James Hardie publishes annual sustainability report

James Hardie Industries, a leading provider of high-performance, low-maintenance building products and solutions, has released its latest annual sustainability report, detailing progress across the four key pillars of the company’s environmental, social and governance (ESG) strategy: Zero Harm, Planet, Innovation and Communities.

“Sustainability is fundamental at James Hardie. It is central to our business,” said Jill KollingChief Sustainability Officer at James Hardie. “We have ambitious goals and our progress has been made possible by collaboration and innovation across the entire value chain, because together we want to put sustainability into action – and do the right thing for our planet, our people and the communities we serve.”

The report, titled “Building a Culture of Sustainability,” describes employee-led initiatives, key industry collaborations and innovations that advance the company’s goal of “building a better future for all.” The report includes the following highlights from fiscal year 2024:

Integration into business processes

• Sustainability strategies have been integrated into the Hardie Manufacturing Operating System (HMOS) with the intent of prioritizing the sustainability impacts of plant operations while achieving future goals.
• Internal, short-term regional targets have been set to promote local responsibility and make progress towards James Hardie's global environmental goals.

No damage

• Significant investments have been made in safety infrastructure projects worldwide, including upgrading work at height equipment, installing over 1,200 machine guards to provide additional protection for employees and promoting risk awareness.

Product innovation

• In EuropeThe high-performance facade cladding Hardie Panel achieved the lowest CO₂ emissions of all facades in fire protection class A2.
• In the United States, Green contractor media recognized James Hardie as a green innovation and brand leader and named Hardie Artisan Lap Siding the 2024 Sustainable Product of the Year due to its lower carbon footprint than traditional heavyweight building products and its durability and resilience to harsh weather and natural disasters.

Diversity in management

• The proportion of women in management positions increased from 19% in fiscal year 2023 to 23% in fiscal year 2024, approaching the target of 25% for fiscal year 2026.

Human Rights

• Completed risk mapping of global Tier 1 suppliers included in the project from the perspective of modern slavery and internationally accepted responsible business frameworks, an important next step in scaling up the Responsible Sourcing program.

Stronger communities

• Contribution 1.66 billion US dollars By investing in factories and employees, local ecosystems and the entire supply base, the company increases economic value in the communities in which it operates.
• Launch of a corporate sponsorship for the Habitat Strong initiative to build affordable and climate-resilient homes that can withstand extreme weather conditions and natural disasters.

“Every product in and around the home has an impact and our company is committed to leading the building materials industry to ensure that all homes are sustainable,” said Aaron ErterCEO of James Hardie. “Sustainability is a never-ending journey for James Hardie and we will continue to actively integrate our goals into our business operations, our governance structure and our corporate culture.”

Building a culture of sustainability

James Hardie's sustainability goals are directly aligned with the issues that matter most to its stakeholders and overall corporate goals. The company's sustainability strategy is driven by collaboration that includes research and development, engineering, manufacturing, finance and human resources.

“Incorporating our sustainability efforts into HMOS underlines to our workforce that we intend to operate our facilities in this way and continue to achieve our goals in the future,” said Ryan KilcullenExecutive Vice President Global Operations at James Hardie. “HMOS represents our culture of continuous improvement and LEAN manufacturing and empowers our employees to drive improvements in environmental performance.”

Beautiful products, exceptional durability and resilience

James Hardie is committed to developing beautiful products with exceptional durability and resilience to extreme weather conditions as the frequency of climate-related events increases. In fiscal year 2024, James Hardie fiber cement products were selected by three leading homebuilders from across the U.S. to highlight carbon-neutral construction and demonstrate that the average family can afford a sustainable home. The projects featured at the NAHB International Builders' Show^® In February 2024show that every element of a sustainable home can play an impactful role in the pursuit of a low-carbon future.

Non-combustible, pest resistant and suitable for U.S. flood plains, Hardie's durable products require less maintenance and last longer, which in turn uses fewer resources in the long run, increases value for homeowners and meets the demand for high-quality products.