energy Through our Energy Management use in retail locations. Due to extremely System (EMS), used across 95 percent • Integration of white reflective cold weather in many of our locations, of our retail stores, we increased roofs into new and existing stores our natural gas use increased in energy efficiency by controlling lighting, to reduce internal and external 2018 by 16 percent. heating ventilation and air conditioning building temperatures. (HVAC) from a central hub. The non- One of the strategies we have EMS controlled locations use efficient, • Proactive replacement of 259 rooftop implemented to reduce our total stand-alone temperature and HVAC units in Illinois stores, yielding energy use is the installation of lighting controls. $1.7 million in utility rebate incentives LED lighting across our retail stores and a 2,000 MWh reduction in and other facilities. In 2018, we: We also enhanced our controls in 2018 energy consumption for $200,000 to sync lighting with operating hours in energy savings. • Retrofitted 1,740 retail locations with through alarm systems at 500 locations interior LED lighting, which reduced across Connecticut, Massachusetts, • Opened 11 smaller-footprint stores consumption by 75,000 megawatt Pennsylvania and Rhode Island. This to capture energy savings. Our hours (MWh) for estimated savings change, which supports operational 9,000-square-foot stores require of $7.5 million in annual energy costs. needs and implements best practices less land, materials and resources By 2021, we plan to have completed for energy efficiency, reduced than our standard 12,900-square-foot installation of LED interior lights consumption by 2,000 MWh for an stores, and use an average of across all of our retail stores. estimated annual energy savings 25 percent less energy. In 2018, of $300,000. We plan to implement we saved more than $3.7 million • In 2018, we began retrofitting the enhancements in 1,000 more in construction costs using these LED exterior lighting across our stores in 2019. prototypes. We plan to open 18 retail locations and completed 449 9,000-square-foot stores in 2019. upgrades, reducing consumption by Our new building standards dictate that 6,000 MWh for an estimated annual HVAC units installed in new buildings
Protecting Our Planet 68 • Incorporated design and construction deliveries, corporate vehicle travel, receiving the highest carrier rating impacts, reduce costs, and support elements from our 14 Leadership in personal car travel, and rental cars. of Level 1 for emissions control. We regulatory standards. In 2018, we Energy and Environmental Design Other key achievements to improve have also been a SmartWay Shipping diverted 55 percent of our waste to (LEED)-certified buildings as we build fleet efficiency in 2018 include: Partner since 2012. recycling, with 86 percent of the solid new stores and facilities. These waste generated at our distribution elements include water and energy • Reducing drivers’ idle-time to under Reducing Water centers diverted for recycling. efficiency features and sustainable 5 percent, saving 30,000 gallons of Consumption materials. Our store in Falls Church, fuel and more than $100,000 annually. Access to water is critical to the In September of 2018, we launched VA received silver certification in 2018 Idle-time reduction tactics include health of our communities. Though a first-of-its-kind program to address and two additional stores are pending turning off engines during deliveries our operational water use is not a new California law that prohibits LEED certification. and long stops. Savings in 2018 intensive, we use an enterprise-wide retailers from sending organic waste to represent a 78 percent reduction water management strategy to provide landfill. With support from a third-party Transportation in idling time compared to 2016 and each site with tailored guidance to partner, we developed an innovative We continually seek innovative ways equate to total savings of $210,000. reduce consumption. solution for managing excess food for our fleet to use less fuel and reduce products in our stores to prevent them air pollution. Although we have had • The opening of our new retail In 2018, our water usage per square foot from becoming waste. Inventory a backhaul program for many years, we distribution center in Kansas City, MO of retail space decreased by 3 percent, scanning technology in our stores put a greater focus on the program with cuts our fleet time on the road. The and our total water use increased by identifies excess, seasonal or nearly a targeted pilot in late 2016, and ramped 762,000-square-foot LEED-certified 4 percent from 2017 due to an increase expired food and directs CVS Pharmacy up to full-scale support by 2018. The distribution center supports the in our store footprint. Through water colleagues to place the items in a program puts more freight in trucks service and fulfillment needs of more efficiency measures, total water use per designated tote which is transported during return trips to our distribution than 500 CVS Pharmacy locations square foot has decreased 31 percent back to our distribution centers and centers, reducing empty miles driven. throughout the Midwest. Smartly from the 2010 baseline. then to third-party facilities. There, Expanding beyond traditional backhaul, positioned, the facility reduced inedible organic waste is processed we also act as a common carrier for driving distance for deliveries, For new construction in retail to create renewable energy and organic other companies or make additional resulting in significantly reduced operations, we set a target to reduce fertilizer, while quality organics are pickups on inbound trips to distribution carbon emissions and improved water use by 20 percent by 2020. donated to local charities and food centers. Not only do these strategies highway safety. The new center We achieved this goal in our standard banks – a win for the planet and improve fleet efficiency, we are already has also added more than 350 jobs prototype stores by the efficient use of community health. seeing a reduction in empty miles as to the Kansas City area, and dozens irrigation systems and the management a result and have developed a new of additional jobs through work of drought resistant plantings. We In the first four months of this program CSR performance target to build on with local businesses. continue to implement these best pilot, we donated more than 650,000 the progress: practices and evaluate opportunities units of organic products and recycled In 2019, we will implement enhanced with our landscape plans. more than 230,000 units. The program • By 2023, our fleet will reduce routing optimization software to is now live in all retail stores in California empty miles by 2.5 million, compared continue to drive our performance Minimizing Waste and and the value of the product donated to a 2018 baseline. in reducing miles driven and fuel Increasing Recycling in 2018 is estimated to be $2.1 million. consumed. For the ninth year in a row, We are committed to minimizing our We continue to evaluate this program Our total fuel consumption in 2018 our company-owned fleet continued waste and increasing opportunities with the goal to extend it beyond was 11.4 million gallons, including to be an EPA SmartWay Carrier Partner, for recycling to lessen environmental California in the future.
Protecting Our Planet 69 Efficiency Efforts
Efficient systems can have significant environmental benefits and drive down distribution center operational costs. In 2018, we introduced a logistical efficiency measure to our process for pulling items from inventory to fulfill an order at our distribution centers. Our new iPad-to- cart process eliminates the use of paper tickets, while increasing efficiency and accuracy of the products pulled. The new process will be implemented across all distribution centers later this year.
Protecting Our Planet 70 Our cross-functional waste minimization receipts in 2018, which equates to committee introduced new approaches more than 115 million yards of receipt to reduce targeted waste streams paper saved. In addition, by using digital in our retail stores in 2018. These efforts communications with our PBM/ build on previously identified waste Medicare members, we saved nearly minimization strategies, such as $3 million in paper expenses. optimizing the number of SKUs available for sale and modifying the timing We have also scaled back consumer of restocking shelves to lessen product product circulars and other paper- expirations in the targeted category based marketing and are working by 25 percent. to include at least 10 percent post- consumer recycled content in all of the In 2017, we completed the paper we use for direct mail by 2021. implementation of a container In 2018, 6 percent of our direct mail optimization program for our regulated contained recycled content. waste program in our retail stores. From 2017 to 2018, we realized a reduction In addition to reducing overall paper of over seven tons of cardboard and usage, we aim to responsibly source achieved considerable cost savings. paper and use stock composed of recycled content. In 2018, 96 percent Sustainable Paper Solutions of the paper our company used was We are committed to embedding sustainably sourced, and 56 percent sustainability into our sourcing practices of our paper stock was Forest and have made significant Stewardship Council (FSC) certified. Reuse and Recycle Program advancements in our procurement This shift to FSC-certified paper of paper products. In 2018, we used enabled us to use 3,600 U.S. tons less We participate in the Lexmark Cartridge Collection approximately 54,500 tons of paper paper– a difference of 22,000 trees. Program, which recovers millions of printer cartridges in our business operations for routine each year to be reused or recycled. In 2018, CVS Health outputs such as receipts, mailers, fliers, collected 229,010 cartridges, which equates to and internal documents, a reduction of nearly 9,000 tons over 2017. 954,700 pounds of material. The collection created a savings of 950 tons of CO2 equivalent, or 98,523 Our digital receipt program continues to gallons of gasoline use avoided. Of the units collected, be a successful initiative that both saves 65.3 percent were reused and 34.64 percent recycled. paper and engages our customers in our sustainability efforts. By the end of 2018, 5 million CVS Pharmacy customers had enrolled in the program. We sent more than 99 million digital
Protecting Our Planet 71 Sustainable Products and Packaging
Our commitment to a healthy planet extends into our stores and the homes of our consumers. From beauty and personal care products to food and beverage items, we’re dedicated to taking a holistic approach to health. This includes offering products and packaging that consider environmental impacts and are free from unwanted ingredients.
Protecting Our Planet 72 Removing Chemicals nearly 150 items that are free from our store brand products will come from Promoting Sustainable of Concern dyes, alcohol, artificial flavors or verified, responsible sources delivered Packaging Our consumers offer us valuable preservatives. And in 2019, we will through fully traceable supply chains As a nationwide retailer and member of feedback about our products, expand our Earth Essentials® line of by 2020. Through this commitment, the Sustainable Packaging Coalition and highlighting their own desire to protect products, which include sustainability we require our suppliers to adhere to Ocean Conservancy, we are committed the health of their families and the attributes such as hypoallergenic the Roundtable on Sustainable Palm Oil to making responsible packaging planet. In 2017, after asking consumers and the use of plant-based ingredients, (RSPO) Principles & Criteria on palm decisions to protect our planet and for feedback, we began removing to include dryer sheets and multi- oil and palm oil derivative sourcing or meet the needs of our customers. parabens, phthalates, and the most purpose disinfectant spray. the Rainforest Alliance Chain of prevalent formaldehyde donors across Custody. Our store brand suppliers In 2018, we completed an audit of the nearly 600 beauty and personal care In addition to our chemical management have been informed of our new policy more than 500 printers that produce products from our CVS Health, programs, we work to stay ahead of and were required to sign agreements packaging for our store brands portfolio Beauty 360®, Essence of Beauty® and mandated timelines for regulatory that they will follow it. By the end of to understand their current sustainability Blade® store brands. More than 75 requirements. In 2018, we began 2018, 97 percent of our store brand capabilities. Through the research, we percent of these 600 products will be removing oxybenzone and octinoxate suppliers had become members gathered metrics related to printer use reformulated by the first quarter of 2019 from our store brand sun screens with of RSPO or obtained Rainforest of recycled paper, plastic and metal, and the remaining 25 percent will be SPF 50 and lower, and these products Alliance certification. as well as the use of vegetable and reformulated by the end of the year. will be reformulated by the end of heavy metal-free inks. 2019. Hawaii was the first U.S. state Suppliers of new store brand items In addition to these efforts, we to pass a bill banning the distribution containing palm oil are required Based on the research, in 2019 we continue to update our publicly of sunscreens that contain the to demonstrate proof of required will be developing our criteria for available restricted substances list chemicals due to concern for their certification, and all store brand CVS Pharmacy store brand printed by category and educate our suppliers impact on marine environments and suppliers must disclose if their products packaging to create more sustainable on our updated policy and screening residing ecosystems. Key West, FL contain palm oil. We screen products packaging for our products. process. Information about our voted in early 2019 to ban the sale of for palm oil with WERCSmart restricted substances list has been sunscreen containing the same and PurView, our supply chain added to our Store Brands Quality chemicals, concerned about impacts to compliance tools. Assurance Agreement, which the Florida Keys’ barrier reef ecosystem. requires adherence from suppliers. By the end of 2019, we aim for all We employ technological tools, Responsibly Sourcing suppliers of existing store brand including WERCSmart, to help Palm Oil products to have proven they have ensure supplier compliance with In addition to removing chemicals of moved to sustainable sources or our policies. WERCSmart captures concern, we are dedicated to ensuring reformulated their products. We have supplier ingredient information for palm oil is sourced responsibly to help identified 24 store brand products all chemical-based products, helping alleviate the impacts palm oil production that still contain non-sustainably us screen for restricted chemicals. can have on tropical forests, which offer sourced palm oil, and are working invaluable social and environmental with these product suppliers toward In 2018, we also increased the number benefits. We have committed that product adherence by 2020. of free-from products we offer, with 100 percent of the palm oil sourced for
Protecting Our Planet 73 About This Report CVS Health’s 2018 Corporate Social Responsibility (CSR) Report provides an overview of our company’s environmental, social and governance commitments, as well as progress against our CSR-related goals and targets. We are committed to reporting on our CSR performance annually, and this report follows our 2017 CSR Report.
Boundary and Scope Disclosure and Assurance The company may consider having Exchange Commission (SEC) filings, Consistent with previous reports, the CVS Health management is responsible additional content and data in its including those set forth in the ”Risk boundaries for this report extend to for the preparation and integrity of the future CSR Reports externally assured. Factors” section and under the section all United States (U.S.) company owned information in this report. The enterprise This report was produced based on entitled “Cautionary Statement and/or operated facilities, administrative metrics and goals in this report are the Global Reporting Initiative (GRI) Concerning Forward-Looking offices and retail pharmacies for established through a rigorous review Standards. More information on GRI is Statements” in our most recently the corporate enterprise. Company process involving internal subject matter available at www.globalreporting.org. filed Annual Report on Form 10-K operations outside the U.S. represent experts, and we believe this report and Quarterly Report on Form 10-Q. less than 1 percent of the total accurately and fairly represents our Your Feedback We refer readers of this Report to all enterprise and are not covered in this CSR activities, programs and results Your feedback is important to us as we of our SEC filings, including our Annual report. Data contained in this report for the fiscal year ending December continue to look for ways to improve Report to Stockholders, our Form 10-K, covers activities that occurred in fiscal 31, 2018. The report was submitted our reporting and provide you with the Forms 10-Q and any Forms 8-K, which year 2018 (January 1– December 31, to the Nominating and Corporate information you need. Please submit provide important information about 2018), unless otherwise noted. Data Governance Committee of the Board your feedback to [email protected] our business, operations and financial in this report does not include the of Directors for review, and was performance. Before making any operations of Aetna. Aetna will reviewed and approved by members CVS Health Corporation investment or other decision relating be included within the boundaries of CVS Health senior management, Attn: SVP, Corporate Social to the company, all such public filings of our 2019 Report. including our internal Disclosure Responsibility and Philanthropy should be considered in detail. Committee, which is comprised of One CVS Drive, Woonsocket, RI 02895 Content and CSR Materiality management from principal functional 401-765-1500 References in this document to In 2017, we conducted a materiality areas within the company. This report CVS Health products, programs or assessment in accordance with the has not been externally assured or Preparation of this Report services do not imply that CVS Health GRI Standards’ guidance for defining verified by an independent third party. This report contains certain forward- intends to provide all products, material topics. The material topics CVS Health carbon footprint data from looking statements that are subject programs or services across all of inform the content of our reporting and 2016 – 2017 has been externally assured. to risks and uncertainties. Actual results its businesses. Statements regarding CSR strategy. For additional detail, Data from 2018 will be reviewed for may differ materially from those CVS Health’s future direction and intent please see CSR Material Topics. external assurance in the coming contemplated by the forward-looking are subject to change or withdrawal months by an external third-party information for a number of reasons without notice and represent goals and/or by an independent third-party. as described in our Securities and and objectives only. 74 Health is everything®.
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