FROM ONE
GENERATION
TO THE NEXT
2013 SUSTAINABILITY REPORT
®
2 |
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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13
14
16
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Responsible Sourcing of Wood
Reducing Our Carbon Footprint
Building a Better Store
The Home Depot Foundation
Vendor Oversight and Ethical Sourcing
Providing Consumers with Choices
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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® 2013
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 LED’s 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 US homes for one year.
Building a Better Home Depot
500,000
estimated gallons
per year
The Home Depot was the first national
retailer to provide CFL light bulbs and
rechargeable battery recycling for
consumers. Through this program,
over 1.6 million pounds of CFL bulbs
and 3 million pounds of rechargeable
batteries were recycled.
We installed 81 water reclamation
tanks from 2010–2012. Each tank
saves an average of 500,000 gallons
per year and is used to irrigate our
Garden Centers in the store.
In 2011, we trained over 200,000
associates on the customer benefits
of water and energy saving products.
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.
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 2012, The Home Depot
recycled approximately
174,000 tons of used
cardboard.
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10 |
RESPONSIBLE SOURCING OF WOOD
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 retailer
in North America.
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.
The Home Depot purchases wood responsibly throughout the world.
This map shows the percentage that is purchased by continent.
Since the 1990’s, 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.
Sustainable forest standards
have been practiced in European
forests for hundreds of years.
Approximately 22.5% of Oceania
is covered in forest, and 90%
of our purchases come from
plantations in New Zealand.
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.
12 |
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
Carbon Emissions
2012 Truck
Emission Reduction
We use World
Resource Institute/
World Business
Council for
Sustainable
Development’s
Greenhouse Gas
Protocol.
(in metric tons CO2e)
7,004,723
2009
6,352,812
2010
5,575,028
5,191,643
2011
2012
Past years carbon footprint calculations
Since 2009, we have had an absolute carbon
emission reduction of:
DOWN
1,813,080
metric tons
THE HOME DEPOT
| 13
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 2010 – 2011. In 2010, we
also added our China operations to the calculations.
FACTORY/VENDORS
Carbon Disclosure Project
rated The Home Depot as
a Global Leader.
DISTRIBUTION CENTER
DOWN
DOWN
Distribution Center to Store
Shipments Carbon Emissions
Vendor to Distribution Center
Shipments Carbon Emissions
-6%
143,632
Total Carbon Reduction
Metric Tons Reduced
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 Depot’s 2013 score of 99 points from the CDP places us
in the top of the Global Leadership Index. Indicating the CDP
acknowledgement of The Home Depot’s understanding of
carbon emissions and climate change risks and opportunities
into our core business.
99 Pts. 95 Pts.
2013
2012
82 Pts.
37 Pts.
2011
2010
World Resources Institute/World Business Council for Sustainable Development’s 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 vs. 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 the impervious
surface space and adds more
green space
Lighting in parking lot is shut off 1 to 3
hours after closing and security lights
are kept to a minimum. 330w lamps
implemented on new stores versus
400w lamps for parking lot lights
All new stores have airlock vestibules and
exits to reduce air infiltration
New irrigation systems that reduce water
usage by 35% where irrigation is necessary
CO2 sensors to maintain good air quality
16 |
2015 IMPACT GOALS
THE HOME DEPOT FOUNDATION
NEED COPY
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The Foundation’s 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 Depot’s
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
$150 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, $150+ 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
• manufacturing energy savings are enough 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.
It’s what brings us
together and helps
us build responsible
relationships around
the world.
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The Home Depot’s 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 2012, we
conducted over 900 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 300
follow-up audits in 2012 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 125 support visits
to our factories were conducted in 2012.
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
20 |
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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22 |
THE HOME DEPOT ECO OPTIONS®
ENERGY STAR®
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The Home Depot is an eight-time ENERGY
STAR award winner and in 2013, 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 LOW–VOC 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.
120,000,000
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 11,000 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 2012.
Eco Options is an identification system designed to evaluate the environmental impact
of a product compared to standard products.
The impact of our efforts
2012 ENERGY STAR purchases saved our
customers in annual utility costs:
$720,000,000
This reduced energy consumption
equated to a decrease in GHG
emissions of:
4,374,769 tons
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2015 IMPACT GOALS
WATERSENSESM
Everyday, our customers
are faced with more
and more choices. It’s
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.
496 billion
WaterSense logo impressions,
a 12% increase over 2011
Certified by
IAPMO R&T
WaterSense, a partnership program
by the U.S. Environmental Protection
Agency, seeks to protect the future of
our nation’s water supply by offering
people a simple way to use less water
with water-efficient products.
35 billion+
gallons of water saved by our
customers in 2012 through the
sale of WaterSense products
$33 million
in consumer price reduction
incentives for WaterSense
products in 2012
$250 million+
saved on water utility bills from
purchases of WaterSense products
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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 5,600 WaterSense
products offered both
online and in stores.
26 |
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.
®
This report was printed using 100% post-consumer recycled and FSC-certified materials.