883

Million Dollars

in 2020 net sales

14%

CAGR

in sales revenue growth since 2016

18

out of the 20

largest US homebuilding companies are among PGT’s customers

View Our Analysis

The Path to Drawdown: High-Performance Glass

Construction and buildings generate 38% of the total global CO2 emissions and 35% of total energy use. Much of this energy-use in buildings is the result of heating and air-conditioning, lighting, information and communications systems, security and access systems, fire alarms, elevators, appliances, and (indirectly) through plumbing.

In most buildings, some of this energy used in heating and cooling is wasted through windows. Windows, even when closed, are very inefficient compared to insulated walls at keeping room temperature in and outside temperature out - by a factor of ten or more.

High-performance glass solves this problem by replacing conventional plain glass. High-performance glass uses any of several technologies that can reduce heat flow through glass, including multiple layers, low-emissivity glass, tinted glass, and vacuum glazing.

High-performance glass is already widely adopted in wealthy countries. In the rest of the world, a faster and wider installation of high-performance glass can help reduce a substantial amount of GHG emissions by 2050:

  • <::marker> In 2018, 5 billion square meters of high-performance glass was installed in residential buildings, and 130 million sq. meters in commercial buildings
  • <::marker> By 2050, 13.7 billion sq meters should be installed in residential buildings and 7.5 billion sq meters in commercial buildings

If this scale can be achieved by 2050, high-performance glass can avoid 12.6 gigatons of emissions and save $3.9 trillion in energy costs over building lifetimes for an installation cost of $10.8 trillion.

What We Want to See Improve

Track GHG Emissions

As of now, PGT doesn’t disclose any sustainability metrics or initiatives. We would like this to change. Investors are increasingly worrying about the carbon footprint of companies, and PGT should track and report their direct and indirect emissions, as well as the amount of emissions they are helping to avoid through their products.

Set Emissions Reduction Targets

Once they start disclosing their emissions, we want PGT to set near-term targets for reducing those emissions. The ultimate goal is to become a zero-emissions company.

Nudge Suppliers to Reduce Emissions

Likewise, we want PGT to nudge their suppliers to reduce their own emissions. PGT has a relatively concentrated supplier base (three glass suppliers accounted for ~43% of PGT’s material purchases in 2020 (p. 9). Emissions reductions by these suppliers would lead to a big drop in PGT’s scope 3 emissions.

Related High-Performance Glass Stocks in the Climate Index

View All Climate Index Stocks →

Allocated Company Description

0.09%

PGT, Inc. (PGTI)

PGT makes impact-resistant windows and doors that can withstand the toughest weather conditions and improve building energy efficiency

0.09%

Tecnoglass (TGLS)

Tecnoglass makes architectural glass that saves energy from heating and cooling. Building energy efficiency is key for lowering emissions

0.07%

Apogee Enterprises (APOG)

Apogee makes custom high-performance glass that maximizes building insulation. High-performance windows are key in cutting emissions related to buildings

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