Building a Resilient Future

James Hardie has an opportunity to redefine what leadership looks like in the built environment by advancing circularity, accelerating decarbonization and scaling resilient product innovation across our portfolio. We view sustainability as a business strategy — not a standalone initiative.

The combination of James Hardie and AZEK brings together two purpose-driven companies with complementary strengths, iconic brands and a shared focus on innovation, durability and sustainability. There is an opportunity to accelerate impact faster than each company could do independently.

Our approach is focused on embedding sustainability into how we innovate, operate, manage risk and create long-term value. We focus on four key pillars: Planet, Innovation, Communities and Zero Harm.

Achieving our goal starts with practical actions across our operations – pursuing opportunities such as energy efficiency, renewable electricity and process improvements to reduce emissions over time. Our results show circularity in action – from reducing process waste to expanding reuse to recycling and water recovery. By integrating our priorities into our Hardie Manufacturing Operating System (HMOS) and scaling proven solutions across our global network, we are accelerating progress while driving cost savings and operational performance.

Circularity at James Hardie has evolved with the integration of The AZEK Company, bringing together complementary businesses with distinct materials and manufacturing processes. While AZEK has led a vertically integrated recycling model for plastics, James Hardie has focused on waste reduction, manufacturing efficiency and alternative material innovation. Together, we are advancing a more comprehensive approach to circularity — one that spans materials, operations and product design.

Through these efforts, we are minimizing our environmental footprint and helping to build a more resilient and circular future.

• In FY26, James Hardie diverted 240 million pounds of process waste from disposal toward our goal of zero process waste disposed by FY36
• James Hardie recycled 545 million pounds of process waste and scrap material in FY26, diverting 41% of process waste and making meaningful progress toward our ambition of recycling one billion pounds annually

Reducing our carbon footprint is an important element of our commitment to sustainability and business resilience. Decarbonization at James Hardie is grounded in discipline — focused on the highest-impact actions, informed by data and embedded in how we operate. Our teams are focused on improving operational efficiency, transitioning to lower carbon energy sources and new technologies and advancing material innovation.

• In FY26, we achieved an 18% absolute reduction in Scope 1+2 GHG emissions toward our FY31 goal of 42% compared to a FY22 baseline
• We are proud that our fermacell® gypsum fiber board and fermacell® Therm25® products in Europe received Cradle to Cradle (C2C) Certified® Full Scope Silver, C2C Certified® Material Health Silver and C2C Certified® Circularity Silver based on version 5.0

We continue to make significant progress in developing technology that will allow us to reduce the embodied carbon of our fiber cement products by at least 50%. The formulation developed during the first phase of our Low Carbon Cement Technology Development Roadmap has been implemented in multiple plants across North America, reducing our carbon footprint and lowering business costs.

• In FY26, phase two progress led to successful third-party certification of our latest cement formulation, confirming our products maintain the durability, quality and resilience our customers have come to expect.

We continue to strengthen the governance of human rights issues across our value chain by maturing our understanding of potential impacts and opportunities and actively managing risks through enhanced due diligence. These actions help us identify risk, strengthen due diligence and support human rights across our value chain.

• In FY26, we published our first Human Rights Salient Review report, which details the methodology and key findings from the formal review we completed last year.
• The FY26 review validated our human rights priorities and confirmed that the work we are doing throughout James Hardie, such as our Zero Harm program, is mitigating risks and strengthening our company’s accountability and preparedness.

James Hardie’s global giving and community engagement strategy brings to life our purpose of Building a Better Future for All™. Our charitable giving and community engagement activities are focused on resilient housing, rebuilding after disasters and local community investment.

• In FY26, we donated more than 850,000 square feet of product across categories to support our local communities
• Our employees gave more than 1,000 volunteer hours to support local communities across the globe in FY26

One of the ways we give back is through collaboration with Habitat for Humanity® International, turning commitment into action by responding to disasters and helping families build a foundation of stability through affordable housing. By working closely with local Habitat affiliates and other trusted local partners, we help families rebuild homes and restore vital community spaces through product donations and hands-on volunteer support. The resilient siding and decking we contribute do more than replace what was lost — they help communities rebuild stronger and with greater resilience.