WHEREAS: The use of services derived from or sale of goods produced through correctional industries (prison labor) can pose financial and operational risks including supply chain disruption, litigation, and reputational damage; 

Prison labor (both voluntary and involuntary) is often deployed in a manner that involves worker mistreatment. Although companies benefit from low overhead expenses when incarcerated people work for the company or its suppliers, companies have experienced public backlash, boycotts, and long-term brand name and reputation harm from a connection to prison labor;

While prison labor in the United States is legal, it has been described as “ill-regulated and ill-understood. It is also becoming ever more central to America’s massive criminal justice apparatus” and “at its heart coercive”;

Incarcerated workers are involved in producing products such as furniture, circuit boards, packaging materials, and electronic equipment; they also provide services such as call center or shipping services. Correctional industries workers may be paid as little as $0.33-$1.41 per hour for work that sometimes occurs in unsafe or unhealthy conditions. In some circumstances, people may be coerced into working by threat of punishment for declining work;

While our Company publishes policies stating that it prohibits forced labor as well as “involuntary or exploitative prison labor,” and reports on its response process for issues of noncompliance at certain manufacturers, it is the understanding of the Proponent that Home Depot does not routinely verify compliance with this policy for suppliers in the United States;

In 2017, a lawsuit was filed against a U.S. supplier alleging that dock floats sold by Home Depot and other retailers were made using “unpaid workers from a local drug rehabilitation program.” Given that it appears that Home Depot does not require third party audits of products made in the United States, this example illustrates the need for a full review of our company’s supply chain for exposure to this risk;

Careful review of our supply chain for voluntary and involuntary prison labor would help ensure that Home Depot suppliers are consistent with Company policies and minimize risks to Home Depot’s reputation and shareholder value.

RESOLVED: Shareholders of The Home Depot urge the Board of Directors to produce an annual report to shareholders on prison labor, at reasonable cost and omitting proprietary information, summarizing the extent of known usage of prison labor in the company’s supply chain.

SUPPORTING STATEMENT: Shareholders recommend that the report, at the board and management's discretion:

• Provide annual quantitative metrics regarding the number of supplier audits completed by the Company or third party auditors that evaluated whether prison labor is present in the supply chain, as well as the summary of those audits’ results.

• Evaluate any risks to finances, operations, and reputation related to prison labor in the Home Depot supply chain including from undetected uses of prison labor in the supply chain.