Sherwin Williams : 2021 Investor ESG Summary - Metrics at a Glance

Appendix

The Sherwin-Williams Company - 2021 Investor ESG Summary

	TOPIC	METRIC	2019	2020	2021
	Sustainability Reporting
		2021 Sustainability Report		2021 Sustainability Report
		2021 SASB Index		2021 SASB Index
		2021 TCFD Report		2021 TCFD Report
		GRI Index		GRI Index
	General
		Total Employees	61,111	61,031	61,626
		Total Employees (Full-Time Equivalent)	54,759	54,727	51,116
	Company	Net Sales (Millions)	$17,900.8	$18,361.7	$19,944.6
	Total Shareholder Return	See page 73 for Shareholder Returns
		Number of Sites (includes manufacturing/distribution sites and	5,376	5,288	5,271
		global stores, branches and blending facilities)
	Environmental
	General	ISO 14001 Certified Sites1 - # (%)	43 (33%)	44 (36%)	43 (36%)
	Environmental	Environmental Management Policy	Global Environmental, Health and Safety Policy
		Scope 1 (Direct CO2) GHG Emissions (metric tons CO2e)	370,711	351,109	354,397
		Scope 2 (Indirect CO2) GHG Emissions (metric tons CO2e)	305,402	283,738	266,869
		Total CO2 Emissions (metric tons CO2e)	676,113	634,847	621,266
		Scope 3 Emissions from Business Travel (metric tons CO2e)	17,479	5,222	6,197
			N/A, the
			Company has
			transitioned to	Reduce Absolute	Reduce Absolute
			an absolute
		Emissions Reduction Goal	Scope 1 and 2 Scope 1 and 2 by 30%
		emissions
			by 30% by 2030	by 2030
			reduction goal as
			(2019 baseline)	(2019 baseline)
	Emissions and		opposed to an
	Climate Change		intensity-based
			goal
		Science-Based Target	No	Yes	Yes
		VOC Emissions (tons)	1,635	1,681	1,879
		SOx Emissions (tons)	221	205	212
		NOx Emissions (tons)	3,657	3,404	3,515
		Climate Change Strategy	Yes	Yes	Yes
		CDP Climate Change Disclosure	CDP Climate Change Response
1		CDP Climate Change Score	D	C	B-
	This only applies to manufacturing and distribution facilities.

SHERWIN-WILLIAMS 2021 SUSTAINABILITY REPORT

Building on the Good

68

Appendix

The Sherwin-Williams Company - 2021 Investor ESG Summary, continued

TOPIC	METRIC	2019	2020	2021
	Total Direct Energy Consumption (Scope 1) (Million Gigajoules)	5.27	5.14	5.06
	Total Indirect Energy Consumption (Scope 2) (Million Gigajoules)	2.60	2.64	2.67
Energy	Total Energy Consumption (Million Gigajoules)	7.87	7.78	7.73
Total Direct Energy Intensity (Scope 1) (Gigajoules/metric tons produced)	1.37	1.34	1.34
	Total Indirect Energy Intensity (Scope 2) (Gigajoules/metric tons produced)	0.68	0,69	0.71
	Total Energy Intensity (Gigajoules/metric tons produced)	2.05	2.03	2.04
	Renewable Energy (Million Gigajoules)*	0.00	0.01	0.00
Renewable Energy Renewable Energy Percent of Total (%)	0.03%	0.07%	0.06%
	Renewable Energy Goal	N/A	N/A	50% by 2030
	Water Withdrawn (m3)	3,451,670	3,785,002	3,785,000
	Water Consumption in Production Facilities (m3)	1,474,380	1,686,920	1,686,920
	Water Intensity (m3/metric ton production)	0.89	0.99	0.99
Water	Water Consumed in Production Facilities and Sourced from Regions with	21.48%	19.50%	20.98%
	High or Extremely High Baseline Water Stress
	CDP Water Disclosure		CDP Water Response
	CDP Water Score	C	C	C
	Wastewater Discharge (m3)	1,977,290	2,098,090	Not yet available
Waste	Waste Reduction Goal	N/A	N/A	25% by 2030
	Waste Reduction Strategy	2021 Sustainability Report

Social

Workforce

Women in Workforce	24.6%	24.5%	24.5%
Women in Management	26.3%	26.5%	26.4%
			Increase women in
Women in Management Goal	N/A	N/A	management roles
			to 30% by 2025
Minorities in Workforce (U.S. Only)	33.3%	34.2%	35.2%
Minorities in Management (U.S. Only)	25.9%	26.6%	27.7%
			Increase
Minorities in Management (U.S. Only) Goal	N/A	N/A	minorities in U.S.
management roles
			to 30% by 2025
Workforce Age Group 70+	0.8%	0.9%	0.9%
Workforce Age Group 60-69	6.0%	6.4%	6.6%
Workforce Age Group 50-59	15.2%	15.5%	15.7%
Workforce Age Group 40-49	19.4%	19.6%	20.1%
Workforce Age Group 30-39	25.8%	26.4%	26.6%
Workforce Age Group 20-29	30.8%	30.0%	28.8%
Workforce Age Group Under 20	2.0%	1.23%	1.3%
Voluntary-Regrettable Turnover (for Full-Time only)	9.5%	8.0%	12.3%
The Sherwin-Williams Company 401(k) Plan	9.2%	8.2%	7.9%
Common Stock Ownership

*Renewable Energy includes onsite generation and procured renewable energy credits.

SHERWIN-WILLIAMS 2021 SUSTAINABILITY REPORT

Building on the Good

69

Appendix

The Sherwin-Williams Company - 2021 Investor ESG Summary, continued

TOPIC		METRIC	2019	2020	2021
	Equal Opportunity Policy	Equal Employment Opportunity Policy
	2021 Engagement Survey: We collaborated with a third party to conduct our global engagement survey. Our goal was to leverage
	the voice of our employees and quantify our progress toward creating an inclusive culture that empowers everyone to learn, grow and
	achieve their career aspirations. We earned a favorable engagement score of 77%, which serves as an affirmation of our existing efforts.
	The 2021 survey, established a baseline for our overall engagement score as well as associated metrics. We are committed to using the
	results to drive continued progress. Going forward, we will continue our regular cadence of pulse surveys and plan to conduct the global
Inclusion, Diversity	engagement survey every two years.
The following results from our 2021 all-employee engagement survey reflect our efforts in fostering an inclusive, supportive culture.
& Equity
•	"Managers treat our employees with dignity and respect." - 90% favorable response
	•	"Sherwin's a safe place to work." - 85% favorable response
	•	"I can be myself at Sherwin-Williams." - 80% favorable response
	•	"I'd recommend Sherwin-Williams as a place to work." - 80% favorable response

Conscious Inclusion Education & Training equips employees with inclusive leadership behaviors and resources to improve performance, drive business growth and enhance customer experience. The sessions and resources are designed to help leaders become mindful of unconscious perspectives and provide them with practical actions they can take to create and lead more inclusive cultures.

	Days Away Restricted or Transferred (DART) Rate (Total incidents per	1.03	0.97	0.58
	200,000 hours worked)
Occupational
Recordable Case Rate (Total number of employees with recordable
Health and Safety	1.30	1.06	0.81
incidents per 200,000 hours worked)
	Health and Safety Policy	Global Environmental, Health and Safety Policy
	Human Rights Policy		Code of Conduct
Human Rights	Human Trafficking Policy
	Conflict Minerals Policy		Conflict Minerals Policy
Community	Total Corporate Foundation and Other Giving	$7,221,883	$7,527,741	$6,425,865
Engagement	Community Engagement		Engagement
Products
Quality and Safety	Research and Development Costs (Millions)	$103,100.0	$97,100.0	$115,900.0

With the implementation of our Sustainability by Design program, we consider sustainable attributes in product innovation and 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.

	Highlights from 2021 include:
	•	Expanded Sustainability by Design across the enterprise, enhancing our capability to innovate based on sustainability attributes
Sustainability		on a large scale
•	Established a baseline for "sustainably advantaged products" and developed a plan for expanding this product portfolio in the
by Design
	future
	•	Advanced our position to start managing our Scope 3 emissions by enhancing the technicality and organization of our processes
	•	Integrated our Sustainability by Design philosophy into our existing Stage-Gate process
	•	Defined five "Sustainability Attributes" of focus for product innovation, development and categorization - Air Quality, Formula
		Stewardship, Resource Conservation, Circularity and Performance
	•	Launched internal sustainability training, with a focus on how to think about sustainability to determine the attributes most
		important to each business and/or product line

For more on our Sustainability by Design program, see our 2021 Sustainability Report beginning on page 30.

Product	Sustainable Programs and VOC Regulated Areas Reference Guide
Sustainability

SHERWIN-WILLIAMS 2021 SUSTAINABILITY REPORT

Building on the Good

70

Appendix

The Sherwin-Williams Company - 2021 Investor ESG Summary, continued

TOPIC	METRIC	2019	2020	2021
Supply Chain
Supply Chain	Supplier Guidelines/Code of Conduct	Supplier Code of Conduct
Governance
Ethics	Business Ethics Policy		Code of Conduct
	Size of the Board	11	10	11
	Independent Directors on Board - # (%)	10 (91%)	9 (90%)	10 (91%)
	Independent Lead Director	Yes	Yes	Yes
	Gender Diversity - # (%)	3 (27%)	3 (30%)	3 (27%)
	Racial/Ethnic Diversity - # (%)	2 (20%)	2 (20%)	4 (36%)
	Board Average Age	63.1	62.2	62.1
	Board Average Tenure	7	7.2	6.2
	Mandatory Retirement Age	72	72	72
	Board Meetings Held	6	7	6
Board of Directors	All Directors Attended ≥ 75% of Meetings	Yes	Yes	Yes
	Independent Members on the Audit Committee - # (%)	5 (100%)	4 (100%)	6 (100%)
	Audit Committee Meetings	6	8	5
	Independent Members on the Compensation & Management Development	5 (100%)	5 (100%)	4 (100%)
	Committee - # (%)
	Compensation & Management Development Committee Meetings	5	4	4
	Independent Members on the Nominating & Corporate Governance	4 (100%)	4 (100%)	4 (100%)
	Committee - # (%)
	Nominating & Corporate Governance Committee Meetings	4	2	4
	Annual Board and Committee Self-Assessments	Yes	Yes	Yes
	Orientation Program for New Directors	Yes	Yes	Yes
	Equal Voting Rights (One Vote per Share)	Yes	Yes	Yes
	Annual Say on Pay Voting Support	96.9%	96.0%	93.5%
	Shares Outstanding as of December 31	276,434,517	268,676,631	261,143,805
	Equity Reserved as % of Shares Outstanding	9.0%	7.8%	7.3%
Shareholder	Options Granted as % of Shares Outstanding	0.54%	0.51%	0.37%
Fair Price Provision	Yes	Yes	Yes
Practices2
Mandatory Bid Provision	No	No	No
	Majority Voting Standard	Yes	Yes	Yes
	Classified Board	No	No	No
	Proxy Access3	Yes	Yes	Yes
	Shareholder Rights Plan	No	No	No
Public Policy	Political Action Committee	No	No	No
and Political	Public Policy and Political Engagement Statement		Code of Conduct
Engagement

1. Historical share and per share information has been retroactively adjusted to reflect the Company's three-for-one stock split effected March 31, 2021.
2. The Company's Regulations provide proxy access rights to 3 year, 3% shareholders for up to 20% of the board.

SHERWIN-WILLIAMS 2021 SUSTAINABILITY REPORT

Building on the Good

71

Appendix

The Sherwin-Williams Company - 2021 Investor ESG Summary, continued

TOPIC	METRIC	2019	2020	2021
Governance - continued
	Total Compensation Paid to Named Executives	$30,706,224	$31,713,250	$33,937,998
	Total Salaries Paid to Named Executives	$4,016,760	$4,109,263	$4,652,263
	All Other Compensation Paid to Named Executives	$26,460,664	$27,603,987	$29,285,735
	Total Compensation Paid to CEO	$14,854,731	$15,323,284	$15,843,760
	Total Salary and Bonus Paid to CEO	$1,333,000	$1,339,000	$1,368,231
Compensation	All Other Compensation Paid to CEO	$13,521,731	$13,984,284	$14,475,529
	Executive Compensation Policies and Practices	Compensation Discussion and Analysis (CD&A) - Page 28
	Significant Stock Ownership Guidelines4	Yes	Yes	Yes
	Double-Trigger Equity Vesting Upon CIC	Yes	Yes	Yes
	Anti-Hedging and Anti-Pledging Policy	Yes	Yes	Yes
	Clawback Provision for Executive Compensation	Yes	Yes	Yes
	Total Executives	11	11	11 as of
	12/31/2021
	Female Executives - # (%)	2 (18%)	2 (18%)	3 (27%)
	Sustainability Disclosures Independently Verified/Assured	No	No	No
Governance	UN Global Compact Signatory	No	No	No
CSR/Sustainability Committee Oversight	Yes	Yes	Yes
	External Auditor	Ernst & Young LLP	Ernst & Young LLP	Ernst & Young LLP
	Audit & Audit-Related Fees Paid to Auditor	$7,280,000	$6,276,000	$6,171,000
	Non-Audit Fees Paid to Auditor	$2,286,000	$949,000	$1,023,000
	Total Auditor Fees	$9,566,000	$7,225,000	$7,194,000

4 Each independent director is required to own shares of common stock equal in value to a minimum of 7x the annual board cash retainer and hold all shares of common stock received upon the vesting of restricted stock units until the minimum share ownership requirement is met. Each executive is required to own shares of common stock equal in value to a multiple of his/her base salary, with 6x for the CEO, 4x for the COO and 3x for other executives.

SHERWIN-WILLIAMS 2021 SUSTAINABILITY REPORT

Building on the Good

72