Whereas: The physical impacts of climate change are predicted to create systemic risks to the economy, necessitating immediate, sharp greenhouse gas emissions (GHGs) reductions aligned with limiting temperature rise to 1.5 degrees Celsius. Up to 10 percent of total global economic value is projected to be lost by 2050 under current emissions trajectories.

As a provider of forestry products and construction services, Builders FirstSource (BLDR) is vulnerable to the physical, operational, and supply chain risks caused by climate change. With increases in the severity of hurricanes, heat waves, wildfires, and droughts, BLDR’s wood product supply may be disrupted, and according to its 2021 10-K, climate impacts could “reduce or delay construction activity” and, more generally, “adversely impact our financial condition, operating results, and cash flows.”

Wood products contribute significantly to deforestation and forest degradation, which are responsible for approximately 15 percent of global greenhouse gas emissions. In 2021, 42.3 percent of BLDR’s net sales were derived from selling lumber and lumber sheet goods. However, the Corporation has yet to fully account for emissions linked to the harvesting and manufacturing of wood products or for any emissions originating from its full value chain (i.e., scope 3 emissions). To date, BLDR has not set or committed to set a GHG emissions reduction target.

By contrast, peer companies, Lowe’s and Home Depot, have committed to set net zero by 2050 science based GHG emissions reduction targets covering scopes 1-3 emissions by 2024. Further, both companies publicly report their emissions through the CDP, a global disclosure platform used by more than 13,000 companies.

Given last year’s 87.6 percent vote in support of this proposal, proponents believe the Corporation has a responsibility to implement the core elements of the proposal by committing to set and then setting science-based GHG goals that cover scopes 1-3 emissions and align with a 1.5 degrees Celsius scenario.