Lowe’s

RATING

SECTOR

Retail (Building Materials)

WEBSITE

CONTACT

1000 Lowes Blvd
Mooresville, NC
28117
Tél. : 1-800-813-7613
E-Mail: investorrelations@lowes.com
publicrelations@lowes.com

STOCK EXCHANGE

LISTING

  • Responsible Minerals Initiative
  • Dow Jones Sustainability Indices (2019)
  • GC3 Champion Award promoting green chemistry

EMPLOYEES

300,000

CHIEF SUSTAINABILITY OFFICER

Name: Chris Casell

AWARDS

  • EPA’s SmartWay Excellence Award
  • ENERGY STAR recognition for Excellence in Promotion
  • 2019 GC3 Champion of the Year Award

CONTENT SOURCE

FURTHER READING

Report created by Sagarika Deshmukh

Lowe's

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

Lowe’s Companies, Inc. doing business as Lowe’s, is an American retail company specializing in home improvement. The company, headquartered in Mooresville, North Carolina, operates 2200+ retail stores in the United States, Mexico and Canada. 

According to their website, “Lowe’s grew from one small-town hardware store in North Carolina to one of the largest home improvement retailers in the world. Then and now, [they’re] committed to helping homeowners, renters and pros improve their homes and businesses.”

Lowe’s Companies, Inc. (NYSE: LOW) is a FORTUNE® 50 home improvement company serving approximately 18 million customers a week in the United States and Canada.

With fiscal year 2019 sales of $72.1 billion, Lowe’s and its related businesses operate or service more than 2,200 home improvement and hardware stores and employ approximately 300,000 associates.

The Company offers a range of products for maintenance, repair, remodeling and decorating. The Company offers home improvement products in categories, including Lumber and Building Materials; Tools and Hardware; Appliances; Fashion Fixtures; Rough Plumbing and Electrical; Lawn and Garden; Seasonal and Outdoor Living; Paint; Flooring; Millwork, and Kitchens.

Lowe’s also supports the communities that focus on K-12 public education and community improvement projects. The Company serves its customers in the United States, Canada and Mexico.

Company Sustainability Activity

Lowe’s sustainability strategy focuses on responsible sourcing; safer and more eco-friendly product offerings; maintaining a diverse, healthy, engaged and skilled workforce; supporting their local communities; and operating ethically and responsibly.

Lowe’s goals are a mix of the objectives set in 2013 and those finalized in 2018 to further their commitments and broaden their impact.

Lowe’s promotes responsible forestry and conflict-free minerals. Their Safer Chemicals Policy guides the sourcing of products that are safe to use. And they are expanding their pursuit of innovative, more efficient eco-products and promoting benefits to customers.

Lowe’s is progressing toward their 2025 product sustainability goals and harmonizing their efforts across Canada and the U.S.

Lowe’s has focused on operating responsibly and providing outstanding customer service. Lowe’s mission, “Together, deliver the right home improvement products, with the best service and value, across every channel and community [they] serve,” guides them every day, and is evident in their sustainability strategy and vision statements. Lowe’s is an active member of the Retail Industry Leaders Association (RILA) and the National Retail Federation (NRF).

Lowe’s also collaborate with the Green Chemistry & Commerce Council and the U.S. EPA’s SmartWay, ENERGY STAR® and WaterSense® programs.

Highlights

  • In 2019, 0.32% of Lowe’s total wood volume was sourced from regions at risk, with 27% identified as FSC-certified 
  • In 2019, 68% of Lowe’s wood products were certified 
  • In 2019, 52% of Lowe’s strategic suppliers had sustainability goals in place

Targets

Renewable / Alternative Energy

  • Lowe’s is improving their environmental performance and creating a healthier world through the purchase of green power — electricity generated from renewable energy sources, such as solar and wind power.
  • By 2020: improve U.S. store energy efficiency 13% per square foot (kWh/ft2) from 2010 baseline.
  • Lowe’s plans to make nearly 80% of its products green and recyclable by 2022
  • 2025 goal: Save customers more than $40 billion in energy costs through the sale of ENERGY STAR products.

Water Consumption

  • Lowe’s is committed to exploring opportunities to reduce waste, carbon emissions and energy and water use throughout their operations.

Greenhouse Gas Emissions

  • Reduce U.S. store carbon emissions 20% per square foot by 2020 (metric tons CO2 e/ft2) from 2010 baseline.

Manufacturing / Operational Waste

  • Reduce tons of waste to landfill per net sales by 40% from 2010 baseline.

Progress

Renewable / Alternative Energy

  • Lowe’s helped their customers save $10.3 billion via the sale of ENERGY STAR® products since 2018

Greenhouse Gas Emissions

  • Lowe’s reduced Scope 1 and 2 emissions from its 2016 baseline.

Manufacturing / Operational Waste

  • Lowe’s saved over 28 million gallons of diesel by using 100% SmartWay certified providers for their logistics network
  • In 2019, less than 1% (0.3%) of their total U.S. wood volume was sourced from regions at risk, with 27% identified as having FSC-certification 
  • Since 2010, Lowe’s has reduced their waste to landfill per net sales by 19.4%

Certificates

  • WaterSense®
  • GREENGUARD®
  • FSC®
  • Sustainable Forestry Initiative®
  • PEFC®
  • Leader in Sustainability Award by Call2Recycle
  • OMRI®

UN Sustainable Development Goals

UN SDGs Compliance

SDG 7 

  • By 2030, increase substantially the share of renewable energy in the global energy mix In 2020, their first 100 MW utility-scale wind farm partnership became operational Deploy additional renewable energy resources as they work toward their 2030 GHG emissions reduction goal 

SDG 8 

  • Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labor-intensive sectors Graduate 5,000 Track to the Trades students by 2025 Reach 10,000 businesses pledging support for Generation T by 2025 
  • Continue to monitor and update their Human Rights policy overseeing their suppliers, including the continuation of their zero-tolerance stance on issues of modern slavery, forced labor, human trafficking and child labor Continue performing Retail Ethical Sourcing Assessments (RESA) at supplier factories (1,102 RESA performed in 2019) 

SDG 11 

  • By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums 
  • In 2019, 84 homes were built and 48 homes were improved through safe and affordable housing programs Continue to support programs such as Habitat for Humanity and Rebuilding Together to preserve affordable housing stock 

SDG 12 

  • By 2030, achieve the sustainable management and efficient use of natural resources 
  • Reduce their Scope 1 and 2 emissions by 40% by 2030 from their 2016 baseline Save their customers $40 billion in energy costs by 2030 through the sale of ENERGY STAR® products 
  • By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with agreed international frameworks, and significantly reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment 
  • Update their safer chemicals policy annually as they continue to evaluate opportunities to remove chemicals of concern from products offered 

SDG 15

  • By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests and substantially increase afforestation and reforestation globally. 
  • Obtain FSC-certification for 100% of wood products sourced from regions identified as at risk Ensure 100% of wood products are responsibly sourced by 2025

Evaluation

Lowe’s is dedicated to building a sustainable future. Lowe’s sustainability efforts are profound in the US and even more so in Canada winning the GC3 Champion Award for efforts in promoting green chemistry.

Lowe’s awarded the Dow Jones Sustainability Indices in 2019 as well as the EPA’s SmartWay Excellence Award.

In addition to these achievements, Lowe’s is compliant with five of the seventeen UN Sustainable Development Goals.

The company is transparent with their specific sustainability initiatives they are tackling. Lowe’s is rated a B.

Analyst Outlook: Negative

Lowe’s has won several sustainability awards but have shown limited progress towards their goals. 

Key Points

  • Lowe’s Canada network has contributed to the diversion of more than 1.9 million pounds of batteries from landfills since 2001. By 2030, Lowe’s Canada intends to reduce its greenhouse gas emissions to 40% below its 2016 levels. In mid-March, the company announced an investment of nearly $18 million in initiatives that improve energy efficiency at its corporate stores and distribution centers around the country.
  • Lowe’s has been developing and moving forward with its sustainability strategy, solidified their first renewable energy agreement, signed the CEO Action Pledge for Diversity & Inclusion, became the first 10-time winner of the EPA SmartWay Excellence Award and expanded their community giving program across the US and Canada.
  • Lowe’s Canada has selected a wide range of products that will help you reduce impact on the environment. Since they gain certain types of certifications such as ECO Products, in Lowe’s Canada and look for their logo on building supplies, appliances, bathroom faucets, and more. These products are made with sustainable materials, have low-chemical emissions, are energy-efficient, and have many more benefits to their ecosystem.
  • In the US, Lowe’s and Lowe’s Charitable and Educational Foundation gave more than $39 million in charitable contributions, and every U.S. store completed at least one Lowe’s Heroes volunteer project to improve their local community. Lowe’s committed to remove the chemicals methylene chloride and NMP from all paint removal products globally by the end of 2018. The Lowe’s Employee Relief Fund distributed $3.2 million to help employees impacted by financial hardships, including those in the path of Hurricanes Harvey and Irma. 2020 Women on Boards recognized Lowe’s for championing gender diversity and having 20% or more board seats held by women. Lowe’s sold enough WaterSense products in 2017 to save customers 6.6. billion gallons of water and $69 million in utility costs over the products’ lifetime. 
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