Home Depot : 2021 Responsible Sourcing Report

2021 Responsible Sourcing Report

Table of Contents

Letter from Our Chairman and CEO	05
Responsible Sourcing Program	06
The Home Depot Human Rights Program	08
Our Commitments	10
Responsible Sourcing Standards	12
Collaborations	16
Process	18
Audits
Corrective and Preventive Action (CAPA)
Corrective and Preventive Action Verification Program
The Home Depot Audit Process
ELEVATE Partnership	21
Transparency Improvement Program (TIP)
Supplier Compliance Ownership
Program Evaluation (SCOPE)
Training and Communication	24
Conflict Minerals	28
Ethical Accountability	29
THD Responsible Sourcing Team	31

Unless otherwise noted, all data included in this report is for the fiscal year ended January 31, 2021.

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Letter from Our

Chairman and CEO

"

Our eight core values are the greatest gift our founders gave us four decades ago.

Their philosophy was that if we operated according to these values, the rest would take care of itself. Our founders were right, and we continue to use these values as our guide to do things better every day.

Although a majority of our products are sourced in North America, The Home Depot works with thousands of suppliers and factories around the world to source merchandise for our customers. Through our Responsible Sourcing program, we are able to share our values throughout our entire supply chain to achieve a positive impact. The Home Depot is striving to ensure that the people who make what we sell are treated with respect in a safe and fair workplace, our suppliers benefit from doing the right thing, and our customers in turn receive quality product.

I want to thank our incredible associates and suppliers who have made social and environmental responsibility a top priority. I hope that you find our 2021 Responsible Sourcing Report informative.

"

Craig Menear

Chairman and CEO

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Responsible Sourcing Program

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The Home Depot

Human Rights Program

Our values of Doing the Right Thing, Respect for All People and Taking Care of Our People are at the center of our Human Rights program. The Home Depot and our subsidiaries respect and support the dignity, well-being and human rights of our associates, the workers in our extended supply chain, the communities in which we live and those affected by our operations.

The Home Depot is committed to respecting internationally recognized human rights. We review and are informed by the United Nations (UN) Guiding Principles on Business and Human Rights, the International Bill of Human Rights, and the International Labour Organization's (ILO) Declaration on Fundamental Principles and Rights at Work. We recognize that while governments have a duty to protect human rights, companies also have a responsibility to respect human rights. This means addressing the adverse impacts of our global operations.

We believe respecting human rights is of growing importance to our associates, workers, shareholders, investors, customers, consumers and the communities where we operate. There is both a business and moral case for working to ensure that human rights are upheld across our supply chain.

Through contractual arrangements and our Responsible Sourcing program, we require our suppliers to acknowledge and abide by our human rights expectations. All suppliers must agree to our Responsible Sourcing requirements as a condition of doing business with The Home Depot.

There is both a business and moral case for working to ensure that human rights are upheld across our supply chain.

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