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Contacts:
Lisa Monroe, Connecticut State Treasurer’s Office, 860-702-3014
Meg Wilcox, Ceres, 617-247-0700 x. 148
Home Depot Lags Behind its Peers on Energy Efficiency & Savings, Faces Shareholder Vote on its Energy Plan at May 28 Annual Meeting May 27, 2009 ATLANTA – As Lowe’s, Wal-Mart and other big box retailers gain competitive advantage with strong, cost-saving energy efficiency programs, Home Depot (NYSE: HD) faces a shareholder vote on its energy plan at its May 28 Annual General Meeting. The Home Depot resolution is filed by the $20 billion Connecticut Retirement Plans and Trust, and it has the support of the proxy advisory firm RiskMetrics Group (RMG) and other investors in the $7 trillion Investor Network on Climate Risk. The resolution asks the company to assess its companywide energy use in its buildings, transportation, and supply chain; set energy use reduction targets; and report findings and progress to shareholders. The resolution comes as lawmakers prepare to pass sweeping clean energy legislation, and it highlights investor concern that Home Depot is falling behind in comparison to other big box retailers like Wal-Mart, which has undertaken numerous energy efficiency initiatives and is on track to save hundreds of millions of dollars annually on fuel costs alone. Connecticut State Treasurer Denise L. Nappier said, “As principal fiduciary of our state’s $20 Billion pension fund, I have the obligation to assess the long-term viability of our portfolio companies. Throughout the country—and the world—there is growing recognition of the need to use energy more efficiently. Home Depot remains unwilling to provide the information and transparency that we have requested–and without a plan, progress cannot be measured. It’s time for Home Depot to step up to the plate.” Home Depot continues to resist shareholder requests despite numerous meetings with Connecticut State Treasurer’s Office. Shareholders withdrew a similar resolution in the 2006 proxy season when the company agreed to improve disclosure of its energy efficiency performance, including energy efficiency policies, financial impacts of energy efficiency measures, targets for renewable energy usage, and goals for reducing greenhouse gas (GHG) emissions. The company has not yet followed through with the agreement. In its recommendation for a “yes” vote on the resolution, RMG wrote: “The company does not appear to comprehensively assess its current energy consumption across all operations or set targets for future energy use in its buildings, transportation and the supply chain. While Home Depot’s commitments, programs and product initiatives designed to help conserve energy are noted, the company and its shareholders could derive substantial benefit from developing a more detailed energy efficiency plan as well as a related system of reporting and disclosure to apply across the company’s operations.” Mindy Lubber, President of Ceres and Director of the Investor Network on Climate Risk (INCR), stated, “It has become all too clear that corporate governance, as well as transparency, can make or break companies in today’s rapidly shifting environment. And in the emerging clean energy economy, energy efficiency is critical to business success. By failing to address energy use in a systematic and high-level manner, Home Depot is putting itself at a competitive and operational disadvantage.” Home Depot is well behind the curve compared to its competitors. Lowe’s has positioned itself to outperform Home Depot in the face of a changing climate and economy. Lowe’s has produced an Energy Use Report that provides investors with useful information on how the company is dealing with energy challenges. The report outlines its Energy Efficiency Policy and its management strategy for assessing companywide energy. Wal-Mart has not only energy and greenhouse gas reduction goals, but an implementation plan. In early 2009, the company announced that it had surpassed its 2005 goal of making its trucking fleet 25% more efficient by the end of 2008; by 2020, WMT is estimated to save $500 million a year in transportation costs alone. The resolution filed with Home Depot is one of a record 67 global warming resolutions filed with 58 U.S. companies and 2 Canadian companies as part of the 2009 proxy season. The shareholder filings are coordinated by the Ceres investor coalition and the Interfaith Center on Corporate Responsibility (ICCR), a group of faith-based investors. Commercial buildings in the U.S. account for almost 20 percent of the nation’s energy consumption and carbon dioxide emissions. In addition, big box retailers like Home Depot have particular challenges when it comes to energy use due to their extensive supply chains and transportation networks. Research shows energy management to be an important indicator of management quality and stock market potential. For further information on the resolution see http://www.incr.com/resolutions. Ceres is a leading coalition of investors, environmental groups and other public interest organizations working with companies to address sustainability challenges such as global climate change. The Connecticut Treasurer’s Office oversees the $20 billion Connecticut Retirement Plans and Trust Funds. Treasurer Nappier is the principal fiduciary of the funds.
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