Sherwin Williams : 2023 Sustainability Report

2023

Sustainability Report

Building on the Good

Introduction	Product Blueprint	Environmental Footprint	Social Imprint	Governance and Ethics	Appendix

Sherwin-Williams is committed to Building on the Good to continue delivering positive impact.

Innovative Solutions

A Better World

A Caring Culture

Trust & Transparency

ABOUT THIS REPORT

Unless otherwise specified, the programs and data discussed throughout are reflective of our global operations and cover the year ended December 31, 2023. This report was prepared with reference to key sustainability reporting frameworks, including the World Resources Institute (WRI) GHG Protocol Corporate Accounting and Reporting Standard, the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD), which are also included in the Appendix. Visit sustainability.Sherwin-Williams.comto learn more about our sustainability strategy, programs and progress.

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Introduction	Product Blueprint	Environmental Footprint	Social Imprint	Governance and Ethics	Appendix

To Our Stakeholders

Sherwin-Williams has been more than a leader in the paint and coatings industry since our beginnings in 1866 - we've been committed to doing right by our employees, customers, communities and shareholders. Our history as an industry innovator, supplier and employer is ingrained in our sustainability approach, and, over the past year, we continued building on this momentum. In our 2023 Sustainability Report, we share our progress on policies, goals and programs that are helping us protect what matters most.

Helping Our Customers Succeed, Sustainably

Supporting our customers' success is at the heart of who we are. Today, customers are more focused than ever on sustainability, and we're helping them meet their goals in a variety of ways. The core of our Product Blueprint is our Sustainability by Design program, through which we seek ways to incorporate sustainability attributes into our products while improving their performance. We also include sustainability considerations in material sourcing, manufacturing and product end-of-life.Sherwin-Williams evaluates our products for a range of sustainability characteristics and produces Environmental Product Declarations (EPDs) that help customers choose paints and coatings that are right for them.

Protecting the Planet

We're also paying close attention to the Environmental Footprint of our operations. As a solutions provider to businesses worldwide - across a range of industries - making and moving products in more environmentally efficient ways helps both Sherwin-Williams and our customers reduce their value-chain impacts. We've set goals to reduce emissions, increase energy efficiency and renewable energy, and decrease waste intensity. And with a fundamentally performance-driven culture, we intend to meet and exceed these commitments in the years ahead.

Our Future Is Bright

Both our business performance and our sustainability progress are possible thanks to the determination of the best team in the industry. In our ongoing efforts to remain the employer of choice, we recently asked thousands of employees what makes Sherwin-Williams a great place to work - and how we can take it to the next level. Employees shared how much they value professional development opportunities and high-functioning teams - and now, we're investing more than ever to create an empowering, growth-oriented workplace. Our Social Imprint also extends to the global communities where we live and work, allowing us to support our neighbors through skills development, housing and beautification projects, and other philanthropic efforts.

I'm seeing inspiring results from all the good work being done throughout Sherwin-Williams, and I am proud to share many highlights in this report. Our best is yet to come, and I look forward to continued progress as we keep Building on the Good.

"Today, customers are more focused than ever on sustainability, and we're working in lockstep with them to meet their goals."

Heidi G. Petz

President and Chief Executive Officer

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2023 At a Glance

Product Blueprint

Introduction	Product Blueprint	Environmental Footprint	Social Imprint	Governance and Ethics	Appendix

Environmental Footprint		Social Imprint

Produced hundreds of product life cycle assessments - allowing us to publish Environmental Product Declarations (EPDs) that customers can use to assess their Scope 3 emissions

Launched a branded portal in Ecomedes for product sustainability certifications

Received the Sustainability, Environmental Achievement and Leadership (SEAL) Sustainable Innovation Award for valPure® V70, the industry's first non-BPA epoxy coating

Supplied product for a Leadership in Energy and Environmental Design (LEED®) Platinum building on the University of California-San Diego campus that won the American Institute of Architects' Committee on the Environment Top Ten Award

Expanded our use of on-site solar energy in North America

Entered into a virtual power purchase agreement that added up to 320,000 megawatt-hours (MWh) of renewable energy to the grid

Upgraded LED lighting kits for all paint store color displays

Launched a Sustainability Ambassador Program focused on understanding and responding to customer sustainability needs and embedding sustainable thinking into how we do business

Participated in PaintCare® program at 650+ Company paint stores promoting proper reuse and recycling of unused paint

Launched Create Your Possible™ - a new guiding framework for talent that positions us as an employer of choice

Completed Conscious Inclusion training for 100% of senior leadership

Achieved injury-free status at 5,564 sites

Donated $6,417,023 to charitable causes

Exceeded Building our Future economic inclusion commitments and awarded contracts totaling more than $300 million with minority-owned,female-owned and small businesses through April 2024

Donated to more than 1,400 charitable organizations through our giving platform

5,000+ employees leading 300+ chapters of employee resource groups (ERGs)

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Introduction	Product Blueprint	Environmental Footprint	Social Imprint	Governance and Ethics	Appendix

About Sherwin-Williams

The Sherwin-Williams Company (NYSE: SHW) is a global leader in the development, manufacture, distribution and sale of paint, coatings and related products to professional, industrial, commercial and retail customers.

Founded in 1866 by Henry Sherwin and Edward Williams, our Company has spent more than 150 years creating a legacy of growth, creativity and innovation. 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 branches, while our other brands are sold through leading mass merchandisers, home centers, independent paint dealers, hardware stores, automotive retailers and industrial distributors. We also supply a broad range of solutions for the construction, industrial, packaging and transportation markets in more than 120 countries around the world. Enabling all of this work are our employees - the pride of our Company - who bring their technical expertise, customer service mindset, innovative energy and commitment to safety to all we do.

2023 Net Sales by Segment

 Paint Stores Group 56%

64,000+

Employees

Our Global Reach

120+

Countries

5,000+

Stores and Branches

125+

Manufacturing and Distribution Facilities

 Performance Coatings Group 30%  Consumer Brands Group 14%

$23.05B

Total Net Sales

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Introduction	Product Blueprint	Environmental Footprint	Social Imprint	Governance and Ethics	Appendix

Our Business Segments

Sherwin-Williams has three reportable business divisions:

Paint Stores Group

Consumer Brands Group

Performance Coatings Group

This segment operates the exclusive outlets for Sherwin-Williams® branded paints, stains, supplies, equipment and floor covering in the United States, Canada and the Caribbean region. The Group services the needs of architectural and industrial paint contractors and do-it-yourself homeowners through marketing and selling architectural paint and coatings, protective and marine products, original equipment manufacturer (OEM) product finishes and related products.

Products Sold: Paints, stains, aerosols, applicators, caulks, varnishes, protective and marine coatings, spray equipment and related products in the United States, Canada and the Caribbean; wall covering and floor covering in the United States, Canada and the Caribbean

Customers Served: Professional painting contractors, home builders, property maintenance, healthcare, hospitality, architects, interior designers, do-it-yourselfers, industrial, marine, flooring and OEM product finishers

Selected Brands: Sherwin-Williams®,A-100®, Builders Solution®, Captivate®, Cashmere®, Duration®, Emerald®, Gallery Series™, Kem Tone®, Latitude®, Loxon®, Metalatex®, Novacor®,

Painters Edge Plus™, ProClassic®, ProCraft®, Pro Industrial™, ProMar®, Scuff Tuff®, SuperDeck®, SuperPaint®, Woodscapes®

Outlets: There are 4,694 Sherwin-Williams paint stores in the United States, Canada and the Caribbean.

This segment sells one of the industry's most recognized portfolios of branded and private-label architectural paint, stains, varnishes, industrial products, wood finishes products, wood preservatives, applicators, corrosion inhibitors, aerosols, caulks and adhesives through retailers and distributors in North America and Europe. The Group also sells architectural paints, industrial coatings and related products in Latin America through Company-operated stores, dedicated dealers and select retailers, and operates a highly efficient global supply chain for paint, coatings and related products.

Products Sold: Branded, private-label and licensed brand paints, stains, varnishes, industrial products, wood finishing products, wood preservatives, applicators, corrosion inhibitors, aerosols, caulks and adhesives, and related products

Customers Served: Do-it-yourselfers, pros who paint, industrial maintenance, commercial roofing and flooring contractors

Selected Brands: Cabot®, Colorgin®, Condor®, Dupli-Color®, DutchBoy®, Geocel®, HGTV HOME® by Sherwin-Williams, Krylon®, Minwax®, Purdy®, Ronseal®, Sherwin-Williams®, Thompson's ® WaterSeal ®, Valspar ® and White Lightning ®

Outlets: The Consumer Brands Group segment has over 10,000 points of distribution with leading mass merchandisers, home centers, independent paint dealers, hardware stores, craft stores, fine art stores, automotive retailers and industrial distributors in the United States, Canada and Europe. 318 Sherwin-Williams paint stores in Brazil, Chile, Ecuador, Mexico and Uruguay. Dedicated dealers, home centers, distributors and hardware stores in Argentina, Brazil, Chile, Ecuador, Mexico and Uruguay. A licensee in El Salvador serves Central America.

This segment sells a broad range of coatings and finishing solutions to general industrial, industrial wood, protective and marine, automotive refinish, packaging and coil customers in more than 120 countries.

Products Sold: Asset protection products, wood finishes, powder coatings, coatings for plastic and glass, aerosols, high-performance interior and exterior coatings for the automotive, aviation, fleet, packaging, heavy truck, material handling, agriculture and construction, and building products segments

Customers Served: Commercial construction, industrial maintenance, protective and marine, military, heavy equipment, appliances, electronics, building products, furniture, cabinetry and flooring, architects and specifiers, bridge and highway, water and wastewater treatment, collision repair facilities, dealerships, auto interior, fleet owners, auto refinishers, production shops, packaging and manufacturers

Selected Brands: Sherwin-Williams®, Acrolon®, AcromaPro®,

ATX®, DeBeer Refinish®, Duraspar®, EcoDex®, Envirolastic®, Excelo®, EzDex®, Fastline®, Firetex®, Fluropon®, Gross & PerthunTM, Heat-Flex®, House of Kolor®, Huarun®, ICA®, Inver®, Kem Aqua®, Klumpp CoatingsTM, Lazzuril®, Macropoxy®, Martin Senour®, Matrix Edge®, M.L. Campbell®, Octoral®, Oskar NolteTM, Perma-Clad®, Polane®, Powdura®, Sayerlack®, Sher-Wood®, Sumaré®, Ultra 9K®, Ultra 7000®, ValPure®, Valspar®

Outlets: Company-operated branches and facilities serve automotive, general industrial, industrial wood and coil customers in the United States, Australia, Belgium, Brazil, Canada, Chile, China, Czech Republic, Denmark, Finland, France, Germany, India, Indonesia, Ireland, Italy, Lithuania, Malaysia, Mexico, Norway, Peru, Poland, Portugal, Romania, Singapore, Spain, Sweden, Thailand, Ukraine, United Kingdom and Vietnam. Distribution in other countries.

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Introduction	Product Blueprint	Environmental Footprint	Social Imprint	Governance and Ethics	Appendix

Our Corporate Purpose

The Sherwin-Williams business segments and global reach illustrate what we do - and our corporate purpose is how we do it. Our purpose is to inspire and improve the world by coloring and protecting what matters. We take an integrated approach to the stakeholders we serve, and include sustainability, inclusion and community support among the key metrics we use to measure our success.

HOW WE DO IT

"THE RIGHT EXPERIENCE"

WHO WE BENEFIT

"OUR STAKEHOLDERS"

HOW WE ACT

"OUR VALUES"

HOW WE MEASURE

"OUR METRICS"

** ROS = Return on Sales

** RONAE = Return on Net Assets Employed

Customer	Value-Added	Industry Leading	Differentiated
Focused	Service and Expertise	Innovation	Distribution

Customers	Employees	Shareholders
Communities

Innovation

Performance

Integrity

Growth

People

Service

Quality

Sales	Improve	Drive	Drive Cash	Drive	Foster Inclusion	Support
Growth	ROS*	RONAE**	Generation	Sustainability	and Belonging	Communities

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Introduction	Product Blueprint	Environmental Footprint	Social Imprint	Governance and Ethics	Appendix

Awards and Accolades

Sherwin-Williams is proud of our business performance, workplace culture and sustainability practices. In 2023, we received several honors that reflect how deeply responsible business practices are rooted within our organization.

Product Blueprint		Environmental Footprint
FeRFA Environmental	Business Intelligence Group	Forbes®	USA TODAY®
Initiative Award	Sustainability Awards	Net Zero Leaders	America's Climate Leaders
FasTop® Multi	valPure® V70 Product of the Year

Social Imprint
Forbes®	America's Best Employers	HLPA	British Coatings Federation
World's Best Employers	for New Graduates	Top Employers Who Support the	Best in Class for Diversity & Inclusion
America's Best Large Employers	America's Best Employers	Hispanic/Latino Community
America's Best Employers	for Diversity	American Opportunity Index
for Women	America's Best Brands for	Top 100 Employers of Choice
	Social Impact

Governance and Ethics
Fortune®	Newsweek®	Brand Finance®	Retail Info Systems	360 Quadrants
World's Most	World's Most	United States' Most	Most Responsible Retailer	Top 16 Paints and
Admired Companies	Trustworthy Companies	Valuable Brands		Coatings Companies

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Introduction	Product Blueprint	Environmental Footprint	Social Imprint	Governance and Ethics	Appendix

How We Are Building on the Good

As an organization established to offer products that preserve and protect, sustainability is part of our history and rooted in all that we do. Our three sustainability pillars encompass the commitments, focus areas and goals that are most important to our Company:

Product Blueprint

Driving Sustainability Through Innovation Our Sustainability by Design program is

a signature effort to intentionally consider sustainability attributes and life cycle thinking, including circular principles, in our product innovation and development processes. Beyond making choices to reduce the environmental impact of our products, we are also elevating their many beneficial applications, such as extending the life of assets.

Environmental Footprint

Doing Our Part for the Planet

We are working to reduce environmental impact with a set of key goals to achieve across our operations by 2030. We use innovation and a continuous improvement approach toward reducing our carbon emissions, energy consumption and waste generation while expanding our renewable energy use.

Social Imprint

Elevating a Culture of Safety,

Belonging and Community

Our commitment to our people is reflected in our unwavering efforts to promote the safety, health and well-being of our people; foster a culture of belonging to drive employee engagement and performance while attracting, retaining, developing and progressing a diverse pipeline of talent that reflects the communities in which we operate.

These pillars are grounded in a foundation of Governance and Ethics. Our governance structure is designed to support broad engagement and appropriate oversight across the Company, including our sustainability initiatives.

Sherwin-Williams continually seeks to further embed sustainability within our business and value chain. We also take an integrated approach to the stakeholders we serve, seeking to meet the needs of our customers, create and maximize value for our shareholders and advance the well-being of communities.

We use materiality assessments to align our sustainability efforts with the expectations of both internal and external stakeholders. This assessment

process identified the following focus areas that have been incorporated into our sustainability framework:

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

We are in the process of undertaking a formal double materiality assessment to inform the next stage of our strategy, and in preparation for the reporting requirements of the European Union Corporate Sustainability Reporting Directive.

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Introduction	Product Blueprint	Environmental Footprint	Social Imprint	Governance and Ethics	Appendix

PRODUCT BLUEPRINT

Delivering

Innovative

Solutions

IN THIS SECTION:

Innovating Products With

Sustainability Attributes ______________ 10

Building on the Good

With Our Products _______________________ 12

Building on the Good

at Every Step _________________________ 13