CVS Buys More Clean Energy Toward Goal of 50% by 2040

CVS Health has agreed to purchase 264,000 megawatt hours (MWh) of zero-emission renewable energy annually from clean energy producer Constellation Energy to aid its ongoing carbon reduction efforts.

These MWh,  the equivalent of the annual electricity used by nearly 1,000 CVS locations in California, Washington, D.C., Delaware, Maryland and New Jersey, are being purchased through two separate long-term agreements with Constellation — for direct purchase and for renewable energy certificates (RECs). These REC purchases are made possible by Constellation’s long-term agreements with solar projects located in California and Maryland.

The two new investments with Constellation join three similar agreements announced in 2023 and 2022 and represent a combined total of more than 500,000 MWh of clean, renewable energy, making a significant dent in the 2.2 million MWh of energy CVS used across its operations in 2022. The company’s ambition is to source 50% of its energy needs from renewable sources by 2040. Other efforts underway to reduce CVS’ carbon footprint include implementing water-saving programs, eliminating waste and reducing fuel usage.

“Investing in our planet and people’s health are interconnected,” said Sheryl Burke, Chief Sustainability Officer and SVP of Corporate Social Responsibility at CVS in a statement. “As our world continues to evolve, these sustainability investments we’re making right now are increasingly important to create a healthier future for the communities we serve.”

CVS isn’t alone in making investments to reduce its carbon footprint. Other similar initiatives include:

• Amazon expanded its renewable energy capacity by 8.3 gigawatts (GW) in 2022, bringing its total portfolio to more than 20 GW and setting a record for renewable energy purchased by a single company;
• Walmart, which had previously committed to getting 50% of its energy from renewable sources by 2025, advanced its commitment to a zero-emissions transportation fleet with the debut of a 15-liter compressed natural gas engine in April 2023 that will be incorporated into Walmart’s vehicles. The company also has been experimenting with autonomous electric vehicles since 2020;
• In 2019, Starbucks signed a deal with the help of LevelTen Energy to supply clean power to the electricity grids serving 3,000 of its stores; and
• In 2023, The Lego Group announced plans to spend $1.4 billion to design carbon-neutral buildings and facilities and boost production of renewable energy at its sites.