James Hardie Industries Releases First Global Sustainability Report

The World Leader in High-Performance Building Solutions Details Sustainability Strategy and Progress

August 04, 2021 - by commARCH
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James Hardie Industries Releases First Global Sustainability Report

James Hardie Industries plc (ASX: JHX; NYSE: JHX), the world’s #1 producer and marketer of high-performance fiber cement and fiber gypsum building solutions, has released its first global sustainability report.

When?
July 2020.

Why is the report important?
James Hardie’s 2021 Sustainability Report,Building Sustainable Communities, outlines its sustainable future, company commitments and significant progress made to date in four key areas: Communities, Environment, Innovation, and Zero Harm. This framework is supported with measurable goals and metrics in each of the four key areas, including goals for greenhouse gas reduction, diversity, environmental product declarations and safety.


Image Credits: James Hardie

 

“Our commitment to building better, more sustainable communities starts by building better homes, with the homebuilding materials of the future,” said James Hardie CEO, Dr. Jack Truong. “Our commitment to a sustainable future extends to our James Hardie community, the local communities in which we operate, and across the largest shared community of all, our global ecosystem. At James Hardie, we are transforming the way the world builds by offering better, safer and more sustainable products."

James Hardie’s sustainability strategy, which was formalized in fiscal year 2021 (FY21), is integrated with its global strategy for value creation and operational performance.

What does the report highlight?

Communities
At James Hardie, building sustainable local communities is at the forefront of their strategy. They recognize their ability to impact the communities in which they live and work. While maintaining a global mindset, they put great care into how their business affects local communities. They contribute to local communities by sourcing, employing, delivering, and giving locally. In FY21, they:

• Contributed US$800 million in local communities in which we operate.
• Shipped 63% of our products to customers within 500 miles of our manufacturing facilities.
• Sourced more than 83% of raw materials from within 100 miles of our manufacturing facilities, supporting local businesses and minimizing length of haul and carbon footprint.
• Hired 98% of new staff from the local communities in which we operate.
• Launched a Global Inclusion and Diversity Program to improve our James Hardie community. The program focuses on culture, employee interaction, employee capabilities, hiring practices, and growing and developing talent in the organization.
• Set a goal to increase gender diversity to 20% in all management positions by FY24, from 15% in FY20

Environment
We are committed to be responsible and accountable for our impact on the environment and to prioritize the management of waste, water, energy and emissions. We provide products that help to build better homes, that have a lower impact on our environment and are built to last. We continue to minimize energy intensity and waste generation while delivering a high-value product as a strong alternative to traditional building materials. By sourcing and supplying locally, the company maintains a small inbound and outbound shipping footprint, helping to further minimize greenhouse gas emissions. In FY21, we:

• Set a goal to reduce Scope 1 and Scope 2 greenhouse gas intensity by 40% by 2030.
• Achieved a 17% reduction in greenhouse gas emissions intensity from 2019 base.
• Set a goal to reduce landfill waste intensity by 50% by 2030.
• Achieved a 21% reduction in landfill waste intensity from 2019.
• Set a goal to recycle 20 million additional cubic feet of water per year by 2030.
• Realized up to 50% recycled content in our fiber gypsum products.

Innovation
James Hardie is a leading global innovator in home exterior solutions, using new technologies to produce high-quality, sustainable products with endless design possibilities. Their fiber cement delivers superior life expectancy, driving down environmental impacts and meeting demand for high- quality sustainable products. They believe that through innovation they can drive continuous improvement of their energy consumption, water utilization, waste reduction and overall impact on the environment. In FY21, they:

• Commercialized three new products with sustainability benefits: Hardie® Textured Panels in North America, HardieTM Fine Texture Cladding in Australia, and Hardie® Brand VL Plank in Europe.
• Committed to building two new pilot R&D facilities, in Fontana, California and Rosehill, Australia.
• Set a goal to cover 80% of revenue with environmental product declarations.
• Covered 26% of revenue with environmental product declarations.
• Realized US$107 million in cumulative LEAN savings in FY20 and FY21.

Zero Harm
At James Hardie, safety is a non-negotiable value for business success, and they prioritize the protection of the people and those who interact with their products. The goal is to continuously improve year over year and to be recognized for world class safety. They believe that value creation means nothing without a safe environment for all employees. In FY21, James Hardie:

• Reduced total recordable incident rate to 0.83, a 21% improvement versus FY20 and substantially better than the industry average of 4.2.
• Reduced their total days away, restricted or transferred rate to 0.51, a 4% improvement versus FY20 and substantially better than the industry average of 2.8.
• Responded to COVID-19, by providing: 80 hours paid COVID-19 sick leave, distributing 60,000+ masks, 3,918 proactive covid tests, and free onsite daily lunch program to keep employees safe.