The Home Depot Inc.

RATING

SECTOR

Retail and Wholesale

WEBSITE

CONTACT

2455 Paces Ferry Road
Atlanta
GA 30339
United States

STOCK EXCHANGE

LISTING

  • CDP A List
  • Energy Star Retailer of the Year 2019
  • Canada’s Greenest Employers 2019
  • Canada’s Best Diversity Employers
  • Fortune No. 21 — Most Admired Companies
  • Human Rights Campaign Corporate Equality Index
  • Sustainalytics Low Risk 2019
  • FTSE Russell 3.4 / 5 2019
  • B+ Safer Chemicals Healthy Families
  • AA MSCI ESG Index
  • Forbes World’s Best Employers 
  • Forbes America’s Best Employers 
  • Forbes World’s Most Valuable Brands, No. 32

EMPLOYEES

400,000+

CHIEF SUSTAINABILITY OFFICER

Ron Jarvis

AWARDS

  • Corporate Social Responsibility Award for Labor Equality & Nondiscrimination — Mexico
  • SmartWay Sustained Excellence Award
  • EPA WaterSense Partner of the Year, receiving Sustained Excellence awards
  • U.S. Environmental Protection Agency’s Safer Choice Partner Award
  • ENERGY STAR Canada Retailer of the Year award
  • U.S. President’s Volunteer Service Award in 1995

CONTENT SOURCE

FURTHER READING

Report created by Maribel Sabino

The Home Depot

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

The Home Depot, Inc. operates as a home improvement retailer operating 2,293 retail stores in 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces, and Mexico.

It operates stores that sell various building materials, home improvement products, lawn and garden products, and decor products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself and professional customers.

The company offers installation programs that include flooring, cabinets and cabinet makeovers, countertops, furnaces and central air systems, and windows; and professional installation in various categories sold through its stores and in-home sales programs, as well as acts as a general contractor to provide installation services to its do-it-for-me customers through third-party installers. In addition, it provides tool and equipment rental services.

The company primarily serves home owners; and professional renovators/remodelers, general contractors, handymen, property managers, building service contractors, and specialty tradesmen, such as electricians, plumbers, and painters.

Company Sustainability Activity

As the world’s largest home improvement retailer and an industry leader on sustainability issues, The Home Depot is committed to effect change by doing the right thing.

As climate change perseveres, The Home Depot is dedicated to reducing their impact by continually improving the efficiency of their operations and expanding investments in renewable and alternative energy.

Alongside their investments that make alternative energy solutions more viable, The Home Depot partners with suppliers to address global environmental concerns related to their products, including carbon emissions, water scarcity, air quality, waste and more.

By introducing a Circular Economy in 2019, the company aims to prevent products and packaging from becoming trash with the mindset that “Nothing is wasted, and everything is regenerative.” 

The Home Depot offers their Eco Options program which helps their customers identify products that have less of an impact on the environment and encourages their suppliers to provide more sustainable offerings. Eco Options launched in 2007 in partnership with SCS Global Services.

The company is dedicated to offering greener products through their Chemical Strategy. The strategy guides their efforts to work with suppliers to reduce the indoor air quality impact of chemicals used in the products they sell.

In addition to sustainability targets for reducing their carbon footprint and energy use, The Home Depot is committed to sustainable resourcing of materials and products.

Highlights

  • 6.9 million estimated reduction of customers’ GHG emissions through the purchase and proper use of Energy Star products (MT CO2e)
  • In 2019, 33% of hires were female and 50% ethnically diverse
  • Piloted recycled paper packing pallets in 2019, saving 1,800 trees
  • Replaced 7.7 million pounds of virgin plastic with recycled
  • 47 stores have rooftop solar panels

Targets

Carbon Footprint

  • Committed to reducing carbon dioxide emissions 2.1% per year to achieve a 40% reduction by 2030 and a 50% reduction by 2035

Energy Use

  • The Home Depot is ahead of their stated 2020 goal to achieve a 20% reduction in store kilowatt-hour energy use, compared to 2010 consumption
  • The Home Depot is committed to leveraging 335 megawatts of alternative or renewable energy by 2025

Sustainable Forestry

    • The Home Depot gives preference to the purchase of wood and wood products originating from certified, well-managed forests wherever feasible
    • The company aims to eliminate the purchase of wood and wood products from endangered forest regions around the world
    • Practice and promote the efficient and responsible use of wood and wood products 
    • Promote and support the development and use of alternative environmental products
    • The Home Depot is dedicated to not accepting any wood products from the Amazon or Congo Basin areas, Papua New Guinea or the Solomon Islands, unless they’re Forest Stewardship Council (FSC)-certified

Progress

Carbon Footprint

  • In 2019, The Home Depot reduced U.S. store energy use by 383 million kilowatt hours — contributing to their 35% drop in U.S. store energy consumption since 2010
  • In 2019, The Home Depot avoided 3.6 million pounds of CO2 emissions
  • Scope 1: Direct emissions from combustible sources and refrigerants totaled approximately 553,000 metric tons
  • Scope 2: Indirect emissions from purchasing electricity totaled approximately 1,393,000 metric tons
  • Scope 3: Emissions from upstream transportation and distribution of freight totaled approximately 2,665,000 metric tons

Energy Use

  • In 2019, The Home Depot reduced U.S. store electricity consumption by 383 million kilowatt hours, compared to reduction of 98 million kilowatt hours in 2018
  • In 2019, electricity consumption by the company’s U.S. stores was 35% less than in 2010
  • In 2019 alone, U.S. store energy consumption dropped 12% year over year
  • 35% less energy used by U.S. stores in 2019, compared to 2010
  • 260 stores were operating on-site alternative or renewable energy projects by the end of 2019
  • 750+ stores participate in energy demand mitigation programs

Water 

  • In 2019, The Home Depot piloted smart irrigation systems that save over 40% of the water used by traditional systems. 
  • The Home Depot conserved an average of 470,000 gallons per pilot site in a single year
  • Saved 68 million gallons of water

Ethical Sourcing 

  • 1,354 factory audits and 1,690 follow-up visits were conducted under their responsible sourcing policy in 2019
  • 237 factories were audited for compliance at peak production

Supply Chain

  • More than 300 hydrogen fuel cells provided emissions-free fuel for forklifts at the facilities in Troy Township, Ohio, and Savannah, Georgia, reducing energy use by nearly 4 million kilowatt hours every year

Greener Products

  • The Home Depot estimates that Eco Options product sales in 2019 helped reduce greenhouse gas emissions by nearly 7 million metric tons

Residential Solar

  • The Home Depot’s solar partners have installed systems that generated more than 300,000 kilowatts of clean energy for their customers since 2016

Waste Management and Recycling

  • In 2019, The Home Depot company recycled or reused for energy 33% of the hazardous waste generated from their operations and customer returns
  • In 2019, The Home Depot avoided 3.6 million pounds of CO2 emissions
  • In 2019, The Home Depot kept 12,500 cubic yards of paper out of landfills
  • The Home Depot preserved 42,000 trees
  • The company conserved 5.6 million kilowatt hours of electricity

Sustainable Packaging 

  • 58 packages were redesigned in 2019 to reduce size and materials
  • 1.2 million pounds of damaged-product waste was abated because of their packaging innovations
  • 2,200+ cargo containers didn’t set sail last year due to reduction in package sizes
  • 1.44 million pounds of plastic removed from products and packaging in 2019

Certificates

United Nations Sustainable Development Goals

United Nations SDGs Compliance

SDG 5

  • The Home Depot’s Women’s Link associate resource group promotes inclusion and professional development for female associates working at their Store Support Center
  • The company’s Lead-IN program includes content specifically designed to support leaders’ efforts to champion female talent in the field
  • The Home Depot proudly partners with the Women’s Business Enterprise National Council to promote gender equality among their suppliers
  • The Corporate Governance and Code of Conduct policies detail the company’s commitment to workplace equality

SDG 6

  • In U.S. stores, 100% of bathroom vanity faucets and toilets bear the EPA’s WaterSense label
  • The Home Depot estimates that their customers saved over 52 billion gallons of water in 2019 by properly using their water saving products
  • Smart irrigation systems the company piloted in several U.S. stores in 2019 saved 40% of the water used by traditional systems

SDG 7

  • The Home Depot purchased enough wind-generated energy to power 105 stores
  • Their partnership with the EPA’s Energy Star program enabled customers to purchase products capable of reducing their energy use by 10 billion kilowatt hours in 2019

SDG 8

  • The Home Depot employs over 400,000 associates internationally
  • The company conducted 1,354 factory audits and 1,690 follow-up visits in 2019, focusing on worker health, safety and well-being in their suppliers’ operations

SDG 9

  • The Home Depot has partnerships with organizations such as the Coalition for Responsible Transportation Priorities
  • The company has repeatedly earned the U.S. Environmental Protection Agency’s SmartWay Sustained Excellence Award for improving freight efficiency and contributing to cleaner air throughout their supply chain
  • The Home Depot Foundation has pledged $50 million to help train 20,000 tradespeople by 2028 to ease the skilled-labor shortage

SDG 11

  • In 2019, The Home Depot sold approximately $7.4 billion in sustainable products to their customers
  • In 2019, the company delivered more than 4,700 truckloads of disaster-relief supplies to affected areas
  • The Home Depot Foundation has committed $500 million to support veterans related causes by 2025

SDG 12

  • The Home Depot is committed to procure or produce 335 megawatts of renewable or alternative energy by 2025
  • The company challenges their suppliers to offer products with lowest-possible environmental impact and pursue third-party certification to verify efficacy
  • Their Chemical Strategy challenges suppliers to eliminate suspect chemicals from the products they sell

SDG 13

  • The company has set a science-based target to reduce their emissions 2.1% per year to achieve a 40% reduction by 2030 and a 50% reduction by 2035
  • The Home Depot has a current score of “A“ from the Carbon Disclosure Project, which assesses action on climate change
  • In 2019, the U.S. store energy consumption was 35% less than in 2010

SDG 15

  • In 2019, The Home Depot removed enough expanded polystyrene (EPS) foam from their private brand packaging to fill eight school buses and eliminated enough polyvinyl chloride (PVC) film to cover 99 football fields. 
  • The Home Depot pledged to exclude EPS and PVC film from their private-brand packaging by 2023
  • The company does not accept wood products from Papua New Guinea, the Solomon Islands, the South American Amazon Basin and the African Congo Basin, unless the Forest Stewardship Council has certified the products

Secondary SDGs: 3

The Home Depot Inc. is an industry leader on sustainability issues.

They have committed to reducing their impact by continually improving the efficiency of their operations and expanding investments in renewable and alternative energy. This is seen in their specific targets to reduce their carbon emissions, energy use, and incorporating waste management and recycling, and sustainable packaging and products.

The company has a clear agenda and targets specific Sustainable Development Goals throughout their sustainability strategy.

In addition to receiving various awards, The Home Depot has received top ratings on the CDP List, the MSCI ESG Index and many more.

The Home Depot also secured multiple industry certificates and labels, most of which are primary certificates in sustainability such as FSC, Cradle to Cradle, Energy Star, USDA Organic, and many more.

The company is determined to be transparent in their process to incorporate sustainability within their business model. For these reasons, The Home Depot has been given a rating of B.

Analyst Outlook: Neutral

The Home Depot is a leader in sustainability, however, their scale hinders their ability to be completely transparent with their operations.

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