The AZEK Company
Climate Impact & Sustainability Data (2022-10 to 2023-09)
Reporting Period: 2022-10 to 2023-09
Environmental Metrics
Total Carbon Emissions:788,219 tCO₂e (location-based); 708,405 tCO₂e (market-based)
Scope 1 Emissions:13,894 tCO2e
Scope 2 Emissions:80,320 tCO2e (location-based); 708,405 tCO2e (market-based)
Scope 3 Emissions:694,006 tCO2e
Renewable Energy Share:Majority of recycling and manufacturing facilities covered by emissions-free energy contracts
Total Energy Consumption:880,472 gigajoules
Water Consumption:133 million gallons withdrawn, 97% reused annually in select facilities
Waste Generated:Approximately 420 million pounds of scrap and waste incorporated into products in fiscal 2023
Carbon Intensity:Decreased by 44% between fiscal 2019 and fiscal 2023
ESG Focus Areas
- Environmental Sustainability
- Social Impact
- Corporate Governance
Environmental Achievements
- Decreased carbon intensity by 44% between fiscal 2019 and fiscal 2023
- Incorporated approximately 420 million pounds of scrap and waste into products in fiscal 2023
- Achieved zero waste to landfill certification for the TimberTech Championship
- Increased recycled content in TimberTech Composite decking to ~85%, TimberTech Advanced PVC decking to ~60%, and AZEK Exteriors Trim to ~30%
- TimberTech decking outperforms wood alternatives in life cycle assessments
Social Achievements
- Achieved 79 out of 100 in employee engagement scores in 2023
- Improved safety performance by approximately 21% in fiscal 2023 vs. fiscal 2019
- Launched three new Employee Resource Groups
- Launched AZEK Star employee recognition initiative
- Launched AZEK Accelerated Leadership Development Program
Governance Achievements
- Achieved ~56% board diversity and ~67% executive diversity
- Dedicated to aligning with investment community and public company best practices
- ESG goals are a component of individual performance under the 2023 management annual incentive plan
Climate Goals & Targets
Long-term Goals:
- Use one billion pounds of recycled material annually
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Not disclosed
Environmental Challenges
- Climate change impacts (extreme weather, wildfires)
- Regulatory changes
- Maintaining supply chain sustainability
- Scope 3 emissions
Mitigation Strategies
- Investing in R&D for sustainable products
- Expanding recycling capabilities
- Improving energy efficiency
- Sourcing renewable energy
- Engaging with suppliers on sustainability
- Developing science-based near-term emissions reduction targets
Supply Chain Management
Supplier Audits: On-site audits of key new suppliers, including all international suppliers
Responsible Procurement
- Supplier Code of Conduct
- Policy on Human Rights
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Wildfires
Transition Risks
- Regulatory changes
- Technological advancements
- Changing consumer preferences
- Reputational risk
Opportunities
- Increased demand for sustainable products
- Demand for fire-resistant materials
- Waste reduction and recycling
- Enhanced operational resilience
Reporting Standards
Frameworks Used: UNGC, UNSDGs, TCFD, SASB
Certifications: GREENGUARD Gold, LEED Gold (HQ)
Third-party Assurance: Industrial Ecology Consultants (GHG emissions)
UN Sustainable Development Goals
- Goal 6 (Clean Water and Sanitation)
- Goal 7 (Affordable and Clean Energy)
- Goal 8 (Decent Work and Economic Growth)
- Goal 9 (Industry, Innovation, and Infrastructure)
- Goal 11 (Sustainable Cities and Communities)
- Goal 12 (Responsible Consumption and Production)
- Goal 13 (Climate Action)
- Goal 15 (Life on Land)
See page 17 for details
Sustainable Products & Innovation
- TimberTech Advanced PVC decking
- AZEK Exteriors Trim
- TimberTech Composite decking
Awards & Recognition
- America’s Climate Leaders (USA Today)
- One of America’s Most Responsible Companies (Newsweek)
- Top Workplace (Chicago Tribune)
- Best Company to Work For (U.S. News and World Report)