With the passage of federal health care reform and an economy that remained challenging for individual consumers and companies alike, 2010 was an eventful year for our industry. But throughout it all, CVS Caremark made sustainable contributions in health care and beyond. This report chronicles our performance as a socially and environmentally responsible corporate citizen and underscores our commitment to our colleagues, customers, clients and plan members, investors, the communities we serve and the environment in which we all live.

Among the topics detailed in this report, we made significant investments in programs to ensure our continued status as an employer of choice, provided free flu shots to people in need and responded to the most pressing needs of the communities we serve with investments in disaster relief and in support of people with disabilities. We also strengthened our commitment to environmental stewardship by adopting a long-term target to reduce carbon emissions and defining a clear strategy to drive performance.

Beyond these initiatives, I believe that one of our most important contributions in 2010 may have been our investment in research into medication adherence – the rate by which patients take (or don’t take) their prescription drugs. This is directly related to our business as a dispenser of prescription medicine, of course, but poor adherence also is a major driver of unnecessary illness and expense in the United States. Our hope is that the research we published in leading peer-reviewed journals in partnership with Harvard University and others in 2010 represents the beginning of a solution to this pressing issue. Because of who we are as a company, we see investments in the long-term efficacy and efficiency of our health care system as part of our contribution to a healthier and sustainable society.

As we continue to build on our corporate social responsibility in 2011, our commitment will always be to look for opportunities to improve our performance and share our progress annually through our CSR Report. I hope you will take the time to review this year’s report and to share your feedback with us.

Sincerely,

Larry J. Merlo

President and Chief Executive Officer