Griffon Corporation

Climate Impact & Sustainability Data (2024)

Approximately seventy percent of the steel used in HBP’s garage doors is recycled steel.
Bags used to pack AMES’ Kelkay aggregate products in the UK are made from plant-based materials, and not from petroleum.
AMES is a member of the Appalachian Hardwood Manufacturers Association, which provides sustainable hardwoods for AMES tools, and is committed to purchasing hardwoods through the Sustainable Forestry Initiative.
The AMES Companies use a box-on-demand system that reduces packaging size.

Involvement in more than 100 charitable and community organizations, including Habitat for Humanity, Boys and Girls Clubs, the Home Depot Foundation, the Lowe’s Foundation, and the American Cancer Society.
Investment of millions of dollars in capital improvements relating to employee safety and health, including upgrades to loading and unloading operations, ergonomic improvements, machine guarding and elimination of high-risk repetitive jobs through robotics.
Investment of over one million dollars in improvements to employee welfare facilities, such as break areas and cafeterias.
U.S. employees own approximately nine percent of Griffon stock through the Employee Stock Ownership Plan.
Variety of outreach programs to recruit new employees at all levels, involving high schools, vocational schools, colleges, and universities, often including internships.
Variety of onboarding programs, onsite job training programs, leadership development programs, and tuition reimbursement and education assistance policies.

Subscription to the United Nations Global Compact (UNGC).
Publication of inaugural annual ESG report in August 2022 and subsequent annual ESG report in November 2023.
Adoption of a Supplier Code of Conduct (SCC) in 2023, binding suppliers to the same ESG goals and criteria as Griffon.
Code of Business Ethics and Conduct requiring employees to conduct business to the highest ethical standards, prohibiting bribery, human trafficking, and the use of conflict minerals.
Corporate Governance Guidelines published on the website, requiring a majority of directors to be independent (currently all directors except the CEO are independent).

Medium-term Goals:

30 percent reduction across six key metrics by 2030: carbon emissions, air emissions, water consumption, hazardous waste generated, lost time rates, and recordable injury rates.

Challenging residential and commercial construction markets.
Reduced consumer demand in North America.
Increased competition and pricing pressures.
Reliance on a limited number of third-party suppliers and manufacturers.
Fluctuations in raw material prices.
Risks from sourcing from international locations, especially China (tariffs, forced labor concerns).
Potential for future pandemics.
Seasonal variations and uncertain weather patterns.
Potential for strikes or work stoppages by unionized employees.
Cybersecurity risks.
Difficulties in implementing acquisition growth strategy.
Risks related to indebtedness.
Potential for dilution of issued and outstanding common stock.
Risks related to disruption of primary manufacturing facilities.
Manufacturing capacity constraints or increased manufacturing costs.
Failure to develop and maintain leading brands.
Potential for impairment charges for goodwill and indefinite-lived intangible assets.
Failure of subcontractors or suppliers to perform obligations.
Need for continual product improvement, new product design and sales, and investment in research and development.
Risks relating to non-U.S. sales and operations, including economic and political conditions and exchange rate fluctuations.
Exposure to product liability and warranty claims.
Exposure to claims and liabilities under environmental laws and regulations.
Exposure to changes in income tax laws and regulations.
Potential for disruptive actions by activist shareholders.

Global sourcing expansion initiative to improve flexibility and profitability.
Investments in productivity, technology, and innovation.
Expansion of Clopay’s manufacturing capacity and addition of advanced manufacturing equipment.
Deployment of a global business intelligence system.
Development of multiple suppliers outside of China.
Implementation of updated compliance measures to address forced labor concerns.
Continuous improvement of IT security practices.
Active measures to mitigate cybersecurity risks.
Ongoing share repurchase program.
Capital allocation strategy to deliver long-term value to shareholders.
Focus on delivering shareholder value while maintaining a strong balance sheet.
Active protection and enforcement of proprietary rights.
Regularly improving technology and employing existing technologies in new ways.
Maintenance of various insurance programs to transfer risk.
Accrual for claim exposures that are probable of occurrence and can be reasonably estimated.
Continuous improvement of existing products and development of new products to satisfy customer needs.
Strategic partnerships with customers for product and technological developments.
Ongoing communications with all shareholders, including activist shareholders.

Frameworks Used: UNGC, SASB

Clopay’s national multimedia advertising campaign named best in the industry in 2024 by the Door and Access Systems Manufacturer’s Association (DASMA).
VertiStack Avante aluminum and glass door named ‘Hottest New Product’ at the International Door Association Expo, recognized as a Merchandise Vice President’s Top 3 Product at The Home Depot’s annual product walk, and earned an Honorable Mention for Architecture MasterPrize™ (AMP) and an Architizer A+ Awards Special Mention.