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Forward-looking statements speak only as of the date of this report, and Trinity expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Trinity’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, except as required by federal securities laws.
Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations, including but not limited to risks and uncertainties regarding economic, competitive, governmental, and technological factors affecting Trinity’s operations, markets, products, services and prices, and such forward-looking statements are not guarantees of future performance.
For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” and “Forward-Looking Statements” in Trinity’s Annual Report on Form most recent fiscal year, as may be revised and updated by Trinity’s Quarterly Reports on Form 10-Q, and Trinity’s Current Reports on Form 8-K.
Note: Unless otherwise indicated, this report does not include data for HD Supply Holdings Inc., which was acquired on Dec.
OVERVIEW Forward-Looking Statements: All statements in this report that are not historical constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements may relate to, among other things, our goals, commitments and programs, and projections of future results, including our ability to meet our goals; the impact on our business, operations and financial results of the COVID-impact; management of relationships with our associates, potential associates, suppliers and service providers; cost and availability of labor; costs of fuel and other energy sources; international trade disputes, natural disasters, climate change, public health issues (including pandemics and quarantines, related shut-downs and other governmental orders, and similar restrictions, as well as subsequent re-openings), cybersecurity events, military conflicts or acts of war, and other business interruptions that could disrupt operation of our facilities, our ability to operate or access communications, financial or banking systems, or supply or delivery of, or demand for, the Company’s products or services; the impact of regulatory changes; the impact of acquired companies on our organization; and our assumptions, expectations and projections regarding any of the foregoing.
Forward-looking statements are based on currently available information and our current assumptions, expectations and projections about future events.
They are not guarantees of future performance and are subject to future events, risks and uncertainties – many of which are beyond our control, dependent on the actions of third parties, or currently unknown to us – as well as potentially inaccurate assumptions that could cause actual results to differ materially.
Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements other than as required by law.
You are advised, however, to review any further disclosures we make on related subjects in our filings with the Securities and Exchange Commission and in our other public statements.
Note on Materiality: Materiality, as used in this report, and our ESG priority assessment process, is different than the definition used in the context of filings with the Securities and Exchange Commission.
Issues deemed material for purposes of this report may not be considered material for SEC reporting purposes.
Continues on next page When I joined The Home Depot more than have imagined that I would have the opportunity to lead such an incredible organization.
Prior to becoming CEO, I had the privilege to work in multiple departments across the organization.
One thing that has always been clear to me is that our values-driven culture and passion for our customers has been instrumental to our success.
Built around our core values, our approach to ESG centers around three key pillars – Focus on Our People, Operate Sustainably, and Strengthen Our Communities.
By identifying these three pillars, we can concentrate on the areas where we can have the greatest impact.
Our work we do to support these three pillars, as well as the progress we made in 2021 thanks to the dedication and ingenuity of our associates and suppliers.
Our focus on people centers around continuously striving to create a work environment that is inclusive, engaging, and rewarding to associates.
Our associates’ outstanding performance in to qualify for Success Sharing bonus payments to non-management associates.
We also offer training and development that transforms jobs into careers, which is reflected in the fact that approximately store leaders began as hourly associates.
Our U.S. workforce is more ethnically diverse than the U.S. working population.
In addition, we increased the representation of female and underrepresented minority groups across our managers and above cohort in the U.S. during 2021.
CEO Letter “Built around our core values, our approach to ESG centers around three key pillars – Focus on Our People, Operate Sustainably, and Strengthen Our Communities.
We believe our associates should reflect the customers and communities we serve.
In approximately 36% of our U.S. new hires were women, while more than 57% of U.S. new hires were from an underrepresented minority group.
Our commitment to diversity also extends to our supplier relationships.
In diverse suppliers to $3.3 billion and have announced a goal to achieve $5 billion in direct annual spend with diverse suppliers by 2025.
We also completed our goal to launch a Tier II supplier diversity program to encourage our suppliers to spend with diverse businesses.
$woman-owned suppliers, to further amplify our supplier diversity efforts.
Our efforts to operate sustainably begin with our understanding that our biggest impact on the environment comes from the products we sell.
Our partnership with suppliers allows us to give our customers access to hundreds of products that are good for their homes, good for the environment, and good for their wallets.
In customers’ purchases of Energy Star products helped reduce annual electricity use by 7 billion kilowatt hours, saving $950 million on energy costs, and lowering carbon emissions by 4.9 million metric tons.
Our water-saving products allowed customers to reduce consumption by over 66 billion gallons.
We also made progress in operating more sustainably in our own business, reducing electricity consumption in our U.S. stores by approximately 11% year-over-year.
We cut U.S. store electricity usage a remarkable 50% since 2010.
A hallmark of progress in this area has been the transition to LED overhead lighting in our U.S. stores, which join our Canada and Mexico stores in having nearly all of interior lighting powered by LED bulbs.
While we remain focused on reducing our energy consumption, we are also making progress towards our goal of producing or procuring electricity equivalent to the electricity needs for all Home Depot facilities worldwide by 2030.
We focus on strengthening our communities by giving back financially and through our associates’ time and efforts dedicated to Team Depot volunteer activities – a hallmark of who we are.
In associates volunteered in communities across 150 cities nationwide.
Our Team Depot volunteers helped our communities prepare and respond to natural disasters like tornados, hurricanes, and wildfires, while also achieving more than of service to veterans since 2011.
We also value our nonprofit partners that enable The Home Depot Foundation to improve the homes and lives of U.S. veterans, train skilled tradespeople to fill the labor gap, and support communities affected by natural disasters.
In milestone of ten years and over $400 million invested in support of veteran causes, on track to contribute half of a billion dollars to veteran causes by 2025.
While we have made significant progress, there is more work to do.
On Pages see the goals we’ve set as we strive to build a better and more sustainable business.
We know that when we invest in running a responsible, sustainable company, we make our business stronger, more agile, and more resilient.
year filled with great accomplishments, and I want to thank our associates and supplier partners for the many ways they enable us to do our part and live our values every day.
As the largest home improvement retailer in the world, we have the unique opportunity to create positive impacts across a broad number of stakeholders.
We have also been reminded over the last two years how quickly our world can change, which is why we continue our practice of proactive engagement and provide numerous channels for feedback, so we can remain attentive to the concerns and needs of our stakeholders.
We have learned over the years that one of the best ways for us to make sure we understand the relevant environmental, social and governance (ESG) impacts of our business and the current areas of focus of our many stakeholders is to engage with our stakeholders.
We receive constant feedback from our customers through the more than a billion and a half transactions across our stores and digital channels annually.
We survey our approximately associates to measure how emotionally connected they are to their work.
We collaborate with our vendors and suppliers in an effort to lessen the environmental impact of the products we sell.
Individuals and organizations from around the globe reach out to us with questions or concerns about our operations or products.
We meet with shareholders and nongovernmental organizations (NGOs) interested in our business practices.
We take part in industry efforts to raise awareness about the ESG responsibilities we all share.
These interactions help validate our own priority assessment; they also help us gauge the impact of our business, refine ESG priorities, measure our progress and design ways to improve.
We value seeing ESG impact and opportunities through our operational lens and also through the lenses of our stakeholders.
By better understanding our impact and collaborating with stakeholders, we position our company to set objectives that allow us to contribute to building a better business, workplace and world.
Our Sustainability Council, composed of representatives from different areas of the business, oversees our approach to sustainability.
Members of the Council share stakeholder feedback from their functional areas.
The Council focuses on several key areas, as shown below.
The Council meets twice a year, and its chair presents our sustainability strategy and activities to the Board of Directors annually.
We also provide quarterly updates to our Nominating and Corporate Governance Committee regarding our ESG engagement.
Our ESG priorities and plans are communicated internally and externally via various channels, including in this annual report.
Stakeholders share their perspectives on our ESG practices.
This chart outlines the process The Home Depot uses to assess, prioritize and address potential ESG issues.
The Home Depot sets goals to drive ESG progress, benefiting our associates, customers, suppliers and communities, as well as our company.
ESG TRANSPARENCY This chart highlights The Home Depot’s key ESG metrics.
All data reflects Home Depot’s fiscal year, unless otherwise noted.
SF = square feet All monetary amounts are U.S. dollars.
* 2021 data reflects our fiscal year; 2020 and 2019 reflect the calendar year.
** Annual activities halted because of the pandemic; did not track.
*** Prior year data updated based on more complete data available.
AAMeasures resilience to long-term, financially relevant ESG risks Leading third-party sustainability rating organizations monitor and report on our progress.
Retail Operations Home Depot’s chief sustainability officer Ron Jarvis has spent more than two decades driving sustainability improvements at The Home Depot.
They take pride in improving their departments and businesses in multiple ESG aspects.
Our leadership understands that an effective environmental, social and governance strategy cannot happen in isolation.
It is not the sole responsibility of a corporate ESG team.
Rather, our ESG strategy must reflect The Home Depot’s core values, and it must be embedded in all aspects of how we run our business.
Our Eco Actions program, which builds on our original Eco Options program that we launched in customers take on more sustainable DIY projects and choose greener products that can save water, conserve energy or are formulated to reduce certain chemicals.
Products can only qualify for this distinction if manufacturers provide third-party verification of environmental claims that meet our program’s requirements.
In addition, we encourage our customers to drop off used compact fluorescent light bulbs and rechargeable batteries for recycling.
In 1,162,800 pounds of recycled batteries, a 24% increase since 2014 (see Page 54).
We also help our customers go greener in ways that may be less apparent to them.
For example, we offer circularity-centered products like our Home Depot-branded moving boxes, made from 45), as well as composite deck boards made from recycled plastic waste from our stores.
When customers rent tools from us, they help avoid the environmental impact of new product manufacturing.
Another example: Our stores have cut electricity consumption our customers a lower energy intensive shopping environment.
Overall, we believe good business decisions drive sustainability.
Examples of this can be seen through the investments we’ve made to create the most efficient supply chain in home improvement.
These investments have helped us reduce the number of trucks needed and distance traveled to get our products from our supplier to our customers, while also reducing fuel emissions.
Another example of this is our store investments, part of which included transitioning stores to LED lighting, which helped us reduce operating costs and electricity consumption.
We also believe that by working with our suppliers to bring innovative and sustainable products to market, we help our customers create more sustainable homes and workplaces.
Our efforts to drive innovation can be seen in every aisle of the store, and we believe this is a key differentiator in the market.
We also want to see sustainability be the norm for our entire industry.
We are encouraged when we see other retailers take big swings and do innovative things that push all of us to do a better job of protecting the planet, and we hope the innovation that we bring through our operations and products motivates others to do the same.
One of our eight core values is Do The Right Thing, which drives our associates to find new ways that our organization can reduce its environmental impact.
This can be seen through our packaging team who looks for ways to reduce the package footprints and ways to use more sustainable materials for our private-label products (see Page 55).
Another example are our associates who work to find ways to upcycle the packaging waste in our stores and supply chain into new products like Trex composite decking.
Reducing The Home Depot’s environmental impact is essential to our efforts to build a better business, workplace and world.