CARBON EMISSIONS REDUCTION
We use widely adopted standards to track our greenhouse gas (GHG) emissions and our efforts to reduce them. In fiscal 2022:
• Scope 1 - direct emissions from combustible sources and refrigerants used in The Home Depot’s operations totaled approximately 597,500 metric tons.
• Scope 2 - indirect emissions from purchased electricity totaled approximately 959,800 metric tons.
• Scope 3 - we estimate that emissions from our relevant supply chain categories were approximately 3,696,500 metric tons.
We reduced our absolute combined Scope 1 and 2 emissions by approximately 92,000 metric tons in 2022, achieving a 9% year-over-year reduction in carbon dioxide emitted per dollar of revenue earned.
Emissions Reduction Goals
We measure our Scope 1, 2 and 3 emissions and identify strategic opportunities to minimize costs and achieve carbon emissions reduction throughout our facility operations, supply chain and product footprint.
The Home Depot has established goals to aid our long-term planning towards reducing emissions in ways that align with scientifically accepted emissions reduction pathways for preventing the worst impacts of climate change.
We recently updated our emissions goals, which we submitted to the Science Based Targets initiative (SBTi) in 2023 for approval:
- The Home Depot commits to reduce absolute Scope 1 and 2 GHG emissions 42% by fiscal year end 2030 from a fiscal 2020 base year.
- The Home Depot commits to reduce absolute Scope 3 GHG emissions from the use of sold products 25% by fiscal year end 2030 from our fiscal 2020 base year.
We source renewable energy from both onsite rooftop solar systems located atop our stores and offsite purchased renewable energy. As we work towards reducing our operational footprint, we also plan to invest in low-carbon emissions opportunities through initiatives such as:
- Produce/procure 100% renewable electricity equivalent to the electricity needs for all Home Depot facilities worldwide by the end of fiscal year 2030, including an interim goal of producing/procuring 335 megawatts of renewable or alternative energy capacity by 2025, which we accomplished years early.
- 90% of forklifts in our major U.S. distribution centers will be hydrogen-powered by the end of fiscal year 2029.
We expect the electrical grid to become less carbon-intensive in the future with more renewable energy resources coming online. As we work with our suppliers to improve the energy efficiency of their products, as well as prioritizing sales of high-efficiency, electrified products, we will enable our current mix and future assortments of electrical plug-in and carbon-emitting products to have lower emissions outputs. We have created two key targets for making these improvements:
- Help customers save $600 million in energy costs by the end of fiscal year 2026, with a start year of fiscal 2023, through proper use of energy-saving products we sell.
- 85% of U.S. and Canadian sales in push mowers and handheld outdoor lawn equipment (combined) in-store and online (combined) will be in rechargeable battery technology by fiscal-year-end 2028.
Renewable and Efficient Energy
To execute against our carbon reduction strategy, we focus on several initiatives including: sourcing clean/renewable electricity, promoting a cleaner grid and increasing the efficiency of our stores and supply chain network.
Renewable Energy
Key to reducing our carbon footprint is our investment in alternative energy solutions. Given the dynamics of the renewable energy market, we have built a diversified energy portfolio, which includes off-site wind and solar electricity procurement, rooftop solar projects, fuel cells and on-site batteries to power stores during peak demand spikes.
The Home Depot joined RE100, a global initiative of business leaders who pledge to produce or procure 100% renewable electricity. In our pledge, we committed to produce or procure enough electricity to meet the electricity needs of all The Home Depot facilities with renewable energy by the end of fiscal year 2030. This builds upon our recently achieved goal to produce or procure 335 megawatts of renewable or alternative energy capacity by 2025.
In fiscal 2022, three additional projects came online: Noble Solar, Samson III Solar and a wind farm project in Nebraska. We expect to purchase about 535 million kilowatt hours of renewable energy from these three projects on an annual basis. Once fully operational, and in combination with our previous projects, we expect a total of six renewable energy projects to provide enough electricity to power the equivalent of over 900 Home Depot stores.
SUPPLY CHAIN
By making our supply chain more efficient, we reduce business costs and the impact our product distribution has on the environment.
We continue to invest in expanding our supply chain network, with the goal of achieving the fastest, most efficient and most reliable delivery capabilities in home improvement. Our continued focus on building these best-in-class competitive advantages in our supply chain enables us to drive down costs and meet our customers’ needs, while also reducing our transportation-related emissions.
The unique capabilities of our supply chain enable us to meet the changing needs of both our Professional and DIY customers. Our range of distribution center platforms allows us to keep our stores stocked, deliver a flatbed truck of building material to a job site, and ship packages to our customers’ doorsteps. The efficiencies that these platforms create helped us reduce miles driven and our supply chain emissions year-over-year.
The investments that we have made in our supply chain, in combination with the investments in renewable energy and driving efficiency in our stores, have helped us reduce our carbon intensity.
DRIVING SUPPLY CHAIN EFFICIENCIES
- Grew our network of warehouses and distribution centers to over 400 – increasing speed and efficiency.
- Moved more than 6 billion cubic feet of product through our supply chain.
- Reduced supply chain miles driven compared to the prior year.