CVS Health : 2023 Impact Report

Healthy 2030

2023 Impact Report

Table of contents

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A message from our CEO
and our Chair of the Board	3
A message from our
Chief Sustainability Officer	4
Our Healthy 2030 impact	5
strategy
Healthy People	6
Healthy Business	15
Healthy Community	25
Healthy Planet	33
About this report	40

A message from our CEO and our Chair of the Board

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Introduction | Healthy People| Healthy Business| Healthy Community| Healthy Planet| About

At CVS Health®, our more than 300,000 colleagues are dedicated to building a world of health around each and every person we serve. We're committed to enabling access to high quality, convenient and affordable care. Our Healthy 2030 strategy further advances our ability to positively impact the overall health of communities and deliver on these goals.

In their most challenging moments, our customers put their trust in us. We are committed to maintaining that trust, and we view this responsibility as integral to the way we conduct our business. This is reflected in the pillars of our Healthy 2030 roadmap: Healthy People, Healthy Business, Healthy Community, Healthy Planet. As you will see in this report, we are making measurable progress.

We have made a commitment to our customers to help them address their individual health needs, no matter where they are on their journey. Our job isn't just to make access to health care available. We are also committed to supporting and investing in the communities we serve - because health is so much more than just getting or staying well; it's about helping our customers be the best versions of themselves.

Our responsibility expands beyond what we do to shape the future of health care. We remain focused on hiring, developing and retaining a talented workforce that reflects the diversity of the customers, patients and communities we serve. In addition, we are accelerating progress toward a healthy climate which directly impacts consumer health.

Every day, in every community, CVS Health makes a sustainable positive impact and helps millions of people on their journey to better health. Thank you for taking the time to review our 2023 Impact Report and supporting this important work.

Sincerely,

Karen S. Lynch	Roger N. Farah
President and	Independent Chair
Chief Executive Officer	of the Board

Introduction | Healthy People| Healthy Business| Healthy Community| Healthy Planet| About

A message from our Chief Sustainability Officer

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At CVS Health, we deliver health care in ways no one else can. It's the result of our strong community presence, tech-forward approach and unmatched engagement with millions of people every day. These same differentiators drive our ability to positively impact the health and wellbeing of the people and communities we serve, through our Healthy 2030 strategy. We're proud of the meaningful strides we've made in advancing this work across four pillars - Healthy People, Healthy Business, Healthy Community and Healthy Planet - and are pleased to share our progress in our annual Healthy 2030 Impact Report.

Our more than 300,000 purpose-driven colleagues are our business' greatest strength. Every day, they are delivering on our commitment to transform how people in America experience health care. In 2023, we worked to ensure that CVS Health is a place of opportunity for each of them, where their health, well-being and day-today experiences are prioritized. Investments in our colleagues included expanded benefits, higher education, technology to improve workplace safety, and training to build attractive career pathways.

Our philanthropic investments extended into the communities we serve and leveraged our core expertise. Programs supporting under-resourced communities increased access to care for over 134,000 individuals in 2023, and leading-edge programs and partnerships tapped into our vast retail presence and a network of 6,500 nonprofit partners nationwide. Together, we're targeting improved outcomes to address urgent public health challenges, including mental health, heart health and maternal health.

The health of our planet affects the health of people. We have sustained a rigorous, aggressive approach to evaluating and addressing climate risks and opportunities. In alignment with our net zero commitments, we completed a decarbonization assessment and identified critical workstreams to prioritize in the years ahead. After closing an additional five renewable energy agreements, we will power over 2,000 locations across nine states and the District of Columbia from renewable sources and remain on track to achieve our 2030 science-based emissions reductions targets.

In 2023, we embraced the uncertainty that comes with a necessary speed of change and adaptation, navigating two major acquisitions and a constantly evolving legislative and regulatory landscape. We met the tighter and more exacting expectations of stakeholders, never letting the pursuit of perfection derail our progress. We are proudly building on years of dedicated work to sharpen our ability to create positive impact and achieve our vision for a more equitable health care system and sustainable future for all.

Sincerely,

Sheryl Burke

Chief Sustainability Officer and

Senior Vice President of

Corporate Social Responsibility

Introduction | Healthy People| Healthy Business| Healthy Community| Healthy Planet| About

Our Healthy

2030 Impact

Strategy

Our Healthy 2030 strategy outlines how we are

creating a more equitable health care system and sustainable future. It reinforces our company's strategy and is embedded in our purpose-driven culture.

Healthy 2030 is constructed through our four-pillar

framework - Healthy People, Healthy Business, Healthy Community and Healthy Planet. We are focused on making a meaningful, measurable impact within each of the pillars outlined below.

Healthy People

We keep people at the center of all our decisions across CVS Health® because we believe every person has the fundamental right to be as healthy as possible. Every day, we work to make

health care simpler, more accessible, more affordable and more convenient for every person we serve. Whether we are increasing equitable access to health care and services, reducing

energy use or making investments to support under-resourced communities to improve health outcomes, we are leveraging our expertise and resources

to improve people's health.

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Healthy Business

We are purpose-driven - all of us. Diversity, equity, inclusion and belonging are a part of our core values and imperative to operating at our best. Together, we set high standards and

hold ourselves to them. We work daily to create value for everyone who trusts and relies on us and ensure every action we take is done ethically and transparently. We support our

colleagues' education and growth with scholarships, promote and develop leadership skills through training and development courses and continue

strengthening our pipeline for

a diverse workforce by expanding our workforce initiatives into our communities. We integrate governance and partnership across our business

segments and seek responsible and equitable purchasing practices throughout our supply chain.

Healthy Community

We are strengthening our communities by addressing the unique barriers to improving health outcomes locally. We will make a lasting impact by pulling together all our assets to encourage a

more holistic approach and collaboration across our programs, investments and organizations. As part of this work, we are investing nationwide to expand access to mental

and maternal health care services and address health-related social needs to complement our company's strategy and focus areas. When a natural

disaster or other incident affects the communities where we live and work, we swiftly take action to ensure our response addresses our colleagues' and customers' evolving needs.

Healthy Planet

We are inseparable from the environment we operate in and the people we serve. That's why we continue to invest in initiatives and programs that focus on improving the

health of our planet - advancing our sustainability commitments and addressing the environmental factors that contribute to health inequities. We were one of the first companies in the

world to have our net zero targets validated by the Science-Based Targets initiative's (SBTi) net zero methodology. This set us on the path to achieving net

zero emissions from our direct operations by 2048 and across our value chain by 2050. We're also committed to achieving carbon neutrality by 2030.

Healthy People

We are building a world of health around every consumer.

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Introduction | Healthy People | Healthy Business | Healthy Community | Healthy Planet | About

As one of the leading health care companies in the country, we make it easier to access high

quality, convenient, and affordable care that helps people get and stay healthy. Our integrated health solutions provide us with a unique opportunity to make a difference in the lives of millions of people. Together, we lower the total cost of care, improve health outcomes and deepen patient engagement.

When you access quality care from a health practitioner you trust, you are more likely to take

steps toward a healthier life. That's why we continue to expand and evolve how care is delivered. We support patients and members with multiple touchpoints - in the community, in the home, and virtually - for preventive care, early diagnosis and condition-specific treatment plans. The results are improved health outcomes, lower cost of total care and strong

relationships with providers.

We are building a world of health around every consumer by expanding access to mental health screenings, lowering the costs of prescription medications and investing in technology to simplify the patient experience.

Introduction | Healthy People | Healthy Business | Healthy Community | Healthy Planet | About

Advancing our impact

81.2	MinuteClinic® Net Promoter Score,
well above the industry average of 58

87%	of Aetna® Medicare Advantage
members are in 2024 Medicare
Advantage Prescription Drug (MAPD)
plans that are rated 4 stars or higher
(out of 5 stars) by the Centers for

Medicare and Medicaid Services

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MinuteClinic received Joint Commission accreditation for the

first time for virtual care and behavioral health services

2.5	more time spent by Signify Health®
practitioners with members than a
typical primary care appointment

Introduction| Healthy People | Healthy Business| Healthy Community| Healthy Planet| About

Connecting care where patients need it

Only 8% of Americans undergo routine

health screenings

Primary care is the foundation for health care. Yet almost 80 percent

of people are unsatisfied with their relationship with their primary care provider. Primary and preventive care can improve health care outcomes and reduce downstream costs.

Every day we are providing care where patients need it.

• Community-basedhealth destinations including:
• • Health clinics with primary care, acute care, and preventive care at Oak Street Health® and MinuteClinic®
  • CVS Pharmacy® for prescriptions and health and wellbeing products
• Health services in the home through Signify Health®
• Virtual care which provides access to primary care, on-demand care, health condition management and mental health services

3 in 10 people don't have a primary care provider

Over 5M people receive services at MinuteClinic annually

Over 320K visits through all of our virtual care services,

including mental health appointments.

Missedpreventionopportunitiescost cost theUU.S.S. $. 55$55B annuallyannually

B

2.6M in-home visits through Signify Health

61% of U.S. adults say they would like to get a greater range

of health services from their local pharmacy. 60% report visiting a pharmacy at least once a month.

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Introduction| Healthy People | Healthy Business| Healthy Community| Healthy Planet| About

Redefining how care is delivered with value-based care solutions

At the center of our vision, we are

redefining how care is delivered. It starts with a value-basedcare model that is convenient, multi- channel and successful at engaging patients, leading to better health

outcomes.

This approach is important given that the U.S. population is aging, with an expected 1 in 5 people who will

be over 65 by 2030. We are investing in strategies to support older adults by broadening our care capabilities in the home, the virtual care services we offer, and in

communities with our 40,000 clinicians and pharmacists.

We expanded our care delivery and health services capabilities in primary care, home health and

provider enablement with the acquisitions of Signify Health® and Oak Street Health® in 2023.

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This combination with CVS Health®

creates a value-based, person- centered care platform propelled by the powerful connections between our unique assets, as well as cutting- edge technology and talent to

accelerate innovation.

Signify Health brings clinicians into the home to identify health conditions, close gaps in care and

address social determinants of health. Signify Health has a network of more than 11,000 clinicians in all 50 states. Signify Health practitioners meet with

approximately 3 million people in their homes annually, ensuring that patients get connected to the right care and support.

Oak Street Health serves older

adults with primary care services in

204 medical centers across 25 states. Oak Street Health serves Medicare and dual-eligible(Medicare and Medicaid) patients,

about 45 percent of whom have risk factors around food, housing or isolation.

Oak Street Health providers

typically spend three times more time with patients than other primary care physicians, listening to patient needs and challenges, even those that extend beyond traditional

medical care such as social factors around access to food and housing. Oak Street's innovative care model is designed to deliver consistently superior outcomes and patient

experiences.

Introduction| Healthy People | Healthy Business| Healthy Community| Healthy Planet| About

Championing prescription affordability

We work every day to provide more affordable drug

benefits for our CVS Caremark® clients and their plan members. In 2023, we launched several new products that enable greater transparency, simplicity and affordability.

We introduced CVS CostVantageTM, a new approach

effective in 2025, that defines the drug cost and related reimbursement with contracted pharmacy benefit managers (PBMs) and payors, using a transparent formula built on the cost of the drug, a set

markup, and a fee that reflects the care and value of pharmacy services.

We announced the launch of CordavisTM, a wholly

owned subsidiary of CVS Health® that works directly with manufacturers to bring generics for specialty drug products to the U.S. pharmaceutical market. Cordavis launched its first product in early 2024 with Hyrimoz® (adalimumab-adaz), a biosimilar for Humira®

and represents more than 80 percent lower cost than the current list price of Humira. We are developing a portfolio of products that will facilitate broader access to biosimilars in the U.S. - creating more competition

that drives down prices.

Through a new collaboration with GoodRxTM, Caremark Cost SaverTM is helping members pay lower prices on generic medications when available. The tool lets us compare the GoodRx available drug discount

price to the member's out-of-pocket cost at the pharmacy counter in real time. Members pay the lower price without having to take any additional action.

Over the past six years, our goal of controlling prescription costs has resulted in a 24.7% reduction in member out-of-pocket costs

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