Home Depot 2014 Annual Report Download - page 11

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inventory productivity at the same time. At the end of fiscal 2014, over 95% of our U.S. store products were ordered through
central inventory management.
In addition to our RDCs and transload facilities, at the end of fiscal 2014, we operated 34 bulk distribution centers, which
handle products distributed optimally on flat bed trucks, in the U.S. and Canada; 21 stocking distribution centers in the U.S.,
Canada and Mexico; and ten specialty distribution centers, which include offshore consolidation and return logistics centers,
in the U.S. and Canada. We remain committed to leveraging our supply chain capabilities to fully utilize and optimize our
improved logistics network. For example, we have begun to flow a portion of our BOSS orders through our RDCs, which
reduces our transportation costs for those orders.
Building Connectivity. We also believe that using our almost 2,000 U.S. stores as a network of convenient locations for our
customers who shop online and use our BOPIS, BOSS and BORIS programs provides us with a competitive advantage. As
noted above, in fiscal 2014, we started a pilot for BODFS, which will give us the capability to deliver orders placed online
from our stores to the customer's home or job site. In addition, we added capacity for the more traditional online direct-to-
customer delivery methods in fiscal 2014. We opened two new direct fulfillment centers in Georgia and California, which
brings our total to four direct fulfillment center operations in the U.S., and another facility is scheduled to open in the second
half of fiscal 2015. These facilities will support our online growth with a balance of cost efficiency and speed in shipping
online orders to meet our customers' needs. We expect these facilities to provide us the capability to deliver 90% of our
customers' parcel orders in the U.S. within two days.
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 2014, 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 over 8.6 billion kilowatt hours (kWh) since 2004. We set a goal to reduce our kWh per square foot
in our U.S. stores by 20% by 2015. We met that goal in fiscal 2013, well in advance of our targeted date, and estimate a
reduction of almost 32% as of the end of fiscal 2014.
Through our supply chain efficiencies described above under "Logistics," we targeted a 20% reduction in our domestic
supply chain greenhouse gas emissions from 2008 to 2015. 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 supply chain and energy
reduction initiatives, we have exceeded our goal by reducing our absolute carbon emissions by over 1.9 million metric tons
from 2008 to 2013, including the reduction of over 125,000 metric tons in 2013.
At our stores, we implemented a rainwater reclamation project in 2010. As of the end of fiscal 2014, we had retrofitted 150 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 2014.
Our efforts have resulted in a number of environmental awards and recognitions. For example, in 2014, we received three
significant awards from the U.S. Environmental Protection Agency ("EPA"). We were named "Retail Partner of the Year" by
both the ENERGY STAR® division and WaterSense® division of the EPA for our overall excellence in energy efficiency and
water efficiency, and we received the EPA's "SmartWay Excellence Award," which recognizes The Home Depot as an
industry leader in freight supply chain environmental performance and energy efficiency. We also participate in the CDP
(formerly known as the Carbon Disclosure Project) reporting process. CDP is an independent, international, not-for-profit
organization providing a global system for companies and cities to measure, disclose, manage and share environmental
information. In 2014, we scored 93 out of 100 from the CDP for our disclosure, placing us among the highest scoring retailers
and in the top quartile of our sector. We also received a performance band ranking of A- (out of a range from A to E),
reflecting a high level of action on climate change mitigation, adaptation and transparency.
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