FROM ONE

GENERATION
TO THE NEXT
2014 SUSTAINABILITY REPORT

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2015 IMPACT GOALS

Overview
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8
9

Sustainability Integration Approach

2015 Impact Goals
Conservation in Action

What Sustainability Looks Like at

The Home Depot

At The Home Depot, we

believe that sustainability
should be woven into
the DNA of our company.

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12
13
14
16
18

Responsible Sourcing of Wood

Carbon Emissions
Reducing Our Carbon Footprint
Building a Better Store
The Home Depot Foundation
Vendor Oversight & Ethical Sourcing

Providing Consumers with Choices

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23
25

Eco Options
ENERGY STAR
WaterSenseSM

For over 20 years,

The Home Depot has
led the industry and our
consumers to a more
sustainable future.

From being the first retailer to establish

environmental principles in 1991 to winning
the EPA WaterSense 2013 Retailer of the
Year Award, the EPA ENERGY STAR 2014
Partner of the Year Award and scoring 99 in
the Carbon Disclosure Project for 2013, we
continue to lead by example, demonstrating
to the world that sustainability business
practices are not only possible, they are
good for business.
A commitment made 20 years ago continues
to inspire us as we consider the ethical and
environmental impacts of business. We know
that our strategy must include two parallel
paths: acting responsibly in our business
operations and providing sustainable choices
for our consumers and their families to enjoy.

6 |

2015 IMPACT GOALS

SUSTAINABILITY INTEGRATION APPROACH

At The Home Depot,

we have implemented
a system to ensure
the benefits of our
sustainability efforts
will last a long time.

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The Home Depot Sustainability Integration System

provides an organized, transparent structure that
allows the oversight of five key issues:

Energy/
Water Use

Carbon
Emissions

Sustainable
Product
Assortment

Sustainable
Operations

Supply Chain
Impact

These key issues are integrated into our business plan through our six departments:

The Sustainability Integration

System provides a forum for
business unit reporting to
measure and highlight a
wide range of sustainability
goals, achievements and
improvements. It connects our
individuals, teams, decisions
and actions to our overall goal
of sustainability.

Operations

Store Design, Maintenance, Waste Reduction,

Energy Use, Site Planning, Recycling, Water Use
and Packaging

Merchandising

Eco Options Products, Natural Resources

Protection, Supplier Sustainability, Packaging,
Energy Saving, Water Saving and Transparency

Supply Chain

Greenhouse Gas Reduction, Distribution Center

Energy Use, Packaging, Distribution Model and
Cube Utilization in Trucks

Information
Technology

Energy Use, Server Demands, Using Less

Paper in Corporate and Store Operations and
Recycle Programs

Climate
Change Risk

Store Construction, Store Maintenance, Product

Assortment, Drought Tolerance, Severe Weather
Preparation and Recovery

Carbon Footprint

Supply Chain GHG Emissions, Operational

Energy Efficiency, Renewable Energy and
Emissions by Country

8 |

2015 IMPACT GOALS

20%

greenhouse gas emissions

CONSERVATION IN ACTION

That is a 200 million mile

reduction in distribution miles
the equivalent of 8,000 trips
around the earth.

In 2010, The Home Depot pledged to remove 20% of its greenhouse gas emissions
from its domestic supply chain by the year 2015. 2009 Baseline

By 2015, The Home Depot

will reduce its energy use in
stores by 20%.

8.0
billion

This includes re-lamping our stores with more efficient

lighting, replacing old HVAC systems with new Energy
Star-rated units, using LEDs for exit lighting and
much more.

kWh total savings

2004 Baseline

The 8.0 billion kWh total savings

is enough energy to power over
800,000 U.S. homes for one year.

Building a Better Home Depot

The Home Depot is a member of the Better Building
Alliance in partnership with the Department of Energy.
Our goal is to improve efficiencies in buildings, force
improvements in technology and share best practices
with retailers from around the country. We are on the
Steering Committee, HVAC, Electrical Lighting and
Whole Building Subcommittees.

500,000
The Home Depot was the first national
retailer to provide CFL light bulbs and
rechargeable battery recycling for
consumers. Through this program,
over 2.2 million pounds of CFL bulbs
and 3.9 million pounds of rechargeable
batteries were recycled.

estimated gallons
per year
We installed 122 water reclamation
tanks from 20102013. Each tank
saves an average of 500,000 gallons
per year and is used to irrigate our
Garden Centers in the store.

Our Lodi, California, test store was designed to be 50%

more energy efficient than the 2007 ASHRAE code.
The Lodi store, which opened in April 2012, is a threeyear ongoing project that involved in-depth monitoring
of existing stores for nine months before building the new
energy-efficient store. Energy-reduction features that are
successful in the Lodi store will be used in future stores.

In 2013, The Home Depot

recycled approximately
186,000 tons of used
cardboard.

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10 |

RESPONSIBLE SOURCING OF WOOD

The Home Depot purchases wood responsibly throughout the world.

This map shows the percentage that is purchased by continent.

Asia

1.56%

North America

94.72%

Europe

Since the 1990s, China has

planted more than 9 million
acres of new trees per year.
The Home Depot is working
with external stakeholders
to learn about the many
issues facing Indonesian
forests. We believe that
our participation in this
region and our commitment
to sustainable forestry will
have a positive impact on
forestry practices here.

0.68%

The North American forest

coverage has increased over
18 million acres since 1990.
The Home Depot sells more
Forest Stewardship Council (FSC)
certified wood than any other
retailer in North America.

Sustainable forest standards

have been practiced in European
forests for hundreds of years.

Oceania

0.45%

South America

2.3%

Less than 0.15% of our total wood comes

from areas around the Brazilian Amazon
Basin. In regions where rainforest harvesting
exists, we have partnered with environmental
groups, governments and industry to
educate and motivate the local communities
to promote sustainable timber harvesting.
90% of our wood purchases in South America
come from plantations in Chile and Brazil.

Approximately 22.5% of Oceania

is covered in forest, and 90%
of our purchases come from
plantations in New Zealand.

Africa

0.29%
In 2001, The World Wildlife Fund identified a list of the 10
most vulnerable forest ecoregions in the world. Many of
these are in Africa. Since that time, The Home Depot has
ceased its purchase of uncertified wood products sourced
from these ecoregions.

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CARBON EMISSIONS

Supply Chain
Carbon Emissions
at The Home Depot

REDUCING OUR CARBON FOOTPRINT

At The Home Depot, we calculate our carbon

footprint by combining the impact of our direct
emissions with that of our purchased electricity
and the transport part of our supply chain.

A carbon footprint measures the impact of our actions on the environment.

It measures the amount of greenhouse gases that we produce through activities
such as transporting products, electricity use that burns fossil fuel and owned
vehicle use.
DISTRIBUTION TO
STORE SHIPMENTS
CARBON EMISSIONS
DOWN

Direct to Store Shipments

(Collect) Carbon Emissions

2013 Truck
Emission Reduction

-0.4%

We use World
Resource Institute/
World Business
Council for
Sustainable
Developments
Greenhouse Gas
Protocol.

(in metric tons CO2e)

7,004,723

2009

6,352,812

2010

5,575,028

5,191,643

5,068,178

2011

2012

2013

Past years carbon footprint calculations

Since 2009, we have had an absolute carbon

emission reduction of:

DOWN

1,936,545
metric tons

THE HOME DEPOT

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This reduction is significant. Not only did The Home Depot

achieve a four-year reduction of 1,813,080 metric tons CO2e,
we achieved this reduction despite including 13 new stores
and nine new distribution centers in 20102011. In 2010, we
also added our China operations to the calculations.

FACTORY/VENDORS

The Carbon Disclosure

Project rated The Home
Depot as a Global Leader.

DISTRIBUTION CENTER

-9.3%

-1.6%

DOWN

DOWN

Distribution Center to Store (One-Way)

Shipments Carbon Emissions

The Carbon Disclosure Project (CDP) is an independent, not-forprofit organization working with businesses and cities to reduce
greenhouse gases and drive sustainable water use. The Home
Depots 2013 score of 99 points from the CDP places us at the
top of the Global Leadership Index, which indicates the CDP
acknowledgement of The Home Depots understanding of
carbon emissions and climate change risks and opportunities
into our core business.

Vendor to D
 istribution Center
Shipments Carbon Emissions

-2.2%

51,930

Total Carbon Reduction

Metric Tons Reduced

99 Pts. 95 Pts.
2013

2012

82 Pts.

37 Pts.

2011

2010

World Resources Institute/World Business Council for Sustainable Developments Greenhouse Gas Protocol

14 |

BUILDING A BETTER STORE THROUGH NEW ENHANCEMENTS

Each tank saves an estimated average

of 500,000 gallons per year and
is used to irrigate our Garden
Centers in select stores

Energy management systems for lighting

controls and high-efficiency HVAC units

Recycled metal materials for bar joists

and roof deck
Dual-flush, low-flow toilets and urinals;
low-flow faucets that reduce water
usage by 40%

Switched to high-efficiency T5
fluorescent lighting, lowering wattage
from 49 watts to 44 watts

Local materials for construction of new

buildings, i.e., concrete, stone, etc.

Exterior building signs are two-strand

LED rather than fluorescent

Eight zoned planting areas, incorporating

local hardy species where landscaping
is required to minimize maintenance
and water use

Concrete uses a densified system versus

diamond grinding, eliminating 5,000 to
7,000 gallons of slurry water that would
have to be disposed of properly

White thermoplastic polyolefin roofs

have high reflectivity and will reduce
heat island effect

Reduced the number of parking

spaces required with our stores,
which reduces impervious surface
space and adds more green space

Lighting in parking lot is shut off one

to three hours after closing and security
lights are kept to a minimum; 330w lamps
implemented in new stores, versus
400w lamps, for parking lot lights

All new stores have airlock vestibules and

exits to reduce air infiltration

New irrigation systems reduce water usage

by 35% where irrigation is necessary

CO2 sensors maintain good air quality

16 |

2015 IMPACT GOALS

THE HOME DEPOT FOUNDATION

NEED COPY

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The Foundations mission is to

ensure every veteran has a safe
place to call home.
Associates volunteer through Team
Depot to lend their time and talent
to repair and remodel veterans
homes and support facilities. Since
the launch of the veterans focus in
2011, The Home Depot Foundation
has donated funds to more than 1,800
nonprofits supporting the building or
repair of 9,000 housing units. In
addition, Team Depot volunteers have
completed 1,300 volunteer projects
around the U.S. benefiting veterans
and their families.

The Home Depot Foundation (THDF) has invested $340

million in local U.S. communities since it was established
in 2002. The Foundation manages The Home Depots
grants initiatives, disaster relief activities, the Framing
Hope product donation program and Team Depot, our
associate-led volunteer force.

$80 million
committed to veterans
housing initiatives

$200 million+
in product donations

At The Home Depot

Foundation, our
goal is to serve,
beautify and sustain
our communities for
generations to come.

To divert excess merchandise

from our stores and away from
landfills, The Home Depot and
THDF, in collaboration with
Good 360, created a unique
product donation program,
called Framing Hope.

Since the program began in 2008, $200 million+ of product

has been donated to 1,600 local nonprofit organizations,
reaching more than 600,000 low-income families. A 2012
study conducted by the School of Public and Environmental
Affairs at Indiana University concluded that the program
has saved more than $56 million in embodied energy
costs, including:
landfill space and volume equivalent to approximately
6,000 garbage trucks
enough manufacturing energy savings to power 150 homes
for one year
consumption energy savings of more than 3,300,000 kWh,
which translates to a reduction in CO2 emissions equivalent
to planting 517 acres of pine forest.

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2015 IMPACT GOALS

VENDOR OVERSIGHT & ETHICAL SOURCING

Positive change is not

simply a goal for us.
Its what brings us
together and helps
us build responsible
relationships around
the world.

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The Home Depots core values influence the beliefs

and actions of all our dedicated associates and drive
us to conduct our business in a responsible manner
on a daily basis.
Because we have relationships with suppliers around the world,
we have seized the opportunity to leverage our values towards a
collective commitment to human rights and safety in the workplace.
The Social Environmental Responsibility
(SER) Standards mandate that suppliers and
factories abide by all applicable international
and local laws, rules and regulations in the
manufacture and distribution of merchandise
or services provided to us.
As with all of our efforts, we believe in
accountability and have established a
system of supplier audits. In 2013, we
conducted over 972 announced and
unannounced social compliance audits
of factories throughout The Home Depot
supply chain. Suppliers who failed to comply
were required to develop and implement
corrective and preventive action plans as
a prerequisite to conducting business with
us. As a result, we conducted over 519
follow-up audits in 2013 to verify these
improvements were implemented.
Failure to improve will result in termination.
In turn, The Home Depot has established
programs to support factories that take
positive action towards creating a lasting
social and environmental compliance
program. More than 146 support visits
to our factories were conducted in 2013.

GIVING
BACK

BUILDING
STRONG
RELATIONSHIPS

DOING THE
RIGHT THING

RESPECT
FOR ALL
PEOPLE

EXCELLENT
CUSTOMER
SERVICE

CREATING
SHAREHOLDER
VALUE

ENTREPRENEURIAL
SPIRIT

TAKING
CARE OF
OUR PEOPLE

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2015 IMPACT GOALS

SUSTAINABILITY INTEGRATION APPROACH

From the ground up,

we are changing the
way we live, work and
think about the future.

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THE HOME DEPOT ECO OPTIONS

ENERGY STAR

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The Home Depot is a nine-time ENERGY

STAR award winner, and in 2014, The Home
Depot was the EPA ENERGY STAR Partner
of the Year.
Using the EPA ENERGY STAR resources as a guide, The Home Depot highlighted
benefits to the environment and savings for consumers. Working with suppliers,
we increased the number of ENERGY STAR products available in stores.
Increased demand & awareness for ENERGY STAR

84%

LED
energy
savings

CREE LED Light Bulb

No-VOC and LowVOC Paints

The new, exclusive to The Home Depot

CREE LED bulb will save consumers
billions of kilowatts and millions of
dollars in utility savings.

In 2012, The Home Depot converted

all of our interior paints to low or no
volatile organic compound (VOC)
formulas. Through this conversion, we
strengthened our leadership position,
eliminating the need for high-priced
niche eco paints. The new formula
eliminated 27 million pounds of VOC
released into the atmosphere in 2012.

Our merchants spent years working

with CREE to perfect this new LED
technology that offers the light and
convenience of incandescent bulbs.

125,000,000
ENERGY STAR-qualified products sold

Elevated demand for ENERGY STAR products

to almost three times that of our non-ENERGY
STAR products.

The Eco Options brand helps consumers identify products

that have comparably lower environmental impact in five
key categories: Water Conservation, Energy Efficiency,
Clean Air, Healthy Home and Sustainable Forestry.

In-store and online ENERGY STAR product assortment

grew to over 12,000 products!

In 2007, The Home Depot launched the Eco Options

program in conjunction with Scientific Certification Systems
(SCS), a leading independent, third-party certification body.

Enhanced LED bulb in-store signs and displays

to educate the consumer on the spend/save
ratio, driving over a 100% increase in sales in 2013.

Eco Options is an identification system designed to evaluate the environmental impact

of a product compared to standard products.

The impact of our efforts

2013 ENERGY STAR purchases saved our

customers in annual utility costs:

$769,000,000
This reduced energy consumption
equated to a decrease in GHG
emissions of:

4,700,000 tons

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2015 IMPACT GOALS

WATERSENSESM

Every day, our

customers are
faced with more
and more choices.
Its our job to make
those choices safer,
smarter and greener.

The Home Depot has aligned our sales

strategy with the EPA WaterSense
messaging, creating best-in-class product
offerings and consumer education.

503 billion

WaterSense logo impressions

through in-store and online
marketing in 2013

Certified by

IAPMO R&T

WaterSense, a partnership program

by the U.S. Environmental Protection
Agency, seeks to protect the future of
our nations water supply by offering
people a simple way to use less water
with water-efficient products.

42 billion+
gallons of water saved by our
customers in 2013 through the
sale of WaterSense products

$36 million
in consumer price reduction
incentives for WaterSense
products in 2013

$350 million+

saved on water utility bills

from purchases of WaterSense
products in 2013

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We have now converted our full

assortment of bath faucets and 80%
of our assortment of in-store toilets
to WaterSense labeled products.

Over 7,000 WaterSense

products offered both
online and in stores

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2015 IMPACT GOALS

SUSTAINABILITY INTEGRATION APPROACH

Do we think about
our legacy as much
as we think about
our business?
Yes. Every day.

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As the #1 home improvement

retailer, we understand that the
best build and remodel projects
are the ones built sustainably.
Our job is to find sustainable products so together
we can build a sustainable future.

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