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1、TABLE OF CONTENTSThis report covers The Home Depots environmental,social and governance(ESG)progress in our fiscal year 2022.CEO LETTER3OVERVIEW5About Home Depot6Our ESG Value Chain82022 Ratings&Recognition9Our ESG Goals and Progress102022 ESG Highlights14Our Approach to ESG18FOCUS ON OUR PEOPLE25Di

2、versity,Equity&Inclusion27Associate Safety33Associate Engagement35Learning&Development38Benefits40The Homer Fund45OPERATE SUSTAINABLY46Carbon Emissions Reduction50Sustainable Forestry56Circularity58Water Conservation65Responsible Chemistry67Promoting Customer Eco Actions70OverviewFocus on Our People

3、Operate SustainablyStrengthen Our CommunitiesOur BusinessReporting FrameworksUnless otherwise noted,we report on activities that fall in our fiscal year(FY)2022,which started on January 31,2022 and ended on January 29,2023.STRENGTHEN OUR COMMUNITIES77Community Partnerships79Supplier Diversity83Veter

4、an Support85Trades Training:Our Pathto Pro Programs87Disaster Relief&Response90RESPONSIBLE BUSINESS PRACTICES92Code of Conduct93Responsible Sourcing andHumanRights94Corporate Governance97Government Relations99Corporate Taxes102Data Security&Privacy104ESG PERFORMANCE DATA ANDREPORTING FRAMEWORKS107ES

5、G Transparency108Global Reporting Initiative(GRI)Standards111Sustainability AccountingStandards Board(SASB)Disclosure Matrix118Task Force on Climate-RelatedFinancial Disclosures(TCFD)Framework121EEO-1 Report123Resources124About This ReportThe Home Depot publishes our annual ESG Report to share our E

6、SG activities with our stakeholders in a timely,transparent manner.We include details on our approach,our policies and practices,our metrics,targets and goals,and our stakeholder engagement.Reporting Period and ScopeUnless otherwise noted,we report on activities that were taken during our 2022 fisca

7、l year,which started on January 31,2022 and ended on January 29,2023.Unless otherwise noted,this report focuses on The Home Depots in-store and online operations within the U.S.,which represented more than 90 percent of sales in our 2022 fiscal year.This report also includes data from our Canada and

8、 Mexico operations.HD Supply Holdings Inc.data is included where noted throughout this report.This report also contains information on The Home Depot Foundation,The Homer Fund and Team Depot volunteers.Reporting StandardsThe Home Depot has reported with reference to the Global Reporting Initiative(G

9、RI)standards for our 2022 fiscal year.This report also contains disclosures that align with Sustainability Accounting Standards Board(SASB)Multiline and Specialty Retailers&Distributors and Building Products&Furnishing industry standards,the recommendations of the Task Force on Climate-related Finan

10、cial Disclosures(TCFD)framework,and the United Nations Sustainable Development Goals(SDGs).OverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting FrameworksForward-Looking Statements:All statements in this report that are not historical constitute“forward-looki

11、ng 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;our business plans,strategies,initiatives an

12、d objectives and their expected execution and 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

13、issues,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 Companys products or services;the impa

14、ct 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

15、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 dif

16、fer materially.These risks and uncertainties include,but are not limited to,those described in the“Risk Factors”section and elsewhere in our most recently filed Annual Report on Form 10-K,and also in subsequent reports we file with the Securities and Exchange Commission.We encourage you to review th

17、ese filings.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 Commis

18、sion 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 no

19、t be considered material for SEC reporting purposes.CEO LETTERGROWING WITH PURPOSEWere committed to investing in our people,running a responsible business and taking action where we have the greatest impact.When the first Home Depot opened its doors 44 years ago,our founders not only disrupted retai

20、l,but also gave us a blueprint on how to run the company and make decisions.We talk about it as ESG today,but weve lived these principles since the beginning through our culture and values.While our business has changed since 1979,our values remain the same.We know that when we invest in running a r

21、esponsible,sustainable company,we make our business stronger,more agile,and more resilient.That encourages good business practices and enables us to consistently deliver industry-leading results.In alignment with our values,we organize our approach to ESG in three key pillars Focus on Our People,Ope

22、rate Sustainably,and Strengthen Our Communities.As a company of doers,were focused on making progress.Were pleased to announce several new goals and the progress weve made on behalf of our associates,our communities,and our world.Focus on Our PeopleTo provide the best customer experience in home imp

23、rovement,were focused on creating the best associate experience in retail.To that end,weve invested billions of dollars in wage and benefit enhancements over the past several years,including approximately$1 billion in annualized wage investment we announced at the beginning of this fiscal year.And w

24、hile we will continue to invest in competitive wages and benefits,we also focus on the tools,training,and development opportunities that make working at The Home Depot rewarding.By 2028,we will provide 10 million hours of training to frontline associates and 2.5 million hours of leadership training.

25、And over the next five years,well create 75,000 career advancement opportunities for our frontline associates.Operate SustainablyAs the worlds largest home improvement retailer,we recognize our unique position to leverage our scale to enact positive change throughout our business operations and supp

26、lier relationships.Were proud to announce our new emission reduction targets,which were developed in accordance with the rigorous science-backed standards of the Science Based Targets initiative(SBTi)and have been submitted to the SBTi for approval.Submitting our targets to SBTi,a globally recognize

27、d organization,provides accountability and helps demonstrate our commitment to reducing our emissions in line with the latest climate science.We aim to reduce our Scope 1 and 2 emissions by 42%by the end of 2030 and reduce Scope 3 Use of Sold Products emissions by 25%by the end of 2030,both from a 2

28、020 base year.OverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT3“We talk about it as ESG today,but weve lived these principles since the beginning through our culture and values.”Ted Decker,Chair,President&CEOThe Ho

29、me Depots most significant environmental impact comes from the products we sell,and our biggest opportunity to create change is providing customers with product selections that reduce their carbon impact.We recently announced that by the end of 2028,85%of U.S.and Canadian sales of push mowers and ha

30、ndheld outdoor lawn equipment will be powered by rechargeable battery technology.This transition from gas to battery power will reduce over 2 million metric tons of greenhouse gases annually from residential lawn equipment exhaust.We also pledge to help customers save$600 million in energy costs and

31、 reduce water usage by 100 billion gallons over the next three years(by year-end 2026).That is equivalent to the water used in 62.5 million showers.Strengthen Our CommunitiesWe strengthen our communities by giving back,both financially and through our associates time and efforts.Weve seen the dramat

32、ic effects of natural disasters on our communities.Were dedicated to helping people rebuild and recover quickly from these devastating events.In 2022,The Home Depot Foundation committed more than$7 million to disaster response and relief.The Home Depot Foundation and Team Depot also continued to sup

33、port our communities.In 2022,the Foundation surpassed its commitment to train 20,000 skilled tradespeople,six years ahead of schedule.Following this accomplishment,the Foundation invested an additional$3.7 million to address the skilled trades gap.Supporting veteran communities remains core to The H

34、ome Depot Foundations efforts.By the end of 2022,the Foundation had invested over$450 million in veteran causes,with Team Depot donating more than 1.4 million hours of sweat equity to veteran service projects since 2011.More details on our goals are available on page10.I want to thank our associates

35、 and supplier partners for the progress weve made and continue to make as a company.Thank you for the many ways you help us do our part and live our values.TED DECKERChair,President&CEOOverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HO

36、ME DEPOT ESG REPORT4“We know that when we invest in running a responsible,sustainable company,we make our business stronger,more agile,and more resilient.”OVERVIEWAbout Home Depot6Our ESG Value Chain82022 Ratings&Recognition9Our ESG Goals and Progress 102022 ESG Highlights 14Our Approach to ESG18Ove

37、rviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting FrameworksWe have three key pillars of focus for our Environmental,Social and Governance(ESG)strategy:Focus on Our People,Operate Sustainably,and Strengthen Our Communities.We believe our efforts in these area

38、s give us a competitive advantage and create long-term value for our associates,customers,communities and other stakeholders.ABOUT HOME DEPOTWere proud to be the worlds largest home improvement retailer.In more than 2,300 stores across North America,we aspire to excel in service to our customers,ass

39、ociates,communities and shareholders.Thats what leadership means to us.2022:Our Business2022:Our Performance2,007stores in the U.S.Over470,000orange-blooded associatesGrew sales 4.1%to over$157 billionOpened6new stores182stores in CanadaMore than2,000,000products sold onlineDiluted earnings per shar

40、e were$16.69,an increase of 7.5%compared to fiscal 2021Total company comparable store salesincreased3.1%and U.S.comp salesincreased 2.9%133stores in MexicoTypical store has104,000sq ft of indoor retail spaceOur Home Depot FamilyOverviewFocus on Our PeopleOperate SustainablyStrengthen Our Communities

41、Our BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT6Our Eight Core ValuesThe Home Depot FoundationA 501(c)(3)public charity that provides funding and partners with other nonprofits around three focus areas:U.S.veterans,trades training and disaster relief.Read more about The Home Depot Fou

42、ndation here.The Homer FundA 501(c)(3)charity exclusively for our associates and their families,with the majority of contributions coming from fellow associates.Read more about The Homer Fund here.Team DepotOur associate volunteer force improves the homes and lives of veterans and helps communities

43、affected by natural disasters.Read more about Team Depot here.OverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT7Doing the Right ThingBuilding Strong RelationshipsExcellent Customer ServiceGiving BackRespect for AllP

44、eopleTaking Care of Our PeopleEntrepreneurial SpiritCreating Shareholder ValueRespect for all People Maintain a nondiscrimination and zero tolerance harassment policy Foster mutual respect Welcome all associates as team membersDoing the Right Thing Make responsible decisions Take action at the right

45、 time Understand our impactsBuilding Strong Relationships Build trust and lasting relationships Care for our people and connections Foster courage,talent and integrityGiving Back Help our communities thrive Support important causes Share our time,energy and resourcesExcellent Customer Service Offer

46、products and services Provide low-cost product selection Share knowledge with customers Maximize product benefitsCreating Shareholder Value Pursue long-term value and growth Deliver investment returns to ourinvestors Engage with our shareholdersEntrepreneurial Spirit Serve customers with innovation

47、Continuously improve our business Spread best practices throughout thecompanyTaking Care of our People Listen and respond to our associatesneeds Create opportunity from within Provide helpful benefits and training Build a supportive team cultureOUR ESG VALUE CHAINOverviewFocus on Our PeopleOperate S

48、ustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT8The Home Depots ESG strategy builds on the culture and values that we were founded on more than 40 years ago.Our ESG strategy is embedded in the operations of our business and we believe our Core Value

49、s and ESG priorities make our business stronger,more agile,and more resilient,which has led to value creation for our business,shareholders and otherstakeholders.We focus on our three key pillars of ESG to help us prioritize the areas in our value chain where we can have the greatest impact.Focus on

50、 our People Operate Sustainably Strengthen our Communities We are also committed to governance best practices to ensure responsible business practices around topics such as human rights,political involvement,and data security&privacy.UpstreamRAWMATERIALSPRODUCTMANUFACTURINGSUSTAINABILITY Sustainable

51、 Forestry Supplier Diversity Program Strategic Supplier SustainabilityGoals Responsible Chemistry Circularity and Sustainable Packaging Energy-and Water-Saving ProductsOur OperationsSOURCING ANDDISTRIBUTION ASSOCIATESSTOREOPERATIONSSTORE SUPPORTCENTERS Efficient Distribution Centers and Warehouses O

52、ptimized Transportation Responsible Sourcing Diversity,Equity and Inclusion(DEI)and Pay Equity Competitive Wages and Benefits Learning and Development Associate Engagement Team Depot The Homer Fund Carbon Emissions Reduction Energy and Water Efficiency Associate Safety Hazardous Materials Disposal C

53、orporate Governance Data Security and Privacy Government Relations Corporate Taxes Business Code of Conduct and EthicsDownstreamCUSTOMERSEND OF LIFECOMMUNITIES Eco Actions Program/Products Tool and Equipment Rental Recycling Responsible Waste Management The Home Depot Foundation Team Depot2022 RATIN

54、GS&RECOGNITIONLeading third-party sustainability rating organizations monitor and report on our progress.Below are some key ratings for our Company in 2022.Assesses action on climate change;scorewas based on 2021 data,the latestavailableAnalyzes corporate environmental,socialand governance(ESG)progr

55、essMeasures ESG risk and performance ofpublicly traded companiesMeasures resilience to long-term,financially relevant ESG risksIdentifies The Home Depot as addressing our environmental impacts and ensuring good environmental managementESG risks are low compared to the industryOn a scale of 0-5;we ra

56、nk betterthan the industry averageof 2.4Second-highest rating;positions us as an industry leader in key ESG areasHere are some of the organizations that recognized our efforts in 2022 to build a better workplace,business and world.ENERGY STAR Retail Partner of theYearNational Retail Federation No.4

57、Top RetailersGartner No.40 Top Supply ChainsFortune Worlds Most Admired Companies No.1 in Specialty Retail No.20 OverallEPA(Environmental Protection Agency)SmartWay High Performer WaterSense Partner of the Year Award Safer Choice Partner of the Year AwardForbes No.52 Worlds Best Employers No.100 Bes

58、t Employers for VeteransHuman Rights Campaign(USA)Corporate Equality Index(CEI)Score:90Military Friendly Company Spouse Employer Supplier Diversity ProgramHuman Rights Campaign(MX)Corporate Equality Index(CEI)Score:100EPAs Green Power Partnership National Top 100 No.8-Retail No.64-OverallCanadas Bes

59、t Diversity Employers 13th Consecutive YearCorporate Social Responsibility Award for Labor Equality&Nondiscrimination MexicoOverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT9OUR ESG GOALS AND PROGRESSThe Home Depot

60、sets goals to drive ESG progress,benefiting our associates,customers,suppliers and communities,as well as our Company.Having achieved a number of our goals,we are announcing new goals and continue to progress against existing goals to further our ESG progress.Active GoalsFocus on PeopleGLOBAL IMPACT

61、:LEADERSHIP AND DEVELOPMENT(PAGES 38-39)Goal Date1Invest 10 million hours of training to frontline associates and 2.5 million hours of leadership training to leaders supporting their career growth and skill development by 20282028Create 75,000 career advancement opportunities for front-line associat

62、es over a five-year period2028Operate SustainablyGLOBAL IMPACT:CLIMATE AND ENERGY REDUCTIONCARBON EMISSIONS REDUCTION(PAGES 50-55)Goal DateCommit to science-based targets to reduce Scope 1 and 2 emissions 42%by 2030,from a 2020 base year22030Commit to science-based targets to reduce Scope 3“Use of S

63、old Products”emissions 25%by 2030,from the 2020 base year203090%of forklifts in our major U.S.distribution centers will be hydrogen-powered by 20293202985%of U.S.&Canadian sales in push mowers and handheld outdoor lawn equipment(combined)in store and online(combined)will be in rechargeable battery t

64、echnology by 20282028Produce/procure 100%renewable electricity equivalent to the electricity needs for all Home Depot facilities worldwide by 20302030GLOBAL IMPACT:OUR PRODUCTS AND THE PLANETRESPONSIBLE CHEMISTRY(PAGES 67-69)CARBON EMISSIONS REDUCTION(PAGES 50-55)WATER CONSERVATION(PAGES 65-66)CIRCU

65、LARITY(PAGES 58-64)Motivate top-tier strategic suppliers to have a business-relevant publicly stated sustainability goal by 202542025Help customers save$600 million in energy costs by 2026,with a start year of 20232026Help customers reduce water use by 100 billion gallons by 2026,with a start year o

66、f 20232026All private brand patio and home decor products will exclude added PFAS chemicals by 202552025All private brand fiber packaging for new SKUs will be compostable,recyclable,or recycled content6By start of 2027Reduce or convert to more sustainable materials 200 million pounds of plastic used

67、 in products by 2028,with a start year of 20202028Exclude expanded polystyrene(EPS)foam and polyvinyl chloride(PVC)film from private-brand packaging62023Strengthen Our CommunitiesGLOBAL IMPACT:SUPPLIER DIVERSITY(PAGES 83-84)AND VETERANS(PAGES 85-86)Goal DateAchieve$5 billion in annual total combined

68、 spend across our Tier 1 and Tier 2 diverse suppliers2025The Home Depot Foundation plans to contribute$500 million to veteran causes with a focus on housing2025The Home Depot Foundation plans to invest$50 million to train skilled tradespeople,including veterans2028OverviewFocus on Our PeopleOperate

69、SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT10Achieved GoalsFocus on PeopleGLOBAL IMPACT:LEADERSHIP AND DEVELOPMENT(PAGES 37,38-39)Goal DateExpanded associate resource groups to include more associates and increase engagement and participation20

70、21Invested more than 1 million hours per year over five years in training and development to help our front-line associates grow their careers2022Created career advancement opportunities for 50,000 front-line associates over a five-year period2023Operate SustainablyGLOBAL IMPACT:OUR PRODUCTS AND THE

71、 PLANETRESPONSIBLE CHEMISTRY(PAGES 67-69)CARBON EMISSIONS REDUCTION(PAGES 50-55)WATER CONSERVATION(PAGES 65-66)CIRCULARITY(PAGES 58-64)Goal DateRemoved ortho-phthalates from vinyl flooring2016Reduced formaldehyde levels in laminate/engineered flooring2017Implemented additional requirements regarding

72、 tropical deforestation standards2018Eliminated certain chemicals in carpet2018Eliminated certain chemicals in insulation2018Eliminated neonicotinoids from live goods,except where legally required201920%reduction in U.S.store kilowatt-hour electricity use,compared to 2010 levels2020Helped reduce cus

73、tomers greenhouse gas emissions by 20 million metric tons(since 2017)2020Helped customers save$2.8 billion on utility bills through energy-efficient products(since 2017)2020Helped reduce consumers water use by 250 billion gallons(since 2017)2020Eliminated certain chemicals in paint2020Eliminated cer

74、tain intentionally added chemicals from residential household cleaning products2022Procured/produced 335 megawatts of renewable or alternative energy capacity72025Strengthen Our CommunitiesGLOBAL IMPACT:SUPPLIER DIVERSITY(PAGES 83-84)AND VETERANS(PAGES 85-86)Goal DateLaunched a Tier II supplier dive

75、rsity program that measures and encourages our Tier I suppliers spending with diverse suppliers2022The Home Depot Foundation trained 20,000 skilled tradespeople,including veterans20281Unless otherwise specified,“Goal Date”refers to the end of the fiscal year noted.2Our new Scope 1 and 2 emission red

76、uction goal submitted for SBTi approval supersedes our previous Scope 1 and 2 emission reduction targets announced in 2018.3This goal excludes bulk distribution centers(BDCs).4Applies to top strategic suppliers by U.S.and Canada core direct spend.5Applies to private brand patio and home decor produc

77、ts sold in U.S.and Canada stores.6Applies to private brand products sold in U.S.and Canada stores and online.7The language of this goal is being clarified from our previous goal announced in 2020 to indicate the intent of producing or procuring 335 MW of energy capacity.Achievement of this goal was

78、validated in 2023.OverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT11How Our Goals Align with the U.N.Sustainable Development GoalsTheU.N.Sustainable Development Goals(SDGs)call for action to end extreme poverty,fig

79、ht inequality and injustice,and protect our planet.The plan,outlined in 2015,focuses on 17 areas in which nations,governments,businesses and citizens can work to achieve measurable results by 2030.The Home Depot shares many of the same goals,which are articulated in our Core Values.Eleven SDGs align

80、 with our sphere of influence.Good Health andWell-Being We offer a range of healthy-life benefits at no cost to associates.(Page 40)We prioritize our associates and customers health and safety through training,preventative programs,equipment enhancements and communication.(Page 33)We implemented new

81、 tools to improve safety in 2022 and recognized 266 stores that did not have an OSHA recordable incident for 365 days on a rolling 12-month basis.(Page 33)The Home Depots Eco Actions program identifies environmentally preferred products.(Page 70)GenderEquality Our Womens Link associate resource grou

82、p promotes professional development for female associates across our organization.(Page 37)We partner with the Womens Business Enterprise National Council to promote gender diversity among our suppliers.(Page 83)In 2022,associates who identified as female earned approximately 102%compared to what ma

83、le associates earned on an adjusted basis.(Page 28)We offer six weeks paid parental leave to our eligible associates who are having a baby,adopting,or fostering a child.This benefit is available to both mothers and fathers.Birth mothers are eligible for an additional six-week paid maternity benefit.

84、(Page 41)We provide a specialized delivery service for breast milk to our associates who are breastfeeding and must travel for work.(Page 41)Clean Water andSanitation In U.S.stores,we offer products such as bathroom vanity faucets and toilets that bear the U.S.EPAs WaterSense label.(Page 66)We estim

85、ate that our customers saved over 33 billion gallons of water in 2022 by properly using our water-saving products.(Page 66)We set a new goal to help customers reduce water use by 100 billion gallons by 2026,with a start year of 2023.(Page 10)We have smart irrigation systems at over 500 U.S.stores.On

86、 average,there is an approximately 29%reduction in water used,compared to traditional systems.(Page 65)Affordable and Clean Energy We recently joined RE100 and U.S.EPAs Green Power Partnership.(Page 52)At the end of fiscal year 2022,we were operating rooftop solar farms atop 86 U.S.stores and six di

87、stribution centers.We also leverage fuel cell-generated power at 217 stores and supply chain facilities(Page 52)Through our expanded wind and solar farm partnerships,we expect to purchase enough electricity to power the equivalent of more than 900Home Depot stores.(Page 52)In 2022,we partnered with

88、Sunrun and Sunnova to offer solar panels and battery storage solutions to our customers.(Page 71)Our partnership with the U.S.EPAs ENERGY STAR program in 2022 enabled customers to purchase products capable of reducing their electricity use by 3.8 billion kilowatt hours,saving$554 million on energy c

89、osts.(Page 55)We set a new goal to help customers reduce energy costs by$600 million by 2026,with a start year of 2023.(Page 10)Decent Work andEconomic Growth We employ over 470,000 associates internationally,and our supply chain has an economic impact on millions of workers globally.(Page 6)We rece

90、ntly invested approximately$1 billion on an annualized basis in our frontline,hourly associates(Page 36)More than 90%of our U.S.store leaders started as hourly associates.(Page39)We have pledged to invest 10 million hours of training and create 75,000 career opportunities for our frontline associate

91、s.(Page 10)We conducted over 3,100 factory audits and follow-up visits in 2022,focusing on worker health,safety and well-being in our suppliers operations.(Page 95)OverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT12

92、Industry,Innovation and Infrastructure Investments by The Home Depot Foundation have introduced more than 132,000 people to skilled trades and trained over 39,000 participants since 2018.(Page 87)We expanded our PathtoP platform in 2022 to serve jobseekers by posting job announcements and connecting

93、 tradespeople with Pro customers.(Page 89)Expanding on the$50 million investment in 2018,The Home Depot Foundation committed an additional$3.7 million towards trades training opportunities to youth,high school students,underserved communities and separating U.S.military service members.(Page 87)We h

94、ave repeatedly been recognized by the EPAs SmartWay program for improving freight efficiency and contributing to cleaner air throughout our supply chain.(Page 54)Reduced Inequalities We disclose our gender and racial/ethnic minority pay equity for our U.S.workforce-102%and 99%,respectively,on an adj

95、usted basis for 2022-and we commit to publishing a racial equity assessment report in 2023.(Page 28)Our Tier II supplier diversity program,launched in 2021,supports our goal to achieve$5 billion in annual spend with diverse suppliers by 2025.(Page83)Our Retool Your School grant program has invested

96、over$5 million in grants to HBCUs since 2009,and we recently committed to increase our annual commitment to HBCUs to$4 million.(Page 82)We partner with organizations that provide our diverse suppliers with certification and education,as well as capital and networking opportunities.(Page 83)Our Corpo

97、rate Governance and Code of Conduct policies detail our commitment to workplace diversity,equity and inclusion.(Page 97)Sustainable Cities and Communities By the end of fiscal year 2022,The Home Depot Foundation had invested over$450 million in veteran causes,with over$100 million dedicated to veter

98、an homelessness since 2011.(Page 85)The Foundation committed more than$7 million in 2022 to disaster response.(Page 90)The Homer Fund granted$2.2 million through 4,500+grants to support our associates affected by natural disasters in 2022.(Page 45)In 2022,we sold approximately$10.4 billion and appro

99、ximately$2.0 billion in energy-and water-saving products,respectively,to our customers.(Page 110)Responsible Consumption and Production We support circularity through recycling,repairing and reusing materials to reduce waste.(Page 58)Our Eco Actions program identifies environmentally preferred produ

100、cts.(Page 70)We challenge our suppliers to offer products with the lowest-possible environmental impact and to pursue third-party certifications.(Page 70)We pledge to motivate our top-tier suppliers to have a business-relevant publicly stated sustainability goal by 2025.(Page 10)We have eliminated c

101、ertain added chemicals from our paint,cleaning,live goods,and carpet and other flooring products.(Page 67)We have several new goals related to sustainable packaging and eliminating chemicals of concern.(Page 10)Climate Action We pledge to produce or procure renewable electricity equivalent to the el

102、ectricity needs for all Home Depot facilities worldwide by 2030.(Page 51)We achieved our goal to produce or procure 335 megawatts of renewable or alternative energy capacity.(Page 51)We have set updated targets to reduce our Scope 1 and Scope 2 emissions by 42%by 2030 and added a new target to reduc

103、e our Scope 3“Use of Products Sold”emissions by 25%by 2030,over 2020 levels.(Page 51)Across our U.S.stores,we have cut electricity use over 52%since 2010.(Page 52)We pledge that 85%of U.S.&Canadian sales in push mowers and handheld outdoor lawn equipment will be in rechargeable battery technology by

104、 2028.(Page 51)We commit to 90%of forklifts in our major U.S.distribution centers being hydrogen-powered by 2029.(Page 53)Life on Land Our Wood Purchasing Policy,first adopted in 1999,helps ensure our suppliers and manufacturers support sustainable forestry.(Page 56)We commit to participating in the

105、 CDP Forests Survey and publishing a sustainable forestry report in 2023.(Page 56)We have pledged to exclude EPS and PVC film from our private-brand packaging by the end of fiscal year 2023.(Page 58)In 2022,we eliminated over 7.3 million cubic feet of EPS and over 81 million square feet of PVC from

106、our supply chain.(Page 58)We diverted over 320,000 metric tons,or 30%,of our nonhazardous waste from landfills in 2022.(Page 64)OverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT132022 ESG HIGHLIGHTSOur Core Values g

107、uide how we focus on our people,operate sustainably,and strengthen our communities and provide a benchmark for measuring progress.These highlights reflect progress made in 2022.The Home DepotFocus On Our PeopleMore than90%of our U.S.store leaders started as hourly associatesApproximately36%of our U.

108、S.newhires were women and 58%were ethnically/racially diverseAchieved our goalto invest 1 million hours per year over five years in training and development to help our front-line associates grow their careersNamed to Forbes 2022 ListofBestAmerican CompaniesforVeteransOperate SustainablyWe reduced o

109、ur Scope 1 and 2 carbon emissions by approximately92,000 metric tons,equivalent to taking more than 20,000 cars off the road for a yearWe decreasedelectricity consumption52%in our U.S.stores since2010We set science-based targets to reduce our emissions acrossScopes 1,2&3(category 11)by the end of 20

110、30We redesigned350+private-brand packagesto reduce size and materials.This helped us eliminate 81M square feet of PVC film enough to cover Central Park twiceWe set a goal that 85%of our U.S.&Canadian sales in push mowers and handheld outdoor lawn equipment will be battery powered by the end of2028St

111、rengthen Our CommunitiesAs of the end of 2022,The Home Depot Foundationhad contributed more than$450 milliontowards veteran causes since 2011In 2022,we drove$3.4 billion of spend withdiverse suppliersThe Home Depot Foundationgranted$82 millionintotal during 2022Since 2009,ourRetool Your School grant

112、program has helped fund over 180+projectsbenefiting 70%ofHBCUsSince 2011,Team Depot has volunteered 1.4+millionservicehours to veterancausesOverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT14CanadaThe Home Depot beg

113、an operating in Canada in 1994.Today we operate 182 stores across all 10 Canadian provinces.Focus On Our PeopleWe are committed to providing an environment thats inclusive to all people.We combine our individual talents,skills and experiences to enrich the lives ofour associates,customers andcommuni

114、ties.The Home Depot was again ranked one ofCanadas best diversity employers in 2022 for the 13th consecutive year.34,500associateswore the orange apron in Canada in 2022728,000hours of associatetraining in 20224associate resource groupsrepresent and support our ethnically diverse,disabled,LGBTQ2+and

115、 women associates in Canada1,982,000coursestaken by associatesin2022Home Depot Canada ARGsOur associate resource groups(ARGs)are led by associates and sponsored by executive leaders.In2022,we hosted several ARG events virtually to celebrate diversity,raise cultural awareness and foster professional

116、development.We also hosted 21 DEI roundtable conversations,each sponsored by an ARG and the DEI team.Orange Mosaichas a mission to act as a resource for The Home Depot and our associates by encouraging intercultural understanding through celebration,education,and providing culturally specific insigh

117、t to drive individual and business growth.Orange Womens Networksmission is to promote professional growth for women at Home Depot through networking,development activities and community outreach.Orange Pridehas a mission to celebrate lesbian,gay,bisexual and transgender(LGBTQ2+)associates and allies

118、 by creating an inclusive environment built on the foundation of acceptance,community and understanding.Orange Abilitysmission is to foster an inclusive environment at The Home Depot where people of all different abilities are able to achieve success and reach their full potential.OverviewFocus on O

119、ur PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT15In 2022,The Home Depot Canada Foundations Orange Door Project invested CA$3.1 million to youth charitable organizations supporting their renovation,prevention,and employment&life ski

120、ll programs targeting youth homelessness.DID YOU KNOWCanadaOverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT16Strengthen Our CommunitiesThe Home Depot Canada Foundation is committed to preventing and ending youth ho

121、melessness in Canada.Through community partnerships,we aim to break down the systemic barriers that youth face,and help them achieve healthy pathways out of homelessness.By 2030,The Home Depot Canada Foundation plans to invest CA$125 million in creating new paths for youth at risk of or experiencing

122、 homelessness.We are proud of the progress we achieved in 2022:The Home Depot Canada Foundations strategic partnerships help support its mission of preventing and ending youth homelessness in Canada:360kids Support Services(Markham,ON)A Way Home Canada(Toronto,ON)Canadian Alliance to End Homelessnes

123、s(Calgary,AB)Choices for Youth(St.Johns,NFLD)Covenant House Vancouver(Vancouver,BC)Dans la rue(Montreal,QC)Friends of Ruby(Toronto,ON)Evas Initiatives(Toronto,ON)Mission Bon Accueil(Montreal,QC)Ndinawemaaganag Endaawaad Inc.(Winnipeg,MB)Phoenix Youth Programs(Halifax,NS)Raising the Roof(Toronto,ON)R

124、esource Assistance for Youth(Winnipeg,MB)Trellis(Calgary,AB)Youth Empowerment and Support Services(Edmonton,AB)Youth Services Bureau(Ottawa,ON)Youth Without Shelter(Etobicoke,ON)Invested CA$10M+towards our overall pledge to invest CA$125 million by 2030 to help prevent and end youth homelessness.Inv

125、estedCA$2 millionin TradeWorxpartners,an investment in organizations across Canada to empower youth with the skills and certifications in the trades,helping them secure resources and attain permanent housing.Supported 200 organizations and granted approximately CA$10 million.Invested CA$3 millionin

126、our regional partnerships,supporting innovative programming to prevent and end youth homelessness.Operate SustainablyHere are a few ways we improved sustainability in 2022:We recycled over14,000 metric tons of cardboard&plastic from our stores and distribution centers.We collected 410,000+pounds of

127、household electronics,power tools,cellphones and other rechargeable batteries for responsible recycling via our customer take-backprogram.We completed LED exterior retrofits at36 storeshelping to reduce our stores energy consumption.Sustainable ShreddingThe Home Depot Canada provided over 167,000 po

128、unds of shredded paper for recycling in 2022.Heres how that helped the planet:Avoided nearly 1 million poundsof CO2emissionsKept nearly 6,700 pounds of solid waste out of landfillsPreserved over 2,000treesSaved over 158,900 gallons of waterSource:Iron Mountain using calculations by PaperCalculatorCo

129、nserved nearly 247,600kilowatt hours ofelectricityCHECK IT OUTOver the last 10 years,our stores in Canada have decreased electricity use by 45.8%.See how this contributes to our total company goals to operate more sustainably.MexicoDuring 2022 The Home Depot Mexico celebrated 21 years of operating,w

130、ith 133 stores across all 32 states.Focus On Our PeopleIn 2022,we employed approximately 17,900 associates who proudly wear the orange apron.100+scholarshipswere awarded to children of associates.1.2 millionhoursof career training courses were completed by associates.400+associatesreceived Orange Fu

131、nd grants.Operate SustainablyIn 2022,we joined the rest of the organization in finding new ways todrive sustainability across theorganization.803,000+wooden pallets reusedEco Options catalogoffered1,800+productsRecycled more than1 millionpounds of plasticStrengthen Our CommunitiesOur Company donated

132、53 millionpesos(US$2.9 million)in merchandise to nonprofitorganizations.Our customers donated31 million+pesos(US$1.7 million)during our Round Up fundraising drives for charitable causes.Our associates completed over400Team Depot projects focusedon schools,public areas,community centers,and assistanc

133、e to people in need.2022 RecognitionsWe are honored to be recognized by thefollowing organizations for our leadership in corporate social responsibility:NOM 025 Certificacin de la Norma Mexicana en Igualdad Laboral y no DiscriminacinWe renewed the certification that aimsto set indicators for workpla

134、ces that demonstrate the adoption and compliance of labor equality and non-discrimination practices.Its main objective is for companies to integrate,implement and execute within their management and human resourcesprocesses.Empresa Socialmente ResponsibleLiving our values has allowed us to be recogn

135、ized for our corporate social responsibility efforts for the 16th time in a row,including best practices in all our programs and focusing on maintaining sustainable relationships with our stakeholders to continueproviding the bestservice.Distintivo de Equidad 2023The Home Depot Mexico received the h

136、ighest possible score in the HRC EQUITY MX index,which recognizes companies as one of the Best Places to Work for the LGBTQ+community-reflecting our commitment to inclusivity.Distintivo ntrale 2022During 2022 Home Depot was recognized with the certification ntrale 2022 for the companys constant comm

137、itment to inclusion for our associates and for working and strengthening the implementation of projects that benefit thehiring and retention of associates withdisabilities.*Home Depot Mexico data based on calendar yearOverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur Busine

138、ssReporting Frameworks2023 THE HOME DEPOT ESG REPORT17In 2022,approximately 34%of our newhires in Mexico were women.DID YOU KNOWOUR APPROACH TO ESGWe believe the significant ESG matters for our Company are embedded in how we run our business,align closely with our corporate culture and strategy,and

139、support value creation for our business and shareholders.From our Board of Directors to our senior management team to our over 470,000 associates,we strive to create a responsible and sustainable company.Our ESG JourneyOur culture and values guide every decision we make and are key to our success.In

140、 alignment with these values,we have been an ESG-focused Company since we were founded.We have developed and formalized our approach to ESG and have enhanced our transparency and reporting.Founded inAtlanta,GACreatedEcoOptions toHighlight More Sustainable ProductsPublicly Published First Sustainabil

141、ityReportSet FirstProductChemicalStrategyPublished First Racial,Ethnic and Gender Diversity Report for U.S.WorkforceRebranded EcoOptions websiteto Eco Actions toInclude SupplierSustainability andCustomer EducationBegan Providing Our EEO-1 Data PubliclyLaunched Tier II Supplier Diversity ProgramSubmi

142、tted Scope1,2&3(category 11)Emissions Reduction TargetsSBTi7200020202120222023Adopted FirstWood PurchasingPolicyEstablished TheHomer FundParticipated in OurFirst CDP ClimateChange SurveyFirst Disclosed Energy Use and GHGEmissions Reduction TargetsThe Home DepotFounda

143、tion Pledged$250 Million toVeteran Causesby 2020The FoundationPledged anAdditional$250Million to VeteranCauses by 2025,Bringing its TotalInvestment to Half aBillion DollarsThe Foundation Pledged$50 Million to Train 20,000 Skilled Tradespeople by 2028Set Targets for Scope 1and 2 Carbon EmissionsReduc

144、tions of42%by 2030 and 50%by 2035DisclosedESG Activitiesas Informed bySASB and TCFDFrameworksCommitted to Participate in CDP Forests Survey and Perform Sustainable Forestry Assessment ReportCommitted to Perform Racial Equity AssessmentDisclosed OurGender and Racial/Ethnic PayEquityfor U.S.WorkforceO

145、verviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT18Oversight of ESGTo facilitate the coordination of our ESG efforts across our business,we have two management-level cross-functional committees.In addition,our Board

146、provides oversight of our ESG strategy,activities and reporting,principally through our Nominating and Corporate Governance(NCG)Committee,with support from our Leadership Development and Compensation(LDC)and Audit Committees.The Board of Directors:Receives an annual report on our corporate social re

147、sponsibility and sustainability strategy and activities,including a discussion of our ESG efforts,communications and reporting Periodic review of ESG oversight structure Receives quarterly reports from Committee chairs on ESG matters discussed at the Committee level,as well as quarterly updates on s

148、afetyAs part of its periodic review of the management and oversight structure of ESG matters,in 2022,the Board updated the oversight of our ESG activities,shifting oversight of our responsible sourcing program and related supply chain risks from the Audit Committee to the NCG Committee.Going forward

149、,our Board will continue to assess its oversight structure and make adjustments as appropriate.See Corporate Governance to learn more about our broader governance structure and practices.OverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE

150、HOME DEPOT ESG REPORT19Board CommitteesNCG COMMITTEE Has primary responsibility for oversight of ESG matters generally and their alignment with business priorities Reviews and makes recommendations to the Board,as appropriate,regarding our ESG practices and operational initiatives Oversees responsib

151、le sourcing program and related supply chain risks Oversees corporate political activity Receives reports on ESG shareholder engagement,investor feedback and general ESG-relateddevelopmentsLDC COMMITTEEAUDIT COMMITTEE Oversees human capital management matters:compensation and benefits associate enga

152、gement,development andtraining DEI(including pay equity)Receives quarterly updates on DEI initiatives Oversees customer and associate safety Oversees risks related to data protection andcybersecurity Oversees the financial and controls aspects ofESGManagement CommitteesESG GOVERNANCE COMMITTEE Provi

153、des management-level oversight and coordination of ESG efforts Chaired by a member of our senior leadership team and composed of representatives across several business functions including Communications,Corporate Governance,DEI,Finance,Government Relations,Human Resources,Internal Audit,Investor Re

154、lations,Legal,Sustainability and Tax Meets quarterly,with working group members meeting more frequently as needed Identifies key ESG-related issues and ensures our ESG strategies support the business and long-term value creation SUSTAINABILITY COUNCIL Chaired by Chief Sustainability Officer and comp

155、osed of representatives from different areas of business,such as Merchandising,Operations,Supply Chain,Energy Management and Packaging Meets twice a year-informed by those discussions,the Chair of the Sustainability Council provides updates to the Board on a periodic basis as requested Communicates

156、stakeholder feedback internally Discusses the progress of Company sustainability initiatives and future opportunitiesESG Priority AssessmentWe understand our unique responsibility to create positive economic,environmental and social impacts as the largest home improvement retailer in the world.We id

157、entify and address ESG issues and opportunities through our operational lens and stakeholder engagement.Our approach to advancing our ESG priorities is informed by our stakeholders feedback,which we actively pursue through various engagement channels.We believe the feedback we receive from stakehold

158、ers provides us different perspectives on our business and helps us to be more agile in an ever-changing business environment.Stakeholder EngagementWe have identified key groups of internal and external stakeholders with whom we engage to ensure our ESG programs benefit the people and communities we

159、 serve.These groups include our Associates,Customers,Academia,Suppliers,Communities,Investors,NGOs and Governments.Our ongoing stakeholder interactions may be formal or informal,as detailed in our ESG Priority Assessment Framework on page 22.The purpose of our stakeholder interaction is to help info

160、rm and validate our own priority assessment.By requesting feedback and engaging in dialogue with our stakeholders,we are better able to gauge the impact of our business,refine our ESG priorities,measure our progress and design ways to drive improvements.By better understanding our impact and collabo

161、rating with stakeholders,we position our Company to set objectives that allow us to contribute to building a better business,workplace and world.OverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT20Our stakeholders ca

162、n easily access relevant ESG disclosures and information about our Companys oversight and management of ESG matters on our Investor Relations page:ESG Investors.Our annual ESG report incorporates the input and efforts of our ESG Governance Committee,shareholder feedback and recommendations from othe

163、rstakeholders.AcademiaWe access independent research studies on our industry to incorporate the latest insights into our business.We partner with universities to develop programs that support our priorities and help educate the next generation of business leaders.“Collaborate with us on customer tre

164、nds and habits to aid our research.”AssociatesWe survey our over 470,000 associates to measure their job satisfaction and emotional response to their work.We encourage our associates to raise concerns with their immediate managers.If needed,they also have the option of anonymously reporting concerns

165、 to our AwareLine or HR Service Center Hotlines.“Empower us to be contributing team members of a values-based organization.”CommunitiesIndividuals and organizations from around the globe reach out to us with questions or concerns about our operations or products.We also support the communities where

166、 we operate through The Home Depot Foundation and Team Depot through their disaster response efforts,trades training initiatives and veteran community support.“Support me and my neighbors by making a positive difference in our community.”CustomersWe receive constant feedback from our customers throu

167、gh the more than a billion and a half transactions across our stores and digital channels annually.We use customer satisfaction surveys to understand the issues affecting our customers.Our Help and Customer Service Center routinely manage our customers needs.“Be a global-impact conscious company,and

168、 provide products that help me reduce my homes environmental impact.”GovernmentsWe participate in the political process in a bipartisan,transparent way and encourage our associates to do so,as well.We work to optimize the impact of the government on our business through advocacy,relationship buildin

169、g,and political activity,support for relevant trade associations,and by operating a bipartisan employee-funded political action committee.“Create partnerships with local,state and federal officials that help bridge industry innovation to public policy advancement.”InvestorsWe engage with shareholder

170、s on a year-round basis involving senior management,subject matter experts,our investor relations team and our corporate governance team.As we have for several years,in 2022,we engaged with over 40%of our institutional shareholders to discuss ESG topics.“Tell us your primary risks and how you handle

171、 oversight of them.”NGOsWe meet with nongovernmental organizations(NGOs)interested in our business practices.We also take part in industry efforts to raise awareness about the ESG responsibilities we all share.“Work with us to elevate our causes to action and progress.”SuppliersWe collaborate with o

172、ur vendors and suppliers in an effort to lessen the environmental impact of the products we sell.We also focus on increasing our spend with diverse suppliers to help build inclusive and sustainable business opportunities for them and to meet the needs of our broad customer base.“Give us an outlet to

173、 market innovative,sustainable products and a way to gather timely customer feedback.”STAKEHOLDERSHOW WE ENGAGESTAKEHOLDER PERSPECTIVESOverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT21ESG Priority Assessment Frame

174、workThe Home Depot prioritizes,assesses and responds to our ESG priorities through an iterative process,outlined below.STEP 1STEP 2STEP 3STEP 4STEP 5STEP 6STEP 7Identify PotentialESG IssueTrigger ESGAssessmentEngage RelevantInternal BusinessTeamsGatherInformation and RecommendationsDevelop SolutionE

175、stablish OngoingPlanContinue ProgressExamples:Chemicals Circular Economy Fuel Cells Climate Change Human Capital Invasive Plants Organics Pollinator Health Deforestation Recycled Content Renewable Energy Worker Well-BeingCATALYSTS Corporate Communications Diversity,Equity&Inclusion Government Relati

176、ons Human Resources Information Technology Investor Relations Legal Merchandising Operations Real Estate&Construction Supply Chain SustainabilityHome Depot ExpertsEducate Concerned StakeholdersPriority Issues Identified by TheHome DepotqFact-Finding,Data Collection,Scientific ResearchShare FindingsM

177、odify Current PathIssues Identified by Concerned StakeholderspTrack and ReportSet Improvement GoalsConcerned StakeholdersMonitor and Review PeriodicallyTest AlternativesExit ProgramOverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME D

178、EPOT ESG REPORT22ESG Priority TouchpointsKEY IMPACTED STAKEHOLDERS:AssociatesSuppliersNon-governmentalOrganizations InvestorsCustomersGovernmentsAcademics&EducatorsLocal CommunityESG PRIORITY TOUCHPOINTSIMPACTSKEY IMPACTED STAKEHOLDERSFocus on Our PeopleAssociate DevelopmentTraining,education,promot

179、ion,supportAssociate Well-BeingSafety,health,wages,hoursDiversity,Equity&InclusionAssociate engagement,workforce diversity,talent acquisition,associate resource groupsGovernanceEthics,culture,data privacy and security,risk managementOperate Sustainably|OperationsEnergy UseCarbon emissions,productsHa

180、zardous MaterialsWaste,disposalWasteRecycling,landfill,incinerationWater UseResponsible consumptionOperate Sustainably|ProductsEco ActionsWater Conservation,Energy Efficiency,Responsible Chemistry,Sustainable ForestryEnd of LifeCircularity,waste,recyclingTransportationCarbon emissionsOverviewFocus o

181、n Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT23AssociatesSuppliersNon-governmentalOrganizations InvestorsCustomersGovernmentsAcademics&EducatorsLocal CommunityESG PRIORITY TOUCHPOINTSIMPACTSKEY IMPACTED STAKEHOLDERStrengthen O

182、ur CommunitiesSupplier DiversityInnovation,mentoring,business growth,networkingCommunity SupportDiverse,equitable and inclusive communities,trades training,veterans and military families,disaster responseResponsible BusinessData Security&PrivacyPrivacy rights,data protection,cybersecurity,transparen

183、cyGovernment RelationsLaws,regulations,lobbying,trade groupsResponsible SourcingThird-party worker safety,health,wages,hours,unforced laborOverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT24Diversity,Equity&Inclusio

184、n29Associate Safety35Associate Engagement37Learning&Development40Benefits42The Homer Fund47FOCUS ON OURPEOPLEOverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting FrameworksWe focus on our people by striving for an environment centered onThe Home Depots Core V

185、alue of respect for all people,where diversity,equity and inclusion are celebrated and associates have opportunities to grow.We believe our over 470,000 associates are our greatest asset,and they differentiate us in themarketplace.Diversity,Equity&Inclusion27Associate Safety33Associate Engagement35L

186、earning&Development38Benefits40The Homer Fund45FOCUS ON OUR PEOPLEThe Home Depot is a people-centered business where our customers benefit from positive interactions with our associates.Led by our Core Value of Taking Care of Our People,we aim to create a welcoming and safe work culture where our as

187、sociates can openly contribute their ideas and build long-term careers.Our associates are vital to building a strong internal culture centered on delivering the excellent customer experience that differentiates us.“We know that our associates are a key differentiator,and they are essential in helpin

188、g us sustain the customer experience we strive for.In order to provide the best customer experience in home improvement,we must focus on cultivating the best associate experience in retail.”ANN-MARIE CAMPBELL,EVP,U.S.Stores&International OperationsAfter starting with The Home Depot 38 years ago as a

189、n hourly cashier in South Florida,Ann-Marie still comes to work with a focus and drive to inspire the next generation of HomeDepot associates in her role as Executive Vice President of U.S.Stores and International Operations.While her story is exceptional,many of our associates have grown with our C

190、ompany and built lasting careers by starting in frontline positions.OverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT26The three key pillars guiding our approach to achieving a strong customer experience are people,

191、purpose andculture.PEOPLEPURPOSECULTUREWe provide an environment where people are inspired to come to work every day to serve our customers.Whether its an associate on the floor of one of our stores or an associate who helps make sure online transactions run smoothly,each person is critical to creat

192、ing a customer experience that attracts people to shop with us.Our purpose is a relentless focus on our customers,so we can grow our business.As abusiness,the only waywe can continue to create new opportunities for our associates is to grow the Company.We work to create an environment where people c

193、an be their best selves and know they have opportunities to grow.Thistype of culture allows associates to develop theircareers and create a great life for themselves and theirfamilies.We develop our people strategy with the awareness that our associates are a trusted resource,necessary for our custo

194、mers to access our full suite of products and services.This is why we commit to investing in our associates wages and benefits,while providing tools,training and development opportunities that make their work simpler and more fulfilling.Throughout our programs we prioritize the well-being of our ass

195、ociates through our Diversity,Equity and Inclusion(DEI)programs,our associate safety practices and our engagement activities.Our investments in our people are also made through a business lens-they are designed to increase job satisfaction and tenure,which in turn raises customer satisfaction and lo

196、wers our operating expenses.DIVERSITY,EQUITY&INCLUSIONWe strive to ensure the composition of our associates and suppliers includes and equitably represents our customers and the communities we serve.Our Diversity,Equity&Inclusion(DEI)program seeks continual improvement through strategic action,revie

197、w of practices and reporting of our initiatives.These actions support our business objectives by promoting associate satisfaction and retention,community partnerships,and innovation across our value chain.Guided by our Core Value of Respect for All People,we also seek to foster equitable pay and pro

198、motion opportunities within our Company.DEI ValuesWe are committed to promoting DEI within our organization and among the communities we are proud to serve.We know that Doing the Right Thing each and every day for our associates,customers,suppliers,service providers and the communities we serve is c

199、ritical to our ongoing success.We believe this commitment has been a competitive advantage and key to our long-term success,which is why we continue to build a culture of understanding,acceptance and appreciation.We believe that all people should be treated with dignity and respect.Our Core Values a

200、nd focus on DEI shape the expectations outlined in our Business Code of Conduct.We define diversity,equity and inclusion as:Diversity:Composition of people,such as their similarities and differences(e.g.,gender,race/ethnicity,sexual orientation)Equity:Norms,practices and policies in place that ensur

201、e just and fair opportunities and outcomes,allowing individuals to reach their full potential Inclusion:How we embrace and enable our associates to feel safe,respected,engaged,motivated and valued for who they are and their contributionsKey Areas of FocusAs the largest home improvement retailer in t

202、he world,we leverage our conviction,capabilities and tools to make a difference for all our stakeholders.We know this work is an ongoing journey in an ever-changing environment,which is why we continue to prioritize listening and learning from our associates and community partners,provide equal oppo

203、rtunities for all associates and business partners,and hold ourselves accountable to look for new ways to makeprogress.We focus on three key areas to create meaningful change through thoughtful actions that align with all eight of our Core Values.ASSOCIATE ENGAGEMENTIncrease diverse representation t

204、hroughout our organizationCreate an environment where every associate feels included and valued for who they areEnsure equal opportunity in recruitment,hiring,training,development and advancementCOMMUNITY PARTNERSHIPSWork with organizations that strive to close the wealth gapPartner with organizatio

205、ns that advance education for allSUPPLIER DIVERSITYIncrease our penetration and spend with diverse suppliersDevelop diverse suppliers by providing mentorship and shared resourcesOverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPO

206、T ESG REPORT27DEI HighlightsOur dedicated DEI team supports departments across our organization to promote our DEI strategy.Over the years they have found ways to engage more of our associates around important DEI topics.Additionally,they have developed new programs to expand our impact among our co

207、mmunities:Increased associate engagement by expanding our associate resource groups(ARGs)beyond our Store Support Center(corporate facility).We leverage our associate engagement platform,Viva Engage(formerly Yammer),to provide ARG access to all our U.S.and Canadian associates and reach more associat

208、es with C.A.R.E.talks,a series of diversity discussions that Champion Awareness,Respect and Equity for all associates.Launched a Tier II supplier diversity program to help us measure and encourage our Tier I suppliers to spend more with diverse businesses.Expanded the scope of diverse supplier spend

209、 goal to include both Tier I and Tier II suppliers.Expanded our existing Retool Your School program to further strengthen our commitment to historically black colleges and universities(HBCUs).This expansion includes more programming and a broader reach.In addition,we are working to enlarge our netwo

210、rk of external partner organizations to enhance the career development of our female,minority,LGBTQ+and veteran associates.Learn more about how we work with our community partners across the nation and how spending with diverse suppliers benefits our Company and our communities on pages 79-84.Overvi

211、ewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT28Our People:Pay EquityThe Home Depots commitment to Doing the Right Thing and Taking Care of Our People extends to our pay practices.To ensure that we are paying our assoc

212、iates fairly,our long-standing practice has been to conduct an annual analysis of our pay and compensation practices for our U.S.associates,who comprise approximately 89%of our workforce,in consultation with expert third-party firms following industry-leading standards.Our review of our U.S.associat

213、es total W-2 compensation for calendar year 2022 includes base pay,cash bonuses and stock,and adjusts for relevant factors such as tenure,position,location and hours worked.Our findings showed that associates who identified as female earned approximately 102%of what male associates earned,and associ

214、ates who identified as members of a racial or ethnic minority earned approximately 99%of what non-minority associates earned.Not adjusting for those factors,our analysis showed that the median annualized W-2 pay for U.S.associates who identified as female was 99%of the median for men,and the median

215、pay for racial/ethnic minority associates in the U.S.was 96%of the median for non-minority associates.The Leadership Development and Compensation Committee of the Board of Directors,which is tasked with providing oversight of our human capital management strategy and our diversity and inclusion effo

216、rts,receives regular updates on these findings.We will continue to strive to ensure equal pay across our organization.Home Depots U.S.pay equity resultsWOMEN RELATIVE TO MENRACIAL/ETHNIC MINORITY ASSOCIATES RELATIVE TO NON-MINORITY ASSOCIATESUnadjusted Pay Equity99%96%Adjusted Pay Equity102%99%We do

217、 not tolerate discrimination or harassment against any existing or potential associate regardless of race,color,sex(gender),sexual orientation,gender identity or expression,age,religion,national origin,disability,protected veteran or other uniformed service status or any other characteristic.CHECK I

218、T OUTWilbert Slowman reflects on his journey from part-time cashier to store manager and how his Navajo Heritageand strong family ties continue to inspire him.DOING THE RIGHT THING Derek Bottoms,a 20+year associate of The Home Depot and current Chief Diversity Officer and Vice President of Associate

219、 Relations,describes how the Company supports its associates,communities and suppliers by advancing DEI initiatives.WHAT DOES DIVERSITY,EQUITY AND INCLUSION LOOK LIKE AT THE HOME DEPOT?More than 40 years ago,The Home Depot was built on eight Core Values,including Doing the Right Thing,Respect for Al

220、l People and Taking Care of Our People.These Core Values,combined with a focus on DEI,extend to all our associates,customers,suppliers and the communities where we operate.This focus has helped us build the best team in retail,which continues to give us a competitive advantage and has been key to ou

221、r long-term success.And while I hold the role of Chief Diversity Officer within the Company,our mission to build a culture of understanding,acceptance and appreciation cannot be done by any one person or a single team.Real change only happens if we have the commitment of every associate.This is why

222、we have worked over the years to broaden our DEI,outreach both inside and outside the four walls of our business.Most recently,our efforts have included a focus on expanding our associate resource groups(ARGs)from only our Store Support Center(SSC)associates or corporate associates,to all associates

223、 across our stores and supply chain facilities through various associate engagement platforms.We also committed to increase the amount we spend with diverse suppliers and quadrupled our commitment to historically black colleges and universities(HBCUs)through an expanded range of community projects a

224、nd career resources for students through our Retool Your School program,which includes an externshipcomponent.WHY DOES THE HOME DEPOT FOCUS ON DIVERSITY,EQUITY AND INCLUSION?We know that diversity across our associates can bring a range of perspectives,experiences and skills to the Company,which can

225、 help foster creativity,innovation and better decision-making,ultimately leading to a better associate experience and better outcomes for our customers and the business.In addition,based on my experiences with the Company,I know firsthand the importance of mentorship and ensuring everyone has access

226、 to the same opportunities.Creating a supportive environment for all associates,no matter their race,gender,age,ethnicity or any other unique identifier,can lead to increased employee engagement,satisfaction and long-term career opportunities,just as Ive experienced.We are also committed to cultivat

227、ing a supplier base that creates long-lasting growth and mutual business success,while reflecting the diversity of our customers and communities.We believe having a diverse supplier base strengthens our business and communities.HOW DID THE HOME DEPOT CONTINUE TO PROGRESS ITS DEI MISSION IN 2022?Its

228、an honor to work with so many great associates who embody our vision to build a more diverse,equitable and inclusive organization.Through their hard work,we continued to prioritize our commitment to create an environment where every associate feels included and valued.Some of the highlights from 202

229、2 that Im most proud of include:Expansion of ARGs across the enterprise Launching the DEI icon on our“hdPhones”to drive associate engagement and create awareness of our DEI and associate resource group Viva Engage(our associate engagement platform formerly known as Yammer)communities for our store a

230、ssociates Refreshing our DEI learning curriculum,including updates to our required annual training plans as well as content to drive DEI awareness and support ongoing learning anddevelopment Increased associate engagement by+300%in our DEI Viva Engage community ranking our DEI community in the top 2

231、0 of over 1,100 U.S.Viva Engage communities Induction into the Billion Dollar Roundtable for Supplier Diversity following the full establishment of our TierIIProgram“Our mission to build a culture of understanding,acceptance and appreciation cannot be done by any one person or a single team.Real cha

232、nge only happens if we have the commitment of every associate.”OverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT29MISSION STATEMENTThe Home Depot ignites the doer in all of us to build a culture of understanding,acc

233、eptance and appreciation.VISION STATEMENTThe Home Depot is building a more diverse,equitable and inclusive organization,within our enterprise and the communities we are proud to serve.Grounded in our Core Values,we have the conviction,capabilities and tools to make a difference for our associates,co

234、mmunity partners and suppliers.DEREK BOTTOMSChief Diversity Officer and Vice President of Associate RelationsSPOTLIGHTBuilding aDiverse WorkforceOur diverse workforce strengthens our competitive advantages and reflects the customers and communities we serve.A comparison against U.S.Department of Lab

235、or data shows that our U.S.workforce is more ethnically diverse than the nations working population.In 2022,we also expanded the number and percentage of women and minorities at the manager level and above.These charts reflect the demographics of The Home Depots U.S.workforce from 2020 through 2022.

236、Certain percentages may not sum to 100%due to rounding or some associates choosing not to self-identify by race/ethnicity orgender.U.S.Working Population2022202212020THD U.S.Workforce1,22022202212020OverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur Bus

237、inessReporting Frameworks2023 THE HOME DEPOT ESG REPORT30THD U.S.Workforce by Race/Ethnicity20Source:Latest available data from the U.S.Bureau of Labor Statistics;2022 data is estimatedTotal Number of U.S.Associates:2022:418,900 2021:437,000 2020:441,000Underrepresented Minority Groups 38

238、%White 62%Underrepresented Minority Groups 37%White 63%Underrepresented Minority Groups 36%White 64%Female 47%Male 53%Female 47%Male 53%Female 47%Male 53%Underrepresented Minority Groups 48%White 50%Underrepresented Minority Groups 48%White 50%Underrepresented Minority Groups 47%White 52%Female 38%M

239、ale 62%Female 38%Male 62%Female 38%Male 62%n49.7%Whiten22.2%Hispanicn18.2%Blackn3.3%Asiann4.8%Othern1.8%Undisclosedn50.0%Whiten22.3%Hispanicn17.9%Blackn3.1%Asiann4.9%Othern1.7%Undisclosedn51.5%Whiten21.8%Hispanicn17.0%Blackn2.9%Asiann5.0%Othern1.7%Undisclosed1)Includes data for HD Supply Holdings In

240、c.2)Gray bars indicate percentage undisclosedU.S.Managers and Above1,2,3(excludes officer level)2022202212020Total Number of U.S.Managers and Above:2022:25,700 2021:24,600 2020:19,100U.S.Managers and Above by Race/Ethnicity1,2U.S.Officers2,32022202212020Total Number of U.S.Offi

241、cers:2022:1372021:1262020:127U.S.Officers by Race/Ethnicity2OverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT31n60.4%Whiten15.6%Hispanicn14.4%Blackn4.0%Asiann4.6%Othern1.0%Undisclosedn61.7%Whiten15.3%Hispanicn13.9%B

242、lackn3.7%Asiann4.6%Othern0.8%Undisclosedn63.7%Whiten13.5%Hispanicn12.9%Blackn4.8%Asiann4.2%Othern0.9%Undisclosedn73.0%Whiten7.3%Hispanicn8.0%Blackn8.0%Asiann2.2%Othern1.5%Undisclosedn72.2%Whiten9.5%Hispanicn10.3%Blackn5.6%Asiann2.4%Othern0%Undisclosedn74.0%Whiten9.4%Hispanicn10.2%Blackn3.9%Asiann2.4

243、%Othern0%UndisclosedUnderrepresented Minority Groups 39%White 60%Underrepresented Minority Groups 38%White 62%Underrepresented Minority Groups 35%White 64%Female 35%Male 65%Female 34%Male 65%Female 32%Male 68%Underrepresented Minority Groups 26%White 73%Underrepresented Minority Groups 28%White 72%U

244、nderrepresented Minority Groups 26%White 74%Female 29%Male 69%Female 30%Male 70%Female 29%Male 71%1)Includes manager-level positions and above at stores,distribution centers and other field locations,as well as at our Store Support Center;excludes officers.2)Includes data for HD Supply Holdings Inc.

245、3)Gray bars indicate percentage undisclosed2022202212022Board of Directors*2022202212020Total Number of Directors:2022:13 2021:112020:12Board of Directors by Race/Ethnicity202220212020*For additional information on our board composition,visit the Corporate Governance section of

246、 our website.OverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT32n69.2%Whiten15.4%Hispanicn15.4%Blackn72.7%Whiten9.1%Hispanicn18.2%Blackn75.0%Whiten8.3%Hispanicn16.7%BlackUnderrepresented Minority Groups 31%White 69%

247、Underrepresented Minority Groups 25%White 75%Underrepresented Minority Groups 27%White 73%Female 31%Male 69%Female 18%Male 82%Female 25%Male 75%ASSOCIATE SAFETYOur people are our most important assets.By focusing on workplace safety training and risk reduction,we help keep our associates and custome

248、rs injury-free.The Home Depot is committed to providing a safe environment for our associates who work in our stores and across our global supply chain network,while also creating a safe shopping experience for our customers who visit our stores.We accomplish this by creating a strong culture of saf

249、ety from day one,which includes the expectation that our associates follow all Occupational Safety and Health Administration(OSHA)standards and Company safety procedures.Key to driving our culture of safety is our commitment to our Companys Core Values,specifically Taking Care of Our People.Our stro

250、ng safety culture starts from the top with engaged leaders,who then empower associates to create an environment that promotes and encourages an atmosphere where all associates prioritize the safety of everyone.OverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReport

251、ing Frameworks2023 THE HOME DEPOT ESG REPORT33Our commitment to safety goes to the highest level of our organization:our Board of Directors.At each quarterly Board meeting,our directors receive an update on our safety initiatives and metrics.Beyond Taking Care of Our People,we are also mindful of th

252、e financial,operational and reputational impacts from safety incidents.Active Board oversight helps ensure we remain accountable and transparent.AwarenessFocusing on the store associate experience is a key factor behind the success of our safety communications platform.In 2022,our platform received

253、over 3.5 million completed quizzes focused on quarterly campaigns that delivered timely and relevant content to our associates to help keep them safe every day.The required training,InFocus content and leadership engagement provided to associates focuses on our most common or more serious safety inc

254、idents such as overexertion,slips,trips and falls,among others.Our robust platform continues to be one of the most used channels of communication,reaching our associates monthly.This year,we enhanced our InFocus All-Star program to align All-Star safety milestones with our Company-wide Homer Awards

255、given to associates for their exceptional customer service and living our Core Values.Our supervisors grant bronze,silver,gold and platinum awards as part of our enhanced All-Star program,which recognizes associates that achieve safety excellence in the workplace.This program provides additional ben

256、efits such as monetary rewards,leaderboard tracking and surveys to provide insights on safety conditions in their locations.Our goal with this program is to increase safety awareness by focusing on continuous improvement and ingraining safety into everyday conversations to help foster open discussio

257、ns.We welcomed over 90,000 new All-Stars this year to further drive our Safety Takes EveryONE awareness campaign that we launched in2021.In 2022,as a result of our awareness campaign,we proudly recognized 266 stores that achieved Club 365 status,which demonstrates a stores outstanding milestone of r

258、eaching 365 days on a rolling 12-month basis without an OSHA recordable incident.These stores received a store celebration,apron patches and an award plaque in recognition of this meaningfulachievement.EngagementEngagement is a fundamental piece of our safety strategy.We know our highest-risk associ

259、ates are our new hires,so we begin every new hire orientation withsafety.In 2022,our goal was to keep associates engaged not only through traditional learning but also through a multitude of additional methods.Our Safety Takes EveryONE experience encourages associates to engage with key areas of the

260、 store,reinforcing safety topics along the way and engaging in friendly competition with other stores across the country.Lower than the average rates for our industry:RECORDABLE INCIDENT RATE(per 200,000 hours)*Work-related injury that typically warrants medicalcare beyond store-provided first aidLO

261、ST TIME INCIDENT RATE(per 200,000 hours)*More significant injury that results in time away from work*Recordable and lost time incidents rates for U.S.store associates.Associates are encouraged to look out for each other,prioritize safety first and speak up if unsafe acts are occurring-“See Something

262、,Say Something”is a principle embedded in our culture,and demonstrated by leaders who lead by example.TechnologiesOur Store Support Center and field teams work side-by-side to achieve engineering solutions that lower risks and enhance equipment safety for ourassociates.This year,we implemented sever

263、al new tools that improve safety for our associates,including:Portable loading docks to better assist with large and heavy product loading for customers Powered pallet jacks to move heavy pallets without the physical stress required to operate a manual pallet jack Safety lights for sit-down forklift

264、s that better identify our Zone of Safety when lift equipment is in use.Interlocking seatbelts that must now be engaged for the forklift to operateWhether with awareness,tools or technologies,our focus is on continuous improvement to lower injury rates and keep our associates and customers safe ever

265、y day.OverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT3420202022120224.034.254.081.071.231.16The Home Depots incident rates were lowerthan the averages for our industry,according to the latest annual dat

266、a from the U.S.Bureau of Labor Statistics.DID YOU KNOWASSOCIATE ENGAGEMENTAssociate engagement,the emotional connection associates have to our Company and our goals,is vital to The Home Depots culture and success.Voice of the AssociateSurveyOur highly engaged associates care about their work and the

267、 performance of The Home Depot.We are passionate about maintaining an engaging and inclusive workplace,and we do so by proactively engaging with our associates,while also listening and responding to their feedback.In 2022,we again conducted our Voice of the Associate(VOA)survey which includes all ou

268、r associates and provides an in-depth look at our associates engagement and satisfaction with their job,their leaders,and The Home Depot.At The Home Depot,we dont conduct surveys just to listen,but also to take action.Our survey provides the opportunity for leaders to review their teams feedback and

269、 respond to associate concerns.Many leaders discuss findings directly or use VOA committees typically comprised of a diverse group of associates from a location or team to gain a deeper understanding of survey feedback and ensure action plans are effective.We also collect additional associate insigh

270、ts at different life cycle stages through onboarding and exit surveys.This feedback helps us to continuously improve as an enterprise.We believe that associate engagement is vital to our culture and to our success.While we are proud to have many emotionally engaged associates,this is an ongoing proc

271、ess,and we are committed to continually identifying associate concerns and opportunities to make The Home Depot a great place to work.Engagement PlatformIn 2022,our voluntary associate engagement platform Viva Engage helped associates to build community with one another at a local level and atlarge.

272、Whether through on-site desktops or on-the-go mobile devices,more than 450,000 associates across the U.S.and Canada have access to Viva Engage.As our associates continue to drive engagement,now with more than 800 active communities in the network,the digital hub links associates across North America

273、.It serves as a central hub to recognize associates for living our values,promote Company news,cultivate connections between front-line and corporate associates and fuel the orange-blooded spirit thats part of what drives our culture.OverviewFocus on Our PeopleOperate SustainablyStrengthen Our Commu

274、nitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT35In 2022,Home Depots Viva Engage network held three of the top 10 most thriving communities out of approximately 3,200 around the world,according to SWOOP Analytics.DID YOU KNOWCompensation Enhancements andSuccess SharingThe most i

275、mportant investment we can make is in our people.This is why we announced that we would be investing an additional approximately$1 billion in annualized compensation for frontline,hourly associates starting in the first quarter of 2023.This investment,which now means our starting rate is at least$15

276、 an hour,will position us favorably in the market,allowing us not only to attract the most qualified talent,but also to retain the exceptional associate base that is already inplace.Our philosophy of Taking Care of Our People and motivating them to deliver a superior customer experience also shapes

277、our profit-sharing program for our non-management associates.Success Sharing provides semi-annual cash awards for performance against our sales goals.The program has granted awards totaling nearly$2.0 billion to associates over the last four years.The performance of our associates in 2022 enabled 10

278、0%of stores to qualify for Success Sharing in both the first and second half of the year.This resulted in Success Sharing bonus payments to our non-management associates of approximately$409 million for fiscal 2022.In addition,we increased our merit budgets for our associates in 2022 to between 3.0%

279、and 4.0%,and we continued our practice of making matching contributions under the FutureBuilder 401(k)Plan.Technology ToolsWe also know that competitive wages and benefits are just one piece of the associate experience.This is why weve also invested over the years in providing our associates with mo

280、re helpful tools,training and development opportunities as we strive to create the best associate experience in retail.We invest in our associates development and we continually aim to make the associate experience simpler and more effective.Initiatives like OrderUp,which simplified our order manage

281、ment process from dozens to one simpler and more intuitive system,or the recent rollout of our new hdPhone,which increases accessibility to real-time support,are just a couple of the investments aimed at improving the associate experience.OverviewFocus on Our PeopleOperate SustainablyStrengthen Our

282、CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT36Associate Resource GroupsOur associate resource groups(ARGs)promote our culture of inclusion and support diversity and help drive associate engagement.Our associate resource groups are led by associates and sponsored by execu

283、tive leaders.They drive associate engagement and promote inclusion across our Company through fostering professional development,raising cultural awareness,celebrating diversity,and offering community outreach opportunities.They are a powerful resource for our associates to connect on important issu

284、es and serve as a valuable link to support our DEI initiatives.We have seven U.S.ARGs,each of which supports the Companys business objectives and policies,particularly those related to developing our associates,creating diversity awareness and engaging diverse community partners.In 2022,our ARGs con

285、tinued to further support the career development of associates who voluntarily lead these groups.We also remained focused on growing membership across our ARGs since expanding Company-wide access to all associates,including in stores and distribution centers.We hosted approximately 40 virtual ARG ev

286、ents in 2022 to celebrate diversity,raise cultural awareness and foster professional development.Going forward,we will continue to expand the outreach efforts of our ARGs.Military-Affiliated AssociatesAfrican American AssociatesHispanic and Latino AssociatesAssociates with DisabilitiesLGBTQ+Associat

287、esAsian and Pacific Islander AssociatesWomen AssociatesOverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT37SPOTLIGHTC.A.R.E.TALKSWe launched Caring Conversations in 2020 in response to the unrest in our communities.T

288、he virtual events for all associates included panel discussions where senior Company leaders shared candid stories about race and ethnicity,and experts from outside our Company educated associates about civil rights,laws,voting and more.Caring Conversations have evolved into C.A.R.E.Talks,a series o

289、f diversity discussions that Champion Awareness,Respect and Equity for all associates.These discussions include external speaker series,panel discussions and small group listening sessions,and we occasionally partnered with our ARGs on elevating keynote speakers in this format.IN 2022,C.A.R.E.TALKS

290、INCLUDED A VARIETY OF SPEAKERS:Dr.Jennifer Ho,director for the Center for Humanities&the Arts and professor in the department of ethnic studies at the University of Colorado Boulder and author of“Consumption and Identity in Asian American Coming-of-Age Novels”and“Racial Ambiguity in Asian American C

291、ulture,”spoke about Asian American history,society and her experiences.Colonel Greg Gadson,a 25-year career Army officer,New York Giants Honorary Captain,and“Battleship”Actor spoke about refusing to be defined by his combat injuries,shared the lessons he learned and applied them to his life,career a

292、nd family.Jay Brown,Senior Vice President of Programs,Research&Training,and Shawnie Hawkins,Deputy Director of the Workplace Equality Program,spoke about the current state of affairs for the LGBTQ+community and intersectional ally-ship in theworkplace.LEARNING&DEVELOPMENTOur learning and development

293、 programs aim to expand skills and capabilities so that associates canmaster their current roles and prepare for future ones.Our associates are essential in helping us sustain the customer experience we strive to offer.To provide the best customer experience,we must invest in cultivating the best as

294、sociate experience.In fiscal 2022,we announced several changes to better support our associates learning and development,which in turn,increases theirengagement.We started the year with a new store leadership structure where we created new management positions in our stores focused on the customer e

295、xperience,increasing the number of managers on the floor at any given time.This new structure frees up time for other store leaders to devote to associate training and development.The result is an improved customer and associate experience,with new career paths for our associates.We also strive to b

296、uild a learning-rich workplace where associates and leaders can prepare to succeed,feel motivated to serve our customers well and access opportunities to grow.Our effective leadership and career development solutions enhance our orange-blooded culture,so associates are competent,confident and engage

297、d.We work to ensure every associate who wants to grow their career with The Home Depot has the information,tools and support they need.In 2022,we continued to respond to the unique,ever-changing and challenging landscape by servingup relevant content and leveraging multiple learningplatforms.E-learn

298、ing:Media-rich,self-directed learning offers focused,interactive activities and actionablefeedback.Instructor-led experiences:Immersive training at our Atlanta Store Support Center and field locations focuses on business acumen,technical skills and leadership skills for new leaders in critical posit

299、ions.Virtual Instructor-led Experiences:Engaging virtual training allows two-way communication,group activities and skills practice,which provides consistent and timely development to multiple audiences totaling 136,000 completions across the Company in the U.S.Mobile Learning:On-demand content and

300、activities inside the work stream improve learningretention and guide associates in assistingcustomers.OverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT38HELPING OUR ASSOCIATES GROWMentorship is one way that we help

301、 associates grow.In 2022,our mentoring program included over 500 mentors serving over 2,000 mentees.Home Depot University(HDU),now in its 13th year,is also critical to the growth of our associates,developing values-based leaders who take care of each other,our customers and communities.Online Resour

302、ces:Our library of online,on-demand resources includes videos,courses,book summaries,reference materials and performance support tools for associates to continue their development journey.Technology:We leverage existing learning platforms and add new ones to reach more associates.We provided more mo

303、bile learning opportunities for associates adapting to evolving procedures,protocols and customer needs.We embedded how-to training inside operational systems for easily accessible,needs-based performance support.We support associate training at all levels of the career journey.New-in-Role:A blend o

304、f instructor-led training,e-learning,on-the-job activities,leader involvement and new associate coaches supports a successful assimilation.Ongoing Development:Continuous development of technical and leadership skills is delivered in multiple ways and made up of both universal and role-specific conte

305、nt.This development ensures associates at every level continue to evolve their skills to meet the demands of a rapidly changing and increasingly complex environment.Advanced Development:Programs prepare select associates to lead effectively at the next level.These programs prepare experienced leader

306、s for the challenges theyll face as they move to higher-level roles.In addition,we continue to strengthen our connection to our customers by expanding training opportunities for them.Customer Training:Homeowner 101 and Do-It-Yourself live virtual workshops help meet customers evolving home maintenan

307、ce and improvement needs.Approximately 39,000 customers attended workshops in 2022.Trades Training:Our Path to Pro training program is designed to provide knowledgeable and qualified candidates to our loyal Pro customers in need of skilled labor.Approximately 800 customers interested in a career in

308、the trades completed the Path to Pro training program to help solve the skilled labor shortage and support our Procustomers.More than90%of our U.S.store leaders startedas hourly associatesOverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE

309、 HOME DEPOT ESG REPORT39Associates achieved over 34 million course completions in 2022.CHECK IT OUTHear how a 20-yearassociate was able toovercome obstacles withsupport from her team.DID YOU KNOWBENEFITSOur people make The Home Depot successful,and its our responsibility and privilege to take care o

310、f them.We believe supporting the well-being of our associates is an instrumental part of one of our Core Values,Taking Care of Our People.We also believe that our associates are our greatest asset,and we strive to provide them with the benefits that they need to take care of themselves and their fam

311、ilies.Our benefits are designed to help our associates care for their families and their own mental and physical well-being,manage challenges at home and at work,and tap into resources to improve their health and happiness.Our benefits hub,guides our associates to the right resources,wherever they a

312、re on lifes journey.For example,the money module is the place to go for help with personal finance education or retirement planning.The wellness module provides guidance on everything from ways to improve their health to discounts on food.Financial Programs&ToolsFutureBuilder 401(k):Associates can s

313、ave for the future while taking advantage of tax savings.Eligible associates who contribute to the plan get up to 3.5%of eligible compensation 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 enr

314、oll 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 a suite of online webinars,activities,tools and resources designed to help them increase financial knowledge and build their confidence to help relieve money-re

315、lated stress.Alight Financial Advisors:Associates have access to independent advisory services to help them gauge whether theyre on track for retirement.Insurance:To prepare for the unexpected,associates have access to policies for medical care,disability,life,home,auto and pet health insurance.Perk

316、s at Work:Associates have access to special discounts on a wide variety of everyday goods and services from nursery items to mobile phone service,gym memberships,computers,vacations andmore.Associate AssistanceCARE/Solutions for Life:Our free and confidential assistance program helps associates mana

317、ge personal and work-life challenges.Licensed counselors and medical professionals are available by phone 24/7/365 to associates and their household members,including spouses,domestic partners,other relatives and roommates.Program team members assist with specific interventions to meet the everyday

318、needs of our workforce from childcare to eldercare,marital concerns,bereavement,emotional stress,legal or financial concerns and more.In addition,CARE/Solutions for Life is also available to assist our management teams with responding to traumatic events in the workplace or community.Take Care of Yo

319、u:Our hub of apps and resources to help associates seek balance in their day-to-day life,maintain a positive outlook and find ways to keep the mind and body healthy.OverviewFocus on Our PeopleOperate SustainablyStrengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT4

320、0Family SupportPaid Parental Leave:Associates with at least one year of service who are having a baby,adopting or fostering a child can take six weeks of paid parental leave.This benefit is available to both mothers and fathers.Birth mothers are eligible for an additional six-week paid maternity ben

321、efit,or eight weeks for a Cesarean section.Years Ahead:Associates have access to resources to plan care for their elders,including referrals to memory and hospice care facilities and independent and assisted-living communities.Adoption Assistance:The Home Depot reimburses certain adoption-related ex

322、penses to assist eligibleassociates.RethinkCare:Resources and training help associates support their children with developmental disabilities or challenges with learning and behavior in line with best practices.The comprehensive program provides access to easy-to-follow videos,custom learning plans,

323、a training center and one-on-one sessions with licensed experts.Milk Stork:Associates who are breastfeeding and must travel for work can use this specialized delivery service to send breast milk home to their babies.Back-Up Care:Weve partnered with Bright Horizons to offer eligible associates back-u

324、p care for disruptive situations:Lack of an available regular caregiver/stay-at-homespouse Childcare or adult/eldercare gaps in coverage School or regular childcare center closures Transitions back to work following a leave ofabsence Assistance for a child or adult/elder relative facing illness or o

325、ther urgent issues Recovery from surgery for associates or theirspousesSittercity:An extensive database of background-checked babysitters,nannies,elder companions,pet sitters and housekeepers is available to associates.MetLife Legal Services:This voluntary legal assistance benefit provides consultat

326、ion and document review for issues from adoption to wills,powers of attorney,divorce,nursing home agreements and more.Educational AssistanceEdAssist:Associates have access to academic and college financial advisers to assist them in reducing the time,cost and stress of pursuing their educational goa

327、ls.This program also includes access to tuition discounts at more than 200 educational institutionsnationwide.Orange Scholars:The Homer Fund offers scholarships to qualified dependents of hourly associates based on financial need,academic performance,community involvement and leadership.Financial ne

328、ed is given the highest consideration-learn more on page 45.College Coach:Offers counselors and online resources to assist associates with college bound children through the admissions process and help create financial strategies for educational costs.OverviewFocus on Our PeopleOperate SustainablySt

329、rengthen Our CommunitiesOur BusinessReporting Frameworks2023 THE HOME DEPOT ESG REPORT41Healthy LifeTake Care Of You:This free-to-associates wellness hub provides resources to help associates keep it all in balance and focus on their mental and physical health and well-being.Flu prevention:Free flu

330、shots are available to associates to protect both their and our customers health during cold and flu season.Health screening:Associates have access to biometric screenings through annual onsite screening events at many Home Depot locations around the country,with their personal physicians or at a Qu

331、est Diagnostic Patient Service Center.Tobacco cessation:Personalized,one-on-one coaching and support are available at no cost to associates to help them mentally and physically prepare to quit using tobacco products.24/7 Care:Associates and family members they care for including elderly parents have

332、 access to Teladoc virtual doctors for minor illnesses support from home anytime,including after hours,on weekends and during holidays.Teladoc also provides behavioral health services,allowing associates and their family members to schedule a virtual visit with a therapist or psychiatrist.Health car

333、e support team:Included Health helps associates navigate health care for themselves and their family members.Associates have 24/7 access to a Health Care Support Team,where they can find in-network doctors,get help tackling a complicated bill,or receive a medical second opinion.The program is free to associates.AccessHope:The Cancer Support Program through AccessHope connects associates and their