Recycled Material

40-80% of IBP’s fiberglass insulation is made of recycled material and 75-85% of cellulose insulation is made from recycled waste paper



in revenue growth, 2014 - 2020


Million Dollar

in backlog at end of 2020, which is potential future revenue

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The Path to Drawdown: Insulation

Buildings and construction account for about 38% of the total global CO2 emissions and 35% of total energy use. Much of this energy is used to heat and cool a home. A sizable amount of that energy (25-60%) is wasted through air infiltration, or heat escaping from warmer areas to cooler areas.

Better insulation of buildings can prevent that heat from escaping. Insulation is the use of high levels of improved materials in building envelopes that resist heat flow and regulate indoor temperatures. Ideally, insulation is continuous and covers all sides of a building, from the bottom floor, exterior walls, to the roof. Sealing gaps and cracks is also critical to a more thermal resistant building envelope.

Insulation is one of the most practical and cheapest ways to make buildings more energy efficient, both in new construction and through retrofitting older buildings that are often not well insulated. This also means lower utility bills, keeping out moisture, improving air quality and avoiding greenhouse gas emissions associated with energy use.

Project Drawdown estimates that, in 2018, 30% of buildings worldwide were insulated. If existing residential and commercial buildings in temperate and tropical countries can install insulation (with low carbon materials) at a rate of 1.6 - 2% every year, between 17 - 19 gigatons of GHG emissions can be avoided by 2050.

What We Want to See Improve

Disclose GHG Emissions

We appreciate IBP’s large role in enhancing energy efficiency in residential buildings through their insulation. But simply continuing to provide insulation is not enough to contribute to the fight against climate change. As of now, IBP doesn’t track and report their GHG emissions or even the amount of emissions they’ve helped avoid through their insulation sales. We urge IBP to disclose their direct and indirect emissions in an annual sustainability report.

Switch Emissions Reduction Targets

There is no evidence that IBP is making an effort at becoming a more sustainable company. IBP should set clear and ambiguous targets for reducing their GHG emissions by the end of this decade, and outline the steps they will take to achieve these goals.

Enhance Supplier Transparency

IBP’s three largest suppliers in aggregate accounted for ~37% of all material purchases in 2020 (p. 7). While they have a well-diversified supplier base and therefore have been resilient to supply chain shocks, we want to know the carbon footprint of their major suppliers. This is particularly because the manufacturing of insulation can be a source of substantial amount of GHG emissions.

Related Insulation Stocks in the Climate Index

View All Climate Index Stocks →

Allocated Company Description


Owens Corning (OC)

OC makes insulation, roofing, and fiberglass material for residential, commercial and industrial buildings. Building energy efficiency can reduce emissions


Topbuild (BLD)

Topbuild installs insulation of various kinds that prevent heat-loss from buildings. Building energy efficiency is key to reducing emissions


Beacon Roofing Supply, Inc. (BECN)

Beacon distributes roofing material, insulation, and other products for the construction market. Building energy efficiency is key to cutting emissions


Installed Building Products (IBP)

IBP installs various kinds of insulation in residential buildings. Building energy efficiency is key to reducing emissions


ReTo Eco-Solutions, Inc. (RETO)

ReTo Eco-Solutions makes eco-friendly construction materials like bricks, pavers and tiles made from reclaimed and recycled materials

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