jetsam
Minister of Fire
I am looking into making a heat shield up. It's amazing with so many houses having vinyl siding and no one is selling anything for this. Also all the mounting kits and brackets sold by chimney companies seem to have the same 2" to 2.5" clearances.
If you want easy, you could put a 4 large siding blocks behind the pipe, screw a couple strips of 1/4" Hardiebacker to the blocks, paint it all the siding color and call it a day. This would mostly hide the damaged siding without replacing it, too.