Environmental Topics (300 Series)


Materials


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 the 2019 Annual Report.


Disclosure 301-2 Recycled input materials used


Sherwin-Williams reuses significant amounts of wash water in many of its architectural products. We will continue to set liquid waste generation targets by identifying waste avoidance opportunities (e.g., efficient cleaning process), installing additional wash water reuse systems and recycling water-based products.

In addition, Sherwin-Williams recently launched Powdura ECO, which is a powder coating containing a significant amount of pre-consumer recycled PET. Additional information about Powdura ECO is available here.


Disclosure 301-3 Reclaimed products and their packaging materials


Sherwin-Williams is not only a supporter of the industry’s PaintCare take-back program, but its stores are also one of the largest retail waste coating drop-off locations. In 2019, Sherwin-Williams recovered over 1-million gallons of waste coating which could be re-processed or reused back into coatings or other product types.

See page 48 of our Corporate Social Responsibility Report for more information about our product take-back efforts via PaintCare.

In addition, Sherwin-Williams recently developed the Quik-Tap packaging system which allows for the recycling of aerosol coating containers. Historically, aerosol containers had to be disposed of as hazardous waste. Quik-Tap was awarded a sustainability packaging award by AmeriStar in 2019. More information on Quik-Tap is available here.


Energy


Disclosure 302-1 Energy consumption within the organization


Sherwin-Williams has set goals to reduce energy usage. Progress can be found on page 41 of our Corporate Social Responsibility 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 to reduce energy usage. Progress can be found on page 41 of our Corporate Social Responsibility Report.


Disclosure 302-4 Reduction of energy consumption


Sherwin-Williams is committed to the effective and efficient use of energy throughout our operations. We will consider energy efficiency projects, renewable and alternative energy projects, renewable energy power purchase agreements, carbon emission offsets and credits from renewable sources. It is the Company’s intention to develop this strategy in 2020, including establishing metrics, determining data gaps and identifying collection methods. Implementation is planned to begin in 2021.

The U.S. Department of Energy has frequently recognized the Sherwin-Williams Global Supply Chain for their voluntary commitment to reducing the energy intensity of their U.S. manufacturing operations.

Some of our energy saving initiatives include:
  • Participation in Department of Energy’s Save Energy Now Program
  • Lighting replacements
  • Upgrading equipment with higher efficiency units
  • Boiler upgrades
  • Elimination of air leaks
  • Equipment idle scheduling
  • Streamlined national distribution processes
    • Utilizing sophisticated software to determine the most efficient distribution routes
    • Participating as an U.S. EPA SmartWays Transport Partner as a shipper/carrier
    • Improved packaging to eliminate unnecessary weight and volume of material being shipped
  • Programmable HVAC systems
  • Centralized HVAC control of stores
The Carbon Disclosure Project provides more information about this specific program.


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


There are a variety of our products that are designed to reduce the energy needs of our customers. These include reflective roof coatings, sealants, Infrared-reflecting concrete or wood coatings, and many others. For more information, please visit our 2019 Corporate Social Responsibility Report, as well as our Green Product Guide.


Water


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.

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, Water, and Soil Protection Standard (“Standard”) 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 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 usage 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.


Emissions


Disclosure 305-1 Direct (Scope 1) GHG emissions


Trends in Greenhouse gas emissions rates per 100 lb. produced are included in graph form on page 42 of our Corporate Social Responsibility Report. Also refer to the Corporate Social Responsibility Report - Metrics Summary.

Additional data are also reported through the Carbon Disclosure Project.


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


Trends in Greenhouse gas emissions rates per 100 lb. produced are included in graph form on page 42 of our Corporate Social Responsibility Report. Also refer to the Corporate Social Responsibility Report - Metrics Summary.

Additional data are also reported through the Carbon Disclosure Project.


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


Scope 3 emissions data was reported for the first time in 2019 through the Carbon Disclosure Project.


Disclosure 305-4 GHG emissions intensity


Trends in Greenhouse gas emissions rates per 100 lb. produced are included in graph form on page 42 of our Corporate Social Responsibility Report. Also refer to the Corporate Social Responsibility Report - Metrics Summary.


Disclosure 305-5 Reduction of GHG emissions


Sherwin-Williams has historically set energy and carbon reduction goals. These reductions have been achieved through a combination of energy efficiency projects, business consolidations, increased production and lower indirect carbon emissions from a greening electrical grid from increased renewable energy.

An error was discovered with the Scope 1 emissions for the 2017 and 2018 reporting years that overstated carbon emissions. The past data have been corrected and incorporated into our reporting, including the corresponding goal from 2017 baseline year.

The Company is evaluating its corporate strategy to reduce carbon emission and move toward carbon neutrality. The strategy will consider energy efficiency projects, renewable and alternative energy projects, renewable energy power purchase agreements, carbon emission offsets and credits from renewable sources. It is the Company’s intention to develop this strategy in 2020, including establishing metrics, determining data gaps and identifying collection methods. Implementation is planned to begin in 2021.

Sherwin-Williams has also been voluntarily participating in the Carbon Disclosure Project (CDP) since reporting year 2005. The CDP requests its participants report their global GHG inventories from their activities, based upon stated boundaries. Additionally, the CDP asks that respondents answer a questionnaire designed to provide transparent information about GHG-related risks and opportunities, corporate governance and climate change communications. Sherwin-Williams is committed to the effective and efficient use of energy throughout our operations. Using environmentally responsible practices, Sherwin-Williams will promote energy efficiency by evaluating new technology, optimizing current processes and implementing programs that will focus on improvements in Safety, Quality, People, Service and Cost. These energy initiatives will lead to GHG reductions for the company.

Some of our energy saving initiatives include:
  • Participation in Department of Energy’s Save Energy Now Program
  • Partner in U.S. EPA's Climate Leaders Program
  • Lighting replacements
  • Upgrading equipment with higher efficiency units
  • Streamlined national distribution processes
    • Utilizing sophisticated software to determine the most efficient distribution routes
    • Participating as an U.S. EPA SmartWays Transport Partner as a shipper/carrier
    • Improved packaging to eliminate unnecessary weight and volume of material being shipped
  • Boiler upgrades
  • Elimination of air leaks
  • Equipment idle scheduling
  • Programmable HVAC systems
The Carbon Disclosure Project provides more information about this specific program.


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


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


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


Sherwin-Williams is not a significant source of NOx and SOx emissions. The primary pollutants of concern for Sherwin-Williams are volatile organic compounds (VOC) and particulate matter. Our research and development teams are continuously developing new lower VOC products. External VOC control devices (i.e. thermal oxidizer, regenerative thermal oxidizer, bio-filter) are in place at 12 major solvent and aerosol manufacturing facilities. Dust collection and control is used where the manufacturing process involves handling a significant quantity of powders or dry pigments. Operational controls and work practices are in place to reduce emissions at all manufacturing locations.

2019 values for these air emissions are being calculated and will be reported in our Investor ESG Summary later in 2020.

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 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.


Effluents and Waste


Disclosure 306-1 Water discharge by quality and destination


At this time, 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


Each Sherwin-Williams manufacturing facility has established waste reduction goals and associated projects and programs to meet those goals as part of the manufacturing facility’s overall business operations plan. Six Sigma and continuous improvement projects have been implemented to improve quality control, reduce distressed batches and manage raw materials and finished product inventory, thereby eliminating the waste before it is generated. Other waste reduction efforts have included: the reuse and recycling of cleaning solvents; reworking paint into new batches; and recycling cardboard, paper, plastic and metal. Materials that become waste are managed in accordance with applicable regulations and corporate guidelines.

Continual improvement projects are leveraged across facilities to improve the recycling/rework program and to drive reduction and elimination of waste (both hazardous and non-hazardous) from manufacturing facilities and distribution centers. Our EcoMet database is used to track recycling rates from all large facilities (manufacturing facilities, distribution, administration and laboratory) globally.

Reference the Corporate Social Responsibility Report - Metrics Summary , or pages 40-47 of our Corporate Social Responsibility Report for graphical results.


Environmental Compliance


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


Please refer to Item 7 and Item 8, Note 10 of Sherwin-Williams’ Annual Report on Form 10-K for information regarding Sherwin-Williams’ compliance with applicable environmental laws and regulations.