Builders FirstSource, Inc.
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:220,521 KT CO2e/year
Scope 1 Emissions:156,447.33 KT CO2e/year
Scope 2 Emissions:64,073.84 KT CO2e/year
Renewable Energy Share:21% of grid electricity
Total Energy Consumption:826 GWh/year
Waste Generated:84,124.53 tons/year
ESG Focus Areas
- Customers
- Team Members
- Operations
- Communities
Environmental Achievements
- Saved the equivalent of over 1.5 million trees through sales of more efficient manufactured component products.
- Invested in fleet and facility upgrades, which enhanced energy efficiency.
- Reduced waste through automation in manufacturing processes.
- Converted to lower energy LED lighting.
- Introduced solar power at New Bedford, MA campus.
- Installed overhead fans to reduce air conditioning power usage.
- Installed truss plant grinders and worked with third-party vendors to repurpose and recycle lumber waste.
- Avoided 220,000 tons of CO2e with manufactured component products.
Social Achievements
- Invested in team member safety initiatives, including installing safety cameras in over 95% of all heavy- and medium-duty trucks.
- Delivered an industry-leading total recordable incident rate of 1.54, a year-over-year reduction of 30%.
- Redesigned and bolstered team member benefit offerings.
- Launched WEBUILD, a women-focused employee resource group.
- Supported local communities with over $4 million in charitable giving.
- Completed 20,000 professional development and leadership training classes.
- Achieved 80% favorability rating in team member engagement survey.
Governance Achievements
- Developed a formal Corporate Social Responsibility strategy.
- Published third annual Corporate Social Responsibility Report.
- Continued assessment of key CSR policies, including Responsible Supply Chain Policy and Code of Business Conduct and Ethics.
Climate Goals & Targets
Short-term Goals:
- Set Scope 1 and 2 emission reduction targets no later than 2025.
Environmental Challenges
- Adverse weather events could reduce or delay construction activity.
- Reputational risks from failing to meet ESG commitments.
- Regulatory risks from new governmental regulations relating to climate change.
Mitigation Strategies
- Regular evaluation of ways to reduce resource needs and environmental impacts.
- Monitoring changing regulatory requirements and other impacts to the business.
- Balancing operational efficiency with resilience through a diversified manufacturing and supplier base.
- Regular review and discussion of risk management topics among leadership.
Supply Chain Management
Responsible Procurement
- Supplier contracts reinforcing adherence to Code of Business Conduct and Ethics
- Expectation that suppliers operate according to highest ethical and legal principles
- Addressing forced labor, child labor, freedom of association and collective bargaining in Supplier Code of Conduct
Climate-Related Risks & Opportunities
Physical Risks
- Adverse weather events, natural disasters
Transition Risks
- Regulatory changes, market shifts
Opportunities
- Demand for energy-efficient homes
Reporting Standards
Frameworks Used: SASB Building Products & Furnishings standard, TCFD
Certifications: SBCA-QC/QA certification (Truss Manufacturing), Energy Star Certification (some Millwork plants)
Sustainable Products & Innovation
- Manufactured component products (roof and floor trusses, wall panels, READY-FRAME®)
- Energy Star® qualified windows and doors
- Low-GWP Styrofoam™ Brand XPS
Awards & Recognition
- 2022 VETS Indexes Employer Award
- MSCI ESG “A” rating
- Top Workplace Award in Dallas
- Six Comparably awards (Best Company Culture, Best Company Happiness, Best Company Leadership, Best Company for Diversity, Best Company for Women, Best CEOs for Women)
- VETS Indexes Employer 3-star company