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GLOBAL REPORTING INITIATIVE (GRI) INDEX


General Disclosures

GRI-102-1            Name of the organization

The Sherwin-Williams Company

 

GRI-102-2            Activities, Brands, Products and Services

Founded in 1866, The Sherwin-Williams Company is a global leader in the manufacture, development, distribution and sale of paint, coatings and related products to professional, industrial, commercial and retail customers. Sherwin-Williams manufactures products under well-known brands such as Sherwin-Williams®, Valspar®, HGTV HOME® by Sherwin-Williams, Dutch Boy®, Krylon®, Minwax®, Thompson’s® WaterSeal®, Cabot® and many more. With global headquarters in Cleveland, Ohio, Sherwin-Williams® branded products are sold exclusively through a chain of more than 5,000 company-operated stores and facilities, while the company’s other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers and industrial distributors. The Sherwin-Williams Performance Coatings Group supplies a broad range of highly-engineered solutions for the construction, industrial, packaging and transportation markets in more than 120 countries around the world. For more information, visit our Company website, www.sherwin-williams.com, and our Investor Relations website, investors.sherwin.com.

 

GRI-102-3            Location of organization's headquarters

Sherwin-Williams’ global headquarters is located in Cleveland, Ohio, USA.

 

GRI-102-4            Location of operations

At December 31, 2021, Sherwin-Williams had operations in over 120 countries worldwide. Included in this total are company-operated stores, branches and manufacturing and distribution facilities. 

For additional information regarding Sherwin-Williams’ global operations, please refer to pages 6-7 and Part I, Items 1 and 2 of Sherwin-Williams’ Annual Report for the fiscal year ended December 31, 2021, available at investors.sherwin.com.

 

GRI-102-5            Ownership and legal form

Sherwin-Williams is an Ohio corporation. It is a publicly-traded company, with shares traded on the New York Stock Exchange (NYSE: SHW).

 

GRI-102-6            Markets served

Sherwin-Williams has three reportable operating segments – The Americas Group, Consumer Brands Group and Performance Coatings Group. Each of the reportable segments are described in more detail at www.sherwin.com and on pages 6 – 15 and in Part I, Item 1 of Sherwin-Williams’ Annual Report for the fiscal year ended December 31, 2021, available at investors.sherwin.com.

 

GRI-102-7            Scale of the Organization

For information regarding the scale of the organization, please refer to Sherwin-Williams’ Annual Report for the fiscal year ended December 31, 2021 and other presentation materials and reports, all available at investors.sherwin.com. For beneficial ownership information for certain of our largest shareholders, please refer to Sherwin-Williams’ 2022 Proxy Statement, available at investors.sherwin.com.  

 

GRI-102-8             Information on employees and other workers

Please see our Investor ESG Summary and Annual Report for information on our employees.

 

Disclosure 102-9                    Supply chain

Focused on continuous improvement, Sherwin-Williams’ Global Supply Chain drives the success of all business units by managing research and development, global procurement, manufacturing, distribution and transportation. For additional information about Sherwin-Williams’ Global Supply Chain, please refer to Sherwin-Williams’ Annual Report for the fiscal year ended December 31, 2021, as well as the presentation materials for purposes of our annual Financial Community Presentations, available at investors.sherwin.com.

 

Disclosure102-10          Significant changes to the organization and its supply chain

For information regarding significant changes to the organization and its global supply chain during 2021, if any, please refer to Sherwin-Williams’ Annual Report for the fiscal year ended December 31, 2021, available at investors.sherwin.com.

 

Disclosure 102-11              Precautionary Principle or approach

At Sherwin-Williams, demonstrating environmental responsibility across our global operations is fundamental to our business. We are committed to decreasing our environmental footprint by reducing emissions and maintaining responsible consumption and production practices.  For more information regarding Sherwin-Williams’ strategies, policies, practices and governance relating to environmental, health and safety, product stewardship, sustainability, corporate social responsibility, inclusion, diversity and equity, employee engagement, and related governance topics relevant to the Company (collectively, “ESG”), please refer to our 2021 Sustainability Report, TCFD Report, Global Environmental, Health and Safety Policy, and other materials available at www.sherwin.com. 

 

Disclosure 102-12              External initiatives

Please see page 62 of our 2021 Sustainability Report for a list of many of the government agencies, industry organizations and non-governmental organizations with which we engage.

 

Disclosure 102-13             Membership of associations

Sherwin-Williams maintains routine business membership in numerous trade and business associations.  Many of these are listed on page 62 of our 2021 Sustainability Report.

Disclosure 102-14 Statement from senior decision-maker

At Sherwin-Williams, corporate responsibility and sustainability are central to how the Company does business. Our Chairman and CEO, John Morikis, discusses Sherwin-Williams’ commitment to our employees, customers, communities, shareholders and other stakeholders through our continued efforts to develop and implement comprehensive policies, goals and programs in pursuit of our ESG objectives on page 2 of our Sustainability Report. For more information on Sherwin-Williams’ Culture of Excellence and ESG initiatives, please refer to our 2021 Sustainability Report.

 

Disclosure 102-15 Key impacts, risks and opportunities

We describe the risks that could materially and adversely affect our business, results of operations, cash flow, liquidity or financial condition in Item 1A of Sherwin-Williams Annual Report on Form 10-K for the fiscal year ended December 31, 2021, available at investors.sherwin.com. Please also refer to information regarding our most recently completed comprehensive materiality assessment and our governance structure on page 12 of Sherwin-Williams' 2021 Sustainability Report, available at www.sherwin.com.

 

We have also published disclosures that align with the Task Force on Climate-related Financial Disclosures (TCFD) framework. Our TCFD Report reflects our current understanding of our risks and opportunities related to climate change. We value the information we have gleaned from the TCFD analysis and its influence in further developing our climate strategy and initiatives.

Disclosure 102-16 Values, principles, standards and norms of behavior

At The Sherwin Williams Company, we fulfill our purpose through the development, manufacture, distribution and sale of innovative paint and coatings products, striving to deliver benefits for all major stakeholders. Employees participate in an inclusive and diverse environment that provides extensive opportunities for professional development and personal wealth-building. Customers benefit from a solutions-driven approach emphasizing application-specific expertise, industry-leading innovation, value-added service and differentiated distribution. Communities where we operate prosper through job creation, direct financial support, in-kind gifts, employee volunteerism and civic engagement. Shareholders can expect a deep and experienced management team focused on long-term value creation through sales growth, return on sales, return on net assets employed and cash generation. Sustainability is embedded within our corporate purpose, with a focus on our environmental footprint, our product blueprint and our social imprint. Our integrated approach to the stakeholders we serve seeks to inspire and improve society as a whole.

 

Sherwin-Williams’ Code of Conduct is designed to help employees understand good judgment and ethical behavior and outlines how employees can align their actions with Sherwin-Williams’ Guiding Values. It introduces a number of important laws and policies that apply to our business and our business activities, including Sherwin-Williams’ policies with respect to: conflicts of interest; antitrust and competition; human trafficking; international trade; anti-bribery and corruption; bribes, kickbacks and loans; and lobbying and political contributions and activities on behalf of, or for the benefit of, Sherwin-Williams. The Code of Conduct applies to all directors, officers and employees of Sherwin‑Williams and all its subsidiaries, wherever located worldwide.

 

In addition to the ethical obligations set forth in Sherwin-Williams’ Code of Conduct and other company policies, our Chief Executive Officer, Chief Financial Officer and other Senior Financial Management are subject to Sherwin-Williams Code of Ethics for Senior Financial Management. Through this Code of Ethics, we expect these individuals to adhere to the highest standards of honesty, integrity, objectivity and independence, and comply with all applicable laws, governmental regulations, company policies, rules and regulations, ethical requirements and professional standards.

 

Sherwin-Williams’ Supplier Code of Conduct establishes the requirements for our business partners to operate in a manner that is consistent with our company’s values and is applicable to all suppliers (and suppliers’ sub-contractors) globally. It contains the principal requirements we expect our suppliers to adhere to, to become and remain a supplier to Sherwin-Williams.

 

For additional information regarding Sherwin-Williams’ Guiding Values, Culture of Excellence, Corporate Purpose and related information, please refer to our Code of Conduct, Supplier Code of Conduct, 2021 Sustainability Report and 2022 Proxy Statement, available at www.sherwin.com.

 

 

Disclosure 102-17 Mechanisms for advice and concerns about ethics

Pursuant to Sherwin-Williams Code of Conduct, we encourage employees to report potential policy or ethics violations and any type of harassment, threats or safety concerns to management or the Loss Prevention team, or anonymously using our Ethics Point Reporting System. Ethics Point is an independent third party that administers our global ethics helpline and web portal.

 

Please refer to Sherwin-Williams’ Code of Conduct, available at investors.sherwin.com, for additional information regarding our commitment to ensuring our work-related activities reflect standards of honesty, loyalty, concern for others and accountability.

Disclosure 102-18 Governance structure

Sherwin-Williams’ governance structure, including with respect to environmental, health and safety, sustainability, corporate social responsibility and other ESG strategies, policies and practices, is described on pages 12-17 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com. Additional information about our Board of Directors, Board Committees and governance structure and practices may be found in our Corporate Governance Guidelines, Committee Charters, 2022 Proxy Statement and other materials, available at investors.sherwin.com.


Disclosure 102-19 Delegating authority

Sherwin-Williams’ governance structure, including with respect to environmental, health and safety, sustainability, corporate social responsibility and other ESG strategies, policies and practices, is described on pages 12-17 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.

 

Disclosure 102-20 Executive-level responsibility for economic, environmental and social topics

Sherwin-Williams’ governance structure, including with respect to environmental, health and safety, sustainability, corporate social responsibility and other ESG strategies, policies and practices, is described on pages 12-17 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.

 

Disclosure 102-21 Consulting stakeholders on economic, environmental and social topics

Sherwin-Williams’ Board of Directors has adopted a process by which shareholders and all other interested parties may communicate with the Lead Director, the chairperson of any of the committees of the Board, or the non-management directors as a group. For additional information about this process, please refer to Sherwin-Williams’ Corporate Governance Guidelines, available at investors.sherwin.com.

 

Disclosure 102-22 Composition of the highest governance body and its committees

Information regarding Sherwin-Williams’ Board of Directors and Board Committees may be found in the Corporate Governance section of our Investor Relations website, investors.sherwin.com, and in Sherwin-Williams’ 2022 Proxy Statement.

 

Disclosure 102-23 Chair of the highest governance body

Our Corporate Governance Guidelines provide that the same person should hold the positions of Chairman and CEO, except in unusual circumstances, such as during a period of transition in the office of the CEO. The Board believes this structure provides the most efficient and effective leadership model and clear insight and direction of business strategies and plans to both the Board and management. The Board also believes we can most effectively execute our business strategies and plans if our Chairman is a member of our management team, providing unified leadership and focus.

 

Our Corporate Governance Guidelines also provide that, if the Chairman is not an independent director, the independent directors of the Board will annually elect an independent director to serve as Lead Director. The Board believes a Lead Director improves the Board’s overall performance by enhancing the efficiency of the Board’s oversight and governance responsibilities and by supporting the relationship between the Chairman and CEO and the independent directors.

 

Sherwin-Williams Corporate Governance Guidelines are available at investors.sherwin.com.

 

Disclosure 102-24 Nominating and selecting the highest governance body

Information regarding Sherwin-Williams’ Board of Directors, Board Committees and the processes for identifying, evaluating and recommending potential director candidates may be found in the Corporate Governance section of our Investor Relations website, investors.sherwin.com, and in Sherwin-Williams’ 2022 Proxy Statement.

 

Disclosure 102-25 Conflicts of interest

As part of Sherwin-Williams’ Code of Conduct, directors and employees are expected to make business decisions and take actions based upon the best interests of Sherwin-Williams and not based upon personal relationships or benefits. Sherwin-Williams Code of Conduct may be found at investors.sherwin.com. Information regarding the Board of Directors’ process for identifying and evaluating conflicts of interest, including in connection with Sherwin-Williams’ Related Person Transactions Policy, please refer to Sherwin-Williams’ 2022 Proxy Statement available at investors.sherwin.com.

 

Disclosure 102-26 Role of highest governance body in setting purpose, values and strategy

Information regarding Sherwin-Williams’ Board of Directors and Board Committees may be found in the Corporate Governance section of our Investor Relations website, investors.sherwin.com, and in Sherwin-Williams’ 2022 Proxy Statement.

 

Disclosure 102-27 Collective knowledge of highest governance body

Biographical information regarding each member of our Board of Directors, as well as the particular experiences, qualifications, attributes and skills that led the Board to conclude each director should serve on the Board may be found in Sherwin-Williams’ 2022 Proxy Statement, available at investors.sherwin.com.

 

Disclosure 102-28 Evaluating the highest governance body’s performance

Sherwin-Williams’ Board of Directors and each Board Committee complete an annual self-assessment to assist in determining whether the Board and its committees are functioning effectively. For additional information regarding the annual self-assessment process, please refer to Sherwin-Williams’ 2022 Proxy Statement, available at investors.sherwin.com.

 

Disclosure 102-29 Identifying and managing economic, environmental and social impacts

Sherwin-Williams remains committed to continuous improvement, including addressing issues that we as a company — and our stakeholders — believe are important to our vitality and success. Information regarding Sherwin-Williams’ most recently completed comprehensive materiality assessment and our governance structure may be found on pages 12-17 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.   

 

Disclosure 102-30 Effectiveness of risk management processes

Information regarding Sherwin-Williams’ governance structure, the Board of Directors’ responsibility for the oversight of risk management, and the Board  and each Board Committees’ oversight of specific risk areas to assist the Board with its overall risk management oversight responsibility may be found on pages 12-17 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com, and in Sherwin-Williams’ 2022 Proxy Statement, available at investors.sherwin.com.

 

Disclosure 102-31 Review of economic, environmental and social topics

Information regarding Sherwin-Williams’ governance structure may be found on pages 12-17 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com. Additional information regarding the Board of Directors’ and each Board Committee’s oversight of various ESG-related and other risks may be found in Sherwin-Williams’ 2022 Proxy Statement, available at investors.sherwin.com

 

Disclosure 102-32 Highest governance body’s role in sustainability reporting

While our management and their teams are responsible for assessing and managing the Company’s business, day-to-day affairs and exposure to various risks, our Board of Directors has responsibility for the oversight of management and various risks. Our Board Committees assist with this oversight responsibility by reviewing specific risk areas, including certain ESG risks, and making regular reports to the Board.

 

The Company’s ESG Steering Committee (formerly, the Sustainability Steering Committee) supports alignment across the organization with respect to the Company’s ongoing commitment to ESG topics relevant to the Company, and oversees the work of the Company’s ESG Council (formerly, the Sustainability Council). The ESG Steering Committee is comprised of members of senior management and other senior leaders across the organization and provide periodic updates to the Board and its Committees.

 

Additional information regarding Sherwin-Williams’ governance structure may be found on pages 12-17 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.

 

Disclosure 102-35 Remuneration policies

For information regarding Sherwin-Williams’ executive and director compensation programs, arrangements, policies and practices, please refer to Sherwin-Williams’ 2022 Proxy Statement, available at investors.sherwin.com.

Disclosure 102-40 List of stakeholder groups

1.       Our Employees

2.       Our Customers

3.       Our Shareholders

4.       Our Communities in which we live and work

 

In addition to the above key stakeholders named in our Corporate Purpose Statement, we periodically engage the following stakeholders in connection to the development of the Company’s ESG strategies and initiatives:

5.       Our Suppliers

6.       Government Agencies & Regulators

7.       Industry & Other Non-Governmental Organizations 

 

Disclosure 102-41 Collective bargaining agreements

The Sherwin-Williams Company and its subsidiaries (Sherwin-Williams) believe in the fair, consistent and equitable treatment of their employees in relation to working conditions, wages, benefits, policies and procedures. To this end, Sherwin-Williams’s policies and programs are designed to respond to the needs of its employees in a manner that provides a safe, professional, efficient and rewarding workplace.

 

Disclosure 102-42 Identifying and selecting stakeholders

Sherwin-Williams has been successfully engaging its stakeholders since its inception in 1866.  This engagement is embedded in our seven Guiding Values: Integrity, People, Service, Quality, Performance, Innovation and Growth. In addition to the key stakeholders identified by our Board in our Corporate Purpose Statement, all of our stakeholders were confirmed during Sherwin-Williams’ most recently completed comprehensive materiality assessment and we continue to engage with all our stakeholder groups in the development of ESG strategies and initiatives. For more information about Sherwin-Williams’ most recently completed comprehensive materiality assessment, please refer to page 8 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com. 

 

Disclosure 102-43 Approach to stakeholder engagement

Stakeholder engagement is a continuous process for Sherwin-Williams. Our 2021 Sustainability Report highlights some of the ways in which we engaged our key stakeholders and others during 2021, as well as stakeholder engagement in connection with Sherwin-Williams’ most recently completed comprehensive materiality assessment. For additional information, please refer to page 8 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.

 

Disclosure 102-44 Key topics and concerns raised

Information regarding Sherwin-Williams’ engagement with certain key stakeholders and others, including in connection with Sherwin-Williams’ most recently completed comprehensive materiality assessment may be found on page 8 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.

Disclosure 102-45 Entities included in the consolidated financial statements

Please refer to Sherwin-Williams’ Annual Report for the fiscal year ended December 31, 2021 and documents filed by Sherwin-Williams from time to time with the Securities and Exchange Commission.

 

Disclosure 102-46 Defining report content and topic boundaries

Sherwin-Williams’ most recently completed comprehensive materiality assessment influenced the content of this GRI Disclosure, including the topics addressed herein, and in our 2021 Sustainability Report. For more information about the materiality assessment, please refer to page 8 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.

 

The 2021 Sustainability Report and associated GRI-based metrics summary contain disclosures aligned with the GRI Sustainability Reporting Guidelines and our sector SASB (Sustainable Accounting Standards Board) topics.

 

Disclosure 102-47 List of material topics

Information regarding Sherwin-Williams’ most recently completed comprehensive materiality assessment may be found on page 8 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.

 

Disclosure 102-48 Restatements of information

There were no restatements of information in this version of the disclosure.

 

Disclosure 102-49 Changes in reporting

There have been no significant changes to the topics covered by the Company’s GRI Disclosure since last year’s disclosure.

 

Disclosure 102-50 Reporting period

This disclosure and its content cover the 2021 calendar year, except as otherwise noted.

 

Disclosure 102-51 Date of most recent report

This disclosure was published in August 2022 and includes data from the 2021 calendar year.

 

Disclosure 102-52 Reporting cycle

This report is revised annually.

 

Disclosure 102-53 Contact point for questions regarding the report

Please contact sustainability@sherwin.com with any questions or concerns.

 

Disclosure 102-54 Claims of reporting in accordance with the GRI Standards

This disclosure has been prepared in accordance with the GRI Standards: Core option

 

Disclosure 102-55 GRI content index

The GRI content outline is available at this link.

 

Disclosure 102-56 External assurance

This disclosure has not been externally validated.


Material Topics

Disclosure 103-1 Explanation of the material topic and its boundary

  • Based on the results of our most recently completed comprehensive materiality assessment, our top tier topics of focus include:
  • Product Stewardship
  • Talent Acquisition and Employee Engagement
  • Climate and Carbon
  • Occupational Health and Safety
  • Life Cycle Assessment

The above top-tier focus areas have since been incorporated into our sustainability framework. In 2021, we set ambitious, meaningful goals and aspirations and enhanced our strategy with a strong focus on three pillars: Environmental Footprint, Product Blueprint and Social Imprint. These pillars sit on a foundation of Governance and Ethics, designed to ensure broad engagement and appropriate oversight for sustainability and ESG initiatives throughout the Company.

 

As part of our Product Blueprint pillar, Product Stewardship guides the phases of our product development and is rooted in continuous improvement. It prioritizes recognizing and addressing the potential impacts of our products throughout their life cycle, from design and development through use and disposal and steps in between. We assess ingredients in a product formulation in terms of human health, product safety, environmental impact, and physical and chemical properties.

 

Our legacy of product stewardship is the foundation that enables us to pursue our Sustainability by Design program as part of our Product Blueprint pillar. Sustainability by Design is a signature effort in our five-stage Stage-Gate process to formally incorporate sustainability attributes such as life cycle thinking within our innovation and product development processes.

Launched in 2021, Sherwin-Williams has implemented our Sustainability by Design program across the enterprise, serving as our proactive, foundational process to aid the growth of our “sustainably advantaged products” portfolio. “Sustainably Advantaged Products” are products that achieve a level of third-party green chemistry, ecolabel or similar recognition, or can be shown to be more sustainable than what is currently the norm for the industry.

 

For additional information about current and future initiatives in this area, please see GRI Issue Disclosures 301 and 416.

 

Sherwin-Williams also monitors relevant information sources, including media outlets, technical newsletters, and the scientific literature and updates our products to best support the needs of our customers.  These efforts permit the Company to proactively consider proposed legislation, health and environmental information, and market trends regarding management and use of chemicals.

 

Please review the product blueprint section of our 2021 Sustainability Report and Investor ESG Summary for additional details.

 

For additional information regarding the materiality assessment, please refer to page 8 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.

 

Disclosure 103-2 The management approach and its components

For information regarding Sherwin-Williams’ governance structure, including the Company’s ESG Steering Committee and ESG Council, please refer to pages 12-17 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.

 

Disclosure 103-3 Evaluation of the management approach

For information regarding Sherwin-Williams’ governance structure, including the Company’s ESG Steering Committee and ESG Council, please refer to pages 12-17 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.

Disclosure 103-1 Explanation of the material topic and its boundary

 

Based on the results of our most recent materiality assessment, our top tier areas of focus included:

  • Product Stewardship
  • Talent Acquisition and Employee Engagement
  • Climate and Carbon
  • Occupational Health and Safety
  • Life Cycle Assessment

The above top-tier focus areas have since been incorporated into our sustainability framework. In 2021, we set ambitious, meaningful goals and aspirations and enhanced our strategy with a strong focus on three pillars: Environmental Footprint, Product Blueprint and Social Imprint. These pillars sit on a foundation of Governance and Ethics, designed to ensure broad engagement and appropriate oversight for sustainability and ESG initiatives throughout the Company.

 

As part of our Social Imprint pillar, Talent Acquisition and Employee Engagement, includes areas such as training, retention, and inclusion, diversity and equity (ID&E). This topic area is specific to our employees. For additional information about current and future initiatives in this area, please see GRI Issue Disclosures 401 and 404.

 

Throughout 2021, we challenged ourselves, as individuals and as a global enterprise, to advance our ID&E culture. As we continue our ID&E journey, we are striving to achieve the following goals and aspirations.

 

  • Increase women in management roles to 30% by 2025, compared with a 26% baseline in 2020
  • Increase underrepresented racial/ethnic groups in U.S. management roles to 30% by 2025, compared with a 26% baseline in 2020
  • Achieve and improve upon a favorable Sherwin-Williams Inclusion Index score, based on results of our global employee engagement survey
  • Foster economic inclusion for underrepresented suppliers
  •  

For additional information and progress on these goals and aspirations, please review our 2021 Sustainability Report and Investor ESG Summary.

For additional information regarding the materiality assessment, please refer to page 8 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.

 

Disclosure 103-2 The management approach and its components

For information regarding Sherwin-Williams’ governance structure, including the Company’s ESG Steering Committee and ESG Council, please refer to pages 12-17 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.

 

Disclosure 103-3 Evaluation of the management approach

For information regarding Sherwin-Williams’ governance structure, including with respect to the Company’s ESG Steering Committee and ESG Council, please refer to page 12-17 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.

Disclosure 103-1 Explanation of the material topic and its boundary

Based on the results of our most recent materiality assessment, our top tier areas of focus included:

  • Product Stewardship
  • Talent Acquisition and Employee Engagement
  • Climate and Carbon
  • Occupational Health and Safety
  • Life Cycle Assessment

 

The above top-tier focus areas have since been incorporated into our sustainability framework. In 2021, we set ambitious, meaningful goals and aspirations and enhanced our strategy with a strong focus on three pillars: Environmental Footprint, Product Blueprint and Social Imprint. These pillars sit on a foundation of Governance and Ethics, designed to ensure broad engagement and appropriate oversight for sustainability and ESG initiatives throughout the Company.

 

As part of our Environmental Footprint pillar, Climate and Carbon includes areas such as energy consumption, renewable energy, carbon and other air emissions, recycling and waste.  This topic area is specific to the impact of our facilities and/or products.  For additional information about current and future initiatives in this area, please see our 2021 Sustainability Report and GRI Issue Disclosures 302, 303, 305, and 306.

 

Rolled out in early 2021 and benchmarked against a 2019 baseline, the following goals build on our past progress and demonstrate a significant evolution in our sustainability strategy and approach. We are committed to the following goals for 2030:

 

  • Reduce absolute Scope 1 and 2 greenhouse gas emissions by 30%
  • Increase electricity from renewable energy sources to 50% of total electricity usage
  • Increase operational energy efficiency by 20%
  • Reduce waste disposal intensity by 25%

 

For additional information and progress on these targets and goals, please review our 2021 Sustainability Report and Investor ESG Summary.

 

For additional information regarding the materiality assessment, please refer to page 8 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.

 

Disclosure 103-2 The management approach and its components

For information regarding Sherwin-Williams’ governance structure, including the Company’s ESG Steering Committee and ESG Council, please refer to pages 12-17 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.

 

Disclosure 103-3 Evaluation of the management approach

For information regarding Sherwin-Williams’ governance structure, including the Company’s ESG Steering Committee and ESG Council, please refer to pages 12-17 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.

Disclosure 103-1 Explanation of the material topic and its boundary

Based on the results of our most recent materiality assessment, our top tier areas of focus included:

 

  • Product Stewardship
  • Talent Acquisition and Employee Engagement
  • Climate and Carbon
  • Occupational Health and Safety
  • Life Cycle Assessment

 

The above top-tier focus areas have since been incorporated into our sustainability framework. In 2021, we set ambitious, meaningful goals and aspirations and enhanced our strategy with a strong focus on three pillars: Environmental Footprint, Product Blueprint and Social Imprint. These pillars sit on a foundation of Governance and Ethics, designed to ensure broad engagement and appropriate oversight for sustainability and ESG initiatives throughout the Company.

 

As part of our Social Imprint pillar, Occupational Health and Safety includes areas such as injury prevention, ergonomics, and employee safety. This topic area is specific to our employees.  For additional information about current and future initiatives in this area, please see GRI Issue Disclosure 403.

 

As we continually strive to achieve zero recordable injuries, we have set ambitious occupational health and safety goals for 2025:

 

  • Drive a continuous improvement maturity path by having all 65 global manufacturing sites advance within our four-tier blueprint to minimize disruptive fires and spills across the enterprise
  • Achieve a recordable cases rate (RCR) of 0.8, compared to 1.06 in 2020
  • Reduce the number of ergonomic injuries by implementing at least two interventions per year at each manufacturing site

 

For additional information and progress on these targets and goals, please review our 2021 Sustainability Report and Investor ESG Summary.

 

For additional information regarding the materiality assessment, please refer to page 8 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.

 

Disclosure 103-2 The management approach and its components

For information regarding Sherwin-Williams’ governance structure, including the Company’s ESG Steering Committee and ESG Council, please refer to pages 12-17 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.

 

Disclosure 103-3 Evaluation of the management approach

For information regarding Sherwin-Williams’ governance structure, including the Company’s ESG Steering Committee and ESG Council, please refer to pages 12-17 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.

Disclosure 103-1 Explanation of the material topic and its boundary

Based on the results of our most recent materiality assessment, our top tier areas of focus included:

  • Product Stewardship
  • Talent Acquisition and Employee Engagement
  • Climate and Carbon
  • Occupational Health and Safety
  • Life Cycle Assessment

 

The above top-tier focus areas have since been incorporated into our sustainability framework. In 2021, we set ambitious, meaningful goals and aspirations and enhanced our strategy with a strong focus on three pillars: Environmental Footprint, Product Blueprint and Social Imprint. These pillars sit on a foundation of Governance and Ethics, designed to ensure broad engagement and appropriate oversight for sustainability and ESG initiatives throughout the Company.

 

As part of our Product Blueprint pillar, Life Cycle Assessment (LCA) is the foundation for an expanding number of Environmental Product Declarations (EPDs) on our architectural and industrial product lines. A key component of our LCA process is life cycle thinking, during which we consider and quantify impacts throughout our value chain. This includes assessing impacts throughout the product life cycle – from raw material extraction to product disposal at end-use. For additional information about current and future initiatives in this area, please see GRI Issue Disclosure 416 and our Sustainability Report.

 

Launched in 2021, Sherwin-Williams implemented our Sustainability by Design program across the enterprise, serving as our proactive, foundational process to aid the growth of our “sustainably advantaged product” portfolio. The criteria/definition used to determine if a product was sustainably advantaged is below.

 

Sustainably Advantaged Product - a product that achieves a level of third-party green chemistry, ecolabel or similar recognition, or can be shown to be more sustainable than what is currently the norm for the industry.

 

Sustainability by Design is a signature effort in our five-stage Stage-Gate process to formally incorporate sustainability attributes such as life cycle thinking within our innovation and product 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.

 

Please review the product blueprint section of our 2021 Sustainability Report and Investor ESG Summary for additional details.

 

For additional information regarding the materiality assessment, please refer to page 8 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.

 

Disclosure 103-2 The management approach and its components

For information regarding Sherwin-Williams’ governance structure, including the Company’s ESG Steering Committee and ESG Council, please refer to pages 12-17 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.

 

Disclosure 103-3 Evaluation of the management approach

For information regarding Sherwin-Williams’ governance structure, including the Company’s ESG Steering Committee and ESG Council, please refer to pages 12-17 of Sherwin-Williams’ 2021 Sustainability Report, available at www.sherwin.com.


Economic Topics

Disclosure 201-1 Direct economic value generated and distributed

Please refer to Item 8 of Sherwin-Williams’ Annual Report on Form 10-K for the fiscal year ended December 31, 2021 for Statements of Consolidated Income, Statements of Consolidated Comprehensive Income, additional financial statements and supplementary data.

 

Disclosure 201-2 Financial implications and other risks and opportunities due to climate change

We describe the risks, including the impacts of climate change, that could materially and adversely affect our business, results of operations, cash flow, liquidity or financial condition in Item 1A of Sherwin-Williams Annual Report for the fiscal year ended December 31, 2021, available at investors.sherwin.com. Sherwin-Williams voluntarily reports to the Carbon Disclosure Project (CDP) and addresses risks and opportunities associated with climate change within the CDP. View the CDP website.

 

We have also published disclosures that align with the Task Force on Climate-related Financial Disclosures (TCFD) framework. Our TCFD Report reflects our current understanding of our risks and opportunities related to climate change. We value the information we have gleaned from the TCFD analysis and its influence in further developing our climate strategy and initiatives.

 

Disclosure 201-3 Defined benefit plan obligations and other retirement plans

Please refer to Sherwin-Williams’ Annual Report on Form 10-K for the fiscal year ended December 31, 2021 for information regarding Sherwin-Williams’ defined benefit plan obligations and other retirement plans. 

Disclosure 205-1 Operations assessed for risks related to corruption

Please see our disclosure in GRI 102-16 Values, principles, standards and norms of behavior for more information.

 

Disclosure 205-2 Communication and training about anti-corruption policies and procedures

Sherwin-Williams performs annual training for employees on the Company’s Anti-Bribery Anti-Corruption Manual.

Please see our disclosure in GRI 102-16 Values, principles, standards and norms of behavior for more information.

 

Disclosure 205-3 Confirmed incidents of corruption and actions taken

Please see our disclosure in GRI 102-16 Values, principles, standards and norms of behavior for more information.


Environmental Topics

Disclosure 301-1 Materials used by weight or volume

Given the proprietary nature of our formulations and many raw materials acquired from our suppliers, this is not a metric that Sherwin-Williams is able to disclose publicly. However, general information pertaining to our production metrics can be found in our Annual Report.

 

Disclosure 301-2 Recycled input materials used

Sherwin-Williams has a long history of reusing and recycling byproducts of our production process and incorporating excess raw materials, off-specification paint and wash water back into production as alternative raw materials in the manufacture of new batches.

 

In addition, Sherwin-Williams offers Powdura® ECO  which is a powder coating containing a significant amount of post-consumer recycled PET. Additional information about Powdura ECO is available HERE

 

Disclosure 301-3 Reclaimed products and their packaging materials

As part of our product stewardship initiatives, Sherwin-Williams supports the recycling of post-consumer paint through our participation in the PaintCare® paint recycling program. We have been involved in the PaintCare program since its inception in 2009 and have collected more than 3.5 million gallons of paint for recycling since 2018. The nonprofit program, which is currently available in 10 states and the District of Columbia, is managed by the American Coatings Association and helps keep unused and discarded paint out of residential waste streams. PaintCare attempts to reuse and recycle the leftover paint and containers before properly disposing of any remainder.

Disclosure 302-1 Energy consumption within the organization  

Sherwin-Williams has set goals and aspirations to reduce energy usage. These can be found on page 19 of the Sustainability Report.

 

Disclosure 302-2 Energy consumption outside of the organization

Please see Sherwin-Williams’ Scope 3 Carbon Disclosure Project reporting for information on energy and emissions that occur outside the organization.

 

Disclosure 302-3 Energy intensity

Sherwin-Williams has set goals and aspirations to reduce energy usage. These can be found on page 19 of the Sustainability Report.

 

Disclosure 302-4 Reduction of energy consumption

Sherwin-Williams is committed to the efficient use of energy, with a focus on reducing energy use, as well as expanding our use of renewable energy within our manufacturing facilities and fleet operations. Each year, we evaluate opportunities to improve our energy efficiency through our assessment of new technologies, the optimization of current processes and the exploration of alternative fuel solutions to achieve our goal of increasing our operational energy efficiency by 20% by 2030.

 

In 2021, Sherwin-Williams hired a leading third-party consultant to help build our energy reduction strategy and develop policies to meet our objectives. Our global energy efficiency auditing program is a foundational element of our strategy. We have also committed to routine site-specific energy audits to analyze the performance of individual Sherwin-Williams facilities and identify opportunities for improvement.

 

Please review our 2021 Sustainability Report and Investor ESG Summary for further details on our progress.

 

Sherwin-Williams has a goal for every production facility to undertake sustainability projects annually. The resulting improvements are tracked to measure our progress. Priority for our energy investments is given to the projects with the highest potential for impact.   

 

Some of our energy saving initiatives include:

 

  • Installing centrally managed and programmable HV
  • AC systems
  • Installing compressed air optimization system and air leak elimination technology
  • Adopting energy-efficient building construction specifications
  • Scheduling equipment idle and controlled shutdowns
  • Improving packaging to eliminate unnecessary weight and volume of material being shipped
  • Installing lighting replacements and controls
  • Participating as a U.S. Environmental Protection Agency (EPA)
  • SmartWay Transport Partner as a shipper/carrier
  • Participating in the U.S. Department of Energy’s Better Plants Challenge Program
  • Pursuing LEED® (Leadership in Energy and Environmental DesignTM) certification for new builds, including our headquarters building in Cleveland, and Global Research and Development Center in Brecksville, Ohio, both currently under construction
  • Upgrading fleets to higher-miles-per-gallon vehicles
  • Upgrading equipment with higher-efficiency units
  • Using hybrid and electric vehicles in the fleet
  • Utilizing sophisticated planning software to determine the most efficient distribution routes

 

 

The Carbon Disclosure Project provides more information about this specific program.

 

Disclosure 302-5 Reductions in energy requirements of products and services

We are pursuing growth opportunities by developing new products and services to further preserve existing assets and create products designed to facilitate energy savings. Innovations in coatings technology have led to coatings that require less energy to apply and cure, including:

  • Coatings that once required high-temperature bake cycles in the past can now cure at room temperatures because of innovative technology. These coatings reduce energy requirements by eliminating the need for high-temperature bake cycles.
  • The development of high-transfer-efficiency powder coatings not only reduces spray time and the energy associated with the spray application process, but also reduces product loss, which further reduces energy use and preserves natural resources.
  • Heat- and sun-reflective roof coatings and infrared-reflecting concrete coatings reduce the urban heat island effect and can reduce cooling needs in warmer climates.
  • Powder coatings and other types of coating systems that deliver high performance in just one layer rather than competing coatings that may require multiple layers, which requires more energy and material to achieve similar performance

To help us optimize our product footprint, we created our Sustainability by Design program and determined our baseline of “sustainably advantaged products.” Sustainability by Design is a signature effort in our five-stage Stage-Gate process to formally incorporate sustainability attributes such as life cycle thinking within our innovation and product development processes. This program enables us to evolve our products and processes to deliver and grow our “sustainably advantaged products” offering.

 

For more information, please visit our 2021 Sustainability Report, as well as our Product Reference Guide.

Disclosure 303-1 Interactions with water as a shared resource

As Sherwin-Williams has moved towards water-based coatings (vs. solvent-based), water is a key resource used in many of our products. This water is temporarily held in the wet coating until it is cured. During curing, water is released back to the atmosphere.

 

Generally, the coatings industry is evolving from solvent-based formulations to water-based formulations. This evolution is being driven by customer preference and regulatory changes. However, it is also increasing the demand on local fresh water sources, which could escalate into water deficiencies or shortages in some areas. Although not always possible, we attempt to locate manufacturing in areas with ample water supply.

 

In addition, our facilities, operations, and offices all require water for staff, sanitation, and consumption.

 

Disclosure 303-2 Management of water discharge-related impacts

A clean adequate water supply is key to life and our business. A sufficient amount of good quality freshwater available for use is considered vital to our operations. In addition to the life sustaining aspect, water is a key raw material that is vital to the production of the majority of Sherwin-Williams' products.  

 

The publicly available Global EHS Policy addresses water under the broader category of sustainability, stating: “Sustainability - We develop, manufacture, distribute and sell our products in a way that preserves resources, prevents pollution and minimizes environmental impact from our activities.” 

 

Sherwin-Williams has a Global Standard for Water and Soil Protection in place. This Standard describes the minimum water and soil protection and management criteria for Sherwin-Williams facilities. It is intended to promote water conservation and to minimize the discharge of contaminants to water or soil that could cause harm to human health or the environment. The Standard supplements national, regional and/or local laws, regulations, policies and standards, all of which, to the extent applicable to a facility, must be followed.

 

The Standard requires that process water discharge stream(s) be physically characterized (e.g., volume and solids content) and chemically analyzed for the contaminants of concern based upon knowledge of the process that generated the water. This information is used to determine if volume and contaminant levels are acceptable to discharge based upon laws, permits or best professional judgment. The assessment should establish the need for treatment, treatment options and/or disposal options. The Standard also requires periodic analysis of process discharges to be conducted as required by permits or to ensure the discharge has not changed. As part of the Standard, employees are instructed to promote water conservation and to minimize the discharge of contaminated water that could cause harm to human health or the environment. Facilities have been trained on the Standard regarding water, and audits are conducted to ensure proper procedures are being followed.

 

Water that is used to clean process equipment and other process wastewater is managed through permitted discharges to wastewater treatment facilities, transported to licensed water treatment facilities, treated on-site or re-used as a raw material. 

 

Disclosure 303-3 Water withdrawal

Sherwin-Williams reports water usage through the Carbon Disclosure Project. Data are available through the Carbon Disclosure Project website. 

 

Disclosure 303-4 Water discharge  

Sherwin-Williams strives to minimize wastewater generation by product grouping, recycling or re-use whenever possible. Wastewater that cannot be reused or recycled is properly treated and disposed either through treatment on-site or by sending it off-site to a treatment facility. Sherwin-Williams also has a comprehensive water-recycling program in place. 

 

Sherwin-Williams reports water discharge through the carbon disclosure project. Data are available through the Carbon Disclosure Project website.

 

Disclosure 303-5 Water consumption

Sherwin-Williams strives to minimize wastewater generation by product grouping, recycling or re-using whenever possible. Wastewater that cannot be reused or recycled is properly treated and disposed of either through treatment on-site or by sending it off-site to a treatment facility. Sherwin-Williams also has a comprehensive water-recycling program in place. 

 

Sherwin-Williams reports water usage through the carbon disclosure project. Data are available through the Carbon Disclosure Project website.

Disclosure 305-1 Direct (Scope 1) GHG emissions

Scope 1 Greenhouse gas emissions rates are included in graph form on page 20 of the Sustainability Report.

Additional data are also reported through the Carbon Disclosure Project.

 

Disclosure 305-2 Energy indirect (Scope 2) GHG emissions

Scope 2 Greenhouse gas emissions rates are included in graph form on page 20 of the Sustainability Report.

Additional data are also reported through the Carbon Disclosure Project.

 

Disclosure 305-3 Other indirect (Scope 3) GHG emissions

Scope 3 emissions data has been reported since 2019 through the Carbon Disclosure Project.

 

Disclosure 305-4 GHG emissions intensity

Greenhouse gas emissions rates are included in graph form on page 20 of the Sustainability Report.

Disclosure 305-5 Reduction of GHG emissions

Our Environmental Footprint strategy is comprised of the following areas of focus: Climate and Carbon, Energy Efficiency and Waste Reduction. In 2021, we remained dedicated to reducing our environmental footprint in the near term, while laying a strong foundation for our longer-term environmental footprint reduction strategy.

 

Rolled out in early 2021 and benchmarked against a 2019 baseline, the following goals build on our past progress and demonstrate a significant evolution in our sustainability strategy and approach. We are committed to the following goals for 2030:

  • Reduce absolute Scope 1 and 2 greenhouse gas emissions by 30%
  • Increase electricity from renewable sources to 50% of total electricity usage
  • Increase operational energy efficiency by 20%
  • Reduce waste disposal intensity by 25% by 2030

For additional information and progress on these targets and goals, please review our 2021 Sustainability Report and Investor ESG Summary.

 

Sherwin-Williams has also been voluntarily participating in CDP’s Climate Change reporting initiative since 2006. The initiative catalogs its participants’ climate change-related risks, opportunities, governance and communications as they relate to output.

 

Sherwin-Williams is committed to the efficient use of energy, with a focus on reducing energy use, as well as expanding our use of renewable energy within our manufacturing facilities and fleet operations. Each year, we evaluate opportunities to improve our energy efficiency through our assessment of new technologies, the optimization of current processes and the exploration of alternative fuel solutions to achieve our goal of increasing our operational energy efficiency by 20% by 2030.

 

Some of our energy saving initiatives include:

  • Installing centrally managed and programmable HVAC systems
  • Installing compressed air optimization system and air leak elimination technology
  • Adopting energy-efficient building construction specifications
  • Scheduling equipment idle and controlled shutdowns
  • Improving packaging to eliminate unnecessary weight and volume of material being shipped
  • Installing lighting replacements and controls
  • Participating as a U.S. Environmental Protection Agency (EPA)
  • SmartWay Transport Partner as a shipper/carrier
  • Participating in the U.S. Department of Energy’s Better Plants Challenge Program
  • Pursuing LEED® (Leadership in Energy and Environmental DesignTM) certification for new builds, including our headquarters building in Cleveland, and Global Research and Development Center in Brecksville, Ohio, both currently under construction
  • Upgrading fleets to higher-miles-per-gallon vehicles
  • Upgrading equipment with higher-efficiency units
  • Using hybrid and electric vehicles in the fleet
  • Utilizing sophisticated planning software to determine the most efficient distribution routes

 

The Carbon Disclosure Project provides more information about these programs.

 

 

Disclosure 305-6 Emissions of ozone-depleting substances (ODS)

These substances are not applicable, or significant given our supply chain and products.

 

Disclosure 305-7 Nitrogen oxides (NOX), sulfur oxides (SOX) and other significant air emissions

Sherwin-Williams operations do not produce a significant quantity of NOx and SOx emissions. However, values for these air emissions (as well as others) are reported in our Investor ESG Summary.

 

Sherwin-Williams is committed to complying with all applicable regulations. Corporate personnel assist manufacturing facilities in calculating air emissions, compliance reporting, and preparing permit applications. Manufacturing facility personnel perform and monitor day-to-day operations related to air quality management. Corporate regulatory and product stewardship personnel review product labeling and formulations to ensure that Sherwin-Williams’ products meet all applicable local, state, and federal requirements.

  

Mercury is one of a group of metals subject to stringent control by Sherwin-Williams. Raw material vendors are required to disclose even trace levels of metals in their supplied materials. No Sherwin-Williams facility has had reportable quantities of mercury air emissions.

Disclosure 306-1 Water discharge by quality and destination

Sherwin-Williams does not report water discharges by destination. Water discharges are discussed in disclosures under GRI Standard 303 and through the Carbon Disclosure project available at www.CDP.net.

 

Disclosure 306-2 Waste by type and disposal method

All Sherwin-Williams manufacturing facilities have unique waste reduction targets and programs. Our waste reduction initiatives are commonly centered on improving quality control processes, reducing the number of distressed batches of product, managing raw materials and conducting finished product inventory, thereby eliminating the waste before it is generated.

 

In 2021, our Global Supply Chain (GSC) division began value stream mapping our operations to get a better understanding of our waste processes. The value stream mapping tool systematically reviews the energy consumption and waste generation of each step in the manufacturing and distribution process, providing a living document to help build a pipeline of sustainability projects.

 

Sherwin-Williams has a long history of reusing and recycling byproducts of our production process and incorporating excess raw materials, off-specification paint and wash water back into production as alternative raw materials in the manufacture of new batches. We are proud of these efforts and continue to encourage our facilities to maximize this activity.

 

All facilities have defined recycling programs in place where materials such as cardboard, paper, plastic and metal are diverted from the waste stream. Recycling rates at all our large manufacturing, distribution, administration and laboratory facilities are tracked globally using our EcoMet database. Waste that is unable to be recycled or reused is managed in accordance with applicable regulations and corporate guidelines. In 2021, the Company recycled approximately 40% of total waste generated.

 

Reference page 26 of the Sustainability Report for graphical results.

Disclosure 307-1 Non-compliance with environmental laws and regulations

Please refer to Sherwin-Williams’ Annual Report on Form 10-K for the fiscal year ended December 31, 2021 for information regarding Sherwin-Williams’ compliance with applicable environmental laws and regulations.


Social Topics

Disclosure 401-1 New employee hires and employee turnover

2021 Voluntary Full-Time Regrettable Turnover was 12.3%.

 

Disclosure 401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees

Sherwin-Williams provides a wide range of competitive benefits to support the diverse needs and well-being of our 60,000+ employees worldwide. Through our robust Total Rewards package, we offer competitive compensation, comprehensive benefits and other programs to support employees’ growth, both personally and professionally. Some programs and benefits may differ internationally due to market practice, and applicable local laws and regulations.

In the U.S., both full-time and part-time employees are eligible to participate in a Company-sponsored 401(k) plan and all employees that work at least 1,000 hours in a year receive a pension plan contribution.  Our Balance 4 Well-Being program offers training, resources and group activities to help employees focus on and improve their overall physical, financial and emotional well-being.

Our Employee Assistance Program provides all full- and part-time employees free counseling and other resources to help deal with a variety of mental, financial and work/life balance issues, such as sourcing childcare.

 

As part of our ongoing commitment to support employee well-being, an additional day of paid time off was announced in 2021 and rolled out in 2022 to all full-time, salaried employees in the U.S. Designated a personal day of observance, eligible employees are encouraged to use the time to recognize an occasion personally meaningful to them or to perform self-care. The guidelines are intentionally broad to accommodate and celebrate our differences.

Disclosure 403-1 Occupational health and safety management system

See our EHSMS policy documentation for this information.

 

Disclosure 403-2 Hazard identification, risk assessment and incident investigation

See our EHSMS policy documentation for this information.

 

Disclosure 403-3 Occupational health services

See our EHSMS policy documentation for this information.

 

Disclosure 403-4 Worker participation, consultation and communication on occupational health and safety

See our EHSMS policy documentation for this information.

 

Disclosure 403-5 Worker training on occupational health and safety

See our EHSMS policy documentation for this information.

 

Disclosure 403-6 Promotion of worker health

See our EHSMS policy documentation for this information.

 

Disclosure 403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

See our EHSMS policy documentation for this information.

 

Disclosure 403-8 Workers covered by an occupational health and safety management system

See our EHSMS policy documentation for this information.

 

Disclosure 403-9 Work-related injuries

See page 38 of the Sustainability Report for Safety Recordable Case Rates and Reportable Fleet Accidents per Million Miles.  

 

Disclosure 403-10 Work-related ill health

See our EHSMS policy documentation for this information.

Disclosure 404-1 Average hours of training per year per employee

In 2021, Sherwin-Williams employees completed a wide variety of skills training courses which they can apply to their future development and advancement. Specific number of hours vary greatly depending on the employee and their role/function (data is currently unavailable from in-person training).

 

Disclosure 404-2 Programs for upgrading employee skills and transition assistance programs

In 2021, Sherwin-Williams employees completed a wide variety of skills training courses which they can apply to their future development and advancement. Specific number of hours vary greatly depending on the employee and their role/function (data is currently unavailable from in-person training).

 

Disclosure 404-3 Percentage of employees receiving regular performance and career development reviews

100% of employees receive performance reviews at least annually.

Disclosure 405-1 Diversity of governance bodies and employees

Additional information regarding diversity programs may be found in our 2021 Sustainability Report and Investor ESG Summary.

 

Disclosure 405-2 Ratio of basic salary and remuneration of women to men

Our compensation programs are designed to attract, retain and motivate talented and high-performing people at all levels of our Company around the world. We structure our compensation programs to be competitive with programs of companies of similar size and business, while maintaining a performance- and achievement-oriented culture and alignment with the interests of our shareholders.

Disclosure 408-1 Operations and suppliers at significant risk for incidents of child labor

As part of our Code of Conduct, Sherwin-Williams’ precludes the following activities, among others: engaging in trafficking in persons; using forced labor; using child labor; and using any individual held in slavery or servitude. We require all employees, in all countries in which we operate, to support the human rights of others and to abide by Sherwin-Williams Human Trafficking Policy. We are also committed to working with our Suppliers to ensure that human rights are respected at all levels of our supply chain and that no trafficking in persons, forced labor and child labor exists in it. For additional information about Sherwin-Williams’ Code of Conduct, Human Trafficking Policy and Supplier Code of Conduct, please refer to www.sherwin.com.

Disclosure 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor

As part of our Code of Conduct, Sherwin-Williams’ precludes the following activities, among others: engaging in trafficking in persons; using forced labor; using child labor; and using any individual held in slavery or servitude. We require all employees, in all countries in which we operate, to support the human rights of others and to abide by Sherwin-Williams Human Trafficking Policy. We are also committed to working with our Suppliers to ensure that human rights are respected at all levels of our supply chain and that no trafficking in persons, forced labor and child labor exists in it. For additional information about Sherwin-Williams’ Code of Conduct, Human Trafficking Policy, and Supplier Code of Conduct, please refer to www.sherwin.com.

Disclosure 413-1 Operations with local community engagement, impact assessments and development programs

Additional information regarding our community engagement and development programs may be found in our 2021 Sustainability Report.

Disclosure 415-1 Political contributions

Sherwin-Williams does not have a political action committee and does not use corporate funds to contribute to any federal, state, or local candidates, political parties, or other political committees. Sherwin-Williams’ Code of Conduct, available at investors.sherwin.com, prohibits employees from making political contributions to any political organization or candidate for political office on behalf of or for the benefit of Sherwin‑Williams. Sherwin-Williams’ Code of Conduct, including our Anti-Bribery and Anti-Corruption Policy, also prohibits employees, and any other individuals acting on Sherwin‑Williams’ behalf, from directly or indirectly using gifts, bribes, payments of any kind or other corrupt practices in conducting business to influence any person in any country (including federal, state, or local government employees). This prohibition includes giving or offering to give anything of value, any payment, gift, entertainment, or service to government officials, their employees, political parties, public international organizations, and any other person, for the purpose of obtaining or retaining business or securing an improper advantage.

 

Our Government Affairs team facilitates Sherwin-Williams’ global participation in the public policy-making process, including with respect to issues that affect our employees, customers, and business operations and objectives, as well as the paint and coatings industry in general. This team is led by our Senior Vice President, General Counsel and Secretary, who provides regular reports to our Board of Directors regarding the Company’s key public policy activities and advocacy efforts.

 

Sherwin-Williams has filed regular lobbying reports with Congress since implementing the Government Affairs function in 2020. Our filings can be accessed in the U.S. Senate Lobbying Disclosure Act database at https://www.senate.gov/legislative/Public_Disclosure/LDA_reports.htm or U.S. House database at http://lobbyingdisclosure.house.gov.

Disclosure 416-1 Assessment of the health and safety impacts of product and service categories

In 2021, we set ambitious, meaningful goals and aspirations and enhanced our strategy with a strong focus on three pillars: Environmental Footprint, Product Blueprint and Social Imprint. These pillars sit on a foundation of Governance and Ethics, designed to ensure broad engagement and appropriate oversight for sustainability and ESG initiatives throughout the Company.

 

As a part of our Product Blueprint pillar, product stewardship guides the phases of our product development and is rooted in continuous improvement. It prioritizes recognizing and addressing the potential impacts of our products throughout their life cycle, from design and development through use and disposal and steps in between. We assess ingredients in a product formulation in terms of human health, product safety, environmental impact, and physical and chemical properties.

 

Our legacy of product stewardship is the foundation that enables us to pursue our Sustainability by Design program as part of our Product Blueprint pillar. Sustainability by Design is a signature effort in our five-stage Stage-Gate process to formally incorporate sustainability attributes such as life cycle thinking within our innovation and product development processes. Launched in 2021, Sherwin-Williams has implemented our Sustainability by Design program across the enterprise, serving as our proactive, foundational process to aid the growth of our “sustainably advantaged products” portfolio. “Sustainably Advantaged Products” are products that achieve a level of third-party green chemistry, ecolabel or similar recognition, or can be shown to be more sustainable than what is currently the norm for the industry.

 

Sherwin-Williams also monitors relevant information sources, including media outlets, technical newsletters, and the scientific literature and updates our products to best support the needs of our customers.  These efforts permit the Company to proactively consider proposed legislation, health and environmental information, and market trends regarding management and use of chemicals.

 

See pages 28-33 of our 2021 Sustainability Report for more information about our product stewardship program.

 

Disclosure 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services

Please refer to Item 7 and Item 8, Note 9 and Note 10 of Sherwin-Williams’ Annual Report on Form 10-K for the fiscal year ended December 31, 2021 for information regarding Sherwin-Williams’ compliance with applicable laws and regulations.

 

Please refer to Sherwin-Williams’ 2021 Sustainability Report and Global Environmental, Health and Safety Policy for information regarding Sherwin-Williams’ commitment to global leadership and environmental, health and safety excellence through Sherwin-Williams’ operations, business and products.