Climate Change Data

Fortune Brands Innovations, Inc.

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

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:291,026 tCO2e/year (Global)
Scope 1 Emissions:70,923 tCO2e/year (Global)
Scope 2 Emissions:220,103 tCO2e/year (Global)
Renewable Energy Share:0%
Total Energy Consumption:3.25 million GJ/year (Global)
Water Consumption:262 million gallons/year (Global)
Waste Generated:289.9 thousand tons/year (Global)
Carbon Intensity:3.80 tCO2e/unit net global sales (2021)

ESG Focus Areas

  • Responsible Products
  • Design & Manufacturing with Sustainability in Mind
  • Operating Efficiently
  • Combating Climate Change
  • Associate Safety & Wellbeing
  • Advancing Diversity, Equity & Inclusion (DEI)
  • Our Communities
  • Responsible Sourcing
  • Strong Governance & Ethics

Environmental Achievements

  • Set goals to reduce absolute Scope 1 and 2 carbon emissions by 30% by 2030 and offset 50% of electricity usage with renewable sources by 2030
  • Reported global environmental data for the first time
  • Invested in new software and systems to improve environmental data collection

Social Achievements

  • Maintained best-in-class safety records
  • Increased representation at highest levels in Board and Leadership Team
  • Advanced Diversity, Equity & Inclusion with a comprehensive strategy
  • Conducted first global employee engagement survey

Governance Achievements

  • Re-evaluated and aligned key ESG focus areas with SASB and TCFD reporting frameworks
  • Established formal ESG Steering Committee reporting to the CEO

Climate Goals & Targets

Medium-term Goals:
  • Reduce absolute Scope 1 and 2 carbon emissions by 30% by 2030
  • Offset 50% of electricity usage with renewable sources by 2030

Environmental Challenges

  • Acute physical risks to operations and supply chains due to severe weather
  • Increased insurance premiums due to climate change
  • Market risks related to consumer demand for sustainable products
  • Regulatory changes related to environmental protection
  • Reputational risks related to climate change
Mitigation Strategies
  • Operational contingency plans, alternate suppliers, and insurance
  • Climate-related considerations in capital expense requests
  • Derivative contracts and commodity swaps to manage commodity price volatility
  • Development and introduction of sustainable products
  • Improved ESG disclosures and commitment to sustainability

Supply Chain Management

Supplier Audits: Risk-based approach, audits conducted by full-time MasterBrand Cabinets auditors in high-risk locations

Responsible Procurement
  • Supplier Code of Conduct
  • Lacey Act compliance
  • CITES guidance (for cabinets)

Climate-Related Risks & Opportunities

Physical Risks
  • Severe weather events
  • Increased insurance premiums
Transition Risks
  • Market shifts in consumer demand
  • Regulatory changes
Opportunities
  • Increased demand for sustainable products
  • Tax incentives for sustainable products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Sustainable Products & Innovation

  • Moen Smart Water Network
  • Nebia by Moen
  • Fiberon PE composite decking
  • Therma-Tru energy-efficient doors

Awards & Recognition

  • International SOS Foundation Duty of Care award (COVID-19 Agility & Response)
  • Newsweek’s 2022 list of America’s Most Responsible Companies

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:128,017 tCO2e/year
Scope 1 Emissions:27,590 tCO2e/year
Scope 2 Emissions:100,427 tCO2e/year
Renewable Energy Share:Negligible
Total Energy Consumption:1.48 million GJ/year
Water Consumption:197.3 million gallons/year
Waste Generated:65.4 thousand tons/year
Carbon Intensity:2.711 metric tons of CO2 / Unit net global sales (x10-5) in 2022

ESG Focus Areas

  • Associate Safety
  • Advancing DEI
  • Climate
  • Efficient Operations
  • Environmental & Social Impact of Products
  • Strong Governance and Ethics, including Responsible Sourcing

Environmental Achievements

  • Installed solar panels at Changshu, China and Pine Grove, Pennsylvania facilities.
  • Fiberon plants utilize a closed-loop water system, saving nearly 3.5 billion gallons of water annually.
  • Ten manufacturing and distribution center sites achieved a recycling rate of 75% or better.

Social Achievements

  • Improved key safety metrics.
  • Expanded Employee Resource Groups to six.
  • Achieved meaningful DEI associate representation goals, ahead of plan.
  • Provided associate volunteer opportunities.

Governance Achievements

  • Embedded sustainability factors into Capital Expense Request and Enterprise Risk Management processes.
  • Expanded Board oversight of ESG to the Nominating, Environmental, Social and Governance (NESG) Committee.
  • First submission to CDP climate survey.

Climate Goals & Targets

Medium-term Goals:
  • Reduce absolute Scope 1 and 2 carbon emissions by 30% by 2030.
  • Offset 50% of electricity usage with renewable sources by 2030.

Environmental Challenges

  • Acute physical risk to operations and supply chains due to severe weather events.
  • Increased insurance premiums for facilities in areas prone to severe weather.
  • Meeting growing consumer demand for sustainable products.
Mitigation Strategies
  • Operational contingency plans, including alternate suppliers and production distribution.
  • Climate-related considerations in facility location decisions.
  • Investing in new sustainable products and expanding offerings with environmentally friendly attributes.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Severe weather events
  • Increased insurance premiums
Transition Risks
  • Market shifts
  • Regulatory changes
Opportunities
  • Growing demand for sustainable products
  • Tax incentives for sustainable products

Reporting Standards

Frameworks Used: TCFD, SASB

Certifications: ISO, OHSAS

Sustainable Products & Innovation

  • Moen Smart Water Network
  • Fiberon PE composite decking and cladding
  • Therma-Tru energy-efficient doors

Awards & Recognition

  • Newsweek’s America’s Most Responsible Companies (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:120,634 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:24,432 tCO2e/year
Scope 2 Emissions:96,202 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:0.55%
Total Energy Consumption:1.38 million GJ/year
Water Consumption:176.6 million gallons/year
Waste Generated:42.9 thousand U.S. tons/year
Carbon Intensity:2.61 metric tons of CO2 / Unit net global sales (x10-5) (2023)

ESG Focus Areas

  • Climate
  • Efficient Operations
  • Environmental Impact of Products
  • Associate Safety
  • Advancing Diversity, Equity and Inclusion
  • Social Impact of Products
  • Strong Governance and Ethics
  • Responsible Sourcing

Environmental Achievements

  • Reduced total energy consumed from 1.57 million GJ in 2021 to 1.38 million GJ in 2023
  • Reduced total water withdrawn from 225.7 million gallons in 2021 to 176.6 million gallons in 2023
  • Achieved a recycling rate of 75% or better at ten manufacturing and distribution center sites in 2023
  • Three Fortune Brands sites using renewable energy from on-premises solar power panels as of 2024
  • Moen products helped save an estimated 257 billion gallons of water through 2023
  • 750 U.S. tons of ocean plastic repurposed for use in Moen products through 2023

Social Achievements

  • Achieved a 2023 total recordable incident rate (TRIR) of less than 1.0, excluding businesses acquired in 2023
  • Launched new Employee Resource Groups (ERGs)
  • Women make up 50% of leadership team and 44% of the Board
  • Invested more than $200 million toward associate health and well-being programs in 2023
  • Year-over-year improvement in voluntary turnover rate for both professional and production workforce in 2023
  • 90% of U.S. associates took action during FBIN’s 2024 Annual Enrollment
  • 91% of U.S. associates contributing to their retirement savings account and receiving matching funds from the Company as of January 1, 2024

Governance Achievements

  • Expanded Board oversight of ESG to the Nominating, Environmental, Social and Governance (NESG) Committee
  • Established ESG Steering Committee
  • Refreshed Code of Conduct and deployed an updated Code of Conduct training to global, salaried associates in 2023
  • CIO reported to the Board of Directors on cybersecurity programs and risk mitigation efforts in 2023
  • Maintains a comprehensive enterprise-wide cybersecurity program

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce absolute Scope 1 and 2 carbon emissions by 30% by 2030
  • Offset 50% of electricity usage with renewable sources by 2030
  • Innovate to help consumers save 1 trillion gallons of water by 2030
  • Repurpose 2,000 tons of ocean plastic by 2030
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Supply chain disruptions due to severe weather events
  • Increased insurance premiums for facilities in areas prone to severe weather
  • Raw material and commodity price volatility
  • Meeting growing consumer demand for sustainable products and packaging
  • Compliance with evolving environmental laws and regulations
  • Potential negative impact on reputation if perceived as irresponsible regarding climate change
Mitigation Strategies
  • Operational contingency plans, including distributing production and identifying alternate suppliers
  • Climate-related considerations in capital expense request process
  • Use of derivative contracts and commodity swaps to manage commodity price volatility
  • Development and introduction of new sustainable products
  • Continual monitoring of environmental laws and regulations
  • Increased quality and transparency of ESG performance and disclosures

Supply Chain Management

Supplier Audits: Targeted approach based on risk assessment, including on-site audits for high-risk suppliers

Responsible Procurement
  • Supplier Code of Conduct addressing human rights, workplace safety, and environmental protection

Climate-Related Risks & Opportunities

Physical Risks
  • Severe weather events impacting operations and supply chains
  • Increased insurance premiums
Transition Risks
  • Market shifts towards sustainable products
  • Evolving environmental regulations
  • Reputational risks
Opportunities
  • Growing demand for sustainable products
  • Potential tax incentives for sustainable products

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: WaterSense, ENERGY STAR

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Moen Smart Water Network
  • Fiberon PE composite decking and cladding
  • Therma-Tru energy-efficient doors

Awards & Recognition

  • Newsweek’s America’s Most Responsible Companies (2024)
  • MSCI “AAA” ESG Rating (2023)