The Home Depot, the world’s largest home improvement retailer with $159.5 billion in revenue and 2,340 stores across the U.S., Canada, and Mexico, published its FY2024 Living Our Values Report in August 2025, covering fiscal year 2024 (February 2024 to February 2025). The report is structured around three pillars: Focus on Our People, Operate Sustainably, and Strengthen Our Communities, and governs the company’s Path to 2030 sustainability commitments spanning climate, circularity, water conservation, responsible chemistry, and sustainable forestry. Home Depot’s most distinctive and commercially consequential sustainability lever is not operational but product-level: the transition of more than 85% of U.S. and Canada outdoor power equipment sales from gasoline to rechargeable battery technology by end of FY2028, a shift estimated to eliminate over 2,000,000 metric tonnes of GHG annually from residential lawn equipment exhaust.

Source

https://corporate.homedepot.com/sites/default/files/2025-08/2025_Home%20Depot_Living_Our_Values.pdf
https://corporate.homedepot.com/news/sustainability/
https://net0tracker.com/corporates.html/Home%20Depot/

Sustainability Strategy and Goals

Home Depot’s sustainability strategy, called Path to 2030, is governed by SBTi-validated GHG reduction targets and a broader set of product, packaging, water, and forestry commitments with specific timelines extending to 2028, 2030, and 2035. The SBTi-validated targets, resubmitted and validated in 2024, require a 42% absolute reduction in Scope 1 and 2 emissions by FY2030 from a FY2020 baseline, aligned with the 1.5°C trajectory, and a separate absolute reduction in Scope 3 Category 11 (use of sold products) emissions. The company has not set a formal net zero target date covering all scopes, though the Scope 3 Category 11 commitment is the most commercially significant Scope 3 mechanism available to a home improvement retailer, given the energy and water consumed by the hundreds of millions of appliances, power tools, HVAC systems, and water fixtures sold annually.

Net Zero and Carbon Emissions

Home Depot’s combined Scope 1 and 2 GHG emissions totalled approximately 1,821,000 tCO2e in FY2023, the most recent year with verified third-party assured figures, representing a 37% reduction from the FY2020 baseline of approximately 2,892,000 tCO2e, placing it ahead of pace on the 42% target for FY2030. The company has invested in 204 hydrogen fuel cell installations and rooftop and off-site solar capacity to reduce grid electricity dependence, alongside LED lighting retrofits completed at 147 stores and a store electricity use reduction of 46% over the last 10 years. Home Depot targets 100% renewable electricity for all facilities worldwide by 2030, and has made consistent progress through on-site generation, offsite solar PPAs, and renewable energy certificates.

The company has set a formal Scope 3 Category 11 (use of sold products) absolute reduction target, which directly addresses the energy consumed by appliances, power tools, HVAC systems, and water fixtures used by millions of customers annually. This commitment, combined with the battery-powered outdoor equipment transition and the WaterSense product programme, represents the most commercially scaled Scope 3 use-phase emissions reduction strategy in U.S. retail.

• Combined Scope 1 and 2: approximately 1,821,000 tCO2e in FY2023; 37% below FY2020 baseline; ahead of pace on 42% target
• FY2020 baseline Scope 1 and 2: approximately 2,892,000 tCO2e​
• Scope 3 Category 11 absolute reduction target: SBTi-validated; specific reduction percentage not disclosed separately​
• 100% renewable electricity target for all facilities worldwide by 2030
• 204 hydrogen fuel cell installations across U.S. store operations
• LED retrofits completed at 147 stores; store electricity use reduced 46% over 10 years​
• Battery-powered outdoor power equipment target: 85%+ of U.S. and Canada sales by FY2028; projected to reduce 2,000,000+ tCO2e annually
• No formal enterprise-wide net zero target date covering Scope 1, 2, and full Scope 3 published as of FY2024​

Water Stewardship

Home Depot’s water sustainability programme operates at two levels: operational water conservation across stores and garden centres, and customer-facing water savings through the sale of EPA WaterSense certified products. The company has committed to help customers reduce water use by 100 billion gallons through purchase and proper use of water-saving products by 2026, starting from a 2023 baseline. WaterSense products sold by Home Depot saved customers approximately 30 billion gallons of water in FY2024 alone, equivalent to $643 million in avoided water utility costs, representing approximately 30% of the 2026 cumulative target in a single year. Home Depot has historically captured rainwater through reclamation tanks in garden centres to reduce reliance on municipal water supplies for irrigation.

• 100 billion gallons customer water reduction target through WaterSense product sales by 2026​
• WaterSense products sold in FY2024: saved approximately 30 billion gallons; $643 million in avoided utility costs​
• Rainwater capture through garden centre reclamation tanks: 72.5 million gallons captured historically​
• Operational water tracking through utility billing data and store metering programmes​
• EPA WaterSense Sustained Excellence Award, the highest water conservation honour, won three consecutive times​
• No formal operational water withdrawal reduction target with a specific percentage and baseline year published for FY2024​

Regenerative Agriculture

As a home improvement retailer, Home Depot does not operate an agricultural supply chain. Its closest contribution to regenerative land use is through its sustainable forestry programme, which prioritises FSC-certified wood and certified timber from responsibly managed forests, and its partnership with the Arbor Day Foundation, announced in October 2025, committing to reforest 2,000 acres across Florida, Texas, Brazil, and the Amazon and Atlantic forests. The longleaf pine habitat restoration component in Florida and Texas addresses one of the most ecologically depleted forest types in North America, with longleaf pine ecosystems having declined from 90 million acres historically to fewer than 3 million acres today.

• Arbor Day Foundation partnership: 2,000 acres committed for reforestation across Florida, Texas, Brazil, Amazon basin, and Atlantic forests
• First 500+ acres: longleaf pine habitat restoration (Florida, Texas), Amazon forest regeneration, and Atlantic forest biodiversity protection (Brazil)​
• Sustainable forestry programme active for 25+ years; Wood Purchasing Policy first issued in 1999
• No dedicated regenerative agriculture programme; nature contributions delivered through forestry and reforestation partnerships​

Deforestation and Biodiversity

Home Depot’s deforestation commitment is anchored by its Wood Purchasing Policy, most recently revised in January 2024, which requires FSC certification for wood sourced from the four highest-risk regions: the Amazon basin, the Congo basin, Papua New Guinea, and the Solomon Islands. This regional, risk-based approach to high-deforestation-risk origin applies since 2018 and covers all direct wood product suppliers at Tier 1. The company participates in the CDP Forests survey and has issued a formal deforestation assessment following a 2022 shareholder vote, expanding transparency on its wood supply chain provenance and certification coverage.

The Arbor Day Foundation partnership launched in October 2025 is the first formally quantified biodiversity and reforestation investment in Home Depot’s history. The 2,000-acre commitment, with the first 500+ acres targeting endangered longleaf pine in the U.S. South and Amazon and Atlantic forest regeneration in Brazil, aligns the reforestation investment with the highest-biodiversity-value forest types globally.​

• Wood Purchasing Policy (revised January 2024): FSC certification required for Amazon, Congo, Papua New Guinea, and Solomon Islands-origin wood​
• High-risk origin FSC requirement in place since 2018​
• CDP Forests survey participant; formal deforestation assessment published following 2022 shareholder resolution​
• Arbor Day Foundation partnership: 2,000 acres across longleaf pine, Amazon, and Atlantic forests​
• Investors raised deforestation concerns about plywood sourcing from Ecuador’s Chocó region and the Brazilian Cerrado in 2022; Home Depot committed to a deforestation policy review and third-party assessment​
• Wood suppliers encouraged to enhance biodiversity considerations and support ecological balance within Wood Purchasing Policy standards​

Packaging and Circular Economy

Home Depot achieved two significant packaging milestones in FY2024: the successful elimination of expanded polystyrene (EPS) foam and polyvinyl chloride (PVC) film from all private-brand packaging, and the redesign of approximately 280 private-brand packages to reduce size and materials, eliminating more than 39 million square feet of PVC film. Looking forward, all new private-brand fiber packaging for new SKUs is committed to be compostable, recyclable, or made with recycled content by the start of 2027, and a goal to reduce or convert 200 million pounds of plastic used in products and packaging by 2028 from a 2020 baseline is ongoing. The company’s reverse logistics and market delivery operations recycle metals, hard plastics, shrink wrap, EPS foam, and chlorofluorocarbons (CFCs) from reclaimed appliances, completing the circular loop for hard-to-recycle materials.

• EPS foam and PVC film eliminated from all private-brand packaging in FY2024​
• 280 private-brand packages redesigned: more than 39 million square feet of PVC film eliminated​
• All new private-brand fiber packaging for new SKUs: compostable, recyclable, or recycled content by start of 2027​
• 200 million pounds of plastic reduced or converted to more sustainable materials by 2028, from a 2020 baseline​
• Circular material recovery: metals, hard plastics, shrink wrap, EPS foam, CFCs from appliances recycled through reverse logistics
• 860,900+ wooden pallets reused across operations​
• 1 million+ pounds of plastic recycled through customer take-back and operational recovery​
• 210,000+ pounds of shredded paper recycled in FY2023​
• All new private-brand patio and home decor products must exclude intentionally added PFAS chemicals by 2025​

Human Rights and Responsible Sourcing

Home Depot’s responsible sourcing programme spans 15+ years and applies a comprehensive audit framework covering labour rights, factory safety, working hours, wages, and environmental compliance across Tier 1 direct suppliers. The company committed to spend $5 billion annually with diverse Tier 1 suppliers by 2025, up from $3.3 billion in 2021, representing one of the largest supplier diversity spending commitments in U.S. retail. Home Depot Canada published its Canadian Supply Chains Act report covering the steps taken to prevent and reduce forced labour risk in its supply chain, extending formal human rights due diligence obligations to its Canadian business unit.

• $5 billion annual diverse supplier spending goal by 2025, up from $3.3 billion in 2021​
• Responsible sourcing programme: 15+ years; covers factory safety, labour rights, wages, and environmental compliance​
• Canadian Supply Chains Act report: published covering forced labour prevention and reduction steps​
• Wood Purchasing Policy requires suppliers to maintain a sourcing policy supporting sustainable forest management and transparency​
• Deforestation assessment conducted by a third-party firm following 2022 shareholder resolution​

Nutrition and Health

Home Depot does not operate in the food or nutrition sector. Its most directly health-relevant sustainability commitment is the responsible chemistry programme, under which all new private-brand patio and home decor products must exclude intentionally added PFAS chemicals by 2025. This commitment extends to over-the-counter chemicals including paint, cleaning products, and garden chemicals sold under Home Depot’s owned brands, reducing customer and worker exposure to persistent chemicals of concern. The battery-powered outdoor equipment transition also has a direct community health benefit: battery-powered lawn mowers and garden equipment emit zero exhaust, reducing air pollution and noise exposure in residential neighbourhoods.

• All new private-brand patio and home decor products: no intentionally added PFAS by 2025​
• Battery-powered outdoor equipment transition: eliminates residential exhaust emissions from push mowers and handheld equipment​
• Responsible chemistry programme covers owned brand household products, garden chemicals, and cleaning products​

Community and Social Impact

Home Depot’s community investments are concentrated in housing, workforce development, and disaster relief, reflecting its retail identity as a home improvement business. In Canada, the company pledged CA$125 million to create pathways for youth at risk of or experiencing homelessness, and had invested CA$10.4 million against this pledge by end of 2023, with a CA$70 million cumulative total against its 2030 pledge. The Team Depot Associate Volunteer Programme mobilises associates for community builds, housing repairs, and disaster response across the U.S. and Canada. The Orange Fund provides financial assistance grants to associates facing personal hardship, with 1,020+ associates receiving Orange Fund grants in FY2023.

• CA$125 million pledge for youth housing pathways in Canada; CA$70 million invested cumulatively to end of 2023​
• 180+ organisations supported in Canada in 2023; CA$10.4 million invested in that year​
• 1,020+ associates received Orange Fund grants in FY2023; 160+ scholarships awarded to children of associates​
• Arbor Day Foundation partnership creates community green space and habitat restoration value across Florida, Texas, and Brazil​
• Target Circle-equivalent customer fundraising through Round Up drives for charitable causes​

Governance and Transparency

Home Depot’s FY2024 Living Our Values Report explicitly acknowledges which targets are achieved, on track, and behind pace, maintaining the transparent reporting approach it has applied since 2019. The company submits annual CDP Climate and Forests questionnaire responses, providing independent disclosure against the TCFD framework and receiving leadership recognition from CDP for climate action. Scope 1, 2, and Scope 3 Category 11 emissions data are third-party assured, providing external verification for the most commercially material emissions categories. Ron Jarvis serves as Chief Sustainability Officer, with formal board-level ESG oversight embedded in the company’s corporate governance structure.

Technology and Innovation

Home Depot’s most commercially impactful sustainability technology innovation is the coordinated product line transition from gasoline to battery-powered outdoor power equipment, which directly mobilises the company’s position as the world’s largest home improvement retailer to decarbonize the approximately 100 million residential lawn and garden equipment devices in use across the U.S. and Canada. The transition to battery technology, supported by leading brands including Ryobi, Milwaukee, Makita, and DeWalt, is projected to eliminate more than 2,000,000 metric tonnes of GHG annually from residential equipment exhaust once the 85%+ sales threshold is reached by FY2028. This is the largest single downstream Scope 3 Category 11 emissions reduction commitment in U.S. retail, and the only one in the sector tied to a specific product category transition with a defined sales percentage threshold.

The 204-store hydrogen fuel cell programme is the largest fuel cell deployment in retail globally, generating electricity on-site through electrochemical conversion of hydrogen without combustion emissions. Combined with rooftop solar installations and offsite solar PPAs, the on-site generation portfolio provides renewable electricity at the facility level without relying solely on grid mix or REC purchases. The LED retrofit programme, with 147 stores completed and store electricity use reduced by 46% over 10 years, demonstrates consistent operational energy efficiency delivery at scale across a 2,340-store estate.

• Battery-powered outdoor power equipment: 85%+ of U.S. and Canada sales by FY2028; 2,000,000+ tCO2e of annual GHG reduction
• 204 hydrogen fuel cell installations across U.S. stores: largest fuel cell deployment in global retail
• LED retrofits: 147 stores completed; 46% reduction in store electricity use over 10 years​
• WaterSense customer water savings: approximately 30 billion gallons in FY2024; $643 million in avoided utility costs​
• EPS foam eliminated from private-brand packaging; 280 packages redesigned; 39 million square feet of PVC film removed​
• Eco Actions digital platform: customer-facing sustainability tool enabling product discovery for energy- and water-saving products​

Global Partnerships and Advocacy

Home Depot participates in SBTi, CDP (Climate and Forests), the U.S. EPA WaterSense programme, and the UN Global Compact. The Arbor Day Foundation partnership launched October 2025 is the most significant external nature partnership in Home Depot’s history. The company advocates for Extended Producer Responsibility frameworks and for continued investment in U.S. recycling infrastructure, identifying infrastructure limitations as the primary barrier to more rapid packaging recyclability improvement.

Source

https://corporate.homedepot.com/sites/default/files/2025-08/2025_Home%20Depot_Living_Our_Values.pdf
https://corporate.homedepot.com/sites/default/files/2024-08/2024_ESG_Report_The_Home_Depot.pdf
https://ecoactions.homedepot.com/our-commitment/
https://www.smartenergydecisions.com/news/home-depot-sets-2028-goal-for-85-of-battery-powered-products/
https://ecoactions.homedepot.com/blog/2024-end-of-the-year-recap/
https://corporate.homedepot.com/news/sustainability/home-depot-and-arbor-day-foundation-plant-change

Progress vs. Target Tracker

Commitment	Target	Current Status	Assessment
42% absolute Scope 1 and 2 reduction vs FY2020 baseline	FY2030	~37% reduction achieved in FY2023; ahead of pace	On Track
100% renewable electricity for all facilities	2030	Progress ongoing; fuel cells, solar, and PPAs active	On Track
Absolute Scope 3 Category 11 (use of sold products) reduction (SBTi-validated)	FY2030	Battery equipment and WaterSense transitions progressing; specific % not separately disclosed ​	On Track
85%+ of U.S. and Canada outdoor power equipment sales battery-powered	FY2028	Progression ongoing with Ryobi, Milwaukee, Makita, DeWalt; exact FY2024 rate not separately disclosed ​	On Track
Customer energy savings: $600 million on energy costs	2026	Eco Actions programme active; specific FY2024 progress not separately disclosed ​	In Progress
Customer water savings: 100 billion gallons through WaterSense products	2026	~30 billion gallons saved in FY2024; on track for 2026 goal ​	On Track
EPS foam and PVC film eliminated from private-brand packaging	2024	Achieved: EPS and PVC eliminated; 39M sq ft of PVC film removed ​	Achieved
All new private-brand fiber packaging: recyclable, compostable, or recycled content	By start of 2027	Commitment active; redesign of 280 packages completed	On Track
200 million pounds of plastic reduced or converted	2028	Progress ongoing; specific FY2024 reduction volume not separately disclosed ​	In Progress
All new private-brand patio and home decor products: no intentionally added PFAS	2025	Commitment stated as active; specific FY2024 compliance rate not disclosed ​	In Progress
$5 billion annual diverse supplier spending	2025	$3.3 billion in 2021; 2025 achievement rate not separately disclosed in FY2024 ​	In Progress
Reforest 2,000 acres (Arbor Day Foundation)	Ongoing	First 500+ acres planted; Amazon, Atlantic forest, longleaf pine ​	On Track
No formal enterprise-wide net zero target date (all scopes)	N/A	No specific date published; Scope 3 Category 11 target does not cover all Scope 3 ​	Not Committed

Source

https://corporate.homedepot.com/sites/default/files/2025-08/2025_Home%20Depot_Living_Our_Values.pdf
https://net0tracker.com/corporates.html/Home%20Depot/
https://corporate.homedepot.com/sites/default/files/2024-08/2024_ESG_Report_The_Home_Depot.pdf

Key Sustainability Innovations and Technologies

The battery-powered outdoor power equipment transition is Home Depot’s most commercially significant sustainability innovation, structurally differentiated from operational GHG reduction programmes because it decarbonizes the point of use in customer homes and gardens rather than the retailer’s own operations. The 2,000,000 tCO2e annual GHG reduction projected once the 85%+ sales threshold is reached by FY2028 is larger than most retailers’ entire Scope 1 and 2 footprints, and is delivered entirely through product mix shift rather than capital expenditure on renewable energy infrastructure. By partnering with market-leading power tool brands to develop battery performance that matches gasoline runtime expectations, Home Depot is addressing the customer behaviour barrier, not just the product supply barrier, to clean equipment adoption.

The 204-store hydrogen fuel cell programme is the most advanced on-site clean power generation portfolio in global retail. Unlike solar, which generates intermittently and requires grid backup, hydrogen fuel cells generate electricity continuously from stored hydrogen, providing baseload power supply that reduces reliance on grid electricity around the clock. At 41.3 MW of fuel cell capacity across U.S. stores, the programme represents a commercially scaled test of hydrogen as a retail power source well ahead of any industry peer.

The Eco Actions digital platform is the primary consumer-facing tool through which Home Depot converts its sustainability commitments into product discovery experiences for millions of customers annually. By curating WaterSense, Energy Star, and FSC-certified products through a dedicated sustainability discovery channel, the programme makes it easier for customers to select products with lower energy, water, and materials footprints than conventional alternatives. Home Depot estimates this programme enabled approximately $643 million in avoided customer water utility costs in FY2024 alone through WaterSense product sales.​

• Battery-powered outdoor equipment: 85%+ sales target by FY2028; 2,000,000+ tCO2e annual reduction projected
• 204-store hydrogen fuel cell programme: 41.3 MW capacity; largest fuel cell deployment in global retail
• Eco Actions digital platform: WaterSense and Energy Star product curation; $643 million in customer water cost avoidance in FY2024​
• LED retrofit: 147 stores; 46% store electricity reduction over 10 years
• EPS foam-to-insulation circular programme: compressed EPS from packaging sold to insulation manufacturers
• Reverse logistics CFC recovery: chlorofluorocarbons recovered from traded-in appliances; prevents high-GWP refrigerant release

Source

https://corporate.homedepot.com/sites/default/files/2025-08/2025_Home%20Depot_Living_Our_Values.pdf
https://www.smartenergydecisions.com/news/home-depot-sets-2028-goal-for-85-of-battery-powered-products/
https://esgnews.com/the-home-depot-embraces-circular-economy-turning-waste-into-opportunity/
https://ecoactions.homedepot.com/blog/2024-end-of-the-year-recap/

Measurable Impacts

Home Depot’s most verified operational sustainability result is the approximately 37% Scope 1 and 2 reduction from the FY2020 baseline achieved by FY2023, placing the company ahead of pace for the FY2030 42% SBTi-validated target. The 46% reduction in store electricity use over 10 years, delivered through LED retrofits, fuel cell installations, and building management system optimisation across 2,340 stores, represents the most sustained operational energy efficiency improvement in U.S. retail at this scale. Customer-facing water savings of approximately 30 billion gallons in FY2024 through WaterSense products demonstrate that product mix sustainability translates directly into quantified environmental impact at the point of use.

The EPS foam and PVC film elimination milestone delivered in FY2024, covering the redesign of 280 private-brand packages and eliminating 39 million square feet of PVC film, is a concrete circular economy delivery against a specific material elimination target. The 860,900+ wooden pallets reused, 1 million+ pounds of plastic recycled through operations, and reverse logistics CFC recovery from appliances reflect a mature operational waste management programme generating measurable outputs across multiple material streams.

• Scope 1 and 2 reduction: ~37% below FY2020 baseline; ahead of pace for 42% target by FY2030
• Store electricity use: 46% reduction over 10 years​
• Hydrogen fuel cells: 204 stores; 41.3 MW capacity​
• WaterSense customer savings: ~30 billion gallons in FY2024; $643 million in avoided utility costs​
• EPS and PVC eliminated from private-brand packaging; 280 packages redesigned; 39 million sq ft PVC removed​
• 860,900+ wooden pallets reused; 1 million+ pounds plastic recycled​
• Reforestation: 500+ acres planted (first phase of 2,000-acre Arbor Day Foundation commitment)​
• EPA WaterSense Sustained Excellence Award: three consecutive wins​

Source

https://corporate.homedepot.com/sites/default/files/2025-08/2025_Home%20Depot_Living_Our_Values.pdf
https://net0tracker.com/corporates.html/Home%20Depot/
https://ecoactions.homedepot.com/blog/2024-end-of-the-year-recap/

Challenges and Areas for Improvement

The absence of a formal enterprise-wide net zero target date covering all three scopes is the most significant governance gap in Home Depot’s sustainability framework. The Scope 3 Category 11 target covers use-phase emissions from sold products, but omits Scope 3 categories covering purchased goods, upstream logistics, employee commuting, business travel, and downstream logistics, meaning a material portion of the total Scope 3 footprint remains unbound by any formal reduction commitment. With full Scope 3 estimated at over 5 million tCO2e in recent baseline years and the use-of-sold-products category the dominant component, the gap between the Scope 3 Category 11 target and a full Scope 3 net zero commitment is structurally significant.

The wood supply chain remains a reputational and sourcing risk. The 2022 shareholder vote forcing a deforestation policy review, triggered by investor concerns about plywood sourcing from Ecuador’s Chocó region and the Brazilian Cerrado, demonstrated that the existing Wood Purchasing Policy and FSC certification requirement for high-risk origin regions has not resolved all deforestation-linked supply chain exposure. The review committed Home Depot to a third-party deforestation assessment, but the pace at which findings from that assessment have been converted into revised sourcing requirements or specific supplier-level certification improvements has not been separately disclosed in the FY2024 Living Our Values Report.

The FY2024 battery-powered equipment transition rate against the 85% FY2028 target has not been separately disclosed, creating a transparency gap for the company’s most commercially significant downstream Scope 3 reduction commitment. For a target of this commercial and environmental magnitude, annual progress disclosure with specific sales percentage figures by product category is needed to allow stakeholders to assess whether the FY2028 milestone is on track or at risk. Without this data, the 85% FY2028 commitment cannot be independently monitored.​

• No formal enterprise-wide net zero target date (Scope 1, 2, and full Scope 3) published​
• Scope 3 target covers Category 11 (use of sold products) only; multiple upstream and downstream categories unbound​
• Battery-powered equipment FY2024 transition rate vs 85% FY2028 target not separately disclosed in FY2024 report​
• $5 billion diverse supplier spending 2025 target achievement rate not separately disclosed in FY2024 Living Our Values Report​
• Wood supply chain deforestation risk: Chocó and Cerrado plywood sourcing concerns raised by investors in 2022; third-party assessment completed but specific follow-on sourcing changes not separately disclosed​
• 200 million pounds plastic reduction progress against 2028 target not disclosed as a specific FY2024 figure​
• PFAS exclusion in new private-brand patio and home decor: 2025 target compliance rate not separately disclosed for FY2024​

Source

https://net0tracker.com/corporates.html/Home%20Depot/
https://corporate.homedepot.com/sites/default/files/2025-08/2025_Home%20Depot_Living_Our_Values.pdf
https://news.mongabay.com/2022/05/investors-force-home-depot-to-review-wood-sourcing-policy-over-logging-concerns/

Future Plans and Long-Term Goals

By FY2028, Home Depot targets 85%+ of U.S. and Canada outdoor power equipment sales from battery-powered products, and 200 million pounds of plastic reduced or converted across products and packaging from the 2020 baseline. By 2030, the company targets 100% renewable electricity for all facilities and a 42% absolute Scope 1 and 2 reduction from FY2020, and aims to progress toward the Scope 3 Category 11 absolute reduction commitment. The 2,000-acre Arbor Day Foundation reforestation programme extends over multiple years, with the first 500+ acres already planted across longleaf pine, Amazon, and Atlantic forest ecosystems. The Path to 2030 strategy will likely require a post-2030 framework announcement in the next one to two years to address the governance gap created by the absence of a net zero target date and a full Scope 3 commitment.

Source

https://ecoactions.homedepot.com/our-commitment/
https://corporate.homedepot.com/sites/default/files/2025-08/2025_Home%20Depot_Living_Our_Values.pdf
https://net0tracker.com/corporates.html/Home%20Depot/

Comparisons to Industry Competitors

Lowe’s Companies and Walmart are Home Depot’s most directly comparable retail sustainability peers. Lowe’s targets a 42% absolute Scope 1 and 2 reduction by 2030 from a 2020 baseline, identical to Home Depot’s target, and a 25% absolute Scope 3 Category 11 reduction by 2030, representing a more explicitly disclosed Scope 3 Category 11 target percentage than Home Depot’s disclosure. Walmart, operating at significantly larger scale with $650+ billion in revenue, targets net zero across its enterprise by 2040, a more comprehensive and time-specific commitment than Home Depot’s current framework, and reached 16 million metric tonnes of operational Scope 1 and 2 in 2024, a scale nearly nine times larger than Home Depot’s operational footprint. Both Walmart and Home Depot have invested in renewable energy through PPAs and on-site generation, though Walmart’s progress toward 50% renewable electricity globally is behind Home Depot’s more advanced fuel cell and solar deployment trajectory.

On packaging, both Home Depot and Walmart are struggling with recycled content and recyclability targets in flexible and plastic packaging, with both retailers citing infrastructure limitations as the primary barrier, but Home Depot’s specific milestone of eliminating EPS foam and PVC from private-brand packaging in FY2024 is more advanced than most large-format retail peers. On Scope 3 downstream emissions, Home Depot’s battery-powered outdoor equipment transition, projected to eliminate 2,000,000 tCO2e annually, is the most explicitly quantified and product-specific Scope 3 Category 11 reduction commitment in the U.S. retail sector.

U.S. Home Improvement and Retail ESG Metrics (Latest Available Data)

Metric	Home Depot	Lowe’s	Walmart
Scope 1 and 2 (absolute)	~1,821,000 tCO2e in FY2023; 37% below FY2020 baseline ​	42% absolute reduction target by 2030 from 2020 baseline ​	16 million tCO2e in 2024; rose 1.1% ​
Net zero target	No formal enterprise net zero date published ​	No formal net zero date ​	Net zero enterprise by 2040 ​
Scope 3 target	Category 11 absolute reduction by FY2030 (SBTi-validated); % not disclosed ​	25% Category 11 absolute reduction by 2030 ​	Scope 3 at 636.6 million tCO2e; Project Gigaton supplier engagement; intensity down 6.2% since 2022 ​
Renewable electricity	100% target by 2030; 204 fuel cell stores; 147 LED retrofit stores	Renewable electricity progress ongoing ​	Nearly 50% globally in 2024 ​
Packaging circularity	EPS and PVC eliminated; 280 packages redesigned; 39M sq ft PVC removed ​	Packaging recyclability targets active ​	66.1% private brand packaging recyclable in 2024; PCR at 8% ​
Downstream product emissions	Battery OPE: 85%+ sales by FY2028; 2M tCO2e annual reduction ​	Battery OPE transition targets active ​	No equivalent product category transition commitment at same scale ​
Forestry and biodiversity	FSC high-risk origin requirement since 2018; 2,000 acres Arbor Day reforestation	FSC certification and responsible wood sourcing active ​	Project Gigaton includes supplier land use commitments ​
Water	WaterSense: ~30B gallons saved by customers in FY2024; 100B gallon target by 2026 ​	WaterSense product targets active ​	Water target active; specific customer savings not disclosed ​

Source

https://net0tracker.com/corporates.html/Home%20Depot/
https://corporate.homedepot.com/sites/default/files/2025-08/2025_Home%20Depot_Living_Our_Values.pdf
https://corporate.walmart.com/content/dam/corporate/documents/esgreport/2025/FY2025-Walmart-ESG-Report.pdf
https://trellis.net/article/walmart-2025-esg-update/

What to Watch: 12 to 18 Month Indicators

Battery-Powered Outdoor Equipment FY2024 and FY2025 Transition Rate

The battery-powered outdoor power equipment transition is Home Depot’s most commercially and environmentally significant sustainability commitment, projected to eliminate more than 2,000,000 tCO2e annually once the 85%+ sales threshold is reached by FY2028. The FY2024 Living Our Values Report did not disclose the FY2024 sales percentage of battery-powered units within the push mower and handheld outdoor equipment categories, creating the most significant transparency gap in the company’s sustainability disclosure. The FY2025 Living Our Values Report, expected August 2026, will be the first report with three to four years of cumulative transition data, providing the baseline trajectory against which the FY2028 milestone can be realistically assessed. If the annual transition rate is not progressing by at least 10 to 12 percentage points per year from a starting point in the 50 to 60% range in 2024, the 85% target by FY2028 is at risk. This single figure is the most important forward-looking sustainability data point in Home Depot’s entire disclosure framework.

Enterprise-Wide Net Zero Target Date Announcement

Home Depot’s Path to 2030 framework creates a governance gap after 2030: no formal net zero target date covering all scopes has been published as of the FY2024 Living Our Values Report. Peers including Walmart target net zero by 2040 across their enterprise, and the SBTi is progressively raising its expectation for large companies to publish long-term absolute Scope 3 net zero commitments in addition to near-term intensity targets. The next 12 to 18 months represent the natural window for Home Depot to announce a post-2030 sustainability strategy that includes an enterprise-wide net zero date, a full Scope 3 disclosure and reduction commitment extending beyond Category 11, and a 2035 or 2040 renewable electricity and emissions pathway. Absence of this framework by end of 2026 would leave Home Depot as the only major U.S. retailer in its revenue tier without a formal enterprise net zero commitment.

Wood Supply Chain Deforestation Third-Party Assessment Follow-Through

The third-party deforestation assessment committed in response to the 2022 shareholder vote has not resulted in publicly disclosed, specific supply chain sourcing changes or enhanced supplier certification requirements beyond the existing January 2024 Wood Purchasing Policy revision. The FY2025 Living Our Values Report will be the third annual report since the deforestation assessment commitment, and the first with sufficient elapsed time for the assessment findings to have been converted into revised supplier requirements, FSC certification coverage metrics, and specific origin-level risk reduction data. The indicator to watch is whether Home Depot discloses the percentage of total wood volume by FSC or equivalent certification status, a specific plywood origin audit result for Chocó and Cerrado regions, and any updated supplier policy requirements arising from the deforestation assessment. Without these disclosures, the 2022 shareholder engagement will have produced a policy revision and an assessment report without demonstrable supply chain change.

Source

https://corporate.homedepot.com/sites/default/files/2025-08/2025_Home%20Depot_Living_Our_Values.pdf
https://net0tracker.com/corporates.html/Home%20Depot/
https://www.smartenergydecisions.com/news/home-depot-sets-2028-goal-for-85-of-battery-powered-products/
https://news.mongabay.com/2022/05/investors-force-home-depot-to-review-wood-sourcing-policy-over-logging-concerns/

Home Depot’s sustainability programme has two genuinely distinctive characteristics that position it differently from retail and consumer goods peers. The 204-store hydrogen fuel cell programme, representing 41.3 MW of on-site clean power generation, is the most advanced commercial fuel cell deployment in global retail and demonstrates a willingness to invest in infrastructure-level clean energy technology rather than relying purely on grid mix RECs. The battery-powered outdoor power equipment transition, if delivered at the 85%+ FY2028 milestone, will represent the single largest downstream Scope 3 Category 11 GHG reduction in U.S. retail history, achieved not through operational decarbonization but through product assortment strategy and supplier co-development. These two programmes reflect a company that has identified where its business model creates leverage for environmental impact, and is deploying capital and commercial relationships at those leverage points.

The structural weakness of Home Depot’s sustainability framework is governance architecture: no enterprise net zero date, a Scope 3 commitment covering only Category 11, and a lack of annual progress transparency for its two most commercially critical commitments, the battery-powered equipment transition rate and the diverse supplier spending total. A company with Home Depot’s market position and brand equity as the world’s largest home improvement retailer, operating in a sector where customers are making the most carbon-intensive purchasing decisions of their lives, such as HVAC systems, water heaters, insulation, and appliances, has the commercial influence to set and lead a far more comprehensive Scope 3 reduction framework than the current Category 11-only commitment permits.

Three strategic takeaways for practitioners benchmarking or replicating Home Depot’s approach:

1. Product category transitions are the highest-leverage sustainability interventions available to large-format retailers, and the battery-powered outdoor equipment model is the clearest proof of concept for how to structure them. Home Depot’s approach combined a specific sales percentage threshold (85%), a specific product category boundary (push mowers and handheld outdoor equipment), a specific timeline (FY2028), a quantified GHG reduction projection (2,000,000 tCO2e annually), and existing supplier relationships with market-leading brands to create a commercially executable transition programme. Practitioners designing Scope 3 Category 11 reduction programmes for retail clients should map the product categories with the highest cumulative use-phase emissions, identify the technology transition pathway available in each, and structure commitments using the same five-element architecture Home Depot used for the outdoor equipment programme.
2. On-site clean power generation through hydrogen fuel cells is a scalable model for retailers operating large-format stores with baseload electricity demand. The 204-store fuel cell programme demonstrates that hydrogen-based on-site generation is commercially viable at retail scale when structured as a supplier partnership, where the hydrogen supplier installs and operates the fuel cell equipment and the retailer purchases electricity on a long-term offtake basis. Practitioners advising real estate-intensive retailers on renewable energy strategy should evaluate the fuel cell offtake model as a complement to rooftop solar for facilities where roof space is insufficient for full electricity generation, where grid connection is expensive, or where continuous baseload power is required.
3. The EPS foam and PVC film elimination milestone demonstrates that material-specific packaging elimination targets, set with a specific deadline and supported by supplier packaging redesign funding, deliver more measurable outcomes than enterprise-level recyclability percentage targets. By naming the specific materials to be eliminated, setting a clear deadline, and providing design support for the 280 package redesigns required, Home Depot created a programme that could be executed and verified unambiguously. Practitioners designing packaging sustainability programmes for retail clients should identify the two or three highest-priority material elimination targets within the current packaging portfolio, fund the design work required to eliminate them, and set public commitments at the material level rather than at the portfolio-level recyclability percentage level, where infrastructure gaps guarantee underperformance.​

Source

https://corporate.homedepot.com/sites/default/files/2025-08/2025_Home%20Depot_Living_Our_Values.pdf
https://net0tracker.com/corporates.html/Home%20Depot/
https://www.smartenergydecisions.com/news/home-depot-sets-2028-goal-for-85-of-battery-powered-products/
https://esgnews.com/the-home-depot-embraces-circular-economy-turning-waste-into-opportunity/
https://corporate.homedepot.com/news/sustainability/home-depot-and-arbor-day-foundation-plant-change