Griffon Corporation (GFF) — ESG & Values Scores

Environment story

Griffon demonstrates weak environmental governance with undisclosed Scope 1, 2, and 3 emissions, no disclosed net-zero target date, and significant greenwashing risks. The company faces material supply-chain climate risks, particularly from China sourcing (38% of CPP finished goods) and tariff-driven operations. Hunter Fan impairment signals weak ESG integration. No verified decarbonization infrastructure investments identified. Environmental score capped at 55 due to likely >70% supply-chain emission footprint without explicit disclosure or mitigation commitments.

Criticisms on file

No disclosed Scope 1, 2, or 3 emissions; no net-zero target year communicated.
Source: GFF 10-K (2025), Risk Factors and MD&A; absence of environmental/ESG disclosures or sustainability report citations.
Tariff-driven supply-chain disruptions creating inventory surges and logistics inefficiencies; tariffs imposed January 2025 under 'America First Trade Policy' disrupt historical sourcing and increase compliance costs.
Source: GFF 10-K (2025), Risk Factors section: 'CPP is subject to risks from sourcing from international locations, especially China'; 'America First Trade Policy' tariffs noted as ongoing disruption.
38% of CPP finished goods sourced from China; global sourcing expansion increases reliance on international suppliers. Uyghur Forced Labor Prevention Act (UFLPA) compliance risk: 6,900+ shipments targeted by CBP in Oct 2024–Sept 2025 vs. 4,200 prior year.
Source: GFF 10-K (2025), Risk Factors: 'CPP is subject to risks from sourcing from international locations' and 'UFLPA' section detailing compliance obligations and detention risks.
Hunter Fan $243.6M goodwill and indefinite-lived intangible impairment (Q3 FY2025) driven by weak consumer demand and tariff disruption; signals weak product innovation and climate-resilience strategy.
Source: GFF 10-K (2025), MD&A: 'Hunter Fan impairment charges of $136,612 (goodwill) and $107,000 (trademark)' due to 'weak consumer demand coupled with impact of increased tariffs.'
Snow-tool product revenue declining due to reduced snowfall linked to climate change; company acknowledges 'average snowfall levels in the United States and Canada have decreased and are expected to continue to decrease.'
Source: GFF 10-K (2025), Risk Factors: 'As global temperatures have warmed as a result of climate change, average snowfall levels...have decreased and are expected to continue to decrease.'

Disclosed initiatives

Global Sourcing Expansion (CPP)

Shift of long-handled tools, material handling, and wood storage manufacturing to lower-cost international suppliers; completed September 2024. Includes diversification away from China through suppliers in Vietnam, Thailand, Malaysia and other countries.

Likely increases Scope 3 supply-chain emissions via longer logistics chains and tariff-driven inventory surges; offsets any potential localized emission reductions.
Pope Acquisition (Australia)

July 2024 acquisition of Australian residential watering-products business for AUD 21.8M; seventh Australian acquisition since 2013.

Expands product footprint in water-dependent category; no climate adaptation or water-efficiency strategy disclosed.

Social story

Griffon demonstrates mixed social performance. CEO-to-median-worker pay ratio is undisclosed (−15 points applied conservatively). No evidence of active union suppression or major strikes in past 24 months. Leadership diversity metrics are undisclosed; no formal DEI program, supplier-diversity initiatives, or civil-rights audits identified in filings. Supply-chain human-rights risks elevated: 38% of CPP finished goods from China; UFLPA enforcement targeting CPP shipments for potential forced-labor violations. Hunter Fan pension termination in FY2025 may signal severance/retirement-benefit risks. Overall social score of 75 reflects absence of documented egregious violations but weak transparency and proactive commitment.

Criticisms on file

CEO-to-median-worker pay ratio not disclosed in 10-K filing; unable to assess executive compensation equity.
Source: GFF 10-K (2025); no executive compensation section or Dodd-Frank pay-ratio disclosure provided.
Leadership diversity (gender, race/ethnicity) metrics undisclosed; no formal DEI program, supplier-diversity program, or civil-rights audit identified.
Source: GFF 10-K (2025); no diversity, equity, or inclusion disclosures in SEC filings or referenced sustainability report.
UFLPA supply-chain human-rights risk: 38% of CPP finished goods sourced from China; 6,900+ CBP shipment inspections targeting forced-labor concerns Oct 2024–Sept 2025. Company states 'we cannot be certain that our products will not be targeted or that our shipments will not be detained.'
Source: GFF 10-K (2025), Risk Factors: 'UFLPA' section; MD&A noting CPP's expanded global sourcing and increased China reliance.
Global sourcing expansion to China and Southeast Asia (Vietnam, Thailand, Malaysia) increases exposure to forced-labor, child-labor, and wage-theft risks in higher-risk geographies; no comprehensive modern-slavery statement or human-rights audit disclosed.
Source: GFF 10-K (2025), Risk Factors: 'CPP is subject to risks from sourcing from international locations, especially China' and tariff/sourcing-diversification discussion.

Disclosed initiatives

Hunter Fan Pension Plan Termination

Termination of defined-benefit pension plan; establishment of retiree medical plan with non-cash charge of $1,016M in FY2025 and additional $5,362M charge expected over first 10 months of FY2026.

Reduces long-term retirement-benefit obligations for company but may increase retiree out-of-pocket costs; signal of cost-containment priority over worker security.
Share Repurchase Program

1,897,182 shares repurchased in FY2025 for $134.7M (avg. $70.99/share). Board authorized $400M additional repurchase authorization in Nov 2024. Cumulative $400M repurchase authorization remains as of Sept 30, 2025.

Capital allocation to shareholders; no disclosed correlation with worker wage growth or benefit enhancements.

Governance story

Griffon exhibits moderate governance weaknesses. Board independence percentage is undisclosed; no dual-class share structure identified (score: +0). Lobbying expenditures not disclosed; no evidence of active climate-deregulation or consumer-protection rollback campaigns identified in 10-K. No material active antitrust, consumer-safety, or financial-fraud proceedings disclosed. However, activist-shareholder risk is material: 2021 activist campaign referenced; 2023 proxy settlement with shareholder slate of nominees cost $2.7M. No evidence of suing shareholder groups to block climate proposals. Governance score of 70 reflects absence of egregious control structures or regulatory sanctions, but weak board-transparency disclosures and activist-campaign costs.

Criticisms on file

Board independence percentage undisclosed; no transparency on board composition, independence standards, or committee structure.
Source: GFF 10-K (2025); no board-composition or governance section provided.
Activist-shareholder campaign initiated in 2021; 2023 proxy settlement with shareholder slate of nominees cost $2.7M. Ongoing activist risk acknowledged in Risk Factors.
Source: GFF 10-K (2025), Risk Factors: 'Actions taken by activist shareholders could be disruptive and costly'; MD&A referencing 2023 proxy expense settlement.
Lobbying expenditures and PAC contributions not disclosed; unable to assess alignment with climate regulation or consumer-protection policy positions.
Source: GFF 10-K (2025); no lobbying-expenditure or political-contribution disclosures provided.
Authorized but unissued preferred stock: Company authorized 3,000,000 shares of preferred stock with blank-check authority ('fix the rights, preferences, privileges and restrictions') without stockholder approval; potential for shareholder dilution or anti-takeover measures.
Source: GFF 10-K (2025), Risk Factors: 'Griffon has the ability to issue additional equity securities' section detailing preferred-stock authorization.

Disclosed initiatives

Board Shareholder Engagement

MD&A states: 'Board of Directors and management team strive to maintain constructive, ongoing communications with all shareholders who wish to speak with us, including activist shareholders, and welcomes their views and opinions with the goal of working together constructively.'

Demonstrates openness to dialogue; does not eliminate activist-campaign disruption risk or cost.
Activist Settlement (2023)

2023 proxy settlement with shareholder who submitted slate of director nominees; proxy expenses of $2.7M recorded in FY2023 SG&A.

Resolved contested director election; signals ongoing activist pressure and governance instability risk.
Credit Agreement Covenant Compliance

Company maintained compliance with all debt covenants as of Sept 30, 2025. Net Debt to EBITDA leverage ratio: 2.4x (within limits).

Stable debt structure; no imminent refinancing risk until 2028 Senior Notes maturity.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Griffon Corporation. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Griffon Corporation in the app for interactive charts and portfolio building.

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