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1、FC1 The Home Depot 2022 ESG Report 2022ESG ReportDOING OUR PART1The Home Depot 2022 ESG Report CONTENTSOverview03 CEO Letter:Our Success Starts With Our Culture05 Engaging Stakeholders&Setting Priorities07 ESG Priority Assessment Framework08 ESG Priority Touchpoints09 Home Depot Goals11 ESG Transpar

2、ency13 2021 Ratings&Recognition15 FAQ:We All Own Sustainability16 2021 HighlightsFocus on Our People19 Diversity,Equity&Inclusion25 Associate Engagement27 Learning&Development28 Benefits31 The Homer Fund32 Associate SafetyOperate SustainablyProtecting the Climate34 Carbon Footprint35 Store Operation

3、s37 Supply ChainSourcing Responsibly38 Ethical Sourcing39 Conflict Minerals40 Sustainable ForestryReducing Environmental Impact 42 Greener Products 44 Circularity46 Responsible Chemistry48 Energy-Saving Products49 Water-Saving Products50 Gardening51 Cleaning53 Waste Management&Recycling55 Sustainabl

4、e PackagingStrengthen Our Communities58 Community Partnerships60 Supplier Diversity62 Retool Your School63 Team Depot64 The Home Depot Foundation67 U.N.Sustainable Development GoalsInternational Retail Operations70 Canada72 MexicoOur Business75 Code of Conduct76 Corporate Governance 78 Government Re

5、lations80 Corporate Taxes81 Data Security&PrivacyReporting Framework83 Global Reporting Initiative(GRI)Standards90 Sustainability Accounting Standards Board (SASB)Disclosure Matrix93 Task Force on Climate Related Financial Disclosures(TCFD)Framework95 EEO-1 ReportThis report covers The Home Depots y

6、ear of environmental,social and governance(ESG)progress in Fiscal 2021.Note:Unless otherwise indicated,this report does not include data for HD Supply Holdings Inc.,which was acquired on Dec.24,2020.2The Home Depot 2022 ESG Report Resources&Reports Corporate ResponsibilityRESOURCESOVERVIEWForward-Lo

7、oking 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 futu

8、re results,including our ability to meet our goals;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 assoc

9、iates,potential associates,suppliers and service providers;cost and availability of labor;costs of fuel and other energy sources;international trade disputes,natural disasters,climate change,public health issues(including pandemics and quarantines,related shut-downs and other governmental orders,and

10、 similar restrictions,as well as subsequent re-openings),cybersecurity events,military conflicts or acts of war,and other business interruptions that could disrupt operation of our facilities,our ability to operate or access communications,financial or banking systems,or supply or delivery of,or dem

11、and for,the Companys products or services;the impact of regulatory changes;the impact of acquired companies on our organization;and our assumptions,expectations and projections regarding any of the foregoing.Forward-looking statements are based on currently available information and our current assu

12、mptions,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

13、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 also in future reports we file with the Securities and Exc

14、hange 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.You are advised,however,to review any further disclosures we make on related subjects in our f

15、ilings with the Securities and Exchange Commission and in our other public statements.Note on Materiality:Materiality,as used in this report,and our ESG priority assessment process,is different than the definition used in the context of filings with the Securities and Exchange Commission.Issues deem

16、ed material for purposes of this report may not be considered material for SEC reporting purposes.OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessOperate SustainablyReporting FrameworkTable of ContentsInternational Retail Operations3The Home Depot 2022 ESG Report OverviewStrengthen

17、Our CommunitiesFocus on Our PeopleOur BusinessOperate SustainablyReporting FrameworkTable of ContentsInternational Retail OperationsWe organize our approach to corporate responsibility around three key pillars:Focusing on Our People,Operating Sustainably and Strengthening Our Communities.CEO LETTERO

18、UR SUCCESS STARTS WITH OUR CULTUREContinues on next pageWhen I joined The Home Depot more than 22 years ago,I could never have imagined that I would have the opportunity to lead such an incredible organization.Prior to becoming CEO,I had the privilege to work in multiple departments across the organ

19、ization.One thing that has always been clear to me is that our values-driven culture and passion for our customers has been instrumental to our success.Built around our core values,our approach to ESG centers around three key pillars Focus on Our People,Operate Sustainably,and Strengthen Our Communi

20、ties.By identifying these three pillars,we can concentrate on the areas where we can have the greatest impact.Our 2022 ESG Report details the daily work we do to support these three pillars,as well as the progress we made in 2021 thanks to the dedication and ingenuity of our associates and suppliers

21、.Our focus on people centers around continuously striving to create a work environment that is inclusive,engaging,and rewarding to associates.Our associates outstanding performance in 2021 enabled 100%of our stores to qualify for Success Sharing bonus payments to non-management associates.We also of

22、fer training and development that transforms jobs into careers,which is reflected in the fact that approximately 90%of our U.S.store leaders began as hourly associates.Our U.S.workforce is more ethnically diverse than the U.S.working population.In addition,we increased the representation of female a

23、nd underrepresented minority groups across our managers and above cohort in the U.S.during 2021.CEO Letter“Built around our core values,our approach to ESG centers around three key pillars Focus on Our People,Operate Sustainably,and Strengthen Our Communities.By identifying these three pillars,we ca

24、n concentrate on the areas where we can have the greatest impact.”Ted Decker,CEO and president of The Home DepotWe believe our associates should reflect the customers and communities we serve.In 2021,approximately 36%of our U.S.new hires were women,while more than 57%of U.S.new hires were from an un

25、derrepresented minority group.Our commitment to diversity also extends to our supplier relationships.In 2021,we increased our spend with diverse suppliers to$3.3 billion and have announced a goal to achieve$5 billion in direct annual spend with diverse suppliers by 2025.We also completed our goal to

26、 launch a Tier II supplier diversity program to encourage our suppliers to spend with diverse businesses.We will continue to push forward in this area by partnering with organizations like the Billion Dollar Roundtable,an association geared at celebrating corporations that spend at least$1 billion p

27、er year with minority-and woman-owned suppliers,to further amplify our supplier diversity efforts.Our efforts to operate sustainably begin with our understanding that our biggest impact on the environment comes from the products we sell.Our partnership with suppliers allows us to give our customers

28、access to hundreds of products that are good for their homes,good for the environment,and good for their wallets.In 2021,we estimate our customers purchases of Energy Star products helped reduce annual electricity use by 7 billion kilowatt hours,saving$950 million on energy costs,and lowering carbon

29、 emissions by 4.9 million metric tons.Our water-saving products allowed customers to reduce consumption by over 66 billion gallons.4The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessOperate SustainablyReporting FrameworkTable of ContentsInternational Ret

30、ail OperationsTed DeckerCEO and president of The Home DepotCEO Letter“We know that when we invest in running a responsible,sustainable company,we make our business stronger,more agile,and more resilient.”Ted Decker,CEO and president of The Home DepotWe also made progress in 2021 by operating more su

31、stainably in our own business,reducing electricity consumption in our U.S.stores by approximately 11%year-over-year.We cut U.S.store electricity usage a remarkable 50%since 2010.A hallmark of progress in this area has been the transition to LED overhead lighting in our U.S.stores,which join our Cana

32、da and Mexico stores in having nearly all of interior lighting powered by LED bulbs.While we remain focused on reducing our energy consumption,we are also making progress towards our goal of producing or procuring 100%renewable electricity equivalent to the electricity needs for all Home Depot facil

33、ities worldwide by 2030.We focus on strengthening our communities by giving back financially and through our associates time and efforts dedicated to Team Depot volunteer activities a hallmark of who we are.In 2021,approximately 14,000 associates volunteered in communities across 150 cities nationwi

34、de.Our Team Depot volunteers helped our communities prepare and respond to natural disasters like tornados,hurricanes,and wildfires,while also achieving more than 1.25 million hours of service to veterans since 2011.We also value our nonprofit partners that enable The Home Depot Foundation to improv

35、e the homes and lives of U.S.veterans,train skilled tradespeople to fill the labor gap,and support communities affected by natural disasters.In 2021,the Foundation achieved a milestone of ten years and over$400 million invested in support of veteran causes,on track to contribute half of a billion do

36、llars to veteran causes by 2025.While we have made significant progress,there is more work to do.On Pages 9 and 10 of this report,you will see the goals weve set as we strive to build a better and more sustainable business.We know that when we invest in running a responsible,sustainable company,we m

37、ake our business stronger,more agile,and more resilient.2021 was another year filled with great accomplishments,and I want to thank our associates and supplier partners for the many ways they enable us to do our part and live our values every day.5The Home Depot 2022 ESG Report OverviewStrengthen Ou

38、r CommunitiesFocus on Our PeopleOur BusinessOperate SustainablyReporting FrameworkTable of ContentsInternational Retail OperationsENGAGING STAKEHOLDERS&SETTING PRIORITIESAs the largest home improvement retailer in the world,we have the unique opportunity to create positive impacts across a broad num

39、ber of stakeholders.We have also been reminded over the last two years how quickly our world can change,which is why we continue our practice of proactive engagement and provide numerous channels for feedback,so we can remain attentive to the concerns and needs of our stakeholders.We have learned ov

40、er the years that one of the best ways for us to make sure we understand the relevant environmental,social and governance(ESG)impacts of our business and the current areas of focus of our many stakeholders is to engage with our stakeholders.This engagement comes through multiple channels.We receive

41、constant feedback from our customers through the more than a billion and a half transactions across our stores and digital channels annually.We survey our approximately 500,000 associates to measure how emotionally connected they are to their work.We collaborate with our vendors and suppliers in an

42、effort to lessen the environmental impact of the products we sell.Individuals and organizations from around the globe reach out to us with questions or concerns about our operations or products.We meet with shareholders and nongovernmental organizations(NGOs)interested in our business practices.We t

43、ake part in industry efforts to raise awareness about the ESG responsibilities we all share.Our ongoing interactions may be formal or informal,as detailed in our ESG Priority Assessment Framework on Page 7.These interactions help validate our own priority assessment;they also help us gauge the impac

44、t of our business,refine ESG priorities,measure our progress and design ways to improve.Climate ChangeResponsible SourcingEnergy ReductionNatural ResourcesCommunitiesWaste&RecyclingChemical ConcernsAREAS OF FOCUSCorporate GovernancePeopleWe value seeing ESG impact and opportunities through our opera

45、tional lens and also through the lenses of our stakeholders.By better understanding our impact and collaborating with stakeholders,we position our company to set objectives that allow us to contribute to building a better business,workplace and world.Our Sustainability Council,composed of representa

46、tives from different areas of the business,oversees our approach to sustainability.Members of the Council share stakeholder feedback from their functional areas.The Council focuses on several key areas,as shown below.The Council meets twice a year,and its chair presents our sustainability strategy a

47、nd activities to the Board of Directors annually.We also provide quarterly updates to our Nominating and Corporate Governance Committee regarding our ESG engagement.Our ESG priorities and plans are communicated internally and externally via various channels,including in this annual report.Engaging S

48、takeholders&Setting Priorities6The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessOperate SustainablyReporting FrameworkTable of ContentsInternational Retail OperationsCustomers“Be a global-impact conscious company,and provide products that help me reduce

49、 my homes environmental impact.”Associates“Empower us to be contributing team members of a values-based organization.”Communities“Support me and my neighbors by making a positive difference in our community.”Suppliers“Give us an outlet to market innovative,sustainable products and a way to gather ti

50、mely customer feedback.”Investors“Tell us your primary risks and how you handle oversight of them.”Government“Create partnerships with local,state and federal officials that help bridge industry innovation to public policy advancement.”Academia“Give us insight into customer trends and habits to aid

51、our research.”NGOs“Work with us to elevate our causes to action and progress.”OUR STAKEHOLDERSStakeholders share their perspectives on our ESG practices.Their input helps shape our strategy.7The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessOperate Susta

52、inablyReporting FrameworkTable of ContentsInternational Retail OperationsESG PRIORITYASSESSMENT FRAMEWORKThis chart outlines the process The Home Depot uses to assess,prioritize and address potential ESG issues.Trigger ESG AssessmentEngage Relevant Internal Business TeamsGather Information and Recom

53、mendationsSTEP 1Identify Potential ESG IssueExamples:STEP 2STEP 3STEP 4Establish Ongoing PlanContinue ProgressSTEP 5Develop SolutionSTEP 6STEP 7 Chemicals Circular Economy Fuel Cells Global Warming Human Capital Invasive Plants Organics Pollinator Health Rainforest Depletion Recycled Content Renewab

54、le Energy Worker Well-Being Corporate Communications Diversity,Equity&Inclusion Government Relations Human Resources Information Technology Investor Relations Legal Merchandising Operations Real Estate&Construction Supply Chain SustainabilityCATALYSTSIssues Identified by Concerned StakeholdersConcer

55、ned StakeholdersHome Depot ExpertsorEducate Concerned StakeholdersModify Current PathMonitor and Review PeriodicallyExit ProgramorororSet Improvement GoalsShare FindingsTest AlternativesTrack and ReportPriority Issues Identified by The Home DepotFact-Finding,Data Collection,Scientific ResearchESG Pr

56、iority Assessment Framework8The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessOperate SustainablyReporting FrameworkTable of ContentsInternational Retail OperationsESG PRIORITY TOUCHPOINTSIMPACTSAssociatesCustomersSuppliersGovernmentNongovernmentalOrgani

57、zationsAcademics&EducatorsInvestorsLocal CommunityFocus on PeopleAssociate DevelopmentTraining,education,promotion,supportAssociate Well-BeingSafety,health,wages,hoursDiversity,Equity&InclusionAssociate engagement,workforce diversity,talent acquisition,associate resource groupsGovernanceEthics,cultu

58、re,data privacy and security,risk managementThird-Party Worker Well-BeingSafety,health,wages,hours,unforced laborOperate Sustainably|OperationsEnergy UseCarbon emissionsHazardous MaterialsWaste,disposalWasteRecycling,landfill,incinerationWater UseResponsible consumptionOperate Sustainably|ProductsEc

59、o ProductsEco Options,Eco Actions,WaterSense,Energy Star,Chemical Strategy,Wood Purchasing PolicyEnd of LifeCircularity,waste,recyclingManufacturing ProcessNatural resources,chemicals,carbon emissions,packagingTransportationCarbon emissionsStrengthen Our CommunitiesSupplier DiversityInnovation,mento

60、ring,business growth,networkingCommunity SupportDiverse,equitable and inclusive communities,trades training,veterans and military families,disaster responseKey Impacted StakeholdersESG Priority TouchpointsOperate Sustainably|ProductsStrengthen Our CommunitiesFocus on Our PeopleOperate Sustainably|Op

61、erationsESG Priority Touchpoints9The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessOperate SustainablyReporting FrameworkTable of ContentsInternational Retail OperationsGOALSFOCUS ON OUR PEOPLEOPERATE SUSTAINABLY:OPERATIONSGLOBAL IMPACT:CLIMATE(PAGES 34-

62、37,48)Create career advancement opportunities for 50,000 front-line associates over a five-year periodUtilizing science-based targets to reduce Scope 1 and Scope 2 emissions 40%by 2030,50%by 2035Help reduce customers greenhouse gas emissions by 20 million metric tons(since 2017)PROGRESSGoal Date:202

63、3Produce/procure 100%renewable electricity for all Home Depot facilities worldwide by 2030PROGRESSGoal Date:2030PROGRESSGoal Date:2030,2035PROGRESSGoal Date:2020HOME DEPOT PILLARSPROGRESS KEYJust getting startedAchieved our goalMaking progressGLOBAL IMPACT:PEOPLE(PAGES 21-27)The Home Depot sets goal

64、s to drive ESG progress,benefiting our associates,customers,suppliers and communities,as well as our company.Continues on next pageEliminate certain chemicals in paint20%reduction in U.S.store kilowatt-hour electricity use,compared to 2010 levelsEliminate certain chemicals from cleaning productsPROG

65、RESSGoal Date:2022PROGRESSPROGRESSGoal Date:2020Goal Date:2020GLOBAL IMPACT:RESPONSIBLE CHEMISTRY(PAGES 46-47,50-52)Expand associate resource groups to include more associates and increase engagement and participationPROGRESSGoal Date:2021Procure/produce 335 megawatts of renewable or alternative ene

66、rgyPROGRESSGoal Date:2025Invest more than 1 million hours per year over five years in training and development to help our front-line associates grow their careersPROGRESSGoal Date:2022Home Depot Goals10The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessO

67、perate SustainablyReporting FrameworkTable of ContentsInternational Retail OperationsOPERATE SUSTAINABLY:PRODUCTSSTRENGTHEN OUR COMMUNITIESGLOBAL IMPACT:PLANET(PAGES 40-41,48-49,55-56)GLOBAL IMPACT:COMMUNITIES(PAGES 57-66)Eliminate certain chemicals in insulationEliminate certain chemicals in carpet

68、PROGRESSGoal Date:2018PROGRESSGoal Date:2018Remove ortho-phthalates from vinyl flooringReduce formaldehyde levels in laminate/engineered flooringPROGRESSGoal Date:2017PROGRESSGoal Date:2016Exclude expanded polystyrene(EPS)foam and polyvinyl chloride(PVC)film from private-brand packagingImplement add

69、itional requirements regarding tropical deforestation standardsPROGRESSGoal Date:2023PROGRESSGoal Date:2018GLOBAL IMPACT:RESPONSIBLE CHEMISTRY(PAGES 46-47,50-52)Help customers save$2.8 billion on utility bills through energy-efficient products(since 2017)PROGRESSGoal Date:2020The Home Depot Foundati

70、on plans to contribute$500 million to veteran causes with a focus on housingPROGRESSGoal Date:2025The Home Depot Foundation plans to invest$50 million to train 20,000 skilled tradespeople,including veteransPROGRESSGoal Date:2028Help reduce consumers water use by 250 billion gallons(since 2017)PROGRE

71、SSGoal Date:2020Achieve$5 billion in direct annual spend with diverse suppliersPROGRESSGoal Date:2025HOME DEPOT PILLARSEliminate neonicotinoids from live goods,except where legally requiredPROGRESSGoal Date:2019Launch a Tier II supplier diversity program that measures and encourages our Tier I suppl

72、iers spending with diverse suppliersPROGRESSGoal Date:2022Home Depot Goals11The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessOperate SustainablyReporting FrameworkTable of ContentsInternational Retail OperationsFY 2019FY 2020FY 2021Focus on Our PeopleAs

73、sociatesUnderrepresented minority groups among new hires in the U.S.52.3%52.8%57.3%Women among new hires in the U.S.33.4%35.5%35.7%Success Sharing paid to associates$201 million$616 million$739 millionHomer Fund assistance paid to fellow associates$16 million$16.2 million$18.7 millionLost time incid

74、ent rate per 200,000 hours1.211.071.23Recordable incident rate per 200,000 hours4.894.034.25Operate SustainablyCarbon EmissionsCDP Climate Change scoreA-A-Estimated reduction of customers GHG emissions through the purchase and proper use of energy-saving products(MT CO2e)(includes Energy Star,4.9 mi

75、llion MT in 2021)6.9 million7.6 million7.5 millionDirect(Scope 1)GHG emissions(MT of CO2e)*554,000607,000642,000Indirect(Scope 2)GHG emissions(MT CO2e)*1,394,0001,214,0001,007,000Reduction of GHG emissions since 2009(MT CO2e;Scope 1&2)*-1.2 million-1.3 million-1.5 million%Reduction of GHG emissions

76、since 2009(Scope 1&2)*-38%-42%-47%Number of stores with fuel cell energy source203203204Fuel cell energy capacity for U.S.operations(MWac)40.940.941.3Solar energy capacity companywide,rooftop and off-site(MWac)44.662.9141.7Wind energy capacity companywide(MWac)626262Diesel used(MWh)*106,922199,17621

77、3,000Electricity purchased(MWh)*3,479,1713,103,1152,935,500Electricity generated(MWh)*308,566302,200300,600Natural gas used(MWh)*2,371,6962,457,4392,601,500Propane used(MWh)*247,669272,844280,200Energy consumption within the organization(MWh)*6,634,7056,445,0716,444,300GHG emissions intensity Scope

78、1+2(MT of CO2e per billion U.S.dollars of revenue)*17,67513,78410,900Operating SustainablyReduction of kWh used by U.S.stores,year over year-11.79%-14.11%-10.63%Rechargeable battery recycling by all stores(pounds)1,170,2001,240,4001,162,800CFL bulb recycling(pounds)804,300562,700514,200ESG TRANSPARE

79、NCYThis chart highlights The Home Depots key ESG metrics.Some of our 2021 results continue to be impacted by the ongoing effects of the COVID-19 pandemic.All data reflects Home Depots fiscal year,unless otherwise noted.For detailed diversity,equity and inclusion data,see pages 21-24.ESG Transparency

80、12The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessOperate SustainablyReporting FrameworkTable of ContentsInternational Retail OperationsFY 2019FY 2020FY 2021Operate SustainablyLead-acid battery recycling(battery cores)235,200184,600204,300Cardboard rec

81、ycling(tons)250,600261,500272,900Nonhazardous waste generated(MT)851,330919,5741,048,500Waste sent to landfill(MT)575,344627,196728,300Waste recycling(MT)275,986292,378320,200Waste incineration(pounds)*2,331,1103,107,6292,959,900Fuel blending(pounds)*5,207,9335,505,0965,571,300Responsible SourcingCo

82、mbined factory audits and follow-up visits by THD3,0443,0123,119Product tests conducted by third parties*37,04425,83118,753Transit tests conducted by third parties*15,46912,62812,887Pre-shipment product inspection visits21,48226,24328,300Expanded polystyrene(EPS)foam elimination(CF)19,100873,200274,

83、600Polyvinyl chloride(PVC)film elimination(SF)5,729,000961,1001,119,700ProductsNumber of restricted substance categories in Chemical Strategy888Energy-saving products offered in stores and online (includes Energy Star,15,225 in 2021)24,67723,66822,700Energy-saving product sales(includes Energy Star,

84、$7.02 billion in 2021)$6.03 billion$8.76 billion$7.59 billionEstimated annual customer savings from purchase and proper use of energy-saving products(includes Energy Star,$950 million in 2021)$1.2 billion$1.4 billion$1.5 billionWater-saving products offered in store and online (includes WaterSense,5

85、,579 in 2021)9,4609,9948,100Water-saving product sales(includes WaterSense,$1.71 billion in 2021)$1.36 billion$1.65 billion$1.79 billionEstimated annual customer savings from purchase and proper use of water-saving products(includes WaterSense,$873 million in 2021)$650 million$746 million$895 millio

86、nStrengthen Our CommunitiesCommunityHome Depot direct spend with diverse suppliers$2.1 billion$3.2 billion$3.3 billionThe Home Depot Foundation grants$82.6 million$52.9 million$66.7 millionTeam Depot volunteer hours315,000*84,000U.S.political contributions by The Home Depot PAC$2,282,468$1,885,107$2

87、,447,000U.S.corporate political contributions$150,000$420,000$400,000CF=cubic feetCO2=carbon dioxideCO2e=CO2+other greenhouse gas emissionsGHG=greenhouse gaskWh=kilowatt hoursMT=metric tonsMW=megawattsMWac=megawatts of alternating currentMWh=megawatt hoursSF=square feetAll monetary amounts are U.S.d

88、ollars.*2021 data reflects our fiscal year;2020 and 2019 reflect the calendar year.Our fiscal 2021 includes activity during February 1,2021 through January 30,2022,compared to calendar year 2020,which includes activity during January 1,2020 through December 31,2020.*Annual activities halted because

89、of the pandemic;did not track.*Prior year data updated based on more complete data available.Not available at time of publication.ESG Transparency13The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessOperate SustainablyReporting FrameworkTable of ContentsI

90、nternational Retail OperationsRATINGSA-Positions The Home Depot as an industry leaderOur ESG risks are low compared to the industryLOWRISKAssesses action on climate change;score was based on 2020 data,the latest availableAnalyzes corporate environmental,social and governance(ESG)progressOur score ha

91、s improved from an initial C+in 2017;our latest scoreis from March 2021BGrades retailers progress in selling products with safer chemicalsOn a scale of 0-5;we rank better than the industry average of 2.33.1Measures ESG risk and performance of publicly traded companiesSecond-highest rating;positions

92、us as an industry leader in key ESG areasAAMeasures resilience to long-term,financially relevant ESG risksLeading third-party sustainability rating organizations monitor and report on our progress.Below are some key ratings for our company in 2021.Ratings&Recognition14The Home Depot 2022 ESG Report

93、OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessOperate SustainablyReporting FrameworkTable of ContentsInternational Retail OperationsRECOGNITIONGartnerNo.38 Top Supply ChainsFortuneNo.19 Worlds Most Admired CompaniesNational Retail FederationNo.4 Top RetailersEPA(Environmental Prot

94、ection Agency)SmartWay Excellence Award WaterSense Partner of the Year Award Safer Choice Partner of the Year AwardMilitary Friendly Employer Spouse Employer Company&BrandHuman Rights Campaign No.90 Corporate Equality Index(USA)No.82 Corporate Equality Index(Mexico)Comparably No.25 Best Company Work

95、-Life Balance No.50Best Sales Team No.8 Best Places to Work in AtlantaCanadas Best Diversity Employers 12th Consecutive YearCorporate Social Responsibility Award for Labor Equality&Nondiscrimination MexicoForbes No.22 Worlds Best Employers No.69 Best Employers for VeteransEnergy StarRetail Partner o

96、f the YearAtlanta Business Chronicle HR Excellence Award for Most People-Focused CEO(Craig Menear)Here are some of the organizations that recognized our efforts in 2021 to build a better workplace,business and world.Ratings&Recognition15The Home Depot 2022 ESG Report OverviewStrengthen Our Communiti

97、esFocus on Our PeopleOur BusinessOperate SustainablyReporting FrameworkTable of ContentsInternational Retail OperationsHome Depots chief sustainability officer Ron Jarvis has spent more than two decades driving sustainability improvements at The Home Depot.Here he offers insights into our progress.F

98、AQ:WE ALL OWN SUSTAINABILITYWho drives ESG at TheHome Depot?How is The Home Depot helping customers increase the sustainability of their homes and businesses?Is sustainability a competitive advantage for The Home Depot?How have associates helped drive ESG progress at The Home Depot?Many associates a

99、nd business leaders throughout our enterprise!They take pride in improving their departments and businesses in multiple ESG aspects.Our leadership understands that an effective environmental,social and governance strategy cannot happen in isolation.It is not the sole responsibility of a corporate ES

100、G team.Rather,our ESG strategy must reflect The Home Depots core values,and it must be embedded in all aspects of how we run our business.Everybody owns it.Our Eco Actions program,which builds on our original Eco Options program that we launched in 2007,helps our customers take on more sustainable D

101、IY projects and choose greener products that can save water,conserve energy or are formulated to reduce certain chemicals.Products can only qualify for this distinction if manufacturers provide third-party verification of environmental claims that meet our programs requirements.This program also off

102、ers customers green project ideas and tips,for example,how to grow an organic garden(see Page 50).In addition,we encourage our customers to drop off used compact fluorescent light bulbs and rechargeable batteries for recycling.In 2021,we collected 1,162,800 pounds of recycled batteries,a 24%increase

103、 since 2014(see Page 54).We also help our customers go greener in ways that may be less apparent to them.For example,we offer circularity-centered products like our Home Depot-branded moving boxes,made from 100%post-consumer recycled paper fiber(see Page 45),as well as composite deck boards made fro

104、m recycled plastic waste from our stores.We continue to make progress on our goal to exclude expanded polystyrene(EPS)foam and polyvinyl chloride(PVC)film from our private-brand product packaging by the end of 2023.When customers rent tools from us,they help avoid the environmental impact of new pro

105、duct manufacturing.Another example:Our stores have cut electricity consumption 50%since 2010,providing our customers a lower energy intensive shopping environment.Overall,we believe good business decisions drive sustainability.Examples of this can be seen through the investments weve made to create

106、the most efficient supply chain in home improvement.These investments have helped us reduce the number of trucks needed and distance traveled to get our products from our supplier to our customers,while also reducing fuel emissions.Another example of this is our store investments,part of which inclu

107、ded transitioning stores to LED lighting,which helped us reduce operating costs and electricity consumption.We also believe that by working with our suppliers to bring innovative and sustainable products to market,we help our customers create more sustainable homes and workplaces.Our efforts to driv

108、e innovation can be seen in every aisle of the store,and we believe this is a key differentiator in the market.We also want to see sustainability be the norm for our entire industry.We are encouraged when we see other retailers take big swings and do innovative things that push all of us to do a bet

109、ter job of protecting the planet,and we hope the innovation that we bring through our operations and products motivates others to do the same.One of our eight core values is Do The Right Thing,which drives our associates to find new ways that our organization can reduce its environmental impact.This

110、 can be seen through our packaging team who looks for ways to reduce the package footprints and ways to use more sustainable materials for our private-label products(see Page 55).Another example are our associates who work to find ways to upcycle the packaging waste in our stores and supply chain in

111、to new products like Trex composite decking.-Ron JarvisChief Sustainability Officer Reducing The Home Depots environmental impact is essential to our efforts to build a better business,workplace and world.FAQ:We All Own Sustainability16The Home Depot 2022 ESG Report OverviewStrengthen Our Communitie

112、sFocus on Our PeopleOur BusinessOperate SustainablyReporting FrameworkTable of ContentsInternational Retail Operations2021 HIGHLIGHTSOur core values guide how we focus on our people,operate sustainably and strengthen our communities and provide a benchmark for measuring progress.These highlights ref

113、lect progress made in 2021.$739 millionSuccess Sharing payments to our non-management associates ofWe paid record90%of our U.S.store leadersstarted as hourly associatesApproximately36%of our U.S.new hires were women57%were ethnically/racially diverseand more than$230 million11.4%$150 billionin grant

114、s,assisting approximately164,000associates since 199930.1%Diluted earnings per share were$15.53,an increase ofcompared to fiscal 2020ApproximatelyTotal company comp sales increasedAchieved the milestone of overin sales2021 Highlights100%increased over Sales from Digital Platformson a 2-year basisOUR

115、 BUSINESSFOCUS ON OUR PEOPLEand U.S.comp sales increased 10.7%17The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessOperate SustainablyReporting FrameworkTable of ContentsInternational Retail Operations$400 millionThe Home Depot Foundation towards veteran

116、causes,since 201150%We decreased electricity consumption in our U.S.stores since 2010CDPWe have committed to participating in the OPERATE SUSTAINABLYSTRENGTHEN OUR COMMUNITIESoff the road for a yearforests questionnaireSince 2009,our Retool Your School grant program has helped fund over by asking ou

117、r suppliers to spend more with themwith diverse suppliersIn 2021,we spenthas contributed more than$7 millioncommitted more thanto help communities impacted by natural disasters in 2021The Home Depot Foundation$3.3 billion286private-brand packagesWe redesignedto reduce size and materials.This helped

118、us eliminate 1,119,700 square feet of PVC filmenough to cover19 football fieldsCompleted our multi-year project to convertto LED lightingU.S.StoresWe reduced our Scope 1 and 2 carbon emissions by approximately 172,000 metric tons,equivalent to taking more than37,000 carsto veteran causes Since 2011,

119、Team Depot has volunteered more than1.25 million service hours100 projects benefitting 65%of HBCUs 2021 Highlights18The Home Depot 2022 ESG Report Diversity,Equity&Inclusion Home Depot Core Values Military Transition Portal Associate Resource Groups Home Depot Benefits4U The Homer FundRESOURCESFOCUS

120、 ON OUR PEOPLE50,000front-line associates over a five-year period ending in 2023Create enhanced career opportunities forhours per year through 2022 in training and development to help our front-line associates grow their careersBy the end of 2021,expand associate resource groups to include more asso

121、ciates and increase engagement and participationInvest more than1 millionWe focus on our people by striving for an environment centered on The Home Depots core value of respect for all people,where diversity,equity and inclusion are celebrated and associates have opportunities to grow.We believe our

122、 approximately 500,000 associates are our greatest asset,and they differentiate us in the marketplace.GOALSOverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessOperate SustainablyReporting FrameworkTable of ContentsInternational Retail Operations19The Home Depot 2022 ESG Report OverviewS

123、trengthen Our CommunitiesFocus on Our PeopleOur BusinessReporting FrameworkTable of ContentsInternational Retail OperationsOperate SustainablyWhile our office of Diversity&Inclusion has existed within the company for more than a decade to help diversify our workforce and support change in our commun

124、ities,we expanded in 2020 and renamed it to fit an enhanced mission:Diversity,Equity and Inclusion(DEI).Adding equity to our focus reflects our desire to promote fairness,remove bias and ensure all of our associates and business partners have access to the resources they need to succeed at work.In 2

125、021,we met our goal to expand our associate resource groups(ARGs)beyond our Store Support Center(corporate facility)to include more associates and increase engagement and participation.Through our new associate engagement platform,Yammer,all our U.S.associates are now able to access our ARGs.We also

126、 leveraged Yammer to reach more associates with C.A.R.E.talks,a series of diversity discussions that Champion Awareness,Respect,and Equity for all associates.Learn more here:Page 26.We were also able to meet our goal to launch a Tier II supplier diversity program in 2021.Beyond the$3.3 billion we sp

127、ent with diverse Tier I(direct)suppliers last year,our new program will help us measure and encourage our Tier I suppliers to spend more with diverse businesses.Find out more about our supplier diversity efforts on Page 60.At The Home Depot,we define diversity,equity and inclusion as:Diversity:Compo

128、sition of people,such as their similarities and differences(e.g.,gender,race/ethnicity,sexual orientation)Equity:Norms,practices and policies in place that ensure just and fair opportunities and outcomes,allowing individuals to reach their full potential Inclusion:How we embrace and enable our assoc

129、iates to feel safe,respected,engaged,motivated and valued for who they are and their contributions KEY AREAS OF FOCUS At The Home Depot,we focus on three key areas to create meaningful change through thoughtful actions that align with all eight of our core values.ASSOCIATE ENGAGEMENT DIVERSITY,EQUIT

130、Y&INCLUSIONWe strive to create an environment centered around our eight core values,where diversity,equity and inclusion fuel opportunities for our associates,communities,and suppliers.CHECK IT OUTWhen Khareem Mitchell started with The Home Depot in 2018,he discovered a workplace where his personal

131、principles aligned with company values.His Afro-Hispanic roots play a big role in how he conducts his life both inside and outside of work.Increasing diverse representation throughout our organization Creating an environment where every associate feels included and valued for who they are Promoting

132、equal opportunity in recruitment,hiring,training,development and advancementWe have many initiatives currently in the works,including an expansion of our existing Retool Your School program to further strengthen our commitment to historically black colleges and universities(HBCUs).This expansion,set

133、 to launch in 2023,will include more programming and a broader reach(See Page 62).In addition,we are working to enlarge our network of external partner organizations to enhance the career development of our female,minority,LGBTQ+and veteran associates.COMMUNITY PARTNERSHIPSSUPPLIER DIVERSITY Strivin

134、g to close the wealth gap Advancing education for all Increasing our penetration and spend with diverse suppliers Developing diverse suppliers by providing mentorship and shared resources Learn more about how we work with our community partners across the nation and how spending with diverse supplie

135、rs benefits our company and our communities on Pages 58-61.Diversity,Equity&Inclusion20The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessReporting FrameworkTable of ContentsInternational Retail OperationsOperate SustainablyDerek BottomsChief Diversity Of

136、ficer and Vice President of Associate RelationsDerek Bottoms,chief diversity officer and vice president of associate relations,explains how diversity,equity and inclusion align with our company values.DOING THE RIGHT THINGSPOTLIGHTWhat does diversity,equity and inclusion mean at The Home Depot?At Th

137、e Home Depot,our values guide us on everything we do.They serve as our foundation,and they are embedded in our culture.Our expanded focus on diversity,equity and inclusion supports all eight of our core values,including respect for all people,giving back and building strong relationships with other

138、associates and our customers.We strive to build a workplace and retail space that reflect the communities we serve.A diverse and inclusive workplace also creates shareholder value by providing different perspectives and fresh ideas that spark innovation.What are some ways The Home Depot is driving p

139、rogress for its stakeholders?We recently expanded our associate resource groups(ARGs)to all associates companywide,including in stores and distribution centers.Previously,these groups were only available to our Store Support Center(SSC)associates.(Go to Page 26 to learn more.)In an aligned effort,we

140、 are identifying tools and platforms to directly engage with our hourly front-line associates to share DEI-related information and resources.We also are raising awareness of DEI and its importance by modernizing our learning materials;holding listening sessions where executives hear from associates

141、across the organization;and focusing on recruiting and talent-planning strategies that emphasize diversity and inclusion.On the community side,we are continuing to partner with local and national organizations focused on closing the wealth gap and advancing education for all.We continue to amplify o

142、ur supplier diversity efforts to drive innovation,economic opportunities and shareholder value by directing more of our dollars,directly and indirectly,toward diverse businesses.We look to partner with organizations like the Billion Dollar Roundtable whose mission aligns with our focus areas.To furt

143、her our commitment to supplier diversity,we are also seeking to achieve$5 billion in direct annual spend with diverse suppliers by 2025.See Page 60 to learn more about our supplier diversity efforts.What project excites you?Im excited about our plans to expand Our Retool Your School program in 2023,

144、which has provided campus beautification funding to historically black colleges and universities(HBCUs)since 2009.By expanding the reach of this program,we can further strengthen our commitment to HBCUs and their students,including through career development opportunities.(Learn more on Page 62).Mis

145、sion StatementThe Home Depot ignites the doer in all of us to build a culture of understanding,acceptance and appreciation.Vision StatementThe Home Depot is building a more diverse,equitable and inclusive organization,within our enterprise and the communities we are proud to serve.Grounded in our co

146、re values,we have the conviction,capabilities and tools to make a difference for our associates,community partners and suppliers.Diversity,Equity&Inclusion:Spotlight21The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessReporting FrameworkTable of ContentsI

147、nternational Retail OperationsOperate SustainablyDiversity,Equity&InclusionMale 62%Female 37%2019Male 62%Female 38%2020Male 62%Female 38%2021White 54%Underrepresented Minority Groups 46%White 52%Underrepresented Minority Groups 47%20192020White 50%Underrepresented Minority Groups 48%2021White 64%Und

148、errepresented Minority Groups 36%White 61%Underrepresented Minority Groups 39%201920202021201920202021WhiteUnderrepresented Minority GroupsMale 53%Female 47%Male 53%Female 47%Male 53%Female 47%BUILDING A DIVERSE WORKFORCEOur diverse workforce strengthens our competitive advantages and reflects the c

149、ustomers and communities we serve.A comparison against U.S.Department of Labor data shows that our U.S.workforce is more ethnically diverse than the nations working population.In 2021,we also expanded the number and percentage of women and minorities at the manager level and above.These charts refle

150、ct the demographics of The Home Depots U.S.workforce from fiscal 2019 through fiscal 2021.Certain percentages may not sum to 100%due to rounding or,in 2020 and 2021,some associates choosing not to self-identify by race/ethnicity or gender.2019 percentages included these non-disclosing associates in

151、the white or male categories,as applicable.Source:Latest available data from the U.S.Bureau of Labor Statistics;2021 data is estimatedU.S.WORKING POPULATIONTHD U.S.WORKFORCE*THD U.S.WORKFORCE BY RACE/ETHNICITYTotal Number of U.S.Associates:2021:437,000 2020:441,000 2019:370,00020212019202050.0%White

152、22.3%Hispanic 17.9%Black3.1%Asian4.9%Other1.7%Undisclosed51.5%White21.8%Hispanic 17.0%Black2.9%Asian5.0%Other1.7%Undisclosed53.7%White20.0%Hispanic 16.5%Black2.9%Asian4.9%Other2.0%Undisclosed*The 2020 and 2021 results include data for HD Supply Holdings Inc.63%37%22The Home Depot 2022 ESG Report Ove

153、rviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessReporting FrameworkTable of ContentsInternational Retail OperationsOperate SustainablyDiversity,Equity&InclusionMale 68%Female 32%2019Male 68%Female 32%2020White 65%Underrepresented Minority Groups 35%2019White 64%Underrepresented Minorit

154、y Groups 35%2020Male 65%Female 34%2021White 62%Underrepresented Minority Groups 38%2021U.S.MANAGERS AND ABOVE*(EXCLUDES OFFICER LEVEL)Total Number of U.S.Managers and Above:2021:24,600 2020:19,100 2019:18,100*Includes manager-level positions and above at stores,distribution centers and other field l

155、ocations,as well as at our Store Support Center;excludes officers.The 2020&2021 results include data for HD Supply Holdings Inc.20212019202061.7%White15.3%Hispanic 13.9%Black3.7%Asian4.6%Other0.8%UndisclosedU.S.MANAGERS AND ABOVE*BY RACE/ETHNICITY63.7%White13.5%Hispanic 12.9%Black4.8%Asian4.2%Other0

156、.9%Undisclosed64.8%White13.3%Hispanic 12.4%Black4.5%Asian4.2%Other0.9%Undisclosed23The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessReporting FrameworkTable of ContentsInternational Retail OperationsOperate SustainablyDiversity,Equity&InclusionWhite 76%

157、Underrepresented Minority Groups 24%2019White 74%Underrepresented Minority Groups 26%2020Male 73%Female 28%2019Male 71%Female 29%2020WhiteUnderrepresented Minority Groups2021MaleFemale 2021U.S.OFFICERS*Total Number of U.S.Officers:2021:126 2020:127 2019:12020212019202072.2%White9.5%Hispanic 10.3%Bla

158、ck5.6%Asian2.4%Other0%UndisclosedU.S.OFFICERS BY RACE/ETHNICITY75.8%White10.0%Hispanic 7.5%Black4.2%Asian2.5%Other 0%Undisclosed74.0%White9.4%Hispanic 10.2%Black3.9%Asian2.4%Other0%Undisclosed*The 2020&2021 results include data for HD Supply Holdings Inc.72%28%70%30%24The Home Depot 2022 ESG Report

159、OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessReporting FrameworkTable of ContentsInternational Retail OperationsOperate SustainablyDiversity,Equity&InclusionDID YOU KNOWSince 2013,The Home Depot has added 11 directors to its Board,seven of whom were women,members of a historicall

160、y under-represented racial or ethnic group or both.As of May 2022,our Board had 10 male directors(71%)and 4 female directors(29%).And of the 12 independent directors,33%are women and 33%are members of historically under-represented racial or ethnic groups.White 75%Underrepresented Minority Groups 25

161、%2019White 75%Underrepresented Minority Groups 25%2020Male 75%Female 25%2019Male 75%Female 25%2020WhiteUnderrepresented Minority Groups2021MaleFemale 2021BOARD OF DIRECTORS*Total Number of Board Members:2021:11 2020:12 2019:122021201975.0%White8.3%Hispanic 16.7%Black0%Asian0%Other202075.0%White8.3%H

162、ispanic 16.7%Black0%Asian0%Other72.7%White9.1%Hispanic 18.2%Black0%Asian0%OtherBOARD OF DIRECTORS BY RACE/ETHNICITY*2021 data as of the fiscal year ended January 30,2022.For additional information on our board composition,visit the Corporate Governance section of our website.73%27%82%18%25The Home D

163、epot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessReporting FrameworkTable of ContentsInternational Retail OperationsOperate SustainablyASSOCIATE ENGAGEMENTVoice of the Associate Survey Highly engaged associates care about their work and the performance of The Hom

164、e Depot.Our passion is to create an engaging and inclusive workplace;we do so by proactively engaging with our associates,while also listening and responding to their feedback.In 2021,we introduced an additional Voice of the Associate survey to all our associates.Our two Voice of the Associate surve

165、ys Census and Pulse provided us the opportunity to hear from our associates at least twice in 2021.Our Census survey is an annual in-depth look at our associates engagement and satisfaction with their job and with the Home Depot,while our Pulse survey is typically shorter and seeks feedback on speci

166、fic topics.Based on the Voice of the Associate 2021 Census survey,we saw the highest engagement numbers across the enterprise that we have seen in the past few years.In addition,we also added two additional surveys Onboarding and Exit,into our“Lifecycle Listening”toolbelt.These additional surveys al

167、low us to intentionally connect with associates at specific moments within their career at The Home Depot.Engagement Platform In 2021,our new associate engagement platform-Yammer,which was launched at the end of fiscal 2020-helped create new collaboration spaces and opportunities for reaching associ

168、ates across the business.Whether through on-site desktops or on-the-go mobile devices,more than 450,000 associates across the U.S.and Canada have access to Yammer.With more than 650 active communities in the network,the digital hub links associates to both their local co-workers and corporate suppor

169、t across North America.It serves as a central hub to recognize associates for living our values,promote company news,cultivate connections between front-line and corporate associates and fuel the orange-blooded entrepreneurial spirit thats part of what drives our business every day.Success Sharing a

170、nd Compensation Enhancements Our philosophy of taking care of our people and motivating them to deliver a superior customer experience shapes our profit-sharing program for hourly associates.Success Sharing provides semi-annual cash awards for performance against our business plan,including sales an

171、d productivity goals.The program has granted awards totaling more than$1 billion to associates over the last two years.The outstanding performance of our associates in fiscal 2021 enabled 100%of stores to qualify for Success Sharing in both the first and second half of the year.This resulted in reco

172、rd award payments to our non-management associates of approximately$739 million.We also continue to make investments in our associates recent actions include our decision at the end of 2020 to transition our COVID-related enhanced associate pay and benefits to permanent compensation enhancements for

173、 front-line,hourly associates.In addition,we continued matching contributions under our FutureBuilder 401(k)Plan,and merit-based salary increases.Associate engagement is the emotional connection associates have to our company and our goals.It is vital to The Home Depots culture and success.Associate

174、 EngagementDID YOU KNOWIn 2021,Home Depots Yammer network was recognized as the#1 Yammer network among large organizations in the Americas by SWOOP Analytics.ASSOCIATE ENGAGEMENT Our People:Pay Equity The Home Depots commitment to doing the right thing and taking care of our people extends to our pa

175、y practices.To ensure that we are paying our associates fairly,we conduct an annual analysis of our pay and compensation practices for our U.S.associates(who comprise approximately 89%of our workforce),in consultation with expert third-party firms following industry-leading standards.Our review of o

176、ur U.S.associates total W-2 compensation for calendar year 2021,including base pay,cash bonuses,and stock,showed that,adjusting for relevant factors such as tenure,position,location and hours worked,associates who identified as female earned approximately 101%of what male associates earned,and assoc

177、iates who identified as members of a racial or ethnic minority earned approximately 99%of what non-minority associates earned.Not adjusting for those factors,our analysis showed that the median annualized W-2 pay for U.S.associates who identified as female was 98%of the median for men,and that the m

178、edian pay for racial/ethnic minority associates in the U.S.was 94%of the median for non-minority associates.The Leadership Development and Compensation Committee of the Board of Directors,which is tasked with providing oversight of our human capital management strategy and our diversity and inclusio

179、n efforts,receives regular updates on these findings.We will continue to strive to ensure equal pay across our organization.26The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessReporting FrameworkTable of ContentsInternational Retail OperationsOperate Sus

180、tainablyASSOCIATE RESOURCE GROUPSOur associate resource groups promote inclusion and support diversity.Associate Resource GroupsAssociates with DisabilitiesAsian and Pacific Islander AssociatesMilitary-AffiliatedAssociatesAfrican AmericanAssociatesHispanic and LatinoAssociatesLGBTQ+AssociatesWomen A

181、ssociatesOur associate resource groups(ARGs)are led by associates and sponsored by executive leaders.They drive associate engagement and promote inclusion across our company through fostering professional development,raising cultural awareness,celebrating diversity,and community outreach.We have sev

182、en U.S.ARGs,each supporting the companys business objectives and policies,particularly those related to developing our associates,creating diversity awareness and engaging diverse community partners.In 2021,we revised our ARG structure to further support the career development of associates who volu

183、ntarily lead these groups.We also achieved our goal of expanding associate resource groups to include more of our people.We hosted more than 70 ARG events virtually in 2021 to celebrate diversity,raise cultural awareness and foster professional development.We continue to expand outreach to associate

184、s to encourage their engagement in our ARGs.DID YOU KNOWThe Home Depot was named to Forbes list of Best Employers for Diversity in 2019,2021 and 2022.SPOTLIGHT:C.A.R.E.TALKSWe launched Caring Conversations in 2020 in response to the unrest in our community.The virtual events for all associates inclu

185、ded panel discussions where senior company leaders shared candid stories about race and ethnicity,and experts from outside our company educated associates about civil rights,laws,voting and more.In 2021,Caring Conversations evolved into C.A.R.E.Talks,a series of diversity discussions that Champion A

186、wareness,Respect,and Equity for all associates.These discussions include external speaker series,panel discussions,and small group listening sessions,and we occasionally partnered with our Associate Resource Groups on elevating keynote speakers in this format.At the enterprise level,we hosted 13 C.A

187、.R.E.Talks in 2021.These diversity discussions will be expanded to include additional formats in 2022.Comments from Associate Feedback Survey:Supplier Diversity Panel:“The impact HD and many of its suppliers have on making their associates have better lives is inspiring and heartfelt.Love working fo

188、r and with folks that care.Pun intended.”HBCU Panel:“The alignment between THDs values and the values instilled in students attending HBCUs resonated with me.As an HBCU alum,my experience was similar to the panelists experiences,i.e.earning a values-based education in addition to the academics.”Kens

189、 Krew Program:“The sheer pride that poured out of that young man and his mother literally made my day.We take for granted sometimes the roles we have and this was a nice reminder.”(Learn more on Page 59)27The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur Busines

190、sReporting FrameworkTable of ContentsInternational Retail OperationsOperate SustainablyLEARNING&DEVELOPMENTThe Home Depot strives to build a learning-rich workplace where associates and leaders are prepared to succeed,motivated to serve our customers well and given opportunities to grow.Our Home Dep

191、ot University,now in its 12th year,is critical to the development of values-based leaders who take care of our associates,customers,and communities.In 2021,we continued to respond to the unique and ever-changing challenges related to the pandemic by serving up relevant content and leveraging multipl

192、e learning platforms.E-learning:Media-rich,self-directed learning offers focused,interactive activities and actionable feedback.Virtual Instructor-led Experiences:Engaging virtual training that allows two-way communication,group activities,and skills practice,provides consistent and timely developme

193、nt to multiple audiences totaling 94,000 completions across the company in the U.S.Mobile Learning:On-demand content and activities inside the workstream improve learning retention and guide associates in assisting customers.Online Resources:Our library of online,on-demand resources includes videos,

194、courses,book summaries,reference materials,and performance support tools for associates to continue their development journey.We support associate training at all levelsof the career journey.As a result of our efforts,this year we achieved our goal to create career advancement opportunities for 50,0

195、00 front-line associates over a five-year period.In addition,we continue to strengthen our connection to our customers by expanding trainingopportunities for them.New-in-Role:A blend of instructor-led training,e-learning,on-the-job activities,leader involvement,and new associate coaches supports a s

196、uccessful assimilation.Ongoing Development:Continuous development of technical and leadership skills delivered in multiple ways and made up of both universal and role-specific content.This development ensures associates at every level continue to evolve their skills to meet the demands of a rapidly

197、changing and increasingly complex environment.Advanced Development:Programs that prepare select associates to lead effectively at the next level.These programs prepare experienced leaders for the challenges theyll face as they move to higher-level roles.Customer Training:Homeowner 101 and Do-It-Your

198、self live virtual workshops that meet customers evolving home maintenance and improvement needs.Over 71,000 customers attended workshops in 2021.Trades Training:To help solve the skilled labor shortage and support our Pro customers,over 590 customers completed the Path to Pro training program.This p

199、rogram is designed to provide knowledgeable and qualified candidates to our loyal Pro customers in need of skilled labor.Our learning and development programs expand skills and capabilities so associates can master their current roles and prepare for future ones.Learning&Development90%of our U.S.sto

200、re leaders started as hourly associatesApproximatelyDID YOU KNOWAssociates achieved 27 million learning completions in 2021.Technology:Expanding the use of existing learning platforms and adding new ones We provided more mobile learning opportunities for associates adapting to evolving procedures,pr

201、otocols and customer needs.We embedded how-to training inside operational systems for easily accessible,needs-based performance support.CHECK IT OUT22-year associate,Kisha Perez,discusses how Home Depots focus on teaching and development helped her go from part-time cashier to department supervisor.

202、28The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessReporting FrameworkTable of ContentsInternational Retail OperationsOperate SustainablyBENEFITSAssociates are at different life stages,and our benefits hub guides them to the right resources.With one cli

203、ck,associates can find support for wherever they are on lifes journey.For example,the money module is the place to go for help with personal finance education or retirement planning.The elders module provides guidance on everything from finding caregivers for aging parents to negotiating the complex

204、ities of Medicare.In 2021,the COVID-19 response team continued to support associates as they faced challenges created by the pandemic,as detailed on Programs&Tools FutureBuilder 401(k):Associates can save for the future while taking advantage of tax savings.Eligible associates who contribute to the

205、plan get up to 3.5%of eligible compensation in matching contributions from the company.Employee Stock Purchase Plan(ESPP):Twice-a-year plans provide a 15%discount on Home Depot stock.Associates who enroll may set aside up to 20%of eligible pay(up to$21,250 annually)to purchase stock.Personal finance

206、 education:All associates have access to a suite of online webinars,activities,tools and resources designed to help them increase financial knowledge and build the confidence that can help relieve money-related stress.Alight Financial Advisors:Associates have access to independent advisory services

207、to help them gauge whether theyre on track for retirement.Insurance:To prepare for the unexpected,associates have access to policies for medical care,disability,life,home,auto and pet health insurance.Identity theft protection:Associates are automatically enrolled in free AllClear ID identity repair

208、 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.Our people

209、make The Home Depot successful,and its our responsibility and privilege to take care of them.Associate Assistance CARE/Solutions for Life:Our free and confidential assistance program helps associates manage personal and work-life challenges.Licensed counselors and medical professionals are available

210、 by phone 24/7/365 to our people and their household members,including spouses,domestic partners,other relatives and roommates.Program team members assist with specific interventions that meet the everyday needs of our workforce from childcare to eldercare,marital concerns,bereavement,emotional stre

211、ss,legal or financial concerns and more.In addition,CARE/Solutions for Life is available to assist our management teams dealing with disaster relief and responding to traumatic events in the workplace or community.Family Support Paid parental leave:Associates with at least one year of service who ar

212、e having a 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.BenefitsContinues on next pageYears Ahead:Associates have access to resources to

213、plan care for their elders,including referrals to memory and hospice care facilities and independent and assisted-living communities.Adoption assistance:The Home Depot reimburses certain adoption-related expenses to assist eligible associates.Rethink:Best-practice resources and training help associa

214、tes 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.Milk Stork:Associates who are breastfeeding and

215、 must travel for work can use this specialized delivery service to send breast milk home to their babies.Back-Up Care:Weve partnered with Bright Horizons to offer eligible associates back-up care when:Regular caregiver/stay-at-home spouse is unavailable Associate is between childcare or adult/elderc

216、are Childs regular childcare center/school is closed Associate is transitioning back to work after returning from leave Child or adult/elder relative is ill or needs assistance Associate or spouse is recovering from surgery Sittercity:An extensive database of background-checked babysitters,nannies,e

217、lder companions,pet sitters and housekeepers is available to associates.29The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessReporting FrameworkTable of ContentsInternational Retail OperationsOperate SustainablyBenefitsMetLife Legal Services:This legal-as

218、sistance voluntary benefit provides consultation and document review for issues from adoption to wills,powers of attorney,divorce,nursing home agreements and more.Educational Assistance EdAssist:Associates have access to academic and college financial advisers to assist them in reducing the time,cos

219、t and stress of pursuing their educational goals.This program also includes access to tuition discounts at more than 200 educational institutions nationwide.Orange Scholars:The Homer Fund offers scholarships to qualified dependents of hourly associates based on financial need,academic performance,co

220、mmunity involvement and leadership.Financial need is the highest consideration.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.Healthy Life Aaptiv:Offering thousan

221、ds of workouts,this trainer-led fitness app works for all fitness levels.On-demand virtual classes offered at no cost to associates help boost mental and physical health through yoga,meditation,sleep support,running,strength training and more.Take Care Of You:To assist with the unique challenges bro

222、ught on by COVID-19,this free-to-associates wellness hub provides resources to help associates keep it all in balance and focus on their mental and physical health and well-being.Flu prevention:Free flu shots are available for associates to protect them and our customers during cold and flu season.H

223、ealth screening:Associates have access to biometric screenings with their personal physicians or at a Quest Diagnostic Patient Service Center.Tobacco cessation:Personalized,one-on-one strategies and support are available at no cost to associates to help them mentally and physically prepare to quit.2

224、4/7 care:Associates and family members they care for including elderly parents have access to Teladoc virtual doctors for minor illnesses and behavioral health support from home anytime,including after hours,on weekends and during holidays.Time Off Paid sick leave:Salaried,salaried non-exempt,full-t

225、ime hourly and part-time hourly associates are all eligible for paid time off for health or personal situations that require time off from work.The amount of paid sick leave varies based on the associates position(e.g.,salaried vs.hourly)and geographic location.Vacation:Salaried,salaried non-exempt,

226、full-time hourly and part-time hourly associates are all eligible for paid vacation time off.The amount of vacation time off is based on length of service with The Home Depot.CHECK IT OUTIn March 2021,associate Keoki Souza purchased his first home.“As a result of my career with The Home Depot,Ive be

227、en able to help provide the life my family deserves.”Health care support team:Included Health helps associates navigate health care for themselves and their family members.Associates have 24/7 access to a Health Care Support Team,where they can find in-network doctors,get help tackling a complicated

228、 bill,or receive a medical second opinion.The program is free to associates.AccessHope:The Cancer Support Program through AccessHope connects associates and their family members to leading experts from City of Hope,a renowned,comprehensive cancer center,to support them through their cancer journey.I

229、ts provided at no cost to associates.30The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessReporting FrameworkTable of ContentsInternational Retail OperationsOperate SustainablyMilitary service members and military spouses are resilient,resourceful and tea

230、m-minded.Supporting them is the right thing to do for our communities and our company.FOCUSING ON THOSE WHO SERVESPOTLIGHTHonoring those who serve or who have served us is fundamental to our ESG pillar of Strengthening our Communities.Our focus on the military community and their families includes t

231、he tens of thousands of veterans and military spouses in our workforce.Through our recently expanded Military Relations department,we look for ways to make The Home Depot an employer of choice for military members,veterans and their families.One of those veterans is Pete Capel,who has created a 30+y

232、ear career with The Home Depot.Like his father who served in the Navy during WWII,Pete joined the Marine Corps in 1983.During his 7-year military career maintaining radar systems,he was promoted to the rank of sergeant and was awarded the Navy Achievement Medal twice,an award that recognizes outstan

233、ding achievement or meritorious service and is recognized across all military branches.After Pete left the Marine Corps in 1990,he began to think about what was next in his life.Thats when his story with The Home Depot started in the most unlikely of ways.Pete was getting his hair cut when Bernie Ma

234、rcus and Arthur Blank,Home Depot co-founders,appeared on TV.As they were talking about how the company got started,Pete looked up and saw that there was a Home Depot store across the street.After his appointment ended,Pete walked over and immediately applied for a job.Pete was originally employed as

235、 a store sales associate in the electrical department.Since then,hes held positions of increasing responsibility over his 30-year career.Today,hes the vice president of field merchandising for the northern,southern,and western divisions.Just as Pete did more than 30 years ago,Richard Cranford and Am

236、inah Meho recently left careers in the Army and Air Force,respectively,and found new opportunities with The Home Depot.Through programs like Hiring our Heroes,The Home Depot partners with organizations that support military members who are transitioning into a second career and can help veterans fin

237、d a role they enjoy.Made-to-Fit Benefits The Home Depot offers specialized benefits for veterans,military service members and military spouses who are Home Depot associates:Military leave of absence for reservists,National Guard,and active-duty associates Differential pay when activated or deployed

238、Fellowships for transitioning service members Military family international leave of absence Military Spouse Relocation program for hourly associates Over 5,000 remote eligible jobs that can be relocated with military moves Support resources,such as counselors,financial advisers and childcare assist

239、ance directories CHECK IT OUTThe Home Depot supports associates who are spouses of military members with flexible hours to help address the unique challenges the military might bring.Hear from military spouse and 6-year associate Alexis(Lexi)Strom on how The Home Depots flexible hours helped her bal

240、ance family responsibilities during the pandemic.DID YOU KNOWThe Home Depot recently enhanced its military discount benefit to include all U.S.veterans,active service members and military spouses every day,reaffirming the companys commitment to serving the U.S.military community nationwide.Learn mor

241、e here.Benefits:SpotlightPete CapelVice President of Field Merchandising for Northern,Southern,and Western Divisions31The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessReporting FrameworkTable of ContentsInternational Retail OperationsOperate Sustainably

242、The Homer Fund provides financial assistance to associates facing unexpected hardships,helps associates children pay for college and supports our people with financial information to help them prepare for emergencies.Grant Programs Direct Grants help associates facing emergencies and tragic events,s

243、uch as the death of a parent or child,natural disaster,illness or injury,a spouses layoff and more,up to$10,000.Matching Grants are a unique way The Homer Fund recognizes the generosity of associates toward one another.When associates collect donations for a co-worker in need,their money is matched

244、by The Homer Fund$2 for every$1 associates collect,up to$5,000 or the associates actual need.Matching Grants may be used for qualifying expenses that are ineligible for Direct Grants.They also may be used to complement Direct Grants,providing additional support to associates in need.Scholarships for

245、 Associates ChildrenThe Homer Funds Orange Scholars program offers scholarships to qualified children or dependents of hourly associates based on financial need,academic performance,community involvement and leadership.Financial need is the highest consideration.Since the Orange Scholars launch in 2

246、006,the program has awarded scholarships to more than 15,000 recipients,totaling$36 million.Financial PreparationIn addition to our grant and scholarship programs,we provide associates with access to a range of Homer Fund-backed resources to support their financial well-being and decision making,inc

247、luding how to save for emergencies and protect themselves against fraud.Highlights In 2021,The Homer Fund continued to support our people in times of need:Nearly$18.8 million was awarded through Homer Fund grants 12 consecutive months of grant distributions related to natural disasters helped associ

248、ates cope with a variety of challenges 8,800+associates received financial assistance linked to the pandemic,hurricanes,wildfires and more Associate financial assistance included 358 grants totaling$1.2 million related to COVID-19 hardships,and 2,920 grants totaling$2.7 million for disaster recovery

249、 THE HOMER FUNDSince 1999,The Homer Fund grants totaling approximately$230 millionhave assisted approximately 164,000 associates facing unexpected hardships.A majority of Homer Fund contributions come from associates.Every dollar our people donate helps a co-worker in need.The Homer FundCHECK IT OUT

250、Learn how The Homer Fund touched lives through the generosity of fellow associates.#OrangeAtHeart 32The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessReporting FrameworkTable of ContentsInternational Retail OperationsOperate SustainablyASSOCIATE SAFETYTh

251、e Home Depot strives to provide the safest working and shopping environment for our associates and customers.A major component in the strategy is raising awareness of risks among both front-line associates and leaders.When our people are trained to recognize and correct hazards,our workplace is prim

252、ed for continual improvement.Safety Takes EveryONE In 2021 we launched an awareness campaign called Safety Takes EveryONE.This message exemplifies that everyone,at all levels of the organization,must contribute to the safety of our associates and customers.At the individual level of the campaign,eac

253、h associate is provided tools to avoid risk,with every decision made,resulting in everyday safety.Safety Takes EveryONE is our rally cry to remind associates that safety is their most important responsibility and allows us to send everyone home safely.The leader approach to Safety Takes EveryONE uti

254、lizes the acronym ONE.This second arm of the campaign focuses of our leaders efforts to increase awareness of the higher-risk injury categories.The O is for OverexertionWhether associates are handling product in a distribution center,receiving freight in a store,helping a customer load product into

255、their vehicle or delivering bulky product to a jobsite,lifting too much or too frequently can result in injury.To prevent these injuries,we ask our leaders to engage with associates to create sustainable habits centered on our Lift it Close to Home ergonomic program.This program reminds individuals

256、to minimize strain on their shoulders and back by anchoring the product lifted to their aprons Home Depot logo,promoting safer lifting techniques.The N is for New Hire Our focus is to ensure our newest associates are set up for safety success.Starting with their initial onboarding,we have simplified

257、 and prioritized safety training earlier in an associates experience to raise awareness around the riskiest tasks.We reinforce our onboarding program with monthly awareness topics and leader-driven engagements during the first six months of employment to allow associates to ask questions and provide

258、 feedback to improve safety.Safety Takes EveryONE requires leaders to engage with their associates early in their career to establish a positive safety culture.The E is for Equipment Equipment is essential to all areas of our business and it is paramount that it is operated in a safe manner.Safety T

259、akes EveryONE requires leaders to interact with associates through safety engagements focusing on the safe operations of both the driver and the associates working around the equipment.The results of these engagements are reviewed and shared with leaders to create a continuous improvement model.This

260、 heightened awareness drives innovation that will remove risk from our business and improve the safety within our stores and facilities.Safety is not one persons responsibility,Safety Takes EveryONE to create an environment that fosters feedback,empowers our associates and leaders to make the safest

261、 decision,and allows every associate and customer to go home safely to their loved ones every day.Our people are our most important assets.By focusing on workplace safety training and risk reduction,we help keep our associates and customers injury-free.DID YOU KNOWThe Home Depots lost time incident

262、rate was lower than industry averages for our retail class,according to data from the U.S.Bureau of Labor Statistics.4.894.0320194.25202020211.211.071.23201920202021RECORDABLE INCIDENT RATEWork-related injury that typically warrants medical care beyond store-provided first aid(per 200,000 hours)*LOS

263、T TIME INCIDENT RATEMore significant injury that results in time away from work(per 200,000 hours)*Associate Safety*Recordable and lost time incident rates for U.S.store associates.33The Home Depot 2022 ESG Report Greenhouse Gas Protocol Responsible Sourcing Wood Purchasing Policy Forest Stewardship

264、 Council U.N.Food and Agriculture Organization Eco Options/Eco Actions Chemical Strategy Energy Star WaterSense USDA National Organic Program Safer Choice GREENGUARD Leaping Bunny Science Based TargetsRESOURCESOPERATESUSTAINABLYWe strive to reduce our carbon footprint by improving the efficiency of

265、our store and supply chain operations,and by 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 products and packaging created with sustainability in mind.GOALS

266、of renewable or alternative energy by 2025Procure/produce335 megawatts40%Science-based target to reduce Scope 1&2 emissionsby 2030,50%by 2035Procure/produceequivalent to the needs for all Home Depot facilities worldwide by 2030100%renewable electricityEliminateEPS foam&PVC filmfrom ourprivate-brand

267、packaging by 2023OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessOperate SustainablyReporting FrameworkTable of ContentsInternational Retail Operations34The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessReporting FrameworkTable of Conten

268、tsInternational Retail OperationsOperate SustainablyThe Home Depot uses the GHG Protocol Corporate Accounting and Reporting Standard,which has been adopted by numerous companies worldwide to calculate metric tons of greenhouse gas emissions and efforts to reduce them.We continually review and refine

269、 our emissions measurements to reflect changes to our business and improvements in data collection and reporting.We participate in the CDP reporting process.CDP,formerly the Carbon Disclosure Project,is an independent,international,nonprofit organization that provides a global system for companies a

270、nd cities to measure,disclose,manage and share environmental information.Our latest score of A-from CDP reflects our leadership and high level of action on climate change mitigation,adaptation and transparency.PROTECTING THE CLIMATECARBON FOOTPRINTScope 1:Direct emissions from combustible sources an

271、d refrigerants totaled approximately 642,000 metric tons.Scope 2:Indirect emissions from purchasing electricity totaled approximately 1,007,000 metric tons.Scope 3:We are currently assessing our Scope 3 emissions.2021 RESULTSProtecting the Climate:Carbon FootprintBy driving efficiencies and investin

272、g in green energy,we reduced our absolute combined Scope 1 and 2 carbon emissions by approximately 172,000 metric tons in 2021.Under our science-based target goal linked to our annual CDP reporting,we have committed to reducing our Scope 1 and Scope 2 carbon dioxide emissions 2.1%per year to achieve

273、 a 40%reduction by 2030 and a 50%reduction by 2035.New this year,our annual GHG emissions and carbon intensities correspond to our fiscal year results,which will also be disclosed in our response to the annual CDP Climate Change questionnaire.Our results include data for HD Supply Holdings Inc.,whic

274、h we acquired on December 24,2020.In 2021,we decreased our Scope 1 and 2 carbon intensity.Our investments in efficiency helped us achieve a 21%reduction in the carbon dioxide emitted for each dollar of revenue we earned,compared to 2020.The Home Depot joined RE100 with our goal to produce or procure

275、 100%renewable electricity equivalent to the electricity needs for all Home Depot facilities by 2030.This action helps us move towards the companys emission reduction targets.CHECK IT OUT35The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessReporting Frame

276、workTable of ContentsInternational Retail OperationsOperate SustainablyPROTECTING THE CLIMATESTORE OPERATIONSRunning our stores more efficiently furthers both our business and sustainability goals.In 2021,we hit key milestones,including a 50%decrease in U.S.store electricity use since 2010.When we l

277、aunched our store electricity conservation efforts a few years ago,we anticipated reducing U.S.store electricity use 20%over a decade.But by tapping into technologies and closely tracking and analyzing use,we were able to save more electricity than we originally imagined.(See chart.)In 2021 alone,we

278、 reduced year-over-year U.S.store electricity use approximately 11%.We learned a great deal from the progress we made reducing electricity use in our stores,and now we are applying our experience and proven strategies to conserving resources in other areas of our business,including electricity use i

279、n our supply chain and water use in store irrigation.Our successful energy conservation efforts have helped us move closer to our goal of producing or procuring 100%renewable electricity equivalent to the electricity needs for all Home Depot facilities worldwide by 2030.LEDs Help Reduce Store Electr

280、icity Usage In 2021,we completed our multi-year project to upgrade U.S.stores to overhead LED lighting,retrofitting 383 stores in 2021 alone.Now LEDs light up nearly all our store aisles across the U.S.,Canada and Mexico.In the U.S.,we have invested approximately$230million in total capital expendit

281、ures onLED upgrades since 2018.Our U.S.stores with LEDs consume about 30%less electricity than similar stores withconventional lighting.Capitalizing on Solars Evolution Harnessing power from the sun is essential to our renewable electricity aims,and were making progress by buying electricity from la

282、rge-scale commercial solar farms.In 2021,Enel Green Powers Azure Sky began operating in Haskell County,Texas,west of Dallas,providing us with 75 megawatts of renewable electricity.We have agreed to purchase another 150 megawatts from companies building solar farms elsewhere in Texas.Once operating,w

283、e expect these commercial solar farms,in addition to our wind farm projects,to provide us with enough electricity to power the equivalent of more than 500 Home Depot stores.Protecting the Climate:Store OperationsBy conserving resources we reduce business costs and our companys impact on the environm

284、ent.Making Every kWh CountThe Home Depot reduced U.S.store electricity consumption 50%since 2010 through a multifaceted effort to find energy savings in every corner of the store.See our annual year-over-year progress below:2021201220112013201420152016201720182019Annual reduction in millions of kilo

285、watt hours(kWh)0501001502002503003504002020500Continues on next pageEnel Green Powers Azure Sky solar and storage plant in Texas began operating in 2021 and provides 75 megawatts of solar power to Home Depot stores.DID YOU KNOW36The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus

286、on Our PeopleOur BusinessReporting FrameworkTable of ContentsInternational Retail OperationsOperate SustainablyProtecting the Climate:Store OperationsOn average,fuel cells helped power 204 U.S.stores with more than 100%of their electricity needs annually.The energy capacity we purchase from the Los

287、Mirasoles Wind Farm in McAllen,Texas,is enough wind power to run 125 Home Depot stores.PROGRESS ON POWER800+U.S.stores participate in demand mitigation to optimize our electricity costs during peak demand and help local utilities better manage grid capacity.At 55 U.S.stores,on-site batteries store p

288、ower during off-peak times for use when demand spikes.Rooftop Solar Harvests Renewable EnergyWe also help our customers harness the power of the sun.In partnership with Sunrun,we help our customers create clean and sustainable electricity.CHECK IT OUTSeeing the potential to use soccer-field-size spa

289、ce atop our stores to harvest the suns power,we installed our first rooftop solar farm in 2014.By the end of 2021,solar farms operated on 76 Home Depot stores and one distribution center in the U.S.In 2022,were increasing our emphasis on rooftop solar by:Increasing the amount of roof space allocated

290、 to solarpanels at our storesExploring possibilities for adding solar panels atopmore distribution facilitiesA pilot program launched in 2019 showed us the potential of using smart irrigation systems to save water at our stores.We rolled out the technology to 164 additional stores in 2021;503 U.S.st

291、ores were using smart irrigation systems by the end of the year.On average,there is a 29%reduction in water used to irrigate landscaping,compared to stores with traditional timer-based irrigation systems.Heres how it works:In-ground sensors,real-time weather data and other data sources guide when sp

292、rinklers come on and how long they operate.So,a stores landscaped areas are watered according to plants needs,rather than the clock.Water Use Drops with Smart Irrigation37The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessReporting FrameworkTable of Conte

293、ntsInternational Retail OperationsOperate Sustainably1Added over 30 distribution centers-increasing speed and efficiency.2Moved approximately 6.9 billion cubic feet of products through our supply chain-a company record.3Reduced supply chain miles driven-despite moving record volumethrough our supply

294、 chain.PROTECTING THE CLIMATESUPPLY CHAINWe continue to make progress on our multi-year supply chain initiative to create the fastest,most efficient and reliable delivery network for home improvement products.When we announced our approximately$1.2 billion supply chain initiative in 2017,we could ha

295、ve never envisioned the disruption to the global supply chain because of the pandemic.Due to our supply chain investments,however,we have demonstrated our ability to navigate any environment.In addition,our supply chain investments have helped us move record amounts of product more efficiently.Despi

296、te seeing another year of record product volume move through our business,our new supply chain facilities helped us reduce the miles driven to get products from our vendors to our customers.Even as supply chain volume increased,the efficiencies we gained in our operations and our investments in gree

297、n energy helped us reduce our carbon intensity.Learn more on Page 34.We sell available space on our trucks and buy space from other companies,ensuring fewer underloaded trailers hit the road.That space sharing saves about 2 million driven miles a year.By partnering with suppliers to forgo pallets,we

298、 can stack products to the top of trailers,resulting in a reduction in the number of truckloads needed to transport some goods.WAYS WERE DRIVING SUPPLY CHAIN IMPROVEMENTSIn 2021,we installed hydrogen fuel cells at three U.S.supply chain facilities,giving us 15 locations with emissions-free fuel for

299、forklifts.We estimate these fuel cells helped us reduce electricity consumption by about 21 million kilowatt hours in 2021.By making our supply chain more efficient,we reduce business costs and the impact that our product distribution has on the environment.We do a technology-assisted assessment of

300、scheduled pickups and deliveries,then recommend optimized routes to reduce miles traveled,fuel consumed and trucks on the road.As we roll out our new distribution facilities,weve partnered with Plug Power to fuel some of our new facilitys material handling fleets,like forklifts,with zero-emission hy

301、drogen fuel.This is another way we are reducing our environmental impact while building a best-in-class supply chain.Optimization technology guides how we pack trucks or ocean-bound containers.We maximize the product load,reducing the number of truckloads and containers and overall emissions.Protect

302、ing the Climate:Supply ChainDID YOU KNOWWe participate in the U.S.Environmental Protection Agencys SmartWay program to collect and report greenhouse gas emissions data from corporate supply chains.The Home Depot is a seven-time recipient of the SmartWay Excellence Award.3 ECO-FRIENDLY SUPPLY CHAIN I

303、NNOVATIONS38The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessReporting FrameworkTable of ContentsInternational Retail OperationsOperate SustainablySOURCING RESPONSIBLYETHICAL SOURCINGWe owe it to our customers,associates and communities to further the c

304、ollective commitment to human rights,safety and environmentally sound practices through ethical sourcing.We engage our suppliers in this commitment by requiring them to produce products in factories that adhere to responsible sourcing standards.We report on our progress in an annual Responsible Sour

305、cing Report.Our Responsible Sourcing Standards mandate that suppliers and factories abide by all applicable international and local laws,rules and regulations in the manufacturing and distribution of merchandise or services provided to us.We conduct audits of factories around the world to ensure com

306、pliance with our responsible sourcing standards.Suppliers must maintain on-site documentation that demonstrates compliance with our responsible sourcing standards.They also must allow Home Depot associates and/or representatives full access to production facilities,worker records,production records

307、and workers for confidential interviews in connection with monitoring visits.We expect our suppliers to promptly correct any noncompliance,starting with timely preparation and presentation of a corrective and preventative action plan.We also re-audit supplier facilities,with the frequency depending

308、on their performance in prior audits.If suppliers fail to improve,we may terminate our business relationships with them.Equally important,we support factories that take action to create lasting social and environmental compliance programs.We encourage suppliers and factory workers to communicate con

309、cerns via processes outlined in our corporate Code of Conduct.Our responsible sourcing audits are designed to assess compliance in these areas:Laws and regulationsChild laborForced laborHarassment and abuseCompensationHours of workNon-discriminationFreedom of association andcollective bargainingHeal

310、th and safetyEnvironmentSubcontractingCommunicationBusiness ethicsMonitoring and complianceWe support suppliers that take action toward maintaining our collective commitment to human rights and safety in our supply chain.1,487232factoriesaudited for compliance at peak productionfactory auditsand 1,6

311、32 follow-up visits conducted in 39 countries under our responsible sourcing policy in 2021BY THE NUMBERS83subcontractorsaudited in 2021Internal Audit associates conduct annual audits to ensure our responsible sourcing program is effective and operating as expectedManagementresponsible for owning an

312、d managing risks and implementing actions to ensure responsible sourcing objectivesThird-Party Auditors conduct our responsible sourcing compliance auditsExecutive Leadership Teamsets the tone for our ethical standards and provides oversight and guidance,as neededHome Depot Global Sourcing Offices w

313、ork with our supply chain to ensure compliance with our standards THDs Responsible Sourcing Team dedicated associates focused on ensuring factories adhere to our standardsBoard of Directors and/or Audit Committee of the Board provides general oversight;receives annual progress report on and reviews

314、results of the annual internal audit of the responsible sourcing program Responsible Sourcing Startsat the TopSourcing Responsibly:Ethical Sourcing39The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessReporting FrameworkTable of ContentsInternational Retai

315、l OperationsOperate SustainablyCONFLICT MINERALS SOURCING RESPONSIBLYThrough our due diligence process,which aligns with guidance from the Organisation for Economic Co-Operation and Development,we received 100%participation from our in-scope private brands and proprietary-product Tier 1 suppliers.Si

316、xty-two percent of our in-scope Tier 1 suppliers indicated that one or more conflict minerals were necessary to the functionality or production of covered products,up from 32%in 2020.Of the smelters or refiners reported by these suppliers,only 48 out of a total of 311 uniquely identified smelters or

317、 refiners sourced conflict minerals from covered countries.Forty-three of these smelters or refiners were certified as DRC conflict-free by the Responsible Minerals Initiative,the London Bullion Market Association and/or the Responsible Jewellery Council.We continue to work closely with our supplier

318、s to ensure they implement responsible sourcing;obtain current,accurate and complete information about the supply chain;and encourage their smelters to obtain a“conflict-free”designation from an independent third-party auditor.We work with our suppliers to ensure they implement responsible sourcing

319、and encourage their smelters to obtain“conflict-free”designations.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.Sourcing Responsibly:Conflict MineralsOur company expects all s

320、uppliers that manufacture our products to provide appropriate information and conduct due diligence to enable our compliance with conflict minerals laws.We also expect these manufacturers to obtain products and materials from suppliers that are not involved in funding conflict in the Democratic Repu

321、blic of the Congo(DRC)and adjoining covered countries.We partner with our private brands and proprietary product suppliers whose products contain tin,tungsten,tantalum or gold(referred to as 3TG)to identify the source of any of these minerals in the supply chain.2021 ProgressAs detailed in The Home

322、Depots Conflict Minerals Report for the year ended Dec.31,2021,our efforts focused on collecting and disseminating information about the sourcing practices of our suppliers.We cataloged that information in a database using the conflict minerals reporting template developed by the Responsible Mineral

323、s Initiative.We report this data for the calendar year,rather than our fiscal year,in line with U.S.Securities and Exchange Commission(SEC)rules.Our in-scope Tier 1 suppliers decreased to 21 in 2021 from 91 in 2020 and from 71 in 2019.In 2021,as part of our annual assessment of products in scope,we

324、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.40The Home Depot 2022 ESG Report OverviewStrengthen Our CommunitiesFocus on Our PeopleOur BusinessR

325、eporting FrameworkTable of ContentsInternational Retail OperationsOperate SustainablySUSTAINABLE FORESTRYSOURCING RESPONSIBLYThe Home Depots focus on selling products made from sustainable sources of wood dates to 1994,when certified-sustainable wood shelving first arrived in our aisles.We recognize

326、 the environmental impact our company can have on the worlds woodlands by working with suppliers that adhere to set standards of forest management and tree species selection.To help protect endangered forests and support efforts to preserve timber for future generations,we first issued our Wood Purc

327、hasing Policy in 1999.Since then,we have continued to update this policy,and have worked to lead our suppliers to understanding and practicing sustainable forestry throughout the world.We know that responsible forest management is essential to protecting the health of our ecosystems,critical biodive

328、rsity and the more than one billion people who depend on forests for their livelihoods.The goal of our sustainable forestry efforts is to ensure timber and healthy forests remain available for future generations.We are proud of our ability to create positive change by encouraging sustainable forestr

329、y practices.We strive to better understand the social and economic effects that wood purchases have around the world,especially in regions with endangered forests.Over the years,we have focused our efforts to ensure the protection of forests at highest risk.While we sell less than 2%of the roundwood

330、 cut worldwide,we believe our efforts have had an outsized impact on the industry.We source approximately 86%from North America,approximately 8%from South America,approximately 3%from Asia,and less than 1%from each of Europe,Africa,and Oceania.We believe that through our ongoing work with suppliers

331、to sustainably manage forests and the commitments listed in our Wood Purchasing Policy,we have helped to expand forest land coverage in North America.Through the sharing of best practices with suppliers and ongoing engagement with stakeholders,we seek to build upon the progress weve made to protect

332、the worlds forests.The positive impact of our work with suppliers can be seen in our results.We also source lumber from a number of the largest forestry companies in North America,which work with sustainable forest management organizations like Forest Stewardship Council(FSC),Sustainable Forest Init

333、iative(SFI),Programme for the Endorsement of Forest Certification(PEFC),and American Tree Farm to ensure their trees are being sourced sustainably.Suppliers of ours like Mendocino Redwood Company(MRC )and Humboldt Redwood Company(HRC)seek to be examples of forest restoration and show how private forest management can protect and restore the ecological attributes of the forest,and whose forestlands