2019 Corporate Social Responsibility Report
1 Overview People Business Community Planet About
Transform Health
CEO Letter 3 Healthy People 24
CSO Letter 4 Healthy Business 45
Corporate Profile 5 Healthy Community 70
CSR Strategy 9 Healthy Planet 93
CSR Governance 14 About This Report 111
CSR Material Topics 17
Stakeholder Engagement 18 Overview People Business Community Planet About CEO Letter Dear Stakeholders,
As this report goes to press, the outbreak of COVID-19 has changed the way we live and operate our business. The CVS Health® Emergency Response & Resiliency Team and Infectious Disease Response Team have been actively monitoring the current international and domestic environment for coronavirus-related risks and we have responded accordingly through investments to local communities, support for rapid COVID-19 testing, and many more. You can learn about our COVID-19 response here. We remain committed to improving the health and safety of our stakeholders, our communities, and our planet. The remainder of this report describes these efforts.
Our goal is to be the front door to • Attract and Inspire professional development of our of the accolades that demonstrates our health care and CVS Health remains • Optimize Performance and Service colleagues and partners and utilizing commitment to leadership in CSR. focused on helping people on their our scale and expertise as a health Making health care local and meeting path to better health by making health care leader to improve the health of In the pages that follow, you’ll read people where they are, continues to be care more local and simpler. We have our environment. more about how our commitments vital parts of our business. In 2019, four strategic priorities that drive our continue to build on our customer- we launched more than 50 HealthHUB® work to transform the way health care In this report, we are excited to centric approach to health care and locations, offering individuals is delivered across the U.S.: grow and introduce our new CSR strategy, support healthier communities. customized support from our “Care differentiate our businesses; deliver Transform Health 2030 — with four Concierges” and providing space for transformational products and pillars that will guide our efforts over In 2020 and beyond, we welcome health services solutions and services; create a consumer-centric the next decade: Healthy People, the opportunity to collaborate with community gatherings. technology infrastructure; and Healthy Business, Healthy Community our partners, stockholders and other modernize enterprise functions and and Healthy Planet. Our vision for the stakeholders to deliver better health Our Corporate Social Responsibility capabilities. We advanced all four of future is bold and we ask you to join us to our customers, patients, colleagues (CSR) strategy is integral to how we these priorities in the past year. on our journey to transform health. and the communities we serve. deliver on our purpose of helping people on their path to better health. As we integrate with Aetna®, we have Over the next year, we will be Sincerely, Our leadership team and Board of evaluated how CVS Health could make developing and sharing our goals Directors work closely together the strongest impact and best move to deliver on our Transform Health on the advancement of our CSR forward as health care innovators. 2030 CSR roadmap. Over the next roadmap. We also proactively engage To that end, we focused on six strategic year, we will develop key performance with key stakeholders to better Larry J. Merlo imperatives to create unmatched targets and commitments to advance understand their priorities. As we look President and Chief Executive Officer human connections and transform our roadmap. This and other to the future, we have an opportunity the health care experience: commitments are aimed to build on to transform health care for our our strong performance, as evidenced patients, members, customers, clients • Be Local by our position on the Dow Jones and colleagues. To do this, we are David W. Dorman • Lead the Change Sustainability World Index (DJSI World) investing in community health at the Chair of the Board • Make It Simple last year. This honor is shared by only local level to improve outcomes, • Improve Health 317 companies worldwide and just one supporting the economic and
3 Overview People Business Community Planet About CSO Letter Dear Stakeholders,
We are thankful for your continued support of our CSR efforts. This year concludes a decade of hard work and bold commitments and we are excited to start the next phase of the journey with our new CSR framework: Transform Health 2030.
Transform Health 2030 is centered to telehealth for the underserved, in which we live and work by, among giving back their time to improve on four priority areas: Healthy People, personal protective equipment and other things, addressing the misuse the health of their communities and Healthy Business, Healthy Community mental health support for front-line of prescription drugs and expanding they donated more than $12 million and Healthy Planet. These priorities workers and investments in community our education of individuals on worth of volunteer time in 2019. emerged as a result of our robust resilience funds. In addition, we’re potential health risks. Our Pharmacists In our commitment to them, we stakeholder engagement process and working to support our own colleagues Teach program connected with continue to invest in their health and materiality assessment conducted in during these unprecedented times. new communities thanks to our professional development through 2019, including the addition of Aetna. You can learn more about our ongoing collaboration with Discovery comprehensive benefits and robust In this, our 13th annual CSR Report, COVID-19 Community Response, here. Education. In addition, through training programs. We want to provide we’re introducing the key material Project Health and other programs, the best opportunities possible for topics that will chart our course for In 2019, we announced our CVS Health continues to address colleagues to grow their careers with the future. In 2020, we’re working commitment to improving community the social determinants of health CVS Health. toward developing the big, bold goals health and wellness with Building with local wellness campaigns, free we know we’ll need to deliver on our Healthier Communities. Through health screenings and by helping to Thank you for taking the time to learn Transform Health 2030 strategy and strategic relationships and community break down barriers for people so they about our 2019 accomplishments as roadmap. Throughout this report, support, we and our charitable can live fulfilling, healthy lives. we continue on our journey of helping you’ll see how we continue to foundations are investing $100 million people on their path to better health. advance our commitments to build over the course of five years to improve We know the health of the planet healthier communities, mitigate our access to affordable health care is inextricably linked to human Sincerely, environmental impacts and support and positively impact public health health. CVS Health continues to be the economic health of communities, issues like chronic disease and recognized for our efforts to reduce as well as foster the growth and smoking cessation, especially among environmental impacts and I’m proud development of our colleagues. underserved populations. More than to share that CVS Health is part of the Eileen Howard Boone five years after our commitment to Carbon Disclosure Project’s (CDP) Senior Vice President, It’s important to note that as we launch the Be The First initiative, we are as 2019 Climate A List and has been Corporate Social Responsibility this report, we are also actively working dedicated as ever to tackling youth recognized as a Supplier and Philanthropy and Chief to address the current public health tobacco use and reducing vaping Engagement Leader. Sustainability Officer challenge. Through our company and and e-cigarette usage. our foundations, we donating nearly Our positive impacts are possible $50 million to support key priorities, Throughout the past year, we because of the tremendous work of our including addressing food insecurity continued to influence positive CVS Health colleagues. Every day, our among vulnerable populations, access health outcomes in the communities colleagues are living our purpose by
4 Corporate Profile
We’re evolving based on changing CVS Health colleagues are consumer needs and meeting people where they are, whether that’s in the united around a common community at one of our nearly 10,000 local touchpoints, in the home, or in the palm of their hand. Our newest offerings goal of becoming the most — from HealthHUB® locations that are redefining what a pharmacy can be, consumer-centric health to innovative programs that help manage chronic conditions — are designed to create a higher-quality, simpler and more company in the world. affordable experience.
Our Footprint
Headquarters: Woonsocket, RI Approximately 290,000 colleagues in 50 states, the District of Columbia and Puerto Rico
5 Overview People Business Community Planet About
Our Operations and Retail and Walk-in Clinics Front Store Revenues Supply Chain 9.9K ~22% retail locations sales from store and proprietary brands 1.1K walk-in medical clinic 78% (MinuteClinic®) locations sales from national brand suppliers
6 Overview People Business Community Planet About
2019 Financial Results Our employees earned Economic impact and Economic Impact $15.6B $256.8B in wages in total revenues $2.7B $5.6B in benefits to providers of capital $4.4B in income, property and employer taxes in the U.S. $150M+ in charitable contributions, employee giving, in-store fundraising and in-kind donations
7 Overview People Business Community Planet About
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 unmatchedunmatched 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 carecare IntegrityIntegri ty lower cost technology enable exexperienceperience AccountabilityAccountability our strategy
8
CSR Strategy Transform Health 2030
At CVS Health, we share a single, clear purpose: Helping people on their path to better health. At the beginning of this new decade, we are reinforcing our commitment through Transform Health 2030, our new strategy to impact the health of the people and communities we serve and to support the health of our business and the planet. Grounded in four pillars — Healthy People, Healthy Business, Healthy Community and Healthy Planet — Transform Health 2030 is more inclusive of our broader enterprise and the impact we can have as a health care leader. It conveys our mission to effectively utilize our scale, expertise and innovative spirit to transform the health care experience and invest in community health at the local level. We’re developing a new suite of goals and performance targets to support the vision of Transform Health 2030, which will be introduced in the coming months. Moving forward, we will report on our progress against these performance targets annually in this report.
9 Overview People Business Community Planet About
Healthy People Transform Health 2030 How we’re delivering on our purpose of • Employee Health and Safety helping people on their path to better • Medication Adherence charts our course for the health across all our touchpoints. • Patient and Customer Safety Material topics aligned with this pillar: • Prescription Drug Misuse future in four key areas: • Pricing of Drugs and Services • Access to Quality Health Care • Public Policy • Chronic Disease Prevention • Responsible Marketing and Advertising and Management • Social Determinants of Health
Healthy Business We are committed to fostering • Supply Chain Responsibility a business that creates value for our • Human Rights colleagues, shareholders, partners • Wages and Benefits and supply chain. Material topics • Public Policy aligned with this pillar: • Ethics and Compliance • Workforce Development Healthy Healthy • Employee Health and Safety • Governance People Business • Diversity, Equity and Inclusion • Risk Management • Data Protection and Privacy • Transparency • Responsible Marketing and Advertising
Healthy Community We are delivering significant social • Access to Quality Health Care impacts to support the health of • Community Investments communities across the U.S. and • Smoking Cessation improve health outcomes in the • Social Determinants of Health communities we serve. Material topics Healthy Healthy aligned with this pillar: Planet Community
Healthy Planet The health of our environment is • Product Quality and Ingredients inextricably linked to human health and • Supply Chain Responsibility we’re committed to doing our part as • Climate Action a health care leader. Material topics • Packaging aligned with this pillar: • Sustainable Operations • Waste • Water
10 CSR Strategy Creating Impact for the United Nations Sustainable Development Goals
Our Transform Health 2030 CSR strategy is aligned with the United Nations Sustainable Development Goals (SDGs), 17 aspirational goals to create global change by 2030. The SDGs aim to serve as a catalyst for companies, governments and non-governmental organizations to achieve a better, more sustainable future. We believe we can most meaningfully contribute to the SDGs that closely align with our business impact and our CSR initiatives. In addition to the five goals toward which we have pledged to drive impact, we are announcing our commitments to three additional SDGs as a part of Transform Health 2030: Goal 2: Zero Hunger, Goal 5: Gender Equality and Goal 12: Responsible Consumption and Production. In supporting the below eight SDGs, we know we cannot achieve progress on our own. We work to continually strengthen the relationships that extend our CSR programs. CVS Health is the only U.S. pharmacy chain to hold membership in the United Nations Global Compact, confirming our commitment to the Compact’s 10 principles with respect to human rights, labor, the environment and anti-corruption. Our annual Communication on Progress can be found in the Appendix.
11 Overview People Business Community Planet About
Contributing to the United Nations Sustainable Development Goals
Goal 2: Zero Hunger Goal 3: Good Health and Well-Being Goal 4: Quality Education Goal 5: Gender Equality As a retailer offering both perishable CVS Health’s new $100 million Our workforce development As a foundation of gender equality, our and shelf-stable food products, commitment to affordable, quality initiatives inspire the next generation representation of female colleagues CVS Health has a responsibility to use care and combating public health of health care innovators. Through our at every level of our business, including our national footprint to combat food challenges, Building Healthier Workforce Innovation and Talent senior management, is improving insecurity in local communities. Our Communities, uses our company’s Centers (WITC), we invest in building every year. At the manager level, our Project Health initiative (also a part of strengths as a local community knowledge, skills and abilities to employees are nearly evenly split, our work related to Goal 3: Good Health member. In addition to the $100 million prepare community members for with 52 percent women. In addition, and Well-Being), includes new health financial commitment to local and health care careers, including hands- 36 percent of individuals at vice assessment criteria to provide access national nonprofits, we have pledged on experience in our mock pharmacy. president and above are women. Our to fresh, healthy food. In an effort that our colleagues will share WITCs align with community workforce diverse supplier program, focused on to combat food waste, our California $10 million per year in value of agencies to help jobseekers who are creating economic impact for women- stores donate unsold food to local volunteer hours to support the underserved have access to our and diverse-owned businesses, drove charities and food banks, with more initiative. Over time, we plan to programs. In 2019, nearly 2,000 a total economic impact of $2.95 billion than $19 million worth of food products see an increase in patient engagement community members participated in and supported more than 35,000 jobs donated. Read more in the Healthy and improved health outcomes a WITC development program, with across the country in 2019. To drive Planet section on page 93. in communities across the many joining CVS Health as pharmacy additional impact, we are working U.S. Learn more in the Healthy technicians and store associates toward a goal to increased spending Community section on page 70. following their training. Find out more with Tier II diverse- and woman-owned in the Healthy Business section on suppliers in order to reach our goal page 45. of $1 billion. Learn more in the Healthy Business section on page 45.
Indicates disclosures that are new in 2020 12 Overview People Business Community Planet About
Contributing to the United Nations Sustainable Development Goals
Goal 8: Decent Work and Goal 12: Responsible Consumption Goal 13: Climate Action Goal 15: Life on Land Economic Growth and Production We believe better health is being Sustainable use of resources remains As a Fortune 500 leader, our business The United Nations’ definition for threatened by the human impacts a central part of our work to protect the decisions have far-reaching impacts Responsible Consumption and of climate change. As a large company, planet. In 2019, 96 percent of the paper on the economic mobility of thousands Production is broad and we’re we encourage our suppliers to evaluate we procured across the enterprise was of local communities. In 2019, we hired supporting it in a variety of ways. their climate progress. We collaborate sustainably sourced, and 100 percent nearly 90,000 new colleagues, paid For example, CVS Health has with CDP’s Supply Chain Project of our store brand suppliers had either $15.6 billion in wages, $2.7 billion in completed our journey to reformulate to collect supplier data; in 2019, become members of the Roundtable benefits and $4.4 billion in income, nearly 600 store brand beauty and 90 percent of the suppliers we on Sustainable Palm Oil or obtained property and employer taxes in the personal care products. We also requested participated. Of course, Rainforest Alliance certification. Learn U.S. Find out more in the Healthy complied with state laws to remove we continue to work toward our more in the Healthy Planet section on Business section on page 45. oxybenzone and octinoxate ahead science-based greenhouse gas page 93. of the dates the laws require. Read emissions reduction targets and in more in the Healthy Planet section on 2019 achieved an absolute emissions page 93. reduction of 35 percent of scope 1 and 2 emissions, representing progress Another approach to responsible toward our 2030 target at the time consumption is making it easier for of this report’s publication. In 2020, our customers to properly dispose of we are exploring re-stating our unused medications. The nearly 3,000 Science-Based Target to align with safe medication disposal units we have a 1.5 degree reduction. Learn more in installed or donated nationwide have the Healthy Planet section on page 93. collected nearly 1.35 million pounds of unwanted medication. Read more in the Healthy People section on page 24. Indicates disclosures that are new in 2020 13 CSR Governance
Governance of our CSR framework is led by our Board of Directors and our 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.
14 Overview People Business Community Planet About
Our Senior Vice President of CSR Colleagues with direct oversight of and Philanthropy and Chief areas within our four CSR pillars are Sustainability Officer shares relevant responsible for driving performance CSR-related impacts, risks and and meeting established targets as opportunities with the Nominating part of their business plan. These and Corporate Governance Committee internal partners are regularly engaged annually. In 2019, the Nominating and by the CSR team to provide progress Corporate Governance Committee was updates and identify emerging risks Board Diversity engaged on topics such as: climate and opportunities. Remuneration of change reporting, including science- leaders, colleagues, as well as based targets; embedding business unit and facility managers, Diversity of background and experience make sustainability into our business, is partially linked to performance especially in retail; philanthropy against these business plans. our Board of Directors strong. Following our and community health, including Annual Meeting of Stockholders in May 2020 social determinants of health, opioid We regularly evaluate more than our Board will consist of 13 members, with 31 misuse and more; and our approach 100 risks through an on-going process percent women and 69 percent men. Board to investing in local communities. managed by our Enterprise Response At these presentations, requests and Resiliency (ERR) program. These members of diverse ethnicities will comprise were made for approval to act on include immediate risks such as severe 31 percent of total Board membership. a selected issue or for funding to weather events and long-term risks support a new initiative. that can influence elements of our business and value chain. Based on Our Senior Vice President of CSR these key risks, we put Business and Philanthropy and Chief Continuity Plans (BCP) in place for our Sustainability Officer also leads colleagues and our customers for risks progress against our strategy and of all types — natural, technological, performance targets. She and her human-caused and others. team regularly work with company leadership to align our strategy with We have also established several business imperatives and collaborate policies that govern our approach to with colleagues throughout the issues of importance to our business company on key initiatives. She also and our stakeholders, including our serves as the Co-Executive Sponsor of Climate Change Policy, Human Rights our GreenTeam Colleague Resource Policy and Privacy Commitments, all Group, alongside our Executive located in our online Resource Library. Vice President and President of CVS Caremark.
15 Overview People Business Community Planet About
World’s Most Admired Companies (#39) Ratings, Rankings Fortune Magazine and Recognition 100 Best Corporate Citizens (#26) Corporate Responsibility Magazine
Dow Jones Sustainability Index DJSI North America, 7th Year DJSI World, debuted in 2019
Civic 50 Points of Light Institute’s 50 most community-minded companies
CDP Climate A List and Supplier Engagement Leader
Top 50 Companies for Diversity (#27) and Top Companies for Supplier Diversity (#10) DiversityInc
Best Place to Work for Disability Inclusion (100%) Disability Equality Index, American Association of People with Disabilities and Disability:IN
Billion Dollar Roundtable Companies spending more than $1 billion annually with diverse suppliers
16 Overview People Business Community Planet About
CSR Material Topics In 2019, we conducted a evaluated the 23 topics from our of emerging issues. Ultimately, the Healthy People comprehensive materiality materiality assessment in 2017. 2019 materiality assessment drove the assessment, in accordance with the Additionally, it reflected our Aetna development of our Transform Health Healthy Business Global Reporting Initiative (GRI) integration activities through internal 2030 strategy and its pillars: Healthy Standards, to reflect our growing and external stakeholder feedback, People, Healthy Community, Healthy Healthy Community business, strategy and stakeholder competitive benchmarking, an Business and Healthy Planet. expectations. The assessment industry landscape and assessment Healthy Planet
Very High Very High 1. Access to quality health care 2. Pricing of drugs and services 3. Patient and customer safety 4. Data protection and privacy For the material topics (1) access to quality health care and (2) pricing of drugs and services, they have very5. highSupp ly chain responsibility influence on Stakeholder Assessments and Decisions and have very high significance of Economic, Environmental6. Product quality and ingredients 7. Employee health and safety and Social Impacts. For the material topics (3) patient and customer safety, (4) prescription drug abuse, (5)8. product Climate action 1 quality and ingredients, (11) climate risks, (12) sustainable operations, (15) ethics and compliance and (16) 9. Diversity, equity and inclusion 10. Prescription drug misuse governance, they have very high influence on Stakeholder Assessments and Decisions and has high significance of High Economic, Environmental and Social Impacts. For the material topics (6) chronic disease prevention and 11. Public policy management and (17) diversity and inclusion, they have a high influence on Stakeholder6 Assessments and12. 2 13. Human rights Decisions and has very high significance of Economic, Environmental and Social77 Impacts. For the material14 topics. Commu nity investments 8 (13) supply chain responsibility, (14) packaging, (18)High human rights, (19) data protection and privacy, (22) wage15. Sandusta inable operations 16. Packaging 9 benefits and (23) employee health and safety, they have a high influence on Stakeholder3 4 Assessments and17 . Ethics and compliance Decisions and have a high significance of Economic, Environmental14 14 and Social Impacts.For the material topics18. Smok (7)ing cessation 55 23 19 18 19. Waste tobacco use, (20) workforce development and (21) risk management, they have a 10high influence on Stakeholder 16 20. Governance 13 Assessments and Decisions and have moderate significance of Economic, Environmental12 and Social Impacts.Moderate For 21. Workforce development the material topics (8) community investments22 and (9) medication adherence, they11 have moderate influence on 22. Medication adherence 20 17 Stakeholder Assessments and Decisions25 and has high significance of Economic, Environmental and Social23. Water Impacts. For the material topic (10) public policy, it has moderate influence on Stakeholder Assessments 24and. Chronic disease prevention 27 24 21 15 and management Decisions and has moderate significance of Economic, Environmental and Social impacts. 28 28 25. Transparency 26. Risk management ModeraModeratete 27. Responsible marketing and advertising 26 28. Social determinants of health
17 Overview People Business Community Planet About
Stakeholder Engagement
We are committed to maintaining health. We are proud of our work the development and advancement outcomes that resulted from regular, open communication with to establish a two-way dialogue of our CSR strategy. On the following engagements. More information on a broad range of stakeholders who with advocates, policymakers, pages, we have detailed how we recent collaborations can be found help us advance our purpose of shareholders, customers and patients. engage with stakeholder groups and on the “Stakeholder Engagement” helping people on their path to better Their insights and feedback support highlighted some of the notable section of our website.
Stakeholder Stakeholder Group Top Issues Raised Outcomes in 2019 Engagement Channels
Patients and • In-person • Access to quality • We expanded our relationship with Discovery Education and our Pharmacists customers interactions health care Teach program. Since 2015, our pharmacists have volunteered their time and • Focus groups • Pricing of drugs and delivered curriculum to more than 570,000 teens and parents across the country. We are on track to meet our goal of reaching 750,000 people by • Customer relations services the end of 2020 with this program. The relationship expanded to include Dose hotline • Patient and customer safety of Knowledge, a suite of digital resources for pharmacists, educators and • Surveys • Prescription drug misuse students grades 9 through 12 on the importance of healthy lifestyle choices, • Social media • Chronic disease prevention the facts about prescription and illicit drug misuse. and management • Websites • We fully implemented our “Tested to Be Trusted” program, increasing • Mail/email • Medication adherence transparency regarding ingredients and third-party testing for vitamins and • Data protection and privacy dietary supplements sold in-store and online. We require third-party testing of • Smoking cessation all vitamins and supplements to confirm all dietary ingredients are listed on the supplemental facts panel of dietary supplements. We have completed testing • Product quality and on samples of more than 1,400 vitamins and supplements from 152 brands ingredients across 11 categories, including diet and nutrition, pain relief and digestive aids. • Packaging • To gain a better understanding from customers and employees about what • Community investments CVS Health can do to further its sustainability strategy, we surveyed 500 • Diversity, equity and customers and more than 2,600 colleagues. We conducted 500 interviews inclusion among customers to gauge how important different sustainability issues were • Responsible marketing to them, which companies are addressing these issues and how their behavior and advertising has changed with respect to these companies. We used these findings as • Social determinants a key input in our robust materiality assessment in 2019. of health
18 Overview People Business Community Planet About
Stakeholder Stakeholder Group Top Issues Raised Outcomes in 2019 Engagement Channels
Colleagues • Meetings and • Employee health and safety • Our Stamp Out Stigma initiative in collaboration with the Association for interviews with • Wages and benefits Behavioral Health and Wellness (ABHW) worked to reduce the stigma subject matter surrounding mental illness and substance use disorders for our colleagues. • Diversity, equity and experts Colleagues shared stories of how mental illness or substance use disorder inclusion • Engagement surveys has impacted their lives on our intranet and we provided resources, including • Workforce development access to face-to-face counseling sessions with a licensed mental health • Training and • Community investments professional for all colleagues. professional development • More than 23,000 colleagues participated in our Colleague Resource Groups opportunities (CRGs). Bringing colleagues together based on shared interests and affinities allows us to more deeply connect with, listen to and respond to colleague • myLife (CVS Health ideas and engagement opportunities throughout the year. intranet) • As part of our colleague and customer research this year, we surveyed more • Colleague Resource than 2,000 CVS Health colleagues who expressed how engaged they are Groups (CRGs) personally with sustainability in their lives, as well as at work. Colleagues were asked what initiatives they can and do take in their day-to-day jobs to be more sustainable and where they see opportunities, even if not directly part of their job function, to incorporate sustainability. The findings from this research were used as a key input in our robust materiality assessment in 2019.
Investors and • Annual Stockholder • Climate risks and action • We conducted more than 80 shareholder engagement meetings during Stockholders Meeting • Prescription drug misuse the fall off-season and engaged with shareholders who proposed resolutions for inclusion in our proxy statement. • Quarterly earnings • Product quality and safety calls • Throughout the year, we responded to investor inquiries on a broad range • Access to quality of CSR topics, most often through phone briefings and email correspondence. • Phone briefings health care We also convened a group of stakeholders during our June 2019 Investor Day • Email • Pricing of drugs and and shared our progress around key ESG issues with the group. correspondence services • Response to ratings • Diversity, equity and and rankings inclusion • Conferences • Human rights • Risk management
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Stakeholder Stakeholder Group Top Issues Raised Outcomes in 2019 Engagement Channels
Suppliers • Meetings • Supply chain responsibility • This year we launched a collaboration program with United Parcel Service • Phone briefings • Diversity, equity and (UPS) to develop a prescription drug delivery service using UPS drones. This program builds on CVS Health’s commitment to provide convenient access • Conferences and inclusion for our customers to lower-cost, more efficient delivery models. The first events • Human rights deliveries of prescriptions to customers with this new technology occurred in • Factory audits • Wages and benefits November 2019. In 2020, we will continue to explore drone delivery models • Human Rights Policy • Climate action through this relationship. • Code of Conduct • Sustainable operations • Each year, we recognize our suppliers for their efforts across our four • Trainings and • Ethics and compliance key CSR pillars, as well as their collaboration with us on advancing our workshops • Risk management sustainability priorities. In 2019, we honored L’Oréal with our annual sustainable supplier award to recognize our shared commitment to supporting the CVS Beauty Mark initiative. • We earned a place on the Dow Jones Sustainability World Index (DJSI World) for the first time and were named to DJSI North America for the seventh time, recognizing our commitment to sustainability leadership. We also were recognized by CDP, earning a place on the CDP A List and recognition as a CDP Supplier Engagement Leader.
Government and • Briefings and • Pricing of drugs and • We continued to focus our public policy work on engaging policymakers regulators meetings services around the important role of the Pharmacy Benefit Manager (PBM) in • Phone briefings • Ethics and compliance controlling drug costs. By lending our voice to policy conversations on drug pricing, we hope others will work with us to put patients first. Learn • Email • Prescription drug misuse more about how we’re helping to reshape public policy in Healthy Business on correspondence • Public policy page 63. • White papers and • Access to quality other briefing health care materials • Workforce development • Trade organizations • Supply chain responsibility • Participation in • Waste coalitions • Climate action • Roundtable discussions • Public events • Sponsorships of events • Speaking engagements • Conferences • Media engagements Overview People Business Community Planet About
Stakeholder Stakeholder Group Top Issues Raised Outcomes in 2019 Engagement Channels
Nonprofit • Conferences • Diversity, equity and • We continue to engage with stakeholders around key environmental organizations • Roundtables inclusion issues. We engaged with Green America to find more sustainable solutions and NGOs to our receipts, including reducing the length of receipts, providing digital • Strategic • Access to quality receipt opt-in prompts at the register for customers and switching receipt relationships health care paper to BPS-free paper that can be recycled. • Participation on • Chronic disease prevention • Additionally, we continued our work with Ocean Conservancy and boards and advisory and management are members of its Trash Free Seas Alliance. These memberships councils • Climate action support our commitment to making responsible packaging decisions • Attending annual • Supply chain responsibility that respect our planet and meet the needs of our customers. Each meetings • Packaging year, CVS Health colleagues across the country join in Trash Free Seas • Virtual and in-person • Pricing of drugs and Alliance’s International Coastal Cleanup. engagement services meetings • Prescription drug misuse • Webinars • Product quality and ingredients • Waste
Industry groups • Conferences • Diversity, equity and • We joined Sustainable Brands’ Brands for Good initiative and participated and forums • In-person meetings inclusion in a session in New York with representatives from other brands. • Climate action • Product quality and ingredients • Patient and customer safety • Access to quality health care • Pricing of drugs and services • Packaging • Waste • Sustainable operations
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Stakeholder Stakeholder Group Top Issues Raised Outcomes in 2019 Engagement Channels
• Community • Access to quality • We proudly launched Building Healthier Communities, a $100 million engagement health care commitment to make community health and wellness central to our charge programs • Community investments for a better world. Building Healthier Communities represents a major part of our philanthropic investment focus at CVS Health, using our company’s • Volunteering • Prescription drug misuse strengths to maximize our local impact. This initiative combines funds from • Board memberships • Workforce development all of our charitable investment vehicles — CVS Health, the CVS Health Local • Event participation • Social determinants Foundation and the Aetna Foundation — over five years. communities of health • Building Healthier Communities will emphasize support of nonprofit • Smoking cessation organizations and local and national initiatives in three categories: improving local access to affordable quality care, impacting public health challenges and working with local communities on the most pressing health issues.
• In-person meetings • Access to quality • We measure the satisfaction of our PBM clients twice per year through • Phone health care a web-based survey and use their feedback to improve our services and client relationships. Our approach to quality improvement has resulted • Email • Pricing of drugs and in year-over-year improvement in PBM client and member satisfaction: correspondence services in 2019, 96 percent of clients and 95 percent of members were satisfied. • Surveys • Prescription drug misuse Clients • In 2019, 86 percent of health care benefits members were satisfied and • Disclosure requests • Medication adherence 95 percent of Aetna Medicare members were satisfied. • Chronic disease prevention and management • Smoking cessation
• Direct outreach • Smoking cessation • We joined the Quit Big Tobacco (QBT) initiative, pledging to cut ties with any • Website • Access to quality marketing agency that has tobacco or e-cigarette companies as clients. • Responses health care to inquiries • Pricing of drugs and Media services • Prescription drug misuse • Public policy • Data protection and privacy
22 Healthy People
23 Overview People Business Community Planet About
Healthy People Through physical and virtual interactions, we provide convenient, personalized and integrated access To truly improve health outcomes, to health care support and services. We continue to implement and expand initiatives that build on our innovative CVS Health needs to be health care model, with the ultimate aim to transform the health care innovative and connect with experience for every person we reach. We interact with our customers and patients more often than any other people where they are — online, health care provider — research shows that people see their pharmacist up to 24 times each year, while they see in their workplaces and in their a physician only four-to-six times in the same period. neighborhoods and communities. And, when customers and patients can’t come to their local CVS Pharmacy, we are combining technology, new business models and the power of collaboration to help ensure patients and providers are able to receive affordable, accessible, simplified and seamless care where they need it. Our scale, capabilities Material topics aligned with this pillar: UN SDGs: and resources are putting health and wellness at the heart of what we do, not just for our customers but for • Access to Quality Health Care • Prescription Drug Misuse • Good Health and Well-Being (3) our colleagues and the communities • Chronic Disease Prevention • Pricing of Drugs and Services • Zero Hunger (2) we serve. and Management • Public Policy • Employee Health and Safety • Responsible Marketing and • Medication Adherence Advertising • Patient and Customer Safety • Social Determinants of Health
24 Healthy People Transforming the Health Care Experience
Our goal is to be the front door to health care. Our customers can find us where they live and work: in our approximately 9,900 retail locations, approximately 1,100 walk-in clinics and through our pharmacy benefit plans, health care plans and other services across the country. We help people manage their health and well-being by simplifying a complex health care system and ensuring customers have easier access to quality, more affordable care, right in their own neighborhoods. Because we know a person’s ZIP code, as does their genetic code, can have can have an impact on their health, we’re especially focused on reaching those who have been traditionally underserved, including women, people of color, people with disabilities, veterans and those from low-income backgrounds. This includes our efforts to address the social determinants of health, which are defined as a person’s physical, social and economic environment, as well as individual behaviors around diet, exercise and alcohol and drug use.
25 Overview People Business Community Planet About
By listening to our patients and working As we work to transform health care, may require a more comprehensive with members of our communities, we remain focused on expanding exam in person, which can take place we are identifying the best ways to services offered at MinuteClinic and at a nearby MinuteClinic if appropriate. improve their health by introducing improving the patient experience. Or the provider can help the patient programs and services that span from We are filling the gaps in our patients’ identify a health care provider in his acute care to chronic disease care, building long-term relationships or her area. More than 30,000 video- management, to everyday self-care and making us a trusted health enabled health visits have been and wellness. We believe highly care destination. completed since August 2018. In MinuteClinic Receives personalized experiences are most 2020, we will continue to grow and Pathway to Excellence effective in preventing and managing Virtual Care Expands Our Impact implement the program in every Designation costly health challenges, so we MinuteClinic’s Virtual Care platform state where telehealth is permitted, are striving to make the health care provides patients with quality, including expansion to rural areas system more connected and affordable, convenient care through where care can be more difficult manageable, while expanding a mobile app or web browser. Since to access. In 2019, MinuteClinic access to skilled providers. launching Virtual Care in 2018, we became the first retail now offer MinuteClinic video visits in Caring for Veterans health care organization MinuteClinic Shifts Care from 40 states and the District of Columbia. Across the Nation Transactional to Transformational Through Virtual Care, we connect We believe we have an ability to make to receive the Pathway With approximately 1,100 MinuteClinic patients ages two years and older to a meaningful difference in the lives to Excellence® designation locations, we are the largest provider certified health care providers through of America’s 19 million veterans. Since from the American Nurses of walk-in clinics in the country. Today, video-enabled consults that are 2016, we have provided our nation’s Credentialing Center, which more than 50 percent of the U.S. available 24 hours per day, seven heroes with high-quality care through population lives within 10 miles of a days per week. a strategic agreement with the U.S. recognizes our efforts to MinuteClinic and millions of patients Department of Veterans Affairs (VA). enhance quality of care, depend on our providers for their care. The MinuteClinic Virtual Care program Through the enactment of the VA patient and nursing safety We are committed to bringing extends access to care by providing MISSION Act, we were able to expand and the future of health accessible and affordable care to our video-enabled visits delivered with the that care to all of our MinuteClinic customers by offering evening and same quality of care as at MinuteClinic locations nationwide in 2019. care delivery. weekend hours and by reducing costs, by health care professionals who with most services estimated at less follow evidence-based guidelines. than $100 — up to 40 percent less If a prescription is determined to be expensive than urgent-care centers appropriate as part of the treatment and 80 percent less expensive than plan, the provider can submit a similar services in a hospital prescription to the patient’s preferred emergency department. pharmacy. In some cases, a patient
26 MinuteClinic 1.1M+ Statistics flu shots administered 6.5M patient visits 94% patient satisfaction rate
27 Overview People Business Community Planet About
For three years we have worked with the VA to connect VA MISSION ACT veterans with care. Through this program, veterans could Expands Veteran Care also receive care for minor illnesses and injuries at at MinuteClinic participating MinuteClinic locations. In August 2019, we expanded this relationship to all MinuteClinic locations nationwide for veterans to access treatment of acute, minor conditions, such as ear infections, sinus infections and coughs. MinuteClinic has now provided care to more than 11,000 veterans. The care our nation’s veterans receive at MinuteClinic provides them with the services they need, when they need it and where it is most convenient to them. The average in-clinic wait time for veterans remains under 30 minutes and veterans report positive MinuteClinic experiences in post-visit quality surveys. Our integrated information technology applications also allow MinuteClinic practitioners to make patient data available to the VA through the eHealth Exchange™, a health information network connecting federal agencies to the private sector.
“Our participation in the VA MISSION Act provides veterans across the country greater access to the quality health care they need and deserve, when and where they need it. This ensures their care remains linked into the Veterans Health Administration, and we are proud to support the VA on such a meaningful and impactful program,” said Sharon Vitti, President, MinuteClinic.
28 Overview People Business Community Planet About
Caring for Individuals of All Ages consistency America’s seniors and The U.S. Centers for Disease Control Through MinuteClinic, we are people with disabilities deserve. and Prevention (CDC) estimates expanding our footprint and impact. flu-related illnesses affect between To do so, we are focused on meeting In addition to expanding services 9 and 45 million Americans each year. a spectrum of needs for individuals for older adults, we are building new In 2018, we piloted Flublok® at 100 of all ages. We have added several new health care options for adults ages MinuteClinic locations. Flublok is a new services, including those customized 18–39 across the enterprise. We are flu vaccine proven to be more effective for older adults. By 2030, there will actively working to ensure adults have for patients ages 50–64. In 2019, we be 70 million people age 66 and older broad health care access, including built on Flublok’s success by offering it in the U.S. We know older adults can providing reproductive health services, at MinuteClinic locations nationwide. have specific health concerns, screenings and treatment for sexually In 2019, we vaccinated a total of including managing multiple transmitted infections at MinuteClinic 1.1 million people using Flublok and medications, complex conditions locations. Aetna is also working with other flu vaccines. or mobility restrictions. colleges and universities to help make MinuteClinic visits part of the insurance Since older adults are more To respond to the health care needs packages available to young adults. susceptible to shingles, CVS Health of older adults, MinuteClinic began has expanded access to the SHINGRIX a strategic collaboration with Case Access to Vaccinations vaccine, which protects against Western Reserve University’s Frances We recognize that CVS Pharmacy and shingles and postherpetic neuralgia Payne Bolton School of Nursing, The MinuteClinic have a unique role to play, (PHN), the most common complication John A. Hartford Foundation and the not just in the health of individuals, but from shingles. SHINGRIX is available in Institute for Healthcare Improvement in the health of the communities we all MinuteClinic locations, and in 2019 (IHI). Through this relationship, all serve. We play a key role in helping we vaccinated more than 100,000 MinuteClinic nurse practitioners and people on their path to better health by patients with SHINGRIX. physician assistants will receive providing access to vaccinations in training on the use of the “4Ms,” CVS Pharmacy and MinuteClinic Our vaccination program grew a set of four essential elements for locations nationwide. Additionally, we more than 20 percent in 2019, with caring for older adults: mobility, offer a variety of CDC-recommended MinuteClinic meeting critical demands medication reduction, mentation vaccines, administered by an for vaccination during outbreaks of (mental and cognitive health) and immunization-trained pharmacist of hepatitis A and measles, mumps what matters to the patient. MinuteClinic nurse practitioner for and rubella (MMR). MinuteClinic will children through seniors. Through our also introduce a varicella (chickenpox) In our health care services business, 9,900 retail locations we offer vaccine in all locations in 2020. we consolidated SilverScript®, our convenient access to patients in need Medicare Part D prescription drug of vaccinations beyond the seasonal plan, into the Medicare Annual Election flu, including Pediatric Shingles, Period (AEP). With this update, it’s now Pneumonia, HPV, MMR, Tdap, easier for our more than 5 million Meningitis, Hepatitis A, Hepatitis B, members to continue their care with Polio and more. the coverage, confidence and
29 Colleagues Leading with Heart
Each year, CVS Health recognizes our most engaged colleagues through our Paragon Awards, which celebrate excellence and honor colleagues who embody our core values. This year, Pablo Heredia was one of our 10 Paragon Award recipients. Pablo is a Training Store Manager in San Diego, CA. Born in Mexico, Pablo was raised with a commitment to family and community. When he was just 20 years old, his sister passed away of an illness and Pablo stepped in to raise his young niece and nephew. Regarding how his personal experiences have influenced his role, Pablo says, “I’ve been around a lot of illness. I remind my team that most of our patients are people [for whom we] don’t know what they’re dealing with. You don’t know the pain they have. That’s why we have to empathize with them 100 percent — more than any other industry.” His CVS Health colleagues see him as someone driven and kind, who helps all people — customers, fellow colleagues and the community — on their path to better health. Watch Pablo tell his story here.
30 Overview People Business Community Planet About
Supporting Patients with tailored for patients managing chronic Chronic Disease conditions. In addition, HealthHUB Patients with chronic conditions locations serve as neighborhood often need to interact with health care destinations for local health initiatives, providers more frequently and require events and community gatherings. a more robust approach to managing their treatment. We are especially Our HealthHUB pilot launched in connected to these patients and Houston, TX, and after seeing initial Pilot for Colorectal Cancer Screenings continue to invest in developing success, we expanded to several solutions to address the escalating additional service areas including costs and health impacts of chronic Philadelphia, New Jersey, Florida To help our patients proactively monitor their disease. Our efforts include expanding and Georgia, with more than 50 preventative care and treatment HealthHUB locations in operation in health, we launched a pilot program in 2019 at for chronic conditions and working 2019. By the end of 2020, we expect a small number of HealthHUB and MinuteClinic to improve medication adherence to have 600 to 650 locations and locations to provide convenient, high-quality with patients. We are also committed reach a total of about 1,500 HealthHUB early-detection testing for colorectal cancer. to engaging with patients to help locations nationwide by the end them coordinate their care across of 2021. Currently being piloted at select HealthHUB the health care system, offering and MinuteClinic locations, patients work products and services across our with their MinuteClinic provider to complete business to make their health journey a risk assessment and screening. In 2019, 171 an easier one. patients completed screening, with the results Redefining Access with HealthHUB® complementing the patient’s existing or To support people with chronic future primary care. Our primary target disease, we focus on meeting their patient population for screening are those needs — in their neighborhood and on their schedule. We believe that our ages 50–64 that are not up-to-date on new HealthHUB locations will help colorectal cancer screening. redefine the way people access health care, offering daily support for chronic conditions in convenient, local locations. Our clinician-led teams, Care Concierges and on-site and virtual efforts offer coordinated, personalized care, extending beyond a doctor’s visit. HealthHUB locations bring together our most effective and scalable solutions, including pharmacy, nutrition, MinuteClinic and other resources, products and services
31 Serving Patients at HealthHUB
The success of our HealthHUB model of local care is evident in our patients’ experiences.
At one of our HealthHUB locations, a patient met with a nurse practitioner after experiencing abdominal pain. The nurse practitioner recognized that beyond abdominal pain, the patient was diabetic and not currently receiving treatment. Based on the patient’s symptoms, in a short, 40-minute visit, the HealthHUB team connected him to a dietitian and an eye doctor — both important resources for people with diabetes. He left with a strong treatment management plan in place.
At another HealthHUB, a Care Concierge working in our Home Health Care Program met with an individual experiencing difficulty caring for an elderly parent. The Care Concierge offered CVS Pharmacy and HealthHUB resources to make caregiving less stressful, including ScriptSync, ReadyFill® and CarePassTM. The Care Concierge also provided educational materials and guidance around durable medical equipment. At the HealthHUB, this individual found a support system to manage her new caregiving role.
32 Overview People Business Community Planet About
Medication Adherence Solutions Investing in Community Support We are also investing in affordable We understand the challenges that to Improve Outcomes housing across the country to provide some patients face managing chronic We are committed to addressing the support for underserved and at-risk conditions, following varying dosing social determinants of health because populations. In Orlando, FL, we instructions and tracking side effects. we know this can result in lower provided $8.7 million to build a new We are designing solutions that health care costs and increased worker 116-unit affordable housing community simplify complex medication regimens productivity for employers. We are that is expected to begin construction and help patients better manage their determining the best way to use the in 2020 and be ready to welcome health. These solutions improve presence of CVS Pharmacy locations families in 2021. This new apartment medication adherence overall and in the community, piloting programs community will include 20 permanent reduce the costly and detrimental and testing interventions with several supportive housing units, combining effects of non-adherence in patients large employers. affordable housing assistance with across the country. Results of these additional support services to address interventions include: Through our commercial health the needs of the homeless community insurance business, we launched a in Orlando. • Support from the CVS Specialty® new platform, Destination: Health, CareTeam, including pharmacists with a focus on addressing the social and nurses who are specially trained determinants of health for our “Out of about 6,000 waking hours in chronic conditions. Proactive members. Our first major collaboration in a year, most people only support within this platform is Unite Us, a spend a handful in a doctor’s from CareTeams shows an 11.4 technology company standardizing office or hospital — you spend the percent improvement in medication how health care providers vast majority of your time in your adherence and an 11 percent communicate and track outcomes. community. We are a part of overall decrease in health care This relationship helps some of our thousands of communities across costs for these patients. most vulnerable Medicaid and dual- the country, so by addressing eligible members more social determinants of health • Specialty Connect® enables easily access social services in their through significant philanthropic specialty prescription drop-off or communities. Members can use the support, products and programs, pick up at CVS Pharmacy locations Unite Us technology to find service we have an unprecedented or by mail. Being able to choose how providers and receive referrals opportunity to improve the health medications are obtained means to providers or Aetna nurse case of individuals and communities patients are 17.5 percent more likely managers. The program launched across America.” – Karen S. Lynch, to refill their first prescription. in Louisville, KY in 2019 and is also Executive Vice President, Through ScriptSync®, a program available to Aetna’s Dual-Eligible CVS Health and President, Aetna. that prepares patients’ eligible Special Needs Plan members (those prescriptions for pick up on the eligible for both Medicaid and same day each month, we have Medicare) in Tampa, FL and seen a 6 percent improvement in Southeastern Louisiana. adherence after enrollment.
33 Overview People Business Community Planet About
Personalized Solutions In 2019, Transform Diabetes Care The CVS Pharmacy Rx Savings Finder Nearly 180,000 prescribing physicians Through Transform Care® was utilized by 175 CVS Caremark allows our 30,000 retail pharmacists are using Real-Time Benefits within Our Transform Care® programs clients, representing 4.5 million to seamlessly evaluate savings their EHRs today. are tailored to the millions of members and more than 300,000 opportunities for patients at the CVS Caremark® members managing members with diabetes. We also pharmacy counter. Pharmacists can In addition to the tools, technologies chronic conditions, making care added diabetes prevention and see whether the recommended and programs we use to help keep more effective and cost-efficient by hypertension programming to enhance medication is the lowest-cost option drugs affordable for CVS Health combining patient health and Transform Diabetes Care and build on available under the patient’s existing patients, we use our leadership to pharmacy data with drug cost the successful clinical outcomes the pharmacy benefit plan. If available, support government policies that management strategies. program is generating for our the pharmacist can advise the patient reduce the cost of prescription drugs. members with diabetes. on equivalent treatment options that We advocate for transparency of For the past three years, our Transform reduce costs. The Rx Savings Finder out-of-pocket prices, enabling the Diabetes Care® program has provided In addition, our new Transform also identifies options for uninsured public to make smarter choices about a comprehensive, insights-driven Oncology Care® program, launched patients, where allowed by applicable their treatments and providers. We solution to help reduce the complexity in late 2019, strategically utilizes the laws and regulations. Patients using know an estimated one-third of of self-management and improve latest genomics science to help this tool save an average of $420 prescriptions are never filled, and health outcomes for plan members. providers identify and start patients per year. unexpected costs contribute to that Diabetes affects 31 million Americans on the best cancer treatment. figure. Increased transparency in drug and can be especially challenging to Physicians are also a key partner for prices and options for patients can manage. Preventing complications and Solutions for More Affordable patients in reducing prescription drug increase medication adherence and adverse health events requires patients Prescription Drugs costs. Our Real-Time Benefits tool have a significant effect on public health. to manage complex medication We know rising prescription prices allows doctors to check in real time regimens, control blood glucose levels, present a major barrier to helping if the drug they are prescribing will be We know there is more that can be closely monitor symptoms and people on their path to better health. covered for their patient. The database done to help improve the affordability practice healthy behaviors. As a leading health care company, also shows up to five lower-cost, of prescriptions and health care we are concerned about prescription clinically appropriate alternatives or services. As we work to transform Through Transform Diabetes Care drug costs and how they affect our therapeutically equivalent generics health, we support proposals in both interventions, patients in the program customers, patients and communities. that are specific to the member’s state and national legislatures focused experienced: We have led the way in advocating formulary and pharmacy benefit on improving competition, enhancing for stronger regulations to bring down plan. The program is available ability to negotiate discounts with • 1.2 percentage point improvement drug pricing and help customers through electronic health record manufacturers, incentivizing lower in blood sugar tests achieved at six reduce out-of-pocket expenses. In (EHRs) systems for physicians of list prices and lowering out-of-pocket months and sustained at 12 months CVS Pharmacy locations around the CVS Caremark members. Real-Time costs for patients. Learn more about country, as well as through the Benefits can be accessed online, how we’re advancing public policy • More than 50 percent of members solutions we provide to CVS Caremark, by mobile app, at the pharmacy on key issues in the Healthy Business with uncontrolled diabetes were Aetna® and Omnicare® members, counter or at the time of prescribing. section on page 63. moved to controlled status we are investing in technology • Thirty-one percent enrollment and solutions that put customers’ in cellular connected glucose needs first. meters among all eligible members with diabetes
34 Ready, Set, PrEP
In 2019, we participated in Ready, Set, PrEP, a new nationwide program established by the CDC and U.S. Department of Health and Human Services (HHS). Ready, Set, PrEP provides pre-exposure prophylaxis (PrEP) medications at no cost to thousands of individuals across the country.
PrEP medications reduce new HIV infections and are expected to work toward ending the HIV epidemic in the United States. CVS Health pharmacists are now educated about the program and can provide information and access to PrEP from our pharmacies.
35 Overview People Business Community Planet About
Affordability Solutions for deductibles for all plan members. These include: Diabetes Patients We believe that by removing barriers "There are more than 30 million We invest in comprehensive solutions posed by costs, we can help • Quality assurance training Americans living with diabetes, to support the conditions that impact improve adherence for patients for all pharmacy staff and far too many of them are our patients. Drug prices often make managing diabetes. struggling to manage their • On-screen computer prompts up a significant portion of the cost diabetes because of the high of treatment and consumers are Safety and Quality in • Bar-coded prescription labeling cost of diabetes prescription shouldering a greater portion of Products and Services medications. The American • Electronic prescribing out-of-pocket health care costs. Patient and customer safety is the Diabetes Association is For those with diabetes, much of bedrock of trust at CVS Health, and • Automated prescription filling committed to helping those the discussion surrounding we earn it every day through the living with diabetes thrive, and • Electronic pill imaging affordability is focused on insulin. work of colleagues who take that accessing the medications they responsibility with the utmost • Quality procedures for compounded need is critical. We are hopeful More than 30 million Americans live seriousness and dedication. Across prescription items that by eliminating out-of-pocket with diabetes — a number that is our enterprise, we are dedicated costs for diabetes medications, • Drug utilization reviews estimated to have doubled over the to continuously improving and CVS Health will remove one of the past two decades. Our research shows adopting new safety and quality As our pharmacists deliver barriers many people face that that average out-of-pocket costs processes and technologies. prescriptions to patients, key prevent them from managing their for CVS Caremark members taking messages and pop-ups on their diabetes successfully." – Kelly branded diabetes medications is Through engagement with computer terminals provide additional Mueller, Vice President of $467.24 per year, with nearly independent industry experts and safety information. Important Community Impact for the 12 percent spending more than our internal Patient Safety Organization messages, such as those related American Diabetes Association $1,000 per year. Although insulin is (PSO), we regularly evaluate our quality to potentially serious drug-to-drug an important component of many and safety procedures, performance interactions, are reviewed by patients’ treatment, we know the entire metrics and safeguards. It is this pharmacists during this process. range of diabetes care drugs must be commitment to ongoing evaluation that In addition, pharmacy staff utilize made more affordable for patients. pushes us to lead in safety and quality a two-step verification process to for our products, our services and the separate the data entry and drug Our new RxZEROTM diabetes plan people who work in our business. utilization review from product eliminates out-of-pocket costs for all verification steps. categories of diabetes medications — Ensuring Quality and Safety without raising costs for the patient in the Pharmacy Creating and adhering to strong or increasing premiums or deductibles. Safety is central to the success of our processes and procedures in our Offered through CVS Caremark, pharmacies and begins with clinical pharmacies contributes directly RxZERO allows employers and health quality assurance. Every prescription to keeping our patients safe. We are plans to use formulary and plan design we dispense goes through a multi-step committed to a safety-first culture approaches to offer all categories of process with a pharmacist. All of our and implement monthly safety diabetes medications at zero dollars pharmacy operations follow the same campaigns and trainings with field out of pocket for their members comprehensive quality assurance leaders to reinforce our culture of without raising costs for the plan processes for prescription safety. patient safety across the business. sponsor or increasing premiums or
36 Overview People Business Community Planet About
Addressing Prescription them to seek support with their Drug Misuse primary care physician. In 2020, we CVS Health is committed to addressing are collaborating with an analytics the misuse of prescription drugs. We provider to identify members at risk collaborate with community leaders, of a future overdose, enabling us to policymakers, law enforcement and reach out to those members with health care professionals to expand substance misuse support. Pharmacists Teach Achieves Success educational resources related to opioid in Houston-Area Schools misuse. We take a multi-pronged The Front Lines of Educating Through approach that includes education and Pharmacists Teach awareness, drug disposal and patient Our pharmacists consistently work counseling. Our Pharmacists Teach to help reduce prescription drug Our pharmacy team in the Houston area achieved program educates teens about the misuse across the country. Through especially exciting results for participants in dangers of misusing opioids and other our Pharmacists Teach program, Pharmacists Teach in 2019. CVS Health pharmacists prescription drugs. Both independently pharmacists have the opportunity and with local organizations, we are to go beyond their day-to-day in the Houston area provided a customized lesson working to create safe prescription responsibilities, bringing their expertise titled “One Choice Changes Everything” to middle drug disposal sites, expand access to to classrooms to educate teens and and high schools, educating students on the dangers life-saving antidotes and advocate for parents on the dangers of the misuse of prescription drug misuse and the actions they targeted and effective policies, locally of prescription drugs. and nationally. Our dispensing can take to respond to these situations. In addition, practices are also aligned with the In 2019, Pharmacists Teach aligned professional development is offered to teachers Guideline for Prescribing Opioids for with Discovery Education to create throughout the year. As Thea Jackson, a District Chronic Pain issued by the CDC. Learn Dose of Knowledge, a suite of digital Leader for Pharmacists Teach, noted, “I will never more about our opioid response here. resources for pharmacists and educators on the importance of healthy forget having the opportunity to return to my old We also expanded Aetna’s 2018 pilot lifestyle choices. Dose of Knowledge high school and deliver the One Choice presentation. program “Guardian Angel,” which gets pharmacists into classrooms to The students entered the classroom with excitement provides Aetna members who recently deliver the facts about prescription and anticipation. Not even 20 minutes in, you could experienced an opioid overdose with and illicit drug misuse to students in support from a clinician. As specialists grades 6 through 12. According to hear a pin drop! The looks of concern, curiosity and in substance misuse disorders, the Lori McFarling, Senior Vice President worry on their faces confirmed for me … that we as clinicians connect with these members and Chief Marketing Officer, Discovery pharmacists have a duty in helping to prevent to provide them with support to Education, “Public health is of the prescription drug misuse happening across our prevent a future overdose. Since the outmost concern to Discovery program’s launch, nearly 1,000 Education, and we look forward to country today.” Our Houston program reached more patients have successfully engaged continuing the work of helping than 4,000 students in 2019 and we’re committed with clinicians who connected them students to prepare to make health to growing the reach of this powerful program. with treatment options, identified choices that benefit their long-term community resources and encouraged goals and future success.”
37 Overview People Business Community Planet About
Our work with Discovery Education Through this program, we have Emphasizing Product Quality expands on the inspiring results of donated more than 1,000 disposal and Transparency Pharmacists Teach. Since 2015, units to police departments across the In addition to excellence in pharmacy our pharmacists have volunteered country. In total, the nearly 3,000 safe care, we are committed to ensuring their time and delivered curriculum medication disposal units we have every product we sell or distribute is to more than 570,000 teens and installed or donated nationwide have safe and efficacious for customers parents across the country. We are on collected more than 1.35 million and patients. Our commitment track to meet our goal of reaching pounds of unwanted medication. to quality in our products and 750,000 people by the end of 2020 transparency with ingredients and with this program. Beginning in 2020, all CVS Pharmacy labels is one of the main ways we are locations without a safe medication instilling confidence in customers Safe Medication Disposal disposal kiosk will offer free DisposeRx who need these products. We’re helping patients manage their packets to patients filling an opioid prescriptions and conditions — from prescription for the first time. Our store brand products are the moment they step into our stores, DisposeRx allows for at-home disposal consistently high in terms of quality to when their medication is dispensed of small quantities of unwanted and transparency. By using tools like and also by making it easier to properly prescription medications. PurView and WERCS, we are able dispose of unused medications. Proper to monitor store brand product disposal prevents any opportunities Continued Quality and ingredients, label claims and for misuse of medications and protects Safety Emphasis at Coram specifications to help ensure our waste stream and water supplies Our commitment to safety and quality compliance with regulations and from contamination. Access to safe extends across all our business areas. CVS Health policies. Across all store medication disposal in local Our Coram infusion pharmacy is brand products, we conduct regular communities helps reduce these risks. a leading provider of home infusion tests and assessments to promote Our CVS Pharmacy program for safe and tube feeding therapy for more than adherence to the guidelines set forth medication disposal sites added 60,000 patients each month. We know in our restricted substances list and 1,000 in-store disposal units in 2019 how complex it can be for patients to to confirm that selected suppliers to the nearly 1,000 units already manage infusions and medications. are adhering to requirements. existing in retail locations nationwide. To alleviate this, we’re simplifying this We also expanded this program to process through education and More information about the ingredients two new states, Hawaii and Missouri. management strategies. For example, in our products and our responsibility At select CVS Pharmacy locations our transition coaches work directly related to our supply chain can be in Target stores in Alaska, Idaho, with patients to provide education and found in the Healthy Planet section on Oregon and South Dakota, we added connect the patient with resources page 110. additional disposal kiosks. during the first 30 days of transition to infusion care. Initial results of the Our work with The Partnership™ at transition coach program are positive. Drugfree.org provides drug collection In 2019, we achieved a patient units to law enforcement agencies. satisfaction rate of 93.7 percent.
38 Overview People Business Community Planet About
To offer digital solutions for safe medication disposal, in Promoting Safe 2019 we worked with Google to make it easier for customers Medication Disposal to find disposal kiosks and locate naloxone, the lifesaving opioid overdose-reversal drug. As part of this program, with Google people can search for “drug drop-off near me” in Google Maps to locate nearby disposal locations, including CVS Pharmacy kiosks or those in government buildings, such as units donated to law enforcement agencies. This collaboration builds on the success of National Prescription Drug Take-Back Day biannual events hosted by the U.S. Drug Enforcement Administration (DEA).
Nearly 200 CVS Pharmacy locations joined other community sites across the country to host law enforcement take-back events in April and October of last year, allowing the public to safely dispose of unwanted medications.
39 Overview People Business Community Planet About
Creating a Better and online at CVS.com, including ingredients. We’ve completed testing health journey. With new offerings Customer Experience over-the-counter medications, on more than 1,400 vitamins and including weighted blankets, expanded Millions of Americans visit our vitamins and supplements, as supplements from 152 brands across wound care and customizable CVS Pharmacy locations each day, well as personal care items 11 categories, including diet and vitamins, we support customers every and we know their expectations of nutrition, pain relief and digestive aids. step of the way. • Access to a 24/7 pharmacist a retail experience are changing every helpline year. Customers today want to spend In addition to ensuring trust and In 2019, we launched an online access time in stores that are interactive, • As a thank you, members also transparency in our product point for CVS Caremark plan members transparent and accessible. As we receive a monthly $10 CarePass ingredients, we’re also striving to with Sleepio, a sleep app offering transform the health care experience, promotional reward that can be used increase transparency within techniques shown to help users our customers expect our stores to in-store and online at CVS.com marketing. As one of the largest and overcome long-term insomnia. In 2020, bring to life our purpose of helping most trusted beauty retailers in the CVS Caremark will expand this system Following the national launch of people on their path to better health. country, we are passionate about to include companies whose products CarePass in August 2019, the program beauty and the important role it plays improve mental and emotional well- grew to 1.9 million members in the first An innovative new approach to in overall health. Our CVS Beauty being for our clients. six months alone, 24 percent of whom meeting customers’ health needs Mark™ initiative provides customers are new or previously unengaged whenever, wherever and however with a more authentic and diverse customers and 20 percent of whom they want is through the CarePass® representation of beauty images that Cosmetics formulated for people are Millennials. program. Piloted in Boston in 2018, appear in our retail locations, of color can be difficult to find, for a monthly membership of $5 or marketing materials, websites, mobile and CVS Health is committed CVS Health Continues Our $60 per year, CarePass offers our apps and social media. To date, to increasing product options Commitment to Trust and customers an additional level of more than 85 percent of beauty in our stores to better meet the Transparency benefits and services that make it easy imagery in CVS Pharmacy locations needs of our customers. Through We believe in the importance of safety to save time, save money and receive nationwide features either the Beauty the Beauty Mark initiative, we and transparency initiatives. In keeping access to on-demand pharmacy care. Mark to indicate an image has not been partnered with YouTube beauty with our increasing focus on self-care In 2019, we expanded CarePass materially altered or a label marked guru and influencer Nyma Tang. products, CVS Health became the first nationally, bringing simplified value “digitally altered.” By the end of With more than 1 million retailer to establish and begin to our customers, while making it 2020, 100 percent of the imagery subscribers on YouTube and implementation of guidelines and easier for them to care for themselves in our retail locations will have these Instagram, Nyma is a trusted processes to promote the quality of and their families. transparency markers. voice in inclusive beauty. Nyma our vitamin, nutrition and energy joined CVS Health at the Black supplement selection. Through our CarePass members receive several key Expanding Our Well-Being Offerings Women’s Congressional Alliance Tested to Be TrustedSM program, benefits when they become members: CVS Pharmacy locations are an (BWCA) Week in Washington D.C. samples of all vitamins and established self-care destination to host “Making Your Mark supplements sold in our retail locations • Free 1–2 day delivery on qualifying for our customers, focusing on overall in Beauty.” and on CVS.com® were tested by prescriptions and most CVS.com wellness and prevention. We a third party to confirm the accuracy purchases understand that emotional and of the ingredients on the label and to mental well-being is as important as • 20 percent discount on eligible confirm that the test products were physical well-being on our customers’ CVS Health Brand products in-store free from any harmful additives and
40 Overview People Business Community Planet About
Investing in Colleague Health improve processes and learn the best colleagues to give back to their contribute to the good of themselves We know that to truly transform ways to help members navigate the local communities through and others. Through our LEARNet health care, we need to invest in the complexities of the health care system, volunteerism and charitable giving. accessible online training systems, health of all people, and that begins with the benefit of using these insights we are sharing courses on gratitude • Social connectedness: To foster with our colleagues. As a leading to improve the overall health care and character strengths. a strong sense of community, health care company, we have experience for our customers, clients we encourage our colleagues to • Financial security: To help always used our position to provide and patients. have close, meaningful and colleagues address their health a comprehensive colleague benefits supportive relationships. We offer holistically, we know it’s important program, which reflects our Our program is centered on six educational resources like parenting to ensure they have access to the commitments to making health care dimensions that focus on key elements webinars, fitness and cooking financial resources necessary to more affordable, accessible and of well-being: videos that support our culture pursue their life goals and live simple for all of our colleagues and of well-being, engagement and comfortably. We provide colleagues their family members. As one of • Physical health: One of the most self-directed activities. with educational resources and the first steps taken to integrate the important elements of one’s overall actionable steps to assess and Aetna and CVS Health business, we health is physical health and we’re • Emotional health: We are advance their individual financial designed a new, cohesive Total providing our colleagues with committed to supporting our well-being and provide financial Rewards program that reflects what resources to help them manage their colleagues’ whole health, and that rewards for colleagues who perform our colleagues value most, competes health today and into the future. includes ensuring they take care healthy activities in support of our with companies of similar size and We provide our colleagues and their of their mental and emotional health. well-being dimensions. You can complexity and showcases all of families with free flu shots, Our EAP program provides six learn more about these programs our company’s products and services. comprehensive health screenings, in-person counseling sessions, per in the Healthy Business section on This was a critical step in integrating weight management tools and issue, per year for colleagues and page 59. two unique, well-established tobacco cessation services. We also their family members, or unlimited companies and cultures with a new, have on-site fitness and wellness telephonic counseling, including best-in-class program. This new programs, wellness coaching legal and financial services, and To help colleagues achieve program aims to deliver a personalized programs, discounted gym tools to improve emotional health their best health, we offer nine and holistic health and well-being memberships, on-demand fitness, and overcome depression, anxiety, state-of-the-art fitness centers experience through programs that yoga, cooking video resources and stress, substance misuse and in key facilities across the country engage colleagues and their clinical support programs. chronic pain. We offer personalized and host on-site fitness classes families to achieve their personal wellness coaching online, • Purpose: We are helping colleagues in select locations. To help health ambitions. telephonically or on-site and live out their purpose by providing colleagues achieve their fitness massage services in some facilities, them with resources that can help goals and make wellness CVS Health is investing $100 million as well as mindfulness programs them succeed not just in their accessible where they live and over the next two years to make — including Midday Mindfulness roles at CVS Health, but across all work, in 2019 we launched a health care more affordable for our sessions hosted by our FitClub aspects of their lives. This includes membership program offering colleagues, a key step in our journey CRG in select facilities. providing support for colleagues discounted memberships to gyms to transform health. We are using our who serve as caregivers through • Character strengths: We are and fitness boutiques nationwide. program as an opportunity to identify digital advice platforms, as well supporting colleagues in having pain points in the delivery system, as providing opportunities for consistent thoughts and actions that
41 Aetna One Advocate
We know navigating the complex and evolving health care system is challenging and we have an opportunity to simplify processes and guide our colleagues on their path to better health. To help our colleagues with holistic care plans and support, we are providing anyone enrolled in our health plan access to an Aetna One Advocate (A1A) team. The A1A team provides a personalized, proactive approach to care so patients can understand their health and benefits and anticipate potential issues. As a critical member of a patient’s care team, the A1A team helps patients understand their benefits, save money, stay on the right care plans, simplify their pharmacy regimens, support appointment scheduling, find programs and resources to help them manage a condition, as well as help find local labs and physicians. Patients who engage with the A1A team have:
• 50 percent decrease in unnecessary ER use • 14 percent increase in refill rates and 17 percent increase in six-month sustained adherence achieved for members who take maintenance medications • 3 percent estimated reduction in medical costs — an average savings of $495 a year for a family of four
42 Stamping Out the Stigma of Mental Illness in the Workplace We know how important it is to provide offerings that support the comprehensive health and well-being of our colleagues, including mental and behavioral health. Furthering our commitment to emotional well-being, Colleagues Share Their Stories to Transform in 2019 we were proud to launch an the Conversation Around Mental Health enterprise campaign to champion Stamp Out Stigma, an initiative spearheaded by the Association for Behavioral Health and Wellness Chris (name changed to protect privacy), a CVS Health colleague, (ABHW), which aims to change today values what many of us take for granted: a home, a job and perceptions of mental illness and hope for tomorrow. substance use disorders.
We believe awareness is a powerful Chris has bipolar schizoaffective disorder and chronic anxiety, way to change the conversation. conditions he was diagnosed with more than 20 years ago. “It’s been Stamp Out Stigma allows colleagues a long road to get where I am now. I was homeless on and off for eight the opportunity to share stories of how mental illness or substance use years, bouncing from shelter to shelter, to the hospital and then the disorder has impacted their lives and streets.” Finally, Chris was able to get counseling, obtain medication make a pledge to support those who that worked and start the healing process. He found a steady job at live with mental illness or substance CVS Health and says, “CVS Health has been a godsend because [the use disorder. We know that even individuals who don’t live with these company seems] to understand the complexities of mental illness challenges can make a difference by and treat it with parity to other illnesses,” he says. speaking out for those who do. We’re also providing resources for those For people who work with someone who has a mental illness, Chris impacted, including access to face- to-face counseling sessions with says that understanding — not fear — is the best approach. Thanks to a licensed mental health professional. colleagues like Chris who share their stories through Stamp Out Stigma, we are changing the mental health narrative by encouraging an honest and open dialogue built on education and understanding.
43 Healthy44 Business
44 Overview People Business Community Planet About
Healthy Business Our role as one of the nation’s largest employers and a leader in the Fortune 500 provides us with an exceptional Our purpose is helping people opportunity to drive economic growth through job creation and across our supply chain. As we work to transform on their path to better health. health care, we are committed to operating a healthy business for all our stakeholders, including our patients, We understand that the way customers, shareholders, clients, partners, communities and colleagues. That means being a valuable employer, we do business is a big part of committed business partner and an active member of the communities how we can affect the health we serve. Our colleagues are the force behind CVS Health’s transformation of millions of Americans. of the health care experience. Our commitment to them includes a best- in-class rewards package, an inclusive workplace and programs that support our diverse range of colleagues in healthy, fulfilling careers at CVS Health.
We also know that our continued success depends on our commitment Material topics aligned with this pillar: UN SDGs: to doing business with honesty, integrity, transparency and accountability. We remain steadfast in our commitment to • Employee Health and Safety • Ethics and Compliance • Quality Education (4) doing the right things in the right way, • Diversity, Equity and Inclusion • Workforce Development • Gender Equality (5) complying with laws and regulations and • Data Protection and Privacy • Governance • Decent Work and Economic never compromising our standards. • Supply Chain Responsibility • Risk Management Growth (8) • Human Rights • Transparency • Responsible Consumption (12) Throughout our large operational • Wages and Benefits • Responsible Marketing footprint and including our supply chain, • Public Policy and Advertising we are committed to acting responsibly with respect for human rights, privacy, information security, public policy, marketing and advertising.
45 We reach more than 100 million ~4.5M people annually through customers served our multiple touch points: by approximately 9.9K CVS Pharmacy locations, daily 102M+ pharmacy benefit plan members 23.5M medical benefit members
Approximately 290K colleagues
46 Healthy Business Inspiring Health Care Innovators
As we work to inspire the next generation of health care providers, we believe that best-in-class workforce development initiatives are essential. Starting with strong recruitment initiatives and education programs, we are bringing the leaders of tomorrow to CVS Health. To ensure these new leaders thrive here, we are committed to fostering a safe and inclusive workplace, providing them with the programs, resources and tools they need to succeed at every step in their career. CVS Health supports our colleagues with development opportunities that strengthen and enhance their skills so they can build meaningful careers within the company. This allows us to provide quality employment opportunities for people of all ages and abilities. Since 1999, more than 115,000 people have transitioned from public assistance and into meaningful employment opportunities.
47 Overview People Business Community Planet About
Throughout our large, national create a best-in-class experience collaboratively to create new ideas footprint we have exceptional talent in for colleagues across the enterprise. and engage with leaders from our local communities. We invest in New and updated programming across business units and industries. communities and colleagues by supports colleague development, In 2019 more than 1,000 colleagues providing opportunities for education executive development, organizational participated in a business and career training. This includes design, talent planning and the immersion experience. programs for members of the military, success of our business. All of youth, mature workers and individuals CVS Health’s leadership development As part of the Aetna integration, Workforce Innovation with disabilities. We collaborate with programs were redesigned to we launched a cross-functional center and Development state and federal agencies, schools, support colleagues and meet their of excellence to support leadership universities, faith-based institutions learning needs. development, working closely with and community organizations in leaders across all areas of our delivering locally based career training In 2019, we launched developU business. We developed a suite of In 2019, we hired: and workforce development programs, as our enterprise brand for career tools that can be tailored for learning helping drive economic development development. Professional skills needs across the enterprise. This Nearly and building a future workforce. workshops were offered each month, approach keeps our high-potential with updated course schedules colleagues engaged through a journey As a best-in-class employer, published quarterly. Workshops focus that combines on-the-job training CVS Health invests in our colleagues on best practices and practical with results-based learning and 10.5K to support their own career growth. application of interpersonal and models including in-person and We embrace a culture of learning from workplace skills for developing key online mentoring. colleagues through a colleague’s first day of employment. capabilities and building career workforce innovation This is demonstrated through a robust potential. Courses are instructor- programs and online orientation program that pairs led, held virtually and range from recruitment strategies new hires with seasoned colleagues 60–90 minutes in length. More and continues throughout a colleague’s than 13,000 colleagues took a career with online and in-person developU workshop in 2019. curriculum for skills enhancement, mentorship programs and leadership We also created a new department development opportunities. to provide business immersion 1.2K+ experiences for colleagues. Business youths for full- and Enterprise-Wide Leadership immersion experiences are innovation part-time summer Development Initiatives tournaments, strategy execution In 2019, we worked diligently to workshops or visits to other positions incorporate best practices in training companies, all designed to provide and development as part of our Aetna insights and develop outside-in integration activity. Our goal was to thinking as participants work
48 Overview People Business Community Planet About
Offering Best-in-Class Learning curriculum is now available a career within the company. expanded Heroes2Careers to a total Training Programs to colleagues who wish to enhance Participants receive classroom training of 10 bases, with new locations Similar to our approach to leadership their language skills with medical and complete a 12-week internship including Fort Bliss, TX; Shaw Air development, we offer training and Spanish. Together with Rosetta at a nearby CVS Pharmacy, followed Force Base, SC; Joint Base McGuire- education for colleagues that meet Stone® and Canopy Learn, we are by a virtual job tryout. Following the Dix in New Jersey; and the USS them where they are with accessible, training our retail pharmacists completion of their service, veterans Carl Vinson, a U.S. Navy ship that ports on-demand resources for skills and MinuteClinic practitioners are eligible to apply for any position in Bremerton, WA. Since 2015, we enhancement. We work to ensure with tailored Spanish language at CVS Health. have hired nearly 18,000 colleagues our training practices consider learning programs. with military experience and more updated, tech-enabled tools and In addition to CVS Health’s participation than 7,000 military spouses. • Continuing our implementation of keep our colleagues informed of new in SkillBridge at Fort Bragg, the getAbstract, a library of leadership developments in our industry that base hosts our company’s Talent In addition to supporting veteran talks, book summaries, videos and are relevant to their roles. Connect Center (TCC), a training and colleagues and ensuring veterans other interactive content colleagues employment facility. The TCC guides can transition from service to careers can access on any device. In 2019, Key 2019 training and education veterans and their spouses through at CVS Health, our commitment to more than 12,000 colleagues used programs included: CVS Health career opportunities America’s 19 million veterans includes this service. nationwide, providing assistance providing access to high-quality, • Enhancing our cultural competency Investing in Job Training throughout the application process, affordable health care. In 2019, training for all MinuteClinic nurse including support with resumes and CVS Health expanded its relationship Developing Meaningful Career practitioners and physician virtual interviews. Since 2016, we have with the Department of Veteran Affairs Paths for Military Community assistants, helping to improve trained 175 service members in our under the MISSION Act. Read Transitioning to post-military careers outcomes when serving Hispanic store manager training program, which more about our work with the VA can be a challenge for thousands of and African American patients, is run in part by CVS Health colleagues to provide veterans with accessible veterans and their families. CVS Health as well as the LGBTQ community. who are also veterans. In addition to and affordable care in the Healthy is dedicated to recruiting, hiring, We offered two cultural competency the training provided at the TCC we are People section on page 26. training and retaining veterans to ease trainings per month, with more than also providing training to transitioning this transition and utilizing their 3,000 MinuteClinic colleagues service members in Virginia and Hawaii valuable skills and expertise. participating in 2019. as part of the Department of Defense SkillBridge program. Our Military • Growing our collaborations between We continued the expansion of our Community Initiative Program provides MinuteClinic and the National work with the Department of Defense access to the store manager training Association of Hispanic Nurses SkillBridge Initiative at four military program through the Hire Our Heroes and the National Black Nurses bases: Fort Bragg and Camp Lejeune Fellowship Program. In addition, we Association to infuse these in North Carolina, Norfolk Naval Base work with transitioning service organizations’ best practices into in Virginia and Schofield Barracks in members, veterans and military our internal training programs. Hawaii. As part of this initiative, spouses to help connect them to members of the military who are • Launching a Language Learning opportunities throughout our business transitioning into civilian life connect Initiative to better serve our Spanish- — including as store associates and with a CVS Health colleague to learn speaking patients in retail managers, pharmacists, MinuteClinic about job opportunities and explore pharmacies and clinics located in nurse practitioners and leaders in how their skills can translate to Hispanic communities. Language our corporate offices. In 2019, we
49 Overview People Business Community Planet About
Our Commitment to Workforce Additionally, our involvement with the Innovation and Talent U.S. Department of Labor Registered At the forefront of our workforce Apprenticeship program for pharmacy development programming are our technicians has expanded to 20 states, Workforce Innovation and Talent with a total of 8,500 registered Centers (WITCs, formerly referred apprentices hired since it launched to as Regional Learning Centers). in 2005. Employee Spotlight At our WITCs, we invest in building knowledge, skills and abilities for Part of our commitment to providing community members and cultivating hands-on training and learning Celia Lichtman, an associate at a CVS Pharmacy new talent, including apprentices. Our opportunities to our future pipeline centers in Boston, Cleveland, New York of colleagues includes removing in Rockville, MD, was honored by the Jewish Social City and Washington, D.C. partner with barriers to training for people of Service Agency (JSSA) in Rockville, with the agency’s community workforce agencies to all abilities. Our nationally recognized consumer award for her outstanding work and provide underserved individuals with program for individuals with performance at CVS Health. Celia was part of the the resources to help them grow their intellectual and development careers in health care. The WITCs disabilities and visual impairments, work readiness training program for people with provide a supplement to classroom Abilities in Abundance, provides disabilities provided in collaboration with JSSA. training, offering hands-on learning the support such individuals need She advanced rapidly, starting as an extern at the in a simulated CVS Pharmacy with to discover new career paths. store, hired as a cashier in 2017, promoted within the support of colleagues who Abilities in Abundance offers skill specialize in these roles. development, job training and one year to overnight shift, then daytime shift placement opportunities. supervisor. Today, Celia is pursuing her pharmacy In 2019, nearly 2,000 community technician license. Along the way, Celia has been members participated in a WITC development program, with many named Employee of the Month and has received We set a goal to hire 8,000 joining CVS Health as pharmacy registered pharmacy technician additional awards for her attendance and outstanding technicians and store associates apprentices by 2022 and provide customer service. following their training. Retention rates these new colleagues with among CVS Health colleagues who classroom and online instruction. have participated in a WITC program In 2019, we surpassed that are 35 percent higher than for goal, hiring more than 9,000 colleagues who have not. Current registered apprentices. colleagues also receive training at the WITCs, including nearly 9,000 in 2019. In 2020, we will launch a new WITC in Philadelphia, co-located on the Orleans Technical College campus.
50 Overview People Business Community Planet About
Since 2012, Abilities in Abundance ongoing alliances with organizations has worked with more than 600 such as the American Society on partners and engaged more than Aging, the National Caucus and Center 4,300 participants. As part of Abilities on Black Aging and the Network of in Abundance, we work with the Jewish Human Service Agencies. National Consortium of State-Operated Comprehensive Rehabilitation Centers CVS Health also supports youth just (NCSOCRC) and the Council of State beginning to explore their future by Removing Barriers to Employment Administrators of Vocational introducing them to meaningful health Rehabilitation to operate training care career paths. Our STEM-enriched, centers inside rehabilitative facilities. nationally recognized program, Our commitment to provide training and career By the end of 2019, CVS Health had myCVS Journey Pathways to Health established more than 50 training Care Careers, builds age-appropriate opportunities extends to all communities, and centers, in conjunction with various awareness, exploration and in 2019, we partnered with the NAACP to launch community partners across the preparation for health care careers, the organization’s national One Million Jobs campaign country, with 26 geared toward reaching 2,600 youth in 2019. From to hire from the formerly incarcerated population. individuals with disabilities. People pharmacy store visits for elementary with disabilities bring valuable and school students to job shadowing This program recognizes that a steady job is key to diverse life experiences to our and mentorships for high school supporting individuals in successfully reintegrating workforce, and we’ve hired 32 as students, the program provides a into society. Prior to our participation in One Million colleagues since 2015. firsthand introduction to opportunities Jobs, CVS Health had established best practice in pharmacy and health care. Investing in Job Candidates policies and procedures for the second chance of All Ages To support Hispanic students community, enabling us to provide thousands of Our perspective on strategic diversity interested in health care careers, meaningful career opportunities. management to build a diverse LEAD by CVS Health works with and inclusive workforce includes the Hispanic Heritage Foundation the belief that mature workers hold and the National Hispanic Medical untapped potential. With an aging Association to reach elementary population in the U.S., we are exploring and middle school students in new strategies to attract this growing communities across the country. employee base and support the evolving needs of our customers. The CVS Health Foundation Through our Talent Is Ageless donated nearly $1.4 million in program, we collaborate with industry 2019 to help aspiring pharmacists thought leaders and organizations and nurse practitioners achieve including federal, state and local their educational goals. government agencies. We have
51 Enhancing Community Health through Faith-Based Organizations
An emerging area of opportunity in local communities is through involvement with faith-based organizations and houses of worship. These serve as strong centers of gathering and CVS Health can meet community members where they are, to make quality health care services and career opportunities more accessible. CVS Health’s national engagement with the Christian Methodist Episcopal (CME) Church, which began as a pilot with several churches in Memphis, emphasizes our shared goals of eliminating health care disparities, addressing the needs of caregivers and breaking cycles of poverty through meaningful employment. Together, CVS Health and the CME Church have reached into local communities to address social issues related to health care and are introducing workforce programs including apprenticeships, internships, job shadowing, clinical experience, direct hire and on-the-job training for mature workers, veterans and youth. The program is expected to expand to reach 1.2 million CME congregations nationwide.
52 Delivering Pharmacy Care to the Hispanic Community
In 2019, we and the National Hispanic Medical Association helped to launch the National Hispanic Pharmacy Association (NHPA), creating a national association that provides education on how to deliver pharmacy care to the Hispanic community and provide awareness of pathways to pharmacy schools for Hispanic middle and high school students.
53 Overview People Business Community Planet About
Championing Strategic another through a shared interest or authentic and diverse representation Diversity Management affinity, while also supporting our of beauty. In 2019, WISE members We want to attract and support workforce representation goals and provided their perspective on how a diverse workforce that reflects the business objectives. In 2019, a key to engage colleagues across the many customers, patients, members priority was integrating our CRGs enterprise through marketing and and communities we serve. To do this, across the enterprise. Through these communications about CVS Beauty we engage colleagues across our efforts, we now have 15 CRGs, with Mark. Learn more about the enterprise supported by the more than 23,000 colleagues currently CVS Beauty Mark initiative in the governance of a senior leadership participating in at least one CRG. Healthy People section on page 40. team who believe that a diverse workforce creates a healthier, stronger Each CRG identifies opportunities and more sustainable business. Our to support business initiatives by Most people know that Diversity Management Leadership providing key insights and solutions barbershops and salons are Council (DMLC), a cross-functional that use the unique perspective gathering places within the group of senior leaders, appointed of its members. Our DRIVEN CRG African American community. by our CEO, works with our Strategic provides members of all generations There are often opportunities Diversity Management leadership with opportunities to grow with to have honest conversations team to embed diversity across all CVS Health by focusing on about health; recent studies have facets of our business. For our efforts, development, mentorship and shown these spaces can be CVS Health has been recognized as networking, while providing strategic influential in connecting patients a DiversityInc Top 50 Company, named input to the company on how to best to screenings and treatment. to Bloomberg’s 2019 Gender-Equality communicate with all generations. At a Las Vegas heart health event Index and earned a 100 percent In 2019, DRIVEN partnered with hosted at a local barbershop, score on the Disability Equality Index, the Movember Foundation to host individuals received health meaning the company is recognized men’s health awareness events for screenings, including blood as a “Best Place to Work for Disability colleagues, while also partnering with pressure, cholesterol, weight Inclusion.” the merchandising team to sample and glucose monitoring, with shaving and facial hair care products a local MinuteClinic practitioner Our strategic diversity management from our brand partners. Additionally, on site to help patients navigate strategy emphasizes workplace DRIVEN promoted the availability potential concerns. representation, inclusion and of CVS Health’s myEAP (Employee belonging, talent management and Assistance Program) to raise a diverse marketplace. Our strategy awareness of resources available comes to life in many ways, from to colleagues and hosted dedicated Colleague Resource Group (CRG) training sessions. activations and supporting business impact to community events. The Women Inspiring Success and Excellence (WISE) CRG supported Growing Colleague Resource Groups marketing and merchandising efforts Through our CRGs, colleagues have around the CVS Beauty MarkTM the opportunity to connect with one initiative, which provides a more
54 The Strategies for Success Multicultural Women’s Program
The Strategies for Success Multicultural Women’s program is an eight-month virtual leadership program for women of color, developed with Bonnie St. John, a Paralympian, author, leadership expert and founder of the Blue Circle Leadership Institute. To date, nearly 200 high-potential multicultural women from our company have completed this program.
55 Overview People Business Community Planet About
ANative Capabilities Colleague Resource Celebrates the rich and diverse Increases awareness of the important cultures, traditions and histories of role played by customers and Groups at CVS Health American Indians and Alaska Natives, colleagues with disabilities in our while also acknowledging the workforce, workplace and marketplace important contributions of Native by taking action to foster, at all levels people in the past and present. of CVS Health, an inclusive, supportive environment that empowers all Asian Professional Network individuals with differing abilities Association (APNA) and their allies. Dedicated to the personal and professional development of Asian DRIVEN American colleagues. Development is Provides members of all generations achieved through blend of vehicles, with opportunities to grow with such as peer mentorship, community CVS Health by focusing on outreach, philanthropic achievements development, mentoring and and cross-CRG involvement. networking, while providing strategic input to the company on how to best Black Colleague Resource communicate with all generations. Group (BCRG) Dedicated to the personal and Faith professional interests of colleagues Helps colleagues on their path to better who self-identify as African, African health by building awareness and American, Black, Cape Verdean, West educating about religious diversity, Indian or being of African descent. increases employee engagement by Membership is open to all colleagues, demonstrating the value of diversity regardless of race or ethnicity, and the and supports faith-based alliance group promotes inclusion, networking, opportunities that advance enterprise community outreach and mentorship. growth initiatives.
BRAVE Family and Caregivers (FC) Engages colleagues to support Empowers colleagues to become programs that honor veterans and informed, successful and engaged their families, while leading the way in in the workplace by convening making CVS Health an industry- colleagues who are parents/caregivers recognized employer of veterans and to provide mutual support. FC supports active members of the National Guard the growth and development of and Reserve. healthy families by working with community organizations.
56 Overview People Business Community Planet About
FitClub Pride+ Colleague Resource Embodies the CVS Health purpose of Builds and facilitates inclusion helping people on their path to better for Lesbian, Gay, Bisexual and Groups at CVS Health health, through group activities — Transgender colleagues and their including running, yoga and healthy allies. Open to everyone, this group (continued) eating — that help colleagues live has a national focus and structure. a healthier, more active lifestyle. Virtual GreenTeam Addresses the needs of a growing Promotes environmental awareness, virtual workforce, promoting while making environmental connections, engagement and sustainability a relevant part of every collaboration across the enterprise, colleague’s role and responsibility while helping to enable CVS Health through education and volunteer to attract and retain the best talent, opportunities. regardless of location.
Juntos Women Inspiring Success and A multicultural organization composed Excellence (WISE) of members of Latin ethnicities. Provides colleagues, especially The group cultivates a positive women, at CVS Health with ecosystem, where Latin cultural educational, mentoring and volunteer awareness promotes inclusivity opportunities that will promote through collaboration opportunities empowerment to develop leadership in our Latin communities, reinforced and networking skills for continued through colleague empowerment. industry success.
Outliers Connects analytics professionals, both current and aspiring, within the organization to promote thought diversity and data-driven decision making.
57 2019 Diversity Recognition
Top 50 Company for Diversity by Diversity, Inc. (ranked 27th)
#1 Company for Supplier Diversity by Diversity, Inc.
Diversity Plus Top 30 Champions for Diversity
2019 Women Worth Watching: Maly Bernstein, Karen Lynch and Mayra Boitel
2019 LatinaSTYLE Top 50 Company
2019 LatinaSTYLE Top Employee Resource Group of the Year (for our CRG, Juntos)
2019 Providence Business News Diversity & Inclusion Award – Health Care Category
Greater New England Minority Supplier Development Council – National Corporation of the Year and Buyer of the Year
WE USA Magazine, 2019 Best of the Decade
WPEO Commitment to Success of Women’s Business Enterprise
58 Overview People Business Community Planet About
Meeting the Needs of 300,000 colleagues across the To support colleagues and their Ensuring Colleague Safety Diverse Customers country, we have an opportunity to families in career and personal A holistic view on colleague health In addition to our workforce, we are use their experience to impact the development goals, we offer several begins with a strong commitment focused on reflecting the diversity way we approach a person’s overall college partnerships that allow our to health and safety; our robust safety of the communities we serve across health and well-being across our colleagues to pursue an undergraduate program has earned the trust of our our business operations. business. As a health care innovation degree with no upfront out-of-pocket colleagues and helps reduce risks. company, we are investing in our costs, as well as graduate degree and In 2019, we implemented Safety At CVS Pharmacy, the CVS Beauty colleagues to create a best-in-class non-degree programs that allow our Service Plans (SSPs) in multiple Mark initiative, detailed in the Healthy suite of programs and offerings to help colleagues to take full advantage of business units, analyzing data and People section on page 40, provides them — and their families — achieve our tuition reimbursement annual limit. concentrating on key areas of risk customers with a more authentic and their best health. We also offer services for dependent to reduce the chance of incidents. diverse representation of beauty in the college planning, including 529 and We began this process at our retail imagery located throughout our stores, In 2019, we developed our new other tuition planning resources and locations in March 2019, expanding marketing materials, websites, mobile compensation and benefit program, online educational programs. Our to distribution centers throughout the apps and social media. Total Rewards. This new, transformative education assistance provides up to year. Our safety metric dashboard program blends the offerings of $3,000 per year for both full- and provides a detailed overview of where To meet broader customer and patient two organizations with a shared part-time colleagues for degree we see best-in-class safety needs, Aetna Industry Solutions offers commitment to help colleagues on programs at accredited institutions and performance and where we may benefits solutions to companies that their path to better financial and up to $1,500 for job-related certificates have an opportunity to reduce risk. meet the needs of specific workforces. physical health, delivered through and certifications. Through the We focus on identifying causes and For example, the benefits package a comprehensive compensation and CVS Health Foundation, we also offer improving performance when for the hospitality industry offers benefits package that helps us attract, scholarships to children of colleagues workplace incidents occur. features that make health care easier retain and engage our talent. Learn — including $600,000 in scholarships and more accessible for hospitality more about all our offerings to help to more than 200 students in 2019. Through the implementation of SSPs workers, such as preventive and colleagues on their holistic health care in 2019, we also engaged leaders in wellness care available at employees’ journey in the Healthy People section Through our financial education promoting a culture of safety. With worksites. In an industry in which on page 41. program, we are helping colleagues safety task forces in place at each 24 percent of workers are Hispanic, achieve better financial health. distribution center, we empowered member enrollment materials in Our investment in colleague health Launched in early 2020, the program leaders and safety business partners Spanish, dynamic online educational extends beyond physical, mental includes access to personalized, to identify policies, procedures and content and bilingual customer service and emotional well-being. We are one-on-one financial planning processes that could improve their support are critical elements to the supporting people at all the different sessions, online assessment tools to own operations. customized care approach. stages of their life while they are with gauge understanding financial goals, CVS Health — from supporting the debt management and plans for Total Rewards for Colleague advancement of their education and retirement and other life events like Health and Well-Being personal development to navigating purchasing a home. Colleagues As we transform the consumer health the addition of a new family member, are incentivized to take a financial care experience, we are focused on we are providing colleagues with a wellness assessment and build their supporting our colleagues on their suite of resources to help them every own personalized financial health care journey. With nearly step of the way. management plan.
59 Stepping Up for Safety
We started using step ladders in our stores to assist with activities such as stocking shelving units, with the goal of reducing colleague injuries. These injuries decreased by nearly 40 percent in 2018 and an additional 25 percent in 2019. Through the implementation of this program, CVS Health has seen more than $3.2 million in cost reductions and more importantly, made a safer and more efficient workplace for our retail colleagues.
40% reduction in injuries in 2018, plus and additional 25% in 2019
60 Healthy Business Continuing Best-in-Class Governance Practices
As a leader in health care, we are committed to being among the best companies from a governance standpoint. Through the leadership of our Board of Directors and senior leaders, we maintain transparency and integrity across all of the ways we govern our business, including compliance, privacy, information security, public policy and supply chain responsibility. It is the responsibility of our Board of Directors to guide our policies and practices. Board members work closely with our senior leaders to ensure we deliver on our purpose, while executing on our business strategy. Our Corporate Governance Guidelines provide this framework, outlining performance expectations of our Board of Directors and its relationship with management, while also meeting the needs of our stockholders.
61 Overview People Business Community Planet About
A strategic approach to risk mitigation. Information Security Completed a functional inventory across the organization, Achievements in 2019 allowing us to measure maturity of global security functions as part of our Aetna integration activities. Important components include identifying internal and external risk factors and priorities for our integration process.
Best practice design and standardization. Aligned strategy across the organization by establishing consistency in processes and procedures, yielding more mature security practices throughout the enterprise.
Comprehensive third-party risk management. Evaluated third-party risks through IT, information security, procurement and key business functions. We completed a comprehensive risk management process in 2019 to evaluate and qualify third parties that store, process, transmit or destroy data.
Protection from phishing attacks. Reinforced good email hygiene to reduce the impact of phishing attacks against both colleagues and customers. In 2019, we performed both phishing and vishing (voice phishing) assessments enterprise-wide and continued to provide colleagues with phishing tools and alerts.
Using data analytics to monitor threats. Continued to effectively utilize data science tools and techniques to monitor for threats to our business. Our data scientists will continue to pursue innovative security management techniques in 2020.
62 Overview People Business Community Planet About
Promoting a Strong Culture CVS Health continuously works to necessary and for solutions that could of Compliance elevate our protection of personal be easily implemented within the Our commitment to compliance and patient health information. Our existing statutory and regulatory starts at the highest levels — with patients, customers and colleagues framework to reduce costs for our CEO and Board of Directors. Our trust us with their valuable personal consumers, patients and clients. program promotes the importance of information, and it is our responsibility By lending our voice to policy compliance across our business and to safeguard it. conversations on access and incorporates the seven elements of affordability, we remained focused Expansion of Preventive an effective compliance strategy as In 2019, we maintained and renewed on putting patients’ health first. Care Benefits outlined in the Federal Sentencing our independent certification of Guidelines. Our compliance program essential security practices and and policies apply to all colleagues, the completed audits of our information CPA-Zicklin Index score of In July 2019, the Internal Board of Directors and certain vendors. security controls, in accordance with 92.9 percent (Trendsetter) in 2019. Revenue Service (IRS) guidelines established by the American This annual, non-partisan study announced it would add CVS Health colleagues demonstrate Institute of Certified Public is used as a resource for those certain medical care this commitment through our annual Accountants (AICPA). seeking to understand which Code of Conduct training, which public companies lead in services for a range of 99.9 percent of colleagues completed Advancing Public Policy transparency and accountability. chronic conditions to the in 2019. We also continued to On both a national and state level, list of preventive care enhance course design and streamline we remain focused on advocating benefits that may be content to be timely and relevant for legislation to improve access Responsible Marketing for our colleagues with the help of to quality, affordable health care for and Advertising covered by a high a new Compliance Training clients, members, patients and We are committed to the highest deductible health plan Steering Committee. consumers. We collaborate with ethical standards in our business with a health savings federal and state policymakers, operations and our marketing account prior to satisfaction CVS Health has maintained a voluntary industry peers, the business practices, and it is our goal to arbitration program that provides for community, nonprofit and civic communicate about our business of the deductible. the efficient and fair resolution of partners to ensure people get the transparently and responsibly to our CVS Health urged the employment-related claims. In right care at the right time, in the customers, colleagues, clients and Administration to take this addition, colleagues, business right setting. patients. In 2019, we released our step and had long partners, patients and any other Commitment to Responsible individuals with concerns about our In 2019, we focused our efforts on Marketing Practices, which advocated for an expansion company can call our anonymous and engaging policymakers around demonstrates these beliefs and of preventive care benefits confidentialEthics Line. Each call to improving health outcomes, protecting aligns to our business strategy. to include drug coverage our Ethics Line is investigated and the consumers from surprise medical for chronic conditions. company promptly addresses any bills and lowering high prescription Our focus on transparency and ethical verified compliance issues. drug costs. Additionally, we were standards is brought to life through This action will improve central players in the policy dialogue the CVS Beauty Mark. Launched in health outcomes and help Protecting Data Privacy and on social determinants of health, the 2019, the Beauty Mark is a watermark make drugs more affordable Information Security opioid crisis and our vision for the that signifies imagery advertising at the pharmacy counter. Responding to the needs of an transformation of health care. We beauty and personal care products increasingly digitally focused society, advocated legislative solutions where has not been digitally altered.
63 Overview People Business Community Planet About
This commitment to authentic, we introduced in 2019, outlines our maintained our status as a member CVS Pharmacy in early 2020, in which unaltered images includes the imagery vision and aspirations for responsible of the Billion Dollar Roundtable, with we will sell product at select stores and created for our stores, marketing sourcing, as well as the principles that more than $2.2 billion spent with small evaluate results to determine success. materials, websites, apps and social we expect to guide our suppliers. and diverse suppliers in 2019. We also media. For more information on continue to work toward our 2020 goal Safeguarding Human Rights Beauty Mark, please see the Healthy We work closely with our suppliers to to spend $1 billion with diverse Tier II Our commitments and policies related People section on page 40. ensure the companies we work with suppliers, having spent more than to human rights align to internationally are sharing our commitments to $750 million in 2019. recognized standards and are aimed A key component of our approach to operating a healthy business. at preventing adverse impacts in responsible marketing is being We work closely with our suppliers our direct operations. We require all intentional about the messages we Investing in Diverse Suppliers to ensure diverse- and women-owned colleagues to review and acknowledge send to our customers and patients Our commitment to diversity extends entities maintain their certification and our Human Rights Policy annually, and how those messages impact their into our supply chain and we’re have access to important programs to which outlines our commitment to health. In our health care services proud to be recognized as a leader build their businesses. In collaboration respecting and supporting these business, we invested in significant supporting the economic growth of with Roger Williams University in rights, including basic labor principles. improvements in marketing operations diverse suppliers. As we invest in Providence, RI, we offer a professional The policy applies to all our colleagues, and technology in 2019. We developed diversity, we’re supporting the development program, the CVS Health including the Board of Directors, a governance model for member communities in which we live and Executive Learning Series for Diverse as well as our supply chain and other communications, streamlined work. We collaborate with our own Suppliers. Offered both online and companies with which we do business. member messaging and implemented business leaders to ensure diversity is in-person in a flexible format for busy plain language initiatives to simplify a priority in how we source goods and small business owners, the program We also ensure compliance with what can often be complex topics. services, including those from provides practical education in topics our Human Rights Policy and We also introduced automated enterprises owned by women, people including leadership, human resources improvements to CVS Health’s communications tools to build of color, veterans and service-disabled and how to work with a large company. supplier factories through our social compliant editorial, business and veterans, people with disabilities and In 2019, 13 graduates completed compliance program. As part of advertising materials. These LGBTQ people, as well as businesses the program. our ethical sourcing efforts working investments ensure clarity and owned by people who are socially and/ with the Customs-Trade Partnership consistency in our messaging and or economically disadvantaged. We believe we have a responsibility Against Terrorism (CTPAT), we address improve our members’ experience. as a leader to use diverse suppliers critical risks in supply chain With a leading supplier diversity in other areas of our business. In 2019, manufacturing, including (but not Supply Chain Responsibility program, we have set bold targets to we launched the Merchandising limited to) health and safety, chemical With an operational footprint in the U.S. ensure our processes to meet those Accelerator Program, a pilot allowing management, environmental and a global supply chain presence, we targets are transparent. We continue diverse suppliers to present their sustainability, recognizing forced labor can generate positive economic and to refine our tracking systems, and this products to our merchandising teams and corrective action planning. Learn social impact throughout the world. year, we underwent a process to better to consider offering these products at more in the CSR Report Appendix. By responsibly working with our supply monitor our spending in order to report CVS Pharmacy. Through this program, chain, we can create a positive impact the full picture of our supplier diversity 18 suppliers applied and six were on the communities and ecosystems across our business. In 2017, we selected to present to our Executive on which our supply chain relies. Our reached more than $1 billion of spend Leadership team. Healthy Crunch was Responsible Sourcing Standard, which with diverse suppliers and have chosen for a test-and-learn program at
64 CVS Health Recognitions for Supplier Diversity
GNEMSDC – National Corporation of the Year and Buyer of the Year
WE USA Magazine, inclusion of CVS Health in the magazine’s 2019 Best of the Decade
WPEO Commitment to Success of Women’s Business Enterprise
WBENC, 2019 Top Corporations for Women’s Business Enterprises – Silver
Thank You Letter from Rev. Jackson for participation in Wall Street Project
Diversity Plus Top 30 Champions for Diversity
Diversity Inc. – Top 50, #1 for Supplier Diversity
65 CVS Health $5.6B Supplier Diversity in economic impact 2019 Impact 35K jobs supported $1.9B in wages created
66 Overview People Business Community Planet About
Each year CVS Health recognizes diverse suppliers Ruby Award Winners: who have exhibited a strong commitment to our mission Awards for CVS Health and values and demonstrated exemplary performance, industry leadership, business success, economic Diverse Suppliers impact and community involvement.
This year, we are proud to recognize:
Star of the Year Procurement Buyer Hollingsworth LLC of the Year Timothy Crandall, Rising Star of the Year Senior Consultant, New Normal Life Strategic Sourcing
Rising Star of the Year Advocate of the Year UHC Construction Services Bryant Spencer, Senior Director, Merchandising Collaborator of the Year Don McKneely, MBN USA Magazine Leader of the Year Maly Bernstein, Vice President, Merchandising Collaborator of the Year Mae Gammino, Gammino Creative Group Growth and Development Champion of the Year Roger Williams University Procurement Buyer College of the Year Jim Sullivan, Senior Contracts Manager
67 Ten Years with WEI
Minority-owned WEI provides IT solutions to CVS Health across our business, including digitized scales for prescription inventory, CVS Pharmacy location digital signage and mobile solutions for colleague training and more. Part of our commitment to generating economic impact is providing opportunities for our suppliers to grow their business and expand their own network of diverse suppliers. “Our longstanding relationship has created what I believe is the ultimate trickle-down effect,” said Leslie Rosas, Co-Founder and Vice President of WEI. “An organization like CVS Health that chooses to partner with a diverse supplier like WEI allows us to use more diverse suppliers in our supply chain and create a more diverse workforce.”
68 Healthy Community
69 Overview People Business Community Planet About
Healthy Community By working with other community- focused organizations and through innovative programs that can be executed On our journey to transform in a variety of communities, we are driving positive health outcomes and health care, CVS Health’s reducing overall costs. The strength of our business, and the strength of those businesses and commitment to supporting the organizations with which we work, help us address key public health challenges, while maximizing local impact. Our communities we serve remains work centers on being local and engaging people with the care they need, where they need it. We think about how we can a driving force in building improve the health of the communities we serve through strategic philanthropic investment opportunities — but also by healthier communities. using the inherent strengths across our business. From Project Health, our initiative to detect risks for chronic conditions among underserved populations, to providing free heart health screenings at MinuteClinic to support the American Heart Association, we are helping increase availability of accessible, affordable care.
Material topics aligned with this pillar: UN SDGs: Our roadmap for transforming community health is demonstrated through Building Healthier Communities, a $100 million • Access to Quality Health Care • Zero Hunger (2) commitment we made in 2019 to make • Community Investments • Good Health and Well-Being (3) community health and wellness central • Smoking Cessation • Quality Education (4) to our charge for a better world. Building • Social Determinants of Health Healthier Communities showcases how our best-in-class national organizational efforts, along with our deep local community relationships, directly improve health outcomes through customized approaches in communities across the country.
70 Healthy Community Investing in Community Health
With nearly 10,000 local touchpoints in communities across the country, CVS Health is delivering on our purpose of helping people on their path to better health through strategic community investments. Our approach to philanthropy starts with a look at key health disparities in cities and states. Our goal is to very specifically invest in the programs that will help alleviate these disparities, while also filling the gaps left in our commercial business. We support communities in a variety of ways — most notably through the more than $100 million invested annually through our company and the CVS Health and Aetna Foundations. In 2019, we donated more than $150 million in community support through philanthropic investments, in-kind donations, colleague volunteerism and giving, and in-store fundraising and cause marketing.
71 Overview People Business Community Planet About
Increasing Access to Health Care Project Health’s work expanded At the heart of our purpose of helping meaningfully in 2019, reaching people on their path to better health is 17 service areas across the U.S. and our commitment to breaking down the in Puerto Rico, and providing more barriers for people to access quality than $6.4 million of free medical and affordable care. Through key services. Our expansion in California community organizational efforts and stretched across the state with more We focus our giving in three key areas: programs, we are investing in health than 300 events, serving nearly care for underserved populations at 25,000 individuals. As we expand this the local level and improving outcomes program, it will also include more • Increasing access to health care to ensure that for those managing chronic conditions. screenings related to social determinants of health, including all Americans, especially those that are more Expanding Healthcare Services family, education, housing and access at-risk, have access to affordable, quality health with Project Health to fresh, healthy food. care. Our goal is to support even more patients, Our Project Health campaign connects particularly in underserved areas, to engage in multicultural communities with large Since its inception in 2006, Project numbers of uninsured or underinsured Health has delivered more than improving their personal health. residents to free, comprehensive $133 million in free health care services • Impacting key public health challenges, health assessments that detect early to more than one million Americans. risks for chronic conditions. Following In 2019, 45 percent of patients including chronic disease, prescription drug a biometric screening of blood reported they would change their misuse and abuse, food insecurities and tobacco pressure, cholesterol and glucose diet or exercise based on information use. Helping to alleviate these challenges helps levels, participants meet with a nurse from their screening, and 27 percent us fulfill our commitment to improving health practitioner and CVS Pharmacy noted they would follow up with their pharmacist, who provide referrals for primary care provider following the outcomes for all Americans. treatment and advice on follow-up screening. Looking into 2020, Project • Working with local communities on identifying care. For uninsured and underinsured Health plans to host hundreds of patients, we provide information on events across 16 cities in the United and addressing their most pressing health low- and no-cost provider options. States and Puerto Rico. issues. This includes everything from being We also offer an Individual Health responsive during times of disaster to helping Access Plan for all patients undergoing address the key social determinants of health screenings, with suggestions related to target numbers, nutrition and fitness. — especially in locales with fewer favorable health outcomes.
72 Project Health 838 in 2019 events 70,000 participants 215K biometric screenings 2,113 smoking cessation counseling sessions 2,672 referrals for flu shots $6.4M worth of free medical service
73 Overview People Business Community Planet About
Helping Communities Tackle Our collaboration with the Alzheimer’s Chronic Disease Association includes an annual in- As the largest retail pharmacy in store fundraising campaign at the U.S., we are working every day CVS Pharmacy during the month of to help patients manage their chronic November (National Family Caregiver conditions and improve health Month), national sponsorship of the outcomes. Six-in-every 10 adults Walk to End Alzheimer’s events across eventually suffer from heart disease, the country and engagement with local cancer, lung disease, stroke, Alzheimer’s Association chapters for Alzheimer’s, diabetes or kidney our colleagues and communities. A Future Without Alzheimer’s disease, the leading causes of death Funds raised through this campaign and disability and the primary drivers will also be used by the Alzheimer’s of the nation’s $3.5 trillion in annual Association to develop a new caregiver health care costs. We are working education program for in-person and “The Alzheimer’s Association is grateful for with some of the nation’s most online delivery in English and Spanish. the commitment and enthusiasm CVS Health respected organizations to make brings to the fight against Alzheimer’s. The a difference in the fight against these As the national sponsor of the Go Red devastating conditions. for Women movement, we work closely funds raised through our collaboration will bolster with the American Heart Association to our efforts to support families facing Alzheimer’s In 2019 we launched a new, three- advance research and awareness for and advance much needed research that will year $10 million collaboration with the heart disease and stroke, the leading one day change the future for millions.” Alzheimer’s Association to help build a killer of women in the U.S. Heart future without Alzheimer’s and other disease causes one-in-three deaths – Donna McCullough, Chief Development Officer, dementias. More than 5.7 million of women annually, and 90 percent of Alzheimer’s Association Americans live with Alzheimer’s or women have one or more risk factors other dementia-related illnesses today for developing heart disease. Through — a number that is expected to grow our support of Go Red for Women, we to 14 million by 2050. And more than host an annual in-store fundraising 16 million family members and friends campaign at CVS Pharmacy and currently serve as Alzheimer’s engage our colleagues in supporting caregivers. Our support of the women’s heart health through events in Alzheimer’s Association provides care local communities throughout the year. and support services for patients, their families and caregivers, while advancing research toward treatment, prevention and ultimately, a cure.
74 Overview People Business Community Planet About
Together, we are also empowering education and support services women to take charge of their for students. And through an annual heart health by knowing the five in-store fundraising campaign each personal health numbers that can August, we are raising critical funds help determine their risk for heart to support cancer patient services disease: total cholesterol, HDL (good) programs, breakthrough research and cholesterol, blood pressure, blood cancer prevention efforts, including sugar and body mass index. In 2019, tobacco control, the number one Affordable, Accessible Health Care we hosted free health screenings cause of cancer. to the Medically Underserved at MinuteClinic every Thursday throughout the month of February Since 2014, we have worked with for patients to know their numbers. the National Association of Free and Charitable Clinics (NAFC), to support The National Association of Free & Charitable One-in-three people in the U.S. will the needs of nearly 1,400 free and Clinics (NAFC) presented Eileen Howard Boone, be diagnosed with cancer at some charitable clinics nationwide. Together, Senior Vice President of Corporate Social point in their lives. As a long-standing we are able to support clinics to collaborator with the American Cancer increase access to quality care and Responsibility and Philanthropy and Chief Society, we are working together to support the management of chronic Sustainability Officer for CVS Health and President attack cancer from every angle, disease, provide more wraparound of the CVS Health Foundation, with the NAFC 2019 including reducing tobacco use, the services to address the social Safety Net Health Care Champion Award. This annual leading cause of cancer, to positively determinants of health and support impact cancer outcomes, reduce the treatment and prevention of substance award highlights the important work being done prevalence of tobacco-related cancer abuse, including opioid and tobacco. across the country to provide affordable, accessible incidences and help more people Patients served by NAFC member health care to the medically underserved. It honors on their path to better health. clinics who receive these services are an individual who through their actions has made an typically uninsured, underinsured or We have worked with the American otherwise unable to access health care extraordinary impact on the organization, the free Cancer Society and the Truth Initiative services. Since 2014, the CVS Health and charitable clinic and charitable pharmacy to deliver more than $5 million in Foundation has awarded more than community, and most importantly their patients. grants to more than 225 institutions of $9.7 million in grant funding to NAFC higher learning to help accelerate and in 45 states across the country to serve “Under Eileen Howard Boone’s leadership, our expand the number of 100 percent those with the greatest need in our smoke- and tobacco-free college local communities. This support has member organizations have grown in their ability and university campuses, as well as allowed NAFC’s member clinics to to support their communities and their patients community colleges and historically provide care to tens of thousands of Her personal commitment to the medically black colleges and universities through additional patients, added thousands underserved in our country is evident; she is our Be the First initiative. The grants of hours of operations and helped help institutions take a comprehensive save more than $12 million in avoided a thought leader when it comes to philanthropy, approach to implement tobacco-free emergency room costs. enhancing collaborations and expanding health campus policies, including cessation, care access to the medically underserved in the country.” – Nicole Lamoureux, NAFC President and Chief Executive Officer 75 HealthHUB Community Rooms
Our new HealthHUB locations include a community room where our care concierge teams work with customers and patients to provide health and well-being resources. These rooms are also a great resource for our community partners to host on-site educational events for patients to share information about programs and disease management. In Houston, the local American Heart Association team utilized our community room to host heart health education sessions for local patients.
76 Overview People Business Community Planet About
Tackling Public Health leading anti-tobacco and youth- Together, we developed a tool has fallen 35 percent among men Challenges serving organizations to support designed for pediatricians and while increasing 87 percent among A critical component of the opportunity education, advocacy, tobacco other children’s health professionals women. Although anyone can get lung we have to transform community control and healthy behavior interested in effective tobacco cancer, the number one risk factor for health is taking on some of our programming. This initiative not only counseling techniques, including lung cancer is smoking. With the nation’s most pressing public health focuses on the use of combustible approaches to discuss cessation American Lung Association (ALA), we challenges. We are committed to cigarettes, but also addresses the treatments and properly document are supporting programs that allow protecting and improving the health skyrocketing rate of e-cigarette e-cigarette use during medical visits. smokers in select communities across of people and their communities. use and vaping among youth. the country free access to ALA’s • Discovery Education and the Through investments in education, proven-effective Freedom From CATCH Global Foundation: prevention and improvements in To help combat these alarming Smoking® program. Support for these Equipping educators with environmental and social factors trends, CVS Health and the CVS Health programs is provided through Be The resources to counter the vaping that support a healthy lifestyle, we Foundation awarded more than First and gets us closer to the trend. Be Vape Free provides online are having a positive impact on $16 million in grants in 2019 to American Lung Association’s vision e-cigarette prevention resources community health. organizations that provide an array of a world free of lung disease. at no-cost to educators teaching of tobacco-free programs, including: grades 5–12. The CVS Health Be the First: A Tobacco-Free Foundation committed $3 million Generation • Expanding youth tobacco and to fund this multi-year collaboration “The spread of e-cigarette use Our most important work to e-cigarette prevention curriculum that uses the evidence-based among youth jeopardizes the improve the health of individuals in classrooms and communities program, CATCH My Breath and progress made in reducing smoking and communities is our vision for across the country the best-in-class distribution model over the last two decades. By a tobacco-free world. As we support • Supporting clinicians with trainings through Discovery Education. collaborating with experts and patients managing chronic conditions, and resources on screening youth aggressively investing in innovative one of the best ways we can advance for tobacco and nicotine use • DoSomething.org: Engaging strategies, we believe that we can our purpose of helping people • Helping youth become tobacco-free youth to spread the word. help reverse this disturbing trend.” on their path to better health is to help advocates in their own communities DoSomething.org is a global – Troy Brennan, M.D., M.P.H. and those who smoke to quit and ensure • Creating more smoke-free college organization motivating youth to Chief Medical Officer for CVS Health. those who don’t smoke never start. campuses across the country take action around social change through campaigns that make an This year marked the five-year We were proud to be the first — and impact. The Hit We’ll Take campaign anniversary of removing tobacco from Though research from the CDC shows continue to be the only — national worked with YouTube sensation our stores. Although we are proud of the percentage of high school students pharmacy chain to remove tobacco Silentó to share a guide for youth our progress, we know we have who are current cigarette smokers products from our store shelves. In to teach friends about the dangers additional work to do. We collaborate decreased in 2019, e-cigarette use is addition to investing in cessation of e-cigarettes. with the following organizations to help a growing concern. More than 5 million programs for people of all ages, we combat the rise of e-cigarette use Since 2014, we have proudly served middle and high school students have made significant investments in among youth across the country: as national presenting sponsor of the reported using e-cigarettes, an tobacco prevention initiatives for American Lung Association’s LUNG increase from 3.6 million in 2018 and youth. Be the First, a five-year, $50 • American Academy of Pediatrics: FORCE initiative. Every five minutes 1.5 million in 2017. Youth who use million commitment by CVS Health Providing comprehensive in the U.S., a women is diagnosed with e-cigarettes are also using them more and its charitable foundations that education and clinical training lung cancer, yet in the last 41 years, frequently and are using flavored aims to deliver the first tobacco-free on e-cigarettes. the rate of new lung cancer cases products more year-over-year. generation, brings together the nation’s
77 Overview People Business Community Planet About
Across the country we are seeing a surge in the rates Tobacco Free of e-cigarette use among youth. We have partnered Rhode Island with many different stakeholders to bring education, advocacy and health behavior programs to students in local communities. In 2019, a key collaboration in our home state of Rhode Island helped advance this work through our support of Tobacco Free Rhode Island (TFRI), a program of the American Lung Association. In 2018, Rhode Island passed a law prohibiting e-cigarette smoking in all public schools and as a result, TFRI received many requests from administrators, faculty and staff who were looking for ways to raise awareness and comply with the law.
Through a $30,000 grant from CVS Health, TFRI began a year-long process of gathering stakeholders in an effort to create a recommended policy for Rhode Island Schools that would ensure compliance with the new smoke-free school requirement. This dedicated group comprised of school administrators, state agencies, medical professionals, prevention specialists, students, school resource officers, student assistance counselors and parents, who provided insights, expertise and research to develop the Tobacco Free Rhode Island model school policy. TFRI then provided trainings and technical assistance to schools across the state to help them implement this new model policy, reaching more than 12,000 students.
78 CVS Health Joins the Quit Big Tobacco Initiative
In 2019, CVS Health joined the Quit Big Tobacco (QBT) initiative, pledging to cut ties with any marketing agency that has tobacco or e-cigarette companies as clients. CVS Health added this requirement to all master service agreements and existing contracts with agencies.
In March 2020, CVS Health’s Chief Marketing Officer, Norman de Greve, was to join leaders from the QBT initiative at South by Southwest® 2020, prior to its cancellation, to discuss purpose- driven marketing and how ethical, health- conscious business decisions contribute to a healthier world.
79 Overview People Business Community Planet About
Supporting Partners to Address systems were used to screen, identify, voice for those in the most vulnerable Opioid Misuse engage and coordinate care for communities. Support from We recognize the importance of patients with SUD and OUD; protocols CVS Health, totaling $750,000 over the tackling opioid misuse at the local for prescriber practices, with an next three years, will support HRC as level, with local solutions. We’ve emphasis on clarity, safety and they tackle critical health issues faced launched education programs for effectiveness; and best practices for by residents in California related to teens and parents and support cohort participant organizations. prescription opioid misuse and abuse. organizations across the country This critical funding will also support to support prevention, treatment Through our company and the HRC’s Community Engagement and recovery efforts. CVS Health and Aetna Foundations, Network to Expand Resources we have invested more than $7 million (CENTER) Initiative, a three-year, The National Association of to support mitigating and preventing state-wide effort designed to expand, Community Health Centers (NACHC) prescription drug misuse and abuse develop and deepen harm reduction is a long-standing collaborator, over the last three years. This includes services throughout California, which supporting hundreds of community an innovative relationship with will convene diverse stakeholders to health centers across the country in America’s Essential Hospitals — the address drug-related stigmas, chronic disease management and national association of safety-net supporting syringe services programs opioid misuse and treatment. The hospitals — to build a program to with training and technical assistance, CVS Health Foundation’s more than address the issue of opioid misuse, hosting state and national conferences $3 million commitment to NACHC dependency, overdose and treatment. and developing culturally relevant helps develop more efficient and Through a $3 million investment from resources as a means to be better effective systems for screening, the CVS Health Foundation, we will equipped to respond to the needs of identifying, engaging and coordinating fund more than 30 safety-net hospitals people who misuse and abuse care for patients using and misusing to add the Office-Based Addiction prescription drugs, their families and prescription drugs or other substances. Treatment (OBAT) model. We’ll also impacted communities in California. Our commitment increases access use the insights from those hospitals to medication-assisted treatment to build a learning collaborative on In 2020, we introduced two new and other recovery services. These the protocols and successes which collaborations through the CVS Health programs create safe, non-judgmental will be disseminated to the broader Foundation — focused on preventing environments for patients 300-member safety net hospitals. prescription drug misuse and helping and emphasizes safe, clear and people manage addiction. With Young effective protocols for prescribers. As part of our Building Healthier People in Recovery, we will support Communities initiative, we are investing peer-to-peer recovery models — The NACHC in collaboration with the in community partners that are a best-in-class approach to support CVS Health Foundation will be improving the health and wellness of patients seeking treatment from publishing a white paper, as well as a communities impacted by prescription prescription drug addiction. Through spotlight video, focused on how the opioid misuse and abuse. The Harm a nearly $100,000 investment, we will partner organizations from the first and Reduction Coalition (HRC) promotes support Young People in Recovery to second NACHC cohort worked to the health and dignity of individuals launch My Recovery is EPIC (EPIC), mitigate and prevent opioid misuse in and communities affected by drug a digitized version of YPR’s innovative underserved populations; what misuse and provides a critical and peer-tested life-skills curriculum.
80 Overview People Business Community Planet About
This includes improving access to Addressing Social housing, education and employment. Determinants of Health EPIC is informed by the four Approximately 60 percent of a person’s dimensions that the Substance life expectancy is influenced by social Abuse and Mental Health Services and environmental factors, such as Administration (SAMHSA) has access to proper housing or water and identified as being critical to air quality, combined with individual a successful life in recovery: health, behaviors like one’s dietary choices Making Pharmacists Teach a Success home, purpose and community. and screen habits. As a leader in health care, we understand that we have We are also increasing access to an unprecedented opportunity to District Leader Ilesh Gorasiya is responsible for safe disposal methods of prescription improve the health of individuals and medication in local communities. communities across the country, overseeing CVS Pharmacy locations for a portion Since 2014, we have donated more which is why we’re addressing the of the Houston, TX service area. Upon hearing about than 1,000 medication disposal units social determinants of health and the opportunity to get pharmacists volunteering their to local police departments to provide helping people improve their health professional expertise in the community through safe, public places where patients outside the clinical setting. can dispose of unwanted medications. Pharmacists Teach, Ilesh sprang into action and Learn more about our work Research shows that among social launched the program in only three months. Today, to provide safe disposal in local determinants of health, education Ilesh has a goal to reach each school district in the communities in the Healthy People has an outsized influence. CVS Health greater Houston area. Of the program’s impact, section on page 38. supported the development of the SMART model for student health, Ilesh says, “I’m extremely proud to lead Pharmacists Our pharmacists bring our purpose which stands for School Health Teach in our region and impact so many lives. I want of helping people on their path to Model for Academics Reaching All, every kid in the Houston area to know CVS Pharmacy better health to life by donating their Transforming Lives. A public-private as a place that teaches kids about substance time to go into classrooms to educate partnership, this innovative school teens and parents on the dangers of health solution brings quality, misuse disorder.” misusing prescription drugs. Through affordable care to students. In the Pharmacists Teach, we have delivered six years since SMART was launched, “Four years, six schools and about 3,000 students later, I am convinced more than 13,000 presentations participating schools have experienced that every child, with the proper guidance and tools, can make the across 48 states, the District of increases in graduation rates choice to live a healthier life and obtain their full potential.” – Nurat Columbia and Puerto Rico to nearly and school attendance, while rates Allison, RPh, Pharm.D. Pharmacist in Houston, TX area 570,000 teens and parents. of chronic absenteeism and suspensions declined. “I commend the collaborative work of CVS Health pharmacists. It is essential to equip our students with the knowledge to make healthy life choices and do everything we can to make them aware of the dangers associated with misusing prescription drugs and opioids.” – Lori Sartain, Assistant Director of Health and Wellness, Fort Bend Independent School District, Houston, TX
81 Our Investments in Affordable Housing
Our investments in affordable housing, totaling $50 million as of the end of 2019, help provide support for underserved and at-risk populations nationwide. Specific populations include those who require behavioral health services, are homeless or at risk of homelessness, have HIV/AIDS diagnoses, substance abuse issues or long-term chronic health conditions. We are also working with community organizations to provide access to services that help increase independent living skills, such as cooking and nutrition, financial literacy, health information classes, resident outreach and engagement, client- centered treatment plans and social support. Learn more about our investments in housing in the Healthy People section.
$50M in investments have been made in affordable housing as of the end of 2019
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In 2017, there were more than 70,000 deaths in the U.S. Helping to Address from opioid overdoses reported — the largest number Opioid Abuse in Virginia in a single year to-date, according to the CDC. In Virginia, the Department of Health declared the state’s opioid epidemic a public health emergency in 2016. Emergency department visits for heroin overdoses from January to September 2016 increased more than 85 percent compared to the same timeframe in 2015.
A $1 million grant from the Aetna Foundation to the Northern Shenandoah Valley Substance Abuse Coalition (the Coalition) will allow the Coalition to build an innovative model that will help law enforcement serve as a community resource for overdose victims and save more lives. By building a collaborative team of key community stakeholders, including law enforcement, case managers and counselors, the Coalition will connect non-fatal overdose victims with a support system before they are discharged from local hospitals.
“Virginia has made progress in combating the overdose crisis over the last several years, but we know there is more work to be done,” said Dr. Carey. “Tapping into one of our best resources, our men and women in local law enforcement, will move our efforts even closer to the frontline and will allow us to help save more lives moving forward.”
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Rates of chronic disease and other health outcomes vary The Healthiest Cities greatly in communities that have access to affordable, healthy and Counties Challenge foods, and quality health care services. Average life spans can vary by 20 to 30 years between communities that are just miles apart. To support health equity in local communities across the country, the Aetna Foundation has worked with the American Public Health Association and National Association of Counties to invite city- and county-level teams to participate in the Healthiest Cities and Counties Challenge.
In 2019, the Healthiest Cities and Counties Challenge (HCCC) awarded two grand prizes to city- and county-based teams that had outstanding impacts on the health of their communities. This was the culmination of a two-year competition among 50 teams chosen for HCCC. Community leaders in Bridgeport, Connecticut, received a $250,000 prize in the small city category for their work in developing the East End NRZ Pop-Up Market, the first healthy food retail establishment in the neighborhood in over 40 years. In Mecklenburg County, North Carolina, the Village HeartBEAT project was awarded a $500,000 prize in the mid-sized county category. Village HeartBEAT, launched by the County’s Public Health Department, brought together over 60 participating churches and cross-sector partners to reach over 24,000 members of the community with activities that ultimately decreased smoking and obesity rates among high-risk populations. Governors Ned Lamont (Connecticut) and Roy Cooper (North Carolina) participated in the award ceremonies for each winner.
84 Overview People Business Community Planet About
Supporting Local Communities average in all 10 categories measured. we can help further improve the health Bahamas. Additionally, through the We are making communities stronger Of the 81 metrics included in the of our communities. Launched in 2019, Aetna Foundation we made a in our journey to transform health. analysis, diabetes prevalence and our Building Healthier Communities $35,000 donation to World Central With nearly 10,000 touchpoints in local smoking rate have the strongest initiative is making community health Kitchen, an organization that communities that reach one-in-three correlation to life expectancy. and wellness central to our charge provides fresh, healthy meals to Americans each year, we are Research also found that poor self- for a better world. survivors of disaster. Our donation committed to improving the health of reported mental health has nearly provided them with nearly 12,000 the communities we serve for our the same negative impacts to life Supporting Communities in meals providing hope and comfort patients, customers, clients and expectancy as diabetes, smoking and Times of Disaster to those impacted. colleagues. Our approach to physical inactivity, as well as linking Over the last several years, we have • Puerto Rico: We worked with the community health is rooted in our to higher rates of poverty at the seen an unprecedented number of Hispanic Federation to assess the strategic community investments. We community level. natural disasters. When a disaster immediate needs of the community, closely analyze the health disparities strikes, we’re committed to supporting resulting in a donation of $100,000 in specific communities to understand relief and recovery efforts in local in product to residents and first what the needs are and how we can “Through our support of communities within the first 48 hours. responders. Our logistics and have an impact in improving outcomes. organizations across the country, We work with national, state and local distribution center teams then we know that the most effective entities first to understand the needs worked through the night to stock We know that the most effective and innovative solutions to in the local community and then a barge for departure the next and innovative solutions to improve improve health are consistently provide financial support, product morning with personal care products health are consistently developed developed by addressing the donations and employee volunteers. for residents (including diapers, by addressing the needs of each needs of each specific community. Our priority is to ensure that first baby wipes, sunscreen, tooth specific community. In collaboration The Healthiest Communities responders have the resources they brushes, bug repellent, etc.), as with U.S. News & World Report, the rankings continue to provide the need most to help their community well as clean-up products (gloves, Aetna Foundation supports the insights that are essential to recover and rebuild. trash bags, face masks, etc.) for Healthiest Communities rankings, identify key issues and support first responders. a groundbreaking report that evaluates community organizations, leaders In times of disaster, we work with and the health of nearly 3,000 communities and residents who are tackling the support local organizations and key Depending on the nature of the nationwide across 81 health metrics unique social determinants of national organizations like Direct Relief, disaster and the needs of the in 10 categories, from education and health that impact their respective the American Red Cross and the community, we may also staff storm population health to infrastructure and neighborhoods.” – Larry Merlo, Salvation Army to improve the health shelters with MinuteClinic nurse the environment. This interactive tool President and CEO of CVS Health. of people affected by emergencies. practitioners to provide basic health includes longitudinal data illustrating In 2019, we supported communities care services and write prescriptions where health outcomes have improved recovering from the devastating for those who have lost their or declined in key areas. This We are also dedicated to supporting impacts of Hurricane Dorian in the medications. We can also set up collaboration is one of many that community-based organizations to Bahamas and earthquakes mobile pharmacy trailers to fill emphasizes the integral role social ensure they have the most effective in Puerto Rico. prescriptions and offer supplies, factors play in the health of tools, resources and solutions to deliver prescriptions to those unable both individuals and communities. accelerate the improvement of health • Bahamas: We donated more than to leave their homes and waive care for individuals and families across $125,000 worth of product through prescription copayments and For 2019, the top five Healthiest the country. By strengthening our local our alliance with Direct Relief and in deductibles for those in the hardest- Communities score above the national support and community engagement, conjunction with NEMA of the hit communities.
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Top 5 Healthiest 1 Communities Douglas County, Colorado 2 Los Alamos County, New Mexico 3 Falls Church, 1 4 Virginia 3 5
2 4 Loudoun County, Virginia 5 Broomfield County, Colorado
86 Community Development in Texas
BakerRipley is among the largest community development organizations in Texas, serving nearly 600,000 children, youth, adults and seniors each year at more than 65 service sites, with a very large presence in the Houston market. Through wellness programs, including health education and physical fitness, patients are provided with connections to primary care and resources for healthy behaviors, including nutrition.
A $25,000 grant from CVS Health in 2019 helped BakerRipley expand three programs focused on care self-management for chronic diseases, diabetes and chronic pain. Through this relationship and our expansion efforts in the Houston area, we were also able to use our HealthHUB services for BakerRipley patients.
87 Employee Relief Fund
The CVS Health Employee Relief Fund (ERF) is a public charity designed to support CVS Health colleagues during times of unforeseen hardship. Primarily funded by donations from colleagues, the ERF provides tax-exempt grants of up to $3,000 to colleagues in need due to personal emergencies including natural disasters. The ERF has provided more than $2.8 million to colleagues in need since its inception.
$2.8M+ has been provided to colleagues by the Employee Relief Fund
88 Overview People Business Community Planet About
Extending Our Impact Through • Heart disease: The leading killer of We also work closely with Collaborations and Innovation women in the U.S. We are a national organizations across the country to We have big, audacious goals for sponsor of the Go Red for Women use our expansive reach to promote transforming health in our local movement, a signature campaign their causes. By hosting public service communities and rely on the power our of the American Heart Association, announcements to promote health partners can bring in helping advance which takes place in February. care causes and campaigns, we are our impact. Together, we can reach raising awareness with our customers • Lung cancer: The number one more consumers and make a greater and providing valuable in-kind cancer killer claims more lives difference for those who need it most. marketing and communications each year than breast, prostate and resources including in-store radio, colon cancer combined. With the Engaging Consumers for social media promotion and signage. American Lung Association, we Social Impact are helping to build healthier We are engaging key stakeholders Giving Back Through Colleague communities free of tobacco — in our journey to transform health — Volunteerism the leading cause of lung cancer. most notably, our customers at Each and every day, our colleagues CVS Pharmacy. We use our size and • Cancer: We’ve joined forces with bring our values of caring and scale to support the country’s leading the American Cancer Society to collaboration to life by donating their experts in tackling key public health attack cancer from every angle to time and talents to the communities challenges. Through our in-store impact cancer outcomes for the we serve. Through Building Healthier fundraising campaigns, we raised millions of patients affected Communities, we are committed to more than $20 million in 2019 to raise throughout their lifetime. driving $10 million in value of colleague awareness for critical causes. volunteer time to build healthier, • Alzheimer’s: More than 5.7 million Collaboration with stakeholders — more sustainable communities. Americans live with Alzheimer’s or including our suppliers — Through a robust volunteer platform, other dementias. We’re working with strengthens our commitments colleagues can identify volunteer the Alzheimer’s Association to help to community health. opportunities and engage with local build a future without Alzheimer’s for organizations to address unmet all patients, families and caregivers. Through our four annual in-store health and social needs. fundraising campaigns, we raise In 2019, we worked with a number of support and awareness of key key suppliers to extend our support for In 2019, our colleagues donated more chronic health conditions affecting community health through campaigns than $12 million in volunteer time to all Americans — especially our at CVS Pharmacy. Through these supporting thousands of organizations customers. Each campaign creative campaigns, we raised much in the communities we serve. From underscores our commitment to needed funds to advance programs team service projects, to serving on advancing community health and and awareness of the impactful work of boards or as mentors and company- improving outcomes. With these organizations in our local communities. hosted volunteer activities, our organizations, we are advocating for colleagues participated in thousands a cure for these devastating diseases: of volunteer events, representing CVS Health in their local communities.
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Through the CVS Health Foundation • Legal professionals working within Volunteer Challenge Grant program, our Aetna business unit used their we support the nonprofit organizations professional skills to support people for which our colleagues volunteer struggling to pay their gas and and fundraise. We are proud to electricity bills. At Keep the Power enhance this program in 2020 with On, a pro bono legal clinic on utilities, Colleague Volunteerism an additional $1 million in support for lawyers advocated for residents by our colleague’s volunteer efforts. working directly with utility agencies. Keep the Power On also connected We recognize that volunteerism can be residents to community resources Willie Dunnam, a member of the CVS Pharmacy a powerful addition to any employee’s that provide ongoing assistance. team in Mobile, AL, began volunteering at the leadership development training. • Through Pharmacists Teach, University of South Alabama Student-Run Free Through our skills-based volunteer CVS Health colleagues use their program, we invest in offerings for Clinic (USA SRFC) to support the underserved in health care knowledge to share colleagues to put their professional his local community. As the Community Outreach information in communities, with skills to use. From IT support and topics ranging from understanding Coordinator, Willie is responsible for coordinating strategic planning to marketing and conditions like asthma and diabetes clinic schedules and managing suppliers and other HR guidance, we help the nonprofits to self-care for cold, flu and allergies. we align with to expand their reach, clinic resources. He also led the USA SRFC’s Learn more about how the while also providing our colleagues involvement in a local community event to support Pharmacists Teach program with an opportunity to enhance their educates teens about the dangers the homeless population in Mobile. own talents. of misusing opioids and other prescription drugs in the Healthy In addition to donating his time, in 2019 Willie • Through CareerVillage.org, People section on page 24. a crowdsourcing platform that received a Volunteer Challenge Grant from the provides personal career guidance • Our Nurses Board Service Program, CVS Health Foundation for his services, which to students at massive scale, our facilitated by the Nurses on Boards provided key resources for the patients supported colleagues offer virtual career advice Coalition, allows our nurses to by the USA SRFC. to underserved youth related to develop leadership skills and pharmacy education, medical address the health priorities of issues, work-life balance and more. the communities they serve. “Everyone has a chance to volunteer. It shows what you can do to have an impact.”
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In 2019, we worked with a number of key suppliers to extend Community Health our support for community health through campaigns at Campaigns CVS Pharmacy. Through these creative campaigns, we raised much needed funds to advance programs and awareness of the impactful work of organizations in our local communities.
Girls Inc. To celebrate the launch of the CVS Beauty Mark in early 2019, our suppliers joined us in supporting Girls Inc. through a robust cause marketing campaign. With support from Johnson & Johnson, L’Oréal and Procter & Gamble, we committed to donate up to $300,000 to Girls Inc. through the sale of select brand products at CVS Pharmacy in February, to support its mission to inspire all girls to be strong, smart and bold.
Team RWB In November 2019, we worked with brand partners Phillips/Norelco, Wahl, Bull Dog, Duke Cannon and Cremo to honor our nation’s veterans. We donated $100,000 to Team Red White and Blue to support its mission of enriching the lives of our nation’s veterans through physical and social activity.
91 Healthy Planet
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Healthy Planet Climate change is affecting human health, including increases in heat- related illnesses and asthma, with new We know the health of our planet threats emerging every year. Following the end of the warmest decade on record, with climate change taking impacts the well-being of all center stage in the media, we are pleased to see others sharing in our sense of urgency to mitigate people and communities alike. operational and supply chain impacts. As a leader in health care, we believe we have a responsibility to help transform the health of our planet, just as we help people on their path to better health. We are proud to be recognized as a leader in addressing climate-related issues and are working Material topics aligned with this pillar: UN SDGs: closely with key stakeholders to make and deliver on bold commitments. We focus our efforts on identifying • Product Quality and Ingredients • Sustainable Operations • Responsible Consumption (12) resource efficiencies, developing • Supply Chain Responsibility • Waste • Climate Action (13) innovative collaborations, providing • Climate Action • Water • Life on Land (15) customers with sustainable product • Packaging offerings and embedding sustainability into our supply chain.
In 2019, our leadership in sustainability was recognized by the Dow Jones Sustainability Index (DJSI) for the seventh year and we were proud to be added to the prestigious DJSI World Index for the first time. This, in addition to being named to the CDP Climate A List, recognized our commitment to increased transparency and disclosure across environmental, social and governance issues.
93 Healthy Planet Engaging Internal and External Stakeholders
We rely on the collaboration and innovation of internal and external stakeholders to help us advance our sustainability strategy. We actively listen to the feedback provided by our colleagues, collaborators, customers, clients, suppliers and industry subject matter experts to understand their expectations and gain insights that help inform decisions. Their support allows us to bring our sustainability vision to life.
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Our Programs and We worked with external stakeholders Alliance’s International Coastal Collaborations and experts, including regulators, Cleanup. In 2019, colleagues Collaborative Sustainability non-governmental organizations participated in dozens of events Commitments (NGOs) and industry coalitions, hosted at waterways and beaches We know we can accelerate achieving to achieve the following: across the country. our sustainability goals by engaging • Made progress on our goal to others on our journey. We rely on • Continued our work to reduce provide 100 percent cage-free eggs our colleagues, customers and chemicals of concern through 2019 Sustainability by the end of 2025 and anticipate suppliers to extend our commitments ongoing collaboration with Safer having cage-free selections in nearly Highlights to a healthy planet. CVS Health Chemicals, Healthy Families and 1,000 stores by the end of 2020. colleagues participate in our its Mind the Store Campaign. GreenTeam Colleague Resource CVS Health ranked 9th out Group (CRG), which works across our of the 43 retailers evaluated in 2019. • Named to DJSI World enterprise to make environmental • Collaborated with the U.S. Index sustainability a part of every Environmental Protection Agency colleague’s role and responsibilities. (EPA) on regulatory requirements • CDP Climate A List for the disposal of pharmaceutical In addition, our suppliers play a key waste. These standards are role in our sustainability successes. • CDP Supplier important to ensure patients do As noted in our Responsible Sourcing not dispose of hazardous drugs Engagement Leader Standard, we expect suppliers to incorrectly and to preserve our operate in an environmentally ability to utilize reverse distribution, responsible manner, by reducing which provides safe and affordable operational impacts, performing management of unsaleable drugs relevant environment assessments and ultimately helps avoid and gaining necessary certifications. unnecessary increases in the overall Our science-based target requires cost of prescription drugs. 70 percent of our suppliers to establish their own science-based reduction • Continued our work with Ocean targets for scope 1 and 2 emissions Conservancy as a member of its by 2023. For driving this ambition Trash Free Seas Alliance. These with suppliers, CVS Health was memberships support our recognized by CDP as a Supplier commitment to making responsible Engagement Leader. To learn more packaging decisions that respect about CVS Health’s commitment our planet and meet the needs to responsible sourcing, please see of our customers. Each year, the Healthy Business section on CVS Health colleagues across the page 64. country join in Trash Free Seas
95 Green Team: Sustain, Educate, Engage
With more than 2,500 members across the country, the CVS Health GreenTeam engages our colleagues through sustainability education and sharing of sustainability best practices, both in the workplace and at home.
In 2019, the GreenTeam launched Sustainability in Action, a webinar series with business leaders and collaborators to discuss insights, best practices and introduce key sustainability initiatives across the company. The GreenTeam also drove colleague engagement in activities to celebrate Earth Month in April and led volunteer initiatives throughout the year, including beach and trail cleanups and work in community gardens.
2.5K+ GreenTeam members across the country
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Since 2016, we have recognized our suppliers’ work with Rewarding Supplier us through our annual supplier award for sustainability and Excellence corporate social responsibility. We select our sustainable suppliers through a scoring methodology that reviews key sustainability rankings and ratings, such as CDP, UN Global Compact and Newsweek Green Rankings. Suppliers who receive this award are recognized for their company’s commitments to sustainability, as well as their collaboration with CVS Health to advance our CSR priorities.
In 2019 we recognized L’Oréal with our annual sustainable supplier award to recognize its collaboration and our shared commitment to supporting the CVS Beauty Mark initiative.
Key Environmental Collaborations and Accreditations:
97 Healthy Planet Sustainable Operations
CVS Health is committed to embedding sustainability throughout our operational footprint. With approximately 9,900 retail locations, 22 distribution centers, numerous field offices and a fleet of more than 2,500 delivery vehicles, we are improving efficiency across all aspects of our business. These efficiencies reduce our carbon footprint, energy usage, waste and water consumption.
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Climate Action for against a 2010 baseline, a 2 percent a Healthy Planet improvement over 2018 despite a .2 We believe the health of our planet is percent increase in our retail square directly linked to human health. We’re footage. Additionally, we saw an committed to doing our part to reduce absolute emissions reduction of 34 the impacts of our operations and percent of scope 1 and 2 emissions supply chain to limit our impact on based on a 2010 baseline, at the time of Climate-Risk Management climate change, which is impacting this report’s publication. In 2020, we global health. Our commitment to are exploring re-stating our Science- climate action has earned us a spot Based Target to align with a 1.5 degree Our Enterprise Response and Resiliency (ERR) program on the 2019 CDP Climate A List; reduction. We are on track to achieve CVS Health is one of only 34 U.S. based our science-based target of 36 percent regularly evaluates the risks at play in our operational companies to be honored with this absolute emissions reduction by 2030. footprint, including our physical assets and risks for our recognition. We continually evaluate colleagues, as well as risks in our supply chain. Weather- our operations and supply chain to Since the implementation of our related events, including hurricanes, flooding optimize our footprint, reduce science-based targets, we have environmental impacts and promote worked directly with our suppliers and wildfires, have been a top consideration in recent environmental sustainability. to evaluate their progress on their own years, in addition to other risks to the enterprise. With ERR climate journeys. We collaborate with as our guiding framework, we are able to better monitor Reducing Greenhouse Gas Emissions CDP Supply Chain to collect data and more quickly respond to any of these key risks. through Science-Based Targets from our suppliers, allowing for Our science-based greenhouse gas a robust understanding of our scope 3 (GHG) emissions reduction targets emissions and how we are tracking Our 24/7 Operations Center monitors threats and risk were approved in 2018 by Science against our 2023 supplier target. events, allowing us to coordinate our response and Based Targets initiative (SBTi), the Nearly 90 percent of suppliers support our colleagues and field leaders through our leading organization driving corporate participated, earning CVS Health climate action: a spot on CDP’s Supplier Engagement emergency hotline. This Center was especially important Leaderboard for the second year in in 2019 during Hurricane Dorian. After crippling the • By 2030, we plan to reduce our a row. We will continue to expand Bahamas, Hurricane Dorian moved northwest with absolute scope 1 and 2 GHG supplier participation in 2020 potential to impact the entire southeastern seaboard from emissions 36 percent from our as we work toward a common goal of 2010 base year emissions corporate leadership on climate action. Florida to Delaware. During Hurricane Dorian, ERR • By 2023, our goal is that 70 percent incorporated a new component into our situation reports, In 2019, we introduced a new data of our suppliers will have established management platform that allows called Community Lifeline. Community Lifeline provides their own science-based reduction us to better track carbon emissions clarity around the status of fundamental services, such targets for their scope 1 and 2 and target reduction areas in our emissions as power and water, during a risk event. Due to the operations and embed energy success of that implementation, we will include the We continued to reduce our GHG usage reduction strategies across Community Lifeline in situation reports going forward. emissions in 2019, achieving a 35 the business. percent reduction in carbon intensity
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Meeting Our Targets through a savings of more than $27.7 million outside of operating hours for 27 retail Disposal units located in Energy Reduction in energy costs to-date. All interior locations. These changes reduced CVS Pharmacy locations collected Energy efficiency is a key element lighting at our retail locations consumption by 700 MWh and will more than 1.35 million pounds in our approach to reducing our are expected to be converted to LED save more than $200,000 annually. of medication in 2019. Learn more emissions, as energy-related emissions by 2021. about our commitment to safe account for 97 percent of our scope 1 Recognizing the significant energy medication disposal in the Healthy and 2 emissions. We are focused on In addition, as part of our multi-year required to cool and heat our retail People section on page 38. reducing the impacts of energy exterior lighting retrofit program, in locations, we continued a pilot consumption, including our emissions 2019 we completed conversions at program launched in 2018 to and the increased transitional costs nearly 500 retail locations, reducing proactively replace 150 rooftop units “CVS Pharmacy donations often associated with our switch to cleaner consumption by 8,000 MWh and in New York. These replacements contained a variety of highly energy, in our retail locations and saving nearly $1 million. Any reduced energy consumption by portable snack items, which our administrative properties. new retail locations will have LED 1,000 MWh, while yielding $1 million community partners value. One lighting installed in both the interior in utility rebate incentives and such partner supplies after school Over the years, we have continued and exterior as part of our green $120,000 in energy savings. snacks to school-age children to implement a number of successful building standards. who might not have much food strategies to drive energy efficiency Decreasing Waste, waiting for them at home. What across our operations, including Although the type of lighting used Increasing Recycling seems like a small snack or drink optimizing our energy management across our footprint is important for We maintain a focus on decreasing means a lot to someone in need.” system (EMS) and retrofitting efficient energy reduction, we also utilize our our waste and increasing opportunities – Caitlin Duncan, Grants Manager, light sources. EMS to reduce our impact. In 2019, for recycling to lessen our Feeding America Riverside | San we continued a multi-year retail environmental impacts. In 2019, Bernardino. In 2019, we continued to install LED location rollout of controls that we diverted 53.7 percent of our lighting across our retail locations and synchronize lighting with operating waste to recycling or reuse, with 88 other facilities. We converted nearly hours, with separate lighting plans for percent of cardboard and 88 percent 1,000 retail locations to interior LED the pharmacy and front store. The of solid waste generated at distribution lighting, reducing consumption by rollout implemented the lighting centers diverted for recycling. 47,000 megawatt hours (MWh) and controls at nearly 900 additional saving an estimated $4.8 million in locations, which reduced energy In addition to plastic bag take-back, energy costs. Since beginning LED consumption by 2,000 MWh and will many CVS Pharmacy locations offer lighting retrofits in 2015, we have save an estimated $300,000 annually. access to in-store medication disposal brought LED lighting into more than units. Proper disposal of medication is 6,100 retail locations — or 62 percent In a few locations, such as Hawaii, we important not only to guard against of our store footprint — through nearly enhanced controls to reduce front contamination of waste and water $130 million in investments, realizing store lighting during overnight shifts supplies, but to prevent misuse.
100 2019 Energy and Interior LED Lighting Exterior LED Lighting Cost Savings 987 500 retail locations retail locations 47K 8K MWh saved MWh saved $4.8M $1M saved saved
101 Reducing Food Waste
Our program to comply with the 2018 California law prohibiting retailers from sending organic waste to landfill is a best-in-class model for ensuring we do not waste unsaleable food. With inventory scanning technology, colleagues direct seasonal or food nearing expiration into designated totes, which are transported to our distribution centers and then to third-party facilities. There, the majority of food is donated to local charities and food banks, with a small amount of unsaleable food processed to create renewable energy and fertilizer.
Across all retail locations in California, we donated 5.8 million units of food products, with product value totaling $19 million. This program not only gives back to our communities by addressing food insecurity, it also eliminates landfill disposal of food and other compostable products sold at CVS retail locations. Due to the success of this program we began a similar food donation program at approximately 6,000 stores outside of California.
102 Addressing Pharmaceutical Waste
We worked with the EPA to build new standards for the disposal of pharmaceutical waste in 2019, and will continue to work together to advocate for state-level adoption. As a national dispenser of prescription medications, we provide access to safe medication disposal at more than 2,700 kiosks at CVS Pharmacy locations nationwide and collected 1.35 million pounds of unused medicines in 2019. Learn more about our approach to safe medication disposal in the Healthy People section on page 38.
1.3M lbs of unused medicines collected in 2019
103 Reducing Waste at the CVS Health Charity Classic
Since 1999, the CVS Health Charity Classic has donated more than $23 million to nonprofit organizations in Southern New England. As a part of our commitment to a healthy planet, we are committed to ensuring this event has a robust sustainability plan to reduce impacts on the environment.
In 2019, the Charity Classic Event Series, including Crave RI, continued to utilize best practices for waste management to minimize the waste footprint, including providing composting and single-stream recycling bins, which diverted 7.5 tons of waste from going to landfill. For these efforts, the Charity Classic received a “green event” certification from the Rhode Island Department of Environmental Management.
104 Overview People Business Community Planet About
Innovation in Transportation key to the success of our backhaul With a national transportation network, program; the better we execute, the we seek solutions for our fleet to greater the reduction in negative use less fuel and reduce emissions. environmental impacts. In 2019, CVS Health collaborates with members we saw a reduction of more than of both our inbound and outbound 1.6 million empty miles as a result of supply chain to improve efficiency our program. Streamlining Pharmacy Delivery and service levels. Our footprint is not solely domestic. Inbound Supply Chain As a national retailer, we source Transportation products from suppliers across This year, we joined forces with UPS to make To increase efficiencies in our the globe and want those suppliers delivery services more convenient and accessible transportation network and supply to use sustainable practices. To at CVS Pharmacy. With the addition of 4,600 UPS chain operations, in 2019 we transport products from suppliers consolidated our freight through overseas to our distribution centers, Access Points in CVS Pharmacy locations, we are a network of strategically located we are utilizing ocean carriers that are creating more options for secure, convenient and consolidation centers. This process in 100 percent compliance of the quick shipping. aims to reduce lead time and increase International Maritime Organization’s efficiency by reducing the number (IMO) regulations limiting sulfur UPS and CVS Health also launched an innovative of miles each pallet of product travels content. The regulations which took throughout the country. Rather than effect on January 1, 2020, call for prescription drug delivery solution using UPS shipping from a single vendor point reduction in sulphur levels in fuel drones, completing the first-ever drone delivery to final destination in small, inefficient from 3.5 percent to 0.5 percent of a prescription from a CVS Pharmacy location quantities, small vendor shipments moving forward. to a customer’s home in November 2019. The same are pooled, picked up and delivered to local consolidation centers. From Outbound Supply Chain day, a second prescription delivery was made by there, the freight is built into full Transportation drone to a customer in a nearby retirement truckloads for final delivery, matching We are also using innovative community. This is an exciting milestone in our with similar destined freight from technologies in our distribution efforts to develop use cases for drone delivery, multiple local vendors. centers to maximize efficiencies. We have added solar panels to more and in the coming months we look forward to We have also continued to build than 130 delivery trailers at two exploring the speed and convenience we can our backhaul program, which reduces distribution centers to charge electric provide for prescription access. the number of empty miles driven pallet jacks while in the trailer reducing by trucks returning to our distribution the amount of charging done at the centers from their retail store distribution centers. We are also deliveries. Through this program, testing solar panels on store delivery we also act as a common carrier for trailers to charge lift gates instead of other companies or make additional using refrigerated units. Both of these pickups on inbound trips to distribution initiatives reduce the consumption centers. Driving asset utilization is of diesel fuel and emissions within our
105 Overview People Business Community Planet About
supply chain operations, while also our commitment to efficiency, consumer of water outside of our investing in renewable energy. fuel economy and transparency. physical footprint in retail locations, Our total fuel consumption in 2019 distribution centers and field offices, Additional transportation efficiency was only approximately 7 million but we are committed to reducing programs in 2019 include: gallons, including deliveries, corporate water usage and increasing efficiency. vehicle travel, personal car travel and We have established enterprise • Installed electric standby at all doors rental cars. Our performance earned guidelines around the development in our Kansas City, MO distribution us the carrier rating of Level 1 for of new properties with environmentally center to plug in refrigerated units, emissions control. In addition to being appropriate landscaping, include minimizing the consumption of recognized as a carrier, we have been water efficiency as part of store diesel fuel and emissions while the an EPA SmartWay Shipping Partner construction guidelines and implement trailer is at the loading dock. since 2012. water reduction initiatives into LEED- certified and non-LEED buildings. • Reduced the number of store Distribution Center Innovation LEED — Leadership in Energy and delivery refrigeration trailers at our We’re also testing technology Environmental Design — is the most Chemung, NY distribution center by advancements to more efficiently widely used green building rating approximately 20 trailers. This will pick, move and sort product within system. We use the World Resources result in reduced diesel fuel usage our distribution centers and pack Institute’s Aqueduct tool to evaluate and emissions. trucks more effectively. We are overall water stress levels in the To integrate all transportation logistics, exploring various software, robotics regions where our facilities are located, we are implementing a new suite of and automation solutions to reduce as well as conduct scenario planning transportation software. This software machine travel, eliminate utilization related to water availability. will improve management of our of paper and improve cubic space backhaul program through increased utilization of totes and trailers, which In 2019, our water usage per square automation and reduced miles traveled ultimately takes trucks off the road. foot of enterprise space decreased through optimal store delivery routing, by 7.9 percent, and our total water and we’ll be able to better monitor our Water Consumption consumption increased by 7.27 assets so they operate at full efficiency. and Reduction percent from 2018. Improving the health of our In 2019, we were named an EPA environment includes responsibly SmartWay Carrier Partner for the using all natural resources — including 10th straight year in recognition of water. CVS Health is not a large
106 Healthy Planet Sustainable Products and Packaging
Our commitment to a healthy planet is present throughout our operations and our retail locations and extends into the homes of our customers. Our comprehensive approach to customer health and well-being includes offering a variety of products — from beauty and personal care products to food and beverage items — that are free from unwanted ingredients and take environmental impacts into consideration.
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Expanded Clean and Healthy of all vitamins and supplements sold 2019, 96 percent of the paper used Promoting Sustainable Product Offerings in-store and online. Among other was sustainably sourced, and 39 Packaging We are committed to providing our benefits, “Tested to Be Trusted” helps percent of our paper stock was Forest As we focus on the sustainability of the customers with a range of sustainable consumers avoid certain additives and Stewardship Council (FSC) certified. ingredients in the products we offer, and “better for you” products that are ingredients. Learn more in the Healthy we are concentrating our efforts to efficacious and formulated in a way People section on page 40. Sourcing Palm Oil Responsibly consider the environmental impacts of that inspires trust in our customers. We recognize the impact forests the packaging of our products as well. Addressing Deforestation have on environmental health, and Our memberships in the Sustainable CVS Health has completed our journey Our efforts to transform the health in addition to our commitments to Packaging Coalition, Trash Free Seas to reformulate nearly 600 beauty of our planet include reducing our sustainable paper sourcing and Alliance and Ocean Conservancy help and personal care products from our consumption of natural resources. consumption, we are sourcing us explore the best options for CVS Health, Beauty 360®, Essence of Our efforts in this area focus on our sustainable palm oil for our store sustainable packaging in our store Beauty® and Blade® store brands. most material impacts — responsibly brand products. We require our brand products and beyond. Although we have completed the sourced paper used in our operations suppliers to adhere to the Roundtable reformulation process, we update and sustainably sourced palm oil used on Sustainable Palm Oil (RSPO) In 2020, CVS Health will complete our publicly available restricted in our store brand products. Principles and Criteria on palm oil and a packaging audit of our plastic substances list by category annually palm oil derivative sourcing or to the packaging to better understand our and educate our suppliers on Together with our suppliers, we work Rainforest Alliance Chain of Custody. footprint. As part of this work, we our current policy and screening to increase the sustainability of our Our store brand suppliers also signed are engaging with WWF on systems- process. Our suppliers adhere to our paper usage. We have made significant agreements to follow these guidelines based innovation for sustainable Store Brands Quality Assurance advancements in recent years to and principles. To date, 100 percent packaging. We are also partnering Agreement, which includes information reduce our use of paper across of our store brand suppliers of items with WWF on its ReSource Plastic about our restricted substances list our enterprise. In 2019, we used containing palm oil have become program as a Retail Principal Member. and other requirements, which approximately 50,000 tons of paper members of RSPO or obtained Following the packaging audit, we communicates our expectations in our business operations to create Rainforest Alliance certification. will roll out guidelines to all supplier to suppliers. We use technology like patient communications, receipts, partners for both national and store the WERCSmart tool to capture mailers, fliers and internal documents, All store brand suppliers are required brand products. supplier ingredient information for all a reduction of more than 3,600 tons to disclose whether their products chemical-based products. This helps over 2018. And now, with our new contain palm oil. When new store us screen for restricted chemicals, digital receipt opt-in program, we brand items contain palm oil, suppliers monitor suppliers’ compliance with our can continue to make progress on must demonstrate proof of required procedures and track our performance paper reduction. certification. We continue to utilize toward achieving our goals. supply chain technology tools, In addition to reducing overall paper including WERCSmart and PurView, Further extending our commitment to usage, we are responsibly sourcing the to screen products for palm oil. transparency is “Tested to Be Trusted,” paper we do use by specifying stock a program requiring third-party testing composed of recycled content. In
108 Protecting our oceans
Sunscreens containing the chemicals oxybenzone and octinoxate will be banned in Hawaii and Key West, FL, starting in 2021 due to the impact they can have on marine ecosystems and coral reefs in particular. Though both laws take effect in 2021, we are proud to comply with the laws ahead of time by removing oxybenzone and octinoxate from our store brand sunscreens with SPF 50 and lower. These new compliant sunscreens are already shipping to CVS Pharmacy locations and we expect to have products fully rolled out in 2020.
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Our digital receipt program at In addition to our digital receipts Reducing CVS Pharmacy continues to reduce program, we are increasing our digital paper use and provide customers communications and recycled paper to Paper Use a more sustainable option. reduce our environmental impact.
In 2019: In 2019: 5.9M $50M CVS Pharmacy saved in paper expenses by customers enrolled, using digital communications including more than with our CVS Caremark/ 1.1M in 2019 Medicare and Aetna members 58M 4% digital receipts sent of our direct mail to CVS pharmacy contained recycled customers content 48M yards of receipt paper saved 20% reduction in receipt paper use
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About This Report
CVS Health’s 2019 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 2018 CSR Report.
Boundary and Scope through a rigorous review process Your Feedback our SEC filings, including our Annual Consistent with previous reports, involving internal subject matter Your feedback is important to us Report to Stockholders, our Form 10-K, the boundaries for this report extend experts, and we believe this report as we continue to look for ways to Forms 10-Q and any Forms 8-K, which to all United States (U.S.) company accurately and fairly represents our improve our reporting and provide provide important information about owned and/or operated facilities, CSR activities, programs and results you with the information you need. our business, operations and financial administrative offices and retail for the fiscal year ending December 31, Please submit your feedback to performance. Before making any pharmacies for the corporate 2019. The report was submitted to the [email protected] investment or other decision relating enterprise. Company operations Nominating and Corporate Governance to the company, all such public filings outside the U.S. represent less than Committee of the Board of Directors CVS Health Corporation should be considered in detail. 1 percent of the total enterprise and for review, and was reviewed and Attn: SVP & CSO, Corporate Social are not covered in this report. Data approved by members of CVS Health Responsibility and Philanthropy References in this document to contained in this report covers senior management, including our One CVS Drive, Woonsocket, RI 02895; CVS Health products, programs or activities that occurred in fiscal year internal Disclosure Committee, which telephone: 401-765-1500 services do not imply that CVS Health 2019 (January 1–December 31, 2019), is comprised of management from intends to provide all products, unless otherwise noted. principal functional areas within the Preparation of this Report programs or services across all of its company. This report has not been This report contains certain forward- businesses. Statements regarding Content and CSR Materiality externally assured or verified by an looking statements that are subject to CVS Health’s future direction and intent In 2019, we conducted a materiality independent third party. CVS Health risks and uncertainties. Actual results are subject to change or withdrawal assessment in accordance with the carbon footprint data from 2016–2018 may differ materially from those without notice and represent goals GRI Standards’ guidance for defining has been externally assured. Data from contemplated by the forward-looking and objectives only. material topics. The material topics 2019 will be reviewed for external information for a number of reasons as inform the content of our reporting and assurance in the coming months by an described in our Securities and CSR strategy. For additional detail, external third-party and/or by an Exchange Commission (SEC) filings, please see CSR Material Topics. independent third-party. The company including those set forth in the ”Risk may consider having additional content Factors” section and under the section Disclosure and Assurance and data in its future CSR Reports entitled “Cautionary Statement CVS Health management is externally assured. This report was Concerning Forward-Looking responsible for the preparation and produced based on the Global Statements” in our most recently filed integrity of the information in this Reporting Initiative (GRI) Standards. Annual Report on Form 10-K and report. The enterprise metrics and More information on GRI is available at Quarterly Report on Form 10-Q. We goals in this report are established www.globalreporting.org. refer readers of this Report to all of
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