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CSR Increase Energy Efficiency

Increase Energy Efficiencies

Improving energy efficiencies across our enterprise remains a priority for CVS Caremark. Because the majority of our operations are focused on retail, many of our environmental initiatives are tied to reducing our energy consumption and achieving greater efficiencies for our store operations.

In 2008, we invested in energy management initiatives with cost savings that resulted in benefits for both our business and the environment, including:

  • Improvements to lighting
  • Integrated energy management
  • Sustainable building design and construction
  • Enhancements to transportation equipment and distribution processes

Improvements to Lighting

In 2008, we worked to reduce energy consumption across our distribution network and retail facilities by managing our usage during peak power demands and introducing more efficient lighting sources. We also continued efforts to educate our Facility Managers and Engineers on energy efficiency and the importance of conservation.

Distribution Centers
In 2008, we continued to audit energy usage at our distribution centers and have installed a combination of light and motion sensors, and replaced the metal halide, high pressure sodium and T-12 lighting with T-8 and T-8 HO fluorescent lighting. This year, we implemented our new lighting concept at three additional facilities: Lumberton, N.J.; Ennis, Texas; and Bessemer, Ala. distribution centers. Our goal is to continue to identify and address lighting efficiencies across our distribution network in facilities where opportunities to achieve business and environmental benefits exist.

Retail Stores
We continue to evaluate and pursue initiatives to increase energy efficiencies through the use of LED lighting in our CVS/pharmacy stores. In 2008, we piloted LED lighting sources for outdoor signs at select stores, with favorable results. Reducing lighting overall is another alternative we will explore on an ongoing basis. In the past year, we have examined opportunities to reduce or eliminate backlighting in our Beauty and refrigerated aisles.

Integrated Energy Management

CVS Caremark operates different types and sizes of facilities in climates that range from the cold temperatures of Maine to the heat of Arizona. The carbon footprint evaluation process has improved our understanding of the different energy usage patterns that occur in our stores, distribution centers and administrative offices across the country. However, in order to closely monitor and adjust our energy usage on both a micro and macro level, we need to invest in sophisticated energy management tools.

In 2008 we began to explore the feasibility of a centrally-operated, computer-controlled energy management system for our store fleet. In 2009, we will test this concept in select stores, cluster energy data to identify trends, and determine if the benefits of this system warrant nationwide implementation.

Sustainable Building Design and Construction

For the past several years, our teams have been participating in LEED (Leadership in Energy and Environmental Design) training programs to learn about the latest developments in clean and efficient building materials and technologies. We are working with experts to incorporate LEED standards, ENERGY STAR principles and sustainable best practices in our design and construction of new CVS/pharmacy stores and other company buildings.

Overall, our intent is to ensure our footprint and ongoing operations are sustainable and appropriate for each local environment. Among other elements, our new store design process includes aligning sites with existing public transportation points, installing bike racks, planting native vegetation and providing recycling containers for use by customers and store staff.

Sustainability considerations are behind many of the fixtures and materials selected for new stores or remodels of existing facilities – from Interface carpet squares and other flexible flooring products that can be recycled to improved roofing materials that control reflective and absorbed heat loads. We consistently evaluate solar and wind energy alternatives, and we strive to utilize natural lighting, energy efficient T-8 lamps, light and motion sensors, and other technologies in our new distribution centers and stores. In 2008, we applied this approach to our Woonsocket, R.I. distribution center by replacing the facility’s existing ballasted roof in the shipping area with a FiberTiteSM reflective membrane and installing energy efficient prism skylights.

As we expand our footprint into new geographies, we will continue to evaluate green technologies that make sense for the local environment.

Enhancements to Transportation Equipment and Distribution Processes

CVS Caremark is working to manage fuel consumption from both a cost and environmental perspective. We strive to improve efficiencies within our distribution network by:

  • Maintaining a fleet of modern, fuel-efficient vehicles.
  • Having an aggressive refresh program of both tractors and trailers.
  • Ensuring our drivers maintain a speed that is optimal for safety and the environment.
  • Working with our truck vendor on alternative, environmentally-conscious options.
  • Using new electric-powered, refrigerated trailers and forklifts.
  • Enforcing a no-idling policy at our distribution centers to reduce noise and air pollution.

In 2008, our Logistics group completed two major transportation initiatives that reduced total miles driven and improved fuel economy within our distribution network. The first initiative involved the recalibrating of speed governors, built-in microchips that allow a truck engine’s top speed to be preset, on our outbound delivery trucks to reduce maximum speeds to 63 miles per hour or less. This investment resulted in fuel savings equal to 145,065 gallons. The second initiative was a routing optimization and cube program, designed to increase load utility and decrease fuel consumption by reducing the number of routes per distribution center, which was piloted in one location.

Moving Ahead

Identifying, testing and implementing sustainable solutions will continue to be our primary approach to achieving energy efficiency across our operations. In 2009, we plan to:

  • Increase lighting efficiencies by retrofitting our facilities in Bessemer, Ala.; Orlando, Fla.; Novi, Mi.; Somerset, Penn.; and Conroe, Texas.
  • Install LED lighting for outdoor signs at all new stores and begin a retrofit program as we convert acquired Longs Drugs stores to CVS/pharmacy stores.
  • Begin construction on a new energy efficient distribution center to better serve our Longs Drugs stores in Hawaii.
  • Continue to increase fuel savings by expanding our routing and cube optimization program to additional distribution centers and investing in new tractors that have the ability to heat and cool without utilizing fuel when drivers are on break.
  • Conduct testing to determine the viability of enhancing our forklift equipment with new fuel cell technology.