Home Depot is the largest home-improvement retailer in North America, operating stores across the United States, Canada and Mexico. It supplies building materials, tools, appliances and home-improvement services.
Reason for engagement
Our engagement with Home Depot has primarily taken place under the collaborative initiative Climate Action 100+, which focuses on the world’s largest corporate greenhouse gas emitters. Home Depot is included within this initiative because of its significant operational and value-chain emissions, also recognised by the Transition Pathway Initiative. Its high-emission status reinforces the importance of clearer disclosure on its climate actions and stronger planning for a low-carbon economy.
What we did
We have engaged with Home Depot since 2023, including three meetings and ongoing correspondence. As lead investor under Climate Action 100+, we have maintained a regular dialogue with senior sustainability representatives across this period. These interactions have supported continued review of how the company communicates its climate strategy and progress.
Outcomes
Following our meetings, Home Depot has strengthened several aspects of its climate reporting. In its 2025 ‘Living our values’ report, the company introduced visual roadmaps for both direct and indirect emissions. These diagrams outline the relative contributions of different actions to its 2030 targets and respond to our request for clearer visibility of how it expects to achieve emissions reductions.
In December 2025 we met with Home Depot’s head of sustainability, who outlined the company’s current reporting approach and where it may consider providing additional clarity. Although no new scope 3 categories were added, the 2025 report includes a more detailed breakdown of scope 3, reflecting our discussions on the benefit of greater transparency on indirect emissions. The additional detail provides investors with a clearer understanding of the sources of these emissions and how the company will track its progress.
Governance reporting has also improved. Home Depot now provides a clearer explanation of how the board and relevant committees oversee climate-related risks and initiatives. This responds directly to engagement points on the value of demonstrating senior-level accountability and how climate considerations inform strategic decisions.
During our meeting, the company noted that the dialogue had been useful in its review of its disclosures. The updates in the 2025 report show a constructive response to the areas raised and provide a more complete picture of Home Depot’s climate transition strategy and implementation.