Climate Change Data

Environmental Metrics

ESG Focus Areas

• Water
• Gardens and Green Spaces
• Responsible use of pest controls

Environmental Achievements

• Removed phosphorus from lawn fertilizer products (meeting a 2011 goal)
• Achieved a 41% decrease in waste to landfill (normalized) from 2010 baseline
• Achieved an 11% decrease in CO2 emissions (normalized) from 2010 baseline
• Five production facilities achieved 'zero waste to landfill' status
• Diverted 1,270 metric tonnes of waste from landfill using new balers
• Recycled 10,612 metric tonnes of waste (45.5% of total waste generated)

Social Achievements

• Created GRO University online learning platform for associate development
• No fatalities in the workplace for four consecutive years (FY2011-FY2014)
• Associate Board provided over $27,000 in assistance to 17 Scotts’ families
• 393 associates logged 1,995 volunteer hours through a paid time-off program
• Donated 21,000 pounds of produce from associate gardens to food banks

Governance Achievements

• Established a comprehensive effort to protect water quality
• Implemented periodic anti-corruption training for associates worldwide
• Expanded scope of reporting to include additional facilities

Climate Goals & Targets

Environmental Challenges

• Potential impacts of climate change on water availability and supply chain
• Balancing consumer demand for effective products with environmental concerns (e.g., lawn fertilizers)
• Meeting the goal of 90% of suppliers achieving 'green' or 'yellow' scores on sustainability survey
• Maintaining packaging durability while increasing recycled content
• Addressing legacy asbestos issue from Libby, Montana vermiculite

Mitigation Strategies

• Incorporated water conservation technologies into products and consumer outreach programs
• Reformulated lawn maintenance products to remove phosphorus and use slow-release nitrogen
• Developed new applicators for on-target application and reduced spills
• Conducted sustainability education sessions with suppliers
• Reduced overall use of raw materials for packaging by four million pounds
• Provided associates with thorough health screenings, counseling, and access to professional services

Supply Chain Management

Supplier Audits: Sustainability survey conducted in 2010, 2012, and 2014

Responsible Procurement

• Code of conduct requiring suppliers to conduct business with integrity, comply with laws and regulations, and adhere to international labor and human rights standards

Climate-Related Risks & Opportunities

Physical Risks

• Impacts to average rainfall and water supplies

Transition Risks

• Regulatory response to climate change concerns

Opportunities

• Development of water-efficient products

Reporting Standards

Frameworks Used: GRI G4 Core Guidelines

Certifications: ISO 14001 (Howden, UK facility)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• WaterSmart product line; Scotts Snap lawn care system; EdgeGuard lawn spreaders; ready-to-use formulations; improved applicators; growing media made from recycled organic waste; drought-tolerant grass seeds

Awards & Recognition

• Fit Friendly Platinum-Status recognition (five years)

Environmental Metrics

ESG Focus Areas

• Environmental Improvement
• Community Enhancement
• Youth Empowerment
• Workplace Safety and Wellness
• Pesticide Safety
• Water Conservation
• Pollinator Protection

Environmental Achievements

• Achieved 6% reduction in energy consumption across North America manufacturing and office facilities (equivalent to removing 1,000 passenger vehicles from the road for a year)
• 80% waste diversion rate by 2017
• Multiple facilities achieved zero waste to landfill status
• Incorporated 5 billion pounds of green waste annually into products
• Phased out neonicotinoid active ingredients from Ortho® outdoor garden control products (on track to complete by 2021)
• Introduced water-saving products like EveryDrop Water Maximizer™ and Blossom smart watering system
• Introduced slow-release nitrogen lawn food products in Florida to reduce nutrient runoff

Social Achievements

• LiveTotal Health program provides comprehensive wellness approach for associates and their families
• Associate Giving Fund raised over $250,000 to support associates facing challenges
• Give Back to Gro program offers 2 paid days off per year for community service
• GRO1000 initiative supported the creation of 1000 community gardens
• The Legacy Project supports high school students with educational and vocational goals

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Harmful algal blooms caused by nutrient pollution
• Pollinator decline

Mitigation Strategies

• $10 million global race to find a solution to harmful algal blooms (Everglades Foundation George Barley Water Prize)
• Phasing out neonicotinoids from outdoor garden control products
• Partnerships with environmental organizations for pollinator protection and education

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sourcing food waste for soil products within 100 miles of production facilities

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

• EveryDrop Water Maximizer™, Blossom smart watering system, slow-release nitrogen lawn food, natural and organic product lines

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Product Stewardship and Safety
• Operations and Supply Chain
• Associate Engagement and Wellness
• Community Engagement
• Governance and Transparency

Environmental Achievements

• Diverted 17,216 tons of waste from landfills, achieving an overall diversion rate of 58%
• Removed more than 10,000 metric tons of phosphorus from all lawn maintenance fertilizers
• Reduced water consumption through water recycling and reuse initiatives
• Introduced Ortho® GroundClear® Weed & Grass Killer with an OMRI-listed active ingredient

Social Achievements

• Launched LiveTotal Health program to improve associate physical, financial, and personal well-being
• Increased 401(k) company match, resulting in an additional $1.7 million in matching contributions
• Established a new cancer support program for associates and their families
• Provided two paid days off per year for community service, totaling more than 92,000 hours in 2019
• Donated nearly 36,000 pounds of produce from associate gardens to local food banks

Governance Achievements

• Completed a materiality assessment to prioritize ESG topics
• Established a cross-functional sustainability team
• Implemented enhanced standards around environmental stewardship, emissions, and human rights for suppliers

Climate Goals & Targets

Environmental Challenges

• Loss of reliable markets for certain recycling, forcing more material to landfills
• Need to better quantify greenhouse gas emissions across the entire business
• Balancing the need to reduce water and maintain high consumer safety in product design

Mitigation Strategies

• Searching for alternative outlets for recycling materials
• Exploring ways to better quantify greenhouse gas emissions
• Developing concentrates for safer and less impactful product delivery, exploring water-efficient product designs

Supply Chain Management

Responsible Procurement

• Supplier Relations Policy; Code of Business Conduct and Ethics; enhanced standards around environmental stewardship, emissions, and human rights (to be rolled out in FY2021); Sustainable Suppliers Program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: Veriflora certified peat bog sites

Sustainable Products & Innovation

• Miracle-Gro® Performance Organics™ line; Ortho® GroundClear® Weed & Grass Killer; Gavita 1700e LED light

Awards & Recognition

• Wonderful Workplace for Columbus Young Professionals; Top Place to Work by Columbus CEO

Environmental Metrics

ESG Focus Areas

• Product Stewardship & Safety
• Operations & Supply Chain
• Associate Engagement & Wellness
• Community Engagement
• Governance & Transparency

Environmental Achievements

• Modified all Florida formulas to be 65% slow-release nitrogen to protect Florida waterways.
• Removed more than 10,000 metric tons of phosphorus from all lawn maintenance fertilizers.
• Diverted 23,593.7 tons of waste from landfills (57% diversion rate).

Social Achievements

• Launched Hawthorne Social Justice Fund to invest in criminal justice reform and economic inclusion in the cannabis industry.
• Provided one-time cash payments and retirement contributions to hourly and certain salaried associates in recognition of their dedication during the COVID-19 pandemic.
• Expanded sick leave programs and covered 100% of costs related to COVID-19 treatment and testing.

Governance Achievements

• Updated Code of Business Conduct and Ethics to advance commitment to ethical operations and integrity.
• Implemented anti-bribery and anti-corruption training for associates in high-risk jurisdictions.
• Established an enhanced third-party due diligence onboarding and monitoring process.

Climate Goals & Targets

Environmental Challenges

• Loss of reliable markets for certain recycling, forcing material to be sent to landfills.
• Harmful algal blooms threatening waterways due to nutrient runoff.
• COVID-19 pandemic impacting operations and community engagement.

Mitigation Strategies

• Partnering with Brightmark LLC to chemically convert plastic film scrap into valuable fuels and feedstock.
• Developing products that help consumers use less water and protect against runoff.
• Adapting grant-making to meet urgent community needs and empowering associates to give back in safe ways.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Sustainable Suppliers Program
• Local sourcing for growing media inputs

Climate-Related Risks & Opportunities

Physical Risks

• Harmful algal blooms
• Drought

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Development of water-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core options

Certifications: Veriflora (Canadian peatlands)

Sustainable Products & Innovation

• EcoScraps Slow Release Fertilizer
• ProVista turfgrass
• Gavita 1700e LED light

Environmental Metrics

ESG Focus Areas

• Product stewardship and safety
• Operations and supply chain
• Associate engagement and wellness
• Community engagement
• Governance and transparency

Environmental Achievements

• Optimized film structures and operations to eliminate one million pounds of linear low-density polyethylene (LLDPE) plastic from our Growing Media portfolio.
• Launched Ortho® Super Groundclear Concentrate pouches that on average use 80% less plastic than its rigid package equivalent.
• Redesigned non-recyclable wax coated corrugated pallet bands to a recyclable band, eliminating the use of more than 100 tons of waxed bands that would have gone to a landfill.
• Diverted approximately 2,025 short tons of waste from landfills in 2022.
• Reused ~100,000 tons of nutrient-rich wastewater since 2002.
• Diverted 3.4 million pounds of coir waste from landfill in 2022.
• Reached 151.8 million Americans through environmental partnerships in 2022.
• Recycled roughly 5 billion pounds of green waste locally in 2022.

Social Achievements

• Continued focus on associate engagement by using sentiment gathered from our associates to shape communication strategies.
• Announced a series of changes to U.S. benefit programs focusing on making healthcare easier to navigate.
• Launched several tools focused on associate development.
• Exceeded goal to connect 10 million young people to the benefits of gardens and greenscapes (connected over 17 million).

Governance Achievements

• Implemented Supplier Code of Conduct.
• Developed Supplier Engagement Program.
• Launched Legal University, delivering over 300 hours of legal and compliance training.

Climate Goals & Targets

Environmental Challenges

• Reporting challenges in establishing baseline metrics and future improvement goals for emissions and waste.
• Inventory shortages for hybrid vehicles hindering fleet conversion.
• Ongoing changes to the business requiring reclassification and prioritization of suppliers for the Supplier Engagement Program.
• Complex racial, societal, and economic inequalities tied to cannabis.

Mitigation Strategies

• Improving data collection processes.
• Expanding purchasing criteria for hybrid vehicles to include additional manufacturers.
• Reclassifying and prioritizing suppliers for the Supplier Engagement Program.
• Investing in the Hawthorne Social Justice Fund to address social injustice and support minority entrepreneurs.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Supplier Engagement Program
• Local procurement of green waste materials

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Harmful algal blooms (HABs)

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of water-efficient products
• Development of energy-efficient products (LED lighting)

Reporting Standards

Frameworks Used: GRI Standards (2021), SASB’s Chemicals industry standard, UN SDGs

Certifications: Veriflora® Responsibly Managed Peatlands

UN Sustainable Development Goals

• Goal 3
• Goal 6
• Goal 8
• Goal 10
• Goal 12

See UN SDG Alignment section in report.

Sustainable Products & Innovation

• Roundup Dual Action (non-glyphosate formulation)
• Ortho® Super Groundclear Concentrate pouches
• Ortho GroundClear® Weed & Grass Killer Super Concentrate Flexible Refill Pouch
• Gavita and Agrolux LED lighting technology
• ProVista™ turfgrass

Awards & Recognition

• Giga-Guru status in Walmart’s Project Gigaton™ initiative

Environmental Metrics

ESG Focus Areas

• Product Stewardship & Safety
• Operations & Supply Chain
• Associate Engagement and Wellness
• Community Engagement
• Governance and Transparency

Environmental Achievements

• Reduced peat in Miracle-Gro Garden Soil by 52 percent and Miracle-Gro Potting Mix by over 29 percent from 2019 to 2024.
• Diverted 160,000 pounds of plastic waste from landfills and recycled it into Trex outdoor products in 2023.
• Diverted 1.66 million pounds of coir waste from landfills in 2023.
• Redirected 30 percent of hazardous waste to a waste-to-energy program in 2023.
• Recycled approximately 7,750 short tons of waste in 2023.
• Recycled roughly 5.5 billion pounds of green waste in 2023.

Social Achievements

• Earned a 100 percent score on the Human Rights Campaign Corporate Equality Index (HRC CEI) and the designation of being a “2023/2024 Equality 100 Leader in LGBTQ+ Workplace Inclusion”.
• Increased awareness of associate volunteer programs.
• Connected 10 million children to the benefits of gardens and greenscapes in 2023.
• Invested $2.5 million in criminal justice reform and inclusion initiatives through the Hawthorne Social Justice Fund (HSJF) in 2023.

Governance Achievements

• Reviewed ESG governance structure in 2023, leading to a new structure in 2024 with ultimate oversight by the Board of Directors.
• Established an ESG Steering Committee responsible for driving achievement of sustainability goals.

Climate Goals & Targets

Environmental Challenges

• Meeting recycled content goals due to challenges in securing reliable high-quality recycled resin feedstock and internal quality testing requirements.
• Meeting recyclable packaging goals due to evolving state recycling regulations and How2Recycle guidelines.
• Meeting the goal to convert 20 percent of the sales fleet to hybrid vehicles due to higher than projected costs, limited hybrid vehicle availability, and potential disruption of valued relationships with manufacturers.
• Budget constraints impacting renewal of grant agreements with environmental partners.

Mitigation Strategies

• Developing new sustainable packaging goals for future goal-setting exercises.
• Working to obtain consistency among various recycling regulations and clarity to set attainable goals.
• Suspending efforts related to the hybrid vehicle fleet goal and reassessing.
• Executing several new environmental grants in 2024 with environmental partners.

Supply Chain Management

Supplier Audits: 75% of suppliers by spend received an assessment in 2023.

Responsible Procurement

• Supplier Code of Conduct
• Supplier Engagement Program
• Local procurement of raw materials

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (2021), SASB’s Chemicals industry standard, UN SDGs

UN Sustainable Development Goals

• 3
• 6
• 8
• 10
• 12

Initiatives align with SDGs related to health and well-being, water stewardship, economic growth, inequality reduction, and sustainable consumption and production.

Sustainable Products & Innovation

• Miracle-Gro Organic Raised Bed & Garden Soil
• Miracle-Gro Organic All Natural Mulch
• ProVista turfgrass
• Hawthorne LED lighting technology

Awards & Recognition

• 2023 Business and Industry Member of the Year from the Alliance for Water Efficiency
• Giga Guru status in Walmart’s Project Gigaton™ initiative (2 consecutive years)