Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• People
• Environment
• Products
• Community
• Climate Change
• Diversity, Equity, and Inclusion
• Sustainable Forest Management

Environmental Achievements

• 2020 Scope 1 GHG emissions decreased by 19% compared to 2019.
• 2020 Scope 2 emissions decreased by 3% compared to 2019.
• LP® SmartSide® Trim & Siding is a carbon-negative product.
• Uses more than 99% of the fiber harvested, either in products or as an alternative thermal energy source.
• Nearly 80% of thermal energy used comes from renewable energy (wood biomass residuals).

Social Achievements

• Released the LP DEI Pledge for Action, prioritizing gender and racial diversity, equity, and inclusion.
• Established a DEI Task Force to develop action plans.
• Awarded more than $2 million in scholarships to more than 400 children of employees since 2001.
• LP Cares Fund supported more than 500 employees and their families since 2014.
• Donated more than $1 million in products and financial aid after Hurricanes Harvey and Florence and tornadoes in Middle Tennessee.

Governance Achievements

• Formalization of ESG Board oversight established through LP’s Governance and Corporate Responsibility Committee in 2020.
• Launched a new ESG-focused section of its website in 2021.
• Aligned with SASB’s Building Products and Furnishings and Forestry Management guidelines.

Climate Goals & Targets

Environmental Challenges

• Quantifying the company's carbon footprint across Scopes 1, 2, and 3.
• Managing climate change risks and opportunities.
• Addressing data limitations for certain SASB material topics.

Mitigation Strategies

• Working to quantify contributions to greenhouse gas (GHG) emissions using globally recognized protocols.
• Undertaking a climate change risk and opportunity assessment using the TCFD framework.
• Planning to publish LP’s first TCFD report in 2022.
• Collecting information on recycling and recovery activities for end-of-life materials for future disclosures.

Supply Chain Management

Responsible Procurement

• LP Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: SFI®, PEFC®

Sustainable Products & Innovation

• LP® SmartSide® Trim & Siding
• LP® TechShield®

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Community Engagement
• Sustainable Forest Management
• Product Sustainability
• Employee Well-being
• Supply Chain Responsibility

Environmental Achievements

• Released eight environmental product declarations (EPDs) for products representing approximately 75% of North American net sales, all eight products are carbon negative.
• Decreased Scope 1 and Scope 2 greenhouse gas emissions intensity by net sales by approximately 41% since 2019.
• 100% of the wood fiber sourced is vetted through stringent forest certification standards.
• Obtained third-party limited assurance for Scope 1 and Scope 2 greenhouse gas emissions.
• Minimized water use through recycling and reuse at several facilities.
• Durable products offer sustainable alternatives to nonrenewable, energy-intensive options.

Social Achievements

• Achieved an industry-leading total incident rate of 0.5.
• Received the Safest Company Award from APA–The Engineered Wood Association for the 11th time in 15 years.
• Enhanced various health and welfare benefits while reducing medical premiums.
• Implemented Building a Better LP inclusivity program, with over 5,000 hours of training.
• Provided free and unlimited virtual counseling to 100% of U.S. team members.
• Celebrated 50 years of the LP Foundation, donating over $22 million to communities.
• Donated nearly $1 million to over 100 nonprofit organizations in 2023.

Governance Achievements

• Established ESG oversight structure with Board of Directors, ESG Executive Council, and ESG Task Force.
• Administered annual Code of Business Conduct and Ethics training to at least 90% of LP team members.
• Conducted annual anti-bribery training for at least 90% of team members involved in finance, sales, marketing, and procurement.
• Implemented data integrity processes to capture and communicate accurate ESG information.
• Enhanced cybersecurity and data privacy programs.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events (extreme weather)
• Potential increased costs from carbon pricing mechanisms.
• Potential increased costs in sourcing wood fiber due to increased demand for biomass and carbon credits.
• Potential impacts on operations and value chain from extreme weather events.

Mitigation Strategies

• Developing climate vulnerability assessments for forestry operations.
• Developing robust inventories of wood fiber.
• Building and updating continuity plans for facilities.
• Diversifying supplier base.
• Engaging critical suppliers to understand their business continuity plans.
• Evaluating alternative wood species.
• Monitoring and anticipating changes in climate policy and regulation.
• Focusing on operational efficiency and reducing emissions.

Supply Chain Management

Supplier Audits: Regular audits to evaluate suppliers and their operations; validating ownership, certifications, and training credentials; examining harvest management plans.

Responsible Procurement

• Adherence to LP Supplier Code of Conduct
• Thorough vetting of suppliers
• Ongoing communication with existing suppliers
• Requirement for suppliers to establish and maintain processes to adhere to the Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Shorter logging seasons

Transition Risks

• Regulatory/policy changes (carbon pricing)
• Increased costs in sourcing wood fiber

Opportunities

• Increased demand for modern solid biomass
• Growth in market due to severe weather events

Reporting Standards

Frameworks Used: SASB (Building Products and Furnishings and Forestry Management industries), UN Sustainable Development Goals (SDGs)

Certifications: SFI, PEFC

Third-party Assurance: Deloitte & Touche LLP (limited assurance for Scope 1 and Scope 2 emissions)

UN Sustainable Development Goals

• 5
• 9
• 11
• 12
• 13
• 15

LP contributes most significantly to SDGs 5, 9, 11, 12, 13, and 15.

Sustainable Products & Innovation

• LP® SmartSide® Pebbled Stucco Panel Siding
• LP® TechShield® Radiant Barrier
• LP NovaCore® Thermal Insulated Sheathing

Awards & Recognition

• Newsweek’s America’s Most Responsible Companies (2024)
• BUILD Magazine’s Best High-Performance Sustainable Building Products Manufacturer – USA
• BUILD Magazine’s Building Products Environmental Stewardship Leaders – USA
• Green Builder Media’s 2024 Sustainable Brand Leader Awards