Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Environmental Protection
• Community Investment

Environmental Achievements

• High Pressure Laminating plants achieved >10% reduction in emissions intensity since 2012.
• MDF facility in Gympie, Australia, and particle board plants in Dardanup, Australia and Taupo, New Zealand achieved >10% reduction in emissions intensity since 2012.
• Overall group CO2 emissions reduced by 1.5% (19,683 tonnes) compared to 2014.
• Laminex NZ turned wood waste into energy bricks, saving thousands of tonnes of landfill waste and greenhouse gas emissions.
• CTCI Ltd installed a 95kW solar array, providing 17% of site electricity and reducing CO2 emissions by 26 tonnes.
• Rocla Emu Plains developed a new oil release system reducing mould oil consumption by 80%.

Social Achievements

• Youth employment strategy helped over 250 young New Zealanders into work.
• Became New Zealand's first construction company to achieve Rainbow Tick Certification.
• Launched a new leadership programme for Māori employees.
• Supported the Auckland Pride Festival 2016.
• Partnered with Te Puni Kōkiri to offer the Whakatupu leadership programme for Māori employees.
• Employee Educational Fund (EEF) provided educational opportunities for employees, spouses and dependents.
• Translated the Fletcher Building careers website into 11 languages.

Governance Achievements

• Formed a new board committee dedicated to safety, health, environment and sustainability governance in 2015.

Climate Goals & Targets

Environmental Challenges

• Unacceptable number of serious injuries (19 serious injuries and two fatalities) in the 2016 financial year.
• Inefficiency of stop-start operations due to subdued market demand in some plants, marginally increasing the composite intensity index.

Mitigation Strategies

• Undertaken investigations into all serious incidents, sharing learnings and implementing improvements.
• Creating and distributing EHS standards to provide clarity of minimum expectations.
• Established a risk management standard and an assurance standard to promote consistency in managing risk and ensuring EHS standards are met.

Supply Chain Management

Responsible Procurement

• Sourced polymer and additives from certified Best Environmental Practice suppliers (Iplex).

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Energy bricks from wood waste (Laminex NZ)
• Electrostatic oil release system (Rocla)

Awards & Recognition

• Graham Darlow awarded Executive of the Year at the 2016 New Zealand Safeguard Workplace Health and Safety Awards.
• Laminex NZ awarded 'Commended' at EECA Awards for energy brick innovation.

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Employee Engagement
• Environmental Impact
• Diversity and Inclusion
• Community Investment
• Sustainable Products
• Energy Efficiency
• Waste Reduction
• Water Efficiency
• Responsible Procurement
• Ethical Conduct
• Governance

Environmental Achievements

• Reduced melamine resin waste at Formica North Shields by over 80%
• Reduced waste water and solid waste by 95% at Formica JiuJiang factory in China
• Reduced carbon emissions by more than 650 tonnes through co-location of PlaceMakers and Mico and energy efficient lighting
• Introduced biofuel wood waste into Golden Bay Cement furnace to reduce reliance on fossil fuels
• Commissioned an energy-efficient coastal freighter for Golden Bay Cement to reduce road transport
• Implemented dust mitigation measures at GBC Winstone Yaldhurst Quarry
• Reduced water usage at Pacific Coil Coaters by 41%
• Achieved a record low scrap rate at Northern Iron and Brass Foundry

Social Achievements

• Launched a new safety management framework called 'Protect'
• Achieved a record 92.1% participation rate in the FBuSay employee engagement survey
• Increased employee engagement score by 1 percentage point to 67%
• Improved diversity and inclusion initiatives, including Rainbow Tick certification
• Supported youth training and development programs
• Provided work for former prisoners through partnership with Serco and PlaceMakers
• Addressed driver shortage through training and recruitment initiatives
• Employed local people for Red Beach housing development
• Supported community projects such as floodlighting for Mountain Raiders BMX club
• Participated in Foodbank Australia volunteer program

Governance Achievements

• Adopted a Code of Conduct
• Established an executive Environmental, Health and Safety (EHS) Council
• Implemented a sustainable procurement policy

Climate Goals & Targets

Environmental Challenges

• High number of workplace injuries
• Increased greenhouse gas emissions due to increased manufacturing output
• Dust concerns at Yaldhurst Quarry
• Driver shortage at Winstone Transport
• Melamine resin waste at Formica North Shields
• Waste water and solid waste at Formica JiuJiang

Mitigation Strategies

• Launched 'Protect' safety management framework
• Implemented energy efficiency initiatives across businesses
• Implemented dust mitigation measures at Yaldhurst Quarry
• Streamlined recruitment process and initiated driver training program at Winstone Transport
• Installed more efficient surface treating machine and direct feed system at Formica North Shields
• Implemented new cleaning method at Formica JiuJiang to reduce waste water and solid waste

Supply Chain Management

Responsible Procurement

• Sustainable procurement policy

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Eco-friendly leather veneer (Formica)
• Declare-labelled concrete (Firth)
• Off-site panelised construction

Awards & Recognition

• 2016 Excellence Awards
• Health and Safety Practitioner of the Year (Sarah McDonald)
• Rainbow Tick certification

Environmental Metrics

ESG Focus Areas

• Safety
• People Engagement
• Customer Experience
• Sustainability
• Decarbonisation
• Waste Reduction
• Circular Economy
• Inclusion and Diversity
• Community Engagement

Environmental Achievements

• Combined Scope 1 and 2 emissions of 1.021 Mt CO2e in FY23, 4% lower than FY22, and 16% lower than the FY18 baseline year.
• ~100,000 tonnes of waste diverted from landfill by Golden Bay®.
• 85% of concrete is lower carbon.
• 27% less embodied carbon in EcoSure® cement than the ISC baseline.
• 13% reduction in CO2e emissions per square metre compared with the Auckland plant (Winstone Wallboards® Tauriko plant).
• Upward of 10% of total board volume can use recycled gypsum (Winstone Wallboards® Tauriko plant).
• Zero manufacturing trade waste (Winstone Wallboards® Tauriko plant).

Social Achievements

• 12% improvement in Total Recordable Injury Frequency Rate (TRIFR) from 3.4 to 3.1.
• 90% of sites were injury free.
• Employee Net Promoter Score (eNPS) of 26.
• Customer Net Promoter Score (NPS) of 40.
• 296 more women placed in operational roles.
• 36 more women leading operational teams (15.7% of operational leaders are now female).
• 90 women participated in leadership mentoring.
• Launched BUILDhers, the first all-female build.

Governance Achievements

• Appointed Sandra Dodds as a non-executive director.
• Increased the minimum share ownership by directors.
• Reduced the Nominations Committee to three members.
• Introduced Gender Affirmation Leave and Transitioning at Work Guidelines.
• Launched first Reconciliation Action Plan (Australia).

Climate Goals & Targets

Environmental Challenges

• Softer residential markets in New Zealand and Australia.
• Major New Zealand weather events.
• Additional construction provisions relating to the New Zealand International Convention Centre and Hobson Street Hotel (NZICC).
• Product quality complaints in Western Australia relating to Iplex Australia Pro-fit pipes.
• Input cost inflation.
• Extended consenting timelines and delays in apartment construction.

Mitigation Strategies

• Strong customer performance, cost control, and pricing disciplines.
• $800 million investment program.
• Focus on higher-margin segments.
• A$15 million fund to provide financial support to builders and plumbers (Iplex Australia).
• Investment in improved customer service and solutions.
• Optimising house typologies in proven locations.

Supply Chain Management

Supplier Audits: Engaged with suppliers covering 65% of Scope 3 emissions.

Responsible Procurement

• Working directly with highest emitters in supply chain to quantify emissions and understand reduction pathways.
• Free access to CDP supplier engagement programme for 40 suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, flooding

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: Rainbow Tick

Third-party Assurance: Toitū Envirocare

Sustainable Products & Innovation

• EcoSure® cement
• EcoMix® concrete
• Pink® Superbatts® insulation
• LowCO homes

Awards & Recognition

• WasteMINZ National Excellence Award
• Fletcher Building Excellence Awards

Environmental Metrics

ESG Focus Areas

• Safety
• Customer
• People
• Sustainability
• Innovation & Growth

Environmental Achievements

• 19% reduction in combined Scope 1 and Scope 2 emissions from FY18 baseline year
• 74% of product revenue from products with sustainability certifications in manufacturing businesses
• 87% waste diverted from landfill

Social Achievements

• One serious injury (compared to three in FY23)
• Employee Net Promoter Score (eNPS) of 35 (6-point uplift from FY23)
• 23% of women in leadership (up from 21% in FY23), with 236 more women in leadership roles since FY23
• Completion of BUILDhers™ project, a house built predominantly by women

Governance Achievements

• Established additional subcommittees to monitor Western Australia plumbing issues and Construction business and legacy projects
• Regular engagement with a broad range of shareholders to receive and discuss their feedback
• Appointment of Andrew Reding as Group Chief Executive Officer and Managing Director

Climate Goals & Targets

Environmental Challenges

• Higher interest rates and inflation
• Declined building market activity in New Zealand and Australia
• Ongoing Western Australia plumbing issues
• $180 million of additional provisions on legacy Construction projects
• $117 million non-cash impairment and write-down in Higgins® businesses

Mitigation Strategies

• Disciplined management of cost, working capital, cash, capital expenditure and debt
• Right-sizing of businesses
• Developing and implementing an industry solution for Western Australia plumbing issues
• Progress on New Zealand International Convention Centre and Hobson Street Hotel project
• Settlement of Contract Works Insurance claims
• Establishing additional subcommittees to monitor challenges
• Divestment of Tradelink® operations

Supply Chain Management

Responsible Procurement

• Working with supply chain on emissions reduction

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Toitū Envirocare

Sustainable Products & Innovation

• LowCO™ homes
• Pink® Superbatts® products

Awards & Recognition

• Homestar 10 rating for LowCO™ homes
• Silver accreditation for Pūhoi to Warkworth motorway from Greenroads Sustainability Transport Council