Home Depot Shoots for 20% Reduction in Supply Chain Emissions Over 5 Years

by | Mar 5, 2010

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home depot storefrontHome Depot has set a goal to reduce its greenhouse gas emissions related to the domestic supply chain by 20 percent over the next five years.

The retailer expects its supply chain to benefit from a move to a centralized distribution network, instead of the mostly supplier-to-store process in place currently, according to a press release.

More efficient routing, scheduling and consolidation of store shipments is expected to equate a reduction of 200 million miles driven a year.

In a review of its progress so far, the retailer said it has saved 2.6 billion kilowatt hours at its U.S. operations since starting an energy efficiency program in 2004. In Canada, the chain has saved 220 million kWh since 2005, according to a press release.

Home Depot said it expects to hit a 20 percent reduction in kWh per square foot in the U.S. and Canada by 2015.

The company said that, since the start of 2004, its stores have seen the energy consumed per square foot decline 16 percent. In 2004, the chain used about 25 kWh per square foot, and now the number stands at 21 kWh. The goal is 20 kWh per square foot by 2015.

To achieve this, stores are shifting from 54 watt lighting to 49 watts, as well as completing HVAC upgrades and adding white roofs.

The stores also will try to save energy by shifting stocking hours more closely to operating hours, allowing the buildings to sit with the lights off longer.

The company is in the process of calculating its overall carbon footprint, based on standards from the World Resources Institute and the World Business Council for Sustainable Development protocol.

Home Depot previously has faced pressure from shareholder groups to adopt more stringent energy efficiency measures.

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