MASHINIi

Ferguson Plc.

FERG.LSE | Wholesale of construction materials, hardware, plumbing and heating equipment and supplies

Ferguson plc is a leading distributor of plumbing and heating products, and building materials. The company operates primarily in North America, where it is the largest distributor in its sector. Ferguson supplies a wide range of products, including plumbing supplies, pipes, valves, fittings, heatin...Show More

Ethical Profile

Mixed.

Ferguson Plc's ethical profile is mixed, facing scrutiny over labor practices including a $2.25 million settlement for a wage and hour violation in 2012, among $3.2M+ in penalties since 2000. Reports suggest only about 50% of its workforce earns a living wage, targeting 75% in two years. Environmentally, Ferguson reduced Scope 1 and 2 greenhouse gas emissions intensity by 33% since 2019/2020, generating over $3 billion from sustainable products. However, its distribution model faces challenges addressing its broader carbon footprint and packaging waste. Positively, Ferguson reduced its Total Recordable Incident Rate by 14% and Lost Time Rate by 21% in FY2023, demonstrating a commitment to safety. Over 1,500 suppliers have contractually committed to abstaining from child, forced, or involuntary labor.

Value Scores

Better Health for All10
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect20
-100100
Fair Trade & Ethical Sourcing-30
-100100
Honest & Fair Business-30
-100100
Kind to Animals0
-100100
No War, No Weapons0
-100100
Planet-Friendly Business-30
-100100
Respect for Cultures & Communities20
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products-40
-100100

Better Health for All

10

Ferguson's core products and services, including water, sanitation, and HVAC solutions, provide substantial health benefits. The company actively works on water infrastructure upgrades

1
, pollution prevention (e.g., nutrient filtration capturing up to 95% phosphorus and 80% nitrogen, wetland systems)
2
, and energy efficiency in HVAC (e.g., 30% average energy reduction from mechanical room audits
3
, 80% energy reduction from booster pump upgrades
4
). Ferguson has achieved a 50% reduction in Scope 1 and 2 GHG emissions from a 2019/2020 baseline by FY2024
5
and sourced 95% renewable electricity in FY2025
6
. It has also saved over 8 billion gallons of water through WaterSense products
7
. The company engages in partnerships to provide water, sanitation, and housing access to underserved communities
8
, with measurable impacts such as 840 water filling stations
9
and impacting nearly 500 households in Appalachia
10
. Ferguson provides Safety Data Sheets (SDS) for products
11
, offers PFAS guidance
12
, and maintains robust data privacy and ethics frameworks
13
, including compliance with CCPA, CPRA, PIPEDA, and GDPR
14
, and an ISO/IEC 27001:2022 standard
15
. The company's products do not have direct safety implications for physical or mental health, nor does it hold healthcare-related patents, produce food, or conduct clinical trials.

Fair Money & Economic Opportunity

0

Ferguson Plc operates as a distributor of plumbing and heating products, not a financial institution. As such, the company does not offer lending, insurance, or deposit services to consumers, nor does it provide consumer credit products or manage customer finance data. Therefore, KPIs related to these financial services, such as underserved client share, pricing fairness, exploitative fee exposure, fair lending compliance, wealth building outcomes, financial literacy initiatives, debt burden ratio, geographic inclusion for financial access points, and product simplicity for financial products, are not applicable to its core business model. The company's core business lies outside finance, and it does not operate financial service access points or provide debt products to consumers. While Ferguson engages in community support and philanthropy, the articles do not provide the percentage of annual pre-tax profit reinvested in community finance, leading to the omission of that KPI.

Fair Pay & Worker Respect

20

Ferguson's voluntary employee turnover rate was 5%, derived from a 95% employee retention rate.

1
The company's Total Recordable Incident Rate (TRIR) was 1.57 in FY2024, representing a 13% improvement from FY2023.
2
Associate engagement was 55% in FY2023.
3

Fair Trade & Ethical Sourcing

-30

Ferguson reported zero modern slavery or human trafficking incidents at any company location or involving screened suppliers during fiscal years 2023 and 2025.

1
The company also does not source products from the U.S. Department of Labor’s List of Goods Produced by Child Labor or Forced Labor, and proactive risk assessments are ongoing, including monthly screening of new and existing higher-risk suppliers.
2
Over 1,500 suppliers, representing approximately 21.4% of Ferguson's 7,000 suppliers in FY25, have contractually pledged to abstain from child, forced, or involuntary labor.
3
Higher-risk suppliers are asked to sign the Supplier Code of Conduct or incorporate its clauses into their supply contracts.
4

Honest & Fair Business

-30

Ferguson has a Group Whistleblower Policy and a Speak Up! hotline.

1
The company also maintains comprehensive anti-fraud and anti-bribery policies, which are monitored by its Legal Compliance and Internal Audit teams.
2
The Audit Committee receives regular reports on non-compliance issues related to these policies.
3

Kind to Animals

0

Ferguson Plc's core business as a distributor of plumbing, heating, and building materials does not directly involve animal welfare concerns.

1
The company has no specific involvement in animal testing, animal husbandry, or the sourcing of animal-derived products.
2
While environmental initiatives like solar arrays, wind energy, and water quality improvements are mentioned, there is no evidence of measurable biodiversity impact, species recovery, or habitat restoration metrics.
3
Supplier audits mentioned relate to labor practices, not animal welfare.
4
Therefore, all KPIs related to animal welfare, testing, sourcing, and conservation are not applicable to Ferguson's operations.
5

No War, No Weapons

0

Ferguson plc had minor contracts with the U.S. Department of Defense totaling approximately $31,562 for non-lethal products between 2002 and 2006.

1
In May 2023, a subsidiary secured a contract with BAE Systems for steel components, not classified as weapons, for the HMS Belfast frigate.
2
The company states it has no direct involvement in arms or military goods.
3
Ferguson uses AI for civilian applications such as leak detection and preventative maintenance in water management, with no military use mentioned.
4
Its Supplier Code of Conduct prohibits child labor and forced labor, and requires compliance with the Modern Slavery Act.
5
There is no evidence of exposure to controversial weapons.
6

Planet-Friendly Business

-30

In FY2025, 95% of Ferguson's electricity consumption across the U.S. and Canada was matched by renewable electricity generation.

1
The company engaged suppliers representing 65% of its direct procurement spend in FY2025 through CDP's Supply Chain program.
2
Ferguson's disclosures align with TCFD recommendations, and climate-related risks and opportunities are considered and embedded in strategy.
3
Climate scenario analysis was conducted in FY23, utilizing IEA Announced Pledges, IEA Net Zero Emissions by 2050, IPCC SSP1-2.6, and IPCC SSP 5-8.5 scenarios.
4
The company recorded one environmental violation in 2023.
5
Biodiversity efforts include planting 1,955 trees
6
and implementing specific water quality projects, such as introducing vegetated floating wetland systems in Sloan’s Lake, Denver, and installing nutrient separating baffle boxes in Florida.
7

Respect for Cultures & Communities

20

Ferguson engages over 320 certified small and diverse-owned businesses through its Distributor Alliance Program.

1
The company has created a dedicated Indigenous commemorative site at the Ferguson Forest Centre Arboretum to recognize the culture, traditions, and history of the Algonquin territory, with Indigenous residents involved in its design.
2
No cultural appropriation incidents have been reported. Additionally, Ferguson has at least one formal partnership with Indigenous residents of North Grenville.
3

Safe & Smart Tech

0

Ferguson provides annual phishing training to all associates who are issued a Company device.

1
Additionally, its annual Code of Conduct training often includes information technology subjects such as the protection of company and personal information, and identifying and reporting cybersecurity incidents.
2
However, the articles do not provide specific data on the measured effectiveness of this training or completion rates, which are required for higher positive scores.

Zero Waste & Sustainable Products

-40

Ferguson Containers utilizes corrugated packaging with approximately 70% recycled content.

1
The company implements waste reduction initiatives including donating 1.5 million pounds of excess inventory in FY2025
2
and achieving a 44% decrease in product damage rates due to improved packaging.
3
Hazardous waste management involves a dedicated team and specific training for associates on safe storage, handling, and disposal.
4
Waste and carbon data are audited annually by a third party.
5
Furthermore, Ferguson's Supplier Code of Conduct outlines expectations for environmental compliance, and the company engaged suppliers representing 65% of its procurement spend in FY2025 through CDP for sustainability performance disclosure.
6

Own Ferguson Plc?

Upload your portfolio and see how all your holdings score across 11 ethical dimensions.

Audit My Portfolio

AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.