Climate Change Data

James Hardie Industries plc

Climate Impact & Sustainability Data (2023, FY 2022)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:2,588,712 tCO2e/year (CY22)
Scope 1 Emissions:365,779 tCO2e/year (CY22)
Scope 2 Emissions:280,630 tCO2e/year (CY22)
Scope 3 Emissions:1,942,303 tCO2e/year (CY22)
Renewable Energy Share:Not disclosed
Total Energy Consumption:2,693,669 MWh/year (CY22)
Water Consumption:3,718 ML/year (CY22)
Waste Generated:370,170 tons/year (CY22)
Carbon Intensity:171.1 MT CO2e/$MM revenue (CY22)

ESG Focus Areas

  • Circularity
  • Climate
  • Governance & Ethics
  • Human Capital Management
  • Human Rights
  • Local Communities
  • Occupational Health & Safety
  • Product Quality & Safety
  • Water & Effluents

Environmental Achievements

  • Exceeded 2030 goal of having 80% of revenue come from products with Environmental Product Declarations (EPDs) several years ahead of schedule.
  • Reduced GHG emissions by 11,827 metric tons of CO2e in CY22 at Carole Park facility by eliminating coal.
  • Recycled 5.487 million more cubic feet of water in 2022 than in 2019.
  • Recycled 980 metric tons of dust in Australian plants in CY22.

Social Achievements

  • Improved processes and performance to advance safety and well-being across operations through Zero Harm philosophy.
  • Adopted more aggressive targets for gender diversity in senior leadership and management, as well as for underrepresented minorities in management.
  • Launched a new parental leave policy for all U.S. regular, full-time employees.

Governance Achievements

  • Promoted Jill Kolling, Vice President, ESG and Chief Sustainability Officer (CSO) to the Executive Leadership Team.
  • Created two new Director-level positions to further align global programs with ambitions.
  • Revised Global Supplier Code of Conduct.

Climate Goals & Targets

Long-term Goals:
  • Send zero manufacturing waste to landfill by 2035.
  • Work towards net zero emissions by 2050.
Medium-term Goals:
  • Reduce absolute Scope 1+2 GHG emissions by 42% by 2030 from 2021 baseline.
  • Recycle an additional 20M cubic feet of water per year by 2030, compared to 2019 baseline.
  • Reduce the CO2 impact of fiber cement products by at least 50% by 2030.
Short-term Goals:
  • Increase diversity in management and senior leadership by FY26 (specific targets provided in report).

Environmental Challenges

  • Supply chain disruptions due to extreme weather events.
  • Meeting ambitious GHG emission reduction goals.
  • Achieving zero manufacturing waste to landfill by 2035.
  • Increasing diversity in management and senior leadership.
Mitigation Strategies
  • Completed an in-depth study of GHG emissions and created global, cross-functional task forces to chart a path forward.
  • Established a cross-functional task force to evaluate potential new solutions to help conserve and recycle water.
  • Brought together a cross-functional task force to evaluate challenges and opportunities for achieving zero manufacturing waste to landfill.
  • Revised global gender diversity goal and adopted a new goal for the U.S. to increase the percentage of underrepresented minorities in management positions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Global Supplier Code of Conduct
  • Risk-based approach to managing supply base
  • Focus on local sourcing of raw materials

Climate-Related Risks & Opportunities

Physical Risks
  • Increased severity and frequency of extreme weather events
Transition Risks
  • Policy changes relating to climate change/emissions management
  • Mandatory reporting requirements
  • Changes in environmental product labeling and building codes
Opportunities
  • Becoming a leading building materials manufacturer with sustainability attributes
  • Entry into new markets
  • Sustainable and resilient products and operations

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB, TCFD

Certifications: ISO 14001 (corporate level and nine plants)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

The report mentions alignment with several UN SDGs but doesn't specify which ones.

Sustainable Products & Innovation

  • Hardie Plank HZ10 (low carbon footprint)
  • Fermacell underfloor heating system Therm25 (dry installation, reduced drying time)

Awards & Recognition

  • The Home Depot Eco Actions Partner Program

Reporting Period: FY 2022

Environmental Metrics

Total Carbon Emissions:2,391,140 tCO2e (CY21)
Scope 1 Emissions:370,185 tCO2e (CY21)
Scope 2 Emissions:292,542 tCO2e (CY21)
Scope 3 Emissions:1,728,413 tCO2e (CY21)
Renewable Energy Share:Not disclosed
Total Energy Consumption:2,607,510 MWh (CY21)
Water Consumption:2,237 ML (CY21)
Waste Generated:309,964 tons (CY21)
Carbon Intensity:183.3 MT CO2e/$ revenue (CY21)

ESG Focus Areas

  • Communities
  • Environment
  • Innovation
  • Zero Harm

Environmental Achievements

  • 21% reduction in scope 1+2 greenhouse gas intensity (MT CO2e/$ revenue) in CY21
  • 3.87M additional cubic feet of water recycled in CY21
  • 47% reduction in landfill waste intensity (MT/$ revenue) in CY21
  • Eliminated coal use at Carole Park, Australia facility

Social Achievements

  • 19% gender diversity in all management positions in FY22
  • Launched Asian Pacific Network (ASPAN) Employee Resource Group
  • Donated building materials to Habitat for Humanity and emergency relief funds to the American Red Cross to aid hurricane victims
  • Donated funds and materials to help rebuild homes in Germany after flooding

Governance Achievements

  • Improved safety culture with a full-day Safety Reset in North American operations, resulting in a safer work environment and improved employee safety training
  • Standardized upgraded safety policy globally
  • Hired first Chief Sustainability Officer

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • 50% reduction in landfill waste intensity (MT/$ revenue) by 2030
  • 20M additional cubic feet of water recycled per year by 2030
  • 40% reduction in scope 1+2 GHG intensity by 2030
  • 80% of revenue from products with Environmental Product Declarations (EPDs) by 2030
Short-term Goals:
  • 20% gender diversity in all management positions by FY24

Environmental Challenges

  • Upward trend in safety incidents in North America, correlated with increased hiring and COVID-19 impacts
  • Supply chain disruptions
Mitigation Strategies
  • Full-day Safety Reset in North America, improved new employee orientation and training, standardized safety protocols globally
  • Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Global Supplier Code of Conduct
  • 80% of materials sourced within 150 miles of manufacturing facilities in FY22
  • 65% of deliveries within 500 miles of manufacturing facilities in FY22

Climate-Related Risks & Opportunities

Physical Risks
  • Increased severity and frequency of extreme weather events
Transition Risks
  • Policy changes relating to climate change/emissions management
  • Stringent environmental laws relating to resource usage
Opportunities
  • Becoming a leading building materials manufacturer with sustainability attributes
  • Entry into new markets and geographies
  • Sustainable and resilient products and operations

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB, TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Hardie Architectural Collection
  • Fermacell® fiber gypsum boards

Awards & Recognition

  • 2021 Best of Products Award (Architect’s Newspaper)
  • 2021 MVP Awards Gold Winner (Residential Products Magazine)
  • 2021 Global Innovation Awards Gold Winner (National Association of Home Builders)
  • 2022 BIMsmith Best Awards Winner