THD 2021ESGReport Singlepages 1
THD 2021ESGReport Singlepages 1
THD 2021ESGReport Singlepages 1
ESG Report
D O I N G O U R PA R T
Overview 84 Gardening
86 Cleaning
04 CEO Letter: Doing Our Part Makes Our
88 Residential Solar
Company Stronger
90 Waste Management & Recycling
06 Engaging Stakeholders & Setting Priorities
92 Sustainable Packaging
08 Materiality Assessment Framework
10 Materiality Touchpoints
12 Home Depot Goals
14 ESG Transparency Strengthen Our Communities
16 2020 Ratings & Recognition 98 Community Partnerships
18 FAQ: Growing Sustainably 100 Supplier Diversity
20 2020 Highlights 102 Retool Your School
104 The Home Depot Foundation
106 Team Depot
Focus on Our People 112 U.N. Sustainable Development Goals
24 Diversity, Equity & Inclusion
34 Associate Engagement
36 Learning & Development International Retail Operations
40 Benefits 116 Canada
46 The Homer Fund 118 Mexico
48 Associate Safety
Our Business
Operate Sustainably 122 Code of Conduct
Protecting the Climate 124 Corporate Governance
54 Carbon Footprint 126 Government Relations
56 Store Operations 128 Corporate Taxes
62 Supply Chain 130 Data Security & Privacy
Sourcing Responsibly
64 Ethical Sourcing Reporting Framework
66 Conflict Minerals 134 Global Reporting Initiative (GRI) Standards
68 Sustainable Forestry 141 Sustainability Accounting Standards Board
(SASB) Disclosure Matrix
Reducing Environmental Impact 144 Task Force on Climate-Related Financial
70 Greener Products Disclosures (TCFD) Framework
74 Circularity 146 EEO-1 Report
78 Responsible Chemistry
82 Energy-Saving Products
83 Water-Saving Products
Note: Unless otherwise indicated, this report does not include data for HD Supply Holdings Inc., which was acquired on Dec. 24, 2020.
OVERVIEW
RESOURCES
Forward-Looking Statements: All statements in this report that are not historical constitute “forward-looking statements” as defined
in the Private Securities Litigation Reform Act of 1995. These forward-looking statements may relate to, among other things, our
goals, commitments and programs and projections of future results; the impact on our business, operations and financial results of the
COVID-19 pandemic and the related recovery; our business plans, strategies, initiatives and objectives and their expected execution
and impact; management of relationships with our associates, suppliers and service providers; and our assumptions and expectations
regarding any of the foregoing. Forward-looking statements are based on currently available information and our current assumptions,
expectations and projections about future events. They are not guarantees of future performance and are subject to future events, risks
and uncertainties – many of which are beyond our control, dependent on the actions of third parties, or currently unknown to us – as
well as potentially inaccurate assumptions that could cause actual results to differ materially. These risks and uncertainties include, but
are not limited to, those described in the “Risk Factors” section and elsewhere in our most recently filed Annual Report on Form 10-K
and Quarterly Report on Form 10-Q and also in future reports we file with the Securities and Exchange Commission. We encourage
you to review these filings. Forward-looking statements speak only as of the date they are made, and we do not undertake to update
these statements other than as required by law.
Note on Materiality: Materiality, as used in this report, and our materiality assessment process, is different than the definition used
in the context of filings with the Securities and Exchange Commission. Issues deemed material for purposes of this report may not be
considered material for SEC reporting purposes.
CEO LETTER
Craig Menear
Chairman and Chief Executive Officer
ENGAGING STAKEHOLDERS
& SETTING PRIORITIES
One of the best ways of understanding our By better understanding our impact and
environmental, social and governance (ESG) collaborating with stakeholders, we position
We value seeing ESG
impact is by listening to and talking with our our company to set objectives that allow us
impact and opportunities broad spectrum of stakeholders. We seek to contribute to building a better business,
through our operational out this dialogue with stakeholders and workplace and world.
lens and also through the welcome ESG-related feedback that comes
lenses of our stakeholders. to us in multiple ways. Our Sustainability Council, composed of
representatives from different areas of
Customers ask us questions every day the business, oversees our approach to
as they shop with us in stores and online. sustainability. Members of the Council share
Individuals and organizations from around stakeholder feedback from their functional
the globe reach out to us with questions areas. The Council focuses on several key
or concerns about our operations or areas, as shown below.
products. We meet with shareholders and
nongovernmental organization (NGOs)
The Council meets twice a year, and its
interested in our business practices. We take
chair presents our sustainability strategy
part in industry efforts to raise awareness
and activities to the Board of Directors
about the ESG responsibilities we all share.
annually. Our ESG priorities and plans are
communicated internally and externally via
Our ongoing interactions may be formal various channels, including in this annual
or informal, as detailed in our Materiality report.
Assessment Framework on Page 8. These
interactions help validate our own materiality
assessment; they also help us gauge the
impact of our business, refine ESG priorities,
measure our progress and design ways
to improve.
AREAS OF
FOCUS
People Communities Climate Energy
Change Reduction
Associates Customers
“I am proud to be a contributing “Be a global-impact conscious
team member of a values-based company, and provide products
organization.” that help me reduce my home’s
environmental impact.”
MATERIALITY ASSESSMENT
FRAMEWORK
This chart outlines the process The Home Depot uses to assess, prioritize and address material sustainability issues.
Chemicals
Corporate
Circular Economy Communications
CATALYSTS
Fuel Cells Government Relations
Organics OR Legal
Renewable Energy
Supply Chain
Worker Well-Being
Educate
Concerned
Home Depot Stakeholders
Experts
Share
OR Findings
Modify
Current
Path
Fact-Finding,
Data Collection, Track Set
OR
Scientific and Report Improvement
Research Goals
Monitor
and Review
Periodically
OR
Test
Alternatives
Concerned
Stakeholders
Exit
Program
MATERIALITY TOUCHPOINTS
Materiality Touchpoints Key Impacted Stakeholders
Nongovernmental
Local Community
Organizations
Academics &
Government
IMPACTS
Customers
Associates
Educators
Suppliers
Investors
Focus on Our People
People
Third-Party Worker
Safety, health, wages, hours, unforced labor
Well-Being
Expand associate resource groups to include more PROGRESS Goal Date: 2021
FOCUS ON OUR PEOPLE
Create career advancement opportunities for 50,000 PROGRESS Goal Date: 2023
front-line associates over a five-year period
Invest more than 1 million hours per year over five years in PROGRESS Goal Date: 2023
training and development to help our front-line associates
grow their careers
Committed to setting Science Based Targets initiative (SBTi) PROGRESS Goal Date: 2023
Scope 1, 2 and 3 goals by 2023 to reduce emissions in line
with Paris Agreement goals
HOME DEPOT PILLARS
100% renewable electricity for all Home Depot facilities PROGRESS Goal Date: 2030
OPERATE SUSTAINABLY: OPERATIONS
worldwide by 2030
Science-based target to reduce emissions 40% by 2030, PROGRESS Goal Date: 2030, 2035
50% by 2035
20% reduction in U.S. store kilowatt-hour electricity PROGRESS Goal Date: 2020
use, compared to 2010 levels
Help reduce customers’ greenhouse gas emissions by PROGRESS Goal Date: 2020
20 million metric tons
Exclude expanded polystyrene (EPS) foam and polyvinyl PROGRESS Goal Date: 2023
chloride (PVC) film from private-brand packaging
HOME DEPOT PILLARS
Help customers save $2.8 billion on utility bills PROGRESS Goal Date: 2020
through energy-efficient products
Launch a Tier II supplier diversity program that measures and PROGRESS Goal Date: 2022
STRENGTHEN OUR
The Home Depot Foundation will contribute PROGRESS Goal Date: 2025
$500 million to veteran causes with a focus on housing
The Home Depot Foundation will invest $50 million to PROGRESS Goal Date: 2028
train 20,000 skilled tradespeople, including veterans
ESG TRANSPARENCY
This chart highlights The Home Depot’s key ESG metrics. The COVID-19 pandemic had an impact on many 2020 results. For example,
customer demand and supply chain volume rose substantially. In addition, we saw a decline in some materials collected from customers
through our in-store recycling programs. We also temporarily halted Team Depot community volunteer projects and associate fundraising
for The Homer Fund. Data from 2018 reflects the calendar year. Data for 2019 and 2020 reflects the fiscal year, except as otherwise
noted. For detailed diversity, equity and inclusion data, see pages 28-31.
Success Sharing paid to associates $227 million $201 million $616 million
Homer Fund assistance paid to fellow associates $13 million** $16 million $16.2 million
Percentage of associates contributing to The Homer Fund 95% 95% ***
Lost time incident rate per 200,000 hours§ 0.87 1.21 1.07
Recordable incident rate per 200,000 hours §
4.48 4.89 4.03
Carbon Emissions
CDP Climate Change score A A- §§
Fuel cell energy capacity for U.S. operations (MWac) 40.3 40.9 40.9
Solar energy capacity companywide, rooftop and off-site (MWac) 42.0 44.6 62.9
Wind energy capacity companywide (MWac) 62 62 62
Diesel used (MWh)*§ 115,150 106,922 199,176
Electricity purchased (MWh)* 3,897,083 3,479,171 3,103,115
Electricity generated (MWh)* 295,443 308,566 302,200
Natural gas used (MWh)* 2,236,023 2,371,696 2,457,439
Propane used (MWh)* 204,485 247,669 272,844
Energy consumption within the organization (MWh)*§ 6,849,960 6,634,705 6,445,071
GHG emissions intensity Scope 1+2 (MT of CO2e per billion
20,013 17,675 13,784
U.S. dollars of revenue)*§
Operating Sustainably
Reduction of kWh used by U.S. stores, year over year -3.40% -11.79% -14.11%
Rechargeable battery recycling by all stores (pounds) 1,043,300 1,170,200 1,240,400
CFL bulb recycling (pounds) 800,500 804,300 562,700
Responsible Sourcing
Combined factory audits and follow-up visits by THD 3,011 3,044 3,012
Product tests conducted by third parties 25,856 42,758 34,774
Transit tests conducted by third parties 27,695 20,640 22,603
Operate Sustainably
Products
Number of restricted substance categories in Chemical Strategy 7 8 8
Energy-saving products offered in stores and online
22,000 24,677 23,668
(includes Energy Star, 8,554 in 2020)
Energy-saving product sales (includes Energy Star, $5.19 billion
$5.79 billion $6.03 billion $8.76 billion
in 2020)
Estimated annual customer savings from purchase and proper use of
$1.2 billion $1.2 billion $1.4 billion
energy-saving products (includes Energy Star, $1 billion in 2020)
Water-saving products offered in store and online
9,000 9,460 9,994
(includes WaterSense, 4,759 in 2020)
Water-saving product sales (includes WaterSense, $1.56 billion
$1.35 billion $1.36 billion $1.65 billion
in 2020)
Estimated annual customer savings from purchase and proper use of
$655 million $650 million $746 million
water-saving products (includes WaterSense, $726 million in 2020)
Residential solar installations 18,291 3,283 4,518
Community
Strengthen Our
Home Depot spend with diverse suppliers $2.1 billion $2.1 billion $3.2 billion
Communities
The Home Depot Foundation grants $74.9 million $82.6 million $52.9 million
Veterans’ homes and facilities improved 5,830 5,527 1,831
Team Depot volunteer hours 240,000 315,000 ***
U.S. political contributions by The Home Depot PAC $1,995,566 $2,282,468 $1,885,107
U.S. corporate political contributions $200,000 $150,000 $420,000
RATINGS
Leading third-party sustainability rating organizations monitor and report on our progress. Below are some key ratings for our
company in 2020.
Analyzes corporate environmental, LOW Our ESG risks are low compared
social and governance (ESG) progress RISK to the industry
FAQ: GROWING
SUSTAINABLY
Chief Sustainability Officer Ron Jarvis has product volume, we forged ahead with
spent two decades driving sustainability our previously planned operational
When we make progress
improvements at The Home Depot. Some of improvements. The energy-saving,
in reducing The Home the frequently asked questions he responds emissions-reducing efficiencies we’ve
Depot’s environmental to offer insights into our progress. gained in recent years helped decrease
impact, we strengthen our carbon intensity. In 2020, we
our business and the achieved a 22% reduction in the amount
communities we serve. of carbon dioxide emitted for each
Q. How are you reducing carbon dollar of revenue we earned, compared
emissions related to company to 2019. Learn more on Page 54.
operations?
Ron Jarvis
Chief Sustainability Officer
2020 HIGHLIGHTS
Our core values guide how we focus on our people, operate sustainably and strengthen our communities and provide a
benchmark for measuring progress. These highlights reflect progress made in 2020.
$215 million
We invested approximately
$2 billion
in enhanced pay and benefits
to ease front-line associates’
in grants, assisting over
157,000
COVID-19 challenges associates since 1999
+ +
More than
Nearly
90%
+
Nearly
9 out of 10 associates
favored workplace safety measures we put in place to
help reduce exposure to the COVID-19 virus
+ + +
We reduced our Scope 1 and 2 carbon
emissions by over 127,000 metric tons,
We decreased
electricity consumption 71
44%
equivalent to taking more than
U.S. Stores
27,600 cars in our U.S. stores from
operated solar farms on
their rooftops – up from
off the road for a year 2010 to 2020 47 in 2019
100%
We redesigned
49 private-brand packages
to reduce waste. We also eliminated enough
renewable electricity
441
for all Home Depot facilities
expanded polystyrene foam to fill worldwide by 2030
+ + Our company
Since 2018, we’ve helped introduce
We’re creating more donated nearly
15,000+ people
opportunities for
diverse businesses to skilled trades and helped certify 3.4 million
by asking our
suppliers to spend
5,000+ participants N95 masks to help
protect front-line health
more with them in trades training programs care workers
FOCUS ON
OUR PEOPLE
RESOURCES
50,000
front-line associates
over a five-year period
ending in 2023
1 million
hours per year through 2023
in training and development to
help our front-line associates
grow their careers
Derek Bottoms, chief diversity officer and Through our partnerships with community
vice president of associate relations, gives organizations focusing on arts, housing,
his take on our expanded focus on DEI. education and entrepreneurship, we are striving
to play our part in helping close the wealth
gap and advancing education for all. And we
Q: Is The Home Depot thinking differently are expanding our supplier diversity program,
about diversity now? which we believe ultimately drives innovation,
Vision Statement A: We are a values-based organization, and economic opportunities and shareholder value.
our values have always guided our business
The Home Depot is building decisions and the way we treat each other. For
a more diverse, equitable The Home Depot, diversity has always been Q: What are some of the projects you’re most
and inclusive organization, important. The highlight on social injustice excited about?
within our enterprise and the and the resulting events following the death A: We’re expanding our associate resource
of George Floyd created a fierce urgency, groups and diversity business councils to include
communities we are proud to
and that reinforced our focus on supporting and engage more associates, growing the
serve. Grounded in our core programs from our Store Support Center to our
diversity, equity and inclusion among our
values, we have the conviction, stores and supply chain facilities. (Learn more
associates, communities and suppliers.
capabilities and tools to make about ARGs on Page 35.)
a difference for our associates,
community and suppliers. Q: How is that urgency turning into action? We’re also laying the foundation for a Tier
A: Our expanded focus on diversity, equity II supplier diversity program to create more
and inclusion has laid the groundwork for economic opportunities for diverse businesses,
three key areas centered on our associates, including our existing supplier partners. Here’s
community partnerships and supplier diversity. how that can make a difference. Our Tier I
Mission Statement As we grow our team, I am confident in the suppliers are those we spend with directly. Those
direction that our convictions, capabilities and dollars that begin with The Home Depot go
The Home Depot ignites
tools will take us to enable our people and our on to fuel our suppliers’ spending with other
the doer in all of us to build company to make a lasting difference.
a culture of understanding, companies. Encouraging our suppliers to spend
with diverse businesses, and tracking that
acceptance and appreciation.
Q: What are some ways that we are spending, is the essence of the Tier II supplier
making a positive impact on our associates, diversity program we’re developing. Through
communities and suppliers? this program, we’ll work to better ensure that
A: For our associates, our team is working a portion of the money we spend on products
cross-functionally on initiatives including and services, even with suppliers that are not
development and training; associate resource identified as diverse, makes its way to diverse
group (ARG) and diversity business council businesses.
programming; discussions with subject matter
experts on driving inclusivity; and recruiting
and talent planning strategies designed to Hear more from Derek in his
eliminate bias. Give Me an H podcast interview.
CREATING A SECOND-HOME
WORKPLACE
District manager’s front-line experience informs her approach to leadership. Creating an inclusive, caring
environment is job No. 1.
S
henell Leighton spent six generational wealth. We also must store, and they treat it like a second
years as a Home Depot offer associates the financial literacy home.”
hourly associate before tools they need to learn about growing
she took her first salaried their money. That may not have been Shenell believes a critical part of
job. Although she’s been in leadership part of their foundation growing up. It’s her job as a leader is to make sure
roles for 15 years, currently as district something I had to learn.” (Go to Page that “second home” is a place
manager of several New York metro 40 to learn more about financial literacy where all associates are welcomed
stores, that time on the front lines tools available to associates.) and included. She wants all our
stays with her. people, especially associates from
The pandemic has put a spotlight underrepresented minority groups and
“Every time I’m in a store, I see on the challenges associates face women, to have the resources they
myself as a cashier ringing up the in their daily lives, Shenell says, and need to ascend and create brighter
register at the Valley Stream store also highlighted their fortitude. “I think futures for their families, as she has.
where I started,” says Shenell, whose about what our people have personally “If we are intentional in our purposes,
District 332 in Queens includes about been through in their lives at home as a company and as individuals, we
1,700 associates. “My experience with their loved ones since March 2020 can chart our own path.”
shapes how I lead. I am aware of the — death, sickness, job losses in the
obstacles, as well as the opportunities. family, struggles with home-schooling
— that all happens before they walk
“I was always self-aware that my into work. And, still, through resilience
actions and contributions were paving and determination, they make it to the
the way for other women and people
of color,” Shenell says. She welcomes
the company’s enhanced focus on
diversity, equity and inclusion and “It’s important that
believes our recent conversations
about race, gender and equity are
we give our people
powerful and can be transformative. access to resources
“We are talking openly about our that enable them to
experiences. We are talking about succeed at work and
what’s difficult — and not just in one-
on-one conversations with mentors build generational
we trust, but in larger settings in our wealth.”
workplace. That open conversation
is the thing that can make positive
change happen,” she says. “That’s
huge.” Shenell Leighton
District Manager, Queens,
Also essential: Putting equity front and New York
center. “Becoming a salaried manager
at The Home Depot changed my
life. My first management incentive
payment helped me erase my debt.
It’s important that we give our people
access to resources that enable
them to succeed at work and build
White 64% Underrepresented Minority Groups 36% White 52% Underrepresented Minority Groups 47%
2020 2020
White 61% Underrepresented Minority Groups 39% White 54% Underrepresented Minority Groups 46%
2019 2019
White 61% Underrepresented Minority Groups 39% White 55% Underrepresented Minority Groups 45%
2018 2018
Source: Latest available data from the U.S. Bureau of Labor Total Number of Associates:
Statistics; 2020 data is estimated 2020: 440,591 2019: 369,646 2018: 365,547
White 64% Underrepresented Minority Groups 35% Male 68% Female 32%
2020 2020
White 65% Underrepresented Minority Groups 35% Male 68% Female 32%
2019 2019
White 65% Underrepresented Minority Groups 35% Male 69% Female 31%
2018 2018
* Includes manager-level positions and above at stores, distribution centers and other field locations, as well as at our Store Support Center; excludes officers.
U.S. OFFICERS
White 74% Underrepresented Minority Groups 26% Male 71% Female 29%
2020 2020
White 76% Underrepresented Minority Groups 24% Male 73% Female 28%
2019 2019
White 76% Underrepresented Minority Groups 24% Male 73% Female 27%
2018 2018
BOARD OF DIRECTORS
White 75% Underrepresented Minority Groups 25% Male 75% Female 25%
2020 2020
White 75% Underrepresented Minority Groups 25% Male 75% Female 25%
2019 2019
White 71% Underrepresented Minority Groups 29% Male 79% Female 21%
2018 2018
PRACTICING DIVERSITY
SPOTLIGHT
EVERY DAY
Associate Christine Botnick got her start as a part-timer selling paint. Now she leads hundreds of supply chain
associates. Her career demonstrates that embracing diversity, equity and inclusion fuels success, and she is
committed to representing LGBTQ, women and minority associates climbing The Home Depot ladder.
C
hristine Botnick already had general manager of our Tracy, California,
a full-time retail job when she rapid deployment center.
started working at Store 249 in “What I can do
Oakland Park, Florida. But she Christine’s career climb brought her what every single day is
needed more money for rent, groceries and she wanted: economic security, upward
college tuition. mobility and a job she loves. But it also
set the tone and the
delivered something she hadn’t expected intentional, deliberate
She was 19, on her own and living and now treasures. It turned her into a
paycheck to paycheck, just as her parents
focus so that leaders
trailblazer.
had always done. But Christine wanted who work under me
to do better. That’s why she was pursuing “Every time I got a promotion, it sparked understand that
a degree in psychology, on her way to a great deal of conversation with other
becoming the first person in her family to female associates. They asked me how diversity, equity and
graduate from college. And that’s why, I did it. Then they started applying for inclusion is important
when her Home Depot manager suggested higher-level jobs, too, and getting them,”
she stretch beyond her part-time role in the Christine says. “That’s when I realized
to the company and
paint department, she listened. Christine that success is contagious.” to me.”
increased her hours, quit that other retail
job, and 18 months later became a paint Embracing her distinction as a trailblazer,
department supervisor. Christine became diversity and inclusion
captain in every store she worked. She
“I just really felt, for the first time in my life, found her own role models, too, among
that other people were interested in seeing them, Laura Mathe, who started as an
me succeed,” Christine recalls. “They saw assistant general manager in our Ontario,
past my age and offered me an opportunity California, rapid deployment center and
and the means to build an income and a rose through the ranks to her current role
better life for myself. They saw that I had as senior director of operations leading
potential, even when I didn’t.” our Western RDCs. Laura is one of 11
SDOs companywide. Another role model
That was 2003. By the end of 2006, for Christine is Hector Padilla, who
Christine was a 22-year-old assistant store began as an hourly store associate in
manager. In 2011, she became a district Hialeah, Florida, in 1994, and now is
services manager in South Florida. Three executive vice president leading our
years later, she was promoted to store Outside Sales & Service business.
manager and ultimately led three Florida
stores, in Sunrise, Punta Gorda and Miami
Gardens. (Along the way, she earned that
college degree.)
When Christine became a store Business has to come first, which How to Practice DEI
manager, she transformed routine in Christine’s case means keeping
with Intention
workforce diversity reports into a call associates safe as they work on
to action and focused on hiring and the supply chain front lines during Christine Botnick’s guidance
promoting associates to better reflect the a pandemic, and keeping products for leaders aiming to foster
communities that the stores served. flowing to the more than 100 stores diversity, equity and inclusion:
across four states served by the Tracy Make it an everyday mindset.
“Once I got to a leadership position, I RDC. Nonetheless, she finds a way to
asked myself, ‘What can I do with my make diversity, equity and inclusion a • Recognize the value of a
podium?’ The answer,” she says, “was to daily priority. diverse workforce, which
make sure the day-to-day actions under brings fresh ideas, sparks
my direction aligned with The Home “What I can do every single day is set innovation, aligns The Home
Depot’s core values.” the tone and the intentional, deliberate Depot with our customers
focus so that leaders who work under and communities and helps
Christine describes herself as an atypical me understand that diversity, equity and us avoid groupthink.
corporate leader. She’s under 40, gay inclusion is important to the company
• Build a broad, diverse
and covered in tattoos. She grew up in a and to me,” Christine says. “Then
network inside The Home
tough, impoverished environment. That’s it becomes important to them, too,
Depot, at all levels, and also
why, she says, her success is bigger than and influences how they manage and
in your community.
she is. It gives others hope. “I have a advance our people.”
responsibility to represent,” she says. • Talk to and listen to people
She remembers what it’s like to be on you don’t necessarily
“I look at the data and think, ‘Where can the bottom rung of the ladder — as a agree with; that’s where
we do more?’ Our stores and supply 19-year-old store associate worried real conversation and
chain facilities should look like the about making ends meet and unsure understanding begins.
demographics of the communities where about the future. “That part-time
they operate,” Christine says. “We’ve got associate selling paint is always in my • Keep an open mind, and
to get women deeper into the stores and head. I want to make sure the people be willing to amend your
higher up into management.” (See The who are on our front lines today get the point of view.
Home Depot’s workplace diversity data same opportunities that I did. That’s
on Page 28.) how I pay it forward.”
ASSOCIATE
ENGAGEMENT
Voice of the Associate Survey With over 900 communities in the network,
the digital hub links associates to local
Associate engagement is Highly engaged associates care about co-workers and colleagues across North
the emotional commitment their work and the performance of The America who share common interests —
associates have to our Home Depot. Our passion is to create an everything from remodeling and volunteerism
company and our goals. It is engaging and inclusive workplace; we do to food and movies. Associates can keep up
vital to The Home Depot’s so by proactively listening and responding with company news, connect to corporate
culture and success. to associate feedback. leaders, cultivate their creativity and fuel their
orange-blooded entrepreneurial spirit.
In 2020, to alleviate one of the pressures
on associates as they took care of
customers and one another, we suspended
our annual companywide Voice of the Success Sharing and
Associate survey. Instead, we invited Compensation Enhancements
associates working in U.S. stores and Our philosophy of taking care of our people
distribution centers to complete an and motivating them to deliver a superior
optional online pulse survey to ensure customer experience shapes our profit-
there was still an opportunity to provide sharing program for hourly associates.
feedback. We used internal communication Success Sharing provides semi-annual cash
channels and QR code posters to raise awards for performance against our business
awareness about the survey. plan, including sales and productivity goals.
The program has granted awards totaling
more than $1 billion to associates over the
The survey specifically asked about last three years.
associates’ workplace experiences
during the pandemic, and the feedback The outstanding performance of our
we received was extremely encouraging. associates in fiscal 2020 enabled 100%
Associates felt supported by their of stores to qualify for Success Sharing in
supervisors and by the company’s flexible both the first and second half of the year.
scheduling to help them balance work and This resulted in record award payments
personal lives during the pandemic. An to our non-management associates of
overwhelming majority also said they were approximately $616 million.
proud to work for The Home Depot.
DID YOU KNOW In 2020, we invested approximately
Almost nine out of 10 $2 billion in enhanced associate pay and
Engagement Platform benefits for front-line, hourly associates
associates favored workplace
In 2020, we began transitioning to a new in response to COVID-19. In the third
safety measures we put
associate engagement platform, launching quarter of 2020, we began transitioning to
in place to help reduce
Yammer at the end of our fiscal year. The permanent compensation enhancements
exposure to COVID-19, shift creates new opportunities for us to that could add up to approximately $1 billion
according to our 2020 pulse reach associates via on-site desktops on an annualized basis. We also continued
survey. Learn more about or on-the-go mobile devices. More than merit-based salary increases and matching
Associate Safety on 450,000 associates across the U.S. and contributions under our FutureBuilder
Page 48. Canada have access to Yammer. 401(k) Plan.
Our Associate
Resource Groups
promote inclusion and
support diversity
LEARNING &
DEVELOPMENT
The Home Depot strives to build a learning- Delivery: Flexing our approach to connect
rich workplace where associates and leaders with associates and customers, while
Our learning and
are prepared to succeed, motivated to serve adhering to safety protocols
development programs our customers well and given opportunities
expand skills and • Instructor-led training shifted from in-
to grow. Our Home Depot University, now in
person to virtual, enabling more than
capabilities so associates its 11th year, is critical to the development of
6,000 associate offerings with over 96,000
can master their current values-based leaders who take care of our
completions.
roles and prepare for associates and our customers.
future ones. • Virtual coaching helped onboard
In 2020, we responded to the unique associates in new supply chain locations.
challenges of the pandemic by focusing on • New-hire videos replaced in-person
content, delivery and technology. training, increasing speed, flexibility and
consistency across operations.
Content: Providing training that supports
• Pivoting to online DIY training met
associates and customers navigating new
customers’ evolving needs — more
challenges
than 300 virtual workshops netted over
• Health and safety protocols 79,000 completions.
• De-escalation training to help associates
stay safe when frustrations are high
DID YOU KNOW Technology: Expanding the use of existing
• New company processes and learning platforms and adding new ones
Associates achieved
19 million training course procedures (i.e., curbside pickup) • We provided more mobile learning
completions in 2020. • Leading Through Uncertainty training opportunities for associates adapting
to evolving procedures, protocols and
customer needs.
• We embedded how-to training inside
operational systems for easily accessible,
needs-based performance support.
Nearly
90%
of our store leaders started
as hourly associates
After months in the hospital, where visits from fellow associates — including the
company’s founders — buoyed his spirits and resolve, Chris went to work in a
distribution center managing office operations and dispatch. He ultimately was
promoted to the Store Support Center team in a leadership role. But a person in a
wheelchair needs to keep moving, and the job involved long hours and too much sitting.
Chris developed a life-threatening skin wound. His doctor told him he had to work less
to preserve his health. Life had to change again.
Chris Owens
Logistics Planner and Associate Since 1981, Chris changed course and brought his institutional knowledge, skills and relationships to
pictured with wife, Beth a logistics planning team. He gained backup, camaraderie and the ability to prioritize his
well-being.
The Home Depot’s summer 2020 internships quickly transitioned from in-office
opportunities to fully remote professional development experiences. More than 200
interns completed the program — about half from our stores, distribution centers and
contact centers.
“I created a public relations strategy to raise awareness among consumers and Pros
about our efforts to help fill the labor gap through trades training,” Michael says. His
project plugged into a key Home Depot priority: fostering career opportunities in our
communities and supporting our industry by helping to increase the number of skilled
carpenters, plumbers, electricians and more in the workforce. (Learn more on Page 105.)
Michael Villegas
Associate Summer Intern and Newly Michael, who for two years fit college classes around his MET schedule, graduated in
Promoted Public Relations Specialist December 2020. He is now is a PR specialist at the Store Support Center. “The
company had my back and gave me an opportunity to excel,” he says.
OPPORTUNITY AMID
ADVERSITY
As is true for everyone, everywhere, life “It was just an insane amount of volume,
changed dramatically in 2020 for associate and I realized that this was an opportunity
Ijumaa Shelton. The difference for Ijumaa, that might never present itself again,”
though, was that life largely got better. Ijumaa says. “I had to take advantage of it.”
Ijumaa, who works at our direct fulfillment He used his first few paychecks to pay off
center in Troy, Ohio, paid off his credit card every one of his credit cards. “That was
debt, helped a friend find work, treated such a huge weight off my shoulders,” he
himself to a new computer and gave a little recalls. Then he bought himself the parts
financial support to family members. He for a video-gaming computer and bought
began to see himself as a potential leader his sister a baby crib.
and to think of his two years on our supply
chain front lines as the start of a career. He persuaded a friend who had lost his job
because of COVID to come work at the
Amid all the chaos, sorrow and anxiety Troy DFC. Ijumaa’s pitch: The pay is good,
created by COVID-19, the pandemic also and The Home Depot is a place where you
created opportunity. The Home Depot can grow a career. That’s something Ijumaa
stayed open to serve our communities as understands better than ever. He’s jumping
an essential retailer, just as we’ve always at opportunities his bosses offer him to take
done during natural disasters. Customers on higher-level responsibilities. “Because of
suddenly spending much more time at home what happened in 2020, I’ve done almost
turned to us for air conditioners, appliances, every role at my level at the Troy DFC,” he
cleaning supplies, lumber, light bulbs and says. “I think I can do more.”
much more.
BENEFITS
Associates are at different life stages, and Financial Programs & Tools
our LiveTheOrangeLife.com benefits hub
Our people make The guides them to the right resources. With FutureBuilder 401(k): Associates can save
Home Depot successful, one click, associates can find support for for the future while taking advantage of tax
and it’s our responsibility wherever they are on life’s journey. For savings. Eligible associates who contribute
and privilege to take care example, the money module is the place to to the plan get up to 3.5% of eligible
of them. go for help with personal finance education compensation in matching contributions
or retirement planning. The elders module from the company.
provides guidance on everything from
finding caregivers for aging parents to Employee Stock Purchase Plan (ESPP):
negotiating the complexities of Medicare. Twice-a-year plans provide a 15% discount
on Home Depot stock. Associates who
In 2020, we assembled a COVID-19 enroll may set aside up to 20% of eligible
response team to help ease many of the pay (up to $21,250 annually) to purchase
challenges our associates faced because of stock.
the pandemic.
Personal finance education: All
As detailed on livetheorangelife.com/ associates have access to a suite of online
covid19, we enhanced pay, increased webinars, activities, tools and resources
flexibility in work schedules and provided designed to help them increase financial
COVID-related resources, including access knowledge and build the confidence that
to extended dependent care benefits, can help relieve money-related stress.
unlimited emotional and mental health
counseling and 24/7 access to telemedicine Alight Financial Advisors®: Associates
clinicians. We sent care kits to associates have access to independent advisory
diagnosed with COVID-19. The kits were services to help them gauge whether
packed with small comforts, like fleece they’re on track for retirement.
blankets, as well as personal medical
supplies. Read the story of an associate Insurance: To prepare for the unexpected,
who says the pulse oximeter included in his associates have access to policies for
COVID Care Kit helped save his father’s life, medical care, disability, life, home, auto and
Page 45. pet health insurance.
FOCUSING ON THOSE
WHO SERVE
Military service members and military spouses are resilient, resourceful and team-minded. Supporting them
is the right thing to do for our communities and our company.
S
erving military members, and kids,” he says. “My leaders are open
veterans and their families has to having conversations with me about
been fundamental at The Home making sure my military service won’t derail
Depot from the start. Our my career plans.
Military Relations department, launched in
2019 and expanded in 2020, fine-tunes that “It’s a night-and-day difference between
focus to make our company an even better the support I get at The Home Depot and
resource for those who serve, especially our the stories I hear from some of my fellow
many military-affiliated associates. guard members,” says Raukshaun, who
has recruited some of those fellow soldiers CHECK IT OUT
Raukshaun Pickens’ experience to our company. “I can’t think of a company The Home Depot supports
demonstrates how we support military that is better than ours at dealing with associates who are spouses
associates when they’re deployed. While employees’ military deployments.” of military members with
much of the world hunkered down, he transfers between our stores
reported for duty on multiple fronts. and distribution centers when
the military relocates their
In March 2020, the supply chain associate families. Hear from Amber
and combat medic in the Army National
Guard deployed to an overwhelmed
Made-to-Fit Benefits Bailey, a 7-year associate and
Navy spouse, about what that
hospital in rural Georgia to treat COVID-19 means to her family.
The Home Depot offers specialized
patients. Then he was called to the streets
benefits for veterans, military service
of Atlanta to keep the peace during protests
members and military spouses who are
demanding social change. After that,
Home Depot associates:
Raukshaun helped run COVID testing —
and, on July 4, tested positive for the virus • Military leave of absence
himself. • Military family international leave
of absence
After completing his missions, Raukshaun
returned to our direct fulfillment center in • Differential pay when activated or
Locust Grove, Georgia, in November. Back deployed
on the job as production planning manager, • Military Spouse Relocation program
he navigated record levels of customer
demand with the characteristic calm that
• Fellowships for transitioning service
has earned respect from his co-workers.
members
He attributes his on-the-job tranquility to • Support resources, such as
13 years in the military, including a tour counselors, financial advisers and
in Afghanistan. “Work stress seems very childcare assistance directories
manageable once you’ve been through
combat,” he says.
Family Support
Paid time off for any associate Extended dependent care
benefits and waived related Paid parental leave: Associates with at
who contracted COVID-19,
co-pays least one year of service who are having a
until released by a doctor
baby, adopting or fostering a child can take
six weeks of paid parental leave. This benefit
is available to both mothers and fathers.
Birth mothers are eligible for an additional
six-week paid maternity benefit.
Up to 14 days of paid time off Unlimited emotional and
mental health counseling visits Years Ahead™: Associates have access to
for any associate required by a
for associates, including a resources to plan for their elders, including
public health authority or the
resource toolkit to help with referrals to memory and hospice care
CDC to quarantine
stress and anxiety facilities and independent and assisted-living
communities.
Back-Up Care: We’ve partnered Healthy Life Health care support team: Grand
with Bright Horizons® to offer eligible Rounds® helps associates navigate
associates back-up care when: Aaptiv®: Offering thousands of health care for themselves and their
workouts, this trainer-led fitness family members. Associates also may
• Regular caregiver/stay-at-home app works for all fitness levels. On- receive a medical second opinion
spouse is unavailable demand virtual classes offered at no through Grand Rounds. The program is
cost to associates help boost mental free to associates.
• Associate is between childcare or and physical health through yoga,
adult/eldercare meditation, sleep support, running,
strength training and more. Daylight: This personalized app offers
• Child’s regular childcare center/
therapeutic ways to address worry
school is closed
and anxiety. The app, which is free to
• Associate is transitioning back to Take Care Of You: To assist with associates, provides help anywhere,
work after returning from leave the unique challenges brought on by anytime using proven behavioral
COVID-19, this new, free-to-associates techniques.
• Child or adult/elder relative is ill or
wellness hub provides resources to
needs assistance
help associates keep it all in balance
• Associate or spouse is recovering and focus on their mental and physical Access Hope: The Cancer Support
from surgery health and well-being. Program through AccessHope connects
associates and their family members
Sittercity®: An extensive database Flu prevention: Free flu shots are to leading experts from City of Hope, a
of background-checked babysitters, available for associates to protect renowned, comprehensive cancer center,
nannies, elder companions, pet sitters them and our customers during cold to support them through their cancer
and housekeepers is available to and flu season. journey. It’s provided at no cost
associates. to associates.
Health screening: Associates have
MetLife Legal Services®: This legal- access to biometric screenings with
assistance voluntary benefit provides their personal physicians or at a Quest
consultation and document review for Diagnostic Patient Service Center.
issues from adoption to wills, powers
of attorney, divorce, nursing home Tobacco cessation: Personalized,
agreements and more. one-on-one strategies and support DID YOU KNOW
are available at no cost to associates More than 90% of associates
to help them mentally and physically found value in the expanded
Educational Assistance prepare to quit.
benefits that The Home
EdAssist®: Associates have access Depot offered in response to
Sleepio®: Personalized program is
to academic and college financial available to help associates discover
the pandemic, according to
advisers to assist them in reducing the their sleep scores and reach their sleep feedback from associates in
time, cost and stress of pursuing their goals, so they can be at their best at our pulse survey in fall 2020.
educational goals. This program also home, work and in the community.
includes access to tuition discounts at
more than 200 educational institutions 24/7 care: Associates and family
nationwide. members they care for — including
elderly parents — have access to
Orange Scholars: This extension of Teladoc® virtual doctors for minor
The Homer Fund offers scholarships to illnesses and behavioral health
qualified children of hourly associates support from home anytime,
based on financial need, academic including after hours, on weekends
performance, community involvement and during holidays.
and leadership. Financial need is the
highest consideration. Learn more on
Page 46.
S
alvador Vaca Jr. was took it to Sal’s father, who used it to
feeling pretty rotten measure his blood-oxygen level, which
when his COVID Care was at 75% and dropping — well
Kit arrived. Sal, a store below the healthy mark of 95% and
associate in Aurora, Colorado, was above.
quarantining at home after contracting
the coronavirus. His brother left the Sal’s father went to the hospital and
package from The Home Depot outside stayed there for eight days. Hospital
Sal’s bedroom door. Down the hall, staff told the family that their father
Sal’s 64-year-old father, Salvador Vaca survived because of their quick
Sr., also was sick with the virus. response to his deteriorating condition.
In the Home Depot-branded bag were In Sal’s view, that package from The
creature comforts and some health- Home Depot deserves some credit,
check devices, including a pulse too. “The care kit helped us save our
oximeter that measures how efficiently dad’s life,” he says. “It came at the
blood is carrying oxygen through the perfect time — when we needed it the
body. During the pandemic, it has been most. For this I will always be grateful.”
a crucial tool for understanding in real
time how the virus is weakening the
respiratory system.
Sal texted a photo of the kit’s contents “The care kit helped us save our dad’s life. It came at the perfect time
to his sister, who works in health care. — when we needed it the most. For this I will always be grateful.”
She texted back: “I need Dad to check
his oxygen.” Sal put the pulse oximeter – Salvador Vaca Jr., Store Associate, pictured above with his father
outside his bedroom door. His brother
$215 million
Fund-backed resources to support their
financial well-being and decision making. In
2020, on-demand webinars offered guidance
on COVID-related emergency savings,
changes to student loans and FAQs on what
have assisted over 157,000 associates facing to do if a family member loses their job.
The Fund also provided fraud-awareness
unexpected hardships. resources to associates to help them avoid
falling victim to scams that proliferated amid
pandemic-fueled uncertainty.
2020 ushered in unprecedented hardships for our people, and The Homer Fund responded
When in-person classes abruptly stopped at her son’s school last spring, Miracle
Palmer, a store associate in San Antonio, Texas, thought the disruption would last a
couple of weeks. But those weeks turned into months.
Miracle needed to stay home to make sure Joel, who’s autistic, got the care and
engagement he needed during the day. “I had to help him with virtual learning. But
the real concern was the well-being of my son,” she says. “I was not able to return
to work, and, financially, that put a strain on us.”
Overwhelmed, she contacted The Homer Fund and got connected with a
representative. “I kind of just broke down to her and just told her all the concerns
that I was trying to hold together,” Miracle recalls. The response, a grant to pay
essential bills as she home-schooled her son, “blew away” her expectations.
Miracle Palmer
“With The Homer Fund money, we paid for our electric bill. We paid a water bill. Store Associate and Homer Fund
It assisted us with food. The Homer Fund just alleviated all of that. I could put my Grant Recipient
head down and rest. I could actually just relax,” Miracle says. “I’m so grateful.”
ASSOCIATE SAFETY
The Home Depot strives to provide a safe Preventing Injuries
working and shopping environment for our
Our people are our most We partnered with ergonomists on a
associates and customers. An important
important asset. By way we do this is by raising awareness program to prevent lifting injuries, which are
focusing on workplace of risks among both front-line associates among the most frequent types of injuries in
safety training and and leaders. When our people are our industry. The result was Lift It Close To
risk reduction, we help trained to recognize and correct hazards, Home, instruction that uses a lift-and-place
keep our associates and our workplace is primed for continual target to show associates how to minimize
strain on their shoulders and backs.
customers injury-free. improvement.
Previously reported data was updated to reflect enhancements to our internal reporting process and to account for maturity of claims. 2019 and 2020 data
sets reflect the fiscal year; 2018 data reflects the calendar year.
PROTECTION BY DESIGN
SPOTLIGHT
In a perfect example of ‘The Home Depot sprint,’ we brought together the right people and the right partners to
create long-lasting, good-looking shields to help protect front-line associates.
T
he mission was to reduce our at a problem and move fast. Chad and
front-line associates’ exposure colleagues Mark McGlon, Cary Outlaw,
to COVID-19, and do it ASAP. Robery Windisch and Sarmistha Boal,
In nine days, our store design who leads their team, compressed our
team — first meeting virtually, then drafting months-long process for developing store
blueprints in an associate’s basement- fixtures down to three weeks. And most of
turned-workshop, and finally building the work happened in just a few days:
models after hours in a couple of Georgia
stores — created a plexiglass shield that • March 24, 2020: Store design
is now protecting thousands of our people associates sketched shield designs.
every day. • March 25: A broad team of associates
from store environment, store “Nobody really knew
For associate Chad Thompson, a member operations, merchandising, MET,
of our in-store environment team, the technology, safety, procurement, for sure what the
assignment was both professional and logistics and project management met coronavirus was and
personal. He was determined to find with five suppliers invited to create
prototypes. how it spread. But
a sustainable, functional way to better
safeguard associates against the virus. One • March 26-30: Suppliers created if there was even a
of the associates he wanted to protect was sample shields with regular input from
our Home Depot team, which was
small chance that a
his daughter, Atley Thompson, who works
on the customer service desk at Store 1777 collecting feedback from associates plexiglass shield could
testing shield prototypes at Store
in Kennesaw, Georgia. block those germs, we
1777, a new store footprint, and Store
“It was mid-March 2020, and at that point, 106, a legacy-layout store that’s also needed to find a way
nobody really knew for sure what the in Kennesaw. to do it.”
coronavirus was and how it spread. But • March 31: Our team selected the final
if there was even a small chance that a design. – Chad Thompson, pictured
plexiglass shield could block those germs, • April 1: Manufacturing began. above with his daughter
we needed to find a way to do it,” Chad Atley Thompson
recalls. The question was how to design New England Wire Products, based
shields that would work in our stores. in Massachusetts, was chosen as the
The shields would need to withstand supplier because the company is a
run-ins with carts piled with heavy goods longtime Home Depot partner and had
like lumber. They had to improve safety,
not interfere with it. They needed to
allow accessibility and maneuverability
for associates and customers using
wheelchairs and other adaptive devices.
>
Our COVID-19 plexiglass shield team compressed a months-long fixture development
process to three weeks in March 2020 to get shields to stores — then paused for a
celebratory photo at Store 106 in Kennesaw, Georgia.
OPERATE
SUSTAINABLY
RESOURCES
Science-based target to
reduce emissions
40% by 2030,
50% by 2035
Procure/produce
335 megawatts
of renewable or alternative energy
by 2025
Eliminate
EPS foam &
PVC film from our
private-brand packaging by 2023
CARBON FOOTPRINT
The Home Depot uses the GHG Protocol
Corporate Accounting and Reporting
By driving efficiencies
and investing in green
Standard, which has been adopted by
numerous companies worldwide to calculate
2020 RESULTS
energy, we reduced our metric tons of greenhouse gas emissions and
absolute Scope 1 and 2
carbon emissions by over
efforts to reduce them. We continually review
and refine our emissions measurements
Scope 1:
127,000 metric tons in to reflect changes to our business and Direct emissions from
2020. improvements in data collection and combustible sources
reporting. and refrigerants totaled
approximately 607,000
We participate in the CDP® reporting process. metric tons.
CDP, formerly the Carbon Disclosure Project,
is an independent, international, nonprofit
organization that provides a global system for
companies and cities to measure, disclose, Scope 2:
manage and share environmental information. Indirect emissions from
purchasing electricity
We received a score of A- from CDP for totaled approximately
our latest report, reflecting our leadership 1,214,000 metric tons.
and high level of action on climate change
mitigation, adaptation and transparency.
STORE OPERATIONS
The Home Depot’s aim to use resources In 2020, our U.S. stores reduced
efficiently is driven by business demands. electricity use by more than 14% year
Using resources wisely is
But we are proud that the effort we put into over year. We boosted our alternative
a smart business strategy
reducing our consumption of electricity and and renewable energy capacity by more
that also makes our water also is good for the planet. than 13%, compared to 2019. We also
store operations more signed onto new off-site solar projects
sustainable. Across our U.S. stores, we’ve cut electricity that will significantly increase our solar
use 44% since 2010. We far surpassed capacity by 2023.
our goal, set a few years ago, to reduce
store kilowatt-hour electricity use 20% In addition, we increased our focus
by 2020. This progress emerged from a on saving water, implementing smart
diligent, business-centered focus to identify irrigation systems capable of reducing
unnecessary electricity consumption and our irrigation-related consumption by
curb it. We did that by installing LED lighting, approximately 30% at almost 450 U.S.
efficiency-driving building automation stores. The following pages describe
systems, updated air-conditioning and some of the ways we are making
heating systems and more. progress.
The Home Depot invested $56 million in LED lighting upgrades in 2020, continuation of an effort that began in 2018. One result: Brighter stores.
2020
2014
2018
2016
2019
2013
2015
2012
2017
Upgraded stores see electricity
2011
consumption drop by about 30%,
on average, compared to using 0
conventional lighting. Plus, the stores
benefit from brighter aisles and better
control over their technology-enhanced
50
lights. For example, stores can
selectively dim some areas of the store
and leave others fully lit after hours,
when associates are restocking but 100
customers are not shopping.
300
WHAT’S SO GREAT
350
ABOUT LEDS?
The benefits are similar in
customers’ homes and our stores:
400
• Reduced electricity and lighting Annual reduction in millions
maintenance costs of kilowatt hours (kWh)
• Lower electricity use that 500
contributes to a smaller carbon
footprint
• Brighter pathways that increase
safety and improve aesthetics
Solar Energy Fuels Our Future Finally, our contracts with solar energy
providers in Delaware, Massachusetts and
We’ve pledged to have 100% renewable
Minnesota support the addition of new
electricity for all Home Depot facilities
solar power to the grid in these areas.
worldwide by 2030. It’s an expansion
of our previous commitment to buy or
produce 335 megawatts of renewable or
alternative energy by 2025. Harnessing
power from the sun will be crucial to our
Smart Irrigation Saves Water
success; we anticipate about three-
and Money
quarters of our alternative and renewable We conducted a pilot program across
energy capacity will come from solar by 59 stores in 2019 and 2020 that showed
the end of 2023. us the potential impact of applying our
detailed focus on conserving electricity
We’ve announced plans to purchase to conserving water. The pilot stores saw
solar power from three facilities, their irrigation-related water use shrink by
providing a collective 225 megawatts of approximately 30%. So, in the fall of 2020,
renewable energy capacity, enough to we installed smart irrigation water systems
power 450 stores. in another 384 U.S. stores.
At 203 stores, fuel cells The energy capacity we Building automation systems
produce over 90% of the purchase from the Los in all U.S. and Canadian
store’s electricity needs Mirasoles Wind Farm in stores monitor conditions, such
and reduce emissions. McAllen, Texas, is enough as indoor temperature and
wind power to run 120 exterior light levels, reducing
Home Depot stores. electricity consumption and
maintenance costs.
BECOME A
CAREER EXPLORER
Associate Jordan Wallace’s Home Depot get LEDs installed in our store ceilings. He
career path has covered a lot of ground. He draws on his understanding of logistics and
started with our company nine years ago on technology, as well as his ability to pay close
the supply chain team. Then he moved to attention to even the smallest details.
digital marketing. Now he’s a senior analyst
in building services and deeply involved with When our LED project was at its peak in
our store evolution. His career path may 2019, Jordan was coordinating installations
surprise you, but it was a carefully crafted for 30 stores a week. The overhaul was a
plan — one that shows how our investments big driver of our more than 14% drop in
in sustainability can help our associates U.S. store electricity use in 2020. By the
and the environment, while advancing our end of fiscal year 2021, all U.S. stores are
business strategy. expected to have interior lighting upgraded
to LEDs.
A few years ago, Jordan was on the
homedepot.com team when our CEO Craig Jordan believes any associate can chart a
Menear announced our company would be career as varied, interesting and rewarding
investing billions of dollars in stores. “I knew as his. “If you have the willpower, you can
that would create opportunities,” Jordan make your own path,” he says. “The Home
says. So he started looking for operations Depot has so many great opportunities. You
jobs that interested him and aligned with his shouldn’t limit yourself to just one.”
skill set.
SUPPLY CHAIN
3 ECO-FRIENDLY
We’ve made significant progress on our One
Supply Chain plan, announced in 2017, to
SUPPLY CHAIN
By making our supply INNOVATIONS
invest $1.2 billion to fund about 150 new supply
chain more efficient, we
chain facilities nationwide.
reduce business costs
and the impact that our By the end of 2020, we had added over 30 1
product distribution has distribution centers, increasing speed to final Zero-emission hydrogen fuel
on the environment. destinations and reducing miles traveled for cells power forklifts.
goods processed through these facilities.
DID YOU KNOW: We participate in the U.S. Environmental Protection Agency’s SmartWay®
program to collect and report greenhouse gas emissions data from corporate supply chains. The
Home Depot is a six-time recipient of the SmartWay Excellence Award.
In 2020, we installed hydrogen We sell available space on our By partnering with suppliers
fuel cells at nine U.S. supply trucks and buy space from to forgo pallets, we can stack
chain facilities, giving us 12 other companies, ensuring products to the top of trailers,
locations with emissions-free fewer underloaded trailers hit resulting in as much as a 40%
fuel for forklifts. We estimate the road. That space sharing reduction in truck space needed
these fuel cells helped us reduce saves about 2 million driven to transport some goods.
electricity consumption by about miles a year.
16 million kilowatt hours in 2020.
SOURCING RESPONSIBLY
ETHICAL SOURCING
We owe it to our customers, associates If suppliers fail to improve, we may terminate
and communities to further the collective our business relationships with them.
We support suppliers
commitment to human rights, safety and Equally important, we support factories
that take action toward environmentally sound practices through that take action to create lasting social and
maintaining our collective ethical sourcing. We engage our suppliers environmental compliance programs. We
commitment to human in this commitment by purchasing products encourage suppliers and factory workers
rights and safety in our made in factories that adhere to our to communicate concerns via processes
supply chain. responsible sourcing standards. We report outlined in our corporate Code of Conduct.
on our progress in an annual Responsible
Sourcing Report.
Our responsible sourcing audits are
Our Responsible Sourcing Standards designed to assess compliance in
mandate that suppliers and factories abide these areas:
by all applicable international and local laws,
rules and regulations in the manufacturing • Laws and regulations
and distribution of merchandise or services • Child labor
provided to us. We conduct audits around
• Forced labor
the world to ensure compliance with our
responsible sourcing standards. • Harassment and abuse
• Compensation
Suppliers must keep on-site documentation • Hours of work
that demonstrates compliance with our
• Non-discrimination
responsible sourcing standards. They also
must allow Home Depot associates and/ • Freedom of association and
or representatives full access to production collective bargaining
facilities, worker records, production records • Health and safety
and workers for confidential interviews
• Environment
in connection with monitoring visits. We
expect our suppliers to promptly correct • Subcontracting
any noncompliance, starting with timely • Communication
preparation and presentation of a corrective
• Business ethics
and preventative action plan. We also re-
audit supplier facilities, with the frequency • Monitoring and compliance
depending on their performance in prior audits.
1,437
factory audits
and 1,575 follow-up
visits were conducted in
34 countries under our
responsible sourcing
policy in 2020
239
factories
were audited for
compliance at peak
production
81
subcontractors
were audited in 2020
SOURCING RESPONSIBLY
CONFLICT MINERALS
Our company expects all suppliers that Through our due-diligence process,
manufacture our products to provide which aligns with guidance from the
We work with our
appropriate information and conduct Organisation for Economic Co-Operation
suppliers to ensure they due diligence to enable our compliance and Development, we received 100%
implement responsible with conflict minerals laws. We also participation from our in-scope private
sourcing and encourage expect these manufacturers to obtain brands and proprietary-product Tier 1
their smelters to products and materials from suppliers suppliers.
obtain “conflict-free” that are not involved in funding conflict
designations. in the Democratic Republic of the Congo Thirty-two percent of our in-scope
(DRC) and adjoining covered countries. Tier 1 suppliers indicated that one or more
We partner with our private brands and conflict minerals were necessary to the
proprietary product suppliers whose functionality or production of covered
products contain tin, tungsten, tantalum products, down from 44% in 2019. Of
or gold (referred to as 3TG) to identify the smelters or refiners reported by these
the source of any of these minerals in the suppliers, only 49 out of a total of 304
supply chain. uniquely identified smelters or refiners
sourced conflict minerals from covered
countries. All of these smelters or refiners
were certified as DRC conflict-free by the
2020 Progress Responsible Minerals Initiative, the London
As detailed in The Home Depot’s Conflict Bullion Market Association and/or the
Minerals Report for the year ended Dec. Responsible Jewellery Council. However,
31, 2020, our efforts focused on collecting a small number of suppliers below the Tier
and disseminating information about the 1 level were unable to complete chain-of-
sourcing practices of our suppliers. We custody surveys back to the level of the
cataloged that information in a database smelter or refiner.
using the conflict minerals reporting
template developed by the Responsible We continue to work closely with our
Minerals Initiative® (formerly the Conflict- suppliers to ensure they implement
Free Sourcing Initiative, or CFSI). We report responsible sourcing; obtain current,
this data for the calendar year, rather than accurate and complete information
our fiscal year, in line with U.S. Securities about the supply chain; and encourage
and Exchange Commission rules. their smelters to obtain a “conflict-free”
designation from an independent third-
Our in-scope Tier 1 suppliers increased party auditor.
to 91 in 2020 from 71 in 2019. In 2020,
as part of our annual assessment of
products in scope, we continued to
exclude any supplier of products where the
supplier merely affixed company brands,
trademarks, logos or labels to generic
products manufactured by a third party, as
permitted by SEC guidance.
SOURCING RESPONSIBLY
SUSTAINABLE FORESTRY
The Home Depot’s focus on selling products The Home Depot’s Wood
made from sustainable sources of wood
Our goal is to create
dates to 1994, when certified-sustainable
Purchasing Policy outlines our
transparency in how wood shelving first arrived in our aisles. commitment to:
global forest resources We recognize the environmental impact
are used in our products. our company can have on the world’s • Give preference to the purchase of
woodlands by working with suppliers wood and wood products originating
that adhere to set standards of forest from certified, well-managed forests
management and tree species selection. wherever feasible.
To help protect endangered forests and
support efforts to preserve timber for • Eliminate the purchase of wood and
future generations, we established a Wood wood products from forest regions
Purchasing Policy in 1999 and continue to identified as endangered.
update it.
• Practice and promote the efficient and
We are proud of our ability to create positive responsible use of wood and wood
change by encouraging sustainable forestry products.
practices. We strive to better understand
the social and economic effects that wood • Promote and support the development
purchases have around the world, especially and use of alternative environmental
in regions with endangered forests. products.
GREENER PRODUCTS
Eco Options Eco Actions
Our greatest environmental The Home Depot’s Eco Options program Our new Eco Actions program provides
impact comes from the helps our customers identify products that our customers with resources they need
products we sell, and our have less of an impact on the environment to take individual action on environmental
biggest opportunity to and encourages our suppliers to provide issues. Projects cover everything from how to
create change is helping more sustainable offerings. compost to tips for saving water and what to
customers live more consider if you’d like to switch to solar energy.
We launched Eco Options in 2007 in
sustainably.
partnership with SCS Global Services, a It’s another way we’re promoting change for
leading, independent, third-party certification the better by helping our customers create
body that validates environmental claims. greener homes.
CHECK IT OUT
Our new Eco Actions website offers
insights and ideas on how people can do
their part in their homes and gardens to
create meaningful change.
Our Eco Options label makes it simpler for customers to identify products that can help reduce their
households’ impact on the climate, the planet and natural resources. Discover a few products in the
program below, and learn more about our Eco Options product standards on Page 70.
1 2 7.
Organic Pest Control Composite Decking
Bonide Neem Oil is an all-
®
Trex® Enhance Naturals is made
purpose insecticide, miticide and Made from 95% recycled plastic
fungicide that is approved for and wood and offers a
organic gardening and kills all 25-year guarantee not
stages of insects. to warp or fade.
- Responsible Chemistry - Circularity
3 Organic Gardening 6.
The Performance Organics™ line
from Miracle-Gro is Organic 5.
Materials Review 1.
Institute (OMRI) listed for
organic gardening.
- Responsible Chemistry
2.
3.
4 Smart Irrigation System
Save up to 50% on water use with
technology that taps weather and 4.
other data. Certified by the U.S.
Environmental Protection Agency’s
WaterSense program and Smart Water
Application Technologies®.
- Water Conservation
CHECK IT OUT
10 Energy-Saving Windows
Discover more ways to create Installing Energy Star-certified
an eco-friendly home. Click windows, doors and skylights can
through our interactive guides. shrink electricity bills and emissions.
Learn more about our energy-saving
8. products on Page 82.
- Carbon Emissions
9.
11 Energy-Saving Air Conditioning
A new Energy Star-certified room air conditioner uses
an average of 10% less energy per year, compared to
10. conventional models, according to the EPA.
- Carbon Emissions
11.
12
Composters
12. 13. Turn food scraps into soil-
enriching nutrients for more
productive gardening and less
household waste.
14.
- Circularity
13 14
Compostable Paper
Lawn Refuse Bags Shade Tree
Avoid plastic in your compost Plant on south and west sides
by using sturdy paper bags that of house to reduce AC energy
biodegrade along with the lawn use by 50% in the summer.
clippings inside them.
- Carbon Emissions
- Circularity
CIRCULARITY
Our focus on circularity reflects our aim
to prevent products and packaging from
We support the circular
becoming trash. The foundation comes
economy by reusing, from nature: Nothing is wasted, and
repairing, refurbishing and everything is regenerative.
recycling and encouraging
our suppliers to do the We strive to offer products with a
same. positive environmental impact, and we
encourage suppliers to innovate in how
they produce and package products for
reuse and longevity. We carry more than
2 million products, and many have the
potential to move our economy toward
circularity.
RECYCLE
see more on Page 76
RECYCLE by separating and
collecting raw materials from 82,000 tons of metal
our own waste streams, and
1.2 million pounds of rechargeable batteries; see more on
working with our suppliers to Page 91
turn them into new products.
2 million pounds of obsolete technology assets
REPAIR items in our stores 12,500 customer tool repairs referred to third-party service
and for our customers to extend providers
REPAIR
the life of products and avoid 55,600 repairs of our Tool Rental equipment
the energy emissions from
manufacturing replacements. 57,000 repairs of store-owned tools
In partnership with our supplier Trex, The Home Depot transforms more than 8,000 tons of plastic
shrink wrap a year into decking that doesn’t rely on wood. Here’s how it works:
Home Depot stores send plastic waste Trex transforms it into wood-alternative
to our return logistics centers (RLCs) decking and other outdoor materials
SQUEEZING NEW
LIFE OUT OF WASTE
Associate Lindsey Tornello is curious. One “I appreciate the support I receive to think
day she saw a garbage truck leave a Home strategically and creatively. Having that
Depot facility with a full but lightweight support makes all the difference in my
load. What is it? she wondered. Lindsey, ability to make lasting, impactful change,”
who manages our sustainability and Lindsey says.
recycling initiatives, followed the truck
and watched it dump a pile of expanded The pilot program sparked by curiosity
polystyrene (EPS) foam into a landfill. She kept about 89,000 pounds of EPS out
thought: There must be a better way. of landfills in 2020. Now we’re expanding
it with plans to add more than 100 EPS
She pitched the idea of using a compressors across our operations.
compressing machine to shape leftover
EPS packaging into blocks that could
be repurposed for insulation and other
products. Our company said yes, and a
pilot program was born.
RESPONSIBLE CHEMISTRY
At The Home Depot we understand we OUR COMMITMENT
are responsible for the environmental
We’re addressing
impact of our organization. In partnership • The Home Depot is committed to
chemicals of concerns with stakeholders throughout the supply increasing our assortment of products
in our products and chain, we are committed to offering that maintain third-party certifications of
providing transparency products that are safer for the environment their chemical ingredients, and that meet
into our approach in and our customers. high environmental standards.
our regularly updated
Chemical Strategy. With our encouragement, our suppliers • We encourage suppliers’ efforts to
have been investing in developing improve chemicals in categories with the
environmentally innovative products. The greatest potential impact on indoor air
Home Depot supports the work of the quality.
Green Chemistry & Commerce Council
(GC3) through annual membership and
• We conduct periodic assessments of
participation in the Retail Leadership
key categories to track progress on
Council of the GC3, and we participated
environmental innovations in green
in developing the GC3’s Joint Statement
chemistry.
on Using Green Chemistry and Safer
Alternatives to Advance Sustainable
Products. The Home Depot evaluates our Chemical
Strategy annually to ensure our approach
We and our suppliers also partner and goals are appropriate and meet the
with respected third-party certification needs of our stakeholders.
organizations and environmental nonprofits
that guide the home improvement industry
toward safer chemical ingredient use.
In addition to the restricted substance
categories listed on the following pages,
we are working with our suppliers to reduce
neonicotinoids and methylene chloride in
products. The Home Depot is committed
to continuing the drive toward minimizing
the environmental impact of the products
we sell.
CHECK IT OUT
Want to make your home more
sustainable? Change what’s right
under your feet with eco-flooring.
ENERGY-SAVING
PRODUCTS
The Home Depot encourages suppliers to
make the products we sell more energy
Customers who use our
efficient, and our partnership with the U.S.
energy-saving products
Environmental Protection Agency’s Energy
reduce their power bills Star® program supports those efforts, too.
and their impact on the
planet. In 2020, we exceeded our stated multiyear
goal to help our customers save $2.8 billion
on utility bills through the purchase and
proper use of energy-efficient products.
Energy Star-labeled products were key
to that progress. In 2020, we offered over
23,000 energy-saving products in stores and
online, including more than 8,000 Energy Star
products. We sold more than 159 million units
of Energy Star products.
WATER-SAVING
PRODUCTS
We work with suppliers to encourage the WaterSense® label, and we sold over 20
production of water-conserving products, million units of those WaterSense products.
The Home Depot helps
which we, in turn, offer to our customers.
protect water resources Our greatest opportunity to effect We estimate our customers’ purchases of
nationwide by selling environmental change for the better is by WaterSense products in 2020 helped reduce
products designed to selling eco-friendly products that help drive annual water consumption by over 60 billion
conserve. efficient use of resources in communities gallons, which would collectively mean
across the United States. savings of more than $726 million on water
bills.
In 2020, we exceeded our stated multiyear
goal to help customers save 250 billion Every drop of water counts, and we do our
gallons of water through the purchase and part to help ensure it’s used economically.
proper use of our water-efficient products. For example, all showerheads sold in our
In stores and online, we offered nearly U.S. stores have a maximum flow of 1.8
10,000 water-saving products, including gallons per minute, which exceeds the
more than 4,000 products bearing the EPA’s WaterSense standard.
All toilets sold in Home Depot stores in the U.S. bear the WaterSense label.
GARDENING
The Home Depot partners with our growers Native Plants
and suppliers in advance of each growing
Our partnerships with Native plants contribute to the health of
season to offer healthy trees, blooms and
local growers enable edible plants that support local environments ecosystems and pollinators. Our growers
us to offer healthy, and pollinators. Our gardening product work closely with U.S. states’ departments
environmentally offerings are informed by our understanding of agriculture to identify invasive plants
beneficial plants, reduce that backyards, balconies and patios are that may threaten local native plants.
emissions and support well-being retreats for our customers and
businesses in the mini-ecosystems that have an impact on Supporting Local Growers
communities we serve. their surroundings.
We are proud to partner with more than
140 plant growers who balance the
impact of their production with local
Growing Organic environmental issues and growing
We offer more than 25 varieties of organic, conditions in their regions.
non-GMO vegetable and herb plants grown
according to methods approved by the U.S.
Department of Agriculture (USDA) National
Organic Program. Only products that have
been certified as meeting the USDA’s
organic production and handling standards
may carry the USDA Organic seal.
1 2 3 4 5
The company was Turf Builder® products Ortho® outdoor garden ScottsMiracle-Gro The company’s
founded in 1868 by a are phosphorus-free, maintenance products incorporates about GroMoreGood initiative
hardware store owner in helping reduce water are produced without 5 billion pounds of aims to help connect
Ohio; today its Scotts®, pollution from runoff. neonicotinoids, which can recycled green waste into 10 million young people to
Miracle-Gro® and Ortho® harm pollinators. its products every year. gardens and green spaces
brands are among the by 2023.
most recognized in the
industry.
Learn more about The Home Depot’s Eco Options program on Page 70.
Performance Organics Bonnie Plants Organics are Alaska Fish Fertilizer’s rich Bonide Tomato & Vegetable
delivers Miracle-Gro USDA-certfied organic and organic matter nourishes the 3-in-1 spray defends against
results you expect using give you a head start on soil to enhance the strength pests and fungal diseases,
ingredients you want. your harvest. and vigor of your plants. indoors and outdoors.
CHECK IT OUT
Our Eco Actions tips
and get-started video
guide novice gardeners
through creating their
first organic garden.
CLEANING
A home should be a healthy environment. That’s why The Home Depot offers environmentally
preferred cleaners that carry third-party certifications validating their eco-friendly claims.
In partnership with
Cleaning products that are non-toxic, biodegradable, free from harmful chemicals, plant-based
stakeholders throughout and not tested on animals allow our customers to achieve clean and green homes.
our supply chain, we are
committed to offering
products that are safer
for our customers to use
in their homes.
Identifies products that use Identifies products that Leaping Bunny label
safer chemical ingredients meet emissions standards certifies no animal testing in
without sacrificing for helping reduce indoor manufacturing
performance air pollution and risk of
chemical exposure
GREENER
CLEANING
Cleaning products have
an important impact on
the environment inside
homes and beyond.
We are committed to
partnering with suppliers
that allow us to increase
CLR® products are Method® products are Ecos® ensures every
our customers’ eco-
formulated to be safe made with non-toxic, ingredient is the safest in
friendly cleaning options.
for consumers and naturally derived formulas its class, earning EPA’s
the environment. The that are never tested on Safer Choice Partner
company has earned the animals. They’re certified of the Year multiple
U.S. EPA’s Safer Choice by Cradle to Cradle and times. The company also
Partner award multiple packaged in recycled practices zero-waste
times. plastic bottles. manufacturing.
1 2 3 4 5
The company’s founder Based in Vancouver, Biokleen products The company’s ultra- All products are
formulated Biokleen’s Washington, the company are packaged in concentrated cleaning manufactured using cold
first plant-based cleaner celebrated its 30th No. 1 (polyethylene products save water water to reduce energy use.
in a makeshift lab in his anniversary in 2019. terephthalate) and in the manufacturing
garage. No. 2 (high-density process and allow them
polyethylene) plastics to be packaged in smaller
because they’re commonly bottles.
accepted by curbside
recycling programs.
Learn more about The Home Depot’s Eco Options program on Page 70.
RESIDENTIAL SOLAR
Solar energy is the most abundant energy Nationwide and across all solar suppliers,
resource on earth, and, after solar panel residential solar deployment in 2020 fell
Our solar partners have
installation, it has zero environmental below the 18% annual growth reported in
installed systems that 2019 because residential installations were
impact. That makes it one of the cleanest
generated more than and most sustainable sources of power. significantly slowed by the pandemic in the
330,000 kilowatts of By partnering with Sunrun, The Home first half of 2020. But by the end of the year,
clean energy for our Depot makes it easier for our customers installations of residential and commercial
customers since 2016. to generate clean energy at home. solar systems were expanding rapidly. Solar
accounted for 43% of all new electricity-
generating capacity in the U.S. in 2020,
The solar energy system from our supplier according to the Solar Energy Industries
is able to send excess power from Association (SEIA).
customers’ homes back to the electric
grid. That enables the whole community
to benefit from clean power from the sun.
Some utilities even offer solar credits to
customers, essentially buying the extra
solar power their homes produce.
11%
residential solar installations
WASTE MANAGEMENT
& RECYCLING
Hazardous Materials Disposal Receiving and central storage—
Appropriate procedures for handling,
We’re committed to & Handling accumulating, storing, labeling and
properly managing waste. We seek sustainable methods of disposal, inventorying hazardous waste and separating
We partner with vendors and, in 2020, our company recycled or potentially incompatible materials
to keep improving how reused for energy 32% of the hazardous
we and our customers waste generated from our operations and Inspections of key areas—Routine
reduce, reuse and recycle. customer returns. We properly disposed of inspections of garden areas, parking lots and
the remaining waste. store entrances identify potential problems;
scheduled sweeps of fertilizer aisles and
parking lots help protect against hazardous
Associate Training & Resources materials entering the environment
SUSTAINABLE
PACKAGING
The Home Depot’s packaging team works PVC film is a thin, rigid synthetic plastic
Our packaging with our private-label product suppliers to polymer that’s molded around products to
apply science to creating better packages. secure and protect them. But, like EPS, it
innovations reduce
Our goals are to reduce package footprints is tough to recycle and takes a long time
waste, increase shipping and use more sustainable materials to to break down naturally, and we’re working
efficiency and decrease secure and protect the private-label hard to use less of it.
product damage. That’s products we sell. From 2017 through 2020,
good for the planet and our packaging innovations allowed us to:
In 2020, we committed to eliminating EPS
our business.
and PVC from our private-label packages,
• Redesign 366 packages to reduce size
prompting us to dig even deeper for results.
and materials
BY THE
NUMBERS
49 873,200 961,100
packages cubic feet square feet
were redesigned in of EPS foam was removed of PVC film was
2020 to reduce size from our private-label eliminated in 2020, too,
and materials packaging in 2020 — enough enough to cover 16
to fill 441 school buses football fields
RETHINKING WHAT’S
INSIDE THE BOX
In 2020, our ongoing effort to find more sustainable substitutes for expanded polystyrene (EPS) foam led our packaging
innovation team to the ceiling fan aisle. Fan blades and electronic parts for years have been packed in EPS. But the foam
takes up a lot of space, and it takes a long time to biodegrade. So, we made a big change to smaller, greener packages for
our private-label fans. Here’s how we did it.
Smaller packages
decrease demand for
space on cargo ships
and trucks, helping
On average, using molded reduce emissions
pulp instead of EPS can
shrink package size 15%
PARING DOWN
SPOTLIGHT
SINGLE-USE PLASTICS
Our multiyear partnership with suppliers continues to reduce virgin plastic in the products
we sell. In 2020, more than 200 products were redesigned to shrink single-use plastics —
following on remarkable progress made in 2019. Here’s a sampling of success.
100 million+
3.
POUNDS OF VIRGIN 4.
PLASTIC REPLACED
with recycled plastic in 2020
2.
1.
1 American Plastics®
The blue ribbon for plastic reduction goes to
American Plastics® for their “4R” initiative: Rethink,
Reduce, Reuse, Recycle, which in 2020 helped the
company replace 100 million pounds of virgin plastic
with recycled plastic in products like storage totes.
2 QEP®
By taking away virgin plastic in
packaging for its tile and carpet tools, DID YOU KNOW
QEP removed 78,200 pounds of
Using less plastic in shower door hardware
plastic from its manufacturing stream.
In addition, the company added enabled Liberty Hardware® to remove 4,827
5% reground plastic in tile spacers, pounds of plastic from its products in 2020.
converting 26,700 pounds of virgin
plastic to recycled.
60%
Recycled plastic containers can recover Every year, East Jordan Plastics recycles
upwards of 60% of the energy tied to more than 16 million pounds of used
initial product processing. plastic containers, equivalent to roughly
DID YOU KNOW 1,000 semi-truck loads of containers.
Behr is making paints
greener inside and out by Our Plant Pot Recycling Program accepts containers with these resin codes:
reducing certain chemicals
and by converting paint
cans to 100% recycled
plastic. Learn more about
Responsible Chemistry on
No. 2 No. 5 No. 6
Page 78.
High Density Polyethylene Polypropylene Polystyrene
STRENGTHEN
OUR
COMMUNITIES
RESOURCES
$50 million
Home Depot Foundation invests in
improving veteran housing, supporting
communities affected by natural
disasters and training skilled tradespeople to train 20,000 skilled
to fill the labor gap. Team Depot, our
tradespeople, including veterans
associate volunteer force, provides
hands-on project support to further the
Foundation’s mission and impact.
By 2025,
the Foundation will contribute
$500 million
to veteran causes with a
focus on housing
COMMUNITY
PARTNERSHIPS
Our local and national partners represent • Hispanic Association on Corporate
Our partnerships with the diversity of our associates, suppliers Responsibility
organizations that and communities. Since 2017, we have • Human Rights Campaign
committed more than $35 million to • Minority Business Development Agency
promote diversity, equity
organizations working to improve social • NAACP
and inclusion reinforce equity. Organizations that help us further our • National Action Network
our support to the commitment to communities include: • National Association of Asian American
communities we serve. Professionals
• National Association of Chinese-
Americans
Diversity Alliances • National Center for American Indian
• 100 Black Men of America Enterprise Development
• 100 Black Men of Atlanta • National Council of Negro Women
• American Corporate Partners • National Hispanic Corporate Council
• ATL Action for Racial Equity • National LGBT Chamber of Commerce
• Business Coalition for the Equality Act • National Minority Supplier Development
• CEO Action for Diversity and Inclusion Council
• Congressional Black Caucus Foundation • National Urban League and local affiliates
• Congressional Hispanic Leadership • Network of Executive Women
Institute • Rainbow PUSH Coalition
• Executive Leadership Council • Second Chance Business Coalition
• Georgia Minority Supplier Development • Trumpet Awards Foundation
Council • U.S. Hispanic Chamber of Commerce
• Hispanic Alliance for Career Advancement • U.S. Pan-Asian American Chamber of
Commerce
PARTNERS IN ACTION
Talent Acquisition
Arts • AfroTech
• Alvin Ailey American Dance Theater • AnitaB.org (Grace Hopper
• Atlanta Music Project Celebration)
• True Colors Theatre Company • Black Data Processing Associates CHECK IT OUT
(BDPA) Meet Fahim Siddiqui, a Home
• Dice Diversity-Focused Virtual Career Depot IT leader and member
Fairs of The Carter Center board of
Housing • Fairygodboss councilors, who was recognized as
• HBCU Battle of the Brains one of the 100 Most Influential
• Atlanta Habitat for Humanity
• HBCU Career Development Georgia Muslims by the Islamic
• Atlanta Neighborhood Development
Marketplace Speakers Bureau. “It is with great
Partnership (ANDP)
• International Slumber Party pride that I represent Home
• Community Solutions Depot’s culture and values,
• Latinas in Tech
• Grove Park Foundation especially respect for all people.
• Military Friendly Employer & Spouse
• HouseProud One of the many benefits of
Employer
• Mary Hall Freedom House giving back is the opportunity to
• National Black MBA Association
• Meals on Wheels Atlanta Home Repair expand one’s perspective and gain
• StartOut (HackOut)
• Quest Community Development appreciation for other cultures.”
• Women in CyberSecurity
Organization
• Women Who Code
• Veterans Empowerment Organization
• Westside Future Fund
SUPPLIER DIVERSITY
At the Home Depot, we envision a culture businesses. We’re working to better ensure
Doing business with that brings people together to solve problems that a portion of the money we spend on
a diverse group of and create meaningful solutions. We believe products and services, even with suppliers
our diverse supplier program increases that are not identified as diverse, makes its
suppliers provides us
shareholder value, drives innovation and way to diverse enterprises.
with unique ideas, creates positive economic impact in the
different perspectives communities we serve. In 2020, we increased The Home Depot provides supplier
and innovative products our year-over-year spending with diverse development and mentoring to assist with
that meet the needs of suppliers to $3.2 billion. business growth, and we partner with
our customers. organizations that provide certification,
Diverse businesses are identified as U.S. education and opportunities for capital and
based, for-profit and 51% or more owned, networking.
controlled and operated by U.S. citizens or
people with U.S. permanent resident alien
status that fall under one of the following
categories:
• Woman
National Minority Supplier
• Ethnic minority Development Council
• Veteran
DID YOU KNOW • LGBTQ
In 2020, we presented our • Individual with a disability
inaugural Supplier Diversity U.S. Pan Asian American Chamber of Commerce
Innovation Award to Tricam We are developing a Tier II supplier diversity
Industries for its innovative program that aims to drive more spending
Gorilla ladders. from our direct Tier I suppliers to diverse
PARTNERS IN GROWTH
100+
DID YOU KNOW campus
The Home Depot increased its total Retool Your School funding in 2021 to $1 million, improvement projects
backing 30 projects with grants of $20,000 to $75,000 per school. funded since 2009
CHECK IT OUT
Fisk University, Meharry Medical College
and Tennessee State University are
distinct HBCUs with distinct legacies and
vibes. But these Nashville-based schools
all have common ground and shared a goal
to upgrade their campuses with Retool
Your School grants won in 2019.
Trades Training
To help address the skilled labor gap, the
Foundation is committed to helping train
20,000 tradespeople to fill the industry
pipeline by 2028, supporting this mission
with a $50 million pledge. The Foundation’s
trades-focused partnerships have introduced
more than 15,000 people to the skilled
trades and helped certify more than 5,000
participants through trades training programs
since 2018.
TEAM DEPOT
Our powerful associate volunteer After Category 4 Hurricane Laura
force pivoted in 2020 to safely support made landfall in southwest Louisiana in
Together with The Home
communities in need during the pandemic. September, associates came together —
Depot Foundation,
With our regular Team Depot projects while keeping their distance — to assemble
Team Depot improves on hiatus, associates organized socially more than 1,000 disaster relief kits and help
the homes and lives distanced disaster kit assembly lines, turn a Home Depot parking lot into a pop-
of veterans and helps curbside donation queues and other up meal distribution center. (Learn more on
communities affected by COVID-aware ways to keep giving back. Page 108.)
natural disasters. We assisted communities with some of the
tough challenges of 2020, for example by While the pandemic limited certain
assembling meal kits for hunger relief and elements of volunteerism, our associates’
donating products to essential workers. commitment to serving communities was
unwavering. In establishing new strategies
Many of the communities we serve felt the for safe volunteerism, Team Depot
impact of COVID-19 and natural disasters. facilitated more than 3,200 grants to help
In April 2020, a series of tornadoes swept our communities in 2020: a 100% increase
the Southeast. Associates organized 6-feet- year over year.
apart assembly lines and filled Homer
buckets with much-needed supplies, Some of these grants were distributed
including water, work gloves, sanitization during The Home Depot’s annual Operation
products, flashlights and more. Surprise service campaign. In November
and December, nearly 2,500 Foundation-
The same assembly system that worked funded grants totaling more than $3 million
for spring tornadoes allowed us to do our were delivered by Team Depot to nonprofits
part during an extreme Atlantic hurricane nationwide. We also thanked veterans, first
season that brought 30 named storms, the responders, health care workers, teachers
most on record. In July, Hurricane Hanna and nonprofit organizations for their service
made landfall in Corpus Christi, Texas, with surprise gifts delivered at a distance.
generating strong winds and heavy rainfall
that caused damage, flooding and power
outages in communities across the Rio
Grande Valley. Associate volunteers formed
socially distanced assembly lines and filled
400 buckets to help people in need in the
community.
CHECK IT OUT
Get to know Miami-based
MET associate Sirena Wynn,
who has been volunteering
with Team Depot since she was
More than
2,000 associates
hired seven years ago. “It’s not
just that she gives back, it’s
how she gives back,” explains
her store manager. “Sirena
brings energy and enthusiasm
to each project.” at all levels of the company led Team Depot activities as
community captains in 2020. Meet a captain on Page 108.
PUTTING GOOD
INTO ACTION
Louisiana native Tracy Jefferson knows a thing That was only one of the ways Tracy and her
or two about hurricanes. And what it takes to fellow associates gave back in 2020. They
recover from them. also helped local community centers with
COVID-19 response, assembled disaster
“I’m born and raised in New Orleans. I know relief kits, organized merchandise donations
the area,” she says. So, Tracy — a Team Depot for people in need and more.
district community captain and manager of
our Harahan, Louisiana, store — was quick “Really what inspires me to do all the work
to rally our associate volunteer force to help that I do is my kids,” Tracy says. “I want
communities pummeled by Hurricane Laura. them to see that I make time for all needs
— not just my own, not just theirs. For me,
After the Category 4 storm made landfall in this opportunity is about way more than
September 2020, Tracy and other associates me. It’s about the people who help me get
traveled 200 miles across south Louisiana to this done.
Lake Charles, where thousands of people were
left without power — or easy access to food. “I love what I do. I love working with my
associates. I love helping customers. I love
Our volunteers got to work in the parking lot volunteering in the community. I can’t
of a Lake Charles Home Depot store that had see myself working anywhere else but The
converted its parking lot to a pop-up meal Home Depot,” she says. “We put good into
distribution center. In partnership with World action.”
Central Kitchen, and backed by funds from
The Home Depot Foundation, our orange-
blooded associates helped serve more than
1,000 meals to people whose homes and lives
had been upended by the hurricane.
MASK MISSION
SPOTLIGHT
As hospitals and first responders struggled to get crucial supplies, a small, cross-functional Home Depot team
orchestrated the donation of personal protective equipment to health care workers battling COVID-19.
I
n March 2020, The Home Depot
accepted a mission to get
in-demand N95 masks to front-
line health care workers across
the United States. We ultimately donated 3.4
million masks to more than 250 hospitals
and health care facilities, drawing on our
associates’ ingenuity, expertise, strong
relationships and orange-blooded sheer will
to make something that seems impossible
actually happen.
Requests for masks were coming in from of masks to health care facilities and
everywhere. Stores were hearing from select Pro customers in May 2020, we
local hospitals. Veterans hospitals and had donated millions of N95 masks
health care-related nonprofits were asking nationwide.
the Foundation for help. Sarah and her
government relations co-workers’ phones “It was a lot of work, but it didn’t seem
were ringing nonstop. At one point, Jim like work,” Jim recalls. “Protecting our
was receiving an email every five minutes health care workers and first responders
from someone asking for masks. was paramount. In some small way we
were helping save lives.”
Leveraging relationships and scale What Jim, Monica, Sarah, Heather and
George were able to do together has
Monica recorded all of the requests, and fundamentally changed Jim’s outlook
the team used prioritization software on work. “I know we can execute with Our company
customized by our IT team to rank
orders by urgency. COVID hot spots got
greater speed and transparency. I
better understand the power of cross- donated nearly
the most attention. The mask donation
team leveraged strong relationships
with suppliers and the power and scale
functional collaboration to get things
done,” he says. “It’s inspiring.” 3.4 million
N95 masks to help
of The Home Depot to keep masks front-line health care
flowing to health care workers. By the
workers nationwide
time our company resumed limited sales
INTERNATIONAL
RETAIL
OPERATIONS
RESOURCES
CANADA
Focus on Our People Operate Sustainably
The Home Depot began We are committed to providing an For seven years in a row, we have earned the
operating in Canada in environment that’s inclusive to all people. ENERGY STAR® Canada Retailer of the Year
1994. Today we operate We combine our individual talents, skills award for making energy-efficient products
182 stores across 10 and experiences to enrich the lives of our available to customers in our Canadian
Canadian provinces. associates, customers and communities. stores and for our sales of these eco-friendly
offerings. Here are four ways we improved
In 2020, we acted on associate feedback sustainability in 2020:
to develop training and engagement
resources that help support people of color
and indigenous people in our workforce 1
and communities.
We collected 219,500 pounds of household
electronics, power tool, cellphone and other
The Home Depot was ranked one of
rechargeable batteries for responsible recycling
Canada’s best diversity employers in
via our customer take-back program, despite
2020 — for the 12th consecutive year.
disruptions in collections caused by the pandemic.
34,000+ 2
associates To avoid waste going to landfills and to assist
wore the orange apron in Canada in 2020 people in need, we donated over CA$9 million
in slightly damaged or unsold products to
Habitat for Humanity.
25,000+ 3
associates
participated in unconscious By the end of 2020, we had completed LED
bias training in 2020 retrofits in 163 Canadian stores, significantly
DID YOU KNOW decreasing electricity consumption. Our stores
The Home Depot Canada in Canada have decreased electricity use 43%
4
is committed to the since 2010.
sustainable product and
operations goals that associate resource groups 4
drive progress in our U.S. represent and support our ethnically
operations. Learn more diverse, disabled, LGBTQ and women We recycled over 13,700 metric tons of cardboard
about our goals on Page 12. associates in Canada from our stores and distribution centers.
RECOGNITION
MEXICO
Focus on Our People Operate Sustainably
The Home Depot began We believe The Home Depot’s We found innovative ways to add sustainable
operating in Mexico in entrepreneurial spirit is enriched by practices to our processes in 2020.
2001. Today, 127 stores the diversity, talent and ideas of our
across all 32 states associates, and we strive to create a
employ over 18,000 healthy and stable work environment 1
associates. for all.
We opened our first Mexican store with LEED
V4 certification, which evaluates a building’s
770,000+ 3
hours
of career training courses were We created a Sustainability Strategy and
completed by associates renewed our Materiality Assessment for
Mexican operations.
1,290
associates
received Orange Fund grants, more than
a tenfold increase from 2019
84
scholarships
were awarded to children of associates
10 million+
pesos (US$503,000)
during our Round Up fundraising
drives for charitable causes; nearly
half of the funds went toward
COVID tests and ventilators
Inclusive business practices
Family-supportive workplace
Workplace supportive of
disabled employees
LGBT-supportive workplace
OUR
BUSINESS
RESOURCES
CODE OF CONDUCT
Our Business Code of Conduct and Ethics We empower associates to speak up when
provides straightforward information about our ethical standards are not being met.
Doing the right thing is
The Home Depot’s operating principles We encourage them to voice concerns,
embedded in our culture. and offers tools to help associates make express doubts, discuss problems and ask
That applies to how we decisions that align with our ethical and legal questions. In addition to sharing concerns
serve customers, give obligations. The code applies to associates with any member of their management
back to communities, worldwide, and the company expects team or a human resources partner,
support our people and them to comply with the code and with all associates can report ethical or legal
conduct our business. applicable laws and regulations in countries concerns to our Associate AwareLine, a
in which we do business. In particular, the 24/7 hotline. Reports can be made via
code outlines The Home Depot’s ethical and thdawareline.com or through a live operator
legal standards in these areas: available in local languages. Associates
may remain anonymous when reporting
concerns. Reports are handled using a
• Safety case management system. We have a
longstanding policy that prohibits retaliation
• Labor and employment
for making a report.
• Conflicts of interest
• Antitrust and fair competition
Associate AwareLine
• Confidentiality, privacy and information
1-800-286-4909
protection
• Protecting the company’s assets and
We also provide ways for suppliers, vendors,
intellectual property
service providers and their workers to
• Insider trading report concerns when they think our Home
Depot values or compliance with the law
• Financial integrity and reporting
may be compromised. Workers in countries
• Records retention from which we source goods may submit
anonymous reports via thdsupplieralertline.
• Environmental responsibility
com. In addition, our Supplier AlertLine is
• Foreign Corrupt Practices Act (FCPA) answered by a live operator 24/7 in these
and anti-bribery compliance countries:
• Political activity
Supplier AlertLine
U.S. and Canada: 1-800-435-3152
Mexico: 001-888-765-8153
China: 86-400-880-1045
India: (Access Code) 000-117
CHECK IT OUT (Dial) 800-435-3152
Hear Home Depot General Counsel
Vietnam: (Access Code) 1-201-0288 or
Teresa Roseborough describe the legal
team’s role in bringing together different 1-228-0288 (Dial) 800-435-3152
parts of the business to find solutions.
CORPORATE
GOVERNANCE
The Home Depot has a long-standing Our corporate governance policies
We understand our
commitment to strong corporate reflect best practices:
governance, which promotes the long-
responsibility to behave
ethically, to understand
term interests of shareholders, strengthens Shareholder Protections
Board and management accountability,
the impact we have on and helps build public trust in the • Annual election of directors with
people and communities, company. majority voting standard in uncontested
and to fairly consider the director elections
interests of a broad base Our Board of Directors has adopted • Shareholder ability to call special
of stakeholders. policies and processes that foster effective meetings and act by written consent
Board oversight of critical matters such as
• A market standard shareholder right of
strategy, risk management, financial and
proxy access
other controls, compliance, culture and
management succession planning. • Independent Lead Director
• Approximately 92% of directors and
At least once a year, our Board discusses all Board committee members are
our sustainability strategy and activities, independent
including this report.
• Director mandatory retirement age
(age 72)
• No shareholder rights plan, also
Leadership Structure referred to as a “poison pill”
Our Chair and CEO is chosen directly
by the Board, and the Board affirms the
election of our CEO as Chair of the Board Board Engagement and Oversight
annually. Our Lead Director is annually • Annual Board strategy session and
elected by the independent members of review of the company’s strategic plan
the Board. We believe having a combined
chairman and CEO; an independent Lead • Director overboarding policy
Director; and Board committees composed • Store-walk policy for directors
LEARN MORE entirely of independent directors currently (temporarily suspended during the
Our proxy statement provides the best Board leadership COVID-19 pandemic)
offers more details about structure for The Home Depot.
corporate governance and • Board education and orientation
risk management. Go to This structure, together with other program
our Corporate Governance robust corporate governance practices, • Annual Board and committee self-
Overview for additional provides strong independent oversight of evaluations, including individual
information on our corporate management while ensuring clear strategic director interviews
governance practices. alignment throughout the company.
• Management succession policy
set forth in Corporate Governance
Guidelines
• Independent directors meet without
management
BOARD OF DIRECTORS
Our Board reviews these key risks and the related framework annually, and the full Board or appropriate Board committees
discuss selected risks in more detail throughout the year, including the COVID-19 pandemic, its related risks and its impact on
our enterprise risk framework. The table below identifies key risk areas overseen by the Board and its committees.
FULL BOARD
• Has primary responsibility for risk oversight, including approval of strategic objectives and defining risk appetite
• Delegates oversight of management of certain risks to Board committees
• Receives regular reports from the committees regarding risk-related matters
GOVERNMENT
RELATIONS
We actively participate, and encourage our • The Home Depot supports trade
associates to participate, in the political associations that advocate on behalf of
The Home Depot
process. Our Political Activity and the business community and retail sector
recognizes that laws at Government Relations Policy provides and reports annually the aggregate dues
the federal, state and the framework for our political activity. We paid to those associations that engage in
local level impact our engage in three key ways: lobbying activities.
business.
• Our Government Relations department In deciding where we want to focus our
protects and expands our company’s advocacy, these are some of our top priorities:
ability to take care of our associates,
customers and shareholders through • Driving sales by ensuring online-only
effective regulatory and legislative marketplaces follow the same rules
action. Our Government Relations team on accountability and transparency as
works to optimize the government’s interconnected retailers
impact on the business through
DID YOU KNOW effective lobbying, relationship building • Supporting our One Supply Chain initiative
For 20 years, our internal and political engagement. by advocating for funding for roads, ports
OrangeVoice.com website and bridges and for laws that allow safer,
• We have a political action committee heavier trucks to reduce loads and our
has helped associates engage (PAC) that connects our salaried environmental footprint
in democracy. In 2020, associates to the political process
about 15,500 associates used and pools their personal contributions • Protecting margins by working to get
the resource to learn about to financially support pro-business laws passed that target sophisticated,
candidates, find polling places candidates who understand issues of organized retail crime rings to reduce theft
and register to vote. importance to The Home Depot and our and support free trade
associates. As a long-standing practice,
we do not contribute to presidential • Taking care of our people by making sure
campaigns or endorse presidential we have a say in laws that could affect
candidates. associate flexibility and career growth
CORPORATE TAXES
Taxes are a significant component of The • Seeking reasonable interpretations of
Home Depot’s economic contribution to laws where there may be ambiguity
We do the right thing
the countries, states and local communities
for our associates, • Engaging proactively and transparently
in which we operate. Our commitment to
shareholders and with tax authorities, when appropriate, to
our core values informs how we approach
seek clarity, guidance or agreement on
communities by ensuring taxes. Responsible management of The
tax positions
we pay our fair share of Home Depot’s taxes includes:
taxes and manage them
transparently. Alignment with Our Business
Accountability & Governance
Tax governance is overseen by the Audit Our corporate entity structure reflects the
Committee of the Board of Directors. At alignment with our commercial activities
least once a year, company leaders report to ensure that we pay our fair share of
to the Audit Committee regarding our tax commensurate with our business’
approach to managing taxes. Learn more geographical footprint and operations within
about our Corporate Governance structure a jurisdiction. Additionally, we seek and
on Page 124. claim tax incentives that:
Other Income
Federal State Income & Business Property Payroll
Income Tax Tax Taxes* Taxes Sales Taxes** Taxes***
$3.25 billion $879 million $1.20 billion $557 million $8.30 billion $3.95 billion
NUMBERS
1% of the total
net corporate income taxes collected
2.5% of the total
net corporate income taxes collected
by the U.S. government in 2020 by California in 2020
* Taxes paid by The Home Depot in Canada, Mexico, China, Puerto Rico, Guam and the U.S. Virgin Islands; franchise taxes paid to U.S. states;
and duties paid to the U.S., Canada and Mexico on imported products
** Includes all sales taxes and use taxes
*** Unemployment taxes; Federal Insurance Contributions Act (FICA) contributions; and federal and state income taxes withheld on behalf of
THD associates
REPORTING
FRAMEWORK
RESOURCES
GRI STANDARDS
The Global Reporting Initiative (GRI) is an international independent standards organization that helps business, governments
and other organizations understand and communicate their impacts on various issues. We have applied the GRI Sustainability
Reporting Standards as an identification and cross-reference tool to make meaningful data accessible to our stakeholders. The
following charts provide a cross-reference location guide to our reports.
GENERAL DISCLOSURES
GRI 102: General 102-1 Name of the organization The Home Depot, Inc.
Disclosures
Activities, brands, products and
102-2 Form 10-K pgs. 1-10
services
Information on employees and other Diversity, Equity & Inclusion, EEO-1 Report, Form 10-K
102-8
workers pgs. 5-8
Supply Chain, Form 10-K pgs. 1-10, Responsible
102-9 Supply chain
Sourcing Report
Significant changes to the organization
102-10 Supply Chain, Form 10-K pgs. 1-10
and its supply chain
102-11 Precautionary Principle or approach Corporate Governance, Proxy Statement pgs. 3-6
2020 Ratings and Recognition, Carbon Footprint, Supply
102-12 External initiatives Chain, U.N. Sustainable Development Goals, Corporate
Website – Responsibility, Responsible Sourcing Report
Carbon Footprint, Supply Chain, Responsible Chemistry,
Water-Saving Products, Strengthen Our Communities,
102-13 Membership of associations
International Retail Operations, Responsible Sourcing
Report
STRATEGY
GRI 102: General 102-14 Statement from senior decision-maker CEO Letter
Disclosures
102-15 Key impacts, risks and opportunities Materiality Touchpoints, Home Depot Goals
ECONOMIC
Explanation of the material topic and its
GRI 103: 103-1 Materiality Touchpoints
Boundary
Management
Approach The management approach and its
103-2 Materiality Assessment Framework
components
103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency
Defined benefit plan obligations and Benefits, Form 10-K pg. 67, Form 11-K, Proxy
201-3
other retirement plans Statement pgs. 45,56
GRI 205: Communication and training about anti- Ethical Sourcing, Code of Conduct, Business Code of
205-2
Anti-corruption corruption policies and procedures Conduct and Ethics
ENVIRONMENTAL
103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency
103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency
GRI 302: Energy Energy consumption within the 2020 CDP Report, ESG Transparency, Protecting the
302-1
organization Climate, Corporate Website – Responsibility
organization
2020 CDP Report, ESG Transparency, Corporate
302-3 Energy intensity
Website – Responsibility
103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency
GRI 303: Water Interactions with water as a shared Water-Saving Products, UN Sustainable Development
303-1
Use and Effluents resource Goals
components
103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency
GRI 304: Significant Impacts of activities, Greener Products, Sustainable Forestry, Gardening,
304-2
Biodiversity products, and services on Biodiversity Corporate Website – Responsibility
103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency
GRI 305: Emissions 2020 CDP Report, ESG Transparency, Protecting the
305-1 Direct (Scope 1) GHG emissions
Climate, Corporate Website – Responsibility
EMISSIONS
Energy indirect (Scope 2) GHG 2020 CDP Report, Protecting the Climate, Corporate
305-2
emissions Website – Responsibility
Management Boundary
Approach The management approach and its
103-2 Materiality Assessment Framework
components
103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency
Management Boundary
Approach
The management approach and its
103-2 Materiality Assessment Framework
ASSESSMENT
components
103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency
SOCIAL
Explanation of the material topic and its
GRI 103: 103-1 Materiality Touchpoints
Boundary
OCCUPATIONAL HEALTH AND SAFETY
Management
Approach The management approach and its
103-2 Materiality Assessment Framework
components
103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency
GRI 403: Hazard identification, risk assessment Materiality Assessment Framework, Materiality
403-2
Occupational and incident investigation Touchpoints, Associate Safety
Health and Safety
Worker training on occupational health
403-5 Learning & Development, Associate Safety
and safety
Approach
OPPORTUNITY
Management Boundary
Approach The management approach and its
FORCED OR
103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency
Management Boundary
Approach
The management approach and its
103-2 Materiality Assessment Framework
components
103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency
103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency
GRI 414: Supplier New suppliers that were screened using Ethical Sourcing, Conflict Minerals, Corporate Website –
414-1
Social Assessment social criteria Responsibility, Responsible Sourcing Report
Negative social impacts in the supply Ethical Sourcing, Conflict Minerals, Corporate Website –
414-2
chain and actions taken Responsibility, Responsible Sourcing Report
103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency
Approach
The management approach and its
103-2 Materiality Assessment Framework
& SAFETY
components
103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency
GRI 416: Assessment of the health and safety ESG Transparency, Greener Products, Responsible
Customer Health 416-1 impacts of product and service Chemistry, Energy-Saving Products, Water-Saving
and Safety categories Products, Gardening, Cleaning
UNIT OF
ACCOUNTING METRIC CATEGORY CODE DATA RESPONSE REFERENCE
MEASURE
Data Security
U.S. Officers:
• Gender: 29% Female
• Underrepresented Minority
Groups 26%
Percentage of gender and U.S. Managers and Above
2021 ESG Report
racial/ethnic group (excluding Officers):
Percentage CG-MR- – Diversity, Equity
representation for (1) Quantitative • Gender: 32% Female
(%) 330a.1 & Inclusion, Page
management and (2) all • Underrepresented Minority
24-33
other employees Groups 35%
U.S. Workforce:
• Gender: 38% Female
• Underrepresented Minority
Groups 47%
UNIT OF
ACCOUNTING METRIC CATEGORY CODE DATA RESPONSE REFERENCE
MEASURE
UNIT OF
ACTIVITY METRIC CATEGORY CODE DATA RESPONSE REFERENCE
MEASURE
Number of: (1) retail • 2,296 retail locations 2020 Annual Report
CG-MR-
locations and (2) distribution Quantitative Number • >300 distribution centers on SEC Form 10-K
000.A
centers and warehouses pgs. 22-23
UNIT OF
ACCOUNTING METRIC CATEGORY CODE DATA RESPONSE REFERENCE
MEASURE
We estimate a significant
majority of our wood
(1) Total weight of wood
product purchases are
fiber materials purchased,
certified by third parties
(2) percentage from third- Metric
such as the Forest 2021 ESG Report –
party certified forestlands, tons (t),
CG-BF- Stewardship Council Sustainable Forestry,
(3) percentage by standard, Quantitative Percentage
430a.1 (FSC), Sustainable Forestry pgs. 68-69; Wood
and (4) percentage certified (%) by
Initiative (SFI), Programme Purchasing Policy
to other wood fiber weight
for the Endorsement of
standards, (5) percentage
Forest Certification (PEFC)
by Standard
or American Tree Farm
System (ATFS).
TCFD FRAMEWORK
The Task Force on Climate-related Financial Disclosures (TCFD) develops voluntary, consistent climate-related financial risk
disclosures for companies to provide information to stakeholders. We have considered the TCFD framework as a tool to make
meaningful data accessible to our stakeholders and have provided below the location of the relevant information in our 2021
ESG Report.
Engaging Stakeholders
6
Describe the board’s oversight of climate- and Setting Priorities CDP Report; 2021 Proxy
related risks and opportunities. Statement pgs. 2-7
Corporate Governance 124-125
GOVERNANCE
Engaging Stakeholders
6
and Setting Priorities
Materiality Touchpoints 10
Goals 12-13
Describe the potential impact of different
scenarios, including a 2°C scenario, on the Protecting the Climate 54-63
CDP Report
organization’s businesses, strategy and
financial planning. Reducing Environmental
70-95
Impact
Engaging Stakeholders
6
and Setting Priorities
Describe the organization’s process for
CDP Report; 2021 Proxy
identifying and assessing climate-related Materiality Assessment
8-9 Statement pgs. 2-7
risks. Framework
Engaging Stakeholders
RISK MANAGEMENT
6
and Setting Priorities
Describe the organization’s processes for Materiality Assessment CDP Report; 2021 Proxy
8-9
managing climate-related risks. Framework Statement pgs. 2-7
Engaging Stakeholders
6
and Setting Priorities
Describe how processes for identifying,
assessing and managing climate-related CDP Report; 2021 Proxy
risks are integrated into the organization’s Materiality Assessment Statement pgs. 2-7
8-9
overall risk management. Framework
Materiality Assessment
8-9
Framework
Goals 12-13
Disclose the metrics used by the
organization to assess climate-related risks ESG Transparency 14-15 CDP Report
and opportunities in line with its strategy
and risk-management process. Protecting the Climate 54-63
METRICS & TARGETS
United Nations
Sustainable 112-113
Development Goals
Goals 12-13
Describe the targets used by the
organization to manage climate-related Protecting the Climate 54-63
CDP Report
risks and opportunities and performance
against targets. United Nations
Sustainable 112-113
Development Goals
Not-Hispanic or Latino
Hispanic or
Latino
Business
Male Female
Our
Overall
Job Categories Native American Native American
Black or Two or Black or Two or Totals
Hawaiian Indian or Hawaiian Indian or
Male Female White African Asian more White African Asian more
or Pacific Alaskan or Pacific Alaskan
American races American races
Islander Native Islander Native
Retail Operations
International
Executive/Sr Officials
10 2 65 8 0 4 1 0 26 5 0 1 0 2 124
& Mgrs
First/Mid Officials
1866 850 8543 1634 96 426 72 388 3826 1133 34 190 25 244 19327
& Mgrs
Professionals 368 218 3328 587 8 752 17 148 1588 623 2 388 13 99 8139
Our Communities
Strengthen
EEO-1 REPORT
Support
Operate
Laborers & Helpers 3855 85 7051 2804 92 334 91 537 180 52 3 8 4 16 15112
Total 56845 37471 153361 44997 1776 8435 1873 9892 84948 31687 1140 4531 1162 6568 444686