Wind Farm

The Home Depot

3. Good Health and Well-Being 7. Affordable and Clean Energy 13. Climate Action

Overview

Home Depot's innovation is all about reducing the amount of CO2 they admit into the air by switching to wind energy. This will help the fight against global warming and also profits many neighboring communities. "The Home Depot has been highlighted as a global leader on corporate climate action and continues to pursue its sustainability goals with new renewable energy initiatives in 2019" (corporate.homedepot.com).

In an interview with one of the store managers, he stated, “ I love how the innovation focuses on our future and what will be of tomorrow, which is something I feel many businesses don’t take into consideration when working with all these CO2 emitting mechanisms.” In iterviews with the store associates, they also stated that the innovation is definitely helping in terms of economic growth, and they are grateful for the numerous job opportunities it has created.

Authors

Dorcas Owusu

Dorcas Owusu

Juwan Sandiford

Juwan Sandiford

Zak James

Zak James

Jin Lee

Jin Lee

Anjali Gandhi

Anjali Gandhi

School

Rutgers Business School

Rutgers Business School

Professor

Kenneth Welch

Kenneth Welch

Innovation

Home Depot’s investment in wind farms and its use of wind energy helps reduce the amount of CO2 emissions the company gives, which contributes to the ending or the attempt to end global warming. The Home Depot decreases its carbon emissions while providing some nice economic benefits to the surrounding community.

"The Home Depot has partnered with EDP Renewables North America to purchase wind energy from the Los Mirasoles Wind Farm in McAllen, Texas. Boasting 125 turbines, the energy purchased from the farm is enough to power 100 Home Depot stores while also providing $150,000 in local community benefits each year” (corporate.homedepot.com). Home Depot’s use of wind farms and wind energies also helps contribute to the company’s commitment to sustainability.

Wind Farm

Inspiration

According to the manager interviewed, what inspires him about the innovation is its ability to not only provide many future jobs, due to the company’s ability to save money, but also the fact that it looks to the future and creates a safer environment for generations to come. “ I love how the innovation focuses on our future and what will be of tomorrow, which is something I feel many businesses don’t take into consideration when working with all these CO2 emitting mechanisms” (Corey Gadsden).

The store associates stated that the innovation is definitely helping in terms of economic growth, and they are grateful for the numerous job opportunities it has created. Many of the leaders in this movement stated that the benefits will certainly help the company in the long run as well as provide future air benefits. It also creates ways for other companies to join in climate sustainability and inspire their customers as well to join in on the fight. Home Depot is also aiming for a 40% reduction in carbon emissions by 2030 and a 50% reduction by 2035. It also adds on to accomplishing their sustainability commitment, which upholds what the company stands for: leading by example.

Overall impact

The people involved in this innovation are founders Arthur Blank, Kenneth Langone, Bernard Marcus, Pat Farrah, Ron Brill, and EDP Renewables. They created a partnership with a wind farm, decreasing their CO2 emissions. The short-term benefits would be the openings of more jobs, and the long-term benefits would be its effect on the environment in terms of global warming. It will be able to lead the way for other companies to see its benefits and hopefully switch over to wind energy, ultimately helping in the reduction of CO2 in our atmosphere. This will provide safer breathing air for generations to come. Also, wind power never ceases, so its beneficial in the sense that we never run out.

The overall impact is to contribute to Home Depot's sustainability goal, reduce the CO2 emissions in our atmosphere, save money to provide more jobs, and inspire other companies to invest in wind energy.

Business benefit

Home Depot’s use of wind energy has increased economic growth by reducing the amount of energy the companies use, which allows for more jobs. In an interview with the Newark Store Assistant Manager Corey, he stated, “I love the investment in wind energy because it cost less to use than any other use of production which emits CO2 and with that allows for more money and hence more job openings for people in underprivileged neighborhoods such as the one in which we reside” (Corey).

“Forty-five U.S. Home Depot stores currently have operational rooftop solar systems, and the company also procures energy from solar farms in Delaware, Massachusetts, and Minnesota with a combined annual output of 25 million kWh. Last May, The Home Depot completed a 554 kW solar project at its Washington, DC, store. The Home Depot is aiming for a 40% reduction in carbon emissions by 2030 and a 50% reduction by 2035” (nawindpower.com). Vice President of Environmental Innovation Ron Jarvis stated that “Managing carbon emissions has been a focus for Home Depot for more than 10 years.... Our dual strategy to reduce our total energy use and create a cleaner energy portfolio has helped us to reduce our absolute carbon emissions by over 3 million metric tons since 2009” (Ron Jarvis).

Home Depot's innovation helps in many ways. For example, it provides them with safe, reliable energy; it saves the company money; and it contributes to their sustainability goal.

Social and environmental benefit

This innovation helps the fight against global warming. It also helps bring in money to neighboring communities, which they can use to make improvements to other neighborhoods. "Our dual strategy to reduce our total energy use and create a cleaner energy portfolio has helped us to reduce our absolute carbon emissions by over 3 million metric tons since 2009" (Ron Jarvis). Home Depot's larger wind farm is expected to create hundreds of construction jobs, up to 20 full-time operational jobs, and provide an estimated $77 million in local community benefits. The farm will have 83 wind turbines that can produce enough power to provide more than 50,000 average U.S. homes with clean electricity each year.

The company is aiming for a 40% reduction in carbon emissions by 2030 and a 50% reduction by 2035.

Video Link

Interview

Corey Gadsden, Assistant Manager

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The Home Depot

The Home Depot

Atlanta, Georgia, US

Business Website: TheHomeDepot.com

Year Founded: 1978

Number of Employees: 10000+

Home Depot provides home improvement services. They provide tool rentals for convenience, and they serve contractors and everyday do-it-yourself customers for home improvements. They also sell tools and construction equipment at affordable pricing, even promising to beat the lowest price found by customers by 10%. The Home Depot is the world’s largest home improvement retailer in more than 2,200 stores across North America.