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Our compliance program incorporates the seven elements of an effective compliance program as outlined in the Federal Sentencing Guidelines and generally applies to all colleagues, vendors and the Board of Directors.
This strong culture of compliance is reflected in the completion rate of our annual Code of Conduct training.
Additionally, in Conduct against peer competitors and other healthcare companies to ensure our Code of Conduct remains practical and relevant.
Compliance training remains a focus at CVS Health.
In to enhance course designs that streamlined content and provided the most timely and relevant training materials to our colleagues.
Each call to our Ethics Line is investigated and the company promptly addresses any potential compliance issues.
Our Supply Chain As one of the nation’s largest companies, our supply chain has the power to generate positive economic and social impacts around the globe.
In the U.S., we are committed to investing in diverse suppliers in our local communities and have built a leading supplier diversity program to support that effort.
Around the world, we work to ensure that every person who participates in our supply chain is treated with the dignity and respect they deserve.
We believe that responsibly managing our supply chain contributes to our ability to provide quality, safe products and services that contribute to people’s health and well-being.
In early introduced our Responsible Sourcing Standard, developed in collaboration with Business for Social Responsibility (BSR), which establishes expectations for all CVS Health suppliers in the areas of ethics and governance, environmental and social impacts and management and transparency.
Generating Economic Impact with Suppliers Diverse suppliers help us add distinctive goods, services and capabilities to our business offerings and create a competitive advantage.
Our Supplier Diversity team partners with our business leaders to integrate supplier diversity into procurement activities, and with national organizations to identify and develop diverse businesses.
We are proud to have one of the leading supplier diversity programs in the country.
By the end of our 2020 Tier I spending target, having spent $1.6 billion with diverse Tier I suppliers.
We also increased our spend with diverse Tier II suppliers to $achieve our 2020 goal of $1 billion.
We increased our spend in supporting diverse- and women-owned suppliers through their certification process and expanding our use of diverse-owned pharmacies.
In total, we partnered with businesses through our diverse supplier program to drive a total economic impact of $and support more than 38,000 jobs and more than $532 million in wages across the country.
Acting as a Convener Bringing diverse voices to the table for dialogue and collaboration makes us a better company and is a key tenet of our approach to problem-solving.
In March Supplier Diversity 2020 Ideation Session to identify new ways to achieve our 2020 spending targets.
The session served as a venue to hear from internal and external voices with diverse perspectives.
Attendees included CVS Health business line leaders, strategic partners, existing and potential diverse suppliers and representatives from national minority councils.
We were also proud to host more than Dollar Roundtable Summit and induction ceremony.
The Billion Dollar Roundtable is an organization that recognizes and celebrates companies that achieve spending of at least $certified diverse suppliers, primarily minority- or woman-owned.
The event brought together leaders from Dollar Roundtable companies, academics, government officials and diverse suppliers to share best practices, opportunities and strategies to continue to grow supplier diversity programs.
Vice President of Workforce Strategies and Chief Diversity Officer David Casey led a fireside chat to discuss how strategic diversity management helps companies drive business growth, deepen relationships with customers and build an inclusive workplace.
Winners The Ruby Award Star of the Year Winners are suppliers who have demonstrated exemplary performance, industry leadership, business success, economic impact, community involvement and strong commitment to CVS Health’s mission and values.
In we recognized NEI Global Relocation, a Women’s Business Enterprise, which delivers world class relocation management and consulting services, and Hammons Paper Group, a Minority Business Enterprise and wholesaler of printing and writing paper.
Supporting Human Rights Respecting and supporting internationally recognized human rights policies and preventing adverse impacts in our direct operations is a responsibility we take seriously.
Our Human Rights Policy, published in outlines our commitment to respecting and supporting these rights, including basic labor principles, and incorporates our company, subsidiaries and supply chain business partners.
By end of reviewed and acknowledged the policy, a target we met one year ahead of schedule.
Colleagues will review and acknowledge the policy annually.
In than 1,000 audits in approximately 40 countries through our Ethical Sourcing & Customs Trade Partnership Against Terrorism Program (CTPAT), which monitors supplier compliance with social, legal and trade security standards.
Our audit service providers identified four zero-tolerance issues.
Non-compliance findings identified during the audit result in immediate cancellation of outstanding purchase orders and one year of factory probation.
We are also proud to announce that we have recently joined the Responsible Business Alliance’s (RBA) Responsible Factory Initiative (RFI).
As part of CVS Health’s Ethical Sourcing and CTPAT program, our suppliers and factories have been invited to leverage the toolsets developed by the RBA to support factory continuous improvement.
The online classes, offered in multiple languages, will help our suppliers and factories address several findings from their audits and facilitate the implementation of more robust internal management systems.
This program offers on-demand training for some of the most critical risks in supply chain manufacturing including (but not limited to): health and safety, chemical management, environmental sustainability, recognizing forced labor and corrective action planning.
our purpose of helping people on their path to better health.
we believe we can play a meaningful role in helping to reverse its devastating effects.
The latest findings from the Intergovernmental Panel on Climate Change (IPCC) make it clear that bold action is needed today.
and inspires confidence from our investors, colleagues, partners and customers.
In strengthened our leadership on sustainability issues through continued collaboration with a multitude of partners and experts.
We advance our sustainability strategy through engagement with our colleagues, business partners, customers, suppliers and industry subject matter experts.
We identify ways to collaborate with like-minded organizations on pressing sustainability issues and welcome opportunities to share our perspective with others.
We also listen closely to these stakeholders to understand their expectations and ensure they’re informed of our work to tackle big environmental challenges such as addressing climate change impacts, removing chemicals of concern from our products and ensuring a responsible supply chain.
Our colleagues care deeply about the health of the planet and support our sustainability efforts through volunteerism and every day actions to embed sustainability at home and at work.
Their passion to create a healthier, more sustainable planet, along with their insights and ideas, have helped ignite some of our key initiatives.
Our GreenTeam Colleague Resource Group (CRG) promotes awareness, provides education and works to make environmental sustainability a relevant part of every colleague’s role and responsibility.
Today, the GreenTeam has more than a 45 percent increase over 2017, and continues to grow.
, the GreenTeam celebrated Earth Month by engaging its membership in a variety of environmental sustainability events.
They hosted webinars with leading industry partners like Ocean Conservancy and the Sustainable Packaging Coalition to educate colleagues on approaches to sustainable living, shared environmental stories and tips across our internal communications channels and hosted volunteer cleanup events in communities across the co...
Through our partnership and colleague participation in the International Coastal Cleanup, we have helped remove more than trash from coastlines in 2018.
and hundreds of CVS Health colleagues across the country joined cleanup events in their local communities to support these efforts.
for colleagues to log actions on our online volunteer portal, CVS Health Community Crew.
or switching to online bill pay, reduce personal environmental impacts.
224,000 metric tons of carbon emissions, saved 225,000 kilowatts of energy and avoided 45,000 pounds of waste.
our climate science-based target for approval by the Science Based Targets initiative (SBTi), including from suppliers, agency partners and industry leaders like BSR, CDP and the World Resources Institute.
with The Safer Chemicals, Healthy Families coalition and its Mind the Store campaign.
• Partnered with DOVE Chocolate and Mars, Inc. for the third consecutive year to support the livelihoods of female cocoa farmers and promote sustainable cocoa farming.
• Were recognized as a CDP Supplier Engagement Leader for managing our climate emissions and engaging our suppliers to help address climate change impacts.
Partnering with Our Suppliers In award for sustainability and social responsibility to recognize our suppliers’ efforts across our three key CSR pillars as well as their partnership with us on advancing our priorities.
In for their efforts as a leader through innovative partnerships with CVS Health, including collaborating with us on three in-store cause marketing campaigns which delivered nearly $500,000 to important charitable causes.
They also actively promoted our partnerships through social media and advertising.
Mars, Inc. also collaborated with us to provide support to the CVS Health Employee Relief Fund (ERF), a charity that provides grants to CVS Health colleagues in times of hardship.
Sustainable Operations We continue to implement new technologies and operational practices to minimize our environmental footprint and contribute to healthier, more sustainable communities.
fleet of across all aspects of our business – reducing our carbon footprint, energy usage, water consumption and waste.
The program has enhanced our ability to monitor and respond to the increased number of weather-related events, helpi In Center to monitor threats and risk events; coordinate incident response across the company; and support our emergency hotline for colleagues and field leaders to report emergencies, incidents or risk ...
The Operations Center provided coordination and situational awareness to support our colleagues and customers facing earthquakes in Hawaii and Alaska; hurricanes and tropical cyclones in the Mid-Atlantic, Southeast and Pacific; wildfires and mudslides in California; a volcano eruption in Hawaii; and winter storms acros...
The key driver of our success in establishing science-based targets was our company’s purpose: helping people on their path to better health.
We built the business case for this work by demonstrating why it was critical to CVS Health’s ability to support the health of the people and communities we serve.
with our supplier partners – particularly in our pharmacy supply chain – was also central to our success.
a strong understanding of where our supplier partners were in their climate action journeys, worked with internal business leaders to engage them, and offered our own resources to support them in joining us.
Leveraging the expertise of external partners, including CDP and SBTi, provided invaluable insight throughout our process.
We also continued to reduce our GHG emissions in a 34 percent reduction in carbon intensity against a 2010 baseline, a 4 percent improvement over 2017 despite a 1 percent increase in our retail square footage.
Additionally, we saw an absolute emissions reduction of emissions based on a 2010 baseline which means we are on track for our SBT goal of a 36 percent absolute emissions reduction by 2030.
We achieved these reductions through store efficiencies and by mandating sustainability requirements in new construction.
We have implemented ongoing tracking and measurement practices to capture against our new targets, which will be reported in 2020.
With the addition of Aetna and our newly established science-based target, we are reviewing expanded opportunities for renewable and alternative energy strategies for the https://sciencebasedtargets.org/ https://www.cdp.net/en short-term and long-term.
In hours (MWh) of electricity, a 4 percent reduction from 2017, a result of our continued LED lighting conversion strategy and efforts to reduce energy use in retail locations.
energy use is the installation of LED lighting across our retail stores and other facilities.
By installation of LED interior lights across all of our retail stores.
LED exterior lighting across our retail locations and completed upgrades, reducing consumption by 6,000 MWh for an estimated annual energy savings of $600,000.
• Extended our reach beyond retail in facilities.
In more non-retail locations, including administrative and production areas, for a true, enterprise-wide approach to lighting energy-use reductions.
energy efficiency by controlling lighting, heating ventilation and air conditioning (HVAC) from a central hub.
We also enhanced our controls in to sync lighting with operating hours through alarm systems at 500 locations across Connecticut, Massachusetts, Pennsylvania and Rhode Island.
This change, which supports operational needs and implements best practices for energy efficiency, reduced consumption by estimated annual energy savings of $300,000.
We plan to implement the enhancements in stores in 2019.
and end-of-life units replaced in existing buildings meet the latest energy efficiency ratio (EER) and seasonal energy efficiency ratio (SEER) as recommended by the U.S. Department of Energy.
roofs into new and existing stores to reduce internal and external building temperatures.
less land, materials and resources than our standard stores, and use an average of 25 percent less energy.
In we saved more than $3.7 million in construction costs using these prototypes.
We plan to open 9,000-square-foot stores in 2019.
Incorporated design and construction elements from our Energy and Environmental Design (LEED)-certified buildings as we build new stores and facilities.
These elements include water and energy efficiency features and sustainable materials.
Transportation We continually seek innovative ways for our fleet to use less fuel and reduce air pollution.
Although we have had a backhaul program for many years, we put a greater focus on the program with a targeted pilot in late up to full-scale support by 2018.
The program puts more freight in trucks during return trips to our distribution centers, reducing empty miles driven.

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