Climate Change Data

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