Environmental, Social and Governance

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The FY2022 ESG report “Building Influence. Delivering Impact” highlights Ferguson’s progress in conducting its operations with a lighter footprint while creating positive impact for its stakeholders.

"We are dedicated to minimizing the environmental impact of our operations and fostering a culture that is safe, inclusive and engaging for our associates,” said Kevin Murphy, Ferguson CEO. “This ESG report showcases how our people, expertise and position within the value chain create positive impact opportunities for our customers, suppliers and local communities and help build a better world.”

Our Vision for Sustainability

Our vision for sustainability shares our holistic approach to what we are trying to achieve and how we will achieve it.

Our vision begins with our internal responsibility, our footprint. We are dedicated to minimizing the environmental impact of our operations and fostering a culture that is safe, inclusive, accepting and engaging for our associates.

Beyond the scope of our operations, we are committed to a meaningful handprint, driving sustainable product innovation and helping our customers achieve their sustainability goals. Our people, expertise and position within the value chain create positive impact opportunities for our customers, suppliers and local communities. As a company, we embrace the opportunity to extend a hand, leave our mark and help build a better world.

Our internal
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External impact
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From our footprint...through a meaningful handprint, we help build a better world.

ESG Framework

Ferguson’s Board-approved ESG Framework is carefully built from Ferguson’s priority ESG issues identified through our risk management and stakeholder priorities assessments. It comprises the key sustainability topics informing and influencing our business strategy and structures our overall vision for sustainability.

Our ESG Framework

  • Environmental
    • Facilities
      • Energy Management
      • Renewable Energy
    • Products
      • Encourage adoption of sustainable and energy-efficient solutions
    • Fleet
      • Electric / Hybrid vehicles
  • Social
    • Health and Safety
    • Associate Development
      • Inclusion and Diversity
      • Human capital management
    • Supply Chain
      • Supplier compliance and supplier code of conduct
      • Product safety
      • Product quality
    • Community Investment / Ferguson Cares
  • Governance
    • Board Managment / Composition
    • Shareholder Engagement
      • Shareholder rights
      • Executive compensation
    • Regulatory and Risk Oversight
      • Ethics / Business conduct
      • Enterprise risk management
      • Information security
      • Privacy
      • Compliance with laws and regulations

Our Goals

We are committed to the following objectives:

To reduce our Scope 1 and 2 emissions by 35% per million USD of revenue by 2026 (against a 2019/2020 baseline).

To manage our Scope 3 emissions through supplier engagement, acknowledging that the outcome is not within our control.

To help our customers meet their own carbon reduction goals through sustainable products.

Sustainable Development Goals. Clean water and sanitation. Decent work and economic growth. Responsible consumption and production.

Creating Water Positive Impacts

Water is core to our business and an integral part of our vision for sustainability.

Our goal is to create positive water impacts through our actions or initiatives that ensure the availability and sustainable management of water and sanitation in the communities we serve.

Ferguson has a unique opportunity to contribute meaningfully to a sustainable future for water. This is how we believe we can make the most meaningful impacts for the benefit for present and future generations.

Our Focus

Our associates are at the core of everything we do and are fundamental in helping create industry-leading services and long-term value for our customers. Our company is committed to attracting, developing, engaging and retaining the best talent. From the skillsets they possess, to the work ethic and dedication they embrace, our associates are the heart of our company. They are the key to driving our growth and productivity and help us differentiate Ferguson from our competitors. Our highest priority is creating a safe, healthy, inclusive and engaging work environment for every member of the Ferguson family.

Ferguson established Business Resource Groups (BRGs) that provide our diverse associates with opportunities to find affiliation, share common experiences and strengthen Ferguson’s culture of inclusion and belonging within our organization. To learn more about Ferguson’s BRG, visit this webpage.

Ferguson recognizes the need for more ambitious action to mitigate the impact of climate change, and we are committed to doing our part. We will increase the use of renewable energy across our business. We will complete significant conversion of our operations to LED lighting and more energy efficient HVAC equipment. We will start to pilot electric vehicles and our long-term goal remains to look to align with the Science Based Targets initiative (SBTi) as medium–and heavy–duty fleet technology matures.

The impact of climate change continues to put pressure on water resources in North America and Ferguson is committed to utilizing its products, resources, expertise and relationships to be part of the solution. We augment our industry and customers’ sustainable product needs and support their conservation efforts. Water is core to our business and who we are as a company – it’s how we make a meaningful difference in the communities we serve.

We help make our customers’ complex projects simple, successful and sustainable. At Ferguson, we aim to simplify the sustainability journey for our customers, helping them redefine project success while advancing their sustainability goals. Growing climate and water uncertainty demands that the infrastructure of tomorrow be efficient, adaptable and resilient. As an industry leader across the customer groups we serve, we recognize an opportunity to guide customers to make more sustainable choices when completing their projects. We recommend sustainable products and solutions to our customers by underscoring the range of benefits they bring. Ultimately, we aim to drive a greater adoption rate of environmentally friendly products throughout our customer markets.

Ferguson is an active USGBC Gold Member, joining the foremost coalition of leaders working to transform the way buildings and communities are designed, built and operated.

Ferguson’s culture is grounded in our \ to prioritize the care and wellbeing of our associates, customers and communities. Our core values and commitment to promote positive change inspire us to create meaningful impacts through our community engagement program, Ferguson Cares. We work together with dedicated community partners to create a future that everyone can be proud of. The work done by Ferguson Cares is a major part of our goal to leave a meaningful handprint. Our efforts focus primarily on three key areas: clean water and sanitation, housing, and support of skilled trades.

For more information on Ferguson Cares and instructions on how to apply for a grant, visit this page.

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ESG Governance

Ferguson has always taken pride in maintaining effective corporate governance that supports our core values and underpins our ability to set our overall strategic direction. The Board, who oversees Ferguson’s sustainability efforts and ESG strategy, has a vested interest in improving Ferguson’s ESG performance. Both the Board and the Executive Committee have structured their agendas to regularly receive ESG updates.

The Board’s formal Diversity Policy, reflects our belief that diversity in the boardroom makes business sense, bringing the benefit of differences in skills, experience, background, personality, culture and work style. We want to attract, develop, engage and retain the best associates irrespective of race, color, religion, gender, age, sexual orientation, marital status, disability, or any other characteristic that makes people unique.

As a people-focused company, Ferguson is committed to acting ethically in all its business activities, while remaining compliant with applicable laws and regulations. We are dedicated to managing a global supply chain that is socially and environmentally responsible.

A Commitment to Transparency

We engage with subject matter experts throughout the business to ensure sustainability considerations are embedded in our business strategy, consistent with the recommendations of the TCFD.

View our TCFD disclosure

Ferguson has a long history of disclosing our environmental data. View our Climate Change CDP Responses below.

Company Policies Related to ESG