James Hardie Industries (ASX/NYSE: JHX) has delivered a comprehensive sustainability update with the release of its annual report “Building Resilience,” showcasing significant progress across environmental, social, and governance initiatives. The global building materials leader achieved a 14% reduction in Scope 1+2 emissions and invested over $113 million in safety infrastructure projects, reinforcing its commitment to sustainable construction practices.
Major Environmental Achievements Drive Industry Leadership
James Hardie’s sustainability strategies continue integration into the Hardie Manufacturing Operating System (HMOS), with short-term internal natural gas targets set for each region. This systematic approach helped drive emissions reductions from the calendar year 2021 baseline, positioning the company as a leader in sustainable manufacturing practices.
James Hardie’s FY2025 “Building Resilience” sustainability report
The company made significant strides in waste reduction, particularly in North America where operations diverted over 11% of manufacturing waste from local landfills in fiscal year 2025. In the Asia Pacific region, operations achieved an impressive 98% elimination of waste material, demonstrating the company’s commitment to circular economy principles.
Water conservation efforts received major investment, with the company developing advanced treatment systems. In Carole Park, Australia, James Hardie is investing millions of dollars to develop one of the most advanced water treatment plants across the company to cut wastewater discharge by at least half. This contributes significantly toward the goal of recycling 20 million cubic feet of water per year by 2030.
Community Investment Reaches $2.5 Billion
James Hardie contributed $1.65 billion in economic value to the communities in which it operates through capital expenditures at plants and by investing in employees, local ecosystems and across the supplier base. This substantial investment underscores the company’s role as a significant economic contributor across its operational footprint.
The community engagement extends beyond financial contributions. The company has strengthened workforce development through the BuildWell program, helping to create a culture of well-being, where employees are supported with education, resources and opportunities for their physical, mental, social and financial well-being.
AZEK Acquisition Expands Sustainability Portfolio
A landmark development during FY2025 was James Hardie’s successful completion of its previously announced acquisition of The AZEK Company in July 2025. The acquisition significantly expands the company’s portfolio of high-performance, low-maintenance exterior and outdoor living brands, including TimberTech®, AZEK® Exteriors, and Versatex®.
AZEK embeds sustainability into every stage of its operations, from material sourcing and manufacturing to product durability and end-of-life solutions. Guided by a full-circle approach, AZEK transforms waste and scrap into high-performance, long-lasting materials and aims to incorporate one billion pounds of recycled content into its manufacturing annually.
Product Innovation Drives Sustainable Construction
The company launched several innovative sustainable products during FY2025. James Hardie debuted the TimberHue™ Collection in North America, featuring two-tone, premium finishes in eight authentic wood-look colours – engineered to withstand harsh weather and made with noncombustible James Hardie technology.
In the United States, Green Builder Media recognised James Hardie as an innovation and brand leader, naming Hardie® Artisan® Trim as a 2025 Sustainable Product of the Year for its distinctive design, superior performance and lasting value. This recognition highlights the company’s leadership in sustainable product development.
Market Context: Fiber Cement Industry Growth
James Hardie’s sustainability focus aligns with broader industry trends toward environmentally conscious building materials. The global fiber cement market is projected to witness significant growth between 2025 and 2035, driven by increasing demand from the construction, residential, and industrial sectors. The market was valued at approximately $28.9 billion in 2024 and is expected to expand at a CAGR of 4.5%, reaching $44.8 billion by 2035.
According to the U.S. Green Building Council, the use of sustainable materials in construction has increased by 30% since 2020. This trend is pushing companies like James Hardie and Nichiha to enhance their sustainability efforts by developing greener fiber cement products.
The ESG trend is extending beyond traditional mining sectors into building materials, with companies like James Hardie leading the charge in sustainable manufacturing practices.
Safety Infrastructure Investment Tops $113 Million
Over a three-year period, James Hardie is investing more than $113 million in strategic safety infrastructure projects globally. Safety standards for energy control processes, machine guarding, working from heights and electrical safety were developed and independently approved in North America and Asia Pacific.
This substantial investment demonstrates the company’s commitment to its Zero Harm standards and continuous safety improvements across all operations. The comprehensive approach includes equipment upgrades, process improvements, and enhanced training protocols.
Human Rights and Social Compliance Progress
James Hardie launched a global human rights policy and completed the first salient issues review, conducting on-site social compliance audits of the few tier-one suppliers in high-risk environments. This initiative reflects growing corporate responsibility expectations and demonstrates proactive governance approaches.
The company’s commitment to responsible business practices extends throughout its supply chain, with comprehensive risk mapping and compliance monitoring systems now in place.
Stock Performance Reflects Market Confidence
James Hardie’s shares currently trade at $43.13 on the ASX (JHX.AX), within a 52-week range of $40.11 to $89.53. The company maintains a market capitalisation of approximately $25.5 billion, reflecting investor confidence in its strategic direction and sustainability initiatives.
The trend toward sustainable industrial practices has created positive sentiment for companies demonstrating strong ESG credentials like James Hardie.
Future Outlook: Sustainability as Strategic Advantage
CEO Aaron Erter stated: “At James Hardie, sustainability is foundational to how we do business. We are continuing to make progress, evolve and innovate to ensure homes are built to last. Sustainability is a journey, and this continues with our recent acquisition of The AZEK Company in July 2025“.
Aaron Erter, Chief Executive Officer
The company’s comprehensive sustainability strategy addresses the four primary pillars of its ESG framework: Zero Harm, Planet, Innovation, and Communities. This holistic approach positions James Hardie well for the growing demand for sustainable building materials.
With increasing regulatory requirements for environmental compliance and growing consumer preference for sustainable products, James Hardie’s proactive sustainability initiatives provide competitive advantages in key markets. The company’s substantial investments in environmental technology, safety infrastructure, and community development demonstrate long-term commitment to sustainable business practices.
The James Hardie Sustainability Report 2025 reinforces the company’s position as an industry leader in sustainable building materials, with measurable progress across all key metrics and a clear roadmap for continued improvement. As global construction markets increasingly prioritise environmental and social responsibility, James Hardie’s comprehensive ESG strategy positions it well for sustained growth and market leadership.
For investors seeking exposure to sustainable building materials companies with strong financial performance and clear environmental commitments, James Hardie’s latest sustainability report provides compelling evidence of genuine progress and strategic focus on ESG leadership.
