Vote occurred May 19, 2022.
Deforestation is the second leading cause of climate change,1 eliminating vegetation crucial to CO2 reduction while producing emissions. For businesses, sourcing oversight can improve cost control and reduce the risk of dependence on concentrated resources.
The Home Depot is the world’s largest home improvement retailer and a major purchaser of wood products, a leading driver of deforestation. The Home Depot sources wood from vulnerable forests such as the carbon-dense Canadian boreal2 and old-growths in Ecuador3 but has not committed to ensuring that its products are free of deforestation or disclosing sourcing geographies or certifications.4 The Home Depot’s sourcing strategy runs climate, reputational, regulatory, and business risks.
Shareholders at Green Century Funds requested that The Home Depot issue a report on whether and how it could increase its efforts to eliminate deforestation and degradation of primary forests in its supply chains.5
The report will provide greater transparency into The Home Depot’s current supply chains, which may be vulnerable to timber supply and lumber price volatility due to climate change and deforestation. This presents an opportunity for The Home Depot to reevaluate its supply chains and transition toward more sustainable sources. As an industry leader, The Home Depot can set a standard in the market by proving the business case for more sustainable sourcing.
This proposal passed with 65% of the vote.