The Azek Company Inc. (Azek): Analyse de Pestle [Jan-2025 MISE À JOUR]

Dans le monde dynamique des matériaux de construction durables, Azek Company Inc. se dresse au carrefour de l'innovation, de la conscience environnementale et de la transformation du marché. Cette analyse complète des pilons dévoile le paysage complexe des défis et des opportunités qui façonnent le positionnement stratégique d'Azek, explorant comment les politiques politiques, les fluctuations économiques, les changements sociétaux, les progrès technologiques, les cadres juridiques et les considérations environnementales convergent pour influencer ce niveau de pour d'une dégradation composite pionnier et du trajectoire du fabricant dans le trajectoire du fabricant dans le trajectoire du fabricant dans le trajectoire du fabricant dans le trajectoire du fabricant en pionnier et le trajectoire du fabricant de rail une industrie en constante évolution.

The Azek Company Inc. (Azek) - Analyse du pilon: facteurs politiques

Les infrastructures et les politiques de construction américaines sur le marché des matériaux de construction

En 2024, la loi sur les investissements et les emplois de l'infrastructure (IIJA) a alloué 1,2 billion de dollars pour le développement des infrastructures, avec 550 milliards de dollars désignés pour les nouveaux investissements en infrastructure. Cette législation influence directement le potentiel du marché d'Azek dans les matériaux de construction.

Domaine politique	Montant d'investissement	Impact potentiel sur l'azek
Dépenses d'infrastructure	1,2 billion de dollars	Demande accrue de matériaux de construction durables
Nouveaux investissements d'infrastructure	550 milliards de dollars	Opportunités de marché améliorées pour les matériaux composites

Incitations fiscales fédérales pour les matériaux de construction durables

La loi sur la réduction de l'inflation fournit des crédits d'impôt pour une construction durable:

• Déduction de bâtiments commerciaux économe en énergie jusqu'à 5 $ par pied carré
• Crédit d'énergie propre résidentielle à 30% pour les matériaux de qualification
• Incitations fiscales pour les produits de construction recyclés et durables

Politiques commerciales affectant les importations de matières premières et la fabrication

En 2024, les tarifs sur les matériaux de fabrication clés:

Matériel	Taux de tarif actuel	Volume d'importation
Plastiques recyclés	2.4%	1,2 million de tonnes métriques
Résines composites	3.8%	850 000 tonnes métriques

Règlements gouvernementaux sur les termes composites et les matériaux de construction

Cadres réglementaires clés ayant un impact sur la conformité des produits d'Azek:

• Lignes directrices de gestion des matériaux durables de l'EPA
• Normes internationales ASTM pour les matériaux composites
• California titre 24 Exigences d'efficacité énergétique

Métriques de la conformité réglementaire:

Catégorie de réglementation	Exigence de conformité	Statut de conformité azek
Normes environnementales	Limites d'émission de COV	Pleinement conforme
Sécurité des matériaux	Atteindre les réglementations chimiques	100% certifié

The Azek Company Inc. (Azek) - Analyse du pilon: facteurs économiques

Fluctuant le marché du logement et l'industrie de la construction

Le logement américain commence en 2023 a totalisé 1,44 million d'unités, ce qui représente une baisse de 4,3% par rapport à 2022. Le chiffre d'affaires d'Azek pour l'exercice 2023 était de 1,63 milliard de dollars, avec une baisse de 5,4% d'une année sur l'autre.

Année	Le logement commence	Revenus azek	Impact du marché
2022	1,55 million d'unités	1,72 milliard de dollars	Activité de construction élevée
2023	1,44 million d'unités	1,63 milliard de dollars	Déclin modéré

Inflation et pressions des coûts matériels

L'indice des prix des producteurs américains pour les matériaux de construction en 2023 a augmenté de 2,7%. Les dépenses de fabrication d'Azek sont passées de 512 millions de dollars en 2022 à 538 millions de dollars en 2023.

Année	MATÉRIAU PPI	Dépenses de fabrication	Augmentation des coûts
2022	4.9%	512 millions de dollars	Pression inflationniste élevée
2023	2.7%	538 millions de dollars	Augmentation modérée des coûts

Dépenses de consommation dans l'amélioration de la maison

La taille du marché de l'amélioration de la maison a atteint 485,4 milliards de dollars en 2023, avec une croissance de 3,2% par rapport à 2022. Le chiffre d'affaires du segment résidentiel d'Azek était de 1,12 milliard de dollars en 2023.

Taux d'intérêt et investissements en construction

Les taux d'intérêt de la Réserve fédérale étaient en moyenne de 5,33% en 2023. Les investissements en construction commerciale ont diminué de 2,1% pour atteindre 401,6 milliards de dollars.

Catégorie	Valeur 2022	Valeur 2023	Pourcentage de variation
Taux d'intérêt	4.75%	5.33%	+12.2%
Construction commerciale	410,2 milliards de dollars	401,6 milliards de dollars	-2.1%

The Azek Company Inc. (Azek) - Analyse du pilon: facteurs sociaux

Préférence croissante des consommateurs pour les matériaux de construction durables et à faible entretien

Selon le groupe Freedonia, le marché américain des matériaux de construction verte devrait atteindre 187,7 milliards de dollars d'ici 2025, avec un taux de croissance annuel composé de 11,5%.

Segment de marché	2024 Valeur projetée	Taux de croissance
Matériaux de construction durables	187,7 milliards de dollars	11,5% CAGR
Terrasse à faible entretien	8,3 milliards de dollars	7,2% CAGR

Augmentation de la conscience environnementale stimulant la demande de produits écologiques

Nielsen Research indique que 73% des consommateurs mondiaux modifieraient les habitudes de consommation pour réduire l'impact environnemental.

Démographique des consommateurs	Préférence de produit respectueuse de l'environnement
Milléniaux	85% disposés à payer plus pour des produits durables
Gen Z	76% de priorité à la durabilité environnementale

Les propriétaires de Millennial et Gen Z recherchent des espaces extérieurs durables et esthétiques

La National Association of Realtors rapporte que 68% des propriétaires entre 25 et 40 ans investissent dans des projets de rénovation de plein air.

Catégorie d'amélioration de la maison	Dépenses en 2024
Espaces de vie extérieurs	56,7 milliards de dollars
Discing et améliorations de terrasse	22,3 milliards de dollars

Vers la vie en plein air et l'amélioration de la maison pendant l'ère post-pandemique

Harvard Joint Center for Housing Studies indique que les dépenses d'amélioration de la maison ont atteint 485 milliards de dollars en 2022, une croissance continue prévue.

Tendance de l'amélioration de la maison	2024 projection
Dépenses totales d'amélioration de la maison	510 milliards de dollars
Amélioration de l'espace extérieur	32% du budget total de rénovation

The Azek Company Inc. (Azek) - Analyse du pilon: facteurs technologiques

Processus de fabrication avancés pour les systèmes de terrasse et de balustrade composites

Azek utilise des technologies de fabrication avancées avec un investissement de 45,7 millions de dollars dans des équipements de fabrication au cours de l'exercice 2022. La société exploite 7 installations de fabrication à travers les États-Unis, utilisant des technologies propriétaires de traitement des polymères.

Métrique manufacturière	Valeur
Installations de fabrication totale	7
Investissement annuel sur l'équipement de fabrication	45,7 millions de dollars
Capacité de production	350 millions de pieds linéaires par an

Investissement dans la recherche et le développement pour les technologies matérielles innovantes

Azek alloué 16,3 millions de dollars aux frais de recherche et de développement Au cours de l'exercice 2022, en se concentrant sur la science des matériaux et les technologies composites durables.

Métrique de R&D	Valeur
Dépenses annuelles de R&D	16,3 millions de dollars
Personnel de R&D	45 ingénieurs spécialisés
Demandes de brevet (2022)	7 nouvelles applications

Plate-forme de marketing numérique et de commerce électronique pour la distribution des produits

Les canaux de vente numériques d'Azek générés 187,2 millions de dollars de revenus en ligne Au cours de l'exercice 2022, représentant 22% du total des ventes d'entreprises.

Métrique de vente numérique	Valeur
Revenus en ligne	187,2 millions de dollars
Pourcentage des ventes totales	22%
Plates-formes de commerce électronique	4 canaux numériques actifs

Intégration de la réalité augmentée pour la visualisation des produits et l'expérience client

Azek a mis en œuvre une plate-forme de réalité augmentée en 2022, permettant Plus de 250 000 visualisations de produits virtuels pour les clients via des plateformes numériques.

AR Expérience métrique	Valeur
Visualisations de produits virtuels	250,000+
Année de lancement de la plate-forme AR	2022
Augmentation de l'engagement client	37% via des outils AR

The Azek Company Inc. (Azek) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations environnementales et aux normes du code du bâtiment

Azek est conforme aux réglementations suivantes sur l'environnement et le code du bâtiment:

Type de réglementation	Norme spécifique	Statut de conformité
Règlements de l'EPA	Loi sur la conservation des ressources et la récupération (RCRA)	Compliance complète
Codes du bâtiment	Code international du bâtiment (IBC)	Conformité certifiée
Norme environnementale	ISO 14001: 2015	Agréé

Protection de la propriété intellectuelle

Azek tient 17 brevets actifs lié à la technologie des matériaux composites en 2024.

Catégorie de brevet	Nombre de brevets	Durée de protection des brevets
Composition des matériaux	8	20 ans
Processus de fabrication	6	20 ans
Innovations de conception	3	15 ans

Considérations du passif et de la garantie des produits

Azek offre une couverture de garantie avec les spécifications suivantes:

• Garantie du produit résidentiel: Garantie limitée de 30 ans
• Garantie des produits commerciaux: Garantie limitée de 15 ans
• Couverture d'assurance responsabilité civile annuelle totale: 50 millions de dollars

Conflits de brevet potentiels

Catégorie de litige	Nombre de cas en cours	Dépenses juridiques estimées
Litige de brevet actif	2	1,2 million de dollars
Défis de brevet en instance	3	$750,000

The Azek Company Inc. (Azek) - Analyse du pilon: facteurs environnementaux

Engagement envers les pratiques de fabrication durables et l'utilisation des matériaux recyclés

Azek utilise des matériaux 100% recyclés dans son processus de fabrication. En 2023, la société a traité 186 millions de livres de matériaux recyclés, principalement des déchets plastiques post-consommateurs et post-industriels.

Type de matériau	Volume recyclé (lb)	Pourcentage de l'intrance totale
Plastique post-consommateur	123 millions	66.1%
Plastique post-industriel	63 millions	33.9%

Réduire l'empreinte carbone des processus de production et de transport

L'Azek a réduit ses émissions de carbone de 22% depuis 2019, avec une réduction de 35% d'ici 2025. Des améliorations de l'efficacité du transport ont entraîné une consommation de carburant de 14% en 2023.

Métrique d'émission de carbone	BASELINE 2019	2023 Statut actuel
Émissions totales de carbone (tonnes métriques)	87,500	68,250
Consommation de carburant de transport (gallons)	1,250,000	1,075,000

Développement de gammes de produits écologiques

Les gammes de produits écologiques d'Azek représentent 68% du total des offres de produits, en mettant l'accent sur les matériaux à faible émission et durables qui nécessitent un entretien minimal.

Gamme de produits	Certification environnementale	Part de marché
Terrasse azék	Ul Greenguard Gold	42%
Garniture azék	Certifié EPD	26%

Initiatives de l'économie circulaire

Azek a mis en œuvre un programme de recyclage complet avec un taux de récupération des matériaux actuel de 91%, détournant les déchets des décharges et soutenant les processus de fabrication en boucle fermée.

Initiative de recyclage	Volume annuel (LBS)	Taux de détournement des déchets
Recyclage des matériaux internes	62 millions	33.3%
Collection de matériaux externes	124 millions	66.7%

The AZEK Company Inc. (AZEK) - PESTLE Analysis: Social factors

Growing consumer preference for low-maintenance, long-lasting outdoor living products over traditional wood.

You can see a clear, permanent shift in consumer behavior away from traditional lumber, and this is a massive tailwind for The AZEK Company Inc. (AZEK). Honestly, people are tired of the annual sanding, staining, and splintering that comes with wood. They want their weekends back. So, they are voting with their wallets for low-maintenance, high-performance materials like composite and advanced polyvinyl chloride (PVC) decking.

This preference is directly translating into market share gains for AZEK's TimberTech products. Wood alternative demand is forecast to grow at a rate of 6.2% annually through 2025, while traditional wood decking is projected to see flat growth. The long-term value proposition is just too compelling: composite decking lasts 25-50 years compared to the typical 10-20 years for pressure-treated wood. Today, an estimated 70% of new decks use composites because of the lower long-term ownership costs and sustainability benefits.

Homeowners are willing to pay a premium for AZEK's sustainable, high-performance materials like TimberTech.

The market has matured past the point where initial cost is the only factor. Homeowners now view their outdoor space as a long-term investment, and they are defintely willing to pay a premium for superior performance and sustainability. AZEK's premium TimberTech AZEK line, which is made from advanced PVC, is a perfect example of this. It's the top tier for a reason.

Here's the quick math on the premium: an AZEK deck costs about 60% to 70% more than a traditional wood deck when considering the full installation. The material cost alone for the premium TimberTech AZEK line is typically between $11 and $13.50 per square foot, with the average installed cost ranging from $60 to $80 per square foot. What this estimate hides is the zero-maintenance cost over a 50-year lifespan, which is a huge psychological win for the consumer. Plus, AZEK's commitment to sustainability-with products made from up to approximately 85% recycled material-aligns perfectly with the growing environmentally conscious consumer base.

Aging US housing stock creates a massive, decades-long opportunity for exterior remodeling and replacement products.

The US housing stock is simply old and getting older, and that is a structural opportunity for AZEK's replacement-focused business model. The median age of owner-occupied homes in the U.S. climbed to 41 years in 2023, up from 31 years in 2005. Nearly half, or 48%, of all owner-occupied homes were built before 1980. This means millions of homes are hitting the age where core exterior components-like decks, trim, and siding-need replacement, not just repair.

The National Association of Home Builders (NAHB) is forecasting residential remodeling activity to post a 5% gain in 2025, which is a clear signal that this replacement cycle is accelerating. This is a multi-decade trend, not just a cyclical bounce. As homeowners choose to age in place or renovate instead of relocating due to high prices and low inventory, they are forced to replace worn-out materials, and AZEK is positioned perfectly to capture that demand with its long-lasting products.

US Housing Stock Age & Remodeling Opportunity (2025 Outlook)	Data Point	Significance for AZEK
Median Age of Owner-Occupied Homes (2023)	41 years	Indicates a massive, mature replacement market for exterior products.
Homes Built Before 1980	Approximately 48% of owner-occupied stock	Represents the core target for deck, trim, and siding replacement projects.
Forecasted Residential Remodeling Activity Gain (2025)	5% gain	Confirms market is poised for growth, driving demand for AZEK's products.

The shift to work-from-home has permanently increased investment in outdoor home spaces, driving demand.

The work-from-home (WFH) shift is a social factor that has fundamentally changed how people use their homes. When the office is just a few steps away, the backyard becomes the new extension of the living space. This trend is sticky: hours worked from home in 2023 were still about five times the pre-pandemic level, and over 32.6 million Americans are working remotely in 2025.

This has led to a sustained, high demand for what the industry calls fully programmed outdoor spaces. Homeowners aren't just building a simple deck; they are creating covered dining areas, outdoor kitchens, and entertainment zones. One in eight homeowners pursuing outdoor living projects are specifically looking to upgrade or add an outdoor kitchen, which involves bigger-ticket items and more material. This increased time spent at home translates directly into a higher willingness to invest in durable, beautiful products that make the outdoor space a true, low-maintenance sanctuary.

• 32.6 million Americans are working remotely in 2025, representing 22% of the workforce.
• Hours worked from home remain about five times the pre-pandemic level.
• Demand is high for specialized outdoor amenities like outdoor kitchens, covered dining, and louvred pergolas.

The AZEK Company Inc. (AZEK) - PESTLE Analysis: Technological factors

The AZEK Company Inc. (AZEK) maintains a strong competitive moat by pioneering advanced polymer technology, moving beyond traditional wood-plastic composites (WPCs) to fully synthetic materials. This focus on material science and digital integration, particularly with the 2025 product portfolio, sets a new performance and sustainability benchmark in the outdoor living market. The core takeaway is that AZEK's technology significantly reduces maintenance and extends product life, directly challenging the long-term cost of ownership for wood and first-generation composites.

Advanced Polymer Technology (Capped PVC)

AZEK's TimberTech Advanced PVC decking, which uses a proprietary capped polymer technology (Alloy Armour Technology®), is a key technological differentiator. Unlike standard wood-plastic composites (WPCs) that contain wood fibers in their core and are vulnerable to moisture and mold, Advanced PVC decking contains zero organic material. This synthetic composition makes it inherently resistant to moisture damage, mold, and mildew, which is a major performance upgrade.

The capped PVC material also delivers superior physical performance. It is engineered to be up to 30° cooler to the touch than many competitive composite products, a crucial factor for consumers in hot climates. Plus, the surface provides up to 40% better slip resistance compared to many competitive composite products, enhancing safety for pool-side or wet applications. This is a clear, measurable advantage over older materials.

Technological Advantage	AZEK Advanced PVC Decking	Traditional Wood-Plastic Composite (WPC)
Core Composition	100% Polymer (No Wood Fibers)	Recycled Wood Fibers and Plastics
Moisture/Mold Resistance	Superior, due to zero organic material	Vulnerable if cap is compromised
Cool-to-the-Touch	Up to 30° F cooler than many competitors	Retains more heat
Fade & Stain Warranty	50-Year Limited Warranty	Typically 25-Year Limited Warranty

New 2025 Product Launches and Recycled Content

The company is defintely accelerating its use of recycled material in core product lines, aligning its innovation with sustainability mandates. The 2025 product launches showcase this commitment, particularly in the Exteriors segment. The new TrimLogic exterior trim, which targets the sub-premium market, is a revolutionary product because it is made with up to 95% recycled PVC material. Here's the quick math: diverting that much waste from landfills into a structural building product is a significant step toward a circular economy.

The new Reliance Rail system, a premium vinyl railing platform also introduced in 2025, is crafted with a recycled PVC core and reinforced with an advanced PVC cap and aluminum for strength. Even the TimberTech Advanced PVC decking itself is made from up to 65% recycled material, demonstrating a company-wide shift in material sourcing and compounding technology.

Industry-Leading Warranty as a Technology Signal

The warranty offered on TimberTech Advanced PVC decking is a direct reflection of the underlying material technology's confidence. The product comes with a 50-Year Limited Fade & Stain Warranty and a Limited Lifetime Product Warranty. This 50-year coverage is a key competitive advantage, as it is often twice the length of the fade and stain warranties offered by most competitors in the composite decking space. It signals to the market that the capped polymer technology is expected to perform flawlessly for half a century, minimizing long-term risk for the homeowner and contractor.

Digital Tools for Integrated Outdoor Systems

AZEK is expanding its technological footprint beyond materials and into the 'smart home' space with its StruXure brand. The StruXure+ App, launched as part of the 2025 line of progressive outdoor solutions, centralizes control of integrated outdoor systems. This allows customers to manage multiple features of their Pergola X or Cabana X from a single, intuitive interface. This is a smart move to own the customer experience.

The App's key features allow for personalized scene settings, meaning a single tap can adjust an entire outdoor environment. The integrated systems controlled by the app include:

• Control StruXure Sound for immersive audio.
• Manage StruXure Heat for tailored seasonal comfort.
• Operate StruXure Screens for customizable privacy and shade.
• Adjust lighting and louver systems effortlessly.

The AZEK Company Inc. (AZEK) - PESTLE Analysis: Legal factors

Compliance with stringent US fire safety standards is key; TimberTech Advanced PVC has a top-rated Class A Flame Spread Rating.

For a building materials company, product safety compliance isn't just a legal hurdle; it's a massive competitive advantage, especially in fire-prone regions. The AZEK Company has decisively positioned its premium products to meet, and often exceed, the most stringent US fire safety standards, which is a smart legal risk mitigation strategy.

The company's TimberTech Advanced PVC Decking, specifically the Vintage and Landmark Collections, holds a Class A Flame Spread Rating. This is the best rating available, signifying the highest resistance to flame spread, which is a critical factor for homeowners and builders. Plus, these collections have received an Ignition Resistant designation from California's State Fire Marshal, certifying their suitability for the Wildland Urban Interface (WUI) zones, where local building codes are notoriously strict. This compliance is a clear differentiator against competitors with lower ratings, like Class B or C composites. It's a huge win for sales in high-risk areas.

Here's the quick math: securing a Class A rating and WUI compliance means AZEK can access the market of over 46 million homes across 70,000 U.S. communities identified as being at risk from wildfire impacts.

Regulatory risk tied to plastic and PVC material use could increase, though AZEK's high recycled content mitigates this.

The regulatory environment for plastic and polyvinyl chloride (PVC) materials, even in durable goods like decking and trim, is defintely getting tougher. States and municipalities are increasingly pushing for legislation to curb plastic waste and promote circular economy principles. This is a real legal and operational risk for any company heavily reliant on PVC.

The AZEK Company, however, has a strong legal defense and market advantage here due to its vertical integration and commitment to recycled content. They are the largest vertically integrated recycler of PVC in the United States. This allows them to control their supply chain and significantly reduce reliance on virgin materials, which are the primary target of new environmental regulations.

Consider the concrete numbers from the 2025 fiscal year data:

Metric	FY 2024 Performance	FY 2026 Goal	Legal/Regulatory Impact
Waste & Scrap Incorporated	Approximately 520 million pounds	1 billion pounds annually	Reduces exposure to virgin PVC material taxes/bans.
Recycled Content (Portfolio Average)	Up to 85%	N/A	Meets/Exceeds emerging 'green' procurement standards.
Recycled Content (New TrimLogic™)	Up to 95% recycled PVC	N/A	Sets industry benchmark, preempts future mandates on material composition.

This high-recycled content strategy is a proactive legal shield. It shifts the narrative from AZEK being a 'plastic' company to being a 'waste-to-product' company, which is a much stronger position in the face of tightening environmental laws.

The company must defintely navigate complex state-by-state building codes for its diverse product portfolio (decking, trim, pergolas).

The US construction market is not a single, unified regulatory landscape. It's a patchwork of state and local building codes, which presents a constant, high-cost compliance challenge for a national manufacturer like The AZEK Company.

While the International Residential Code (IRC) and International Building Code (IBC) provide a base, each state and local jurisdiction adopts and amends them on its own timeline. For example, some jurisdictions are still adopting the 2021 IRC, even though the latest update was released in 2024. This means AZEK must maintain a massive library of product-specific compliance reports for multiple code versions simultaneously across its diverse product lines: TimberTech Decking, AZEK Trim, Versatex Trim, and StruXure pergolas.

The key areas of code complexity that AZEK must constantly manage include:

• Fire Resistance Standards: Varies significantly, especially in WUI zones, requiring specific product listings for California Chapter 7A compliance.
• Structural Requirements: Compliance with load-bearing and wind uplift resistance ratings based on local wind zones and attachment methods.
• Material Acceptance: Ensuring their alternative materials (PVC, composites) are approved by local building officials under the latest IBC/IRC evaluation reports.

This decentralized regulatory system demands a significant internal investment in code research, testing, and documentation to ensure every product is legally sellable in every US market, all the time. This is a non-negotiable cost of doing business at scale.

The AZEK Company Inc. (AZEK) - PESTLE Analysis: Environmental factors

Goal to use 1 billion pounds of waste and scrap annually by the end of 2026, accelerating the circular economy model.

You can clearly see The AZEK Company's commitment to the circular economy (a system aimed at eliminating waste and the continual use of resources) in its raw material strategy. The company has set an ambitious goal to use 1 billion pounds of waste and scrap material annually in its manufacturing process by the end of 2026. This isn't just a marketing slogan; it's a massive operational shift.

To put this in perspective, in fiscal year 2024, the company used approximately 520 million pounds of otherwise landfill-bound waste and scrap to manufacture its products. That's a huge volume, but it also shows the scale of the climb still ahead to hit the 1 billion pound target in the next two years. Since fiscal 2019, AZEK has cumulatively diverted over 2.1 billion pounds of waste from landfills, which is defintely a strong track record of execution.

Here's the quick math on their recent progress:

Metric	Fiscal Year 2023	Fiscal Year 2024	Target (End of FY2026)
Annual Waste/Scrap Used	~420 million pounds	~520 million pounds	1 billion pounds
Progress from FY2023 to FY2024	N/A	~24% increase	N/A

Validated Science Based Targets initiative (SBTi) goal to reduce absolute Scope 1 and 2 GHG emissions by 42% by FY2030.

The company has taken a serious, science-backed approach to climate risk by having its near-term greenhouse gas (GHG) emission reduction targets validated by the Science Based Targets initiative (SBTi). The core goal is to reduce absolute Scope 1 and 2 (direct and purchased energy) GHG emissions by 42% by the end of fiscal year 2030, using a fiscal year 2021 baseline.

Also, AZEK is tackling its supply chain emissions (Scope 3), targeting a 63.8% reduction in Scope 3 GHG emissions from purchased goods and services per pound of raw material procured by fiscal year 2034. This focus on material procurement is smart, as it directly links their recycling strategy to their carbon reduction efforts. They have already achieved a 44% reduction in total carbon intensity (measured as metric tons of carbon dioxide equivalent per $1 million net sales) between fiscal 2019 and fiscal 2023. That's a significant drop in emissions relative to revenue growth.

Products contain up to 85% recycled material, reducing landfill waste and demand for virgin resources.

The product composition itself is a major environmental factor. AZEK's alternative decking and trim products are made with up to 85% recycled material, which is a key competitive differentiator from traditional wood or lower-grade composites. This high recycled content directly reduces the demand for virgin (new) raw resources, lowering the embedded energy and carbon footprint of the final product.

Their vertically integrated recycling capabilities in North America, particularly for polyvinyl chloride (PVC), allow them to efficiently process and consume hundreds of millions of pounds of waste annually. This closed-loop system is what makes their recycling efforts profitable, too.

• Products contain up to 85% recycled waste and scrap material.
• Nearly 100% of manufacturing scrap is re-used internally.
• Recycling programs are expanding, including the FULL-CIRCLE PVC Recycling program.

The long lifespan and low-maintenance nature of its products reduce the environmental impact of frequent replacement and chemical treatment.

The environmental benefit of AZEK's products extends far beyond the manufacturing floor-it's in the product's lifespan. Traditional wood decking typically requires chemical treatments, like staining or sealing, and has a much shorter useful life, often around 10 years for pine decking.

In contrast, AZEK's materials are engineered for durability, which means less waste over time. For example, TimberTech Advanced PVC decking often comes with a Lifetime Limited Warranty for residential use, and some collections offer a 50-year fade and stain warranty. This extended life means fewer resources are consumed for replacement, and the low-maintenance nature eliminates the need for environmentally harsh chemical sealants and stains. Their life cycle assessment (LCA) studies assume a 50-year lifetime for TimberTech Advanced PVC decking, a five-fold increase over pine, which offers a clear environmental advantage over the product's entire lifecycle.