Ferguson: Ferguson Enterprises : 2024 ESG Report

Environmental, Social and Governance Report FY2024 corporate.ferguson.com Contents 3 About our business A letter from our CEO Our company Our vision for sustainability Our ESG framework FY2024 highlights 8 Our commitment to the environment Our carbon targets Minimizing our environmental impact Our operations Our supply chain Environmental Product Sales Strategy Building water-resilient communities 17 Building a better world Empowering our associates Associate wellbeing Health & Safety Ferguson Cares Our supply chain responsibility 25 Leading a responsible business Our governance Sustainability governance Managing an ethical business 31 Data and frameworks ESG data SASB TCFD ESG Report FY2024 About our business Our commitment to the environment Building a better world Leading a responsible business Data and frameworks 2 About our business We help make our customers' complex projects simple, successful and sustainable by providing expertise and a wide range of products and services from plumbing, HVAC, appliances, and lighting to PVF, water and wastewater solutions, and more. ESG Report FY2024 About our business Our commitment to the environment Building a better world Leading a responsible business Data and frameworks 3 A letter from our CEO We are proud of the progress we made this year. Not only did we deliver a strong financial performance while outperforming our markets but we also continued to deliver upon our sustainability commitments. We achieved our goal to reduce operational emissions intensity and continue to be an employer of choice for our industry's best and brightest. In addition, Ferguson is well-positioned to meet the evolving needs of North America's residential and non-residential construction market. We see great potential to improve construction productivity using our core strengths: world-class supply chain, value-added solutions, digital tools and expert associates. We are taking advantage of industry trends and changing market dynamics, creating a path for a resilient future. Building a better world Working alongside our valued partners, Ferguson is helping to build a better world. Every day, we serve trade professionals, general contractors, developers, architects, engineers and business owners who are building North America - the places where we live and work. We provide products and solutions that help lower emissions, save water and preserve natural resources. We also use our sustainability knowledge to guide and help our customers achieve their goals. We believe that by making sustainability part of our sales strategy, we can impact the environment and society as well as create business value. A unique time in our history As a result of recent legislation and fiscal stimulus, many sectors across the United States are making investments to support their operations, much of which are directly tied to environmental sustainability. Public policy is also supporting ambitious projects, such as tunnels, chip manufacturing plants, battery plants, charging stations - and many other complex construction projects. The United States needs qualified trade professionals to make these projects happen but is lacking over 500,000 skilled tradespeople. This gap is likely to grow as more workers retire than join the skilled trades. Finding qualified talent is a leading challenge for our customers - and we're helping to solve it. We've been working hard to support a skilled trades workforce that can meet these needs. Through Ferguson Cares , we've teamed up with industry organizations, community colleges and local career and technical education schools to help grow the number of skilled trades professionals. Our partnerships with groups like the mikeroweWORKS Foundation, ACE Mentor Program of America and Explore The Trades have been very successful in developing talent, bringing the right skill sets to jobs that require them. We're proud of our efforts to expand the skilled trades talent pool through our efforts with organizations like the National Association of Women in Construction and our founding sponsorship of Women in Plumbing and Piping. The increasing unpredictability of water resources demands more effective, flexible and robust infrastructure. We are working hard to help our customers upgrade aging U.S. water infrastructure and build water-resilient communities for present and future generations. We are following legislation closely to comprehend public issues fully and addressing these opportunities proactively with innovative solutions. We will keep working to find new possibilities by making sustainability a part of our strategy and operations. We are determined to run a responsible business and contribute to building a better world. Thank you for your valued partnership, Kevin Murphy, CEO ESG Report FY2024 About our business Our commitment to the environment Building a better world Leading a responsible business Data and frameworks 4 Our company Ferguson is the largest value-added distributor serving the specialized professional in our $340B residential and non-residential North American construction market. We have strategically positioned our extensive network of ~1,800 locations within 60 miles of 95% of the population. This proximity allows us to foster long-term relationships with our customers, providing valuable experiences both online and in our branches. Our dedicated team of 35,000 associates is the driving force of our operations, setting us apart with their commitment to quality, knowledge and service. Together, we do more than construct homes and office buildings; we build trust, confidence and community. Our reach and relationships reflect our commitment to being an integral part of the communities we serve. Our purpose We help make our customers' complex projects simple, successful and sustainable. Our vision Our vision is clear: to be the ultimate project success company. Guided by our values - safety, integrity, service, teamwork and impact - our customer groups collaborate to bring greater value to our customers throughout the life of the project. Through scale deployed locally utilizing our world-class supply chain, value-added solutions and digital tools, along with our expert associates, we help meet our customers' unique needs. Read more about our business: corporate.ferguson.com. Unless otherwise noted, this ESG report presents data for Ferguson plc and its subsidiaries (collectively, "Ferguson") for the fiscal year ended July 31, 2024. Effective August 1, 2024, we implemented a new corporate structure to domicile Ferguson's ultimate parent company in the United States and Ferguson Enterprises Inc., a Delaware corporation, became the parent company to Ferguson plc (now known as Ferguson (Jersey) Limited). The new parent company continues to pursue Ferguson's strategic initiatives and business operations. About our report Our annual Environmental, Social and Governance (ESG) Report is more than just a demonstration of our commitment to transparency and accountability. It's a platform for us to share the inspiring stories of our associates who are driving change and making a significant impact. From helping our customers upgrade municipal water infrastructure, volunteering at home-building events, conducting energy and water efficiency field audits and more, the Ferguson team is always ready to tackle the initiative. We're the first to roll up our sleeves and the last to leave, ensuring the job is done - and done right. We're using our business strengths and aiming to advance our industry and protect our planet. We believe this approach is fostering innovation and resilience within our business, positioning us for continued growth. We're excited about the opportunity to make a lasting impact on the built world, and we're honored to play our part. Thanks for being a part of our sustainability journey. Your support fuels our commitment to help build a better world. Denise Vaughn, Vice President - Environmental, Social and Governance ESG Report FY2024 About our business Our commitment to the environment Building a better world Leading a responsible business Data and frameworks 5 Our vision for sustainability Our vision is to minimize the environmental impact of our operations and foster a culture that is safe, inclusive and engaging for all our associates. Beyond the scope of our operations, we are committed to driving sustainable product innovation and helping our customers achieve their sustainability goals while supporting the communities we serve through Ferguson Cares. Our approach integrates environmental, social and governance factors, recognizing that success requires holistic thinking and action. CEO Kevin Murphy and Waterworks Senior Director of Business Development David Hill represented Ferguson as the sole distributor at the White House roundtable on lead service line replacement. Our ESG framework Ferguson's Board-approved ESG framework provides a structured strategy that informs our actions and approach to ESG. As part of building this framework, we identified our priority ESG issues through risk management analyses, stakeholder priorities assessments and a review of Sustainability Accounting Standards Board guidance for the Multiline and Specialty Retailers & Distributors industry. As outlined in our Environmental and Social Sustainability Policy, we plan to refresh our stakeholder priorities assessment in FY2025 to ensure our focus remains aligned with our key stakeholders. Environmental Social Governance Fleet Health & Safety Board Management Electric / hybrid vehicles Associate Development and Composition Shareholder Engagement Facilities Inclusion & Diversity Energy management Human capital management Shareholder rights Renewable energy Supply Chain Executive compensation Sustainable Products Supplier compliance and Regulatory and Risk Oversight Supplier Code of Conduct Encourage adoption of sustainable Product safety Ethics / business conduct and e