Lowe’s

Policy:Adopted a retailer safer chemicals policy

10 out of 23.5 points

In November 2018, Lowe’s launched a safer chemicals policy, which states: “There has been a growing concern that there are hazardous chemicals that can be persistent and build up in the environment and have significant adverse human and environmental health effects. While regulations are being strengthened, certain concerns remain unregulated and may impact the health and safety of Lowe’s products.” The policy also states: “Lowe’s will develop a framework to systematize the process of assessing chemicals and managing chemical risks. Chemical risks can be managed in several ways and may include requiring disclosure of chemicals in Lowe’s products, reducing or eliminating toxic chemicals from Lowe’s products or packaging, better educating consumers on product safety, and/or driving innovation by encouraging suppliers to transition to safer alternatives and green chemistry solutions.” The policy applies to all of its stores. However, the company’s statement on packaging is tentative and the statement on operations does not indicate how it is addressing chemicals of concern in its operations (such as bisphenols in thermal receipt paper and flame retardants, PFAS, and ortho-phthalates in building materials used for new stores and renovations), so no credit is awarded for these two components.

The company notes in its policy: “Lowe’s will review this chemical policy at least on an annual basis and report progress in its annual corporate responsibility report.”

In 2019, the company expanded its policy by adopting a BRSL with new goals. It includes restrictions on CHCs in various product categories. In October 2019, the company stated: “All indoor residential carpet and rugs purchased by Lowe’s will be free of PFAS chemicals by January 2020,” which they have since implemented. The company also disclosed restrictions on phthalates, halogenated flame retardants, vinyl chloride, triclosan, organotins, coal fly ash, and other toxic chemicals in other notable product categories, including wall-to-wall carpet, paint, and fiberglass insulation.

In January 2021, Lowe’s became the first major retailer to ban PFAS in all fabric protection sprays, a significant new commitment.

In the company’s 2019 sustainability report, issued in 2020, the company shared: “52% of our strategic suppliers have sustainability goals in place…” with a goal to reach 100% by 2025.” However, Lowe’s did not disclose whether or not any of these goals address harmful chemicals.

In 2018, Lowe’s demonstrated impressive leadership by becoming the first major U.S.-based retailer to announce a global ban on the sale of paint strippers containing methylene chloride and NMP in all of its stores. Lowe’s has stores in the U.S., Canada, and Mexico. This helped spur a major ripple effect among other large home improvement, paint, and general merchandise retailers who joined the market shift away from toxic paint strippers. Lowe’s previously imposed restrictions on chemicals such as ortho-phthalates and formaldehyde in flooring.

Lowe’s policy does not appear to apply, as specified in the criteria, to packaging or operations. The company does not have a publicly available manufacturing restricted substance list (MRSL) or beyond restricted material list (BRML) for plastics of environmental health concern (PEHCs).

Glossary of Terms

Oversight: Established management responsibilities and incentives

2.5 out of 5 points

A corporate manager has explicit responsibility for implementing the company’s safer chemicals policy.

In its 2018 sustainability report, issued in 2019, the company stated: “In the U.S., Lowe’s senior vice president, chief compliance officer & deputy general counsel oversees sustainability matters and reports quarterly to the sustainability committee and to the general counsel, a direct report to the CEO, and regularly updates the sustainability committee of the board. Additionally, the sustainability team meets monthly with our corporate responsibility council, consisting of vice presidents and directors from more than 14 functions across Lowe’s. Although Lowe’s takes a global approach to corporate responsibility, we adapt it to our local regions. Our Canadian director of corporate responsibility reports to the senior vice president of communications, public affairs and compliance, who is a direct report to the president of Lowe’s Canada. For the Canada region, we plan to implement a sustainability steering committee in 2019 and look for improved means to quantify sustainability progress and harmonize our metrics with Lowe’s U.S.”

Lowe’s does not appear to offer financial incentives for senior management to implement its safer chemicals policy.

Glossary of Terms

Accountability: Ensures supply chain accountability

5 out of 15 points

In its safer chemicals policy, the company states: “Lowe’s will continuously improve its engagement with supply chain partners to ensure requirements are understood and acted upon in a reasonable timeframe.” In September 2019, the company stated: “Our chemical policy and current commitments have been communicated to our suppliers to ensure they comply. In addition, we are engaging across [multiple] suppliers to evaluate potential commitments to reductions in CHCs in paint, flooring, insulation and cleaning products.” In December 2020, the company shared that it has been educating merchants and suppliers on its safer chemicals policy and shared with us a copy of a PowerPoint presentation for merchants verifying this.

More recently in December 2020, the company reported that it now references its safer chemicals policy in its Vendor Code of Conduct, which states that: “Vendors must fully comply with all applicable laws, regulations, and with Lowe’s policies published on its vendor portals, including but not limited to, the Human Rights Policy, Safer Chemicals Policy, Conflict Minerals Policy, and Wood Sourcing Policy. To the extent that Lowe’s policies impose a higher standard than what is required by any applicable law or regulation, Lowe’s policies shall prevail.” Partial credit is awarded since this is not necessarily a contract.

In its 2019 sustainability report, Lowe’s states: “We actively audit, test and inspect Private Brand Vendor products and products where we are the importer of record. Each year, Lowe’s authorizes third-party labs to conduct product and transit/packaging tests to verify compliance with applicable industry standards and state/ federal regulations. In addition, we test low-risk products every two years, test all other products annually and utilize third-party labs for consumer testing with product test reports used to make informed sourcing decisions.” The company previously shared that it conducts annual testing for wood flooring (laminate/composite wood and bamboo) to ensure compliance with both CDPH 1350 for VOC’s and CARB requirements for formaldehyde nationally. The company noted: “when there are state-specific regulations on chemical composition, we test to ensure national compliance.” In its most recent sustainability report, the company disclosed that 5,126 product tests were conducted by third parties and 11,282 pre-shipment product inspection visits were conducted for product safety. Partial credit is awarded for testing products nationally to ensure compliance with the strictest state standard related to chemical composition.

Lowe’s has otherwise not disclosed if it incorporates its safer chemicals policy, BRSL, or reporting requirements in supplier contracts or requires suppliers to conduct testing in third-party laboratories and provide results to the retailer to ensure compliance with its safer chemicals policy or BRSL.

Glossary of Terms

Disclosure: Requires suppliers to report use of chemicals in products to retailer

6 out of 17.5 points

In September 2019, the company stated: “Lowe’s requires suppliers to submit product composition information to the UL WERCSMART system for the following product categories:
– aerosols
– batteries
– electronics
– pesticides
– all products that contain gels, powders, pastes, liquids or gases
– [fluorescent], halogen, and HID lamps”

The company went on to clarify: “The initial driver for collecting the information was to ensure that we were transporting and storing product in the right spots, and cleaning up spills correctly. That said, we are starting to work with UL to use the…database to query for the presence of specific chemicals in our products – which will help us ensure we are meeting our commitments, and can also help us identify which products contain CoCs that have not yet been addressed by our commitments. In short, we are leveraging an existing process & database to drive progress on the proactive side of the house.” Lowe’s has not confirmed whether it requires suppliers to disclose the components of generic ingredients through this program, and has not confirmed whether it requires this of all suppliers (private-label and name-brand).

Extra credit is awarded for this disclosure applying to multiple major product categories, but this disclosure does not apply to articles.

Lowe’s helped develop the Green Chemistry & Commerce Council (GC3) Retail Leadership Council (RLC) Statement on Chemical Innovation Priorities and Transparency Roadmap and should consider implementing the Transparency Roadmap with its suppliers.

Glossary of Terms

Action: Reduced or eliminated chemicals of high concern (CHCs) or plastics of environmental health concern (PEHCs) within the last three years

18 out of 26 points

In January 2021 Lowe’s became the first major retailer to ban PFAS in all fabric protection sprays, a significant new commitment.

In 2019, Lowe’s announced new restrictions on classes of toxic chemicals and on individual toxic chemicals in numerous product categories. It stated that: “All indoor residential carpet and rugs purchased by Lowe’s will be free of PFAS chemicals by January 2020.” As part of this, the company also disclosed new restrictions on phthalates, halogenated flame retardants, vinyl chloride, triclosan, organotins, coal fly ash, and other toxic chemicals in other notable product categories including wall-to-wall carpet, paint, and fiberglass insulation. The company has since followed through on these commitments.

In 2018, Lowe’s demonstrated impressive leadership by becoming the first major U.S.-based retailer to announce a global ban on the sale of paint strippers containing methylene chloride and NMP in all of its stores. Three extra credit points are awarded for this. Lowe’s has stores in the U.S., Canada, and Mexico. This helped spur a major ripple effect among other large home improvement, paint, and big box retailers who joined the market shift away from toxic paint strippers. The company has followed through and implemented this commitment but has not taken further steps to ensure suppliers avoid regrettable substitutes.

The company also noted in its 2019 sustainability report: “We also continue to phase out volatile organic compound (VOC) paints, with a large selection of low-VOC paints sold in the
U.S. and only low-VOC paint offerings in Canada.”

In 2019, Lowe’s Canada noted it is investigating the use of bisphenols in thermal receipt paper in its stores, stating: “we are currently evaluating different options to phase out the use of thermal paper containing bisphenols across our banners.” The company has not shared an update since then.

In 2015, Lowe’s was the second major U.S. retailer to work with suppliers to eliminate all ortho-phthalates in residential vinyl flooring, one of the largest uses globally. Recent testing has confirmed Lowe’s followed through on that commitment. Lowe’s enforces the California formaldehyde restrictions for all laminate, engineered, and bamboo flooring categories. Points are not awarded for either of these efforts since they happened more than three years ago and outside the scope of our quantitative assessment. The company also restricts lead to 600 parts per million (ppm) in surface coating for all products, not just regulated items.

Lowe’s has not publicly documented progress on reducing plastics of environmental health concern beyond regulatory compliance in the last three years.

Glossary of Terms

Safer Alternatives: Evaluates safer alternatives, avoids regrettable substitutes

2 out of 16 points

Lowe’s safer chemicals policy states: “Lowe’s will strive to protect the health of Lowe’s customers, employees, and environment by systematically identifying, reducing, and eliminating chemicals of concern and substituting them with safer alternatives wherever commercially feasible. … Lowe’s will actively drive the identification and availability of safer alternatives to its entire operations, including Lowe’s stores and offices … Lowe’s will strive to enhance consumer confidence in the products Lowe’s sells in the United States and other countries through making available an increasing number of eco-products that incorporate safer chemicals.”

In its 2019 sustainability report, the company notes it worked with the GC3 RLC to develop a joint statement. This statement calls on chemical companies and suppliers to develop safer alternatives for flame retardants, plasticizers, water and stain repellents, and other chemicals in products sold at retail. It identifies the need to develop safer alternatives to dangerous chemicals in food packaging, electronics, personal care products, building materials, and other product categories.

Lowe’s was the first major retailer to phase out the sale of methylene chloride- and NMP-containing paint removal products, which helped spur a major market shift away from these hazardous products. However, recent research has found that Lowe’s is selling other paint removal products containing chemicals of concern that meet the GreenScreen Benchmark-1 criteria. Lowe’s must do a better job of ensuring substitutes for methylene chloride and NMP are safe.

Glossary of Terms

Transparency: Demonstrates a commitment to transparency and public disclosure

7.5 out of 20 points

Lowe’s published its safer chemicals policy in November 2018 and stated it: “will review this chemical policy at least on an annual basis and report progress in its annual corporate responsibility report.” In 2019, the company expanded the policy to include restrictions on CHCs in paint strippers, carpet, paints, flooring, and insulation, essentially amounting to a BRSL that is publicly available.

Lowe’s helped develop the GC3 RLC Statement on Chemical Innovation Priorities and Transparency Roadmap and should consider implementing the Transparency Roadmap with its suppliers.

Lowe’s does not appear to encourage or require suppliers to publicly disclose ingredients in products online or on product packaging going beyond regulatory compliance.

Glossary of Terms

Third-party Standards: Promotes credible third-party standards for safer products

3 out of 8.5 points

The company noted in its most recent sustainability report: “We continuously expand our product portfolio with safer product and environmental certifications, including GreenGuard, EPA Safer Choice and Cradle to Cradle, and actively help consumers identify and consider these products while shopping. We also continue to phase out volatile organic compound (VOC) paints, with a large selection of low-VOC paints sold in the U.S. and only low-VOC paint offerings in Canada.”

Lowe’s requires that flooring products be certified to either Greenguard or FloorScore standards to meet CDPH-1350 standards for volatile organic compounds (VOCs). While these certification programs are primarily oriented around meeting a California regulatory standard, Lowe’s requires suppliers to meet this certification nationally.

Glossary of Terms