James Hardie Industries Plc. · NYSE:JHX
James Hardie Industries — ESG Presentation (July 2021)
43 slides from James Hardie Industries's sustainability presentation, Jul 30, 2021
Slide 1: Sustainability Report Fiscal Year 2021
Sustainability Report Fiscal Year 2021 Published 28 July 2021 Building Sustainable Communities Exhibit 99.3
Slide 2: Contents and About James Hardie
About A MESSAGE FROM THE CEO 1-4 OPERATIONS OVERVIEW 5-6 FY21 HIGHLIGHTS 7-8 BUILDING SUSTAINABLE COMMUNITIES 9-10 Our pillars COMMUNITIES 11-24 ENVIRONMENT 25-36 INNOVATION 37-46 ZERO HARM 47-54 Approach OUR STAKEHOLDERS & MATERIAL TOPICS 55-58 BUSINESS RESILIENCE 59-60 GOVERNANCE & CULTURE 61-64 A
Slide 3: Building Sustainable Communities
4.2 industry average FY 21 0.83 Community impact James Hardie Global impact Homeowner Co unity i pact Ja es Hardie Global i pact Ho eo ner OUR GOAL 80% of revenue from products with environmental product declarations OPERATE 3 Employee Resource Groups (ERGs) in North America FY 20 1.05 TRIR PERFORMA
Slide 4: Building Sustainable Local Communities
2030 GOAL 40% reduction in scope 1 and 2 greenhouse gas intensity (MT CO2e/$) from a 2019 baseline 50% reduction in landfill waste intensity (MT/$) from a 2019 baseline HIRED 98% From the local community SOURCED 83% Raw materials within 100 miles of our plants Building Sustainable Local Communities
Slide 5: Operations Overview
ASIA PACIFIC EUROPE NORTH AMERICA ASIA PACIFIC EUROPE NORTH AMERICA Manufacturing facilities Manufacturing facilities & R&D centers $458M$629M 30% FROM FY20 ADJUSTED NET INCOME 12% FROM FY20 ADJUSTED EBIT 29% FROM FY20 $2,909M NET SALES 18 MANUFACTURING FACILITIES 3 RESEARCH AND DEVELOPMENT CENTERS
Slide 6: FY21 Highlights
ZERO HARMENVIRONMENT INNOVATION DART RATE 0.51 Total days away, restricted or transfered (DART) rate TRIR 0.83 Total recordable incident rate (TRIR) INTRODUCED 3 New products with sustainability benefits, validated by market insights DELIVERED 63% Of manufactured products locally REDUCED 21% Landfil
Slide 7: Building Sustainable Communities: Our Pillars
Our global strategy for value creation and sustainable operational performance BUILDING SUSTAINABLE COMMUNITIES Our pillarsJames Hardie is committed to improving its sustainability performance and proactively and carefully managing its social and environmental impact. Our sustainability strategy, wh
Slide 8: Communities: Our Commitment at a Glance
Our commitment We carefully manage our impacts with a global mindset while creating value in and for our communities. Our goal Create a positive impact in the communities in which we operate. Our approach We employ, source, deliver and give locally. FY21 performance COMMUNITIES We create value in an
Slide 9: Managing community value creation
EMPLOYEESSUPPLIERS PLANTS CONTRIBUTED $800M In communities in which we operate Managing community value creation We think globally and act locally to create value in and for the communities where we operate. Our policies and practices guide our support of local communities. Global Code of Conduct An
Slide 10: Inclusion and Diversity
632 13 98% Employees locally hired New local hires New employee hires 632645 Target 20% or more gender diversity in all management positions by FY24 (tied to executive long-term incentive plans). 15% in FY20 16% in FY21 FY24 Target 0% 5% 10% 15% 20% 20 or ore gender diversity in a l anage ent positi
Slide 11: Sourcing and Distributing Locally
Sourcing locally Distributing locally Less shipping means... Lower costs + a lower carbon footprint Distributing locally With our network of plants, James Hardie is uniquely situated to serve the communities in which we live and operate. Our approach is to distribute our products locally, and 63% of
Slide 12: FY21 Donations to Organizations
During FY21, we donated more than US $1 million in products and company donations to organizations including but not limited to: › American Civil Liberties Union › American Institute For Cancer › Animal Rescue League Of Iowa › ASCPA › Big Shoulders Fund › Cancer Research Institute › Charity Water ›
Slide 13: Durability and peace of mind
Durability and peace of mind In 2016, when they bought the home, Darren & Simone V. were attracted to the low-maintenance aspects of fiber cement siding from James Hardie, its resistance to hail and its fire resistance qualities. One evening, in 2021, Simone was woken by a fire from the adjacent stu
Slide 14: West End Grill community story
“ James Hardie was the main factor that kept the doors open.” Derek George, West End Grill West End Grill Holly & Derek George are a married couple that own West End Grill in Cleburne, TX. Truly a “Mom and Pop” operation. They have been serving James Hardie at the Cleburne plant since the early 1990
Slide 15: We are dedicated to environmental excellence
We are dedicated to environmental excellence ENVIRONMENT Our commitment To be responsible and accountable for our impact on the environment and prioritize the management of waste, water, energy and emissions. Our goal 40% reduction of Scope 1 and Scope 2 greenhouse gas (GHG) intensity by 2030 from a
Slide 16: Managing environmental excellence
Managing environmental excellence James Hardie embeds systems and processes to proactively manage environmental impacts. They include our Global Environmental Protection Policy, which is communicated to employees, contractors and customers. This policy outlines four guiding principles: Use of renewa
Slide 17: Environmental topics, goals and progress
Topic Our commitment Our approach 2030 goal FY21 progress Energy & emissions We aim to minimize our GHG impact To continuously improve energy conservation and efficiency, and shift to more renewable energy sources. To drive the impact under our direct operational control, we are focused on three key
Slide 18: Energy and emissions
ENERGY-EFFICIENCY INVEST IN PROJECTS TRANSITIO N TO RENEW ABLE EN E R G Y E LI M IN AT E TH E USE O F C O A L IN O U R O PE RATIONS 2030 Goal We achieved a 17% reduction in GHG intensity in 2020 40% reduction in scope 1 & 2 GHG intensity (MT CO2e/$ revenue) from a 2019 baseline GHG Intensity (MT CO2
Slide 19: Waste
ENABLE BENEFICIAL REUSE MAXIM IZE R EC Y C LIN G G E N E R AT E LE SS W ASTE 2030 Goal We achieved a 21% reduction in landfill waste intensity in 2020 50% reduction in landfill waste intensity (MT/$ revenue) from a 2019 baseline Landfill waste Intensity (MT/$ revenue) 21% FY21 Status 2030 Goal 0% 20
Slide 20: Water
MANAGEMENT PROPER OF EFFLUENT CONSUM PTIO N TH R O U G H RECYC LIN G M AN AG E TE C H N O LO G IE S TO R E D U C E C O N SU M PTION IM P LE M E N T AL TE RNATIVE 2020 water withdrawal (ML)2030 Goal We saved 40,000 cubic feet of water in 2020 20 million additional cubic feet of water recycled per yea
Slide 21: Innovation at a glance
AT-A-GLANCE INNOVATION Our consumer driven design delivers endless possibilities 326% new products introduced with sustainability benefits of revenue covered with EPDs Our commitment To deliver solutions which improve the lives of the homeowner Our goal 80% of revenue from products with Environmenta
Slide 22: Homeowner insights
Homeowner insights We are building on the strength of the functional performance of our products, which deliver trusted protection and low maintenance, with lasting beauty and endless design possibilities. In supporting this unique value proposition, we are proactively working with homeowners to ide
Slide 23: Product showcase
Hardie® Textured Panels Hardie® Brand VL PlankHardie™ Fine Texture Cladding Product showcase Hardie® products deliver peace of mind because they not only look great, but they also avoid typical pain points experienced with reference products. Our products are well known for their durability and low
Slide 24: Sustainability of products
26% FY21 Status 80% 2030 Goal 0% 20% 40% 60% 80% 2030 Goal 80% of revenue from products with Environmental Product Declarations (EPD) Sustainability James Hardie is committed to implementing high- quality product solutions that deliver exceptional value, including sustainability-related features thr
Slide 25: Aesthetics
Aesthetics A consumer-led approach lies at the heart of our drive towards developing new products, so it is crucial that we continuously engage with our consumers during the research, design and testing of our world class products. Our Marketing and R&D teams collaborated during the year to develop
Slide 26: Zero Harm at a glance
ZERO HARM Safety is a non-negotiable value for our business success Our commitment Safety is a non-negotiable value for business success, and we prioritize the protection of our people and those who use or interact with our products. Our goal Continuous improvement year-over-year Recognized for worl
Slide 27: Managing our Zero Harm culture
2.8 industry average Managing our Zero Harm culture Our systems and processes to manage Zero Harm Safe people SafeStart: a behavioral-based safety awareness and skills development system Rate Your State: a peer-to-peer program to build & sustain safety-minded behaviors Safety observations and accide
Slide 28: Precautionary and proactive COVID-19 measures
DISTRIBUTED 60,000 masks to our workforce and their families ADMINISTERED 3,918 proactive tests to ensure employee safety and business continuity ADDED 80 hours paid COVID-19 sick and recovery leave per employee PROVIDED 525,000+ lunches to employees through our free lunch program during the pandemi
Slide 29: Safe places: Staying cool
SAFE PLACES Staying cool James Hardie is committed to doing everything we can to protect our people and the greater environment that we all share. We continuously look for ways to improve the health, safety and well-being of our employees and contractors. One of the challenges we face is optimizing
Slide 30: Our stakeholders and material topics
We are committed to managing and reporting on what matters most to our stakeholders OUR STAKEHOLDERS & MATERIAL TOPICS Our material topicsJames Hardie’s most recent materiality assessment identified, prioritized and validated the company’s material topics and associated impacts. Setting a material t
Slide 31: Stakeholder engagement and material topics
Stakeholder engagement James Hardie is committed to reporting on what matters most to our stakeholders so it is essential that we engage with them to understand their opinions and concerns. Our key stakeholders include employees, regulatory agencies, investors, municipalities, customers and supplier
Slide 32: Business resilience
Our people and management systems protocols ensure our business resilience BUSINESS RESILIENCE Throughout FY21, James Hardie proved its business resilience in the face of several unprecedented challenges. We rapidly adapted to the global disruptions caused by COVID-19 and a severe winter storm that
Slide 33: Governance and culture
GOVERNANCE & CULTURE Our governance, systems and ethics are foundational to our culture Culture & employee engagement Our people are at the core of our business and our leaders drive action to build a long-term successful culture. Global mindset We think and reach outside our geographic boundaries,
Slide 34: Climate-related disclosure roadmap
FY22: DISCOVERY FY23: SCENARIO ANALYSIS FY24: CHECK & ADJUST GOVERNANCE Expand climate-related awareness and identify material climate-related risks and opportunities. Incorporate climate-related issues into relevant governance and management bodies. On-going review & approval of climate-related iss
Slide 35: ESG Data Summary: General
ESG DATA SUMMARY General SCALE OF THE ORGANIZATION FY19 FY20 FY21 Total number of employees 4,916 4,869 4,861 Total number of operations 19 19 18 Net revenues (Million USD) 2,507 2,607 2,909 Quantity of products sold (mmsf) 3,670 3,843 4,131 INFORMATION ON EMPLOYEES AND OTHER WORKERS FY19 FY20 FY21
Slide 36: ESG Data Summary: Zero Harm
Zero Harm HEATH & SAFETY MANAGEMENT SYSTEM FY20 FY21 Percentage of all employees covered by a health and safety management system 100% 100% Percentage of all employees covered by a system that has been internally audited 100% 100% WORK-RELATED INJURIES FY20 FY21 Near miss frequency rate Employees 10
Slide 37: ESG Data Summary: Environment
Environment MATERIALS FY21 Percentage of recycled input materials (by weight) used to manufacture primary products Fiber cement 15% Fiber gypsum 35 - 50% Note: Our fiber gypsum products contain a minimum of 35% recycled inputs with some plants using up to 50% recycled inputs, by weight. PRODUCT INNO
Slide 38: GRI Content Index
GRI CONTENT INDEX DISCLOSURE NO. DESCRIPTION RESPONSE 102-1 Name of the organization James Hardie Industries plc 102-2 Activities, brands, products, and services Fiscal Year 2021 Annual Report, page 44 - 48. 102-3 Location of headquarters Fiscal Year 2021 Annual Report, page 244. 102-4 Location of o
Slide 39: GRI Content Index (continued)
DISCLOSURE NO. DESCRIPTION RESPONSE 102-48 Restatements of information No restatements have been made. 102-49 Changes in reporting No significant changes have been made. 102-50 Reporting period Fiscal year 2021 ended March 31, 2021. Some environmental data is based on the calendar year and noted as
Slide 40: GRI Content Index: Emissions
DISCLOSURE NO. DESCRIPTION RESPONSE 305 Emissions 103 Management approach Energy & emissions Sustainability Report 2021, page 31 - 32. Hardie Manufacturing Operating System Sustainability Report 2021, page 63. 305-1 Direct (Scope 1) GHG emissions ESG Data Summary Sustainability Report 2021, page 70.
Slide 41: SASB Index: Emissions and Air Quality
TOPIC ACCOUNTING METRIC CODE LOCATION COMMENT Greenhouse Gas Emissions Gross global Scope 1 emissions, percentage covered under emissions-limiting regulations EM-CM-110a.1 ESG Data Summary, page 70. Discussion of long-term and short- term strategy or plan to manage Scope 1 emissions, emissions reduc
Slide 42: SASB Index: Workforce Health and Safety
TOPIC ACCOUNTING METRIC CODE LOCATION COMMENT Workforce Health & Safety (1) Total recordable incident rate (TRIR) and (2) near miss frequency rate (NMFR) for (a) fulltime employees and (b) contract employees EM-CM-320a.1 ESG Data Summary, page 67. Contractor data is omitted from reporting and as we
Slide 43: Printed on Recycled Paper All Rights Reserved. TM, SM, and ® denote trademarks or
Printed on Recycled Paper © 2021 James Hardie Building Products Inc. All Rights Reserved. TM, SM, and ® denote trademarks or registered trademarks of James Hardie Technology Limited. SP2119 07/21
James Hardie Industries — ESG Presentation (July 2021) on 6ix