Home Depot ESG report touts sustainability success, new goals

The Home Depot reported that it reduced its carbon emissions by 22% in 2020 while growing its business by nearly 20% in the same year.

The hardware and home goods chain reported the numbers in its latest ESG report, where Home Depot said it reduced Scope 1 and 2 carbon emissions by more than 127,000 metric tons in 2020. Additionally, the company announced a goal to reach 100% renewable electricity for its facilities by 2030 and joined the Science Based Targets initiative (SBTi) to reduce global emissions, committing to set goals for Scope 1, 2 and 3 emissions by 2023. These updates and additional goals were released in its 2021 ESG report outlining the company’s environmental, social and governance initiatives and progress made in 2020.

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

Other highlights from the ESG report:

• In 2020, its U.S. hires were 35% female and 53% ethnically and racially diverse, earning recognition by Forbes as one of the Best Employers for Diversity. 
• In fiscal 2020, Home Depot paid approximately $2 billion in enhanced pay and benefits to front-line, hourly associates in response to COVID-19 and paid $616 million in record success-sharing bonus payments to non-management associates.
• Pledged to reduce carbon dioxide emissions by 40% by 2030 and 50% by 2035.
• In 2020 alone, electricity use in U.S. stores fell more than 14% due to the installation of LED lighting, the use of building-automation systems and the addition of energy-efficient heating, air conditioning and ventilation systems.
• The company continues to make progress toward its goal to remove expanded polystyrene (EPS) foam and polyvinyl chloride (PVC) film from private brand packaging by 2023, replacing these products with innovative recyclable materials.
• Throughout 2020, it contributed more than $50 million in funds and supplies to support communities impacted by COVID-19, including nearly 3.4 million N95 masks to help front-line healthcare workers nationwide.
• The company has invested more than $35 million since 2017 in organizations working to improve social equity and announced a commitment to double its investment in the Retool Your School program benefiting historically Black colleges and universities (HBCUs) to a million dollars annually.
• Last year, Home Depot spent $3.2 billion with diverse suppliers and announced it is creating a program to encourage suppliers to increase their business with diverse suppliers, expanding the company’s downstream impact with diverse organizations nationwide.
• In 2020, Home Depot committed $4 million to communities impacted by natural disasters.

For a full list of measures the retailer has taken, go here to download The Home Depot’s 2021 ESG Report.