Installed Building Products, Inc.

Climate Impact & Sustainability Data (2020, 2021, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:110,222 tCO2e (Scope 1 & 2)

Scope 1 Emissions:84,539 tCO2e

Scope 2 Emissions:9,359 tCO2e

Scope 3 Emissions:Not disclosed

Renewable Energy Share:30% (May 2021)

Total Energy Consumption:17.9 million kWh

Water Consumption:Not disclosed

Waste Generated:Not disclosed

Carbon Intensity:Not disclosed

ESG Focus Areas

Environment
Social
Governance

Environmental Achievements

Transitioned a large portion of electricity supply to a carbon-free energy source
Entered a national waste management program to increase recycling, reducing landfill waste
Reduced job site injuries by 17%

Social Achievements

Employee retention exceeding industry average due to programs like the Installed Building Products Foundation, longevity-based stock grant, and financial wellness program
Launched Safety Wanted 365 health and safety training program
Initiated DE&I initiative with a third-party consultant and regional committees

Governance Achievements

Established three standing committees (Audit, Compensation, Nominating and Corporate Governance) to assist the Board of Directors
Implemented a Code of Business Conduct and Ethics with a third-party compliance hotline

Climate Goals & Targets

Long-term Goals:

Not disclosed

Medium-term Goals:

Reduce by 50% carbon-producing electricity usage from 2020 baseline by 2030
Reduce by 50% HFC blowing agent use from 2020 baseline by 2030
Reduce by 50% mobile combustion emissions from 2020 baseline by 2030

Short-term Goals:

Not disclosed

Environmental Challenges

High Global Warming Potential of HFCs used in spray foam
Mobile combustion of fuel emitting 84,539 metric tons of CO2e in 2020
High electricity usage at AFT facility (32% of IBP's total electricity use in 2020)

Mitigation Strategies

Targeting 50% reduction in carbon-producing electricity usage by 2030
Targeting 50% reduction in HFC blowing agent use by 2030 as states adopt HFO alternatives
Targeting 50% reduction in mobile combustion emissions by 2030
Transitioned AFT facility to carbon-free electricity in May 2021

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

Assessment of vendors and suppliers to source products and services from minority and women-owned businesses

Climate-Related Risks & Opportunities

Physical Risks

Not disclosed

Transition Risks

Regulations phasing out HFCs

Opportunities

Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

Not disclosed

Not disclosed

Sustainable Products & Innovation

HFO spray foam

Awards & Recognition

Not disclosed

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:124,761 tCO2e/year (2021)

Scope 1 Emissions:117,000 tCO2e/year (2021)

Scope 2 Emissions:7,761 tCO2e/year (2021)

Total Energy Consumption:20.8 MWh/year (2021)

ESG Focus Areas

Environmental
Social
Governance

Environmental Achievements

Transitioned a portion of electricity needs to a carbon-free source
Entered into a national waste management program to increase recycling
CO2 emissions from spray foam applications decreased by approximately 19% while spray foam material use increased by 16%
Scope 1 CO2e metric tons per $1 million declined by 17.7% from the 2020 baseline
Scope 2 GHG emissions decreased 19.1% compared to the acquisition-updated 2020 baseline

Social Achievements

Implemented management training programs to address minority representation and gender income equality
Assessed vendors and suppliers to source from minority and women-owned businesses
Built a diverse hiring pipeline through HBCUs
Launched Positive Production Program videos to educate and encourage inclusion
Offered a language training program to remove communication hurdles
Implemented a multifaceted financial wellness program
Established a Financial Assistance Program providing up to $2,000 in assistance per employee annually
Provided $52,207 in financial assistance to employees impacted by Hurricane Ida

Governance Achievements

Created a new position of Chief Administrative and Sustainability Officer
Established three standing committees (Audit, Compensation & Human Capital, Nominating & Corporate Governance) to assist the Board
Maintained various ethics training programs

Climate Goals & Targets

Medium-term Goals:

Reduce by 50% carbon-producing electricity usage from 2020 baseline by 2030
Reduce by 50% HFC blowing agent use from 2020 baseline by 2030
Reduce by 50% mobile combustion emissions from 2020 baseline by 2030

Environmental Challenges

Reducing the company's carbon footprint beyond the benefits of its core insulation installation business
Transitioning to electric vehicles (EVs) due to limited suitable options on the market
Phasing out HFC blowing agents due to high Global Warming Potential

Mitigation Strategies

Exploring additional electricity sourcing options and using energy-efficient items
Actively discussing suitable EV alternatives with vehicle manufacturers
Supporting the industry transition to HFO spray foam

Supply Chain Management

Responsible Procurement

Supplier Code of Conduct
Assessment of suppliers to source from minority and women-owned businesses

Climate-Related Risks & Opportunities

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:133,109 tCO2e/year (2022)

Scope 1 Emissions:123,675 tCO2e/year (2022)

Scope 2 Emissions:9,434 tCO2e/year (2022)

Scope 3 Emissions:Not disclosed

Renewable Energy Share:Not disclosed

Total Energy Consumption:22.7 million kWh/year (2022)

Water Consumption:Not disclosed

Waste Generated:49,500 tons/year (waste paper and cardboard) + 2.8 million pounds (scrap fiberglass)

Carbon Intensity:Not disclosed

ESG Focus Areas

Climate Change
Employee Well-being
Community Investment

Environmental Achievements

Reduced Greenhouse Gas Emissions from spray foam installation by more than 30% compared to the prior year
Diverted 2.8 million pounds of scrap fiberglass insulation and 49,500 tons of waste paper and cardboard from landfills
Transitioned electricity supply for cellulose manufacturing facility to a carbon-free source

Social Achievements

Improved severe injury incident rate by approximately 27% from 2021 to less than 0.1 per 100 full-time employees
Committed $2.4 million in scholarships to support 230 IBP employees and family members
Provided over $280,000 in grants to help employees overcome difficult financial situations
Sponsored a financial wellness program
Focused on employee wellbeing and mental health through the Positive Production video series

Governance Achievements

Established a climate strategy reviewed quarterly by the leadership team and Board
Developing a matrix providing quantitative and qualitative information about climate-related risks

Climate Goals & Targets

Long-term Goals:

Not disclosed

Medium-term Goals:

Reduce mobile combustion emissions by 50% by 2030
Reduce carbon-producing electricity usage by 50% by 2030
Reduce HFC blowing agent use by 50% by 2030

Short-term Goals:

Not disclosed

Environmental Challenges

High Global Warming Potential of HFCs used in spray foam
Lack of suitable electric vehicles to replace fleet of box trucks
Facilities located in areas with high baseline water stress

Mitigation Strategies

Committed to reducing CO2 emissions by 50% per $1 million of spray foam revenue by transitioning to HFO blowing agents
Active discussions with vehicle manufacturers regarding suitable EV alternatives
Focus on conservation and responsible water usage throughout facilities

Supply Chain Management

Supplier Audits: Periodic questionnaires and audit requests

Responsible Procurement

Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

Natural disasters (e.g., Hurricane Ian)

Transition Risks

Regulatory changes related to HFCs and other emissions

Opportunities

Increased demand for energy-efficient insulation

Reporting Standards

Frameworks Used: GHG Protocol

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

Not disclosed

Not disclosed

Sustainable Products & Innovation

HFO spray foam

Awards & Recognition

Not disclosed

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:138,986 tCO2e (2023)

Scope 1 Emissions:129,262 tCO2e (2023)

Scope 2 Emissions:9,724 tCO2e (2023)

Renewable Energy Share:35% of electricity usage in 2023

Total Energy Consumption:24.3 million kWh (2023)

Water Consumption:4.7 gallons per square foot (average for 50% of locations)

Waste Generated:Reduced by almost 50% through improved recycling

ESG Focus Areas

Climate Change
Human Capital
Philanthropy

Environmental Achievements

Scope 1 and Scope 2 Greenhouse Gas (GHG) emissions decreased a combined 14.4% compared to the acquisition-updated 2020 baseline year.
Scope 1 GHG emissions decreased 12.8%, or 17,800 metric CO2e, compared to the acquisition-updated 2020 baseline.
Fugitive emissions from blowing agents used in spray foam installations declined 18,299 metric CO2e compared to the adjusted 2020 baseline, a reduction of approximately 65%.
Scope 2 GHG emissions decreased 37%, or 3,718 metric CO2e, compared to the acquisition-updated 2020 baseline.
Carbon-producing electricity kWh per average square footage of facilities declined to 3.4 in 2023, compared to 5.5 in the 2020 baseline.
Reduced landfill waste through increased recycling programs.
Diverted over 120,000 metric tons of CO2 emissions from the atmosphere using recycled paper.
Transitioned AFT manufacturing facility to carbon-free electricity supply.

Social Achievements

Granted $51,681 in 2023 to help employees experiencing financial hardship.
Awarded over $1 million in scholarships to employees and their families.
14% decrease in severe incidents from 2022 to 2023, with only seven severe incidents in 2023.
Zero employee and contractor fatalities in 2020, 2021, 2022, and 2023.
Implemented Positive Production Program focused on employee well-being.

Governance Achievements

Established strong internal policies and Supplier Code of Conduct to ensure ethical treatment of all individuals.
Maintains a third-party ethics hotline for reporting misconduct.
No monetary losses from legal proceedings related to bribery, corruption, or anticompetitive practices.
Formalizing climate-related governance, including periodic climate risk-specific trainings for Board members and executives.

Climate Goals & Targets

Medium-term Goals:

Reduce carbon-producing electricity usage by 50% from 2020 baseline by 2030
Reduce market-based Scope 2 GHG emissions by 50% by 2030
Reduce mobile combustion emissions by 50% from 2020 baseline by 2030
Reduce Scope 1 GHG emissions by 50% by 2030
Reduce HFC blowing agent used by 50% from 2020 baseline by 2030

Environmental Challenges

Transitioning to electric vehicles (EVs) for fleet due to limited suitable options on the market.
Managing climate-related risks, including those related to water stress in some facility locations.

Mitigation Strategies

Active discussions with vehicle manufacturers regarding the availability of suitable EV alternatives.
Formalizing a climate risk management framework to identify and manage climate-related risks.
Focus on conservation and responsible water usage throughout facilities.