Appendix
The Sherwin-Williams Company - 2021 Investor ESG Summary
TOPIC | METRIC | 2019 | 2020 | 2021 | |
Sustainability Reporting | |||||
2021 Sustainability Report | 2021 Sustainability Report | ||||
2021 SASB Index | 2021 SASB Index | ||||
2021 TCFD Report | 2021 TCFD Report | ||||
GRI Index | GRI Index | ||||
General | |||||
Total Employees | 61,111 | 61,031 | 61,626 | ||
Total Employees (Full-Time Equivalent) | 54,759 | 54,727 | 51,116 | ||
Company | Net Sales (Millions) | $17,900.8 | $18,361.7 | $19,944.6 | |
Total Shareholder Return | See page 73 for Shareholder Returns | ||||
Number of Sites (includes manufacturing/distribution sites and | 5,376 | 5,288 | 5,271 | ||
global stores, branches and blending facilities) | |||||
Environmental | |||||
General | ISO 14001 Certified Sites1 - # (%) | 43 (33%) | 44 (36%) | 43 (36%) | |
Environmental | Environmental Management Policy | Global Environmental, Health and Safety Policy | |||
Scope 1 (Direct CO2) GHG Emissions (metric tons CO2e) | 370,711 | 351,109 | 354,397 | ||
Scope 2 (Indirect CO2) GHG Emissions (metric tons CO2e) | 305,402 | 283,738 | 266,869 | ||
Total CO2 Emissions (metric tons CO2e) | 676,113 | 634,847 | 621,266 | ||
Scope 3 Emissions from Business Travel (metric tons CO2e) | 17,479 | 5,222 | 6,197 | ||
N/A, the | |||||
Company has | |||||
transitioned to | Reduce Absolute | Reduce Absolute | |||
an absolute | |||||
Emissions Reduction Goal | Scope 1 and 2 Scope 1 and 2 by 30% | ||||
emissions | |||||
by 30% by 2030 | by 2030 | ||||
reduction goal as | |||||
(2019 baseline) | (2019 baseline) | ||||
Emissions and | opposed to an | ||||
Climate Change | intensity-based | ||||
goal | |||||
Science-Based Target | No | Yes | Yes | ||
VOC Emissions (tons) | 1,635 | 1,681 | 1,879 | ||
SOx Emissions (tons) | 221 | 205 | 212 | ||
NOx Emissions (tons) | 3,657 | 3,404 | 3,515 | ||
Climate Change Strategy | Yes | Yes | Yes | ||
CDP Climate Change Disclosure | CDP Climate Change Response | ||||
1 | CDP Climate Change Score | D | C | B- | |
This only applies to manufacturing and distribution facilities. |
SHERWIN-WILLIAMS 2021 SUSTAINABILITY REPORT | Building on the Good | 68 |
Appendix
The Sherwin-Williams Company - 2021 Investor ESG Summary, continued
TOPIC | METRIC | 2019 | 2020 | 2021 |
Total Direct Energy Consumption (Scope 1) (Million Gigajoules) | 5.27 | 5.14 | 5.06 | |
Total Indirect Energy Consumption (Scope 2) (Million Gigajoules) | 2.60 | 2.64 | 2.67 | |
Energy | Total Energy Consumption (Million Gigajoules) | 7.87 | 7.78 | 7.73 |
Total Direct Energy Intensity (Scope 1) (Gigajoules/metric tons produced) | 1.37 | 1.34 | 1.34 | |
Total Indirect Energy Intensity (Scope 2) (Gigajoules/metric tons produced) | 0.68 | 0,69 | 0.71 | |
Total Energy Intensity (Gigajoules/metric tons produced) | 2.05 | 2.03 | 2.04 | |
Renewable Energy (Million Gigajoules)* | 0.00 | 0.01 | 0.00 | |
Renewable Energy Renewable Energy Percent of Total (%) | 0.03% | 0.07% | 0.06% | |
Renewable Energy Goal | N/A | N/A | 50% by 2030 | |
Water Withdrawn (m3) | 3,451,670 | 3,785,002 | 3,785,000 | |
Water Consumption in Production Facilities (m3) | 1,474,380 | 1,686,920 | 1,686,920 | |
Water Intensity (m3/metric ton production) | 0.89 | 0.99 | 0.99 | |
Water | Water Consumed in Production Facilities and Sourced from Regions with | 21.48% | 19.50% | 20.98% |
High or Extremely High Baseline Water Stress | ||||
CDP Water Disclosure | CDP Water Response | |||
CDP Water Score | C | C | C | |
Wastewater Discharge (m3) | 1,977,290 | 2,098,090 | Not yet available | |
Waste | Waste Reduction Goal | N/A | N/A | 25% by 2030 |
Waste Reduction Strategy | 2021 Sustainability Report |
Social
Workforce
Women in Workforce | 24.6% | 24.5% | 24.5% |
Women in Management | 26.3% | 26.5% | 26.4% |
Increase women in | |||
Women in Management Goal | N/A | N/A | management roles |
to 30% by 2025 | |||
Minorities in Workforce (U.S. Only) | 33.3% | 34.2% | 35.2% |
Minorities in Management (U.S. Only) | 25.9% | 26.6% | 27.7% |
Increase | |||
Minorities in Management (U.S. Only) Goal | N/A | N/A | minorities in U.S. |
management roles | |||
to 30% by 2025 | |||
Workforce Age Group 70+ | 0.8% | 0.9% | 0.9% |
Workforce Age Group 60-69 | 6.0% | 6.4% | 6.6% |
Workforce Age Group 50-59 | 15.2% | 15.5% | 15.7% |
Workforce Age Group 40-49 | 19.4% | 19.6% | 20.1% |
Workforce Age Group 30-39 | 25.8% | 26.4% | 26.6% |
Workforce Age Group 20-29 | 30.8% | 30.0% | 28.8% |
Workforce Age Group Under 20 | 2.0% | 1.23% | 1.3% |
Voluntary-Regrettable Turnover (for Full-Time only) | 9.5% | 8.0% | 12.3% |
The Sherwin-Williams Company 401(k) Plan | 9.2% | 8.2% | 7.9% |
Common Stock Ownership | |||
*Renewable Energy includes onsite generation and procured renewable energy credits.
SHERWIN-WILLIAMS 2021 SUSTAINABILITY REPORT | Building on the Good | 69 |
Appendix
The Sherwin-Williams Company - 2021 Investor ESG Summary, continued
TOPIC | METRIC | 2019 | 2020 | 2021 | |
Equal Opportunity Policy | Equal Employment Opportunity Policy | ||||
2021 Engagement Survey: We collaborated with a third party to conduct our global engagement survey. Our goal was to leverage | |||||
the voice of our employees and quantify our progress toward creating an inclusive culture that empowers everyone to learn, grow and | |||||
achieve their career aspirations. We earned a favorable engagement score of 77%, which serves as an affirmation of our existing efforts. | |||||
The 2021 survey, established a baseline for our overall engagement score as well as associated metrics. We are committed to using the | |||||
results to drive continued progress. Going forward, we will continue our regular cadence of pulse surveys and plan to conduct the global | |||||
Inclusion, Diversity | engagement survey every two years. | ||||
The following results from our 2021 all-employee engagement survey reflect our efforts in fostering an inclusive, supportive culture. | |||||
& Equity | |||||
• | "Managers treat our employees with dignity and respect." - 90% favorable response | ||||
• | "Sherwin's a safe place to work." - 85% favorable response | ||||
• | "I can be myself at Sherwin-Williams." - 80% favorable response | ||||
• | "I'd recommend Sherwin-Williams as a place to work." - 80% favorable response |
Conscious Inclusion Education & Training equips employees with inclusive leadership behaviors and resources to improve performance, drive business growth and enhance customer experience. The sessions and resources are designed to help leaders become mindful of unconscious perspectives and provide them with practical actions they can take to create and lead more inclusive cultures.
Days Away Restricted or Transferred (DART) Rate (Total incidents per | 1.03 | 0.97 | 0.58 | |
200,000 hours worked) | ||||
Occupational | ||||
Recordable Case Rate (Total number of employees with recordable | ||||
Health and Safety | 1.30 | 1.06 | 0.81 | |
incidents per 200,000 hours worked) | ||||
Health and Safety Policy | Global Environmental, Health and Safety Policy | |||
Human Rights Policy | Code of Conduct | |||
Human Rights | Human Trafficking Policy | |||
Conflict Minerals Policy | Conflict Minerals Policy | |||
Community | Total Corporate Foundation and Other Giving | $7,221,883 | $7,527,741 | $6,425,865 |
Engagement | Community Engagement | Engagement | ||
Products | ||||
Quality and Safety | Research and Development Costs (Millions) | $103,100.0 | $97,100.0 | $115,900.0 |
With the implementation of our Sustainability by Design program, we consider sustainable attributes in product innovation and development processes. From initial concept through commercialization, we identify ways to make our products more sustainable and better performing by evaluating chemical formulations, product performance, manufacturing processes, health and safety considerations, and product packaging, among other areas. This formal process also provides flexibility to evolve with the needs of each of our businesses.
Highlights from 2021 include: | ||
• | Expanded Sustainability by Design across the enterprise, enhancing our capability to innovate based on sustainability attributes | |
Sustainability | on a large scale | |
• | Established a baseline for "sustainably advantaged products" and developed a plan for expanding this product portfolio in the | |
by Design | ||
future | ||
• | Advanced our position to start managing our Scope 3 emissions by enhancing the technicality and organization of our processes | |
• | Integrated our Sustainability by Design philosophy into our existing Stage-Gate process | |
• | Defined five "Sustainability Attributes" of focus for product innovation, development and categorization - Air Quality, Formula | |
Stewardship, Resource Conservation, Circularity and Performance | ||
• | Launched internal sustainability training, with a focus on how to think about sustainability to determine the attributes most | |
important to each business and/or product line |
For more on our Sustainability by Design program, see our 2021 Sustainability Report beginning on page 30.
Product | Sustainable Programs and VOC Regulated Areas Reference Guide |
Sustainability | |
SHERWIN-WILLIAMS 2021 SUSTAINABILITY REPORT | Building on the Good | 70 |
Appendix
The Sherwin-Williams Company - 2021 Investor ESG Summary, continued
TOPIC | METRIC | 2019 | 2020 | 2021 | |
Supply Chain | |||||
Supply Chain | Supplier Guidelines/Code of Conduct | Supplier Code of Conduct | |||
Governance | |||||
Ethics | Business Ethics Policy | Code of Conduct | |||
Size of the Board | 11 | 10 | 11 | ||
Independent Directors on Board - # (%) | 10 (91%) | 9 (90%) | 10 (91%) | ||
Independent Lead Director | Yes | Yes | Yes | ||
Gender Diversity - # (%) | 3 (27%) | 3 (30%) | 3 (27%) | ||
Racial/Ethnic Diversity - # (%) | 2 (20%) | 2 (20%) | 4 (36%) | ||
Board Average Age | 63.1 | 62.2 | 62.1 | ||
Board Average Tenure | 7 | 7.2 | 6.2 | ||
Mandatory Retirement Age | 72 | 72 | 72 | ||
Board Meetings Held | 6 | 7 | 6 | ||
Board of Directors | All Directors Attended ≥ 75% of Meetings | Yes | Yes | Yes | |
Independent Members on the Audit Committee - # (%) | 5 (100%) | 4 (100%) | 6 (100%) | ||
Audit Committee Meetings | 6 | 8 | 5 | ||
Independent Members on the Compensation & Management Development | 5 (100%) | 5 (100%) | 4 (100%) | ||
Committee - # (%) | |||||
Compensation & Management Development Committee Meetings | 5 | 4 | 4 | ||
Independent Members on the Nominating & Corporate Governance | 4 (100%) | 4 (100%) | 4 (100%) | ||
Committee - # (%) | |||||
Nominating & Corporate Governance Committee Meetings | 4 | 2 | 4 | ||
Annual Board and Committee Self-Assessments | Yes | Yes | Yes | ||
Orientation Program for New Directors | Yes | Yes | Yes | ||
Equal Voting Rights (One Vote per Share) | Yes | Yes | Yes | ||
Annual Say on Pay Voting Support | 96.9% | 96.0% | 93.5% | ||
Shares Outstanding as of December 31 | 276,434,517 | 268,676,631 | 261,143,805 | ||
Equity Reserved as % of Shares Outstanding | 9.0% | 7.8% | 7.3% | ||
Shareholder | Options Granted as % of Shares Outstanding | 0.54% | 0.51% | 0.37% | |
Fair Price Provision | Yes | Yes | Yes | ||
Practices2 | |||||
Mandatory Bid Provision | No | No | No | ||
Majority Voting Standard | Yes | Yes | Yes | ||
Classified Board | No | No | No | ||
Proxy Access3 | Yes | Yes | Yes | ||
Shareholder Rights Plan | No | No | No | ||
Public Policy | Political Action Committee | No | No | No | |
and Political | Public Policy and Political Engagement Statement | Code of Conduct | |||
Engagement |
- Historical share and per share information has been retroactively adjusted to reflect the Company's three-for-one stock split effected March 31, 2021.
- The Company's Regulations provide proxy access rights to 3 year, 3% shareholders for up to 20% of the board.
SHERWIN-WILLIAMS 2021 SUSTAINABILITY REPORT | Building on the Good | 71 |
Appendix
The Sherwin-Williams Company - 2021 Investor ESG Summary, continued
TOPIC | METRIC | 2019 | 2020 | 2021 |
Governance - continued | ||||
Total Compensation Paid to Named Executives | $30,706,224 | $31,713,250 | $33,937,998 | |
Total Salaries Paid to Named Executives | $4,016,760 | $4,109,263 | $4,652,263 | |
All Other Compensation Paid to Named Executives | $26,460,664 | $27,603,987 | $29,285,735 | |
Total Compensation Paid to CEO | $14,854,731 | $15,323,284 | $15,843,760 | |
Total Salary and Bonus Paid to CEO | $1,333,000 | $1,339,000 | $1,368,231 | |
Compensation | All Other Compensation Paid to CEO | $13,521,731 | $13,984,284 | $14,475,529 |
Executive Compensation Policies and Practices | Compensation Discussion and Analysis (CD&A) - Page 28 | |||
Significant Stock Ownership Guidelines4 | Yes | Yes | Yes | |
Double-Trigger Equity Vesting Upon CIC | Yes | Yes | Yes | |
Anti-Hedging and Anti-Pledging Policy | Yes | Yes | Yes | |
Clawback Provision for Executive Compensation | Yes | Yes | Yes | |
Total Executives | 11 | 11 | 11 as of | |
12/31/2021 | ||||
Female Executives - # (%) | 2 (18%) | 2 (18%) | 3 (27%) | |
Sustainability Disclosures Independently Verified/Assured | No | No | No | |
Governance | UN Global Compact Signatory | No | No | No |
CSR/Sustainability Committee Oversight | Yes | Yes | Yes | |
External Auditor | Ernst & Young LLP | Ernst & Young LLP | Ernst & Young LLP | |
Audit & Audit-Related Fees Paid to Auditor | $7,280,000 | $6,276,000 | $6,171,000 | |
Non-Audit Fees Paid to Auditor | $2,286,000 | $949,000 | $1,023,000 | |
Total Auditor Fees | $9,566,000 | $7,225,000 | $7,194,000 |
4 Each independent director is required to own shares of common stock equal in value to a minimum of 7x the annual board cash retainer and hold all shares of common stock received upon the vesting of restricted stock units until the minimum share ownership requirement is met. Each executive is required to own shares of common stock equal in value to a multiple of his/her base salary, with 6x for the CEO, 4x for the COO and 3x for other executives.
SHERWIN-WILLIAMS 2021 SUSTAINABILITY REPORT | Building on the Good | 72 |
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Sherwin Williams Co. published this content on 14 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 June 2022 12:22:04 UTC.