ESG

ESG

Sustainability Builds our Business

Learn about our commitments and the actions we are taking toward building a more sustainable future. Download the 2022 CSR Report.


Our mission is to be the best supplier of building materials and services by having a people-first culture, exceptional customer service and innovative solutions that create superior value for stakeholders. As the nation’s largest supplier of structural building products, value-added components, and services to the professional market for new residential construction and repair and remodeling, we provide an integrated solution to our customers to help them shorten construction cycle times, increase build quality, improve safety, reduce waste, and reduce costs.

Helping homebuilders become more productive and efficient is fundamental to what we do, and we are passionate about building this future together.

We strive to put our corporate values into action every day, including to reduce the environmental impact of our products and operations, provide engaging and rewarding work for our Team Members, and always lead with safety and integrity. We integrate environmental, social, and governance objectives into our decision making to deliver long-term value to all our stakeholders. Our focus on sustainability is guided by our stakeholders and third-party frameworks including the Sustainability Accounting Standards Board (SASB) Building Products & Furnishings standard.

 

 

Team Members                    Environment                    Integrity
Team Members   Environment   Integrity

 

TEAM MEMBERS: Safety and Engagement

Team Members - Safety and Engagement

Our Team Members are the heartbeat of our company and we appreciate each and every one for their partnership, dedication, and loyalty. We work hard to provide a workplace that is safe and one that promotes bringing fresh ideas and diverse perspectives to help us grow and continue to be a thriving, sustainable business that is a source of pride in our industry.

 

Safety

Accountability. We believe that all incidents are preventable. Our Vice President of Safety has managerial responsibility for our health and safety programs. Our executive leadership is actively engaged in our safety programs and has strong oversight via periodic updates and performance reports. Our Board of Directors also receives quarterly reports on our safety performance and initiatives. For all of our leadership, safety performance is a component of their compensation.

Policies and Programs. The Builders FirstSource Safety and Health Program provides the framework with our guidelines and procedures for operating safely and mitigating risks. We have established a general safety manual, construction site safety, and standard operating procedures for specific jobs. All of our safety policies and programs apply equally to our employees and contractors.

Controls and safeguards are implemented to promote safety. Each of our locations must have processes in place to inspect and identify hazards and then record and track mitigation actions for each hazard identified. Safe work procedures for critical tasks are provided, offering clear expectations and requirements to perform work safely. Location managers and supervisors are responsible for implementing and maintaining safety elements in their work areas and answering Team Member questions about our Safety and Health Program, and work with our regional or market safety managers as appropriate.

All locations have written emergency preparedness procedures with guidelines on how to respond in the event of an incident. To ensure compliance, we conduct internal safety audits of each location at least every three years.

Training. We promote understanding and adherence to our safety programs through ongoing education and training efforts. Mandatory new hire training includes robust training on safety and the Builders FirstSource Safety and Health Program. In addition to mandatory new hire safety training, all Team Members must participate in daily as well as monthly safety meetings.

Performance. We have reduced recordable injury rates for the pro-forma combined company (Builders FirstSource and BMC) by 12% to 3.45 in 2020. We are focused on continuously improving our safety performance by targeting a further 10% improvement for 2021, and this target is a component of our compensation.

And last year, we delivered a 18% reduction in recordable injuries across the company, beating our 10% reduction and we have another 10% annual safety improvement targeted for this year. It's a journey that never ends. We're getting better, but we're not going to stop. And the goal is zero. We don't want anyone to get injured working in our operations ever

 

Engagement

We value and seek the input of our Team Members to foster an engaging and rewarding work environment to attract and retain talent. We undertake annual engagement surveys supplemented by quarterly pulse surveys, through which Team Members provide input on our work environment allowing us to assess and further drive Team Member engagement. We also hold regular town hall meetings with question and answer sessions to provide open communications with our Team Members. To promote a safe and respectful workplace, we maintain a formal grievance system where Team Members can report an issue via our anonymous helpline, as well as directly to their manager or human resources representative. These procedures are set forth in our Team Member handbook as well as on posters in our facilities and on our company intranet.

As our talented Team Members are the heartbeat of our company, we provide competitive compensation and benefits packages to attract and retain such talent.  All full-time Team Members are eligible for company benefits, including the following:

• Health, dental and vision insurance

• Flexible Spending Accounts for Health and Dependent Care

• 401(K) retirement program with company match (also available to part-time Team Members)

• Paid time off

• Paid parental leave

• Company Paid Life and AD&D insurance

• Choice of Disability Income Protection (Short and Long Term)

• Team Member Assistance Program (also available to part-time Team Members)

• Tobacco Cessation Program

At Builders FirstSource, we encourage the continuous professional development of all of our Team Members. Our Team Members receive performance reviews at least annually as part of our feedback and development process. We also have a dedicated internal training and development team focused on identifying current and future skill gaps and training our Team Members to ensure they have the necessary skills to succeed. We utilize our BFS Foundations Learning Management System to provide and track completion of our trainings across topics such as leadership and management, professional skills, and compliance. Moreover, we support valuable professional certifications across our markets.

Training and leadership development programs include:

• High potential and emerging leader classes

• Leadership mentoring

• Customer service

• Micro-learnings courses on various topics such as navigating change

• Cornerstone Connect best practices sharing

• Builder’s Supply Channel industry-specific skills courses

 

Diversity, Equity and inclusion

We believe diversity, equity and inclusion must be firmly embedded in our strategy. As part of this strategy, in 2021 we engaged our Team Members through a diversity, equity and inclusion survey to develop our company’s key priorities around diversity, equity and inclusion, which are:

1. Enhance awareness;

2. Increase workforce diversity;

3. Improve and enhance communication; and

4. Increase inclusion and engagement.

 

To drive these priorities, we have launched mandatory trainings, such as training on unconscious bias. We also have Team Member resource groups, including our D&I resource group focused on diversity and inclusion and our Proud to Serve resource group focused on recruiting, employing and retaining veterans and persons serving in the armed services.

To assess and help advance diversity, we monitor the diversity of our workforce across our businesses and functions. The pie chart shows our current ethnic diversity across the company, while the table outlines our diversity by function.

Team Member Ethnic Diversity

 

Team Member Ethnic Diversity

2021 Gender and Ethnic Diversity by Function

 

All Team Members

Executives

Corporate

Field Ops

Field Management

Male

84%

89%

67%

85%

83%

Female

16%

11%

33%

15%

17%

Ethnically Diverse

51%

13%

29%

55%

24%

 

 

ENVIRONMENT: Enabling greener, more efficient construction

 

We believe the sustainability of our products and operations is important to delivering value to our stakeholders, including our customers, Team Members, shareholders and communities. As such, providing materials for the construction of green buildings is a priority for Builders FirstSource. Our team is well trained and deeply knowledgeable about green building practices and products, and we offer a broad range of energy efficient and sustainable-certified products, including Sustainable Forestry Initiative (SFI) and Forest Stewardship Council (FSC) trusses, wall panels, lumber, and Energy Star® qualified windows and doors.
(SASB: Wood Supply Chain Management, CG-BF-430a.1)

 

READY-FRAME®: IT'S MORE EFFICIENT WITH LESS WASTE, RESULTING IN A CLEANER, SAFER JOBSITE

Builders FirstSource uses innovation to offer sustainable solutions that boost building efficiency and result in substantial savings for our customers. For example, our READY-FRAME® computerized, precise pre-cut, labeled framing bundles enable crews to build faster, safer and with less waste. READY-FRAME® enables construction up to 20% faster and can deliver a 39% increase in productivity per person hour. It can require 60% less cutting and 27% less ladder time, reducing injury risk for a safer and cleaner jobsite. READY-FRAME® significantly also reduces the amount of material sent to landfill, up to two-thirds fewer dumpsters, meaning less waste and lower disposal costs, as well as lower emissions from avoided waste haulage.
(SASB: Product Lifecycle Environmental Impacts, CG-BF-410a.1)

Why Choose Ready Frame

 

Click here to see how many trees have been saved using our manufactured framing components since January 1, 2019.

In our operations, we are committed to running efficiently and to minimizing our impact on the environment. Our Environmental Compliance department has leadership responsibility for developing and implementing environmental management programs. Each of our locations assign responsibilities to implement and comply with these environmental programs. We also track applicable Federal, state, and local environmental regulatory requirements, such as storm water and air requirements, to ensure compliance. We utilize our BFS Foundations Management System to educate and train Team Members on relevant environmental and safety topics, such as storm water management awareness and spill prevention.

In line with our focus on compliance and continual improvement, our internal environmental audit team audits each of our locations at least once every three years. We take appropriate corrective actions to address any issues and enhance our operations and compliance.

We are also committed to reducing our environmental impact, including natural resource usage and emissions. For example, we do not utilize water in our key manufacturing processes, minimizing our water usage and risks associated with such usage. We have implemented a number of initiatives to reduce our environmental impact, including the following:

 

• Utilizing water-based paints, which are better for the environment and our Team Members and reduce hazardous waste risks.

• Implementing a nationwide delivery routing system to maximize vehicle efficiency and minimize emissions.

• Monitoring vehicle idle time to identify high-idle locations and providing financial incentives to minimize idling and reduce emissions.

• Upgrading lighting to LEDs, which not only save energy and reduce carbon emissions, but also improve safety through better visibility.

• Installing overhead fans to reduce air conditioning and related power usage.

• Introducing electric forklifts and clean burning diesel delivery vehicles to reduce carbon emissions.

 

INTEGRITY: Protecting our trusted reputation

 

We are committed to promoting a work environment and atmosphere that is conducive to individual and company success and integrity, and we take deep pride in knowing that we succeed with uncompromising integrity. Builders FirstSource’s Code of Business Conduct and Ethics sets forth policies and procedures to promote integrity and ethical conduct, and all Team Members must agree to comply with our Code of Business Conduct and Ethics. To help ensure compliance with our Code of Business Conduct and Ethics and promote ethical behavior, we have a whistleblower program overseen by our General Counsel who has general oversight and enforcement with respect to business ethics. Our whistleblower program offers anonymous, 24/7 reporting of any concerns, and the program is communicated to all Team Members via posters in all locations, the Team Member handbook provided and acknowledged by all Team Members, and our company intranet. All reported incidents are investigated and tracked in our EthicsPoint compliance system through final resolution. Appropriate representatives of our legal, human resources, internal audit, and finance departments are notified of reported incidents, with an overview of reports provided to the Audit Committee of our Board of Directors. In addition to these policies and programs, we have implemented other measures to ensure appropriate and ethical business conduct and relations, such as our Responsible Supply Chain Policy and robust accounting systems to monitor and detect potential financial irregularities.

 

Enabling greener, more efficient construction