Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community Investment
• Environmental Sustainability
• Employee Well-being
• Economic Opportunity
• Diversity and Inclusion

Environmental Achievements

• Installed solar-powered rooftop energy generation systems at three stores in California.
• Recycled an estimated 128,000 tons of cardboard, 170,000 tons of pallets and wood waste, and 1,100 tons of shrink wrap.
• Expanded eco-friendly product offerings (rubber mulch, cellulose insulation, sustainably grown lumber, ChoiceDek™).

Social Achievements

• Contributed more than $37 million to communities.
• Created 23,000 jobs.
• Partnered with Habitat for Humanity, building 232 homes in Michigan through the Jimmy Carter Work Project and assisting with disaster rebuilding efforts.
• Partnered with the American Red Cross, raising over $9 million for disaster relief.
• Launched Lowe's Heroes employee volunteer initiative.
• Established Lowe's Employee Relief Fund, assisting over 1,900 employees with $2.2 million.
• Provided a $55,000 grant for mobile science labs in San Antonio schools.
• Supported diversity programs and initiatives.

Governance Achievements

• Implemented a wood procurement policy ensuring responsible sourcing.
• Established global sourcing policies with best-in-class worker protections and factory inspections.
• Maintained a Code of Business Conduct and Ethics.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Global sourcing policies with worker protections and factory inspections; vendor compliance with high standards; Code of Business Conduct and Ethics.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-friendly products: rubber mulch, cellulose insulation, sustainably grown lumber, ChoiceDek™

Awards & Recognition

• ENERGY STAR® honors for four consecutive years
• EPA Top 10 Retail Green Power Partner

Environmental Metrics

ESG Focus Areas

• Employee Well-being
• Community Development
• Environmental Sustainability

Environmental Achievements

• Recycled more than 145,000 tons of pallets, more than 138,000 tons of cardboard and 20 tons of shrink wrap in one year.
• Four California stores decreased overall energy use and cut power use by 10 percent using solar panels.
• Donated $1 million to The Nature Conservancy for land conservation projects.
• Award-winning ENERGY STAR® partner for five consecutive years.

Social Achievements

• Created more than 25,000 new jobs in 2006.
• Expanded Tuition Reimbursement Program to $1,000 annually for eligible employees.
• Donated more than $15 million through Lowe’s Charitable and Educational Foundation.
• Partnered with Habitat for Humanity, contributing more than $5 million to builds and launching "First Families Building Homes Across America" initiative.
• Supported the American Red Cross with over $500,000 in contributions.
• Lowe's Heroes volunteered over 7,000 hours to renovate 10 local Boys and Girls Clubs.

Governance Achievements

• Strict standards for product quality, safety, and social responsibility; LG Sourcing inspects hundreds of foreign factories annually.
• Code of Business Conduct and Ethics prohibits conflicts of interest with vendors.
• Purchased more than $1 billion in merchandise and supplies from woman- and minority-owned businesses.

Climate Goals & Targets

Supply Chain Management

Supplier Audits: Hundreds of foreign factories inspected annually

Responsible Procurement

• Global sourcing policies prohibit child or prison labor.
• Code of Business Conduct and Ethics.

Climate-Related Risks & Opportunities

Awards & Recognition

• ENERGY STAR® partner for five consecutive years

Environmental Metrics

ESG Focus Areas

• Our People & Our Communities
• Product Sustainability
• Operational Excellence

Environmental Achievements

• Reduced absolute Scope 1 and 2 greenhouse gas emissions by 42% over the past five years
• Achieved an 11% reduction in total energy consumption from 2020 to 2021
• Helped customers save $6.2 billion in lifetime energy costs via ENERGY STAR® certified products and $11.5 billion in lifetime water bill savings via WaterSense® labeled products.

Social Achievements

• Awarded $740 million in bonuses to frontline associates
• Provided more than $927 million in discounts to active military personnel and veterans and their families
• Launched 100 Hometowns initiative, benefiting more than 1.3 million people

Governance Achievements

• Named to the Dow Jones Sustainability Index for North America for the third consecutive year
• Announced commitment to set a science-based net-zero target in 2022

Climate Goals & Targets

Environmental Challenges

• Persistent global challenges (implied)
• COVID-19 pandemic
• Shortage of truck drivers in North America
• Supply chain disruptions due to natural disasters (Hurricane Ida, Kentucky tornadoes)

Mitigation Strategies

• Rigorous safety standards for COVID-19, including on-site vaccination program
• Expanded use of intermodal transportation and backhaul programs to reduce emissions and maximize vehicle use
• Cube utilization program to optimize trailer filling
• Deployment of staged inventory program for rapid disaster response
• Disaster relief buckets and emergency supplies distribution
• Partnership with Good360 for product donation after natural disasters

Supply Chain Management

Supplier Audits: 1404 RESA audits conducted

Responsible Procurement

• Vendor Code of Conduct
• Human Rights Policy
• Conflict Minerals Policy
• Safer Chemicals Policy

Climate-Related Risks & Opportunities

Physical Risks

• Increased average temperatures
• Heat wave days
• Cooling degree days
• Sea-level rise
• Changes to precipitation
• Extreme temperatures
• Drought
• Hurricanes
• Wildfires
• Extreme precipitation and flooding
• Frost
• Pests
• Disruption of natural resource supply
• Vendor factory disruption
• Disruption to supply chain and logistics
• Damage to Lowe's facilities

Transition Risks

• Carbon tax on GHG emissions
• Building efficiency requirements
• Product efficiency requirements
• Fleet emissions requirements

Opportunities

• Reduced operating expenses through energy-saving technologies
• Increased demand for energy and water-efficient products
• Increased demand for climate-resilient products

Reporting Standards

Frameworks Used: GRI Standards (2016), SASB Standard for Multiline and Specialty Retailers & Distributors, SASB Standard for Building Products & Furnishings, TCFD

Certifications: Null

Third-party Assurance: Third-party verification of Scope 1 and 2 GHG emissions and water consumption data

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 11
• Goal 12
• Goal 15

Initiatives contribute to these goals through energy efficiency, workforce development, community investment, sustainable products, and responsible forestry.

Sustainable Products & Innovation

• ENERGY STAR® certified products
• WaterSense® labeled products
• Gloves made with 50% recycled plastic (future)

Awards & Recognition

• Dow Jones Sustainability Index for North America
• AMVETS Veteran Friendly Employer of the Year

Environmental Metrics

ESG Focus Areas

• Our People & Our Communities
• Product Sustainability
• Operational Excellence

Environmental Achievements

• 49% reduction in absolute scope 1 and 2 GHG emissions since 2016
• 6% reduction in total energy consumption in 2022 from 2021
• Achieved 100% SmartWay certification for all transportation providers in 2022
• 86% of strategic suppliers have sustainability goals in place
• Responsibly sourced 59% of wood products in the United States in 2022

Social Achievements

• LTIR decreased from 2.21 in 2021 to 1.78 in 2022
• Invested over $400 million in local communities since 2018, surpassing the goal of $350 million by 2025
• Awarded over $580 million in bonuses to U.S. frontline associates in 2022
• Filled over 80% of leadership positions internally in 2022
• Nearly 7,000 associates trained in first aid and CPR in 2022

Governance Achievements

• Named to the Dow Jones Sustainability Index for North America for the fourth consecutive year
• 58% of board members are diverse (42% people of color, 33% women)
• 50% of executive officers are diverse (50% people of color, 25% women)

Climate Goals & Targets

Environmental Challenges

• Reducing scope 3 emissions
• Supply chain disruptions due to climate events
• Maintaining a safety-first culture while reducing incidents and severity
• Managing climate-related risks (extreme temperatures, drought, hurricanes, wildfires, extreme precipitation and flooding)
• Transition risks (policy changes, market shifts)

Mitigation Strategies

• Commitment to net-zero emissions across scopes 1, 2, and 3 by 2050
• Investing in energy efficiency and renewable energy
• Partnering with suppliers to reduce emissions
• Implementing electric vehicles and equipment
• Developing corrective action plans with suppliers to address compliance issues
• Supplier diversification
• Improving energy efficiency and water efficiency in facilities
• Expanding portfolio of energy and water-efficient products

Supply Chain Management

Supplier Audits: 1663 RESAs performed in 2022

Responsible Procurement

• Vendor Code of Conduct
• Human Rights Policy
• Wood Sourcing Policy
• Conflict Minerals Policy
• Safer Chemicals Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme temperatures
• Drought
• Hurricanes
• Wildfires
• Extreme precipitation and flooding
• Frost
• Pests

Transition Risks

• Carbon tax
• Building efficiency requirements
• Product efficiency requirements
• Fleet emissions requirements

Opportunities

• Reduced operating expenses through new technologies
• Increased demand for energy and water-efficient products
• Increased demand for climate-resilient products

Reporting Standards

Frameworks Used: GRI Standards, SASB Standard for Multiline and Specialty Retailers & Distributors, SASB Standard for Building Products & Furnishings, TCFD

Certifications: null

Third-party Assurance: Third-party verification of scope 1 and 2 GHG emissions and water consumption data

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 11
• Goal 12
• Goal 15

Initiatives contributing to these goals are detailed throughout the report.

Sustainable Products & Innovation

• ENERGY STAR® certified products
• WaterSense® labeled products

Awards & Recognition

• Dow Jones Sustainability Index for North America
• Veterans Bridge Home Veteran Employer of the Year

Environmental Metrics

ESG Focus Areas

• People and Communities
• Product Sustainability
• Reducing the environmental footprint of our operations

Environmental Achievements

• Included in the Dow Jones Sustainability Index for North America for the fifth consecutive year.
• Established a goal to reach net-zero emissions across the Company’s scope 1, 2, and 3 GHG emissions by 2050.
• Committed to decreasing its scope 1 and 2 emissions by 40% and reducing scope 3 emissions by 22.5% below 2021 levels by 2030.
• Spent more than $400 million across multiple projects including replacing stores’ aging HVAC units with high efficiency models, installing and updating building management systems, installing pallet grinders, and completing indoor LED lighting upgrades.
• Announced plans to install rooftop solar panels at 174 store and distribution center locations nationwide, including more than 50 sites currently in operation. Once each site is completed, the solar panels will provide approximately 90% of the energy usage at each location.

Social Achievements

• Awarded frontline associates with more than $350 million in discretionary and profit-sharing bonuses in 2023.
• Established a five-year, $50 million Gable Grants program to help meet growing demand for skilled tradespeople.
• Received more than 15 notable employer of choice awards including being named on the Disability:IN National Best Places to Work for Disability Inclusion, Fortune’s World’s Most Admired Companies Specialty Retailer, DiversityInc.’s Top 50 Noteworthy Companies, 2023 American Opportunity Index, and a Best Corporation for Veteran’s Business Enterprises of the Year.
• Awarded the Center for Workforce Inclusion 2023 Workforce Equity Award.

Governance Achievements

• 44% of our board is diverse
• 67% of our executive officers are diverse

Climate Goals & Targets

Environmental Challenges

• Persistent macroeconomic pressures impacted our DIY customer demand in 2023, particularly in bigger-ticket purchases.
• DIY demand remains uncertain
• Lumber deflation

Mitigation Strategies

• Disciplined expense management and focus on productivity
• Highlighting value and convenience, both in our stores and online, to a price-conscious consumer, while maintaining a balanced focus on profitability.
• Investments in Pro customer offerings
• Perpetual Productivity Improvement (PPI) initiatives

Supply Chain Management

Responsible Procurement

• human rights policy
• conflict minerals policy
• Vendor Code of Conduct
• wood sourcing policy

Climate-Related Risks & Opportunities

Physical Risks

• extreme weather conditions
• wildfires
• droughts
• rising sea levels

Transition Risks

• regulatory or technology changes

Reporting Standards

Frameworks Used: Sustainable Accounting Standards Board, Global Reporting Initiative, U.N. Sustainable Development Goals, Task Force on Climate-related Financial Disclosures

Sustainable Products & Innovation

• ENERGY STAR® and WaterSense® products

Awards & Recognition

• Disability:IN National Best Places to Work for Disability Inclusion
• Fortune’s World’s Most Admired Companies Specialty Retailer
• DiversityInc.’s Top 50 Noteworthy Companies
• 2023 American Opportunity Index
• Best Corporation for Veteran’s Business Enterprises of the Year
• Center for Workforce Inclusion 2023 Workforce Equity Award