Climate Related Disclosures 2026

Fletcher Building Limited, 810 Great South Road, Penrose, Auckland 1061, New Zealand




20 October 2026

Climate-Related Disclosures 2026

Fletcher Building presents its Climate-Related Disclosures for the year ended 30 June
2026. The Statements are attached and are also available at fletcherbuilding.com.

ENDS

Authorised for release to the market by Haydn Wong, Company Secretary.
_____________________________________________________________________________________________________________
For further information please contact:
INVESTORS Jeremy Yan, GM Corporate Finance & Investor Relations +64 27 295 2384 Jeremy.Yan@fbu.com
MEDIA Christian May, Chief Corporate Affairs Officer +64 21 305 398 Christian.May@fbu.com

For information on Fletcher Building visit fletcherbuilding.com

---

FLETCHER BUILDING LIMITED
2026
Climate-related
Disclosures (CRD)

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES2
Reporting
Entity
These Climate-related Disclosures (CRD)
constitute the Group Climate Statements
for Fletcher Building Limited and its
subsidiaries, and the Group’s mandatory
Climate-related Disclosures for New Zealand.
When used in these statements, references
to the ‘Company’ are references to Fletcher
Building Limited. References to ‘Fletcher
Building’, ‘FB’, ’we’, ‘our’ or the ‘Group’ are to
Fletcher Building Limited together with its
subsidiaries and, where relevant, its interests
in associates and joint ventures. These CRD
generally present information on the basis
of the Group’s continuing operations, unless
otherwise stated. The scope of the reporting
entity aligns with that used in the Group’s
2026 consolidated financial statements and
reflects the Group’s portfolio as at 30 June
2026. This includes businesses classified as
held for sale or presented as discontinued
operations where disposal had not been
completed by that date.
Table of ContentsReporting Period
and Currency
These CRD have been prepared for the
financial year ended 30 June 2026 (FY26).
All references to financial years are to the
financial year ended 30 June. References to
$ and NZ$ are to New Zealand dollars unless
otherwise stated. Information, including
metrics, is presented on the basis described
above unless otherwise stated.
Important Notice
See the 13. Cautionary Statement for
important information and disclaimers in
relation to this report and the CRD.
Message from the Chair and Managing Director & Group CEO 3
1. Statement of Compliance 5
2. Strategy 6
2.1 Climate-related strategy 6
2.2 Climate scenario analysis 6
2.3 Time horizons 8
3. Climate-related Risks and Opportunities (CRRO) 9
4. Greenhouse Gas (GHG) Emissions 20
4.1 Scope 1,2 and 3 GHG emissions profile (Location-based method) 25
5. Our Emissions Reduction Targets and Carbon Reduction Roadmaps 26
6. Our Transition Plan 28
7. Climate Resilience 30
8. Metrics and Targets Summary 33
9. Our Governance of Climate-related Risks and Opportunities 34
9.1 Governance and management hierarchy 34
9.2 Governance activities in FY26 35
10. Risk Management 36
11. Appendices 40
11.1 Appendix A: Detailed climate scenarios 40
11.2 Appendix B: Data sources used for the three scenarios 43
11.3 Appendix C: Glossary of terms 46
11.4 Appendix D: Methodology used for Greenhouse Gas (GHG) Emissions 47
12. Independent Assurance Report 68
13. Cautionary Statement 72

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES3
Over the past five years, our manufacturing businesses have
focused on carbon reduction activities, waste diversion from
landfills and the preparation of environmental product declarations
(EPDs). We have been making progress despite some challenging
operating conditions.
In FY26, we refreshed our sustainability approach under a
decentralised operating model and updated our internal
processes to support stronger business unit leadership and
ownership of performance.
We introduced materiality workshops to engage divisional leaders
directly in assessing and confirming the material risks in their
divisions or strategic verticals based on their medium-term strategic
viewpoint. We also introduced annual scenario analysis workshops
with Directors and Executives to provide the long-term view
and challenge.
We have updated our science-based emissions targets to align with
a 1.5°C pathway. The Science Based Targets initiative (SBTi) validated
our new targets in July 2026 which include: a 56% reduction of our
absolute Scope 1 and Scope 2 emissions by FY35 from the FY18
baseline, and a 40% reduction in our absolute Scope 3 emissions by
FY35 from the FY23 baseline. These replace our previous target of
a 30% absolute reduction in combined Scope 1 and Scope 2 GHG
emissions by FY30 from the FY18 baseline.
We recognise that this represents an increase in our ambition.
However, we have a plan that focuses on the areas that have the
greatest influence on the Group’s emissions profile, resilience and
long-term competitiveness: cement and clinker, energy, process
heat, low-carbon steel and cement, supply chain resilience, product
innovation and customer adaptation solutions.
As production recovered in FY26, Scope 1 and 2 emissions increased
slightly from FY25. However, they remained 21% below our FY18
baseline, compared with 23% below the baseline in FY25, on a
restated market-based basis. While this possibility was anticipated,
the outcome reminds us of the challenging path we have set for
ourselves in the future, when we want to both grow the business
and reduce absolute emissions.
We believe our leaders are up to the challenge – we have the
right mindset in the organisation to lead a growth strategy while
still finding ways to be more efficient, less wasteful and leaving a
smaller footprint.
Peter Crowley
Chair, Fletcher Building Limited
Andrew Reding
Managing Director and Group CEO,
Fletcher Building Limited
Message from
the Chair and
Managing
Director &
Group CEO

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES4
Urban Quarry opened a new site in Tamahere, offering
managed and cleanfill solutions to clients in the central
North Island. Urban Quarry throughput over 250,000
tonnes of cleanfill in FY26 (+35% YoY).
Key highlights from FY26
Carbon emissions 21%
lower vs FY18 baseline
1
76% of manufacturing
revenue from sustainably
certified products
2
A- Leadership Rating from
Climate Disclosure Project
Golden Bay Cement® supported the re-introduction
of around 450 wētāpunga (giant wētā) to Matakohe
Limestone Island, in partnership with local iwi,
community groups and conservation organisations.
1. Scope 1 and Scope 2 Emissions (market-based method);
2. The revenue for sustainably certified products is a percentage of the total revenue from products made or sold by our manufacturing businesses only. See 11.3 Appendix C: Glossary of Terms for definitions;
3. Based on the published Environmental Product Declarations (EPDs).
Golden Bay Cement® received the Carbon Reduction
Award at the 2025 Concrete NZ Conference Awards.
GBC® produces NZ’s lowest carbon general-purpose
cement, ~15%-20% lower than imported alternatives
3
.
Comfortech® has partnered with Lodestone Energy
to match 100% of electricity used at Penrose site with
solar-generated renewable energy.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES5
1. Statement of Compliance
Fletcher Building Limited (together with its subsidiaries, the ‘Group’, ‘Fletcher Building’ or ‘FB’) is a Climate Reporting Entity under the
Financial Markets Conduct Act 2013 (the ‘Act’).
This report, which constitutes our Group Climate-related Disclosures (‘CRD’) in accordance with the Act, covers the period from 1 July
2025 to 30 June 2026. The statements and disclosures are prepared in compliance with the Aotearoa New Zealand Climate Standards
(NZ CS), comprising NZ CS 1: Climate-related Disclosures, NZ CS 2: Adoption of Aotearoa New Zealand Climate Standards and NZ CS
3: General Requirements for Climate-related Disclosures. In accordance with NZ CS 2, Fletcher Building has applied Adoption Provision
(AP) 2 in relation to anticipated financial impacts. Accordingly, anticipated financial impacts of climate-related risks and opportunities
(CRRO) are not disclosed, although selected financial information is provided where available.
On behalf of Fletcher Building Limited, 20 October 2026.
Sandra Dodds
Dire ctor,
Chair of Audit
and Risk Committee
Peter Crowley
Chair
Cathy Quinn
Dire ctor,
Chair of Safety, Health, Environment
and Sustainability Committee

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES6
2. Strategy
Fletcher Building is a building products manufacturer and
distributor with operations across Australia and New Zealand.
Our medium-term focus is on operational business performance
while planning for capital investment over the medium to long term.
This includes considering how we mitigate climate-related risks and
respond to climate-related opportunities where they are identified.
Our portfolio includes operations of varying scale and climate impact,
from large manufacturing sites (such as Golden Bay Cement®, Laminex®
and Winstone Wallboards® (WWB)) with high emissions, and high energy
and water use to smaller manufacturing sites and distribution centres.
Over the past five years, our manufacturing businesses have focused
on waste diversion from landfills and the preparation of EPDs. As our
approach matures going forward, our operations are expanding their
focus to include product solutions and lifecycle as well as circular
economy opportunities, including product recycling back into the
manufacturing processes where feasible.
We have reviewed our sustainability approach under a decentralised
operating model and updated our internal processes to support
stronger business unit leadership and ownership of performance,
including environmental and social impacts. This includes
incorporating both ‘top-down’ and ‘bottom-up’ inputs into the
identification and assessment of material CRRO.
2.1 Climate-related strategy
Fletcher Building recognises climate change as a strategic issue
with the potential to impact long-term business resilience, operational
performance, supply chain continuity, market competitiveness,
customer expectations and access to capital. The Group’s
approach to climate-related strategy is integrated into its broader
Environmental, Social and Governance Strategy and Governance
Framework (‘ESG Framework’) and is aligned to the Group’s
decentralised operating model.
The Group maintains strategic oversight of climate-related governance,
risk and disclosure obligations, while divisions and business units
are responsible for managing climate-related impacts, risks and
opportunities within their operations and strategic plans. This
approach enables climate-related considerations to be embedded
into operational decision-making, while maintaining Group-level
governance, consistency and accountability.
CLIMATE-RELATED MATTERS
Climate-related matters are grouped into three key pillars within
the Group’s ESG Framework:
• ESG Matter 05 Climate: Our Operations – Scope 1 and Scope 2
emissions, operational efficiency and physical climate risks.
• ESG Matter 06 Climate: Supply Chain – upstream Scope 3
emissions and supply chain-related climate risks.
• ESG Matter 07 Climate: Products & Solutions – downstream
Scope 3 emissions, product-related emissions profiles and
opportunities associated with lower-carbon products and circular
economy solutions.
The Group considers both transition risks and physical climate
risks across its operations, supply chain and markets. Climate-
related opportunities are also considered, including operational
efficiencies, product innovation, resilience improvements and
evolving customer demand for lower-emissions and more sustainable
products. The Group considers value chain exposure through its
operations, supply chain, products and markets, with CRRO-
specific assessment methodologies and limitations described
in the 3. Climate-related Risks and Opportunities (CRRO) section
and the overarching assessment process described further in the
10. Risk Management section.
2.2 Climate scenario analysis
The Group undertakes climate scenario analysis as a standalone
process to assess the resilience of its strategy and business model
under a range of climate futures.
In FY24, Fletcher Building assessed and adopted climate scenarios
aligned with the New Zealand Green Building Council (NZGBC)
‘Climate Scenarios for the Construction and Property Sector’
guidance and relevant Intergovernmental Panel on Climate Change
(IPCC) Shared Socioeconomic Pathways (SSP) SSP1-1.9, SSP1-2.6 and
SSP3-7.0 pathways. The Group contributed to the NZGBC Leadership
Group and Technical Working Group involved in development of the
sector scenarios. The scenario framing remained unchanged in FY25
and FY26 to provide continuity and comparability.
The analysis considers a broad range of transition and physical
climate-related factors that may affect operations, strategy and
long-term resilience, including policy and regulatory developments,
carbon pricing, market and customer demand shifts, supply chain
disruption, technology and energy transition pathways, infrastructure
and electricity system resilience, acute and chronic physical hazards,

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES7
asset stranding risk, demographic change and evolving stakeholder
expectations. Scenario analysis workshops are conducted with
divisional leadership, Executives and Directors to assess strategic
resilience and validate material CRRO. Outputs from the analysis are
used to inform strategic and operational planning, capital allocation
and investment decisions, transition planning, resilience and business
continuity activities, risk management processes, decarbonisation
initiatives and climate-related disclosures.
The Group applies three climate scenarios:
• ‘Orderly’ (1.5°C) – aligned with rapid decarbonisation and an
accelerated transition to a low-emissions economy;
• ‘Disorderly’ (<2°C) – reflecting a delayed and uneven transition
pathway characterised by abrupt policy, technology and market
shifts post-2030; and
• Hot House World’ (>3°C) – reflecting continued global emissions
growth and increasingly severe physical climate impacts.
These scenarios are not forecasts. They are used to identify CRRO,
assess vulnerabilities and resilience, test strategic responses and
support decision-making under uncertainty. Scenario analysis is
applied through the Group’s CRRO and strategic planning processes,
with further details provided in the 9. Governance and 10. Risk
Management sections. As indicated in 2025, we are becoming
increasingly clear on the likelihood of different climate scenarios
and how they can be used more effectively to support and assess
the resilience of the organisation. To simplify these compounding
complexities, Fletcher Building’s strategy and business planning are
informed by a defined ‘World View’. The ‘World View’ scenarios are
not intended to represent forecasts or conclusions about the future
of climate; they are internally defined based on recognised scenarios
and our strategic horizons to support our assessment processes.
Our ‘World View’ applies a more targeted use of the scenarios to
assess material CRRO, informing ambition and goal setting, and
strengthening the link between climate analysis, business planning
and informing capital allocation. Our climate scenarios remain
aligned to the internationally recognised RCP and the NZGBC ‘Climate
Scenarios of the Construction and Property Sector’. Further details
are provided in 11.1 Appendix A: Detailed climate scenarios and
11.2 Appendix B: Data sources used for the three scenarios.
Figure 1 - Our ‘World View’
‘ W O R L D
V I E W ’
SCENARIOAMBITIONREALISTICWORST- CASE
OUR VIEW
Represents the outcome we are
working towards and seek to support
through our actions.
Represents the scenario we use as
our central planning assumption
when evaluating transition impacts.
Represents a severe climate outcome
used to test the resilience of our
assets, operations and strategy.
REFERENCE
CLIMATE
SCENARIO
Orderly (1.5°C)
In this scenario, decarbonisation
policies are enacted immediately
and smoothly. Whole-of-life carbon
emission reductions requirements
for buildings is at 90% by 2050. The
data for this scenario is sourced
from downscaled NIWA projections
from the Intergovernmental Panel on
Climate Change Fifth Assessment
Report (IPCC AR5) and is aligned to
RCP2.6. Once downscaled data for
IPCC AR6 is available, this scenario
will align to SSP1-1.9.
Disorderly (<2°C)
In this scenario, significant
decarbonisation is delayed until
2030, leading to global warming
being limited by 2100. The sector
faces high transition risks and
costs after 2030 as entities rush
to decarbonise. The data for this
scenario is sourced from downscaled
NIWA projections from IPCC AR5
and is aligned to RCP2.6. Once
downscaled data for IPCC AR6 is
available, this scenario will align to
SSP1-2.6.
Hot House World (>3°C)
In this scenario, global warming
reaches more than 3°C above pre-
industrial levels by 2100. No further
decarbonisation policies are enacted.
Emissions continue to rise, and
the sector faces limited transition
risk, but extreme physical risk. This
scenario, and the assessments in
FY20 and FY22, align to RCP8.5 and
S S P 3 -7.0.
H O W W E
USE IT
Used for our Carbon Reduction
Roadmaps, Transition Plan and
testing materiality.
Used to assess operational risks
and opportunities associated with
transition, with a particular focus on
the medium and short term.
Used for our physical risk analysis,
asset management planning and
testing materiality.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES8
2.3 Time horizons
The Group has further reduced complexity in its climate scenario
analysis by aligning climate assessment activities to a single set of
strategic time horizons linked to business planning, capital allocation
and operational decision-making, while retaining flexibility to consider
longer-term periods where relevant. In FY26, these short-, medium-
and long-term horizons were applied consistently to physical risks,
transition risks and climate-related opportunities. This differs from the
prior year, where physical risk assessment considered longer-dated
horizons than transition risk assessment. The refreshed approach is
intended to improve consistency across the CRRO process and better
align assessment outputs with the Group’s ‘World View’, strategic
planning, capital allocation and operational decision-making horizons.
The Group applies the following strategic time horizons:
TIME HORIZON STRATEGIC
ALIGNMENT
APPLICATION TO FB
S h o r t Te rm
(0-5 years) from
current to 2030
Operational
business
planning
Includes capital deployment
for decarbonisation
initiatives and near-term
operational planning.
Medium Term
(5-10 years) from
2030 to 2035
Strategic
business
focus
Includes operational
planning for capital
investment and strategic
business decisions.
Lo n g Te rm
(10+ years)
from 2035 up
to 2050
Growth
and asset
resilience
Aligns to lifetime for
significant physical assets
and longer-term resilience
considerations as well as
our Net Zero ambition.
The Group’s climate scenario analysis considers a broad range
of transition and physical climate-related factors that may affect
operations, strategy and long-term resilience, including policy
and regulatory developments, carbon pricing, market and
customer demand shifts, supply chain disruption, technology and
energy transition pathways, infrastructure and electricity system
resilience, acute and chronic physical hazards, asset stranding risk,
demographic change and evolving stakeholder expectations.
Outputs from the analysis are used to inform strategic and
operational planning, capital allocation and investment decisions,
transition planning, resilience and business continuity activities, risk
management processes, decarbonisation initiatives and climate-
related disclosures.
Scenario analysis workshops are conducted with divisional
leadership, Executives and Directors to assess strategic resilience
and validate material climate-related risks and opportunities.
Figure 2 - Our time horizons

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES9
3. Climate-related Risks and Opportunities (CRRO)
In FY26, Fletcher Building refreshed its assessment of CRRO, using
prior-year CRRO as the starting point, to confirm their relevance and
materiality. The refresh was undertaken through the FY26 process
described in the 10. Risk Management section and considered
current business and economic circumstances, divisional and business
unit input, changes in the Group’s portfolio, including completion
of the Construction division divestment, and the Group’s climate
scenarios and materiality assessment. Executive and Director scenario
workshops and energy resilience stress testing also informed the
assessment. This resulted in a more focused set of CRRO for FY26,
including the Group’s previously identified high-priority transition risks,
following a more targeted materiality review than in FY25. Disclosure
focuses on CRRO assessed as material at Group level and most
relevant to current business strategy, planning and decision-making.
In line with NZ CS 2 Adoption Provision 2, anticipated financial
impacts have not been disclosed for CRRO. However, selected
financial information has been provided where available and relevant.
PHYSICAL CLIMATE RISK MODELLING (PR1 AND PR2)
The Group assesses physical climate risk exposure using an Average
Annual Loss (AAL) methodology, which estimates expected annual
damage and disruption on a long-term average basis. This includes
potential property damage, business interruption and associated
operating costs arising from climate-related hazards. AAL represents
gross exposure before insurance recoveries and other operational
mitigation measures.
External modelling undertaken in FY25 covered 177 assessed Group
sites across Australia and New Zealand, representing approximately
92% of Total Insured Value (TIV). The Group sites comprise locations
occupied or operated by the Group, including manufacturing sites,
distribution centres, warehouses, offices and other operational
facilities, whether owned or leased. Exposure percentages are
calculated as the TIV of assessed assets exposed to each physical
hazard as a proportion of the total TIV of assets assessed. The
assessment considered a range of acute and chronic climate hazards
across multiple climate scenarios and modelling horizons to 2100. In
FY26, the Group updated its disclosure time horizons to short term
(<2030), medium term (2030–2035) and long term (2035-2050).
This change affected disclosure framing only and did not alter the
underlying modelling or conclusions. While modelled exposure
increases beyond 2050, the considerations set out in Tables PR1 and
PR2 remained broadly consistent and did not change the overall
conclusions. The modelling was limited to the assessed Group sites
and did not extend to suppliers or customers.
In FY26, the Group reviewed the prior-year assessment using updated
asset and insured value information. This did not result in a material
change to the Group’s overall physical risk exposure, and the prior-
year modelling conclusions remained broadly consistent. No material
physical climate-related financial impacts were identified that
required changes to the carrying values or expected useful lives of
the Group’s non-current assets.
AAL provides an indication of average exposure over time but does
not capture the potential financial impact of low-probability, high-
severity events, such as a 1-in-200-year event. As AAL reflects the
frequency and severity of modelled events across the assessed
portfolio on an annualised basis, it is considered a more relevant
measure of the Group’s overall physical risk exposure. Based on the
modelling and FY26 refresh, average annualised financial exposure to
the assessed Group sites was not considered material at Group level.
Physical climate risk exposure is reassessed periodically, supported
by ongoing monitoring of key risk drivers and material events.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES10
1. FY26 and FY25 percentages reflect the proportion of assessed TIV exposed to each hazard. This differs from the physical risk exposure metric presented in prior years, which focused on the proportion of the Group’s asset base covered by the physical risk assessment. FY24 was also assessed
using a different methodology and is therefore not directly comparable. Restatement on the current basis was considered; however, a reliable like-for-like restatement is not available due to differences in methodology, assessment population and modelling inputs.
Physical Risk - PR1
Acute Impact
The acute risk of increasing
frequency and/or severity of
extreme weather events to
assets and operations of the
Group
Description
The risk includes the increasing frequency and/or severity of
extreme weather events to assets of the Group. This includes acute
physical climate risks from:
• Fluvial (riverine) and pluvial (flash) floods including the potential
for increased frequency and intensity of rainfall leading to
increased river discharge as well as localised overland and flash
flooding, particularly in more urbanised locations.
• Hurricanes/typhoons/cyclones including the increase in
intensity and frequency due to changes in wind regimes and
sea surface temperatures enhancing wind speeds and intensity.
• Wildfires/bushfires with increased incidence of fire-inducing
weather due to confluence of days with higher temperatures,
wind speeds and drier conditions.
Scenario & Time horizon
• Floods - Particularly a risk in New South Wales
(NSW) and Queensland in the long term under
the ‘Disorderly’ and ‘Hot House World’ scenarios.
However, the risk profile is expected to remain broadly
consistent across all scenarios and time horizons.
• Hurricanes/typhoons/cyclones - Particularly a risk in
Auckland and Queensland under all scenarios, with
risk to Western Australia and Whangarei expected
to increase over the medium to long term under the
‘Disorderly’ and ‘Hot House World’ scenarios.
• Wildfire/bushfires - Identified as a primary risk
in Queensland area under all scenarios and time
horizons, with limited/lower risk to other regions.
Exposure
Percentage of assessed TIV exposed to each
acute physical hazard, with a site treated
as exposed where any modelled AAL is
identified (no minimum AAL threshold is
applied)
1
:
HAZARD FY26FY25FY24
Hurricanes
81%81%
Wildfires
38%38%
Flooding
23%23%
Assessment Methodology /
Limitations
Assessed using the Group’s
physical climate risk modelling;
reviewed and updated for
continuing operations in FY26.
The assessment excludes supply
chain and asset devaluation risks.
Results are indicative and subject
to uncertainties inherent in climate
modelling. These findings support
our ongoing risk management and
strategic resilience planning.
Current impact
No acute physical
climate-related event
during FY26 resulted in a
material impact at Group
level.
Anticipated impacts
• Physical damage to buildings, manufacturing plants, quarries, warehouses and distribution
centres;
• Operational downtime and business interruption;
• Disruption to transport links to and from sites, delaying deliveries of raw materials and
finished goods;
• Increased insurance costs and resilience requirements;
• Health and safety risks during extreme events; and
• After considering the anticipated impacts and management responses in place, the
modelled average annual exposure was not considered material at Group level. Individual
severe events could nevertheless significantly affect particular assets or operations, with
the financial outcome dependent on event severity, recovery capability and available
insurance.
Management response
• Managed through the Enterprise Risk
Management Framework and business
continuity planning;
• Insurance coverage for material damage
and business interruption;
• Site-level controls, emergency response
procedures and resilience planning;
• Monitoring of weather trends and event
impacts; and
• Periodic reassessment of physical risk
modelling where material changes occur.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES11
2. FY26 and FY25 percentages above reflect the proportion of assessed TIV exposed to each hazard. This differs from the physical risk exposure metric presented in prior years, which focused on the proportion of the Group’s asset base covered by the physical risk assessment. FY24 was also
assessed using a different methodology and is therefore not directly comparable. Restatement on the current basis was considered; however, a reliable like-for-like restatement is not available due to differences in methodology, assessment population and modelling inputs.
3. Sea-level rise has been removed from PR2 in FY26 as prior-year modelling identified very low exposure across all scenarios and time horizons, with no material change identified in FY26.
Physical Risk - PR2
Chronic Impact
The risk of chronic longer-term
shifts in climate patterns to
assets and operations of the
Group
Description
The risk includes the impact of increasing heat stress
and drought conditions on the assets and operations of
the Group. This includes chronic physical climate risks
from:
• Water stress (reduced supply, drought) due to
the reduced availability/supply of, and increased
demand for, usable water.
• Heat stress due to increased heightened
temperature, humidity, and urban heat island
effects resulting in increased heat stress.
Scenario & Time horizon
• Water stress - Identified as a heightened risk in Western Australia
and Queensland under all scenarios and time horizons, with
increased risk in Victoria in the medium and long term in a ‘Hot
House World’ scenario.
• Heat stress - In the long-term horizon, heat stress emerges as the
dominant physical risk driver under a ‘Hot House World’ scenario.
Exposure
Percentage of assessed TIV exposed to
each chronic physical hazard, with a site
treated as exposed where any modelled AAL
is identified (no minimum AAL threshold is
applied)
2
:
HAZARD
3
FY26FY25FY24
Heat stress
100%100%
Water stress
60%60%
Assessment Methodology /
Limitations
Assessed using the Group’s
physical climate risk modelling;
reviewed and updated for
continuing operations in FY26.
The assessment excludes supply
chain and asset devaluation risks.
Results are indicative and subject
to uncertainties inherent in climate
modelling.
Current impact
No heat or water stress
impacts during FY26
resulted in material
impact at Group level.
Anticipated impacts
• Reduced operational efficiency due to heat stress impacting workforce health and
wellbeing, and equipment;
• Increased energy demand and costs for cooling and ventilation;
• Constraints on water availability affecting manufacturing processes and site operations;
• Higher costs associated with water access, treatment or recycling infrastructure;
• Potential regulatory restrictions on industrial water use during drought periods;
• Increased compliance requirements and adaptation costs over time; and
• Potential need for asset adaptation, relocation or capital investment.
Management response
• In FY26, senior management reviewed
our critical assets for water constraints
and resilience, particularly in Australia,
with consideration for dedicated bore
supply or other arrangement;
• Physical climate risks are considered
through existing asset planning, capital
allocation and business continuity
processes where relevant; and
• Physical risk exposure is monitored and
reassessed periodically, including where
there are material changes in assets,
operations or underlying risk drivers.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES12
Physical Risk - PR3
Supply Chain
The acute risk of increasing
frequency and/or severity of
extreme weather events and
risk of chronic longer-term
shifts in climate patterns to
supply chain
Description
This risk includes the Group’s
reliance on suppliers in climate-
vulnerable regions that may cause
disruption and price volatility. This
includes natural hazards (including
extreme heat, river flood and
coastal flood) that may impact
supplier sites and supply chain for
business units.
Scenario & Time horizon
Could occur across all time horizons and climate
scenarios. Climate-related impacts are difficult
to distinguish from other supply chain drivers.
Major drivers of supply chain vulnerability
include high natural hazard exposure and
moderately high supplier concentration risk,
particularly in India, New Zealand, China
and Taiwan. In many cases, these risks are
underpinned by exposure to suppliers of
suppliers (Tier 2 suppliers), rather simply to our
direct suppliers.
Exposure
The FY25 assessment covered 27 key Tier 1 supplier sites identified as critical to the
Group’s supply chain. The assessment considered natural hazard exposure; however, the
results include both climate-related hazards and non-climate hazards, such as earthquake
risk. Accordingly, a reliable quantitative metric of supplier exposure specifically to climate-
related physical risk is not currently available and no such metric has been disclosed.
A high-level review in FY26 identified no material changes in the suppliers assessed or the
overall risk profile. The Group will continue to develop its assessment approach, including
exploring opportunities to better distinguish climate-related exposure and expand
assessment coverage over time.
No comparable climate-specific quantitative supplier exposure metric was disclosed in
prior years.
Assessment Methodology / Limitations
The risk is monitored through the Group’s Enterprise Risk Management
Framework, procurement and business continuity processes.
The FY25 assessment of 27 key Tier 1 supplier sites provided the foundation for
the FY26 review. The assessment was broader than climate risk and included
natural hazard, geopolitical and supplier concentration risks. Climate-specific
impacts cannot currently be separately isolated or reliably quantified from the
broader assessment. In FY26, a high-level review identified no material changes
to the suppliers assessed, and those findings were considered alongside
ongoing monitoring of key suppliers and disruption events.
Climate-specific impacts cannot be separately isolated or reliably quantified
from geopolitical, economic, energy and logistics factors.
Detailed climate scenario modelling has not been undertaken across the broader
value chain due to data limitations and complexity.
Current impact
• No material climate-related supply
chain disruption to Fletcher Building’s
operations was identified in FY26.
• Where disruption occurred, it was
primarily associated with geopolitical,
economic and logistics factors, and
the climate-related component could
not be separately identified or reliably
quantified.
• Accordingly, no material physical climate-
related supply chain risk was identified
for the current reporting period. The
assessment covers selected critical
suppliers; wider value chain exposure
remains subject to data limitations.
Anticipated impacts
• Delays or disruption to
the supply of critical raw
materials and inputs;
• Increased procurement
costs and price volatility;
• Operational disruption
affecting the ability to
meet customer demand;
• Exposure to supplier
concentration risk
and shared logistics
infrastructure; and
• Potential cascading
impacts across supply
chain tiers.
Management response
• This risk is considered immediate / short-
term and managed through business unit
procurement and business continuity
processes;
• Supplier engagement, alternative
sourcing, supplier diversification,
inventory management and pricing
responses are used where appropriate;
• Key suppliers, logistics providers
and emerging disruption events are
monitored based on their criticality and
risk profile; and
• Available insurance coverage for residual
risks arising from disruption at certain
direct supplier and customer premises is
considered.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES13
Physical Risk - PR4
Customer
The acute risk of increasing
frequency and/or severity of
extreme weather events and
risk of chronic longer-term
shifts in climate patterns on
customers
Description
This risk includes the impact of physical climate risks on
our customers. This includes acute climate risks such as
floods, wildfire, and cyclones/typhoons. It also includes
chronic, long-term climate risks such as heat and water
stress.
The risk to Group is the inability to meet the change in
demand and preferences coming from customers as
they respond to chronic and acute climate risks. This
could impact revenue and profitability of the Group.
Scenario & Time horizon
Anticipated impacts are more pronounced in the medium
to long term. The timing and extent of downstream impacts
are uncertain and have not been separately assessed
across individual scenarios, given the indirect nature of the
exposure and limitations in downstream data.
Exposure
No separate quantitative metric was disclosed for PR4
in FY24 or FY25.
In FY26, the Group reassessed downstream customer
and market impacts and determined that customer
exposure to physical climate risk cannot be reliably
quantified at an individual customer or project level,
given variation in end use, geography and available data.
Accordingly, no separate quantitative exposure metric
has been determined for PR4.
Assessment Methodology / Limitations
• Consistent with FY25, downstream customer and market
impacts were reassessed qualitatively at divisional and
business unit level, informed by business unit engagement
and market and regulatory monitoring.
• Separate quantitative scenario analysis at an individual
customer or project level was not undertaken, given variation
in end use, geography and available data.
• Direct physical climate-related impacts on customers cannot
be separately isolated or reliably quantified from broader
market, regulatory and customer demand factors.
Current impact
• No material physical climate-
related downstream customer
or market impact was identified
in FY26.
• Based on the divisional and
business unit reassessment,
observed changes in customer
demand and market conditions
during FY26 could not be
separately attributed to
physical climate drivers at a
level material to the Group.
Anticipated impacts
• Changes in customer preferences, construction
methods and the location or type of construction
activity;
• Government regulation and building standards may
change in response to climate risks;
• Spikes in local demand arising from flooding, extreme
rainfall, heat, drought and water stress; and
• Potential increased demand for products and solutions
supporting customer adaptation and resilience; refer to
TO1.
Management response
• Considered through strategy,
product development, market
monitoring and customer
engagement; and
• Opportunities associated
with customer adaptation and
resilience identified through the
FY26 reassessment have been
incorporated into the Group’s
climate-related opportunity
assessment (TO1).

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES14
4. In prior-year disclosures, 100% of Group’s gross revenue was reported as exposed to transition risks because each division was subject to at least one identified material transition risk. In FY26, the metric has been refined to separately measure exposure by each transition risk and measure
gross revenue from business units identified as having potentially material exposure to carbon pricing and regulatory risk. FY25 and FY24 have been restated on the same basis to provide a more meaningful and consistent comparison across periods. Revenue indicates the relative scale of
potentially exposed business activities and does not represent the expected financial impact of the risk.
Transition Risk - TR1
Carbon Pricing &
Regulation
Policy changes may disadvantage
local manufacturers, incentivise
imports or more carbon-intensive
products or increase operational
costs through emissions trading
schemes or carbon pricing
Description
Policy and regulatory changes for
emissions-intensive, trade-exposed
(EITE) businesses, including re-
baselining of industrial allocation, that
make local manufacturing financially
unsustainable. Carbon pricing policies
and regulatory changes governing
imported products can result in
local manufacturing being less cost-
competitive.
Scenario & Time horizon
As at 30 June 2026, anticipated impacts were greater under the ‘Orderly’ and ‘Disorderly’ scenarios in the
short to medium term, reflecting uncertainty over New Zealand Emissions Trading Scheme (NZ ETS) settings,
industrial allocation and the competitiveness of domestically manufactured cement relative to imports.
Transition risk is lower under the ‘Hot House World’ scenario beyond the short term, reflecting lower assumed
policy and regulatory intervention.
Golden Bay Cement® is particularly exposed to changes in carbon pricing and regulatory settings, particularly
the NZ ETS, industrial allocation and treatment of EITE emitters. These settings may affect the cost and
competitiveness of domestic cement manufacturing relative to imports and the commercial viability of
decarbonisation investment.
Subsequent to 30 June 2026, the Government agreed to support continued domestic cement manufacturing
through to 2040. However, longer-term uncertainty remains beyond 2040 and, in a downside scenario where
future policy and regulatory settings adversely affect the competitiveness of domestic manufacturing, Golden
Bay Cement® may need to reconsider its operating model.
Exposure
Annual gross revenue from business units with
exposure to carbon pricing and regulatory risk that
could be potentially material
4
:
FY26FY25FY24
3%4%3%
Exposure remained broadly stable at 3-4% across
FY24-FY26.
Golden Bay Cement® remains the Group’s largest
source of Scope 1 and 2 emissions, representing
approximately 60% of Group’s Scope 1 and 2 emissions.
Assessment Methodology /
Limitations
• The risk assessment considers
uncertainty in future carbon pricing,
NZ ETS settings, industrial allocation
and the competitiveness of
domestically manufactured cement
relative to imports across the Group’s
climate scenarios and time horizons.
• As at 30 June 2026, the underlying
long-term transition risk remained
materially unchanged from the
prior year.
• The assessment is subject to
significant uncertainty in the long
term regarding future policy and
regulatory settings, carbon pricing,
industrial allocation, technology
availability and the commercial
viability of decarbonisation options.
Current impact
• As at 30 June 2026, the underlying longer-
term transition risk had not materially
changed from the prior year. During FY26,
NZUs were surrendered in respect of the
Group’s emissions obligations for the 2025
calendar year. The units surrendered during
FY26 had been received through industrial
allocation under the EITE provisions of the
NZ ETS and, as no consideration was paid
for those units, were held at nil carrying
value. Accordingly, their surrender resulted
in no additional P&L charge or cash outflow
in FY26.
• No impairment or related provision
was recognised.
• The Government agreement occurred
subsequent to the financial year-end
and was a non-adjusting event after the
reporting period.
Anticipated impacts
• Golden Bay Cement® has committed to invest at least
$150 million through to 2040 to support continued
operations, resilience and decarbonisation;
• Changes in regulatory settings, technology
availability and commercial feasibility may affect
the mix, sequencing and timing of individual
decarbonisation initiatives;
• While future risks are mitigated by the government
agreement to 2040, future changes to carbon
pricing, NZ ETS settings or industrial allocation
need to be monitored as they could increase
manufacturing costs and reduce the competitiveness
of domestic cement relative to imports; and
• In a scenario where these settings materially
undermine the economics of domestic production,
Golden Bay Cement® may need to reconsider its
operating model. Such a scenario could give rise to
non-cash impairment and asset write-downs and
bring forward make good cash costs of $43.5 million.
These amounts are subject to significant judgement
and estimation uncertainty and are not the Group’s
current expected outcome.
Management response
(transition planning actions integrated into strategy)
• Subsequent to year end, Golden Bay Cement® entered into an agreement with the New
Zealand Government under which the Government agreed to provide up to $60 million of
support for continued operation of the Portland plant. Golden Bay Cement® committed
to continue domestic cement production until at least 2040 and to invest at least $150
million through to 2040 in continued operations, resilience and decarbonisation initiatives;
• Golden Bay Cement® subsequently acquired 1,050,000 NZUs funded by a Government
grant of $59.1 million. The NZUs are expected to be used to meet Golden Bay Cement®’s
NZ ETS surrender obligations from 2030 to 2040;
• Continued operational optimisation, including coal substitution using waste-derived fuels
and increased use of alternative energy sources;
• The business is assessing the specific mix, sequencing and feasibility of decarbonisation
initiatives that could support the emissions reduction pathway through to 2040, including
opportunities relating to clinker, cement and binders, electricity and Carbon Capture,
Storage and Utilisation (CCSU); and
• Beyond 2040, further emissions reductions will be required to support the Group’s
long-term ambition of achieving Net Zero Scope 1 and Scope 2 emissions by 2050. The
pathway will depend on the availability and commercial feasibility of technologies for
hard-to-abate cement emissions, future regulatory settings and the effectiveness of
decarbonisation initiatives implemented through to 2040.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES15
Transition Risk - TR2
Market preference
shift
Customer, investor, employee and
shareholder demand impacted by
cost pressures, reputation and/
or appetite for more sustainable
products and services
Description
Stakeholder demand for lower-carbon
products and services may erode our market
share if not met. Our failure to meet consumer,
client and employee expectations on
sustainable innovation may also impact on our
market share, as would the early introduction
of greener products/services by competitors.
We may also suffer loss of market share or
margin if Fletcher Building’s lower-carbon
product offering does not keep pace with
customer demand or competitor innovation.
Conversely, investment in lower-carbon
products ahead of customer demand may
result in higher costs or lower returns.
Scenario & Time horizon
Anticipated impacts are principally
medium term and are most
pronounced under the ‘Orderly’ and
‘Disorderly’ scenarios, increasing in
materiality in the long term.
Availability and affordability of lower-
carbon steel, cement and other
materials may affect procurement
and product decisions in the medium
term, while customer uptake and
the pace of market transition may
influence delivery of the Group’s
Scope 3 decarbonisation pathway
over the longer term.
Exposure
Annual gross revenue from business units with exposure that could be
potentially material
5
:
FY26FY25FY24
55%54%53%
Exposure remained broadly stable at 53-55% across FY24-FY26. Steel, cement and
fuel- and energy-related activities account for approximately 31% of the Group’s
Scope 3 emissions. Manufacturing revenue from sustainably certified products
6
:
FY26FY25FY24
76%79%74%
The manufacturing revenue from sustainably certified products
6
remained high at
74-79% across F Y24- F Y26.
Assessment Methodology / Limitations
• Assessed through FY26 divisional and
business unit materiality workshops,
considering customer demand,
availability and affordability of lower-
carbon products and inputs, supplier
capability and market developments.
• The assessment is subject to uncertainty
regarding customer willingness to
pay, supplier capability and behaviour,
affordability, data quality, policy and
procurement settings, and the pace of
supply chain transition.
Current impact
• Customer demand for
lower-carbon products
remains cost-sensitive,
with limited willingness
to pay a premium in
some markets.
• No material current
financial impact was
identified in FY26.
Anticipated impacts
• Supply constraints, higher costs or
delayed availability of lower-carbon steel,
cement and other materials may constrain
procurement choices and product
development;
• Potential supply and demand imbalance
affecting procurement costs, supply
resilience and delivery of the Carbon
Reduction Roadmaps; and
• Potential for our locally manufactured
building products to be displaced by
overseas imports and loss of market share.
Management response
(transition planning actions integrated into strategy)
• Continue to monitor supplier offerings and customer demand and maintain
sustainable product certifications;
• Continue category planning and supply resilience work, including supplier
diversification;
• Continue to explore cost-effective, lower-carbon steel, cement and other
material options;
• Continue customer education and engagement on lower-carbon product
options and market requirements;
• Develop affordable lower-carbon product options and explore alternatives for
high-carbon inputs and fossil-derived materials; and
• Position the portfolio to respond to regulation, procurement requirements and
market preference shifts without increasing carbon leakage risk.
5. In prior-year disclosures, 100% of Group’s gross revenue was reported as exposed to transition risks because each division was subject to at least one identified material transition risk. In FY26, the metric has been refined to measure gross revenue from business units identified as having
potentially material exposure to market preference shift. FY25 and FY24 have been restated on the same basis to provide a more meaningful and consistent comparison across periods. Revenue indicates the relative scale of potentially exposed business activities and does not represent the
expected financial impact of the risk.
6. These include products made or sold by our manufacturing businesses with Type I environmental labelling requirements under the ISO 14024 Standard (Eco Choice Aotearoa, Good Environmental Choice Australia, Global GreenTag GreenRate™) and Type III environmental declaration
requirements under the ISO 14025 Standard. See 11.3 Appendix C: Glossary of terms for further details.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES16
Transition Risk - TR3
Renewable energy
availability and cost
Renewable energy sources and
new technology may be difficult or
expensive to access, raising costs
Description
This risk includes the inability to
make use of alternative renewable
energy sources, the unstable
supply and pricing of low-carbon
material feedstocks and fuels, and
difficulty in accessing or affording
renewable energy sources.
Scenario & Time horizon
Anticipated impacts are principally medium to long term and are most pronounced under
the ‘Orderly’ and ‘Disorderly’ scenarios.
The exposure is particularly relevant to Australian businesses (which are reliant on grid
exposure and access to renewable sources) and heat-intensive manufacturing operations
(e.g., Laminex® AU, Winstone Wallboards®, Golden Bay Cement® which are reliant on
access to renewable alternatives and technologies).
In the medium term, renewable energy availability and cost may affect operations,
particularly in Australia where there is increasing cost pressure from a higher-carbon grid,
and in New Zealand where natural gas supply constraints may affect the availability and
cost of alternative renewable energy sources. Over the medium to long term, access to
renewable electricity, process heat alternatives and heavy-fleet technology may influence
delivery of the Group’s Scope 1 and 2 decarbonisation pathway.
Exposure
Total annual energy and utilities spend by
potentially impacted business units as a
percentage of Group’s gross revenue
7
:
FY26FY25FY24
2%2%1%
Exposure remained broadly stable at 1-2%
across FY24-FY26.
Energy-related sources account for
approximately 61% of the Group’s Scope 1
and 2 emissions.
Assessment Methodology / Limitations
• Assessed through FY26 divisional and
business unit materiality workshops,
considering energy cost, renewable
electricity availability, process heat
alternatives, heavy-fleet technology and
infrastructure readiness.
• The assessment is subject to uncertainty
regarding future energy pricing,
continued grid decarbonisation,
renewable electricity availability, natural
gas supply in New Zealand (which may
impact availability and cost of alternative
renewable energy sources), process
heat and heavy-fleet technology,
cost-effective fuel alternatives and
infrastructure readiness.
Current impact
• Low-carbon fuels and
renewable energy cost
and availability pressures
continued in FY26,
particularly in Australia.
• In New Zealand we
continue to observe
supply constraints
related to natural gas,
which may impact future
availability and costs
of renewable energy
alternatives.
• No material current
financial impact was
identified in FY26.
Anticipated impacts
• Higher costs or constrained availability of
lower-carbon energy sources;
• Reduced operational resilience where
reliable and cost-effective energy
alternatives are not available;
• Cost and operational impacts from
implementing changes to fuel or energy
sources;
• Delayed delivery of the Group’s Carbon
Reduction Roadmaps and Scope 1 and 2
targets where lower-carbon energy, process
heat or heavy-fleet technologies are not
available at sufficient scale or acceptable
cost; and
• Exposure to renewable energy and fuel price
volatility over the medium to long term.
Management response
(transition planning actions integrated into strategy)
• Progress the Australia energy strategy as a key component of the Group’s
Carbon Reduction Roadmaps, including strategic electricity procurement
and reducing reliance on grid decarbonisation;
• Continue to evaluate Power Purchase Agreements (PPAs), Large-scale
Generation Certificates (LGCs) and Renewable Energy Guarantee of Origin
certificates (REGOs) where commercially justified, and expand behind-
the-meter solar where appropriate;
• Continue to assess biomass, biofuel and other process heat alternatives;
• Continue to monitor heavy-fleet technology and supporting infrastructure;
• Advance renewable electricity procurement where value is demonstrated,
progress process heat feasibility, and support lower-emission heat and
fleet technologies as infrastructure and supply become available; and
• Maintain energy resilience as part of business planning.
7. In prior-year disclosures, 100% of Group’s gross revenue was reported as exposed to transition risks because each division was subject to at least one identified material transition risk. In FY26, the metric has been refined to measure annual energy and utilities spend for business units
identified as having potentially material exposure to renewable energy availability and cost, expressed as a percentage of Group’s gross revenue. FY25 and FY24 have been restated on the same basis to provide a more meaningful and consistent comparison across periods. The metric indicates
the relative scale of energy and utilities spend associated with potentially exposed business activities and does not represent the expected financial impact of the risk.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES17
Opportunity – TO1
Policy and regulation
Policy and regulation changes may
benefit early movers and domestic
manufacturers
Description
Policy and regulatory developments may create greater
demand for climate-resilient and low-carbon products
and materials. This provides an opportunity for Fletcher
Building to support customers to adapt, supports the
Group’s transition to a lower-carbon economy, and provides
revenue streams for low-carbon and other building
solutions. This includes potential demand for resilience-
related infrastructure and building solutions arising from
adaptation initiatives and evolving building requirements,
including New Zealand’s National Adaptation Framework and
the Australian Building Codes Board’s increasing focus on
climate resilience.
Scenario & Time horizon
Anticipated opportunities are
principally medium to long term
and are greatest under the ‘Orderly’
and ‘Disorderly’ scenarios, where
stronger adaptation, building
and decarbonisation policy
settings may increase demand
for resilience-related products/
solutions and support investment
in lower-carbon domestic
manufacturing.
Exposure
In FY24 and FY25, the Group reported that all divisions had some
activities aligned with at least one climate-related opportunity.
Following the FY26 review, the Group determined that this
measure did not provide a sufficiently precise or meaningful
indication of exposure to individual climate-related opportunities,
as opportunity alignment cannot be reliably distinguished or
quantified at an individual asset or activity level.
Accordingly, no separate quantitative metric has been
determined for TO1 in FY26. The Group will continue to explore
more meaningful and reliably measurable opportunity metrics for
future reporting periods.
Assessment Methodology /
Limitations
• Identified through the FY26 CRRO
assessment as material.
• The assessment considered
local adaptation initiatives,
evolving building and regulatory
requirements across Australia and
New Zealand.
• The timing and scale of the
opportunity depend on regulatory
settings, local infrastructure
investment, customer demand,
product performance and the
commercial feasibility of associated
decarbonisation initiatives.
Current impact
• No material current financial impact was identified from
this opportunity in FY26.
• A large number of Fletcher Building’s products and
solutions support customer adaptation and resilience,
including water and drainage, insulation, roofing and
heat- or UV-resistant solutions. However, the financial
contribution attributable specifically to this opportunity
cannot be reliably distinguished or quantified.
• Subsequent to year end, the Government agreement
with Golden Bay Cement® provided greater certainty
for continued domestic lower-carbon cement
manufacturing through to 2040 and supports
associated resilience and decarbonisation investment.
Anticipated impacts
• Increased demand for infrastructure,
commercial and residential building
materials and solutions that support
adaptation to drought, heat stress, water
shortages and extreme weather;
• Opportunities to support local
authorities, customers and infrastructure
providers through targeted adaptation
and resilience solutions as regulatory and
market requirements develop; and
• Policy support may enable continued
domestic cement manufacturing and
associated decarbonisation investment.
Management response (transition planning actions
integrated into strategy)
• Continue to develop and market products and
systems that support water, heat and extreme-
rainfall adaptation;
• Partner with customers, councils and infrastructure
providers on targeted low-carbon products and
resilience solutions; and
• Grow the Group’s role in climate-resilient and low-
carbon building systems and adaptation-related
infrastructure markets.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES18
Opportunity – TO2
Industry leadership to
drive market change
Participation in decarbonisation
initiatives strengthens positioning
and influence
Description
Participation in climate and industry initiatives,
together with the development and promotion
of lower-carbon products and solutions, may
strengthen Fletcher Building’s market positioning
and ability to influence customer preference.
Scenario & Time horizon
Anticipated opportunities are principally
medium to long term, with the opportunity
arising under the ‘Orderly’ and ‘Disorderly’
scenarios as market adoption of lower-carbon
products and solutions develops.
Exposure
8
Our manufacturing revenue from sustainably certified products
9
:
FY26FY25FY24
76%79%74%

The manufacturing revenue from sustainably certified products
9

remained high at 74-79% across FY24-FY26.
Assessment Methodology / Limitations
• The opportunity is inter-dependent with customer
demand, supplier capability, affordability, policy
and procurement settings, and the pace of market
transition. The majority of our customers continue
to indicate that price is their primary driver that
influences preference.
• Assessed through FY26 divisional and business
unit materiality workshops, considering customer
demand, availability and affordability of lower-
carbon products and inputs, supplier capability
and market developments.
Current impact
• 76% of manufacturing revenue was from
sustainably certified products
9
in FY26,
exceeding the Group’s 75% target for
FY26 (set under FY22-26 strategy).
• No material current financial impact
attributable specifically to TO2 was
separately identified in FY26.
Anticipated impacts
• Increased market adoption of
lower-carbon products and
solutions; and
• Opportunity to influence
customer preference, with
potential benefits through
increased market share and
customer loyalty.
Management response
(transition planning actions integrated into strategy)
• Continue to monitor supplier offerings and customer
demand and maintain sustainable product certifications;
• Continue category planning and supply resilience work,
including supplier diversification;
• Continue to explore cost-effective lower-carbon steel,
cement and other material options;
• Continue customer education and engagement on lower-
carbon product options and market requirements; and
• Develop affordable lower-carbon product options and
explore alternatives for high-carbon inputs and fossil-derived
materials.
8. In prior-year disclosures, 100% of Group business activities were reported as aligned with climate-related opportunities, as each division aligned with at least one identified opportunity. In FY26, the metric has been refined to measure each opportunity using the most relevant available
indicator. FY25 and FY24 have been presented on the refined basis where comparable data is available.
9. These include products made or sold by our manufacturing businesses with Type I environmental labelling requirements under the ISO 14024 Standard (Eco Choice Aotearoa, Good Environmental Choice Australia, Global GreenTag GreenRate™) and Type III environmental declaration
requirements under the ISO 14025 Standard. See 11.3 Appendix C: Glossary of terms for further details.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES19
Opportunity – TO3
Innovation in energy and
processes
Shifting to lower-emission fuels and
materials, and investing in more efficient
processes, onsite renewable generation,
and electric vehicles to reduce costs and
decarbonise supply chain
Description
Shifting to lower-emission fuels and materials,
investing in more efficient processes, onsite
renewable generation and lower-emission fleet
technologies may reduce operating costs,
strengthen energy resilience and support delivery
of the Group’s Carbon Reduction Roadmaps.
Scenario & Time horizon
Anticipated opportunities are principally
medium to long term, particularly under
the ‘Orderly’ and ‘Disorderly’ scenarios, as
investment in energy efficiency, renewable
electricity, alternative fuels and process heat
solutions develops.
Exposure
In FY24 and FY25, the Group reported that all divisions had some
activities aligned with at least one climate-related opportunity.
Following the FY26 review, the Group determined that this
measure did not provide a sufficiently precise or meaningful
indication of exposure to individual climate-related opportunities,
as opportunity alignment cannot be reliably distinguished or
quantified at an individual asset or activity level.
Accordingly, no separate quantitative metric has been
determined for TO3 in FY26. The Group will continue to explore
more meaningful and reliably measurable opportunity metrics for
future reporting periods.
Assessment Methodology /
Limitations
• The assessment considered
renewable electricity, process heat,
alternative fuels, onsite generation,
energy efficiency and heavy-fleet
technology.
• The opportunity depends on energy
pricing, renewable electricity
availability, grid decarbonisation,
process heat and fuel technologies
and infrastructure readiness.
Current impact
• No material current financial impact was
identified from this opportunity in FY26, with
the initiatives noted below forming part of
ongoing operational improvements.
• Golden Bay Cement® increased coal
substitution to 59% (from a baseline of 10% in
2003).
• Behind-the-meter solar and renewables
implemented in Australia only achieved
modest abatement relative to site demand.
Anticipated impacts
• Investment in infrastructure and
alternative fuels may reduce operating
costs and improve energy resilience; and
• Increased use of lower-emission fuels,
onsite renewable generation and
more efficient processes may support
emissions reduction and long-term
competitiveness.
Management response
(transition planning actions integrated into strategy)
• Continue to explore renewable energy sources and
arrangements;
• Continue to trial and test lower-emission heavy fleet; and
• Continue to review the feasibility of onsite generation,
process heat alternatives and lower-emission technologies.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES20
4. Greenhouse Gas (GHG) Emissions
Greenhouse Gas (GHG) emissions are calculated in accordance with
the Greenhouse Gas Protocol: A Corporate Accounting and Reporting
Standard, GHG Protocol Scope 2 Guidance: An amendment to the
GHG Protocol Corporate Standard and Corporate Value Chain (Scope
3) Accounting and Reporting Standard: Supplement to the GHG
Protocol Corporate Accounting and Reporting Standard (together
referred to as the ‘GHG Protocol’).
11.4 Appendix D: Methodology used for Greenhouse Gas (GHG)
Emissions (‘Appendix D’) sets out Fletcher Building’s GHG emissions
methodology, assumptions, emission factors, limitations and
uncertainty. FY26 emissions in this report have been externally
assured by EY and received reasonable assurance for Scope 1 and
Scope 2, and limited assurance for Scope 3. Prior years were audited
by Toitū Envirocare and received reasonable assurance for Scope 1
and Scope 2, and limited assurance for Scope 3.
GHG emissions are calculated in accordance with the GHG Protocol
location-based and market-based methodologies. All Scope 1, 2 and
3 GHG emissions are accounted for on an equity share basis. This
includes emissions from our businesses and our share of emissions
from associates and joint ventures, based on Fletcher Building’s
ownership interest as at 30 June 2026.
Emissions values are rounded to the nearest kilotonne of CO
2
e. Totals
and percentages are calculated using underlying unrounded values
and may not equal the sum of rounded components. Location-
based method (LBM) and market-based method (MBM) totals are
calculated separately.
Organisational boundary
Consistent with the reporting entity described above, and the
detailed entities and ownership interests set out in Appendix D, the
GHG inventory boundary reflects the Group’s portfolio as at 30 June
2026. Businesses disposed of before 30 June 2026 were excluded
from the FY26 emissions inventory and the restated FY18, FY23-FY25
inventories, while businesses held for sale but not yet disposed of by
that date remain included.
• The FY26 inventory excluded the Construction division, which
was divested in June 2026.
• The South Pacific businesses previously part of the Construction
division were retained by the Group and remained included in
the inventory.
• As at 30 June 2026, Fletcher Reinforcing and Wire (REO), CSP
Pacific® and Vivid Living® were classified as held for sale,
but their disposals had not been completed. The Group had
entered into an agreement to sell REO and was progressing the
planned divestments of CSP Pacific® and Vivid Living®. These
businesses therefore remained included in the FY26 GHG
emissions inventory.
Scope 1 and Scope 2 GHG emissions for our ongoing operations
were 894 kt CO
2
e using LBM and 921 kt CO
2
e using MBM in FY26.
The majority of these were associated with our cement operations,
process heat, transport fuel, and electricity use in Australia.
Biogenic emissions, such as those from biomass combustion, the
biogenic fraction of tyres and liquid biofuels and the indirect biogenic
emissions from landfill gas combusted for electricity are relevant to
Fletcher Building and were quantified during inventory preparation.
In accordance with the GHG Protocol these emissions were reported
separately because they were considered part of the natural carbon
cycle and fell outside the scope of the disclosed anthropogenic
GHG inventory. Biogenic emissions for Fletcher Building in FY26
were 241 kt CO
2
e, broadly similar to FY18 emissions of 236 kt CO
2
e
but a reduction of 13% from FY24 when biogenic emissions were
278 kt CO
2
e.
In FY26 we restated our FY18, FY23, FY24 and FY25 inventories
to account for changes in organisational scope, methodologies,
inclusions and corrections. This is detailed in Appendix D.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES21
SCOPEBASE YEAR AND COMPARATIVES (kt CO
2
e )
FY18 BASE YEAR
(Scope 1+2)
10
FY23 BASE YEAR
(Scope 3)
10
FY24
10
FY25
10
FY26
(Current year)
10
Scope 1
852733712680695
Scope 2
LBM
MBM
302
320
238
264
216
233
196
222
199
226
Scope 3
3,5962,8172,7602,708
TotalLBM
MBM
4,568
4,593
3,74 5
3,762
3,636
3,662
3,601
3,629
Scope 1 + 2 Emissions
Intensity (t CO
2
e/$ million)
LBM
MBM
216
219
155
159
156
158
162
167
150
155
Scope 1 Biogenic
emissions
236239278251239
Scope 2 Biogenic
emissions
00002
10. The FY18, FY23, FY24 and FY25 Scope 1, 2 and 3 emission totals have been restated due to divestments, addition of emission categories, and improvements to calculation methodologies. More information about these
restatements is provided in Appendix D. These restatements have not been subject to assurance. FY26 Scope 1 and Scope 2 emissions have been subject to reasonable assurance, and FY26 Scope 3 emissions have been
subject to limited assurance.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES22
Summary of Scope 1 and Scope 2 GHG emissions sources
PERFORMANCE AND ANALYSIS OF TRENDS
Most of our emissions reductions from FY18 have occurred because
of increased coal substitution with biomass and end-of-life tyres in
cement production as well as increased renewable content from
electricity grids.
Scope 1 emissions decreased from FY18 to FY26 by 18%. Year-on-year
emissions decreased from FY24 to FY25, primarily from reduced
output across energy-intensive operations caused by soft market
conditions. However, Scope 1 emissions increased 2% in FY26,
reflecting a slow recovery in market activity. Although coal use
declined in FY26, this was offset by higher use of other fossil-based
thermal fuels, primarily refuse-derived fuel and waste tyres, and
higher clinker emissions in cement-making operations, together with
natural gas used for process heat in other manufacturing businesses.
Scope 2 emissions decreased from FY18 to FY26 by 34% using LBM
and 29% using MBM. Year-on-year emissions decreased from FY24 to
FY25 primarily due to lower electricity use associated with soft market
conditions and reduced output. In FY26, Scope 2 emissions increased
slightly by 1.6% LBM and 1.8% using MBM, reflecting a modest lift in
electricity use as manufacturing activity began to recover, particularly
in Australian operations.
Emissions intensity for Scope 1 and Scope 2 (LBM) decreased 31%
from 216 t CO
2
e/$ million external revenue in FY18 to 150 t CO
2
e/$
million in FY26. Even though year-on-year absolute emissions
increased in FY26, emissions intensity decreased by 7% because
revenue grew faster than emissions over the same period.
Absolute Scope 1 and Scope 2 emissions are expected to increase in
the short term as market conditions improve and production volumes
recover. Over the medium term, implementation of the Transition Plan
and Carbon Reduction Roadmaps is expected to reduce absolute
emissions (see 5. Our Emissions Reduction Targets and Carbon
Reduction Roadmaps and 6. Our Transition Plan). We will therefore
continue to monitor both emissions intensity and absolute emissions
to provide a complete view of our emissions profile.
852
733
712
680
695
852
733
712
680
695
302
238
216
196
199
320
264
233
222
226
219
159
158
167
155
0
50
100
150
200
0
200
FY18
(LBM)
FY18
(MBM)
FY23
(LBM)
FY23
(MBM)
FY24
(LBM)
FY24
(MBM)
FY25
(LBM)
FY25
(MBM)
FY26
(LBM)
FY26
(MBM)
400
600
800
1,000
1,200
Intensity (t CO

e / $ million)
Emissions (kt CO

e)
Scope 1Scope 1
Scope 2 (LBM)Scope 2 (MBM)Intensity (MBM)
Scope 1 & 2 emissions: LBM vs MBM

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES23
Breakdowns of Scope 1 and 2 GHG emissions by source and year
OUR KEY
EMISSIONS SOURCESEMISSIONS (kt CO
2
e)
REDUCTION
(%)
FY18
11
FY23
11
FY24
11
FY25
11
FY26
11
FY18-26
SCOPE 1 Cement Operations
Manufacture of cement – thermal fuels
(coal, tyre-derived fuel (TDF), refuse-
derived fuel (RDF), biomass) and clinker
66356054652754318%
Process Heat – Other Fossil
Natural gas and LPG used for process
heat in manufacturing
1019286777822%
Transport Fuel
Fuel used in vehicles
474139373721%
All other Scope 1 sources
414141393710%
Total Scope 1 emissions85273371268069518%
SCOPE 2Electricity AU
Electricity used in Australian operations
LBM
MBM
276
294
214
246
200
216
180
202
181
208
34%
29%
All other Scope 2 sources
LBM
MBM
26
26
24
18
16
17
16
20
18
18
32%
31%
Total Scope 2 emissionsLBM
MBM
302
320
238
264
216
233
196
222
199
226
34%
29%
11. The FY18, FY23, FY24 and FY25 Scope 1, 2 and 3 emission totals have been restated due to divestments, addition of emission categories, and improvements to calculation methodologies. More information about these restatements are provided in
Appendix D. These restatements have not been subject to assurance. FY26 Scope 1 and Scope 2 emissions have been subject to reasonable assurance, and FY26 Scope 3 emissions have been subject to limited assurance.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES24
Scope 3 GHG emissions
Scope 3 GHG emissions were 2,708 kt CO
2
e in FY26. The highest
sources of Scope 3 GHG emissions for our business, collectively
contributing circa 94% of Scope 3 GHG emissions in FY26, were:
• Category 1: Purchased steel and purchased cement;
• Category 1: Other materials and construction operations;
• Category 3: Fuel and energy-related activities;
• Category 4: Freight; and
• Categories 11 and 12: In-use and end-of-life emissions from
sold products.
From our FY23 base year, Scope 3 emissions have decreased by
25% over time mainly due to reduced procurement of raw materials,
including steel and cement, with additional reductions from in-use
and end-of-life of sold products. This is largely driven by softer
market conditions. From FY24 to FY26, Scope 3 emissions decreased
by 3.9%, from 2,817 kt CO
2
e to 2,708 kt CO
2
e. The reduction was
primarily driven by an 83 kt CO
2
e decrease in emissions from the
use and end-of-life treatment of sold products, comprising a 74 kt
CO
2
e decrease in product-use emissions and a 9 kt CO
2
e decrease in
end-of-life emissions. Purchased steel emissions decreased by 15 kt
CO
2
e, freight emissions by 9 kt CO
2
e and all other Scope 3 sources
by approximately 14 kt CO
2
e, while purchased cement emissions
remained broadly stable. These reductions were partially offset by
a 12 kt CO
2
e increase in emissions from materials and construction
operations. See Appendix D for more details on sources of Scope
3 emissions.
Our Transition Plan currently focuses on addressing the most
significant components of our Scope 3 GHG emissions.
SCOPE 3 GHG PROTOCOL CATEGORIESEMISSIONS (kt CO
2
e)
FY23
12
FY24
12
FY25
12
FY26
12
% OF FY26 TOTAL
SCOPE 3
1. Purchased goods and services2,9052,1092,1472,129
78.6%
2. Capital goods69.660.846.541.3
1.5%
3. Fuel and energy related activities10096.786.485.5
3.2%
4. Upstream transportation and distribution157150149141
5.2%
5. Waste generated in operations3.65.23.64.5
0.2%
6. Business travel5.25.33.42.5
0.1%
7. Employee commuting20.219.816.018.1
0.7%
8. Upstream leased assets2.41.01.00.7
0.0%
9. Transportation and distribution of sold products10.19.48.08.3
0.3%
10. Processing of sold products2.21.61.71.7
0.1%
11. Use of sold products146198153124
4.6%
12. End-of-life treatment of sold products174159144150
5.5%
14. Franchises0.40.40.40.4
0.0%
15. Investments1.20.70.80.5
0.0%
Total Scope 33,5962,8172,7602,708100.0%
12. The FY23, FY24 and FY25 Scope 1, 2 and 3 emission totals have been restated due to divestments, addition of emission categories, and improvements to calculation methodologies.
More information about these restatements are provided in Appendix D. These restatements have not been subject to assurance. FY26 Scope 1 and Scope 2 emissions have been subject to
reasonable assurance, and FY26 Scope 3 emissions have been subject to limited assurance.
Breakdowns of Scope 3 GHG Emissions by source and year

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES25
4.1 Scope 1,2 and 3 GHG emissions profile (Location-based method)
Breakdowns of Scope 1, 2 and 3 GHG emissions by key source and year
OUR KEY EMISSIONS SOURCESEMISSIONS (kt CO
2
e)
FY18
13
FY23
13
FY25
13
FY26
13
SCOPE 1 Cement Operations
Manufacture of cement – thermal fuels (coal, TDF,
RDF, biomass) and clinker
663560527543
Process Heat (Other Fossil)
Natural gas and LPG used for process heat in
manufacturing
101927778
Transport Fuel
Fuel used in vehicles
47413737
SCOPE 2Electricity AU
Electricity used in Australian operations
276214180181
SCOPE 3Purchased Steel
Embodied emissions from purchased steel
786703713
Construction operations and materials
Construction materials and activities, raw materials
used in manufacturing
1,9331,2971,294
Freight
Contracted freight services (land, water, air)
145136129
In-use and end-of-life emissions from sold products
In-use and end-of-life emissions from sold products
we manufacture
320297274
Purchased Cement
Embodied emissions in purchased cement
1165347
Scope 1, 2 and 3 GHG emissions sources in FY26
13. The FY23, FY24 and FY25 Scope 1, 2 and 3 emission totals have been restated due to divestments, addition of emission categories, and improvements to
calculation methodologies. More information about these restatements are provided in Appendix D. These restatements have not been subject to assurance.
FY26 Scope 1 and Scope 2 emissions have been subject to reasonable assurance, and FY26 Scope 3 emissions have been subject to limited assurance.
Cement Operations
15%
Process Heat
(Other Fossil)
2%
Transport Fuel
1%
Other Scope 1 & 2
1%
Electricity use
in Australia
6%
Materials and
construction
operations
36%
Purchased Steel
20%
In-use and end-of-life
emissions from
sold products
7%
Freight
4%
Purchased Cement
1%
Other Scope 3
7%

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES26
5. Our Emissions Reduction Targets and Carbon Reduction Roadmaps
21.4%
2.1%
9.0%
2.8%
20.7%
0
200
400
600
800
1,000
1,200
FY18FY1826
Reduction (21%)
FY26Golden Bay
Cement®
AU ElectricityWWB
Upgrades
Additional
BU Initiatives
FY35
Target
Scope 1 & 2 Emissions (kt COŽ
e)
Scope 1 and Scope 2 (MBM) Emissions
Clinker
All Other
Scope 1 & 2
Electricity
Coal
Natural Gas
Diesel Transport
Diesel Stationary
Tyres
Carbon Reduction Roadmap – Scope 1 and Scope 2 (MBM) Emissions
During FY26, Fletcher Building refreshed its GHG reduction targets
to comply with updated SBTi requirements, which require companies
to align near-term targets with a 1.5°C pathway. The updated near-
and long-term targets were validated by the SBTi in July 2026 and
replaced the Group’s previous target of a 30% reduction in absolute
Scope 1 and Scope 2 emissions by 2030 which was set using the
LBM. The revised targets increase ambition by accelerating the pace
of emissions reduction required and incorporating material Scope
3 emissions categories. The new targets were established using
the MBM.
NEAR-TERM EMISSIONS REDUCTION TARGETS
• Reduce absolute Scope 1 and Scope 2 GHG emissions by 56% by
FY35 from an FY18 base year. As at FY26, emissions have reduced
by 21% from the base year.
• Reduce absolute Scope 3 GHG emissions by 40% by FY35 from
an FY23 base year. As at FY26, emissions have reduced by 25%
from the base year.
LONG-TERM EMISSIONS REDUCTION TARGETS
(NET ZERO TARGETS)
• Reduce absolute Scope 1 and Scope 2 GHG emissions by 90% by
FY50 from a FY18 base year.
• Reduce absolute Scope 3 GHG emissions by 90% by FY50 from a
FY23 base year.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES27
Carbon Reduction Roadmap – Scope 3 Emissions
The Group continues to develop the detailed transition pathway
required to achieve these targets, including consideration of
hard-to-abate emissions, technology availability, future regulatory
requirements and commercial feasibility. Consistent with SBTi
guidance, near-term targets do not include offsets. Neutralisation
of residual emissions would be considered only after all reasonable
emissions reduction opportunities have been pursued and the long-
term emissions reduction targets have been met.
Fletcher Building’s Carbon Reduction Roadmaps set out the principal
pathways to achieve the Group’s updated near-term Scope 1, 2 and
3 emissions reduction targets and support its long-term Net Zero
targets. The work underlying the roadmaps was undertaken during
FY26 and informed the updated targets, which were validated by SBTi
in July 2026. These roadmaps used the MBM. There are significant
uncertainties in the pathway to our Scope 3 target, particularly
in relation to customer demand and the availability, affordability
and uptake of lower-carbon raw materials for manufacturing, steel
and cement. In addition, any increase in production or improvement
in market conditions will continue to challenge our ability to achieve
absolute emissions reductions.
25.0%
1.3%
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
FY23Progress
to date
FY26Low-carbon
steel
Low-carbon
cement
Other
Initiatives
FY35
Target
Scope 3 Emissions (kt CO
2
e)
Scope 3 Emissions
Materials and
construction
operations
Purchased Steel
Purchased
Cement
Freight
Fuel & Energy
Related
End-of-life
product
All Other
Scope 3
8.8%
5.2%

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES28
6. Our Transition Plan
In FY26, Fletcher Building undertook a review of our operating
model and portfolio, with an aim to focus on manufacturing and
distribution of building products and materials. As a result, the
Construction division was divested and the Group activated a
move to a decentralised operating model, giving more ownership
to the operating businesses. This change brought a shift in focus
and ownership of material environmental and social matters to the
business unit and divisional senior leadership team level.
All divisions and business units reviewed the Group-level CRRO to
validate the CRRO materiality at business unit level and confirm the
relevant transition plan activities underway in the business unit.
Fletcher Building’s Transition Plan is informed by the Group’s emissions
profile and its assessment of material CRRO as well as the input from
the business units and divisions. The plan outlines how the businesses
intend to reduce greenhouse gas emissions, strengthen climate
resilience, and position the businesses to remain competitive in a
lower-carbon economy.
The plan is integrated into business strategy, capital allocation,
divisional planning and operational decision-making where relevant.
It prioritises the areas expected to have the greatest influence on the
Group’s emissions profile, resilience and long-term value creation,
including cement and clinker production, energy procurement and
availability, process heat, lower-carbon steel and cement, supply
chain resilience, product innovation, and customer adaptation
solutions. Climate-related initiatives may be prioritised, sequenced or
deferred depending on available capital and the development of the
relevant risk or opportunity.
Business units manage relevant climate-related physical risks through
asset and business continuity planning, supported by the Group
Risk & Assurance function’s periodic risk reviews and oversight.
Capital may be allocated where affected assets require adaptation,
repurposing, relocation or replacement.
The Transition Plan is designed to evolve as technology, market
conditions, policy settings, customer expectations and supply
chain data mature.
PRIORITY AREASSUMMARY
MATERIAL CRRO
KEY METRICS
(MBM)
FY26
RESPONSE
MEDIUM- AND
LONG-TERM PRIORITIES
LIMITATIONS
/ DEPENDENCIES
Golden Bay
Cement®
regulatory
exposure
and cement
decarbonisation
TR1 carbon
pricing and
regulation
TO1 policy and
regulation
Golden Bay Cement® is exposed
to regulatory uncertainty,
particularly NZ ETS settings and
treatment of emissions-intensive,
trade-exposed manufacturing.
This may affect the economics of
decarbonisation investment and
the continued viability of local
cement manufacturing.
Golden Bay Cement® is
responsible for 557 kt CO
2
e,
representing 60% of combined
Scope 1 and Scope 2 Group
emissions.
Golden Bay Cement® has
reduced combined Scope 1 and
Scope 2 emissions by 18% since
FY18.
Coal substitution has increased
to 59%.
Completed government
agreement for ongoing
operations up to 2040;
continued operational
optimisation and coal
substitution with waste
products; continued exploring
clinker, cement, binder,
electricity and CCSU options;
continued to increase energy
supply from landfill.
Invest in clinker, cement,
binder and electricity initiatives
where commercially viable;
support CCSU research and
commercialisation options in
New Zealand where feasible;
maintain local manufacturing
resilience while reducing
emissions.
Dependent on regulatory certainty, NZ
ETS settings, market acceptance of lower-
carbon cement, technology maturity,
commercial feasibility and continued
viability of local manufacturing.
Cement operating model and product
mix may change in response to carbon
pricing, industrial allocation and technology
availability.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES29
PRIORITY AREASSUMMARY
MATERIAL CRRO
KEY METRICS
(MBM)
FY26
RESPONSE
MEDIUM- AND
LONG-TERM PRIORITIES
LIMITATIONS
/ DEPENDENCIES
Low-carbon
products and
solutions
TR2 market
preference shift
TO2 industry
leadership
Sustainable product supply,
low-carbon steel and cement
availability, and fossil-based inputs
such as resin, PVC and PE may
affect supply resilience, cost and
market positioning. Customer
demand remains cost-sensitive,
so affordability and product
innovation are critical.
Steel, cement and emissions
from fuel and energy related
activities are responsible for
845 kt CO
2
e, representing 31%
of Scope 3 emissions across the
Group. This is a 16% reduction
since FY23.
In FY26, we have 76% of
manufacturing revenue from
sustainably certified products
(exceeding our target of 75%).
Monitored supplier offerings
and customer demand;
maintained sustainable product
certifications; continued
category planning and supply
resilience work; diversified
supply; explored low-carbon
steel and cement options;
educated customers.
Develop affordable lower-
carbon product options; explore
alternatives for high-carbon
inputs and fossil-derived
materials; position the portfolio
to respond to regulation,
procurement requirements
and market preference shifts
without increasing carbon
leakage risk.
Dependent on customer willingness to
pay, supplier capability and behaviour,
affordability, data quality, carbon border or
procurement policy settings and the pace
of supply chain transition.
Energy
availability and
supply
TR3 renewable
energy availability
and cost
TO3 innovation
in energy and
processes
Energy cost, renewable
electricity availability, process
heat alternatives and heavy-fleet
technology may affect operating
cost, resilience and delivery of
the decarbonisation roadmaps.
The issue is particularly relevant
for Australian businesses, Light
Building Products NZ, Concrete
and process heat-intensive sites.
Energy is responsible for 560
kt CO
2
e, representing 61% of
Scope 1 and Scope 2 emissions
across the Group.
These have reduced by 23%
since FY18.
Developed an energy strategy
for Australian operations,
reducing reliance on grid
decarbonisation; evaluated
PPAs, LGCs and REGOs
where commercially justified;
implemented behind-the-meter
solar for 2 major manufacturing
sites; assessed biomass, biofuel
and process heat alternatives;
monitored heavy-fleet
technology and infrastructure.
Advance renewable electricity
procurement where value
is demonstrated; progress
process heat feasibility; support
lower-emission heat and fleet
technology as infrastructure
and supply become available;
maintain energy resilience as
part of business planning.
Dependent on renewable electricity
availability, continued grid decarbonisation,
pricing, long-term contract value, process
heat technology, availability of cost-
effective fuel alternatives and infrastructure
readiness.
Adaptation and
future-proofing
customers
PR4 downstream
customer
physical risk
TO1 policy and
regulation
Extreme rain, heat, drought, water
stress and adaptation-related
regulation may increase demand
for infrastructure, commercial
and residential building materials
that support resilience. The FY26
assessment identifies this as a
material opportunity rather than a
material residual physical risk.
None assessed.Identified existing products that
support adaptation, including
water, drainage, insulation,
roofing and heat- or UV-resistant
solutions; developed and
marketed products and systems
that support water, heat and
extreme rainfall adaptation.
Partner with customers,
councils and infrastructure
providers on targeted resilience
solutions; grow the Group’s
role in climate-resilient building
systems and adaptation-related
infrastructure markets.
Dependent on timing and scale of
adaptation regulation, local authority
investment, customer demand,
infrastructure pipeline, product
performance data and procurement
structures.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES30
7. Climate Resilience
Building resilience through scenario analysis
The Group uses climate scenario analysis, against all scenarios and time horizons, to assess CRRO and test resilience. For FY26 the scenario analysis approach was
simplified for the purposes of resilience assessment, to understand how CRRO could affect operations, strategy, business model and financial planning over time and
make the output more useful for business planning and governance oversight.
ASSESSMENT LAYER
CLIMATE SCENARIO
AND TIME HORIZONPURPOSEOUTPUT
Divisions<2°C, short & medium termValidate materiality, ownership and
operational actions.
Material CRRO confirmed by business
units and divisions, with actions linked to
business planning.
Executive1.5°C, long term
>3°C, long term
Test strategic implications, feasibility of
response actions and key dependencies.
Executive input on energy, supply chain,
product mix, capital allocation and
resilience options.
SHES Committee1.5°C, long term
>3°C, long term
Challenge assumptions, test resilience of
strategy and assess whether additional
work is required.
Governance challenge on feasibility,
cost, supply chain assumptions, market
positioning and decision gates.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES31
AREAS OF UNCERTAINTY
The resilience assessment identified several uncertainties that could
affect the pace, cost and effectiveness of the Group’s transition and
resilience response:
• Regulatory certainty, particularly NZ ETS settings and treatment
of emissions-intensive, trade-exposed manufacturing.
• Availability and affordability of renewable energy, PPAs,
certificates, process heat alternatives and lower-emission fuels.
• Technology maturity and commercial feasibility for hard-to-abate
emissions, including cement process emissions, biomass, biofuel,
high-temperature process heat and heavy-fleet alternatives.
• Customer demand and willingness to pay for lower-carbon
products and resilience-related products and systems.
• Availability, affordability and data quality for low-carbon steel,
cement and other purchased materials.
• The ability to isolate climate-related impacts from other drivers in
supply chains and downstream markets.
• The frequency and severity of physical climate events, including
the potential for low-probability, high-severity events not
captured by average annualised modelling.
The results of our resilience testing provided a clear view of how our business performs under a range of climate futures, highlighting
the pressures, thresholds, and opportunities that inform our strategic response. Key outcomes are summarised in the table below.
PRIORITY AREAS
AMBITION SCENARIO
1.5°C, LONG TERM
REALISTIC SCENARIO
<2°C, MEDIUM TERM
WORST CASE SCENARIO
> 3°C, LONG TERM
1. Golden
Bay Cement®
regulatory
exposure
and cement
decarbonisation
High transition pressure.
Regulatory certainty
and economically viable
decarbonisation become
critical to support local
cement manufacturing and
emissions reduction.
Material for Heavy Building
Materials division and Group.
NZ ETS settings, carbon
pricing and policy stability
influence investment timing and
economics.
Lower transition pressure
against this specific matter.
Local manufacturing resilience
and physical adaptation
remain relevant.
2. Low-carbon
products and
solutions
Stronger demand and regulation
may improve market pull for
low-carbon steel, cement and
products, but supply and cost
constraints may intensify.
Material across multiple
divisions. Customer demand
currently remains cost-sensitive,
so affordability and product
innovation are critical.
Lower transition pressure, but
supply chain disruption and
resilience-related customer
needs may increase.
3. Energy
availability and
supply
Rapid decarbonisation increases
demand for renewable electricity,
alternative fuels and process
heat solutions. Competition
for feedstocks and PPAs may
increase.
Material for Light Building
Products NZ and Heavy Building
Materials divisions. Energy cost,
availability and technology
feasibility influence roadmap
delivery.
Lower transition pressure, but
physical disruption to energy
availability and supply become
more important.
4. Adaptation and
future-proofing
customers
Policy and regulation may
support higher-performance,
lower-carbon and climate-
resilient building solutions.
Material opportunity across
divisions where products already
support water, heat, drainage,
insulation, roofing and resilience
needs.
Demand for resilience-related
products and infrastructure may
increase as physical impacts
become more severe.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES32
Capacity to adjust or adapt strategy and business model
The Group’s capacity to remain resilient depends on maintaining strategic and financial flexibility, including the ability to sequence capital,
adjust product and procurement strategies, shift supply arrangements, strengthen site-level resilience and respond to changing customer
and regulatory demand.
IF TRANSITION ACCELERATES...
IF TRANSITION IS
SLOWER OR FRAGMENTED...IF PHYSICAL IMPACTS INTENSIFY...
• Prioritise economically viable
emissions reduction projects and
renewable electricity pathways.
• Increase engagement with
suppliers on low-carbon steel,
cement and fossil-derived inputs.
• Accelerate customer education
and product innovation for lower-
carbon and certified products.
• Strengthen regulatory and industry
engagement to support local low-
carbon manufacturing and avoid
carbon leakage.
• Maintain focus on no-regrets energy
efficiency, cost reduction and
resilience measures.
• Avoid over-committing to uneconomic
technology before supply, demand
and regulation are clearer.
• Continue to monitor customer
demand and regulatory developments
before scaling product commitments.
• Maintain optionality in capital
allocation and procurement
arrangements.
• Increase focus on site-level resilience,
emergency preparedness and
business continuity.
• Review exposed assets and critical
dependencies for adaptation,
relocation, upgrade or changed
operating procedures.
• Expand adaptation-related product
and infrastructure solutions where
customer and council demand
emerges.
• Test insurance, supply chain and
logistics arrangements for severe
event scenarios.
Conclusion on resilience
Resilience was assessed by considering whether the identified
CRRO were capable of being managed within existing governance
frameworks, capital allocation processes and strategic planning
horizons.
Based on the FY26 assessment and scenario analysis undertaken,
Fletcher Building considers its current strategy and business model
to be resilient to the material CRRO identified, subject to continued
active management of the key dependencies, uncertainties and
decision points.
Maintaining this resilience requires ongoing attention to several key
areas, including:
• Oversight by Executive and Board in relation to priority areas:
Golden Bay Cement®, energy availability and supply, low-carbon
products and solutions, and adaptation-related customer
opportunities; and
• Monitoring the Transition Plan as technology, regulation, energy
markets, customer demand and supply chain data mature.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES33
8. Metrics and Targets Summary
Fletcher Building discloses climate-related metrics and targets in
line with NZ CS 1. Detailed GHG emissions metrics and targets are
set out in the 4. Greenhouse Gas (GHG) Emissions section and 5.
Our Emissions Reduction Targets and Carbon Reduction Roadmaps
section respectively. All physical risk, transition risk and climate-
related opportunity exposure metrics are presented in the relevant
CRRO tables in the 3. Climate-related Risks and Opportunities (CRRO)
section. Where a separate quantitative CRRO-specific metric has
not been identified, the relevant rationale and limitations are also
explained within the applicable CRRO table.
This section summarises the remaining climate-related metrics and
targets. No additional industry-based metrics or key performance
indicators are disclosed.
M E T R I C
CATEGORYMETRICFY2026FY2025FY2024DESCRIPTION INCLUDING TREND ANALYSIS
Capital
deployment
Amount of capital
expenditure, financing or
investment deployed toward
CRRO
Less than $5
million
Less than $5
million
Less than $5
million
In FY26, the Group introduced a tiered climate-related capital and operating expenditure framework to support more consistent
identification and assessment of climate-related expenditure. This metric includes expenditure where a CRRO is a primary driver of the
investment. Other investments may also contribute to managing CRRO or reducing emissions but are not included where climate is not
a primary driver and the climate-related portion cannot be reliably attributed.
One of the key investments/initiatives in FY26 includes:
• Golden Bay Cement®’s renewable electricity supply from Northwaste, comprising approximately $1.3 million of operating expenditure.
This initiative is expected to avoid approximately 126,000 kg CO
2
e of emissions in FY26 and primarily addresses TR3 – renewable
energy availability and cost, while also reducing exposure to TR1 – carbon pricing and regulation.
Climate-related capital deployment/initiatives spend remained not material across FY24 to FY26.
Internal
emissions price
Internal emissions price -
Projects < 5 years
Not applicableNZ$80 or AU$60
per tonne CO
2
e
NZ$80 or AU$60
per tonne CO
2
e

In FY25, the Group disclosed that it had developed an internal emissions price framework to assess the potential financial impact of
carbon reduction initiatives in project evaluation and capital planning, noting that no business case exceeding $500,000 had utilised
the framework. Following further review in FY26, management confirmed that the framework has not been applied in practice and has
not been embedded into Group investment processes. In May 2026, the ARC approved removal of the framework from Group practice.
Accordingly, the Group did not apply an internal emissions price in FY26. In the absence of a formal internal carbon price, the Group
will look to consider potential carbon cost impacts within investment evaluation processes, including through sensitivity analysis and
other relevant inputs such as market-based signals and applicable regulatory and policy considerations. For example, Golden Bay
Cement® has applied assumed NZU pricing in forward operating models to assess future carbon cost exposure, noting this is not
derived from the Group’s internal carbon pricing framework.
The internal emissions price remained unchanged in FY24 and FY25 but was discontinued in FY26 following management review and ARC
approval. Climate-related cost impacts continue to be considered through existing investment evaluation processes where relevant.
Internal emissions price -
Projects > 5 years
Not applicableNZ$100 or
AU$50 per
tonne CO
2
e
NZ$100 or
AU$50 per
tonne CO
2
e
Remuneration
Management remuneration
linked to CRRO
NilNilNilNo climate-related STI or LTI performance measures applied in FY26. While a 5% STI measure relating to decarbonisation applied to the
Chief Executive – Concrete in FY24 and FY25, no payment was made against this measure in either year.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES34
FB BOARD (FY26: 9 MEETINGS)
• Provides overall strategic guidance and effective oversight of management.
• Has ultimate oversight of CRRO, including key financial and non-financial risks and FB’s
commitments relating to sustainable development, the environment and the community,
and considers material CRRO when developing and overseeing implementation of the
Group’s overall strategy, where applicable.
• Delegates specific climate-related responsibilities to PREM, ARC and SHES Committees,
and receives recommendations and reports from those Committees.
• Approves the ESG Framework, Risk Management Framework (RMF), Climate Strategy,
science-based targets and annual CRD, on the recommendation of the relevant
Committees.
• Maintains climate and sustainability capability through Directors’ diverse experience
represented in the Board Skills Matrix, which includes ‘Climate change’ as a distinct
capability area, supplemented by internal and external advice on climate-related matters
where required to support decision-making.
9. Our Governance of Climate-related Risks and Opportunities
9.1 Governance and management hierarchy
The diagram below outlines Fletcher Building’s Governance and
Management Hierarchy for CRRO, with key responsibilities set out in
the accompanying narrative.
PREM COMMITTEE (FY26: 3 MEETINGS)
• Meets at least three times annually and reports to the Board after each meeting.
• Considers financial and non-financial outcomes and risks, including climate-related STI
objectives for Executives where relevant.
• Supports the Board in overseeing and recommending FB’s remuneration strategy, policy
and outcomes for the Group Chief Executive Officer and Executive Leadership Team.
CFO & CSSO
• Lead climate reporting to ARC and SHES respectively, supported by the CRWG and inputs from
divisions and business units.
• Are co-accountable for preparing the annual CRD for ARC and SHES review.
DIVISIONS AND BUSINESS UNITS
• Participate in annual CRRO processes, supported by relevant
CRWG members, and provide input on division and business
unit CRRO, initiatives, metrics and targets.
• Support validation of material CRRO and provide information
and evidence required for CRD preparation, substantiation
and assurance.
SHES COMMITTEE (FY26: 5 MEETINGS)
• Meets at least four times annually and reports to the Board after each meeting.
• Oversees FB’s ESG Framework and Sustainability Policy, including environment,
sustainability and climate-related strategies, governance and performance, and
emissions performance, key assumptions, strategic sustainability measures,
regulatory updates, and rotational updates from Divisional Chief Executives on
divisional sustainability performance and insights.
• Reviews and recommends FB’s Climate Strategy, climate-related commitments,
actions and emissions reduction targets to the Board, and oversees implementation
and progress against related work programmes.
• Monitors SHES-related compliance requirements, climate science and key climate
change developments.
• Reviews and monitors the Group’s portfolio resilience and ability to adapt to transition
and medium- to long-term physical CRRO.
• Reviews relevant aspects of the CRD and climate-related assurance scope jointly with
ARC, where required, before recommendation to the Board for approval.
ARC COMMITTEE (FY26: 5 MEETINGS)
• Meets at least four times annually and reports to the Board after each meeting.
• Supports the Board in overseeing FB’s RMF, including internal controls, financial, disclosure,
operational and emerging risks, business resilience, business continuity planning and
incident management, excluding medium- and long-term ESG matters and CRRO, which
are governed through the ESG Framework and overseen by SHES.
• Reviews climate-related matters that intersect with ARC’s remit, including current acute
physical climate-related risks, supply chain risks, financial impacts, climate-related
frameworks, methodologies and metrics, and NZ ETS matters where relevant.
• Oversees climate-related assurance, including assurance plans, practitioner
recommendations, assurance scope, terms and fees, and reviews and recommends the
annual CRD to the Board jointly with SHES for approval.
Management role in assessing and managing CRRO
Board oversight of CRRO
EXECUTIVE LEADERSHIP
• Responsible for identifying, assessing, validating and managing CRRO, informed through
monthly Executive meetings where relevant and in line with the CRD schedule, and
escalating material matters to ARC, SHES or the Board as appropriate.
• Uses climate change trends, material CRRO assessment outputs, divisional workshops and
relevant business unit planning inputs to inform broader strategy considerations where material.
• Implements the ESG Framework by considering relevant climate plans, mitigation initiatives,
transition plan alignment and the Group decarbonisation roadmaps into divisional plans,
capital reviews, annual budget planning and operational reviews, where material.
• Monitors divisional performance across material ESG matters, including climate, and
applies the RMF as the supporting framework for enterprise risks that intersect with CRRO,
including business resilience, supply chain, regulatory and legal, financial, operational and
emerging risks.
CRWG
• Cross-functional management working group chaired by the Chief Safety & Sustainability Officer
(CSSO), with representatives from Insurance & Treasury, Risk & Assurance, Company Secretary
and Legal Counsel (Governance), Sustainability, Corporate Affairs and Finance & Performance.
• Coordinates the annual CRD process, including disclosure development, substantiation,
assurance activities, governance approvals, engagement with the assurance provider and
responses to external feedback where relevant.
• Brings together functional expertise and top-down Board and Committee perspectives with
bottom-up division and business unit inputs on material CRRO as part of the annual CRRO
process, subject to Executive validation.
• Engages with ARC, SHES and the Board through the CRD schedule and governance review
points, including CRWG-coordinated Committee papers and Executive updates where relevant.
Engagement increases during key reporting periods and ahead of assurance, Committee
review and Board approval milestones, with material matters escalated as required.
PREM COMMITTEE
SHES COMMITTEEARC COMMITTEE
INTERNAL AUDIT
CFO
FINANCEGOVERNANCE
CORPORATE AFFAIRS
CSSO
DIVISIONDIVISION
FB BOARD
EXECUTIVE LEADERSHIP
INSURANCESUSTAINABILITY
BUBUBUBU
C LIMATE
REPORTING
WORKING GROUP
(CRWG)
GROUP
RISK

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES35
9.2 Governance activities in FY26
The key roles, responsibilities and Committee reporting cadence set
out in the 9.1 Governance and Management Hierarchy above describe
Fletcher Building’s routine climate governance arrangements. This
subsection does not repeat those routine processes; it summarises
specific governance activities undertaken in FY26 that supported the
preparation, review and oversight of the annual CRD.
GROUP-WIDE INCLUDING AUSTRALIAN BUSINESSES
FY26 was the first year that Fletcher Building (Australia) Pty Ltd, FB’s
wholly owned subsidiary, was required to prepare CRD under
AASB S2. In response, the Group reviewed the approach to the
Group and FBA to support consistent application of CRRO, metrics,
judgements and methodologies where relevant, while recognising
differences between NZ CS and AASB S2 requirements. This included
confirmation that the Board and Committees oversee Australian
business units as part of broader Group oversight, and management
monitors and reviews Australian business units and entities through
existing governance processes, including the appointment of directors
to those subsidiaries.
In FY26, the CRWG implemented a section-by-section CRD
preparation timetable, setting out the relevant disclosures, supporting
analysis and Committee review points. This timetable staged key
reviews across the reporting cycle to support the timely ARC and
SHES review of the approach, key judgements and methodologies
applied across both jurisdictions through relevant Committee papers.
AUDIT AND RISK COMMITTEE (ARC)
In FY26, the ARC considered a number of climate-related matters,
with relevant decisions and recommendations reported to the Board
through usual ARC reporting process:
• removal of the Internal Cost of Carbon Framework;
• approval of an internal tiered climate-related capital and
operating expenditure deployment framework;
• the refreshed RMF, noting that ESG matters and CRRO are
governed through the ESG Framework and overseen by SHES,
rather than through the RMF; and
• appointment of the new climate-related assurance provider and,
jointly with SHES, the assurance scope of work and fees.
No update in relation to the NZ ETS was provided to ARC in FY26, as
this matter was reviewed directly by the Board, particularly in relation
to impacts on Golden Bay Cement®’s operating model.
SAFETY, HEALTH, ENVIRONMENT AND
SUSTAINABILITY COMMITTEE (SHES)
In FY26, SHES endorsed the following climate-related matters for
Board approval, which were subsequently approved by the Board:
• the refreshed ESG Strategy & Governance Framework (ESG
Framework), aligned to the Group’s refreshed operating model,
to support Director oversight of material ESG matters, including
climate-related matters requiring disclosure. The refreshed
ESG Framework included revised CRRO processes, which are
described in the 10. Risk Management section;
• The ‘World View’ climate scenario to support the refined FY26
climate-related scenario analysis; and
• revised science-based emissions reduction targets for continuing
operations, in support of the Group’s climate ambition and
commitment to Net Zero by 2050.
During the year, SHES also undertook an externally facilitated long-
term scenario analysis workshop, attended by Directors, to assess
‘Ambition’ and ‘Worst-case’ scenarios for selected material CRRO.
Light Building Products, Heavy Building Materials and Residential
and Development divisions presented to SHES on their respective
sustainability performance and insights in FY26.
PEOPLE AND REMUNERATION COMMITTEE (PREM)
In FY26, PREM endorsed a refreshed Short-Term Incentive (STI)
scheme, which includes a 10% weighting for non-financial individual
performance goals for Executives. The STI framework also included a
placeholder for individual business improvement goals, which may be
used where a risk or opportunity is material to the relevant business.
These goals are individually determined and may include ESG-related
objectives where relevant to the Group or applicable division. No
Executive had a specific climate-related STI goal in FY26.
EXECUTIVE LEADERSHIP, DIVISIONS AND BUSINESS
UNITS
The Executive endorsed, and recommended to the SHES Committee
the endorsement of, the ESG Framework and revised CRRO
methodology, participated in scenario analysis for one material
CRRO, and validated the final material CRRO.
In FY26, divisions and business units participated in the refreshed
ESG and CRRO processes, including workshops described in the
10.Risk Management section. Sustainability Leadership Training was
also delivered to General Managers and their Leadership Teams in the
Distribution and Light Building Products divisions.
BOARD
Outputs from ARC, SHES and PREM were reported to the Board after
each Committee meeting.
During FY26, CRRO-related matters were reported to the Board
through these Committee reports where relevant, and through direct
Board updates on matters including Divisional updates on electricity
and fuel strategies, and Golden Bay Cement®’s operating model.
The Board also received material CRRO disclosure as part of the final
CRD approval process. This includes SHES endorsement of material
CRRO in September 2026, and ARC endorsement of the full CRD,
including material CRRO and associated impacts, together with SHES
members, before Board approval of the CRD in October 2026.
During FY26, the Board adopted an updated Board Skills Matrix, with
climate change added as a distinct capability, reflecting the skills
and experience relevant to the Board’s oversight of climate-related
matters.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES36
10. Risk Management
Risk framework
Fletcher Building’s ESG Framework governs material environmental,
social and governance matters across the Group, including CRRO. For
climate-related matters, the ESG Framework is supported by the Master
CRRO Register, which captures CRRO identified through the CRRO
assessment process. The ESG Framework sets out dedicated processes
for identifying, assessing, validating and monitoring CRRO across
scenarios and time horizons.
The RMF supports the management of enterprise risks across the
Group. The RMF is aligned with the principles and terminology of ISO
31000:2018 Risk Management – Guidelines. It focuses on short- and
near-term enterprise risks, including business resilience, supply chain,
regulatory and legal, financial, operational and emerging risks.
The ESG Framework and RMF operate as complementary processes. The
ESG Framework captures and assesses medium- to long-term strategic
CRRO, while the RMF supports management of current and near-term
enterprise risks that may intersect with climate-related matters. These
intersections may include acute physical risks, supply chain disruption,
business continuity planning and incident management.
The FY26 CRRO materiality assessment considered qualitative factors
including strategic, operational, regulatory, reputational and value chain
significance. Where financial impacts could be reasonably estimated,
the Group’s RMF risk criteria and consequence scale were used as a
reference point to support the financial materiality assessment.
Governance oversight of the ESG Framework, RMF and related CRD
processes is described in the 9. Governance section.
Value chain scope and limitations
The CRRO assessment considers value chain exposures where
relevant across the Group’s operations, suppliers, products,
customers and markets. However, the scope and depth of
assessment vary by risk. Physical risk modelling focuses on owned
and operated sites, supply chain assessment focuses on selected
critical Tier 1 suppliers, and downstream customer impacts are
assessed primarily on a qualitative basis. Detailed quantitative
assessment does not currently extend consistently across suppliers
of suppliers or the full upstream and downstream value chain,
reflecting data and methodological limitations. Specific scope and
limitations for individual CRRO are described in 3. Climate-related
Risks and Opportunities (CRRO).
CRRO assessment process
The CRRO assessment process builds on Fletcher Building’s prior-
year climate risk methodology, including physical risk modelling,
supply chain assessment and divisional transition risk and
opportunity review activities.
The process applies the time horizons and ‘World View’ described
in the 2. Strategy section, including the specified duration of each
time horizon.
As summarised in Figure 3, Fletcher Building’s CRRO assessment
process combines the review of the Master CRRO Register, the
bottom-up divisional and business unit materiality workshops, the
top-down Director scenario analysis and resilience assessment,
Executive validation, and Legal, Finance and CRWG review before
disclosure. This process supports the identification, assessment,
validation and disclosure of material CRRO.
Annual business unit risk review workshops, led by Group Risk &
Assurance, also inform the CRRO process where climate-related
exposures intersect with enterprise risks. Outputs from these risk
review workshops are used to validate management’s assessment
of relevant CRRO and proposed responses, particularly for current
or near-term matters that may impact business resilience, business
continuity, supply chain and operational exposures.
The tools and methods summarised in Tab l e 1 are used to identify
CRRO, and for identified climate-related risks, to assess their scope,
size and impact. The tools and methods applied vary depending
on whether the matter relates to physical risk, transition risk or
climate-related opportunity, or a current and near-term enterprise risk
intersection.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES37
RISK CATEGORYTOOLS AND METHODSASSESSMENT APPROACH AND RATIONALE
Physical risks
Marsh Advisory physical climate risk
modelling of the assessed Group
sites using RMS Climate on Demand,
including downscaled CMIP6
projections adjusted to baseline hazard
levels; FY26 high-level review of site and
TIV coverage; and divisional materiality
workshop input
Assessed primarily under the ‘Worst-case’/‘Hot House World’ scenario,
as physical risks such as storms, floods, heat stress and water stress
are already becoming more frequent and severe. Prior-year physical
risk modelling outputs were reviewed against FY26 sites and TIV
information, including removal of sites no longer within Fletcher
Building’s operating footprint. No material movement in AAL outputs
was identified that required the modelling to be refreshed for the FY26
process. The modelling outputs, including AAL information where
available, were used in the divisional materiality workshops to support
assessment of the relevance, scope, size and impact of physical
risks to divisions and business units, supporting asset management
planning and testing of material CRRO.
Transition risks and
climate-related
opportunities
NZGBC climate scenarios, structurally
aligned to TCFD, and transition risk
and climate-related opportunity
work undertaken across FY23, FY24
and FY25. In FY26, Group-level
Master CRRO Register review; and
divisional and business unit materiality
workshop input.
Assessed through a multi-scenario lens. Prior-year transition risks and
climate-related opportunities were used as the starting point and
refreshed through FY26 CRRO process. Divisions and business units
assessed the relevant transition risks and climate-related opportunities,
particularly under the ‘Realistic’/‘Disorderly’ scenario for short- and
medium-term operational impacts. Outcomes were aggregated
and tested through top-down Director scenario analysis, resilience
assessment and Executive validation, including consideration of longer-
term strategic risks and opportunities under the ‘Ambition’/‘Orderly’ and
‘Worst-case’/‘Hot House World’ scenarios. This process supported the
determination of material CRRO at Group level.
Current and near-
term enterprise risk
intersections
Business unit risk review workshops
led by Group Risk & Assurance using
the Group’s standard risk assessment
approach. Prior-year enterprise risk
review outputs, including acute climate-
related physical risk outputs from Marsh
modelling; the RMF and Enterprise
Risk Register; and current external risk
context, including supply chain and
geopolitical developments.
Assessed through the RMF where climate-related exposures intersect
with current and near-term enterprise risks. For FY26, prior-year
enterprise risk review outputs and current external risk context were
used as inputs to validate relevant CRRO and proposed responses,
particularly for business resilience, business continuity, supply chain
and operational exposures. In the coming year, business unit risk
review workshops are expected to be conducted using refreshed RMF
and risk categories.
Once material CRRO are identified and validated, the relevant division
or business unit considers appropriate responses. At a Group level,
responses are prioritised based on the potential mitigation of material
CRRO and may then be incorporated into business strategy, asset
management, business continuity plans, strategic plans, investment
reviews, operational planning, insurance and risk financing
considerations, resilience activities or transition planning.
Table 1 - Tools and methods used in the CRRO assessment process

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES38
Figure 3 – How We Identify,
Assess and Manage CRRO
Figure 3 summarises how Fletcher Building
identifies, assesses, validates and manages
CRRO. The ESG Framework, supported by
the Master CRRO Register, is the primary
framework for material CRRO. The RMF and
Enterprise Risk Register support this process
where current and near-term climate-related
matters intersect with enterprise risks.
Climate reporting framework aligned
to enterprise risk management and
ESG governance.
ASSESSMENT & GOVERNANCE PROCESS
IDENTIFY POTENTIAL CRRO
• Master CRRO Register
reviewed annually
BOTTOM-UP ASSESSMENT
• BU/Divisional materiality
workshops (likelihood
and impact rating)
TOP-DOWN REVIEW
• Director scenario analysis
and resilience assessment
• Strategic alignment and
materiality testing
EXECUTIVE VALIDATION
• Final material
CRRO validated
• Aggregation /
disaggregation and
consistency review
DISCLOSURE REVIEW
• Cross-functional review
• Committee and Board
review/approval
MATERIAL CRRO
Prioritised register of
material CRRO
BUSINESS PLANNING
Climate inputs
considered in
strategic and
capital reviews
ASSET MANAGEMENT
Physical risk inputs
considered in asset
lifecycle decisions
BCP & RESILIENCE
Business continuity
and resilience
planning
T R A N S I T I O N
PLANNING
Decarbonisation
pathways and
opportunity capture
DISCLOSURE
CRD reporting
and stakeholder
communication
RISK MANAGEMENT FRAMEWORK
Enterprise Risk Framework aligned to ISO 31000:2018
Enterprise Risk Register (current and near-term)
• Business resilience and supply chain
• Markets & regulatory and legal
• Financial, operational and emerging risks
ESG FRAMEWORK (DEDICATED CRRO PROCESS)
Master CRRO Register
• Physical climate risks, including acute and chronic risks
• Transition risks and climate-related opportunities
• Strategy scenario analysis
Primary process focus: medium- to long-term CRRO
INTERSECTION
• Current and near-
term climate atters
that intersect with
enterprise risks
ANNUAL BUSINESS UNIT ENTERPRISE RISK REVIEW WORKSHOPS
Led by Group Risk & Assurance inform the CRRO process where climate-related matters intersect with enterprise risks.
CONTINUOUS FEEDBACK LOOP
Outputs feed back into the ESG Framework and RMF, including annual refresh of the Master CRRO Register and updates after material climate-related events where relevant.
OUTPUTS & INTEGRATION

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES39
CRRO materiality
In FY26, Fletcher Building assessed CRRO materiality primarily through
qualitative assessment, supported by quantitative information where
available and relevant.
The qualitative assessment considered strategic, regulatory,
operational, reputational and value chain significance, including
whether a CRRO could materially affect the Group’s strategy, resilience
or operations. This assessment involved management judgement
based on reasonable and supportable information available without
undue cost or effort, and was informed by divisional and business unit
materiality workshops, scenario analysis and Executive validation.
Where financial impacts could be reasonably estimated, quantitative
information was used to support the materiality assessment. This
included relevant physical risk modelling and, where applicable,
consideration of the Group’s RMF risk criteria and consequence scale.
Where the RMF consequence scale was applied, financial impact
was considered by reference to the potential impact on overall Group
earnings, expressed as an annual average loss or benefit, being the
expected impact within a 12-month period over time. This approach
is most applicable to current and near-term risk exposures where
financial impacts can be reasonably estimated.
At Group level, CRRO are considered material for disclosure
where the assessment indicates that the risk or opportunity could
materially affect the Group’s strategy, resilience, operations, financial
performance, regulatory position, reputation or value chain.
Climate-related risks are prioritised relative to other risks according to
their nature and time horizon. Current and near-term climate-related
matters that intersect with enterprise risks are considered through
RMF processes alongside other business risks. Medium- to long-term
strategic CRRO are assessed and prioritised through the dedicated
CRRO process and Master CRRO Register, informed by divisional and
business unit input, scenario analysis and Executive validation.
ASSESSMENT
OUTCOME
RISK
(Meaningful impacts to
financial performance,
operations, value chain or
reputation.
OPPORTUNITY
(Material benefits such
as revenue growth, cost
avoidance or improved
market positioning.)
MaterialSignificant impacts that could
affect the viability, resilience, or
strategic direction of the Group.
May involve substantial financial
impact, major disruption,
regulatory exposure, or loss
of social licence, and requires
active Executive and Board
oversight.
Strategically significant
benefits that materially
enhance long-term value,
competitiveness or resilience.
Central to the Transition Plan
and delivery of the Group’s
climate ambitions, requiring
strategic commitment and
investment.
Not MaterialLimited, localised impacts
that are minor, short-term or
manageable through existing
controls and processes.
Does not materially affect
strategy, resilience, compliance
or stakeholder confidence.
Incremental benefits that
deliver minor efficiency,
cost or sustainability gains.
Not critical to strategy or
competitiveness and limited
impact if not realised.
Table 2 – Materiality guide table
Risk management refinements and
activities in FY26
In FY26, Fletcher Building refreshed the frameworks and processes used
to assess and manage CRRO. This refresh was undertaken to align the
CRRO process with the Group’s refreshed operating model, continuing
business operations, strategy, ‘World View’ and updated RMF.
As signalled in FY25, more detailed assessment of CRRO across
scenarios and time horizons was not yet fully integrated into business
unit risk management practices. In FY26, this was addressed through the
refreshed ESG Framework and dedicated CRRO process, rather than by
incorporating all CRRO into the RMF. This recognises that CRRO may have
different characteristics from other enterprise risks, including longer time
horizons, higher uncertainty and impacts across the value chain.
Key FY26 refinements include:
• refreshing the ESG Framework, including clearer CRRO
assessment and materiality processes;
• refreshing the RMF, including clearer recognition of how
current and near-term enterprise risks may intersect with
climate-related matters;
• applying the Group’s ‘World View’ to support more targeted use
of climate scenarios;
• strengthening bottom-up input from divisions and business units
through CRRO materiality workshops;
• using Executive and Director scenario analysis and resilience
assessment to inform the assessment of material CRRO;
• applying Executive validation to confirm material CRRO and
assess organisational resilience; and
• focusing disclosure on CRRO assessed as material through
the refreshed process, rather than carrying forward all CRRO
disclosed in the prior year.
During FY26, the process included:
• 26 business unit risk review workshops led by Group Risk &
Assurance, as part of the broader enterprise risk process, with
relevant outputs informing the CRRO assessment;
• 5 divisional CRRO materiality workshops including separate New
Zealand and Australian workshops for Light Building Products
division, with Stramit® (Heavy Building Materials division)
included in the Australian workshop;
• 1 Director scenario analysis / resilience workshop;
• 1 Executive scenario analysis / resilience workshop; and
• Executive validation of material CRRO.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES40
11.1 Appendix A: Detailed climate scenarios
Scenario One
An ‘Orderly’ scenario where the world succeeds in limiting global
temperature increase to 1.5°C above pre-industrial temperatures.
Global emissions decline steadily to achieve Net Zero CO
2
emissions
globally by 2050. Australia and New Zealand climate policies are
ambitious and in line with the rest of the world’s, with the building
and construction sector adopting and prioritising decarbonisation
policies. The energy grid shifts rapidly away from fossil fuel use, with
the New Zealand grid reaching 100% renewable by 2050. Australia
decarbonising to 82% by 2032. Alternative fuels are used as a backup,
and renewables are utilised on site instead of fossil fuels.
The shadow price of carbon increases dramatically to align with
a 1.5°C trajectory, steadily rising up to $250/t CO
2
e by 2050 (an
increase) of ~614% from a 2023 baseline of $35/t CO
2
e). As a result,
the cost and lead times for low-carbon materials and products
increase through the 2020s and 2030s, but they become more
cost and time effective than traditional materials by 2040. The
construction sector grows significantly as carbon-supporting
infrastructure is replaced with greener, low-carbon infrastructure.
New Zealand Emissions Trading Scheme (NZ ETS) is amended to make
Carbon Capture and Storage (CCS) a recognised removal activity. CCS
systems are implemented in the medium term to accelerate the rate of
decarbonisation and mitigate hard-to-abate fossil fuel use.
The primary driver of changes to land use and densification is
GHG emissions reduction, with changes in transportation use and
community connections being of primary importance out to 2050.
Land use change due to increased forestry sequestration continues
through to 2050 but the extent is limited and has marginal impacts on
food production and biodiversity.
Regulatory changes for the property and construction sector include
government procurement policies targeting recycled materials and
circular economy principles. Stringent energy and carbon caps for
new buildings are phased in rapidly. Existing buildings must disclose
energy and carbon performance, take steps to remove all reliance on
fossil fuels for operation, and scale up energy efficiency.
Pressures on centralised infrastructure increase with the demand for
electrification, closing of fossil fuel power stations and direct climate
impacts on storm and wastewater networks. Modular, circular designs
will take precedence, with existing building reuse and adaptive reuse
being in demand rather than new builds. Rapid densification puts
pressure on horizontal infrastructure, necessitating significant upgrades.
Significant behavioural change results in an increased demand for
energy-efficient buildings, increased pressures on public transport,
the rise of circular business models and a higher consumer
awareness regarding low-carbon buildings.
Increase in
average global air
temperature
(relative to pre-
industrial levels)
Average sea level
rise NZ
(from a 1995-2014
baseline)
Increase in
number of hot
days in NZ
(from a 1986-2005
baseline)
Increase in rainfall
intensity in NZ
(from a 1986-2005
baseline)
Increase in
extreme wind
speeds in NZ
(from a 1986-2005
baseline)
2041-
2060
1.6°C
2031-
2050
0.19m40%6%Up to 5%
2081-
2100
1.4°C
2081-
2100
0.39m40%6%Up to 5%

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES41
S c e n a ri o Two
A ‘Disorderly’/‘Delayed Transition’ where policy, technology and
behaviour changes remain slow up until 2030. As global emissions
continue to rise during the 2020s, concerns about meeting Paris
Agreement Goals drives a sudden shift in global policy around 2030.
Abrupt and stringent decarbonisation policies are enacted in the
2030s, succeeding in limiting global warming to below 2°C above
pre-industrial levels by 2100.
The pace of change also generates significant financial incentives for
innovation, especially for carbon sequestration, capture and storage
which must play a large role in carbon emissions reduction by 2050.
New Zealand and Australia follow suit with the rest of the world,
leading to abrupt policy and market changes for the property and
construction sector post-2030. There is no initial increase in carbon
price up to 2030, at which point price rapidly increases to reach
$250/t CO
2
e by 2050.
During the 2020s there is a slow increase in demand for electricity,
followed by a surge in demand in the 2030s as New Zealand and
Australia rush to electrify our transport networks. The electricity
sector is unprepared for the sudden shift in demand at 2030, which
causes a delay in adequate expansion of the grid during the 2030s
and leads to supply constraints. These constraints result in more
frequent blackouts and fluctuations in electricity prices.
During the 2020s, increased regulation within the sector attempts
to address the need to decarbonise, but regulation is uneven across
local entities and conflicting regulations lead to uncertainty. At 2030
more stringent regulatory changes are introduced. During the 2020s
there is less investment signaling for both new and retrofit low-carbon
buildings, which causes further uncertainty and lack of momentum
until 2030. At 2030, significant regulatory changes demand an
immediate step change in building energy and carbon requirements.
Limited investment during the 2020s means the spike in demand for
low-carbon materials, low-energy technology and onsite generation
in 2030 causes significant disruption for the sector. Competition for
availability of products, materials, professional advice and competent
installers impacts significantly on both new building and retrofit
projects resulting in escalation in development costs.
After 2030, the primary driver of changes to land use and
densification switches to GHG emissions reduction, with changes
in transportation use and community connections being of primary
importance. Land use change due to increased forestry sequestration
takes place out to 2050 and there are moderate impacts on food
production and biodiversity as rapid decarbonisation efforts
significantly expand the extent of managed forests.
Pressures on centralised infrastructure are compounded after
2030 due to increasing densification and the increasing impacts of
physical climate risks. Spatial planning to prioritise decarbonisation
and densification versus climate resilience and managed retreat
is inconsistent across the country. This inconsistency leads to
increasing uncertainty for the construction and property sector
regarding which assets are most likely to become stranded.
Initially the construction and property sector is slow to decarbonise,
but ‘fast movers’ get the opportunity to utilise materials, capital, and
knowledge while late movers are disadvantaged when demands peak
post-2030.
Increase in
average global air
temperature
(relative to pre-
industrial levels)
Average sea level
rise NZ
(from a 1995-2014
baseline)
Increase in
number of hot
days in NZ
(from a 1986-2005
baseline)
Increase in rainfall
intensity in NZ
(from a 1986-2005
baseline)
Increase in
extreme wind
speeds in NZ
(from a 1986-2005
baseline)
2041-
2060
1.7°C
2031-
2050
0.2m40%6%Up to 5%
2081-
2100
1.8°C
2081-
2100
0.6m40%6%Up to 5%

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES42
Scenario Three
A ‘Hot House World’ where global emissions continue to grow.
Global average temperature rises to greater than 3°C above pre-
industrial levels by 2100.
Australia and New Zealand’s climate change policy remains in keeping
with the rest of the world. No further policies are introduced to curb
emissions, with the building and construction sector following suit.
Regulatory changes are slow and focus on adaptation and managing
climate driven immigration/refugees. The price of carbon remains at
the current ETS floor price through to 2050. Mandates are introduced
to conserve energy for critical functions, as asset and infrastructure
damages due to climate change are realised.
Australia and New Zealand’s electricity grid are gradually
decarbonised further in line with current policies. Emission grid
factors remain at 0.06 kg CO
2
e/kWh by 2050 which means buildings
wishing to achieve Net Zero carbon emissions must invest in their
own zero-carbon generation.
There are no incentives for meaningful behavioural change. A
significant breakdown of social cohesion occurs, with heat stress
and mental health impacts from climate change at record levels.
Food insecurity and growing populations drive retreat from
cities. Spikes in demand for housing occur due to climate-driven
immigration from other parts of the world and increasing numbers
of climate refugees.
Use of Carbon Capture and Storage is minimal. Current policies are
entrenched seeing New Zealand’s reliance on carbon sequestration
through forestry increase significantly out to 2050 in an attempt to
offset continued increases in emissions.
Existing low-carbon materials are readily available due to low
demand but there is little innovation beyond technologies and
materials currently available. Investment is prioritised towards
adaptation and climate resilience. Some assets become stranded
as building codes increasingly become more stringent regarding
the need for buildings to withstand climate impacts (such as storm
events, extreme rainfall, heatwaves and floods).
Centralised infrastructure will show failures and stresses, with
some assets becoming stranded due to physical impacts of climate
change. Consequently, local councils increase rates to invest in
protection and restoration of certain assets.
Increase in
average global air
temperature
(relative to pre-
industrial levels)
Average sea level
rise NZ
(from a 1995-2014
baseline)
Increase in
number of hot
days in NZ
(from a 1986-2005
baseline)
Increase in rainfall
intensity in NZ
(from a 1986-2005
baseline)
Increase in
extreme wind
speeds in NZ
(from a 1986-2005
baseline)
2041-
2060
2.1°C
2031-
2050
0.24m100%8.6%5-10%
2081-
2100
3.6°C
2081-
2100
1.08m300%26.1%Up to 10%

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES43
11.2 Appendix B: Data sources used for the three scenarios
The data sources set out below relate to the three NZGBC climate
scenarios (‘Orderly’, ‘Disorderly’ and ‘Hot House World’) that were
established and adopted by Fletcher Building in FY24. The scenario
framing remains unchanged in FY25 and FY26 to provide continuity
and comparability.
In FY24, Fletcher Building assessed three climate scenarios based
on the New Zealand Green Building Council (NZGBC) ‘Climate
Scenarios for the Construction and Property Sector’. These were
developed with participation from a wide range of industry and
public sector stakeholders, and Fletcher Building contributed through
representation on the NZGBC Leadership Group and Technical
Working Group. The NZGBC scenarios were then reviewed and
agreed with the Board and Audit and Risk Committee for adoption by
Fletcher Building.
DATA TYPE / VARIABLESOURCE AND ADDITIONAL NOTE/REMARK
SCENARIO ONE
(ORDERLY)
SCENARIO TWO
(DISORDERLY)
SCENARIO THREE
(HOT HOUSE
WORLD)
Increase in average global mean air
temperature
Intergovernmental Panel on Climate Change (IPCC), 2021: Summary for Policymakers. In: Climate
Change 2021: The Physical Science Basis. Contribution of Working Group I to the Sixth Assessment
Report of the IPCC. Cambridge University Press.
SSP1-1.9SSP1-2.6S S P 3 -7.0
Percentage increase in average
number of hot days per year
Ministry for the Environment (MfE), 2018: Climate Change Projections for New Zealand: Atmosphere
Projections Based on Simulations from the IPCC Fifth Assessment, 2nd Edition.
There is significant variability between regions for baseline (1986-2005) number of hot days per year,
however, percentage changes are similar across different locations.
RCP2.6 downscalingRCP8.5
downscaling
Increase in rainfall intensity data
MfE, 2018: Climate Change Projections for New Zealand: Atmosphere Projections Based on
Simulations from the IPCC Fifth Assessment, 2nd Edition.
This data was calculated using projected increase in rainfall depth for a 12 hour, ARI 100yr (“1 in 100
year”) rainfall event (as a proxy).
Based on the projected degree of warming
for RCP2.6
Based on the
projected degree
of warming for
RCP8.5
For Australia:
• Rainfall data
• Sea level rise data
Australian Bureau of Meteorology (BOM).
Emissions trajectory data
Network for Greening the Financial System (NGFS), International Institute for Applied Systems
Analysis (IIASA) Scenario Explorer (2021).
NGFS Net-Zero
2050
NGFS DisorderlyNGFS Hot-House
World

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES44
DATA TYPE / VARIABLESOURCE AND ADDITIONAL NOTE/REMARK
SCENARIO ONE
(ORDERLY)
SCENARIO TWO
(DISORDERLY)
SCENARIO THREE
(HOT HOUSE
WORLD)
New Zealand population and age
distribution projections
Tatauranga Aotearoa / Stats NZ, 2020: National population projections: 2020 (base) - 2073.Median
(50th percentile)
Median
(50th percentile)
High migration
(proxy)
Average sea-level rise (NZ) data
Te Tai Pari o Aotearoa / NZ Sea Rise 2022 Maps: For Public. Data for average NZ sea level rise was
derived from a random data point with the vertical land movement correction removed (this derives
the same number across all data points).
Timeframes for sea level rise data have been provided out to 2130, given that significant variation in
average sea level rise between scenarios will not be realised until beyond 2100.
SSP1-1.9SSP1-2.6S S P 3 -7.0
Projected changes in carbon, fossil
fuel use and energy efficiency for
buildings
Estimated using Ministry of Business, Innovation and Employment (MBIE): Building for Climate Change programme intentions as a benchmark.
Carbon price and oil price projections
He Pou a Rangi / Climate Change Commission (CCC), 2021: Scenarios dataset for Draft Advice for
Consultation (ENZ model).
TailwindsTailwinds &
Headwinds
Current Policy
Reference Case
Electricity grid emissions
Assigned with a sensible estimate for each scenario at different timeframes based on CCC, 2021: Electricity Market Modelling datasets.
Relative change in labour productivity
due to heat stress in NZ
NGFS Climate Impact Explorer.
The projections use average annual temperatures and are displayed with spatial aggregation method
using a population-weighted average.
Net-Zero 2050Delayed TransitionCurrent Policies
Global GDP data
NGFS, IIASA Scenario Explorer (2021).
Assumes a different level of chronic physical risk damage estimate. Net-Zero 2050 (medium
damages)
Net-Zero 2050
(medium damages)
Disorderly
(medium damages)
Current Policies
(high damages)
Net carbon emissions forestry data
CCC: modelling of forestry net carbon.TailwindsHeadwindsCurrent Policy
Reference Case
Climate Scenarios for the
Construction and Property Sector
New Zealand Green Building Council (NZGBC): Climate Scenarios for the Construction and Property Sector.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES45
DATA TYPE / VARIABLESOURCE AND ADDITIONAL NOTE/REMARK
SCENARIO ONE
(ORDERLY)
SCENARIO TWO
(DISORDERLY)
SCENARIO THREE
(HOT HOUSE
WORLD)
Combined Hazard Information
Platform (CHIP) catastrophe risk-
profiling tool
Aon: Combined Hazard Information Platform (CHIP). Draws on seismological, meteorological, hydrological and other data from a range of curated sources. Data linked to
locations to allow detailed site exposure assessment for a range of hazards.
Assessing climate change risks and
opportunities for investors: Property
and Construction Sector
Smith, M.H. (2013). Assessing climate change risks and opportunities for investors: Property and Construction Sector. Investor Group on Climate Change (IGCC) &
Australian National University.
The Intergovernmental Panel on
Climate Change Fifth Assessment
Report (IPCC AR5)
IPCC, 2014: Climate Change 2014: Impacts, Adaptation, and Vulnerability. Contribution of Working Group II to the Fifth Assessment Report. Cambridge University Press.
Climate Change Projections for New
Zealand (general)
MfE, 2018: Climate Change Projections for New Zealand.
Our Atmosphere and Climate 2023
MfE, 2023: Our Atmosphere and Climate 2023.
Climate Change 2013: The Physical
Science Basis (IPCC AR5 WGI)
IPCC, 2013: Climate Change 2013: The Physical Science Basis. Contribution of Working Group I to the Fifth Assessment Report. Cambridge University Press.
State of the Climate 2022
Commonwealth Scientific and Industrial Research Organisation (CSIRO) & BOM, 2022: State of the Climate 2022.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES46
11.3 Appendix C: Glossary of terms
1. Manufacturing revenue from sustainably certified products
The manufacturing revenue from sustainably certified products included in this report is revenue from products that hold a credible, third party verified, sustainability certification.
The sustainability certifications that we include are Type I environmental labelling requirements under the ISO 14024 Standard (Eco Choice Aotearoa, Good Environmental Choice Australia, Global GreenTag GreenRate™)
and Type III environmental declaration requirements under the ISO 14025 Standard.
These certifications qualify for the sustainable products credits in either the Green Star or IS Rating construction sustainability ratings within New Zealand and Australia.
We calculate the revenue for sustainably certified products as a percentage of the total revenue from products made or sold by our manufacturing businesses. We exclude revenue from non-manufacturing businesses
(our Distribution businesses) from the total revenue used for this calculation.
Where revenue is noted as being for products that hold Type I certification, these products may also hold Type III certification.
Where revenue is noted as being for products that hold Type III certification, these products do not also hold Type I certification.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES47
11.4 Appendix D: Methodology used for Greenhouse Gas (GHG) Emissions
FY26 Scope 1, Scope 2 and Scope 3 GHG emissions have been
externally assured by EY in accordance with NZ SAE 1: Assurance
Engagements over Greenhouse Gas Emissions Disclosure - issued
by External Reporting Board (XRB). Scope 1 and 2 GHG emissions
have reasonable assurance, and Scope 3 GHG emissions have
limited assurance.
Prior years were audited by Toitū Envirocare and received reasonable
assurance for Scope 1 and Scope 2, and limited assurance for Scope
3. The FY23, FY24 and FY25 Scope 1, 2 and 3 emission totals have
been restated due to divestments, addition of emission categories,
and improvements to calculation methodologies. More information
about these restatements are provided below. These restatements
have not been subject to assurance.
Scope 3 GHG emissions were assessed for all upstream value chain
categories and all downstream categories. Our reported Scope 3
GHG emissions for FY26 include data sourced directly from our
largest steel and cement suppliers. Supplier-specific data was used
for circa 47% of reported Scope 3 GHG emissions.
EMISSION FACTORS
All emissions were calculated using emission factors published
by New Zealand Ministry for the Environment (MfE, May 2026),
AustralianNational Greenhouse Accounts factors supplied from the
Australian Department of Climate Change, Energy, the Environment
and Water (DCCEEW, August 2025), IEA or calculated using third-
party data as specified below.
14, 15.
DESNZ, NZ and AU factors use 100-year time-horizon GWP (GWP100)
values, as listed in table 8.A.1 of the Fifth Assessment Report (AR5) of
the IPCC.
SCOPE 1
Emission factors for waste end-of-life-tyres and clinker were
sourced from Tables 7 and 9, respectively, from the Climate Change
(Stationary Energy and Industrial Processes) Regulations 2009.
16
Emission factors for refuse-derived fuel were calculated from third-
party elemental analysis and calorific value studies conducted on a
representative sample of plastic waste.
SCOPE 2
Location-based and market-based emissions were calculated using
applicable electricity emission factors from MfE, Bravetrace,
17
DCCEEW
and the IEA. The Residual Mix Factor in New Zealand used was the
12-month rolling average figure at Q4 2025 from Bravetrace. This point
was selected as a comparison to the same location-based time period
used by MfE. Emission factors (including biogenic Scope 2 emissions)
for electricity generated from landfill gas were sourced from DESNZ
SCOPE 3
Well-to-tank emissions were calculated for fuels including coal, LPG,
diesel, petrol, biopetrol and light fuel oil using DCCEEW factors.
Transmission and distribution losses from purchased electricity
and natural gas were calculated using billed consumption data and
applicable transmission loss factors from DCCEEW and MfE.
Upstream emissions from production of biomass used for bioenergy
used DESNZ emission factors. An emission factor for tyres was
derived from the DESNZ biomass production factor adjusted for
biogenic portion of tyres, assuming 27.8% natural rubber content.
No local upstream fuel-cycle factors for electricity generation were
available from New Zealand or Australian government sources.
Factors were therefore obtained from the most recent International
Energy Agency (IEA) 2025 dataset for New Zealand and Australia
(current from 01/2023). These factors were also applied to renewable
electricity when using the location-based method (LBM).
For the balance of Scope 3 emissions, we have used emission
factors from goods and services published by the New Zealand
18

or Australian
19
Governments to convert the mass, volume or other
units for goods and services into tonnes of CO
2
equivalents (t CO
2
e).
Where data on quantities of supply chain goods and services was not
available, we have estimated emissions using spend-based factors,
using the internationally recognised DESNZ (formerly DEFRA) factor
set
20
, corrected for exchange rates and inflation.
ASSUMPTIONS, LIMITATIONS AND UNCERTAINTIES
GHG quantification is subject to inherent uncertainty due to
limitations in activity data and incomplete scientific knowledge used
to determine emissions factors and the values needed to combine
emissions of different gases.
Uncertainties were qualitatively assessed based on the quality of the
activity data and relevance of emissions factors.
14. https://measuringemissionsguide.environment.govt.nz/files/measuring-emissions-catalogue-2026-v2.pdf
15. https://www.dcceew.gov.au/sites/default/files/documents/national-greenhouse-account-factors-2025.pdf
16. https://www.legislation.govt.nz/regulation/public/2009/0285/latest/DLM2390302.html
17. https://bravetrace.co.nz/how-it-works/residual-supply-mix/
18. Ministry for the Environment (MfE). 2026. Measuring Emissions Catalogue 2026, Version 2026.2. New Zealand Government, Wellington. Published 29 May 2026.
19. Department of Climate Change, Energy, the Environment and Water (DCCEEW). 2025. Australian National Greenhouse Accounts Factors 2025. Commonwealth of Australia,
Canberra, August 2025.
20. Spend-based emissions multipliers by broad Standard Industrial Classification (SIC) code, UK, 2023 from: UK and England’s carbon footprint to 2023 - GOV.UK (www.gov.uk)

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES48
Supplier-provided activity data (e.g., invoiced quantities from
suppliers or directly metered data) is assessed as lower uncertainty
because it reflects reported physical quantities or supplier-specific
information. Some uncertainty remains because the data depends
on the supplier’s own measurement, reporting systems and
completeness controls.
Where we have used spend data, the data is highly aggregated at a
Group level and therefore the uncertainty increases due to reduced
granularity of data on products and services being purchased. In
addition, the aggregate at Group level can affect the accuracy of
activity category allocations.
The GWP basis for the emission factors used in the inventory is
described above. Uncertainty in emission factors relates primarily
to how closely each factor represents the activity, geography and
supply chain being assessed. Region-specific factors, such as MfE
and DCCEEW factors, are considered lower uncertainty because they
are designed for New Zealand and Australian activities.
Spend-based factors, including DESNZ factors adjusted for exchange
rates and inflation, are used where supplier-specific or region-specific
emissions factors are not available. These factors are considered
appropriate because our supply chain is multi-national, and the
DESNZ factor set reflects a broad range of globally sourced goods
and services. However, uncertainty remains higher because they are
based on UK economic activity, require conversion using average
exchange rates and inflation, and rely on average emissions per
dollar of spend. As a result, they may not fully reflect the actual
emissions associated with specific purchases, as emissions can vary
significantly depending on supplier mix, supply chain characteristics,
production methods, product attributes, and market conditions
relevant to our operations in New Zealand, Australia, and other
sourcing locations.
EXCLUDED SOURCES AND BUSINESS UNITS
Fletcher Building owns a number of holding, trustee, name
reservation and other companies that are inactive. These businesses
that have no operational activities are included in the inventory but
have no emissions.
We report all GHG sources that make up >5% of our total inventory.
The following sources have been deemed immaterial and excluded:
• Scope 1: Hydrofluorocarbons (HFCs) used in cooling systems
• Scope 1: Emissions from on-site wastewater treatment systems
• Scope 3 Category 7: Business travel not procured through the
preferred travel agency was excluded, including taxis, rideshares,
personal vehicle mileage and accommodation or flights
purchased on personal or company cards.
• Scope 3 Category 11: HFCs in heat pump systems installed in
houses sold by Fletcher Residential.
• Scope 3 Category 12: Winstone Aggregates® end-of-life data
was not available in published EPDs at the time of publication.
Distributed steel products, due to near 100% recovery and
recycling rates at the end of life were also excluded.
• Scope 3 Category 13: Downstream leased assets were assessed
and excluded from the inventory due to low materiality.
RESTATEMENTS
In FY26 we restated our FY18, FY23, FY24 and FY25 inventories to
account for the:
• Divestment of Construction division (reducing scope 1, 2 and
3 emissions)
• Inclusion of the following Scope 3 sources: Category 10:
Processing of sold products (increasing Scope 3 emissions)
• Inclusion of the following Scope 3 emission sources in existing
categories (increasing Scope 3 emissions):
−Category 1: Land use change associated with product
manufacture
−Category 3: Upstream fuel-cycle (well-to tank) emissions from
solid fuels (coal, biomass and tyres)
−Category 9: Downstream transport emissions from customer-
arranged collection from PlaceMakers® and Mico® stores
−Category 12: End-of-life emissions from sold cement and
concrete products
−Category 12: End-of-life emissions from products distributed
at PlaceMakers® and Mico® stores
• Correction of methodological errors in Category 1: Purchased
Goods and Services (increasing Scope 3 emissions)
−The breakdown of materials and labour in spend-based
emissions were re-evaluated, leading to a reported increase in
emissions from this category.
• Correction of methodological errors in Category 12: Use of Sold
products (increasing Scope 3 emissions)
−Lifetime emissions from sold houses were restated based on
corrected emissions per square metre of floor area and to
exclude out-of-boundary upstream emissions from external
water supply and treatment.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES49
Summary of changes from prior-year inventory and base year (rebaselined basis):
21
21. Scope 3 emissions for FY18 have not been included or restated because in FY26, we established FY23 as the Scope 3 base year, reflecting the improved availability and quality of Scope 3 data from that year onward.
SCOPEREBASELINING SUMMARY (kt CO
2
e )
FY18
P R E V I O U S LY
REPORTED
FY18
R ESTAT ED
FY23
P R E V I O U S LY
REPORTED
FY23
R ESTAT ED
FY24
P R E V I O U S LY
REPORTED
FY24
R ESTAT ED
FY25
P R E V I O U S LY
REPORTED
FY25
R ESTAT ED
Scope 1
896852773733752712714680
Scope 2
(LBM)
303302239238217216196196
Scope 3
1,5703,5961,5032,8171,5872,760
Total2,5824,5682,4723,74 52,4983,636
CHANGES TO SCOPE 3 METHODOLOGY
The FY26 inventory includes expanded Scope 3 coverage. These
additions impact comparability with previous reporting periods and
the FY23, FY24 and FY25 years have been updated for consistency in
all cases.
Category 1: Purchased goods and services
• Updated: Custom emission factors were derived for three
significant spend-based categories that comprise both material
and labour components. These categories were split into
material, labour and other emission sources, mapped to relevant
DESNZ spend-based factors and weighted by FY26 spend.
The resulting emission factors were applied to the aggregate
Group total.
• Updated: One significant spend-based category that was
mapped in previous years to a labour-only DESNZ emission
factor was updated to reflect purchased materials, leading to an
increase in reported emissions.
Category 3: Fuel & energy-related activities
• Included: Well-to-tank fuel emissions from liquid fuels, coal, tyres
and biomass.
Category 4: Upstream transportation and distribution
• Updated: All contracted freight has been included in this
category. Previously some was assigned to Category 9.
Category 7: Employee commuting
• Updated: FY23 base year figures for employee commuting and
remote working were recalculated based on more accurate FY24
employee survey data and applied based on FY23 headcount.
Previously, national-average travel distances were applied.
Category 9: Downstream transportation and distribution
• Included: Emissions from customer-arranged transport were
estimated for pick-up sales from PlaceMakers® and Mico® stores.
• Updated: Data from previous reporting periods that had
previously been assigned to this category from contracted freight
services was reassigned to Category 4.
• Updated: This category was also updated to include warehousing
and support services for transportation which was previously
included in Category 1.

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES50
Category 10: Processing of sold products
• Included: Emissions from the processing of sold cement were
estimated and included in the inventory.
Category 11: Use of sold products
• Updated: A methodological update to the in-use emissions from
houses built and sold by Fletcher Residential resulted in an apparent
increase compared with previously reported figures; however, this
does not reflect a change in underlying real-world emissions.
• Updated: The emissions intensity used for sold houses was
previously indexed using the full lot size of the model house rather
than its floor area. This error understated Fletcher Residential
emissions in this category by approximately three times.
Category 12: End-of-life treatment of sold products
• Included: In addition to previously estimated products, emissions
from glasswool insulation, cement, concrete products and
hardware sold at PlaceMakers® and Mico® were estimated
and included.
GHG METHODOLOGY
The tables below within this Appendix provides an overview of how data were collected for each GHG emissions source, the source of the data and an explanation of any uncertainties, limitations or assumptions made.
Scope 1 emissions
SCOPE 1 - STATIONARY COMBUSTION
GHG SOURCEDESCRIPTION AND UNITACTIVITY DATA AND EMISSION FACTOR SOURCESMATERIAL ASSUMPTIONS, LIMITATIONS AND UNCERTAINTY
Acetylene
Description: Welding gas
Unit: kg
Source of activity data: Supplier invoices - quantity
delivered
Emission factor source: EPA Ireland
Uncertainty level: Low
Bioenergy
Description: Wood chips, sander dust, reject board and
dried organic sludge used as fuel in heat plant
Unit: t
Source of activity data: Process weighing equipment;
supplier invoices and bulk reports; production-volume
calculations; and skip counts with sampled average
weights
Emission factor source: MfE (NZ), DCCEEW (AU)
Uncertainty level: Moderate
Activity data: Assumes constant dust generation per product type.
Emission factor: Assumes constant moisture content, except
Golden Bay Cement® where GCV is adjusted for measured
moisture content.
Coal
Description: Bituminous coal used in cement kiln
Unit: t
Source of activity data: Measured data obtained from
continuous process weighing equipment, reconciled
to monthly stock surveys. Stock surveys are an average
of multiple independent readings, excluding outliers. A
supplier-specific GCV is applied to each shipment.
Emission factor source: MfE (NZ)
Uncertainty level: Low

FLETCHER BUILDING 2026 CLIMATE-RELATED DISCLOSURES51
(Continued)
SCOPE 1 - STATIONARY COMBUSTION
GHG SOURCEDESCRIPTION AND UNITACTIVITY DATA AND EMISSION FACTOR SOURCESMATERIAL ASSUMPTIONS, LIMITATIONS AND UNCERTAINTY
Liquefied petroleum
gas - stationary
Description: LPG used in stationary plant (e.g.
generators, heat plant) and non-road registered mobile
equipment (e.g. forkhoists and loaders)
Unit: kg
Source of activity data: Invoices and bulk data reports
from suppliers
Emission factor source: MfE (NZ), DCCEEW (AU)
Uncertainty level: Low
Natural gas
Description: Natural gas used in stationary heat plant
Unit: GJ
Source of activity data: Invoices and bulk data reports
from suppliers
Emission factor source: MfE (NZ), DCCEEW (AU)
Uncertainty level: Low
Refuse-derived fuel
Description: Waste plastic used as fuel for cement kiln at
Golden Bay Cement®
Unit: t
Source of activity data: Measured data obtained from
continuous process weighing equipment. Emission
factor is based on microanalysis of point samples.
Emission factor source: MfE (NZ)
Uncertainty level: Moderate
Emission factor: Assumes GCV and make-up of feedstock is
uniform.
Stationary fuel
Description: Diesel, light fuel oil and petrol used in
stationary plant, process heat equipment and non-road
registered mobile equipment
Unit: l
Source of activity data: Invoices and bulk data reports
from suppliers
Emission factor source: MfE (NZ), DCCEEW (AU)
Uncertainty level: Low
Emission factor: Assumes constant calorific values for fuels;
petrol factors do not differentiate between regular and premium
grades.
Tyre - de rive d fue l
Description: Shredded waste tyres used as fuel for
cement kiln at Golden Bay Cement®
Unit: t
Source of activity data: Measured data obtained from
continuous process weighing equipment, reconciled to
monthly stock surveys.
Emission factor source: Climate Change (Stationary
Energy and Industrial Processes) Regulations 2009
Uncertainty level: Low
Emission factor: Assumes a consistent fossil: biogenic ratio and
that GCV is uniform for all feedstock.