We are committed to identifying opportunities to utilize renewable energy to lower our reliance on fossil fuels. Our goal is to increase electricity from renewable sources to 50% of total electricity usage by 2030.

In 2023, we completed our first on-site solar energy installation in North America at our Orlando, Florida, manufacturing site. We installed 19 solar arrays on the roof of the facility, plus three arrays atop a new carport that will keep employees and their vehicles cool on hot days. The installation provides more renewable energy than required to operate the facility’s recent expansion, producing approximately 1,800 megawatt-hours (MWh) annually and reducing carbon emissions by 680 metric tons carbon dioxide equivalent (MTCO 2 e). It will supply 22% of the site’s electricity needs. The project has received the U.S. Department of Energy’s Better Buildings Better Project Award, which recognizes innovative and industry-leading accomplishments for implementing decarbonization and other environmental projects.

Since constructing the Orlando project, we have executed contracts for additional on-site installations through a power purchase agreement at sites in Illinois and California, which will become fully operational over the next two years. We expect these planned projects — 11 in total — to reduce emissions by more than 8,000 MTCO 2 e annually.

Sherwin-Williams is further investing in renewable energy through a virtual power purchase agreement with a leading renewable energy developer for the Century Oak wind power installation in Texas that will enable us to acquire up to 320,000 MWh of renewable energy credits.

Across more than 5,000 paint stores and automotive branches, we are evaluating ways to operate more efficiently. For example, every Sherwin-Williams retail paint store has a color display where customers can compare and select paint samples. During 2023, we upgraded the lighting in these areas from fluorescent lights to LED. The conversion not only reduces annual electricity use by approximately 6,000 MWh across our store footprint — it also helps our colors look their best. Other in-store initiatives include pilots of advanced control systems for HVAC equipment, motion sensors to reduce energy use and consideration of rooftop solar opportunities.

Sherwin-Williams owns or operates a fleet of more than 11,000 vehicles, including:

• Semi-trailer trucks that deliver product from factories and distribution centers to customers and paint stores;
• Local delivery fleets that deliver smaller quantities of product in denser locations;
• Yard trucks that travel within our distribution facilities; and
• A fleet of passenger and commercial vehicles that our sales representatives and managers use to travel within their field areas.

Over the past three years, the size of the sales and local delivery fleet has increased by 5.6%, while increasing our average miles per gallon by 7.6%. We are exploring opportunities to reduce emissions within each segment as we make fleet upgrades. For example, we are introducing more hybrids and piloting electric vehicles (EVs) within our passenger and small commercial fleet. Many of these vehicles operate in the state of California, which has some of the world’s most ambitious regulations regarding vehicle tailpipe emissions. We have also installed EV charging stations at a growing number of paint stores.

While pilots with EVs to date have been instructive, we are facing similar challenges to many other fleet operators when it comes to full electrification, including lack of adequate public charging infrastructure and battery life. An EV’s payload can significantly shorten battery range, so these challenges are front-of-mind as we deliver product across long distances.

As vehicles get larger, electrification becomes even more complex. Until batteries become a more viable option for large semi-trucks, we are investing in emissions reducing practices such as more fuel-efficient engines, improved idling technology, air flanges to reduce drag, and smart loading and routing solutions.

As with many other manufacturers, Scope 3 is a larger contributor to our carbon footprint than Scopes 1 and 2. Within Scope 3 emissions, Category 1 - Total Purchased Goods and Services is the largest percentage.