RATING
Outlook
Negative
SECTOR
Home Centres
Chief Sustainability Officer
T: N/A
E-mail: N/A
Stock Exchange and Ticker
New York Stock Exchange: LOW
Website
Contact
T: 704 758 100
E.mail: N/A
Listing
- Barron’s names Lowe’s as one of the top 100 most sustainable companies in the U.S.
- 2021 Fortune’s List of the World’s Most Admired Companies – Rank 47
- 2021 The Charlotte Observer Top Work Places
- 2021 LinkedIn Top Companies in Charlotte
- 2021 Disability:IN National Best Place to Work for Disability Inclusion
- 2021 Disability:IN Local North Carolina Best Place to Work for Disability Inclusion
- 2021 VET Indexes 3 Star Employer
- 2021 Human Rights Campaign Best Places to Work For LGBTQ Equality
- 2021 India’s Best Workplaces for Women in Large Companies Category – Top 100
- 2021 Working Mother & Avtar 100 Best Companies for Women in India
Awards
- Included for third consecutive year on the Dow Jones Sustainability Indices (DJSI) for NA
- Lowe’s recognized as a top company in sustainability practices by FTSE4Good
- Lowe’s named a 2021 SmartWay High Performer
- Received the Leader in Sustainability Award from Call2Recycle in Canada
- 2021 Top 50 Best-of-the-Best Corporations for Inclusion and NBIC Program or Initiative of the Year Award
- 2021 Best Corporations for Veteran’s Business Enterprises of the Year Award
- 2021 American Veterans (AMVETS) Reward
- 2021 Military Friendly Employer Awards
Revenue
$96.2B
Market Capitalisation
$120.34B
Employees
141,579
Content source
Lowe's Sustainability Report
Evaluation of Lowe's
Over the past two years since the last report on Lowe’s has been written, it appears that the company has gained more awards, especially in the area of diversity in the workplace, attracting people with disability and from the LGTBQ community. Additionally, it has added a few more listings to report on more sustainability indicators.
Although the company aligns its targets and progress to several SDGs, it can be argued that, for a company of this size it could do more. For example, on the sustainability report, regarding the waste management it says that “store waste streams are recycled through regional and national partnerships”, with no details how the waste is actually being managed. Lowe’s itself introduced a wood grinding machine to recycle pallets and collaborates with Call2Recycle to encourage battery recycling in their store. From a line 0f 22,000 products, more items can be added to their own recycling program besides batteries and paints.
Secondly, the ENERGY STAR® and WaterSense® labels are described as saving money for customers, but no mention of the potential environmental benefits. The customers are also stakeholders and the positive impact on them is important regardless, but Lowe’s should also consider measuring the environmental impact.
Small progress on transition to renewable energy sources is reported and on track to reach their goal by 2030.
Initiatives in the area of transportation and logistics are reported, but not linked to the emission reduction goals.
Overall, Lowe’s is on track to reaching several targets, deserving a C rating, but there is much more they can do. Further measures include life cycle assessments for their products, so that the chain takes responsibility not only when those products are in the store, but also takes care of end-of life, facilitating recycling or repair of customer’s return of ‘retired’ products.
Sustainability Scorecard
Lowe's Company Activity
Lowe’s Companies, Inc.is in the business of home improvement products that are used for maintenance, repair, remodelling, home decorating and property maintenance. Lowe’s operates 1,971 improvement and hardware stores, as of January 28, 2022 (Source: Yahoo Finance). The company was founded in 1921 and is based in Mooresville, North Carolina.
Categories of products include appliances, bathroom, building supply, electrical, flooring, hardware, paint, kitchen, plumbing, lightening and fans, outdoor living, windows and doors. The company also offers installation services through independent contractors; extended protection plans, and in-warranty and out-of-warranty repair services.
Lowe's Sustainability Activity - As per company declarations
The corporate’s sustainability space includes goals and progress in three areas, namely people and communities, product sustainability and operational excellence. For example Lowe’s is focusing on helping customers transition to a low-carbon, more sustainable future by improving the sustainability of both products and packaging.
Secondly, the company is investing in reducing energy consumption in their facilities, while reducing GHG emissions, by deploying LED lighting and high efficiency HVAC units in stores and distribution centres, and by leveraging new building management technologies to help automate heating, cooling and lighting.
Additionally, Lowe’s has negotiated renewable PPAs (power purchase agreements) and has partnered with a solar developer to build a solar farm. The efforts to reduce climate impacts are measured and adjusted in order to reach a net-zero target, meaning to eliminate or offset all GHG emissions over the next 30 years.
Lastly, the company’s focus on sustainability is communicated to all associates to inspire a better sense of purpose about the work they are doing and to make them feel better about the company they are working for.
Certificate & Labels, Standards and Frameworks
- ENERGY STAR® certified products
- WaterSense® offerings, United States EPA-certified products
- FSC, GreenGuard and EPA Safer Choice
- SmartWay
Lowe's in the news: Press Reviews and Social Media
- (Yahoo, May, 2022) LOWE’S CANADA RECEIVES ITS TENTH SUSTAINABILITY AWARD FOR BATTERY RECYCLING
In 2021 Lowe’s Canada was named Leader in Sustainability by Call2Recycle (an organisation that operates Canada’s largest battery collection and recycling program) for collecting 125,000 kilograms of batteries for safe disposal diverted from landfills. Additionally, Lowe’s Canada network collected more than 1,850 tons of paint and 95 tons of CFL bulbs and fluorescent tubes. Lastly, Lowe’s Canada was also the first home improvement retailer to announce it will progressively remove single-use plastic shopping bags from its network starting in June 2022.
Highlights from Lowe's Sustainability Report
Achievements
People & Communities
- 60% of company’s board are women and/or technically diverse
- 33% of the executive officers are women
- 44% of executive officers are ethnically diverse
- Launched 100 Hometowns with a $10 million commitment and completed 100 impact projects across the country
- $740M awarded in bonuses to frontline associates
Product Sustainability
- $11.5B customer lifetime water bill savings from Lowe’s WaterSense products
- $6.2B customer lifetime savings from Lowe’s Energy star products
Operational Excellence
- Science-based net-zero target for Scopes 1, 2 and 3 in 2022
- 42% reduction in absolute 1 and 2 GHG emissions since 2016
- 74% of Lowe’s strategi suppliers had sustainability goals in place in 2021
- 11% reduction in total energy consumptions in 2021 from 2020
Weaknesses and Setbacks
- Lowe’s set the target to achieve 100% of wood products to be responsibly sourced by 2025, but since the 2019 report, the wood volume sourced responsibly in the US grew only 1% (from 68% in 2019 to 69% in 2021, while the volume in Canada went down by 7% (from 78% in 2019 to 71% in 2021)
- 2021 report does not include goals for reduction in store emissions, nor for waste to landfill.
- After most likely not reaching the target of 40% reduction in waste to landfill per net sale, set for 2020 (only 19.4% reported in 2019), Lowe’s dropped the goal in 2021 report as the waste to landfill volume increased by 25%
- Initiatives on shipping and logistics to reduce carbon emissions not linked to either scope 1 or 2 emissions to show progress towards the 60% reduction goal by 2030
Targets vs Progress Reported
| Target | Results reported |
|---|---|
| By 2030, increase to 50% the share of renewable energy in the energy mix for Lowe’s facilities | - In 2021, 9% of Lowe’s energy portfolio was powered by renewable sources |
| By 2030, achieve the sustainable management and efficient use of natural resources by helping customer save $40 billion in energy costs and $65 billion in water costs through the sale of ENERGY STAR® certified and WaterSense® labelled products | - In 2021 Lowe’s helped save $6.2 billion in energy costs and $11.5 billion in water costs |
| 100% of new eligible private brand Kitchen & bath items will be WaterSense® labelled starting in 2022/td> | - Currently on track for implementation |
| By 2030 reduce absolute Scope 1 and 2 emissions by 40% below 2016 levels | - Achieved as 42% emission reduction in Scope 1 and 2 emissions |
| To gain access to comprehensive data and oversight of Scope 3 emissions associated with the US transportation footprint obtain 100% SmartWay certification for transportation providers | - Due to the shortage of truck drivers, and the need to maintain shipping operations Lowe’s is not currently 100% SmartWay, but committed to the goal of complete certification |
| Promote the implementation of sustainable management of all types of forests by committing to 100% responsible sourced wood products by 2025 | - 69% of wood products in the United States were responsibly sourced in 2021 - 71% of the Canadian lumber and building material was certified in 2021 |
| By 2025, 100% of strategic suppliers will have sustainability goals | - Currently 74% of strategic suppliers have sustainability goals in place |
