RESOLVED: Shareholders request that HD Supply Holdings senior management, with oversight from the Board of Directors, issue a report assessing the feasibility of adopting quantitative, company-wide goals for increasing the company’s use of renewable energy, energy efficiency, and any other measures deemed prudent by company management to substantially increase the scope and ambition of the company’s initiatives to address climate change. The report should be issued by November 30, 2020 at reasonable cost and omit proprietary information.

Supporting Statement: By assessing the feasibility of setting goals to increase renewable energy usage, improve energy efficiency, electrify delivery vehicles, and adopt other such measures the company deems feasible, our company could prepare to take practical steps to reduce our emissions of greenhouse gases that contribute to climate change.

The Intergovernmental Panel on Climate Change estimates that a 45% reduction in anthropogenic GHG emissions globally is needed (from 2010 levels) by 2030 to avoid the worst impacts of climate change (Global Warming of 1.5 degrees C, IPCC, Oct 2018).

Assessing the feasibility of clean energy goals and other GHG-reducing measures could serve as a practical step towards aligning our business operations with global efforts to limit climate change. As a supplier that uses substantial amounts of electricity, this could help insulate our company from regulatory uncertainty and position HD Supply as contributing to climate solutions and produce reputational benefits.

Fortuitously, many major companies are finding that GHG-reducing measures are not only impactful, but also practical, and cost-effective. As costs have fallen, carbon-free, renewable energy sources like wind and solar have become, in many markets, the least expensive source of electricity. According to the 2019 Sustainable Energy in America Factbook (Bloomberg) "at $27-61/MWh without accounting for tax credits, onshore wind is cheaper than new gas-fired plants for bulk electricity generation in most areas of the U.S." Likewise, Lawrence Berkeley National Laboratory reported in 2018 that commercial and industrial customers paid just $28 per MWh saved for investments to improve energy efficiency, about one-quarter the average cost of buying electricity from the grid.

Unfortunately, HD Supply’ public communications are lacking in specific, measurable plans to adopt renewable energy or increase energy efficiency, giving investors little information about the company’s future plans in this area. As such, the company lags behind many industry peers. Amazon, Walmart and Target are all among the over 200 companies who have committed to sourcing 100% renewable electricity, and Home Depot and Lowe’s have both signed large scale renewable energy deals to further their ambitious greenhouse gas reduction goals.

Accordingly, we urge HD Supply to emulate the best climate risk mitigation practices among its peers and to study the feasibility of adopting long term clean energy sourcing goals.