Home Depot 2013 Annual Report Download - page 11

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February 2014, to support direct-to-customer delivery, we opened a new direct fulfillment center in the U.S., and we plan to
add two additional facilities by the end of 2015. We expect these facilities to provide us the ability to deliver 90% of our
customers' parcel orders in the U.S. within two days. We remain committed to leveraging our supply chain capabilities to
fully utilize and optimize our improved logistics network.
Commitment to Environmentally Responsible Operations. The Home Depot is committed to conducting business in an
environmentally responsible manner. This commitment impacts all areas of our business, including energy usage, supply
chain, store construction and maintenance, and, as noted above under "Energy Saving Products and Programs," product
selection and delivery of product knowledge to our customers.
In fiscal 2013, our energy management team continued to implement strict operational standards that establish energy
efficient practices in all of our U.S. facilities. These include HVAC unit temperature regulation and adherence to strict
lighting schedules, which are the largest sources of energy consumption in our stores, as well as use of energy management
systems in each store to monitor energy efficiency. We estimate that by implementing and utilizing these energy saving
programs, we have saved almost 7.0 billion kilowatt hours (kWh) since 2004. That year, we set a goal to reduce our kWh per
square foot in our U.S. stores by 20% by 2015, and we met that goal in fiscal 2013, well in advance of our targeted date.
Through our supply chain efficiencies described above under "Logistics," we are targeting a 20% reduction in our domestic
supply chain greenhouse gas emissions from 2008 to 2015, which would equate to annual fuel savings of approximately
25 million gallons. We also continued to monitor our "carbon footprint" from the operation of our stores as well as from our
transportation and supply chain activities. Through our energy conservation and supply chain initiatives, we estimate that we
reduced our absolute carbon emissions by approximately 216,000 metric tons in 2012 compared to 2011.
With respect to construction of our stores, we partnered with the U.S. Green Building Council and, as of the end of fiscal
2013, have built eight LEED for New Construction certified or similarly certified stores. In 2012, we opened a new store in
Lodi, California and used a grant from the U.S. Department of Energy to help design, monitor and verify the energy savings
at that store. The building is designed to consume substantially less energy than the 2007 90.1 ASHRAE standards
established by the American Society of Heating, Refrigerating and Air-Conditioning Engineers, an international society that
sets forth HVAC and refrigeration standards to promote sustainability. We also implemented a rainwater reclamation project
in 2010. As of the end of fiscal 2013, we had retrofitted 122 of our stores with reclamation tanks to collect rainwater and
condensation from HVAC units and garden center roofs, which is in turn used to water plants in our outside garden centers.
We estimate our annual water savings from these units to be approximately 500,000 gallons per retrofitted store in fiscal
2013.
Our efforts have resulted in a number of environmental awards and recognitions. For example, in 2013, we were named
"Retail Partner of the Year" by both the ENERGY STAR® division and WaterSense® division of the U.S. Environmental
Protection Agency for our overall excellence in energy efficiency and water efficiency. We also scored 99 out of 100 on the
Carbon Disclosure Project Climate Disclosure Index, placing us among the highest scoring companies in the Index and at the
top of our sector.
We are strongly committed to maintaining a safe shopping and working environment for our customers and associates and
protecting the environment of the communities in which we do business. Our Environmental, Health & Safety ("EH&S")
function is dedicated to ensuring the health and safety of our customers and associates, with trained associates who evaluate,
develop, implement and enforce policies, processes and programs on a Company-wide basis. Our EH&S policies are woven
into our everyday operations and are part of The Home Depot culture. Some common program elements include: daily store
inspection checklists (by department); routine follow-up audits from our store-based safety team members and regional,
district and store operations field teams; equipment enhancements and preventative maintenance programs to promote
physical safety; departmental merchandising safety standards; training and education programs for all associates, with
varying degrees of training provided based on an associate's role and responsibilities; and awareness, communication and
recognition programs designed to drive operational awareness and understanding of EH&S issues.
Interconnected Retail
Our interconnected retail initiative supports and connects our three other key initiatives, and it is growing in importance as
the line between online and in-store shopping continues to blur. Over 30% of our online orders are picked up in a store, and
many of our customers research products online and then go into one of our stores to view the products in person or talk to an
associate before making the purchase. While in the store, customers may also go online to access ratings and reviews,
compare prices or view our extended assortment, and over 10% of our online orders are created in-store with a store associate
assisting the customer. Providing a seamless multichannel retail experience is key to helping our customers buy when, how