Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced in-store energy use by over 30% since 2004
• Reduced greenhouse gas emissions from supply chain distribution by over 30% since 2010
• Helped customers save more than 70 billion gallons of water and reduce greenhouse gas emissions by more than 4,000,000 metric tons in 2015
• Reduced absolute carbon emissions by over 240,000 metric tons in 2015

Social Achievements

• Performed more than 2,000 foreign factory audits and follow-up visits in 2015
• Transformed more than 26,700 veterans’ homes and facilities since 2011 through The Home Depot Foundation and Team Depot
• Increased The Home Depot Foundation's commitment to a quarter of a billion dollars by 2020 to support veterans

Governance Achievements

• Received a score of 99 out of 100 from the Carbon Disclosure Project, rated as a Global Industry Leader in carbon emission reduction and disclosure in 2015
• Received EPA SmartWay Transport Excellence Award

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: 2,340 factory audits and follow-up visits in 2015

Responsible Procurement

• Social Environmental Responsibility (SER) Standards

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Guidelines

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• WaterSense® toilets, faucets, and showerheads
• ENERGY STAR® appliances
• LED lighting
• Eco Options products

Awards & Recognition

• EPA ENERGY STAR® Partner of the Year for Sustained Excellence
• EPA WaterSense® Partner of the Year for Sustained Excellence
• Carbon Disclosure Project Global Leader
• SmartWay Transport Excellence Award
• Numerous other awards listed in the report

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Veteran Support
• Community Engagement
• Supply Chain Sustainability
• Product Sustainability
• Energy Efficiency
• Water Conservation
• Waste Reduction
• Associate Well-being

Environmental Achievements

• Reduced scope 1-2 greenhouse gas emissions by 50,336 metric tons
• Recycled over 1.2 million pounds of shrink-wrap
• Recycled over 1 million pounds of rechargeable batteries
• Recycled over 72.5 million gallons of water
• Sales of ENERGY STAR products reduced carbon emissions by 50,336 metric tons
• Eliminated 341,000 cubic feet of EPS foam from packaging
• Optimized 152 packages to reduce size and materials
• Removed over 79,500 pounds of PVC packaging
• Avoided 2.5 million gallons of gas through lithium-ion outdoor power equipment sales

Social Achievements

• More than 45% of new hires were ethnically diverse
• 82,000+ veterans hired
• Over 20,000 associates accessed Women in Leadership content
• Expanded relocation packages to include job search support for spouses
• Medical coverage expanded to include transgender benefits
• $15 million+ saved by associates through discounts program
• $131 million+ in tuition reimbursement received by associates
• Awarded $1 billion+ to associates in Success Sharing since 2009
• 125,000+ associates promoted to positions of increased responsibility
• Awarded $360,000 in Retool Your School grants

Governance Achievements

• Over 90% of directors and all Board committee members are independent
• Annual Board and committee self-evaluations
• Annual Board strategy session and review of company’s strategic plan
• ISS gave The Home Depot its highest ranking of “1” under its QualityScore governance rating system for five consecutive years

Climate Goals & Targets

Environmental Challenges

• Reducing environmental impact of products sold
• Ensuring ethical sourcing and human rights compliance in global supply chain
• Managing waste and hazardous materials
• Reducing carbon footprint

Mitigation Strategies

• Partnership with suppliers to develop environmentally innovative products
• Social Environmental Responsibility (SER) Standards and audits
• Supplier AlertLine for reporting violations
• Waste reduction, reuse, and recycling programs
• Greenhouse gas reduction initiatives, including renewable energy projects

Supply Chain Management

Supplier Audits: 2,599 factory audits and follow-up visits in 2016

Responsible Procurement

• Social Environmental Responsibility (SER) Standards
• Supplier diversity program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guidelines

Sustainable Products & Innovation

• ENERGY STAR certified products
• WaterSense labeled products
• Eco Options products
• Lithium-ion powered tools
• Recycled content products

Awards & Recognition

• EPA WaterSense Partner of the Year for Sustained Excellence
• EPA ENERGY STAR Partner of the Year for Sustained Excellence
• SmartWay Excellence Award

Environmental Metrics

ESG Focus Areas

• Focus on Our People
• Operate Sustainably
• Strengthen Our Communities

Environmental Achievements

• Reduced U.S. store electricity use by approximately 11% year-over-year in 2021; 50% reduction since 2010.
• Completed multi-year project to upgrade U.S. stores to overhead LED lighting.
• Estimated customers’ purchases of Energy Star products helped reduce annual electricity use by 7 billion kilowatt hours, saving $950 million on energy costs, and lowering carbon emissions by 4.9 million metric tons.
• Estimated customers’ purchases of WaterSense products helped reduce annual water consumption by over 66 billion gallons, saving more than $873 million on water bills.
• Reduced Scope 1 and 2 carbon emissions by approximately 172,000 metric tons in 2021.

Social Achievements

• 100% of stores qualified for Success Sharing bonus payments to non-management associates.
• Approximately 90% of U.S. store leaders began as hourly associates.
• Increased representation of female and underrepresented minority groups across managers and above cohort in the U.S. during 2021.
• Approximately 36% of U.S. new hires were women, while more than 57% of U.S. new hires were from an underrepresented minority group.
• Increased spend with diverse suppliers to $3.3 billion.
• Launched a Tier II supplier diversity program.

Governance Achievements

• Sustainability Council oversees sustainability approach.
• Quarterly updates to Nominating and Corporate Governance Committee regarding ESG engagement.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic.
• Global supply chain challenges.

Mitigation Strategies

• Multi-year supply chain initiative to create the fastest, most efficient and reliable delivery network.
• Investments in supply chain efficiency helped reduce miles driven despite record product volume.

Supply Chain Management

Supplier Audits: 1,487 factory audits and 1,632 follow-up visits in 39 countries in 2021

Responsible Procurement

• Responsible Sourcing Standards
• Wood Purchasing Policy
• Chemical Strategy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 12: Responsible Consumption and Production
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action
• Goal 10: Reduced Inequalities
• Goal 15: Life on Land

The Home Depot's initiatives contribute to these goals through various programs and practices detailed in the report.

Sustainable Products & Innovation

• Energy Star products
• WaterSense products
• Products made with recycled materials
• Home Depot-branded moving boxes made from 100% post-consumer recycled paper fiber

Awards & Recognition

• Gartner Top Supply Chains
• Fortune World’s Most Admired Companies
• National Retail Federation Top Retailers
• EPA SmartWay Excellence Award, WaterSense Partner of the Year Award, Safer Choice Partner of the Year Award
• Military Friendly Employer
• Human Rights Campaign Corporate Equality Index
• Comparably Best Company Work-Life Balance, Best Sales Team, Best Places to Work in Atlanta
• Canada’s Best Diversity Employers
• Forbes World’s Best Employers, Best Employers for Veterans
• Energy Star Retail Partner of the Year
• Atlanta Business Chronicle HR Excellence Award

Environmental Metrics

ESG Focus Areas

• Focus on Our People
• Operate Sustainably
• Strengthen Our Communities
• Responsible Business Practices

Environmental Achievements

• Reduced Scope 1 and 2 carbon emissions by approximately 92,000 metric tons
• Decreased electricity consumption >52% in U.S. stores since 2010
• Redesigned 350+ private-brand packages to reduce size and materials, eliminating >81M square feet of PVC film
• Helped customers save over 33 billion gallons of water and 3.8 billion kilowatt hours of electricity

Social Achievements

• Invested approximately $1 billion in annualized compensation for frontline, hourly associates
• Achieved goal to invest >1 million hours per year over five years in training and development for frontline associates
• Expanded associate resource groups to include more associates and increase engagement
• The Home Depot Foundation contributed more than $450 million towards veteran causes since 2011
• Drove ~$3.4 billion of spend with diverse suppliers

Governance Achievements

• Updated oversight of ESG activities, shifting oversight of responsible sourcing program to the NCG Committee
• No material data breaches in fiscal 2022
• 100% of in-scope private-brands and proprietary-product Tier 1 suppliers participated in conflict minerals information collection

Climate Goals & Targets

Environmental Challenges

• Ongoing supply chain disruption
• Continued inflationary pressures

Mitigation Strategies

• Investing in alternative energy solutions and operational efficiencies
• Working with suppliers to develop more sustainable products and packaging
• Implementing new tools to improve safety for associates

Supply Chain Management

Supplier Audits: 3,104 factory audits and follow-up visits in 2022

Responsible Procurement

• Responsible Sourcing Standards
• Conflict Minerals program
• Supplier diversity program

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Growth of renewable energy sources

Reporting Standards

Frameworks Used: GRI Standards, SASB Multiline and Specialty Retailers & Distributors and Building Products & Furnishing industry standards, TCFD framework, UN Sustainable Development Goals (SDGs)

Third-party Assurance: Certain carbon data is independently verified by an external third party to a limited level of external assurance for Scope 1, 2, and 3 (category 4) data.

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 15: Life on Land

The Home Depot's initiatives contribute to these goals through various programs and strategies outlined in the report.

Sustainable Products & Innovation

• Energy-efficient products
• Water-saving products
• Products with reduced chemical content
• Sustainable packaging

Awards & Recognition

• ENERGY STAR Retail Partner of the Year for Sustained Excellence
• WaterSense Partner of the Year Award

Environmental Metrics

ESG Focus Areas

• Focus on Our People
• Operate Sustainably
• Strengthen Our Communities
• Responsible Business Practices

Environmental Achievements

• Reduced U.S. store electricity use by approximately 1% year-over-year.
• Achieved goal to exclude EPS foam and PVC film from new private-brand packaging.
• Helped U.S. customers save nearly $1 billion on their utility bills through the purchase of energy-efficient products.
• Expanded rooftop solar installations to 99 facilities.

Social Achievements

• Announced an approximately $1 billion investment in increased annualized compensation for frontline hourly associates.
• Expanded associate resource groups to include more associates and increase engagement and participation.
• The Home Depot Foundation granted more than $86 million to serve veterans, support communities impacted by natural disasters and educate more people in the skilled trades.
• Increased commitment to serving veterans to $750 million.

Governance Achievements

• Continued to assess the composition, including the diversity, of the Board at least annually.
• No material data breaches in fiscal 2023.

Climate Goals & Targets

Environmental Challenges

• Climate change risks and opportunities (physical and transition risks)
• Supply chain disruptions
• Skilled trades labor shortage

Mitigation Strategies

• Integrates climate-related risk assessment into company-wide ERM process.
• Investing in various dock safety trailer restraint systems.
• Investing in low-carbon emissions opportunities (renewable energy, hydrogen-powered forklifts).
• Path to Pro program to address skilled trades labor shortage.

Supply Chain Management

Supplier Audits: 1,400+ factory audits and more than 1,600 follow-up visits conducted in 32 countries in 2023

Responsible Procurement

• Responsible Sourcing program
• Supplier AlertLine

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events, natural disasters

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products
• Renewable energy sourcing

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs

Third-party Assurance: Independent third-party verification for Scope 1, 2 and 3 emissions data (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• ENERGY STAR products
• WaterSense products
• Products with recycled content

Awards & Recognition

• ENERGY STAR Retail Partner of the Year for Sustained Excellence
• Fortune’s #1 Most Admired Specialty Retailer
• EPA’s Green Power Partnership 2023 Green Power Leadership Award Winner
• WaterSense Partner of the Year award