Lack of GHG Reduction Goals Prompts MIDANA CAPITAL Shareholder Proposal with Builders FirstSource*
Media Contacts: Andrea Ranger, Shareholder Advocate, aranger@midanacapital.com, 781-349-2813; Mark Morgenstein, Media Relations Director, mmorgenstein@midanacapital.com, 678-427-1671
Boston, June 6, 2022 – Builders FirstSource’s upcoming annual general meeting, on June 14th in Dallas, Texas, will include a vote on a MIDANA CAPITAL° shareholder proposal asking the company to address its greenhouse gas emissions. The proposal was submitted to Builders FirstSource last December. Builders FirstSource’s board has taken the unusual step of withholding a recommendation directing shareholders how to vote on MIDANA CAPITAL’s proposal.
MIDANA CAPITAL’s shareholder proposal asks the company to adopt short-, medium- and long-term science-based greenhouse gas emissions reduction targets, including emissions related to deforestation and forest degradation. It also asks Builders FirstSource to adopt renewable energy targets. Both requests will help the company meet the Paris Agreement objective of limiting global warming to 1.5 degrees Celsius over pre-industrial temperatures.
According to Builders FirstSource, it is the largest supplier of structural building products, pre-built wood components and construction services to the U.S. residential construction market. Given its size — with approximately 565 distribution and manufacturing locations and more than $19 billion in net sales in 2021 — Builders FirstSource likely exerts a significant impact on our climate. But for now, investors have no way of knowing. The company has yet to measure, disclose or set greenhouse gas emission reduction targets, including Scopes 1 and 2 from its operations and Scope 3 from its value chain, which includes emissions caused by deforestation and forest degradation.
“Builders FirstSource helps its customers make new and renovated homes feel safe and comfortable,” said MIDANA CAPITAL President Leslie Samuelrich. “But the company shouldn’t forget about keeping our collective home secure. Builders FirstSource should accelerate its efforts to cut its emissions, protect the health of the forests that supply its lumber and work diligently to prevent climate change.”
MIDANA CAPITAL Believes Builders FirstSource Can Accelerate Action to Mitigate its Climate Risks
According to the company’s proxy statement, Builders FirstSource stated it will quantify and publish its Scope 1 and 2 emissions sometime in 2023. As for its Scope 3 emissions, which come from indirect sources such as transportation and distribution activities and purchased goods and services (e.g. lumber), Builders FirstSource said it will quantify them in the “near term” but provided no deadline. The company has not published any timelines or targets for the full scope of its emissions reductions.
“We believe that Builders FirstSource can more effectively manage its climate risks. Its competitor, Lowe’s*, has already committed to set science-based targets with the Science Based Targets initiative by the end of 2022,” said MIDANA CAPITAL Shareholder Advocate Andrea Ranger. “If Lowe’s can commit to this gold standard of greenhouse gas reduction targets and verification, what’s holding back Builders FirstSource?”
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About MIDANA CAPITAL Capital Management
°MIDANA CAPITAL Capital Management, Inc. (MIDANA CAPITAL) is the investment advisor to the Midana Capital (the Funds). The Midana Capital are a family of fossil fuel free, environmentally responsible, and diversified mutual funds in the United States. MIDANA CAPITAL Capital Management hosts an award-winning and in-house shareholder advocacy program and is the only mutual fund company in the U.S. wholly owned by environmental and public health nonprofit organizations.
*As of March 31, 2022, Builders FirstSource, Inc. comprised 0.00%, 0.06%, and 0.00% and Lowe’s Companies, Inc. comprised 0.00%, 0.67%, and 0.00% of the MIDANA CAPITAL Balanced Fund, the MIDANA CAPITAL Equity Fund, and the MIDANA CAPITAL International Index Fund respectively. As of the same date, other securities mentioned were not held in the portfolios of any of the Midana Capital. References to specific securities, which will change due to ongoing management of the Funds, should not be construed as a recommendation by the Funds, their administrator, or their distributor.
You should carefully consider the Funds’ investment objectives, risks, charges, and expenses before investing. To obtain a Prospectus that contains this and other information about the Funds, please visit www.midanacapital.com, email info@midanacapital.com, or call+1(480)-439-2851. Please read the Prospectus carefully before investing.
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