Canadian Human Resource Management
12018 Responsibility Report
A YEAR OF PROGRESS
2018 Responsibility
Report
2 2018 Responsibility Report
Overview Our OperationsOur People Our Products Our Business
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CONTENTS Overview 06 CEO Letter: Living Our Values 08 Our Approach 10 Doing Things Better Every Day 12 2017 Highlights 14 2017 Recognition
Our People 18 Diversity & Inclusion 24 Learning & Development 26 Associate Engagement 28 Associate Bene� ts 32 The Home Depot Foundation 34 Team Depot 35 The Homer Fund
Our Products 38 Eco Options 39 Chemical Strategy 44 Gardening
48 Water 50 Energy 51 Sustainable Packaging 52 Social & Environmental Responsibility 54 Sustainable Forestry 56 Con� ict Minerals
Our Operations 60 Carbon Footprint 62 Associate Safety 64 Smart Energy Use 68 Supply Chain 70 Waste Management & Recycling 72 Emergency Preparation & Response 74 Canada 76 Mexico
Our Business 80 Code of Conduct 82 Corporate Governance 84 Data Security 86 GRI Index
This Responsibility Report covers The Home Depot’s year of progress in 2017
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Overview Our OperationsOur People Our Products Our BusinessOur OperationsOverview Our OperationsOur People Our ProductsOverviewOverview
4
Overview
OVERVIEW
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RESOURCES
Targets & Performance
Resources & Reports
2017 Responsibility Report
Corporate Responsibility
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The Home Depot was founded on eight core values and a leadership construct that we call the inverted pyramid, which puts customers and front-line associates �rst. These symbols guide our actions every day, from how we treat our associates, customers and communities to how we run our operations. They are the cornerstones of our unique culture.
Throughout this Responsibility Report, you’ll see examples of how we’re living our values by offering innovative and environmentally friendly products to our customers. You’ll read about how we’re reducing our energy usage and driving ef�ciencies throughout our supply chain. And you’ll learn how we’re continuing our focus on diversity and inclusion to create a great place to work and shop.
A few highlights: Diversity & Inclusion: More than 50% of our new hires were ethnically diverse, and at the time of this report’s publication, we announced an updated parental leave policy that gives six weeks of 100% paid leave to all parents, plus an additional six weeks of 100% paid maternity leave to all birth mothers.
Workforce Development: In 2017, we launched a pilot trades training program for separating military members in partnership with the Home Builders Institute (HBI) to help create the next generation of skilled tradespeople. In March of this year, The Home Depot Foundation announced a $50 million commitment to train 20,000 tradespeople over the next 10 years.
LIVING OUR VALUES Community Support: We helped communities and associates during an unprecedented year for natural disasters. As part of the $63 million we granted overall to support our communities in 2017, The Home Depot Foundation gave over $4 million and volunteered thousands of hours to help communities affected by catastrophic hurricanes and wild�res. In addition, our employee-relief nonpro�t, The Homer Fund, assisted more than 6,000 associates who experienced evacuations, as well as damage or loss of their homes.
Environmental: In 2017, our stores used 23.5% less electricity than in 2010. This means we surpassed our goal to reduce store energy use 20% by 2020 — and did it three years ahead of schedule.
As part of our values, we encourage our associates to be entrepreneurial, innovative and creative, and the successes you’ll see in this report are a testament to their talent and dedication. We are proud of their work, even as we look ahead with the understanding that there’s much more to do.
Thank you for your interest in our progress and our plans for improvement. I hope you will �nd this report informative, and, as always, we welcome your feedback.
Craig Menear Chairman, Chief Executive Officer and President
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The Home Depot was founded on eight core values that guide our
everyday actions.
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As a retailer, we have relationships with a variety of stakeholders interested in how we’re running our business. Customers ask us questions when they walk into our stores or shop with us online. Citizens contact us with concerns. We meet with shareholders and non-governmental organizations (NGOs). We take part in industry efforts to raise awareness about the social and environmental responsibilities we all share.
These formal and informal interactions help shape our priorities. So does our regular materiality assessment, which gauges the impact of our business. Together, they create a framework that our Sustainability Council uses to measure our progress and design ways to improve. The Council, composed of representatives from different areas of the business, focuses on seven key areas (see right).
The Council meets twice a year and its chairman presents our sustainability strategy and activities to the Board of Directors annually. Our priorities and plans are communicated through our company structure from leaders to associates.
The process of evaluating the impact of our business is never complete. Technology, scienti� c developments, societal shifts and business innovations drive constant change. When we hear from concerned stakeholders, we take steps to educate them and monitor the issue or alter our path. We track and report on progress and set goals for improvement.
We will continue to rely on our relationships with stakeholders to identify and meet the challenges and opportunities before us.
Climate Change
Factory Audits
Energy Reduction
Natural Resources
Diversity & Inclusion
Chemical Concerns
Waste & Recycling
Areas of Focus
OUR APPROACH
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The Home Depot’s regular materiality assessment gauges the impact of our business.
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At The Home Depot, we continually seek ways to align our operational strategies with technology and product improvements. It’s a smart way to do business, and it also creates a more sustainable world. But our sustainability efforts extend beyond our operations and into customers’ homes. As the world’s largest home improvement retailer, we are in a unique position to source products and foster ideas that not only reduce our environmental impact, but also help millions of customers reduce their impact.
Our sustainability assessments expand in scope and complexity every year, yet we keep showing improvements. Our efforts help customers clean, repair, remodel and build in ways that are better for their homes and businesses, as well as for our planet.
The Home Depot’s merchant teams work with our suppliers across industries to embrace processes that have positive, lasting effects.
DOING THINGS BETTER EVERY DAY
We constantly look for ways to:We constantly look for ways to:
Jarvis shares knowledge of all things orange and green on THD’s Give Me an H podcast.
Rely more on sustainable resources
Use less water
Use less energy
Cut waste
Reduce distribution emissions
Reduce packaging and improve its sustainability
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In 2017, we published a Chemical Strategy detailing our commitment to reducing the indoor air quality impact of the household cleaning, paint, carpet and insulation products we sell. This year, we asked suppliers to exclude additional chemicals from household cleaning products.
We also reviewed our global wood-purchasing policy and added stricter requirements for wood sourced from the Amazon and Congo basins, Papau New Guinea and the Solomon Islands. Those requirements will take effect Sept. 1, 2018.
Our store operations team constantly strives for the complementary goals of improving ef� ciency and reducing our environmental impact. We seek alternatives such as wind, solar and fuel cells to reduce our emissions and encourage the continued development of cleaner energy. We’re closer to our goal of leveraging 135 megawatts of alternative and renewable energy by 2020.
Every day we open our doors determined to do things better — to build on our business success as we reduce our company’s and our industry’s environmental impact and improve the lives of people in the global communities we in� uence, support and serve.
Thank you for your time and interest in The Home Depot.
Ron Jarvis Vice President, Environmental Innovation
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PEOPLE Our
We granted
$63 million to support communities
in 2017
Over 50% of our new hires were
ethnically diverse, and more than 34% were women
More than 90% of store leaders began as hourly associates
Across the company, our associates speak
30+ languages
2017 HIGHLIGHTS
2017 HIGHLIGHTS Our core values and orange-blooded culture go beyond our stores to the communities we serve
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OPERATIONS Our
PRODUCTS Our
We exceeded 35% of our goal to help customers save
$2.8 billion in energy costs by 2020
through proper use of our products
We helped customers
save 79 billion gallons of water
through proper use of our water-ef� cient products
We eliminated enough expanded polystyrene (EPS) foam from our packaging to � ll
355 Greyhound buses
Stores used
23.5% less electricity than
in 2010
32% of the hazardous
waste we managed was recycled or reused
for energy
We helped customers recycle
1.1 million rechargeable batteries
We reduced greenhouse gases from U.S. logistics
by 310,680 metric tons, or nearly 8%, equivalent to taking
66,500+ cars off the road for a year
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2017 RECOGNITION
ENERGY STAR Retail Partner of the Year,
Sustained Excellence
SmartWay Excellence Awardee
Newsweek Green Ranking
WaterSense Partner of the Year,
Sustained Excellence
Innovative Retail Technologies Retailer Innovation Award
Fast Company 50 Most Innovative
Companies
National Retail Federation Top Retailer & Top E-retailer
S u
st ai
n ab
ili ty
B u
si n
es s
The Home Depot’s dedication to our people, customers, communties and shareholders earned recognition in 2017. Here are some of the organizations that noted our progress in sustainablity, diversity and inclusion and business innovation.
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RecruitMilitary Most Valuable Employer
for Military
Lawyers’ Committee for Civil Rights Under Law A. Leon Higginbotham
Corporate Leadership Award
Human Rights Campaign Corporate Equality Index
Best Place to Work for LGBT
U.S. Hispanic Chamber of Commerce
Million Dollar Club
Omnikal Top 50 Corporation
for Inclusion
Military Times Best for Vets Employer
Military Friendly Employer & Spouse
Employer Award
Mogul Diversity & Inclusion
Innovator
National Coalition for Homeless Veterans Outstanding Corporate
Partner Award
C o
m m
u n
it y
& D
iv er
si ty
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OUR PEOPLE
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RESOURCES
Diversity & Inclusion
Military Transition Portal
Supplier Diversity
Retool Your School
Associate Resource Groups
The Home Depot Foundation
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Strengthening our business by embracing our differences
Diversity is good for our communities, and it’s good for our business. Differences in thought, style, culture, ethnicity, age, gender orientation and experience are invaluable assets. Having a wealth of perspectives and experiences helps us make smarter strategic decisions, connect with our customers and build a workplace that attracts and retains talented associates.
We are committed to a culture that welcomes and accepts differences. For us, diversity re� ects our core values. We embrace it by integrating inclusive practices into our business processes, engaging and developing associates, building partnerships with diverse suppliers and supporting diversity in the communities we serve.
DIVERSITY & INCLUSION
Diverse associates give THD a
92% favorable rating on commitment to
employing diverse individuals
100,000+ Small and diverse businesses supply
30+ languages
Learn more about our inclusive practices and how they align with The Home Depot’s core values.
VALUING PEOPLE’S BACKGROUNDS GIVES YOU DIFFERENT POINTS OF VIEW.
NUMBERS By the
of our SKUs
Across the company, our associates speak
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Our inclusive practices — from whom we hire to the product selection on our shelves — make The Home Depot a great place to work and a great place to shop.
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Hiring We understand that we succeed through people. Our diverse workforce of more than 400,000 associates strengthens our competitive advantage, maximizes shareholder investment and bene�ts the communities we serve. Our workforce is more ethnically diverse than the U.S. working population, based on a comparison with U.S. Department of Labor data. We continue to make progress in our efforts to increase representation in our executive ranks. Here are some of the ways we foster an inclusive workplace:
• Our chief diversity of�cer provides focused leadership in developing a workplace where all associates are valued, respected and supported in doing their best work.
• We have a section of our corporate website dedicated to diversity, and we regularly participate in local and national career fairs that attract diverse job candidates.
Retention All employees prosper through our robust development opportunities and bene�ts, but we structure some programs speci�cally to support workforce diversity. Here are a few examples:
DIVERSITY & INCLUSION
• We connect with veterans and their spouses through our military transition portal. More than 35,000 veterans are employed by The Home Depot.
• Our University Relations program recruits interns from diverse backgrounds. In 2017, more than 220 students participated in our summer internship programs across 10 business areas.
• We use social media, traditional advertising in multicultural markets and other outreach to target prospective associates.
• Respect training is part of all associates’ curriculum. Our Store Support Center leader development curriculum includes inclusion and unconscious bias training.
• Our Leaders Inclusion Network (Lead-IN) empowers associates to lead inclusively by engaging and championing diverse talent. Our Women in Leadership curriculum is among the developmental content available to associates under Lead-IN. • Our SSC mentoring circles foster inclusion. More than half of the participants are female, and more than half are ethnically diverse. • Tuition reimbursement includes learning other languages. • Medical coverage includes transgender bene�ts.
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DID YOU KNOW? In 2017, over 50% of our new hires were ethnically diverse, and more than 34% were women.
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3,000+ small and diverse
businesses among our suppliers
$6 billion+ spent with small and diverse
suppliers in 2017
$18 billion+ spent with these suppliers over
the last three years
NUMBERS By the
We maintain memberships, participate in trade shows and provide sponsorship support to a number of diverse business organizations, including:
• Minority Business Development Agency • National Center for Indian Enterprise Development • National Gay and Lesbian Chamber of Commerce • National Minority Suppliers Development Council • National Veterans Small Business Engagement • U.S. Hispanic Chamber of Commerce • U.S. Pan-Asian American Chamber of Commerce • Women’s Business Enterprise National Council
DIVERSITY & INCLUSION Supplier Diversity We provide meaningful business opportunities for minority-, veteran- and female-owned businesses, as well as small businesses. More than 100,000 SKUs are provided by small or diverse suppliers. They enable us to offer innovative products and services, meet the needs of our diverse customer base and support economic growth in the communities we serve.
Jelmar, known for brands like the eco-friendly CLR line, has transformed under the direction of three generations of the Gutterman family. Today, the company is a certi� ed woman- owned business led by Chief Executive Of� cer Alison Gutterman, whose grandfather, father and uncle started the company in 1949.
Gutterman said THD is a strong partner because we showcase Jelmar’s environmental focus. “It demonstrates their commitment to environmental sustainability and concern for the products they sell that impact consumers’ daily lives.”
Spotlight: Family-owned Jelmar focuses on sustainable products
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Community Partnerships Our local and national community partners represent the diversity of our associates and customers. To further The Home Depot’s commitment to promote inclusion, develop talent and engage with diverse communities, we strategically partner with aligned organizations, including:
• 100 Black Men of Atlanta • American Corporate Partners • Catalyst • Executive Leadership Council • Georgia Diversity Council • Hispanic Association on Corporate Responsibility • Human Rights Campaign • National Association for the Advancement of Colored People • National Association of Asian American Professionals • National Action Network • National Association of Chinese Americans • National Urban League • Network of Executive Women • Rainbow PUSH Coalition • The Latin American Association • The Martin Luther King Center for Non-Violent Social Change • Trumpet Awards Foundation • Urban League of Greater Atlanta • United Negro College Fund
increase in school participation in 2017— 72 HBCUs in all
Discover how Retool Your School helped build an eco-classroom at Florida A&M University.
$360,000 awarded in 2017 for campus improvement projects
44%
490 grants awarded to HBCUs since the program’s inception in 2010, totaling $1.8 million
IT’S A CATALYST FOR RALLYING THE SPIRIT OF THE COMMUNITY.
Retool Your School Our hands-on Retool Your School program provides campus improvement grants to historically black colleges and universities (HBCUs) across the United States.
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Empowering associates to grow with our company
The 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 learning and development programs expand their skills and capabilities so associates can master their roles, which ultimately leads to great customer experiences.
We develop our associates and leaders using:
• E-learning: Media-rich, self-directed learning offers focused, interactive activities and actionable feedback.
• Instructor-led experiences: Immersive training at our Atlanta SSC centers on business acumen, technical skills and leadership skills for new leaders in critical positions.
• Online resources: Our library of online, on-demand resources includes videos, courses, book summaries, reference materials and performance support tools.
• Executive development: Advanced business and leadership training empowers experienced leaders to develop strategic business approaches and prepare for higher-level roles.
LEARNING & DEVELOPMENT More thanNUMBERS
By the
90% of store leaders began as hourly associates
That adds up to
7 million hours of associate training
Associates completed nearly
22 million training courses in 2017
Human resources leader Tim Hourigan explains our orange- blooded culture on THD’s Give Me an H podcast.
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We support growth and development at every phase of the associate journey, because great customer experiences start with great associate experiences.
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The Home Depot is always looking for ways to understand and harness the power of leadership. A trend that kept emerging from operational data was that the most highly engaged stores were headed by strong leaders. While this wasn’t surprising, the challenge was how to de� ne — and then replicate — the leadership qualities that foster engagement and success.
Our internal research identi� ed four Leader Behaviors, Respect, Inspire, Develop and Celebrate, as being vital to creating highly engaged teams that are empowered to go above and beyond for our customers. The four Leader Behaviors are now integrated into our leaders’ development programs and are a core part of our Voice of the Associate survey. Associates are able to provide feedback on these behaviors, and 75% have a favorable view of how their leaders demonstrate these qualities.
Spotlight: Measuring leadership success
Over 80% of associates report a strong commitment to their jobs, their leaders and the company.
ASSOCIATE ENGAGEMENT Building a great place to work
We create an engaging and inclusive workplace by asking for and acting on associate feedback. We value how our differences contribute to uni� ed success. And we enable associates to share in the company’s � nancial achievements.
Voice of the Associate Survey Our annual survey helps us determine how emotionally connected our associates are to their jobs, leaders and company. The most recent results were uniformly favorable, further supporting an increase in associate commitment that we have noted over the last several years. We use the results to help stores, warehouses and other locations improve associate and customer experiences. Our leaders also use the data for companywide assessments.
DID YOU KNOW?
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Associate Resource Groups We engage associates and support an inclusive culture through associate resource groups (ARGs) connected to a single aspect of diversity. Championed by executive sponsors and advisers, each ARG highlights our commitment to diversity by engaging associates in professional development, awareness activities and community outreach. Our ARGs support the company’s business objectives and policies, particularly related to developing our associates, creating diversity awareness and engaging diverse community partners. Over 60% of our Store Support Center associates belong to an ARG.
Success Sharing 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 and productivity goals.
The outstanding performance of our associates in fiscal 2017 enabled 99% of stores to qualify for Success Sharing in both the first and second half of the year. This resulted in bonus payments to our non-management associates of approximately $256 million.
DID YOU KNOW? Success Sharing has totaled more than $1 billion for associates over the last fi ve years.
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ASSOCIATE BENEFITS Caring for our company’s greatest asset — our people
Our people are our biggest competitive advantage, and it’s our responsibility and privilege to take care of them. We do this by offering an array of programs to meet the needs of our associates and their families.
Financial Programs & Tools FutureBuilder 401(k): Associates can save for the future while taking advantage of tax savings. Eligible associates who contribute at least 5% of their paychecks to the plan get up to 3.5% 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 education: All associates have access to the Momentum onUp Financial Con�dence Program. Momentum onUp consists of a suite of online webinars, activities, tools and resources leading participants through an eight step program. Momentum onUp is designed to help associates increase knowledge and relieve �nancial stress by building �nancial con�dence.
Associate Assistance CARE/Solutions for Life: Our free and con�dential employee assistance program helps associates manage personal and work- life challenges. Licensed counselors and medical professionals are available by phone 24/7/365 to help associates and their household members, including spouses, domestic partners, other relatives and roommates. Program team members assist with speci�c interventions that meet the everyday needs of our workforce — from childcare to eldercare, marital concerns, bereavement, emotional stress, legal or �nancial 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.
Identity theft protection: Associates are automatically enrolled in free AllClear ID identity repair services, and they can sign up for additional proactive identity monitoring for free. Discounts: Associates receive special rates on a wide variety of everyday goods and services — from home and auto insurance to mobile phone service, roadside assistance, brand-name products and more. Commuter benefits: Eligible associates who travel to work using public transportation or van pools can save by deducting a portion of commuting expenses from paychecks on a before-tax basis.
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DID YOU KNOW? Associates saved more than $16 million in 2017 through THD discounts, including an average annual savings of $300 on mobile phone bills.
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Family Support CareDirect: Prescreened, self-selected candidates aid associates with child and elder care needs, as well as services like dog-walking and pet-sitting while on vacation.
Adoption assistance: The Home Depot reimburses certain adoption-related expenses to assist eligible associates.
Pet insurance: Nose-to-tail coverage for pet health needs includes routine care, shots, exams and unexpected expenses from illnesses and injuries.
Rethink: Best-practice resources and training help associates support their children with developmental disabilities or challenges with learning and behavior. The comprehensive program provides access to easy-to-follow videos, custom learning plans, a training center and one-on-one sessions with licensed experts.
Backup care: We’ve partnered with Bright Horizons® to offer eligible associates backup care when:
• Regular caregiver/stay-at-home spouse is unavailable • Associate is between childcare or adult/eldercare • Child’s 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 is on business travel or relocating • Associate or spouse is recovering from surgery
Educational Assistance EdAssist: Associates have access to academic and college � nancial advisers to assist them in reducing the time, cost and stress of pursuing their educational goals. This program also includes access to tuition discounts at more than 200 educational institutions nationwide.
Over 53,000 associates received more than $136 million in tuition reimbursement over the past 13 years
ASSOCIATE BENEFITS
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Healthy Life Health challenge: Our annual health challenge encourages associates to take action to improve their health, feel better and have fun. Associates set personal goals and compete to win prizes.
Flu prevention: Free � u shots for associates protect them and our customers during cold and � u season.
Weight Watchers: Associates and their spouses get guidance and resources to help them live healthier — including 24/7 access to expert and community support.
Health screening: Associates have access to biometric screenings on-site or at a Quest Diagnostic Patient Service Center.
Tobacco cessation: Personalized, one-on-one strategies and support help associates mentally and physically prepare to quit.
Sleepio: Personalized program helps associates discover their sleep scores and reach their sleep goals, so they can be at their best at home, work and in the community.
24/7 care: Associates have access to virtual doctor visits from home anytime, including after hours, on weekends and during holidays. They also may receive a second opinion through Grand Rounds.
annual health screenings
NUMBERS By the
100,000+ associates and spouses get
We began our annual health challenge in
2011 25,000+
associates and spouses have
quit using tobacco since 2009
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Investing in local communities
The Home Depot Foundation works to improve the homes and lives of U.S. veterans, train skilled tradespeople to � ll the labor gap, and support communities affected by natural disasters. Our Foundation, a registered 501(c)(3) public charity, provides � nancial support that has bene� ted people in more than 3,800 cities in the U.S. since 2011. We partner with thousands of nonpro� t organizations to extend the Foundation’s reach into communities.
THE HOME DEPOT FOUNDATION
Meet Bernardo Romero, a Korean War veteran receiving support from The Home Depot Foundation and Meals on Wheels.
$3 million in 2017 to help communities
affected by disasters
$227 million+ to veteran nonprofi t partners since 2011
$48 million+ hometown of Atlanta
since 2011
NUMBERS By the
I LOVE BEING IN MY HOUSE. YES, I DO.
The Foundation has awarded
The Home Depot Foundation gave
has been distributed in our
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In 2017, The Home Depot Foundation launched a pilot trades- training program at two U.S. military bases. Trainees are military members completing their service; they pay no fees to participate in the 12-week pre-apprenticeship, which combines work-based learning with technical and academic skills. The Foundation partnered with the nonpro� t Home Builders Institute to create the program, using a Department of Labor-recognized curriculum with an average job placement rate higher than 90%.
“We wanted to bring shop class back,” said Shannon Gerber, executive director of the Foundation. “We’re thrilled to train next- generation plumbers, electricians, carpenters and beyond. It’s a true honor to assist separating service members as they transition to civilian life and into successful careers in the trades.” The program will roll out to military bases across the U.S. in 2018. It’s part of the Foundation’s $50 million commitment to train 20,000 tradespeople by 2028 to help � ll the skilled labor gap.
WE WANTED TO BRING SHOP CLASS BACK
Shannon Gerber Executive Director of The Home Depot Foundation
Spotlight: Training veterans for the trades
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Offering hands-on assistance to those we serve
Team Depot is a force of 400,000 orange-blooded volunteer associates led by 2,200 community captain leaders, spanning all associate levels. We go where we’re needed, but veterans are a priority. Since 2011, Team Depot projects and Home Depot Foundation funds have improved more than 37,000 veterans’ homes and facilities.
In 2017, Team Depot volunteers worked on veterans’ homes across the U.S., built playhouses for children of veterans and assembled furniture for families of veterans transitioning out of homelessness. And in an unprecedented year of hurricanes and wild� res, thousands of Team Depot members pitched in as devastated communities started rebuilding.
TEAM DEPOT
Meet associates who embrace Team Depot’s mission to give back because it’s the right thing to do.
GETTING INVOLVED IS PART OF OUR CORE VALUES.
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Helping one another through life’s biggest challenges
The Homer Fund is a nonpro� t charity that provides emergency � nancial assistance to associates facing unforeseen hardships. Associates proudly support the Fund because the unexpected can happen to anyone. In 2017, associates’ contributions to the Fund helped 15,000 of their co-workers, providing more than $19 million in � nancial assistance.
When disasters strike, our stores are among the last to close and � rst to open. But some associates who are committed to supporting customers also experience losses. Last year, The Homer Fund assisted more than 6,000 associates following catastrophic hurricanes and wild� res.
THE HOMER FUND 93%
of associates contributed to The Homer Fund
during the 2017 fundraising campaign
$165 million+ in associate assistance
since launching in 1999
130,000+ associates have been
helped by The Homer Fund since 1999
Meet Tom Svopa, one of 1,400 associates in the Houston area assisted by The Homer Fund after Hurricane Harvey.
YOU NEVER KNOW WHEN IT’S GOING TO BE YOU.
NUMBERS By the
The Homer Fund has awarded
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OUR PRODUCTS
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RESOURCES
Eco Options
Chemical Strategy
Green Chemistry & Commerce Council
USDA Organic Standards
Eco Options Gardening
WaterSense
ENERGY STAR
Code of Conduct & Ethics
Wood Purchasing Policy
Forest Stewardship Council
Confl ict Minerals Report
Responsible Minerals Initiative
Organisation for Economic Co-Operation & Development
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Energy Effi ciency Save money and power
Water Conservation Help protect and preserve water
Healthy Home
Reduce toxins and sources of contamination to create a healthier
environment
Clean Air Protect the air
we breathe
Sustainable Forestry Monitor wood products to
ensure sustainability
Cultivating a better future for our customers and the planet
Our products have the potential to drive signi� cant change. By selling greener products, we make customers’ homes greener, too. And that can make a difference to the health and well-being of millions of people and their communities.
In 2007, The Home Depot launched Eco Options® to help our customers identify products that have less of an impact on the environment and to encourage our suppliers to provide more sustainable offerings. Ten years later, in October 2017, we published our Chemical Strategy. It details our commitment to working with suppliers to reduce the indoor air quality impact of chemicals used in the products we sell. Its publication was a milestone made possible by what we had learned over a decade of focusing on sustainability.
We launched Eco Options in partnership with SCS Global Services, a leading, independent, third-party certi� cation body. For a product to be classi� ed as an Eco Options product, the supplier must document attributes that prove it has less of an impact on the environment than comparable products in the same category. Until all industries create and abide by a reporting formula that measures product attributes according to a common sustainability standard, we will continue to use our Eco Options program to help customers sort through green product claims.
To determine whether products qualify for our Eco Options program, we consider their impact in one or more of fi ve key areas
ECO OPTIONS
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Extending sustainability to customers’ homes
At The Home Depot, we recognize the responsibility we have for the environmental impact of our organization — and that our biggest impact is the products we sell. In partnership with stakeholders throughout the supply chain, The Home Depot is committed to offering products that are safer for the environment.
With our encouragement, our suppliers have been investing in developing environmentally innovative products. The Home Depot supports the work of the Green Chemistry & Commerce Council (GC3) through annual membership and participation in the Retail Leadership Council of the GC3, and we participated in developing the GC3’s Joint Statement on Using Green Chemistry and Safer Alternatives to Advance Sustainable Products.
We and our suppliers also partner with respected third-party certi�cation organizations and environmental nonpro�ts that guide the home improvement industry toward safer chemical ingredient use. The Home Depot is committed to continuing the drive toward minimizing the environmental impact of the products we sell.
CHEMICAL STRATEGY
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CHEMICAL STRATEGY
Our Commitment
• The Home Depot is committed to increasing our assortment of products that maintain third-party certi�cations of their chemical ingredients, and that meet high environmental standards.
• We encourage suppliers’ efforts to improve chemicals in categories with the greatest potential impact on indoor air quality.
• We conduct periodic assessments of key categories to track progress on environmental innovations in green chemistry.
The Home Depot will evaluate this strategy annually to ensure our approach and goals are appropriate and meet the needs of our stakeholders.
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Paints As a result of our paint suppliers’ efforts over the last 10 years to evolve their paints and offer products that help maintain healthier air quality, the paints we sell have signi�cantly improved. The following chemicals of concern are excluded or are scheduled to be excluded from our interior and exterior latex water-based wall paints in our U.S. and Canada stores:
• Triclosan • Isocyanates • Formaldehyde • Lead/heavy metals • Alkylphenol ethoxylates and Nonylphenol ethoxylates
(APEOs and NPEs) are in the process of being phased out by 2019.
Certifications: In our U.S. stores, all Behr® interior paints, Glidden® Premium, Glidden Diamond and and PPG® Timeless interior paints are GREENGUARD® Gold certi�ed. All BehrPro® interior paints and Behr Primers are MPI X-Green certi�ed.
Paint-tinting Colorants: In 2012, we transitioned our paint-tinting colorants in our U.S. and Canada stores from solvent-based formulation to a water-based, low-VOC and ethylene-glycol-free formulation.
Volatile Organic Compounds: All of our interior and exterior latex water-based wall paints in our U.S. stores are zero or low VOC. The majority of interior and exterior latex water-based wall paints in our Canada stores are zero or low VOC, and our full assortment will be zero or low VOC by December 2020.
VOC VALUE <5g/L = zero VOC
BEHR Premium Plus Interior BEHRPro i300 Interior Glidden Premium Interior Glidden Diamond Interior CIL Premium Interior (Canada)
VOC VALUE <50g/L = LOW VOC
BEHR Premium Plus Exterior BEHR Premium Plus Ultra Interior BEHR Premium Plus Ulta Exterior BEHR MARQUEE Interior BEHR MARQUEE Exterior BEHRPro i100 Interior BEHR Premium Plus Ceiling Paint BEHR Premium Plus Ultra Ceiling Paint CIL DUO Interior (Canada)
Glidden Premium Exterior Glidden Essentials Interior Glidden Ceiling Paint Glidden Professional Speedwall Glidden Professional Ultra-Hide 220 Glidden Professional Ulta-Hide 440 Glidden Speed-Cote Exterior Glidden Vinyl Renew Exterior PPG Timeless Interior PPG Timeless Exterior
Painting Products
Note: Colorants added to base paints may increase VOC level depending on color choice.
Our current U.S. and Canada zero- and low-VOC paints are outlined here:
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CHEMICAL STRATEGY
Flooring
Carpet Home Depot carpet suppliers have been at the forefront of the industry-wide removal of chemicals of concern and the exploration of safer alternatives in carpet. All indoor wall-to-wall carpet sold through Home Depot’s U.S. and Canada stores have a third-party veri�cation of transparency through DECLARE® Label or Environmental Product Declarations (EPDs), or certi�cation of material health through Cradle to Cradle™ Products Innovation Institute or CRI Green Label Plus®. The following chemicals of concern are excluded from indoor wall-to-wall carpet sold in our U.S. and Canada stores: • Per�uorooctanoic acid (PFOA) or per�uorooctane sulfonate (PFOS) • Triclosan • Organotins • Ortho-phthalates • Vinyl chloride • Nonylphenol ethoxylates (NPEs) • Coal �y ash • Formaldehyde • Added heavy metals
Vinyl Home Depot vinyl �ooring suppliers are setting the pace for change in this category with efforts to continually improve the chemical pro�le of their products. As of January 2016, no ortho-phthalates are permitted as added plasticizers in vinyl �ooring sold at Home Depot stores in the U.S. and Canada.
Laminate Flooring Laminate �ooring at The Home Depot is veri�ed by either GREENGUARD® Gold or FloorScore® certi�cation to contain 0.0073 ppm or less of formaldehyde, which is a stricter standard than CARB 2 of 0.05 ppm.
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Insulation
Our �berglass insulation suppliers have persistently challenged themselves to remove chemicals of concern from their products over the last decade. As a result, 100% of our �berglass insulation products in the U.S. and Canada are GREENGUARD® Gold certi�ed and do not contain the following chemicals of concern:
• Brominated �ame retardants • Halogenated �ame retardants • Antimony trioxide • Formaldehyde • Added heavy metals
Residential Household Cleaning Chemicals
The Home Depot continues to work with suppliers to improve products that impact indoor air quality. As a result, we are asking our suppliers to exclude the following chemicals of concern from the manufacturing of all residential household cleaning chemical products sold in Home Depot stores by the end of 2022:
• Propyl-paraben • Butyl-paraben • Diethyl phthalates • Dibutyl phthalates • Formaldehyde • Nonylphenol ethoxylates (NPEs) • Triclosan • Toluene • Trichloroethylene (TCE)
In addition, our Eco Options® program identi�es environmentally preferred products, including cleaners that have obtained certi�cations from independent third-party testers such as EPA’s Safer Choice and Cradle to Cradle™ Certi�ed.
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Seeding change in customers’ backyards
We know that yards, patios and balconies are more than outdoor spaces — they’re ecosystems that have an impact on their surroundings. That’s why The Home Depot works closely with our growers and suppliers to offer healthy trees, blooms and edible plants that support local environments and pollinators. We’re excited about meeting customers’ growing demand for organic and environmentally bene� cial plants.
GARDENING
Organic Edibles We’re making it easier for our customers to grow organic. We now offer more than 50 varieties of organic, non-GMO vegetable and herb plants grown according to methods approved by the U.S. Department of Agriculture (USDA) National Organics Program. Only products that have been certified as meeting the USDA’s organic production and handling requirements may carry the USDA Organic seal.
Alaska
Bonide
Bonnie Organics
Burpee
Dr. Earth
Ecoscraps
Espoma
Jobes
Kellogg
Miracle Grow Nature’s Care
Nature’s Nutrients
OUR ORGANIC PRODUCT ASSORTMENT CARRIES SOME
OF THE INDUSTRY’S MOST RECOGNIZED AND
RESPECTED BRANDS
Bonnie Organics
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DID YOU KNOW? We offer organic gardening DIY workshops each year to teach customers how to grow healthy and productive plants without chemicals.
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Native & Healthy Plants Native plants contribute to the health of ecosystems and pollinators. Our growers work closely with U.S. states’ departments of agriculture to identify invasive plants that may threaten local native plants.
Growing Local Each region in which we operate has a unique ecosystem with its own weather patterns, soils and growing challenges. We are proud
Pollinator Health Pollinators are vital to local ecosystems, and we are committed to promoting products that help protect them. Our growers have pledged to discontinue the use of neonicotinoid pesticides by the end of 2018. We list our insecticide products online so our customers have the information they need to help them create pollinator-friendly gardens. Our Nature’s Nutrients line, grown without the use of neonicotinoid pesticides, is curated to include blooms that attract butter� ies and other pollinators.
to partner with 250 local growers who carefully balance the impact of their production with local environmental issues. These partnerships reduce transportation costs and carbon dioxide emissions, and they enable us to offer affordable selections of plants and trees — while supporting the local economies of communities we serve.
GARDENING
Our Garden centers get plants from 250 local growers
Our Garden center watering innovations have saved more than 250 million gallons of water
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Reuse and Recycling in Our Garden Centers We’ve been helping our customers recycle their plastic planter pots since 2009. We collect pots (from THD and elsewhere) at our Garden center recycle stations and give them to our growers to reuse. If pots aren’t reusable, our growers sort them by resin type and deliver them to our designated supplier who, in turn, recycles them into new pots.
We’ve helped recycle more than 17 million pounds of plastic planter pots over the last eight years — more than 3 million pounds in 2017 alone. Our efforts have diverted more than 12,000 cubic yards of plastic from land� lls and created 23 million new pots. Some of the recycled plastic returns to THD as pots, trays and hanging baskets.
Spotlight: Hands-on sustainability keeps local nursery growing
Rambo Nursery is a family-owned grower in Cedartown, Georgia, that provides plants to 67 nearby Home Depot stores. Sam Rambo started the business in 1983, selling hanging baskets door to door. When he connected with The Home Depot, we had three Atlanta-area stores, and he was a one-man operation. Now his thriving nursery employs hundreds.
Rambo grows his business with a view on sustainability. The nursery uses integrated pest management (IPM) techniques, including sanitation, crop rotation and preventive practices such as greenhouse screens. Workers don’t water after 2 p.m. to discourage
fungus gnats. When needed, the nursery uses bene� cial nematodes to help control pests. Workers inspect plants several times a day, checking temperatures and removing dead foliage or errant stems. Before starting new crops, they remove remnants of previous crops, weeds, algae or green spots — cleaning surfaces and tools throughout greenhouses to discourage insects, mites, disease and the spread of pathogens.
When Rambo’s plants move to our Garden centers, his � eld employees take over, making regular visits to ensure the plants are healthy and well maintained. It’s a labor-intensive but successful business strategy. “Customers just want beautiful, healthy plants that are grown locally,” Rambo said.
Sam Rambo’s Georgia nursery has supplied THD since the 1980s
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Protecting and conserving precious resources
Water is essential to life and a signi� cant factor in economic health. We understand the responsibility The Home Depot has in protecting it — not only through our operations, but also through products we sell. We work with suppliers to ensure products re� ect our conservation values and help customers use less water.
In 2017, we committed to helping customers save 250 billion gallons of water by 2020 through the purchase and proper use of WaterSense-approved products. We estimate our products helped customers save 79 billion gallons of water last year alone — nearly a third of our goal.
We partner with WaterSense, a program operated by the U.S. Environmental Protection Agency, to ensure our customers have access to water-ef� cient products. Products bearing the WaterSense label have been independently certi� ed to help save water.
In 2017, The Home Depot was named a WaterSense Partner of the Year for the sixth consecutive year. It was also the third year we were recognized for Sustained Excellence, earned because of our commitment to providing water-ef� cient products and to increasing customer and associate awareness of the WaterSense program.
WATER NUMBERS By the
We estimate our products helped customers save
79 billion gallons of water in 2017
We’ve pledged that our products, when properly used,
will help customers save
250 billion gallons of water by 2020
We’ve earned WaterSense Partner of the Year for
6 years in a row
WaterSense-approved faucets can save 700 gallons a year
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Spotlight: Protecting waterways from coast to coast
In Northern California, The Home Depot has partnered for 15 years with Our Water Our World (OWOW), a program organized by pollution-prevention agencies to protect local waterways. In 60 of our area stores, OWOW advocates show customers how to use our less toxic garden pest management products, assist with product displays and provide free literature on integrated pest management (IPM) techniques. OWOW also trains our associates to better help customers understand ways to reduce their impact on waterways.
Across the country in Maine, we’ve partnered with the Cumberland County Soil and Water Conservation District’s YardScaping program since 2014. The program promotes lawn-care products and maintenance techniques that keep soil healthy and minimize polluted runoff into local waterways. YardScaping representatives train associates to educate customers about less toxic lawn-care products.
Many products in our U.S. stores exceed WaterSense and U.S. Department of Energy standards
TOILETS THD 1.28 gallons per fl ush or less
WaterSense 1.28 gallons per � ush
DOE 1.6 gallons per � ush
BATH FAUCETS
THD 1.2 gallons per minute
WaterSense 1.5 gallons per minute
DOE 2.2 gallons per minute
SHOWERHEADS
THD 1.8 gallons per minute
WaterSense 2 gallons per minute
DOE 2.5 gallons per minute
DID YOU KNOW? Toilets are the biggest water users in the home. Customers can save 15,000 gallons and $110 per year by upgrading to a Niagara Stealth 0.8 gallon-per-� ush toilet, which is WaterSense labeled. We help protect water resources in Maine and elsewhere
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Reducing emissions and customers’ power bills For more than two decades, The Home Depot has encouraged suppliers to make the products we sell more energy ef�cient. As a result, our customers have saved millions of dollars on utility bills and reduced emissions linked to powering their homes.
Energy-efficient Products In 2017, we announced a commitment to help our customers save another $2.8 billion in energy costs by 2020 through the purchase and proper use of ENERGY STAR products. By the
end of the year, we had sold over 171 million ENERGY STAR products, which we estimate saved our customers over $1 billion on annual energy utility costs — exceeding 35% of our 2020 goal. We estimate the drop in consumption helped customers reduce carbon dioxide emissions by 6.2 million metric tons. That’s equivalent to removing annual CO
2 emissions produced by nearly 670,000
American homes.
We promote ENERGY STAR awareness in our stores and online. For example, our popular DIY workshops teach customers how to save money and energy using affordable products and simple conservation practices. Our leadership in these areas has earned recognition year after year. We were named a U.S. Environmental Protection Agency
ENERGY
ENERGY STAR Retail Partner of the Year in 2017 — for the 11th year in a row. We also received the program’s Sustained Excellence distinction for the fourth consecutive year.
Solar Options We’re empowering our customers’ energy independence by making it easier than ever for them to produce solar energy. Since 2016, our solar partners have installed more than 250,000 kilowatts of clean energy through The Home Depot solar program.
Energy Storage The Home Depot now offers home battery energy solutions in all 50 U.S. states. They provide our customers with reliable power, even during storms and outages.
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Reducing waste and environmental impact
The Home Depot’s packaging team constantly works with our private brand product suppliers to reduce the environmental impact of packaging. By applying science to package design, we continue to make progress in reducing waste while maintaining packaging effectiveness.
Using Less EPS In 2017, our packaging team looked for substitutes for expanded polystyrene (EPS) foam. EPS foam is good at protecting products, but it contains beads of chemicals and oil that are often dif� cult to recycle and can take more than 500 years to biodegrade.
We came up with a way to replace EPS with recyclable materials like molded pulp and paper in packaging for our private-label holiday product assortment. As a result, we eliminated 341,000 cubic feet of EPS foam from our packaging. That’s 355 Greyhound buses full of EPS foam kept out of land� lls.
SUSTAINABLE PACKAGING
We estimate our packaging innovations abated
1.8 million pounds of damaged-product
waste last year
In 2018, we aim to use
1,165 fewer 40-foot shipping containers
because of optimized packaging
In 2017, THD redesigned
125 packages to reduce size and materials
Discover how THD reduced expanded polystyrene foam in holiday packaging.
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Living our commitment to ethical sourcing
We owe it to our customers, associates and communities to further the collective commitment to human rights, safety and environmentally sound practices through ethical sourcing. We engage our suppliers in this commitment by prioritizing the purchase of products made in factories that adhere to our social and environmental responsibility (SER) standards.
Our SER 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 around the world to ensure compliance with our SER standards.
Suppliers must keep on-site documentation that demonstrates compliance with our SER standards. They also must allow Home Depot associates and/or representatives full access to production facilities, worker records, production records and workers for con�dential interviews in connection with
SOCIAL & ENVIRONMENTAL RESPONSIBILITY
monitoring visits. We expect our suppliers to promptly correct any non-compliance, starting with timely preparation and presentation of a corrective and preventative action plan.
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 concerns via processes outlined in our corporate Code of Conduct.
Our SER audits are designed to assess compliance in these areas: • Laws and regulations • Child and forced labor • Harassment and abuse • Compensation • Hours of work • Non-discrimination • Freedom of association and collective bargaining
• Health and safety • Environment • Subcontracting • Communication • Business ethics • Monitoring and compliance
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We audited peak production compliance at
219 factories that make seasonal goods
Under our SER policy,
2,704 factory audits and
follow-up visits were conducted in 2017
66 subcontractors were audited
last year
BOARD OF DIRECTORS AND AUDIT
COMMITTEE review our SER program
annually
RESPONSIBLE SOURCING STARTS AT THE TOP
ENTERPRISE RISK COUNCIL
of senior company leaders provides
oversight and guidance
INTERNAL AUDIT associates conduct
annual audits to ensure our SER program is effective and
operating as expected
THIRD-PARTY AUDITORS
conduct our SER compliance
audits
HOME DEPOT GLOBAL SOURCING OFFICES
work with our supply chain to ensure
compliance with our standards
THE HOME DEPOT SER TEAM
of associates make sure factories adhere to our
standards
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Using the planet’s resources wisely
As the world’s largest home improvement retailer and an industry leader on sustainability issues, we have the ability to effect change by doing the right thing.
To help protect endangered forests and to ensure that there will be timber for future generations, we formalized a Wood Purchasing Policy in 1999. Since then, we’ve led suppliers toward understanding and practicing sustainable forestry throughout the world. We give preference to wood from forests managed in a responsible way. Most of our wood comes from North American forests, which are expanding.
In 2017, The Home Depot announced that beginning on Sept. 1, 2018, we will not accept wood products from Papau New Guinea, the Solomon Islands, the South American Amazon Basin or the African Congo Basin, unless the Forest Stewardship Council has certi� ed the products. FSC certi� cation ensures products come from responsibly managed forests that provide environmental, social and economic bene� ts.
SUSTAINABLE FORESTRY NUMBERS
By the
490 million acres of forestland have been
protected since 1990, most in the tropics
2 billion+ people rely on wood-based fuels in developing countries
77% of forests are under management plans
worldwide, totaling 5.1 billion acres
Source: U.N. Global Forest Resources Assessment 2015
77% of forests are under management plans worldwide, totaling 5.1 billion acres
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90%+
NORTH AMERICA
EUROPE
AFRICA
SOUTH AMERICA
ASIA
OCEANIA
~4%
<1%
<1%
<1%
<3%
THE HOME DEPOT’S 2017 WOOD PURCHASE VOLUME BY REGION OF ORIGIN
DID YOU KNOW? Most of The Home Depot’s wood comes from North American forests, which are expanding.
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Encouraging responsible practices by our suppliers
Our company expects all suppliers that manufacture our products to provide appropriate information and conduct due diligence to enable our compliance with con�ict minerals laws. We also expect these manufacturers to obtain products and materials from suppliers that are not involved in funding con�ict in the Democratic Republic 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.
2017 Progress As detailed in The Home Depot’s conflict minerals report for 2017, our efforts focused on collecting and disseminating information about sourcing practices of our Tier 1 suppliers. We cataloged that information in a database using the con�ict minerals reporting template developed by the Responsible Minerals Initiative (formerly the Con�ict-Free Sourcing Initiative, or CFSI).
We continued to re�ne our supplier review processes for Tier 1 suppliers by excluding any that merely af�xed company brands,
CONFLICT MINERALS
trademarks, logos or labels to generic products manufactured by a third party, as permitted by U.S. Securities and Exchange Commission guidance. As a result, in-scope Tier 1 suppliers decreased to 212 in 2017 from 321 in 2016.
Through 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 suppliers.
Twenty-six percent of our Tier 1 suppliers indicated that one or more con�ict minerals were necessary to the functionality or production of covered products. Of the veri�ed smelters or re�ners reported by these suppliers, only 60 out of a total of 308 sourced con�ict minerals from covered countries. All but two of these smelters or re�ners were members of the Responsible Minerals Initiative (founded by the Electronic Industry Citizenship Coalition and Global e-Sustainability Initiative), the London Bullion Market Association and/or the Responsible Jewellery Council and were certi�ed as DRC con�ict-free by the respective organization.
We work closely with our suppliers to ensure they implement responsible sourcing and encourage their smelters to obtain a “con�ict-free” designation from an independent third-party auditor.
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DID YOU KNOW? In 2017, 100% of our in-scope private brands and proprietary product suppliers participated in our efforts to collect confl ict mineral information.
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58
Overview
OUR OPERATIONS
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RESOURCES
Greenhouse Gas Protocol
Carbon Disclosure Project
SmartWay
The Home Depot Canada
The Home Depot Mexico
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CARBON FOOTPRINT
Improving emissions measurement as we reduce environmental impact
The Home Depot uses the GHG Protocol Corporate Accounting and Reporting Standard, which has been adopted by over 90% of Fortune 500 companies to calculate metric tons of greenhouse gas emissions and efforts to reduce them. We continually review and re�ne our emissions measurements to re�ect changes to our business and improvements in data collection and reporting.
• In 2016, we added through acquisition the carbon inventory for Crown Bolt and Interline Brands.
• In 2017, we expanded our Scope 3 carbon inventory for upstream transportation and distribution of freight. Scope 3 now re�ects over 90% of our annual cost of goods.
• After these changes, our combined carbon inventory for 2017 was 5,907,000 metric tons, a 648,417 metric ton decrease over 2016.
2017 Results
Scope 1: Direct emissions from combustible sources and refrigerants totaled 433,633 metric tons, a 1.1% decrease compared to 2016.
Scope 2: Indirect emissions from purchasing electricity totaled 1,681,640 metric tons, an 11.8% decrease year over year.
Scope 3: Emissions from upstream transportation and distribution of freight totaled 3,791,806 metric tons — a 10% decrease compared to 2016, after accounting for the increases in carbon inventory previously described.
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We earned an A- rating in 2016 from the Carbon Disclosure Project. That placed The Home Depot in the top quartile of our sector.
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ASSOCIATE SAFETY
Taking care of our people
At The Home Depot we continually strive to create a safer place to shop and work. To do this, we focus on awareness and training, leadership engagement and innovations for reducing injury risk.
We continue to make progress on safety, and when we do have an incident, we learn from it. We’re constantly improving our training programs and how we communicate risk awareness and safety practices with associates and customers. Our injury rates are consistently lower than industry averages for our retail class.
NUMBERS By the
224 stores joined our Club 365 in 2017, meaning
they operated all year without a signifi cant safety incident
94% of associates underwent InFocus training in 2017
Associates completed
3,332,490 role-specifi c InFocus
safety modules last year
Recordable incident rate (per 200,000 hours) Work-related injury that typically warrants medical care
beyond store-provided � rst aid
Lost time incident rate (per 200,000 hours) More signi� cant injury that results in time away from work
2013
2014
2015
2016
2017
2013
2014
2015
2016
2017
4.78 1.35
4.75 1.19
4.55 1.11
3.97 0.95
4.01 0.93
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Spotlight: Safety is a state of mind for Michigan store
On Lake Huron, where an index � nger would � t into the mitten that is Michigan’s map, is the city of Alpena. There you’ll � nd Store 2760, a member of our four-year Club 365 — meaning in 2017 it hit the milestone of operating for four straight years without a signi� cant safety incident. “Safety awareness starts during the hiring process and continues every single day of an associate’s career,” said store manager Lyle Fruchey.
Associates are trained to keep themselves and customers safe. Aisles are clean and clutter-free. (Customers give the store 4.9 out of 5 stars for cleanliness in online reviews.) Associates take InFocus training seriously, and they abide by our Warm Up, Gear Up, Form Up and Team Up principles. As Fruchey explained, “We make safety a state of mind in every aspect of our business.”
Associates are trained to put safety into action
WARM UP Start-of-shift stretches get associates ready for the aisles
GEAR UP Gloves, safety knives and other personal protection equipment help associates stay safe
FORM UP Associates are trained and encouraged to use proper form to bend and lift to reduce injuries
TEAM UP Associates ask co-workers for help handling heavy products and equipment
Warm-up exercises at the beginning of shifts prepare associates for an injury-free day on the store fl oor
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SMART ENERGY USE
Shrinking our carbon footprint through conservation and innovation
The Home Depot leads by doing, and that’s re� ected in how we reduce our energy consumption; support efforts to make the energy supply more reliable and ef� cient in the communities we serve; and support alternative energy innovations that are shaping the future.
In 2017, our stores used 23.5% less electricity than in 2010. That means we surpassed our stated goal to reduce store energy use by 20% — and did so three years ahead of schedule. Last year alone, store energy consumption dropped 3.2%.
Conservation The simplest way to reduce emissions from energy use is to use less energy. At The Home Depot, we maximize that strategy, constantly looking for ways to cut consumption and improve ef� ciencies. Our efforts are good for our business, as well as the environment. We achieve results by making improvements kilowatt by kilowatt, year after year. For example, in 2017 we installed energy-ef� cient heating, air-conditioning and ventilation systems in an additional 91 stores.
Demand Mitigation By participating in demand mitigation programs run by electric utilities or grid operators, we reduce electricity costs and have an impact on balancing energy supply and demand. It works like this: During peak demand, utilities or grid operators strategically divert electricity, reducing the chance of outages and optimizing the cost of electricity. In addition, at nine stores in California, we use on-site batteries to store electricity during off-peak times for use when demand rises. Both types of demand mitigation help defer construction of new power plants.
334 stores
Alternative energy projects were in place at
216 stores by the end of 2017
700+ stores help balance community energy supplies via demand mitigation
By the
NUMBERS
In the last six years, we’ve installed energy-effi cient HVAC units in
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DID YOU KNOW? Last year, our stores used 23.5% less electricity than they did in 2010. We exceeded our goal to cut consumption 20% by 2020.
2018 Responsibility Report
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Alternative Energy We support and tap into sustainable energy that’s produced off- site and on-site. All of these sources bring us closer to our goal of leveraging 135 megawatts of alternative and renewable energy by 2020. In addition, when The Home Depot buys or produces alternative energy, we strengthen the business case for such alternatives — leveraging our size, reach and brand recognition to drive positive change.
• Off-site wind: In early 2017, we became a customer of the Los Mirasoles Wind Farm northeast of McAllen, Texas. The energy purchased from the farm is enough to power 100 stores. We also began purchasing power from the Zopiloapan Wind Farm in central Mexico later in the year.
• Off-site solar: Last year, we signed on with a community solar provider in Minnesota, expanding our support of similar initiatives in Delaware and Massachusetts.
• On-site solar: We started 2017 with four operational rooftop solar farms. By the end of the year, we had launched 34 new projects and obtained permits for three more. (See our spotlight on the next page for details.)
• Fuel cells: We cut polluting emissions signi� cantly — in some cases by 50% — when our stores use fuel cells instead of traditional power sources. These mini power plants were installed outside 178 THD stores by the end of 2017, producing roughly 90% of the electricity needs of each store. Fuel cells are a good option for stores with aging roofs that will need to be replaced within 15 years; that’s how long a rooftop solar project needs to stay in place to yield an appropriate return on investment. More fuel cell installations are underway at stores in 2018.
Check out an interactive infographic highlighting energy- saving and other sustainability enhancements we’re using in some stores.
SMART ENERGY USE
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Long-term Savings We continue to bene�t from previous years’ investments, such as:
• Installing upgraded building automation systems in all U.S. and Canadian stores in 2013 and 2014
• Retro�tting lighting in more than 1,300 stores, converting from 6- to 4-lamp �xtures
• Installing variable frequency drives (VFDs) in more than 600 stores to ensure motorized equipment only uses the electricity needed to meet immediate demands
Spotlight: Powering up the big box with sunshine The average Home Depot store is about 104,000 square feet, meaning there’s more than a soccer �eld of space on the roof of each one. In 2017, we launched projects to transfrom 34 of those rooftops into solar farms. By the end of the year, 38 stores in California, Connecticut, Hawaii, Maryland, New Jersey, New York, Washington, D.C., Puerto Rico and the U.S. Virgin Islands were capturing energy from the sun. These zero-emissions solar farms reduce each store’s annual electricity grid demand by an estimated 30-35%. That’s the equivalent of powering 2,300 average U.S. homes for a year.
Permitting slowdowns delayed some installations planned in 2017; these projects continue in 2018. The goal is to have sun-fueled power plants atop more than 50 stores.
2018 Responsibility Report
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2018 Responsibility Report
SUPPLY CHAIN
Greening our path to customers’ homes
SmartWay Recognition In 2017, The Home Depot was awarded the U.S. Environmental Protection Agency’s 2017 SmartWay®
Sustained Excellence Award for the � fth consecutive year. We earned this recognition through clean transportation best practices. Our ongoing Supply Chain Synchronization initiative has enabled us to optimize the way we store and move products, reduce truckloads by � lling trucks more ef� ciently, lower our fuel consumption and emissions and more.
The Home Depot was a charter member of the SmartWay program, which since 2004 has helped its partners avoid emitting 103 million tons of polluting emissions into the air. Through SmartWay, we participate in greenhouse gases data collection and reporting and encourage others to, as well. We require all THD carriers to be SmartWay partners, and we audit our carriers annually to ensure their data is properly submitted to the EPA. The Home Depot is proud to be among the EPA’s 3,500 SmartWay partners, and we’re honored to be one of only 11 that earned the program’s excellence distinction for shipping in 2017.
Hear the story of our supply chain’s 10-year sustainability journey.
3% 7%
8%
NUMBERS By the
We traveled 197.7 million fewer shipping miles in the U.S., a
reduction of more than
In 2017, we reduced greenhouse gases from U.S. logistics by
310,680 metric tons, or nearly
Loading ef� ciencies allowed us to eliminate 118,231 truckloads in the
U.S., a reduction of more than
That’s equivalent to taking over 66,500 cars off the road for a year
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Spotlight: Going off the grid with fuel cells
Hydrogen fuel cells power forklifts at our 1.6 million-square-foot direct ful� llment center in Troy Township, Ohio, and our 1.4 million-square- foot stocking distribution center in Savannah, Georgia. Fuel cells produce no emissions and don’t draw power from the grid.
The 172 fuel cells in Troy Township (right) and 132 fuel cells in Savannah save these two supply chain facilities a combined 3.98 million kilowatt hours of electricity annually. That’s the greenhouse gas emissions equivalent of taking 635 cars off the road for a year.
Our new bulk distribution center in Utah has larger doors, an inside rail dock and other design innovations to maximize effi ciency
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WASTE MANAGEMENT & RECYCLING
Protecting our customers, our people and the environment
The Home Depot is committed to properly managing waste and hazardous waste. We partner with vendors to constantly improve how we reduce, reuse and recycle waste.
Hazardous Materials Disposal & Handling We seek sustainable methods of disposal, and, in 2017, our company recycled or reused for energy 32% of the hazardous waste generated from our operations and customer returns. We properly disposed of the remaining waste.
Associate Training & Resources All associates receive training on recognizing hazardous materials. Associates responsible for managing storage and cleanup of hazardous materials complete in-depth environmental compliance training.
Information about and guidance for the cleanup, classi�cation, labeling and storage of hazardous waste is available to associates through company-issued handheld devices and our associate intranet site.
Preventative Actions We take speci�c steps to avoid spills and contamination across the store with particular focus on these areas:
Garden center—Proper handling of fertilizer and pesticides bags, including checking for and properly repairing damaged bags
Receiving and central storage—Appropriate procedures for handling, accumulating, storing, labeling and inventorying hazardous waste and separating potentially incompatible materials
Inspections of key areas—Routine inspections of Garden areas, parking lots and store entrances identify potential problems; scheduled sweeps of fertilizer aisles and parking lots protect against hazardous materials entering the environment Responsive Actions Spill kits and containers—Located throughout each store for prompt and effective cleanup and disposal of hazardous materials such as paint, solvents, aerosols, oil, fuel, pesticides and fertilizers
Emergency response—A third-party consultant provides an emergency response team available 24/7 to assist with hazardous materials cleanup and, if necessary, provide remediation services
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Compact fluorescent light bulbs We recycle CFLs dropped off by customers.
Amounts below are in pounds.
Cardboard The amount of cardboard we recycle from our operations
continues to rise. Amounts below are in tons.
Rechargeable batteries We recycle rechargeable batteries dropped off by
customers. Amounts below are in pounds.
Lead-acid batteries We recycle lead-acid automotive batteries dropped off by customers.
Figures below represent the number of battery cores.
2013
2014
2015
2016
2017
2012
2013
2014
2015
2016
2017
2012
2013
2014
2015
2016
2017
2012
2013
2014
2015
2016
2017
2012
63% increase since 2012
29% increase since 2012
35% increase since 2012
104% increase since 2012
210,000
170,000920,000
680,000
200,000
107,000940,000
700,000
180,000
94,000940,000
600,000
170,000
98,000850,000
600,000
225,000
180,0001,000,000
860,000
230,000
200,0001,100,000
980,000
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EMERGENCY PREPARATION & RESPONSE Doing our part before, during and after disaster strikes
When natural disasters hit the communities we serve, Home Depot stores are among the last to close and � rst to reopen. That’s how we ensure our customers have what they need before and after disaster strikes.
Our merchandising, supply chain and operations teams work together to get products and equipment to areas of impact. We connect with the U.S. Federal Emergency Management Agency, state agencies, � rst responders, relief organizations and others to ensure we receive and provide credible information. We take pride in setting the example for disaster preparation and recovery.
Through funds from The Home Depot Foundation and hands-on assistance from our crew of Team Depot associate volunteers, we help communities repair and rebuild. Our Homer Fund provides � nancial assistance for associates affected by disaster. In 2017, an unprecedented year of storms, wild� res, � oods and earthquakes, we were there for our customers, associates and communities like never before.
NUMBERS By the
200+ stores were in the path
of a storm
We delivered more than
7,000 shipments of hurricane-related supplies
to affected areas
We operated our hurricane command center for
50+ days in 2017
In an all-Spanish podcast, Hector Padilla and Carlos Fines discuss the impact that the 2017 hurricanes had on Puerto Rico.
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Find out what motivated orange- blooded associates who volunteered to help Hurricane Harvey victims in Texas.
HOME DEPOT CULTURE IS TO JUMP IN, BOOTS ON THE GROUND, TO HELP.
In 2017, thousands of associates pitched in to help devastated communities start rebuilding after Hurricane Harvey and other storms
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CANADA NUMBERS By the
43 stores converted to interior LED lighting,
saving enough energy to power 1,800 homes for a year
1,700+ Eco Options
products across multiple categories
Operating with a mission to serve
Our focus on associates, customers and communities has helped us earn recognition as one of Canada’s best diversity employers, as well as one of its greenest. In 2017, we were named an ENERGY STAR Retailer of the Year, and we partnered with utilities to help our customers conserve energy and save money. Our partnerships with colleges, universities and learning centers enable us to attract diverse talent. We’re particularly proud of our work to end youth homelessness in Canada.
2017 Recognition
In 2017, over 3,000 associates volunteered
60,000+ hours in the communities we serve
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Bringing Housing & Hope to Homeless Youth
Since 2014, The Home Depot Canada Foundation has invested more than CA$17.5 million to initiatives designed to prevent and end youth homelessness. We work with the following national and regional partners:
• 360°kids Support Services (Markham, ON)
• A Way Home Canada Coalition (Toronto, ON)
• Boys and Girls Clubs of Calgary (Calgary, AB)
• Canadian Alliance to End Homelessness (Calgary, AB)
• Canadian Observatory on Homelessness (Toronto, ON)
• Covenant House Vancouver (Vancouver, BC)
• Dans la rue (Montreal, QC)
• Egale (Toronto, ON)
• Eva’s Initiatives (Toronto, ON)
• Phoenix Youth Programs (Halifax, NS)
• Raising the Roof (Toronto, ON)
• Youth Empowerment and Support Services (Edmonton, AB)
• Youth Services Bureau (Ottawa, ON)
• Youth Without Shelter (Etobicoke, ON)
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MEXICO NUMBERS By the
In 2017, associates took part in
725 projects through Team Depot
Last year, we recycled
or reused
941,000 wooden pallets
80% of our vendors are
local companies based in Mexico
Connecting with customers and communities
The Home Depot began operating in Mexico 17 years ago, and now we have 122 stores across all 32 states. We employ more than 14,500 associates; last year they collectively received more than a million hours of training. We sell 30,000 products, including over 350 designated with the Hipotecha Verde eco-friendly label.
2017 Recognition
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Spotlight: Helping victims of Mexico’s earthquakes
After devastating earthquakes struck Mexico in September, we jumped in to help. We donated US$1 million for emergency assistance and housing reconstruction. We also provided tools for rescue efforts. People donated more than 100 tons of food and tools at our collection points set up to gather supplies for earthquake victims. We also joined forces with nonpro� ts TECHO and Operation Blessing to rebuild 110 houses.
Learn more about our community and sustainability efforts in Mexico in 2017.
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Overview Our OperationsOur People Our Products Our BusinessOur OperationsOur OperationsOur Operations Our BusinessOverview Our OperationsOur People Our ProductsOverviewOverview
78
OUR BUSINESS
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RESOURCES
Business Code of Conduct & Ethics
Corporate Governance
2018 Proxy Statement
2017 Annual Report
Privacy & Security Statement
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CODE OF CONDUCT
Promoting a culture of ethical accountability
At The Home Depot, doing the right thing is embedded in our culture. That applies to how we serve customers, give back to communities, support our people and conduct our business. Our Business Code of Conduct and Ethics provides straightforward information about The Home Depot’s operating principles and offers tools to help associates make decisions that align with our ethical and legal obligations. The code applies to associates worldwide, and the company expects them to comply with the code and with all applicable laws and regulations in countries in which we do business. In particular, the code outlines The Home Depot’s ethical and legal standards in these areas:
We empower associates to speak up when our ethical standards are not being met. We encourage them to voice concerns, express doubts, discuss problems and ask questions. In addition to sharing concerns with any member of their management team or a human resources partner, associates can report ethical or legal concerns to our Associate AwareLine, a 24/7 hotline answered by a live operator and available in local languages. Associates may remain anonymous when reporting concerns. Calls are handled using a case management system. We have a longstanding policy that prohibits retaliation for making a report.
We also provide ways for suppliers, vendors, service providers and their workers to report concerns when they think our Home Depot values or compliance with the law may be compromised. Workers in all 38 countries from which we source goods may submit anonymous reports via tnw.reportlineweb.com/custom/ HDVendorRelations. In addition, our Supplier AlertLine is answered by a live operator 24/7 in these countries:
Associate AwareLine 1-800-286-4909
Supplier AlertLine U.S. and Canada: 1-800-435-3152
Mexico: 001-888-765-8153 China: 400-880-1045
• Safety • Labor and employment • Con�icts of interest • Antitrust and fair competition • Con�dentiality, privacy and information protection • Protecting the company’s assets and intellectual property
• Insider trading • Financial integrity and reporting • Records retention • Environmental responsibility • Foreign Corrupt Practices Act (FCPA) and anti-bribery • Political activity
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2018 Responsibility Report
CORPORATE GOVERNANCE Living our values in how we do business
The Home Depot strives to be the employer, retailer, investment and neighbor of choice in our industry. We understand our responsibility to behave ethically, to understand the impact we have on people and communities, and to fairly consider the interests of a broad base of constituencies.
Our Responsibilities The Board of Directors is committed to maximizing long-term shareholder value while supporting management in running business and operations, observing the highest ethical standards and adhering to laws of jurisdictions where we operate.
At least once a year, our Board discusses our sustainability strategy and activities, including this report.
Leadership Structure We believe having a combined chairman, chief executive of�cer (CEO) and president; an independent lead director; and Board committees composed entirely of independent directors currently provides the best Board leadership structure for The Home Depot.
This structure, together with other robust corporate governance practices, provides independent oversight of management while ensuring strategic alignment throughout the company.
• Directors are elected annually via majority voting
• Shareholders can act by written consent and call special meetings
• Shareholders have a proxy access right
• Lead director, all Board committee members and over 90% of directors are independent
• Board and committees conduct annual self- evaluations
• Directors have mandatory retirement age and limits on outside board service
• Board conducts annual strategy session and review of strategic plan
• Director education program, including quarterly store walks
• No shareholder rights plan or “poison pill”
• Compensation recoupment policy and clawback provisions in equity awards
• Anti-hedging policy applicable to all associates, of�cers and directors
• Stock ownership and retention guidelines for executive of�cers
Best Practices in Corporate Governance
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Enterprise Risk Framework Our enterprise risk framework is used to identify and manage our key risks. It enables us to consider external and internal factors that could distract the company from our business or derail strategic objectives. The Board reviews the framework and key risks annually, and the Board and/or appropriate committees discuss selected risks in more detail throughout the year.
Board Committees & Risk Oversight The Board of Directors has established four standing committees comprised solely of independent directors and governed by a written charter that sets forth purpose, composition, powers, duties and responsibilities. The Board’s oversight of risk is accomplished by identifying key risks facing the company and mapping those risks to the appropriate Board committee and/or to the full Board, based on the nature of the risk.
The standing committees and examples of their key oversight areas include:
• Audit Committee—oversees the company’s major �nancial exposures and compliance risks and the steps management has taken to monitor and control them; also oversees risks related to data protection and cybersecurity and our social environmental responsibility (SER) program
Our proxy statement offers more details about corporate governance and risk management. Go to our Corporate Governance Overview for additional information on our corporate governance practices.
• Nominating & Corporate Governance Committee—reviews and makes recommendations to the Board about policies concerning corporate social responsibility (CSR) matters; reviews the company’s political contributions and payments to trade associations that engage in lobbying
• Leadership Development & Compensation Committee— oversees risks related to compensation programs, including the company’s compensation policies and practices and our diversity and inclusion efforts
• Finance Committee—oversees risks related to our capital structure, �nancial resources, use of derivatives and accelerated share repurchase agreements, as well as related �nancial matters
Learn More
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DATA SECURITY
Protecting the data of our customers and our business
The Home Depot values and respects the privacy of its customers and visitors. Our Privacy and Security Statement provides information about how we collect, use and share information we collect from our customers and visitors.
We leverage the National Institute of Standards and Technology (NIST) Cybersecurity Framework as the foundation of our cybersecurity program. As cybersecurity attackers become increasingly more sophisticated, our program prioritizes threat mitigation, while focusing on maintaining the integrity and resiliency of our systems. We invest in our ability to identify, protect and detect security risks within our environment.
In the event that we identify a security issue, we have de�ned procedures to respond and recover as quickly as possible. Overseeing our efforts on a day-to-day basis is our Information Technology Security team, led by an of�cer-level chief information security of�cer. Our approach enables us to drive a collectively secure culture.
• The Home Depot has a Data Security and Privacy Governance Committee, composed of a cross-functional group of senior leadership, that oversees the security and privacy of customer and business information.
• Information security and privacy policies are in place and periodically reviewed.
• Targeted audits and penetration tests are conducted throughout the year by internal and external entities.
• We are compliant with the Payment Card Industry Data Security Standard.
• We engage an industry-leading third party to independently evaluate our information security maturity on an annual basis.
Data Protection
• The Home Depot has established data classi�cation and retention policies focused on limiting the risk of unauthorized exposure of customer and/or business data.
• Data protection strategies are in place and focused on data devaluation and data access monitoring.
Governance, Risk & Compliance
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• Sensitive data attributes are classi�ed into domains with de�ned security expectations for data-at-rest and data-in-transit.
Vendor Security
• The Home Depot’s vendor risk management program works to classify service provider or business partner risk based on several factors, including, but not limited to, data type accessed and/or retained.
• Service provider or business partner security risk assessments are conducted for targeted relationships.
• Where applicable, service providers and business partners are contractually obligated to protect restricted data provided by or received from The Home Depot.
Security Awareness
• Security and privacy training and awareness are provided to all associates, and additional customized, role-based training and awareness are provided to targeted internal audiences.
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GLOBAL REPORTING INITIATIVE FRAMEWORK
We have applied the Global Reporting Initiative (GRI) G4 Sustainability Reporting Guidelines as an identi� cation and cross-reference tool to make meaningful data accessible to our stakeholders. The following charts provide a cross-reference location guide to our reports.
RESOURCES
Form 10-K – 2017 Annual Report on SEC Form 10-K
Carbon Disclosure Project
2018 Proxy Statement
Corporate Website
Nominating & Corporate Governance Committee (NCGC) Charter
Leadership Development & Compensation Committee (LDCC) Charter
Corporate Governance Guidelines
Business Code of Conduct & Ethics
Board Candidate Policy
Political Activity Policy
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G4-1 CEO Statements CEO Letter (RR pg. 6)
G4-2 Key impacts, risks and opportunities 2018 Responsibility Report, Form 10-K pgs. 1-14
G4-3 Organization name The Home Depot, Inc.
G4-4 Primary brands, products and services Form 10-K pgs. 1-7
G4-5 Headquarters location Atlanta, GA
G4-6 Where the organization operates Form 10-K pgs. 1-7, 14-16, Corporate Website - About Us
G4-7 Nature of ownership and legal form Form 10-K pg. 1
G4-8 Markets served Form 10-K pgs. 1-7, 14-16, Corporate Website - About Us
G4-9 Scale of the organization Form 10-K
G4-10 Total workforce by employment type, gender, employment contract and region N/A
G4-11 Collective bargaining agreements Form 10-K pgs. 2-3
G4-12 Supply chain description Form 10-K pgs. 1-7
G4-13 Organizational changes during the reporting period Form 10-K
G4-14 If/How the precautionary approach or principle is addressed by the organization N/A
G4-15 External charters, principles or other initiatives Chemical Strategy (RR pg. 39), Water (RR pg. 48), Carbon Footprint (RR pg. 60), Supply Chain (RR pg. 68), Corporate Website - Responsibility
G4-16 Membership associations Diversity & Inclusion (RR pg. 18), Chemical Strategy (RR pg. 39), Water (RR pg. 48), Carbon Footprint (RR pg. 60), Supply Chain (RR pg. 68)
GRI Indicator Description Cross Reference Location S
tr a
te g
y a
n d
A n
a ly
si s
O rg
a n
iz a
ti o
n a
l P ro
fi le
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G4-17 Entities included in �nancial statements Form 10-K
G4-18 Process for de�ning report boundaries and content Our Approach (RR pg. 8), Doing Things Better Every Day (RR pg. 10)
G4-19 List all the material Aspects identi�ed N/A
G4-20 If the Aspect is material within the organization; The list of entities included in G4-17 for which the Aspect is or is not material. Speci�c limitation regarding the Aspect Boundary within the organization
N/A
G4-21 If the Aspect is material outside the organization; The list of entities for which the Aspect is material, relate to geographical location; Speci�c limitation regarding the Aspect Boundary outside the organization
N/A
G4-22 Explanation of the effect of any restatements N/A
G4-23 Signi�cant changes from previous reporting periods in the Scope and Aspect Boundaries
N/A
G4-24 Stakeholder groups Our Approach (RR pg. 8)
G4-25 How stakeholders were identi�ed Our Approach (RR pg. 8)
G4-26 Report Pro�le Governance Our Approach (RR pg. 8), Doing Things Better Every Day (RR pg. 10)
G4-27 Topics raised during stakeholder engagements Our Approach (RR pg. 8), Doing Things Better Every Day (RR pg. 10)
G4-28 Reporting period Jan. 30, 2017 to Jan. 28, 2018 (Fiscal 2017)
G4-29 Date of most recent report 2017 Responsibility Report October 2017
G4-30 Reporting cycle Annual Report
G4-31 Reporting contact [email protected]
GRI Indicator Description Cross Reference Location
Id e
n ti
fi e
d M
a te
ri a
l Id
e n
ti fi
e d
M a
te ri
a l
A sp
e c
ts &
B
o u
n d
a ri
e s
S ta
k e
h o
ld e
r E
n g
m t.
R e
p o
rt P
ro fi
le
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G4-32 In accordance option, GRI Index and report assurance This report contains Standard Disclosures from the GRI G4 Sustainability Report Guidelines
G4-33 Policy and current practice with regard to seeking external assurance for the report N/A
G4-34 Governance structure of the organization
Corporate Governance (RR pg. 82), Proxy Statement pgs. 5-23, Corporate Website - Investor Relations > Corporate Governance, NCGC Charter, Corporate Governance Guidelines
G4-35 Process for delegating authority for sustainability topics from the board to senior executives and other employees
Our Approach (RR pg. 8), Social & Environmental Responsibility (RR pg. 52), Corporate Governance (RR pg. 82)
G4-36 High-level accountability for sustainability topics Our Approach (RR pg. 8), Social & Environmental Responsibility (RR pg. 52), Corporate Governance (RR pg. 82)
G4-37 Processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics (to whom, any feedback)
Our Approach (RR pg. 8), Social & Environmental Responsibility (RR pg. 52), Corporate Governance (RR pg. 82), Proxy Statement pg. 13, NCGC Charter, Corporate Governance Guidelines
G4-38 Composition of the board and its committees Corporate Governance (RR pg. 82), Proxy Statement pgs. 5-23, Corporate Website - Investor Relations > Corporate Governance
G4-39 Whether the chair of the board is also an executive of�cer Corporate Governance (RR pg. 82), Proxy Statement pgs. 5-23
G4-40 Nomination and selection processes for the board and its committees
Corporate Governance (RR pg. 82), Proxy Statement pgs. 5-23, Policy on Consideration and Evaluation of Board Candidates, Corporate Governance Guidelines
G4-41 Board con�icts of interest Proxy Statement pgs. 9-16, Corporate Governance Guidelines
G4-42 Board and executives’ roles in the organization’s mission statements, strategies, policies and goals related to how sustainability impacts employees
CEO Letter (RR pg. 6), Our Approach (RR pg. 8), Doing Things Better Every Day (RR pg. 10), Proxy Statement Letter to Shareholders and pgs. 7-11, NCGC Charter, Corporate Governance Guidelines
GRI Indicator Description Cross Reference Location R
e p
o rt
P ro
fi le
G o
ve rn
a n
c e
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G4-43 Board knowledge of sustainability topics
Our Approach (RR pg. 8), Social & Environmental Responsibility (RR pg. 52), Corporate Governance (RR pg. 82), Proxy Statement pgs. 7-16
G4-44 Board performance with respect to governance of sustainability topics
Our Approach (RR pg. 8), Social & Environmental Responsibility (RR pg. 52), Corporate Governance (RR pg. 82), Proxy Statement Letter to Shareholders and pgs. 7-16, NCGC Charter
G4-45 Board role in the identi�cation and management of sustainability impacts, risks and opportunities
Our Approach (RR pg. 8), Social & Environmental Responsibility (RR pg. 52), Corporate Governance (RR pg. 82), Proxy Statement pgs. 7-16, Corporate Website - Investor Relations > Corporate Governance, Corporate Governance Guidelines
G4-46 Board role in reviewing risk management processes for sustainability topics
Our Approach (RR pg. 8), Social & Environmental Responsibility (RR pg. 52), Corporate Governance (RR pg. 82), Proxy Statement pgs. 7-16, Corporate Website - Investor Relations > Corporate Governance, Corporate Governance Guidelines
G4-47 Frequency of the board’s review of sustainability impacts, risks and opportunities
Our Approach (RR pg. 8), Social & Environmental Responsibility (RR pg. 52), Corporate Governance (RR pg. 82), Proxy Statement pgs. 7-16, Corporate Website - Investor Relations > Corporate Governance
G4-48 Highest committee or position that formally reviews and approves the organization’s sustainability report
CEO
G4-49 Process for communicating critical concerns to the board
Our Approach (RR pg. 8), Social & Environmental Responsibility (RR pg. 52), Corporate Governance (RR pg. 82), Proxy Statement pgs. 7-16, Business Code of Conduct and Ethics, Corporate Governance Guidelines
G4-50 The nature and total number of critical concerns that were communicated to the highest governance body and the mechanism(s) used to address and resolve them
N/A
G4-51 Remuneration policies for the board and senior executives Proxy Statement pgs. 38-69, Corporate Governance Guidelines, LDCC Charter
GRI Indicator Description Cross Reference Location
R e
p o
rt P
ro fi
le G
o ve
rn a
n c
e
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G4-52 Process for determining remuneration Proxy Statement pgs. 38-69, Corporate Governance Guidelines, LDCC Charter
G4-53 Stakeholders’ views on remuneration Proxy Statement pgs. 27, 41, 44
G4-54
The ratio of the annual total compensation for the organization’s highest-paid individual in each country of signi�cant operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the same country
Proxy Statement pg. 65
G4-55
The ratio of percentage increase in annual total compensation for the organization’s highest-paid individual in each country of signi�cant operations to the median percentage increase in annual total compensation for all employees (excluding the highest-paid individual) in the same country
N/A
G4-56 Code of Conduct Code of Conduct (RR pg. 80), Business Code of Conduct and Ethics, Corporate Governance Guidelines
G4-57 Helplines or advice lines for employees Code of Conduct (RR pg. 80), Business Code of Conduct and Ethics
G4-58 Mechanisms for reporting concerns about unethical or unlawful behavior Social & Environmental Responsibility (RR pg. 52), Code of Conduct (RR pg. 80), Business Code of Conduct and Ethics
G4- DMA
Disclosure on Management Approach Our Approach (RR pg. 8), Form 10-K, 2017 CDP Report
G4- EC1
Economic Value Form 10-K
G4- EC2
Climate Change Risk 2017 CDP Report, Form 10-K
G4- EC3
Bene�t Plan Coverage Learning & Development (RR pg. 24), Associate Engagement (RR pg. 26), Associate Bene�ts (RR pg. 28), Form 10-K
G4- EC7
Infrastructure Investments The Home Depot Foundation (RR pg. 32), Team Depot (RR pg. 34), The Homer Fund (RR pg. 35)
G4- EC8
Indirect Economic Impacts The Home Depot Foundation (RR pg. 32), Team Depot (RR pg. 34), The Homer Fund (RR pg. 35), Form 10-K
GRI Indicator Description Cross Reference Location R
e p
o rt
P ro
fi le
G o
ve rn
a n
c e
E th
ic s
&
In te
g ri
ty E
c o
n o
m ic
P e
rf o
rm a
n c
e
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G4- DMA
Disclosure on Management Approach Our Approach (RR pg. 8), Form 10-K, 2017 CDP Report, Corporate Website - Responsibility
G4- EN3
Energy Consumption 2017 CDP Report, Energy (RR pg. 50), Smart Energy Use (RR pg. 64), Corporate Website - Responsibility
G4- EN5
Energy Intensity Use (RR pg. 64), Corporate Website - Responsibility
G4- EN6
Reduction of Energy Consumption 2017 CDP Report, Energy (RR pg. 50), Smart Energy Use (RR pg. 64), Corporate Website - Responsibility
G4- EN7
Reduction of Energy Use through products 2017 CDP Report, Energy (RR pg. 50), Smart Energy Use (RR pg. 64), Form 10-K, Corporate Website - Responsibility
G4- EN9
Affected Water use Water (RR pg. 48), Smart Energy Use (RR pg. 64), Corporate Website - Responsibility
G4- EN12
Impacts on Biodiversity Gardening (RR pg. 44), Water (RR pg. 48), Sustainable Forestry (RR pg. 54), Corporate Website - Responsibility
G4- EN13
Habitats Protected Gardening (RR pg. 44), Water (RR pg. 48), Sustainable Forestry (RR pg. 54), Corporate Website - Responsibility
G4- EN15
Direct Greenhouse Gas (GHG) Emission Scope 1 2017 CDP Report, Carbon Footprint (RR pg. 60), Corporate Website - Responsibility
G4- EN16
Indirect Greenhouse Gas (GHG) Emission Scope 2 2017 CDP Report, Carbon Footprint (RR pg. 60), Corporate Website - Responsibility
G4- EN17
Indirect Greenhouse Gas (GHG) Emission Scope 3 2017 CDP Report, Carbon Footprint (RR pg. 60), Corporate Website - Responsibilityy
G4- EN18
Greenhouse Gas (GHG) emissions intensity 2017 CDP Report, Carbon Footprint (RR pg. 60), Corporate Website - Responsibility
G4- EN19
Reduction on Greenhouse Gas (GHG) emissions 2017 CDP Report, Carbon Footprint (RR pg. 60), Corporate Website - Responsibility
G4- EN23
Waste by type and disposal method Waste Management & Recycling (RR pg. 70), Corporate Website - Responsibility
GRI Indicator Description Cross Reference Location
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G4- EN27
Mitigation of Environmental impacts of products and services
Eco Options (RR pg. 38), Chemical Strategy (RR pg. 39), Gardening (RR pg. 44), Water (RR pg. 48), Energy (RR pg. 50), Sustainable Packaging (RR pg. 51), Sustainable Forestry (RR pg. 54), Smart Energy Use (RR pg. 64), Supply Chain (RR pg. 68), Waste Management & Recycling (RR pg. 70), Form 10-K, Corporate Website - Responsibility
G4- EN30
Environmental impacts of transporting products 2017 CDP Report, Supply Chain (RR pg. 68), Form 10-K, Corporate Website - Responsibility
G4- LA6
Types and rates of injury, occupational diseases, lost days, and absenteeism and number of work-related fatalities
Associate Safety (RR pg. 62)
G4- LA9
Average hours of training per year per employee Learning & Development (RR pg. 24)
G4- LA10
Programs for skills management and lifelong learning Diversity & Inclusion (RR pg. 18), Learning & Development (RR pg. 24), The Home Depot Foundation (RR pg. 32)
G4- LA12
Composition of governance bodies and employees Diversity & Inclusion (RR pg. 18), Proxy Statement pg. 15-23, Form 10-K
G4- HR6
Suppliers identi�ed as having signi�cant risk for employees Social & Environmental Responsibility (RR pg. 52), Con�ict Mineral (RR pg. 56), Corporate Website - Responsibility
G4- HR10
New suppliers screened for human rights criteria Social & Environmental Responsibility (RR pg. 52), Con�ict Mineral (RR pg. 56), Corporate Website - Responsibility
G4- HR11
Human rights impact in the supply chain Social & Environmental Responsibility (RR pg. 52), Con�ict Mineral (RR pg. 56), Corporate Website - Responsibility
G4- SO4
Communication and training on Anti-Corruption policies Social & Environmental Responsibility (RR pg. 52), Code of Conduct (RR pg. 80), Business Code of Conduct and Ethics
GRI Indicator Description Cross Reference Location E
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