The Home Depot s Environmental and Sustainability Programs. Bryce Bennett Director Environmental, Health and Safety

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1 The Home Depot s Environmental and Sustainability Programs Bryce Bennett Director Environmental, Health and Safety

2 World s Largest Home Improvement Retailer Stores: ~2,273 Operations: U.S., Canada, Mexico Associates: approx. 375,000 Revenue: $88.5B USD (FY15) Member of DOW NYSE (HD) since 1981

3 Sustainability at The Home Depot

4 Sustainability Team Store Energy, Water, Waste New Construction Environmental Compliance Transportation Merchandising Sustainability team supports business units Public reporting CDP, GRI, annual sustainability report External messaging with PR, marketing, HR Internal Environmental Sustainability Council GC3 member ENGOs Product opportunities with suppliers

5 Home Depot Sustainability Initiatives HOME DEPOT ENVIRONMENTAL FOOTPRINT SUPPLY CHAIN DISTRIBUTION SUSTAINABLE PRODUCTS (Eco Options $9B and 29,000 products)

6 Sustainability Progress 2015 Goals ENERGY USE SUPPLY CHAIN EMISSIONS 2004 Baseline: 20% reduction instore energy use 2008 Baseline: 20% reduction in GHG emissions from Supply Chain 2014 Results: 2014 Results: 31.5% 35%

7 Store Operations Dual-flush, low-flow toilets and urinals; low-flow faucets that reduce water usage by 40% VFD Variable Frequency Drive manipulates HVAC systems for efficiencies Wipro Analytics software identifies irregularities 6 to 4 stores, Fluorescent lighting retrofit 150 stores, rainwater collection saves 500,000 gallons per store Exterior building signs are two-strand LED rather than three-strand fluorescent Eight zoned planting areas, incorporating local hardy species where landscaping is required to minimize maintenance and water use White thermoplastic polyolefin roofs have high reflectivity and will reduce heat island effect NOVAR BAS control system upgrade Recycled 179,000 tons of cardboard, $20 million in recycle revenue Using reduced wattage 330W lamps on new stores vs. 400W lamps for parking lot lights, for lots with 25 poles Store energy use reduced 130 million kilowatt hours in 2015

8 2020 Goals Reduce Energy 20% Produce 135MW Renewable & Alternative Energy

9 Eco Options Product Categories FSC- CERTIFIED WOOD PRODUCTS NO- & LOW-VOC PAINTS AIR PURIFIERS TANKLESS WATER HEATERS HIGH-EFFICIENCY & WATERSENSE TOILETS/FAUCETS AERATORS DUAL-FLUSH CONVERTERS ORGANIC PLANTS & FERTILIZERS ENVIRONMENTALLY PREFERRED CLEANERS ENERGY STAR QUALIFIED PRODUCTS SOLAR PANELS & LIGHTING CFL & LED LIGHTING 2015 Sales $8.9 billion 29,700 SKUs

10 2015 Sustainability Report 10

11 Hazardous Materials and Waste in The Home Depot 11

12 Hazardous Material SKU Onboarding.COM / Interconnected Shipping Requirements Selling Restrictions Safety Data Sheet(SDS) IDM Onboarding: Identification of Hazmat Vendors navigate to WERCS portal WERCS: Hazmat Classification of Product Hourly Data Feed THD Hazmat Repository 1) Does the item contain Mercury (ex: fluorescent light bulb, HVAC, switch, thermostat)? 2) Is the item a chemical / solvent or contain a chemical / solvent? 3) Is the item a liquid or contain a liquid (this does not include appliances or heaters that contain totally enclosed liquids)? 4) Is the item an aerosol or contain an aerosol? 5) Is the item a pesticide or contain a pesticide, herbicide, fungicide? 6) Is the item or does the item contain a battery (lithium, alkaline, lead-acid, etc.)? 7) Is the item or does the item contain a compressed gas? 8) Is this product electronic equipment (does it contain a circuit board, computer chip, wires, or other electrical component)? Data Replication By the Numbers: Store Systems Spill Clean Up Waste Disposal Transportation Selling Restrictions CRTV/Buybacks Fire Code Compliance Safety Data Sheet(SDS) Supply Chain Systems Spill Clean Up Waste Disposal Transportation Import/Export Rules Maritime Shipping Fire Code Compliance Safety Data Sheet(SDS) ü data points generated by WERCS for each classification ü 48 - hours to complete the Hazmat classification process ü 550 Avg. WERCS Hazmat classifications generated per week ü 365K - UPC classifications in the Hazmat Repository 21K -Store sellable, remaining.com only 12

13 Waste Generation Returns Damaged/Defective THD Processes 13 Spills in Store Abandoned

14 Contact 3E ( ) if HHMA is not providing waste disposal instruction.

15 HHM - Central Storage Area Spill kit & fire extinguisher within 10 ft. The three zones of the Central Storage Area include the Yellow, Red, and Black zones. Yellow Zone - contains non-rcra or state-only regulated wastes are stored on one side of the red flammable cabinet. Red Zone - contains toxic or reactive waste and are stored on the same side of the flammable waste cabinet as the yellow zone. Black Zone - contains corrosive waste and is stored on the opposite side of the flammable cabinet from the red and yellow zones. o A flammable cabinet which should only be used to store ignitable hazardous waste in black buckets. o Use HHMA on FIRST Phone and follow all prompts for handling and storage of waste Planogram located on myapron>mydepartments>asset Protection>Environmental

16 HHM - Satellite Storage Area D26 Satellite D28 Garden Satellite Tool Rental D24 Satellite

17 Waste Pick Up and Sorting Once waste arrives at the Transportation, Storage, and Disposal Facility (TSDF), a final disposal method is chosen based on the waste type and characteristics ü ü ü ü ü ü 17 Landfill Fuel Blending Recycling Incineration Waste Water Stabilization

18 Auditing and Accountability HHM Checklist Dumpster Audits AP Bi-Monthly Audits 18

19 THD Waste Disposition FY2014 vs. FY2015 LANDFILL FYTD 2015 FY % 50 % FUELS BLENDING RECYCLING FYTD 2015 FY2014 FYTD 2015 FY % 23 % 19 % 18 % INCINERATION FYTD 2015 FY % 8 % WASTE WATER FYTD 2015 FY % 0.7 % ph FYTD 2015 STABIL- IZATION FY % 0.6 %

20 20 Questions?