2011 CVS Caremark Corporate Social Responsibility Report

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2011 CVS Caremark Corporate Social Responsibility Report

Table of ContentsA Message from Our President and CEO ........................................................................................... 5CVS Caremark Company Profile......................................................................................................... 6Helping People on Their Path to Better Health.................................................................................... 8A Pharmacy Innovation Company Committed to Its People.............................................................. 22A Commitment to Diversity............................................................................................................... 32Social Commitment and Philanthropy............................................................................................... 40Innovating for a Healthier Environment.............................................................................................. 503Corporate Integrity, Information Governance and Business Practices............................................... 64Corporate Governance..................................................................................................................... 70About This Report............................................................................................................................ 76Global Reporting Initiative (GRI) Index............................................................................................... 782011 Corporate Social Responsibility Report


4We are:A pharmacy innovationcompanyOur purpose:Helping people on theirpath to better healthOur strategy:Reinventing pharmacyOur values:InnovationCollaborationCaringIntegrityAccountability2011 Corporate Social Responsibility Report


CVS CAREMARK:A PHARMACY INNOVATION COMPANYThe world of health carehas become complexand hard to navigate formost people. Whatpeople seek is a clearpath to better health toensure a healthy future.As a market leader inpharmacy services andretail medical clinics,CVS Caremark isuniquely positioned toengage patients and plan members in behaviors thatwill improve health outcomes and lower health carecosts. In order to fully realize this potential, we clearlydefined our purpose – helping people on their pathto better health – and sharpened our strategy –reinventing pharmacy. Core to our strategy is a focuson innovation.“Innovation” to us means demonstrating openness,curiosity and creativity in the relentless pursuit ofexcellence. If we are going to make a difference inhelping people on their path to better health, thenwe must provide more relevant, caring, expertguidance, more cost-effective solutions and evenmore convenient access. Simply put, we mustinnovate and do things differently.We are making these changes because we know ourcustomers, clients and patients need a trusted partnerto help them stay healthy. We do this by expandingand empowering the role of the pharmacist. Ourpharmacists don’t just fill prescriptions. In 2011, theycontinued to use the latest technology – and ourcompany’s extensive research and knowledgeof chronic health conditions and medication adherence– to become everyday advocates for the health of ourpatients. This spirit of patient advocacy and ourstrategy of reinventing pharmacy are further strengthenedby the unique services performed by our pharmacistsand our MinuteClinic nurse practitioners, who arelocated together in many of our stores.Our commitment to this reinvention goes beyond thepharmacy and retail health clinic environment. It resultsin a focus on innovation that permeates every aspectof our business and operations, from our policies andprocedures, to our people.It is now standard procedure, for example, to continuallyassess our operational footprint and create moreinnovative, sustainable solutions to address our impacton the environment. We know, for instance, that theenergy used to power our more than 7,300 retailpharmacy locations accounts for the vast majorityof the company’s total energy use and is our mostsignificant environmental impact. So, in 2011, weimplemented various measures aimed at reducingenergy use in our stores without compromising thecustomer experience.We also value openness with our customers,stakeholders and the communities within which we dobusiness. In this report, for the first time, we haveincluded an accounting of our political contributionsand activities. And we are providing an expanded lookat corporate diversity, with new insights on diversityamong our colleagues.Of course, all good ideas start with great people.Whether it’s being more accountable, looking for newways to save energy, or volunteering to support acompany-sponsored charity, our 200,000 colleaguestruly define “who” we are as a corporate citizen.I invite you to read about how we’re helping people ontheir path to better health through our innovative programsand people, some of whom you’ll meet in thisreport. And I invite you to get a real sense of theexciting progress we’re making, in many different ways,every single day.Sincerely,Larry J. MerloPresident and Chief Executive Officer52011 Corporate Social Responsibility Report


6CVS CAREMARKCOMPANY PROFILECVS Caremark (NYSE: CVS), headquartered inWoonsocket, RI, is the largest pharmacy health careprovider in the United States with integrated offeringsacross the entire spectrum of pharmacy care. We area pharmacy innovation company, uniquely positionedto deliver significant benefits to health plan sponsorsthrough effective cost management solutions andinnovative programs that engage plan members andpromote healthier and more cost effective behaviors. Ourintegrated pharmacy model enhances our ability to offerplan members and consumers expanded choice, greateraccess and more personalized services to help them ontheir path to better health. CVS Caremark is a marketleader in mail order pharmacy, retail pharmacy, specialtypharmacy, and retail clinics, and is a leading provider ofMedicare Part D Prescription Drug Plans.The pharmacy benefit management (PBM) divisionprovides a range of services including mail orderpharmacy, specialty pharmacy, Medicare Part Dservices, plan design consultation and administration,formulary management, claims processing, pharmacynetwork management, disease management andpharmacogenomics. As one of the country’s largestPBMs, we provide access to a network of more than65,000 pharmacies, including CVS/pharmacy ® stores.Our clinical offerings include our signature PharmacyAdvisor ® program as well as innovative generic steptherapy and genetic benefit management programs thatpromote more cost effective and healthier behaviors thatimprove health care outcomes.Our retail pharmacy division includes more than7,300 CVS/pharmacy stores that provide unparalleledservice and capabilities. CVS/pharmacy stores dispenseprescription drugs and sell a wide assortment ofhigh-quality, nationally advertised brand name andprivate label merchandise. We currently operate in92 of the top 100 U.S. drugstore markets and holdthe number one or number two market share in 73 ofthese markets. Our retail-based health clinic subsidiary,MinuteClinic ® , utilizes nationally recognized medicalprotocols to diagnose and treat minor health conditions,perform health screenings, monitor chronic conditionsand deliver vaccinations.We employ approximately 200,000 colleagues in44 states, the District of Columbia, and Puerto Rico.At year-end 2011, we operated 7,327 retail drugstores,550 full-time MinuteClinic locations, 31 retail specialtypharmacy stores and four mail order pharmacies,and our CVS.com ® , Caremark.com and MinuteClinic.comwebsites. During 2011, the company increased thenumber of CVS/pharmacy and MinuteClinic locationsand decreased the number of retail specialtypharmacy stores.2011 Corporate Social Responsibility Report


7COMPANY DATA 2011FINANCIAL HIGHLIGHTS (IN MILLIONS, EXCEPT PER SHARE FIGURES)Net revenues $107,100OPERATIONAL HIGHLIGHTSStore count at year end 7,327Operating profit $6,330Retail clinic count at year end550 Full-timeNet income attributable to CVS Caremark $3,461Diluted EPS attributable to CVS Caremark $2.59Stock price at year end $40.78Market capitalization at year end $52,937Retail specialty pharmacy stores 31Mail order pharmacies 4Number of employees 200,000Facility and store locations 44 States, the Districtof Columbia andPuerto Rico2011 Corporate Social Responsibility Report


I love working for this company. And it’s reallymore than a job to me. There are lots oftimes when one of my customers will call meon the phone and I always tell them, “If youhave a problem or if you have any questions,call me back. That’s what I am here for.”8I stress to them that I am there to educatethem on their medications – what they are,what they are supposed to do and how youare supposed to take them. And my teamis very committed to customer service. Weknow that a lot of our customers come to usbecause they are sick, so they really can’tbe waiting a long time for us to help them.They want to get in, get out, get home andget better. We know that.That they leave my store with a positiveexperience, that’s important to me.Paula MonkCVS Pharmacist2010 Corporate Social Responsibility Report


HELPING PEOPLE ON THEIRPATH TO BETTER HEALTH9As a pharmacy innovation company, CVS Caremark is continuously developing new ways to lower costsand improve health. We know that to make a difference, you have to do things differently; that’s why we’rereinventing pharmacy to help people on their path to better health. Reinventing pharmacy starts with thebelief that a pharmacy is much more than a place to get your prescriptions filled. It’s a place where youcan expect caring expert guidance, new solutions to reduce your health care costs and more convenientaccess to pharmacists and nurse practitioners.Reinventing pharmacy starts with the uniqueness of ourcompany. We are not exclusively a pharmacy retailer orsolely a pharmacy benefits manager. We are truly a“category of one” – a company delivering services thatwould be very difficult for any retail pharmacy orpharmacy benefits manager (PBM) to deliver on its own.CVS Caremark is reinventing pharmacy for betterhealth by:• Advancing the understanding of medicationadherence to assure better health outcomes• Engaging with patients through innovative programslike Pharmacy Advisor ® , Maintenance Choice ® andadditional programs that help our customers stay ontheir medications and stay healthier• Providing increased access to quality care throughMinuteClinic ® , our retail-based medical clinics• Offering free or affordable health services to thosewho are uninsured or underinsured• Ensuring quality and safety in all of our products anddispensed medications• Enhancing the customer experience and providing valueAdvancing Medication Adherence andthe Science of Pharmacy CarePrescription medicine helps sick people get better,but despite that an alarming percentage of patientsdo not take their medications as directed by theirdoctors. Research shows that 25 percent of patientswho have been prescribed medications for a newillness fail to fill their initial prescription. Half ofpatients taking maintenance medications for achronic disease stop taking their medications withina year of starting therapy. This non-adherence toessential medications is a frequent cause ofpreventable hospitalizations and patient illness,2011 Corporate Social Responsibility Report


10costing the U.S. health care system an estimated$300 billion annually.As a pharmacy innovation company that is reinventingpharmacy for better health, CVS Caremark isexamining why patients act the way they do when itcomes to taking, or not taking, medicine. To do this,we launched a research collaboration with HarvardUniversity and Brigham and Women’s Hospital in 2009.CVS Caremark has also established a BehavioralChange Research Partnership, which has enlistedbehavioral scientists and economists from CarnegieMellon University, Dartmouth College’s Tuck School ofBusiness and the University of Pennsylvania’s MedicalSchool and Wharton School of Business.Through these collaborations, we are advancingadherence and expanding the science of pharmacy care.We are engaging patients by providing information tohelp them make more appropriate decisions about theirhealth. We are educating patients, physicians and thepublic about the importance of staying adherent. We areengaging policy leaders in discussions about theimportance of pharmacy care as a strategic health careimprovement tool and have conducted an informationalcampaign directed to policymakers on this issue. We arealso conducting a public education campaign thatbegan in May 2011 with a forum on medicationadherence at the National Press Club in Washington,D.C. and included the publication of compendiums ofour research in May 2011 and March 2012.Our research agenda has resulted in 20 peer-reviewedpublications including studies about:• the financial impact of adherence and how the useof cost-effective medications can impact behavior;• contributing factors to medication adherence;• the role and impact of health care professionals onadherence; and• the role and impact of technology on adherence.In addition, in March 2012, we published the State of theStates: Adherence Report, a first-of-its-kind study thatlooks at how patients in all 50 states are complying withtheir doctors’ orders about taking medication. Thisreview of CVS Caremark’s pharmacy benefit managementclaims data focused on four common diseasestates – hypertension, high cholesterol, diabetes anddepression – that make up a large portion of what healthplan sponsors spend for prescription medications.We plan to share the State of the States: AdherenceReport with state and regional officials and policymakers in all states. We hope by convening thesediscussions around adherence we can urge policymakers to make the goal of improving medicationadherence a national priority.Our medication adherence research has been essentialin the development of our Pharmacy Care EconomicModel (PCEM) that pinpoints the potential cost savingshealth plans can achieve by adopting programs thatimprove medication adherence. The CVS CaremarkPCEM outlines savings in excess of $50 million in medicalcare cost avoidance and increased productivity forbusinesses with 100,000 health plan members.The information we have assembled will help us driveinnovation, further defining how we deliver patient carein the future.Improving Adherence Through Pharmacy Advisor ®and Maintenance Choice ®Pharmacy Advisor is CVS Caremark’s uniqueapproach to help patients with chronic conditionsachieve better health outcomes by promotingimproved medication adherence and closing gaps incare. Through the program, CVS Caremark engagespharmacy benefit management plan membersface-to-face at CVS/pharmacy or by phone whenthey fill prescriptions through CVS Caremark’s mailservice pharmacy.CVS Caremark launched Pharmacy Advisor fordiabetes in early 2011 and early metrics show verypromising and positive behavior change. For example,we saw a 7.6 percent decrease in prevalence of gaps inmedication therapy in the Pharmacy Advisor programgroup as compared to a 3.2 percent increase in thecontrol population. Additionally, we saw a 19 percentdecrease in first fill drop-off percent for diabetesmedications. By the end of the year, 640 clientsrepresenting 12.2 million lives had implementedone-on-one outreach for plan members with diabetes2011 Corporate Social Responsibility Report


through Pharmacy Advisor. More than 700,000members were contacted by the program and 1.6million clinical interventions were delivered, including1.2 million live interventions.The Pharmacy Advisor program was recognized bythe Pharmacy Benefit Management Institute (PBMI)with the 2011 Rx Benefit Innovation Award and byURAC for Best Practices in Health Care ConsumerEmpowerment and Protection. An independent,nonprofit organization, URAC is a leader inpromoting health-care quality through accreditationand certification programs.In 2012, Pharmacy Advisor will begin addressingchronic cardiovascular care, which will initially focus onimproving medication adherence for four conditions:high blood pressure, high cholesterol, coronary arterydisease and congestive heart failure.CVS Caremark’s Maintenance Choice program isanother example of the company’s commitment toproviding quality pharmacy health care that is moreconvenient, accessible and affordable. The programgives eligible pharmacy benefit management planmembers the option of picking up their 90-daymaintenance prescriptions at CVS/pharmacy locationsrather than receiving them through the mail. Planmembers who use the program say they consider it tobe a benefit enhancement and CVS Caremark datashows that for members who are new to therapy, 30percent more stayed on therapy after 180 days in theMaintenance Choice program versus traditionalprescription mail order programs. Approximately 10million CVS Caremark plan members were enrolled inMaintenance Choice as of early 2012.Patient Care Initiatives Driving BetterHealth OutcomesCVS/pharmacy has also introduced a number ofunique patient care programs to improve medicationadherence in retail pharmacy patients. Theseinitiatives help people on their path to better healthand improve pharmacy service. Care 1on1,introduced in 2011, offers CVS/pharmacy patientsdedicated one-on-one time with a pharmacist to11How much can be saved bybetter medication adherence?A study published in the January 2011 issue of Health Affairs definitively established that adherentpatients who take medications as directed cost the health care system less. Patients who wereadherent to their medications achieved savings as the result of fewer emergency department visitsand fewer in-patient hospital days.Congestiveheart failurepatientssaved$7,823on averageper yearHigh bloodpressurepatientssaved$3,908on averageper yearHighcholesterolpatientssaved$1,258on averageper yearDiabetespatientssaved$3,756on averageper year2011 Corporate Social Responsibility Report


I knew health care was my calling whenI first volunteered as a candy striper at thelocal hospital. It was there that I learned theimportance of patient education and thepower of compassionate care. As a nursepractitioner at MinuteClinic, those earlylessons have served me well. Patients puttheir trust in me to make the right decisionsfor their well-being, and my commitment tohelping them on their path to better healthnever wavers.12My work at MinuteClinic is the mostrewarding yet in my career. It is great towork for a company that shares my passionfor helping others, and offers an affordable,welcoming place for patients to get thecare they need.Kit O’Neill-ConoverNurse Practitioner, MinuteClinicdiscuss savings, safety and side effects when theirprescription for a maintenance medication istransferred or filled for the first time. Additionalprograms include first fill counseling, adherenceoutreach, refill reminders and ReadyFill ® .More than 150 million patient interventions have beenconducted through these programs since 2008,including 60 million in 2011 alone.Providing Increased Accessto Care through MinuteClinic ®MinuteClinic, the leading retail health care provider in theU.S., is reinventing pharmacy by providing patients withconvenient access to high-quality affordable health careat their retail pharmacy. Since 2000, MinuteClinic hasprovided care to more than 11 million patients – 10 millionof whom have been treated in the last five years. As of theend of 2011, there were approximately 550 full-timeMinuteClinic locations inside select CVS/pharmacy storesin 25 states and the District of Columbia. MinuteClinicreached its goal of opening more than 100 clinics in 2011and we are on our way to operating more than 1,000clinics by 2016.MinuteClinic provides walk-in care for common familyillnesses, injuries and skin conditions – in addition tovaccinations, physicals and monitoring services forchronic conditions – seven days a week without anappointment, including evenings and holidays.Convenience is a key factor that drives consumers toseek out high-quality care at MinuteClinic.A second factor is the profound shortage of primary carephysicians in the U.S. It is already a challenge for manypatients to be seen for common conditions like sorethroats and sinus infections. With a shortfall of at least45,000 primary care physicians expected by 2020, thisproblem is only expected to get worse. MinuteClinic givesthese patients – who might otherwise wait weeks or evenmonths to see a primary care physician – the opportunityto be seen and treated sooner. MinuteClinic services arecovered by most insurance plans, with patients typicallypaying their primary care co-pay for services.2011 Corporate Social Responsibility Report


Expanding Scope of ServicesMinuteClinic is also continuing to expand the scope ofservices provided into non-acute areas such asmonitoring and point of care testing for diabetes,hypertension, high cholesterol and asthma in additionto vaccinations and routine physical examinations. Intotal, these non-acute areas represent the fastestgrowing segment of the MinuteClinic business and areprojected to account for 25 percent of MinuteClinicvolume within the next five years.MinuteClinic continued to promote the value andconvenience of services for those with chronicconditions such as diabetes and in 2011 provided7,500 free diabetes monitoring visits including testingfor Hemoglobin A1c and kidney function, BMI, foot,blood pressure and cholesterol checks.In addition to offering monitoring, wellness servicesand physicals, MinuteClinic practitioners are trained todiagnose, treat and write prescriptions for commonfamily illnesses such as strep throat and ear, eye, sinus,bladder and bronchial infections. Minor wounds,abrasions and joint sprains are treated, and commonvaccinations such as influenza, tetanus, pneumovax,and Hepatitis A & B are also available.Quality and SatisfactionMinuteClinic was the first retail health care providerto receive accreditation (2006) and reaccreditation(2009) from The Joint Commission, the nationalcertifying agency for nearly 15,000 major health careorganizations. MinuteClinic has a 95 percentcustomer satisfaction rate as measured throughPress Ganey, the industry’s recognized leader inhealth care performance measurement.MinuteClinic’s Net Promoter Score, a measure ofrecommendation to family and friends, is on par withtop brands such as Apple and Amazon.com.Forging Health System RelationshipsMinuteClinic is forging collaborative clinical,information system, and health care relationshipswith many of the nation’s leading health systems,including Cleveland Clinic, Henry Ford HealthSystem, Emory Healthcare and others. In 2011,MinuteClinic finalized affiliations with nine health caresystems; one additional affiliation was added in early2012. Health system physicians collaborate withMinuteClinic practitioners to provide quality oversightand education services. Many of them also serve asMinuteClinic directors.13MinuteClinic Health System Affiliations (As of March 2012)1. Cleveland Clinic – Cleveland, OH2. Allina Hospitals & Clinics – Twin Cities, MN3. Dignity Health (formerly Catholic Healthcare West)– Phoenix, AZ4. St. Vincent’s Healthcare – Jacksonville, FL5. St. Rose Dominican Hospitals – Las Vegas, NVMinuteClinic has 550 full-timelocations in 25 statesand the District of Columbia6. Advocate Health Care - Chicago, IL7. INOVA – Northern Virginia, VA8. Cleveland Clinic-FL– West Palm Beach/Boca Raton, FL9. OhioHealth – Columbus, OH10. Henry Ford Health System – Detroit, MI11. Indiana University Health – Indianapolis, INCANVAZMNKSOKMOILINMITNNYPAOHVANCSCGARICTNJMDDCMA12. Emory Healthcare – Atlanta, GATX13. Carolinas Healthcare System – Charlotte, NCFL14. UMass Memorial – Worcester, MA15. TriStar Health – Nashville, TN2011 Corporate Social Responsibility Report


I graduated from pharmacy school in2009, so the challenges that come withbeing an intern and a new pharmacistare still fresh in my mind. As a pharmacypreceptor and pre-pharmacy mentor,I enjoy sharing what I’ve learned withothers as they make the journey fromstudent to licensed professional. I’m proudto introduce our interns to the world ofpharmacy health care and watch themgrow into their role over time.Of course, I encourage all of mypharmacy interns to consider a careerwith CVS/pharmacy when they graduate.Why? Because I believe in what we do,and I want to ensure our next generationof pharmacists is there to help patientsunderstand their medications and stayadherent to them. It’s one important way wehelp people on their path to better health.15Jamie ThomasCVS PharmacistFree Health ScreeningsIn 2011, CVS/pharmacy provided free and low-costmedical screenings and services to more than 162,000people through its To Your Health and A Su Saludprograms. Relaunched as Project Health in 2012, theprogram aims to prevent disease through earlydetection of such conditions as diabetes, high bloodpressure and high cholesterol. For more informationon the program, see p. 36.Ensuring Quality and SafetyPharmacy OperationsAll of our pharmacy operations, including mail services,specialty pharmacies and retail pharmacies, followcomprehensive quality assurance processes forprescription safety and accuracy. The dispensingprocess employed in our prescription mail serviceoperations includes extensive quality assurancemeasures, such as enhanced quality control, electronicimaging, quality procedures for compoundedprescription items, an integrated system for eligibilityverification and drug utilization review and final qualityassurance checks.Product quality and patient safety are top priorities forCVS Caremark. We are committed to ensuring theprescription medications and products we sell are safe,high-quality and cost-effective.At our specialty pharmacies, we employ an additionalcomprehensive review process for medicationappropriateness and conduct a complete patientassessment to help prevent safety, administration orefficacy issues with the prescribed medication.2011 Corporate Social Responsibility Report


performance of products once they are in the handsof consumers. Our efforts are focused on customersafety and satisfaction. This resulted in fewer CVSBrand product recalls and improvement inmanufacturing facilities’ regulatory compliance andgood manufacturing practices.A number of recalls in 2011 affected national-brandedproducts and a smaller number of store brandproducts. Our recall process is effective in removingproducts from the store shelves and changesimplemented in 2011 have reduced replenishment time.Cosmetic SafetyOur cosmetics supplier partners are actively engagedin ingredient and product safety and provide industrywidethought leadership on these issues. We requireour cosmetics vendors to supply CVS/pharmacy withproducts that comply with our Cosmetic Safety Policyand applicable regulations in regard to bannedsubstances and packaging requirements. In evaluatingvendor compliance to ensure cosmetics safety,products must be formulated to ensure they present norisk of contamination and each production batch mustbe tested to meet FDA requirements andCVS/pharmacy specifications. In addition, productingredients are identified and each ingredient isevaluated based on available safety information beforeit is considered for sale. Colorants are confirmed toensure they are acceptable for use by FDArequirements. Testing is performed to assess andconfirm skin compatibility as well as to confirm theabsence of lead, bisphenol A and phthalates asrequired by regulation.CVS/pharmacy Cosmetic Safety PolicyOur company is dedicated to improving the lives ofthose we serve through innovative and high-qualityhealth and pharmacy services. That is why we arededicated to staying abreast of new conclusive researchrelated to cosmetic safety, to assessing findings thatdemonstrate a linkage between certain health andenvironmental risks and specific chemical ingredientsused in beauty and personal care products, and toevaluating how these findings impact the productswe sell.We are commited to:• Providing our customers with innovative productsfrom around the world that have been hand-selectedand tested to meet or exceed regulatory standards.• Building relationships with partners who educate us onscientific research and developments related toingredients of concern in cosmetic products.• Continuously evaluating our CVS Brand and privatelabel products based on new research findings.• Partnering with our cosmetic suppliers to ensureproper protocols are used to ensure cosmetic safety.• Developing action plans to replace ingredients ofconcern in our branded and private label products whensafer alternatives are available and prompting similaraction by our supplier partners.• Educating consumers on our cosmetic safetystandards and on product evaluation tools that willenable them to take an active role in maintaininggood health.Enhancing the Customer Experienceand Providing Value17To further ensure safety and promote education acrossthe retail industry, our Product Development Managersparticipate in professional organizations and consultwith third-party experts on specific questions related toingredient and product safety facing the industry. OurGovernment Affairs team and third-party qualityassurance labs keep us apprised of current andpotential legislation that would impact our protocols, aswell as developments around the world that mayeventually impact U.S. standards. We are alsomonitoring the Food Safety Modernization Act andReasonable Testing program to understand whatimpact that will have on us and our suppliers.CVS Caremark is continually finding new opportunitiesto engage with our customers to more fully understandtheir needs and provide better solutions that improvethe customer experience.Rewarding Customers with ExtraCare ®CVS/pharmacy’s ExtraCare program has becomethe largest retail savings and rewards programin the United States with more than 69 millionactive cardholders. ExtraCare is also the vehicle foroffering our customers value and a personalizedshopping experience.2011 Corporate Social Responsibility Report


19As a pharmacist who used to work in ourretail stores, I know that patients worryabout getting their prescriptions on time.In leading the development of our VirtualPharmacy initiative, I was part of a team thatsped up delivery of mail prescriptions bydispensing and shipping from the locationclosest to the member.In fact, this particular solution shaved twodays off of the dispensing and shipping process,making a real difference in the lives ofthese patients.I’m proud to work for a company that putsour customers first, encourages new ideasand rewards innovation.Eric ChelenaManager, Mail Pharmacy Operations2011 Corporate Social Responsibility Report


“In early 2012, CVS/pharmacy introduced OrderReady Text Messaging to provide customers withimmediate notification via text message when theirprescription is ready to be picked up.”20customers’ shopping and prescription refill functionalitythrough its mobile site (m.cvs.com), making it possiblefor customers to use mobile devices to scan theirExtraCare card and manage their ExtraCare account,scan and send prescription refill requests and orderphoto prints from CVS Photo Centers.In early 2012, CVS/pharmacy introduced Order ReadyText Messaging to provide customers with immediatenotification via text message when their prescription isready to be picked up.Gathering Retail Customer FeedbackCVS/pharmacy has a proprietary Advisor Panel ofmore than 100,000 consumers who provide us withfeedback on a quarterly basis on a variety of topicsthat we use to develop new programs and products.In 2011, the Advisory Panel provided input on theexterior design of the CVS/pharmacy freestandingprototype, the look and feel of weekly circulars andthe design of the CVS Brand “Big Chill” water bottle.We have a state-of-the-art focus group facility, which isattached to a full-sized prototype of a CVS/pharmacystore. We use this facility to gain input on store layoutand design, product merchandising concepts, signage,way-finding and other store features. The facility is alsoequipped with eye-tracking technology to help measurewhat customers actually see while shopping our aisles.Advanced analytics in the area of shopping-path trackingwithin the store have yielded insights that have allowedus to build awareness and usage of MinuteClinic, utilizeproduct to help shoppers navigate the store, removematerials that don’t contribute positively to the shoppingexperience and reorient critical messaging to the rightplaces in the store for maximum visibility.Engagement with customers has helped to identify theirdesires – such as staying healthy and saving time andmoney – and the successful innovations we have toaddress them, such as drive-thru pharmacies, ReadyFill,large “club” sizes of OTC products, MaintenanceChoice, ExtraCare and MinuteClinic.In addition, our service measurement system garnersfeedback from more than two million retail customersannually, with results reported to every store, district,region and area on a monthly basis. This system allowsus to call a centralized IVR system and listen to audiorecordings of comments from customers of any storeacross the chain. We have utilized this system to bothleverage existing service strengths and focus on areaswhere we have improvement opportunities. For example,based on customer feedback, we added the Send toCard feature on ExtraCare (p. 18), streamlined our storeautomated phone system and began fulfilling requeststo provide text messaging to customers when theirprescriptions were ready to be picked up.PBM Client and Member Satisfaction MeasuresWe continuously strive to exceed customerexpectations. Twice a year we conduct a survey toassess PBM client satisfaction with the accountteams that serve them and with CVS Caremarkservices overall. In addition, we continuously monitorsatisfaction among members who use our mail andspecialty pharmacy services and our Customer Carecall centers. Results of these surveys provide criticalinput to service improvement strategies.For example, based on member feedback, weadjusted certain plan member contact phonenumbers to eliminate a transfer and shorten the calllength, making it possible for members to call adedicated team directly to have their questionresolved. We also adjusted the drug supply triage callprocess to include authorizing an emergency supplyto be picked up at retail if a plan member iscompletely out of medication.2011 Corporate Social Responsibility Report


21It’s not every day that you can say you’ve trulymade a difference in another person’s life.I remember one patient I helped before theThanksgiving holiday in 2011. I’d spent manyhours talking with representatives from thispatient’s insurance plan and working with herphysician. My efforts resulted in the specialtymedication she needed being approved byher Medicaid plan. She said to me that shecould finally promise her daughter a “tomorrow”– a word she had never been able touse before that day.We truly do make a difference, and it’s whyI’m proud to work for this company.Penny JohnsonSenior Representative/Infusion TeamPBM Specialty Enrollment2011 Corporate Social Responsibility Report


22In HR Benefits Communications, ournumber-one goal is to help CVS Caremarkemployees on their path to better physicaland financial health by making sure theyknow about the benefits programs availableto them. We develop multimedia campaignsto help our colleagues understand whattheir benefits are and how they work,notify them of changes when applicableand help them get the most from ourhealth and wellness programs.Here at CVS Caremark, we work every dayto deliver for our patients and customers. Ifeel proud when I hear colleagues say theywork for a company that cares as muchabout their wellbeing as they do about thepeople we serve.Therese ProkopHR Benefits Communications Manager2010 Corporate Social Responsibility Report


A PHARMACY INNOVATIONCOMPANY COMMITTED TOITS PEOPLE23You cannot be a company driven by innovation and industry-leading ideas without cultivating talentedpeople who truly believe in what you have set out to accomplish. CVS Caremark knows that in order tohelp our millions of customers on their path to better health, we must offer a best-in-class workplace thatattracts colleagues who truly want to make a difference. We pride ourselves on having a workforce that is asdiverse as the many different ways we serve our patients, customers and clients. And we reward that servicewith outstanding benefits and a corporate culture that encourages imagination and frequently challengesconvention. It takes the best people to reinvent pharmacy. And they work here.Comprehensive Benefitsreimbursement; and an employee discount at our stores,as well as access to many other employee discounts.Our company offers a comprehensive benefits packagethat includes personalized health care and wages thatreflect the knowledge and experience required for aspecific job. In all, CVS Caremark invested $8.4 billion in2011 on wages and benefits for our colleagues.Full-time colleagues, those working an average of 30hours per week or more (23 hours per week in CA), areoffered a full benefits package, which includes a 401(k)and an employee stock purchase plan; comprehensivemedical, prescription, vision and dental coverage withcontributions payable on a pre-tax basis; fertility andadoption benefits; life, accident and disability insurance;flexible spending accounts; paid time off; tuitionIn 2011, our full-time medical benefits package wasmodified under the Patient Protection and AffordableCare Act. The plan now allows for coverage ofdependents up to the age of 26, requires no co-payfor preventive doctor’s office visits and removed thelifetime maximum on coverage.Our part-time colleagues are eligible for a limitedbenefits package that includes medical, hospitalindemnity, dental, vision and life insurance that arepaid for by the colleague on a pre-tax basis.Making Healthy ChoicesAs we help our customers and patients become and2011 Corporate Social Responsibility Report


24stay healthy, we do the same for our colleaguesthrough a variety of internal wellness programs andinitiatives. Our emphasis on a healthy workplace hasbeen repeatedly recognized by third-partyorganizations.For example, in 2011, CVS Caremark once againreceived praise for its proactive approach toworkplace health and its investment in programs thathelp colleagues and their families make betterchoices about their health and well-being. TheGreater Providence Chamber of Commerce and BlueCross and Blue Shield of Rhode Island gave thecompany an Exemplary Award – its highest honor– as part of the Worksite Health Awards, whichrecognize Rhode Island businesses working topromote worksite wellness.Through our comprehensive wellness intranet portaland our signature WellRewards program, we have ahistory of success in helping colleagues improvetheir health in several key areas including smokingcessation, improved rates of mammograms andcolon-cancer screenings, prenatal maternity care,physical activity and healthy eating.Our strategy is twofold: encourage colleagues to begood consumers of health care and help them makehealthier lifestyle choices. Colleagues are educatedabout making better decisions through a variety ofresources, including a Care Advocate Team ofdedicated nurses, decision support tools, selfdirectedDVD programs, a quarterly wellnessnewsletter, health assessments and diseasemanagement programs. These programs utilizeseveral methods to help colleagues improve healthbehaviors, including seminars, coaching, incentivesfor community weight loss solutions, cafeteria“stop-bys,” online health improvement programs andexercise competitions.Tens of thousands of CVS Caremark colleagues tookadvantage of the tools we made available to them in2011. By engaging with their Care Advocate Teams,answering Health Risk Questionnaires and enrollingin targeted health initiatives, they found ways toincrease their control over their own health.In 2010 thousands of colleagues earned points forhealthy lifestyle choices – such as obtaining a flushot, completing preventive health screenings or2011 Corporate Social Responsibility Report


participating in several newly introduced exercisechallenges – and qualified for a $180 premiumreduction on their 2011 health insurance through ouraward-winning WellRewards program.In 2011 colleagues again participated in the programby taking their “Wellness Review.” That reviewprocess was expanded to include a biometricsscreening component. Better By Numbers alsogranted colleagues points for finding out theircholesterol, BMI, blood pressure and blood sugarlevels, which they could do at onsite locations,MinuteClinic or their primary care physician’s office.To kick off the Better By Numbers program, CVSCaremark President and CEO Larry Merlo personallyencouraged every CVS Caremark colleague enrolledin the CVS Caremark medical plan to get a freehealth screening and “walked the walk” by receivinghis 2011 screening at MinuteClinic.Health screenings were not the only component ofpreventive care the company focused on. Thecompany continued its emphasis on smokingcessation. Of note, 547 colleagues enrolled in theHealthy and Smokefree cessation program in 2011and 254 of them quit. The initiative’s six-monthvalidated quit rate is 52 percent.Destination: Healthy Baby!In the area of neonatal health, our colleagues and theirbabies made very significant progress in 2011, throughthe Destination: Healthy Baby! program. This programis designed to lower the rate of pre-term births, thenumber of pregnancy-related hospital admissions andthe length of admissions to the Neonatal Intensive CareUnit (NICU). Expectant mothers are encouraged toenroll early in their pregnancies. The program providesthem access to a personal maternity nurse, support forany special needs during pregnancy, customizedmaternity education materials and a parenting programfor their first year as a parent.In the third trimester, after completion of a PostpartumDepression Assessment, program participants receiveadditional materials including an Infant CPR Friends &Family Kit. In 2011, 40 percent of the colleaguescovered by our health plans who became pregnant,and 100 percent of NICU admissions, enrolled in theprogram. As a result, the preterm birthrate for ourenrolled colleagues was 10 percent, as compared withthe national average of 12.7 percent. And the averagelength of hospital stay for NICU babies decreased 8.4percent, down from 16.5 days in 2010 to 15.1 days in2011, which is an overall reduction of 22 percent sincethe program began.25New smoking cessation strategies were developed in2011 which will be formally launched in 2012. First,CVS Caremark colleagues and family members will beable to earn $160 or more by participating in a newresearch study being conducted by the University ofPennsylvania. The Way to Quit study is designed totest new ways to help people stop smoking.Additionally, recognizing that tobacco use is a leadinghealth risk, the company’s senior leadership finalizedplans for CVS Caremark campuses to becometobacco-free by the end of 2013. On August 1, 2012,our Rhode Island corporate campuses will becomethe first to take this healthy step.“Recognizing that tobaccouse is a leading healthrisk, the company’ssenior leadership finalizedplans for CVS Caremarkcampuses to becometobacco-free by theend of 2013.”2011 Corporate Social Responsibility Report


Recognizing and RewardingHard WorkWhether a colleague has gone above and beyond on aspecial project or makes our company’s values aconsistent hallmark of their work ethic, CVSCaremark’s colleague recognition program ensuresthat our people feel valued, empowered andinstrumental to our collective success.Paragon AwardEach year, we recognize our company’s best andbrightest with the CVS Caremark Paragon Award. Thisaward, the highest honor a colleague can achievewithin our company, is reserved for individuals whomake remarkable contributions on the job or in theircommunity. Our “Paragons,” as they are called, haveembraced their role in helping people on their path tobetter health and inspire others to do the same. Theexample they set each day helps our entireorganization succeed. In September 2011, ninecolleagues were recognized with the CVS CaremarkParagon Award – two from our PBM division, six fromour retail store operations and one from MinuteClinic.In addition to these national winners, 16 colleagueswere honored with a prestigious Area-level ParagonAward, along with 700 retail Region and Districtwinners. In total, our nearly 800 Paragon winnersrepresent the top one percent of those eligible toreceive the award.CEO AwardThe company recognizes noteworthyaccomplishments by non-store colleagues throughthe prestigious CEO Award. In 2011, the CEO Awardwas given to 14 colleagues for leading successfulmajor initiatives, teamwork, generating new ideas,increasing revenues and demonstrating leadershipand commitment to our purpose and values. Theselection process is rigorous and includes input fromthe individual’s supervisor, our management team andthe CEO.Breakthrough AwardsAnnounced on a quarterly basis, the CVS CaremarkBreakthrough Awards recognize those colleagues whonot only deliver top-notch results and execution, but inparticular those who are innovative in their approach.As our company strives to reinvent pharmacy for betterhealth, innovation will ultimately be the measure of oursuccess. As such, our Breakthrough Award winners– numbering about 50 in 2011 – are helping prepare ourcompany for the future, and setting an example foreach of us to follow.Values in ActionIn 2011 CVS Caremark finished the development phaseof a brand new recognition program designed tocomplement our strategy to reinvent pharmacy with thepurpose of helping people on their path to better health.Specifically we want to recognize and reinforceoutstanding colleague behavior that demonstrates ourcompany values: innovation, collaboration, caring,integrity and accountability. The Values in Actionprogram, launched in April 2012, is an online rewardssystem through which colleagues can recognizeeach other and leaders can recognize any colleagueacross the company and grant them points that areredeemable for merchandise, travel, vouchers, giftcards or charitable donations.Colleagues will also be able to nominate one anotherfor a new Values in Action Breakthrough Award. Thenew intranet-based system will have a dedicatedValues in Action home page that will display a real-timenewsfeed of all recognition posts and provide visibilityto all of the great things CVS Caremark colleagues do.Additionally, it will contain a “leader board” which willprominently display the names of the top recognizedand the top recognizers.272011 Corporate Social Responsibility Report


30these innovative facilities are fully-operational mock-upsof actual CVS/pharmacy stores, allowing our colleaguesand community partners to receive instructor-ledtraining in a “real-world” environment. The programcontinued to support the training and development ofmore than 8,000 retail colleagues in 2011. The RLCs –located in Massachusetts, New Jersey, Washington, DC,Ohio and Michigan – are also used by organizations thatwe partner with to provide job-seekers with valuableemployment skills and job opportunities. In fact, in 2011,we hired 617 new colleagues as a result of these trainingpartnerships. In 2012, we plan to open an eighth centerin New York City.Through the Welfare to Work program, we have hiredmore than 75,000 people since 1996 who had beenon public assistance prior to joining our workforce. In2011, more than 5,000 people were hired through thisprogram. We are proud to have a high rate ofretention of these colleagues that is approximatelydouble the rate of the average new retail colleague.Mature WorkersIn 2011 we continued to invest in our Mature Workersprogram, Talent is Ageless, an initiative designed torecruit and retain colleagues who are age 50 or older.Over the past two decades, CVS Caremark hasactively increased the number of colleagues who are50 or older through our mature worker programs andpartnerships with groups such as AARP, NationalCouncil on Aging, American Society on Aging,Experience Works, Senior Community ServiceEmployment Program, and others.Today, colleagues over the age of 50 representapproximately 19 percent of our workforce. Some ofour mature workers have been with the company foryears, with many completing their 40th, 50th and even60th year of service. Others have joined the companyas a second career – sometimes choosing to workjust part-time.Workplace PoliciesAs an employer, we maintain a set of policiesdesigned to ensure that CVS Caremark workplacesare welcoming, inclusive and productive places whereall colleagues feel safe and empowered to contributeto our purpose. Our anti-harassment, antidiscriminationand other policies are embedded in ourCode of Conduct, which all colleagues sign whenjoining the company. While only a small number ofCVS Caremark colleagues are represented by unions– approximately six percent – the right to organize isalso embedded in our company policies. We enjoyexcellent, professional and productive relationshipswith our union colleagues and their representativesand we recognize the right of our employees todecide whether or not to join a union.Health and SafetyProviding a safe workplace for our colleagues is anintegral part of the way we do business. CVS Caremarktakes the safety of our colleagues very seriously,knowing that a workplace with sound health and safetypractices leads to a safe work environment forcolleagues.Our Enterprise-wide Safety Program lays out our guidingprinciples. Best practices and safety awareness traininghave led to a steady reduction in colleague injury ratesover time. In addition, our team of safety professionalsspends time in the field educating colleagues on safepractices in the workplace. We believe these personalinteractions foster a safe workplace culture and engageour colleagues to make good decisions. CVS Caremarkended 2011 with reduced employee injuries comparedto 2010 and no employee fatalities.In 2012, the Safety Team will continue to look foropportunities to improve best practices and increaseawareness among colleagues of the importance of theirrole in creating a safe workplace.2011 Corporate Social Responsibility Report


31Peggy Powers, of Walkersville, MD, turned 90 in 2011 and she continues to work in our CVS/pharmacy store there. She has beenworking in the retail pharmacy industry for 68 years and personifies our commitment to mature workers.Photo courtesy of The Frederick News-Post.2011 Corporate Social Responsibility Report


In far too many of the multiculturalcommunities we serve around the country,our customers have difficulty making theirhealth a top priority. A number of barriersoften get in the way: their own busyschedules, insufficient access to quality careand a lack of awareness or education aboutsome of the risk factors they may be facing.In 2011, we provided free and low-costmedical screenings and services to morethan 162,000 people.32And in 2012, we’re on track to offer morethan $21 million worth of free healthscreenings in multicultural communitiesthrough CVS/pharmacy.I’m proud to play a key role in helping peopleaccess quality preventive care.I’m proud to work for a company thatsupports our efforts to help our colleagueson the path to better health… so that wecan do the same for our customers.Dawn-Marie GraySenior Marketing Manager, Multicultural2010 Corporate Social Responsibility Report


A COMMITMENT TO DIVERSITY33At CVS Caremark, we pride ourselves on having a diverse workforce and on our commitment to serving multiculturalpopulations. In order to be a pharmacy innovation company, we rely on the different backgrounds and viewpointsof our colleagues. People from all walks of life, cultures and backgrounds make up the mosaic of professionalswho work here. We celebrate differences in age, gender, family status, race, ethnicity, religion, disability, sexualorientation, appearance, thought and mannerisms. We have championed a number of programs and policies thatunderscore our commitment to diversity, such as our support of colleague resource groups, direct support of themulticultural communities within which we do business and a robust and evolving supplier diversity program.Diversity Withinappointing and approving recommendations for theDiversity Management Leadership Council.Over the past five decades, our company hasgrown into a workforce of 200,000 employees. Inmany respects the diversity within our company is areflection of how diverse our offerings are and how wehave expanded to serve so many different customersand communities.Leadership in DiversityThe company continues to have an active DiversityManagement Executive Steering Committee, whichwas formed in 2010 and is chaired by our CEO. Thegroup provides leadership direction for the corporatestrategic diversity management plan and periodicallyreviews the progress against goals for workforcerepresentation, colleague engagement, talentdevelopment and marketplace diversity. The committeeis responsible for: overseeing the embedding ofstrategic diversity management into the businessagenda; serving as a visible and verbal champion ofthe company’s diversity management strategy; utilizingdiversity management as a course of business; andThe Council, formed in 2010, meets quarterly and istasked with coordinating, informing, championing,executing, measuring and reporting on the operationalelements of the diversity management strategy as setforth by the Executive Steering Committee. The group,which is made up of 14 senior leaders is also focusedon ensuring the effectiveness and integration ofworkforce, workplace and marketplace diversity efforts.Colleague Resource GroupsOne of the ways that we support and celebrate thediverse workforce we have at CVS Caremark isthrough the Colleague Resource Group (CRG) program.Colleagues who wish to form CRGs are sponsoredby the company and encouraged to represent CVSCaremark within the various communities we serve.These groups remained vibrant and active in 2011:Asian, African American (two), African American-Hispanic, Latino (four), Portuguese-Latino, Women(four) and Veterans. Additional groups – for LGBT andcolleagues with disabilities – are expected to form in 2012.2011 Corporate Social Responsibility Report


CVS Caremark Workforce34CVS Caremark continues to make progress indiversity management and was recognized as one ofDiversityInc’s 25 Noteworthy Companies for 2012. Alldata shown is for 2011.• Ethnic minorities comprised eight percent of the CVSCaremark Board of Directors. Women represented25 percent of the Board of Directors. All members ofthe Board of Directors were over age 50.• Women comprised 66 percent of the total workforceCVS Caremark*Employee Compositionat CVS Caremark, 57 percent of managers, and 33percent of senior leaders. Senior leaders include VicePresidents and above.• Ethnic minorities comprised 37 percent of CVS Caremark’stotal workforce, 30 percent of managers, andseven percent of senior leaders.• Ethnic minority (42 percent) and female (63 percent)new hire percentages were on par with or exceededexternal best practice benchmarks.MinuteClinicEmployee Composition63%White67%White14%African American12%African American11%Latino3%Latino10%Asian7%Asian2%Native American/Other11%Other/Not Indicated2%10%11%14%63%11%7%3%12%67%*Includes CVS Caremark permanent employees only, numbering 198,216; CVS Caremark does notengage a significant number of temporary employees. Of the total number of employees, approximately89.9 percent are engaged by the retail business and 7.6 percent by the pharmacy benefit managementbusiness; 2.5 percent are in corporate positions. Additionally, MinuteClinic employees number 1,823.2011 Corporate Social Responsibility Report


CVS CaremarkEmployees by Employment TypeCVS CaremarkEmployees by Age Group61% Full-Time47%Up to 3047%39%Part-Time61%34%30-5019%39%19%50+34%35CVS Caremarkand MinuteClinicEmployee Compostion(by gender)FemalesMales1008060402034%66%43%67%57%33%95%5%*Senior Leaders include CEOand CEO Direct Reports,and two levels below. SeniorLeaders are 93 percent white,2 percent African American,2 percent Asian, 2 percentLatino and less than 1 percentNative American and others.0Total ManagersWorkforceSeniorLeaders*MinuteClinicCVS CaremarkEmployee Compostion(by employment type and gender)13% Male Part-Time21%Male Full-Time26% Female Part-Time1008060402013%21%26%40%40%Female Full-Time0Total Workforce Managers Senior Leaders*2011 Corporate Social Responsibility Report


A Health CareEvolution forMulticulturalCommunities36We continued our focus in 2011 on addressing healthdisparities in the multicultural communities we serve.In July, all CVS/pharmacy locations became technologicallycapable of providing their customers with prescriptioninformation in 15 languages other than English.Additionally, the “To Your Health/A Su Salud” programoffered 806 free health screening events in Atlanta,Chicago, Dallas-Fort Worth, Los Angeles, Miami,Philadelphia and Washington, DC. Many of theseevents were held in multicultural communities andfocused on the importance and benefit of preventivehealth care when addressing health disparities thatsignificantly and disproportionately impact diversecommunities.All told, 162,201 people received screenings – worthapproximately $150 each – that checked blood pressure,cholesterol, bone density, vision and for signs of diabetes.Doctor consultations and medication reviews with aCVS pharmacist were also made available. Dental andchiropractic screenings and referrals for mammogramsand pap smears were offered in select locations.The health screening program detected health concernsin a high percentage of participants. The approximately485,000 tests performed revealed that, of those tested:• 36 percent had high cholesterol;• 42 percent had a high to moderate risk of developingosteoporosis;• 40 percent had hypertension;• 27 percent had blood sugar levels that indicateda risk for diabetes;• 57 percent had trouble with their vision.The company plans to continue these screenings in 2012through the launch of Project Health (Proyecto Salud inSpanish), a wellness program that is expected to delivermore than $21 million worth of free health screenings tomulticultural communities. Like To Your Health/A Su Salud,the program will offer an array of free comprehensivehealth risk assessments and screenings during fivedisease-specific national health awareness months fromHeart Health Month in February and Minority HealthAwareness Month in April to Diabetes Awareness Monthin November. Over 1,000 Project Health events arescheduled for 2012 in Atlanta, Chicago, Dallas-Fort Worth,Detroit, Houston, Los Angeles, Miami, New York City,Philadelphia and Washington, DC. Events are alsoplanned at CVS/pharmacy locations in Puerto Rico.All chartered CRGs are required to submit an annualbusiness plan in order to receive budgetary supportfrom the company. Beyond discussing companyissues and opportunities, our CRGs were activein local communities in 2011, contributing nearly1,300 volunteer hours over the course of the year.Internal program development is another focus.In 2011, the Women’s Success Network, one of ourlargest CRGs, launched a pilot mentoring programin partnership with the company’s senior leadersand with support from the Human Resourcesdepartment. The mentor program paired 27 mentorswith their respective mentees and a secondmatching phase is expected to launch in the thirdquarter of 2012.Diversity TrainingColleagues don’t have to be part of a CRG, however,to become familiar with the company’s stance ondiversity. All new colleagues are introduced to thecompany’s diversity management philosophy duringthe new hire orientation process, and diversity trainingis also offered throughout the year for various levelswithin the organization.2011 Corporate Social Responsibility Report


In early 2012, CVS Caremark collaborated with LucasFilm to sponsor screening events of the film company’s movie, Red Tails. In celebration ofBlack History Month, over 1,500 public school children took a field trip to see the film, which told the legendary tale of the Tuskegee Airmen, an allblack World War II fighter squadron. The students were also provided with an online curriculum that helped them understand the historical andinspirational significance of the film.37Also in 2011, we continued to deploy the “Diversity– the Competitive Advantage” curriculum, an onlinediversity class for leaders that enables participants tobuild their skills in identifying and managing diversityas a core strength of their teams. The expansion of theprogram included a two-part web-based seminar thatgave 165 managers and supervisors and 485 directorsthe specific tools they need to meet and exceed theirpersonal and professional goals in the area of diversitymanagement. These web-based courses were addedto the curriculum in addition to the company’s existinginstructor-led diversity management course in orderto make the content accessible across our entirecompany via LEARNet, our intranet learning portal.The program is slated to be expanded further in 2012to include all colleagues.Extending Diversity to theCommunities We ServeOur commitment to diversity extends beyond howwe run our business internally. We also believe that wehave an important role to play in fostering that samelevel of inclusiveness and celebration within thecommunities we serve.UNCFOur partnership with UNCF (the United Negro CollegeFund) was announced as part of our celebration of BlackHistory Month in 2011. As part of that partnership,CVS/pharmacy committed $50,000 in support of UNCFinitiatives, including the UNCF Campaign For EmergencyStudent Aid, which helps thousands of recession-impactedcollege students at 39 historically black colleges anduniversities complete their senior year and receive theirdegrees. The donation from CVS/pharmacy assistedstudents in paying for tuition, books and dormitory fees,helping to ensure their graduation.Our UNCF partnership also included promotion throughthe month of February 2011 of UNCF and Black HistoryMonth at more than 7,300 CVS/pharmacy storesnationwide through in-store radio announcementsfeaturing UNCF’s iconic motto, “A mind is a terriblething to waste. ® ”Hispanic Heritage FoundationIn late 2011 we also partnered with the HispanicHeritage Foundation (HHF) to identify, inspireand prepare young Latinos to join health carefields, through a new Health Care category of theprestigious HHF Youth Awards program. CVSCaremark and HHF recognized more than 30outstanding high school seniors of Latino descent fortheir academic performance, community serviceand interest in pursuing a career in health care.The recipients, three from each of 10 regions acrossthe country, received educational grants from CVSCaremark, as well as exposure to experts in healthcare fields and mentoring, training and internshipopportunities as they head off to college.2011 Corporate Social Responsibility Report


38CVS Caremark CEO Larry Merlo (left) participated in the opening ceremonies at the NUL Conference held in Boston in 2011.After receiving the awards, students are also directedinto HHF’s leadership cycle which includes the LatinosOn Fast Track (LOFT) program, which providesleadership training and workforce development invarious fields including health care. The studentsare also featured in public awareness campaigns toprovide inspiration to other youth and shatter negativestereotypes about Latinos.National Urban LeagueAs a title sponsor, CVS Caremark welcomed thousandsof delegates to the 2011 National Urban League(NUL) Conference held in Boston. Like the UrbanLeague, we value diversity and share a common beliefin the importance of revitalizing local communitiesand creating a more diverse workforce. In deepeningour partnership with the Urban League, we hope toleverage their grassroots reach into multi-culturalcommunities with the goal of helping people discovercareer opportunities with us.During the NUL Conference, CVS Caremarkparticipated in the Career Expo and had a boothat the Exhibition Hall where conference-goersreceived free health screenings and consultationswith pharmacists and nurse practitioners, got freemakeovers and received free samples ofCVS Brand products.Supplier Diversity ProgramOur Supplier Diversity Program complements theCVS Caremark commitment to sound business practicesand social responsibility in the communities weserve and recognizes the critical role diverse-ownedbusinesses play in our continued success and inproviding outstanding service and solutions to our customersand clients. CVS Caremark’s corporate cultureencourages support of the program to help ensure thatall diverse businesses are given a fair opportunity to dobusiness with us.In order to qualify for our Supplier Diversity Program,the supplier should meet the definition of a MinorityOwned, Woman Owned, Veteran or Disabled VeteranOwned, Disadvantaged Owned, LGBT Owned, HUB-Zone Owned, 8(a) Owned Business Enterprise andSmall Business Enterprise or be certified by authorizingbodies such as the National Minority SupplierDevelopment Council, Women’s Business EnterpriseNational Council, Small Business Association or by arecognized government agency.We spent more than $128 million within the diversesupply chain in 2011 and we are dedicated to continuingto develop procurement opportunities withdiverse suppliers.2011 Corporate Social Responsibility Report


CVS Caremark welcomed thousands of delegates to the 2011 National Urban League Conference held in Boston.We have also taken our Supplier Diversity Program toa new level by implementing a Tier II Diverse SupplierProgram. In addition to monitoring our purchases toensure we have diverse suppliers providing qualitygoods and services (Tier I), we now monitor our largevalued suppliers to ensure the inclusion of diverse supplierswithin their own supply chain (Tier II). This furtherillustrates that CVS Caremark is not only committedto the use of diverse suppliers in our organization, butalso to doing business with suppliers who are committedto the use of diverse suppliers in their own supplychains as well.In 2011 this program was further enhanced to allowfor better tracking of how much is spent within Tier IIand in the way the program measures and accountsfor diversity in the secondary supply chain. In orderto gain more visibility for the CVS Caremark SupplierDiversity Program and identify additional diversesuppliers, the company participated in numeroussupplier diversity events in 2011 hosted by thefollowing organizations:• South Florida Minority Supplier Development Council• Chicago Minority Supplier Development Council• Keeping the Promise• National Gay and Lesbian Chamber of Commerce• Women’s Business Enterprise National Council• Greater New England Minority SupplierDevelopment Council• United States Hispanic Chamber of Commerce• National Minority Supplier Development Council• Cosmopolitan Chamber of Commerce• City of Chicago Treasury OfficeCVS Caremark is a member of the National MinoritySupplier Diversity Council (NMSDC), NMSDC HealthCare Industry Group, NMSDC Retail Industry Group,Women’s Business Enterprise National Council, Associationfor Disabled Veterans Business Enterprises,United States Hispanic Chamber of Commerce, theNational Gay and Lesbian Chamber of Commerce andKeeping the Promise.In 2011, the Supplier Diversity Program also becamemore sophisticated with the launch ofan online portal that diverse suppliers can use toregister with us. High-tech solutions were alsodeployed to better track and report on spendingwithin the diverse supply chain and on the propercertification of diverse vendors.Diverse Retail Pharmacy ProgramThe Diverse Retail Pharmacy Program is acomponent of the CVS Caremark Supplier DiversityProgram. The pharmacy program encouragesdiverse-owned, independent retail pharmacies tobecome certified diverse-business enterprises inorder to expand and establish potential businessopportunities with CVS Caremark. Through thisprogram, CVS Caremark actively seeks to establishbusiness relationships with diverse-owned retailpharmacies that want to sustain and grow theirbusinesses. During 2011, CVS Caremark continuedto identify diverse retail pharmacies for inclusion inthe program.392011 Corporate Social Responsibility Report


40I like working for a company that cares. It means a lot to me that theyencourage us to support organizations like the Easter Seals, which sharesour purpose of putting people on the path to better health.Every year my family and friends help me raise money for families - like theone I’m pictured with here - through the Easter Seals Walk With Me event,which I got involved with a few years ago. At the time, I was looking for away to give back and my supervisor suggested I join the Walk With Me team.I love kids, and I want to help them. The money my colleagues and I raisegoes such a long way to making life better for children across the country,and I’m proud to be a part of that.Christopher GruttadauriaMinuteClinic, Recruiting Manager2010 Corporate Social Responsibility Report


SOCIAL COMMITMENTAND PHILANTHROPY41CVS Caremark recognizes that the best way to be part of a community is to get involved and give back. Formany of our customers and partners, times have been truly tough and help on their path to better health ismore appreciated than ever. CVS Caremark’s earnest commitment to the health of the communities we servecontinued in 2011, resulting in more than $48 million in community investments including: more than $1 millionin employee volunteer hours; $20 million in in-kind support and $27 million in monetary contributions to causesthat impact the lives of the people we serve every day.CVS Caremark Charitable TrustThe CVS Caremark Charitable Trust is at the very heartof our philanthropic giving program. In 2011, the Trustgrants, which totaled $4.3 million, continued to alignwith our two key focus areas: health care and children.In all, 98 non-profit organizations across the country in2011 were supported with new and multi-year grantsfrom previous years.With nearly 50 million people without healthinsurance in the United States, the CVS CaremarkCharitable Trust focused on the issue of access tohealth care, in addition to supporting familiesand children with disabilities. Grants totalingapproximately $1.3 million funded services rangingfrom improving primary care access and providinghealth care for the homeless to supporting otherunderserved communities.There are literally thousands of stories that exemplifyhow the Trust helps people on their path to betterhealth. In Lowell, MA, for example, we funded theLowell Community Health Center allowing them toproceed with the opening of a new health care facilitythat will provide high-quality, affordable health careservices to the city’s most needy residents. Threehundred miles south, homeless families devastated byuntreated medical conditions in Lawrenceville, NJ, arenow receiving care through funding we provided tothe Homefront organization. And in Atlanta, Georgia,thanks to the Trust, seniors who return home from thehospital are not left to face their recovery alone. Theynow receive the transitional care they need through theVisiting Nurse Health System, which strives to avoidinconsistent disease self-management, lack of followupcare and repeat hospitalizations.The CVS Caremark Charitable Trust made strategicinvestments in 2011 of nearly $3 million dollars in new2011 Corporate Social Responsibility Report


42and multi-year grants to support high-impact programsaimed at helping children of all ages and abilities. Forexample, we funded programs like the Mailman Centerat the University of Miami, which focuses on childhoodautism. In 2011, the Trust grant supported 150 familieswith children at the center, providing much neededlanguage interventions. From Wichita to Fort Wayne,from Jacksonville to Boston, children were helped byorganizations which aligned with All Kids Can ® . Manyof these programs were focused on improving thequality of life for children by strengthening parentalsupport and abilities. For example, in Pelham, AL,the Arc of Shelby County can now provide socialworkers to families in need. These health and welfareprofessionals, who are familiar with communityresources, serve as family advocates, teaching theirclients how to access needed financial assistance andeducational programs. And in Waterford, MI, parentsof infants and toddlers with developmental disabilitiesare being taught important early intervention strategiesthrough the Oakland School Education Foundation.Volunteer Challenge GrantsWith CVS Caremark colleagues across the countryvolunteering thousands of hours for community serviceprojects, the CVS Caremark Charitable Trust amplifiesthe positive impact they make through the fundingof grants for volunteer service. These grants not onlyhelp local nonprofits but also encourage colleaguevolunteerism. In 2011, the Trust distributed 185 grants.CVS Caremark Employee ScholarshipsThe Trust funds college scholarships for children ofCVS Caremark colleagues. An independent panel ofjudges reviews applications and chooses studentsbased on academic achievement and other factors,including talent and leadership qualities, extracurricularactivities, work experience and community service. In2011, we funded scholarships for 180 college-boundchildren of our colleagues, totaling nearly $500,000.CVS Caremark All Kids Can ®All Kids Can isn’t just the title of our signaturephilanthropic program; it is the belief at the very core ofour mission to help children be the best that they canbe. The goals of All Kids Can are: to support childrenwith disabilities by raising awareness in schools and inlocal communities about the importance of inclusion;creating greater opportunities for physical activity andplay; and providing access to medical rehabilitationand related services.We know that all kids can do just about anything andin 2011 we were there to support them on their journey.A program of CVS Caremark and the CVS CaremarkCharitable Trust, All Kids Can specifically helpscommunity-based programs that focus on promotinginclusion and helping children with disabilities learn,play and succeed. An analysis of the program’s directand indirect impact showed that an estimated six anda half million people benefitted from the full reach ofAll Kids Can in 2011.For example, we partnered with the Boston RedSox on the All Kids Can Batting Camps program forNew England children with disabilities. The programprovides the opportunity for Challenger League,Miracle League and inclusive teams to spend a day atFenway Park, receive on-field batting practice, havelunch in the Red Sox dugout, meet Wally the mascot,receive a VIP tour and attend the evening game. In2011, we held our first ever baseball camp for disabledveterans, creating a similar adult batting program andexperience.Similarly, we partnered with the New England Patriotsfor the fourth year on the CVS Caremark All KidsCan Patriots Day. This year, we paired former NewEngland Patriots players with youths from Easter SealsMassachusetts and other community organizationsfor a skills camp held at Gillette Stadium. Participantsranged in age from five to 21 years and came fromacross Massachusetts and Rhode Island to participatein warm-up and stretching exercises with the Patriotsalumni, experience cone-running drills and receiveinstruction on how to block, kick and throw.In the area of medical rehabilitation and related servicesCVS Caremark donated $25,000 to Children’s HospitalBoston through the Red Sox “Saves” and “ExtraInning” charitable initiatives, celebrating a $1 millionmilestone. Over the last five years, funds donatedderive from the CVS Caremark Charitable Trust and theCVS Caremark All Kids Can Program and support theHospital’s Cerebral Palsy Program and its Center forCommunication Enhancement.2011 Corporate Social Responsibility Report


43Constance Brown PhotographyWest Roxbury, MA residents Sheri Kiami and 9-year-old son Luca (left of photo) pose with friends Kristin Macchi and 8-year-old son James Macchiof Jamaica Plain, MA in front of an oversized New England Patriots helmet at the 4th annual CVS Caremark All Kids Can Patriots Day. The event,which included children from Easter Seals Massachusetts and other children with disabilities from Massachusetts and Rhode Island communities,took place in Foxboro in the Dana Farber Field House where the New England Patriots practice. Through the event, children and teens with disabilitiesworked with former Patriots players on blocking, kicking, throwing and cone-running drills.Specifically, our support enhanced the functionalmobility initiative – a unique multidisciplinary area ofservice recognized nationally and internationally forassisting children with cerebral palsy and other relatedneuromuscular disorders and intellectual disabilities thatoften accompany cerebral palsy. Funds earmarked forthe Hospital’s Center for Communication Enhancementtargeted the development of electronic learning tools forchildren with complex communication needs, especiallythose with autism and cerebral palsy, who have arelatively short opportunity to maximize learning.To celebrate our partnership, each year a hospitalpatient from one of the programs we fund is invited tothrow out the ceremonial first pitch before a Red Soxgame at Fenway Park. The child is also invited to joinCVS Caremark leaders, as well as doctors from thehospital, on the field for a pre-game check presentationceremony.Children’s Hospital of Philadelphia also benefittedfrom our support receiving $105,000 for roboticrehabilitation equipment, which included: a motorassistedlower extremity device designed to assistpatients with weakness and improve their abilityto walk; and an upper extremity device that usesrobotic-driven computer simulation to facilitate motormovements, helping patients regain functional skills.In addition to our on-the-ground support of numerousnonprofit organizations, our online presence served asa virtual community for many of those we have helped.2011 Corporate Social Responsibility Report


44Jacob, 12, of Randolph, Vermont created “Cow a Color World” as part of the 2011 All Kids Can CREATE program that, in concert with VSA,invited young artists with and without disabilities to submit a piece of artwork under the theme, “Imagination Across America.”On Facebook, for example, we more than tripled theAll Kids Can page’s fan base. Further underscoringthat sense of community online, 2011 saw the launchof the program’s blog as well. The All Kids Can blogcontinues to provide a trusted place where experts,parents, caregivers and members of the communityshare ideas and support.CVS Caremark All Kids CanNational PartnersEaster SealsEvery year, millions of young children with disabilitiesor at risk of developmental delays enter school alreadyfar behind other children. Many never catch up. Byidentifying and treating a delay early on, kids withautism and other disabilities have the best chance ofsucceeding in life and developing on par with their peers.As the nation’s leading nonprofit provider of autismand early intervention services, Easter Seals knowsthe impact early intervention services can make tostrengthen children’s physical, social, emotional andintellectual abilities well before kindergarten.In 2011, for the sixth year, CVS Caremark was theNational Premier Sponsor of Easter Seals Walk WithMe, Easter Seals’ national signature fundraising eventthat raises millions each year to help change the livesof people living with autism and other disabilities. CVSCaremark has provided nearly $7 million in support ofWalk With Me since 2006, when the company becamethe national premier sponsor of the event and choseEaster Seals as a national partner in its All Kids Canprogram. In addition, through CVS Caremark’s WalkWith Me program, $4.15 million has been raised bynearly 20,000 CVS Caremark colleagues nationwide.VSACVS Caremark All Kids Can teamed up again in 2011with VSA, the international organization on arts anddisability, to support inclusive arts education with the2011 All Kids Can CREATE student artists program.The annual national initiative invites students, agesfive to fifteen, to submit artwork to be showcased in anational exhibit in which each state and the District ofColumbia are represented. The All Kids Can CREATEfor 2011 invited young artists with and withoutdisabilities to submit a piece of artwork under thetheme, “Imagination Across America.”The collection of submissions became a nationaltouring exhibition featuring a total of 102 pieces ofartwork, representing two student artists from eachstate and the District of Columbia. It debuted inWashington, D.C. on June 15, 2011 and CVS Caremarkbrought 10 artists, their families and five of theirteachers to the event.An expert panel of judges, including artists and arteducators, selected the 102 pieces of artwork outof more than 4,700 entries submitted from artists2011 Corporate Social Responsibility Report


across the country. All of the artwork submitted, frompaintings to sculptures to photographs, were alsofeatured in an online gallery.The All Kids Can CREATE exhibition is just one partof VSA and CVS Caremark’s yearlong partnership,which also included support of state VSA affiliatesthat encourage learning and community engagementthrough artistic expression. Strategic grants at thestate level also support artist-in-residence programsin schools that expand access and document learningthrough the arts for students with disabilities. CVSCaremark employees also participate by volunteeringin activities in their communities and schools to helpbuild inclusive environments.45Disaster ReliefUnfortunately 2011 was not free of natural disasters,but CVS Caremark employees and the Charitable Trustgave nearly $450,000 toward disaster relief, easing theheavy burden of tragedy for many.In March, after a powerful earthquake and tsunami hitJapan, the CVS Caremark Charitable Trust donated$100,000 to the American Red Cross to support reliefefforts there. We followed up with another donation of$87,648 to match the same amount our CVS Caremarkcolleagues personally donated through a dedicatedweb-based portal we established in response to thedisaster.The following month we announced a donation of$75,000 to the American Red Cross in support ofrelief efforts in Alabama for communities impacted bytornadoes. In addition, local CVS/pharmacy locationsdistributed $130,000 in free water, ice and othersupplies to residents of those communities. And inTuscaloosa, which experienced some of the worsttornado damage, CVS/pharmacy brought in a mobilepharmacy trailer to help ensure that residents continuedto have access to their prescribed medications.We donated $75,000 to the American Red Crossfollowing Hurricane Irene in support of relief efforts forimpacted communities on the East Coast. In addition,CVS/pharmacy distributed over $30,000 in free water,Boston Red Sox Hitting Coach Dave Magadan works with Joey Shortsleeveson his swing at Fenway Park. Shortsleeves, of Biddeford, ME was one of 10players from the West Biddeford Little League Challenger Division team whoparticipated in a 2011 CVS Caremark All Kids Can Baseball Camp at the park.ice and other supplies to local residents in Manteo, NCand Margaretville, NY – two hard hit communities.Because the CVS/pharmacy in Margaretville sustainedcatastrophic water damage, the building had to be torndown. In order to ensure that the community continuedto have access to pharmacy services, CVS/pharmacymade daily prescription deliveries to Margaretvillefrom the next-closest CVS, which was approximately30 miles away. CVS/pharmacy also brought a mobilepharmacy trailer to West Lebanon, NH as a temporaryreplacement for another store that was closedindefinitely due to water damage.2011 Corporate Social Responsibility Report


46Sue Bruce Photography2011 CVS/pharmacy “Researching a Cure” campaign brought in more than $4.3 million for ALS research. The celebration took place at FenwayPark in Boston just prior to the Boston Red Sox versus New York Yankees game.Seen in the photo from left to right are: President and Chief Executive Officer of CVS Caremark, Larry Merlo; Executive Vice President of CVS Caremark,Jon Roberts; Former NFL Football Player, ALS patient and Celebrity Spokesperson of the CVS/pharmacy “Researching a Cure” campaign, Kevin Turner;President of ALS Therapy Alliance, Dr. Robert Brown; Directors of ALS Therapy Alliance, Dr. Merit Cudkowicz, Dr. Larry Hayward and Dr. Robert Horvitz;Regional Director of Real Estate for CVS Caremark, ALS patient and Co-chair of the CVS/pharmacy “Researching a Cure” campaign, Treg Charlton; ALSpatient and Co-chair of the CVS/pharmacy “Researching a Cure” campaign, Barry Winovich; and Boston Red Sox Ball Girl.CVS Caremark Corporate GivingProgramsWWFWe continue to grow our partnership with the WorldWildlife Fund (WWF). In 2011, the CVS/pharmacyphoto team partnered with WWF to celebrate their50th Anniversary as the exclusive sponsor of the“Life Grows On” photo contest, which launched onEarth Day 2011. The contest was aimed at raisingawareness of species and land conservation issuesand sought photos in three separate categories:wildlife, wild places and people connecting withnature. The winners in each category receiveda Polar Bear expedition in Churchill, Canada. Inaddition, CVS Photo created a customizablephoto collage poster for CVS/pharmacy customersincluding photos of endangered species taken byWWF field photographers. Five percent of saleswere donated to WWF with a minimum guarantee of$10,000 in 2011.USOWhile our community work is focused on servicesthat directly support children with disabilities andprovide access to health care for underservedpopulations, CVS Caremark has a strongcommitment to supporting those who work hardevery day to serve and protect us and our country.2011 Corporate Social Responsibility Report


Over the years, we have provided charitable supportto military and veteran-focused organizations,including the Air National Guard, Fisher Houseand Operation Military Embrace. Most recently, welaunched a partnership with the United ServiceOrganizations (USO) and worked with them onseveral initiatives to support our troops in 2011. TheUSO is a nonprofit, congressionally chartered privateorganization with a mission to lift the spirits ofAmerica’s troops and their families through its manyprograms and services.St. Jude Thanks and Giving CampaignFunds raised by CVS/pharmacy colleagues andcustomers through our annual in-store fundraisersupported St. Jude Children’s Research Hospitaland contributed $6 million to the Thanks and Givingcampaign, now in its eighth year. The campaignsupports the CVS Caremark Rehabilitation ServicesCenter at St. Jude Children’s Research Hospital,where children with deadly diseases, like cancer, workto overcome developmental, cognitive or physicalimpairments that result from their illnesses.We partnered with Operation USO Care Packagefor two service projects where our colleagues cametogether to create care packages of CVS Brandproducts for troops stationed in Afghanistan andother areas abroad. Through both events,colleagues made about 13,000 care packages andCVS/pharmacy donated more than $210,000 worthof personal care items and snacks. In addition, tomark Veteran’s Day, and in honor of our militaryheroes, CVS/pharmacy donated $3 to the USOfor every flu shot given at CVS/pharmacy andMinuteClinic during that week, which resulted in a$50,000 contribution.ALS Therapy AllianceSince 2002, our CVS/pharmacy customers andcolleagues have participated in our annual in-storefundraiser benefiting the ALS Therapy Alliance. Thisconsortium of scientists and researchers is workingon a cure for amyotrophic lateral sclerosis (ALS),a nervous-system disorder that affects 25,000Americans. There is no known cause or cure for ALS,which brings about a progressive degeneration ofmotor nerves in the brain and spinal cord, leadingto paralysis and death, typically within three to fiveyears of diagnosis.In 2011, the 10th annual CVS/pharmacy in-storefundraising campaign, “Researching a Cure,”provided $4.3 million to boost ALS research. Themost recent fundraising efforts – which includedcelebrity support from former New England Patriotand Philadelphia Eagle Kevin Turner and Grammynominatedcountry music star Ty Herndon – broughtthe total amount raised by CVS/pharmacy colleaguesand customers for ALS research to more than $27million over the campaign’s 10 year history.In the world of health care, St. Jude Children’sResearch Hospital is unlike any other pediatrictreatment and research facility. Our partnership withSt. Jude, dating back to 2004, has included thedevelopment of the CVS Caremark RehabilitationServices Center, which opened its doors in 2009.This facility plays a critical role in helping St. Judeprovide care that enhances children’s quality of lifeduring treatment for catastrophic diseases, providingmore than 8,000 visits each year and extendingthe hospital’s ability to care for children during andbeyond their treatment.VolunteerismIn 2011, we worked to provide additional resourcesand opportunities for our colleagues to help theircommunities and launched the new CVS CaremarkCommunity Crew volunteer and employee giving portal,making it easier to track individual and team communityimpact and allowing colleagues to enroll in payrolldeduction to support nonprofit partners.Similar in concept to Facebook or Linkedin, this internalsocial media platform allows colleagues to create aprofile, search for and track volunteer activities, enrollin payroll deduction and connect with colleagues tocreate group events. As a result, we saw an increase incolleague community engagement and support in 2011,with thousands of CVS Caremark employees donatingmore than $1.2 million worth of hours toward a long listof volunteer initiatives.Employee Relief FundThe spirit of caring established by the companyexternally is also represented internally through thelaunch of the CVS Caremark Employee Relief Fund(ERF). Established with an initial donation from472011 Corporate Social Responsibility Report


48In 2011, the CVS Caremark Charity Classic generated nearly $1.2million for local charities, including Save the Bay.CVS Caremark of $400,000, the ERF is also fundedthrough employee payroll contributions. Colleaguesbegan supporting the ERF during the company’s 2011Annual Giving Campaign and to date, nearly 1,300employees have supported the fund.The ERF provides short-term, immediate financial reliefto employees who have suffered significant hardshipas a result of a natural disaster, family death, medicalemergency or other unforeseen event.Charitable EventsTo raise awareness and funds for nonprofit organizationssupporting children, families, education andwellness in our home region of New England, we alsosponsor charitable events.CVS Caremark Charity ClassicThe CVS Caremark Charity Classic is Rhode Island’slargest charitable sporting event and hosts some of thebest PGA and LPGA professional golfers in the world.Funds generated by the tournament, launched in 1999,are distributed to area nonprofit organizations thatprovide vital funding to a range of programs servingchildren, families and people in transition throughoutSoutheastern New England.In 2011, the CVS Caremark Charity Classic generatednearly $1.2 million for local charities, bringing the totalfunds raised since its inception to more than $15 million.Funds raised by the 2011 event supported theimportant missions of a range of charities, in turn,touching the lives of people of all ages, backgroundsand abilities. The Charity Classic provided significantfunding to target critical needs within the communityfrom helping the Good Neighbor Energy Fund, whichprovides energy assistance to Rhode Islanders whoare unable to pay their energy bills and do not qualifyfor federal or state funds; to assisting the AutismProject of Rhode Island with programs that improvethe education and lives of individuals with autism; tosupporting the San Miguel School in Providence inoffering a quality education to boys from challengingcircumstances.A total of 64 nonprofit organizations received fundsraised through the CVS Caremark Charity Classicin 2011.CVS Caremark Downtown 5KCVS Caremark’s annual Downtown 5K raised $75,000for charity in 2011. Funds awarded to youth-focusednonprofit organizations and schools from SouthernNew England during CVS Caremark’s 12-year sponsorshipof the race reached $1.3 million.To further promote health care and to emphasizethe importance of physical activity for children, CVSCaremark Downtown 5K also awarded $500 grantsto 10 schools that won random drawings. Elementary,middle and high school teams with 25 or more childrenwho participated in the 2011 CVS Caremark YouthRaces or High School Inspirational 3K qualified for thedrawings, which were earmarked to assist physicaleducation programs.In 2011, we partnered with EARTHTEC, a companythat develops sustainable lifestyle apparel fromrecycled materials. Through their EARTH360 program,they offer recycling services, collect recyclable itemsand then turn them into apparel. Following the CVSCaremark Downtown 5K, EARTHTEC collected roughly12,000 empty plastic CVS Big Chill water bottles thatwill ultimately be turned into about 3,000 recycledt-shirts using about four bottles per shirt. The plasticis shredded, washed, melted down, turned into thread,then fabric, then apparel and accessories.2011 Corporate Social Responsibility Report


2011 Corporate Social Responsibility Report49


502010 Corporate Responsibility Report


INNOVATING FORA HEALTHIER ENVIRONMENT51CVS Caremark believes that helping people on their path to better health also means doing our part to innovatefor a healthier environment, a commitment that permeates every aspect of our business. We continually assessour operational footprint and invest in sustainable solutions to address our impacts, which includes progressingtoward our carbon reduction goal; advancing our Environmental Management Program; identifying areas tofurther conserve natural resources; engaging colleagues, customers and other stakeholders in our efforts;and incorporating best practices we have learned along our sustainability journey. Our Environmental Policyand Climate Change Policy Statements guide our environmental strategy. In 2011, our efforts focused onimplementing and operationalizing these policies and expanding our initiatives.Environmental Policy StatementThe link between human health and the health ofour planet is becoming increasingly apparent. Asa company dedicated to improving people’s livesthrough innovative and high-quality health andpharmacy services, we are committed to: operatingin a manner that meets or exceeds applicableenvironmental regulations; reducing our environmentaland climate-related impacts; and contributing to thelong-term sustainability of our business.CVS Caremark’s enterprise-wide environmentalstrategy, goals and quantifiable targets are establishedand overseen by senior-level corporate executivesand, as appropriate, reviewed by the company’s CEOfor approval. The process for developing our strategy,goals and targets involves engagement with colleaguesfrom across the enterprise, including our ExecutiveEnvironmental Management Council, SustainabilityLeadership Council, internal Energy TechnologyAssessment Committee — which launched in 2011 —and third-party environmental experts. In 2011, webegan initial conversations with CERES to learn fromits expertise as a leading champion of sustainablebusiness practices and solutions.We believe ongoing measurement, assessmentand transparency of our initiatives are essentialcomponents of our environmental commitment andwill lead to improved performance over time. Ourapproach to disclosure includes issuing an annualCorporate Social Responsibility Report, which isdeveloped using the Global Reporting Initiative (GRI)Framework, and participating in other initiatives, suchas the Carbon Disclosure Project (CDP) and the CDPWater Disclosure Project.2011 Corporate Social Responsibility Report


52Our environmental strategy, goals and targets arefocused in these areas:• Addressing our enterprise-wide, climate-relatedimpacts through reductions in greenhouse gasemissions• Building robust compliance programs to meetregulatory requirements applicable to our businessoperations• Conserving natural resources by seeking reductionsin energy use, water use and solid waste• Encouraging more recycling throughout ourenterprise and the use of recycled materials in theproducts we purchase and sell• Minimizing the use of raw materials in our productsand packaging• Seeking feasible alternatives for materials of concernin the development of our products• Employing LEED and Energy Star standards in theconstruction of our facilitiesTo achieve our goals and meet our targets, wecollaborate with various internal and externalstakeholders. This may include:Employees Raising awareness of their opportunitiesto reduce their environmental impacts both at workand beyondCustomers Providing products that are better for theenvironment and offering ways for them to reduce theirimpacts when they shop with usSuppliers Collaborating to reduce the environmentalfootprint of the products we purchase and sellGovernment Monitoring environmental policy andlegislationEnvironmental groups Working with experts andseeking their counsel on environmental issues, goalsetting, measurement and innovative approaches toreducing our footprintClimate Change Policy StatementWe acknowledge that human action contributes toclimate change, and we are committed to fosteringa culture of environmental responsibility within ourcompany to reduce our greenhouse gas emissions andsubsequent impact on the environment. We have settargets for improving the energy and greenhouse gasefficiency of our operations.We will achieve these targets and contribute to thelong-term sustainability of our business through:• Routine monitoring and review of potential risks andopportunities related to environmental complianceas well as climate change (physical, regulatory,operational and financial)• Implementation of energy and greenhouse gasefficiency programs in our operations, including ourretail stores, pharmacies, offices, distribution centersand fleet vehicles2011 Corporate Social Responsibility Report


• Ongoing communication and engagement withinternal and external stakeholders regarding ourclimate-related performanceMeasuring and Reducing OurGreenhouse Gas EmissionsWe first reported our carbon footprint in 2008 andhave continued to monitor our emissions closelyin accordance with the Greenhouse Gas Protocol,published by the World Resources Institute and theWorld Business Council for Sustainable Development(WBCSD). In 2011, we continued our partnership witha third-party environmental consultancy to help usevaluate our measurement techniques and progresstoward our carbon reduction goal.Our stores account for the vast majority of our GHGemissions, so we measure carbon intensity persquare foot of retail space. This measurement helpsto normalize our emissions so we can more accuratelygauge the effectiveness of our GHG reductioninitiatives and set meaningful performance targets.Although we experienced a marginal increase of lessthan 1.3 percent in absolute emissions in 2011, dueto the growth of our retail footprint, our intensity persquare foot of retail space slightly decreased duringthis same time.What We MeasureThe boundary set for our carbon footprint evaluationis based on available data and industry standards, asdefined by the WBCSD. We included the energy usedin all CVS/pharmacy stores, distribution centers andcorporate offices, as well as emissions from businesstravel and product deliveries.Progress toward our Carbon Reduction GoalIn 2011, we continued our participation in theCarbon Disclosure Project (CDP) and made progresstoward our carbon intensity goal. Joining the CDPand setting a long-term goal provided a roadmap tohelp us drive environmental performance across thebusiness and engage leadership on sustainabilityissues. We have already seen the positive impactand return on investment of these operationalenhancements, including energy use reductionsacross our facilities. Moving forward, we will continueto report our progress annually through the CDP and inour CSR Reports.Environmental Management ProgramIn 2011, we initiated steps to establish a formalEnvironmental Management System, which we referto as our Environmental Management Program (EMP).The EMP is designed to provide the basic frameworkfor the company to responsibly manage environmentalobligations applicable to its operations. The EMP is53TOTAL CARBON FOOTPRINT AND CARBON INTENSITY MEASUREMENTYEARCO 2EQUIVALENTS(metric tonnes CO2e)CO 2EQUIVALENTSintensity per sq. footof retail spaceSQ. FEETof retail spaceYEAR TO YEAR CHANGE20091,786,000.026 metric tonnes67.8 millionRestatement of 2009 emissionsintensity to include refrigerants20101,778,000.026 metric tonnes69.7 millionIntensity remained flat2011 1,800,500.025 metric tonnes71.5 millionIntensity decreased slightlyOur Carbon Reduction Goal: Reduce our carbon intensity by 15% by 2018, based on 2010 figures2011 Corporate Social Responsibility Report


87%4% Refrigerantstonnes | CO 2tricityuct Deliveriesral Gasiness Travel87%87%TOTAL CARBON FOOTPRINT IN CO2 EQUIVALENT EMISSIONS,BY TYPE AND PER METRIC TONNESigerants201120111,800,500 tonnes | CO 2e1,800,500 tonnes | CO 2e87% 87% Electricity Electricity5% 5%Product DeliveriesDISTRIBUTIONCENTERSTORES543% Natural Gas3% Natural Gas2% Business Travel2% Business Travel3% Refrigerants3% Refrigerants87%deliveries(private fleet)87%store deliveries(private fleet)store deliveries(dedicated carrier)DISTRIBUTIONCENTEROFFICESSTORESREFRIGERANTSDISTRIBUTIONCENTERDISTRIBUTIONCENTERDISTRIBUTIONCENTERDISTRIBUTIONDISTRIBUTIONCENTERCENTERSTORESdeliveries(dedicated carrier)deliveriesSTORES(private fleet)STORESSTORESstore deliveries(private fleet)STORESstore deliveries(dedicated carrier)DISTRIBUTIONCENTERdeliveries(dedicated carrier)deliveries(dedicated carrier)corporate jetrental carcorporate jetdeliveries(private fleet)DISTRIBUTIONCENTERdeliveries(private fleet)deliveries(dedicated carrier)deliveries(dedicated carrier)corporate jetair travelOFFICEScorporate jetdeliveries(private fleet)OFFICESdeliveries(private fleet)deliveries(dedicated carrier)deliveriesdeliveries (private fleet)(private fleet)corporate jetSTORESCVS car fleetemployeecommutingrental carair travelCVS car fleetCVS car fleetcustomer transportationsupplier delivery supplier deliverycustomer product use deliverywaste at CVS& disposalfacilitiesemployeecommutingproduction of2011 rental Corporate cargoodsair travelSocial Responsibility ReportCVS car fleet customer transportationcustomer deliverysupplier deliveryair travelproduction ofgoodsproduct use& disposalproduct use& disposalREFRIGERANTSstore deliveries(dedicated carrier)deliveriesrental carDISTRIBUTIONREFRIGERANTSCVS car fleetREFRIGERANTSstore deliveriesCENTER(private fleet)STORESsupplier deliveryOFFICES(private fleet)product useOFFICES& disposaldeliveriesstore deliveriesstore deliveriesdeliveries (dedicated carrier)STORES (dedicated carrier)(dedicated carrier)(dedicated carrier)store deliveriesstore deliveriesREFRIGERANTSwaste at CVScorporate(private fleet)(private jet fleet)facilitiesOFFICESemployeecommutingproduction ofgoodsair travelcustomer transportationdeliveriesREFRIGERANTS REFRIGERANTScustomer delivery(dedicated carrier)store deliveriesCVSstore OFFICESCAREMARK(dedicated carrier)deliveriesstore deliveries (dedicated carrier)(private fleet)(private fleet)CARBON FOOTPRINT store deliveriesrental car(private fleet)waste at CVScorporate jetCVS car fleetBOUNDARYsupplier delivery wastecorporate jetfacilitiesat CVSREFRIGERANTS employeefacilities product useemployeecommutingproduction of& disposalOFFICEScommutingproductiongoodsofair travelcustomer transportationgoodsair traveldeliveries Natural GasREFRIGERANTS customerstore deliveriescustomertransportationdelivery(dedicated carrier)customer deliveryOFFICES Electricity(dedicated carrier)store deliveries(private fleet)rental carrental carCVS car fleetCVS car fleetsupplier deliverysupplier deliveryproduct useproduct& disposaluse& disposalREFRIGERANTScorporate jetemployeewaste at commutingCVScorporate jetfacilitiesemployeeair travelcommutingwaste at production CVS of waste at CVSgoodscustomer transportationfacilitiesfacilitiesair travelemployeeemployee customer transportationcustomer deliverycustomer deliverycommutingcommutingproduction ofproduction ofgoodsgoodsair travelcustomer transportation customer transportationrental carcustomer CVS deliverycar fleet customer deliveryrental carsupplier deliveryproduct usewaste at CVS& disposalsupplier facilities deliveryOFFICESstore deliveriesstore (private deliveries fleet)(private fleet)employeecommutingstore deliveries customer transportationstore (dedicated deliveriescustomer carrier) delivery(dedicated carrier)production ofgoodswaste at CVSfacilitiesproduction ofgoodsproduct use& disposal


founded on the principles of ISO 14001 and UnitedState Environmental Protection Agency (USEPA)compliance-focused environmental managementsystem guidance. The EMP approach is designed toreduce environmental risk due to non-compliance, andprovide a systemic method for continuous improvement.The EMP documents how we identify environmentalobligations, assess risk, monitor and track newand emerging requirements, and build complianceprograms. In 2012, we will continue to build outelements of the EMP including the plan to have acollaboration site as a way to connect people with thecontent of the EMP.Under the EMP, we will systematically reviewcompliance obligations across all business units.The intent is to leverage existing processes todevelop compliance programs that are scalable andsustainable across the enterprise. One example of aprogram enhanced in 2011 is our Hazardous WasteManagement Program.Federal and state environmental regulations require theresponsible management of non-saleable consumerproducts. Some of these products when disposedof are considered hazardous waste requiring properdisposal. In 2011, we enhanced our Hazardous WasteManagement Program in multiple ways to bettermanage this environmental obligation. We leveragedexisting processes and technology to integrate theprogram into daily operations. For instance, storecolleagues routinely use a radio frequency (RF) unit toprocess consumer products. The software to this handhelddevice was upgraded to include logic that ensuresproper disposition of consumer products that areconsidered hazardous waste when no longer useablefor their intended purpose. The RF Unit provides simple,easy-to-implement steps that help assure a sustainableprocess for managing disposal of unwanted consumerproducts at our retail locations.In addition, we have revised training received bycolleagues in our retail stores. Training is now based onlevel of responsibility in handling hazardous wastes. Thistraining ranges from basic awareness level training fornew store colleagues to specialized training for photolab and pharmacy colleagues.Throughout 2012 we will continue to engage businessunits in the review of operation-specific regulatoryrequirements as we manage our environmentalobligations and protect the environment.Agency NotificationsConsistent with regulatory release reporting requirementsunder CERCLA, we reported the release of hazardoussubstances to the appropriate regulatory authorities. Thisreporting requirement was triggered by catastrophicwater damage due to Hurricane Irene sustained at aCVS/pharmacy in Margaretville, NY. Emergency responsecontractors were brought in to provide clean up services.Because the building was so severely damaged, it wassubsequently demolished. A report of clean-up activitieswas submitted as required.Using Resources WiselyContinuous improvement in the area of resourceefficiency is a priority for CVS Caremark. Storeoperations, transportation and distribution centersare the largest contributors to our energy use, and asa result, many of our environmental efforts focus onreducing the impacts related to retail and distributionoperations. We also know that water is a precious andfinite resource and take steps to monitor and reduceour overall consumption.Advancing Energy EfficiencyIn 2011, 87 percent of our carbon emissions camefrom electricity use, our primary energy source. Inorder to reduce our carbon footprint, we have beenprimarily focused on incorporating the energy-savingtechnologies we’ve adopted for new store constructioninto our existing stores and distribution centersand enhancing our transportation and distributionprocesses. Our newly established Energy TechnologyAssessment Committee works to identify and assessareas across our operations to gain further efficiencies.We also continue to explore the use of alternativeenergy solutions in certain regions, such as in Hawaii,although the feasibility of larger scale implementationthroughout our enterprise remains uncertain. Specificinitiatives we focused on in 2011 include:• Advancing our energy management systems• Expanding our lighting retrofit program across storesand distribution centers552011 Corporate Social Responsibility Report


56• Upgrading to energy-efficient HVAC systems in newand relocated stores• Investing in more efficient refrigeration units in newand relocated stores• Optimizing our transportation routes and systems toreduce fuel use• Working with vendors to share best practices, leadingto more efficient use of resourcesExpanding our Energy Management SystemIn 2011, we expanded our energy management systemto more than 5,000 stores with systems that are nowcontrolled via phone modem. The energy managementsystem is run from a centralized location that allowsus to monitor energy use and automatically adjustlighting, temperature, HVAC and other systems soenergy is only used when needed. We are migratingstore connectivity to a network interface and have agoal of connecting more than 3,500 locations by theend of 2012.Energy Technology Assessment Committee:Evaluating Sustainable SolutionsIn 2011, we established an Energy TechnologyAssessment Committee (ETAC), an internal, crossfunctionalteam charged with monitoring emergingtechnologies and trends in the area of energy efficiency.ETAC evaluates opportunities for CVS Caremark topilot these technologies in our facilities, and some ofthe recommendations are already being implemented.For example, in 2011 we replaced our irrigation systemspecifications at select stores, helping to reduceirrigation water use by 20 percent annually, and ETAChelped advance LED lighting projects in stores anddistribution centers.Engaging with VendorsIn 2011, CVS Caremark hosted a three-day eventat our Lumberton, New Jersey distribution centerto raise awareness about energy efficiency. Ourlogistics engineers and other employees in ourdistribution center worked with vendors during theevent, which was facilitated by General Electric (GE),to identify energy saving opportunities during specificphases of operation: while the facility was open andfunctioning, when it was closed and during start-up.Several opportunities were identified and immediatelyimplemented across our network of distribution centersand others will result in pilot projects in 2012.TOTAL ENERGY USAGE, BY TYPE, FOR 2009-2011YEARELECTRICITYNATURALGASPROPANEAND OILFUELCONSUMPTION20092.8 million MWh 1 9.8 milliontherms 2n/a10.8 milliongallons 420102.8 million MWh 1 10 milliontherms 2760,000therms 39.8 milliongallons 42011 2.9 million MWh 1 10.1 milliontherms 2580,000therms 310.1 milliongallons 41 Data represents total electricity consumption (in megawatt hours) at CVS distribution centers, stores and administrative locations.2 Data represents total natural gas consumption at CVS distribution centers, stores and administrative locations. Totals exclude oil and propane usage atexclusively Caremark facilities and facilities with landlord paid utilities.3 Data represents total propane and oil usage at CVS distribution centers, stores and administrative locations. Propane and oil usage was not reported in2009 and is not included. Totals exclude oil and propane usage at exclusively Caremark facilities and facilities with landlord paid utilities.4 Data represents total fuel consumption for deliveries, car fleet, employee travel, company-owned cars and air fleet.2011 Corporate Social Responsibility Report


57Built using local recycled and repurposed materials, the CVS/pharmacy distribution center in Chemung, NY is the largest LEED Goldcertifiedindustrial building in the state.Exploring Renewable and AlternativeEnergy SourcesWe have incorporated the use of some renewable andalternative energies within our operations. The use ofsolar power at several stores in Hawaii has been successful,and we are evaluating opportunities for futureuse of solar power at distribution centers in this regionand in other parts of the country.In 2011, we completed the installation of hydrogenrefueling infrastructure at our Chemung, NY distributioncenter, which is expected to reduce electric consumptionat that facility by five percent. One byproduct ofhydrogen fuel cells is pure water. Our Chemung distributioncenter discovered a way to repurpose the water foruse in cleaning processes, rather than discharging it.Incorporating LEED Standards into our FacilitiesOur design and construction teams incorporate LEEDstandards when building new stores and facilities.To monitor emerging trends in this area, our teamparticipates in the U.S. Green Building Council (USGBC)LEED training programs and is represented on theRhode Island Green Building Committee. Additionally,our internal Energy Technology Assessment Committeeevaluates energy-efficient technologies to incorporateinto new building construction and seeks ways to retrofitexisting facilities.In 2011, we achieved LEED Gold certification for ourdistribution center in Chemung, NY, and a new FinanceSupport Center in Rhode Island.Chemung Distribution CenterOur distribution center in Chemung, NY, is the largestLEED Gold-certified industrial building in the state andamong the 10 largest industrial buildings in the countryto receive the LEED Gold standard. Built using local,recycled and repurposed materials, the facility’s sustainabledesign elements include: an energy-efficient,white PVS insulated roof; interior lighting with daylightsensors and timers; a rainwater harvest system for irrigation;and high-efficiency, low-flow plumbing fixtures.The distribution center opened in June 2011 and supports350 CVS/pharmacy stores in the northeast andemploys more than 500 people.Transporting Products ResponsiblyThe transportation of our products from our distributioncenters to our stores accounts for the second largestcontributor to our carbon footprint. To reduce transportation-relatedemissions and save on fuel, we havecontinued to advance earlier initiatives and implementnew measures, such as:• Maintaining a fleet of modern, fuel-efficient vehicles• Maintaining fuel-efficient speeds on our truck fleetby setting governors at 63 mph – a speed optimized2011 Corporate Social Responsibility Report


58Improving LightingIn 2011, we continued to install efficient lightingprojects, retrofitting facilities across the enterprise andincorporating energy-saving technologies used in newstore construction. More than 680 retail stores, as wellas our headquarters campus, were retrofitted during theyear, resulting in a $5 millon savings in energy costs.We upgraded coolers, exterior signage, drive-throughwindows and entryway canopies with LED lighting,and our Energy Technology Assessment Committee isevaluating opportunities to install additional exterior LEDretrofits, such as those in our store parking lots. In 2012,we plan to upgrade lighting in 1,500 additional stores, andwe are developing a comprehensive long-term plan forimproved lighting efficiency in more than 7,300 stores.Several of our distribution centers also received lightingupgrades in 2011. We successfully piloted exteriorLED lighting in our facility in North Smithfield, RhodeIsland and implemented a full installation in Kapolei,Hawaii, which uses one-third of the electricity requiredby lights typically used, and also reduces light pollutionfor neighbors who live near our distribution centers.We also began a pilot of interior LED lighting at our twoRhode Island distribution centers in Woonsocket andNorth Smithfield.Moving forward, we are evaluating the integration ofLED lighting into the design and construction of our LaHabra, CA, bulk facility. We have begun the process ofupgrading the lighting at our Indianapolis distributioncenter with fluorescent lights.KWH Reductions Per YearWe are realizing energy savings as a result of thelighting upgrades that were implemented in someof our distribution centers in 2010. For instance,electrical consumption was reduced across four of ourdistribution centers in 2011, compared to 2010 usage.Although our overall usage of electricity among all ofour distribution centers went up, due to the additionof new distribution centers in New York and Hawaii,electricity density in our distribution centers decreasedby 3.9 percent.KWH REDUCTIONS PER YEARReductions in Electricity Use Realized from Lighting Upgrades at Four Major Distribution Centers (2011 vs 2010):Knoxville/Loudon, TN; North Augusta, SC; Fredericksburg, VA and Phoenix, AZDistribution Center Location KWH Output 2010 2011100000008000000-12.6%-7%600000040000002000000-16.4%-11.1%0Fredricksburg, VA Knoxville/Loudon, TN North Augusta, SCPhoenix, AZ2011 Corporate Social Responsibility Report


for fuel efficiency – and reducing governors to 55mph in California• Installing aerodynamic skirts to truck trailers inCalifornia to evaluate the efficiencies of expandingthe skirts to our entire fleet• Utilizing new trailers with electric backup motors toreduce reliance on diesel-powered cooling units• Enforcing a no-idling policy by reviewing OnBoardComputer performance reports• Optimizing delivery routes and schedules with fuelefficiency in mind• Optimizing cube space of our trucks to limitunnecessary deliveries• Promoting fleet safety through driver awarenessinitiativesOur trucks drive thousands of miles every week betweendistribution centers and stores, so continually optimizingour cube and routing efficiencies plays a significant rolein reducing our carbon footprint. In 2011, the averagemiles per gallon of our fleet improved to 6.53, up from6.46 in 2010 and 6.37 in 2009, while also saving 25,148gallons of gas. These optimization efforts helped reduceour CO 2emissions by 260 tons.Our fleet has been an Environmental ProtectionAgency’s Smartway Carrier Partner since 2010, and in2012, we plan to complete the process of becominga Smartway Shipping Partner.Award for Sustainable Transportation PracticesCVS Caremark was recognized by the 2011 Supply ChainLogistics Summit for best practices in route optimization.Our best practices included implementing a processimprovement and technology integration program acrossour entire distribution network, which reduced inboundtransit times and associated costs, while improvingdelivery performance, productivity and customer service.Ensuring Fleet SafetyWe take fleet safety seriously at CVS Caremark, giventhe many miles our drivers travel every day. Ourdistribution centers host regular road safety trainingsand simulations and offer driver incentives includingannual safety bonuses and our Driver of the Year award.We have also received numerous industry awards forour legacy of advancements in fleet safety. In 2011, wewere awarded first place by the National Private TruckCouncil for Local Truck Safety.TRANSPORTATION EFFICIENCIESACHIEVED IN 2011 THROUGH CUBEAND ROUTING OPTIMIZATIONImproved MPGfrom 6.46 to 6.53Eliminated7,991 routesSaved 25,148gallons of gasReducedCO 2 emissionsby 260 tonsReducing our Water UseAlthough CVS Caremark is a relatively small user ofwater, we believe conserving water – our most preciousresource – is an issue everyone has a responsibilityto address.In 2011, we established a baseline for our water useand reported our water footprint through the CarbonDisclosure Project water questionnaire for the firsttime. Water usage, the vast majority of which wassupplied by U.S. municipal water systems, totaled7,200 megaliters in 2011, down from 7,350 megalitersin 2010. This reduction is primarily due to landscapingefficiencies at our corporate facilities and retaillocations, with resulting cost savings.592011 Corporate Social Responsibility Report


WATER USE INTENSITY MEASUREMENT BASED ON PER SQUAREFOOT OF RETAIL SPACE, FOR 2010-2011YEARTOTAL WATERUSAGE (ML)SQ. FT. OFRETAIL SPACENORMALIZED WATER USAGE(PER SQ. FT. OF RETAIL SPACE)2010 7,350 ML 69.7 million.000105 ML2011 7,200 ML 71.5 million.000101 ML60CVS CAREMARK WATER MANAGEMENT STRATEGYTo drive efficiencies and reduce water usage, we aim to:Continuously measureand monitor our wateruse and savingsEstablish water guidelines aroundthe development of new propertieswith appropriate landscapingImplement water reduction initiatives into LEED and non-LEED buildingsOur biggest source of water usage continues to beour irrigation systems, which accounted for 23 percentof our total water cost. Although many communitieswhere we have operations require us to irrigate, westrive to reduce the associated impacts and implementlandscaping efficiencies, where possible. In 2011, ourwater usage from these systems was 157,284 kilogallons,a 14 percent decrease from 182,001 kilogallons in2010, which was a reduction of almost 26 percent fromour 2009 usage of 244,518 kilogallons. In 2012, we willcontinue to monitor and conserve our water use andplan to continue reporting water footprint data throughthe CDP water questionnaire.Reducing Waste andImproving RecyclingAt CVS Caremark, we use various measures to reduceour waste, repurpose materials and recycle throughoutour operations and along our supply chain.Recycling InitiativesIn 2011, we continued to improve our company-widerecycling initiatives in our distribution centers,stores and corporate offices, focusing our efforts onthe following:• Recycling cardboard packaging, corrugate plasticand pallets at every distribution center• Expanding our in-store recycling initiatives, includinga plastic bag recycling program in more than 3,000locations and expanding plastic bottle recycling tomore than 2,000 stores• Piloting a recycling program for employee breakrooms in 200 stores across the country• Engaging with waste haulers to identify single-sourcerecycling• Using multiple bailers in each distribution center tocompress corrugate• Putting recycling bins in all workspaces and conferencerooms2011 Corporate Social Responsibility Report


• Ensuring paper and plastic materials are collectedand recycled in our onsite cafeterias• Recycling stretch wrap film at various facilitiesThese efforts resulted in 182 tons of plastic stretchfilm being recycled throughout our stores anddistribution centers in 2011, an increase from 178tons in 2010. Although total volume of cardboardrecycling actually decreased in 2011 to 44,000 tons,compared to 45,000 tons in 2010, this was primarilydue to the packaging improvements made byvendors that used less cardboard material.In 2012, we plan to identify ways to realign ourentire waste process and are currently engagingwith waste haulers to better understand andimprove our waste stream.Promoting Sustainable PackagingWe continually seek opportunities to adopt moresustainable packaging and work directly with ourvendors and suppliers to reduce packaging materials.Through packaging and sustainability summits,awareness initiatives and one-on-one meetings withour vendors, we share preferred sustainable packagingstyles to influence the packaging of the productswe carry. For instance, we recommend that oursuppliers minimize or eliminate the inner packagingfor the products they deliver to us, and we encouragesuppliers to use recycled materials in their packagingwhenever possible.Through collaboration with our vendors and suppliersin 2011, we worked to reduce the packaging andassociated waste of 79 products sold in our stores.Included were several over-the-counter products thatreduced or eliminated inner packaging, equating tomore than 8 million units shipped to us in 2011. Ourpackaging teams also held summit-style meetingswith product category managers to increase theirunderstanding of sustainable packaging advancements.Promoting Sustainable ProductsWe recognize that natural and environmentally friendlyproducts are growing in importance to our customers,and we are committed to expanding our range of offeringsto meet this demand. This includes natural beautyproducts that meet the European Union standards forreduced environmental risk and impact, including Avalon ®Natural Products, Yes to Carrots ® , Dr. Bronners andWeleda. These beauty brands have also signed the Compactfor Safe Cosmetics. For more on CVS/pharmacy’scommitment to safe cosmetics, see p. 17.Our own Earth Essentials ® product line offers naturaland environmentally preferred products that are madewith 100-percent recycled fibers and includes platesand bowls made entirely from natural and renewablesugarcane. We’ve recently added kitchen bags to ourline of sustainable products. Greenpeace awardedour Earth Essentials paper towels, toilet papers andnapkins its “Green Tree” stamp of approval in 2009, arecommendation that stands today.Engaging Others in Our EffortsEnsuring a sustainable future for our planet is acollaborative effort, and we engage the help of ourcolleagues, suppliers and customers to help addressour environmental impacts. We continually engagewith suppliers to help them reduce their impacts andsupport our consumers’ efforts to reduce their ownfootprints. Our Sustainability Leadership Council andLogistics Sustainability Committee drive initiativesthroughout our business operations and seek ways toengage employees to reduce their impacts.Helping Consumers Reduce and ReuseTo encourage our consumers to adopt eco-friendlybehaviors, we introduced “GreenBagTag,” a reusablebag program, which enables our customers to reducetheir environmental impacts and earn ExtraBucks ®Rewards at the same time. Once consumerspurchase the GreenBagTag for 99-cents online or atCVS/pharmacy stores, they earn ExtraBucks Rewardseach time they decline a plastic bag or use a reusableshopping bag. Since the program was launchedin 2009, 2.1 million customers have scanned aGreenBagTag a total of 61.2 million times, and we haveissued more than $14.4 million in Extrabucks rewards.In 2011, we also expanded our in-store recyclingprograms for plastic bags and bottles and piloted anin-store recycling program for enhanced consumerconvenience at more than 200 retail locations acrossthe U.S.612011 Corporate Social Responsibility Report


62An employee at CVS Caremark headquarters refills her water bottle at a water station, which features an indicator that reads: “Helpedeliminate waste from 16,822 disposable plastic bottles.” And counting.Engaging EmployeesResearch shows engaging employees aroundsustainability issues can be a driver of employeesatisfaction and deepen their connections to thecompany. Employees can also be a source of innovationwhen it comes to identifying efficiencies and sustainabilitymeasures. In 2011, we saw this to be true, as colleaguesacross our business operations – from our stores, todistribution centers, to the boardroom – helped driveinitiatives to reduce our footprint. From employee trainingsessions, publications about our sustainability events andpresentations to leadership, our employee sustainabilitygroups showed the growing importance of sustainabilityat every level within our organization.Executive Environmental Management CouncilThe Executive Environmental Management Council(EEMC), established in 2011, is a group of seniorlevelcorporate executives representing all businessunits of CVS Caremark. The role of the EEMCis to direct the overarching strategy, policy andimplementation of the Environmental ManagementProgram (EMP). This Council advises the CEO on theoverall performance of the EMP.Sustainability Leadership CouncilThe Sustainability Leadership Council, formerly theEnvironmental Leadership Council, oversees ourenterprise-wide environmental strategy and goals. In2011, the Council focused on revising our GHG goalsand reviewing current and prospective initiatives.Moving forward, the Council will seek ways to increaseemployee engagement in sustainability initiativesacross the business and to increase our engagementwith current and potential suppliers to ensure theyunderstand our commitment to sustainability.Sustainability CommitteeIntroduced in 2011, the Sustainability Committeeis a cross-functional team that drives sustainabilityinitiatives throughout the CVS/pharmacy Logisticsteam. Current initiatives include, evaluatingappropriate performance indicators and metrics,installing exterior LED lighting and generating stormwater pollution plans.2011 Corporate Social Responsibility Report


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64CORPORATE INTEGRITY,INFORMATION GOVERNANCEAND BUSINESS PRACTICESCVS Caremark is committed to following the highest ethical standards and complying with all applicablelaws and regulations in the conduct of its business. This commitment extends to everyone within theorganization and to all interactions with customers, plan members, clients, physicians, vendors and allother business associates. This commitment is supported by a work environment that promotes integrityand accountability and we have processes in place to help prevent, detect and resolve instances ofpotential unethical behavior and noncompliance.Compliance and Integrity ProgramCVS Caremark’s Compliance and IntegrityProgram provides a framework for fostering aculture of compliance throughout the company.Key components of the Program include a Codeof Conduct, policies and procedures, educationand training; a mechanism for employees to reportpotential unethical behavior or non-compliance; arequirement that employees cooperate in complianceinvestigations; monitoring and auditing; periodic riskassessments to help identify key legal and regulatoryrisks and changes; incentive structures, remedialmeasures and discipline procedures that promotecompliance; maintaining required compliance andfraud, waste and abuse programs applicable to ourMedicare Part D business; a process to implementbusiness changes necessitated by new laws andregulations; appropriate employee backgroundchecks and exclusion list screening; and a leadershipteam that fosters a positive and ethical culture ofopen communications.Our Chief Compliance Officer is responsible for theoversight and implementation of the CVS CaremarkCompliance and Integrity Program, including thecomponents applicable to our Medicare Part Dbusiness. The Chief Compliance Officer reportsto the Audit Committee of the Board of Directorsand to the company’s Chief Executive Officer. Aspart of the administration of the Program, the ChiefCompliance Officer chairs the Corporate ComplianceCommittee, a cross-functional group comprised ofcompany legal and business leaders who provideexpertise, coordination and oversight to assist theChief Compliance Officer.2011 Corporate Social Responsibility Report


65Code of ConductThe CVS Caremark Code of Conduct sets forth thecompany’s expectation of legal and ethical behavior ofall employees. The Chief Compliance Officer leads thedevelopment of and periodic updates to the Code ofConduct and the Code itself is approved by the Boardof Directors. The Code of Conduct is communicatedto all employees and is externally available via theCVS Caremark website. The company’s corporatepolicies and procedures are an additional source ofguidance to employees.Compliance Education and TrainingThrough the CVS Caremark Integrity Training Program,the company underscores its commitment to highethical standards and to practices that comply withapplicable laws, regulations and company policies. TheIntegrity Training Program is designed to be currentand relevant to the business as well as to addressthe evolving and complex health care and regulatoryenvironment. Training content, which is reviewed andapproved by the Compliance Office, is designed toraise employee awareness of current policies throughthe presentation of real-life work situations that theymay encounter that pose ethical dilemmas or mayviolate aspects of the CVS Caremark Code of Conduct.The company’s policy is to provide all new full-time orpart-time employees with appropriate integrity training.New employees also must certify that they have readthe Code of Conduct and completed the training. Asof March 2012, more than 99 percent of employeeshad completed online training on the Code of Conduct,which includes topics related to compliance andintegrity, privacy and security, professional conductand corruption, among others. Ongoing compliancetraining requirements are based on employee jobfunction and responsibilities, and existing governmentmandates.Auditing, Monitoring and Risk AssessmentThe company assesses and monitors broad areasof compliance risk across the organization andmaintains a compliance auditing and monitoringprogram to help detect non-adherence to theCode of Conduct and the company’s policies andprocedures. In addition, the Chief ComplianceOfficer, in coordination with the Legal Department,conducts periodic assessments to help identify riskand develop a Compliance Audit Work Plan that isapproved by the Audit Committee of the Board ofDirectors.Ethics HotlineCVS Caremark maintains a toll-free Ethics Line 24hours a day, seven days a week and 365 days ayear to receive communications from its employees,vendors and other third parties in connection withalleged unethical or illegal behavior. As an alternativeto calling, parties may contact the Ethics Line via mail,email or fax. All communications to the Ethics Line byemployees are handled as confidentially as possible.Moreover, the company has a strict non-retaliationpolicy that protects employees who make good faithreports to the Ethics Line. Aggregate data is reportedto the Chief Compliance Officer and an annual report ismade to the Audit Committee of the Board of Directors.2011 Corporate Social Responsibility Report


66Any employee of CVS Caremark also has the abilityto raise a compliance issue and seek guidanceregarding a potential legal or ethical violation directlyfrom the Chief Compliance Officer and from membersof management, Human Resources and the LegalDepartment.The Compliance Office is responsible for logging,triaging, following up and tracking reported potentialcompliance violations to conclusion. This includescoordinating or conducting the actual investigation,documenting the results of the investigation andassociated discipline, if any. The Compliance Office isalso responsible for ensuring that appropriate remedialactions are taken.including the health and personal information ofour customers, plan members and employees,a top priority. To provide for these protectionsand safeguards, the CVS Caremark Chief PrivacyOfficer provides leadership for the company’sInformation Governance Framework that implementsour corporate strategy across all business unitsand operations and that includes all activitiesrelated to the development and implementation ofCVS Caremark’s privacy and information securityprograms. The company’s Information GovernanceFramework helps identify potential risks relevantto privacy and information security and assistsin putting in place appropriate protections andsafeguards to address those identified risks.Response and PreventionUpon receiving a report of an alleged violation of CVSCaremark’s Code of Conduct and/or policies andprocedures, the Compliance Office directs a thoroughinvestigation and may request, as appropriate, a reviewof the alleged violation by legal counsel.After an investigation has been completed, theCompliance Office, in coordination with the LegalDepartment, determines whether credible evidenceexists of a violation of applicable federal or state laws,regulations or any provision of CVS Caremark’s Codeof Conduct and/or policies and procedures. When aninvestigation confirms that misconduct has occurred,corrective actions are initiated promptly. Correctiveaction may include remedial action to address thespecific issue or help prevent similar issues in thefuture, disciplinary action and/or additional training.As appropriate, certain confirmed violations may bereported to outside agencies or authorities. In addition,the Chief Compliance Officer provides the AuditCommittee of the Board of Directors with a summaryof reports received highlighting significant violations oralleged significant violations of the Code of Conduct andapplicable policies and procedures.Information Security ProgramIn the past year, the company put in place newcomponents for its information security program. Toensure our practices provide appropriate protectionsand safeguards for personal information, the companydeveloped our Information Security Risk Assessmentprocess that identifies internal and external risks tothe security, confidentiality and integrity of personalinformation that could result in the unauthorizeddisclosure, misuse, loss, alteration, destruction,or other compromise of such information. On abiennial basis to supplement internal processes,an independent assessor reviews our practicesoperationalizing the information security program. Inaddition, on an annual basis, the company employs aQualified Security Assessor to review the sufficiencyof any safeguards in place with regard to cardholderdata under the Payment Card Industry Data SecurityStandard. Furthermore, the company maintains anenterprise level team overseen by the Chief PrivacyOfficer to control identified risks, to manage thecompany’s investment in a security infrastructure,and to improve continuously the information securityprogram, including enhancements for emerging cybersecurity issues.Information GovernanceCorporate FrameworkConsistent with the CVS Caremark Values of Integrityand Accountability, the company considers theprotection and safeguarding of personal information,Privacy ProgramIn addition to our information security program, aspart of our Information Governance Framework,the company maintains a privacy program tocontinuously improve our privacy practices. Keyto improving processes is driving awareness ofcolleagues of the importance of member and2011 Corporate Social Responsibility Report


patient privacy. CVS Caremark uses its training anddevelopment program to deliver appropriate periodictraining for all our colleagues, including a requirementthat core privacy training be completed within thirtydays of hiring. Furthermore, the Chief Privacy Officeroversees a full-time policy and investigations teamthat not only manages the review and response toany potential privacy incident, but, for any actualincident, uses a protocol that involves processing,tracking, reviewing, making improvements and, whenappropriate, retraining or developing a correctiveaction plan. The lessons learned are then incorporatedin the existing training to help our colleaguesunderstand better how to avoid future occurrences. Inaddition, the company conducts an annual assessmentof its retail facilities, using an independent assessorto review a statistically significant sample of stores, toensure implementation of necessary protections andsafeguards, including requirements under the HealthInsurance Portability and Accountability Act (HIPAA)for privacy and security.Vendor Assessment ProgramIn order to ensure appropriate safeguards andprotections for any confidential information, especiallyincluding any personal information, CVS Caremarkmaintains a Vendor Assessment Program under whicheach vendor/supplier who collects, uses, stores,shares, processes, transmits or destroys confidentialinformation on behalf of CVS Caremark must undergoan initial and recurring periodic assessment todetermine whether or not the vendor/supplier operatesin accordance with our Privacy and InformationSecurity Policies and Procedures.Governance OversightCVS Caremark’s various oversight committeeshave enhanced our privacy and information securityprograms by involving key senior leaders in thedecision making process to address identified risksand to implement appropriate protections andsafeguards. The policy-level committees, which arecross-functional, meet periodically and review andassess relevant information regarding our practicesto manage privacy and information security risk andmake recommendations to enhance our existingpractices that are then implemented throughoperational and information services groups.Working with Our SuppliersOur Commitment to Human RightsRespect for human rights is expressed in CVSCaremark’s Supplier Ethics Policy, which all vendorsaround the world must adhere to as a condition ofdoing business with the company. The policy conformswith the conventions of the International LabourOrganization (ILO) and prohibits human trafficking andthe use of child, forced or imprisoned labor; requiresthat working conditions are safe and fair; forbids anyform of discrimination with regard to age, gender,minority status and/or other protected classes; andupholds the right to freedom of organization. Wemonitor compliance with the Supplier Ethics Policythrough risk-based audits conducted by externalthird parties. Details of our Supplier Ethics Policy areoutlined below.The same principles that apply to suppliers are alsoreflected in our workplace policies and practices, andin the CVS Caremark Code of Conduct. We believeevery employee is entitled to a safe and healthywork environment that is free from discriminationand harassment, and where all employees havean equal opportunity to grow and develop theircareers and be appropriately compensated for theircontributions to the company’s success. In the UnitedStates, the company complies with local labor lawsregarding employment of youth. The minimum ageof employment at CVS Caremark is 16, or older insome instances. More information on our workplacepractices are contained in the employee section ofthis report, beginning on p. 22.Supplier Ethics PolicyCVS Caremark requires all suppliers to conduct businessin accordance with the CVS Caremark SupplierEthics Policy and other applicable legal and ethicalstandards. We seek suppliers that share our valuesas well as our promise to deliver outstanding service.CVS Caremark suppliers are required to adhere to ourcompany’s ethical standards, supplier requirements,and business processes, which are published onwww.cvssuppliers.com and communicated in our CVSCaremark Supplier Ethics Policy.672011 Corporate Social Responsibility Report


68As defined by this policy, suppliers must:• Adhere to standards that prohibit child labor, forcedor imprisoned labor and any form of human trafficking,and ensure a safe workplace for their workers• Pay workers a fair and legal wage and not withholdwages for coercive purposes• Not discriminate against their employees in hiringpractices or any other term or condition of employmenton the basis of age, gender, gender identity orexpression, marital status, sexual orientation, race,color, religion, national origin, veteran status, militarystatus, disability or any other characteristic protectedby federal, state or local law• Conduct business in accordance with established legaland ethical standards, including without limitationthe California Transparency in Supply Chains Act• Be compliant with all applicable anti-corruption laws,including the U.S. Foreign Corrupt Practices Act• Adhere to import requirements of United States Customsand Border Protection, and other United Statesgovernment or regulatory agenciesIn addition, CVS Caremark vendors/suppliers and theirrelated subcontractors and employees must not appearon the U.S. Department of Health and Human Servicesor the General Services Administration’s Lists of PartiesExcluded from Federal Programs.Our Code of Conduct also addresses the company’sstandard of ethics when interacting with suppliers.Employees with direct responsibility for import supplychain management have been trained on mitigatingrisks within the supply chain of products, includingrisks associated with human trafficking and slavery.Global Supplier AuditsAs a condition of doing business with CVS Caremark,all import suppliers and global supply chain partnersmust be in compliance with the CVS Caremark SupplierEthics Policy. In 2011, this policy was communicatedto all import suppliers at the time a purchaseorder was issued.To help ensure our import suppliers and globalsupply chain partners are in compliance with theCVS Caremark Supplier Ethics Policy and abide bysocial, legal and trade security standards, includingprohibitions against human trafficking and slavery,CVS Caremark launched an enhanced factory auditprogram in early 2012 called the Workplace ConditionsAssessment program. This program utilizes a thirdparty auditing firm to monitor supplier adherence andconduct audits of all factories outside of the UnitedStates from which we directly purchase imports. Asof April 5, 2012, all import suppliers and global supplychain partners must register for and schedule a factoryaudit within five days after receiving a purchase orderfrom CVS Caremark.Our social accountability standards are based onstandards set by the International Labour Organization,an agency of the United Nations that is responsiblefor overseeing international labor standards, and oursecurity standards reflect guidelines established by theCustoms-Trade Partnership Against Terrorism.Import suppliers are subject to audits that encompassgood manufacturing processes and social and environmentand security audits to help ensure we provide ourcustomers with safe, quality products that are producedin a socially responsible manner.Types of information and practices that may bereviewed, include:• Monitoring, Validation and Documentation• Management Systems• Child Labor• Forced or Compulsory Labor• Health & Safety• Right to Collective Bargaining• Non-discrimination• Disciplinary Practices• Harassment or Abuse• Compensation & Benefits• Hours of Work• Sub-contracting• Environmental• Home Work• Access Control• Procedural Security• Personnel Security• Education & Training• Container Security2011 Corporate Social Responsibility Report


Where supplier shortcomings are identified, we work withthe supplier to promptly rectify the problem to meet CVSCaremark’s compliance standards. For example, in 2011,there were two instances identified where suppliers didnot meet standards with respect to under age employees.In the first instance, the employee submitted false identification;in the second instance, the supplier did not followtheir own written policy during the hiring process. Bothhave been rectified to our satisfaction.Supplier Diversity ProgramWe are dedicated to developing procurementopportunities with a diverse community of suppliers.Our Supplier Diversity Program complements the CVSCaremark commitment to sound business practicesand social responsibility to the communities we serve,recognizes the critical role diverse-owned businesses playin our continued success and in providing outstandingservice and solutions to our customers and clients. Formore information on this program, see 38 - 39.Retail Audit and Verification Processesour store registers are accurate. We conduct weekly andmonthly inspections to help ensure that shelf labels andthe price customers are charged at the register matchand are accurate. If pricing discrepancies are found, anaction plan is developed and implemented to correct theissue and prevent similar issues in the future.Age Verification and Product TrackingCVS/pharmacy has processes in place to assure thatappropriate protocols are followed in sales of certainproducts such as alcohol, tobacco and tobacco products,pseudoephedrine (PSE), dextromethorphan (DxM),emergency contraceptives and compressed air basedon age verification or other factors. In regard to productscontaining PSE, we have made substantial investments toimprove handling and monitoring of PSE by implementingenhanced technology and making other improvementsin our stores and distribution centers, including anenhanced electronic monitoring system, use of “blacklight” technology to identify false identification cards andinstallation of security cameras to record transactions atthe pharmacy counter.69Product Expiration Date VerificationWe have a stringent expired product removal policy andtrain our store employees to be vigilant when it comesto product expiration dates. Our stores carry as manyas 30,000 different types of products and often havewell over 100,000 individual items on their shelves, andeach date-coded item must be checked manually. Whileno labor-intensive process of this kind is immune fromerror, we strive to achieve 100 percent compliance withour policies. We conduct weekly and monthly internalaudits of compliance with our dated merchandisepolicies and procedures as well as monthly third-partyaudits. In addition, enhanced systemic controls wereput in place in 2011 to prevent distribution centersfrom receiving merchandise with less than the requiredshelf life and an automatic process was implementedto prevent merchandise with less than the requiredshelf life from being delivered to stores. These newsystem controls contributed to a reduction in date codeexceptions noted during store order date code audits.Pricing AccuracyWe make all reasonable efforts to ensure that the pricesposted in our stores and provided by price scanners at“Our SupplierDiversity Programcomplements theCVS Caremarkcommitment tosound businesspractices andsocial responsibilityto the communitieswe serve.”2011 Corporate Social Responsibility Report


70CORPORATE GOVERNANCECVS Caremark is firmly committed to sound corporate governance and to acting with integrity and a high levelof accountability in all aspects of our performance. Our Values – Innovation, Collaboration, Caring, Integrity andAccountability – clearly reflect who we are as a company and how we conduct business.Our ReputationOur PoliciesWe are proud that CVS Caremark was named as oneof the most reputable companies in the United States,according to the 2012 Most Reputable Companieslist published by Forbes in partnership with theReputation Institute. We were also included amongthe World’s Most Admired companies by FORTUNE,listed seventeenth on the Bloomberg Business Week50 ranking of top-performing companies, rankedfourth among The Most Valuable U.S. Retail Brands byInterbrand 2012 and included on the 2011 CSR Indexby Boston College Center for Corporate Citizenship andReputation Institute and listed among CR Magazine’s2012 100 Best Corporate Citizens.We are committed to being responsive, accountableand transparent to our stakeholders and to operatingin compliance with the laws and regulations governingour business.In January 2012, our Board of Directors adopted themost recent version of our Corporate Governance guidelines,which meets or exceeds the listing standardsadopted by the New York Stock Exchange (NYSE).These Guidelines are available on our investor relationswebsite at http://info.cvscaremark.com/investorsand include:• Annual election of all directors• Conflict of Interest Policy• Majority voting for uncontested director elections• Stock ownership guidelines for all directors andexecutive officers• Insider Trading Policy• All stock-based incentive plans havestockholder approval• Stockholders ratify auditors• Comprehensive Corporate Code of Conduct• Ethics Hotline2011 Corporate Social Responsibility Report


Board IndependenceAccording to our Corporate Governance guidelines,the majority of directors must meet the NYSE BrightLine requirements for independence, as well as ourown categorical standards. The Board determines theindependence of each director each March and willreevaluate its determinations as needed during theyear. This year, nine of the ten nominees for election asdirectors at the 2012 annual meeting of stockholderswere determined to be independent.Only Directors determined by the Board to meetindependence standards serve on our Board’sAudit, Nominating and Corporate Governance, andManagement Planning and Development Committees.Board CommitteesAudit CommitteeThe Board of Directors and its Committees areinvolved in risk oversight and management forCVS Caremark. The Audit Committee is chargedwith the primary role in carrying out risk oversightresponsibilities on behalf of the Board and reviewsCVS Caremark’s major financial risk exposures, aswell as major operational, compliance, reputationaland strategic risks, including steps to monitor,manage and mitigate those risks. Each of the otherBoard Committees is responsible for oversight ofrisk management practices for categories of risksrelevant to their functions. The Audit Committeehas broad oversight responsibilities for risks andissues that could impact our company and ourbusiness and reputational interests. At least onceeach year, and otherwise as needed, the AuditCommittee receives comprehensive assessmentsfrom management concerning existing and emergingbusiness risks, financial risks and other legal andcompliance risks, and these reports include briefingson environmental and social risks and issues. Thesereports also include recommendations concerningmitigation and remediation of identified risks andissues when appropriate. The Board considers itsrole in risk oversight when evaluating the company’sCorporate Governance Guidelines and its leadershipstructure, which facilitate the Board’s oversight ofrisk and communication with management. TheChairman and CEO are focused on the company’srisk management efforts and ensure that relevantmatters are appropriately brought to the Board andits Committees for their review.Nominating and Corporate Governance CommitteeThe Nominating and Corporate Governance Committeeadvises the Board of Directors on membership criteriaand recommends individuals for membership on theBoard. Candidates should be distinguished individualswho are prominent in their fields or otherwise possessexemplary qualities that will enable them to effectivelyfunction as directors of the company. While theNominating and Corporate Governance Committeedoes not believe it appropriate at this time to establishany specific minimum qualifications for candidates,the Committee focuses on the following qualitiesin identifying and evaluating candidates for Boardmembership: background, experience and skills;character, reputation and personal integrity; judgment;independence; diversity; commitment to the companyand service on the Board; and any other factors thatthe Committee may determine to be relevant andappropriate. There is no specific policy regardingdiversity of the Board; however, the Committee valuesdiversity, which it views holistically in terms of gender,race, background and experience, among other factors,as considerations in selecting members to serve onthe Board. The Committee believes that the diversityof the Board’s current composition provides significantbenefits to the company. The Board membership(2012) includes seven men and three women; nineBoard members are white and one is African-American.Each year, the Nominating and Corporate GovernanceCommittee leads the Board in a self-evaluation todetermine whether the Board and its Committeesare functioning effectively. The Committee overseesthe evaluation process and reports to the Board onthe process and results of the evaluations, includingany recommendations for proposed changes. Whereappropriate, this process would include economic,environmental or social matters.Management Planning and Development CommitteeThe Management Planning and DevelopmentCommittee has oversight responsibility for thecompany’s overall compensation structure, includingreview of its compensation practices, with a view to712011 Corporate Social Responsibility Report


72assessing associated risk. The Board as a group isregularly updated on specific risks in the course ofits review of corporate strategy, business plans andreports to the Board by its respective Committees.For additional details on the Board Committeecomposition, visit our investor relations website athttp://info.cvscaremark.com/investors.Board AttendanceDirectors are expected to attend Board and theirrespective committee meetings, as well as the annualmeeting of stockholders. In 2011, each Directorattended at least 75 percent of the Board andcommittee meetings of which he or she was a member.Director Orientation and Continuing EducationAll new Directors are strongly encouraged to participatein our Director orientation program and receive acomprehensive briefing on the company, its operationsand policies. Ongoing learning opportunities are alsoavailable to all Directors. The Nominating and CorporateGovernance Committee oversees the orientation andcontinuing education program for Directors.Board Leadership StructureThe Board believes that the company and its stockholdersare best served by having the flexibility to either havethe same individual serve as Chairman and CEO, or twoseparate persons in those roles. Currently, our Board isled by an independent Chairman who presides over allmeetings of the Board and works with the CEO, whois a member of the Board, to set meeting agendas andschedule Board meetings. The independent Chairmanhas the authority to call and to lead independent Directorsessions and the ability to retain independent legal,accounting or other advisors in connection with thesesessions; facilitate communication and serve as a liaisonbetween the CEO and the other independent directors; andadvise the CEO of the informational needs of the Board.The Board believes that Board independence and oversightof management are effectively maintained throughthe independent Chairman, Board’s composition andCommittee system. If in the future the Board decides that anon-independent Chairman should lead, then it will appointan independent Lead Director. The Board also believesthat it is not necessary to adopt a rigid policy restricting itsdiscretion in selecting the Chairman of the Board (as well asrestricting the ability to combine the positions of Chairmanand CEO if future circumstances warrant), because thiswould deprive the Board of the ability to select the mostqualified and appropriate individual to lead the Board asChairman at any particular point in time.Contact with the Board of DirectorsStockholders and other parties, including employees,interested in communicating directly with the Boardof Directors may do so in writing to the company. TheCorporate Secretary of the company reviews all suchcorrespondence and regularly forwards to the Boarda summary of all correspondence that deals with thefunctions of the Board or its committees. Directorsregularly review a log of all correspondence received bythe company that is addressed to members of the Board.Stockholder ProposalsIn accordance with Securities and ExchangeCommission (SEC) rules, we reprint properlysubmitted stockholder proposals and supportingstatements, as they were submitted to us, in ourannual proxy statement. Once filed, we proactivelyengage with the filing parties in order to betterunderstand and address their concerns. It is worthnoting that, among S&P 500 companies includingCVS Caremark, an increasing number of stockholderproposals have been filed in recent years ontopics relating to political contributions, lobbyingexpenditures and disclosures, corporate governancestructure and executive compensation. A stockholderproposal regarding political contributions andexpenditures will be brought for a vote at the 2012annual meeting. Also raised for a vote will be aproposal by the company to amend the company’sCharter to allow stockholders to take action bywritten consent by less than unanimous approval.Other Governance PracticesExecutive CompensationCVS Caremark’s management and Board of Directorsrecognize that executive compensation is an importantand relevant issue in corporate governance. Our policiesand programs continue to be designed to ensure anappropriate link between pay, company and individual2011 Corporate Social Responsibility Report


performance, and shareholder returns. With theoversight of the Management Planning and DevelopmentCommittee, our executive compensation policies andprograms are designed to attract, retain and motivatetalented leaders to drive company performance. ThisCommittee also evaluates and monitors our executivecompensation strategy to ensure our approach is alignedwith best practices among our peer group.We are committed to a “pay-for-performance”philosophy, and we demonstrate that commitmentby delivering a significant portion of our executives’annual compensation in long-term, multi-year “atrisk” equity awards whose ultimate value, if any, willdepend on the company’s future financial and stockperformance. It is not only financial performance thatis important to us as a company; customer serviceand satisfaction metrics are an important factor inthe determination of annual incentive award fundingnot only for executives, but for all annual incentiveaward recipients. In addition, we have a “claw back”provision that allows the company to recoup annualand long-term incentive awards if it is determinedthat fraud or financial misconduct, which allowedthe executive to receive an award, had occurred. Allof these actions further reinforce a strong alignmentof our executives’ interests with those of ourstockholders.As required by the Dodd-Frank Wall Street Reformand Consumer Protection Act, we asked ourstockholders at the 2011 annual meeting to provideadvisory approval of the compensation paid to ourexecutives. The vote was overwhelmingly positive,with 91 percent of the stockholders voting insupport of our executive pay programs. Additionally,CVS Caremark had its first non-binding vote on thefrequency of stockholder say-on-pay votes. Goingforward, say-on-pay votes will be held annually,in response to the 85 percent stockholder vote infavor of the company-recommended annual votefrequency.To further demonstrate our commitment to linkingpay and performance, we have added an additionalmeasure – total shareholder return – to our threeyearlong term incentive plan to complement thereturn on net assets measure. We believe that addingtotal shareholder return as a measure will result inexecutive awards that reflect the market’s view of ourachievements and further align executive pay withsatisfaction of stockholder objectives.Additionally, we have policies in place that addressconcerns raised by stockholders at many companiesregarding benefits payable under a supplementalexecutive retirement plan (SERP) and tax grossuppayments available to executives. Under thesepolicies, our SERP plan is now closed, and no excisetax gross-up, or any other kind of tax gross-up, will beoffered to additional executive officers in the future.Political Activities and ContributionsCVS Caremark participates in the political process tohelp shape public policy and address legislation thathas a direct impact on the company. The engagementensures that the interests of our business, customers,shareholders and employees are fairly represented at alllevels of government.As a health care company, CVS Caremark believesthat staying informed on political matters thatimpact how health care is delivered, which inturn impacts our business and our customers, iscritically important. It is CVS Caremark policy thatthe CEO and the Board of Directors are responsiblefor determining the company’s policy and politicalinterests and deciding how to further those interestsin a manner that is consistent with applicablelaws. Our activities include lobbying, campaigncontributions, educational outreach, and otherrelated activities that promote efforts to improve howpharmacy care is delivered in this country.CVS Caremark’s Government Affairs team representsthe company’s point of view in Washington, D.C.and in state capitals around the country. Workingwith the businesses, the Government Affairs teamfocuses on legislative and public policy issues thatimpact the company’s delivery of pharmacy care andlong-term business interests and communicates withpolicymakers and stakeholders on issues that impactour business.732011 Corporate Social Responsibility Report


74Lobbying ActivityLobbying is highly regulated in the United States andCVS Caremark complies with applicable U.S. federaland state laws, including the Lobbying DisclosureAct and Honest Leadership and Open GovernmentAct that require reporting on lobbying activities andcertification of compliance with Congressional giftrules. CVS Caremark’s federal lobbying reports canbe found at http://lobbyingdisclosure.house.gov/.Political DonationsCVS Caremark is prohibited by federal law frommaking contributions to candidates or politicalparties in federal elections. As with manycorporations, CVS Caremark offers certain eligibleemployees an opportunity to participate in thepolitical process by contributing to a companysponsoredPolitical Action Committee. Politicalcontributions to federal candidates, politicalparty committees and political action committeesare made by the company’s employee politicalaction committee, the CVS Caremark CorporationEmployees PAC (CVS Caremark-EPAC). Consistentwith federal law, CVS Caremark pays theadministrative, solicitation and compliance costs ofCVS Caremark-EPAC, but contributions to the PACare only funded with voluntary contributions fromeligible CVS Caremark employees.The activities of the CVS Caremark-EPAC aresubject to comprehensive regulation by thefederal government, including detailed disclosurerequirements. The CVS Caremark-EPAC filesmonthly reports of receipts and disbursements withthe Federal Election Commission (FEC), as wellas pre-election and post-election FEC reports. Allpolitical contributions over $200 are shown in thepublic information made available to the FEC. Underthe Lobbying Disclosure Act of 1995, CVS Caremarksubmits to Congress semi-annual reports, whichalso include a listing of CVS Caremark-EPAC’scontributions to federal candidates. Those reportsare publicly available at http://lobbyingdisclosure.house.gov/.In 2010, the U.S. Supreme Court ruled thatcorporations have a First Amendment right to makeindependent expenditures, including advocatingfor the election or defeat of a clearly identifiedfederal candidate. (See Citizens United v. FEC).CVS Caremark has not made any independentexpenditures in federal, state or local elections.At the state level, the company’s politicalcontributions are also subject to regulation.Although some states have not banned corporatecontributions to candidates or political parties, allstates require that such contributions be disclosedeither by the recipient or by the donor. Anyinformation regarding the corporate contributionsmade by CVS Caremark to state candidates, politicalparties or ballot initiative committees is publiclyavailable. The CVS Caremark-EPAC also makesstate-level contributions in some states, which aredisclosed as required by law. CVS Caremark alsooperates employee-funded state PACs in RhodeIsland, Massachusetts and New York.Details regarding CVS Caremark’s politicalcontributions are updated semi-annuallyon the company’s website athttp://info.cvscaremark.com/contributions.Semi-annual reports include contributions madeduring the covered period to federal candidates,leadership PACs, political parties, politicalcommittees and other political entities. At thestate level, semi-annual reports include theaggregate contributions made by state. All of theCVS Caremark-EPAC contributions are disclosedaccording to the requirements of the Federal ElectionCommission.Trade Association ParticipationCVS Caremark participates in various federal- andstate-level trade associations or organizationsthat operate in support of specific industries.Trade associations tend to participate in publicrelations activities such as education, advertisingand lobbying to influence public policy. Manyassociations offer other services, such as producingconferences, networking or charitable events oroffering classes or educational materials. Someassociations also make political contributions oroperate a PAC.In 2011, CVS Caremark paid approximately $3million in dues to federal and state trade and industryassociations. Details regarding CVS Caremark’s trade2011 Corporate Social Responsibility Report


association membership dues are updated semiannually.These reports include the aggregate amountspent on dues for any trade or industry associationwith annual dues of $25,000 or more and can be foundat http://info.cvscaremark.com/associations.Stakeholder EngagementCVS Caremark benefits from engaging withstakeholders from key external and internal groups thatare aligned with our goal of improving health outcomeswhile lowering overall health care costs. We also seekto actively engage with customers and communitystakeholders in areas where we live and work. Beloware some of the ways we engage and encouragecommunication with our stakeholders.ENGAGEMENT WITH KEYSTAKEHOLDER GROUPSEMPLOYEESEmployee engagement surveys, focus groups, newsletters,intranet, community projectsNON-GOVERNMENTAL ORGANIZATIONSRoundtables, strategic partnerships, online engagementSUPPLIERSProcurement contractsSupplier Ethics Policy75In addition to our annual employee engagement survey(p. 26) and ongoing retail and PBM customer outreach(p. 20), in August and September 2011 we conducteda survey of national policy influencers to measure CVSCaremark’s current reputation, inform strategies forstrengthening CVS Caremark’s reputation, identify healthcare issues that offer strong opportunities for thoughtleadership, assess awareness and opinions of CVSCaremark’s integrated business model, and identifykey metrics for tracking the impact of communicationsover time. In assessing important issues where CVSCaremark could make a difference, respondents identifiedmedication adherence, improving quality and reducingcosts and chronic disease as key areas of focus.In November and December 2011, CVS Caremarkconducted qualitative and quantitative researchwith individuals who would be likely to use healthinsurance exchanges as part of health reformbeginning in 2014. The survey discovered thatwidespread confusion and misinformation existsaround the Affordable Care Act (ACA) and whileawareness of ACA and exchanges may grow,consumers will still need assistance to understandupcoming changes. Individuals surveyed expressedinterest in a range of resources that could beprovided by a retail company and pharmacistsand nurses/nurse practitioners ranked just behinddoctors as the most credible sources of informationon exchanges. These findings will help to informCVS Caremark’s activities to support customers andpatients in regard to health exchanges.CLIENTSNew clinical product and service innovations, dedicated client salesand account teams, call centersINVESTORS, SHAREHOLDERS, ANALYSTSAnnual report, quarterly conference calls, meetings andconferences, investor websiteCONSUMERSExpert care and guidance, innovative products and services,consumer research, consumer relations hotlines,social media, websitesLOCAL COMMUNITIES AND CIVIC ORGANIZATIONSCommunity engagement programs, volunteering, boardmembershipsTRADE ASSOCIATIONSMeetings, reports, collaborationGOVERNMENT AND REGULATORY AUTHORITIESBriefings, meetings, regulatory filingsMEDIAPress releases, social media, websites2011 Corporate Social Responsibility Report


76ABOUT THIS REPORTCVS Caremark’s 2011 Corporate Social Responsibility (CSR) Report provides an overview of the company’ssocial and environmental commitments, and offers progress updates on the company’s CSR-relatedinitiatives and goals. There may be certain events or activities referenced in this report that were initiatedin 2011 but came to fruition in early 2012. Our 2011 CSR report is our fifth annual publication of this type.We plan to continue reporting on an annual basis.Global Reporting Initiative (GRI)CVS Caremark recognizes the value of universally acceptedstandards for this type of voluntary reporting.The Global Reporting Initiative (GRI), one of the mostaccepted frameworks in the world, served as a guidein determining content and performance metrics toinclude in the 2011 Report. We have provided an indexof the GRI standard disclosures, including performanceindicators, in this report. It can be found on pp. 78 - 81.Based on the criteria for GRI G3 Guidelines and ApplicationLevels, the 2011 CVS Caremark CSR Reportmeets requirements for Level B. More information onGRI is available at www.globalreporting.org.Materiality AssessmentAs part of this year’s reporting process, we commissioneda third party to help us identify and prioritize thecompany’s material issues.The process for determining materiality involved gatheringinputs from various internal and external sources,and then evaluating and prioritizing the issues foundbased on their relevance and importance to the companyand significance to stakeholders. The sourcesused in this process included:• Internal documents and plans that articulated thecompany’s business objectives and strategies,policies, programs and risk factors• Communications prepared by the company forexternal release• Feedback and insights from employees andcustomers• Shareholder communications and any actions filedagainst the company• Traditional media coverage• Online and social media outlets• Industry trade groups• General trending issues of relevanceAfter reviewing these sources, we compiled a matrix ofissues and prioritized each one based on the followingcriteria:• The importance of the issue to and potential impacton CVS Caremark• The importance of the issue to and potential impacton our stakeholders• The amount of reasonable control CVS Caremark hasover a particular issue2011 Corporate Social Responsibility Report


77Based on the assessment and a review of the GRIGuidelines, the material issues of greatest importanceto CVS Caremark and its stakeholders, over which thecompany has a reasonable level of control with respectto its related business activities, fall into the followingareas: evolving role of health care, privacy practices,governance practices, stakeholder engagement,political contributions and public policy, managementof the company’s carbon footprint and meetingcustomer needs.party, and at this time, the company does not have apolicy for external assurance of its CSR Report.Your FeedbackThis report is an important tool for communicating ourcorporate social responsibility performance and progress.Your feedback is important to us as we continueto look for ways to improve our reporting and provideyou with the information you need. Please submit yourfeedback to CSR@cvs.com.Reporting YearCVS Caremark fiscal year 2011 (January 1, 2011 toDecember 31, 2011), unless otherwise noted.Information IntegrityCVS Caremark management is responsible for thepreparation and integrity of the information in thisreport. The metrics and goals in this report areestablished and measured by the groups responsiblefor achieving them. Through a system ofinternal controls, including a review process involvinginternal subject matter experts, we believe thisreport accurately and fairly represents our CSRactivities, programs and results for the fiscal yearending December 31, 2011. The report was reviewedand approved by members of CVS Caremark seniormanagement. However, this report has not beenexternally audited or verified by an independent thirdPreparation of this ReportCVS Caremark,Corporate Communications Department1 CVS Drive, Woonsocket, RI 02895401-765-1500, CSR@cvs.comThis report contains certain forward-looking statementsthat are subject to risks and uncertainties that couldcause actual results to differ materially. For these statements,the company claims the protection of the safeharbor for forward-looking statements contained in thePrivate Securities Litigation Reform Act of 1995. Thecompany strongly recommends that you become familiarwith the specific risks and uncertainties outlinedunder the caption “Cautionary Statement ConcerningForward-Looking Statements” in its Annual Reporton Form 10-K for the fiscal year ended December 31,2011 and in its reports filed quarterly on Form 10-Q.2011 Corporate Social Responsibility Report


GLOBAL REPORTING INITIATIVE (GRI) INDEXIndicator Topic LocationStrategy and AnalysisCoverage(Full or Partial)Page #1.1Statement from the most senior decision maker of the organization(e.g., CEO, chair, or equivalent senior position) about the relevanceof sustainability to the organization and its strategy.Statement from the CEO F 51.2 Description of key impacts, risks, and opportunities.Statement from the CEOAbout this ReportF5,76, 77Organizational Profile2.1 Name of the organization. CVS Caremark Company Profile F 62.2 Primary brands, products, and/or services. CVS Caremark Company Profile F 6782.3Operational structure of the organization, including main divisions,operating companies, subsidiaries, and joint ventures.CVS Caremark Company Profile F 62.4 Location of organization's headquarters. CVS Caremark Company Profile F 62.5Number of countries where the organization operates, andnames of countries with either major operations or that arespecifically relevant to the sustainability issues covered in the report.CVS Caremark Company Profile F 62.6 Nature of ownership and legal form. CVS Caremark Company Profile F 62.7Markets served (including geographic breakdown,sectors served, and types of customers/beneficiaries).CVS Caremark Company Profile F 62.8 Scale of the reporting organization. CVS Caremark Company Profile F 6, 72.9Significant changes during the reporting periodregarding size, structure, or ownership.CVS Caremark Company Profile F 6Helping People on Their Path toBetter Health2.10 Awards received in the reporting period.A Pharmacy Innovation CompanyCommitted to Its PeopleF11, 24,70Corporate GovernanceReport Parameters3.1 Reporting period (e.g., fiscal/calendar year) for information provided. About this Report F 773.2 Date of most recent previous report (if any). About this Report F 763.3 Reporting cycle (annual, biennial, etc.) About this Report F 763.4 Contact point for questions regarding the report or its contents. About this Report F 773.5 Process for defining report content. About this Report F 763.6Boundary of the report (e.g., countries, divisions,subsidiaries, leased facilities, joint ventures, suppliers).About this Report F 763.7 State any specific limitations on the boundary of the report. About this Report F 763.8Basis for reporting on joint ventures, subsidiaries, leased facilities,outsourced operations, and other entities that can significantly affectcomparability from period to period and/or between organizations.About this Report F 763.9Data measurement techniques and the bases of calculations, includingassumptions and techniques underlying estimations applied to thecompilation of the Indicators and other information in the report.Innovating for a HealthierEnvironmentAbout this ReportF51, 53,762011 Corporate Social Responsibility Report


GLOBAL REPORTING INITIATIVE (GRI) INDEXIndicator Topic LocationCoverage(Full or Partial)Page #3.10Explanation of the effect of any re-statements of informationprovided in earlier reports, and the reasons for such re-statement(e.g., mergers/acquisitions, change of base years/periods,nature of business, measurement methods).Innovating for a HealthierEnvironmentF 533.11Significant changes from previous reporting periods in the scope,boundary, or measurement methods applied in the report.About this Report F 763.12 Table identifying the location of the Standard Disclosures in the report. GRI Index F 783.13Policy and current practice with regard to seeking externalassurance for the report. If not included in the assurance reportaccompanying the sustainability report, explain the scope and basisof any external assurance provided. Also explain the relationshipbetween the reporting organization and the assurance provider(s).Governance, Commitments, and Engagement4.1Governance structure of the organization, including committeesunder the highest governance body responsible for specific tasks,such as setting strategy or organizational oversight.About this Report F 77Corporate Governance F 71794.24.34.44.54.64.7Indicate whether the Chair of the highest governancebody is also an executive officer.For organizations that have a unitary board structure, state thenumber and gender of members of the highest governance bodythat are independent and/or non-executive members.Mechanisms for shareholders and employees to providerecommendations or direction to the highest governance body. Identifytopics related to economic, environmental, and social performanceraised through these mechanisms during the reporting period.Linkage between compensation for members of the highestgovernance body, senior managers, and executives (includingdeparture arrangements), and the organization’s performance(including social and environmental performance).Processes in place for the highest governance body toensure conflicts of interest are avoided.Process for determining the composition, qualifications, and expertiseof the members of the highest governance body and its committees,including any consideration of gender and other indicators of diversity.Corporate Governance F 72Corporate Governance F 71Corporate Governance F 72Corporate Governance F 73Corporate Governance F 70Corporate Governance F 714.8Internally developed statements of mission or values, codes ofconduct, and principles relevant to economic, environmental,and social performance and the status of their implementation.Our PurposeCorporate Integrity and BusinessPracticesF4,65, 684.94.10Procedures of the highest governance body for overseeing theorganization’s identification and management of economic,environmental, and social performance, including relevant risksand opportunities, and adherence or compliance with internationallyagreed standards, codes of conduct, and principles.Processes for evaluating the highest governance body’sown performance, particularly with respect to economic,environmental, and social performance.Corporate Governance F 71Corporate Governance F 714.11Explanation of whether and how the precautionaryapproach or principle is addressed by the organization.Helping People on Their Path toBetter HealthF 164.12Externally developed economic, environmental, andsocial charters, principles, or other initiatives towhich the organization subscribes or endorses.Corporate Integrity and BusinessPracticesF 674.13Memberships in associations (such as industry associations)and/or national/international advocacy organizations.Corporate Governance F 744.14 List of stakeholder groups engaged by the organization. Corporate Governance F 752011 Corporate Social Responsibility Report


GLOBAL REPORTING INITIATIVE (GRI) INDEXIndicator Topic LocationCoverage(Full or Partial)Page #4.15Basis for identification and selectionof stakeholders with whom to engage.Corporate Governance F 75Helping People on Their Path toBetter Health4.16Approaches to stakeholder engagement, includingfrequency of engagement by type and by stakeholder group.A Pharmacy Innovation CompanyCommitted to Its PeopleF18, 20,26, 75Corporate Governance804.17Key topics and concerns that have been raised through stakeholderengagement, and how the organization has responded to those keytopics and concerns, including through its reporting.Economic Performance IndicatorsHelping People on Their Path toBetter HealthCorporate GovernanceF 20, 75CVS Caremark Corporate Profile5.0 - DMADisclosure on the organization’s management approachregarding its economic impacts throughout society.Helping People on Their Path toBetter HealthF7, 15,41Social Commitment andPhilanthropyEC1 - coreDirect economic value generated and distributed, includingrevenues, operating costs, employee compensation, donationsand other community investments, retained earnings, andpayments to capital providers and governments.CVS Caremark Corporate ProfileSocial Commitment andPhilanthropyP 7, 41EC8 - coreDevelopment and impact of infrastructure investmentsand services provided primarily for public benefitthrough commercial, in-kind, or pro bono engagement.Helping People on Their Path toBetter HealthA Commitment to DiversityF 15, 36Environment Performance Indicators5.0 - DMADisclosure on the organization’s managementapproach to environmental sustainability.Innovating for a HealthierEnvironmentF 51EN3 - coreDirect energy consumption by primary energy source.Innovating for a HealthierEnvironmentF 56EN4 - coreIndirect energy consumption by primary source.Innovating for a HealthierEnvironmentF 56EN5 - addEnergy saved due to conservation and efficiency improvements.Innovating for a HealthierEnvironmentF 58EN7 - addInitiatives to reduce indirect energyconsumption and reductions achieved.Innovating for a HealthierEnvironmentF 58EN8 - coreTotal water withdrawal by sourceInnovating for a HealthierEnvironmentF 59EN16 - coreTotal direct and indirect greenhouse gas emissions by weight.Innovating for a HealthierEnvironmentF 53EN18 - addInitiatives to reduce greenhouse gas emissions and reductions achieved.Innovating for a HealthierEnvironmentF 53, 54EN23 - coreTotal number and volume of significant spills.Innovating for a HealthierEnvironmentF 55EN26 - coreInitiatives to mitigate environmental impacts ofproducts and services, and extent of impact mitigation.Innovating for a HealthierEnvironmentF 612011 Corporate Social Responsibility Report


GLOBAL REPORTING INITIATIVE (GRI) INDEXIndicator Topic LocationHuman Rights Performance IndicatorsCoverage(Full or Partial)Page #5.0 - DMADisclosure on the organization’s management approach regardinghuman rights in its operations and throughout the supply chain.Corporate Integrity andBusiness PracticesF 67HR1 - corePercentage and total number of significant investment agreementsand contracts that include clauses incorporating human rightsconcerns, or that have undergone human rights screening.Corporate Integrity andBusiness PracticesF 68Labor Practices & Decent Work Performance Indicators5.0 - DMALA1 - coreDisclosure on the organization’s management approach to workforcediversity, programs and services for diverse communities, supplierdiversity initiatives, workforce engagement and development.Total workforce by employment type, employmentcontract, and region, broken down by gender.A Pharmacy Innovation CompanyCommitted to Its PeopleA Commitment to DiversityF 23, 33A Commitment to Diversity F 34, 3581LA3 - addBenefits provided to full-time employees that are not provided totemporary or part-time employees, by significant locations of operation.A Pharmacy Innovation CompanyCommitted to Its PeopleF 23LA4 - corePercentage of employees covered by collective bargaining agreements.A Pharmacy Innovation CompanyCommitted to Its PeopleF 30LA8 - coreEducation, training, counseling, prevention, and risk-controlprograms in place to assist workforce members, their families,or community members regarding serious diseases.A Pharmacy Innovation CompanyCommitted to Its PeopleF 24, 25LA11 - addPrograms for skills management and lifelong learning thatsupport the continued employability of employees andassist them in managing career endings.A Pharmacy Innovation CompanyCommitted to Its PeopleF 28-29LA13 - coreComposition of governance bodies and breakdown of employeesper employee category according to gender, age group,minority group membership, and other indicators of diversity.A Commitment to DiversityCorporate GovernanceF34-35,71Society Performance Indicators5.0 - DMADisclosure on the organization’s management approachto participating in public policy and the political process.Corporate Governance F 73SO3 - corePercentage of employees trained in organization’santi-corruption policies and procedures.Corporate Integrity andBusiness PracticesF 65SO5 - coreSO6 - addPublic policy positions and participation inpublic policy development and lobbying.Total value of financial and in-kind contributions topolitical parties, politicians, and related institutions by country.Corporate Governance F 73Corporate Governance F 74Product Responsibility Performance Indicators5.0 - DMADisclosure on the organization’s managementapproach to product responsibility.Helping People on Their Path toBetter HealthF 15PR2 - addTotal number of incidents of non-compliance with regulationsand voluntary codes concerning health and safety impactsof products and services during their life cycle, by type of outcomes.Helping People on Their Path toBetter HealthP 16PR3 - coreType of product and service information required byprocedures, and percentage of significant productsand services subject to such information requirements.Helping People on Their Path toBetter HealthF 16PR5 - addPractices related to customer satisfaction, includingresults of surveys measuring customer satisfaction.Helping People on Their Path toBetter HealthF 202011 Corporate Social Responsibility Report


One CVS DriveWoonsocket, RI 02895401-765-1500www.cvscaremark.com

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