The Home Depot Reduced Carbon Emissions by More Than 127,000 Metric Tons in 2020; Commits to 100 Percent Renewable Electricity for Facilities by 2030

Rhea-AI Summary

The Home Depot reported a significant reduction of over 127,000 metric tons in Scope 1 and 2 carbon emissions, achieving a 22% reduction in carbon intensity in 2020. The company aims for 100% renewable electricity by 2030, enhancing its environmental initiatives. The company also joined the Science Based Targets initiative, committing to set Scope 1, 2, and 3 goals by 2023. In fiscal 2020, it recorded $132.1 billion in sales, with earnings of $12.9 billion, while prioritizing diversity, equity, and community support.

Positive

• Achieved a 20% growth in business in 2020.
• Reduced carbon emissions by over 127,000 metric tons and carbon intensity by 22%.
• Aiming for 100% renewable electricity in facilities by 2030.
• Recognized as one of Forbes' Best Employers for Diversity.

Negative

• None.

ATLANTA, July 27, 2021 /PRNewswire/ -- The Home Depot^®, the world's largest home improvement retailer, reduced Scope 1 and 2 carbon emissions by more than 127,000 metric tons in 2020—a 22 percent reduction in carbon intensity—while at the same time growing the business nearly 20 percent. The company announced a goal to reach 100 percent renewable electricity for its facilities by 2030, further extending its efforts to improve the environment through cleaner energy.

The Home Depot also joined the Science Based Targets initiative (SBTi) to reduce global emissions, committing to set goals for Scope 1, 2 and 3 emissions by 2023. These updates and additional goals were released in its 2021 ESG Report outlining the company's environmental, social and governance initiatives and progress made in 2020.

"Our commitment to reducing our impact on the planet, taking care of our people, and building strong, sustainable communities is foundational to who we are," said Craig Menear, chairman and CEO of The Home Depot. "More than 40 years ago, our founders gave us eight core values that continue to guide our business today. The progress we made in 2020 demonstrates the commitment of our associates and suppliers to these values, as they prioritized taking care of our associates, customers and communities, as well as the environment, while navigating a year unlike any other."

The Home Depot's corporate responsibility strategy is organized around three pillars: focusing on its people, operating sustainably and strengthening communities.

Focusing on Its People

The Home Depot is committed to taking care of its people and furthering efforts to promote diversity, equity and inclusion. In 2020, its U.S. hires were 35 percent female and 53 percent ethnically and racially diverse. The company was recently recognized as one of Forbes' Best Employers for Diversity.

The company enhanced its 20-year diversity and inclusion initiative, elevating the Chief Diversity Officer role, growing its Diversity, Equity and Inclusion (DEI) program and setting a goal to expand associate resource groups.

In fiscal 2020, the company paid approximately $2 billion in enhanced pay and benefits to front-line, hourly associates in response to COVID-19. It also paid $616 million in record success-sharing bonus payments to non-management associates.

Operating Sustainably

As part of its existing pledge to reduce carbon dioxide emissions by 40 percent by 2030 and 50 percent by 2035, the company reduced its Scope 1 and 2 carbon emissions by more than 127,000 metric tons in 2020. It accomplished this by driving efficiencies and investing in green energy.

The Home Depot reduced U.S. store electricity consumption by 44 percent from 2010 to 2020. In 2020 alone, electricity use in U.S. stores fell more than 14 percent due to the installation of LED lighting, the use of building-automation systems and the addition of energy-efficient heating, air conditioning and ventilation systems.

The company also continues to make progress toward its goal to remove expanded polystyrene (EPS) foam and polyvinyl chloride (PVC) film from private-brand packaging by 2023, replacing these products with innovative recyclable materials.

Strengthening Communities

Throughout 2020, The Home Depot continued to prioritize taking care of the communities where it operates. It contributed more than $50 million in funds and supplies to support communities impacted by COVID-19, including nearly 3.4 million N95 masks to help front-line healthcare workers nationwide.

The company also crossed a milestone of investing more than $35 million since 2017 in organizations working to improve social equity and announced a commitment to double its investment in the Retool Your School program benefiting historically Black colleges and universities (HBCUs) to a million dollars annually.

In 2020, The Home Depot spent $3.2 billion with diverse suppliers and announced it is creating a program to encourage suppliers to increase their business with diverse suppliers, expanding the company's downstream impact with diverse organizations nationwide.

The Home Depot Foundation continues its work to serve veterans, train tradespeople and respond to communities impacted by natural disasters. In fiscal 2020, the foundation reached the $350 million mark on the way to its pledge of half a billion dollars to veteran causes by 2025. As part of its commitment to train 20,000 tradesmen and women by 2028 and invest $50 million to fill the skilled labor gap, the foundation has trained 15,000 tradesmen and women and certified 5,000 since 2018.

In 2020, it also committed $4 million to communities impacted by natural disasters.

To read The Home Depot's 2021 ESG Report visit https://thd.co/2021ESGReport.

About The Home Depot

The Home Depot is the world's largest home improvement specialty retailer. The Company operates a total of 2,298 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. In fiscal 2020, The Home Depot had sales of $132.1 billion and earnings of $12.9 billion. The company employs approximately 500,000 associates. The Home Depot's stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poor's 500 index.

Certain statements contained herein 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 vendors; 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. These statements 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 from our expectations and projections. These risks and uncertainties include, but are not limited to, those described in Item 1A, "Risk Factors," and elsewhere in our Annual Report on Form 10-K for our fiscal year ended January 31, 2021 and in our subsequent Quarterly Reports on Form 10-Q.

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. You are advised, however, to review any further disclosures we make on related subjects in our periodic filings with the Securities and Exchange Commission.

 

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SOURCE The Home Depot

FAQ

What carbon emissions reduction did The Home Depot achieve in 2020?

The Home Depot reduced its Scope 1 and 2 carbon emissions by over 127,000 metric tons, achieving a 22% reduction in carbon intensity.

What are The Home Depot's renewable energy goals?

The Home Depot has committed to achieving 100% renewable electricity for its facilities by 2030.

What was The Home Depot's total sales in fiscal 2020?

In fiscal 2020, The Home Depot reported total sales of $132.1 billion.

How much profit did The Home Depot make in fiscal 2020?

The Home Depot recorded earnings of $12.9 billion in fiscal 2020.

What diversity initiatives does The Home Depot have?

In 2020, The Home Depot's U.S. hires were 35% female and 53% ethnically and racially diverse, alongside enhanced diversity programs.