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2021

ESG Report
D O I N G O U R PA R T

2021 ESG Report The Home Depot FC1


FC2 The Home Depot 2021 ESG Report
CONTENTS
This report covers The Home Depot’s year of environmental, social and governance (ESG) progress in 2020.

Overview 84 Gardening
86 Cleaning
04 CEO Letter: Doing Our Part Makes Our
88 Residential Solar
Company Stronger
90 Waste Management & Recycling
06 Engaging Stakeholders & Setting Priorities
92 Sustainable Packaging
08 Materiality Assessment Framework
10 Materiality Touchpoints
12 Home Depot Goals
14 ESG Transparency Strengthen Our Communities
16 2020 Ratings & Recognition 98 Community Partnerships
18 FAQ: Growing Sustainably 100 Supplier Diversity
20 2020 Highlights 102 Retool Your School
104 The Home Depot Foundation
106 Team Depot
Focus on Our People 112 U.N. Sustainable Development Goals
24 Diversity, Equity & Inclusion
34 Associate Engagement
36 Learning & Development International Retail Operations
40 Benefits 116 Canada
46 The Homer Fund 118 Mexico
48 Associate Safety

Our Business
Operate Sustainably 122 Code of Conduct
Protecting the Climate 124 Corporate Governance
54 Carbon Footprint 126 Government Relations
56 Store Operations 128 Corporate Taxes
62 Supply Chain 130 Data Security & Privacy

Sourcing Responsibly
64 Ethical Sourcing Reporting Framework
66 Conflict Minerals 134 Global Reporting Initiative (GRI) Standards
68 Sustainable Forestry 141 Sustainability Accounting Standards Board
(SASB) Disclosure Matrix
Reducing Environmental Impact 144 Task Force on Climate-Related Financial
70 Greener Products Disclosures (TCFD) Framework
74 Circularity 146 EEO-1 Report
78 Responsible Chemistry
82 Energy-Saving Products
83 Water-Saving Products

Note: Unless otherwise indicated, this report does not include data for HD Supply Holdings Inc., which was acquired on Dec. 24, 2020.

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OVERVIEW
RESOURCES

> Resources & Reports


> Corporate Responsibility

2 The Home Depot 2021 ESG Report


“For The Home Depot, the events of 2020
highlighted, perhaps more than ever, the critical
importance of our culture.”
– Craig Menear, Chairman and CEO

Forward-Looking Statements: All statements in this report that are not historical 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 service providers; 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. They 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. These risks and uncertainties include, but
are not limited to, those described in the “Risk Factors” section and elsewhere in our most recently filed Annual Report on Form 10-K
and Quarterly Report on Form 10-Q and also in future reports we file with the Securities and Exchange Commission. We encourage
you to review these filings. 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.

Note on Materiality: Materiality, as used in this report, and our materiality assessment process, is different than the definition used
in the context of filings with the Securities and Exchange Commission. Issues deemed material for purposes of this report may not be
considered material for SEC reporting purposes.

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CEO LETTER

DOING OUR PART MAKES


OUR COMPANY STRONGER
When our founders opened the first Home resulted in record Success Sharing awards
Depot store, they did so with a well-defined for non-management associates, adding up
We organize our approach
culture. More than 40 years later, our eight to approximately $616 million.
to corporate responsibility core values and our commitment to put
around three key pillars: customers and associates first are still the We continued to focus on our people by
focusing on our people, lens through which we view every decision. furthering workplace diversity and inclusion.
operating sustainably So, running a responsible and sustainable Respect for all people has always been
and strengthening our company is foundational to our business. one of our core values, and 20 years ago
communities. Doing our part creates value for all of our we formalized diversity and inclusion as a
stakeholders. corporate initiative. In 2020, we enhanced
our efforts with a focus on equity and
We all know 2020 was filled with challenges renamed our program Diversity, Equity &
as the world navigated a pandemic, people Inclusion (DEI). We also elevated the chief
protested across the globe and we felt diversity officer role to drive strategic focus
the effects of record-setting wildfires in and alignment across our business. In
the West and the most active Atlantic 2020, over 35% of our hires were women,
hurricane season ever. For The Home Depot, and nearly 53% were ethnically and racially
the events of 2020 highlighted, perhaps diverse. We’re proud of that progress, but
more than ever, the critical importance of we know there is more work to do. We are
our culture. This report captures how we intentional in striving for improvement.
responded with fortitude to a year like no
other — and made progress along the way. We also made progress in 2020 by operating
more sustainably, including by reducing
We navigated this unprecedented electricity consumption in our U.S. stores
environment by aligning our decisions more than 14% year over year. We’ve cut
and actions to two of our most important U.S. store electricity use a remarkable
values: doing the right thing and taking 44% since 2010. This far exceeds the goal
care of our people. We adjusted our we set a few years ago to reduce store
business to promote safe shopping and kilowatt-hour electricity use 20% by 2020.
working environments. We supported our That’s a big reason we are on track to meet
communities by contributing over $50 million our science-based target, set in 2020, to
in funds and supplies to support community decrease our emissions to achieve 40%
needs during COVID-19. reduction by 2030 and 50% reduction by
2035. In addition, we’ve committed to having
In fiscal 2020, we invested approximately 100% renewable electricity for all Home
$2 billion in enhanced pay and benefits Depot facilities worldwide by 2030.
to help alleviate some of the challenges
associates faced because of the pandemic. Since our founding, supporting our
We’ve now transitioned to permanent communities has been central to our
compensation enhancements for our front- business — not only in moments of crisis,
line, hourly associates. The outstanding but through initiatives that build strength
performance of our people in 2020 also over the long term. For example, in 2020,

4 The Home Depot 2021 ESG Report


we increased our spending with diverse
suppliers, further investing in businesses that
“Running a responsible
provide The Home Depot with innovative
products and create jobs in the communities
and sustainable company is
we serve. We value the fresh ideas and
entrepreneurial spirit our diverse suppliers
foundational to our business.
bring to our partnerships. Doing our part creates value
We also value our nonprofit partners that for all of our stakeholders.”
enable The Home Depot Foundation to
improve the homes and lives of U.S. veterans,
– Craig Menear, Chairman and CEO
train skilled tradespeople to fill the labor gap
and support communities affected by natural
disasters. The Foundation is on track to
contribute half of a billion dollars to veteran
causes by 2025. In 2020, we reached a
milestone of $350 million toward that goal.

We know that when we invest in running a


responsible, sustainable company, we make
our business stronger, more flexible and
more resilient. I am incredibly proud of all we
accomplished in 2020 and want to thank our
associates for the many ways they enable us
to do our part and live our values every day.

Craig Menear
Chairman and Chief Executive Officer

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ENGAGING STAKEHOLDERS
& SETTING PRIORITIES
One of the best ways of understanding our By better understanding our impact and
environmental, social and governance (ESG) collaborating with stakeholders, we position
We value seeing ESG
impact is by listening to and talking with our our company to set objectives that allow us
impact and opportunities broad spectrum of stakeholders. We seek to contribute to building a better business,
through our operational out this dialogue with stakeholders and workplace and world.
lens and also through the welcome ESG-related feedback that comes
lenses of our stakeholders. to us in multiple ways. Our Sustainability Council, composed of
representatives from different areas of
Customers ask us questions every day the business, oversees our approach to
as they shop with us in stores and online. sustainability. Members of the Council share
Individuals and organizations from around stakeholder feedback from their functional
the globe reach out to us with questions areas. The Council focuses on several key
or concerns about our operations or areas, as shown below.
products. We meet with shareholders and
nongovernmental organization (NGOs)
The Council meets twice a year, and its
interested in our business practices. We take
chair presents our sustainability strategy
part in industry efforts to raise awareness
and activities to the Board of Directors
about the ESG responsibilities we all share.
annually. Our ESG priorities and plans are
communicated internally and externally via
Our ongoing interactions may be formal various channels, including in this annual
or informal, as detailed in our Materiality report.
Assessment Framework on Page 8. These
interactions help validate our own materiality
assessment; they also help us gauge the
impact of our business, refine ESG priorities,
measure our progress and design ways
to improve.

AREAS OF
FOCUS
People Communities Climate Energy
Change Reduction

Waste & Chemical Natural Responsible Corporate


Recycling Concerns Resources Sourcing Governance

6 The Home Depot 2021 ESG Report


OUR STAKEHOLDERS Stakeholders share their
perspectives on our ESG
practices. Their input
helps shape our strategy.

Associates Customers
“I am proud to be a contributing “Be a global-impact conscious
team member of a values-based company, and provide products
organization.” that help me reduce my home’s
environmental impact.”

Academia Suppliers Communities


“Give us insight into “Give us an outlet to market “Support me and my neighbors
customer trends and habits innovative, sustainable by making a positive difference in
to aid our research.” products and a way to gather our community.”
timely customer feedback.”

NGOs Investors Government


“Work with us to elevate our “Tell us your material risks and “Create partnerships with local,
causes to action and progress.” how you handle oversight of state and federal officials that
them.” help bridge industry innovation to
public policy advancement.”

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MATERIALITY ASSESSMENT
FRAMEWORK
This chart outlines the process The Home Depot uses to assess, prioritize and address material sustainability issues.

STEP 1 Identify Potential


Sustainability Issue
(examples)
STEP 2 Trigger Materiality
Assessment STEP 3 Engage Relevant
Internal Business
Teams

Chemicals

Corporate
Circular Economy Communications

CATALYSTS
Fuel Cells Government Relations

Global Warming Material Human Resources


Issues Identified
by The Home
Human Capital Management Depot Information Technology

Invasive Plants Investor Relations

Organics OR Legal

Pollinator Health Merchandising

Rainforest Depletion Issues Identified Operations


by Concerned
Stakeholders
Recycled Content Real Estate &
Construction

Renewable Energy
Supply Chain

Worker Well-Being

8 The Home Depot 2021 ESG Report


STEP 4 Gather
Information and
Recommendations
STEP 5 Develop
Solution STEP 6 Establish
Ongoing Plan STEP 7 Continue
Progress

Educate
Concerned
Home Depot Stakeholders
Experts
Share
OR Findings

Modify
Current
Path

Fact-Finding,
Data Collection, Track Set
OR
Scientific and Report Improvement
Research Goals

Monitor
and Review
Periodically

OR
Test
Alternatives
Concerned
Stakeholders
Exit
Program

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MATERIALITY TOUCHPOINTS
Materiality Touchpoints Key Impacted Stakeholders

Nongovernmental

Local Community
Organizations

Academics &
Government
IMPACTS

Customers
Associates

Educators
Suppliers

Investors
Focus on Our People
People

Associate Development Training, education, promotion, support

Associate Well-Being Safety, health, wages, hours

Diversity, Equity Associate engagement, workforce diversity,


& Inclusion talent acquisition, associate resource groups
Ethics, culture, data privacy and security,
Governance
risk management

Third-Party Worker
Safety, health, wages, hours, unforced labor
Well-Being

Operate Sustainably | Operations

Energy Use Carbon emissions

Hazardous Materials Waste, disposal

Waste Recycling, landfill, incineration

Water Use Responsible consumption

Operate Sustainably | Products

Eco Options,Eco Actions, WaterSense,


Eco Products Energy Star, Chemical Strategy, Wood
Purchasing Policy

End of Life Circularity, waste, recycling

Natural resources, chemicals, carbon


Manufacturing Process
emissions, packaging

Transportation Carbon emissions

Strengthen Our Communities


Innovation, mentoring, business growth,
Supplier Diversity
networking
Diverse, equitable and inclusive communities,
Community Support trades training, veterans and military families,
disaster response

10 The Home Depot 2021 ESG Report


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GOALS PROGRESS KEY


Just getting started
The Home Depot sets goals to drive ESG progress, Making progress
benefiting our associates, customers, suppliers and
communities, as well as our company. Achieved our goal

GLOBAL IMPACT: PEOPLE

Expand associate resource groups to include more PROGRESS Goal Date: 2021
FOCUS ON OUR PEOPLE

associates and increase engagement and participation

Create career advancement opportunities for 50,000 PROGRESS Goal Date: 2023
front-line associates over a five-year period

Invest more than 1 million hours per year over five years in PROGRESS Goal Date: 2023
training and development to help our front-line associates
grow their careers

GLOBAL IMPACT: CLIMATE

Committed to setting Science Based Targets initiative (SBTi) PROGRESS Goal Date: 2023
Scope 1, 2 and 3 goals by 2023 to reduce emissions in line
with Paris Agreement goals
HOME DEPOT PILLARS

100% renewable electricity for all Home Depot facilities PROGRESS Goal Date: 2030
OPERATE SUSTAINABLY: OPERATIONS

worldwide by 2030

Science-based target to reduce emissions 40% by 2030, PROGRESS Goal Date: 2030, 2035
50% by 2035

PROGRESS Goal Date: 2025


Procure/produce 335 megawatts of renewable or
alternative energy

Procure/produce 135 megawatts of renewable or PROGRESS Goal Date: 2020


alternative energy

20% reduction in U.S. store kilowatt-hour electricity PROGRESS Goal Date: 2020
use, compared to 2010 levels

Help reduce customers’ greenhouse gas emissions by PROGRESS Goal Date: 2020
20 million metric tons

12 The Home Depot 2021 ESG Report


GLOBAL IMPACT: RESPONSIBLE CHEMISTRY

PROGRESS Goal Date: 2022


Eliminate certain chemicals from cleaning products

PROGRESS Goal Date: 2020


Eliminate certain chemicals in paint

PROGRESS Goal Date: 2019


Eliminate neonicotinoids from live goods

PROGRESS Goal Date: 2018


Eliminate certain chemicals in carpet
OPERATE SUSTAINABLY: PRODUCTS

PROGRESS Goal Date: 2018


Eliminate certain chemicals in insulation

PROGRESS Goal Date: 2017


Reduce formaldehyde levels in laminate/engineered flooring

PROGRESS Goal Date: 2016


Remove ortho-phthalates from vinyl flooring

GLOBAL IMPACT: PLANET

Exclude expanded polystyrene (EPS) foam and polyvinyl PROGRESS Goal Date: 2023
chloride (PVC) film from private-brand packaging
HOME DEPOT PILLARS

Help customers save $2.8 billion on utility bills PROGRESS Goal Date: 2020
through energy-efficient products

PROGRESS Goal Date: 2020


Help reduce consumers’ water use by 250 billion gallons

Implement additional requirements regarding tropical PROGRESS Goal Date: 2018


deforestation standards
(ongoing monitoring)

GLOBAL IMPACT: COMMUNITIES

Launch a Tier II supplier diversity program that measures and PROGRESS Goal Date: 2022
STRENGTHEN OUR

encourages our Tier I suppliers’ spending with diverse suppliers


COMMUNITIES

The Home Depot Foundation will contribute PROGRESS Goal Date: 2025
$500 million to veteran causes with a focus on housing

The Home Depot Foundation will invest $50 million to PROGRESS Goal Date: 2028
train 20,000 skilled tradespeople, including veterans

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ESG TRANSPARENCY
This chart highlights The Home Depot’s key ESG metrics. The COVID-19 pandemic had an impact on many 2020 results. For example,
customer demand and supply chain volume rose substantially. In addition, we saw a decline in some materials collected from customers
through our in-store recycling programs. We also temporarily halted Team Depot community volunteer projects and associate fundraising
for The Homer Fund. Data from 2018 reflects the calendar year. Data for 2019 and 2020 reflects the fiscal year, except as otherwise
noted. For detailed diversity, equity and inclusion data, see pages 28-31.

2018* FY 2019 FY 2020


Associates
Underrepresented minority groups among new hires in the U.S. 51.7% 52.3% 52.8%
Women among new hires in the U.S. 33.5% 33.4% 35.5%
Our People
Focus on

Success Sharing paid to associates $227 million $201 million $616 million
Homer Fund assistance paid to fellow associates $13 million** $16 million $16.2 million
Percentage of associates contributing to The Homer Fund 95% 95% ***

Lost time incident rate per 200,000 hours§ 0.87 1.21 1.07
Recordable incident rate per 200,000 hours §
4.48 4.89 4.03

Carbon Emissions
CDP Climate Change score A A- §§

Estimated reduction of customers’ GHG emissions through the


purchase and proper use of energy-saving products (MT CO2e) 7 million 6.9 million 7.6 million
(includes Energy Star, 5.2 million MT in 2020)
Direct (Scope 1) GHG emissions (MT of CO2e)* 516,000 554,000 607,000
Indirect (Scope 2) GHG emissions (MT CO2e)* 1,649,000 1,394,000 1,214,000
Reduction of GHG emissions since 2009 (MT CO2e; Scope 1&2)*§ - 959,000 -1.2 million -1.3 million
Reduction of GHG emissions since 2009* §
-31% -38% -42%
Number of stores with fuel cell energy source 202 203 203
Operate Sustainably

Fuel cell energy capacity for U.S. operations (MWac) 40.3 40.9 40.9
Solar energy capacity companywide, rooftop and off-site (MWac) 42.0 44.6 62.9
Wind energy capacity companywide (MWac) 62 62 62
Diesel used (MWh)*§ 115,150 106,922 199,176
Electricity purchased (MWh)* 3,897,083 3,479,171 3,103,115
Electricity generated (MWh)* 295,443 308,566 302,200
Natural gas used (MWh)* 2,236,023 2,371,696 2,457,439
Propane used (MWh)* 204,485 247,669 272,844
Energy consumption within the organization (MWh)*§ 6,849,960 6,634,705 6,445,071
GHG emissions intensity Scope 1+2 (MT of CO2e per billion
20,013 17,675 13,784
U.S. dollars of revenue)*§

Operating Sustainably
Reduction of kWh used by U.S. stores, year over year -3.40% -11.79% -14.11%
Rechargeable battery recycling by all stores (pounds) 1,043,300 1,170,200 1,240,400
CFL bulb recycling (pounds) 800,500 804,300 562,700

14 The Home Depot 2021 ESG Report


2018* FY 2019 FY 2020

Lead-acid battery recycling (battery cores) 218,000 235,200 184,600


Cardboard recycling (tons) 248,400 250,600 261,500
Nonhazardous waste generated (MT) 796,228 851,330 919,574
Waste sent to landfill (MT) 551,661 575,344 627,196
Waste recycling (MT) 244,568 275,986 292,378
Waste incineration (pounds) 2,109,756 2,331,110 3,015,366
Fuel blending (pounds) 5,274,318 5,207,933 5,497,055

Responsible Sourcing
Combined factory audits and follow-up visits by THD 3,011 3,044 3,012
Product tests conducted by third parties 25,856 42,758 34,774
Transit tests conducted by third parties 27,695 20,640 22,603
Operate Sustainably

Pre-shipment product inspection visits 20,196 21,482 26,243


Expanded polystyrene (EPS) foam elimination (CF) 517,600 19,100 873,200
Polyvinyl chloride (PVC) film elimination (SF) 1,628,900 5,729,000 961,100

Products
Number of restricted substance categories in Chemical Strategy 7 8 8
Energy-saving products offered in stores and online
22,000 24,677 23,668
(includes Energy Star, 8,554 in 2020)
Energy-saving product sales (includes Energy Star, $5.19 billion
$5.79 billion $6.03 billion $8.76 billion
in 2020)
Estimated annual customer savings from purchase and proper use of
$1.2 billion $1.2 billion $1.4 billion
energy-saving products (includes Energy Star, $1 billion in 2020)
Water-saving products offered in store and online
9,000 9,460 9,994
(includes WaterSense, 4,759 in 2020)
Water-saving product sales (includes WaterSense, $1.56 billion
$1.35 billion $1.36 billion $1.65 billion
in 2020)
Estimated annual customer savings from purchase and proper use of
$655 million $650 million $746 million
water-saving products (includes WaterSense, $726 million in 2020)
Residential solar installations 18,291 3,283 4,518

Community
Strengthen Our

Home Depot spend with diverse suppliers $2.1 billion $2.1 billion $3.2 billion
Communities

The Home Depot Foundation grants $74.9 million $82.6 million $52.9 million
Veterans’ homes and facilities improved 5,830 5,527 1,831
Team Depot volunteer hours 240,000 315,000 ***
U.S. political contributions by The Home Depot PAC $1,995,566 $2,282,468 $1,885,107
U.S. corporate political contributions $200,000 $150,000 $420,000

All monetary amounts are U.S. dollars.


* Reflects calendar year data.
** Grant modifications within the Matching Grant program resulted in a decrease in Matching Grant awards, causing an overall decrease in giving in 2018.
*** Annual activities halted in 2020 because of the pandemic; did not track.
§
Previously reported data was updated to conform to current year presentation.
§§
Not available at time of publication.

CF = cubic feet GHG = greenhouse gas MW = megawatts SF = square feet


CO2 = carbon dioxide kWh = kilowatt hours MWac = megawatts of alternating current
CO2e = CO2 + other greenhouse gas emissions MT = metric tons MWh = megawatt hours

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RATINGS
Leading third-party sustainability rating organizations monitor and report on our progress. Below are some key ratings for our
company in 2020.

Assesses action on climate change;


Positions The Home Depot
score was based on 2019 data, the A- as an industry leader
latest available

Analyzes corporate environmental, LOW Our ESG risks are low compared
social and governance (ESG) progress RISK to the industry

Measures ESG risk and performance On a scale of 0-5; we rank better


of publicly traded companies 3.4 than the industry average of 2.3

Our score has improved from an


Grades retailers’ progress in selling initial C+ in 2017; current score is
products with safer chemicals B from March 2021, no scores were
given in 2020

Second-highest rating; positions


Measures resilience to long-term,
financially relevant ESG risks AA us as an industry leader in key
ESG areas

16 The Home Depot 2021 ESG Report


RECOGNITION
Here are some of the organizations that recognized our efforts in 2020 to build a better workplace, business and world.

Investor’s Business Daily National Retail Gartner Omnikal


No. 22 — Best ESG Federation No. 46 — Top Supply No. 31 — Top 50
Companies No. 6 — Top Retailers Chains Organizations for
Multicultural Business
Opportunities

Fortune Forbes Human Rights Military Friendly


No. 21 — Most Admired • No. 32 — World’s Best Campaign • Employer
Companies Employers Corporate Equality Index • Spouse Employer
• No. 34 — World’s Most • Supplier Diversity
Valuable Brands
Program
• No. 81 — Best Employers
for Veterans

Comparably Atlanta Business Canada’s Best Diversity Corporate Social


• Best Company Work- Chronicle Employers Responsibility Award
Life Balance HR Excellence for Leading 12th Consecutive Year for Labor Equality &
• Best Company Transformational Change Nondiscrimination —
Happiness & Culture Mexico

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FAQ: GROWING
SUSTAINABLY
Chief Sustainability Officer Ron Jarvis has product volume, we forged ahead with
spent two decades driving sustainability our previously planned operational
When we make progress
improvements at The Home Depot. Some of improvements. The energy-saving,
in reducing The Home the frequently asked questions he responds emissions-reducing efficiencies we’ve
Depot’s environmental to offer insights into our progress. gained in recent years helped decrease
impact, we strengthen our carbon intensity. In 2020, we
our business and the achieved a 22% reduction in the amount
communities we serve. of carbon dioxide emitted for each
Q. How are you reducing carbon dollar of revenue we earned, compared
emissions related to company to 2019. Learn more on Page 54.
operations?

A. We have made strides in decreasing


emissions across our business. Our
U.S. stores cut electricity consumption
Q. What are you doing about the
environmental impact of products
more than 14% year over year in
sold at The Home Depot?
2020 through our diligent efforts to
find electricity savings storewide. LED
lighting upgrades were a big part of that
A. We understand that our biggest impact
on the environment comes from
success. Go to Page 56 to find out how the products we sell. We continue
we’re saving electricity in our stores. to work with our suppliers to make
products more sustainable through
In 2020, we moved more products than improvements in materials sourcing,
ever as customers turned to us for chemistry, packaging, manufacturing
appliances, air-conditioning systems, and distribution. We track the product-
cleaning products and other essentials. related emissions embedded in
As we managed a 20% increase in manufacturing, distribution and our

“We understand that our biggest impact on the


environment comes from the products we sell.
We continue to work with our suppliers to make
products more sustainable.”

Ron Jarvis
Chief Sustainability Officer

18 The Home Depot 2021 ESG Report


customers’ use of products, using bills and reduce their greenhouse
industry-recognized methodology and emissions by 20 million metric tons
technology tools that get more precise through the purchase and proper
every year. We also help our customers use of the energy-saving products
select products and projects that we sell.
can improve the sustainability of their
• Achieved our goal to help
households through our third party-
customers reduce their water
certified Eco Options labels and our
consumption by 250 billion gallons
Eco Actions website for green-minded
through the purchase and proper
DIYers. Discover more on Page 70.
use of the water-saving products
we sell.
• Hit our target to exclude certain

Q. The Home Depot achieved chemicals from the paints we sell.


For more details on our responsible
several of its stated
chemistry progress, go to Page 78.
environmental goals in 2020.
Walk us through that progress.

A. As outlined in our Goals section (see


Page 12), our company in 2020: Q. What sustainability trend excites
• Exceeded our goal to reduce U.S. you the most for its near-term
store kilowatt-hour electricity use potential?
20%, compared to 2010 levels. We
actually cut electricity consumption A. Waste reduction through circularity.
Through years of manufacturing, we
in our U.S. stores 44% between
2010 and 2020. now have an abundance of resources
that can be repurposed, recycled and
• Completed our goal to procure reused to produce new products. With
or produce 135 megawatts of the support of our suppliers, The Home
renewable or alternative energy. Depot is continually searching for
We’ve now set even more ambitious ways to use these existing resources
goals, including adding 200 to drive efficiency and reduce waste.
megawatts in a pledge to buy Our partnership with Trex is a great
or generate 335 megawatts of example. We send our plastic waste to
renewable or alternative energy by Trex — including more than 8,000 tons
2025. of plastic shrink wrap every year. Trex
• Achieved our goals to help transforms it into decking that doesn’t
customers save $2.8 billion on utility rely on wood. Learn more on Page 75.

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2020 HIGHLIGHTS
Our core values guide how we focus on our people, operate sustainably and strengthen our communities and provide a
benchmark for measuring progress. These highlights reflect progress made in 2020.

FOCUS ON OUR PEOPLE


+ +
Our Homer Fund has awarded nearly

$215 million
We invested approximately

$2 billion
in enhanced pay and benefits
to ease front-line associates’
in grants, assisting over
157,000
COVID-19 challenges associates since 1999

+ +
More than

Nearly
90%

of our store leaders


35% and nearly 53%
started as hourly associates of our hires were were ethnically/
women racially diverse

+
Nearly
9 out of 10 associates
favored workplace safety measures we put in place to
help reduce exposure to the COVID-19 virus

20 The Home Depot 2021 ESG Report


OPERATE SUSTAINABLY

+ + +
We reduced our Scope 1 and 2 carbon
emissions by over 127,000 metric tons,
We decreased
electricity consumption 71
44%
equivalent to taking more than
U.S. Stores
27,600 cars in our U.S. stores from
operated solar farms on
their rooftops – up from
off the road for a year 2010 to 2020 47 in 2019

+ We’ve pledged to have


+

100%
We redesigned

49 private-brand packages
to reduce waste. We also eliminated enough
renewable electricity

441
for all Home Depot facilities
expanded polystyrene foam to fill worldwide by 2030

school buses + Our customers dropped off over


and enough plastic polymer film to cover
1.2 million pounds
16 football fields of rechargeable batteries with us for
recycling — up 32% since 2014

STRENGTHEN OUR COMMUNITIES


+ + +
The Home Depot Foundation We contributed more than
reached a milestone of giving
$50 million
$350 million
toward our pledge to donate $500 million
in funds and supplies to
support community needs
to veteran causes by 2025 during COVID-19

+ + Our company
Since 2018, we’ve helped introduce
We’re creating more donated nearly
15,000+ people
opportunities for
diverse businesses to skilled trades and helped certify 3.4 million
by asking our
suppliers to spend
5,000+ participants N95 masks to help
protect front-line health
more with them in trades training programs care workers

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Overview
Contents Our People Sustainably Our Communities Retail Operations Business Framework

FOCUS ON
OUR PEOPLE
RESOURCES

> Diversity, Equity & Inclusion > Home Depot Benefits4U


> Home Depot Core Values > The Homer Fund
> Military Transition Portal
> Associate Resource Groups

22 The Home Depot 2021 ESG Report


GOALS By the end of 2021,
expand associate
resource groups
We focus on our people by striving
to include more associates
for an environment centered on The
Home Depot’s core value of respect for
and increase engagement
all people, where diversity, equity and and participation
inclusion are celebrated and associates
have opportunities to grow. We believe
our approximately 500,000 associates
are our greatest asset, and they
Create enhanced career
differentiate us in the marketplace.
opportunities for

50,000
front-line associates
over a five-year period
ending in 2023

Invest more than

1 million
hours per year through 2023
in training and development to
help our front-line associates
grow their careers

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DIVERSITY, EQUITY &


INCLUSION
In 2020, we pledged to intensify our efforts In 2020, we established three key areas of
as a company to make a meaningful, focus to create change and make a bigger
We strive to create an
sustainable difference in accordance impact.
environment centered on with our value of respect for all people.
our core value of respect While we’ve long had a formal diversity ASSOCIATES
for all people, where and inclusion program to help diversify
diversity, equity and our workforce and support change in our • Increasing diverse representation
inclusion fuel associate communities, we expanded the scope in throughout our organization
engagement and career 2020 and renamed it to fit an enhanced • Creating an environment where every
growth. mission: Diversity, Equity & Inclusion (DEI). associate feels included and valued
for who they are
Adding equity to our focus reflects our
desire to promote fairness, remove bias • Promoting equal opportunity
and ensure all of our associates have in recruitment, hiring, training,
access to the resources they need to development and advancement
succeed at work.
COMMUNITY
During this time, we elevated the role
of Derek Bottoms, vice president of • Striving to close the wealth gap
associate relations, to also serve as our • Advancing education for all
chief diversity officer to bolster leadership
of these efforts. (Meet Derek on the
opposite page.) We additionally laid the SUPPLIERS
foundation to further grow our team and • Increasing our penetration and spend
develop a roadmap for progress. At The with diverse suppliers
Home Depot, we define diversity, equity
and inclusion as: • Developing diverse suppliers by
providing mentorship and shared
resources
Diversity: Composition of people, such
as their similarities and differences (e.g.,
gender, race/ethnicity, sexual orientation). Learn more about how our spending with
DID YOU KNOW diverse suppliers benefits our company
The Home Depot career Equity: Norms, practices and policies and our communities on Page 100.
website offers candidates in place that ensure just and fair
a look at our commitment opportunities and outcomes, allowing In 2021, we are taking thoughtful actions
to DEI. In addition, we individuals to reach their full potential. in each of these three focus areas and
connect with veterans and related strategic priorities to create
their spouses through our Inclusion: How we embrace and enable meaningful change.
military transition portal. our associates to feel safe, respected,
engaged, motivated and valued for who
they are and their contributions to the
organization.

24 The Home Depot 2021 ESG Report


In 2020, over
35% of our hires were women,
and nearly 53%
were ethnically diverse.

Supporting Diversity is Doing the Right Thing

Derek Bottoms, chief diversity officer and Through our partnerships with community
vice president of associate relations, gives organizations focusing on arts, housing,
his take on our expanded focus on DEI. education and entrepreneurship, we are striving
to play our part in helping close the wealth
gap and advancing education for all. And we
Q: Is The Home Depot thinking differently are expanding our supplier diversity program,
about diversity now? which we believe ultimately drives innovation,
Vision Statement A: We are a values-based organization, and economic opportunities and shareholder value.
our values have always guided our business
The Home Depot is building decisions and the way we treat each other. For
a more diverse, equitable The Home Depot, diversity has always been Q: What are some of the projects you’re most
and inclusive organization, important. The highlight on social injustice excited about?
within our enterprise and the and the resulting events following the death A: We’re expanding our associate resource
of George Floyd created a fierce urgency, groups and diversity business councils to include
communities we are proud to
and that reinforced our focus on supporting and engage more associates, growing the
serve. Grounded in our core programs from our Store Support Center to our
diversity, equity and inclusion among our
values, we have the conviction, stores and supply chain facilities. (Learn more
associates, communities and suppliers.
capabilities and tools to make about ARGs on Page 35.)
a difference for our associates,
community and suppliers. Q: How is that urgency turning into action? We’re also laying the foundation for a Tier
A: Our expanded focus on diversity, equity II supplier diversity program to create more
and inclusion has laid the groundwork for economic opportunities for diverse businesses,
three key areas centered on our associates, including our existing supplier partners. Here’s
community partnerships and supplier diversity. how that can make a difference. Our Tier I
Mission Statement As we grow our team, I am confident in the suppliers are those we spend with directly. Those
direction that our convictions, capabilities and dollars that begin with The Home Depot go
The Home Depot ignites
tools will take us to enable our people and our on to fuel our suppliers’ spending with other
the doer in all of us to build company to make a lasting difference.
a culture of understanding, companies. Encouraging our suppliers to spend
with diverse businesses, and tracking that
acceptance and appreciation.
Q: What are some ways that we are spending, is the essence of the Tier II supplier
making a positive impact on our associates, diversity program we’re developing. Through
communities and suppliers? this program, we’ll work to better ensure that
A: For our associates, our team is working a portion of the money we spend on products
cross-functionally on initiatives including and services, even with suppliers that are not
development and training; associate resource identified as diverse, makes its way to diverse
group (ARG) and diversity business council businesses.
programming; discussions with subject matter
experts on driving inclusivity; and recruiting
and talent planning strategies designed to Hear more from Derek in his
eliminate bias. Give Me an H podcast interview.

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The Home Depot Values Wheel


Our commitment to diversity and inclusion was
established over 40 years ago in our core values.

26 The Home Depot 2021 ESG Report


SPOTLIGHT

CREATING A SECOND-HOME
WORKPLACE
District manager’s front-line experience informs her approach to leadership. Creating an inclusive, caring
environment is job No. 1.

S
henell Leighton spent six generational wealth. We also must store, and they treat it like a second
years as a Home Depot offer associates the financial literacy home.”
hourly associate before tools they need to learn about growing
she took her first salaried their money. That may not have been Shenell believes a critical part of
job. Although she’s been in leadership part of their foundation growing up. It’s her job as a leader is to make sure
roles for 15 years, currently as district something I had to learn.” (Go to Page that “second home” is a place
manager of several New York metro 40 to learn more about financial literacy where all associates are welcomed
stores, that time on the front lines tools available to associates.) and included. She wants all our
stays with her. people, especially associates from
The pandemic has put a spotlight underrepresented minority groups and
“Every time I’m in a store, I see on the challenges associates face women, to have the resources they
myself as a cashier ringing up the in their daily lives, Shenell says, and need to ascend and create brighter
register at the Valley Stream store also highlighted their fortitude. “I think futures for their families, as she has.
where I started,” says Shenell, whose about what our people have personally “If we are intentional in our purposes,
District 332 in Queens includes about been through in their lives at home as a company and as individuals, we
1,700 associates. “My experience with their loved ones since March 2020 can chart our own path.”
shapes how I lead. I am aware of the — death, sickness, job losses in the
obstacles, as well as the opportunities. family, struggles with home-schooling
— that all happens before they walk
“I was always self-aware that my into work. And, still, through resilience
actions and contributions were paving and determination, they make it to the
the way for other women and people
of color,” Shenell says. She welcomes
the company’s enhanced focus on
diversity, equity and inclusion and “It’s important that
believes our recent conversations
about race, gender and equity are
we give our people
powerful and can be transformative. access to resources
“We are talking openly about our that enable them to
experiences. We are talking about succeed at work and
what’s difficult — and not just in one-
on-one conversations with mentors build generational
we trust, but in larger settings in our wealth.”
workplace. That open conversation
is the thing that can make positive
change happen,” she says. “That’s
huge.” Shenell Leighton
District Manager, Queens,
Also essential: Putting equity front and New York
center. “Becoming a salaried manager
at The Home Depot changed my
life. My first management incentive
payment helped me erase my debt.
It’s important that we give our people
access to resources that enable
them to succeed at work and build

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BUILDING A DIVERSE WORKFORCE


Our diverse workforce of approximately 500,000 associates strengthens our competitive advantages and reflects the customers
and communities we serve. A comparison against U.S. Department of Labor data shows that our workforce is more ethnically
diverse than the nation’s working population. These charts reflect the demographics of The Home Depot’s U.S. workforce from
2018 through 2020. Data sets from 2018 reflect the calendar year. Newer data reflects the fiscal year. Certain percentages may
not sum to totals due to rounding or some associates choosing not to self-identify by race/ethnicity or gender. Prior year data
has been updated based on new reporting systems and to conform to current year presentation.

U.S. WORKING POPULATION THD U.S. WORKFORCE

White 64% Underrepresented Minority Groups 36% White 52% Underrepresented Minority Groups 47%
2020 2020
White 61% Underrepresented Minority Groups 39% White 54% Underrepresented Minority Groups 46%
2019 2019
White 61% Underrepresented Minority Groups 39% White 55% Underrepresented Minority Groups 45%
2018 2018

Male 53% Female 47% Male 62% Female 38%


2020 2020
Male 53% Female 47% Male 62% Female 37%
2019 2019
Male 53% Female 47% Male 62% Female 38%
2018 2018

Source: Latest available data from the U.S. Bureau of Labor Total Number of Associates:
Statistics; 2020 data is estimated 2020: 440,591 2019: 369,646 2018: 365,547

THD U.S. WORKFORCE BY RACE/ETHNICITY

2020 2019 2018

51.5% White 53.7% White 55.3% White


21.8% Hispanic 20.0% Hispanic 19.7% Hispanic
17.0% Black 16.5% Black 16.9% Black
2.9% Asian 2.9% Asian 2.9% Asian
5.0% Other 4.9% Other 5.0% Other
1.7% Undisclosed 2.0% Undisclosed 0.2% Undisclosed

28 The Home Depot 2021 ESG Report


U.S. MANAGERS AND ABOVE*
(EXCLUDES OFFICER LEVEL)

White 64% Underrepresented Minority Groups 35% Male 68% Female 32%
2020 2020
White 65% Underrepresented Minority Groups 35% Male 68% Female 32%
2019 2019
White 65% Underrepresented Minority Groups 35% Male 69% Female 31%
2018 2018

Total Number of Managers and Above:


2020: 19,111 2019: 18,106 2018: 19,051

U.S. MANAGERS AND ABOVE* BY RACE/ETHNICITY

2020 2019 2018

63.7% White 64.8% White 65.3% White


13.5% Hispanic 13.3% Hispanic 13.3% Hispanic
12.9% Black 12.4% Black 12.3% Black
4.8% Asian 4.5% Asian 4.4% Asian
4.2% Other 4.2% Other 4.2% Other
0.9% Undisclosed 0.9% Undisclosed 0.5% Undisclosed

* Includes manager-level positions and above at stores, distribution centers and other field locations, as well as at our Store Support Center; excludes officers.

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U.S. OFFICERS

White 74% Underrepresented Minority Groups 26% Male 71% Female 29%
2020 2020
White 76% Underrepresented Minority Groups 24% Male 73% Female 28%
2019 2019
White 76% Underrepresented Minority Groups 24% Male 73% Female 27%
2018 2018

Total Number of Officers:


2020: 127 2019: 120 2018: 123

U.S. OFFICERS BY RACE/ETHNICITY

2020 2019 2018

74.0% White 75.8% White 75.6% White


9.4% Hispanic 10.0% Hispanic 9.8% Hispanic
10.2% Black 7.5% Black 7.3% Black
3.9% Asian 4.2% Asian 4.9% Asian
2.4% Other 2.5% Other 1.6% Other
0% Undisclosed 0% Undisclosed 0.8% Undisclosed

30 The Home Depot 2021 ESG Report


DID YOU KNOW
We offer 27 language badges for associates.
The most recent was created in partnership
with the Navajo Nation.

BOARD OF DIRECTORS

White 75% Underrepresented Minority Groups 25% Male 75% Female 25%
2020 2020
White 75% Underrepresented Minority Groups 25% Male 75% Female 25%
2019 2019
White 71% Underrepresented Minority Groups 29% Male 79% Female 21%
2018 2018

Total Number of Board Members:


2020: 12 2019: 12 2018: 14

BOARD OF DIRECTORS BY RACE/ETHNICITY

2020 2019 2018

75.0% White 75.0% White 71.4% White


8.3% Hispanic 8.3% Hispanic 14.3% Hispanic
16.7% Black 16.7% Black 14.3% Black
0% Asian 0% Asian 0% Asian
0% Other 0% Other 0% Other

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PRACTICING DIVERSITY
SPOTLIGHT

EVERY DAY
Associate Christine Botnick got her start as a part-timer selling paint. Now she leads hundreds of supply chain
associates. Her career demonstrates that embracing diversity, equity and inclusion fuels success, and she is
committed to representing LGBTQ, women and minority associates climbing The Home Depot ladder.

C
hristine Botnick already had general manager of our Tracy, California,
a full-time retail job when she rapid deployment center.
started working at Store 249 in “What I can do
Oakland Park, Florida. But she Christine’s career climb brought her what every single day is
needed more money for rent, groceries and she wanted: economic security, upward
college tuition. mobility and a job she loves. But it also
set the tone and the
delivered something she hadn’t expected intentional, deliberate
She was 19, on her own and living and now treasures. It turned her into a
paycheck to paycheck, just as her parents
focus so that leaders
trailblazer.
had always done. But Christine wanted who work under me
to do better. That’s why she was pursuing “Every time I got a promotion, it sparked understand that
a degree in psychology, on her way to a great deal of conversation with other
becoming the first person in her family to female associates. They asked me how diversity, equity and
graduate from college. And that’s why, I did it. Then they started applying for inclusion is important
when her Home Depot manager suggested higher-level jobs, too, and getting them,”
she stretch beyond her part-time role in the Christine says. “That’s when I realized
to the company and
paint department, she listened. Christine that success is contagious.” to me.”
increased her hours, quit that other retail
job, and 18 months later became a paint Embracing her distinction as a trailblazer,
department supervisor. Christine became diversity and inclusion
captain in every store she worked. She
“I just really felt, for the first time in my life, found her own role models, too, among
that other people were interested in seeing them, Laura Mathe, who started as an
me succeed,” Christine recalls. “They saw assistant general manager in our Ontario,
past my age and offered me an opportunity California, rapid deployment center and
and the means to build an income and a rose through the ranks to her current role
better life for myself. They saw that I had as senior director of operations leading
potential, even when I didn’t.” our Western RDCs. Laura is one of 11
SDOs companywide. Another role model
That was 2003. By the end of 2006, for Christine is Hector Padilla, who
Christine was a 22-year-old assistant store began as an hourly store associate in
manager. In 2011, she became a district Hialeah, Florida, in 1994, and now is
services manager in South Florida. Three executive vice president leading our
years later, she was promoted to store Outside Sales & Service business.
manager and ultimately led three Florida
stores, in Sunrise, Punta Gorda and Miami
Gardens. (Along the way, she earned that
college degree.)

Then, in 2020, as our company was facing


a huge surge in online orders, another
Home Depot leader suggested that Christine Botnick
Christine take another stretch assignment General Manager, Tracy RDC
— this time in supply chain. Today, she
leads more than 700 associates as the

32 The Home Depot 2021 ESG Report


At our 636,000-square-foot Tracy, California, rapid deployment center, Christine Botnick (center) leads with a DEI focus.

When Christine became a store Business has to come first, which How to Practice DEI
manager, she transformed routine in Christine’s case means keeping
with Intention
workforce diversity reports into a call associates safe as they work on
to action and focused on hiring and the supply chain front lines during Christine Botnick’s guidance
promoting associates to better reflect the a pandemic, and keeping products for leaders aiming to foster
communities that the stores served. flowing to the more than 100 stores diversity, equity and inclusion:
across four states served by the Tracy Make it an everyday mindset.
“Once I got to a leadership position, I RDC. Nonetheless, she finds a way to
asked myself, ‘What can I do with my make diversity, equity and inclusion a • Recognize the value of a
podium?’ The answer,” she says, “was to daily priority. diverse workforce, which
make sure the day-to-day actions under brings fresh ideas, sparks
my direction aligned with The Home “What I can do every single day is set innovation, aligns The Home
Depot’s core values.” the tone and the intentional, deliberate Depot with our customers
focus so that leaders who work under and communities and helps
Christine describes herself as an atypical me understand that diversity, equity and us avoid groupthink.
corporate leader. She’s under 40, gay inclusion is important to the company
• Build a broad, diverse
and covered in tattoos. She grew up in a and to me,” Christine says. “Then
network inside The Home
tough, impoverished environment. That’s it becomes important to them, too,
Depot, at all levels, and also
why, she says, her success is bigger than and influences how they manage and
in your community.
she is. It gives others hope. “I have a advance our people.”
responsibility to represent,” she says. • Talk to and listen to people
She remembers what it’s like to be on you don’t necessarily
“I look at the data and think, ‘Where can the bottom rung of the ladder — as a agree with; that’s where
we do more?’ Our stores and supply 19-year-old store associate worried real conversation and
chain facilities should look like the about making ends meet and unsure understanding begins.
demographics of the communities where about the future. “That part-time
they operate,” Christine says. “We’ve got associate selling paint is always in my • Keep an open mind, and
to get women deeper into the stores and head. I want to make sure the people be willing to amend your
higher up into management.” (See The who are on our front lines today get the point of view.
Home Depot’s workplace diversity data same opportunities that I did. That’s
on Page 28.) how I pay it forward.”

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ASSOCIATE
ENGAGEMENT
Voice of the Associate Survey With over 900 communities in the network,
the digital hub links associates to local
Associate engagement is Highly engaged associates care about co-workers and colleagues across North
the emotional commitment their work and the performance of The America who share common interests —
associates have to our Home Depot. Our passion is to create an everything from remodeling and volunteerism
company and our goals. It is engaging and inclusive workplace; we do to food and movies. Associates can keep up
vital to The Home Depot’s so by proactively listening and responding with company news, connect to corporate
culture and success. to associate feedback. leaders, cultivate their creativity and fuel their
orange-blooded entrepreneurial spirit.
In 2020, to alleviate one of the pressures
on associates as they took care of
customers and one another, we suspended
our annual companywide Voice of the Success Sharing and
Associate survey. Instead, we invited Compensation Enhancements
associates working in U.S. stores and Our philosophy of taking care of our people
distribution centers to complete an and motivating them to deliver a superior
optional online pulse survey to ensure customer experience shapes our profit-
there was still an opportunity to provide sharing program for hourly associates.
feedback. We used internal communication Success Sharing provides semi-annual cash
channels and QR code posters to raise awards for performance against our business
awareness about the survey. plan, including sales and productivity goals.
The program has granted awards totaling
more than $1 billion to associates over the
The survey specifically asked about last three years.
associates’ workplace experiences
during the pandemic, and the feedback The outstanding performance of our
we received was extremely encouraging. associates in fiscal 2020 enabled 100%
Associates felt supported by their of stores to qualify for Success Sharing in
supervisors and by the company’s flexible both the first and second half of the year.
scheduling to help them balance work and This resulted in record award payments
personal lives during the pandemic. An to our non-management associates of
overwhelming majority also said they were approximately $616 million.
proud to work for The Home Depot.
DID YOU KNOW In 2020, we invested approximately
Almost nine out of 10 $2 billion in enhanced associate pay and
Engagement Platform benefits for front-line, hourly associates
associates favored workplace
In 2020, we began transitioning to a new in response to COVID-19. In the third
safety measures we put
associate engagement platform, launching quarter of 2020, we began transitioning to
in place to help reduce
Yammer at the end of our fiscal year. The permanent compensation enhancements
exposure to COVID-19, shift creates new opportunities for us to that could add up to approximately $1 billion
according to our 2020 pulse reach associates via on-site desktops on an annualized basis. We also continued
survey. Learn more about or on-the-go mobile devices. More than merit-based salary increases and matching
Associate Safety on 450,000 associates across the U.S. and contributions under our FutureBuilder
Page 48. Canada have access to Yammer. 401(k) Plan.

34 The Home Depot 2021 ESG Report


Associate Resource Groups Caring Conversations
Our associate resource groups (ARGs) are led by We launched Caring Conversations in 2020 in response to
associates and sponsored by executive leaders. They the unrest in our communities. These panel discussions
drive associate engagement and promote inclusion at featured honest and candid stories about race and
our Store Support Center through: ethnicity from senior leadership at the company, as well
as lectures from subject-matter experts on civil rights,
• Professional development law, voting and more. Associate teams also held smaller
• Cultural awareness discussions on these topics within their groups.
• Community outreach
We hosted six Caring Conversations in 2020, attracting
We have seven ARGs, each of which support the approximately 25,000 associates. These diversity
company’s business objectives and policies, particularly discussions have been expanded to new formats in 2021.
those related to developing our associates, creating
diversity awareness and engaging diverse community
partners.

ARG engagement expanded significantly in 2020, as


many Store Support Center associates worked remotely
DID YOU KNOW
because of the COVID-19 pandemic. We hosted more The Home Depot recently ranked
than 70 ARG events virtually to celebrate diversity, raise 105th on Forbes’ list of Best
cultural awareness and foster professional development. Employers for Diversity in 2021.

Our Associate
Resource Groups
promote inclusion and
support diversity

African American Hispanic and Latino Associates with Disabilities


Associates Associates

Military-Affiliated Associates Asian and Pacific LGBTQ Associates Women Associates


Islander Associates

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LEARNING &
DEVELOPMENT
The Home Depot strives to build a learning- Delivery: Flexing our approach to connect
rich workplace where associates and leaders with associates and customers, while
Our learning and
are prepared to succeed, motivated to serve adhering to safety protocols
development programs our customers well and given opportunities
expand skills and • Instructor-led training shifted from in-
to grow. Our Home Depot University, now in
person to virtual, enabling more than
capabilities so associates its 11th year, is critical to the development of
6,000 associate offerings with over 96,000
can master their current values-based leaders who take care of our
completions.
roles and prepare for associates and our customers.
future ones. • Virtual coaching helped onboard
In 2020, we responded to the unique associates in new supply chain locations.
challenges of the pandemic by focusing on • New-hire videos replaced in-person
content, delivery and technology. training, increasing speed, flexibility and
consistency across operations.
Content: Providing training that supports
• Pivoting to online DIY training met
associates and customers navigating new
customers’ evolving needs — more
challenges
than 300 virtual workshops netted over
• Health and safety protocols 79,000 completions.
• De-escalation training to help associates
stay safe when frustrations are high
DID YOU KNOW Technology: Expanding the use of existing
• New company processes and learning platforms and adding new ones
Associates achieved
19 million training course procedures (i.e., curbside pickup) • We provided more mobile learning
completions in 2020. • Leading Through Uncertainty training opportunities for associates adapting
to evolving procedures, protocols and
customer needs.
• We embedded how-to training inside
operational systems for easily accessible,
needs-based performance support.

Nearly

90%
of our store leaders started
as hourly associates

36 The Home Depot 2021 ESG Report


Aligning Work and Health Yields 40-Year Career
Associate Chris Owens’ Home Depot career began in 1981, after he showed up
repeatedly at an Atlanta store seeking work. As Chris describes it, he wore the manager
down and landed a job in lumber. He rose up the ranks, working in the aisles and driving
delivery and distribution trucks, until, in May 1992, he fell 60 feet while trimming trees
at his home. Chris broke his neck and was paralyzed from the collar bone down. Life had
to change.

After months in the hospital, where visits from fellow associates — including the
company’s founders — buoyed his spirits and resolve, Chris went to work in a
distribution center managing office operations and dispatch. He ultimately was
promoted to the Store Support Center team in a leadership role. But a person in a
wheelchair needs to keep moving, and the job involved long hours and too much sitting.
Chris developed a life-threatening skin wound. His doctor told him he had to work less
to preserve his health. Life had to change again.
Chris Owens
Logistics Planner and Associate Since 1981, Chris changed course and brought his institutional knowledge, skills and relationships to
pictured with wife, Beth a logistics planning team. He gained backup, camaraderie and the ability to prioritize his
well-being.

While he refuses to be defined by limitations, Chris believes it’s his responsibility to


represent other associates with disabilities and the benefits of adapting careers to
support inclusion. “I am living proof that you can do anything within The Home Depot
that you want to,” he says. “There’s something out there for you.”

DID YOU KNOW


In 2020, nearly 45% of our summer internship team was ethnically/racially diverse, and nearly a third of our interns were women.

Associate Intern Boosts Awareness of Trades Training

The Home Depot’s summer 2020 internships quickly transitioned from in-office
opportunities to fully remote professional development experiences. More than 200
interns completed the program — about half from our stores, distribution centers and
contact centers.

Michael Villegas, a merchandising execution team (MET) associate at Store 6960 in


Fontana, California, nabbed an internship and worked on a project with meaningful
impact for the company.

“I created a public relations strategy to raise awareness among consumers and Pros
about our efforts to help fill the labor gap through trades training,”  Michael says. His
project plugged into a key Home Depot priority: fostering career opportunities in our
communities and supporting our industry by helping to increase the number of skilled
carpenters, plumbers, electricians and more in the workforce. (Learn more on Page 105.)
Michael Villegas
Associate Summer Intern and Newly Michael, who for two years fit college classes around his MET schedule, graduated in
Promoted Public Relations Specialist December 2020. He is now is a PR specialist at the Store Support Center. “The
company had my back and gave me an opportunity to excel,” he says.

2021 ESG Report The Home Depot 37


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Overview
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OPPORTUNITY AMID
ADVERSITY
As is true for everyone, everywhere, life “It was just an insane amount of volume,
changed dramatically in 2020 for associate and I realized that this was an opportunity
Ijumaa Shelton. The difference for Ijumaa, that might never present itself again,”
though, was that life largely got better. Ijumaa says. “I had to take advantage of it.”

Ijumaa, who works at our direct fulfillment He used his first few paychecks to pay off
center in Troy, Ohio, paid off his credit card every one of his credit cards. “That was
debt, helped a friend find work, treated such a huge weight off my shoulders,” he
himself to a new computer and gave a little recalls. Then he bought himself the parts
financial support to family members. He for a video-gaming computer and bought
began to see himself as a potential leader his sister a baby crib.
and to think of his two years on our supply
chain front lines as the start of a career. He persuaded a friend who had lost his job
because of COVID to come work at the
Amid all the chaos, sorrow and anxiety Troy DFC. Ijumaa’s pitch: The pay is good,
created by COVID-19, the pandemic also and The Home Depot is a place where you
created opportunity. The Home Depot can grow a career. That’s something Ijumaa
stayed open to serve our communities as understands better than ever. He’s jumping
an essential retailer, just as we’ve always at opportunities his bosses offer him to take
done during natural disasters. Customers on higher-level responsibilities. “Because of
suddenly spending much more time at home what happened in 2020, I’ve done almost
turned to us for air conditioners, appliances, every role at my level at the Troy DFC,” he
cleaning supplies, lumber, light bulbs and says. “I think I can do more.”
much more.

As a result, the supply chain growth that our


company had expected to see over several
years happened in just a few months. The
Troy DFC asked existing associates to work
more if they could. Ijumaa went from three
12-hour shifts a week to clocking in for
six — and received double pay for overtime
hours. (Learn more about pandemic-related
associate pay and benefits on Page 42.) He
expanded from inventory control to inbound
and outbound operations.

38 The Home Depot 2021 ESG Report


“It was just an insane
amount of volume, and I
realized that this was an
opportunity that might
never present itself again.
I had to take advantage
of it.”

– Ijumaa Shelton, Supply Chain Associate

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BENEFITS
Associates are at different life stages, and Financial Programs & Tools
our LiveTheOrangeLife.com benefits hub
Our people make The guides them to the right resources. With FutureBuilder 401(k): Associates can save
Home Depot successful, one click, associates can find support for for the future while taking advantage of tax
and it’s our responsibility wherever they are on life’s journey. For savings. Eligible associates who contribute
and privilege to take care example, the money module is the place to to the plan get up to 3.5% of eligible
of them. go for help with personal finance education compensation in matching contributions
or retirement planning. The elders module from the company.
provides guidance on everything from
finding caregivers for aging parents to Employee Stock Purchase Plan (ESPP):
negotiating the complexities of Medicare. Twice-a-year plans provide a 15% discount
on Home Depot stock. Associates who
In 2020, we assembled a COVID-19 enroll may set aside up to 20% of eligible
response team to help ease many of the pay (up to $21,250 annually) to purchase
challenges our associates faced because of stock.
the pandemic.
Personal finance education: All
As detailed on livetheorangelife.com/ associates have access to a suite of online
covid19, we enhanced pay, increased webinars, activities, tools and resources
flexibility in work schedules and provided designed to help them increase financial
COVID-related resources, including access knowledge and build the confidence that
to extended dependent care benefits, can help relieve money-related stress.
unlimited emotional and mental health
counseling and 24/7 access to telemedicine Alight Financial Advisors®: Associates
clinicians. We sent care kits to associates have access to independent advisory
diagnosed with COVID-19. The kits were services to help them gauge whether
packed with small comforts, like fleece they’re on track for retirement.
blankets, as well as personal medical
supplies. Read the story of an associate Insurance: To prepare for the unexpected,
who says the pulse oximeter included in his associates have access to policies for
COVID Care Kit helped save his father’s life, medical care, disability, life, home, auto and
Page 45. pet health insurance.

Identity theft protection: Associates


are automatically enrolled in free AllClear
ID® identity repair services, and they can
sign up for additional proactive identity
monitoring at a reduced rate.

Perks at Work: Associates have access


to special discounts on a wide variety
of everyday goods and services — from
nursery items to mobile phone service,
gym memberships, computers, vacations
and more.

40 The Home Depot 2021 ESG Report


SPOTLIGHT

FOCUSING ON THOSE
WHO SERVE
Military service members and military spouses are resilient, resourceful and team-minded. Supporting them
is the right thing to do for our communities and our company.

S
erving military members, and kids,” he says. “My leaders are open
veterans and their families has to having conversations with me about
been fundamental at The Home making sure my military service won’t derail
Depot from the start. Our my career plans.
Military Relations department, launched in
2019 and expanded in 2020, fine-tunes that “It’s a night-and-day difference between
focus to make our company an even better the support I get at The Home Depot and
resource for those who serve, especially our the stories I hear from some of my fellow
many military-affiliated associates. guard members,” says Raukshaun, who
has recruited some of those fellow soldiers CHECK IT OUT
Raukshaun Pickens’ experience to our company. “I can’t think of a company The Home Depot supports
demonstrates how we support military that is better than ours at dealing with associates who are spouses
associates when they’re deployed. While employees’ military deployments.” of military members with
much of the world hunkered down, he transfers between our stores
reported for duty on multiple fronts. and distribution centers when
the military relocates their
In March 2020, the supply chain associate families. Hear from Amber
and combat medic in the Army National
Guard deployed to an overwhelmed
Made-to-Fit Benefits Bailey, a 7-year associate and
Navy spouse, about what that
hospital in rural Georgia to treat COVID-19 means to her family.
The Home Depot offers specialized
patients. Then he was called to the streets
benefits for veterans, military service
of Atlanta to keep the peace during protests
members and military spouses who are
demanding social change. After that,
Home Depot associates:
Raukshaun helped run COVID testing —
and, on July 4, tested positive for the virus • Military leave of absence
himself. • Military family international leave
of absence
After completing his missions, Raukshaun
returned to our direct fulfillment center in • Differential pay when activated or
Locust Grove, Georgia, in November. Back deployed
on the job as production planning manager, • Military Spouse Relocation program
he navigated record levels of customer
demand with the characteristic calm that
• Fellowships for transitioning service
has earned respect from his co-workers.
members
He attributes his on-the-job tranquility to • Support resources, such as
13 years in the military, including a tour counselors, financial advisers and
in Afghanistan. “Work stress seems very childcare assistance directories
manageable once you’ve been through
combat,” he says.

Every time he has been called to duty


during his six years with our company,
The Home Depot’s support of his service Raukshaun Pickens
and his career never faltered, Raukshaun Production Planning Manager and
says. “My direct managers, HR, payroll Member of the Army National Guard
— everyone has been super supportive.
My manager has checked in on my wife

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Taking Care of Our People Associate Assistance


During COVID-19 CARE/Solutions for Life: Our free and
confidential assistance program helps
associates manage personal and work-
Our company spent approximately $2 billion on enhanced pay life challenges. Licensed counselors and
and benefits in fiscal year 2020 to ease associates’ challenges medical professionals are available by phone
during the pandemic. 24/7/365 to our people and their household
members, including spouses, domestic
We added 80 hours of paid time off for all full-time hourly partners, other relatives and roommates.
associates and 40 hours of paid time off for part-time hourly
associates to be used at their discretion and paid out if not Program team members assist with specific
used. For associates 65 years and older or determined to be interventions that meet the everyday needs
of our workforce — from childcare to
at higher risk according to guidelines of the federal Centers
eldercare, marital concerns, bereavement,
for Disease Control and Prevention, we provided an additional
emotional stress, legal or financial concerns
160 hours of paid time off for full-time associates and 80
and more. In addition, CARE/Solutions for
hours of paid time off for part-time associates.
Life is available to assist our management
teams dealing with disaster relief and
For some or all of 2020, The Home Depot also provided: responding to traumatic events in the
workplace or community.

Family Support
Paid time off for any associate Extended dependent care
benefits and waived related Paid parental leave: Associates with at
who contracted COVID-19,
co-pays least one year of service who are having a
until released by a doctor
baby, adopting or fostering a child can take
six weeks of paid parental leave. This benefit
is available to both mothers and fathers.
Birth mothers are eligible for an additional
six-week paid maternity benefit.
Up to 14 days of paid time off Unlimited emotional and
mental health counseling visits Years Ahead™: Associates have access to
for any associate required by a
for associates, including a resources to plan for their elders, including
public health authority or the
resource toolkit to help with referrals to memory and hospice care
CDC to quarantine
stress and anxiety facilities and independent and assisted-living
communities.

Adoption assistance: The Home Depot


reimburses certain adoption-related
expenses to assist eligible associates.
Additional bonuses to hourly Access to telemedicine
associates in stores and clinicians 24/7 to discuss Rethink: Best-practice resources and
distribution centers symptoms and treatment training help associates support their
children with developmental disabilities or
challenges with learning and behavior. The
comprehensive program provides access
to easy-to-follow videos, custom learning
plans, a training center and one-on-one
sessions with licensed experts.
Double pay for overtime hours Care kits for associates
worked by hourly associates diagnosed with COVID-19 Milk Stork®: Associates who are
breastfeeding and must travel for work can
use this specialized delivery service to send
breast milk home to their babies.

42 The Home Depot 2021 ESG Report


2021 ESG Report The Home Depot 43
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Back-Up Care: We’ve partnered Healthy Life Health care support team: Grand
with Bright Horizons® to offer eligible Rounds® helps associates navigate
associates back-up care when: Aaptiv®: Offering thousands of health care for themselves and their
workouts, this trainer-led fitness family members. Associates also may
• Regular caregiver/stay-at-home app works for all fitness levels. On- receive a medical second opinion
spouse is unavailable demand virtual classes offered at no through Grand Rounds. The program is
cost to associates help boost mental free to associates.
• Associate is between childcare or and physical health through yoga,
adult/eldercare meditation, sleep support, running,
strength training and more. Daylight: This personalized app offers
• Child’s regular childcare center/
therapeutic ways to address worry
school is closed
and anxiety. The app, which is free to
• Associate is transitioning back to Take Care Of You: To assist with associates, provides help anywhere,
work after returning from leave the unique challenges brought on by anytime using proven behavioral
COVID-19, this new, free-to-associates techniques.
• Child or adult/elder relative is ill or
wellness hub provides resources to
needs assistance
help associates keep it all in balance
• Associate or spouse is recovering and focus on their mental and physical Access Hope: The Cancer Support
from surgery health and well-being. Program through AccessHope connects
associates and their family members
Sittercity®: An extensive database Flu prevention: Free flu shots are to leading experts from City of Hope, a
of background-checked babysitters, available for associates to protect renowned, comprehensive cancer center,
nannies, elder companions, pet sitters them and our customers during cold to support them through their cancer
and housekeepers is available to and flu season. journey. It’s provided at no cost
associates. to associates.
Health screening: Associates have
MetLife Legal Services®: This legal- access to biometric screenings with
assistance voluntary benefit provides their personal physicians or at a Quest
consultation and document review for Diagnostic Patient Service Center.
issues from adoption to wills, powers
of attorney, divorce, nursing home Tobacco cessation: Personalized,
agreements and more. one-on-one strategies and support DID YOU KNOW
are available at no cost to associates More than 90% of associates
to help them mentally and physically found value in the expanded
Educational Assistance prepare to quit.
benefits that The Home
EdAssist®: Associates have access Depot offered in response to
Sleepio®: Personalized program is
to academic and college financial available to help associates discover
the pandemic, according to
advisers to assist them in reducing the their sleep scores and reach their sleep feedback from associates in
time, cost and stress of pursuing their goals, so they can be at their best at our pulse survey in fall 2020.
educational goals. This program also home, work and in the community.
includes access to tuition discounts at
more than 200 educational institutions 24/7 care: Associates and family
nationwide. members they care for — including
elderly parents — have access to
Orange Scholars: This extension of Teladoc® virtual doctors for minor
The Homer Fund offers scholarships to illnesses and behavioral health
qualified children of hourly associates support from home anytime,
based on financial need, academic including after hours, on weekends
performance, community involvement and during holidays.
and leadership. Financial need is the
highest consideration. Learn more on
Page 46.

College Coach®: Counselors and


online resources guide associates
and their families through the
college-admissions process and help
them create financial strategies for
educational costs.

44 The Home Depot 2021 ESG Report


SPOTLIGHT

COVID CARE KIT ENABLED


LIFE-SAVING HEALTH CHECK
Crucial tool for measuring oxygen alerted associate’s family that their father needed emergency care.

S
alvador Vaca Jr. was took it to Sal’s father, who used it to
feeling pretty rotten measure his blood-oxygen level, which
when his COVID Care was at 75% and dropping — well
Kit arrived. Sal, a store below the healthy mark of 95% and
associate in Aurora, Colorado, was above.
quarantining at home after contracting
the coronavirus. His brother left the Sal’s father went to the hospital and
package from The Home Depot outside stayed there for eight days. Hospital
Sal’s bedroom door. Down the hall, staff told the family that their father
Sal’s 64-year-old father, Salvador Vaca survived because of their quick
Sr., also was sick with the virus. response to his deteriorating condition.

In the Home Depot-branded bag were In Sal’s view, that package from The
creature comforts and some health- Home Depot deserves some credit,
check devices, including a pulse too. “The care kit helped us save our
oximeter that measures how efficiently dad’s life,” he says. “It came at the
blood is carrying oxygen through the perfect time — when we needed it the
body. During the pandemic, it has been most. For this I will always be grateful.”
a crucial tool for understanding in real
time how the virus is weakening the
respiratory system.

Sal texted a photo of the kit’s contents “The care kit helped us save our dad’s life. It came at the perfect time
to his sister, who works in health care. — when we needed it the most. For this I will always be grateful.”
She texted back: “I need Dad to check
his oxygen.” Sal put the pulse oximeter – Salvador Vaca Jr., Store Associate, pictured above with his father
outside his bedroom door. His brother

COVID-19 CARE KIT


Bag Blanket
We sent associates recovering from
COVID-19 a few tools to support and
comfort them during their recovery.

Soup Cup and


a Can of Soup Pulse Oximeter

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THE HOMER FUND


The Homer Fund provides financial
assistance to associates facing unexpected
A majority of Homer hardships, helps their children pay for
Fund contributions college and supports our people with
come from associates. financial information to help them prepare
Every dollar our people
donate helps a co-
for emergencies.
AMPING UP
worker in need.
Grant Programs SUPPORT
IN A TOUGH
• Direct Grants help associates facing
emergencies and tragic events, such as
the death of a parent or child, natural
disaster, illness or injury, a spouse’s
layoff and more, up to $10,000. YEAR
• Matching Grants are a unique way
the Fund recognizes the generosity of
associates toward one another. When
associates collect donations for a co-
worker in need, their money is matched
by The Homer Fund — $2 for every
$1 associates collect, up to $5,000 or
the associate’s actual need. Matching
Scholarships for Associates’
Grants may be used for expenses that
Children
are ineligible for Direct Grants. They The Homer Fund’s Orange Scholars program
also may be used to complement Direct offers scholarships to qualified children or
Grants, providing additional support to dependents of hourly associates based
associates in need. on financial need, academic performance,
community involvement and leadership.
Financial need is the highest consideration.
Since the Orange Scholars launch in 2006,
the program has awarded scholarships to
more than 13,000 recipients, totaling
$32 million.

Since 1999, Financial Preparation


Homer Fund grants totaling nearly Associates have access to a range of Homer

$215 million
Fund-backed resources to support their
financial well-being and decision making. In
2020, on-demand webinars offered guidance
on COVID-related emergency savings,
changes to student loans and FAQs on what
have assisted over 157,000 associates facing to do if a family member loses their job.
The Fund also provided fraud-awareness
unexpected hardships. resources to associates to help them avoid
falling victim to scams that proliferated amid
pandemic-fueled uncertainty.

46 The Home Depot 2021 ESG Report


DID YOU KNOW
The Homer Fund awards scholarships to 1,000 dependents of
hourly associates every year, fueling dreams and expanding our
Orange Scholars community.

2020 ushered in unprecedented hardships for our people, and The Homer Fund responded

$16.2 million 12 consecutive 7,100+ That included 625 grants


was awarded through months associates totaling $2.3 million
Homer Fund grants of grant distributions related received financial assistance related to COVID-19
to natural disasters helped linked to the pandemic, hardships, and 1,345 grants
associates cope with a variety hurricanes, wildfires totaling $1.1 million for
of challenges and more disaster recovery

Grant eases strain on home-schooling associate

When in-person classes abruptly stopped at her son’s school last spring, Miracle
Palmer, a store associate in San Antonio, Texas, thought the disruption would last a
couple of weeks. But those weeks turned into months.

Miracle needed to stay home to make sure Joel, who’s autistic, got the care and
engagement he needed during the day. “I had to help him with virtual learning. But
the real concern was the well-being of my son,” she says. “I was not able to return
to work, and, financially, that put a strain on us.”

Overwhelmed, she contacted The Homer Fund and got connected with a
representative. “I kind of just broke down to her and just told her all the concerns
that I was trying to hold together,” Miracle recalls. The response, a grant to pay
essential bills as she home-schooled her son, “blew away” her expectations.
Miracle Palmer
“With The Homer Fund money, we paid for our electric bill. We paid a water bill. Store Associate and Homer Fund
It assisted us with food. The Homer Fund just alleviated all of that. I could put my Grant Recipient
head down and rest. I could actually just relax,” Miracle says. “I’m so grateful.”

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ASSOCIATE SAFETY
The Home Depot strives to provide a safe Preventing Injuries
working and shopping environment for our
Our people are our most We partnered with ergonomists on a
associates and customers. An important
important asset. By way we do this is by raising awareness program to prevent lifting injuries, which are
focusing on workplace of risks among both front-line associates among the most frequent types of injuries in
safety training and and leaders. When our people are our industry. The result was Lift It Close To
risk reduction, we help trained to recognize and correct hazards, Home, instruction that uses a lift-and-place
keep our associates and our workplace is primed for continual target to show associates how to minimize
strain on their shoulders and backs.
customers injury-free. improvement.

In 2020, we pivoted from InFocus sessions


on traditional workplace safety issues to Reducing Risk
engaging and educating associates about Our Store Support Center and field teams
how to keep themselves and our customers work to engineer out risks and make our
safe during the pandemic. environments safer for associates and
customers. Recent improvements included
resurfacing and restriping customer parking
Simplifying Safety lots and using lightweight, stackable plastic
Our communications platform delivers real- pallets to unload freight. These kinds of
time information and uses multiple types simple solutions can have a big impact on
of media to accommodate associates’ our progress in creating a safer place to
preferences and learning styles. We simplify work and shop.
messaging to highlight the most frequent
and severe hazards. In 2020, 84 Home Depot stores joined our
Club 365, meaning they operated all year
In 2020, we introduced quarterly campaigns without a significant safety incident.
with facts and statistics to illustrate the
prevalence of safety concerns, offer risk-
reduction strategies and provide hands-on
exercises for injury prevention. Our store
and supply chain leaders set the tone, and
our experience shows our associates will
rally around their leaders’ safety messages.
To leverage this, in 2020 we facilitated
direct safety talks from regional leaders
to associates in their organizations. This
messaging personalized our companywide
efforts to increase workplace safety.

DID YOU KNOW


The Home Depot’s injury rates are consistently lower than industry
averages for our retail class, according to data from the U.S. Bureau
of Labor Statistics.

48 The Home Depot 2021 ESG Report


CHECK IT OUT
See an infographic
overview of COVID-19
safety measures in our
stores in 2020.

RECORDABLE INCIDENT RATE LOST TIME INCIDENT RATE


(per 200,000 hours) (per 200,000 hours)
Work-related injury that typically warrants medical care More significant injury that results in time away from work
beyond store-provided first aid

2018 4.48 2018 0.87


2019 4.89 2019 1.21
2020 4.03 2020 1.07

Previously reported data was updated to reflect enhancements to our internal reporting process and to account for maturity of claims. 2019 and 2020 data
sets reflect the fiscal year; 2018 data reflects the calendar year.

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PROTECTION BY DESIGN
SPOTLIGHT

In a perfect example of ‘The Home Depot sprint,’ we brought together the right people and the right partners to
create long-lasting, good-looking shields to help protect front-line associates.

T
he mission was to reduce our at a problem and move fast. Chad and
front-line associates’ exposure colleagues Mark McGlon, Cary Outlaw,
to COVID-19, and do it ASAP. Robery Windisch and Sarmistha Boal,
In nine days, our store design who leads their team, compressed our
team — first meeting virtually, then drafting months-long process for developing store
blueprints in an associate’s basement- fixtures down to three weeks. And most of
turned-workshop, and finally building the work happened in just a few days:
models after hours in a couple of Georgia
stores — created a plexiglass shield that • March 24, 2020: Store design
is now protecting thousands of our people associates sketched shield designs.
every day. • March 25: A broad team of associates
from store environment, store “Nobody really knew
For associate Chad Thompson, a member operations, merchandising, MET,
of our in-store environment team, the technology, safety, procurement, for sure what the
assignment was both professional and logistics and project management met coronavirus was and
personal. He was determined to find with five suppliers invited to create
prototypes. how it spread. But
a sustainable, functional way to better
safeguard associates against the virus. One • March 26-30: Suppliers created if there was even a
of the associates he wanted to protect was sample shields with regular input from
our Home Depot team, which was
small chance that a
his daughter, Atley Thompson, who works
on the customer service desk at Store 1777 collecting feedback from associates plexiglass shield could
testing shield prototypes at Store
in Kennesaw, Georgia. block those germs, we
1777, a new store footprint, and Store
“It was mid-March 2020, and at that point, 106, a legacy-layout store that’s also needed to find a way
nobody really knew for sure what the in Kennesaw. to do it.”
coronavirus was and how it spread. But • March 31: Our team selected the final
if there was even a small chance that a design. – Chad Thompson, pictured
plexiglass shield could block those germs, • April 1: Manufacturing began. above with his daughter
we needed to find a way to do it,” Chad Atley Thompson
recalls. The question was how to design New England Wire Products, based
shields that would work in our stores. in Massachusetts, was chosen as the
The shields would need to withstand supplier because the company is a
run-ins with carts piled with heavy goods longtime Home Depot partner and had
like lumber. They had to improve safety,
not interfere with it. They needed to
allow accessibility and maneuverability
for associates and customers using
wheelchairs and other adaptive devices.

The shields also had to look like they


belonged in both our new and legacy stores
— not like slapdash plastic sheeting. And
the shields had to be easy to assemble,
using tools available in every store, so
associates could install them with speed,
preferably in a single shift.

The team began what Chad — a seven-


year associate — calls “The Home Depot
sprint.” That means we throw resources

50 The Home Depot 2021 ESG Report


metal fabrication capabilities, plexiglass getting extra protection, and that was
sheets in stock and — importantly — no important.”
major COVID outbreaks in its facilities. “The shields are still
At Store 1777 in Kennesaw, Atley is helping keep us safe
While New England Wire manufactured grateful to stand behind the plexiglass
the shield kits, Chad and his colleagues protection her dad helped create. “The
and reminding us to be
created step-by-step instructions and an shields are still helping keep us safe respectful of everyone’s
accompanying video for associates who and reminding us to be respectful of
would do the assembly in stores. The everyone’s space.” Atley says. “And,
space. And, obviously,
instructions were straightforward, and obviously, for me, there is a special for me, there is a special
the tips were simple. Don’t use power level of pride.”
level of pride.”
tools; use a crescent wrench and ratchet
from the shelves. Expect to have a few – Atley Thompson
pieces of leftover hardware. Have two
associates available for some phases
of assembly. At our peak in April 2020,

Within three weeks, the kits were on


3,300+ shield kits
were shipped to stores daily,
their way from the factory to our stores. More than
On April 25, they arrived at Store 4719 and 95 stores per day
in North Spokane, Washington. They were installing shields.
75,000 shields
got there late on a Saturday, just before were constructed from
closing time. MET members Caitlin Keon, 807,000+ square feet
Nate Brock and Brie Donahue were of plexiglass and about
ready. They worked all night to construct 1.45 million
36 shields at cash registers, specialty linear feet of tubing.
desks and customer service desks.

Associates at the North Spokane store


had a heightened awareness of COVID
risks. Their state had been hit early
and hard by a nursing home outbreak
in February 2020 that killed dozens of
people. Associates standing face-to-face
with customers welcomed the shields.

“Our front-line associates were super


thankful that we got the shields installed
so quickly — before the store opened the
next morning,” Caitlin says. “Assembly
is in our MET wheelhouse. We pride
ourselves on being able to pivot and be
flexible to meet the needs of the store.”

Head cashier Willie Morrow was glad


to see the shields go in at Store 4719.
The Clamp’s a Champ
He was managing through the anxiety The secret weapon in our shield defense
front end associates were feeling. The was a simple, versatile clamp. It can
shields were a morale boost because of be locked into place on either side of a
their functionality — and their form. They counter and adjusted to fit the wide variety
looked “sleek and professional,” Willie of countertop depths in our legacy stores.
says. “Associates on the front end were

>
Our COVID-19 plexiglass shield team compressed a months-long fixture development
process to three weeks in March 2020 to get shields to stores — then paused for a
celebratory photo at Store 106 in Kennesaw, Georgia.

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OPERATE
SUSTAINABLY
RESOURCES

> Greenhouse Gas Protocol > Energy Star


> Responsible Sourcing > WaterSense
> Wood Purchasing Policy > USDA National Organic Program
> Forest Stewardship Council > Safer Choice
> U.N. Food and Agriculture > GreenGuard
Organization
> Leaping Bunny
> Eco Options / Eco Actions
> Science Based Targets
> Chemical Strategy

52 The Home Depot 2021 ESG Report


GOALS Committed to setting
Science Based Targets
We strive to reduce our carbon footprint initiative (SBTi)
by improving the efficiency of our store Scope 1, 2 and 3 goals by 2023 to reduce
and supply chain operations, and by emissions in line with Paris Agreement goals
investing in alternative energy solutions.
We partner with suppliers focused on
social and environmental responsibility,
and we help our customers reduce
their environmental impact by offering
100%
renewable electricity
products and packaging created with
sustainability in mind. for all Home Depot facilities
worldwide by 2030

Science-based target to
reduce emissions

40% by 2030,

50% by 2035

Procure/produce

335 megawatts
of renewable or alternative energy
by 2025

Eliminate
EPS foam &
PVC film from our
private-brand packaging by 2023

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PROTECTING THE CLIMATE

CARBON FOOTPRINT
The Home Depot uses the GHG Protocol
Corporate Accounting and Reporting
By driving efficiencies
and investing in green
Standard, which has been adopted by
numerous companies worldwide to calculate
2020 RESULTS
energy, we reduced our metric tons of greenhouse gas emissions and
absolute Scope 1 and 2
carbon emissions by over
efforts to reduce them. We continually review
and refine our emissions measurements
Scope 1:
127,000 metric tons in to reflect changes to our business and Direct emissions from
2020. improvements in data collection and combustible sources
reporting. and refrigerants totaled
approximately 607,000
We participate in the CDP® reporting process. metric tons.
CDP, formerly the Carbon Disclosure Project,
is an independent, international, nonprofit
organization that provides a global system for
companies and cities to measure, disclose, Scope 2:
manage and share environmental information. Indirect emissions from
purchasing electricity
We received a score of A- from CDP for totaled approximately
our latest report, reflecting our leadership 1,214,000 metric tons.
and high level of action on climate change
mitigation, adaptation and transparency.

Under our science-based target goal linked to Scope 3:


our annual CDP reporting, we have committed
to reducing our Scope 1 and Scope 2 carbon Emissions from upstream
dioxide emissions 2.1% per year to achieve a transportation and
40% reduction by 2030 and a 50% reduction distribution of freight
by 2035. totaled approximately
2,916,000 metric tons.
Our annual GHG emissions and carbon
intensities correspond to the calendar-year
results we disclose in response to the annual
CDP Climate Change questionnaire. The 2020
results include data for HD Supply Holdings
Inc., which we acquired on Dec. 24, 2020.

DID YOU KNOW


We’ve committed to setting
Science Based Targets
initiative (SBTi) Scope 1,
2 and 3 goals by 2023 to
reduce emissions in line
with Paris Agreement goals.

54 The Home Depot 2021 ESG Report


In 2020, The Home Depot
decreased our Scope 1 and
2 carbon intensity. Our
investments in efficiency
helped us achieve a 22%
reduction in the carbon
dioxide emitted for each
dollar of revenue we earned,
compared to 2019.

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PROTECTING THE CLIMATE

STORE OPERATIONS
The Home Depot’s aim to use resources In 2020, our U.S. stores reduced
efficiently is driven by business demands. electricity use by more than 14% year
Using resources wisely is
But we are proud that the effort we put into over year. We boosted our alternative
a smart business strategy
reducing our consumption of electricity and and renewable energy capacity by more
that also makes our water also is good for the planet. than 13%, compared to 2019. We also
store operations more signed onto new off-site solar projects
sustainable. Across our U.S. stores, we’ve cut electricity that will significantly increase our solar
use 44% since 2010. We far surpassed capacity by 2023.
our goal, set a few years ago, to reduce
store kilowatt-hour electricity use 20% In addition, we increased our focus
by 2020. This progress emerged from a on saving water, implementing smart
diligent, business-centered focus to identify irrigation systems capable of reducing
unnecessary electricity consumption and our irrigation-related consumption by
curb it. We did that by installing LED lighting, approximately 30% at almost 450 U.S.
efficiency-driving building automation stores. The following pages describe
systems, updated air-conditioning and some of the ways we are making
heating systems and more. progress.

During install After

The Home Depot invested $56 million in LED lighting upgrades in 2020, continuation of an effort that began in 2018. One result: Brighter stores.

56 The Home Depot 2021 ESG Report


LED Transformation Shrinks Making Every The Home Depot reduced U.S. store
Electricity Use electricity consumption 44% over 10
At the end of 2020, 1,589 of our U.S.
kWh Count years through a multifaceted effort to find
stores had been upgraded to overhead energy savings in every corner of the store.
LED lighting; LEDs were installed at 427
stores in 2020 alone.

2020
2014

2018
2016

2019
2013

2015
2012

2017
Upgraded stores see electricity

2011
consumption drop by about 30%,
on average, compared to using 0
conventional lighting. Plus, the stores
benefit from brighter aisles and better
control over their technology-enhanced
50
lights. For example, stores can
selectively dim some areas of the store
and leave others fully lit after hours,
when associates are restocking but 100
customers are not shopping.

LEDs have been a big investment for our


150
company, adding up to a $178 million
total capital expenditure from 2018 to
2020. But they’ve also been a big driver
of the remarkable electricity savings we 200
achieved in 2019 and 2020 (see chart).
And the progress continues. We’re on
track to install LEDs in all of our U.S.
stores by the end of fiscal 2021. 250

300

WHAT’S SO GREAT
350
ABOUT LEDS?
The benefits are similar in
customers’ homes and our stores:
400
• Reduced electricity and lighting Annual reduction in millions
maintenance costs of kilowatt hours (kWh)
• Lower electricity use that 500
contributes to a smaller carbon
footprint
• Brighter pathways that increase
safety and improve aesthetics

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Solar Energy Fuels Our Future Finally, our contracts with solar energy
providers in Delaware, Massachusetts and
We’ve pledged to have 100% renewable
Minnesota support the addition of new
electricity for all Home Depot facilities
solar power to the grid in these areas.
worldwide by 2030. It’s an expansion
of our previous commitment to buy or
produce 335 megawatts of renewable or
alternative energy by 2025. Harnessing
power from the sun will be crucial to our
Smart Irrigation Saves Water
success; we anticipate about three-
and Money
quarters of our alternative and renewable We conducted a pilot program across
energy capacity will come from solar by 59 stores in 2019 and 2020 that showed
the end of 2023. us the potential impact of applying our
detailed focus on conserving electricity
We’ve announced plans to purchase to conserving water. The pilot stores saw
solar power from three facilities, their irrigation-related water use shrink by
providing a collective 225 megawatts of approximately 30%. So, in the fall of 2020,
renewable energy capacity, enough to we installed smart irrigation water systems
power 450 stores. in another 384 U.S. stores.

• 75 megawatts of solar energy The technology is sophisticated; each


generated by Enel Green Power in system is guided by information from
Haskell County, Texas, will come online in-ground sensors, real-time weather data
in 2021. and other sources. But the concept is
• 100 megawatts from a National Grid simple. The system only sprays water on
solar facility in Denton County, Texas, a store’s landscaped areas when plants
is scheduled to arrive in 2022. need it. Smart irrigation works according to
conditions, not the clock.
• 50 megawatts from what will be one
of the largest solar facilities in the U.S. We plan to roll out more of these water-
— Invenergy’s complex of solar arrays saving systems in 2021, aiming to have
stretching across three northeast Texas them at 500 stores by the end of the year.
counties — will be available in 2023.

Furthermore, at the end of 2020, solar


farms were operating atop 71 U.S.
stores — up from 47 stores in 2019. We
have another 46 rooftop solar projects in
development in 2021.

WAYS WE’RE DRIVING EFFICIENCIES IN OUR STORES

At 203 stores, fuel cells The energy capacity we Building automation systems
produce over 90% of the purchase from the Los in all U.S. and Canadian
store’s electricity needs Mirasoles Wind Farm in stores monitor conditions, such
and reduce emissions. McAllen, Texas, is enough as indoor temperature and
wind power to run 120 exterior light levels, reducing
Home Depot stores. electricity consumption and
maintenance costs.

58 The Home Depot 2021 ESG Report


DID YOU KNOW
At the end of 2020, solar
farms were operating atop
71 U.S. stores — up from
47 in 2019.

We installed 836 Over 900 U.S. stores At 53 U.S. stores, on-site


energy-efficient heating, participate in demand batteries store power during
air-conditioning and mitigation to optimize our off-peak times for use when
ventilation systems in electricity costs during peak demand spikes.
more than 70 U.S. stores demand and help local utilities
in 2020. better manage grid capacity.

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BECOME A
CAREER EXPLORER
Associate Jordan Wallace’s Home Depot get LEDs installed in our store ceilings. He
career path has covered a lot of ground. He draws on his understanding of logistics and
started with our company nine years ago on technology, as well as his ability to pay close
the supply chain team. Then he moved to attention to even the smallest details.
digital marketing. Now he’s a senior analyst
in building services and deeply involved with When our LED project was at its peak in
our store evolution. His career path may 2019, Jordan was coordinating installations
surprise you, but it was a carefully crafted for 30 stores a week. The overhaul was a
plan — one that shows how our investments big driver of our more than 14% drop in
in sustainability can help our associates U.S. store electricity use in 2020. By the
and the environment, while advancing our end of fiscal year 2021, all U.S. stores are
business strategy. expected to have interior lighting upgraded
to LEDs.
A few years ago, Jordan was on the
homedepot.com team when our CEO Craig Jordan believes any associate can chart a
Menear announced our company would be career as varied, interesting and rewarding
investing billions of dollars in stores. “I knew as his. “If you have the willpower, you can
that would create opportunities,” Jordan make your own path,” he says. “The Home
says. So he started looking for operations Depot has so many great opportunities. You
jobs that interested him and aligned with his shouldn’t limit yourself to just one.”
skill set.

Building services needed someone to


project-manage large initiatives. Jordan saw
a fit. Today, he coordinates with lighting
vendors, contractors, store leaders, local
government officials and many others to

60 The Home Depot 2021 ESG Report


“If you have the
willpower, you can make
your own path. The
Home Depot has so many
great opportunities. You
shouldn’t limit yourself to
just one.”

– Jordan Wallace, Senior Analyst,


Store Support Center

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PROTECTING THE CLIMATE

SUPPLY CHAIN
3 ECO-FRIENDLY
We’ve made significant progress on our One
Supply Chain plan, announced in 2017, to
SUPPLY CHAIN
By making our supply INNOVATIONS
invest $1.2 billion to fund about 150 new supply
chain more efficient, we
chain facilities nationwide.
reduce business costs
and the impact that our By the end of 2020, we had added over 30 1
product distribution has distribution centers, increasing speed to final Zero-emission hydrogen fuel
on the environment. destinations and reducing miles traveled for cells power forklifts.
goods processed through these facilities.

We kept moving forward on our One Supply


Chain investments, even as we distributed more
2
products than ever before. The Home Depot Automated trailer check-ins
moved 1.2 billion cubic feet of products through reduce paperwork and the time
our supply chain in 2020, a company record. that trucks idle.
Volume rose more than 20%, year over year.

Even as supply chain volume increased, the 3


efficiencies we gained in our operations and our
investments in green energy helped us reduce Wider conveyors move large
our carbon intensity. Learn more on Page 54. products faster, increasing
overall efficiency.

DID YOU KNOW: We participate in the U.S. Environmental Protection Agency’s SmartWay®
program to collect and report greenhouse gas emissions data from corporate supply chains. The
Home Depot is a six-time recipient of the SmartWay Excellence Award.

WAYS WE’RE DRIVING SUPPLY CHAIN IMPROVEMENTS

In 2020, we installed hydrogen We sell available space on our By partnering with suppliers
fuel cells at nine U.S. supply trucks and buy space from to forgo pallets, we can stack
chain facilities, giving us 12 other companies, ensuring products to the top of trailers,
locations with emissions-free fewer underloaded trailers hit resulting in as much as a 40%
fuel for forklifts. We estimate the road. That space sharing reduction in truck space needed
these fuel cells helped us reduce saves about 2 million driven to transport some goods.
electricity consumption by about miles a year.
16 million kilowatt hours in 2020.

62 The Home Depot 2021 ESG Report


We do a technology-assisted Optimization technology On the West Coast, one of our
assessment of scheduled pickups guides how we pack trucks key transportation providers uses
and deliveries, then recommend or ocean-bound containers. electric 18-wheelers, which have
optimized routes to reduce miles We maximize the product a 250-mile range and can be
traveled, fuel consumed and load, reducing the number recharged to 80% capacity in
trucks on the road. of trucks and containers — 90 minutes.
and overall emissions.

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SOURCING RESPONSIBLY

ETHICAL SOURCING
We owe it to our customers, associates If suppliers fail to improve, we may terminate
and communities to further the collective our business relationships with them.
We support suppliers
commitment to human rights, safety and Equally important, we support factories
that take action toward environmentally sound practices through that take action to create lasting social and
maintaining our collective ethical sourcing. We engage our suppliers environmental compliance programs. We
commitment to human in this commitment by purchasing products encourage suppliers and factory workers
rights and safety in our made in factories that adhere to our to communicate concerns via processes
supply chain. responsible sourcing standards. We report outlined in our corporate Code of Conduct.
on our progress in an annual Responsible
Sourcing Report.
Our responsible sourcing audits are
Our Responsible Sourcing Standards designed to assess compliance in
mandate that suppliers and factories abide these areas:
by all applicable international and local laws,
rules and regulations in the manufacturing • Laws and regulations
and distribution of merchandise or services • Child labor
provided to us. We conduct audits around
• Forced labor
the world to ensure compliance with our
responsible sourcing standards. • Harassment and abuse
• Compensation
Suppliers must keep on-site documentation • Hours of work
that demonstrates compliance with our
• Non-discrimination
responsible sourcing standards. They also
must allow Home Depot associates and/ • Freedom of association and
or representatives full access to production collective bargaining
facilities, worker records, production records • Health and safety
and workers for confidential interviews
• Environment
in connection with monitoring visits. We
expect our suppliers to promptly correct • Subcontracting
any noncompliance, starting with timely • Communication
preparation and presentation of a corrective
• Business ethics
and preventative action plan. We also re-
audit supplier facilities, with the frequency • Monitoring and compliance
depending on their performance in prior audits.

Board of Directors Executive Management


and/or Audit Committee Leadership Team responsible for owning
Responsible and managing risks and
of the Board sets the tone for our
Sourcing Starts provides general oversight; ethical standards and implementing actions
at the Top receives annual progress report provides oversight and to ensure responsible
on and reviews results of the guidance, as needed sourcing objectives
annual internal audit of the
responsible sourcing program

64 The Home Depot 2021 ESG Report


BY THE
NUMBERS

1,437
factory audits
and 1,575 follow-up
visits were conducted in
34 countries under our
responsible sourcing
policy in 2020

239
factories
were audited for
compliance at peak
production

81
subcontractors
were audited in 2020

Home Depot Global THD’s Responsible Third-Party Auditors Internal Audit


Sourcing Offices Sourcing Team conduct our responsible associates conduct
work with our supply dedicated associates sourcing compliance annual audits to ensure
chain to ensure focused on ensuring audits our responsible sourcing
compliance with our factories adhere to our program is effective and
standards standards operating as expected

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SOURCING RESPONSIBLY

CONFLICT MINERALS
Our company expects all suppliers that Through our due-diligence process,
manufacture our products to provide which aligns with guidance from the
We work with our
appropriate information and conduct Organisation for Economic Co-Operation
suppliers to ensure they due diligence to enable our compliance and Development, we received 100%
implement responsible with conflict minerals laws. We also participation from our in-scope private
sourcing and encourage expect these manufacturers to obtain brands and proprietary-product Tier 1
their smelters to products and materials from suppliers suppliers.
obtain “conflict-free” that are not involved in funding conflict
designations. in the Democratic Republic of the Congo Thirty-two percent of our in-scope
(DRC) and adjoining covered countries. Tier 1 suppliers indicated that one or more
We partner with our private brands and conflict minerals were necessary to the
proprietary product suppliers whose functionality or production of covered
products contain tin, tungsten, tantalum products, down from 44% in 2019. Of
or gold (referred to as 3TG) to identify the smelters or refiners reported by these
the source of any of these minerals in the suppliers, only 49 out of a total of 304
supply chain. uniquely identified smelters or refiners
sourced conflict minerals from covered
countries. All of these smelters or refiners
were certified as DRC conflict-free by the
2020 Progress Responsible Minerals Initiative, the London
As detailed in The Home Depot’s Conflict Bullion Market Association and/or the
Minerals Report for the year ended Dec. Responsible Jewellery Council. However,
31, 2020, our efforts focused on collecting a small number of suppliers below the Tier
and disseminating information about the 1 level were unable to complete chain-of-
sourcing practices of our suppliers. We custody surveys back to the level of the
cataloged that information in a database smelter or refiner.
using the conflict minerals reporting
template developed by the Responsible We continue to work closely with our
Minerals Initiative® (formerly the Conflict- suppliers to ensure they implement
Free Sourcing Initiative, or CFSI). We report responsible sourcing; obtain current,
this data for the calendar year, rather than accurate and complete information
our fiscal year, in line with U.S. Securities about the supply chain; and encourage
and Exchange Commission rules. their smelters to obtain a “conflict-free”
designation from an independent third-
Our in-scope Tier 1 suppliers increased party auditor.
to 91 in 2020 from 71 in 2019. In 2020,
as part of our annual assessment of
products in scope, we continued to
exclude any supplier of products where the
supplier merely affixed company brands,
trademarks, logos or labels to generic
products manufactured by a third party, as
permitted by SEC guidance.

66 The Home Depot 2021 ESG Report


100%
of our in-scope private brands and
proprietary-product Tier 1 suppliers
participated over the last three years
in our efforts to collect conflict
minerals information.

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SOURCING RESPONSIBLY

SUSTAINABLE FORESTRY
The Home Depot’s focus on selling products The Home Depot’s Wood
made from sustainable sources of wood
Our goal is to create
dates to 1994, when certified-sustainable
Purchasing Policy outlines our
transparency in how wood shelving first arrived in our aisles. commitment to:
global forest resources We recognize the environmental impact
are used in our products. our company can have on the world’s • Give preference to the purchase of
woodlands by working with suppliers wood and wood products originating
that adhere to set standards of forest from certified, well-managed forests
management and tree species selection. wherever feasible.
To help protect endangered forests and
support efforts to preserve timber for • Eliminate the purchase of wood and
future generations, we established a Wood wood products from forest regions
Purchasing Policy in 1999 and continue to identified as endangered.
update it.
• Practice and promote the efficient and
We are proud of our ability to create positive responsible use of wood and wood
change by encouraging sustainable forestry products.
practices. We strive to better understand
the social and economic effects that wood • Promote and support the development
purchases have around the world, especially and use of alternative environmental
in regions with endangered forests. products.

• Not accept wood products from the


Data-Driven Sourcing Amazon or Congo Basin areas, Papua
Understanding the world’s forest coverage New Guinea or the Solomon Islands,
by country helps guide our supply chain unless they’re Forest Stewardship
decisions. The vast majority of our wood Council (FSC)-certified.
product purchases originate from North
American forests, some of the most • Demand that our vendors and their
sustainable forests in the world. suppliers of wood and wood products
maintain compliance with laws and
Seventeen percent of the world’s forests are regulations pertaining to their operations
in Canada and the United States, according and the products they manufacture.
to research by the United Nations Food &
DID YOU KNOW
Agriculture Organization. The U.N.’s 2020
Forests provide more than State of the World’s Forests report shows
86 million green jobs and that more than half of the world’s forest
support the livelihoods coverage is in five countries: Russia (20%), CHECK IT OUT
of even more people, Brazil (12%), Canada (9%), the U.S. (8%)
Learn more about The Home
according to U.N. data. and China (5%).
Depot’s three decades of work
to protect endangered forests
while ensuring timber for
future generations.

68 The Home Depot 2021 ESG Report


CHECK IT OUT
Discover how our supplier,
Mendocino Redwood
Company, practices
sustainable forestry with a
focus on fire management.

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REDUCING ENVIRONMENTAL IMPACT

GREENER PRODUCTS
Eco Options Eco Actions
Our greatest environmental The Home Depot’s Eco Options program Our new Eco Actions program provides
impact comes from the helps our customers identify products that our customers with resources they need
products we sell, and our have less of an impact on the environment to take individual action on environmental
biggest opportunity to and encourages our suppliers to provide issues. Projects cover everything from how to
create change is helping more sustainable offerings. compost to tips for saving water and what to
customers live more consider if you’d like to switch to solar energy.
We launched Eco Options in 2007 in
sustainably.
partnership with SCS Global Services, a It’s another way we’re promoting change for
leading, independent, third-party certification the better by helping our customers create
body that validates environmental claims. greener homes.

For a product to receive Eco Options


classification, the supplier must document Focus on Forestry and
attributes that prove it has less of an impact Responsible Chemistry
on the environment than comparable
In addition to our Eco Options and Eco
products in the same category. Until all
Actions programs, we focus our sustainable
industries create and abide by a reporting
product efforts in two key areas relevant to
formula that measures product attributes
our business: forestry and indoor air quality.
according to a common sustainability
In 1999, we established a Wood Purchasing
standard, we will continue to use our Eco
Policy (see Page 68) to help avoid wood
Options program to help customers sort
products coming from forestland with a
through green product claims.
high conservation value. And in 2017, we
published our Chemical Strategy (see Page
78) to encourage the exclusion of certain
chemicals from paint, flooring, insulation,
household cleaning and paint removers.

CHECK IT OUT
Our new Eco Actions website offers
insights and ideas on how people can do
their part in their homes and gardens to
create meaningful change.

70 The Home Depot 2021 ESG Report


Our Eco Options and Eco Actions programs help customers build a better world one product and
project at a time. We focus on five pillars:

Carbon Circularity Responsible Sustainable Water


Emissions All products and Chemistry Forestry Conservation
CO2 is the biggest packaging could be We all want to live The world’s forests Water is a vital
contributor to regenerated in a healthy are the lungs of resource to all life
climate change environment the earth on our planet

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GOING GREEN AT HOME


SPOTLIGHT

Our Eco Options label makes it simpler for customers to identify products that can help reduce their
households’ impact on the climate, the planet and natural resources. Discover a few products in the
program below, and learn more about our Eco Options product standards on Page 70.

1 2 7.
Organic Pest Control Composite Decking
Bonide Neem Oil is an all-
®
Trex® Enhance Naturals is made
purpose insecticide, miticide and Made from 95% recycled plastic
fungicide that is approved for and wood and offers a
organic gardening and kills all 25-year guarantee not
stages of insects. to warp or fade.
- Responsible Chemistry - Circularity

3 Organic Gardening 6.
The Performance Organics™ line
from Miracle-Gro is Organic 5.
Materials Review 1.
Institute (OMRI) listed for
organic gardening.
- Responsible Chemistry

2.
3.
4 Smart Irrigation System
Save up to 50% on water use with
technology that taps weather and 4.
other data. Certified by the U.S.
Environmental Protection Agency’s
WaterSense program and Smart Water
Application Technologies®.
- Water Conservation

5 Garage Door Seal 6 Dark Sky-Approved Light Fixtures


Fill gaps to insulate and Reduce light pollution by directing light where
weatherize your garage, it’s needed, not toward the sky. Learn more
saving energy and money. about The Home Depot’s partnership with the
- Carbon Emissions International Dark Sky Association.

72 The Home Depot 2021 ESG Report


7 8
Roof Coating Solar Panels 9
Designed to reflect the Turn your rooftop into
sun’s heat, roof coating can lower a green energy power plant with Spray Foam
temperatures and reduce household residential solar panels. Go to Cut down on energy waste by
cooling demand. Look for certification Page 88 to learn more. sealing gaps and cracks with
from the EPA’s Energy Star program. spray foam.
- Carbon Emissions
- Carbon Emissions - Carbon Emissions

CHECK IT OUT
10 Energy-Saving Windows
Discover more ways to create Installing Energy Star-certified
an eco-friendly home. Click windows, doors and skylights can
through our interactive guides. shrink electricity bills and emissions.
Learn more about our energy-saving
8. products on Page 82.
- Carbon Emissions

9.
11 Energy-Saving Air Conditioning
A new Energy Star-certified room air conditioner uses
an average of 10% less energy per year, compared to
10. conventional models, according to the EPA.
- Carbon Emissions

11.
12
Composters
12. 13. Turn food scraps into soil-
enriching nutrients for more
productive gardening and less
household waste.
14.
- Circularity

13 14
Compostable Paper
Lawn Refuse Bags Shade Tree
Avoid plastic in your compost Plant on south and west sides
by using sturdy paper bags that of house to reduce AC energy
biodegrade along with the lawn use by 50% in the summer.
clippings inside them.
- Carbon Emissions
- Circularity

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REDUCING ENVIRONMENTAL IMPACT

CIRCULARITY
Our focus on circularity reflects our aim
to prevent products and packaging from
We support the circular
becoming trash. The foundation comes
economy by reusing, from nature: Nothing is wasted, and
repairing, refurbishing and everything is regenerative.
recycling and encouraging
our suppliers to do the We strive to offer products with a
same. positive environmental impact, and we
encourage suppliers to innovate in how
they produce and package products for
reuse and longevity. We carry more than
2 million products, and many have the
potential to move our economy toward
circularity.

We also look for opportunities within


Home Depot operations to reduce,
repair, reuse and recycle. The goal is to Our supplier Pratt Industries produces
extend our planet’s natural resources and all Home Depot moving boxes. The
protect land and water from the impact of boxes are made from 100% recycled
material disposal. material, including some cardboard
and other packaging from Home
Along with our suppliers and vendors, Depot operations — supporting our
we are developing our thinking and commitment to the circular economy.
capabilities in an effort to:

• Design with the environment in mind BY THE NUMBERS


• Eliminate excess materials 360 truckloads of post-consumer
• Eliminate materials that are not readily fiber feed Pratt’s operations daily
reusable or recyclable
No. 1 privately held producer of
• Minimize mixed materials to make
all-recycled containerboard
disassembly and recycling simpler
• Use materials that are biodegradable 5th-largest packaging company
or readily recyclable in the U.S.
• Use recycled content when possible
CHECK IT OUT without compromising product 10,000+ employees
Find out how The Home efficacy
Depot manages packaging 100 facilities in 27 states
• Enable the indefinite reuse of materials
and returned products to
keep them out of landfills. • Encourage manufacturers and
consumers to minimize their 30 years in operation
environmental impact

74 The Home Depot 2021 ESG Report


3 WAYS THE HOME PROGRESS IN 2020
DEPOT SUPPORTS
16.9 million pounds of plastic
CIRCULARITY
261,500 tons of cardboard; see more on Page 91

1 89,000 pounds of expanded polystyrene (EPS) foam;

RECYCLE
see more on Page 76
RECYCLE by separating and
collecting raw materials from 82,000 tons of metal
our own waste streams, and
1.2 million pounds of rechargeable batteries; see more on
working with our suppliers to Page 91
turn them into new products.
2 million pounds of obsolete technology assets

2 169,000 customer tools repaired by The Home Depot

REPAIR items in our stores 12,500 customer tool repairs referred to third-party service
and for our customers to extend providers
REPAIR

the life of products and avoid 55,600 repairs of our Tool Rental equipment
the energy emissions from
manufacturing replacements. 57,000 repairs of store-owned tools

59,900 repairs of store equipment


3
120,800 tons of salvaged returns
REUSE materials so less
REUSE

waste goes into landfills. 448,300 pounds of donated returns

8.6 million tool rental transactions

FROM PLASTIC WASTE TO BACKYARD OASIS

In partnership with our supplier Trex, The Home Depot transforms more than 8,000 tons of plastic
shrink wrap a year into decking that doesn’t rely on wood. Here’s how it works:

Home Depot stores send plastic waste Trex transforms it into wood-alternative
to our return logistics centers (RLCs) decking and other outdoor materials

RLCs send plastic waste to Trex Trex products are sold at


Home Depot stores

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SQUEEZING NEW
LIFE OUT OF WASTE
Associate Lindsey Tornello is curious. One “I appreciate the support I receive to think
day she saw a garbage truck leave a Home strategically and creatively. Having that
Depot facility with a full but lightweight support makes all the difference in my
load. What is it? she wondered. Lindsey, ability to make lasting, impactful change,”
who manages our sustainability and Lindsey says.
recycling initiatives, followed the truck
and watched it dump a pile of expanded The pilot program sparked by curiosity
polystyrene (EPS) foam into a landfill. She kept about 89,000 pounds of EPS out
thought: There must be a better way. of landfills in 2020. Now we’re expanding
it with plans to add more than 100 EPS
She pitched the idea of using a compressors across our operations.
compressing machine to shape leftover
EPS packaging into blocks that could
be repurposed for insulation and other
products. Our company said yes, and a
pilot program was born.

Here’s how it works. EPS foam is removed


from packaging. The compressing machine
squeezes it into blocks. The blocks are sold
to companies that use it for insulation and
other products and purposes. It’s a great
example of our company’s commitment
to circularity (see Page 74), as well as our
orange-blooded ingenuity.

Discover more about how we’re


reducing EPS in our private-label
packaging on Page 92.

76 The Home Depot 2021 ESG Report


“I appreciate the support
I receive to think
strategically and creatively.
Having that support makes
all the difference in my
ability to make lasting,
impactful change.”

– Lindsey Tornello, Manager of


Sustainability and Recycling Initiatives

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REDUCING ENVIRONMENTAL IMPACT

RESPONSIBLE CHEMISTRY
At The Home Depot we understand we OUR COMMITMENT
are responsible for the environmental
We’re addressing
impact of our organization. In partnership • The Home Depot is committed to
chemicals of concerns with stakeholders throughout the supply increasing our assortment of products
in our products and chain, we are committed to offering that maintain third-party certifications of
providing transparency products that are safer for the environment their chemical ingredients, and that meet
into our approach in and our customers. high environmental standards.
our regularly updated
Chemical Strategy. With our encouragement, our suppliers • We encourage suppliers’ efforts to
have been investing in developing improve chemicals in categories with the
environmentally innovative products. The greatest potential impact on indoor air
Home Depot supports the work of the quality.
Green Chemistry & Commerce Council
(GC3) through annual membership and
• We conduct periodic assessments of
participation in the Retail Leadership
key categories to track progress on
Council of the GC3, and we participated
environmental innovations in green
in developing the GC3’s Joint Statement
chemistry.
on Using Green Chemistry and Safer
Alternatives to Advance Sustainable
Products. The Home Depot evaluates our Chemical
Strategy annually to ensure our approach
We and our suppliers also partner and goals are appropriate and meet the
with respected third-party certification needs of our stakeholders.
organizations and environmental nonprofits
that guide the home improvement industry
toward safer chemical ingredient use.
In addition to the restricted substance
categories listed on the following pages,
we are working with our suppliers to reduce
neonicotinoids and methylene chloride in
products. The Home Depot is committed
to continuing the drive toward minimizing
the environmental impact of the products
we sell.

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FLOORING
Carpet Vinyl
Home Depot carpet suppliers have been at Home Depot vinyl flooring suppliers are
the forefront of the industry-wide removal of setting the pace for change in this category
chemicals of concern and the exploration with efforts to continually improve the
of safer alternatives in carpet. All indoor chemical profile of their products. As of
wall-to-wall carpet sold through The Home January 2016, no ortho-phthalates are
Depot’s U.S. and Canada stores have a permitted as added plasticizers in vinyl
third-party verification of transparency flooring sold at Home Depot stores in the
through DECLARE® Label or Environmental U.S. and Canada.
Product Declarations (EPDs), or certification
of material health through Cradle to Cradle™
Products Innovation Institute or CRI Green
Label Plus®. The following chemicals are
Laminate Flooring
Laminate flooring at The Home Depot is
excluded from indoor wall-to-wall carpet
verified by either GREENGUARD® Gold or
sold in our U.S. and Canada stores:
FloorScore® certification to contain 0.0073
ppm or less of formaldehyde, which is a
• Perfluorooctanoic acid (PFOA) or
stricter standard than the CARB 2 standard
perfluorooctane sulfonate (PFOS)
of 0.05 ppm.
• Triclosan
• Organotins
• Ortho-phthalates
• Vinyl chloride
• Nonylphenol ethoxylates (NPEs)
• Coal fly ash
• Formaldehyde
• Added heavy metals
DID YOU KNOW
• Perfluoroalkyl and polyfluoroalkyl
substances (PFAs) The Home Depot has eliminated perfluoroalkyl and
polyfluoroalkyl substances (PFAs) from carpets
and rugs sold in the U.S. and Canada.

CHECK IT OUT
Want to make your home more
sustainable? Change what’s right
under your feet with eco-flooring.

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RESIDENTIAL HOUSEHOLD PAINTING PRODUCTS


CLEANING CHEMICALS Paints
Our current U.S. and
Canada zero- and low-VOC
The Home Depot continues to work with As a result of our paint suppliers’ efforts
over the last 10 years to evolve their
paints are outlined here:
suppliers to improve products that impact
indoor air quality. As a result, we are asking paints and offer products that help
VOC VALUE <5g/L = zero VOC
our suppliers to exclude the following maintain healthier air quality, the paints
chemicals from the manufacturing of all we sell have significantly improved. The BEHR Premium Plus Interior
residential household cleaning chemical following chemicals are excluded from our BEHRPro i300 Interior
products sold in Home Depot stores by the interior and exterior latex water-based wall Glidden Premium Interior
end of 2022: paints in our U.S. and Canada stores: Glidden Diamond Interior
CIL Premium Interior (Canada)
• Propyl-paraben • Triclosan
• Butyl-paraben • Isocyanates
• Diethyl phthalates • Formaldehyde
• Lead/heavy metals VOC VALUE <50g/L = low VOC
• Dibutyl phthalates
• Formaldehyde • Alkylphenol ethoxylates and BEHR Premium Plus Exterior
• Nonylphenol ethoxylates (NPEs) Nonylphenol ethoxylates (APEOs
BEHR Premium Plus Ultra Interior
• Triclosan and NPEs)
BEHR Premium Plus Ulta Exterior
• Toluene
• Trichloroethylene (TCE) BEHR MARQUEE Interior
Certifications: In our U.S. stores, all
BEHR MARQUEE Exterior
Behr® interior paints, Glidden® Premium,
In addition, our Eco Options program Glidden Diamond™ and PPG® Timeless® BEHRPro i100 Interior
identifies environmentally preferred products, interior paints are GREENGUARD Gold BEHR Premium Plus Ceiling Paint
including cleaners that have obtained certified. All BehrPro® interior paints and BEHR Premium Plus Ultra Ceiling
certifications from independent third-party Behr Primers are MPI X-Green certified. Paint
testers such as EPA’s Safer Choice and
BEHR MARQUEE Ceiling Paint
Cradle to Cradle.
Paint-tinting Colorants: In 2012, we Glidden Premium Exterior
transitioned our paint-tinting colorants in Glidden Essentials Interior
our U.S. and Canada stores from solvent- Glidden Ceiling Paint
INSULATION based formulation to a water-based, low-
Glidden Professional Speedwall
VOC and ethylene-glycol-free formulation.
Our fiberglass insulation suppliers have Glidden Professional Ultra-Hide
persistently challenged themselves to 220
remove chemicals of concern from their Volatile Organic Compounds: All of our Glidden Professional Ultra-Hide
products over the last decade. As a result, interior and exterior latex water-based wall 440
100% of our fiberglass insulation products paints in our U.S. and Canada stores are Glidden Speed-Cote Exterior
in the U.S. and Canada are GREENGUARD zero or low VOC.
Glidden Vinyl Renew Exterior
Gold certified and do not contain the
following chemicals: PPG Timeless Interior
PPG Timeless Exterior
• Brominated flame retardants
• Halogenated flame retardants
• Antimony trioxide
Note: Colorants added to base paints
• Formaldehyde
may increase VOC level, depending on
• Added heavy metals color choice.

80 The Home Depot 2021 ESG Report


DID YOU KNOW
All interior and exterior latex water-based wall
paints in our U.S. and Canada stores have low
or no volatile organic compounds (VOCs).

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REDUCING ENVIRONMENTAL IMPACT

ENERGY-SAVING
PRODUCTS
The Home Depot encourages suppliers to
make the products we sell more energy
Customers who use our
efficient, and our partnership with the U.S.
energy-saving products
Environmental Protection Agency’s Energy
reduce their power bills Star® program supports those efforts, too.
and their impact on the
planet. In 2020, we exceeded our stated multiyear
goal to help our customers save $2.8 billion
on utility bills through the purchase and
proper use of energy-efficient products.
Energy Star-labeled products were key
to that progress. In 2020, we offered over
23,000 energy-saving products in stores and
online, including more than 8,000 Energy Star
products. We sold more than 159 million units
of Energy Star products.

We estimate our customers’ purchases of


Energy Star products in 2020 helped reduce
annual electricity use by 7.5 billion kilowatt
hours, saving over $1 billion on energy costs
and lowering carbon emissions by over
5 million metric tons. That’s equivalent to
removing over 1.1 million cars from the road.

DID YOU KNOW


The Home Depot is an 11-time
Energy Star award winner.

GOING GREEN, Energy Star-labeled Clothes washers use


SAVING GREEN clothes dryers use 20% about 25% less energy
less electricity. If all clothes and 33% less water
Products certified by Energy dryers sold annually in when they’re Energy
Star and WaterSense can help
the U.S. were certified, Star-certified.
households cut costs and reduce
Americans could collectively
their impact on the planet.
save $1.5 billion.

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REDUCING ENVIRONMENTAL IMPACT

WATER-SAVING
PRODUCTS
We work with suppliers to encourage the WaterSense® label, and we sold over 20
production of water-conserving products, million units of those WaterSense products.
The Home Depot helps
which we, in turn, offer to our customers.
protect water resources Our greatest opportunity to effect We estimate our customers’ purchases of
nationwide by selling environmental change for the better is by WaterSense products in 2020 helped reduce
products designed to selling eco-friendly products that help drive annual water consumption by over 60 billion
conserve. efficient use of resources in communities gallons, which would collectively mean
across the United States. savings of more than $726 million on water
bills.
In 2020, we exceeded our stated multiyear
goal to help customers save 250 billion Every drop of water counts, and we do our
gallons of water through the purchase and part to help ensure it’s used economically.
proper use of our water-efficient products. For example, all showerheads sold in our
In stores and online, we offered nearly U.S. stores have a maximum flow of 1.8
10,000 water-saving products, including gallons per minute, which exceeds the
more than 4,000 products bearing the EPA’s WaterSense standard.

DID YOU KNOW


Our company has been
a WaterSense Partner of
the Year seven times since
2011, receiving Sustained
Excellence awards in
three of those years.

All toilets sold in Home Depot stores in the U.S. bear the WaterSense label.

A standard-sized The average family in Toilets account for nearly


Energy Star-certified the U.S. could save 30% of an average home’s
dishwasher costs about 2,700 gallons of water water use. Replacing old
$35 per year to run and per year by installing toilets with WaterSense
saves 3,870 gallons of WaterSense-labeled models can save nearly
water, on average, over showerheads. 13,000 gallons a year.
its lifetime.
Source: EPA

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REDUCING ENVIRONMENTAL IMPACT

GARDENING
The Home Depot partners with our growers Native Plants
and suppliers in advance of each growing
Our partnerships with Native plants contribute to the health of
season to offer healthy trees, blooms and
local growers enable edible plants that support local environments ecosystems and pollinators. Our growers
us to offer healthy, and pollinators. Our gardening product work closely with U.S. states’ departments
environmentally offerings are informed by our understanding of agriculture to identify invasive plants
beneficial plants, reduce that backyards, balconies and patios are that may threaten local native plants.
emissions and support well-being retreats for our customers and
businesses in the mini-ecosystems that have an impact on Supporting Local Growers
communities we serve. their surroundings.
We are proud to partner with more than
140 plant growers who balance the
impact of their production with local
Growing Organic environmental issues and growing
We offer more than 25 varieties of organic, conditions in their regions.
non-GMO vegetable and herb plants grown
according to methods approved by the U.S.
Department of Agriculture (USDA) National
Organic Program. Only products that have
been certified as meeting the USDA’s
organic production and handling standards
may carry the USDA Organic seal.

Eco Options Supplier Spotlight


5 THINGS TO KNOW ABOUT

1 2 3 4 5
The company was Turf Builder® products Ortho® outdoor garden ScottsMiracle-Gro The company’s
founded in 1868 by a are phosphorus-free, maintenance products incorporates about GroMoreGood initiative
hardware store owner in helping reduce water are produced without 5 billion pounds of aims to help connect
Ohio; today its Scotts®, pollution from runoff. neonicotinoids, which can recycled green waste into 10 million young people to
Miracle-Gro® and Ortho® harm pollinators. its products every year. gardens and green spaces
brands are among the by 2023.
most recognized in the
industry.

Learn more about The Home Depot’s Eco Options program on Page 70.

84 The Home Depot 2021 ESG Report


SIMPLE STEPS TO ORGANIC GARDENING

STEP 1 STEP 2 STEP 3 STEP 4


Build a foundation Choose eco-friendly plants Nurture with nature Select sustainable
Organic soils and low- Organic plants help Natural fertilizers use maintenance
impact supplements promote ecological organic ingredients to Organic insecticides and
support healthy balance and biodiversity promote growth weed-retardants keep
ecosystems garden spaces green

Performance Organics Bonnie Plants Organics are Alaska Fish Fertilizer’s rich Bonide Tomato & Vegetable
delivers Miracle-Gro USDA-certfied organic and organic matter nourishes the 3-in-1 spray defends against
results you expect using give you a head start on soil to enhance the strength pests and fungal diseases,
ingredients you want. your harvest. and vigor of your plants. indoors and outdoors.

CHECK IT OUT
Our Eco Actions tips
and get-started video
guide novice gardeners
through creating their
first organic garden.

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REDUCING ENVIRONMENTAL IMPACT

CLEANING
A home should be a healthy environment. That’s why The Home Depot offers environmentally
preferred cleaners that carry third-party certifications validating their eco-friendly claims.
In partnership with
Cleaning products that are non-toxic, biodegradable, free from harmful chemicals, plant-based
stakeholders throughout and not tested on animals allow our customers to achieve clean and green homes.
our supply chain, we are
committed to offering
products that are safer
for our customers to use
in their homes.

Identifies products that use Identifies products that Leaping Bunny label
safer chemical ingredients meet emissions standards certifies no animal testing in
without sacrificing for helping reduce indoor manufacturing
performance air pollution and risk of
chemical exposure

Certifies manufacturer’s Assures a USDA-verified Suite of eco-labels certify


commitment to improving amount of renewable environmental stewardship,
what products are made of biological ingredients social responsibility and
and how they’re made quality

DID YOU KNOW


The Home Depot has set a goal to eliminate certain chemicals from
the cleaning products we sell by 2022. See more on Page 78.

86 The Home Depot 2021 ESG Report


ECO-FRIENDLY SWEEPER
Libman uses recycled plastic for broom fibers and recycled steel
to create mop and broom handles. Learn more about how our
suppliers are reducing single-use plastics on Page 94.

GREENER
CLEANING
Cleaning products have
an important impact on
the environment inside
homes and beyond.
We are committed to
partnering with suppliers
that allow us to increase
CLR® products are Method® products are Ecos® ensures every
our customers’ eco-
formulated to be safe made with non-toxic, ingredient is the safest in
friendly cleaning options.
for consumers and naturally derived formulas its class, earning EPA’s
the environment. The that are never tested on Safer Choice Partner
company has earned the animals. They’re certified of the Year multiple
U.S. EPA’s Safer Choice by Cradle to Cradle and times. The company also
Partner award multiple packaged in recycled practices zero-waste
times. plastic bottles. manufacturing.

Eco Options Supplier Spotlight


5 THINGS TO KNOW ABOUT

1 2 3 4 5
The company’s founder Based in Vancouver, Biokleen products The company’s ultra- All products are
formulated Biokleen’s Washington, the company are packaged in concentrated cleaning manufactured using cold
first plant-based cleaner celebrated its 30th No. 1 (polyethylene products save water water to reduce energy use.
in a makeshift lab in his anniversary in 2019. terephthalate) and in the manufacturing
garage. No. 2 (high-density process and allow them
polyethylene) plastics to be packaged in smaller
because they’re commonly bottles.
accepted by curbside
recycling programs.

Learn more about The Home Depot’s Eco Options program on Page 70.

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REDUCING ENVIRONMENTAL IMPACT

RESIDENTIAL SOLAR
Solar energy is the most abundant energy Nationwide and across all solar suppliers,
resource on earth, and, after solar panel residential solar deployment in 2020 fell
Our solar partners have
installation, it has zero environmental below the 18% annual growth reported in
installed systems that 2019 because residential installations were
impact. That makes it one of the cleanest
generated more than and most sustainable sources of power. significantly slowed by the pandemic in the
330,000 kilowatts of By partnering with Sunrun, The Home first half of 2020. But by the end of the year,
clean energy for our Depot makes it easier for our customers installations of residential and commercial
customers since 2016. to generate clean energy at home. solar systems were expanding rapidly. Solar
accounted for 43% of all new electricity-
generating capacity in the U.S. in 2020,
The solar energy system from our supplier according to the Solar Energy Industries
is able to send excess power from Association (SEIA).
customers’ homes back to the electric
grid. That enables the whole community
to benefit from clean power from the sun.
Some utilities even offer solar credits to
customers, essentially buying the extra
solar power their homes produce.

In 2020, our solar program completed DID YOU KNOW


installations at over 4,500 homes, giving In its 12 years of operation, our solar partner
our customers the capacity to produce Sunrun has brought the power of the sun to
nearly 34,000 kilowatts of solar energy. more than 233,000 U.S. households.

DID YOU KNOW


We’re empowering customers’
energy independence with
home battery solutions that
store solar-produced energy
for reliable power, even during
storms and outages.

88 The Home Depot 2021 ESG Report


Across all U.S. providers and markets,

11%
residential solar installations

in 2020, compared to the year before, according to


the SEIA/Wood Mackenzie U.S. Solar Market Insight:
2020 Year in Review.

Go to Page 58 to discover how The Home Depot is harnessing


the sun’s energy to power our business operations.

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REDUCING ENVIRONMENTAL IMPACT

WASTE MANAGEMENT
& RECYCLING
Hazardous Materials Disposal Receiving and central storage—
Appropriate procedures for handling,
We’re committed to & Handling accumulating, storing, labeling and
properly managing waste. We seek sustainable methods of disposal, inventorying hazardous waste and separating
We partner with vendors and, in 2020, our company recycled or potentially incompatible materials
to keep improving how reused for energy 32% of the hazardous
we and our customers waste generated from our operations and Inspections of key areas—Routine
reduce, reuse and recycle. customer returns. We properly disposed of inspections of garden areas, parking lots and
the remaining waste. store entrances identify potential problems;
scheduled sweeps of fertilizer aisles and
parking lots help protect against hazardous
Associate Training & Resources materials entering the environment

All associates receive training on


recognizing hazardous materials.
Associates responsible for managing Responsive Actions
storage and cleanup of hazardous If a spill does occur, we have the following
materials complete additional in-depth resources in place to properly address it:
environmental compliance training.
Spill kits and containers—Located
Information about and guidance for the throughout each store for prompt and
cleanup, classification, labeling and effective cleanup and disposal of hazardous
storage of hazardous waste is available materials such as paint, solvents, aerosols,
to associates through company-issued oil, fuel, pesticides and fertilizers
handheld devices and our associate
intranet site. Emergency response—A third-party
consultant provides an emergency response
team available 24/7 to assist with hazardous
Preventative Actions materials cleanup and, if necessary, provide
We take specific steps to avoid spills remediation services
and contamination across the store with
particular focus on these areas:

Garden center—Proper handling of


fertilizer and pesticides bags, including
checking for and properly repairing
damaged bags

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RECYCLING TO REDUCE WASTE SUSTAINABLE
SHREDDING
The Home Depot provided
LEAD-ACID 2014 107,000 over 3.4 million pounds of
BATTERIES 2015 170,000 shredded paper for recycling
We recycle lead-acid batteries 180,000 in 2020. Here’s how that
2016
used in THD operations and helped the planet:
2017 200,000
dropped off by customers.
Pandemic-related drops in vehicle 2018 218,000
use and battery sales reduced 2019 235,200
2020 collections. Figures show 2020 184,600
number of battery cores.
73% increase since 2014
Avoided 2.5 million
pounds of CO2
emissions

CARDBOARD 2014 200,000


The amount of cardboard we 2015 210,000
recycle from our operations 2016 225,000
continues to rise. Amounts
2017 230,000
are in tons.
2018 248,400 Kept 8,600 cubic
31% increase since 2014 2019 250,600 yards of paper out
2020 261,500 of landfills

COMPACT 2014 700,000


FLUORESCENT 2015 680,000 Preserved 29,000
LIGHT BULBS 2016 860,000 trees
We recycle CFLs dropped off by 2017 980,000
customers. Customers’ switch 2018 800,500
to LED lights has reduced CFL
2019 804,300
recycling volume. Amounts are
in pounds. 2020 562,700

20% decrease since 2014 Conserved 3.9 million


kilowatt hours of
electricity

RECHARGEABLE 2014 940,000


BATTERIES 2015 920,000
We recycle rechargeable 2016 1,000,000
batteries dropped off by 1,100,000
2017
customers. Amounts
2018 1,043,300 Saved over 47 million
are in pounds.
2019 1,170,200 gallons of water
32% increase since 2014 2020 1,240,400

Source: Iron Mountain® using


calculations by Quantis®

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REDUCING ENVIRONMENTAL IMPACT

SUSTAINABLE
PACKAGING
The Home Depot’s packaging team works PVC film is a thin, rigid synthetic plastic
Our packaging with our private-label product suppliers to polymer that’s molded around products to
apply science to creating better packages. secure and protect them. But, like EPS, it
innovations reduce
Our goals are to reduce package footprints is tough to recycle and takes a long time
waste, increase shipping and use more sustainable materials to to break down naturally, and we’re working
efficiency and decrease secure and protect the private-label hard to use less of it.
product damage. That’s products we sell. From 2017 through 2020,
good for the planet and our packaging innovations allowed us to:
In 2020, we committed to eliminating EPS
our business.
and PVC from our private-label packages,
• Redesign 366 packages to reduce size
prompting us to dig even deeper for results.
and materials

• Avoid sending over 3,800 cargo


containers on the high seas

Using Less EPS & PVC


In 2020, our packaging team continued to DID YOU KNOW
find substitutes for expanded polystyrene The Home Depot has
CHECK IT OUT (EPS) foam and polyvinyl chloride (PVC) film pledged to exclude
Switching from wooden in our private-label products. EPS foam is expanded polystyrene
to recycled paper pallets good at protecting products from damage, (EPS) foam and polyvinyl
in some parts of our but it contains beads of chemicals and oil
chloride (PVC) film from
supply chain saves that are often difficult to recycle and can
our private-label packaging
money and trees. See an take more than a century to biodegrade.
by the end of 2023.
So, we’re scouting out even small amounts
infographic explainer.
and replacing EPS with easier-to-recycle
materials like molded pulp and paper.

BY THE
NUMBERS
49 873,200 961,100
packages cubic feet square feet
were redesigned in of EPS foam was removed of PVC film was
2020 to reduce size from our private-label eliminated in 2020, too,
and materials packaging in 2020 — enough enough to cover 16
to fill 441 school buses football fields

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SPOTLIGHT

RETHINKING WHAT’S
INSIDE THE BOX
In 2020, our ongoing effort to find more sustainable substitutes for expanded polystyrene (EPS) foam led our packaging
innovation team to the ceiling fan aisle. Fan blades and electronic parts for years have been packed in EPS. But the foam
takes up a lot of space, and it takes a long time to biodegrade. So, we made a big change to smaller, greener packages for
our private-label fans. Here’s how we did it.

Molded paper pulp


protects as well as EPS
but uses less space and
biodegrades faster

126 fan models


were repackaged
with molded paper

Smaller packages
decrease demand for
space on cargo ships
and trucks, helping
On average, using molded reduce emissions
pulp instead of EPS can
shrink package size 15%

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PARING DOWN
SPOTLIGHT

SINGLE-USE PLASTICS
Our multiyear partnership with suppliers continues to reduce virgin plastic in the products
we sell. In 2020, more than 200 products were redesigned to shrink single-use plastics —
following on remarkable progress made in 2019. Here’s a sampling of success.

100 million+
3.

POUNDS OF VIRGIN 4.
PLASTIC REPLACED
with recycled plastic in 2020
2.

1.

1 American Plastics®
The blue ribbon for plastic reduction goes to
American Plastics® for their “4R” initiative: Rethink,
Reduce, Reuse, Recycle, which in 2020 helped the
company replace 100 million pounds of virgin plastic
with recycled plastic in products like storage totes.

2 QEP®
By taking away virgin plastic in
packaging for its tile and carpet tools, DID YOU KNOW
QEP removed 78,200 pounds of
Using less plastic in shower door hardware
plastic from its manufacturing stream.
In addition, the company added enabled Liberty Hardware® to remove 4,827
5% reground plastic in tile spacers, pounds of plastic from its products in 2020.
converting 26,700 pounds of virgin
plastic to recycled.

94 The Home Depot 2021 ESG Report


3
4 3M™
King of Fans®
By converting packaging to
A change from plastic blister recycled plastic for respirator
packaging to cardboard for ceiling masks, Command™ Hanging
fan remote controls removed Solutions and Scotch®
35,313 pounds of virgin plastic Mounting Strip, the company
from King of Fans products. avoided using 20,450
pounds of virgin plastic.

DID YOU KNOW


3M’s Scotch painter’s tape is
made using water-based materials
or renewable natural rubber and
paper from responsibly managed
forests. Plus, the tape is produced in
factories that use renewable energy.

Reducing Plastic in the Garden


At Home Depot garden centers nationwide, customers can bring back their empty pots
for growers to refill. When the pots are no longer reusable, our partner East Jordan
Plastics turns them into new pots, trays and hanging baskets. It’s one of many ways we
support circularity. Learn more on Page 74.

60%

Recycled plastic containers can recover Every year, East Jordan Plastics recycles
upwards of 60% of the energy tied to more than 16 million pounds of used
initial product processing. plastic containers, equivalent to roughly
DID YOU KNOW 1,000 semi-truck loads of containers.
Behr is making paints
greener inside and out by Our Plant Pot Recycling Program accepts containers with these resin codes:
reducing certain chemicals
and by converting paint
cans to 100% recycled
plastic. Learn more about
Responsible Chemistry on
No. 2 No. 5 No. 6
Page 78.
High Density Polyethylene Polypropylene Polystyrene

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STRENGTHEN
OUR
COMMUNITIES
RESOURCES

> Supplier Diversity > Team Depot


> Diversity Partnerships > Disaster Response

> Retool Your School > U.N. Sustainable Development Goals

> The Home Depot Foundation

96 The Home Depot 2021 ESG Report


GOALS Launch a Tier II supplier
diversity program
that measures and encourages
Our core values shape our commitment our Tier I suppliers’ spending
to making the communities we serve with diverse suppliers
stronger and more resilient. By
supporting diversity in our communities
and among our suppliers, we encourage
respect for all people and spark By 2028, The Home Depot
entrepreneurship and innovation. The Foundation will invest

$50 million
Home Depot Foundation invests in
improving veteran housing, supporting
communities affected by natural
disasters and training skilled tradespeople to train 20,000 skilled
to fill the labor gap. Team Depot, our
tradespeople, including veterans
associate volunteer force, provides
hands-on project support to further the
Foundation’s mission and impact.

By 2025,
the Foundation will contribute

$500 million
to veteran causes with a
focus on housing

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COMMUNITY
PARTNERSHIPS
Our local and national partners represent • Hispanic Association on Corporate
Our partnerships with the diversity of our associates, suppliers Responsibility
organizations that and communities. Since 2017, we have • Human Rights Campaign
committed more than $35 million to • Minority Business Development Agency
promote diversity, equity
organizations working to improve social • NAACP
and inclusion reinforce equity. Organizations that help us further our • National Action Network
our support to the commitment to communities include: • National Association of Asian American
communities we serve. Professionals
• National Association of Chinese-
Americans
Diversity Alliances • National Center for American Indian
• 100 Black Men of America Enterprise Development
• 100 Black Men of Atlanta • National Council of Negro Women
• American Corporate Partners • National Hispanic Corporate Council
• ATL Action for Racial Equity • National LGBT Chamber of Commerce
• Business Coalition for the Equality Act • National Minority Supplier Development
• CEO Action for Diversity and Inclusion Council
• Congressional Black Caucus Foundation • National Urban League and local affiliates
• Congressional Hispanic Leadership • Network of Executive Women
Institute • Rainbow PUSH Coalition
• Executive Leadership Council • Second Chance Business Coalition
• Georgia Minority Supplier Development • Trumpet Awards Foundation
Council • U.S. Hispanic Chamber of Commerce
• Hispanic Alliance for Career Advancement • U.S. Pan-Asian American Chamber of
Commerce

PARTNERS IN ACTION

100 Black Men of America


A strategic partnership with 100 Black Men of America aims to increase
skilled trades training and meaningful career opportunities for Black youth.
The Home Depot Foundation and our trades training nonprofit partner,
Home Builders Institute, are working with 100 Black Men of America to
launch pilot programs in underserved communities in Atlanta, Philadelphia
and San Francisco to provide skill-building workshops, work experience,
internship opportunities and industry-recognized pre-apprenticeship
certificate training (PACT) certifications. The programs will be facilitated
through 100 Black Men of America’s existing after-school programs. Learn
more about trades training on Page 105.

98 The Home Depot 2021 ESG Report


Community Support Education, Entrepreneurship
• Atlanta Police Foundation & Trades
At-Promise Center
• Atlanta University Center Consortium
• Beloved Benefit
• Construction Education Foundation
• CHRIS 180
of Georgia
• Empty Stocking Fund
• Morehouse School of Medicine
• Families First
• Home Builders Institute
• Hosea Helps
• Russell Innovation Center for
• National Center for Civil and
Entrepreneurs
Human Rights
• United Negro College Fund
• The King Center
• United Way of Greater Atlanta

Talent Acquisition
Arts • AfroTech
• Alvin Ailey American Dance Theater • AnitaB.org (Grace Hopper
• Atlanta Music Project Celebration)
• True Colors Theatre Company • Black Data Processing Associates CHECK IT OUT
(BDPA) Meet Fahim Siddiqui, a Home
• Dice Diversity-Focused Virtual Career Depot IT leader and member
Fairs of The Carter Center board of
Housing • Fairygodboss councilors, who was recognized as
• HBCU Battle of the Brains one of the 100 Most Influential
• Atlanta Habitat for Humanity
• HBCU Career Development Georgia Muslims by the Islamic
• Atlanta Neighborhood Development
Marketplace Speakers Bureau. “It is with great
Partnership (ANDP)
• International Slumber Party pride that I represent Home
• Community Solutions Depot’s culture and values,
• Latinas in Tech
• Grove Park Foundation especially respect for all people.
• Military Friendly Employer & Spouse
• HouseProud One of the many benefits of
Employer
• Mary Hall Freedom House giving back is the opportunity to
• National Black MBA Association
• Meals on Wheels Atlanta Home Repair expand one’s perspective and gain
• StartOut (HackOut)
• Quest Community Development appreciation for other cultures.”
• Women in CyberSecurity
Organization
• Women Who Code
• Veterans Empowerment Organization
• Westside Future Fund

Habitat for Humanity


Since 1989, The Home Depot has partnered with Habitat for Humanity to
revitalize neighborhoods across America through affordable homeownership
that helps build generational wealth. “Historic barriers to homeownership
are the foundation for the inequity and segregation we see in many
communities,” says Lisa Y. Gordon, president and CEO of Atlanta Habitat.
“More than 90% of our homebuyers are African American — 80% of
whom are women and the head of their household. The more we bring
attention to the issue, the closer we get to a more just society.”

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SUPPLIER DIVERSITY
At the Home Depot, we envision a culture businesses. We’re working to better ensure
Doing business with that brings people together to solve problems that a portion of the money we spend on
a diverse group of and create meaningful solutions. We believe products and services, even with suppliers
our diverse supplier program increases that are not identified as diverse, makes its
suppliers provides us
shareholder value, drives innovation and way to diverse enterprises.
with unique ideas, creates positive economic impact in the
different perspectives communities we serve. In 2020, we increased The Home Depot provides supplier
and innovative products our year-over-year spending with diverse development and mentoring to assist with
that meet the needs of suppliers to $3.2 billion. business growth, and we partner with
our customers. organizations that provide certification,
Diverse businesses are identified as U.S. education and opportunities for capital and
based, for-profit and 51% or more owned, networking.
controlled and operated by U.S. citizens or
people with U.S. permanent resident alien
status that fall under one of the following
categories:

• Woman
National Minority Supplier
• Ethnic minority Development Council
• Veteran
DID YOU KNOW • LGBTQ
In 2020, we presented our • Individual with a disability
inaugural Supplier Diversity U.S. Pan Asian American Chamber of Commerce
Innovation Award to Tricam We are developing a Tier II supplier diversity
Industries for its innovative program that aims to drive more spending
Gorilla ladders. from our direct Tier I suppliers to diverse

PARTNERS IN GROWTH

PURE BEAUTY FARMS ALUF PLASTICS makes all


— based in Miami with growing kinds of can liners. The certified
locations in Florida, Georgia woman-owned business, led
and Texas — is the starting point by owner and President Susan
for annuals, perennials and Rosenberg, has been recognized
succulents for gardens across by Inc. magazine as one of
the Southeast. The minority- the fastest-growing private
and veteran-owned company companies in the U.S. Founded
was founded by brothers in 1974, the Orangeburg, New
Henry and Victor Yanes, whose York, company has been our
family fled Cuba in the 1960s. supplier for over 25 years and
Their business has expanded has produced our HDX private-
alongside ours for more than label trash bags since 2012.
two decades.

100 The Home Depot 2021 ESG Report


SUPPLIER DIVERSITY The Home Depot is building inclusive and sustainable business opportunities
for women, minority, veteran, disability and LGBTQ owned companies. We
VISION STATEMENT are committed to cultivating a supplier base that creates long-lasting growth
and mutual business success, while reflecting the diversity of our customers and
strengthening our communities.

“At all times, The


Home Depot has been
supportive. They’ve
always been fair, but
firm. They pushed
us. The merchants
challenged us on our
pricing and product
quality. I think we’re
a better company
because of it.”

– Andre Woolery, MagnoGrip

HARBOR ENTERPRISES’ MAGNOGRIP was begun by


Survive-a-Storm pods, cubes and Andre Woolery in 2005 while
underground shelters can help he was a university student. The
our customers make it through company’s magnet-enhanced tool
tornados. The Native American- belts, work gloves and more are an
owned business is based in innovative solution to a common
Thomasville, Georgia, and led by problem: keeping equipment at
company President Lucas Stewart. hand when your hands are full. The
Nearly half its employees live minority-owned company, based
in areas certified as historically in Miami, has been our supplier
underutilized business zones. The since 2009; we were the first big-
company says hiring from these box retailer to stock its products.
HUBZones boosts workplace We recently began selling the
diversity and morale, while company’s new Bootstrapt bags
lowering employee turnover. and totes.

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RETOOL YOUR SCHOOL


In 2020, The Home Depot’s Retool Your School®
campus improvement grant program marked its
BY THE
Since 2009, our campus
improvement grant 11th year of commitment to historically Black NUMBERS
colleges and universities (HBCUs) and the pivotal
program has helped fund
role they play in our higher education system.
more than 100 projects
benefiting 87% of the
nation’s HBCUs.
Every year, HBCU students, alumni and advocates
vote for their schools to become Retool Your
$500,000
School recipients. Voting is organized around three awarded
school clusters, based on student population, and in grants in 2020
schools with the most votes per cluster are awarded
campus improvement grants. In 2020, 54 HBCUs
competed for the chance to retool their school.

Since the program’s launch, more than 36 million 10 schools


votes have been cast in support of HBCUs vying for
Retool Your School grants.
received
$50,000 each

100+
DID YOU KNOW campus
The Home Depot increased its total Retool Your School funding in 2021 to $1 million, improvement projects
backing 30 projects with grants of $20,000 to $75,000 per school. funded since 2009

CHECK IT OUT
Fisk University, Meharry Medical College
and Tennessee State University are
distinct HBCUs with distinct legacies and
vibes. But these Nashville-based schools
all have common ground and shared a goal
to upgrade their campuses with Retool
Your School grants won in 2019.

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2020 RETOOL YOUR SCHOOL WINNERS
Each school won a $50,000 campus-improvement grant

Cluster 1: 4,000+ students Cluster 2: 1,201-3,999 students

Cluster 3: 1,200 or fewer students Campaign of the Year

Awarded for galvanizing supporters with an


innovative and effective campaign

TOUGALOO COLLEGE GETS RETOOLED


The HBCU in Jackson, Mississippi, received a $50,000 Retool Your School campus improvement grant in July 2020, By the end of
the year, the school had used the funds to update its oldest residence hall — dating back half a century — with new flooring, paint, LED
lights, bathroom fixtures and emergency exit signs to create a more comfortable, safer living space for students.

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THE HOME DEPOT


FOUNDATION
Support for Veterans Disaster Response
The Foundation works Giving back to veterans is personal at The In 2020, The Home Depot Foundation
to improve the homes Home Depot. Many of our associates are committed more than $4 million to assist
and lives of U.S. affiliated with the U.S. military, either as communities affected by fires, tornadoes
veterans, train skilled active-duty members, military spouses and hurricanes. The Foundation also
tradespeople to fill the or veterans, and we’ve worked to build applied our disaster response experience
labor gap and support programs to support those associates (see and funding to assisting nonprofit partners
Page 41). with COVID-19 relief, including assistance
communities affected by
for food insecurity and COVID-19 testing.
natural disasters. The Home Depot Foundation has
committed $500 million to veteran causes The Foundation is committed to supporting
by 2025. At the end of 2020, over $350 our communities with immediate relief after
million of that pledge had been invested. natural disasters and long-term rebuilding
The Foundation, in collaboration with Team that aids recovery. Learn more about how
Depot and nonprofit partners, has helped to we give back through Team Depot. See
improve more than 48,000 veteran homes Page 106.
and facilities since 2011.

From Veterans Day through the holiday


season, The Home Depot Foundation puts
good into action through our Operation
Surprise campaign. In 2020, Operation
Surprise:

• Celebrated the service of veterans, first


responders, health care workers and
teachers

• Provided additional cash grants to


nonprofits serving our communities to
help them meet increased demand during
DID YOU KNOW the pandemic
In 2020, The Homer Fund
• Addressed unique housing challenges CHECK IT OUT
granted more than
many veterans faced in 2020 by providing After an explosion took
$1 million to support a month of mortgage or rental payment Brandon Adam’s legs during
associates affected by for 500 veterans a 2007 mission in Iraq, the
natural disasters. Learn Army veteran needed a house
more on Page 46. suited for his needs. Discover
Throughout 2020, the Foundation’s how Brandon and his family
traditional support for improving the lives are benefiting from a new,
and homes of veterans stayed constant, mortgage-free smart home built
and we celebrated progress. For example, for independence.
we marked the completion of a multiyear
project with nonprofit partner Tunnel
to Towers Foundation that allowed
disabled veteran Brandon Adam to regain
independence at home.

104 The Home Depot 2021 ESG Report


In 2020, the Foundation donated
over $320,000 to Hurricane Laura
response, including partnering with
Team Depot and World Central
Kitchen to feed more than 1,000
people In Lake Charles, Louisiana,
where a Home Depot parking lot
became a meal distribution center.

Several K-12 schools offering


Foundation-backed trades training
courses adapted classrooms for safer
instruction amid the pandemic.

Trades Training
To help address the skilled labor gap, the
Foundation is committed to helping train
20,000 tradespeople to fill the industry
pipeline by 2028, supporting this mission
with a $50 million pledge. The Foundation’s
trades-focused partnerships have introduced
more than 15,000 people to the skilled
trades and helped certify more than 5,000
participants through trades training programs
since 2018.

Military Program: In 2018, the Foundation


began its trades training program in
partnership with Home Builders Institute PathtoPro.com launched in July 2021
(HBI) on one U.S. military base. By the end and serves as a hub for training, licensing
of 2020, the training was available on 10 requirements, open jobs in the trades
bases — U.S. Army, Navy and Marine Corps. and connecting tradespeople with Pro CHECK IT OUT
(Learn about The Home Depot’s support for customers.
The Home Depot’s corporate
military affiliated associates on Page 41.) response to disasters is rooted
Academy Model: In partnership with
in what we’ve learned since
Youth Program: In 2019, the Foundation Colorado Home Building Academy,
1992, when Hurricane Andrew
funded HBI and Construction Education the Foundation is funding tuition-free
devastated South Florida.
Foundation of Georgia (CEFGA) trades education in Denver. This pilot program,
We’re proud of our associates
training programs in K-12 schools. The launched in 2020, aims to serve about
whose hurricane know-how
schools receive support from local Home 1,000 students a year; we expect it to
helps communities prepare
Depot stores, which provide tools and expand to other cities in 2021.
for and recover from storms.
supplies. In 2020, HBI and CEFGA launched Meet a few of these orange-
online courses and refined the curriculum to Scholarships: The Foundation is funding a
aproned experts.
enable remote learning. $250,000 Path to Pro scholarship program
for high school seniors and graduates
Path to Pro: In 2020, the Foundation and entering or enrolled in building construction
The Home Depot launched the Path to Pro programs. The scholarships will be
program to encompass all skilled trades awarded by the Foundation’s nonprofit
training initiatives, including the Foundation’s partner SkillPointe Foundation.
military, high school and academy programs.

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TEAM DEPOT
Our powerful associate volunteer After Category 4 Hurricane Laura
force pivoted in 2020 to safely support made landfall in southwest Louisiana in
Together with The Home
communities in need during the pandemic. September, associates came together —
Depot Foundation,
With our regular Team Depot projects while keeping their distance — to assemble
Team Depot improves on hiatus, associates organized socially more than 1,000 disaster relief kits and help
the homes and lives distanced disaster kit assembly lines, turn a Home Depot parking lot into a pop-
of veterans and helps curbside donation queues and other up meal distribution center. (Learn more on
communities affected by COVID-aware ways to keep giving back. Page 108.)
natural disasters. We assisted communities with some of the
tough challenges of 2020, for example by While the pandemic limited certain
assembling meal kits for hunger relief and elements of volunteerism, our associates’
donating products to essential workers. commitment to serving communities was
unwavering. In establishing new strategies
Many of the communities we serve felt the for safe volunteerism, Team Depot
impact of COVID-19 and natural disasters. facilitated more than 3,200 grants to help
In April 2020, a series of tornadoes swept our communities in 2020: a 100% increase
the Southeast. Associates organized 6-feet- year over year.
apart assembly lines and filled Homer
buckets with much-needed supplies, Some of these grants were distributed
including water, work gloves, sanitization during The Home Depot’s annual Operation
products, flashlights and more. Surprise service campaign. In November
and December, nearly 2,500 Foundation-
The same assembly system that worked funded grants totaling more than $3 million
for spring tornadoes allowed us to do our were delivered by Team Depot to nonprofits
part during an extreme Atlantic hurricane nationwide. We also thanked veterans, first
season that brought 30 named storms, the responders, health care workers, teachers
most on record. In July, Hurricane Hanna and nonprofit organizations for their service
made landfall in Corpus Christi, Texas, with surprise gifts delivered at a distance.
generating strong winds and heavy rainfall
that caused damage, flooding and power
outages in communities across the Rio
Grande Valley. Associate volunteers formed
socially distanced assembly lines and filled
400 buckets to help people in need in the
community.

CHECK IT OUT
Get to know Miami-based
MET associate Sirena Wynn,
who has been volunteering
with Team Depot since she was
More than

2,000 associates
hired seven years ago. “It’s not
just that she gives back, it’s
how she gives back,” explains
her store manager. “Sirena
brings energy and enthusiasm
to each project.” at all levels of the company led Team Depot activities as
community captains in 2020. Meet a captain on Page 108.

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PUTTING GOOD
INTO ACTION
Louisiana native Tracy Jefferson knows a thing That was only one of the ways Tracy and her
or two about hurricanes. And what it takes to fellow associates gave back in 2020. They
recover from them. also helped local community centers with
COVID-19 response, assembled disaster
“I’m born and raised in New Orleans. I know relief kits, organized merchandise donations
the area,” she says. So, Tracy — a Team Depot for people in need and more.
district community captain and manager of
our Harahan, Louisiana, store — was quick “Really what inspires me to do all the work
to rally our associate volunteer force to help that I do is my kids,” Tracy says. “I want
communities pummeled by Hurricane Laura. them to see that I make time for all needs
— not just my own, not just theirs. For me,
After the Category 4 storm made landfall in this opportunity is about way more than
September 2020, Tracy and other associates me. It’s about the people who help me get
traveled 200 miles across south Louisiana to this done.
Lake Charles, where thousands of people were
left without power — or easy access to food. “I love what I do. I love working with my
associates. I love helping customers. I love
Our volunteers got to work in the parking lot volunteering in the community. I can’t
of a Lake Charles Home Depot store that had see myself working anywhere else but The
converted its parking lot to a pop-up meal Home Depot,” she says. “We put good into
distribution center. In partnership with World action.”
Central Kitchen, and backed by funds from
The Home Depot Foundation, our orange-
blooded associates helped serve more than
1,000 meals to people whose homes and lives
had been upended by the hurricane.

Find out more about how our Team Depot


associate volunteers do their part to serve
our communities on Page 106.

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“I love what I do. I love
working with my associates.
I love helping customers.
I love volunteering in the
community. I can’t see
myself working anywhere
else.”

– Tracy Jefferson, Store Manager and


Team Depot Captain

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MASK MISSION
SPOTLIGHT

As hospitals and first responders struggled to get crucial supplies, a small, cross-functional Home Depot team
orchestrated the donation of personal protective equipment to health care workers battling COVID-19.

I
n March 2020, The Home Depot
accepted a mission to get
in-demand N95 masks to front-
line health care workers across
the United States. We ultimately donated 3.4
million masks to more than 250 hospitals
and health care facilities, drawing on our
associates’ ingenuity, expertise, strong
relationships and orange-blooded sheer will
to make something that seems impossible
actually happen.

Here’s how it began. In mid-March 2020, as


the COVID-19 coronavirus began sweeping
the globe and overwhelming hospitals, our
company started prioritizing mask sales to
health care facilities. Then, a few days later,
we ceased selling N95 masks and started
donating them to help protect front-line
nurses, doctors and first responders from
the virus.

That decision was important, bold and


complex. It was up to Jim Core, general
manager of Pro Institutional, to bring
together a Home Depot team that could relations team (see Page 126) were
overcome the challenges. When Jim — who working with The Home Depot Foundation
On April 2, 2020, the head of
is based in Charlotte, North Carolina — got to field PPE requests from officials,
businesspeople and community leaders nursing at Whittier Hospital
the assignment, he knew whom to call first.
around the country. They already had Medical Center in Whittier,
identified opportunities to donate more California, reached out to The
He phoned Monica Green-Jackson in
than a million masks to hospitals and Home Depot for help with
Tulsa, Oklahoma. Monica, who manages
Pro Institutional sales support, is an first responders. “Local officials saw us PPE. Eleven days later, 10,000
organizational wonder and a wizard with as a community resource during COVID, donated N95 masks arrived.
a spreadsheet. She’s also been with The just like we are during natural disasters,”
Home Depot for over 30 years, and Jim was Sarah says.
certain her company knowledge and rapport
with co-workers would be invaluable as the Sarah suggested Heather Tenney bring
team streamlined logistics around mask her supply chain channel management
procurement and distribution. expertise to the team. Heather recruited
George Schultz, a global sourcing team DID YOU KNOW
product development merchant who In 2020, we contributed
has strong relationships with overseas over $50 million in funds
Community resource during COVID suppliers that make N95 masks. Both
and supplies to support
Next, Jim reached out to Sarah McDonald, Heather and George are based in Atlanta.
community needs during
who helps manage relationships with
elected officials in Washington, D.C., and The quintet, supported by dozens of COVID-19.
in state and local governments across the associates across the company, did a lot
U.S. Sarah and others on our government of improvisation and some reinvention.

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“HAVING SUFFICIENT PPE IS CRITICAL TO KEEPING
OREGON’S FRONT-LINE WORKERS SAFE AND
HEALTHY. THANK YOU, HOME DEPOT.”
— Oregon Gov. Kate Brown

Requests for masks were coming in from of masks to health care facilities and
everywhere. Stores were hearing from select Pro customers in May 2020, we
local hospitals. Veterans hospitals and had donated millions of N95 masks
health care-related nonprofits were asking nationwide.
the Foundation for help. Sarah and her
government relations co-workers’ phones “It was a lot of work, but it didn’t seem
were ringing nonstop. At one point, Jim like work,” Jim recalls. “Protecting our
was receiving an email every five minutes health care workers and first responders
from someone asking for masks. was paramount. In some small way we
were helping save lives.”

Leveraging relationships and scale What Jim, Monica, Sarah, Heather and
George were able to do together has
Monica recorded all of the requests, and fundamentally changed Jim’s outlook
the team used prioritization software on work. “I know we can execute with Our company
customized by our IT team to rank
orders by urgency. COVID hot spots got
greater speed and transparency. I
better understand the power of cross- donated nearly
the most attention. The mask donation
team leveraged strong relationships
with suppliers and the power and scale
functional collaboration to get things
done,” he says. “It’s inspiring.” 3.4 million
N95 masks to help
of The Home Depot to keep masks front-line health care
flowing to health care workers. By the
workers nationwide
time our company resumed limited sales

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UNITED NATIONS SUSTAINABLE


DEVELOPMENT GOALS
The U.N. Sustainable Development Goals (SDGs) call for action to end extreme poverty, fight inequality and injustice and
protect our planet. The plan, outlined in 2015, focuses on 17 areas in which nations, governments, businesses and citizens can
work to achieve measurable results by 2030. The Home Depot shares many of the same goals, which are articulated in our
core values. Eleven SDGs align with our sphere of influence.

Good Health and Well-Being Clean Water and Sanitation


• Our company spent approximately $2 billion • In U.S. stores, all bathroom vanity faucets and
on enhanced pay and benefits in fiscal year toilets for sale bear the U.S. EPA’s WaterSense
2020 to ease associates’ challenges during the label. Our store-merchandised showerheads are
pandemic. (Page 42) more efficient than the WaterSense standard.
(Page 83)
• We offer a range of healthy-life benefits at no
cost to associates. (Page 40) • We estimate that our customers saved over 60
billion gallons of water in 2020 by properly using
• The Home Depot’s Eco Options/Eco Actions
our water-saving products. (Page 83)
program identifies environmentally preferred
products. (Page 70) • Smart irrigation systems in 443 U.S. stores in
2020 saved approximately 30% of the water
used per site, compared to traditional systems.
(Page 58)
Gender Equality
• We strive for a fair workplace that removes
bias and provides women and associates from
underrepresented minority groups access to Affordable and Clean Energy
resources they need to succeed at work. • We’ve pledged to have 100% renewable
(Page 24) electricity for all Home Depot facilities
• Our Women’s Link associate resource group worldwide by 2030. (Page 58)
promotes professional development for women • At the end of fiscal year 2020, we were
associates at our Store Support Center. operating rooftop solar farms atop 71
(Page 35) U.S. stores and leveraging fuel cell-generated
• We partner with the Women’s Business power at 203 U.S. stores.
Enterprise National Council to promote gender (Page 58)
diversity among our suppliers. (Page 100) • We purchase enough wind-generated energy
• We offer paid parental to our eligible associates from a wind farm in Texas to power 120 U.S.
who are mothers and fathers, and associates stores. (Page 58)
who are birth mothers are eligible for an • Our partnership with the EPA’s Energy Star
additional six-week paid maternity benefit. program in 2020 enabled customers to
(Page 42) purchase products capable of reducing their
electricity use by 7.5 billion kilowatt hours,
saving over $1 billion on energy costs.
(Page 82)

112 The Home Depot 2021 ESG Report


Decent Work and Economic Growth Sustainable Cities and Communities
• We employ approximately 500,000 • By the end of fiscal year 2020, The Home Depot
associates internationally, and our supply Foundation had invested over $350 million in
chain has an economic impact on millions veteran causes. (Page 104)
of workers globally. (Page 22)
• The Foundation committed more than $4 million
• Nearly 90% of our store leaders started as in 2020 to disaster response. (Page 104)
hourly associates. (Page 36)
• The Homer Fund granted more than
• We conducted 1,437 factory audits and $1 million to support associates affected
1,575 follow-up visits in fiscal year 2020, by natural disasters in 2020. (Page 104)
focusing on worker health, safety and well-
• In 2020, we sold about $10.41 billion in energy- and
being in our suppliers’ operations.
water-saving products to our customers. (Page 82)
(Page 64)

Responsible Consumption and Production


Industry, Innovation and Infrastructure • In 2020, we achieved our goal to produce
• Investments by The Home Depot or procure 135 megawatts of renewable or
Foundation have introduced more than alternative energy, and we set a new goal of
15,000 people to skilled trades and 335 megawatts by 2025. (Page 58)
certified over 5,000 trade workers since • We challenge our suppliers to offer products with
2018. (Page 104) lowest-possible environmental impact and to
• Our company is rated and recognized by pursue third-party certifications. (Page 86)
third-party organizations for our innovations • Our Chemical Strategy challenges suppliers to
in sustainability and supply chain efficiency. eliminate certain chemicals from the products
(Page 16) we sell. (Page 78)
• We have repeatedly earned the EPA’s
SmartWay Sustained Excellence Award
for improving freight efficiency and Climate Action
contributing to cleaner air throughout our • Across our U.S. stores, we cut electricity use
supply chain. (Page 62) 44% from 2010 to 2020. (Page 56)
• We’ve set a science-based target to reduce
our emissions 2.1% per year to achieve a 40%
Reduced Inequalities reduction by 2030 and a 50% reduction by
2035. (Page 54)
• Adding “equity” to our Diversity, Equity &
Inclusion program in 2020 reflected our • We’ve committed to setting Science Based
desire to promote fairness, remove bias Targets initiative (SBTi) Scope 1, 2 and 3 goals
and ensure all of our associates have by 2023 to reduce emissions in line with Paris
access to the resources they need to Agreement goals. (Page 54)
succeed at work. (Page 24)
• We have a current score of A- from the Carbon
• Since 2017, we have committed over Disclosure Project. (Page 54)
$35 million to community organizations
working to improve social equity.
(Page 98) Life on Land
• We partner with organizations that provide • We support circularity through recycling,
our diverse suppliers with certification repairing and reusing materials to reduce
and education, as well as capital and waste. (Page 74)
networking opportunities. (Page 100) • We’ve pledged to exclude EPS and PVC film
• Our Corporate Governance and Code of from our private-brand packaging by 2023.
Conduct policies detail our commitment (Page 92)
to workplace diversity, equity and • Our Wood Purchasing Policy helps ensure
inclusion. (Page 122) our suppliers and manufacturers support
sustainable forestry. (Page 68)

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INTERNATIONAL
RETAIL
OPERATIONS
RESOURCES

> The Home Depot Canada


> The Home Depot Canada Foundation
> The Home Depot Mexico

114 The Home Depot 2021 ESG Report


“This past year showed us how much we can
overcome when we work together and lead with our
values. When we create not only the best place to
work, but the best place to be, we see that impact
extend to our communities as well.”

— Michael Rowe, President, The Home Depot Canada

“I am incredibly proud of our associates for the many


ways they lived our values by serving our customers
and communities during an unprecedented time.
Our team has demonstrated ongoing flexibility to
effectively operate in this dynamic environment.”

— José A. Rodriguez, President, The Home Depot Mexico

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CANADA
Focus on Our People Operate Sustainably
The Home Depot began We are committed to providing an For seven years in a row, we have earned the
operating in Canada in environment that’s inclusive to all people. ENERGY STAR® Canada Retailer of the Year
1994. Today we operate We combine our individual talents, skills award for making energy-efficient products
182 stores across 10 and experiences to enrich the lives of our available to customers in our Canadian
Canadian provinces. associates, customers and communities. stores and for our sales of these eco-friendly
offerings. Here are four ways we improved
In 2020, we acted on associate feedback sustainability in 2020:
to develop training and engagement
resources that help support people of color
and indigenous people in our workforce 1
and communities.
We collected 219,500 pounds of household
electronics, power tool, cellphone and other
The Home Depot was ranked one of
rechargeable batteries for responsible recycling
Canada’s best diversity employers in
via our customer take-back program, despite
2020 — for the 12th consecutive year.
disruptions in collections caused by the pandemic.

34,000+ 2
associates To avoid waste going to landfills and to assist
wore the orange apron in Canada in 2020 people in need, we donated over CA$9 million
in slightly damaged or unsold products to
Habitat for Humanity.

25,000+ 3
associates
participated in unconscious By the end of 2020, we had completed LED
bias training in 2020 retrofits in 163 Canadian stores, significantly
DID YOU KNOW decreasing electricity consumption. Our stores
The Home Depot Canada in Canada have decreased electricity use 43%

4
is committed to the since 2010.
sustainable product and
operations goals that associate resource groups 4
drive progress in our U.S. represent and support our ethnically
operations. Learn more diverse, disabled, LGBTQ and women We recycled over 13,700 metric tons of cardboard
about our goals on Page 12. associates in Canada from our stores and distribution centers.

RECOGNITION

7th Consecutive Year

116 The Home Depot 2021 ESG Report


Strengthen Our Communities • Canadian Alliance to End
Homelessness (Calgary, AB)
The Home Depot Canada Foundation has
committed CA$36.5 million of our pledge to • Canadian Observatory on
invest CA$50 million by 2022 to prevent and Homelessness (Toronto, ON)
end youth homelessness in Canada. Here • Choices for Youth (St. John’s,
are some results of this commitment in 2020: NFLD)
• Provided CA$2.9 million to 14 partner • Covenant House Vancouver
organizations across Canada for life (Vancouver, BC)
skills training, job-readiness initiatives, • Dans la rue (Montreal, QC)
intervention and counseling programs
and shelter renovations • Egale (Toronto, ON)

• Committed CA$2.7 million to COVID-19 • Eva’s Initiatives (Toronto, ON)


relief, allowing 77% of partner • Mission Bon Accueil (Montreal, QC)
organizations to fill emergency funding
• Phoenix Youth Programs
gaps and 58% to pivot to needs of
(Halifax, NS)
homeless youth
• Raising the Roof (Toronto, ON)
• Resource Assistance for Youth
These organizations are among our national
(Winnipeg, MB)
and regional partners in Canada:
• Youth Empowerment and Support
• 360°kids Support Services Services (Edmonton, AB)
(Markham, ON)
• Youth Services Bureau
• A Way Home Canada (Toronto, ON) (Ottawa, ON)
• Boys and Girls Clubs of Calgary • Youth Without Shelter
(Calgary, AB) (Etobicoke, ON)

DID YOU KNOW


Our 2020 customer-
focused Orange Door
campaign raised CA$1.2
million in support of 125
partner organizations.

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MEXICO
Focus on Our People Operate Sustainably
The Home Depot began We believe The Home Depot’s We found innovative ways to add sustainable
operating in Mexico in entrepreneurial spirit is enriched by practices to our processes in 2020.
2001. Today, 127 stores the diversity, talent and ideas of our
across all 32 states associates, and we strive to create a
employ over 18,000 healthy and stable work environment 1
associates. for all.
We opened our first Mexican store with LEED
V4 certification, which evaluates a building’s

28 million impact on the local community, human health


and the planet.
pesos (US$1.4 million)
was spent on personal protective
equipment and other measures to help 2
protect associates from COVID-19
We stopped providing plastic bags in 80% of
our Mexican stores.

770,000+ 3
hours
of career training courses were We created a Sustainability Strategy and
completed by associates renewed our Materiality Assessment for
Mexican operations.

1,290
associates
received Orange Fund grants, more than
a tenfold increase from 2019

84
scholarships
were awarded to children of associates

Taking care of people in our workplace and our


communities was a top priority for The Home Depot’s
Mexican operations in 2020.

118 The Home Depot 2021 ESG Report


RECOGNITION
In 2020, living our values enabled
us to be recognized as a corporate
social responsibility leader by
several organizations

Strengthen Our Communities


Teamwork by our company, associates, suppliers, customers and nonprofit
partners helped get resources to people in need across Mexico in 2020.

Responsible business practices,


14th consecutive year
Our company donated Our suppliers donated

43 million+ 3.6 million


pesos (US$2.2 million) pesos (US$181,000)
in merchandise to nonprofit to nonprofits helping people
organizations suffering from the challenges of
COVID; 21 suppliers participated

Labor equality and


Our customers donated nondiscrimination

10 million+
pesos (US$503,000)
during our Round Up fundraising
drives for charitable causes; nearly
half of the funds went toward
COVID tests and ventilators
Inclusive business practices

Family-supportive workplace

Workplace supportive of
disabled employees

LGBT-supportive workplace

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OUR
BUSINESS
RESOURCES

> Code of Conduct > 2020 Annual Report


> Associate AwareLine > Political Activity and Government
Relations Policy
> Supplier AlertLine
> Annual Corporate Political
> Corporate Governance Contributions Report
> Board of Directors > Annual Trade Association Report
> 2021 Proxy Statement > Federal Election Commission

120 The Home Depot 2021 ESG Report


“We altered marketing plans, social media, product
flow, product selection and space allocation to
protect our people and our communities.”
— Ted Decker, President and Chief Operating Officer

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CODE OF CONDUCT
Our Business Code of Conduct and Ethics We empower associates to speak up when
provides straightforward information about our ethical standards are not being met.
Doing the right thing is
The Home Depot’s operating principles We encourage them to voice concerns,
embedded in our culture. and offers tools to help associates make express doubts, discuss problems and ask
That applies to how we decisions that align with our ethical and legal questions. In addition to sharing concerns
serve customers, give obligations. The code applies to associates with any member of their management
back to communities, worldwide, and the company expects team or a human resources partner,
support our people and them to comply with the code and with all associates can report ethical or legal
conduct our business. applicable laws and regulations in countries concerns to our Associate AwareLine, a
in which we do business. In particular, the 24/7 hotline. Reports can be made via
code outlines The Home Depot’s ethical and thdawareline.com or through a live operator
legal standards in these areas: available in local languages. Associates
may remain anonymous when reporting
concerns. Reports are handled using a
• Safety case management system. We have a
longstanding policy that prohibits retaliation
• Labor and employment
for making a report.
• Conflicts of interest
• Antitrust and fair competition
Associate AwareLine
• Confidentiality, privacy and information
1-800-286-4909
protection
• Protecting the company’s assets and
We also provide ways for suppliers, vendors,
intellectual property
service providers and their workers to
• Insider trading report concerns when they think our Home
Depot values or compliance with the law
• Financial integrity and reporting
may be compromised. Workers in countries
• Records retention from which we source goods may submit
anonymous reports via thdsupplieralertline.
• Environmental responsibility
com. In addition, our Supplier AlertLine is
• Foreign Corrupt Practices Act (FCPA) answered by a live operator 24/7 in these
and anti-bribery compliance countries:

• Political activity

Supplier AlertLine
U.S. and Canada: 1-800-435-3152
Mexico: 001-888-765-8153
China: 86-400-880-1045
India: (Access Code) 000-117
CHECK IT OUT (Dial) 800-435-3152
Hear Home Depot General Counsel
Vietnam: (Access Code) 1-201-0288 or
Teresa Roseborough describe the legal
team’s role in bringing together different 1-228-0288 (Dial) 800-435-3152
parts of the business to find solutions.

122 The Home Depot 2021 ESG Report


Our Business Code of Conduct and Ethics
helps ensure our everyday decisions align
with our ethical and legal obligations.

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CORPORATE
GOVERNANCE
The Home Depot has a long-standing Our corporate governance policies
We understand our
commitment to strong corporate reflect best practices:
governance, which promotes the long-
responsibility to behave
ethically, to understand
term interests of shareholders, strengthens Shareholder Protections
Board and management accountability,
the impact we have on and helps build public trust in the • Annual election of directors with
people and communities, company. majority voting standard in uncontested
and to fairly consider the director elections
interests of a broad base Our Board of Directors has adopted • Shareholder ability to call special
of stakeholders. policies and processes that foster effective meetings and act by written consent
Board oversight of critical matters such as
• A market standard shareholder right of
strategy, risk management, financial and
proxy access
other controls, compliance, culture and
management succession planning. • Independent Lead Director
• Approximately 92% of directors and
At least once a year, our Board discusses all Board committee members are
our sustainability strategy and activities, independent
including this report.
• Director mandatory retirement age
(age 72)
• No shareholder rights plan, also
Leadership Structure referred to as a “poison pill”
Our Chair and CEO is chosen directly
by the Board, and the Board affirms the
election of our CEO as Chair of the Board Board Engagement and Oversight
annually. Our Lead Director is annually • Annual Board strategy session and
elected by the independent members of review of the company’s strategic plan
the Board. We believe having a combined
chairman and CEO; an independent Lead • Director overboarding policy
Director; and Board committees composed • Store-walk policy for directors
LEARN MORE entirely of independent directors currently (temporarily suspended during the
Our proxy statement provides the best Board leadership COVID-19 pandemic)
offers more details about structure for The Home Depot.
corporate governance and • Board education and orientation
risk management. Go to This structure, together with other program
our Corporate Governance robust corporate governance practices, • Annual Board and committee self-
Overview for additional provides strong independent oversight of evaluations, including individual
information on our corporate management while ensuring clear strategic director interviews
governance practices. alignment throughout the company.
• Management succession policy
set forth in Corporate Governance
Guidelines
• Independent directors meet without
management

124 The Home Depot 2021 ESG Report


Board Committees
Our Board of Directors has established four standing committees, each comprised solely of independent directors and
governed by a written charter that sets forth its purpose, composition, powers, duties and responsibilities.

BOARD OF DIRECTORS

LEADERSHIP DEVELOPMENT NOMINATING & CORPORATE


AUDIT FINANCE & COMPENSATION (LDC) GOVERNANCE (NCG)
COMMITTEE COMMITTEE COMMITTEE COMMITTEE

Board Oversight of Risk


The company has a robust framework designed to identify and ensure proper management of risk, including risk relating
to our ability to operate responsibly and sustainably. The framework that we use to identify and manage risk considers a
number of enterprise-level issues, including competitive environment, brand and reputation, regulatory and compliance, and
security. The framework also considers external and internal factors that could distract from or derail strategic objectives. The
Board oversees risk through this framework, with oversight accomplished by identifying key risks and mapping them to the
appropriate Board committee or to the full Board.

Our Board reviews these key risks and the related framework annually, and the full Board or appropriate Board committees
discuss selected risks in more detail throughout the year, including the COVID-19 pandemic, its related risks and its impact on
our enterprise risk framework. The table below identifies key risk areas overseen by the Board and its committees.

FULL BOARD

• Has primary responsibility for risk oversight, including approval of strategic objectives and defining risk appetite
• Delegates oversight of management of certain risks to Board committees
• Receives regular reports from the committees regarding risk-related matters

AUDIT FINANCE LDC COMMITTEE NCG COMMITTEE

• Overall risk assessment • Long-range strategic • Senior executive • Corporate governance


and management planning compensation
• Director succession
• Financial exposures, • Long-range financial • Senior executive planning and board
statements, controls, outlook and finance- succession planning composition
systems and reporting related risks • Overall risk related to the • Policies on political
• Regulatory and • Capital structure, company’s compensation activity, including
compliance, including including investments policies and practices spending and payments
FCPA/anti-bribery and our and shareholder return to trade associations
• Human capital
whistleblower program principles management • Related-party
• Data protection and • Annual capital plan and transactions
• Non-employee director
cybersecurity key capital investments compensation • Corporate social
• Internal audit and related • Merger and acquisition responsibility and
investigatory matters strategy environmental efforts
• Quality, safety and
responsible sourcing

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GOVERNMENT
RELATIONS
We actively participate, and encourage our • The Home Depot supports trade
associates to participate, in the political associations that advocate on behalf of
The Home Depot
process. Our Political Activity and the business community and retail sector
recognizes that laws at Government Relations Policy provides and reports annually the aggregate dues
the federal, state and the framework for our political activity. We paid to those associations that engage in
local level impact our engage in three key ways: lobbying activities.
business.
• Our Government Relations department In deciding where we want to focus our
protects and expands our company’s advocacy, these are some of our top priorities:
ability to take care of our associates,
customers and shareholders through • Driving sales by ensuring online-only
effective regulatory and legislative marketplaces follow the same rules
action. Our Government Relations team on accountability and transparency as
works to optimize the government’s interconnected retailers
impact on the business through
DID YOU KNOW effective lobbying, relationship building • Supporting our One Supply Chain initiative
For 20 years, our internal and political engagement. by advocating for funding for roads, ports
OrangeVoice.com website and bridges and for laws that allow safer,
• We have a political action committee heavier trucks to reduce loads and our
has helped associates engage (PAC) that connects our salaried environmental footprint
in democracy. In 2020, associates to the political process
about 15,500 associates used and pools their personal contributions • Protecting margins by working to get
the resource to learn about to financially support pro-business laws passed that target sophisticated,
candidates, find polling places candidates who understand issues of organized retail crime rings to reduce theft
and register to vote. importance to The Home Depot and our and support free trade
associates. As a long-standing practice,
we do not contribute to presidential • Taking care of our people by making sure
campaigns or endorse presidential we have a say in laws that could affect
candidates. associate flexibility and career growth

126 The Home Depot 2021 ESG Report


Oversight of Our Political Activity PATH OF THE PAC DOLLAR
Our Government Relations department, led Our political action committee connects salaried
by a vice president who reports to our general associates to the political process and pools their personal
counsel, manages our political activity. The contributions to financially support pro-business candidates
team carefully analyzes our engagement who understand issues of importance to The Home Depot
activities, trade association partnerships and our associates.
and political contributions, keeping in mind
our key priorities and our core values. All of
The Home Depot’s political contributions are
made to promote the interests of the company 1 PREPARE
and without regard for the private political Eligible members choose to join The Home Depot PAC.
preferences of executives or directors. The
Government Relations team is responsible
for ensuring all PAC and corporate political 2 PACKAGE
contributions are made in accordance with All participating associate contributions are pooled.
the law and company policies. The team
$4,174,240 contributed to candidates and their
participates in regular trainings and performs
leadership PACs in the 2019-2020 election cycle
routine reviews to monitor compliance.
14,000+ individual contributors in that election cycle
The Nominating and Corporate Governance
Committee of our Board of Directors
provides additional oversight, conducting 3 QUALITY ASSURANCE
an annual review of our Political Activity and Our Core Values drive all strategic decisions inside
Government Relations Policy, the company’s our company, and we build relationships with elected
political contributions and payments to trade officials who help enable our ability to implement
associations that engage in lobbying activities. those strategies to the benefit of our associates,
customers, shareholders and communities. Here
The Nominating & Corporate Governance are the primary, business-focused criteria the PAC
Committee must approve in advance any considers when deciding which candidates to support:
public advertisement directly or indirectly paid • Service on key committees important to
for by the Company that expressly advocates The Home Depot
the election or defeat of a candidate in which
Home Depot is identified specifically as an • Favorable position on one or more legislative
advocate of such election or defeat. To date, issues that align with The Home Depot’s business
the company has not made any expenditure
objectives
for such electioneering communications, • Service in a current or potential leadership position
and has no present plans to make any such • Location of a Home Depot facility in the
expenditures. candidate’s district
The Home Depot PAC’s finances, governance • Industry support from business and retail
and communications are governed by a organizations
PAC Board. The PAC Board is chaired by
the vice president of Government Relations
and is made up of representatives from each 4 DISTRIBUTE
functional area of the business and each field PAC funds are distributed to candidates and
division to ensure a wide range of experiences their leadership PACs.
and perspectives.

We provide transparency in our actions by 5 CONNECT


publishing annual reports of the company’s We work to build relationships with lawmakers who
political contributions and the aggregate are well positioned to legislate on issues important
dues paid to trade associations that engage to THD and our associates.
in lobbying activities. We list trade associations
to which our company makes yearly payments
of $5,000 or more, and our PAC contributions 6 ASSESS
are publicly available on the Federal Election Legislators make informed decisions on issues
Commission website. affecting our company.

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CORPORATE TAXES
Taxes are a significant component of The • Seeking reasonable interpretations of
Home Depot’s economic contribution to laws where there may be ambiguity
We do the right thing
the countries, states and local communities
for our associates, • Engaging proactively and transparently
in which we operate. Our commitment to
shareholders and with tax authorities, when appropriate, to
our core values informs how we approach
seek clarity, guidance or agreement on
communities by ensuring taxes. Responsible management of The
tax positions
we pay our fair share of Home Depot’s taxes includes:
taxes and manage them
transparently. Alignment with Our Business
Accountability & Governance
Tax governance is overseen by the Audit Our corporate entity structure reflects the
Committee of the Board of Directors. At alignment with our commercial activities
least once a year, company leaders report to ensure that we pay our fair share of
to the Audit Committee regarding our tax commensurate with our business’
approach to managing taxes. Learn more geographical footprint and operations within
about our Corporate Governance structure a jurisdiction. Additionally, we seek and
on Page 124. claim tax incentives that:

• Align with our business


Risk Management • Are consistent with the statutory or
We identify and manage risks associated regulatory framework
with taxes, including:
• Drive economic development and job
• Legislative uncertainty creation in the communities in which
we operate
• Reputational risk, including that a tax
position taken by the company may not
be consistent with our guiding principles
or may expose the company to negative Stakeholder Engagement
publicity We actively engage with federal, state and
• Scarcity of talented tax professionals to local governments; tax authorities; trade
recruit and hire as associates associations; and other business groups
to advocate for policies that align with our
approach to tax management, including the
ways we:
Compliance
We comply with tax laws in the jurisdictions • Support tax policies that drive a vibrant,
in which we operate, including reporting competitive and growing economy
and paying our taxes in a timely manner by:
• Staff our stores based upon revenue
generated within the stores; thus, a
• Employing appropriate resources and
strong economy that includes balanced
controls to ensure that our tax reporting
taxation policy drives revenue that
is accurate and complete
supports employment
• Supporting audits of our tax reporting
and control environment by our internal
control team and independent, third-
party auditors, as required for publicly
traded companies

128 The Home Depot 2021 ESG Report


THE HOME DEPOT’S
2020 TAX PAYMENTS

Other Income
Federal State Income & Business Property Payroll
Income Tax Tax Taxes* Taxes Sales Taxes** Taxes***
$3.25 billion $879 million $1.20 billion $557 million $8.30 billion $3.95 billion

TOTAL: $18.14 billion

BY THE The Home Depot paid approximately We paid approximately

NUMBERS
1% of the total
net corporate income taxes collected
2.5% of the total
net corporate income taxes collected
by the U.S. government in 2020 by California in 2020

Our company files We own, lease and pay property taxes on

7,500+ 3,000+ buildings


sales tax returns worldwide, including stores, distribution
every year centers and offices

* Taxes paid by The Home Depot in Canada, Mexico, China, Puerto Rico, Guam and the U.S. Virgin Islands; franchise taxes paid to U.S. states;
and duties paid to the U.S., Canada and Mexico on imported products
** Includes all sales taxes and use taxes
*** Unemployment taxes; Federal Insurance Contributions Act (FICA) contributions; and federal and state income taxes withheld on behalf of
THD associates

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DATA SECURITY &


PRIVACY
The Home Depot Privacy and Security Governance, Risk & Compliance
Statement provides information about how
We value and respect the • The Home Depot has a Data Security
we collect, use and share information we
privacy of our customers, collect from our customers and visitors. and Privacy Governance Committee,
associates, service composed of a cross-functional group
providers and business We discuss the ways we use the of senior leadership, that oversees
partners. Our approach to information we collect, and how customers the security and privacy of customer,
data security enables us to can find out more about the personal associate and business data.
drive a collectively secure information we collect about them, on the
culture. Exercise My Privacy Rights page of our • Information security and privacy policies
corporate website. are in place and periodically reviewed.
Our policies are informed by recent
We leverage the National Institute regulatory changes.
of Standards and Technology (NIST)
Cybersecurity Framework as the • Targeted audits and penetration tests
foundation of our cybersecurity program. are conducted throughout the year by
As cybersecurity attackers become internal and external entities.
increasingly more sophisticated, our
program prioritizes threat mitigation, while • We are compliant with the Payment Card
focusing on maintaining the integrity and Industry Data Security Standard.
resiliency of our systems. We invest in
our ability to identify, protect and detect
• We engage an industry-leading third
security risks within our environment.
party to independently evaluate our
information security maturity on an
In the event that we identify a security
annual basis.
issue, we have defined procedures
to respond and recover as quickly as
possible. Overseeing our efforts on a day-
to-day basis is our Information Technology Data Protection
Security team, led by an officer-level chief
• The Home Depot has established
information security officer. Our approach
data classification and retention
enables us to drive a collectively secure
policies focused on limiting the risk of
culture.
unauthorized exposure of customer,
associate and business data.

• Data protection strategies are in place


and focused on data devaluation and
data access monitoring.

• Sensitive data attributes are classified


into domains with defined security
expectations for data-at-rest and data-
in-transit.

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Vendor Security
• The Home Depot’s vendor risk
management program works to classify
service provider or business partner risk
based on several factors, including, but
not limited to, data type accessed and/
or retained.

• Service provider or business partner


security risk assessments are conducted
for targeted relationships.

• Where applicable, service providers


and business partners are contractually
obligated to protect restricted data
provided by or received from The Home
Depot.

Data Security & Privacy Awareness


• Data security and privacy training and
awareness are provided to all associates
on an annual basis, and additional
customized, role-based training is
provided to targeted internal audiences.

DID YOU KNOW


Our Privacy and Security Statement extends
to personal information we receive from
business partners and other third parties.

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REPORTING
FRAMEWORK
RESOURCES

> 2021 Proxy Statement > Nominating & Corporate Governance


Committee (NCGC) Charter
> Form 10-K – 2020 Annual Report
on SEC Form 10-K > Leadership Development & Compensation
Committee (LDCC) Charter
> Global Reporting Initiative (GRI)
> Corporate Governance Guidelines
> Sustainability Accounting Standards
Board (SASB) > Business Code of Conduct & Ethics
> Task Force on Climate-Related > Board Candidate Policy
Financial Disclosures (TCFD)
> Political Activity Policy
> Carbon Disclosure Project
> Responsible Sourcing Report
> Corporate Website

132 The Home Depot 2021 ESG Report


“We know that when we invest in running a
responsible, sustainable company, we make
our business stronger, more flexible and
more resilient.”

– Craig Menear, Chairman and CEO

2021 ESG Report The Home Depot 133


Table of Focus on Operate Strengthen International Our Reporting
Overview
Contents Our People Sustainably Our Communities Retail Operations Business Framework

GRI STANDARDS
The Global Reporting Initiative (GRI) is an international independent standards organization that helps business, governments
and other organizations understand and communicate their impacts on various issues. We have applied the GRI Sustainability
Reporting Standards as an identification and cross-reference tool to make meaningful data accessible to our stakeholders. The
following charts provide a cross-reference location guide to our reports.

GRI STANDARD DESCRIPTION ANSWER/LOCATION CROSS REFERENCE

GENERAL DISCLOSURES

GRI 102: General 102-1 Name of the organization The Home Depot, Inc.
Disclosures
Activities, brands, products and
102-2 Form 10-K pgs. 1-10
services

102-3 Location of headquarters Atlanta, Georgia, USA


Form 10-K pgs. 1-10, 22-23, Corporate Website –
102-4 Location of operations
About Us
The Home Depot is a publicly traded company,
102-5 Ownership & legal form incorporated in Delaware, USA, and listed on the NYSE
under the ticker symbol “HD,” Form 10-K pg. 1
ORGANIZATIONAL PROFILE

Form 10-K pgs. 1-10, 22-23, Corporate Website –


102-6 Markets served
About Us

102-7 Scale of the organization Form 10-K pgs. 1-10, 22-23

Information on employees and other Diversity, Equity & Inclusion, EEO-1 Report, Form 10-K
102-8
workers pgs. 5-8
Supply Chain, Form 10-K pgs. 1-10, Responsible
102-9 Supply chain
Sourcing Report
Significant changes to the organization
102-10 Supply Chain, Form 10-K pgs. 1-10
and its supply chain

102-11 Precautionary Principle or approach Corporate Governance, Proxy Statement pgs. 3-6
2020 Ratings and Recognition, Carbon Footprint, Supply
102-12 External initiatives Chain, U.N. Sustainable Development Goals, Corporate
Website – Responsibility, Responsible Sourcing Report
Carbon Footprint, Supply Chain, Responsible Chemistry,
Water-Saving Products, Strengthen Our Communities,
102-13 Membership of associations
International Retail Operations, Responsible Sourcing
Report
STRATEGY

GRI 102: General 102-14 Statement from senior decision-maker CEO Letter
Disclosures
102-15 Key impacts, risks and opportunities Materiality Touchpoints, Home Depot Goals

GRI 102: General Diversity, Equity & Inclusion, Code of Conduct,


Disclosures Values, principles, standards and norms Corporate Governance, Business Code of Conduct
102-16
INTEGRITY

of behavior and Ethics, Corporate Governance Guidelines, Proxy


ETHICS &

Statement pg. 3-4, Responsible Sourcing Report

Sourcing Responsibly, Code of Conduct, Business


Mechanisms for advice and concerns
102-17 Code of Conduct and Ethics, Responsible Sourcing
about ethics
Report

134 The Home Depot 2021 ESG Report


GRI STANDARD DESCRIPTION ANSWER/LOCATION CROSS REFERENCE

Corporate Governance, Proxy Statement pgs. 1-21,


GRI 102: General
Corporate Website – Investor Relations > Corporate
Disclosures 102-18 Governance structure
Governance, NCGC Charter, Corporate Governance
Guidelines
Engaging Stakeholders & Setting Priorities, Ethical
102-19 Delegating authority
Sourcing, Corporate Governance

Engaging Stakeholders & Setting Priorities, Ethical


Executive-level responsibility for economic,
102-20 Sourcing, Corporate Governance, Proxy Statement pgs.
environmental and social topics
2-7, NCGC Charter, Corporate Governance Guidelines

Consulting stakeholders on economic, Engaging Stakeholders & Setting Priorities, Materiality


102-21
environmental, and social topics Touchpoints, Proxy Statement pgs. 7-8
Corporate Governance, Proxy Statement pgs. 1-21,
Composition of the highest governance
102-22 Corporate Website – Investor Relations > Corporate
body and its committees
Governance
102-23 Chair of the highest governance body Corporate Governance, Proxy Statement pgs. 1-21

Corporate Governance, Proxy Statement pgs. 1-21,


Nominating and selecting the highest
102-24 Policy on Consideration and Evaluation of Board
governance body
Candidates, Corporate Governance Guidelines

Proxy Statement pgs. 9-11, Business Code of Conduct


102-25 Conflicts of Interest
and Ethics, Corporate Governance Guidelines
Engaging Stakeholders & Setting Priorities, Ethical
Role of highest governance body in Sourcing, Corporate Governance, Proxy Statement
102-26
setting purpose, values and strategy Letter to Shareholders and pgs. 1-8, NCGC Charter,
GOVERNANCE

Corporate Governance Guidelines


Collective knowledge of highest Engaging Stakeholders & Setting Priorities,
102-27
governance body Corporate Governance, Proxy Statement pgs. 1-21
Evaluating the highest governance Corporate Governance, Proxy Statement Letter to
102-28
body’s performance Shareholders and pgs. 1-15, NCGC Charter
Engaging Stakeholders & Setting Priorities, Materiality
Assessment Framework, Materiality Touchpoints,
Identifying and managing economic,
102-29 Corporate Governance, Proxy Statement pgs. 1-15,
environmental and social impacts
Corporate Website – Investor Relations > Corporate
Governance, Corporate Governance Guidelines

Corporate Governance, Proxy Statement pgs. 2-7,


Effectiveness of risk management
102-30 Corporate Website – Investor Relations > Corporate
process
Governance, Corporate Governance Guidelines

Engaging Stakeholders & Setting Priorities, Materiality


Touchpoints, Home Depot Goals, Corporate
Review of economic, environmental
102-31 Governance, Proxy Statement pgs. 1-9, Corporate
and social topics
Website – Investor Relations > Corporate Governance,
Corporate Governance Guidelines

Engaging Stakeholders & Setting Priorities, Corporate


Highest governance body’s role in Governance, Proxy Statement pgs. 6-8, Corporate
102-32
sustainability reporting Website – Investor Relations > Corporate Governance,
NCGC Charter

Engaging Stakeholders & Setting Priorities, Code of


Conduct, Corporate Governance, Proxy Statement pgs.
102-33 Communicating critical concerns
1-15, Business Code of Conduct and Ethics, Corporate
Governance Guidelines

Proxy Statement pgs. 32-64, Corporate Governance


102-35 Remuneration policies
Guidelines, LDCC Charter

2021 ESG Report The Home Depot 135


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Overview
Contents Our People Sustainably Our Communities Retail Operations Business Framework

GRI STANDARD DESCRIPTION ANSWER/LOCATION CROSS REFERENCE

Proxy Statement pgs. 32-64, Corporate Governance


102-36 Process for determining remuneration
Guidelines, LDCC Charter
102-37 Stakeholders’ involvement in remuneration Proxy Statement pgs. 25, 36, 39

102-38 Annual total compensation ratio Proxy Statement pg. 60-61

Engaging Stakeholders & Setting Priorities, Materiality


STAKEHOLDER ENGAGEMENT

GRI 102: General 102-40 List of stakeholder groups


Disclosures Touchpoints

102-41 Collective bargaining agreements Form 10-K pgs. 5-8


Engaging Stakeholders & Setting Priorities, Materiality
102-42 Identifying and selecting stakeholders
Touchpoints
Engaging Stakeholders & Setting Priorities, Materiality
102-43 Approach to stakeholder engagement Assessment Framework, Proxy Statement Letter to
Shareholders and pg. 7-8
Engaging Stakeholders & Setting Priorities, Materiality
102-44 Key topics and concerns raised Touchpoints, Proxy Statement Letter to Shareholders
and pg. 7-8
Entities included in the consolidated
GRI 102: General 102-45 Form 10-K
financial statements
Disclosures
CEO Letter, Engaging Stakeholders & Setting Priorities,
Defining report content and topic
102-46 Materiality Assessment Framework, Materiality
Boundaries
Touchpoints
CEO Letter, Engaging Stakeholders & Setting Priorities,
102-47 List of material topics Materiality Assessment Framework, Materiality
Touchpoints, Home Depot Goals
Associate Safety; We also revised certain of our annual
GHG emissions, energy use and intensity results to
correspond to changes in calculations for the 2020
REPORTING PRACTICES

102-48 Restatements of information


CDP Report related to increases in our scope and to
our acquisitions, and to correct a typographical error in
our 2020 Responsibility Report.
Data from 2018 reflects the calendar year. Unless
otherwise indicated, data for 2019 and 2020 reflects
102-49 Changes in reporting
the fiscal year. We also expanded our Scope 3
boundaries to include more of our supply chain.
Unless otherwise indicated, February 3, 2020 to
102-50 Reporting period
January 31, 2021 (Fiscal Year 2020)
102-51 Date of most recent report 2020 Responsibility Report July 2020
102-52 Reporting cycle Annual
Contact point for questions regarding Ron Jarvis, Chief Sustainability Officer
102-53
the report ron_jarvis@homedepot.com
Claims of reporting in accordance with This report references the 2016, 2018 and 2019 GRI
102-54
the GRI Standards Standards.
102-55 GRI content index This document

102-56 External assurance N/A

ECONOMIC
Explanation of the material topic and its
GRI 103: 103-1 Materiality Touchpoints
Boundary
Management
Approach The management approach and its
103-2 Materiality Assessment Framework
components
103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency

136 The Home Depot 2021 ESG Report


GRI STANDARD DESCRIPTION ANSWER/LOCATION CROSS REFERENCE

GRI 201: Economic Direct economic value generated and


201-1 CEO Letter, Corporate Taxes
Performance distributed

Financial implications and other risks


201-2 2020 CDP Report
and opportunities due to climate change

Defined benefit plan obligations and Benefits, Form 10-K pg. 67, Form 11-K, Proxy
201-3
other retirement plans Statement pgs. 45,56

GRI 203: Indirect Infrastructure investments and services


203-1 Store Operations, Strengthen Our Communities
Economic Impacts supported
ESG Transparency, Energy-Saving Products, Water-
203-2 Significant indirect economic impacts
Saving Products, Strengthen Our Communities

GRI 205: Communication and training about anti- Ethical Sourcing, Code of Conduct, Business Code of
205-2
Anti-corruption corruption policies and procedures Conduct and Ethics

GRI 207: Tax 207-1 Approach to tax Corporate Taxes

Tax governance, control and risk


207-2 Corporate Taxes
management

Stakeholder engagement and


207-3 Corporate Taxes
management of concerns related to tax

207-4 Country-by-country reporting Corporate Taxes

ENVIRONMENTAL

GRI 103: Explanation of the material topic and


103-1 Materiality Touchpoints
Management its Boundary
Approach
MATERIALS

The management approach and its


103-2 Materiality Assessment Framework
components

103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency

ESG Transparency, Circularity, Sustainable Packaging,


GRI 301: Materials 301-1 Materials used by weight or volume
Paring Down Single-Use Plastics
Explanation of the material topic and
GRI 103: 103-1 Materiality Touchpoints
its Boundary
Management
Approach The management approach and its
103-2 Materiality Assessment Framework
components

103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency

GRI 302: Energy Energy consumption within the 2020 CDP Report, ESG Transparency, Protecting the
302-1
organization Climate, Corporate Website – Responsibility

Energy consumption outside of the


302-2 Carbon Footprint, Supply Chain
ENERGY

organization
2020 CDP Report, ESG Transparency, Corporate
302-3 Energy intensity
Website – Responsibility

2020 CDP Report, CEO Letter, ESG Transparency, FAQ:


Growing Sustainably, Store Operations, Supply Chain,
302-4 Reduction of energy consumption
UN Sustainable Development Goals, International Retail
Operations, Corporate Website – Responsibility

2020 CDP Report, ESG Transparency, FAQ: Growing


Reductions in energy requirements of Sustainably, Store Operations, Energy-Saving Products,
302-5
products and services Residential Solar, Form 10-K pgs. 8-9, Corporate
Website – Responsibility

2021 ESG Report The Home Depot 137


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Overview
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GRI STANDARD DESCRIPTION ANSWER/LOCATION CROSS REFERENCE

GRI 103: Explanation of the material topic and its


103-1 Materiality Touchpoints
Management Boundary
WATER USE AND

Approach The management approach and its


EFFLUENTS

103-2 Materiality Assessment Framework


components

103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency

GRI 303: Water Interactions with water as a shared Water-Saving Products, UN Sustainable Development
303-1
Use and Effluents resource Goals

GRI 103: Explanation of the material topic and its


103-1 Materiality Touchpoints
Management Boundary
Approach The management approach and its
103-2 Materiality Assessment Framework
BIODIVERSITY

components

103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency

GRI 304: Significant Impacts of activities, Greener Products, Sustainable Forestry, Gardening,
304-2
Biodiversity products, and services on Biodiversity Corporate Website – Responsibility

Sustainable Forestry, Gardening, Corporate Website –


304-3 Habitats Protected or Restored
Responsibility

GRI 103: Explanation of the material topic and its


103-1 Materiality Touchpoints
Management Boundary
Approach The management approach and its
103-2 Materiality Assessment Framework
components

103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency

GRI 305: Emissions 2020 CDP Report, ESG Transparency, Protecting the
305-1 Direct (Scope 1) GHG emissions
Climate, Corporate Website – Responsibility
EMISSIONS

Energy indirect (Scope 2) GHG 2020 CDP Report, Protecting the Climate, Corporate
305-2
emissions Website – Responsibility

2020 CDP Report, Protecting the Climate, Corporate


305-3 Other indirect (Scope 3) GHG emissions
Website – Responsibility

2020 CDP Report, ESG Transparency, FAQ: Growing


305-4 GHG emissions intensity Sustainably, Protecting the Climate, Corporate Website
– Responsibility
2020 CDP Report, ESG Transparency, FAQ: Growing
305-5 Reduction of GHG emissions Sustainably, Protecting the Climate, Corporate Website
– Responsibility

GRI 103: Explanation of the material topic and its


103-1 Materiality Touchpoints
EFFLUENTS AND WASTE

Management Boundary
Approach The management approach and its
103-2 Materiality Assessment Framework
components

103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency

ESG Transparency, FAQ: Growing Sustainably,


GRI 306: Effluents
306-2 Waste by type and disposal method Circularity, Waste Management & Recycling, Corporate
and Waste
Website – Responsibility

138 The Home Depot 2021 ESG Report


GRI STANDARD DESCRIPTION ANSWER/LOCATION CROSS REFERENCE

GRI 103: Explanation of the material topic and its


103-1 Materiality Touchpoints
SUPPLIER ENVIRONMENTAL

Management Boundary
Approach
The management approach and its
103-2 Materiality Assessment Framework
ASSESSMENT

components

103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency

GRI 308: Supplier


New suppliers that were screened using Sourcing Responsibly, Responsible Sourcing Report,
Environmental 308-1
environmental criteria Corporate Website – Responsibility
Assessment

SOCIAL
Explanation of the material topic and its
GRI 103: 103-1 Materiality Touchpoints
Boundary
OCCUPATIONAL HEALTH AND SAFETY

Management
Approach The management approach and its
103-2 Materiality Assessment Framework
components

103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency

GRI 403: Hazard identification, risk assessment Materiality Assessment Framework, Materiality
403-2
Occupational and incident investigation Touchpoints, Associate Safety
Health and Safety
Worker training on occupational health
403-5 Learning & Development, Associate Safety
and safety

Benefits, COVID Care Kit Enabled Life-Saving Health


403-6 Promotion of worker health
Check, Associate Safety, Protection by Design

403-9 Work-related injuries Associate Safety

Explanation of the material topic and its


GRI 103: 103-1 Materiality Touchpoints
Boundary
Management
Approach
TRAINING & EDUCATION

The management approach and its


103-2 Materiality Assessment Framework
components

Materiality Assessment Framework, Learning &


103-3 Evaluation of the management approach
Development

GRI 404: Training Average hours of training per year per


404-1 Learning & Development
and Education employee

Diversity, Equity & Inclusion, Learning & Development,


Programs for upgrading employee skills
404-2 Associate Engagement, Benefits, Focusing on Those
and transition assistance programs
Who Serve, The Home Depot Foundation

GRI 103: Explanation of the material topic and its


103-1 Materiality Touchpoints
Management Boundary
DIVERSITY & EQUAL

Approach
OPPORTUNITY

The management approach and its


103-2 Materiality Assessment Framework
components

Materiality Assessment Framework, Diversity, Equity &


103-3 Evaluation of the management approach
Inclusion

GRI 405: Diversity & Diversity of governance bodies and


405-1 Diversity, Equity & Inclusion, Proxy Statement pg. 13-21
Equal Opportunity employees

2021 ESG Report The Home Depot 139


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Overview
Contents Our People Sustainably Our Communities Retail Operations Business Framework

GRI STANDARD DESCRIPTION ANSWER/LOCATION CROSS REFERENCE

GRI 103: Explanation of the material topic and its


103-1 Materiality Touchpoints
COMPULSORY LABOR

Management Boundary
Approach The management approach and its
FORCED OR

103-2 Materiality Assessment Framework


components

103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency

GRI 409: Forced or Operations and suppliers at significant


Ethical Sourcing, Conflict Minerals, Corporate Website –
Compulsory Labor 409-1 risk for incidents of forced or
Responsibility, Responsible Sourcing Report
compulsory labor

GRI 103: Explanation of the material topic and its


103-1 Materiality Touchpoints
LOCAL COMMUNITIES

Management Boundary
Approach
The management approach and its
103-2 Materiality Assessment Framework
components

103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency

GRI 413: Local Operations with local community


Strengthen Our Communities, International Retail
Communities 413-1 engagement, impact assessments, and
Operations
development programs

Explanation of the material topic and its


SUPPLIER SOCIAL ASSESSMENT

GRI 103: 103-1 Materiality Touchpoints


Management Boundary
Approach
The management approach and its
103-2 Materiality Assessment Framework
components

103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency

GRI 414: Supplier New suppliers that were screened using Ethical Sourcing, Conflict Minerals, Corporate Website –
414-1
Social Assessment social criteria Responsibility, Responsible Sourcing Report

Negative social impacts in the supply Ethical Sourcing, Conflict Minerals, Corporate Website –
414-2
chain and actions taken Responsibility, Responsible Sourcing Report

GRI 103: Explanation of the material topic and its


103-1 Materiality Touchpoints
Management Boundary
Approach
The management approach and its
PUBLIC POLICY

103-2 Materiality Assessment Framework


components

103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency

ESG Transparency, Corporate Governance, Government


Relations, Political Activity and Government
GRI 415: Public
415-1 Political contributions Relations Policy, Annual Report of Corporate Political
Policy
Contributions, Annual Report on Trade Association
Memberships

GRI 103: Explanation of the material topic and its


103-1 Materiality Touchpoints
Management Boundary
CUSTOMER HEALTH

Approach
The management approach and its
103-2 Materiality Assessment Framework
& SAFETY

components

103-3 Evaluation of the management approach Materiality Assessment Framework, ESG Transparency

GRI 416: Assessment of the health and safety ESG Transparency, Greener Products, Responsible
Customer Health 416-1 impacts of product and service Chemistry, Energy-Saving Products, Water-Saving
and Safety categories Products, Gardening, Cleaning

140 The Home Depot 2021 ESG Report


SASB DISCLOSURE MATRIX
The Sustainability Accounting Standards Board (SASB) is an independent, standards-setting organization whose mission
is to develop comparable sustainability metrics for public corporations to disclose material, decision-useful information to
investors. We have considered the industry standards (as defined by SASB’s Sustainable Industry Classification System) for
Multiline and Specialty Retailers & Distributors and Building Products & Furnishings, and we have provided below the relevant
data and/or the location of the applicable information in our 2021 ESG Report.

MULTILINE AND SPECIALTY RETAILERS & DISTRIBUTORS


Table 1. Sustainability Disclosure Topics & Accounting Metrics

UNIT OF
ACCOUNTING METRIC CATEGORY CODE DATA RESPONSE REFERENCE
MEASURE

Energy Management in Retail & Distribution

• Total energy consumed in


(1) Total energy consumed, Gigajoules
fiscal 2020 – 23.2M GJ 2021 ESG Report
(2) percentage grid (GJ), CG-MR-
Quantitative • Purchased approximately – Store Operations,
electricity, (3) percentage Percentage 130a.1
561,000 GJ of renewable pgs. 56-59
renewable (%)
energy

Data Security

2021 ESG Report


Details can be found in the
Description of approach to CG-MR- – Data Security &
Discussion Data Security & Privacy
identifying and addressing n/a 230a.1 Privacy, pgs. 130-
and Analysis section of our ESG Report and
data security risks 131; 2021 Proxy
in our 2021 Proxy Statement
Statement, pgs. 5-6

(1) Number of data


breaches, (2) percentage
Number,
involving personally CG-MR- No material breaches in
Quantitative Percentage
identifiable information 230a.2 fiscal 2020
(%)
(PII), (3) number of
customers affected

Workforce Diversity & Inclusion

U.S. Officers:
• Gender: 29% Female
• Underrepresented Minority
Groups 26%
Percentage of gender and U.S. Managers and Above
2021 ESG Report
racial/ethnic group (excluding Officers):
Percentage CG-MR- – Diversity, Equity
representation for (1) Quantitative • Gender: 32% Female
(%) 330a.1 & Inclusion, Page
management and (2) all • Underrepresented Minority
24-33
other employees Groups 35%
U.S. Workforce:
• Gender: 38% Female
• Underrepresented Minority
Groups 47%

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UNIT OF
ACCOUNTING METRIC CATEGORY CODE DATA RESPONSE REFERENCE
MEASURE

Product Sourcing, Packaging & Marketing

Revenue from products 2021 ESG Report


third-party certified to Reporting CG-MR- – Reducing
Quantitative ~$20 billion in 2020
environmental and/or social Currency 410a.1 Environmental
sustainability standards Impact, pgs. 70-95

2021 ESG Report


– Responsible
Discussion of processes to Chemistry, pgs.
Details can be found in the
assess and manage risks Discussion CG-MR- 78-81; Gardening
n/a Responsible Chemistry
and/or hazards associated and Analysis 410a.2 pgs. 84-85; and
section of our ESG Report
with chemicals in products Cleaning, pgs.
86-87

2021 ESG Report


Discussion of strategies to Details can be found in the
Discussion CG-MR- – Sustainable
reduce the environmental n/a Sustainable Packaging section
and Analysis 410a.3 Packaging, pgs.
impact of packaging of our ESG Report
92-95

Table 2. Activity Metrics

UNIT OF
ACTIVITY METRIC CATEGORY CODE DATA RESPONSE REFERENCE
MEASURE

Number of: (1) retail • 2,296 retail locations 2020 Annual Report
CG-MR-
locations and (2) distribution Quantitative Number • >300 distribution centers on SEC Form 10-K
000.A
centers and warehouses pgs. 22-23

• 22.2 million sq. meters


of retail space 2020 Annual Report
Total area of: (1) retail space Square CG-MR-
Quantitative • 7.1 million sq. meters on SEC Form 10-K
and (2) distribution centers meters (m²) 000.B
of warehouse and pgs. 22
distribution centers

142 The Home Depot 2021 ESG Report


BUILDING PRODUCTS & FURNISHINGS
Table 1. Sustainability Disclosure Topics & Accounting Metrics

UNIT OF
ACCOUNTING METRIC CATEGORY CODE DATA RESPONSE REFERENCE
MEASURE

Management of Chemicals in Products

2021 ESG Report –


Discussion of processes to
Details can be found in the Responsible Chemistry,
assess and manage risks Discussion CG-BF-
n/a Responsible Chemistry pgs. 78-81; Gardening
and/or hazards associated and Analysis 250a.1
section of our ESG Report pgs. 84-85; and
with chemicals in products
Cleaning, pgs. 86-87

Product Lifecycle Environmental Impacts

2021 ESG Report –


Details can be found in
Description of efforts to Circularity, pgs. 74-75;
the Circularity, Sustainable
manage product lifecycle Discussion CG-BF- Waste Management
n/a Packaging and Waste
impacts and meet demand and Analysis 410a.1 & Recycling, pgs. 90-
Management & Recycling
for sustainable products 91; and Sustainable
sections of our ESG Report
Packaging, pgs. 92-93

Metric 2021 ESG Report –


(1) Weight of end-of-life
tons (t), Circularity, pgs. 74-75;
material recovered, (2) CG-BF-
Quantitative Percentage ~425,000t Waste Management &
percentage of recovered 410a.2
(%) by Recycling, pgs. 90-91
materials that are recycled
weight

Wood Supply Chain Management

We estimate a significant
majority of our wood
(1) Total weight of wood
product purchases are
fiber materials purchased,
certified by third parties
(2) percentage from third- Metric
such as the Forest 2021 ESG Report –
party certified forestlands, tons (t),
CG-BF- Stewardship Council Sustainable Forestry,
(3) percentage by standard, Quantitative Percentage
430a.1 (FSC), Sustainable Forestry pgs. 68-69; Wood
and (4) percentage certified (%) by
Initiative (SFI), Programme Purchasing Policy
to other wood fiber weight
for the Endorsement of
standards, (5) percentage
Forest Certification (PEFC)
by Standard
or American Tree Farm
System (ATFS).

2021 ESG Report The Home Depot 143


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TCFD FRAMEWORK
The Task Force on Climate-related Financial Disclosures (TCFD) develops voluntary, consistent climate-related financial risk
disclosures for companies to provide information to stakeholders. We have considered the TCFD framework as a tool to make
meaningful data accessible to our stakeholders and have provided below the location of the relevant information in our 2021
ESG Report.

RECOMMENDED 2021 ESG REPORT


ADDITIONAL SOURCES
DISCLOSURE TOPICS Section Page #

Engaging Stakeholders
6
Describe the board’s oversight of climate- and Setting Priorities CDP Report; 2021 Proxy
related risks and opportunities. Statement pgs. 2-7
Corporate Governance 124-125
GOVERNANCE

Engaging Stakeholders
6
and Setting Priorities

Describe management’s role in assessing Materiality Assessment


8-9 CDP Report; 2021 Proxy
and managing climate-related risks and Framework
Statement pgs. 2-7
opportunities.
Goals 12-13

Corporate Governance 124-125

Describe the climate-related risks and Materiality Touchpoints 10


CDP Report; 2021 Proxy
opportunities the organization has identified
Statement pgs. 2-7
over the short, medium and long term. Protecting the Climate 54-63

CEO Letter 4-5

Materiality Touchpoints 10

Describe the impact of climate-related risks


FAQ: Growing
STRATEGY

and opportunities on the organization’s 18-19 CDP Report


Sustainably
businesses, strategy and financial planning.

Protecting the Climate 54-63

Corporate Governance 124-125

Goals 12-13
Describe the potential impact of different
scenarios, including a 2°C scenario, on the Protecting the Climate 54-63
CDP Report
organization’s businesses, strategy and
financial planning. Reducing Environmental
70-95
Impact

144 The Home Depot 2021 ESG Report


RECOMMENDED 2021 ESG REPORT
ADDITIONAL SOURCES
DISCLOSURE TOPICS Section Page #

Engaging Stakeholders
6
and Setting Priorities
Describe the organization’s process for
CDP Report; 2021 Proxy
identifying and assessing climate-related Materiality Assessment
8-9 Statement pgs. 2-7
risks. Framework

Corporate Governance 124-125

Engaging Stakeholders
RISK MANAGEMENT

6
and Setting Priorities

Describe the organization’s processes for Materiality Assessment CDP Report; 2021 Proxy
8-9
managing climate-related risks. Framework Statement pgs. 2-7

Protecting the Climate 54-63

Corporate Governance 124-125

Engaging Stakeholders
6
and Setting Priorities
Describe how processes for identifying,
assessing and managing climate-related CDP Report; 2021 Proxy
risks are integrated into the organization’s Materiality Assessment Statement pgs. 2-7
8-9
overall risk management. Framework

Corporate Governance 124-125

Materiality Assessment
8-9
Framework

Goals 12-13
Disclose the metrics used by the
organization to assess climate-related risks ESG Transparency 14-15 CDP Report
and opportunities in line with its strategy
and risk-management process. Protecting the Climate 54-63
METRICS & TARGETS

United Nations
Sustainable 112-113
Development Goals

Disclose Scope 1, Scope 2 and, if ESG Transparency 14-15


appropriate, Scope 3 greenhouse gas (GHG) CDP Report
emissions and the related risks. Protecting the Climate 56-61

Goals 12-13
Describe the targets used by the
organization to manage climate-related Protecting the Climate 54-63
CDP Report
risks and opportunities and performance
against targets. United Nations
Sustainable 112-113
Development Goals

2021 ESG Report The Home Depot 145


THE HOME DEPOT, INC. 2020 EEO-1 CONSOLIDATED REPORT DATA
Framework
Reporting

Not-Hispanic or Latino
Hispanic or
Latino
Business

Male Female
Our

Overall
Job Categories Native American Native American
Black or Two or Black or Two or Totals
Hawaiian Indian or Hawaiian Indian or
Male Female White African Asian more White African Asian more
or Pacific Alaskan or Pacific Alaskan
American races American races
Islander Native Islander Native
Retail Operations
International

Executive/Sr Officials
10 2 65 8 0 4 1 0 26 5 0 1 0 2 124
& Mgrs
First/Mid Officials
1866 850 8543 1634 96 426 72 388 3826 1133 34 190 25 244 19327
& Mgrs
Professionals 368 218 3328 587 8 752 17 148 1588 623 2 388 13 99 8139
Our Communities
Strengthen

EEO-1 REPORT

Technicians 116 21 822 102 2 26 7 45 116 33 0 9 2 8 1309


Sales Workers 28113 27663 83999 18532 760 4318 967 4822 58857 20743 718 3122 794 4488 257896
Administrative
4074 4131 12629 3301 149 590 126 793 13236 4451 196 442 182 960 45260
Sustainably

Support
Operate

Craft Workers 255 7 1341 179 12 47 11 62 35 11 0 0 0 3 1963


Operatives 17759 4441 34561 17318 640 1896 572 3016 6904 4547 182 367 140 734 93077
Our People
Focus on

Laborers & Helpers 3855 85 7051 2804 92 334 91 537 180 52 3 8 4 16 15112

2021 ESG Report


Service Workers 429 53 1022 532 17 42 9 81 180 89 5 4 2 14 2479
Overview

Total 56845 37471 153361 44997 1776 8435 1873 9892 84948 31687 1140 4531 1162 6568 444686

146 The Home Depot


Previous Report Total 44473 28747 131030 36834 1482 7180 1568 8374 72689 26064 898 3750 956 5478 369523
Contents
Table of

Analysis data as of payroll period from 12/1/2020 through 12/15/2020


2021 ESG Report The Home Depot 147
Table of Focus on Operate Strengthen International Our Reporting
Overview
Contents Our People Sustainably Our Communities Retail Operations Business Framework

148 The Home Depot 2021 ESG Report

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