One CVS Drive
Rhode Island 02895,
- Dow Jones Sustainability Index (DJSI World)
- GRI Index
- CDP Climate change A list
- Among Top 50 – DiverityInc’s Company diversity and supplier diversity
- Best place to work for diversity Inclusion – Disability Equality Index – American Association of People with Disabilities and Disability
- Civic 50 – Points of Light’s 50 most community-minded companies
CHIEF SUSTAINABILITY OFFICER
Eileen Howard Boone
Report created by Katerina Vargova
Consumer Value Stores (CVS) Health is an American healthcare company that owns CVS Pharmacy, a retail pharmacy chain; CVS Caremark, a pharmacy benefits manager; Aetna, a health insurance provider, among many other brands.
CVS Health Corp. engages in the provision of health care services. It operates through the following segments: Pharmacy Services, Retail or Long Term Care, Health Care Benefits, and Corporate. The Pharmacy Services segment offers pharmacy benefit management solutions. The Retail or Long Term Care segment includes selling prescription drugs and an assortment of general merchandise.
The Health Care Benefits segment offers traditional, voluntary and consumer-directed health insurance products and related services, including medical, pharmacy, dental, behavioral health, medical management capabilities. The Corporate segment involves providing management and administrative services.
CVS Health’s purpose statement reads: “Whether in our pharmacies or through our health services and plans, they are pioneering a bold new approach to total health. Making quality care more affordable, accessible, simple and seamless. Creating innovations that not only help people get well but help them stay well in body, mind and spirit”.
Company Sustainability Activity
With their new Transform Health 2030 CSR strategy, CVS Health is planning to develop its key performance targets and commitments to advance its Corporate Social Responsibility roadmap. The four pillars of Transform Health 2030 are Healthy People, Healthy Business, Healthy Community and Healthy Planet. According to them, Transform Health 2030 strategy is aligned with the United States Sustainable Development Goals (SDGs), to create global change by 2030. CVS believes it can meaningfully contribute to the SDGs that closely align with its business impact.
- 35% reduction in carbon intensity against a 2010 baseline
- The absolute reduction of scope 1 and scope 2 emissions by 34% based on a 2010 baseline
- 62% of CVS store’s lighting footprint has been converted to LED so far since 2015
- With over 1100 walk-in clinics, CVS is increasing the accessibility for healthcare to the general public
- CVS received Pathway to Excellence designation from American Nurses Credentialing Center, recognizing their efforts to enhance the quality of care and nursing safety.
- In 2019, CVS installed LED lighting in 1000 stores reducing energy consumption by 47,000 MWh.
- Grants and scholarships through CVS health foundation.
- In 2019, CVS diverted 53.7% of their waste to recycling or reuse
- Disposal Units at CVS pharmacy locations collected more than 1.35 million pounds of medication in 2019.
- CVS introduced a new CSR framework Transform Health 2030 with Healthy People, Healthy Business, Healthy Community and Healthy Planet as four pillars.
UN Sustainable Development Goals
UN SDGs Compliance
- As a retailer offering both perishable and shelf-stable food products, CVS Health has a responsibility to use its national footprint to combat food insecurity in local communities. Project Health initiative includes new health assessment criteria to provide access to fresh, healthy food.
- In an effort to combat food waste, CVS’s California stores donate unsold food to local charities and food banks, with more than $19 million worth of food product donated.
- With their accessible MinuteClinics and healthcare, CVS is contributing to good health and well being of the community.
- New $100 million commitment to affordable, quality care and combating public health challenges.
- Pledge that its colleagues will share $10 million per year in value of volunteer hours to support the initiative Building Healthier Communities.
- CVS is investing in building knowledge, skills and abilities through their Workforce Innovation and Talent Centres (WITC).
- In 2019, nearly 2,000 community members participated in a WITC development program
- At the manager level, CVS’s employees are evenly split with 52% women. In addition, 36% of individuals at vice president and above are women.
- Divers supplier program, focused on creating economic impact for women and diverse-owned businesses, drove a total economic impact of $2.95 billion and supported more than 35,000 jobs across the U.S. in 2019.
- CVS hired 90,000 new employees in 2019 paying wages of 15.6 billion and 2.7 billion in benefits and $4.4 billion in income.
- CVS reformulated 600 of their beauty and personal care products
- Installed 3,000 medication disposal units and collected nearly 1.35 million pounds of unwanted medical waste
- Remove oxybenzone and octinoxate from their products
- CVS achieved an absolute emissions reduction of 35% of Scope 1 and 2 emissions
- Collaborate with CDP’s Supply Chain Project to collect suppliers data
- In 2020, re-starting Science-Based Target to align with a 1.5 degree reduction
Even though CVS is leading their way in the social aspect of sustainability through diversity in their workforce, employee health and safety, workforce development and supplier diversity, CVS is lagging behind in their environmental progress.
As a leading healthcare retailer with more than 9,000 retail store locations, CVS has made very little progress in addressing the problems of single-use plastics, building footprint, transportation and fleet management.
Although CVS is listed in sustainability indices as Dow Jones Sustainability Index, GRI Index and CDP Climate change A list.
The CVS is in line with some of the UN’s Sustainable Development Goals but focuses mainly on SDGs that directly affect them or assist them in recruiting employees or that staff can carry out (volunteer work).
CVS does not have any certificates apart from a few LEED certified buildings and NCQA. Also, CVS doesn’t have any significant awards, therefore the rating is C.
Analyst Outlook: Neutral
Despite publishing its sustainability report with a future agenda, CVS does not have any concrete plan or specific targets to be achieved according to their 2030 strategy.
- CVS is progressing well in workforce diversity and other social initiatives
- CVS has a slow pace of progress in operational efficiency and other environmental factors