BEYOND TODAY SHAPING TOMORROW 2020 Owens Corning Sustainability Report OVERVIEW Introduction 3 Message from Our CEO and CSO 4 TABLE OF About Owens Corning 6 COVID-19 and Owens Corning 11 Our Aspirations 12 CONTENTS Summary & Highlights 15 OUR APPROACH Stakeholder Management & Material Issues 38 UN Sustainable Development Goals Alignment 45 Board Leadership 54 Risk Management 61 Digital Transformation 70 Compliance and Beyond 76 Total Productive Maintenance 83 Tax Strategy 89 EXPANDING OUR PRODUCT HANDPRINT 90 Circular Economy 91 Product Innovation & Stewardship 101 Sustainable Growth 115 Supply Chain Sustainability 125 REDUCING OUR ENVIRONMENTAL FOOTPRINT 141 Energy Efficiency & Sourcing Renewable Energy 142 Combating Climate Change 151 Air Quality Management 159 Responsible Water Sourcing & Consumption 168 Waste Management 179 Protecting Biodiversity 189 EXPANDING OUR SOCIAL HANDPRINT 198 Community Engagement 199 Living Safely 213 Health & Wellness 230 Employee Experience 243 Inclusion & Diversity 259 Human Rights & Ethics 270 APPENDICES 284 A. About the Report 285 B. Workforce Data 290 C. Environmental Data 302 D. General Disclosures 323 E. UN Global Compact Communication on Progress 333 F. Assurance Statements 340 G. TCFD Climate Risk 343 H. TCFD Index 354 Photo submitted by: I. SASB Index 356 Micki Vanderpool | Rockford, Illinois, U.S. Northern lights in Yellowknife, Northwest J. GRI Index 357 Territories of Canada. K. Photographer Contributions 368 INTRODUCTION
Thank you for your interest in Owens Our sustainability goals are built on This report features independently Corning’s 15th annual sustainability three key pillars: verified data, as well as descriptions report. This year’s theme, Beyond ■ Expanding our product handprint. of all the ways our commitment to Today, Shaping Tomorrow, reflects We endeavor to increase the sustainability manifests itself. our ongoing commitment to positive impacts our products have Narrative information is included in the sustainability, even in the face of the on the world. chapters, while additional supporting global pandemic. While COVID-19 has data is located in the appendices changed virtually everything about our ■ Reducing our environmental at the end of the report. Also in the day-to-day lives — and dramatically footprint. We seek to limit the appendices, we have included indices impacted our workplaces — our negative impact our operations reflecting information we’ve included people never lost sight of our ideals have on the environment. in response to the GRI standards, and aspirations. Throughout the year, ■ Increasing our social handprint. the United Nations Global Compacts we continued to look past our current We work to ensure that people are Advanced-Level Communication on situation and seek out ways to create safe and live with health, happiness, Progress, the Task Force on Climate- a better world for ourselves and for and human dignity. related Financial Disclosures (TCFD) future generations. By ensuring that these three pillars and the Sustainability Accounting This year’s report addresses our guide our operations and policies, we Standards Board (SASB) reporting performance on our 2020 sustainability believe we can achieve our purpose, in requirements. goals and offers insights into our which our people and products make We hope you find this report to be a progress toward our ambitious slate the world a better place. valuable resource as you explore the of 2030 goals. The accomplishments many ways we make sustainability we chronicle here are a testament This report is structured around 16 central to our operations. As a to the dedication of our people, their Sustainability Materiality Topics, which company that has long been at the ingenuity, and their resilience in the our stakeholders have indicated are forefront of our industry, we recognize face of truly unprecedented times. In most meaningful to them, and we have the need to demonstrate true this report, we also hear firsthand from arranged the topics based on their leadership in corporate responsibility, several of our employees in a feature relevance to our three pillars. We have and we hope that our examples will called “Speaking of Sustainability.” On prepared this report in accordance inspire you to join us on this journey these pages, our people share their with the Global Reporting Initiatives toward a brighter future. passion for environmental and social (GRI): Comprehensive option. This issues, and they provide a greater is the more extensive option for sense of the depth of our company’s GRI reporting, requiring additional commitment to serving as a net- disclosures related to our strategy, positive force in the world. ethics and integrity, and governance. Photo submitted by: Teresa Flores | Toledo, Ohio, U.S. Owens Corning World Headquarters in Toledo, Ohio, U.S.
2020 Owens Corning Sustainability Report | Overview | Introduction | 3 At Owens Corning, our sustainability aspirations are a direct expression of our purpose: our people and products make the MESSAGE world a better place. In 2020, as people faced multiple crises and challenges across the spectrum of social, environmental, and economic matters everywhere in the world, our commitments FROM OUR to helping people thrive took on additional importance. The connections between human health and well-being and the environment have seldom been clearer. CEO AND CSO Nearly two decades ago, Owens Corning began its sustainability journey. Over the years, our goals have evolved well beyond environmental sustainability. We have set ambitious goals for 2030 that drive toward our aspiration to be a net-positive company. To do this, the positive impacts of our people and products — our handprint — must exceed the footprint of our operations. We’re committed to doubling our products’ handprint and halving our environmental footprint, while also working to eliminate injuries and lifestyle-induced diseases, to advance inclusion and diversity, and to make a positive difference in the communities where we work and live.
Like our global communities, Owens Corning faced unprecedented challenges in 2020. The COVID-19 pandemic required flexibility, innovation, and resolve in our operations and interactions – with our colleagues, our customers, and our suppliers. The urgent need to address racial and social inequities intensified a critical conversation we’ve been having about inclusion and diversity at work and beyond. Both these developments led to adjustments in our approach to effective outreach and volunteerism.
Our long-term goals helped us navigate these challenges. Our operations and products have been deemed essential across the U.S. and other global locations during the pandemic, and our employees were able to continue their efforts to achieve our aspirations. Our focus on personal well-being and employees caring for each other, which has guided us for years, Photo: Brian Chambers (left) and Frank O’Brien-Bernini (right) was a critical factor in successfully managing through the via Microsoft Teams. circumstances of 2020.
2020 Owens Corning Sustainability Report | Overview | Message from Our CEO and CSO | 4 This, our fifteenth annual sustainability report, documents our results as we work toward achieving our goals. As 2020 was the target year for our previous ten-year goals, we are pleased to report our progress in these pages.
We are particularly proud of our progress on climate action. We have reduced absolute greenhouse gas (GHG) emissions from our operations (Scope 1 and 2) by 60% since our peak year, despite adding several material acquisitions along the way. We are committed to further cut these emissions in half with our Science Based Target of -50% for 2030, in line with the Intergovernmental Panel on Climate Change’s pathway to limit global warming to 1.5° C maximum above pre-industrial levels. This will result in 2030 absolute Scope 1 and 2 GHG emissions being 75% below our peak.
Concurrently, we are committed to a 30% reduction up and down our value chain (Scope 3). We are proud to be among the companies heeding the call for greater urgency and impact, continuing to use the latest climate science in setting targets for greenhouse gas emissions reductions, and measuring and reporting our progress in the science-led decarbonization of our company. As we, and other great companies around the world, look to imagine a decarbonized future, we are energized by all levers yet to be pulled on the path to carbon neutrality, and look forward to a global consensus definition of carbon neutrality for companies (currently under development).
In addition to detailing the results from our previous ten-year goals, this report includes discussion of our progress against our 2030 goals, which measure improvements compared to the baseline year of 2018. Some of these represent the next milestone in a journey that began years ago — like reducing greenhouse gas emissions and our march to zero injuries — but there are new ones as well that will guide our work to expand our product handprint, and to expand our social handprint. All our sustainability aspirations push us to do what the world needs us to do, based on the scientific consensus, to make the world better place.
As we reflect on our journey and our impact, there are many things to be proud of, and even more ahead to challenge and excite us. What began with a focus on footprint reduction quickly expanded to designing and manufacturing products with differentiated sustainability attributes. Since then, we have collaborated with customers and suppliers for even greater impact, and expanded our scope to include safety, wellness, community engagement, inclusion and diversity, and most recently, embodied carbon and circular economy.
We are proud of the way our 19,000 colleagues around the world have worked together to fulfill our commitments to our stakeholders. In this report, we are pleased to share examples of their dedication and commitment, as well as our data and results. The external recognition we have received for our sustainability commitments and results — including earning the #1 spot on the 100 Corporate Best Citizens list from 3BL Media for the second year in a row, Industry Leader from DJSI for the 8th year, and CDP A List for both Climate and Water — is an indication that we are on the right path. Such accolades are an honor and acknowledge the work we’ve done, but they also spur us to do more. As we look ahead, we know that we must go beyond today’s goals and results. We must commit our energy and resources to shaping the future — to making the world a better place for the generations that follow.
We invite you to learn more about our work, our results, and our aspirations through this report and our website. We’ve benefitted from active collaboration and support from many of our stakeholders. The future that we are committed to building goes well beyond our company, and we are grateful that so many people have chosen to join us in this work.
Brian Chambers Frank O'Brien-Bernini Chairman and Chief Executive Officer Senior Vice President and Chief Sustainability Officer
2020 Owens Corning Sustainability Report | Overview | Message from Our CEO and CSO | 5 ABOUT OWENS CORNING
Owens Corning is a global building innovative products and solutions innovative technologies to deliver and industrial materials leader that that deliver a material difference to its substantial free cash flow and manufactures and delivers a broad customers and, ultimately, make the sustainable shareholder value. The range of high-quality insulation, roofing, world a better place. business is global in scope, with and fiberglass composite materials. operations in 33 countries, and human Owens Corning is made up of three Our insulation products conserve in scale, with approximately 19,000 integrated businesses — Insulation, energy and improve acoustics, fire employees and long-standing, local Roofing, and Composites — that resistance, and air quality in the spaces relationships with its customers leverage commercial strength, material where people live, work, and play. Our and communities. Based in Toledo, science innovation, manufacturing roofing products and systems protect Ohio, U.S., Owens Corning posted technologies, and a global footprint homes and commercial buildings while 2020 net sales of $7.1 billion. It has and scale, as well as safety and enhancing curb appeal. Our fiberglass been a Fortune 500® company for 66 sustainability expertise across the composites make thousands of consecutive years. enterprise. We aim to capitalize on products lighter, stronger, and more our market-leading positions and durable. In short, the company provides
We have manufacturing and research and development facilities around the globe:
Sweden Finland Russia
Canada United Kingdom Lithuania Netherlands Belgium Poland Czech Republic France Italy United States Spain China South Korea
Mexico India
Singapore
Brazil
Owens Corning is a publicly traded company on the New York Stock Exchange. As of February 16, 2021, beneficial ownership includes: Blackrock, Inc. (11.17%), The Vanguard Group (9.79%), and Boston Partners (7.28%).
2020 Owens Corning Sustainability Report | Overview | About Owens Corning | 6 THE OWENS CORNING STORY
OUR MISSION 2020 Revenue by Segment We aspire to build market-leading businesses; global in scope – human in scale.
OUR PURPOSE Our people and products make the world a better place. Composites 27% Insulation 36% OUR COMPANY VALUES Roofing 37%
Living Safely
Winning with Customers
Leading in Quality 2020 Revenue by Region
Expanding Our Impact Through Sustainability United States 67% Europe 16%
Turning Asia Pacific 9% Knowledge Canada and Other 7% into Value
Striving to Be Better, Every Day
2020 Owens Corning Sustainability Report | Overview | About Owens Corning | 7 The company has three OUR reporting segments: BUSINESS Composites, Insulation, and Roofing.
Composites
Our Composites business enables the manufacture of parts and equipment that are lighter, stronger and more durable. Our glass fiber and downstream products such as fabrics, Our products in the residential channel nonwovens, and other specialized include thermal and acoustical batts, products can be found in more than loosefill insulation, and foam sheathing 40,000 end-use applications. and accessories, and are sold under well-recognized brand names and We primarily serve five market trademarks such as Owens Corning® segments: building and construction, PINK® Fiberglas™ Insulation. Our power and energy, industrial, products in the commercial and transportation, and consumer synthetic packaging materials, and industrial channel include glass fiber products. Examples of end-use oxidized asphalt. pipe insulation, energy efficient flexible applications include pipe, roofing duct media, bonded and granulated We sell shingles and roofing shingles, ladders, sporting goods, mineral wool insulation, cellular glass components primarily through telecommunications cables, boat hulls, insulation and foam insulation used in distributors, home centers, RV side panels, automotive and heavy above- and below-grade construction lumberyards, retailers, and contractors trucks parts, and wind energy blades. applications, and are sold under in the U.S. Our synthetic packaging Insulation well-recognized brand names and materials are used primarily in the trademarks such as Thermafiber®, construction industry for lumber and Our insulating products help FOAMGLAS®, and PAROC® insulation. metal packaging. Oxidized asphalt is a customers conserve energy, provide significant input used in the production improved acoustical performance, We sell our insulation products of our asphalt roofing shingles. We and offer convenience of installation primarily to insulation installers, home are vertically integrated and have and use. Our Insulation segment centers, lumberyards, retailers, and manufacturing facilities that process includes a diverse portfolio of high-, distributors in the U.S., Canada, Europe, asphalt for use in our roofing shingle mid-, and low-temperature products Asia Pacific, and Latin America. manufacturing. In addition, we sell with a geographic mix of U.S., Canada, processed asphalt to other shingle Roofing Europe, Asia Pacific, and Latin manufacturers, to roofing contractors America; a market mix of residential, Our primary products in the Roofing for built-up roofing asphalt systems, commercial, industrial, and other segment are laminate and strip and to manufacturers in a variety of markets; and a channel mix of retail, asphalt roofing shingles. Other other industries, including automotive, contractor, and distribution. products include roofing components, chemical, rubber, and construction.
Read more about our businesses in the Owens Corning Annual Report Photos: Owens Corning® products - on Form 10-K, available on http://investor.owenscorning.com. Fiberglass insulation (top left) Glass-reinforced composite Owens Corning Headquarters veil fabric (top right) SureNail® (bottom right) One Owens Corning Parkway, Toledo, Ohio, 43659, USA
2020 Owens Corning Sustainability Report | Overview | About Owens Corning | 8 Owens Corning is proud of the recognition we have received for our sustainability CORPORATE AWARDS work. These distinctions are a true source of pride for our employees around the AND DISTINCTIONS world, and they inspire us to continue to lead the way in corporate responsibility. The following represent the awards and distinctions we received for our sustainability work in 2020.
Best Corporate Citizens List Corporate Equality Index
For the second year in a row, Owens Corning received a Owens Corning was ranked perfect score on the 2020 2020 number one on the 100 Best Corporate Equality Index, a Corporate Citizens list. The list, key benchmarking survey previously published by Corporate that evaluates corporate policies and practices related Responsibility Magazine, to LGBTQ workplace equality. This marks the 16th recognizes outstanding global consecutive year we have received 100% on this survey, ESG (environmental, social, and governance) established by the Human Rights Campaign Foundation. performances among the 1,000 largest U.S.-based DiversityInc 2020 Companies public companies. for Diversity This is the sixth year Owens Corning has been named Owens Corning was named a 2020 to the list. The companies are ranked based on a blend Noteworthy Company by DiversityInc, of performance and disclosure. an organization that annually ranks CDP U.S. companies for diversity, equity, and inclusion. The rankings measure Owens Corning earned a place on the CDP A List for performance based on six key areas of diversity and Climate Change for the fifth year in a row, inclusion management: human capital diversity metrics, as well as the CDP A List for Water Security leadership accountability, talent programs, workplace for the second year in a row. In addition, practices, supplier diversity, and philanthropy. we received recognition as a 2020 CDP Supplier Engagement Leader. Dow Jones Sustainability Indices
Formerly known as Carbon Disclosure In 2020, for the 11th year in a row, Owens Corning Project, the U.K.-based CDP works with earned placement in the Dow Jones Sustainability investors, companies, and policymakers World Index in recognition of its sustainability to reduce GHG emissions and safeguard initiatives. The DJSI World Index is an elite listing of water resources and forests. By including the world’s largest companies based on long-term Owens Corning on these lists, CDP economic, environmental, and social criteria. The recognizes us for our corporate sustainability leadership, company was named through scoring that “measures comprehensiveness Industry Leader of disclosure, awareness, and management of for the DJSI World environmental risks, and best practices associated with Building Products environmental leadership, such as setting ambitious and group for the eighth meaningful targets.” straight year.
Computerworld’s 2020 Best Places to Work in IT EcoVadis
For the seventh consecutive Owens Corning earned a Platinum certificate year, Computerworld has named with EcoVadis, a company that provides holistic Owens Corning one of the best sustainability ratings for businesses worldwide. places to work in information The rating comes after technology. The ranking is based analyzing our responses to on such factors as benefits, an extensive questionnaire diversity, career development, in comparison with over training, retention, and the 65,000 other companies. results of an employee survey. Owens Corning was Owens Corning received the No. 2 spot among the top ranked among the top 1% 100 large organizations for 2020. of all companies rated by EcoVadis.
2020 Owens Corning Sustainability Report | Overview | About Owens Corning | 9 ENERGY STAR Newsweek’s Most Responsible Companies Owens Corning’s world headquarters in Toledo, Ohio, U.S., earned the Owens Corning was named one Environmental Protection Agency’s of America’s Most Responsible ENERGY STAR rating for 2020. Companies 2020 by Newsweek magazine. Owens Corning ranked No. Ethisphere Institute: World’s Most 76 on the magazine’s inaugural list, Ethical Companies which was created in partnership with For the third consecutive year, global data research firm Statista Inc. The analysis the Ethisphere Institute, a global measured 2,000 public companies on three areas leader in defining and advancing of corporate responsibility: environment, social, and the standards of ethical business corporate governance. practices, has recognized Owens Corning as one of the RobecoSAM Annual Sustainability Yearbook world’s most ethical companies. Owens Corning is one of only four businesses in the construction and building Owens Corning was recognized as one of the materials industry to earn this distinction. world’s most sustainable companies for the seventh consecutive year by the sustainability investment The Ethisphere Institute honors companies that specialist SAM. This recognition earned the company demonstrate a commitment to improving communities, placement in RobecoSAM’s 2020 Sustainability building capable and empowered workforces, and Yearbook. Its score – within one percentage point of fostering corporate cultures that are focused on ethics the top score globally – earned the company the Gold and a strong sense of purpose. This year’s questions Class distinction from RobecoSAM. The yearbook looks also gauged companies’ responses to the pandemic. at performance across such factors as volunteerism, Fortune 500® energy and emissions reduction, production As of 2020, Owens Corning has been recognized as a efficiency, customer and Fortune 500® company for 66 consecutive years. supplier collaboration, and talent development. ISS QualityScore Science Based Target Initiative Institutional Shareholder Services (ISS) awards Our 2030 goal to reduce QualityScore ratings Scope 1 and 2 greenhouse based on a range gas emissions by 50% is of criteria related to in line with standards set environmental, social, and to hold global warming to governance performance. 1.5° Celsius. The Science A lower score, on a scale from one to ten, indicates lower Based Target Initiative, which set these standards, has risk and/or better disclosure on the part of the company. approved our goal.
In 2020, Owens Corning’s ISS QualityScore ratings were In addition, Owens Corning’s commitment to reducing 1 in environmental, 1 in social, and 2 in governance. Scope 3 greenhouse gas emissions by 30% by 2030 has been approved by the Science Based Target Initiative. JUST Capital 2020 Women on Boards Owens Corning was ranked Industry Leader for Building Materials and Packaging for 2020. Companies are Owens Corning was rated based on their performance across a range of recognized by the 2020 categories, including the treatment of employees and Women on Boards customers, product quality, sustainability, jobs, and campaign for having 25 community percent women on its board. support, as well The goal of the campaign, as company which began in 2010, is leadership. to raise the percentage of women on corporate boards in the United States to 20% or more by the year 2020.
2020 Owens Corning Sustainability Report | Overview | About Owens Corning | 10 We are sad to note that we did lose two sheltering in place and taking a closer of our employees to COVID-19, and we look at their living spaces. According COVID-19 grieve along with employees who lost to the home improvement website loved ones to this terrible disease. Porch.com, over three-fourths of homeowners surveyed have completed As the pandemic continued to rage at least one project since the pandemic AND around the world, our employees began. While specific numbers are rallied to help one another and their difficult to ascertain, at least some communities. Owens Corning people portion of those projects have involved coordinated the donation of money and OWENS Owens Corning® products. personal protective equipment (PPE) to organizations around the world, they Related to our sustainability work, and CORNING made donations to the OC Cares Fund, especially our progress toward our repurposed some of our 3D printing goals, the pandemic has required us equipment to create face shields, and to make adjustments across nearly From the earliest days of the contributed manufacturing byproduct all our operations. The outcome has COVID-19 pandemic, Owens Corning to build much-needed hospital beds. been a dramatic advance in our overall digital transformation, as training has worked diligently to protect our As the science emerged, Owens sessions, evaluations, and problem- employees while working to maintain Corning urgently developed and solving initiatives throughout 2020 operations to the best of our abilities. implemented protocols to enable have taken place virtually. This shift As we summarize our efforts here, a employees to resume on-site work to more online activity will inform our wide range of examples — including safely. We made physical adjustments operations going forward, leading to the exceptional measures that our to our workspaces, including plexiglass some decreases in our footprint over employees have taken to care for barriers and distanced seating the years. Given that virtual events others around the world — can arrangements, and we established make it possible for people to attend be found throughout this report. procedures such as health screenings wherever they are in the world, it also Together they demonstrate our deep and mask requirements throughout has the potential to increase employee commitment to the health and safety our facilities. In addition, we halted all engagement, which is part of our of people everywhere. business travel and in-person events, efforts to increase our social handprint. requiring people to connect remotely. Owens Corning had a newly In addition, just prior to the COVID-19 As people began adjusting to this restructured crisis management plan in lockdowns, Owens Corning had new model, we discovered some place as the pandemic began to spread activated our crisis management team, unforeseen benefits: We were able around the world, and it proved highly which later became known as the to expand our meetings to include effective in our efforts to prevent the COVID-19 Management Team. As they more relevant people to share their transmission of COVID-19 throughout coordinated activities, recommended expertise, and the events we hosted our facilities. With this plan, we could protocols, and assessed the found an even wider audience among act quickly to address situations as pandemic’s impact on our people and our employees, as people are able to they emerge, enacting strategies that operations, the team demonstrated virtually join quickly and easily. help protect our people. In addition to Owens Corning’s ability to adapt quickly providing digital support for at-home While COVID-19 had a massive impact to emergency situations and keep our work, we also innovated to expand on all aspects of our business, the employees as safe and healthy as our remote capabilities throughout effect was not entirely negative. possible in highly uncertain times. our operations, facilitating engineering Because Owens Corning joined in the This crisis has tested us — as and troubleshooting, enabling product efforts to have our industry declared individuals and as a company. But even development, and providing support for essential, we were able to help support in these times of great uncertainty, we our customers. our customers as they worked to have discovered an inner resilience that sustain their businesses. While there We believe transmission of COVID-19 will serve us well as we look toward life were still struggles as companies at Owens Corning sites has been beyond COVID-19. Even as we crave a sought to regain their bearings, both minimal, as our protocols are designed return to normalcy, we move forward our customers and our shareholders to curtail the spread of the disease. In with the knowledge that things will saw positive results. Some of this addition, given our ongoing emphasis never truly be the same again, and that can also be attributed to a dramatic on health and safety in the workplace, the lessons we learned in 2020 will uptick in home improvement projects our employees are already accustomed help us emerge stronger than ever. to exercising safe practices at work. that came about as more people were
2020 Owens Corning Sustainability Report | Overview | COVID-19 and Owens Corning | 11 OUR ASPIRATIONS
Throughout human history, our planet negative environmental impact of has sustained us. Over time, though, our operations. These aspirations our technological capacities have are closely connected. For example, grown exponentially, and with that has when we design insulation products come an overwhelming need for more that help save energy, that’s part of and more natural resources. As these our handprint, as those products help resources diminish dramatically, we our customers and end-users meet their sustainability goals. When we as humans must now work to sustain Photos submitted by: our planet. design those same products with Cheryl Smith | Granville, Ohio, U.S. higher recycled content, or to be easy Cheryl’s backyard in the fall. As a worldwide leader in our industry, to recycle or repurpose as part of the we have the responsibility to be at the circular economy, that expands our forefront of corporate sustainability handprint further. And when we design efforts. Each step forward in our our manufacturing processes to use sustainability journey has shown less energy or other natural resources, us how much more can be done. we reduce our footprint. Every accomplishment points us toward new opportunities to fulfill our Over time, our definition of ultimate ambition — ensuring that our sustainability has also come to include people and our products make the expanding our social handprint, and world a better place. so we work to ensure that people are safe and live with health, happiness, Expanding the Parameters of and human dignity. Our safety Sustainability commitments are one pillar of this, True sustainability seeks to provide as we aspire to eliminate injuries at a better quality of life for people work and at home. Our health and everywhere. Through our all- wellness programs aim to help our encompassing approach, we aspire employees and their families thrive. In to contribute to the health, safety, and our workplaces and our communities, well-being of all living things and all we seek to foster a spirit of inclusion people, everywhere. and an appreciation of diversity. We want to see a society where people feel It’s our goal to be a net-positive valued not despite their differences, company, one whose handprint but because of them. Above all, we is greater than our footprint. In understand that achieving these other words, we aim to continually ambitions will depend on the actions increase the good our people and we take today. products do while also reducing the
2020 Owens Corning Sustainability Report | Overview | Our Aspirations | 12 Dedicated to Results. Increasing Our Social Handprint: 2030 GUIDING ASPIRATIONS Driven by Data. ■ Our health and wellness initiatives are increasingly Each step on our sustainability guided by our use of the journey is measured against a Healthy Living platform, which DOUBLE the positive set of quantifiable metrics and employs an algorithm that impact of our specific targets. As our journey has considers illnesses, medication products progressed, we have worked to usage, demographics, and develop data-driven methods that other factors to calculate provide quantifiable measures of our health risks for our employees improvement. The following examples and empowers them to make demonstrate this commitment across HALVE THE better choices. all three of our key pillars: NEGATIVE IMPACT ■ Historical data, current data, of our operations Expanding Our Product Handprint: and key performance indicators ■ Life Cycle Assessments (LCAs) provide our safety teams enable us to comprehensively with the insights needed to measure a product’s footprint track performance, identify Eliminate injuries and through all its stages, from the trends, and tap into real-time IMPROVE THE extraction of raw materials, through metrics. Safety dashboards QUALITY OF LIFE processing and manufacturing, and databases have proven for our employees to its end of life. By performing invaluable in our safety efforts, and their families LCAs, we can identify opportunities and we have begun to expand for improvement and work with their use in 2020. suppliers to reduce their footprint, Learn more about Owens Cornings ADVANCE which in turn helps us reduce ours. sustainability goals and targets in our inclusion and Reducing Our Environmental Footprint: the Summary & Highlights of this diversity ■ In our 2030 goals, we seek to report. reduce our greenhouse gas emissions from our operations by half, in line with what’s needed Have a to limit global warming to 1.5° C. Our target has been validated and POSITIVE IMPACT approved by the Science Based on our communities Targets Initiative.
■ To understand how water stress is affecting an area, we refer to These are the principles that will inform the Aqueduct Water Risk Atlas, a our actions as we work toward our resource developed by the World goals. They represent our understanding Resources Institute (WRI). With this of the ways Owens Corning’s work global water risk mapping tool, we can benefit individuals, communities, screen our sites for high baseline and the planet — and how valuing one water supply stress and see requires that we value all three. projections for the levels of stress By 2030, we expect the world will these sites may be under in years be a very different place. Increasing to come. demands on the earth’s resources ■ In 2020, we began using the will continue to create challenges. By Integrated Biodiversity Assessment taking the stance we are taking today Tool (IBAT), a web-based mapping — leading the way with an ambitious, and reporting instrument. holistic approach to sustainability — IBAT enables us to upload site Owens Corning believes we can help coordinates and receive information make the world of 2030 a better place. about the area’s status as a protected site and the presence of endangered or threatened species in the vicinity.
2020 Owens Corning Sustainability Report | Overview | Our Aspirations | 13 Top Areas of Focus 6. Recycling into our processes. These eleven areas represent a wide Increase the amount of recycled range of projects, initiatives, and Our 2030 sustainability goals are materials and production waste opportunities for Owens Corning. We described in more detail in the chapters we use in our products and made progress against these priorities of this report. There are several key processes, while eliminating in 2020, which is described throughout areas of work that will support the waste-to-landfill. this report. This year, we launched goals, and in some cases, multiple our FOAMULAR® NGX™ insulation, 7. Circular economy. Develop goals will be affected by one focus marking a big step in our commitment business models and technical area. Accountability for progress on to eliminating blowing agents with solutions to recycle Owens these critical priorities rests with our high global warming potential. We Corning® roofing, composites, top business executives, ensuring also completed development of and insulation products to broad engagement across the PAROC® Natura™ Luna, our first advance the circular economy, company in our sustainability work. carbon-neutral insulation slab, which reduce waste-to-landfill, and uses low carbon melting technology 1. Blowing agent. Solve the enable us to take back scrap and green electricity to reduce CO technical, business, and material from our customers’ 2 emissions. In addition, we announced commercial puzzles in both our processes. the creation of a new circular economy global foam insulation operations team that is dedicated to leading our and our products to eliminate 8. Supplier sustainability. Inspire efforts in that arena. With leadership blowing agents that have high our suppliers to engage with us commitment and the dedication of global warming potential. around sustainability priorities while increasing transparency, Owens Corning employees, we believe 2. Renewable energy sourcing. such as reducing our Scope ongoing progress on these priorities Further reduce demand through 3 greenhouse gas emissions will translate into foundational progress energy efficiency and concurrently and ensuring certainty of toward our ambitious 2030 goals. expand our renewable energy compliance with our human purchases in the U.S. and beyond, rights policy. establishing programs in China, India, Mexico, Brazil, Europe, and 9. Safety. Advance in our Canada to reduce the footprint journey to zero injuries by of both our operations and our understanding, learning, products. innovating, and executing the right safety-related leadership, 3. Fuel switching. Develop affordable processes, and investments. technology to enable conversion from fossil fuel to carbon-neutral 10. Healthy living innovation. and renewable energy to power Develop strategy and tactics our processes. to inspire and engage our U.S. employees who are not enrolled 4. Expand our offering of in our wellness initiatives, and formaldehyde-free insulation expand the participation of our products. Convert to employees outside of the U.S. formaldehyde-free binders for global production of our technical 11. Inclusion and diversity. Identify insulation and mineral wool and close gaps, measure products. progress, enable success with business impact, and evolve 5. Embodied carbon. Reduce the our leadership voice, while amount of carbon released fostering a culture where our throughout the entire life cycle individual differences are truly of our products by making our appreciated. manufacturing processes more energy-efficient, improving our supply chain logistics, and developing end-of-life solutions.
Photos submitted by: Micki Vanderpool | Rockford, Illinois, U.S. Forest Giants by artist Thomas Dambo, Berneim Arboretum and Research Forest, Louisville, Kentucky, U.S.
2020 Owens Corning Sustainability Report | Overview | Our Aspirations | 14 Leaders from around the company offer their BEYOND TODAY, perspective on the work that brought us this far, and the SHAPING TOMORROW work that lies ahead. OUR SUSTAINABILITY JOURNEY: 2010 TO NOW.
Frank O’Brien-Bernini Senior Vice Presidentand Chief Sustainability Officer
Two decades, three CEOs, one CSO, publicly, before having a defined path-to-achieve, put in place 19,000 employees in 33 countries, with the resources with resilient resolve to make the necessary one purpose – our people and products hard-fought progress today, tomorrow, next week, next month, make the world a better place. next year and many years to come…and to then have the confidence and integrity to transparently report progress, year As I reflect on our journey, and our after year, whether you are proud or disappointed (and most impact, there are so many things to often, a mix of both). be proud of, and even more ahead to challenge and excite us. There is so much to be proud of in what our people have accomplished. I am particularly proud of our progress on What began with a focus on footprint climate action. We have cut our absolute GHG emissions reduction, quickly expanded to designing and manufacturing by over half since our peak year, despite adding several products with differentiated sustainability attributes. We acquisitions along the way, and we are now committed to cut it collaborated with customers and suppliers for even bigger in half again with our Science Based Target of -50% for 2030, in impact, and then expanded our scope to include safety, wellness, line with the 1.5°C above pre-industrial levels pathway. community engagement, inclusion and diversity and most recently, embodied carbon and circular economy. As we, and other great companies around the world, look to imagine a decarbonized future, I am massively energized by all What I’ve learned along the way is that the most critical levers yet to pull on the path to carbon neutrality. The promise competence of sustainability talent, all across our company, is the of a future with a robust circular economy is one of those ability to lead change. The skills and capabilities to set ambitious climate-action bright spots of underappreciated opportunity… aspirations that matter, have the bold nerve to say them out loud, let’s go!
INTRODUCTION
With the publication of this year’s Sustainability Report, we recognize the need to look back on our accomplishments as they relate to our 2020 sustainability goals. We have achieved a great many of those goals, and even when we have fallen short, we can still point to significant progress in our efforts.
In this section, we discuss some of the steps we have taken in pursuit of our 2020 goals. In addition, members of Owens Corning’s leadership share their insights on how far our company has come on our sustainability journey and where we need to go.
Julie Childers Director, Corporate Sustainability
When we started publishing annual sustainability reports in 2006, we wanted to give our stakeholders an idea of how we were approaching environmental sustainability in our operations. Over the years, our sustainability goals have gotten bolder and cover a wider range of activities, and our stakeholders are more interested in the details. The need for transparency in sustainability reporting will continue to increase, especially as stakeholder expectations evolve.
At the same time, we’re developing better metrics and better ways of collecting and analyzing data, so over the next ten years I’m sure our annual reporting process will continue to evolve. The amount and depth of disclosure we’re doing now makes the report a complex undertaking, but we believe it’s the right thing to do. We continue to work to share our story Photo submitted by: in other ways, too, and we track the questions we get from investors, customers, and others Julie Childers | Granville, as an indication of where we can provide additional data or explanations to clarify. I think Ohio, U.S. knowing that our results will be shared openly helps our teams stay focused on making sure Alabama on the shores of we can be proud of what we’re doing, even in cases where we may not be getting the results the Gulf of Mexico. we want yet.
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 15 EXPANDING OUR PRODUCT HANDPRINT
Product Innovation & Stewardship Paul Lewandowski 2020 Goals: Director of Regulatory Law and Product Compliance ■ Create a pipeline of sustainable products. In 2020, Owens Corning reached a remarkable achievement. For fifteen years we have had a formal process to ensure ■ Increase value through sustainability in the innovation process. all the products we design, manufacture, or sell perform as promised and are safe and environmentally sound to 2020 Targets: make, use, and dispose of. This commitment to product ■ 85% of our new products and 85% of our new applications will stewardship was one of the first of its kind. Since 2006, our have net sustainability gains. Corporate Code of Conduct has required that all our new and significantly modified products are reviewed prior to ■ Increase the number of Owens Corning-supported net-zero commercialization by an interdisciplinary cross-enterprise energy-ready buildings year-over-year vs. 2015 baseline of 35. team of Owens Corning experts in product development, manufacturing, safety, environmental protection, health and sustainability. The participants on this Product Stewardship Over the last ten years, we’ve done a great deal Review Board serve voluntarily with a commitment to to develop innovative products that make the our core purpose. Their expertise in product design, engineering, manufacturing, regulatory compliance, safety, world a better place. and environmental protection provides a resource to help us meet product stewardship requirements. Here are some of the highlights: We’re proud of our history of product stewardship, but ■ Launched our Duration FLEX® shingle platform, providing a that doesn’t mean we are satisfied. In 2020, the product more resilient roof system for the homeowner. Duration Flex stewardship team made a significant leap forward by is the only modified asphalt shingle with SureNail® technology, introducing a new tool for product developers: the Owens with nearly 1.5x the nail pull-strength and 10% better tear Corning EcoDesign Strategy Wheel. Based on the well- strength than standard shingles. known Okala EcoDesign Strategy Wheel, this brainstorming tool integrates stage-specific Design for Environment (DfE) ■ Developed advanced glasses and composite materials such and product sustainability strategies into the innovation as UltrabladeX™, a new generation of high performance fabrics process. The tool is designed to raise awareness of product that enable original equipment manufacturers to design and sustainability attributes and enable the development of more make longer and lighter wind turbine blades, decreasing the sustainable products. By providing researchers with a line cost of wind energy. of sight to sustainability components of product design, it enables us to align our product development process with ■ Developed a new foam insulation product, FOAMULAR® NGX™, our 2030 sustainability goals. delivering a 90% reduction in blowing agent GWP compared to ® legacy FOAMULAR insulation and optimized to demonstrate a Joan Drew greater than 80% reduction in embodied carbon. Vice President, Composites, Europe, and ■ Introduced the first formaldehyde-free mineral wool insulation Intellectual Property in North America in 2017. Our commitment to sustainability has led Owens Corning ■ Developed a robust internal product stewardship process that to lean into new ideas, approaches, and considerations, ensures every new product or application is reviewed. all of which are driven by our dedication to reducing our footprint and increasing our handprint. We are deepening our ■ We have conducted full LCAs on 81% of our products, including understanding of the input materials we use and how our shingles, fiberglass, mineral wool, FOAMGLAS® cellular glass, products can be used and reused. We are innovating to deliver and extruded polystyrene (XPS) foam insulation, as well as enhanced performance with longer-lasting products. And we composite glass product offerings such as reinforcements, are exploring new ways to use increased recycled content and nonwoven mats, and technical fabrics. In addition, we have reduce the energy intensity of our operations. aspect-specific LCAs for 5% of our other products. These focus areas have led us to accelerate our partnerships ■ Increased the number of products certified “Made with 100% with our suppliers, customers, and other stakeholders to Wind-Powered Electricity and Reduced Embodied Carbon” innovate products and processes that are designed to meet to 13. the needs of the future. We are also learning from each ■ Launched the world’s first certified asthma & allergy friendly® other across our global innovation network as we share new insulation, Pure Safety® High Performance Insulation, which approaches and needs. The broad perspectives that we are has up to 65% less dust and is mold and mildew resistant. It’s gaining have led us to invent and use technologies that we designed to contribute to a safe and healthy indoor environment would not have considered a decade ago, and I am convinced while delivering added fire resistance, noise reduction and the that our focus on sustainability will help us grow with our highest thermal performance in its class. customers into the future.
■ Established take-back models for stone wool insulation, reducing waste during construction, fabrication, and installation, an important step in the transformation to a circular economy.
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 16 EXPANDING OUR PRODUCT HANDPRINT
Supply Chain Sustainability Chris Johnson 2020 Goals: Director, Sourcing ■ Set clear expectations for suppliers’ sustainability progress. Owens Corning is continuously working to improve the footprint of the products we produce throughout their life ■ Use leading-edge sourcing practices. cycles, increasing their value and developing a useful second life for them. One way we’re doing that is by strengthening the ■ Measure and disclose supply chain performance. relationships within our supply chain to have an increasing impact on our products and operations. We seek to fully ■ Expand our training on sustainability to meet the needs of our engage with our suppliers in order to exchange the most global sourcing organization. effective sustainability practices, learning from them and providing our own insights as well. ■ Convert 12% of North American transportation miles to natural gas or use alternative fuel savings methods. Through tools such as the Supplier Code of Conduct, first published in 2010, our segmentation tool, and supplier surveys, we have increased and focused our engagement with Our suppliers are key partners in our suppliers. In doing so, we are increasing energy efficiency, accelerating renewable energy adoption, and transforming sustainability journey. traditional material systems to stronger, more durable, and lighter solutions. Among the highlights since 2010: Over the years, we have also advanced our processes ■ Established the Owens Corning Sourcing Way, which surrounding competitive analytics, making it a formal standardizes sourcing strategies and provides information on component of our playbook and standardizing the ways in key sustainability categories. which we create, communicate, and execute commodity ■ Repurposed lumber wrap product as a reusable packaging for strategies. All our commodity leaders globally have attended shipping FOAMULAR®, eliminating the need for drivers to tarp training to ensure a consistent process companywide. our products prior to transport. Even with all that we have accomplished in supply chain ■ Began implementing a new, detailed risk mitigation tool, sustainability, we understand that there is more to achieve. As assessing supplier risk in a range of areas. we look ahead to our 2030 objectives, we expect to increase collaboration throughout our entire supply chain, grow our capabilities in how we manage and mitigate risk, and reinforce our commitment to human rights and other key principles of sustainability.
Photo submitted by: Felicia Feng | Yantai, China Foamglas® ready to be shipped.
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 17 REDUCING OUR ENVIRONMENTAL FOOTPRINT
2020 Targets: Frank O’Brien-Bernini ■ Reduce primary energy weighted-average intensity by 20% vs. SVP and Chief Sustainability Officer 2010 baseline. Our first set of ten-year goals was centered on our ■ Reduce consumed energy intensity (in support of the primary commitment to reducing our environmental footprint. Through energy weighted-average intensity energy goal). the years, that has continued to be a critically important pillar of our sustainability journey. When we achieve a goal, we set ■ Reduce greenhouse gas emissions weighted-average intensity more challenging goals for ourselves. Our science-based by 50%. (raised goal mid-cycle from 20%). goals for 2030 are based on what we know the world needs us to do, not what we know how to do. ■ Reduce toxic air emissions weighted-average intensity by 75%. (raised goal mid-cycle from 50%). Looking back on our progress since 2010, I’m proud of how far we’ve come. For some goals, such as toxic air emissions ■ Reduce PM2.5 emissions weighted-average intensity by 15%. and greenhouse gas emissions, we reached our 2020 targets ■ Reduce water weighted-average intensity by 35%. ahead of schedule, and set new, more ambitious targets for ourselves. Having a stated goal keeps us resolved, as reaching ■ Reduce waste-to-landfill weighted-average intensity by 70%. one milestone simply helps us see the possibilities in the next one more clearly. In other areas, we have learned and improved over the years but haven’t yet reached our goals. From the beginning of our sustainability Reducing waste-to-landfill is clearly one of these areas, and journey, we have worked to reduce our rather than backing off, we’ve instead elevated our ambition to reaching zero waste-to-landfill by 2030. This work supports environmental footprint across our operations. our other goals, too: embodied carbon, circular economy, climate change, sourcing sustainability, responsible water use, Through these efforts since 2010, we have: and more. ■ Saved 4.8 billion gallons of water through our plant-led Reducing our environmental footprint was the first focus of conservation efforts. our sustainability initiative two decades ago and remains a ■ Shifted to a starch-based, formaldehyde-free binder for our foundational priority. Taking care of our planet is a prerequisite EcoTouch® product, reducing the emission of particulates, for ensuring that people and communities can thrive. formaldehyde and ammonia for better air quality.
■ Worked with a third-party partner, Waste Hub, to find an end-use application for one of the largest waste streams at a facility, resulting in a new company, 10X Engineered Materials, that uses the plant’s dragline shot to make an effective, safer alternative to sand and other blast media that contain crystalline silica.
■ Empowered 41 of our plants to achieve greater than 80% waste diversion in 2020 alone, with 11 plants achieving 100% waste diversion.
■ Entered into wind power purchase agreements producing approximately 1.1 million megawatt hours annually, with additionality.
■ Installed a parking lot canopy solar array at our world headquarters in Toledo that provides approximately 20% of the building’s electricity. When it was installed in 2015, it was the largest solar array of its kind in the Midwestern U.S.
■ Implemented the Integrated Biodiversity Assessment Tool, a web-based mapping and reporting instrument that helps us make informed, data-driven decisions in our biodiversity practices.
Photo submitted by: Olivia Kasle | Toledo, Ohio, U.S. White Mountains, New Hampshire, U.S.
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 18 INCREASING OUR SOCIAL HANDPRINT
Community Engagement Don Rettig 2020 Goals: Director, Community Relations ■ Achieve 82% site participation in community service projects The expectations and opportunities around corporate with 100% of our facilities engaged by 2022 through community citizenship that companies encountered in 2020 were very projects. different from those of 2010. Ten years ago, investor interest was infrequent, today a strong corporate citizenship program ■ Increase volunteer hours annually. is table stakes. Employees and potential employees prefer and seek out employers that make a positive impact in the We take an active role in the communities communities where their people live and work. And while engaging regional facilities in community volunteerism where we operate, and our employees are presented a challenge in 2010, in 2021 the challenge is enthusiastic about company-sponsored meeting the demand. opportunities to make a difference. Where 2010 to 2019 brought a steadily increasing emphasis
on corporate citizenship, the year 2020 generated more In the past ten years, we have: change than the previous nine years combined. Corporate ■ Leveraged our business expertise, financial resources, and approach to disaster relief, previously limited geographically people to provide safe and efficient housing, promote health to a community, region or perhaps a country, was forever and wellness, and increase educational opportunities around altered by a global COVID-19 pandemic. That same pandemic the world. forced new thinking around employee engagement, ushering in a new era of virtual volunteerism. Over the last 10 years, ■ Provided new roofs to veterans in need through the Roof our employees have made a tremendous difference in their Deployment Project. communities, with volunteerism increasing dramatically since ■ Built or renovated over 150 homes since 2016 through Habitat 2010, and we expect those increases to continue as we enter a for Humanity International. post-pandemic world.
■ Contributed over $5 million to nonprofit organizations in 2020 Perhaps even more significant were the events of 2020 that through Owens Corning and the Owens Corning Foundation. shone a bright light on the issue of racial inequity. Perhaps for the first time, it was the corporate world that sprang into action ■ Committed more than $2.3 million toward racial equity in 2020, to bring real change within local communities, committing including a partnership with Local Initiatives Social Corporation. billions and leading the philanthropic response. While the pandemic will bring programmatic changes to disaster response, the new focus on eliminating racial inequity will refocus the corporate citizenship strategies of U.S. companies for many years to come.
Photos submitted by: Ann Malak | Toledo, Ohio, USA Employees from our world headquarters at Owens Corning’s 17th full house build with with Maumee Valley Habitat for Humanity.
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 19 INCREASING OUR SOCIAL HANDPRINT
Employee Experience Paula Russell 2020 Targets: Chief Human Resources Officer
■ Average per employee of 20 hours of development training for Throughout the past decade, Owens Corning has enhanced our primary workforce and 10 hours of training for our non- our work environment and culture to stay at the forefront of rising workforce expectations. Employees are now looking primary (salaried) workforce. for a challenging and purpose-filled work experience that Our simple 2020 goal related to employee aligns with both their personal and professional values and allows them to bring their full selves to work every day. experience used a single metric to represent our commitment to employees’ growth and Owens Corning has built best-in-class programs to develop employees, boost employee well-being and a sense of development. Since setting that goal, we have belonging, and offer career opportunities for high impact worked to create an employee experience jobs that fulfill essential needs for our customers. We want that encompasses many other dimensions. employees to say, “Owens Corning cares about me and the world.” We have: Our investment in our talent, from early-career programs ■ Expanded employee benefits through a lens of inclusion and to developing high-performing, diverse teams has led to diversity, including benefits for expenses related to adoption excellent retention and high employee engagement. As and fertility treatments. a company, we say that we are “global in scope, human in scale,” where leaders at all levels are accessible and ■ Achieved a high internal fill rate for director and experiences to work with amazing teams to make a leadership roles. difference for our company and customers are common. ■ Created programs for early career employees that provide rich professional experiences to accelerate growth. It doesn’t stop here. As we look ahead, we will take learnings in our response to the pandemic related to agility, flexibility, ■ Piloted a phased retirement program that supports an and technology and make the experience of our company effective transfer of knowledge as experienced employees even better. leave our workforce and enter their post-OC years. ■ Established company-sponsored, employee-led Affinity Groups, which help our employees embrace our differences, drive awareness, strengthen employee engagement, and build connections. ■ Fostered an environment that empowers women in our industry, including an emphasis on increasing women in Owens Corning leadership. Photo submitted by: ■ Introduced Courageous Conversations, an offshoot of our Day Merry Qu | Qingdao, Novia, China of Understanding, designed to open dialogues about issues Novia half-year review meeting. surrounding inclusion and diversity.
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 20 INCREASING OUR SOCIAL HANDPRINT
Living Safely Geoff Walter 2020 Goal: Director, Enterprise Safety
■ Create a workplace free of injury or illness. As we think about safety at Owens Corning, we keep one idea in mind: Behind every injury is a person whose life Safety has been a primary focus of our has been disrupted, sometimes severely. That’s why we’re dedicated to creating an environment where the only culture for two decades, always driven by acceptable number of injuries is zero. Since 2002, we have the aspiration of zero injuries. Many of our reduced the number of injuries at our sites by 90%. plants have had long periods without injuries As we have acquired companies over the last decade, our occurring, so we know that our aspiration is resources and our dedication have significantly reduced possible. In addition, we have been successful the number of injuries at those locations as well. We in integrating safety into our acquisitions, have modified our approach to create two main paths to achieving zero injuries. We have established a targeted rapidly improving their safety performance to approach to eliminate low-frequency serious injuries and be consistent with our legacy operations. fatalities (SIF), as well as a separate approach for injuries that are less severe, but more common.
Through our commitment and efforts, we have: In addition, Total Productive Maintenance (TPM) has ■ Become one of the world’s safest companies. Our recordable proven to be a powerful tool to develop site specific actions injury rate is 90% lower than it was in 2002, when we declared for site specific issues. Because TPM offers a systemic safety to be our top focus. It still is. and disciplined process for identifying and implementing corrective actions to improve performance, sites that are ■ Increased our focus on eliminating precursors to serious mature in TPM are leaders in EHS performance. injuries and fatalities, even if no injury has yet occurred. Our commitment to living safely has never wavered. As ■ Integrated principles of TPM into our safety initiatives, we have continued to make safety an essential part of our empowering employees to proactively address the issues that culture, our belief that all injuries are preventable has never could cause injury or losses. been stronger.
■ Incorporated predictive analytics into our safety efforts, This strong safety culture provided a very effective identifying key factors and predict the risk of incidents based foundation for developing, communicating and assuring on historical data. compliance with the constant drum beat of new, science- based COVID-19 employee protection protocols that we ■ Revised our crisis management plan to address emerging rolled out to our facilities around the world throughout the issues, business interruptions, and emergencies that threaten pandemic. human life, safety, or property.
Photo submitted by: Rupak Karmakar | Silvassa, India (From left to right) Alok Ojha, Tribhuvan Prasad, Dharmendra Singh & Rakesh Mishra.
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 21 INCREASING OUR SOCIAL HANDPRINT
Health & Wellness Brian Linder Corporate Medical Director We set an ambitious aspiration to eliminate all lifestyle induced disease in our employees and Owens Corning has a long history of commitment to employee health and wellness. We have been working with their families. And, although we did not have our employees to educate and improve their well-being since a 2020 Sustainability (metrics-based) Goal the earliest moments of employer engagement in this space. directly related to health and wellness, efforts It’s a natural extension of our dedication and commitment in this area have been an important part of our to employee safety. There is an understanding at the highest levels in our company that our employees are our most journey in pursuit of our aspiration. valuable assets, and they are cherished partners in all of the successes we enjoy as an enterprise. Helping ensure that our employees and their families thrive, over the past decade we: Although the medical science underpinning our objectives ■ Launched the Healthy Living digital platform, linking to improve employee health and well-being have remained employees to our wellness resources and enabling them to largely the same over the last decade, the strategies we track their individual progress. employ to deliver on these objectives have changed a great deal. In essence, it’s not the “what” but the “how” that ■ Established an aspiration team, led by plant leaders, for each continues to drive our actions in helping our employees lead of our six Healthy Living Pillars: know your numbers, healthy healthier lifestyles. Our early efforts were mostly focused mind, physical activity, nutrition, tobacco-free, and financial on centralized, corporate solutions to deliver education and health. lifestyle improvement services. This is still a very important ■ Enabled 99% of our employees work in tobacco-free facilities. component of our wellness strategy, but we have found that ■ Created a Champion Network, in which select employees are by recruiting local facility assistance, including the help of trained to help us deliver wellness-based programming at our plant leadership, building local wellness champions, etc., we sites around the world. can achieve an even greater impact in helping employees stay healthy. ■ Responded to the U.S. opioid crisis by implementing a three- day limit on short-acting opioid prescriptions. We look forward to partnering with all of our facilities to ■ Integrated the principles of Total Productive Maintenance into deliver state-of-the-art medical education and services, our health living initiatives, empowering employees to address in a locally based and focused approach that will result in health-related issues. continuous improvement in employee health and wellness long into the future.
Photo submitted by: Harry Allen | Jackson, Tennessee, U.S. The Jackson team with the Healthy Living Award, from left to right, Sherica Buntyn, Regina Camper, Darrell Schuerenberg, and Harry Allen.
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 22 2020 SUMMARY & Across all three of our sustainability pillars, we made very exciting progress on our aspirations for 2020. HIGHLIGHTS
EXPANDING OUR PRODUCT HANDPRINT
Product Innovation & Stewardship Recent innovations in our portfolio include the following:
® Create a pipeline of sustainable products and increase the Paroc Natura™ insulation. This carbon-neutral line of value through sustainability in the innovation process. stone wool insulation uses low-carbon melting technology, green electricity, recycled waste materials, and new
technologies to minimize the amount of CO2 emitted during the manufacturing process.
FOAMULAR® NGX™ insulation. Introduced in 2020, FOAMULAR® NGX (Next Generation Extruded) features a proprietary blowing agent that delivers a 90% reduction in global warming potential (GWP) compared to legacy FOAMULAR® insulation, and is optimized to demonstrate a greater than 80% reduction in embodied carbon.
WindStrand®. This innovative material allows wind blade manufacturers to use 30% fewer layers of material in the blade molds, while delivering the same quality and performance as standard fabrics. This in turn represents a 50% savings in labor and production time for the blades.
Trumbull® Asphalt. In 2015, 8% of our products were non- oxidized. Today, almost 50% of the products we produce for the external asphalt business are non-oxidized, requiring less energy, lower temperatures, and fewer emissions.
85% of new products and 85% of new applications will have While we did not meet this challenging goal, we believe our net sustainability gains by 2020. progress demonstrates the effectiveness of our approach to evaluating product sustainability evaluation as part of our innovation process. In 2020, we can report that: ■ 90% of new products have shown a gain or no change to the net sustainability evaluation. ■ 58% of new products have shown net sustainability gains. ■ 100% of new processes have shown a gain or no change to the net sustainability evaluation. ■ 60% of new processes have shown net sustainability gains. ■ 100% of new applications have shown a gain or no change to the net sustainability evaluation. ■ 75% of new applications have shown net sustainability gains.
Increase the number of Owens Corning supported net-zero In 2015, we set a goal to increase the number of NZE ready buildings year-over-year vs. 2015 baseline of 35. buildings we support year-over-year, compared to a 2015 baseline of 35 buildings. Through strategic partnerships with several homebuilders, we were supporting more than 400 such homes in 2018. As we developed our 2030 goals in 2019, we reevaluated our work in this area, and going forward we will not set a specific target. We continue to work closely with organizations and contractors who are driving progress in this area.
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 23 EXPANDING OUR PRODUCT HANDPRINT
Supply Chain Sustainability We contacted 1,283 suppliers from around the world to take our 2020 supplier survey, and 302 did so — a response Set clear expectations for sustainability progress by our rate of approximately 24%. Of the suppliers that responded, suppliers. more than 96% are able and willing to comply with all aspects of our Supplier Code of Conduct.
Use leading-edge sourcing practices. Our total base of suppliers consists of more than 22,000 organizations with an approximately $5.4 billion spend. 1,311 suppliers make up 73% of that spend. We have active management processes in place to evaluate, segment, and engage with all top-spend suppliers. We determine appropriate action items related to each supplier based on the supplier’s specific profile.
We utilize an industry standard process for corrective actions with our suppliers. This includes a short-term action and containment plan, root cause analysis, identification and verification of long-term corrective actions, implementation of long-term corrective action, and final verification and sign-off by stakeholders. We typically deliver our written request for corrective action during supplier assessments and at receipt of nonconforming material. In addition, we may also ask suppliers to provide additional inspection data with shipment showing actual measurements for critical characteristics, and sign-offs of management at supplier locations.
Measure and disclose supply chain performance. In 2020, our Scope 3 emissions totaled 3,436,945 metric
tons of CO2e.
Expand our training on sustainability to meet the needs of The OC Sourcing Way intranet site houses a wide range of our global sourcing organization. information, providing global sourcing members with the latest information on shared suppliers, such as evaluations, sustainability surveys, segmentation, and risk mitigation plans.
In 2020, 100% of our global sourcing organization was trained on sustainability through OC Sourcing Way.
Convert 12% of North American transportation miles to We established a goal to convert 12% of North American natural gas or use alternative fuel savings methods. transportation lines from diesel to natural gas by 2020, but the reduced cost of diesel fuel has caused efforts to stall as the ROI on equipment conversion has not been favorable for carriers. In addition, economic growth and market demand over the past several years made it difficult for Owens Corning to make the conversion from truck to intermodal equipment. Finally, the capacity of intermodal equipment in our heaviest conversion lanes has been below our level of demand.
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 24 REDUCING OUR ENVIRONMENTAL FOOTPRINT
2020 Footprint Chart ■ 2020 Goals ■ Original 2020 goals (revised after achievement) ■ 2020 Results
✔ PRIMARY ✔ GREENHOUSE ✔ PARTICULATE TOXIC AIR WASTE-TO- ✔ WATER ENERGY GASES MATTER 2.5 EMISSIONS LANDFILL
-10 ✔ -20 -15 -20 -20
-27 -30 -29
-35
-40 -39
✔ -43 -50 -50 -50 -53
-60 -56
-70 -70
-75 -80
EXPANDING OUR SOCIAL HANDPRINT
Living Safely Our recordable incident rate (number of injuries X 200,000 / total labor hours) in 2020 was 0.62. This is 79% below the Have a workplace free of injury or illness, with a highest industry average, as reported by the U.S. Bureau of Labor focus on the prevention of serious injuries and fatalities Statistics for 2019 (the most recent data available). (SIF). In addition, 54% of our global facilities were injury-free in 2020. The severity of our incidents, measured by our lost- time injury frequency rate (lost workday cases x 1,000,000/ total labor hours) was 1.38.
Community Engagement Our facility engagement in 2020 was 89%, which includes volunteerism and financial support. Achieve 82% site participation in community service project in 2018, with a long-term goal of 100% facility engagement by 2022.
Annual increase in volunteer hours. Due to the COVID-19 pandemic, our volunteer hours for 2020 decreased 49.6% from 2019. However, we had seen consistent increases in the preceding years, and we are confident that our volunteerism will increase dramatically as restrictions are lifted.
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 25 2030 SUSTAINABILITY TARGETS & PROGRESS
EXPANDING OUR PRODUCT HANDPRINT
2030 GOALS 2030 GOALS FOR THE CIRCULAR ECONOMY FOR PRODUCT INNOVATION
By 2030: Establish viable circular economy business & STEWARDSHIP models involving our materials and how they are By 2030: We intend to offer the most recognized used by collaborating up and down the supply chain, and preferred products for sustainability. with customers, suppliers, communities, academics, policy makers, government entities, and other To meet this ambitious goal, we are striving to organizations. implement strategies to help ensure our products deliver: Increase recycled content and decrease virgin raw ■ The lowest impact with respect to embodied materials used in our products. carbon among all available options. Develop technical solutions and practical business ■ Minimal Life Cycle Assessment (LCA) impact, models for our product materials and packaging to including products that feature high use of continuously be used for beneficial purposes even after recycled and renewable materials and are they are no longer used for the original purpose. designed for end-of-life recyclability and/or For more information about our initiatives in this area, reuse. see the Circular Economy chapter. In addition, we intend to collaborate with our suppliers to increase transparency around the raw materials we use in our products. This helps us understand and control the impact of our products — and enables us to share that information with our customers so they can do the same.
For more information about our initiatives in this area, see the Product Innovation & Stewardship chapter.
2030 GOALS FOR SUSTAINABLE GROWTH
By 2030: Design our products for recycling or reuse to optimize the impact of our products over their entire life cycle from raw materials to disposal.
In 2020, we achieved $7.1 billion in sales, which exceeded our expectations given the COVID-19 pandemic. Through our successes in the past year, we remain well-positioned to advance our overall product handprint aspirations for contributing to a circular economy model, ensuring collaboration throughout our supply chain, and delivering product innovation and stewardship in the years to come.
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Over the next decade, we will collaborate with our suppliers to increase 2030 GOALS transparency around the raw materials used in our products. Through these FOR SUPPLY CHAIN partnerships, we will also reduce greenhouse gas emissions related to our purchased materials and services. SUSTAINABILITY By 2030, we will have cut these emissions by 30%. In addition, 100% of our global sourcing team will be trained and recertified annual on sustainability.
As we look ahead to 2030, we will also anticipate 100% compliance with our Supplier Code of Conduct among our suppliers, and we will continue to prioritize supply chain partners that share our commitment to sustainability in all its forms.
Reduce absolute Scope 3 greenhouse gas by collaborating 100% of our global sourcing team will be trained with our suppliers to cut these emissions by 30%. and recertified annually on sustainability.
2020 3,436,945 2020 2019 3,784,557 12% improvement 100% 3,883,945 from base year. of team trained or recertified.
2018 2030 GOAL BASE YEAR 30% REDUCTION
The reduction in Scope 3 emissions is due to a decrease in A tool has been implemented across global sourcing downstream transportation and a slight, but not insignificant, and will be used in category strategies going forward. decline in business travel and employee commuting due to Traning was conducted either in-person or online the COVID-19 pandemic. with 100% of global sourcing members.
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 27 REDUCING OUR ENVIRONMENTAL FOOTPRINT
2030 GOALS FOR ENERGY EFFICIENCY & SOURCING RENEWABLE ENERGY
By 2030: We will be sourcing 100% renewable electricity. Over our goal cycle, we will work to reduce energy use from renewable and non-renewable electricity as well as Purchasing electricity only from renewable sources is other forms of non-renewable energy, including but not a key part of our effort to halve our greenhouse gas limited to natural gas, fuel oil, gasoline, diesel, propane, emissions. Reducing energy use overall through energy and LPG, by 20% from 2018. efficiency improvements in our processes is another important strategy. 2030 Energy Efficiency Goal Progress 2030 Renewable Electricity Goal Progress improvement 11% from base year 51% 4% 2020
2018 2019 2020 2030 GOAL BASE YEAR 20% REDUCTION 50% 2030 GOAL 100% RENEWABLE 2019 The reduction percentage is a result of a decrease in energy 48% use within renewable and non-renewable energy sources 2018 BASE YEAR across our portfolio. Renewable electricity as percentage of purchased electricity.
2020 results driven from the increase in green certifications These two approaches, along with fuel switching and other in our EU facilities, as well as an overall reduction in low- or no-carbon fuels and technologies, will put us on the renewable and non-renewable electricity usage in several of path to eventually eliminating our use of fossil fuels. our businesses globally.
By 2030: 50% reduction in absolute Scope 1 2030 GOAL and Scope 2 greenhouse gas emissions from FOR COMBATING CLIMATE CHANGE 2018 baseline.
improvement Absolute greenhouse 14% from base year gas emissions (metric tons of CO2e) 3,337,667 CO2e 3,685,345 3,876,970
2018 2019 2020 2030 GOAL BASE YEAR 50% REDUCTION
Owens Corning has reduced absolute GHG emissions by 14% from the 2018 base year, in part due to efforts related to our renewable energy strategy as well as energy efficiency and process improvements.
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 28 REDUCING OUR ENVIRONMENTAL FOOTPRINT
By 2030: Reduce the aggregate intensity of our 2030 GOALS emissions of volatile organic compounds (VOCs) and FOR AIR QUALITY MANAGEMENT fine particulate matter (PM2.5) by 50%.
This improvement of 11% is improvement 2030 TARGETS attributable to to equipment operations 11% from base year & PERFORMANCE and maintenance optimization. 0.000000288 50% aggregate intensity reduction in PM 0.000000302 PM 2.5 Emissions Intensity 2.5 emissions (metric tons normalized by 0.000000323 revenue) from 2018 baseline.
2018 2019 2020 2030 GOAL BASE YEAR 50% REDUCTION
2030 TARGETS & PERFORMANCE 12% from base year 50% aggregate intensity reduction in 0.000000289 VOC emissions (metric tons normalized 0.000000311 0.000000329 VOC Emissions Intensity by revenue) from 2018 baseline.
2018 2019 2020 2030 GOAL BASE YEAR 50% REDUCTION
This improvement of 12% is attributable to equipment upgrades and improved efficiencies.
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 29 REDUCING OUR ENVIRONMENTAL FOOTPRINT
2030 GOALS FOR RESPONSIBLE WATER SOURCING & CONSUMPTION
By 2030, we aim to cut in half the amount we take from local water supplies in places where water is limited in quantity or quality. In addition, we intend to ensure that our other facilities remain at the same water intensity as our base year of 2018, or lower when aggregated.
2030 TARGETS Remain flat or reduce aggregate water withdrawal & PERFORMANCE intensity at all remaining sites from 2018 baseline. All Other Sites Water improvement Withdrawal Intensity 12% from base year 50% aggregate intensity reduction of water withdrawal (cubic meters normalized by revenue) in high water-stress sites from 2018 baseline. 0.00112
0.00123 0.00128 High Water-Stress Sites improvement Water Withdrawl Intensity 10% from base year (cubic meters normalized
0.00265 by revenue) 2019 2020 2030 GOAL 2018 0.00290 BASE YEAR 0.00294
Compared to 2018, continued water use efficiencies and fixture upgrades and repairs led to a 10% reduction in intensity at our high water-stress sites, and a 12% 2018 2019 2020 2030 GOAL BASE YEAR 50% Reduction reduction in intensity at our remaining sites.
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 30 REDUCING OUR ENVIRONMENTAL FOOTPRINT
2030 GOALS 2030 TARGETS FOR WASTE MANAGEMENT & PERFORMANCE
By 2030, we will send zero waste to landfill. We have an 50% intensity reduction of waste/byproducts ambitious two-part plan to achieve this. generated from 2018 baseline. ■ By improving efficiency and process design, we will Intensity of Waste/Byproducts Generated achieve a 50% intensity reduction of waste generated. (metric tons normalized by revenue) ■ We will repurpose or recycle 100% of the remaining waste, and whenever possible, we will recycle waste back into our own processes. 0.0000716 13% improvement Our commitment to the U.S. from base year Department of Energy’s Better Plants Challenge to have zero
waste-to-landfill at our U.S. sites by 2030 aligns with our 2018 2019 2020 BASE YEAR 2030 GOAL companywide goal for waste management. 50% REDUCTION
By taking part in this initiative, Owens Corning is not only This 13% improvement reflects 80,251 MT less demonstrating our long-term dedication to sustainable waste/byproduct generated than in 2018, due in waste management, but also committing to sharing our part to increased focus on waste generation and performance data and strategies over the next ten years. operational efficiency improvements across the business.
2030 TARGETS 2030 GOALS & PERFORMANCE FOR PROTECTING BIODIVERSITY After reducing waste intensity by 50% repurpose We will develop biodiversity goals based on an understanding or recycle 100% of remaining waste/byproducts of the full impact of our operations and supply chain on biodiversity by 2025. from 2018 baseline. In 2015, Owens Corning first issued our Biodiversity Statement. Percentage of Waste Repurposed or Recycled In that statement, we made a pledge to: ■ Integrate biodiversity assessments into current and proposed activities. ■ Work with governmental agencies at each of our operating 2020 8% locations to obtain appropriate clearances and information 44% improvement from base year to operate, and if necessary, take appropriate measures to protect the environment, including sensitive ecosystems. 2019 ■ 41% Encourage and support facilities to participate in local initiatives that protect and restore biodiversity. 36% ■ Publicly report on biodiversity impacts and activities in a timely, consistent, and transparent manner. ■ Understand and positively influence our supply chain’s impact on biodiversity. 2018 2030 GOAL BASE YEAR 100% REPURPOSED Using these principles as our guide, we commit to setting a OR RECYCLED science-based biodiversity goal by 2025. In addition, these principles serve as a template as we work to more fully Finding additional outlets and end-use applications for understand our impacts to preserve biodiversity. our byproducts contributed to this 8% improvement. For more information about our initiatives in this area, see our Biodiversity chapter.
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 31 EXPANDING OUR SOCIAL HANDPRINT
2030 GOALS 2030 TARGET FOR COMMUNITY ENGAGEMENT & PERFORMANCE
By 2030: 100% of our employees are actively engaged in Our target is to see 100% of our employees are actively their communities. engaged in their communities.
When our facilities engage with their communities, our Number of Volunteer Experiences* employee volunteers get to see the difference each individual can make. Some of our facilities conduct 10000 multiple community outreach events each year, and we have expanded our global reach through a wide range of initiatives. Through surveys, our employees tell us that working for a company that supports volunteerism 8,401 is very important to them, and we have seen that their participation in Owens Corning-sponsored outreach 8000 strengthens their pride in the company. 7,132 As part of our aspirations for 100% employee community engagement through company-sponsored outreach, we are continuing our efforts to engage facilities in community projects. By 2022, we intend to see 100% facility engagement, which will serve as a foundation for 6000 our broader 2030 goal.
4000
3,247
2000
0 2018 2019 2020
* While our ability to track and measure employee volunteerism improves every year, we are currently only able to track the number of volunteer experiences and not individual volunteers. This number serves as an informative reference as we expand our reach to all global facilities.
The significant drop in volunteer experiences between 2019 and 2020 was due to COVID-19 restrictions. We anticipate that volunteering will return to previous levels as these restrictions are lifted.
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 32 EXPANDING OUR SOCIAL HANDPRINT
2030 GOALS 2030 TARGET FOR LIVING SAFELY & PERFORMANCE
By 2030, we aspire to achieve the following goals: In new or newly acquired sites, achieve a level of ■ Make it impossible for injuries and illnesses to safety at least equivalent to the rest of Owens occur. Ideally, we will do this by designing equipment Corning within one year. and processes to eliminate risk. When an engineering solution isn’t possible, we will continue to evaluate and The sites we acquired in 2018 met this target last year. implement strong rules and policies and ensure use of There were no sites acquired in 2019. appropriate protective equipment to keep people from hazards.
■ In new or newly acquired sites, achieve a level of safety at least equivalent to the rest of Owens 2030 GOALS Corning within one year. FOR HEALTH & WELLNESS ■ Emphasize the elimination of risks that could lead to By 2030: We aspire to eliminate all lifestyle-induced the most serious injuries, rather than concentrating disease and enable the best possible quality of life — on the most frequent ones. where people flourish and are healthier because they We aspire to eliminate all employee, contractor and visitor work for Owens Corning. injuries and occupational illnesses at work and at home. While Owens Corning has a long-standing commitment While complying with privacy laws and local to safety, we recognize there is still work to do as we keep expectations, we will use accessible data, as well as our eye on our 2030 goals. health and behavioral science, to define metrics that will guide our strategies and tactics to achieve our goals. We will be guided by the frameworks established by the U.S. Healthy People 2030 and WHO Global Action Plan, which are based on indicators that measure both health risks and the burden of disease around the world.
2030 GOALS 2030 TARGETS THE EMPLOYEE EXPERIENCE & PERFORMANCE By 2030: In conjunction with our inclusion and diversity goals, Retention we will make continuous improvements in recruiting, retention, training and development, mentorship and sponsorship, 100% retention of high-potential talent between annual professional growth, and employee engagement. talent reviews.
To that end, we have established a number of specific targets. We want to ensure that our top talent remains proud members ■ 100% retention of high-potential talent between annual talent of the Owens Corning team. According to the Society for reviews. Human Resource Managers (SHRM), 100% is the top quartile for outstanding companies, which makes it a suitable goal for ■ Internal fill rate of 75%-85% for leadership roles. Owens Corning.
■ Two “ready now” internal succession candidates for key Percentage of High-Potential Talent Who Stay leadership roles. 2018 ■ Greater than 35% female representation and 22% racially BASELINE 2019 2020 diverse minority representation among successors for identified key roles.
■ >95% of staff indicating they are frequently putting all their effort into their work. 96% 98% 97%
■ 90% staff and 85% primary workers response rate to our two global enterprise surveys.
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 33 EXPANDING OUR SOCIAL HANDPRINT
2030 TARGETS & PERFORMANCE Succession Planning
Internal fill rate of 75%-85% for leadership roles. We aspire to have mid- Diversity in Succession level leader, director, and vice president-level roles filled by current Owens Greater than 35% representation Corning employees, either through a promotion or as a lateral move, as of females and 22% representation a percentage of all internal fills and external hires for these roles. As we of racially diverse minorities as build our diverse talent pipeline, promoting from within strengthens our successors for our identified key roles. inclusive environment as employees see diversity among our leaders.
Percentage Of Leadership Roles Filled From Within Female Percentage of Successor Pool 2018 BASE YEAR 2030 GOAL 73% STAFF 75-85% within range
2019 25% 26% 28% >35% 84% STAFF 2030 GOAL
2020 2018 2019 2020 87% STAFF BASELINE
0% 100%
Ensure two “ready now” internal succession candidates for key leadership roles. We calculate this by taking the number of unique RDM Percentage of Successor Pool candidates who are ready for promotion into the key leadership role divided by the number of succession roles in that business unit. Although strong candidates may be on multiple succession lists, each individual is counted only once within that business unit. 16% 14% 18% >22% 2030 GOAL Succession Pipeline Readiness 2018 2019 2020 2.5 BASELINE
2030 GOAL 2.0 2.0
1.5 2.2 2.2 2.1
1.0
0.5
0.0 2018 2019 2020 (BASELINE)
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 34 EXPANDING OUR SOCIAL HANDPRINT
2030 TARGETS & PERFORMANCE Employee Engagement
>95% of staff indicating that they are frequently putting all their effort into their work.
2017 2018* 2019 2020 Employee Engagement (% of actively 97% 97% 97% 98% engaged employees) % of total salaried employees responding 87% 89% 89% 89%
*2018 is the baseline year for our 2030 goals.
We measure engagement by combining the percentage of people who respond Agree or Strongly Agree on our annual employee engagement survey. This is a common practice among the engagement surveys against which we set our benchmarks.
2018 2019 2020 2030 GOAL
97% 97% 98% >95%
98% responded Agree or Strongly Agree; this figure places us high above the SHRM average of 69% who respond similarly.
90% staff and 85% of primary Percentage of Staff Percentage of Primary Workers 2030 Goals 2030 workers response rate to our two STAFF GOAL global enterprise surveys. 100 90% Response Every other year, our staff is asked to 80 2030 complete a Leadership Capabilities PRIMARY GOAL for Growth survey, and our primary 60 85% Response population is asked to complete an Operation Excellence survey. 40 89% 80% 89% 80% 89% 80% 20
2018 2019 2020 (BASELINE)
Our survey response rate is already well above the 30-40% average response rates for internal employee surveys, and our goal is to increase it even further over the next ten years.
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 35 EXPANDING OUR SOCIAL HANDPRINT
2030 GOALS 2030 TARGETS FOR INCLUSION & DIVERSITY & PERFORMANCE
We seek to attract and develop the industry’s best talent — 22% of our U.S. mid-level leader, director, and vice rich in diversity and highly capable. Once they’ve joined us, president roles are filled by racially diverse minorities. we want to remove barriers and empower all employees RDM percentage of leaders to unlock their full potential. When we succeed, we 2030 GOAL open new pools of talent, which leads to workforce and 22% leadership teams that are connected to and reflective of the communities in which we live, work, and serve. 2018 (BASE YEAR) 13% Our inclusion and diversity aspirations drive our goals here, as well as the targets we have set for the Owens 2019 14% Corning employee experience. The way we hire, support, develop, reward, and engage employees is linked to our culture of appreciation that recognizes the unique value 2020 14% of everyone on the team. We strive to consistently take actions that advance inclusion and diversity both in our workplace and beyond. Our target of 22% is an increase from our prior goals.
Our 2030 targets for inclusion and diversity work in This voluntarily disclosed data is only available for our conjunction with our targets for the employee experience, U.S. workforce. which are described in detail in that chapter. ■ 35% of global mid-level leaders, director, and vice 35% of our global mid-level leader, director, and vice president roles are filled president roles are filled by women. This is an 2030 GOAL increase from our current internal goals, reflecting by females. 35% our determination to continue improving female Female percentage of leaders representation in our senior leadership and leadership succession strength. 2018 (BASEYEAR) 24%
■ 22% of our U.S. mid-level, director, and vice 2019 25% president roles are filled by racially diverse 2020 25% minorities. Like our goal for female representation, this target is an increase from our prior goals. This This target is an increase from our prior goals, reflecting voluntarily disclosed data is only available for our U.S. our determination to continue improving female workforce. representation in our senior leadership and leadership ■ 100% of our people leaders, from first level leaders succession strength. through mid-level leaders, directors, and vice presidents have attended our internal inclusive leadership training by the end of 2021. 100% of people leaders are trained on Inclusive Leadership.
Percentage of People Leaders 2030 GOAL 100%
2018 2019 2020 BASEYEAR 24% 56%
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 36 EXPANDING OUR SOCIAL HANDPRINT
2030 GOALS FOR HUMAN RIGHTS & ETHICS
By 2030: 100% of our suppliers meet our Supplier Code of Conduct requirements, with special attention to human rights issues such as safety and forced labor.
Protecting human rights is part of an overall dedication to ethical behavior at both the individual and the corporate levels. Ethical business practices are central to our approach, and we expect every employee to adhere to our principles. The high value Owens Corning places on integrity is reflected in every aspect of our business, from the quality of the products we make, to our sustainable manufacturing processes, to the overall sense of ethics that define our interactions with business partners and other stakeholders. Our 2030 goal formalizes our long-standing expectation and priority.
2030 TARGETS & PERFORMANCE
Each year, we conduct survey 2030 Target: 100% of our suppliers meet our Supplier Code of assessments of our key suppliers, which Conduct requirements, with special attention to human rights make up 73% of our spending. They issues such as safety and forced labor. are asked to report their own policies 2030 regarding a range of topics, including Percentage of Suppliers GOAL human rights and ethics. Among suppliers who responded to our 2020 survey, 96% reported that they meet the standards set by our Supplier Code of Conduct.
2019: 95% 2020: 96% 100%
2020 Owens Corning Sustainability Report | Overview | Summary & Highlights | 37 STAKEHOLDER ENGAGEMENT & MATERIAL ISSUES
In this chapter: STRATEGY AND APPROACH INITIATIVES MATERIALITY GRIDS
Sustainability means meeting the needs of the present while working to provide a better future. That requires a sharp focus on the issues we face and an emphasis on collaboration, both within our organization and among our various stakeholders. Owens Corning works continuously to identify the material issues that most directly impact our operations, then we develop effective strategies to address them in partnership with a wide range of people and organizations.
Photos submitted by: Cheryl Smith | Granville, Ohio, U.S. Dawes Arboretum, Newark, Ohio, in the fall.
2020 Owens Corning Sustainability Report | Our Approach | Stakeholder Engagement & Material Issuses | 38 Owens Corning is committed to As part of our ongoing processes, we STRATEGY objectively identifying material issues continue to evaluate the impact of any and evaluating their level of impact significant changes to our operations for AND APPROACH across our value chain. In support of potential risks or areas that could have a this, Owens Corning is devoted to the positive or negative impact on our stated assessment of our materiality matrix goals. We have developed a process of on a five-year cycle in accordance stakeholder engagement, reviewing both with AA1000 methodology. Our most internal and external groups. recent Materiality Assessment was conducted in 2019.
Photos submitted by: Michele Mazza | Trophy Club, Texas, U.S. Backyard biodiversity: Gulf fritillary (Agraulis vanillae), also known as the passion butterfly, and caterpillar on passion vine.
2020 Owens Corning Sustainability Report | Our Approach | Stakeholder Engagement & Material Issues | 39 MATERIALITY & ENGAGEMENT INITIATIVES
In 2020, we conducted a refresh of the is committed to physical well-being A sustainability review was conducted 2019 Materiality Assessment, in which for employees — the pandemic is a of the updated topic mapping to we sought to confirm the continued serious reminder of that relevance, and the new ontology, the original topic relevance of the existing Material it is already covered within the existing mapping, and the preliminary matrix Topics and their relative positioning scope of the Health and Wellness topic. data, taking into account the changes within the materiality matrix visuals for As such, no change to the topic scope due to refreshing the data sources, the company as a whole and broken was determined to be necessary. and in the case of the new ontology, out by region. The refresh and review refreshing the underlying aspects Our AI-driven model inputs, wherein process can be described in three of the material topics themselves. specific subtopics are mapped to steps: Through this assessment, it was the company’s sustainability topics, ■ determined that some topics did have Reassess scopes of material topics underwent a complete overhaul as slight movements in their weighting and input data for material topics. the Datamaran AI model was updated due to the new data. This includes to reflect a new ontology. This led to ■ Refresh the AI-driven aspects of a universal slight decrease in the reviews to ensure the desired scopes the assessment to incorporate new relevance of Air Quality Management of the Material Topics were still being industry benchmark, regulatory, from an influence standpoint, as met, and to the addition of two new news, and social data into the well as a universal uptick in ‘Health subtopics within our Material Topics: models. and Wellness’ (particularly in the ■ A subtopic related to public health new ontology when adding in Public ■ A sustainability review to determine risks was added to Health and Health Risks). Despite these minor if the materiality assessment Wellness. This is in response to the movements, the fundamental positions conducted in 2019 continues to rise of COVID-19 and its impact on of the Material Topics, such as where accurately represent the company’s all companies in responding and topics lie in regions of the graph, sustainability strategy, impacts, protecting their workforce. were not significantly changed, and and goals, or if there has been a the Material Topics and their visual significant enough change to the ■ A subtopic was added to representations continue to represent company strategy or model inputs Sustainable Growth to further Owens Corning’s material sustainability to require further revisions. assess customers’ preferences topics accurately. In the review of the Material Topics’ as they relate to sustainable scopes, the topic with the most consumption and consumer discussion around it was Health and activism. This reflects our view that Wellness, due to the pandemic. After Sustainable Growth entails serving both our customers and the planet Photos submitted by: review, the scope of this topic was Florian Albrieux | Chambéry, France considered to still be accurate: While through sustainable production and Florian and family, Mont Granier, France (left). Mont Blanc, France (right). the pandemic is a threat to physical products. well-being for the workforce, this does not change the fact that the company
2020 Owens Corning Sustainability Report | Our Approach | Stakeholder Engagement & Material Issues | 40 Material The following issues serve as Owens Corning’s Material Sustainability Topics. They were selected after close review of the company’s prior work on sustainability and materiality, research into best practices, examination Topics of peer companies within our industry, and interviews with subject matter experts. Each topic is discussed in more detail in the corresponding chapter of this report.
Air Quality Management Community Engagement Inclusion & Diversity
As a manufacturer, we have the Owens Corning strives to contribute to We aim to foster an environment which opportunity to improve our processes thriving communities where we work, represents people with various racial, and, in doing so, reduce our impact on where we live, and where we have ethnic, gender, religious, language, air quality in the areas the potential to make a socioeconomic, family and cultural where we operate. positive impact. backgrounds, as well as people with different lived experiences, lifestyles, Biodiversity Employee Experience and interests, engaged and working Biodiversity describes We believe our employees together to create a fair, healthy, and the variety of life that should grow as people high-performing organization. Inclusion keeps nature’s ecosystems in balance. and as professionals enables employees to feel valued, Owens Corning is committed to while working at Owens Corning. understood, and inspired to bring their preserving and enhancing biodiversity We seek to attract the best people whole selves to work. and the natural habitats that surround and provide every employee with the Living Safely our operations around the world. We opportunity to develop and reach their seek to understand and manage the full potential, in a work environment full As a company, we are biodiversity impact of all our own of both challenge and optimism. committed to promoting operations, as well as gain insights safety for all. We believe that Energy Efficiency & Sourcing into the impacts of our supply chain on all accidents are preventable, Renewable Energy biodiversity. at work and at home. We are determined to Circular Economy Product Innovation & Stewardship continue decreasing A circular economy is one in which our dependence on We utilize innovation and the principles virgin raw materials, waste, energy, fossil fuels, both by of product stewardship to ensure that and emissions are minimized through improving efficiency in our products are fundamentally safe intelligent design, renewable and our operations and by and sustainable in their design, creation, recycled inputs, energy-efficient meeting more of our use, and eventual disposal. We also production, and enabling the energy demands through seek to drive continual improvement recyclability of products at the end of renewable sources. in the sustainability of the products their life cycles. We are committed to we offer, both in their creation and in Health & Wellness supporting the global their ability to help the world meet its transformation to a We promote a healthy and tobacco- sustainability needs. circular economy. free lifestyle for all our employees Responsible Water Sourcing & and their families. We are committed Combating Climate Consumption to ending lifestyle-induced disease in Change our employees, as well as promoting We are committed to using water in Owens Corning understands the mental, physical, and financial well- an intelligent, sustainable way across importance of climate action, and being. the company. We operate in a number we take our role in the fight against of different regions across the world, Human Rights climate change seriously. We have some of which are in areas of higher embraced a Science-Based Target Owens Corning has the water stress than others. Through for our greenhouse gas emissions in privilege of working with people all over reuse, recycling, and efficiency, we line with the most stringent standard, the world. We believe that this privilege strive to consume less water in our designed to limit global warming to 1.5 comes with the responsibility to treat all operations. We also degrees Celsius. We also have a target people with dignity and respect and to must understand to reduce our Scope 3 emissions, protect their fundamental rights. We are where our water use is representing emissions from our committed to being a leader in setting most impactful, to set supply chain. and upholding the highest standards for informed targets for safeguarding human rights. water reduction.
2020 Owens Corning Sustainability Report | Our Approach | Stakeholder Engagement & Material Issues | 41 Supply Chain Sustainability Waste Management
We strive to hold our suppliers to Our ambition is to mitigate the same high standards we hold the waste that we produce ourselves. We see our suppliers by redesigning the process as key contributors to our overall to avoid its creation, then sustainability vision, and we repurposing it whenever Our Material Topics represent seek to ensure all our suppliers possible. We are committed to our stakeholders’ priorities with fully comply with all applicable redefining waste, continuously consideration of our impacts, legislation, regulations, and legal looking for beneficial uses and they’re informed by the UN’s requirements on human rights, labor, for our byproducts and other 2030 Sustainable Development the environment, anticorruption, and waste materials. Goals. This report is organized trade and customs. by these topics to show how our efforts, our goals, and our stakeholders’ priorities align.
Stakeholder Owens Corning interacts with a wide range of stakeholders on a regular basis. These stakeholders range from investors, customers, suppliers, community members, trade associations, and NGOs, to name a Engagement few. Through engagements we seek to accurately and transparently discuss our efforts, understand concerns, and work together for solutions.
Trade and Governmental Potential Customers Suppliers NGOs Employees Investors Industry Media Communities Agencies Employees Associations
Social media ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔
Website ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ information
Meetings and ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ conference calls
Conferences, speaking ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ engagements
Surveys, focus ✔ ✔ ✔ groups
Visits and account ✔ ✔ management
Education/ ✔ ✔ ✔ ✔ ✔ summits
Internal ✔ communications
Volunteer and community ✔ ✔ ✔ ✔ ✔ projects Memberships, sponsorship, board ✔ ✔ ✔ service, or project support 1-800-GETPINK and ✔ ✔ ✔ GETTECH@ owenscorning.com
2020 Owens Corning Sustainability Report | Our Approach | Stakeholder Engagement & Material Issues | 42 Our Materiality Matrices are structured we have developed grids that reflect OWENS CORNING’S to adhere to GRI standards. In contrast regional materiality concerns. with traditional matrices, this type MATERIALITY GRIDS The completed matrices reflect the of matrix reflects the significance of following regions: environmental, social, and governance (ESG) impacts to the company, as well ■ Americas as the influence a Material Topic has ■ Asia Pacific on stakeholders in their assessments and decision-making. In addition, ■ Europe
Global Materiality Product Sustainability Environmental Sustainability Social Sustainability
COMBATING ENERGY EFFICIENCY 0.60 CLIMATE CHANGE & SOURCING RENEWABLE ENERGY 0.55 HEALTH & 0.50 WELLNESS LIVING PRODUCT INNOVATION SAFELY 0.45 AIR QUALITY & STEWARDSHIP MANAGEMENT SUSTAINABLE GROWTH 0.40 CIRCULAR ECONOMY HUMAN RIGHTS 0.35 WASTE MANAGEMENT
0.30 RESPONSIBLE WATER EMPLOYEE SOURCING & CONSUMPTION EXPERIENCE
0.25 INCLUSION & BIODIVERSITY COMMUNITY DIVERSITY 0.20 ENGAGEMENT SUPPLY CHAIN INFLUENCE ON STAKEHOLDERS ON INFLUENCE SUSTAINABILITY 0.15
0.10 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 0.55 RELEVANCE TO COMPANY ENVIRONMENTAL, ECONOMIC, AND SOCIAL IMPACTS
Regional Assessment Results | Americas Materiality
0.60 COMBATING ENERGY EFFICIENCY SUSTAINABLE CLIMATE CHANGE & SOURCING 0.55 GROWTH RENEWABLE ENERGY
WASTE MANAGEMENT 0.50 HEALTH & WELLNESS LIVING 0.45 PRODUCT INNOVATION & STEWARDSHIP SAFELY HUMAN 0.40 RIGHTS EMPLOYEE RESPONSIBLE WATER 0.35 EXPERIENCE SOURCING & CONSUMPTION INCLUSION & AIR QUALITY 0.30 DIVERSITY MANAGEMENT CIRCULAR ECONOMY 0.25 SUPPLY CHAIN BIODIVERSITY 0.20 COMMUNITY SUSTAINABILITY ENGAGEMENT INFLUENCE ON STAKEHOLDERS ON INFLUENCE 0.15
0.10 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 0.55 RELEVANCE TO COMPANY ENVIRONMENTAL, ECONOMIC, AND SOCIAL IMPACTS
2020 Owens Corning Sustainability Report | Our Approach | Stakeholder Engagement & Material Issues | 43 Regional Assessment Results | Asia Pacific Materiality
0.60
0.55 ENERGY EFFICIENCY & SOURCING 0.50 RENEWABLE ENERGY COMBATING PRODUCT INNOVATION CLIMATE CHANGE LIVING & STEWARDSHIP 0.45 SAFELY
0.40 HUMAN SUSTAINABLE RIGHTS SUPPLY CHAIN GROWTH SUSTAINABILITY 0.35 RESPONSIBLE WATER SOURCING & CIRCULAR ECONOMY CONSUMPTION 0.30 HEALTH & WELLNESS INCLUSION & EMPLOYEE DIVERSITY 0.25 EXPERIENCE
INFLUENCE ON STAKEHOLDERS ON INFLUENCE BIODIVERSITY 0.20 WASTE MANAGEMENT AIR QUALITY COMMUNITY MANAGEMENT 0.15 ENGAGEMENT
0.10 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 0.55
RELEVANCE TO COMPANY ENVIRONMENTAL, ECONOMIC, AND SOCIAL IMPACTS
Regional Assessment Results | Europe Materiality
0.80
COMBATING ENERGEY EFFICIENCY & CLIMATE CHANGE 0.70 SOURCING RENEWABLE ENERGY
0.60 CIRCULAR PRODUCT ECONOMY HUMAN LIVING SAFELY INNOVATION & 0.50 RIGHTS RESPONSIBLE STEWARDSHIP WATER SOURCING & CONSUMPTION 0.40 INCLUSION & DIVERSITY WASTE MANAGEMENT HEALTH & WELLNESS 0.30 EMPLOYEE EXPERIENCE
BIODIVERSITY SUSTAINABLE
INFLUENCE ON STAKEHOLDERS ON INFLUENCE 0.20 GROWTH SUPPLY CHAIN COMMUNITY SUSTAINABILITY ENGAGEMENT AIR QUALITY 0.10 MANAGEMENT
0.0 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 0.55 0.60
RELEVANCE TO COMPANY ENVIRONMENTAL, ECONOMIC, AND SOCIAL IMPACTS
2020 Owens Corning Sustainability Report | Our Approach | Stakeholder Engagement & Material Issues | 44 UNITED NATIONS The United Nations’ Sustainable Development Goals (SDGs) were established in 2015 as a framework for SUSTAINABLE governments, businesses, and individuals to use in addressing our society’s most pressing issues. By setting our collective sights on these goals, we can help reduce inequality, fight climate change, and more. As DEVELOPMENT Owens Corning has set its own sustainability goals, we have looked to the UN SDGs for guidance and insight. GOALS ALIGNMENT The 17 UN SDGs are listed below.
NO POVERTY 3 ZERO HUNGER 3 GOOD HEALTH AND 1 End poverty in all its End hunger, achieve food WELL-BEING forms everywhere. security and improved Ensure healthy lives and nutrition, and promote promote well-being for sustainable agriculture. all at all ages.
QUALITY EDUCATION 2 GENDER EQUALITY 1 CLEAN WATER AND 1 Ensure inclusive and Achieve gender equality SANITATION equitable quality education and empower all Ensure availability and promote lifelong learning women and girls. and sustainable opportunities for all. management of water and sanitation for all.
AFFORDABLE AND DECENT WORK AND INDUSTRY, INNOVATION, CLEAN ENERGY 1 ECONOMIC GROWTH 1 AND INFRASTRUCTURE 1 Ensure access to Promote sustained, inclusive, Build resilient affordable, reliable, and sustainable economic infrastructure, promote sustainable, and modern growth, full and productive inclusive and sustainable energy for all. employment and decent industrialization, and work for all. foster innovation.
REDUCED SUSTAINABLE CITIES RESPONSIBLE INEQUALITIES 2 AND COMMUNITIES 2 CONSUMPTION 1 Reduce inequality within Make cities and human AND PRODUCTION and among countries. settlements inclusive, safe, Ensure sustainable resilient, and sustainable. consumption and production patterns.
CLIMATE ACTION 1 LIFE BELOW WATER 3 LIFE ON LAND 2 Take urgent action to Conserve and sustainably Protect, restore, and combat climate change use the oceans, seas, promote sustainable use and its impacts. and marine resources for of terrestrial ecosystems, sustainable development. sustainably manage forests, combat desertification, halt and reverse land PEACE, JUSTICE, AND PARTNERSHIPS FOR degradation, and halt STRONG INSTITUTIONS 2 THE GOALS 1 biodiversity loss. Promote peaceful and inclusive Strengthen the means societies for sustainable of implementation development, provide access to and revitalize the justice for all, and build effective, global partnership for accountable, and inclusive sustainable development. institutions at all levels.
1 SDGs for which we believe we have the most direct impact or influence through our core business competencies and which are also material to our business. 2 SDGs for which believe we have a lesser, and less direct, impact but which nonetheless reflect our values, policies, and outreach work. These may also have a significant impact on stakeholders’ decisions and perceptions about our company. 3 SDGs for which we perceive the least direct influence or impact, although these SDGs do have some overlap with others, our sustainability efforts, and our business. We do still measure and report on some of the indicators. Definitions taken from the Global Goals for Sustainable Development website.
2020 Owens Corning Sustainability Report | Our Approach | UN SDG Alignment | 45 Owens Corning’s overall UN SDGS & OUR commitment to sustainability includes partnerships 2030 GOALS and collaborations with a wide range of organizations, governmental agencies, NGOs, and industry associations. UN SDGs and Our Sustainability Pillars In addition, we are proud to participate in the The UN Sustainable Development Goals (SDGs) are an UN Global Compact, which has set forth ten important consideration in our assessment of materiality. guiding principles related to human rights, labor, We have identified specific areas of alignment between our environmental issues, and anti-corruption. material topics, our 2030 sustainability goals, and the SDGs, shown in the table that follows. EXPANDING OUR PRODUCT HANDPRINT Guiding Aspiration: Double the positive impact of our products.
MATERIAL TOPIC EXPLANATION 2030 GOALS MOST RELEVANT SDGs
A circular economy is one in which Establish viable circular economy business virgin raw materials, waste, energy, models involving our materials and how and emissions are minimized through they are used by collaborating up and intelligent design, renewable and down the supply chain with customers, recyclable input, energy-efficient suppliers, communities, academics, policy production, and enabling the recycling of makers, government entities, and other CIRCULAR products at the end of their life cycles. We organizations. are committed to supporting the global Increase recycled content and decrease ECONOMY transformation to a circular economy. virgin raw materials used in our products. Develop technical solutions and practical business models for our product materials and packaging to continuously be used for beneficial purposes even after they are no longer used for the original purpose. We utilize innovation in the principles of product stewardship to ensure that our products are fundamentally safe and PRODUCT sustainable in their design, creation use, Offer the most recognized and preferred INNOVATION & and eventual end of life. We also seek products for sustainability. STEWARDSHIP to drive continual improvement in the sustainability of the products we offer, both in their creation and in their ability to help the world meet its sustainability needs.
We strive to hold our suppliers to the same Collaborate with our suppliers to increase high standards we hold ourselves. We see transparency around the raw materials we our suppliers as a key contributor to our use in our products. overall sustainability vision and seek to Reduce the greenhouse gas emissions ensure all our suppliers fully comply with related to our purchased materials and all applicable legislation, regulations, and SUPPLY CHAIN services by collaborating with our suppliers legal requirements on human rights, labor, to cut these emissions by 30%. Our target SUSTAINABILITY the environment, anti-corruption, and trade has been validated and approved by the and customs. Science-Based Target Initiative. 100% of our global sourcing team will be trained and recertified annually on sustainability. As a company with sustainability at our core, we aim to align our company’s growth with sustainable trends and positive global impact. We achieve sustainable growth Design our products for recycling or reuse SUSTAINABLE through serving our customers, fulfilling to optimize the impact of our products GROWTH their need for quality, sustainable product. over their entire life cycle from raw We are working to support the global materials to disposal. transition to a sustainable economy by being a financially successful company with sustainability at its core.
2020 Owens Corning Sustainability Report | Our Approach | UN SDG Alignment | 46 REDUCING OUR ENVIRONMENTAL FOOTPRINT Guiding Aspiration: Cut the negative impact of our operations in half.
MATERIAL TOPIC EXPLANATION 2030 GOALS MOST RELEVANT SDGs As a manufacturer, we have the opportunity Reduce the intensity of our emissions of AIR QUALITY to improve our processes and in doing so volatile organic compounds (VOCs) and fine MANAGEMENT reduce our impact on air quality in the areas particulate matter (PM2.5) by 50%. where we operate.
Owens Corning understands the importance Achieve 50% reduction in absolute Scope of climate action and we take our role in the 1 and Scope 2 greenhouse gas emissions fight against climate change seriously. We from 2018 baseline, in line with what is have an embraced a Science-Based Target needed to limit global warming to 1.5° C. COMBATING for Greenhouse Gas Emissions in line with Our target has been validated and approved CLIMATE CHANGE the most stringent standard, designed to by the Science-Based Target Initiative. limit global warming to 1.5° Celsius. We also have a target to reduce our Scope 3 emissions, representing emissions from our supply chain. Our ambition is to mitigate the waste that Send zero waste to landfill by cutting in we produce by redesigning the process half the amount of waste we generate and WASTE to avoid its creation, then repurposing it recycling the rest. whenever possible. We are committed to MANAGEMENT redefining waste, continuously looking for beneficial uses for our byproducts and other waste materials. We are determined to continue decreasing By 2030, we will be sourcing 100% our dependence on fossil fuels, both by renewable electricity. Switching to 100% ENERGY improving efficiency in our operations and renewable electricity and purchasing energy EFFICIENCY by meeting more of our energy demands only from renewable sources are essential through renewable sources. to our effort to halve our greenhouse gas AND SOURCING emissions. We will also work to reduce RENEWABLE emissions from our processes and improve ENERGY energy efficiency. This will put us on the path to eventually eliminating our use of fossil fuels. We are committed to using water in an Cut in half the amount we take from the intelligent, sustainable way across the local water supply in places where water company. We operate in a number of is limited in quantity or quality, while other RESPONSIBLE different regions across the world, some of facilities remain at the same water intensity WATER which are in areas of higher water stress as our base year of 2018 or lower when SOURCING AND than others. Through reuse, recycling, and aggregated. CONSUMPTION efficiency, we strive to consume less water in our operations. We also must understand where our water use is most impactful, to set informed targets for water reduction. Biodiversity describes the variety of life Develop biodiversity goals based on an that keep nature’s ecosystem in balance. understanding of the full impact of our Owens Corning is committed to preserving operations and supply chain on biodiversity and enhancing biodiversity and the natural by 2025. PROTECTING habitats that surround our operations BIODIVERSITY around the world. We seek to understand and manage the biodiversity impact of all our own operations, as well as gain insights into the impacts of our supply chain on biodiversity.
2020 Owens Corning Sustainability Report | Our Approach | UN SDG Alignment | 47 EXPANDING OUR SOCIAL HANDPRINT Guiding Aspiration: Eliminate injuries and improve the quality of life for our employees and their families. Have a positive impact on our communities. Advance our inclusion and diversity.
MATERIAL TOPIC EXPLANATION 2030 GOALS MOST RELEVANT SDGs Owens Corning strives to contribute to 100% of our employees are actively thriving communities, where we work, engaged in their communities. COMMUNITY where we live, and where we have the potential to make a positive impact. ENGAGEMENT
As a company, we are committed to Make it impossible for injuries and illnesses promoting safety for all. We believe that to occur. Ideally, we will do this by designing all accidents are preventable, at work and equipment and processes to eliminate risk. at home. When an engineering solution is not possible, we will continue to evaluate and implement strong rules and policies and ensure use of appropriate protective equipment to keep LIVING SAFELY people from hazards. In new or newly acquired sites, achieve a level of safety at least equivalent to the rest of Owens Corning within one year. Emphasize the elimination of risks that could lead to the most serious injuries, rather than concentrating on the most frequent ones.
We promote a healthy and tobacco-free We aspire to eliminate all lifestyle-induced lifestyle for all our employees and their disease and enable the best possible HEALTH AND families. We are committed to ending quality of life — where people flourish WELLNESS lifestyle-induced disease in our employees and are healthier because they work for and promoting mental, physical, and Owens Corning. financial well-being.
We aim to foster an inclusive and diverse Ensure pay equity through periodic third-party environment, one which represents a range reviews and ongoing internal analytics. of people with various racial, ethnic, gender, Build and support diverse workforce and religious, language, socioeconomic, and leadership teams that reflect the communities cultural backgrounds and various lifestyles, in which we live, work, and serve. experience, and interests, engaged and INCLUSION AND working together to create a fair, healthy, Retain diverse candidates proportional to DIVERSITY and high-performing organization. the communities in which we live, work, Inclusion enables employees to feel valued, and serve. understood, and inspired to bring their Increase internal succession with an whole selves to work. emphasis on expanding the number of female candidates, underrepresented minorities, and representation of cultures from around the world. Owens Corning has the privilege of 100% of our suppliers meet our Supplier working with people all over the world. We Code of Conduct requirements, with special believe that this privilege comes with the attention to human rights issues such as HUMAN RIGHTS responsibility to treat all people with dignity safety and forced labor. & ETHICS and respect and to protect their fundamental rights. We are committed in being a leader in setting and upholding the highest standards for safeguarding human rights. We believe our employees should grow as Make continuous improvements people and as professionals while working in recruiting, retention, training and EMPLOYEE at Owens Corning. We seek to attract the development, mentorship and sponsorship, best people and provide every employee professional growth, and employee EXPERIENCE with the opportunity to develop and reach engagement. their full potential, in a work environment full of both challenge and optimism.
2020 Owens Corning Sustainability Report | Our Approach | UN SDG Alignment | 48 Highlights on progress toward the nine SDGs where we believe we have the THE BETTER PLANTS most direct impact are outlined below, and they are discussed more fully CHALLENGE throughout the report. The Better Plants Program, part of the U.S. Department of Energy’s Better Buildings Initiative, is composed of over 235 companies that have adopted Good Health and Well- ambitious goals to conserve energy, reduce water usage, and cut waste. As Being the DOE seeks to significantly advance energy efficiency in commercial and With our commitment industrial buildings across the country, they have created the Better Buildings to zero injuries and our Challenge, as well as its industrial counterpart, the Better Plants Challenge. Healthy Living platform, we have goals Owens Corning was one of four companies to sign on to the Better Plants or actions for many of the indicators Challenge in 2020. for SDG #3. Challenge partners join other industry and community leaders to create and SDG Target 3.4 | By 2030, reduce by share real solutions that reduce energy consumption, create jobs, and save one-third premature mortality from money. The Challenge requires an additional commitment from partners to non-communicable diseases (NCDs) share their corporate data, solutions, and successes in the form of showcase through prevention and treatment, and projects and implementation models to help guide other industrial companies promote mental health and well-being. with implementing real-world energy solutions in their facilities. In return, partners gain enhanced recognition from the Department of Energy. Our aggregated data found a high correlation between U.S. employees Our Challenge Partner targets for U.S. sites are as follows: who participate in our Healthy Living ■ 12% energy efficiency improvement by 2025. programs and reduction in our disease burden. In 2020, we continued ■ 15% water withdrawal intensity improvement by 2030. to expand implementation of our ■ Zero waste-to-landfill by 2030. Healthy Living platform internationally, particularly in Latin America, Europe, To ensure uniformity with reporting, we will be using 2018 as our baseline for and Asia Pacific. All three regions are these targets. creating regionally appropriate, fit-for- According to the Department of Energy, partners in this initiative have together purpose systems parallel to those we saved more than $8 billion in cumulative energy costs and 1.7 quadrillion British have in the U.S. to drive achievement thermal units (BTUs) since the program began. More information about these in the six pillars. In addition, we targets and their relevance to our overall sustainability goals can be found in continued to apply the principles of their related chapters. Total Productive Maintenance (TPM) to issues related to health and well-being.
SDG Target 3.5 | Strengthen prevention and treatment of substance abuse, including narcotic drug abuse and SDG Target 3.8 | Achieve universal SDG Target 3.9 | By 2030 harmful use of alcohol. health care coverage (UHC), including substantially reduce the number of In response to the U.S. opioid crisis, financial risk protection, access to deaths and illnesses from hazardous Owens Corning’s policy limits short- quality essential health care services, chemicals and air, water, and soil acting opioid prescriptions to a three- and access to safe, effective, quality, pollution and contamination. and affordable essential medicines day supply. This year, we saw a 12.3% We made progress on our beyond- and vaccines for all. drop in opioid pills dispensed from compliance goals to reduce our 2019. Since the three-day limit was We have increased engagement in the emissions footprint worldwide, and implemented, the number of pills Healthy Living platform internationally. with our product stewardship process dispensed (through Owens Corning’s We have created a global strategy to that ensures that all products (new U.S. health plans) has dropped by 40.6%. help us achieve our 2030 goals and and existing) are safe to make, use, SDG Target 3.6 | By 2020, halve support our employees in achieving perform as intended, and can be global deaths and injuries from road and maintaining excellent quality of life. disposed of responsibly. traffic accidents. Among our first priorities is to develop a global measurement and reporting We continue our policy banning cell process that can be used to track phone use to conduct company employees’ health data in all regions. business and encourage employees to do so with families to prevent distracted driving.
2020 Owens Corning Sustainability Report | Our Approach | UN SDG Alignment | 49 SDG Target 3.A | Strengthen SDG Target 5.2 | Eliminate all forms SDG Target | 6.6 By 2020, protect and implementation of the Framework of violence against all women and restore water-related ecosystems, Convention on Tobacco Framework girls in the public and private spheres, including mountains, forests, Convention on Tobacco Control in all including trafficking and sexual and wetlands, rivers, aquifers and lakes. countries, as appropriate. other types of exploitation. Owens Corning has begun the process Owens Corning offers many resources to We continue to strengthen our of deepening our understanding of our employees, including on-site group processes to ensure our human rights the biodiversity that exists in the coaching, small group discussions, policy is implemented worldwide. areas where we maintain a presence. nicotine replacement therapy, and Through this work, we will be better SDG Target 5.5 | Ensure women’s full medications, and we are approaching our equipped to discover how we can and effective participation and equal goal of being 100% tobacco-free. As of preserve and enhance biodiversity and opportunities for leadership at all the end of 2020, 99% of our employees the natural habitats that surround our levels of decision-making in political, work in tobacco-free facilities. operations around the world. We will economic and public life. develop biodiversity goals based on Gender Equality Our Women’s Inclusion Network an understanding of the full impact of We measure gender (WIN) made significant strides our operations and supply chain on diversity across our toward its mission to attract, retain, biodiversity by 2025. workforce, and our and develop outstanding women SDG Target | 6.B Support and diversity efforts include programs for through professional development, strengthen the participation of local ensuring equity and increasing the personal development, and community communities in improving water and participation of women in our business. involvement. In 2020, the group sanitation management. focused on helping members develop SDG Target 5.1 | End all forms of strategic, financial, and business At Owens Corning, our people and discrimination against all women and acumen through events such as a products make the world a better place girls everywhere. series that examined the process — and we put that belief into practice Owens Corning has conducted equal behind creating a long-range plan. through our many community outreach pay reviews every other year for the last initiatives. We also look for projects Women hold 26% of management decade. These reviews include a robust that empower our employees to take positions in Owens Corning, and statistical analysis of pay equity across an active role in their communities. currently there are three women all its U.S. salaried (and most of its For example, our community efforts serving as directors on our board, global salaried) workforce. Consistent in India are based on a thorough study representing 30%. with the company’s commitment to that United Way Mumbai conducted “equal pay for equal work,” pay gaps Clean Water and on villages’ most urgent needs. The that this review indicates cannot Sanitation report pointed specifically to health, be explained through experience, education, and access to safe drinking We exceeded our 2020 performance, job level, or related factors water. To help address their needs, goal to reduce our water are remediated through pay increases. Owens Corning has set up sanitation withdrawal weighted-average intensity Further, Owens Corning does not solicit and clean water stations, benefiting (cubic meters of water withdrawn applicant pay data, to avoid inheriting migrant children attending schools per unit of product produced). Owens any pay bias of prior employers. In located around our plants. Corning has made CDP’s Water A List addition to biannual external reviews, we for the second year in a row. Affordable and Clean conduct routine internal compensation Energy assessments. In 2020, we continued our SDG Target 6.4 | By 2030, substantially work with a third-party group, Mercer, to increase water-use efficiency across We exceeded our 2020 help us look at the issues surrounding all sectors and ensure sustainable goal to reduce our primary pay equity in a way that better reflects withdrawals and supply of freshwater energy weighted-average intensity the current landscape regarding to address water scarcity and (MWh of energy used per unit of equitability issues. substantially reduce the number of product produced). For the fifth year in people suffering from water scarcity. a row, Owens Corning earned spot on the CDP’s “Climate A List.” By 2030, we aim to cut in half the amount we take from local water supplies in places where water is limited in quantity or quality. In addition, we intend to ensure that our other facilities remain at the same water intensity as our base year of 2018, or lower when aggregated.
2020 Owens Corning Sustainability Report | Our Approach | UN SDG Alignment | 50 SDG Target 7.2 | By 2030, increase SDG Target 8.2 | SDG Target 8.4 | Improve substantially the share of renewable Achieve higher levels of progressively, through 2030, energy in the global energy mix. economic productivity global resource efficiency in through diversification, consumption and production and SDG Target 7.3 | By 2030, double of technological upgrading and endeavor to decouple economic the global rate of improvement in innovation, including through a focus growth from environmental energy efficiency. on high-value added and labour- degradation, in accordance with We continue to expand efforts to intensive sectors. the 10-year framework of programs reduce our primary energy weighted- on sustainable consumption and In 2019, we expanded our average intensity across our production, with developed countries Thermafiber® mineral wool portfolio. operations. In 2020, our primary energy taking the lead. Patent-pending technology enables weighted-average intensity was 3.72, lighter-weight products to deliver In addition to comprehensive goals a 29% reduction from 2010. Overall, mechanical performance exceeding and programs for material, water, our reduction can be attributed to that of higher-weight/higher-density and energy conservation, we are on the conservation measures we have products. The innovation was inspired a “march to zero” — zero accidents, taken to significantly reduce energy by building science that shows greater zero defects, zero losses – through consumption and improve plant density does not necessarily correlate a systematic approach called Total efficiency. Since 2006, Owens Corning to improved mechanical performance. Productive Maintenance. has implemented over 1,200 energy-use Reduced shipping weight saves fuel, reduction projects in its facilities across SDG Target 8.5 | By 2030, achieve and the lighter product is easier for the globe, which together have reduced full and productive employment contractors to handle safely. usage by more than 1.42 million MWh. and decent work for all women and Additionally, we offer an extensive In 2020, Owens Corning launched men, including for young people and portfolio of products that can help FOAMULAR® NGX™ (Next Generation persons with disabilities, and equal our customers save energy and avoid Extruded) insulation line, which pay for work of equal value. emissions. In 2020, 62% of our revenue features a new, proprietary blowing A consistent philosophy in the design, came from this category of products. agent that delivers a 90% reduction application, and administration of in global warming potential (GWP) SDG Target 7.A | By 2030, enhance total compensation programs globally compared to legacy FOAMULAR® international cooperation to facilitate ensures equitable treatment for all insulation, and is optimized to access to clean energy research employees independent of gender, age, demonstrate a greater than 80% and technology, including renewable or minority status, and we conduct reduction in embodied carbon. With energy, energy efficiency and biannual pay reviews to ensure our this advancement, we are able to advanced and cleaner fossil fuel employees are paid equitably. offer customers another way to technology, and promote investment meet local regulations — and their SDG Target 8.7 | Take immediate and in energy infrastructure and clean own sustainability goals — with no effective measures to eradicate forced energy technology. diminishment in product performance. labor, end modern slavery and human In 2020, approximately 51% of our trafficking and secure the prohibition The Paroc® NaturaTM line of stone wool electricity across our portfolio globally and elimination of the worst forms of insulation uses low-carbon melting came from renewable sources, such as child labor, including recruitment and technology, green electricity, recycled wind, hydro, solar, and geothermal. use of child soldiers, and by 2025 end waste materials, and new technologies child labor in all its forms. Decent Work and Economic Growth to reduce the amount of virgin raw material used and offer a product SDG Target 8.8 | Protect labor Our vision for a sustainable enterprise with very low CO2 emissions. The rights and promote safe and secure includes attention to environmental remaining emissions are compensated working environments for all workers, and social progress, human rights, and by reducing CO2 emissions through including migrant workers, in an employee experience that leads the purchase of offsets in a Verified particular women migrants, and those employees to want to recommend the Emissions Reduction Scheme. The in precarious employment company to a friend. new product line, which is certified as carbon-neutral by a third-party, offers In 2017, to further align our efforts fire-safe, moisture-proof, durable with the UN SDGs, we added human insulation for the building industry, rights to our materiality matrix and became available in Finland, Norway, have devoted a section of this report and Sweden at the beginning of 2021. to our commitment and progress. We continue to strengthen our processes to ensure our human rights policy is implemented worldwide.
2020 Owens Corning Sustainability Report | Our Approach | UN SDG Alignment | 51 Industry, Innovation and SDG Target 9.5 Enhance scientific SDG Target 12.5 | By 2030 Infrastructure research, upgrade the technological substantially reduce waste generation capabilities of industrial sectors through prevention, reduction, All three Owens Corning in all countries, in particular recycling and reuse. businesses (Composites, developing countries, including, by Insulation, and Roofing) engage in Waste-to-landfill (WTL) reduction has 2030, encouraging innovation and research and innovation to deliver been one of our biggest challenges. substantially increasing the number of products and services that bring Compared to 2010, we are currently research and development workers per performance and durability to at a 27% reduction in WTL weighted- 1 million people and public and private infrastructure and the built environment. average intensity. Our overall diversion research and development spending. rate for 2020 improved to 65%, SDG Target 9.1 | Develop quality, We have established science and compared to 63% in 2019 and 57% in reliable, sustainable and resilient technology centers in key markets 2010. We continue to work toward our infrastructure, including regional and worldwide. Our 11 global S&T centers goal with support from our global WTL transborder infrastructure, to support employ scientists and engineers with leader, who drives WTL reductions economic development and human expertise in a wide range of disciplines, and fosters relationships with internal well-being, with a focus on affordable including glass science, chemical and external stakeholders across all and equitable access for all. engineering, fundamental chemistry, businesses. SDG Target 9.4 | By 2030, upgrade and much more. Our S&T organization SDG Target 12.6 | Encourage infrastructure and retrofit industries includes close to 600 people. companies, especially large and to make them sustainable, with Responsible Consumption transnational companies to adopt increased resource-use efficiency and Production sustainable practices and to integrate and greater adoption of clean and sustainability information into their environmentally sound technologies The sustainability reporting cycle. and industrial processes, with all practices we have in countries taking action in accordance place for our operations and supply We disclose sustainability performance with their respective capabilities. chain reflect the attention to product on a number of different platforms. sustainability and reducing our Due to timing and data collection Regarding both 9.1 and 9.4, we develop manufacturing footprint. requirements, we have not yet materials and systems that create published simultaneous financial resilient buildings and infrastructure. SDG Target 12.4 | By 2020, and sustainability reports, but we are We currently have 13 products that achieve environmentally sound considering what we would need to do have received “Made with 100% Wind- management of chemicals and all to make that possible. Powered Electricity and Reduced wastes throughout their life cycle in Embodied Carbon” certification. These accordance with agreed international SDG Target 12.7 | Promote public products give commercial architects frameworks and significantly reduce procurement practices that are and specifiers the option of low-carbon their release to air, water and soil to sustainable in accordance with products to build greener structures. minimize adverse impacts on human national policies and priorities. health and the environment. We offer glass-fiber reinforced bars We believe suppliers are critical (rebar), which are corrosion-resistant In 2020, our EMS for approximately partners in our sustainability efforts. and helps extend the life of bridges. 36% of our locations was certified We discuss our commitments, goals, to ISO 14001, which accounts for and expectations in the Supply Chain The Paroc® NaturaTM line of stone wool 50% of our employees. Additionally, Sustainability chapter in this report. insulation uses low-carbon melting approximately 47% of our locations technology, green electricity, recycled were certified to the ISO 9001 standard waste materials, and new technologies for a QMS (Quality Management to reduce the amount of virgin raw System) in 2020, representing material used and offer a product approximately 61% of our employees. with very low CO2 emissions. The remaining emissions are compensated We conduct life cycle assessments by reducing CO2 emissions through (LCAs) according to the ISO 14040, the purchase of offsets in a Verified 14044, and 14025, as well as ISO Emissions Reduction Scheme. The 21930 and EN 15804, followed by a new product line, which is certified as third-party review and verification of carbon-neutral by a third-party, offers appropriate product category rules. We fire-safe, moisture-proof, durable have conducted full LCAs on 81% of insulation for the building industry, our products. became available in Finland, Norway, and Sweden at the beginning of 2021.
2020 Owens Corning Sustainability Report | Our Approach | UN SDG Alignment | 52 Climate Action Partnerships for the Goals SDG Target | 17.17 Encourage and promote effective public, public- To reduce the impact Collaboration within our private and civil society partnerships, of our operations and supply chain is key to building on the experience and activities on global climate meeting our ambitious resourcing strategies of partnerships. change, we focus on accelerating 2030 goals. It will require the energy efficiency improvements, participation of every stakeholder Today, Owens Corning is taking every renewable energy deployment, and in our value chain, from suppliers to opportunity to transform our operations greenhouse gas (GHG) emission customers and end users, as well as to a circular economy model, one in reductions. policymakers, external researchers, and which virgin raw materials, waste, many others. energy and emissions are minimized SDG Target 13.1 | Strengthen through intelligent design, renewable resilience and adaptive capacity to SDG Target | 17.3 Mobilize additional and recycled input, energy-efficient climate related hazards and natural financial resources for developing production, and recycling of products at disasters in all countries. countries from multiple sources. the end their life cycles. We participate with builders, architects, Since the onset of the COVID-19 By 2030, Owens Corning’s goal is to and engineers to provide technical pandemic, the Owens Corning establish viable circular economy information and product innovations Foundation has distributed more business models involving our for resilience in building construction than $1.95 million in aid to charity materials and how they are used by and infrastructure. We work with partners around the world. A portion collaborating up and down the supply industry associations and consortia of this funding was used for the OC chain, with customers, suppliers, to advance understanding of how our Cares Fund, which is managed by an communities, academics, policy materials help combat the effects of independent nonprofit. For details makers, government entities, and climate change — and help support about our community engagement other organizations. We recognize quality of life as people face climate- initiatives, please see our Community the need to increase the recycled related challenges. Engagement chapter. content and decrease the virgin raw In consultation with experts in the field, SDG Target | 17.6 Enhance North- materials used in our products. We Owens Corning began work with The South, South-South and triangular plan to develop technical solutions Ohio State University in 2020 to expand regional and international and practical business models for our our efforts to assess the resilience cooperation on and access to product materials and packaging to of our strategies against a range of science, technology and innovation continuously be used for beneficial climate-related scenarios and time and enhance knowledge sharing on purposes even after they are no longer horizons. These scenarios will focus on mutually agreed terms, including used for the original purpose. risks and opportunities globally and at through improved coordination We are calling on our partners business level. among existing mechanisms, in throughout our value chain to help particular at the United Nations level, SDG Target 13.3 | Improved education, us in our transition to a circular and through a global technology awareness raising and human and economy model and meet our 2030 facilitation mechanism. institutional capacity on climate science-based Scope 3 goal to reduce change mitigation, adaptation, impact SDG Target | 17.16 Enhance the greenhouse gas emissions. We will reduction and early warning. global partnership for sustainable rely on the companies with which we development, complemented by do business to help develop strategies We provide education throughout the multi-stakeholder partnerships that will limit the extraction of virgin company. Our 2020 Sustainability that mobilize and share knowledge, raw materials and seek out new Summit featured presentations on our expertise, technology and opportunities to keep products out of sustainability strategies regarding our financial resources, to support the the landfill and useful within the global product handprint and environmental achievement of the sustainable economy. footprint, the circular economy model, development goals in all countries, in embodied carbon, healthy living particular developing countries. strategies, inclusion and diversity ambitions and metrics, employee engagement, and safety.
2020 Owens Corning Sustainability Report | Our Approach | UN SDG Alignment | 53 Throughout our sustainability efforts, Owens Corning considers the significance of environmental, social, and governance (ESG) impacts to the BOARD company. We will be relying on the board’s leadership to provide essential governance and hold us to the highest standards as we work together to achieve our 2030 goals. LEADERSHIP Pending the outcome of the shareholder meeting on April 15, 2021, Owens The business leaders who Corning’s board of directors will consist of one executive director and nine make up our board of directors independent non-executive directors. Among our board members, three are from an ethnic minority group, and three are female. share our commitment to sustainability, ethical behavior, and company growth.
SIGNIFICANT POSITIONS & INITIAL YEAR NAME GENDER AGE ROLE COMMITMENTS AS A DIRECTOR Mr. Brian D. President, CEO and Chairman of the Board Male 54 2019 Executive Chambers for Owens Corning Mr. Eduardo E. Former Executive Vice President, CFO Male 53 2019 Independent Cordiero* of Cabot Corporation, Director at FMC Non-Executive Corporation Director Ms. Adrienne D. President, Chief Executive Officer and Female 58 2018 Independent Elsner* Director of Charlotte’s Web Holding, Inc. Non-Executive Former President of U.S. Snacks, Kellogg Director Company
Mr. Alfred E. Former Chairman and CEO, W.R. Grace & Co Male 61 2020 Independent Festa Non-Executive Director Mr. Edward F. Executive Chairman of Zep, Inc., Chairman Male 61 2013 Independent Lonergan of DRB Systems Inc, Former Director of Non-Executive The Schwan Food Company, Director of Director DRB Systems, Inc, Senior Advisor at New Mountain Capital
Ms. Maryann T. Executive Vice President and CFO of Female 58 2014 Independent Mannen* Marathon Petroleum Corporation Non-Executive Director
Mr. Paul E. Former Senior Vice President and Chief Male 62 2021 Independent Martin* Information Officer for Baxter International Inc. Non-Executive Director Mr. W. Howard President and Chief Investment Officer of Male 60 2007 Independent Morris* The Prairie & Tireman Group Non-Executive Director Ms. Suzanne P. Former Senior Partner of McKinsey & Female 62 2012 Independent Nimocks* Company, Director of Ovintiv Inc, Valaris plc, Non-Executive and ArcelorMittal Director
Mr. John D. President, CEO and Director of Domtar Male 66 2011 Independent Williams Corporation, Director of Form Technologies Non-Executive Director
*From an ethnic minority group or female.
2020 Owens Corning Sustainability Report | Our Approach | Board Leadership | 54 The board has five committees: of directors has complete access to attributes of the individuals in these ■ Audit Committee. the company’s management, with an roles. More information about the ongoing ability to review the board’s individual board members and their ■ Compensation Committee. leadership structure and make changes competencies can be found in our as it deems necessary and appropriate. 2021 Proxy Statement. ■ Governance and Nominating This gives them the flexibility to meet Committee. During 2020, the board of directors met varying business, personnel, and six times. Board and board committee ■ Executive Committee. organizational needs over time. meetings had attendance rates of ■ Finance Committee. All board members, other than our 100%. Each of our directors attended chairman and CEO, are independent at least 75% of the meetings of the More information can be found in the under all applicable legal, regulatory, board and the board committees on Board and Committee Membership and stock exchange requirements. which he or she served. In 2020, the section of our 2021 Proxy Statement or Seven board members have relevant non-management directors met in on the Owens Corning website. experience in industrials and materials executive session five times. Our lead Current Leadership Structure sectors where our products are independent director (LID) presides sold. Average tenure on the board is over all executive sessions of the Board Brian D. Chambers assumed the chief currently 6 years. The board believes meetings attended by the LID. After executive role in April 2019, and John that the current and future leadership April 2020, all board meetings took D. Williams serves as lead independent structure is appropriate for Owens place virtually. director. After the annual meeting in Corning considering our company’s April 2021, Suzanne P. Nimocks will governance structure, current needs, begin the first year of a two-year term and business environment, as well as as lead independent director. The board the unique talents, experiences, and
Corporate Governance Practices and Highlights
BOARD STRUCTURE
■ 90% of the director nominees for the 2021 Annual Meeting of Shareholders are independent.
■ 100% independent audit, compensation, finance, and governance and nominating committees.
■ Lead independent director with robust and defined responsibilities. 90% OF THE DIRECTOR ■ Board access to senior management and independent advisors. NOMINEES ARE INDEPENDENT ■ Executive sessions of independent directors at every regular board and committee meeting.
BOARD COMPOSITION
■ 60% gender and ethnic diversity among director nominees for the 2021 Annual Meeting of Shareholders.
■ Additions of five new independent directors since 2014, four of which increased gender or ethnic diversity. 60% GENDER AND ETHNIC ■ Two women occupy board leadership positions, one of whom has been elected DIVERSITY AMONG to serve as lead independent director after the 2021 Annual Meeting. DIRECTOR NOMINEES
2020 Owens Corning Sustainability Report | Our Approach | Board Leadership | 55 SHAREHOLDER RIGHTS AND ENGAGEMENT
■ Members of the board of directors elected annually. ROBUST ■ Majority vote standard in uncontested director elections with mandatory STOCKHOLDER resignation requirement. OUTREACH ■ Robust shareholder outreach program. PROGRAM ■ No shareholder rights plan.
■ Annual advisory vote on named executive officer compensation.
POLICIES AND PRACTICES ■ Clawback, anti-hedging and anti-pledging policies.
■ Annual board, chairman/CEO, committee evaluation process and review of management succession plan.
■ Robust stock ownership guidelines: CLAWBACK, • Directors: Five times maximum annual cash retainer. ANTI-HEDGING, • CEO: Six times base salary. AND • Other named executive officers: Three times base salary. ANTI-PLEDGING POLICIES ■ Overboarding policy to ensure that members do not sit on an excessive number of boards.
■ Mandatory director retirement age of 73.
■ Global Code of Conduct for employees, officers and directors
Nomination and Selection of Qualified judgment, acumen, character, Board Members integrity, diversity, the ability to make independent analytical inquiries, The board of directors is responsible understanding of the company’s for nominating candidates to the business environment, and willingness board, who are then elected by Potential new board to devote adequate time and effort stockholders. They also fill vacancies members are assessed to board responsibilities. As outlined that may occur between annual based on their experience in our bylaws, each board member meetings of stockholders. with sustainability. Once is elected individually on an annual they’re elected, they Owens Corning has formal basis and must receive the majority provide guidance on how procedures in place for the selection of the votes. All our current non- sustainability is embedded and nomination of potential board executive directors have no more than in the future of the members. The governance and four additional mandates to public company or how we plan to nominating committee is authorized boards, as required by our qualification be a net-positive company. to recommend only those candidates standards. who meet our Director Qualification The governance and nominating Standards. For a company director committee examines principal skills We believe diversity enhances the to be considered independent, the evaluating the director’s experience and board’s ability to manage and direct the board of directors must affirmatively qualifications to serve as director. With affairs and business of the company. determine that the individual does not respect to sustainability, the committee In identifying director nominees, have any direct or indirect relationship assesses experience in or management the committee considers diversity with the company other than as a responsibility for furthering sustainable as required by its charter and the director. Nominees for director are business practices that address corporate governance guidelines. selected based on a wide range environmental, social, or ethical issues. The effectiveness of this process is of criteria, including experience, Nine of our current board members assessed annually by the full board as knowledge, skills, expertise, mature demonstrate this skill. part of its self-evaluation process.
2020 Owens Corning Sustainability Report | Our Approach | Board Leadership | 56 Management Oversight of According to the Audit Committee Charter: Vision and values related to Sustainability sustainability are created by the The committee is responsible to review CEO and the CSO. They also create, Owens Corning is committed to the the impact of significant regulatory maintain, and promote sustainability principles of sustainability, which changes, proposed regulatory changes strategy and policies, and they redefine according to the Directors’ Code and accounting or reporting developments, targets and goals as needed. of Conduct includes the concepts including significant reporting of personal safety, environmental developments related to the principles of The CSO and his organization compliance, product stewardship, sustainability. are responsible for monitoring and the environmental and social and reporting performance. Our Because the audit committee is impacts of our global operations environmental metrics and data are responsible for overseeing risk for Owens and the products we make and sell. monitored using the EcoStruxure™ Corning, they are also responsible for Directors are expected to provide Resource Advisor system from oversight of climate-related issues and oversight, guidance, and direction on Schneider Electric. Data is entered into opportunities. More information about risk sustainability issues and opportunities the system, where it can be reviewed oversight can be found in the Risk section that potentially impact our reputation and analyzed. The sustainability of this report. and long-term economic viability. leadership team meets regularly to: Owens Corning created the chief ■ We have a sustainability governance Review initiatives and performance sustainability officer (CSO) role in 2007 to structure to discuss and make decisions against metrics. underscore the essential role sustainability on all issues related to economic, ■ plays in our overall operations. The Debate current trends in the market. environmental, and social aspects. The CSO reports directly to the CEO and is complete board of directors monitors ■ Evaluate the transparency of our responsible for our compliance with Owens Corning’s progress regarding product attributes and the level legal and company requirements related sustainability issues and assigns tasks of information needed to satisfy to environmental, safety, health, and to senior management. customers. sustainability. In addition, a sustainability Oversight of climate change — and organization made up of approximately ■ Understand increasing stakeholder sustainability in general — lies with 40 employees reports to the CSO. This expectations. the board of directors. This includes team is accountable for circular economy, Climate-related issues are addressed all elements of our 2030 sustainability product and supply sustainability, through our risk management process goals, such as energy reduction or sustainability and reporting analytics, and included in our risk registers, which renewable energy, water scarcity, and corporate toxicology, product stewardship, are developed by the business and waste reduction. The audit committee operations sustainability and EHS legal teams from the plant level up. is responsible for Environmental, (Environmental, Health, and Safety). Health, and Safety exposures.
OVERSIGHT OF Board of Directors SUSTAINABILITY ROLES • Creating sustainability vision, values
• Sustainability strategy Chief Executive and policies Officer (CEO) • Redefining targets or goals
• Performance monitoring EH&S Leadership Council, Chief Sustainability and reporting which includes: Officer (CSO) Chief Sustainability Officer (executive sponsor) Enterprise Environmental Sustainability Enterprise Safety Leadership Team Enterprise Medical, Health Insulation, Director – EHS ROLES Sustainability Roofing, Director – EHS Champions • Reports on delivery of Composites, Director – EHS goals and targets Regulatory Law SUSTAINABILITY ORGANIZATION
2020 Owens Corning Sustainability Report | Our Approach | Board Leadership | 57 Board Education Board and Committee Evaluation Stakeholder Consultation and Communication New directors undergo an orientation Our corporate governance guidelines program involving a wide range specify that each year, the governance To better understand our stakeholders’ of topics to ensure they are fully and nominating committee evaluates expectations and priorities, we knowledgeable about our company. the effectiveness of the board, its five proactively engage and consult with These include strategic plans and committees, the chairman and CEO, individuals, groups, and organizations significant issues related to finance, and committee charters. The board that are impacted by our business accounting, and risk management and its committees complete annual operations. We rely on stakeholder issues. They also review compliance self-assessment questionnaires and guidance and direction to choose our programs, conflict policies, codes have individual discussions with the business strategies and priorities, and of business conduct and ethics, lead independent director to evaluate from them we learn what is and is and governance guidelines. The effectiveness in several areas, including not working. We invite stakeholders orientation also includes opportunities board composition, structure, and to communicate with us on any to familiarize themselves with process. The completed questionnaires economic, environmental, or social principal officers, internal auditors, are submitted directly to a third-party topic related to our business. The and independent auditors, as well as law firm, which summarizes the results. collective stakeholder input is crucial to receive briefings from the CEO and the board’s fulfillment of its duties and The governance and nominating management. responsibilities. It directly informs the committee circulates the summarized board’s identification and management Following the orientation process, results to all directors, except for of economic, environmental, and social directors are expected to continue results related to evaluation of the matters and their impacts, risks, and learning about our business and related chairman and CEO. Those are sent opportunities. issues, so they maintain the necessary to the independent directors, to be expertise and competency to perform discussed in an executive session of We also invite all our stockholders their responsibilities as directors. the non-management directors. and other interested parties to This continued learning includes communicate with our board on any consultations with our executive critical concerns they might have officers, reviewing relevant materials, about our business. Interested parties visiting offices and plants, and may communicate with the lead participating in third-party educational independent director or any other non- programs. The governance and management director by sending an nominating committee also receives email to non-managementdirectors@ periodic updates on environmental, owenscorning.com. All such social, and governance issues. communications are promptly reviewed for evaluation and appropriate follow-up by our general counsel and/or our vice president, internal audit. A summary of all communications is reported to the non-management directors. This does not include communications considered to be advertisements or other types of “spam” or “junk” messages unrelated to the board’s duties or responsibilities, which are discarded without further action.
Photo submitted by: Julie Childers | Granville, Ohio, U.S. Lancaster, Ohio, U.S.
2020 Owens Corning Sustainability Report | Our Approach | Board Leadership | 58 In addition, stakeholders and other interested parties may communicate sustainability concerns with the vice president and chief sustainability officer (CSO) via his email address, his assistant, our sustainability email address, or telephone. All business- appropriate inquiries are handled by the CSO directly, or they are passed on to corporate communications, legal, or other company function for appropriate action or response.
Communications alleging fraud or serious misconduct by directors or executive officers are immediately reported to the lead independent director. Complaints regarding business conduct policies, corporate governance matters, accounting members and their immediate families. controls, or auditing are managed and For related party transactions (RPTs) reported in accordance with Owens that are subject to the FASB Accounting requirements and designed to align Corning’s existing audit committee Standards Codification (ASC) Topic 850, with stockholder value. Base salary and complaint policy or business conduct we comply with additional disclosure other fixed elements of compensation complaint procedure, as appropriate. requirements. We also disclose with are essential to any compensation suppliers and other stakeholders all program and enable the recruitment Conflicts of Interest other conflicts of interest, such as the and retention of top talent. However, We have several written policies existence of controlling shareholders, we believe that variable compensation and procedures in place related to cross-board membership, and cross- for our most senior executives should avoiding, managing, and disclosing sharing. significantly outweigh base salaries. conflicts of interest by directors, Remuneration Policies For a more detailed discussion of officers, employees, and members of executive compensation, including their immediate families. Owens Corning continually monitors ways we apply internal and external the evolution of compensation best As indicated in our Directors’ Code financial success metrics, please see practices, as we review the relationship of Conduct, a director who has an the Executive Compensation section of between company performance and actual or potential conflict of interest our latest Proxy Statement, published compensation and the goals and must disclose the following to the in April 2021. This document also targets we set. Individual goals and chairman of the board and the includes details regarding potential targets are designed to ensure that chairman of the governance and termination payments and recoupment Owens Corning meets its financial and nominating committee: of compensation (clawback) paid to environmental goals while operating as NEOs. Reporting on the CEO pay ratio ■ The existence and nature of the an ethical company. In addition, Owens begins on page 50 of the report. actual or potential conflict of Corning has a fully non-executive interest. remuneration committee made up of all independent members. ■ All facts known to him or her regarding the transaction that Our CEO and our Named Executive may be material to a judgment Officers (NEOs) have substantial “pay about whether to proceed with the at risk,” with 85% of our CEO’s and 74% transaction. of our NEOs’ target compensation The director may proceed with the being tied to annual and long-term transaction only after receiving incentives (as opposed to base approval from the governance salaries). Actual annual incentives and nominating committee. In and long-term incentive awards are subject to the achievement Photo submitted by: our annual proxy statement, we Julie Childers | Granville, Ohio, U.S. disclose transactions between board of pre-established performance Alabama on the shores of the Gulf of Mexico.
2020 Owens Corning Sustainability Report | Our Approach | Board Leadership | 59 Our ambitious 2030 sustainability GOING goals will require a great deal of collaboration from individuals FORWARD throughout our organization, and we will continue to look to our board of directors for leadership. Our governance and nominating committee can be relied upon to select individuals who share our commitment to sustainability, and their guidance will be invaluable as we work to achieve our aspirations.
Photo submitted by: Anthony Sanders | Rockford, Illinois, U.S. Black Hawk Statue in Illinois, U.S., with the Byron nuclear power plant in the background.
2020 Owens Corning Sustainability Report | Our Approach | Board Leadership | 60 RISK MANAGEMENT
In this chapter: STRATEGY & APPROACH SUMMARY OF KEY RISKS GOING FORWARD
Managing risk is an essential component of Owens Corning’s overall commitment to our sustainability initiatives, especially as it relates to the principles of governance within our ESG (environmental, social, and governance) impacts. By identifying and assessing risks across all aspects of our operations, we are best positioned to manage the risks that are directly related to our sustainability efforts. To that end, optimal risk management and disclosure are high priorities throughout our operations.
Photo submitted by: Laetitia Maccioni | Chambéry, France Carmine Ilardi, winder adjustor, Besana, Italy, plant.
2020 Owens Corning Sustainability Report | Our Approach | Risk Management | 61 STRATEGY AND APPROACH
Owens Corning identifies and manages risk across economic, environmental, and social domains. Our forward-thinking, holistic approach to managing risk enables us to make effective business decisions that help us build long- term financial goals and shape our future success.
Oversight and Management
Enterprise risk management governance at Owens Corning starts The risk committee reports directly to Three board committees — with the risk committee, advances the chief financial officer and general compensation, finance, and to the executive committee, and is counsel. In support of these efforts, governance and nominating — all finalized with a review by the audit the independent corporate audit review and evaluate risks associated committee of the board. function systematically addresses risk with their respective areas. Each board The risk committee is responsible for throughout the organization. Audit committee reports on its respective overseeing and monitoring our risk results are reviewed with the audit risk management activities to the assessment and mitigation actions. committee of the board of directors, board, and the board then considers The risk committee is not a board which has primary responsibility for such reports. committee; instead, it is a cross- assisting the board’s oversight of risk. Between annual reviews, the registers functional corporate committee that The audit committee’s responsibilities are reviewed by the business includes members across many areas include: stakeholders, and the risk committee of expertise. It is also structurally ■ Discussion of guidelines and meets quarterly to discuss any independent of our business lines. This policies that govern the process applicable updates. Should any internal mechanism identifies risks and by which senior management and material updates be made, these mitigation strategies, and it provides key relevant departments access and are then reviewed with the executive updates to executive officers and the manage the company’s exposure committee and audit committee of the audit committee. to risk. board as well. In 2020, the risk committee’s ■ Annual review of, and periodic membership was amended to ensure updates on, identification of Owens greater diversity of thought related Corning’s key risks, major financial to risk, including more functions and exposures, and related mitigation expanded geographic representation. plans. Members from corporate include internal audit, legal, treasury, corporate ■ Oversight of our management of strategy and financial planning, sourcing the key risks and major financial and supply chain, and IT. They were exposures that fall within the audit joined by individuals representing committee’s specific purview. operations, human resources, ■ Assurance that the board and commercial strategy, and science and its committees oversee our technology within the businesses. In management’s key risks and major addition, safety and environmental financial exposures within their concerns were expanded in the core respective purviews. risk register, which increases the extent Photo submitted by: ■ Periodic evaluation of the Sarah Hill | Newark, Ohio, U.S. to which sustainability issues are Malissa Moran at our plant in Newark. embedded into the enterprise-wide risk effectiveness of the above- process. (More on risk registers on the referenced process of oversight. next page.) 2020 Owens Corning Sustainability Report | Our Approach | Risk Management | 62 Risk Registers VALUE IMPACT Owens Corning’s business units proactively analyze risks and create M business-specific risk registers. The G risk committee then uses these HIGH B T U individual risk registers to create an R A enterprise risk register, which enables business units and the risk committee O P Q to facilitate strategic and operational E planning processes while mitigating C S MEDIUM N sustainability and other risks. H
Risks are prioritized based on their I K placement in the risk register. The J Y-axis (“Value”) represents the potential financial impact, while the X-axis L LOW (“Likelihood”) represents the probability F of occurrence. Color coding (for risk acceptability) and different shapes (for trending information) offer a fuller LOW MEDIUM HIGH understanding of the potential risks. LIKELIHOOD To identify new risks — and update risks no longer considered important — the risk committee LEGEND regularly reviews results and outputs of risk RISK ACCEPTABILITY TREND assessments. In the past, this was done at least (after the impact of existing actions) twice per year, but in 2020 the risk committee ▲ Improving ■ Risk level acceptable No Change began meeting four times per year. In doing so, ● Stable ■ Execution of New Risk the risk committee is now even better equipped management plan ▼ Worsening Change to review and report on robust mitigation plans ■ Management of risk needs improvement across businesses as well as corporate functions.
Our enterprise risk management (ERM) process is Example of a risk register for demonstration purposes. updated and reviewed annually by the board and the audit committee to ensure it remains relevant and proactive. Risk Management Training
Our enterprise risk management function/philosophy RISK MITIGATION is dispersed throughout the organization at all levels to ensure thorough information is received. Individuals FRAMEWORK are trained on how our ERM process works as part of that process. Also, there is a focused web-based loss control training available for plant personnel. We IDENTIFYING encourage active learning through risk mapping and in RISKS 2020 implemented a new tool called Risk on a Page. The implementation of the tool required extra training in 2020 which will be refreshed for new stakeholders each year. Additionally, the legal department initiates annual training on our Business Code of Conduct and antitrust policies globally to broadly address key compliance risks. Each business is required to complete strategic planning, covering risk management and strategic risk. Owens Corning conducts regular and ongoing ALIGNING risk management training for personnel in the risk PRIORITIZING AND committee and risk functions, including sourcing and REVIEWING RISKS MITIGATION finance globally. PLAN
2020 Owens Corning Sustainability Report | Our Approach | Risk Management | 63 Risk Management and Human Resources
Effective risk management is considered in our human resources (HR) review process for employees who are responsible for identifying and continually progressing mitigation strategies for risks in their daily job responsibilities. This is evidenced by our risk management process, which includes development of risk registers at the enterprise level, business unit level, and corporate function level (finance, compliance, etc.). In support of our efforts to reduce risk in HR, Owens Corning has implemented an executive committee review, which details talent health, retention risks, emerging talent, top talent, and potential areas for career Photo submitted by: refresh and sunset. Merry Qu | Qingdao, Novia, China Team performing a 5S audit. Engaging Employees in Risk Management
Many employees are involved in risk identification, as we encourage them to identify new risks to the organization through questionnaires, interviews, and the regular update of the business and enterprise risk registers. During these reviews, employees are given a forum to provide feedback. Potential risks regarding such items as sourcing, safety, environmental, and HR are raised at the plant level, and their learnings are shared across the company and are evaluated at the leadership team level in each facility; when appropriate, they are compiled into the business unit-level risk register. Once within the risk register, processes are established and appropriate employees are educated. As part of our due diligence for acquisitions, we evaluate the risk for items such as environment, safety, financial, IT, product stewardship, HR, and sourcing. For example, the process for safety includes leading indicator analysis and injury review calls, where each facility that has a “high-risk” first aid or injury incident shares best practices.
Each year our internal audit team develops an audit plan, interviewing key executives to review areas of risk. In 2020, we began to integrate this with our ERM. At least once a year, each business refreshes its risk register and identifies any new or materially changed risks and how they relate to the strategic plan. Hazard recognition and near-miss reporting are significant tools within our safety culture and throughout the plant network. Total Productive Maintenance (TPM) emphasizes proactive and preventive activities to maintain, operate, and improve production. All employees are involved in maintaining their own process during production. This creates a shared responsibility for equipment, increasing involvement from all.
Employees are encouraged to report their concerns to any manager, member of human resources or legal operations, or any member of our business conduct council (BCC). Employees may also submit their concerns (anonymously) to our BCC through a confidential helpline (1-800-461-9330) or web portal, operated by a third-party service provider. Employees can also report their concerns to the council using a designated email ([email protected]) address or a dedicated postal mail box.
2020 Owens Corning Sustainability Report | Our Approach | Risk Management | 64 The following risks are also relevant to more common, we could experience SUMMARY OF our sustainability efforts as outlined in difficulties in obtaining affordable KEY RISKS this report: insurance. Adverse weather conditions can also have a negative impact on our Owens Corning is subject to a diverse Emerging Risks suppliers, hindering our ability to obtain array of risks, which vary greatly in the materials needed to maintain our Climate change and associated importance and likelihood. Some are own operations. directly related to the competitive weather conditions. While the science nature of our business and our behind climate change has been Owens Corning is subject to Emissions operations, while others are the result clear for a long time, the gravity of the Trading Schemes (ETS) around the of external forces, including weather- situation is becoming increasingly world, such as the EU Emissions related phenomena and geopolitical apparent. The world is recognizing Trading System, California’s Cap- factors. Using correlation analysis, the need to act quickly and decisively and-Trade system, the Canadian we assess the likelihood of an event to mitigate the emerging risks that Federal Output-Based Pricing System, occurring within a specific period, then climate change poses for the safety, the Quebec Cap-and-Trade system, prioritize and develop strategic plans health and economic well-being of the Beijing Pilot Emissions Trading accordingly. We apply this analysis to people everywhere. Scheme, and South Korea’s Emissions Trading Scheme, as well as other our key external business drivers, such Given our understanding of the similar schemes limiting emissions. as housing starts, hurricanes and other physical risks associated with climate Expansions to these schemes could severe weather conditions, and wind- change, Owens Corning has set impact us by reducing our carbon power growth rates. targets aligned with the latest findings allowances, thus increasing our from the Intergovernmental Panel For example, our analysis indicates that operating costs in those countries. the North American building insulation on Climate Change (IPCC). To avoid business is highly correlated to new the worst impacts of climate change, With the further reductions in home starts. Based on actual and the IPCC urges that temperature rise allowances through Phase 4 of the forecasted home starts, the business should be held below 1.5° C. As we European Union ETS, for example, we develops its strategic plan and makes seek to reduce our Scope 1 and Scope forecast that our allowances will be the appropriate tactical maneuvers to 2 greenhouse gas emissions by 50% depleted after 2020, which will require right-size our capacity and workforce. over the next ten years, we will use us to begin purchasing credits for the Additionally, energy, commodity, and this metric — representing the latest in first time. Phase 4 is imminent and foreign currency hedging programs are climate science — as our guide. applies to the period 2021-2030. Our course of action in managing these routinely evaluated to provide inputs into Owens Corning continues to assess risks involves: interaction with the our correlation analysis. all the potential risks associated commission in charge of defining with climate change to gain a fuller Sustainability the new allocation rules (in reviewing understanding of the many ways the rules under EU ETS Phase IV, Risks climate-related risks can impact we determined that the Continuous operations across our entire value For purposes of this report, we Filament Glass Fiber sector qualifies chain. As weather conditions shift, recognize the need to highlight to continue receiving free allowances severe storms can have a significant potential risks that are specific to our until 2030); pursuit of R&D initiatives impact on the markets for residential sustainability efforts. In addition, we involving a change in material and commercial construction, repair believe it is important for investors to composition or in manufacturing and improvement, as well as a understand the emerging long-term processes to enable emissions material adverse impact on our results risks that we may face in the future. reductions; and implementation of of operations. Both the board of directors and its energy and GHG reduction projects. Among our customers, severe audit committee retain some oversight We also anticipate transitional risks weather conditions could slow or limit responsibility for environmental, health, as climate-change legislation and residential or commercial construction and safety risks. In addition, directors other environmental mandates lead activity, which in turn could adversely are expected to provide oversight, to increases in energy prices. This affect demand for our products. guidance, and direction on sustainability can have an adverse effect on our Within our own operations, extreme issues and opportunities that have operations, as it can represent a cost weather can lead to disruptions in our potential impact on our reputation and increase that we may not be able to manufacturing capacities, as damages long-term economic viability. pass along to the customer. to our facilities may occur. In addition, as weather-based disruptions become
2020 Owens Corning Sustainability Report | Our Approach | Risk Management | 65 Owens Corning has strategies in an in-depth knowledge of our products, Additional place to mitigate these risks. Chief our processes, and our industry — Risks among them is our commitment to knowledge that is essential to our the circular economy model, in which ability to innovate — and replacing Our 2020 Annual Report on Form we work to avoid the use of virgin them when they retire presents 10-K offers an in-depth discussion raw materials whenever possible, significant challenges. of our quantitative and qualitative manufacture products to deliver the risks, as well as our approach for The loss of any of these individuals least negative environmental impact, managing them. or an inability to attract additional and ensure that materials used in our personnel could prevent us from Some of the key risks that directly products and packaging remain in implementing our business strategy and impact our operations include the the economy indefinitely. Our Circular could adversely impact our business following: Economy chapter in this report and our future financial condition or describes our commitment to this 1. Low levels of residential, results of operations. Owens Corning model in greater detail. commercial, or industrial considers this a long-term emerging construction activity, which can In consultation with experts in the field, risk as many of these existing senior have a material adverse impact Owens Corning began work with The management personnel and skilled on our business and results of Ohio State University in 2020 to expand and experienced personnel will be at operations. our efforts to assess the resilience retirement age in the next 3-5 years. of our strategies against a range of 2. Significant competition in the We are working to mitigate this risk climate-related scenarios and time markets we serve, against which through phased retirement, which horizons. These scenarios will focus on we may not be able to compete helps create a smooth transition risks and opportunities globally and at successfully. for employees as they retire. This the business level. includes a program through which 3. Rapid fall in sales due to declines For further discussion of our climate employees nearing retirement are in demand. This can occur change risks, our management of given the opportunity to work part- because we do not operate under those risks, and related opportunities, time while still receiving full-time long-term volume agreements please see our CDP Climate Change benefits. As employees prepare to supply our customers 2021 Report, which will be posted on for retirement, they can pass along and because of customer the Owens Corning website later this their insights and expertise, helping concentration in certain segments. year. More information related to this ensure that Owens Corning has the topic is also presented in the TCFD opportunity to continue moving 4. Worldwide economic conditions discussion in Appendix G. forward with minimal disruption. and credit tightening, which could have a material adverse impact on Loss of highly skilled personnel. the company. Owens Corning depends on our senior management team and other 5. Risks associated with our skilled and experienced personnel international operations. to operate our business effectively. 6. Natural disasters, catastrophes, These individuals possess skills in theft, or sabotage, against which many areas that are important to we may not be adequately insured, the operation of our business, sales, or which may cause serious harm. marketing, manufacturing, logistical, financial, business strategy, and 7. Climate change, adverse weather administrative skills. The loss of any of conditions, and the level of severe these individuals or the failure to attract storms, which could have a additional personnel could adversely material adverse impact on our impact our financial condition and results of operations. results of operations.
This is especially true as we seek to address potential staffing losses at our Science & Technology Centers, where we rely on individuals with very specific knowledge. Our technical staff brings
2020 Owens Corning Sustainability Report | Our Approach | Risk Management | 66 8. Cost increases or reduced or financial condition could be accordingly with appropriate risk availability of energy, materials, or materially adversely affected in a mitigation plans. Opportunities are transportation. This could reduce particular period. addressed through the long-range our margins and have a material planning process, which has a horizon 17. Ongoing efforts to increase adverse impact on our business, of three years forward. productivity and reduce costs. financial condition, and results or These may not result in anticipated operations. Retirement Benefits savings. Liabilities 9. Risks associated with our efforts 18. High levels of fixed costs. This in acquiring and integrating other We are committed to providing all would be incurred regardless of our businesses, establishing joint employees with comprehensive level of business activity, given that ventures, expanding our production retirement benefits. Generally, we offer our operations require substantial capacity, or divesting assets. these benefits via defined contribution capital. arrangements. However, defined benefit 10. Potential product liability and 19. Limits on the company’s income plans may be provided in accordance warranty claims, for which we tax net operating loss. This may with local custom to ensure a may not accurately estimate adversely affect our results of competitive overall benefits package. related costs, or we may not have operations. sufficient insurance coverage Of our defined benefit obligations, available to cover such claims. 20. Failure of hedging activities to 97% are payable through a fund held address energy price fluctuations and maintained separately from the 11. Uninsured judgments or a rise in to offset increases in those resources of the organization. The insurance premiums. This may costs or potentially reducing or Canadian qualified plan is 106% funded, adversely impact our business, eliminating the benefits of any as determined by actuarial valuation financial condition, and results decreases in those costs. within the past 12 months. The U.S. of operations, as we are subject and the U.K. plans are less than to various legal and regulatory 21. Price volatility in certain wind- 100% funded, also based on actuarial proceedings, including litigation in generated U.S. energy markets. valuation within the past 12 months. ordinary course of business. These three plans represent over 90% of 22. Increases in the cost of labor, the company’s defined benefit liabilities. 12. Potentially substantial expenditures union organizing activity, labor related to our liability under and disputes, and work stoppages at Our strategy for the U.S. plan is to compliance with environmental our facilities. This could delay or contribute at least the minimum and emerging product-based laws impede our production, reduce required amount each year and ensure and regulations. sales of our products, and increase that the plan is funded at 80% or greater. our costs. 13. Failure of our intellectual property Other plans are funded to fully comply with local requirements. Approximately rights to provide meaningful 23. Significant changes in the factors 96% of eligible U.S. employees commercial protection for our and assumptions used to measure participate in voluntary retirement products or brands. This could our defined benefit plan obligations, savings (defined contribution) enable third parties to assert that actual investment returns on programs. Owens Corning provides we violate their intellectual property pensions assets, and other factors. an automatic 2% contribution based rights, which could adversely This could have a negative impact on salary to all U.S. employees’ 401(k) impact our business, financial on our financial condition or plans. The company also matches up condition, and results of operations. liquidity. to 6% based on individual contributions; 14. Our level of indebtedness. 24. Failure to adequately protect our thus, employees who maximize the This could adversely affect our critical information technology company match will save 14% of business, financial condition, or systems. This could materially salary toward retirement. New U.S. results of operations. affect our operations. hires are automatically enrolled in our 401(k) plan. Our 401(k) plan represents 15. Downgrades of our credit ratings. Risks at Owens Corning, regardless approximately 93% of our contributory of their relation to sustainability, are 16. If we were required to write down savings plan globally. addressed through our ERM program. all or part of our goodwill or Each business fluidly reviews its risk other indefinite-lived intangible register to identify new or materially assets, our results of operations changed risks and address them
2020 Owens Corning Sustainability Report | Our Approach | Risk Management | 67 Cybersecurity particularly vulnerable to security Corning has acquired multiple Risk attacks or other problems. To businesses which sell products across combat this, we have added global regions. Notably, our InterWrap® Owens Corning is subject to risks information security team members business sells product from China relating to our information technology to address regional security issues. and India into Europe and the United systems, which we rely on across We also placed great emphasis on States. Given the current geopolitical our operations, in management, cyber risk associated with merger and environment, Owens Corning supply chain, financial information, acquisition activities. considers this approach to have a and various other processes and potentially minor business impact. transactions. Any failure to adequately The board of directors’ audit committee protect our information technology is responsible for overseeing the As an international organization, we systems could materially affect cybersecurity strategy for the company. actively monitor the global political our operations, and our ability to Maryann T. Mannen is the chair of the landscape and expand our business effectively manage our business audit committee. Our chief information market intelligence capability on depends on the security, reliability, and officer oversees cybersecurity for the trends and policies across different capacity of these systems. company and provides updates on regions. We closely monitor and cybersecurity risks to the board of analyse the impact to Owens Corning Failures in our information technology directors’ audit committee regularly. The of changes to trade agreements and systems, network disruptions, or audit committee reviews how we are tariffs, and have identified alternative breaches of security could disrupt executing against its comprehensive options to counteract potential our operations, causing delays or cybersecurity framework. Regularly, changes, such as strategically building cancellation of customer orders the audit committee may receive inventory and transferring production or impeding the manufacture or updates on efforts regarding data loss between locations. Furthermore, in shipment of products, processing of prevention, regulatory compliance, relation to our potential acquisitions, transactions, or reporting of financial data privacy, threat and vulnerability Owens Corning has expanded results. An attack or other problem with management, cyber-crisis management, evaluation of this risk within our due our systems could also result in the or other topics as applicable. diligence process, when appropriate. disclosure of proprietary information, which could result in significant Geopolitical and Risks Related to Child Labor and damage to our business and our International Trade Risks Forced Labor reputation. Advanced cybersecurity Owens Corning sells products and Owens Corning’s human rights policy threats are persistent and continue operates plants throughout the states that we do not and will not to evolve, making them increasingly world and is subject to risks and employ child labor or forced, slave, difficult to identify and prevent. Any uncertainties associated with these convict, or bonded labor. In addition, breach of our security measures could international operations. This includes Owens Corning will not knowingly result in unauthorized access to and geopolitical risks, such as adverse engage a supplier or distributor, nor will misappropriation of our information, domestic or international economic we enter into a joint venture with an corruption of data, or disruption of and political conditions, business organization, that directly or indirectly, operations or transactions, any of which interruption, war, and civil disturbance, through a third party, employs child could have a material adverse effect on and international trade mechanisms, labor, forced labor, or persons who our business. such as changes to tariffs or other were trafficked into employment. The We have established a range of import or export regulations, including Human Rights & Ethics chapter of this security measures to protect against modification or termination of report offers further details. these concerns. We have implemented international agreements covering Owens Corning supports participation additional controls, security trade or investment. in legitimate workplace apprenticeship processes, and monitoring of our Geopolitical tension, government programs, provided they comply with manufacturing systems. We have also action related to public policy, or all applicable laws and are consistent implemented additional cloud security events related to political instability with Articles 6 and 7 of the International tools and governance processes. We could result in strategic or financial Labour Organization (ILO) Minimum Age rely on third-party service providers to loss. Trade tensions resulting in Convention No. 138 on vocational or execute certain business processes, modifications of tariffs or international technical education and light work. maintain certain IT systems and trade agreements could also adversely infrastructure, evaluate defenses, impact our business, financial and implement recommendations. condition, and results of operations. Moreover, our operations in certain Through our growth strategy, Owens geographic locations may be
2020 Owens Corning Sustainability Report | Our Approach | Risk Management | 68 In 2020, our board reviewed the GOING effectiveness of our risk management processes, and they will do so again FORWARD next year. Our adherence to the Risk on a Page model will be central to our review process as we look ahead.
The new model requires each risk to be presented separately, with dedicated team members playing an active role in managing each individual risk. In addition to two sponsors, one from the risk committee and one from the executive committee, each risk has its own risk owner and subject matter expert. The subject matter expert and risk owner are responsible for ensuring we have mitigating actions in place for each risk, and that there is consistent progress being made toward mitigation. Additionally, risk owners are responsible for the overall management of the risk and communicating cross-functionally and vertically through the organization, ensuring visibility of the risk in all elements of strategic planning. This approach enables us to drive updates to the risk register, as sub-register risks roll up to the enterprise level.
As a company that strives to be a net-positive force in the world, we will continue to seek out ways to improve our risk management processes. By ensuring that we are effectively managing risk, we are making it possible for Owens Corning to continue to achieve growth that is not only financially responsible, but environmentally and socially responsible as well.
Photo submitted by: Laetitia Maccioni | Chambéry, France Matteo Sirtori, maintenance operator, Besana, Italy, plant.
2020 Owens Corning Sustainability Report | Our Approach | Risk Management | 69 DIGITAL TRANSFORMATION
In this chapter: STRATEGY & APPROACH INITIATIVES GOING FORWARD
Owens Corning is always looking ahead, seeking out new ways to deliver innovations that drive efficiency and ensure a sustainable future. We have long seen the potential of digital solutions to improve our manufacturing processes, increase our revenues, and deliver enterprise efficiencies.
While the pandemic forced us to accelerate our digital efforts, our long-standing commitment to new technologies and digital processes made it possible to pivot rapidly to digital as circumstances dictated. The insights we have gained from our initiatives this year will serve us well in years to come, as we seek to drive achievement across our operations, including our work in sustainability.
Photos submitted by: Frank O’Brien-Bernini | Granville, Ohio, U.S. First day working from home in his makeshift office (top).
Vijay Kamble | Taloja, India Online orientation for new employees (bottom).
2020 Owens Corning Sustainability Report | Our Approach | Digital Transformation | 70 Generating revenue. Our market- communicating thoughts, ideas, and STRATEGY facing initiatives include the use interactions between our employees of digital marketing channels, and stakeholders, as well as facilitating AND APPROACH engagement systems, and online the analysis of large and diverse Our digital selling tools. These digital assets drive datasets. framework is built awareness of our products, facilitate Improving manufacturing. Through sales, and increase brand loyalty to address some of analytics and modeling, we are and advocacy — while also helping our key aspirations. optimizing our manufacturing cycle, our customers, contractors, and and digital processes enable us influencers grow their businesses. to integrate engineering data with Driving efficiency. Digital tools are construction science, automation, and transforming the workplace, enabling controls, so we can design and build us to organize work better while more products efficiently.
Photos: Online meeting in our operations, including a CEO meeting with the Corporate Affairs Team, a Town Hall webinar, and an OC Studio meeting.
2020 Owens Corning Sustainability Report | Our Approach | Digital Transformation | 71 The work we’re doing helps us become more efficient and meet our DIGITAL goals for sustainability and growth. TRANSFORMATION Across our operations, we are discovering ways in which digital INITIATIVES innovations can transform our business.
Market-Facing Digital Initiatives Digital Transformation Digital Initiatives in Manufacturing of the Employee Experience Owens Corning has developed a In manufacturing, we use proven digital New digital tools provide Owens number of digital tools to benefit technologies to design, construct, Corning with exciting opportunities to distributors, contractors, and and operate our manufacturing create a workplace that is inclusive, homeowners. Our Roofing business assets more efficiently in service to connected, efficient, and customized offers some excellent examples. our customers. We are working to to meet the specific needs of individual accelerate the digital transformation employees. The result — a team Distributors: As we work to grow of our manufacturing processes by of 19,000 engaged and productive online with our distributors, we have focusing on the following: people — will give us an incalculable developed a portal to offer order status, advantage as we seek to compete access to documents, and delivery Digital engineering in the marketplace and achieve our tracking. We’re looking at how we design and sustainability objectives. Contractors: The goal with contractors build better and more efficiently, Digital innovations enable us to is to help them get more work — integrating models and engineering customize learning and development and get more work done. The OC data with construction science for experiences and make them more Connect platform helps contractors capital efficiency. To achieve this, we inclusive, finding people who may get information and training and are using model-based design, cost once have been unable to participate allows them to earn rewards for their estimation and controls, modular in traditional in-person training. We purchases. construction, and life cycle costing. are now developing methods to reach Homeowners: Digital marketing Digital process and automation 100% of employees in ways that are strategies enable us to guide the meaningful to both them and the Integrating data and science with homeowner through the entire company. automation and controls to free purchasing journey, from initial interest capacity, drive quality, and lower cost Recent employee-focused initiatives to acting as an advocate for Owens helps us operate more efficiently. include the following: Corning® products. Initiatives such as robotics and Coaching for Growth. A highly We have created digital tools to automation, asset performance accessible, blended learning program support each stage: management, advanced process that focuses on upskilling employees controls, and remote collaboration are in the critical leadership capability of giving us the tools needed to reach coaching. Pre-shopping our goals. myOC On-Demand Tools. Learning Analytics and modeling on Demand is a set of skill-based development resources designed to We’re combining our capabilities with Research elevate specific capabilities for all the latest science to optimize our design employees across the enterprise. and operations. Through advanced analytics, process modeling, predictive OC Now. Established in May 2019 to Intent maintenance, and real-time optimizing, serve as a way to connect our global we’re disrupting the current models and workforce build a sense of community, consistently moving forward. OC Now currently features dozens of channels covering a range of topics. Purchase Thousands of employees have joined the platform since its launch, making it a robust virtual meeting place for our employees around the world. Advocacy
2020 Owens Corning Sustainability Report | Our Approach | Digital Transformation | 72 Digital Transformation in Operations
Our digital initiatives have had a tremendous impact across our operations. On the manufacturing front, the benefits have been quite dramatic. For example, at our plant in Trzemeszno, Poland, we were able to start up a new manufacturing line for stone wool insulation remotely, while most of Europe was in lockdown due to Photos submitted by: Hannah Thurauf | Gastonia, North Carolina, U.S. the COVID-19 pandemic. We were able to achieve this Nick Phillips (back) and John Proulx (front) in the thanks to Owens Corning’s robust digital infrastructure, control room (left). offering remote access to the relevant business functions.
Heather Kessler | Granville, Ohio, U.S. In addition to increasing efficiencies and facilitating Yahya Paya testing acoustics (right). collaboration around the world, our digital manufacturing initiatives are contributing to our sustainability goals. We’re seeing reductions in our waste-to-landfill, carbon dioxide emissions, and our overall footprint.
2020 Owens Corning Sustainability Report | Our Approach | Digital Transformation | 73 SPEAKING OF SUSTAINABILITY
Irina Chubarova Our sustainability journey is driven by data — quantitative assessment of our progress helps us be most effective in expanding our handprint and reducing our footprint. Senior data analyst Irina Chubarova supports our EHS team and is one of the people leading the charge in harnessing data and predictive analytics to inform our efforts across all our 2030 goals. Here, Irina talks about the role data analysis plays in our work today, and what it means for our work going forward.
On the importance of live data were able to attach this data to John Hopkins University data and show the situation for each plant and the county where Data analytics helps our leaders keep their fingers on the they’re located. pulse of essential company performance metrics. That includes easy access to key performance indicators, as well On what’s next for data analytics at as tracking incident investigations and corrective actions. Owens Corning Manual reporting processes are slower, so by the time a report gets into someone’s hands, it’s already two, three We’ve made a lot of progress in reporting, but it’s still days old. Incidents could have happened in between, and an ongoing effort. We are expanding our analytics to there’s no way for a leader to know about them or include environmental and health. We have extensive wellness them in their decisions. Now, we have very efficient reporting programs at Owens Corning and we’re bringing our analytics system that can be reached to by any leader at any time to that as well. Just think about all of the plants that we have, when they need it — and it shows current live data. It makes and they all use different HR systems and tracking systems. me really happy to see how efficient our reporting is. How do we bring all this data together into one spot? It’s a big task that has great value in reaching our goals. Also, On the role of data in the pandemic predictive analytics — being able to predict incidents and help plants mitigate their risk of having an injury before it even In March 2020, we were tasked to create a reporting tool happens — will be a crucial step in reaching our march to to help track COVID-19 related cases. You can imagine this zero injuries. was done in state of emergency, when new cases were popping up every day and we didn’t know what to expect. We put together a tracking tool to help plants track their cases, and also report on cases daily, so the crisis management Irina Chubarova team, regional leaders, and safety leaders could go into Senior Business Analyst, Corporate EHS, California, U.S. our dashboards and see daily cases and trends. We also Photo taken in Muir Woods National Monument, Mill Valley, California, U.S.
2020 Owens Corning Sustainability Report | Our Approach | Digital Transformation | 74 Beginning in Q1 2021, we implemented GOING Leading Pink, which is designed to bring leadership capabilities for growth to FORWARD life. Available to all leaders, the program features live and on-demand learning opportunities.
Over the next two years, we will also be implementing a digital talent management strategy, where we are invested in HR analytics and systems in learning and development, career planning and more. Our focus is on greater engagement, and it will include the following elements: ■ Mobile-friendly online hiring applications and inclusive hiring tools.
■ Technology platforms to broaden diverse hiring.
■ Tools to measure employee experience and engagement.
■ Onboarding technology in our talent management platform.
■ Continuing to scale learning and development programs.
■ Mentorship matching in our talent management platform. In digital manufacturing, we’re working on ways to connect information from our engineering processes all the way into our operations and the maintenance of our equipment. Using new technologies, models, and advanced analytics, we will help drive productivity and capital efficiency, essentially creating a digital thread for manufacturing to carry us into the future.
Photo submitted by: Billie Jo Ferree | Toledo, Ohio, U.S. White Star Park Bike Trail, Gibsonburg, Ohio, U.S.
2020 Owens Corning Sustainability Report | Our Approach | Digital Transformation | 75 COMPLIANCE AND BEYOND
In this chapter: STRATEGY & APPROACH INITIATIVES PERFORMANCE GOING FORWARD
As a global business, we are subject to local, national, and international laws and regulations, which provide us with a baseline for our sustainability endeavors. Owens Corning, however, believes that when it comes to making the world a better place, legal imperatives are just the beginning. We recognize that increasing our handprint and reducing our footprint often require us to go beyond compliance in our environmental, social, and governance efforts.
We have a number of initiatives in place to help us meet or exceed regulations and laws in the places where we conduct business. They represent a wide range of issues, and each of them serves to further reinforce our commitment to sustainability.
Photos submitted by: Cheryl Smith | Granville, Ohio, U.S. Dawes Arboretum, Newark, Ohio, U.S.
2020 Owens Corning Sustainability Report | Our Approach | Compliance | 76 Our Environmental Management System STRATEGY Owens Corning’s Environmental Management System (EMS) is designed to help AND APPROACH us adhere to the principles in our Environmental, Health, Safety, and Product Stewardship Policy. The EMS is a collection of policies and procedures regarding the management of environmental performance in our facilities, including compliance, footprint reduction, and management systems. Through our EMS, we can set and review environmental objectives and targets that drive corrective actions and ensure continual environmental improvement. All our facilities around the world are required to implement the system, track their progress, and perform environmental self-audits.
Our EMS includes the following elements:
■ Environmental policies that ■ A system wherein all required ■ Operating procedures to control provide a framework for environmental tasks are assigned environmental impacts, updated setting and reviewing our to appropriate personnel and according to the Management of environmental objectives, as well completed correctly and on time. Change process. as a commitment to continuous ■ An organizational structure that ■ Documented emergency procedures improvement and pollution identifies specific environmental and plans for responding to known prevention. authorities and responsibilities. and potential emergency situations ■ A process to identify significant that could have an impact on the ■ Assurances that personnel have the environmental aspects and impacts environment, in alignment with an training and competency needed to and develop an action plan to EHS Emergency Response Plan. carry out assigned work related to achieve objectives and targets environmental impacts. ■ A process to identify, report, based on our policies and those investigate, and correct non- significant environmental aspects ■ Procedures that outline how conformities. and impacts. environmental information is communicated internally and ■ Periodic assessments to ensure ■ Identification of legal and other externally. the effectiveness of the EMS and obligations, including regulatory its progress toward meeting its requirements, Owens Corning ■ Processes for the storage, environmental objectives and targets. standards, and other obligations, retrieval, and retention of such as ISO. environmental records.
Photos submitted by: Josh Strake | Granville, Ohio, U.S. Scituate Jetty, Massachusetts, U.S.
2020 Owens Corning Sustainability Report | Our Approach | Compliance | 77 The Owens Corning Code of Conduct Owens Corning’s code of conduct is an extension of our corporate values and guides our approach to business. It contains our 10 guiding principles for ethical business conduct, which are designed to ensure that our employees act with integrity, avoiding even the appearance of illegality or impropriety. Each principle is supported by one or more business conduct policies that detail compliance expectations. According to our code of conduct, employees are expected to:
1. Value human health and the environment. Throughout all our operations, we work to keep 8. Keep accurate records. Our employees safe and healthy, financial reporting, records which extends to preserving the management, and response to environment that sustains life. audits and investigations must be 2. Act with integrity. In addition accurate and timely. to ensuring anti-corruption 9. Ensure that commitments are in our interactions, we properly made. All aspects of our require transparency where legal obligations must be properly political contributions, travel, approved and recorded. Photos submitted by: entertainment, gifts, and other Amanda Meehan | Toledo, Ohio, U.S. expenses are concerned. 10. Properly use company electronic Hellebore flowers, early spring flowers, Wildwood Metropark in Toledo. systems. Our company’s 3. Treat others respectfully. We computer resources, networks, place a strong emphasis on and internet and email systems promoting diversity and preventing should be used appropriately at harassment. all times. 4. Respect and preserve Our code of conduct and guiding Owens Corning maintains a confidential information. We principles are inspired by and aligned confidential business code of conduct expect our employees to take with the United Nations Global helpline and other mechanisms for a strong stance against insider Compact (UNGC), the Universal receiving advice and concerns from trading, guard our intellectual Declaration of Human Rights, the our employees. Issues raised through property, and ensure data privacy U.S. Foreign Corrupt Practices Act this helpline are reviewed by the vice across all communications, (FCPA), the U.K. Bribery Act, and president of internal audit and legal including social media. the Organisation for Economic Co- compliance team. Further investigation 5. Compete vigorously but lawfully. operation and Development (OECD) and follow-up may be conducted by Fair competition is essential to Anti-Bribery Convention. the internal audit team or external acting ethically, and employees consultants, depending on the nature Owens Corning’s business conduct must comply with all antitrust of the issue. council and compliance committee laws. Anti-competitive behavior have oversight and responsibility will not be tolerated. for worldwide compliance with 6. Honor trade restrictions. We these policies. Our general counsel must abide by all import and and corporate secretary sit on both export controls, as well as policies the business conduct council and regarding boycotts. compliance committee, and the assistant secretary to the board 7. Create a no-conflicts culture. sits on the compliance committee. Employees may not advance Both groups report results to the personal interests at the expense audit committee of the board, which of the company. provides oversight.
2020 Owens Corning Sustainability Report | Our Approach | Compliance | 78 COMPLIANCE INITIATIVES
The following represent some of our efforts to exceed expectations and go beyond compliance.
Environmental Compliance and protection of the environment. Photos submitted by: These laws and regulations cover Julie Childers | Granville, Ohio, U.S. Owens Corning has policies and Caesar Creek, Ohio, U.S. air emissions, discharges to water, procedures in place to ensure that our management of hazardous materials, operations are conducted in compliance handling and disposal of solid wastes, with all relevant laws and regulations. and remediation of contaminated Through these efforts, we are able to sites. To ensure our compliance with meet our high standards for corporate these regulations, we rely on our EMS, sustainability and environmental which is based on the principles of stewardship. Teams of environmental ISO and helps our manufacturing professionals conduct internal facilities track progress toward our environmental assessments at both the long-term sustainability goals, which site and business level, using risk-based require significant global reductions procedures that include data analytics in our environmental impacts that go and discussions with management. beyond compliance. Our manufacturing facilities are subject to national, regional, and local laws and regulations related to the presence of hazardous materials, pollution, In 2020, our EMS for approximately 36% of our locations was certified to ISO 14001, which accounts for 50% of our employees. Additionally, approximately 47% of our locations were certified to the ISO 9001 standard for a QMS (Quality Management System) in 2020, representing approximately 61% of our employees.
2020 Owens Corning Sustainability Report | Our Approach | Compliance | 79 Data Privacy We also continuously strive to Data Privacy, Data Security, and strengthen our data privacy program. COVID-19 Because we view data privacy as In recent years, we have taken on the an element of personal safety, we The global pandemic is virtually following initiatives: comply with global privacy laws, and unprecedented, especially as it relates ■ we collect, process, and transfer We have expanded the reach of our to issues of data privacy and data personal data in a trustworthy manner GDPR standards. security. As we have worked to keep worldwide. Our commitment to data ■ We have developed our own global people safe, we have also had to privacy extends to all Owens Corning data protection standards. consider how we view issues of data employees and our stakeholders. privacy and its role in monitoring our ■ We have raised awareness of data employees’ health information. We To address data privacy, Owens privacy within our organization. have had to be cognizant of differing Corning works to: regulations around the world and ■ We have adapted our IT systems ■ Minimize data collection. ensure that we are in full compliance and platforms to reflect a “privacy with regard to collection of information ■ Protect collected data. by design” perspective. such as employee temperatures ■ Limit access to personal ■ We assess the IT environment and other symptoms that could be information to the personnel who and technical security systems of indicators of COVID-19. We established need it (our systems owners and companies we acquire, ensuring rules for our Crisis Management Team data holders). that data collection and processing to ensure there are safeguards in comply with our existing policy. place to carefully monitor the flow of ■ Provide system owners and data information. handlers with extensive training We have also implemented enhanced on the EU General Data Protection security measures designed to protect While employees working remotely is Regulation (GDPR). against misappropriation or corruption not new for Owens Corning, the need of our systems, intentional or for social distancing has meant more ■ Ensure that processes are in unintentional disclosure of confidential people than ever are working off-site. place to respond to personal data information, or disruption of our With that, we have sought to maintain requests and to mitigate or address operations. security by working to ensure that data any privacy breach or other issues. is protected and examining the ways in Owens Corning has established which people access information. information security controls to prevent unauthorized access to our systems. While audits of these controls are not regularly scheduled, they may be reviewed as needed during the audit process. Owens Corning received zero substantiated complaints of customer Photos submitted by: Milind Vishvanath Rajpurkar | Taloja, India data breaches in 2020. Satichiwadi, Panvel India (left). Gadeshwar Dam backwater, Panvel, India (right).
2020 Owens Corning Sustainability Report | Our Approach | Compliance | 80 COMPLIANCE PERFORMANCE
Because we’re committed to a beyond compliance approach, we see the benefits across our operations.
Environmental Control addressing climate change, toxic air to, the federal Resource Conservation emissions, ozone-forming emissions, and Recovery Act (RCRA), and similar Owens Corning defines significant and fine particulate matter. state or local laws pertaining to the environmental actions as those management and remediation of in which the total cost of fines or New air pollution regulations hazardous materials and petroleum. penalties are equal to or greater could impact our ability to expand The company has also been named a than $100,000 USD. There are no production or construct new facilities potentially responsible party under the significant environmental actions to in certain regions in North America United States Federal Superfund law, report for 2020. The company has and around the world. We continue or state equivalents, at a number of not experienced a material adverse to monitor these potential impacts disposal sites. We became involved in effect on our capital expenditures on our manufacturing operations these sites as a result of government or competitive position as a result and ensure that we have evaluated action or in connection with business of environmental control legislation any new laws, regulations, and/or acquisitions. and regulations. Operating costs activities that could potentially have associated with environmental a material adverse effect on our At the end of 2020, Owens Corning compliance were approximately current operations, financial condition, was involved with a total of 21 sites $39 million in 2020. We continue or long-term strategy. In support of worldwide, including eight Superfund to invest in equipment and process these efforts, we continue to make sites and 13 owned or formerly owned modifications to remain in compliance progress in the reduction of our sites. None of the liabilities for these with applicable environmental laws and footprint globally. sites are individually significant to regulations. Owens Corning. On December 31, Owens Corning is involved in 2020, the company had an accrual Regulatory activities of particular remedial response activities and totaling $7 million for these costs. importance include those addressing is responsible for environmental Changes in required remediation air pollution, water pollution, waste remediation at a number of sites, procedures, timing of those procedures disposal, and chemical control. Over including certain currently owned at existing legacy sites, or discovery the next two to five years, we expect or formerly owned plants. These of contamination at additional sites passage and implementation of new responsibilities arise under a number could result in material increases to our laws and regulations specifically of laws, including, but not limited environmental obligations.
Significant Spills
Owens Corning acknowledges that releases, spills, or disposal 2017 2018 2019 2020 of wastes and other substances by our operations could have Number of Spills 0 0 0 0 negative environmental impacts. As part of Storm Water Total volume of spill Pollution Prevention and Spill Prevention Countermeasure and 0 0 0 0 Control in the U.S., and according to local legal requirements, (cubic meters) we train our employees on best practices for avoiding and addressing spills. Response procedures for managing spills, as well as other emergencies, are in place for our facilities.
In the event of an incident, we recognize our responsibility to complete environmental remediation, maintain remediated sites, and provide funding support at multiparty disposal facilities. Owens Corning has had zero significant spills since 2013.
2020 Owens Corning Sustainability Report | Our Approach | Compliance | 81 Owens Corning strives to be a GOING net-positive company, working to increase our positive impact while FORWARD reducing our negative impact. That means continuing to raise the bar for ourselves, going beyond laws and regulations that often only mandate minimum requirements. Looking to the future, we intend to reinforce our standing as an organization where sustainability, integrity, and compliance are integral to our identity as a corporate citizen that acts based on the real needs of the planet.
As the realities of climate change become more evident over the next decade, we expect regulatory requirements around the world will become increasingly stringent. In addition, the pandemic has reinforced the need to remain responsive to global changes that can affect the way we do business. With our commitment to corporate citizenship, we are preparing to remain ahead of expectations, exceed requirements, and go beyond compliance wherever possible.
Photo submitted by: Brianne Bass | Rockford, Illinois, U.S. Rocky Mountains, Colorado, U.S.
2020 Owens Corning Sustainability Report | Our Approach | Compliance | 82 TOTAL PRODUCTIVE MAINTENANCE
In this chapter: STRATEGY & APPROACH INITIATIVES GOING FORWARD
At Owens Corning, we are on a March to Zero — zero accidents, zero defects, zero losses. One way we’re striving to get to zero is through Total Productive Maintenance (TPM). TPM is a management system designed to help companies improve manufacturing productivity, and we believe it can benefit us in many ways throughout our operations.
That’s because TPM represents a different way of thinking about our work environment. It works hand-in-hand with advanced manufacturing and process excellence initiatives to deliver world-class manufacturing performance in support of our growth strategy. TPM encourages all employees to take an active role in maintaining, operating, and improving production and processes throughout their workdays, then empowers them to take corrective action if issues arise. Employees are trained to be on the lookout for the abnormalities that can lead to problems over time, Photos submitted by: Merry Qu | Qingdao, Novia, China leading to the kind of thinking that benefits not only the Novia Safety & TPM Competition Award (top). company, but also employees in their personal lives. The Novia team accepting the TPM Star Award prior to COVID-19 restrictions (bottom).
2020 Owens Corning Sustainability Report | Our Approach | Total Productive Maintenance | 83 There are eight pillars that make Total Productive Maintenance an effective means of STRATEGY reducing accidents, defects, and losses. Each pillar represents a multifunctional group that implements processes, provides training and coaching, leads cases, and assesses AND APPROACH adherence to methodologies.
■ Training and development (T&D). and assign the right resources ■ Quality Maintenance (QM). We We seek to give each employee to these tasks. By deploying work to establish and maintain the knowledge and skills to carry the appropriate methodology to optimal equipment conditions out their responsibilities safely address these issues, we can to help prevent losses in quality. and effectively as a member of an ensure continuous improvement By providing employees with the autonomous team. We use skills across our operations. necessary systems, tools, and assessments to identify gaps. Then, skills, we can achieve a zero-defect ■ Planned Maintenance (PM). through training and sharing of experience across our operations. Combined with autonomous best practices, we work to improve maintenance, this pillar enables us ■ Office and administration. This employees’ skills in a safe and to be more proactive. By developing pillar stresses activities that practical way. and supporting systems and increase the quality, usefulness, ■ Autonomous Maintenance (AM). processes that enable employee and timeliness of information for We create a set of activities engagement and data-driven internal and external customers, to restore equipment to its continuous improvement, we which leads to real improvements optimum condition to improve can deliver stable and reliable and aligns administrative resources safety, quality, and productivity. operations and put ourselves on with performance needs. By involving equipment users in track to zero losses. ■ Environmental, health, and safety the daily management of their ■ Early Management (EM). We (EHS). By combining corporate equipment and processes, we work to eliminate losses and EHS programs with TPM activities, empower them to prevent or fix abnormalities in the design and we can further the culture of safety problems, slow deterioration, development of new equipment, among all employees. and drive change throughout our processes and products. This culture and our operations. reduces the time between ■ Focused Improvement (FI). TPM development and launch, and it teams identify and quantify losses helps lower life cycle costs. EM throughout the plant, then they also drives the development of prioritize ways to eliminate losses equipment that is user-friendly and sustainable.
TPM builds upon the principles of 5S, which are designed to ensure that processes remain organized, disciplined, and efficient. 5S consists of five basic steps:
Sort Set in Order Shine Standardize Sustain Remove all Organize the Clean and inspect Create standards Maintain a culture unnecessary items remaining items. the work area. that will ensure of continuous from the work area. consistency going improvement. forward.
Since committing to TPM in 2016, we have made great strides in launching and implementing the approach throughout our global operations. Across all three businesses, our plants have declared their commitment to TPM. In addition, we have begun to see ways to use TPM in a range of other applications, including safety, health and wellness, and employee learning and development.
2020 Owens Corning Sustainability Report | Our Approach | Total Productive Maintenance | 84 TPM INITIATIVES ■ In September 2020, the Roofing TPM is a total team effort, which Training & Development (T&D) we believe creates added value for AT OWENS CORNING network held their second our employees and our customers. Coordinator Conference. Due to The following are a few examples of Every plant is at a different point on COVID-19 restrictions, the event the ways in which our TPM efforts the TPM journey, but each is moving was held virtually. Participants have had a positive impact on our with purpose and sharing TPM lessons shared best practices, and there operations around the world. across the network. All plants follow were training opportunities in data a strategic approach, starting with analysis, problem solving, and ■ The TPM team at our Owens a preparation plan that focuses on PM/AM task transfer. Corning Paroc stone wool plant in daily management — the foundation Hässleholm, Sweden, has made of TPM. An analysis of baseline key ■ The pandemic also led us to move great strides toward improving performance indicators is incorporated our TPM Academy online, and safety and efficiency. In one case, in the preparation plan. This analysis to create the Virtual Instructor- we implemented a function that is centered on safety, quality, delivery, Led Training (VILT) program. The can stop the conveyor belt in cost, production, and morale, including original four-day training was milliseconds when something management indicators that drive replaced with eight 90-minute causes the belt to lock. This protects accountability and results. We survey modules spread out over four the conveyor belt motor and saves employees to help plant leaders weeks. Specific VILT programs us both time and money, as major understand their teams’ readiness have also been held for TPM Pillar breakdowns in the curing oven for TPM and to identify opportunities Leaders in FI, PM, QM, and T&D, always take a long time to repair. to enhance knowledge and improve with separate sessions held for ■ skills. Based on this information and plants in China. The Advanced Manufacturing team best practice examples, plants create has taken advantage of the VILT ■ The daily briefing meeting is a key training workshops and team-building program, with 300 team members component of TPM. In response opportunities appropriate to their stage participating in the first two Early to the pandemic, the Technical in the journey. Manufacturing sessions, offered Insulation team in Trzemeszno, in 2020. Three more modules have Even in the midst of the COVID-19 Poland, applied their commitment been offered in the first quarter pandemic, Owens Corning’s TPM to continuous improvement and of 2021, covering Gated Process teams have worked to maintain their found an online solution. They Design and tools for Design for momentum. The following are a few adopted an online application Quality, Design for Maintainability of the initiatives that Owens Corning that allows them to transfer task and Life Cycle Costing. introduced to keep us heading in the records to a virtual board and ■ right direction on our March to Zero. assign owners and deadlines. The Following a self-assessment in team can communicate remotely, 2020, Insulation T&D pillar leaders manage tasks, and document recognized an opportunity to progress according to the PDCA increase proficiencies. The team (Plan-Do-Check-Act) model. created a self-service collection of training tools, including templates and completed samples. Every tool is accompanied by self-study resources, including quick reference guides, explanation videos, and practice videos. The tools include step-by-step instructions to make implementation simpler for users. TPM is more than a way to keep machines running smoothly — it’s a way of thinking and approaching work that engages all employees in maintaining, operating, and improving production and processes.
2020 Owens Corning Sustainability Report | Our Approach | Total Productive Maintenance | 85 JIPM Excellence Awards
The Japan Institute of Plant Maintenance (JIPM), the organization that first proposed TPM and continues to advocate for its implementation around the world, has awarded several Owens Corning facilities JIPM Excellence Awards.
To be eligible for the Award for TPM Excellence, a plant must have a minimum of three years of achievement using TPM. They must be able to demonstrate activity based on eight pillars of TPM by all staff members, Photos submitted by: and they must have completed Step 4 for autonomous Jorge Goulart | Rio Claro, Brazil The Owens Corning Rio Claro team maintenance activity. They must have developed an celebrating their JIPM award. infrastructure for TPM activity and obtained tangible and intangible achievements. Once a plant has received this Level 1 award and been active in TPM for an additional two years, they are eligible for the Level 2 Award for Excellence in Consistent TPM Commitment.
Consistency Award (Level 2) ■ Rio Claro, Brazil (Glass Reinforcements) *
■ Tlaxcala, Mexico
■ Yuhang, China
Excellence Award (Level 1) ■ Apeldoorn, Netherlands *
■ Guangzhou, China *
■ Jackson, Tennessee, U.S.
■ Kimchon, South Korea
■ L’Ardoise, France *
■ Rio Claro, Brazil (Technical Fabrics) *
■ Taloja, India
■ Tianjin, China
* Awarded in 2020
2020 Owens Corning Sustainability Report | Our Approach | Total Productive Maintenance | 86 SPEAKING OF SUSTAINABILITY
Dominick Lewis Integrating TPM into a company’s operations requires a great deal of commitment and collaboration — and more than a few steadfast champions. Dominick Lewis, a production coordinator at our plant in Atlanta, Georgia, U.S., is one such champion. Having begun her TPM training at a previous job, Dominick has helped oversee the implementation of TPM principles throughout the Atlanta plant’s operations, and she offers a number of insights into how this management system can be beneficial across a range of applications.
On the benefits of TPM for Owens Corning and On TPM as a mindset throughout our operations our employees TPM is the way we work — it’s what we do. It’s not production TPM helps with efficiency in all our company metrics, the and then TPM. It’s not maintenance and then TPM. It’s not top three being safety, quality, and productivity. As far as the shipping and then TPM. TPM is what we do at the top, then individual, I believe it sparks operator ownership. It helps all those other things fall into place. Whether it’s productivity, them to feel more like a subject matter expert, because efficiency, pack rate, quality, or safety, TPM can teach us how it helps employees understand their equipment, not only to do those things if we follow the process. I try to let people on a surface level, but deeper than they probably normally know if you make TPM first and foremost, then it’s not hard to would on a day-to-day basis. I think the biggest impact on implement it into everything else. the employees is just the teamwork aspect, not only at the peer-to-peer level, but with leadership and operations. It also On TPM and our sustainability efforts helps morale, because they see the leadership team come The basic core concept of TPM is zero losses. If we keep get involved in the activity, get dirty with them, and be just as our mind set on that goal, and how that may look with our invested. It shows they care about the program. It’s not just sustainability and with the metrics we have in place, I do a “do as I say” situation. believe TPM can help with it. We just need to make that our main focus, use the process that TPM has put in place, and we On maintaining TPM during COVID-19 could get to where we need to be, it shouldn’t be a problem at and beyond all. It’ll be hard work, but we can get it to zero. Now that COVID-19 is here, we have to rethink how we do TPM within a facility. Once we get an understanding of what that looks like, we can make a plan for how that looks for each one of our pillars, then get the momentum back to where it was prior to COVID-19. We definitely have to Dominick Lewis think outside the box, have some different creative ways of Production Coordinator, Roofing and Asphalt, Atlanta, Georgia, U.S. getting our teams back together to get them back on track. Photo taken in Lake Lanier, Georgia, U.S.
2020 Owens Corning Sustainability Report | Our Approach | Total Productive Maintenance | 87 TPM is more than a maintenance GOING plan; it’s a mindset that empowers people to proactively address FORWARD issues that can lead to problems. Because of this, TPM users often find themselves looking for ways to implement its principles in other areas, both at work and at home. Owens Corning is using TPM to reduce the amount of waste going to landfill, cut energy usage, and improve material yields.
As we continue to implement TPM in our operations, we have also seen its potential in our safety and health initiatives. Our progress in integrating TPM into those areas can be found in the Living Safely and Health & Wellness chapters of this report, and as we look ahead to 2030, we believe TPM will remain a key component in these important sustainability initiatives.
Photo submitted by: Claudia Cantu | Houston, Texas, U.S. Ari Rios performs Planned Maintenance at our facility in Houston.
2020 Owens Corning Sustainability Report | Our Approach | Total Productive Maintenance | 88 historically the bulk of the company’s take if these changes are enacted. EBIT has been generated within the To the extent tax law changes are TAX United States. enacted which affect our tax losses, we implement initiatives to ensure that any Owens Corning provides an restrictions, or reduction in the value of explanation of why the effective tax the losses, are minimized. STRATEGY rate differs from an expected tax rate for all countries within the MD&A Owens Corning uses research software Owens Corning evaluates all tax section of Form 10-K filed with the and receives tax related periodicals on opportunities globally, but we only SEC. The expected Federal tax rate of a daily, weekly, and/or monthly basis prudently implement those strategies 21 percent is based on the U.S. federal to monitor legislation changes for all which are consistent with the tax rate as the majority of operations our operations located throughout the company’s risk profile. The company fall within the U.S. An additional table world. The tax function works very always assumes that every strategy is provided in Note 18 Income Taxes closely with our Corporate Financial and initiative will be examined explaining the material differences Planning & Analysis (FP&A) and by the relevant fiscal authorities. between the effective tax rate and the business finance and operational Consequently, all our positions are well statutory tax rate. teams to understand the long-term documented and researched. trend of our global operations by The risk of tax law changes is jurisdiction and to identify, in advance, Owens Corning’s earnings before constantly analyzed. Owens Corning what short-term strategic actions taxes and current and deferred tax actively monitors all the proposed tax the operations are considering. We expense are broken out by United law changes globally to determine then implement short and long-term States and Foreign in Note 18 Income which changes could potentially have planning initiatives to ensure that these Taxes on Form 10-K filed with the SEC. an impact on the utilization of our actions and trends are supported by Countries outside the US are shown as tax losses. We then analyze what, if the appropriate tax planning to ensure “Foreign” in the 10-K reporting because any, pre-emptive actions that we can minimal impact to tax expense.
Financial Assistance Owens Corning receives financial assistance in the form of various tax credits, which is reflected in the table below.
TAX RELIEF AND TAX FINANCIAL COVID-19 OTHER GOVERNMENT COUNTRY SUBSIDIES GRANTS CREDITS INCENTIVES BENEFITS BENEFITS Belgium $137,895 Brazil $194,340 Canada $2,921,891 China $500,176 $1,318,014 $208,986 $3,778,851 $144,994 Czech Republic $20,924 Finland $527,104 $146,363 France $182,340 India $2,370,599 Italy $59,261 Japan $124,583 Korea $341,113 $19,385 Netherlands $45,585 $133,336 Poland $225,173 Singapore $331,000 $102,460 United Kingdom $265,743 United States $7,569,178 U.S. Territories $3,256,345 TOTAL $14,818,116 $1,913,340 $133,336 $208,986 $7,604,409 $247,454
Grants include: investment grants, research and development grants, and other relevant types of grant. COVID-19 Benefits Include: Wage subsidies, Social Benefits exemptions, Utilities exemptions, Job Stability compensation. In 2020, Owens Corning identified several new processes in one of our U.S. facilities that qualified for the U.S. R&D tax credit. The substantial investment in the new processes identified resulted in an increase in U.S. R&D credits generated in 2020 compared to prior years, which is reflected in the table above.
2020 Owens Corning Sustainability Report | Our Approach | Tax Strategy | 89 EXPANDING OUR PRODUCT HANDPRINT
Our efforts to expand our product handprint include the following elements: ■ Circular Economy. See how we’re working to close the loop on waste, from the extraction of raw materials to smarter processes to At Owens Corning, end-of-life strategies. we not only work to reduce our ■ Product Innovation & Stewardship. footprint, but Discover how our approach to product development we also strive and improvement is informed by our commitment to to increase our sustainability. handprint — the ■ Sustainable Growth. positive impact our We believe what’s good for the environment can also products can have be good business. Learn what we’re doing to integrate for our customers sustainability into our strategies. and the planet. ■ Supply Chain Sustainability. We hold suppliers to the same standards we apply to ourselves — in emissions, human rights, and more. See the difference it makes in our sustainability efforts.
Photo submitted by: Jill Ries | Granville, Ohio, U.S. Marilyn Pennington checking the asphalt tank at the Granville S&T Roofing center.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | 90 CIRCULAR ECONOMY
In this chapter: 2030 GOALS STRATEGY & APPROACH INITIATIVES PERFORMANCE GOING FORWARD
In the past, manufacturers used a straightforward, linear model to produce their goods: extract raw materials, build the products, discard the waste, and throw everything away when it’s no longer in use. The result? Depleted natural resources, increased pollution, and overflowing landfills. Clearly, an unsustainable model in every sense of the word.
Today, Owens Corning is taking every opportunity to transform our operations to a circular economy model, one in which virgin raw materials, waste, energy and emissions are minimized through intelligent design, renewable and recycled input, energy-efficient production, and recycling of products at the end their life cycles.
Photos submitted by: Priyanka Ruparel | Mumbai, India With growing scientific evidence recognizing circular Photos from the Kala Ghoda Arts Festival, a economy as a significant tactic for reduced global festival that gives back to the community (top). A rose from Priyanka’s home garden (bottom). CO2 emissions and combating climate change, we aspire to ensure that every raw material or resource extracted for our products and processes remains in the economy indefinitely.
Our circular economy initiatives align with the following UN SDGs: Sustainability Materiality Definition: A circular economy is one in which virgin raw materials waste, energy and emissions are minimized through intelligent design, renewable and recyclable input, energy-efficient production, and enabling the recycling of products at the end of their life cycles. We are committed to supporting the global transformation to a circular economy.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Circular Economy | 91 2030 GOALS FOR THE CIRCULAR ECONOMY T O C By 2030: Establish viable circular economy business M M models involving our materials and how they are used by collaborating up and down the supply chain, with customers, suppliers, communities, academics, CIRCULAR policy makers, government entities, and other ECONOMY organizations.
Increase recycled content and decrease virgin raw E T L materials used in our products.
Develop technical solutions and practical business models for our product materials and packaging to U C continuously be used for beneficial purposes even after they are no longer used for the original purpose.
Owens Corning’s commitment to the content in our light-density building STRATEGY circular economy model starts with the insulation, typically coming from AND APPROACH following objectives: recycled beverage containers. ■ Avoid the use of virgin raw materials Another growing concern and Our approach covers whenever possible. the entire life cycle of opportunity for us is our strategy for ■ Source materials and serve products’ end-of-life, when they can our products, from the no longer be used for their original extraction of raw materials customers in ways that minimize transportation impact. purpose. In Europe, there is already to end-of-life solutions. a legislative drive toward developing ■ Manufacture products in a end-of-life solutions for products, and way that has the least negative Owens Corning recognizes the growing environmental impact. need to deliver on increasingly stringent measures. As we face challenges ■ Ensure that materials used in our related to finding applications and products and packaging remain in external companies that accept various the economy indefinitely. types of byproducts, we are working Relying less on virgin raw materials to create new solutions that minimize is essential. The demand for recycled waste at every step. This often involves content among our customers is taking materials back into our own already strong, and we know it’s operations or repurposing materials for only growing stronger. Our ability to alternate uses. Either way, our goal is to meet our customers’ expectations ensure that materials are not discarded, of our products’ content, with full and our approach is to openly transparency, will be a key advantage collaborate with others to succeed. as demand increases. We are calling on our partners Product innovation is also central to throughout our value chain to help us our approach. From the outset of our in our transition to a circular economy sustainability efforts, we have been model. We will rely on the companies working to increase the recycled with which we do business to help content in our products whenever develop strategies that will limit the possible. For example, our fiberglass extraction of virgin raw materials and insulation typically contains anywhere seek out new opportunities to keep from 53% to 73% recycled content. This products out of the landfill and useful includes a high level of post-consumer within the global economy.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Circular Economy | 92 CIRCULAR ECONOMY INITIATIVES
Building a circular economy model requires collaboration throughout our entire organization.
In November 2020, we announced The new organization will have two We expect significant synergy between the establishment of a new circular focus areas: the manufacturing and end-of-life economy team to work full-time toward ■ Manufacturing. This work will be led initiatives as we create business our goal of building a circular economy by the director, circular economy — opportunities to reclaim customer model to further our sustainable growth manufacturing solutions, reporting waste, deconstruct end-of-life strategy. This new team consolidates to the CSO, and will focus on the products, and discover uses for those and builds on existing work done over efforts needed to meet our 2030 recovered materials in our operations the past decades. It will be a hub for goal of reducing the intensity of and products. thought leadership, expertise, and waste generated by our processes shared learnings that can drive progress by 50%, and then find ways to reuse bigger, further, and faster. or recycle the rest. Additionally, The circular economy team, led by our this individual will lead the work to chief sustainability officer (CSO), will expand the use of recycled materials define goals and prioritize projects that in our manufacturing operations and accelerate our ambitions to reduce our products, across all businesses. waste, find ways to recycle and reuse ■ End-of-life solutions. This team will materials, and build partnerships to seek innovative technologies and solve end-of-life issues for Owens business models for our products Corning products and applications. The and materials to be reused and team will partner with subject matter repurposed indefinitely. The leader experts and teams across our company of this team, an influential balance of and with other key stakeholders in business strategist and technology the industry to execute plans. This champion, will report to the CSO, and structure creates shared accountability partner with their R&D, commercial, for meeting our goals. The circular and corporate development Photos submitted by: economy is not a “sustainability team Laetitia Maccioni | Chambéry, France counterparts to shape the vision and Aytekin Kaya taking a sample for quality initiative” but a challenge, opportunity, execution of the next leap in Owens assurance at our Apeldoorn plant (left). and goal shared by all businesses and Corning sustainability. functions, in all regions.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Circular Economy | 93 Take-Back Models
A key aspect of the circular economy model involves manufacturers working proactively to accept more responsibility for downstream waste of finished products used by customers. This goes beyond end-of- life solutions to include waste created during construction, subsequent fabrication, or installation. In 1996, Paroc, our European mineral wool Photos submitted by: business, developed the Rewool Fredrik Svensson | Hällekis, Sweden program, a customer take-back model Picture of the Owens Corning Paroc factory at for their mineral wool. Leftovers from sunset (top). trimming stone wool insulation during Jill Ries | Granville, Ohio, U.S. installation, which would have once Julia Faeth testing asphalt (top right). gone to a landfill, are now collected and Chris Armintrout testing shingles (bottom right). upcycled for future use.
This required technological innovation throughout the process, from when and how the material is collected in bags, containers, or compressed bales, through storing, pretreatment, and the final recycling procedure. In of promise for the circular economy developing this process, the team and will serve as a learning-pilot for worked to ensure that it was safe, implementation in our other markets. easy to work with, and efficient. For Shingle Recycling example, in one business model, stone wool cut-off is pretreated by grinding Each year, over 13 million U.S. tons of it, then it is fed directly back into new shingle waste is generated. Less than products, eliminating processes that 10% of that is manufacturing waste, would involve additional resources, and the remaining balance consists of such as remelting. shingles removed at the end of their life, after decades of use protecting The development of a Since Owens Corning acquired the homes. Over the years, Owens Corning circular economy model company in 2018, Paroc has continued has attempted to solve this problem first requires ambitious to improve the take-back model in with varied approaches. Although resolve, then a process, Sweden, and we are expanding by these efforts, including attempts to a supply chain, needed entering agreements with partners for use shingle waste in the manufacture products, and and a support in collection and logistics to of new products, have brought about market to go into. increase efficiency and flexibility in our moderate success, we have built upon model. In January 2020 an expansion the valuable insights we have gained of the model was launched in Finland, in into our materials and processes. which customer waste from installation is processed and recycled into blowing By deconstructing the component parts wool. Our recycling partner reported of the shingle — its granules, glass, In creating a circular economy model that about 5,000 MT (mainly stone wool sand, and filler — we are able to extract for roofing shingles, the development and a small amount of glass wool) was the value from those components. of an economic and scalable process recycled in 2020. We are working with Owens Corning is working with a range to deconstruct the shingle into usable our customers to tailor the model to suit of companies, from large corporations materials is the primary challenge. the specific needs of the building sites, to small entrepreneurial companies in Owens Corning is working with several including the most ambitious sites that adjacent industries, to develop efficient, technology partners to engineer a are striving to achieve zero waste-to- effective, and practical ways to bring process that recovers granules and landfill. This is an ongoing project for end-of-life shingle waste into the removes residual asphalt and filler. We Paroc, one that shows a great deal circular economy. are moving toward successfully taking
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Circular Economy | 94 recovered granules and placing them in headlap of laminated shingles, so the next step is developing a way to do this, at scale, with production- hardened processes.
We are also working with the markets into which these products would go, from roofing solutions to industrial asphalt and the specialty paving industry. The use of reclaimed asphalt pavements (RAP) is one of the largest circular economies in the U.S., representing over 85 million tons each year. Our Specialty Paving business participates in this through the development of unique binders that allow for increased use of RAP in asphalt pavement.
The Specialty Asphalt paving business has leveraged their contractor network 3D Printing and our unique position in the roofing and paving industry to develop One way we are using technology to opportunities for recycling post- implement the circular economy model industrial Recycled Asphalt Shingles is through 3D printing, including metal Photo submitted by: (RAS). At our facility in Summit, Illinois, 3D printing. We have found it to be a Thomas Baldy | L’Ardoise, France Thomas and Sofian Bouslah with the 3D printer. U.S., this effort successfully diverted valuable resource in our development over 15,000 U.S. tons of manufacturing of prototypes, and we are actively waste in 2020. The contractor we working to expand our capacities in worked with won a prestigious that area. In 2020, we collaborated with sustainability award from the Illinois The Ohio State University to 3D print Road & Transportation Builders a critical part in our manufacturing Association for this effort. process, and we are planning more projects for 2021. The implementation At its peak in 2015, two million U.S. of 3D printing offers us a number of tons of RAS were used in paving, and advantages in reducing waste and although that amount has dropped enabling the circular economy, as considerably, we are confident that materials can be recycled back into with the right technical expertise, powder. This creates a closed cycle processes, and products, it can be an with very little waste. In addition, when important contribution to the shingle parts can be printed on demand, we circular economy. can potentially have fewer parts on One other component of our plans to hand as inventory. address 13 million U.S. tons of waste is through our work with industry organizations. Owens Corning is working with the Asphalt Roofing Manufacturers Association (ARMA) and the Asphalt Institute Foundation (AIF) to fund research and work toward solutions that benefit our company, our industry, and ultimately the planet.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Circular Economy | 95 SPEAKING OF SUSTAINABILITY
Beatrice Hallén While the concept of the circular economy might be new to many people, Beatrice Hallen has been immersed in it for years. Working in Skövde, Sweden, as the sustainability leader for Owens Corning’s insulation business in Europe, Beatrice has a deep understanding of the ways that our goals are interconnected, and her expertise has been invaluable as we work toward the development of a circular economy model.
On the difference between the circular economy On the importance of collaboration in and waste management developing a circular economy model Waste is of course very important, but circular economy is In order for us to support our customers in reaching their wider than just waste. It involves the product life cycle and targets, and also to compete with the competition, I think we many other aspects that need to be considered. We need need to stay very close to the market, collaborate with the to think from the beginning: How do we decide what kind customers, and take actions to improve our performance in of materials we use? Can we find recycled content? Can we the area of circularity to increase recycled content, to reduce get rid of any hazardous substances? We need to design for waste, to help customers reduce their waste, and so on. recycling, to decarbonize the way we produce, and to make Collaboration is one key to progress in the circular economy, sure we have a low footprint and a low impact in biodiversity. and that includes the development of take-back solutions. We It’s a model that is far away from the linear model, the take- can’t solve everything ourselves. Finding partners that you can make-waste model, which is still common today. Resources collaborate with really makes me feel good, and it’s important stay in the loop, more or less forever, where we design for us in order to make progress and succeed. products for recycling, reuse, and for a long life.
On the factors that drive the circular economy We’re seeing a rapid change, especially in some markets, in the legislation going fast toward decarbonization and circular economy. It’s also happening in several countries that the market and the customers are an even stronger driver. Many of them want to go faster compared to legislation,which tends to be a minimum requirement. We also have the competitors taking action to improve Beatrice Hallén sustainability performance, and that drives us as well. Senior Sustainability Leader, Insulation Europe, Skövde, Sweden. For many customers, sustainability performance offers a In the garden outside of the home she shares with her family. competitive edge in the business.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Circular Economy | 96 CIRCULAR ECONOMY PERFORMANCE Throughout our operations, circular economy efforts are positioning us well to meet our 2030 goals.
L’Ardoise, France. In the past, our for some of the virgin mineral filler T30 product was wound using we currently use, as well as ways to cardboard sleeves, which could only transform it into flakes to reinforce be used three or four times before boards or as a complement to glass deteriorating. In 2020, we began fiber in thermoplastic compound. replacing the cardboard sleeves In addition, the byproducts from our with an innovative alternative. These manufacturing of glass reinforcements sleeves have a vastly better recycling are used by one of our customers as profile, and they are able to be used a filler in the manufacturing of their up to 80 times, dramatically reducing own products. Our cross-functional waste. The sleeves are also used in team is also developing ways to use our plants in Rio Claro, Brazil, and additional composite byproducts in Yuhang, China. With the sleeves fully other applications. integrated into our manufacturing, we will begin inserting a small chipset Yuhang, China. We are developing into the sleeves, further improving the ways to efficiently recycle the traceability of each unit of product. glass byproduct of our composites manufacturing process back into the Apeldoorn, Netherlands. The scrap furnace, greatly reducing the amount material that is a byproduct of our of waste-to-landfill and lowering our nonwoven composite manufacturing greenhouse gas intensity. This has is being used as input for one of our long been a challenge for Composites, customers. We are working on ways but initiatives like these are an to convert the byproduct into powder excellent step forward. and use it as a substitute replacement
Photos submitted by: Caroline Moreno | L’Ardoise, France New, alternative T30 sleeves (top).
Hans Berkman | Apeldoorn, Netherlands New “hardwood” made from plastic waste, reinforced with shredded spec veil (bottom).
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Circular Economy | 97 WINDS OF CHANGE: PROJECT ZEBRA AND THE CIRCULAR ECONOMY
As part of our commitment to developing circular economy solutions in the growing wind power industry, Owens Corning is proud to participate in the ZEBRA (Zero wastE Blade ReseArch) project, a cross- Wind Turbine Blades sector consortium that launched in As the world comes to rely more heavily on wind power, the need September 2020 and promises to offer to develop end-of-life solutions for wind turbine blades will increase an exciting breakthrough in this area by accordingly. One of the greatest challenges for wind blade recycling designing for recyclability. Created under is the lack of scale in our ability to convert that waste into usable the auspices of the industrial research materials. Left unchecked, the amount of waste will represent 1.3 center IRT Jules Verne in France, the million metric tons of waste in the U.S. alone by 2040. Because ZEBRA project is bringing together Owens Corning produces glass that is used in the reinforced industrial companies and technical centers composite materials in these blades, we are working hard to help from around the world to develop the first solve this challenge. 100% recyclable wind turbine blade.
In the U.S., Owens Corning is collaborating with the Electric The partners in the consortium are Power Research Institute (EPRI), an organization of power all committed to pushing technical utility companies, and the American Composite Manufacturers boundaries in pursuit of the ultimate Association (ACMA) to develop solutions to effectively deal with goal — making wind energy truly part of this amount of waste. In addition to extending the service life of the circular economy. Other companies turbine blades, from 20 years to 30 or 40 years, we have been involved in the project represent every part looking at ways to close the loop where waste is concerned. We of the value chain. have collaborated to develop ways to cut and section the blades, This initiative demonstrates how our strip them of their metal, then shred and pelletize them. The pellets expertise and track record of innovation can then be used as a molding material for a variety of applications, position Owens Corning to be a vital including use in packaging, decking, and railroad tie manufacturing. part of solving sustainability challenges The challenge is to be able to do this economically, at the scale that go beyond the company’s own required to eliminate landfill blades. operations. We are proud to be a part In addition, efforts are being made to find above-ground storage of this groundbreaking initiative, and we options, which allow for a quick transformation from end-of-life are confident that these 100% recyclable in a landfill to other, more beneficial solutions. For example, the blades will go a long way toward our materials can be used in cement kilns where energy and chemical circular economy goals. content can be extracted, and the remaining inorganic materials are a raw material source for the cement. Another alternative involves the Thermolyzer™ process, which uses controlled low-heat pyrolysis technology that enables recovery of both energy and fiber value.
In January 2020, Owens Corning cosponsored a project with the University of Michigan to address circular economy efforts in wind turbine manufacturing. The project, called a Ross Multidisciplinary Action Project (MAP), is a field study in which teams of students apply structured problem-solving techniques to multidisciplinary business problems. Four MBA students spent 12 weeks evaluating and benchmarking circular economy strategies to facilitate wind blade recycling. They delivered their final presentation in April, sharing their analysis and offering recommendations on three primary solutions currently being used as alternatives to sending blades to Photo submitted by: Michele Mazza | Trophy Club, Texas, U.S. landfill. Owens Corning shared their findings with customers in our Wind farms in West Texas. efforts to find mutually beneficial solutions to this concern.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Circular Economy | 98 Protective Packaging For example, one large steel company required recyclable packaging to Single-use plastics are known to be replace the non-recyclable plastic- a major polluter of the environment. Photos submitted by: coated paper they had been using. In They’re non-biodegradable, and they are Michele Mazza | Trophy Club,Texas, U.S. 2020, we worked with them to develop too often disposed of without thought Materials to be remade into packaging options that could protect their steel to where they will accumulate. Without (left and middle). coils in transit and then be safely Red pellets that are produced from trim taking the proper steps to collect, scrap to make FOAMULAR® board (right). recycled. By using different corrosion process, and ultimately reuse or recycle inhibitors, we were able to develop plastics — including packaging — their new nitrite-free VCI packaging to go buildup and ultimate degradation in into our metals packaging products. landfills and oceans threatens both In addition, our take-back program the environment and human health. To creates a pathway that greatly address this critical problem, nations facilitates recycling. The customer can around the world have agreed to use the product to its end of life, we work toward the elimination of single- coordinate with partnering companies use plastics. The European Union to collect and reprocess the material, is leading this effort by announcing and then we are able to reintroduce the new regulations, effective in 2025, to materials into our products, creating a drastically reduce plastic pollution and full closed-loop system. establish circular economies. Reusable FOAMULAR® Packaging Owens Corning is a global producer of woven plastic packaging, used to wrap Broadening their efforts to reduce lumber, steel, and engineered wood the use of single-use plastics, the products. We are currently working Roofing Components team has to reduce plastic waste by recycling repurposed their lumber wrap product our own manufacturing scrap, which as a reusable packaging for shipping is reprocessed and fed back into FOAMULAR®, replacing stretch wrap. our standard production processes. Not only was stretch wrap single- Furthermore, the Roofing Components use, but it also required a tarp to be Product Development team has installed over the pallets on the truck, made significant progress in 2020 to which resulted in expensive additional establish partnerships with European shipping costs. The reusable lumber recyclers to launch a closed-loop wrap packaging not only easily slips recycling program. over the FOAMULAR® pallets and provides Owens Corning with an As regulations around the world exciting branding opportunity, but also continue to evolve, the need for saves the company $2.3 million in packaging solutions that contribute freight costs annually. As an additional to the circular economy becomes an benefit, the elimination of the tarping even greater imperative, and Owens process reduces safety risks as trucks Corning is working with customers to are loaded. develop solutions.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Circular Economy | 99 Owens Corning’s decades-long GOING march in reducing greenhouse gas emissions and increasing FORWARD recycled content provides an actionable foundation for the circular economy. With the linkage between climate action and the circular economy becoming clear, we intend to leverage this interplay in our strategies to build a more sustainable future. With the establishment of our circular economy team, we have brought our commitment to building a circular economy to a new level, accelerating our progress while demonstrating to our partners and customers that we are committed to leading the way in this endeavor. It is in many ways the centerpiece of our goals going forward, as we must discover new business strategies, invent scalable technologies, and create viable business models that deliver both economic and environmental success.
As technologies advance over the next ten years, inside and outside our company, we will be looking into ways they can contribute to our circular economy goals.
Of all our aspirations, our commitment to a circular economy model will require the most collaboration, because it requires reimagining the way we use the Earth’s resources. It will require the participation of every stakeholder in our value chain, from suppliers to customers and end users, as well as policymakers, external researchers, and many others. This is an exciting ambition that starts immediately and, necessarily, goes well beyond 2030.
Photo submitted by: Heather Kessler | Granville, Ohio, U.S. Kelsey Maynard testing insulation in the physical properties lab.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Circular Economy | 100 PRODUCT INNOVATION & STEWARDSHIP
In this chapter: 2030 GOALS STRATEGY & APPROACH PRODUCT STEWARDSHIP PRODUCT INNOVATION GOING FORWARD
Innovation is central to Owens Corning’s mission, and we recognize that as we innovate, we must also consider potential environmental impacts. Everyone involved in the development of a new product or improvements to an existing product shares responsibility for reducing its environmental footprint and increasing its product handprint throughout its life cycle. This principle is known as product stewardship, and it is part of our overall commitment to sustainability.
By connecting innovation and the principles of product stewardship, Owens Corning works to ensure that our products are fundamentally safe and sustainable in their design, creation, use, and eventual end of life. We also seek to drive continual improvement in the sustainability of the products we offer, both in their creation and in their ability to help the world meet its sustainability needs.
Photos submitted by: Jan-Christian Stenroos | Parainen, Finland When products are designed for sustainability, Kim Lindström cleaning up the floor at the Owens it’s good for our business, the people who use our Corning Paroc plant in Parainen, Finland. products, and the environment.
Our product innovation and stewardship efforts align Sustainability Materiality Definition: with the following UN SDGs: We utilize innovation in the principles of product stewardship to ensure that our products are fundamentally safe and sustainable in their design, creation, use, and eventual end of life. We also seek to drive continual improvement in the sustainability of the products we offer, both in their creation, and in their ability to help the world meet its sustainability needs. The data in this chapter marked with a + sign were independently assured to a moderate level by SCS Global Services. For more information on the assurance process see About the Report, and for our verification statement please see Appendix F.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Product Innovation & Stewardship | 101 2030 GOALS FOR PRODUCT INNOVATION & STEWARDSHIP
By 2030: We intend to offer the most recognized and preferred products for sustainability.
To meet this ambitious goal, we are striving to implement strategies to help ensure our products deliver: ■ The lowest impact with respect to embodied carbon among all available options.
■ Minimal Life Cycle Assessment (LCA) impact, including products that feature high use of recycled and renewable materials and are designed for end-of-life recyclability and/or reuse. In addition, we intend to collaborate with our suppliers to increase transparency around the raw materials we use in our products. This helps us understand and control the impact of our products — and enables us to share that information with our customers so they can do the same.
Innovation is essential to all three of Our eleven Science & Technology STRATEGY our core businesses — Composites, Centers, located in key markets Insulation, and Roofing — as we around the world, play a vital role in the AND APPROACH develop new products and applications development of solutions that meet At Owens Corning, across a growing range of key market customer needs and address global sustainability is part segments. This innovation is inspired concerns regarding sustainability. by the needs of our customers and of innovation at every Our Innovation Week, traditionally addresses growing global trends. By step — leading to hosted at our Science & Technology collaborating closely with stakeholders, Center in Granville, Ohio, U.S., is an better products and a we can deliver sustainable solutions opportunity for members of our global better world. that meet the demands of the technical community to collaborate marketplace. and learn together. This year, COVID-19 As these demands increasingly prevented us from convening in include the need to address human Granville, but by pivoting to a virtual impact on the environment, our event, we were still able to present our approach to innovation is rooted annual Innovation Awards, honoring our in a commitment to sustainability. employees’ incredible work. That means our products can make The event also features a Poster a material difference as people and Session, which showcases many of our companies build energy-efficient innovative projects. This year, instead of structures, maximize the potential of the traditional science fair-style format, wind turbines, and work to meet their we presented a selection of projects own sustainability goals. In addition, using a video conferencing platform. we work to ensure our products are The success of the virtual format gives Photo submitted by: sustainably made, using our stringent us reason to be excited about 2021’s Heather Kessler | Granville, Ohio, U.S. stewardship process to evaluate 100% Innovation Week, which we expect will Beccah Albright in the thermal lab. of our new and significantly modified also be a virtual event. products for EHS impacts and our gated innovation process to evaluate potential life cycle impacts.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Product Innovation & Stewardship | 102 PRODUCT STEWARDSHIP
Owens Corning’s product stewardship program is a collaborative effort among many individuals, each of whom bring their own expertise across a range of subjects. The entire product stewardship organization provides counsel, guidance, and direction to ensure compliance with the Owens Corning product stewardship policy and Owens Corning standards. The product stewardship organization consists of the following:
Photo submitted by: Rupak Karmakar | Silvassa, India Silvassa, India plant.
■ Chief Sustainability Officer (CSO) y Carries out product reviews ■ Product Stewardship Advisory addressing all elements of our Council ■ Product Stewardship Leader EHS and Product Stewardship y Senior business and functional y Manages the stewardship Policy at various stages, leaders who are responsible for process. including: linking product stewardship to the Owens Corning enterprise. y Leverages the expertise of the • Design. product stewardship review • Development. y Meets throughout the year to board. provide insights into key EHS • Test market. and performance issues, review ■ Product Stewardship Review product stewardship guidelines, • Manufacture. Board discuss product stewardship y Global members with • Distribution. review board activities, and expertise in: communicate to the company. y Meets weekly to review • EHS. new projects for new and significantly modified existing • Medicine. products. • Product Compliance.
• Building Science.
• Toxicology.
• Sustainability.
• Sourcing.
• Reliability engineering.
• Technical subjects.
• Analytical testing.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Product Innovation & Stewardship | 103 Product Stewardship Policies Throughout the development of new products, we consider the following criteria: We thoroughly review 100% of all new and significantly modified products to ensure they comply with Owens Corning’s ■ Choice of raw materials, including reducing the use of Environmental, Health, Safety, and Product Stewardship Policy, water, energy, or virgin materials and increasing renewable including regulatory compliance and other requirements. raw materials.
This comprehensive assessment of a product’s life cycle, ■ Direct operations, production, and manufacturing, from input materials through end of life, ensures that these including the reduction of emissions, energy use, water, products are: hazardous substances, and toxic materials. ■ Safe and environmentally sound to make. ■ Distribution, storage, and transportation, including increased safety, packaging choice, or reduced ■ Safe and environmentally sound to use. environmental impact. ■ Safe and environmentally sound to dispose of. ■ Use phase — operation and servicing/maintenance, ■ Able to perform as claimed. including energy, water, and material savings, as well as increased product durability. We require that our product developers, engineers, and scientists follow development guidelines in accordance with ■ End-of-life management, including recovery, disposal, and our standards and the results of product stewardship reviews. biodegradation. In 2020, 78 projects were reviewed, for a total of over 1,500 such reviews since 1997 and almost 1,250 since 2006, the year product stewardship reviews were made a mandatory part of our Business Code of Conduct.
Product Stewardship Process Photo submitted by: Heather Kessler | Granville, Ohio, U.S. Our commitment to stewardship requires us to thoroughly Yuxuan Gong in the insulation core tech lab. evaluate the sustainability of everything we do, from research projects to production processes — and to challenge ourselves to perform more effectively year over year. Across all three of our businesses, we seek to implement continuous and measurable improvements in the way our products are developed and produced, to reduce the environmental footprint of our products by: ■ Saving energy and water.
■ Using salvaged, recycled, or plant-based content.
■ Conserving natural resources by reducing material usage, or using materials that are exceptionally durable, low- maintenance, or renewable.
■ Reducing the risk of exposure to hazardous and harmful materials.
■ Contributing to a safe, healthy indoor environment.
■ Striving to make products that are reusable and recyclable at end-of-life.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Product Innovation & Stewardship | 104 Evaluating Sustainability Impacts Throughout this tiered process, we 3. Product Composition. Each measured and verified a product’s product has a defined standard As part of our product stewardship composition and development at key composition that specifies its review process, we evaluate the points, according to desired safety, formulation as well as approved sustainability aspects of research and performance, and sustainability raw materials. development projects, new products, attributes: and new processes. Through 2020, 4. Finished Products. Most finished product developers were asked to use 1. Testing of Input Materials. products have a product data our sustainability mapping tool as they Raw materials for our products sheet describing the specific develop or modify products. This tool are frequently covered by a properties of the product and was retired at the end of 2020 and purchasing acceptance standard demonstrating its compliance with replaced with the Ecodesign Strategy (PAS) document signed by the standards. Wheel, which is discussed in detail on supplier. The document specifies 5. Management of Change. Intended the next page. Tools such as these are requirements applicable to the raw changes related to raw materials designed to spark thinking about the material, including the physical, or manufacturing processes must sustainable attributes of the product chemical, and other properties that be reviewed for approval before design and help product developers must appear on the certificate of implementation. understand the potential impact the analysis provided by the supplier new product or process may have on with each delivery of the raw 6. Traceability of Raw Materials. our sustainability goals. material. Delivery is accepted or The manufacturing and data rejected based on our examination management system allows us Summary reports from these of the certificate data. to establish the relationships assessments were shared internally among the finished products’ with leaders on a quarterly basis by 2. Manufacturing Process. Each manufacturing dates, process the product stewardship leader. These product has a manufacturing data, and raw materials. reports were used to track progress as specification that defines the well as identify trends and opportunities manufacturing process settings to further improve sustainability. and internal controls to ensure the finished product meets expected properties.
Example from the sustainability mapping tool retired at the end of 2020
2020 Goals Footprint Handprint Energy (Consumed) Greenhouse Gas (GHG) Particulate Matter (PM) Toxic Air Emissions (TAE) Waste-to- Landfill Water
Consumption Gain Loss Gain Loss Materials Manufacturing Use End-of-Life -2 -1 0 1 2
■ Sustainability Gain ■ Sustainability Loss
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Product Innovation & Stewardship | 105 EHS Impacts of Products stewardship process. It is our policy Failure Mode and Effects Analysis and Services that 100% of new and significantly We use many tools to ensure the modified products and services Owens Corning strictly adheres to safety of our products and processes, must be assessed for environmental, internal controls for environmental, including failure mode and effects health, and safety impacts. As a result health, and safety (EHS) impacts, analysis (FMEA). FMEA is a systemic of these efforts and our stringent which are incorporated into our way to identify, evaluate, reduce, or voluntary commitments, we are not Business Code of Conduct. Every eliminate problems in products or aware of any 2020 cases in which year, all employees are required to processes. FMEA is conducted by grievances were either filed, addressed, complete training on this code of cross-functional teams to ensure it or resolved related to environmental conduct, and new hires throughout reflects different perspectives and impacts of our products. the company must undergo knowledge. Based on the results, a more in-depth training on our risk mitigation plan is implemented to ensure our products are safe.
ECODESIGN negative impacts on the planet (a product’s footprint), as well as positive 7. 1. STRATEGY WHEEL impacts for users (its handprint). Optimized End Reimagined Effective product design can also help of Life Design At the end of 2020, Owens Corning us meet our aspirations as we seek retired our sustainability mapping tool, to contribute to the circular economy. 6. 2. since it was designed specifically to System Reduced We believe the Ecodesign Strategy Longevity DESIGN FOR Material support progress toward our 2020 ENVIRONMENT Impacts Wheel can help us make even smarter INNOVATION sustainability goals. To continue decisions as we develop new products STRATEGIES our journey toward designing more and make significant modifications to 5. 3. sustainable products, our Product Reduced Reduced existing products. Use-Phase Manufacturing Stewardship team led a cross- Impact 4. Impact 1. Reimagined Design. We are Reduced functional team to design a new tool, Logistics called the Ecodesign Strategy Wheel, encouraged to rethink how to provide Impact based on the Okala Ecodesign Strategy the product’s service or function, Wheel. This powerful brainstorming anticipating technological changes tool integrates stage-specific Design and updates, and taking inspiration 5. Reduced Use-Phase Impact. for Environment (DfE) and product from nature. Products should be designed for sustainability strategies into the carbon-neutral or renewable energy 2. Reduced Material Impacts. We should innovation process, empowering and encourage low-consumption choose materials wisely, avoiding those product designers to consider ways user behavior while reducing toxic that damage human or ecological they can ensure product sustainability emissions and the consumption of health while opting for those that throughout the life cycles of our energy, material, and water. adhere to our sustainability goals. products. It focuses on seven areas 6. System Longevity. Products should of the product’s life cycle, including 3. Reduced Manufacturing Impact. be designed for durability, easy design, raw materials, manufacturing, Products should be designed for maintenance and repair, reuse, and logistics, use, longevity, and end of life. quality control while minimizing repurpose. energy use, water use, manufacturing This tool is available to all project teams waste, emissions, and the number of 7. Optimized End of Life. Products and is recommended for use throughout components and production steps. should be designed for fast the product development process, disassembly and safe disposal, as beginning in the early design phase. 4. Reduced Logistics Impact. We well as use recyclable, nontoxic After all, it has been estimated that up to should develop reusable packaging materials. 80% of product’s environmental impacts systems and source local materials are determined at the design phase. and production, using lowest-impact The implementation of the Ecodesign transport, while reducing volume and Strategy Wheel, including trainings and Product developers have an opportunity weight of products and packaging. integration of the tool with our product to design products that have minimal stewardship and innovation processes, will take place in 2021.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Product Innovation & Stewardship | 106 Managing Materials Owens Corning also sells products that Fiber Safety of Concern may contain ingredients that are the subject of stakeholder questions or Owens Corning has been a pioneer All our manufacturing facilities and are prohibited by certain green building in the science of fiber safety, and the products manufactured under programs. Our product sustainability we continue to provide industry- our control are guided by our efforts team develops programs to address all leading expertise. By engineering to manage materials of concern product-related stakeholder questions our continuous filament fibers to (MOC), including chemicals that are and concerns. be too large to be inhaled, and by not necessarily regulated, but that controlling the composition of the we believe pose sufficient safety Some of our products contain raw materials we use to make our hazard to merit restrictions on their ingredients that have been banned in insulation glass wool, we ensure that use. These efforts apply to the use of some regions, usually on a timeline all our fiber-based products are safe to raw materials and other substances for discontinuance. Though we use manufacture and use. Owens Corning used to produce products across comprehensive risk assessments has an internal product stewardship all business activities. This includes to ensure all our products can be guideline regarding fibrous materials, research and development (R&D), used without harm to people or the which states the company will not manufacturing, tolling operations, environment, we put a replacement knowingly manufacture or use any distribution, and materials used plan into action whenever we learn of fiber or fiber-containing material to maintain the site facility and an ingredient ban or discontinuance unless the fibers are shown to be non- equipment. In addition, companies requirement. Under this plan, we also respirable or bio-soluble, or unless use that supply us with raw materials evaluate the applicable product line of the material generates insignificant are expected to verify that all and enable R&D to address material exposure as shown by measurements materials used in the manufacture substitution. in the manufacturing and end-use ® environments. Compliance with this of Owens Corning products or the Red List Chemicals. Many chemicals guideline is verified during product sale of products to Owens Corning do not necessarily fall under regulatory stewardship reviews. were sourced in compliance with restrictions in certain jurisdictions all applicable environmental laws, around the world, but green building Among the most notable regulations, and legal requirements, per rating system developers and developments supporting the safety our Supplier Code of Conduct. architecture firms have flagged them of Owens Corning insulation products As part of our product stewardship as potentially harmful. Our product is the decision of the U.S. National review process, a list of materials of stewardship team monitors these Toxicology Program (NTP) to remove concern is published on our intranet, Red List chemicals and maintains an soluble glass wool fibers from its list where it is frequently updated. By internal list that is consulted as new of substances “reasonably anticipated consulting with these guidelines, we can: products are developed or existing to be a human carcinogen.” The products are modified. decision was released in 2012 in a ■ Control the use of chemicals, report to the U.S. Congress. In 2011, polymers, and other materials. We recognize that customers seeking soluble glass fibers were removed specific certifications are choosing ■ from the California Prop 65 list. Owens Comply with laws and regulations products that do not feature chemicals Corning mineral wool products were in the places where we make and that appear on that certifier’s Red List. never listed by NTP or Prop 65. We sell our products. Therefore, it is mutually beneficial perform regular composition audits ■ both to us and the customer that we Ensure our products are safe and to ensure the fibrous insulation are fully transparent and voluntarily sound to make, use, and dispose of. products produced in our plants have offer information about chemicals that To ensure the identification and the correct composition and are bio- appear on Red Lists. replacement of any regionally banned soluble. All continuous filament glass or future banned chemicals, all our manufactured by Owens Corning is businesses are required to comply non-respirable. with the MOC list in the development of new or significantly modified By the end of 2020, over 1,300 of our products. These guidelines apply to all employees had taken our fiber safety our controlled domestic and foreign online training, which was developed in subsidiaries and all other legal entities 2018. As a result of this training, they in which Owens Corning has controlling have a better understanding of fiber interest (>50%). health and our stance regarding the kind of glass fiber we produce and use.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Product Innovation & Stewardship | 107 Recycled Content in Primary 2020 Recycled Input Materials (Metric Tons) Products and Services 2017 2018 2019 2020 Recycled content reduces waste and saves resources throughout our Total weight of material used 7,642,546 7,695,265 8,208,112 6,812,476 manufacturing operations. It also Total weight of recycled raw materials 742,499 804,389 722,650 708,905 helps our customers comply with green building program requirements Percent of recycled content 10% 10% 9% 10% and achieve their own sustainability goals. Our commitment to using Insulation Products. Owens Corning In addition, many U.S. municipalities recycled content in our building is a leader in using recycled content in have removed glass from their materials is demonstrated through a our fiberglass insulation, ranging from curbside recycling programs, further multipronged approach: a minimum of 53% recycled content threatening cullet supply. ■ We seek to include or increase the to a high of 73% recycled content in To help counteract these trends, Owens content of recycled materials in our our Canadian-made products. We also Corning works with other companies products and packaging, either in have a high level of certified post- and organizations to support the initial design or through continuous consumer content in our light-density glass recycling industry and the glass improvement. building insulation. Our North American recycling supply chain as a whole. residential fiberglass insulation is ■ We validate recycled content The Glass Recycling Coalition (GRC) certified by SCS Global Services to through third-party verification and the North American Insulation contain at least 55% recycled content, bodies and offer documentation Manufacturers Association (NAIMA) while our commercial and industrial for use in green building programs are two of our key partners. Through fiberglass insulation is certified to have such as LEED®. GRC and NAIMA, we are particularly a minimum of 53% recycled content. focused on promoting glass recycling ■ We promote the attributes of In 2020, Owens Corning consumed in the Southeast, Northeast, Midwest, recycled content and educate more than 1.3 billion pounds of and Texas. customers and consumers on recycled glass globally, making us the value this brings to reducing We also helped form a glass cullet task one of the largest users of recycled landfill waste and saving force, with the following objectives: glass in the world. Our XPS foam resources and energy. insulation in North America has 20% ■ Improving communication on end- ■ We promote green products and certified pre-consumer content. Our use of glass containers to make green operations, including the Thermafiber® mineral wool insulation fiberglass. is manufactured to have a minimum benefits of recycled content and ■ Increasing glass container of 70% recycled content and is reducing impact in the LCA of recycling rates. the product for all the industries validated by International Code Council we serve. Evaluation Service (ICC-ES). ■ Improving glass cullet quality.
■ We participate as a member of Glass Recycling. Using crushed ■ Protecting current recycling organizations that promote recycled post-consumer glass — also called programs at the state and content in products including the cullet — as a raw material decreases local levels. ® community landfill waste, and it USGBC and its LEED program. Owens Corning participates in lowers our energy use associated with Although most of the materials several educational and informational manufacturing insulation, as starting used in our processes are derived workshops, including those by the with raw materials such as sand from non-renewable inputs, we Closed Loop Fund and recycled requires more energy. In fact, the Glass continue to look for opportunities glass processor Strategic Materials, Packaging Institute (GPI) reports that to procure renewable sources, from to promote open dialogue and energy costs drop by about 2-3% for raw materials to semi-finished goods collaboration among stakeholders each 10% cullet used in manufacturing. and packaging. We are also focused interested in glass recycling. on increasing our use of recycled Even as we strive for higher recycled- As a result of our efforts, and despite packaging. Through our work with glass content in our insulation ongoing challenges in a number of the Container Recycling Institute, products, the supply of recycled communities across the U.S., we both as a member and in our glass is at risk. According to the U.S. continue to increase our use of post- capacity on the advisory board, we Environmental Protection Agency, only consumer bottle glass in North America. are working to make North America 31.3% of all glass containers were We believe the availability of high-quality a global model for collection and recycled in 2018 (the last year for recyclable glass is critical to the ongoing quality of recycled containers. which data have been published). execution of our growth strategy.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Product Innovation & Stewardship | 108 Recycling and Reclaiming of Products Material and Environmental their footprint, which in turn helps us and Packaging. Owens Corning Transparency reduce ours. In 2020, we updated our was the first roofing manufacturer LCAs on pipe insulation and roofing to establish a program for recycling As part of our product sustainability shingles. We created new LCAs for shingles. Recycling torn-off shingles goals, we are committed to evaluating WeatherPro® Lumber Wrap protective helps the environment in two ways: old our core products’ impacts throughout packaging and PAROC® Natura™ stone shingles do not end up in landfills, and their life cycles — and to being fully wool insulation. We also expanded our they get repurposed as pavement. transparent about our findings. We FOAMULAR® insulation LCA to include adopted a two-part methodology FOAMULAR® NGX™ next generation Each year in the U.S., approximately to calculate this cradle-to-grave extruded polystyrene insulation to 13 million U.S. tons of potentially environmental impact. demonstrate the product’s global recyclable shingles are removed from ■ Conduct a life cycle assessment warming potential improvements over the roofs of homes and buildings. (LCA) according to the ISO 14040, its life cycle. Through a national strategic alliance 14044, and 14025, as well as ISO with Earth911, we connect contractors 21930 and EN 15804, followed by a Owens Corning is an organizational with convenient recycling facilities. As third-party review and verification of member of the American Center for part of the program, we ask contractors appropriate product category rules. Life Cycle Assessments (ACLCA). to help the environment and promote Our LCA practitioners are active sustainable business practices by ■ Develop an environmental product members of the ACLCA, and one of pledging to recycle their shingle tear- declaration (EPD) from the LCA our LCA practitioners serves on its offs. As of 2020, 823 contractors in our and implement continuous and board of directors and co-chairs the network have pledged to recycle their measurable improvements related industry committee. The ACLCA is shingle tear-offs, including 104 new to those impacts. a nonprofit organization providing contractors who made the pledge this We remain committed to transparency education, awareness, advocacy, and year, compared with 64 who pledged in about our products, from raw material communications to build capacity and 2019. The amount of recycled shingles through production, use, and end- knowledge of environmental LCAs. continues to decline every year due to of-life, and will collaborate with our Environmental Product Declarations factors such as: supply chain partners and customers. (EPDs) and Transparency. In ■ Recycling centers closing. Life Cycle Assessments (LCAs). accordance with our environmental, ■ Recycling centers discontinuing Our LCAs are comprehensive health, safety, and product their shingle recycling operation. measurements of the environmental stewardship policy, we provide footprint of a product at all stages of information about all our products, ■ Department of Transportation its life cycle, from the extraction of their performance, and safe use. requirements. raw materials, through processing, Product content information can be found on product labels, EPDs, HPDs, ■ Stockpile of material, and difficulty manufacturing, and product use, and and other transparency documents in getting asphalt companies to all the way to its eventual end of life such as Declare labels. Content and take the material. through disposal or recycling. disposal information is included Owens Corning uses wood pallets, We have conducted full LCAs on 81% on safety data sheets or safe use which are reused throughout our of our products, including shingles, instruction sheets. plants, and the majority are recycled at fiberglass, mineral wool, FOAMGLAS® the end of life. Recyclable cardboard is cellular glass, and extruded We have conducted LCAs and used with some of our products. Each polystyrene (XPS) foam insulation, have issued EPDs on the following carton used for our insulation products as well as composite glass product products: contains up to 30% recycled content offerings such as reinforcements, ■ EcoTouch® Fiberglas™ insulation and is fully 100% recyclable after nonwoven mats, and technical fabrics. products. use. Cores used in our Composites In addition, we have simplified LCAs ■ business are made from recycled for 5% of our other products. Unbonded loosefill. paper, and totes, bags, and super sacks ■ FOAMULAR® XPS insulation. are designed to be reused. By performing LCAs, we have identified many opportunities for ■ FOAMULAR® NGX™ XPS insulation. improvement in our processes and products. We have also identified ■ FOAMGLAS® cellular glass high-impact raw materials, enabling insulation. us to work with suppliers to reduce ■ PAROC® stonewool insulation.
■ PAROC® NaturaTM Lana stonewool insulation.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Product Innovation & Stewardship | 109 ■ Thermafiber® mineral wool HPDs for most of our product The certifications are made possible insulation. families. HPDs are an effective means by power purchase agreements of reporting the chemical makeup of Owens Corning signed in 2015, which ■ Owens Corning® asphalt a product and disclosing potential enabled new wind capacity in Texas shingles. hazard concerns. and Oklahoma. Both wind farms ■ WeatherPro® Lumber Wrap. came online in late 2016 and have The reporting follows a set of the potential to generate 1.1 million stringent regulations set by the Health ■ Fiberglas™ pipe insulation. megawatt hours of electricity per year. Product Declaration Collaborative® ■ 700 Series Fiberglas™ insulation. (HPDC). Potential hazards are We currently have thirteen products screened based on the GreenScreen that have received third-party wind ■ QuietR® duct board. for Safer Chemicals and additional electricity certification: ■ ® SOFTR duct wrap. lists from other agencies. HPDs ■ Duration®, Oakridge®, and Supreme® Prior to being introduced in the enable architects, builders, and 3-Tab shingles from our facility in marketplace, all product packaging specifiers to evaluate and specify California. and advertising is thoroughly products with a comprehensive ■ EcoTouch® insulation. reviewed by our technical services understanding of the product composition and potential hazards. and legal departments, along with ■ EcoTouch® insulation for flexible Owens Corning’s HPDs are available each business unit, to ensure duct media. compliance with all regulations and for download from the HPD Public ® codes. In 2020, Owens Corning Repository. In 2020, we published ■ EcoTouch insulation for metal ® had no significant incidents of HPDs for our new FOAMULAR buildings. NGXTM product line, as well as our noncompliance with regulations ® ® ■ FOAMULAR NGX™ XPS insulation or voluntary codes concerning the SelectSound Black Acoustic Blanket labeling, marketing, or advertising of and Board products. ■ Pink® Fiberglas™ insulation. our products and material services. Owens Corning also has Living ■ QuietR® duct board insulation. In addition, in 2020 Owens Corning Building Challenge-Compliant Declare had no incidents of noncompliance labels from the International Living ■ QuietR® spiral duct liner. concerning the health and safety Future Institute™ for unbonded ■ Thermafiber® formaldehyde-free of our products. We have active loosefill fiberglass insulation, unfaced insulation product stewardship and product and kraft-faced EcoTouch® insulation, regulatory compliance programs ® faced and unfaced Thermafiber ■ Thermafiber® insulation. designed to prevent product related formaldehyde-free mineral wool ■ health and safety incidents. insulation, and Thermafiber® Unbonded loosefill insulation. ® Product Certifications Rainbarrier continuous mineral These certified insulation products, wool insulation. This certification which make up 25% of our total and Disclosures demonstrates these products are fully revenues, alert commercial architects, Owens Corning uses third-party compliant with the Living Building specifiers, builders, and homeowners organizations to test and certify Challenge and allows them to be to lower-carbon product options product attributes and to disclose specified for LBC projects. In 2020, as they seek to build greener ® their environmental, health, and FOAMGLAS cellular glass insulation structures. They also help architects safety impacts. We disclose core slab products achieved a Declare Red design buildings with reduced life building products’ environmental List Free label. cycle impacts, in keeping with the impacts through the issuance recognized goals of the Architecture Made with Wind-Powered Electricity. 2030 Challenge and U.S. Green of EPDs, in accordance with ® A growing number of Owens Corning ® the ISO standards mentioned Building Council’s LEED certification. products, including some of our above. We also perform regular high-density insulation products and follow-up testing to maintain our shingles, are certified as made with certifications. 100% wind-powered electricity and Health Product Declarations are part of a reduced embodied- (HPDs) and Declare Labels. In carbon portfolio. These products 2020, we continued to increase were certified in accordance with SCS the transparency of our insulation Global Services’ certification protocol. products by adding to our published
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Product Innovation & Stewardship | 110 SPEAKING OF SUSTAINABILITY Scott Schweiger In his 19 years at Owens Corning, Scott Schweiger has overseen a wide range of innovations and improvements to our products and processes. For the last four years, Scott has been working in the advanced manufacturing team, developing innovations that benefit our operations and help us achieve our sustainability goals. Scott’s passion for the natural world also runs deep, and it informs the insights he offers here.
On the advantages that come with a focus On what makes sustainability personal on sustainability I just find that the world is a huge, big, wondrous place, with Traditionally, when you need to fix a problem or fix a wonderful things to see and experience, but those places process, you do it the best way you can. But when you’ve really are disappearing. I would have loved to have seen many got sustainability or environmental concerns in mind, it of the coral reefs that don’t exist today. I would have loved really helps you focus some of your solutions. It also helps to have seen many of the landscapes before deforestation. you maybe come to a much better solution than you would There are so many things we’re just destroying. Working for have been able to afford in the first place. If goals are tied a company that allows me to maintain a better footprint is to sustainability, it really forces us to think of the benefits really important to me. And I think it’s going to be important to differently and more of an entire systems approach versus our planet and our children. just what your original platform focus was. On the financial benefits of sustainability
On the importance of long-term Sustainability hasn’t always been my focus, but once you get sustainability goals into the proper mindset, you can really achieve some pretty remarkable things. I think a lot of our products have ended up To me, having long-term sustainability goals is the single best being better, more robust, and actually, in the long run, save thing that a company can do to mobilize toward a common us a lot more money than we ever would have if we would goal. Asking people in their daily lives to drive less or look for have just gone on the traditional path. I think sustainability things with better packaging that’s more recyclable only gets goals and financial benefits don’t have to be mutually you so far. But when a company can mobilize their staff to go exclusive. I think that they absolutely can, should, and will go after a common goal — reducing our footprint, for instance, hand in hand. or increasing our handprint, that can really impact our environment. And it’s really the way that we are going to help save our planet, improve our work conditions, and safeguard Scott Schweiger our environment for future generations. Principal Scientist, Science & Technology, Granville, Ohio, U.S.. Photo taken fishing at Spider Lake, Wisconsin, U.S.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Product Innovation & Stewardship | 111 Products That Make a of our cool roof solutions meet PRODUCT Material Difference ENERGY STAR® requirements for INNOVATION solar reflectance. In February 2020, Our commitment to delivering we extended our Cool Roof Collection As we work to provide innovative innovation that also provides with the launch of six new colors in the building solutions that meet sustainability advantages for TruDefinition® Duration® COOL Plus our stringent sustainability customers extends across all line, plus two additional colors added requirements, in accordance with our businesses. We achieve to our Oakridge line. These shingles our 2030 goals, we are proud of this by evaluating our products’ meet or exceed the minimum 20 Solar the considerable gains we have environmental and material health. Reflective Index requirements for the made. While we did not meet our Many of our insulation products Green Building Standards Code of Los challenging goal for 85% of our are GREENGUARD® Gold Certified, Angeles County, California, U.S. new products and new applications meeting the most stringent standards ® ® to have net sustainability gains by on indoor volatile organic compound Duration and Oakridge Shingles. 2020,+ we believe our progress (VOC) emission levels. We are Through performance testing of our ® ® demonstrates the effectiveness of increasing the number of Health Duration and Oakridge shingles, our approach to evaluating product Product Declaration® (HPD) and Owens Corning continues to sustainability evaluation as part of Declare “nutrition labels” for our demonstrate our product leadership. We our innovation process. products, and we are participants tested key shingle performance metrics on these shingles against competitive In 2020, we can report that: in and sponsors of the Embodied Carbon in Construction Calculator wide single-layer nail zone products. The ■ 90% of new products have shown (EC3) tool. This tool is designed to results further demonstrate the value ® a gain or no change to the net help designers and specifiers make that Owens Corning shingles bring to sustainability evaluation.+ more informative choices when it our customers. • 58% of new products have comes to product selection. Trumbull® Asphalt. Over the last + ® shown net sustainability gains. Roofing Innovations five years, our Trumbull asphalt has ■ 100% of new processes have made significant strides to reduce ® shown a gain or no change to the Duration FLEX . The only modified the number of oxidized products we ® net sustainability evaluation.+ asphalt shingle with SureNail produce for external asphalt markets. technology, with nearly 1.5x the In 2015, 8% of our products were • 60% of new processes have nail-pull strength and 10% better non-oxidized. Today, almost 50% shown net sustainability gains.+ strength than standard shingles. of the products we produce for the ■ 100% of new applications have Duration FLEX® also features improved external asphalt business are non- shown a gain or no change to the granular adhesion and meets the oxidized, requiring less energy, lower net sustainability evaluation.+ highest impact resistance rating. temperatures, and fewer emissions. • 75% of new applications have After a successful launch in the U.S., This has resulted in a 3% improvement shown net sustainability gains.+ Owens Corning developed a version in material efficiency across the 12 specifically for the Canadian market. asphalt plants in the network. A cross-functional team worked on an Recyclable Protective Packaging. accelerated schedule to develop and The European Union’s policy requires launch a version of Duration FLEX® all plastic packaging in the EU market that meets CSA 123.5 standards to be recyclable or reusable by 2030 as well as UL 2218 Class 4 impact to support the transition to a circular resistance. economy. Owens Corning is partnering The Cool Roof Collection. Using a with key players in lumber and steel to highly reflective granule technology develop solutions through our expertise that reflects the sun’s rays, Cool Roof in polymer streams, with a goal of shingles help reduce energy use by achieving these solutions by 2025. keeping roofs cooler and reducing air conditioning energy levels. Some
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Product Innovation & Stewardship | 112 Insulation Innovations Pure Safety® insulation. We have Composites Innovations expanded the reach of this high- ® ® FOAMULAR NGX™ insulation. As performance insulation, the only WindStrand . This innovative material an important step toward our goal building material to offer Asthma Allergy allows wind blade manufacturers to to combat climate change, in 2020 Free certification. This product offers use 30% fewer layers of material in the Owens Corning introduced a new an incremental reduction of dust in the blade molds, while delivering the same ® TM product line: FOAMULAR NGX (Next material, and its high density ensures quality and performance as standard Generation Extruded). The proprietary that it fully fills a cavity, providing true fabrics. This in turn represents a 50% blowing agent in this new line of R-value and acoustical benefits. savings in labor and production time extruded polystyrene (XPS) foam for the blades. products delivers a 90% reduction PAROC® NaturaTM insulation. This Coated glass facer technology. in global warming potential (GWP) line of stone wool insulation uses Owens Corning’s coated glass facer compared to legacy FOAMULAR® low-carbon melting technology, green technology is replacing paper on insulation, and is optimized to electricity, recycled waste materials, polyiso insulation boards used on demonstrate a greater than 80% and new technologies to reduce the commercial roof decks. The coated reduction in embodied carbon. The amount of virgin raw material used glass facer offers superior durability investment in developing a product and offer a product with very low CO2 and fire and weather resistance. In that meets and exceeds the stringent emissions. The remaining emissions 2020, we expanded capacity to supply regulations going into effect in 2021 are compensated by reducing CO2 the market with this solution. reflects Owens Corning’s commitment emissions through the purchase to offering smart building materials of offsets in a Verified Emissions Formaldehyde-free ceiling board. that merge the highest levels of Reduction Scheme. The new product Working with a key customer, we performance and sustainability. line, which is certified as carbon- changed to a formaldehyde-free neutral by a third-party, offers fire-safe, formulation for the glass-reinforced moisture-proof, durable insulation material they use to make technical for the building industry and became insulation for ceilings. The new available in Finland, Norway, and chemistry delivers technical insulation Sweden at the beginning of 2021. products that are formaldehyde-free without compromising mechanical performance in hot and humid climates, where better insulation reduces energy spent on cooling. Additionally, the improved chemistry uses fewer chemicals and creates a stronger product.
New binder for cushioned vinyl flooring and insulation. Thanks to a new binder technology developed by the science and technology (S&T) team in Apeldoorn, Netherlands, two new products were launched in 2020. The new binder was developed using formaldehyde-free ingredients, and it improves the mechanical performance of the glass composite at elevated temperatures like those typically used in the cushioned vinyl flooring process.
Photos: Pure Safety® unfaced insulation batts being installed (top left). TruDefinition® Duration FLEX® shingles with patented SureNail® Technology in Summer Harvest (bottom left). A worker applying HomeSealR™ joint tape to FOAMULAR® XPS board (right).
The color PINK is a registered trademark of Owens Corning. © 2021 Owens Corning. All Rights Reserved.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Product Innovation & Stewardship | 113 Our transition to the Ecodesign Strategy GOING Wheel, with its all-encompassing approach to sustainability in product FORWARD design, is indicative of our overall commitment to innovation and stewardship. We recognize that products designed for sustainability benefit us, our customers, and our environment. As we work toward our 2030 goals, we have strategies in place to ensure our products offer an expanded handprint and reduced footprint.
Because innovation and stewardship are a cooperative effort, requiring input from stakeholders across our entire value chain, we will continue to collaborate with our suppliers to increase our transparency regarding raw materials, and we will work with our customers to help them achieve their sustainability goals. Through this chain of innovation and stewardship, we are confident that our products will be recognized and preferred worldwide.
Photo submitted by: Rupak Karmakar | Silvassa, India Silvassa, India plant.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Product Innovation & Stewardship | 114 SUSTAINABLE GROWTH
In this chapter: 2030 GOALS STRATEGY & APPROACH INITIATIVES PERFORMANCE GOING FORWARD
For any business, and especially a Fortune 500® company such as Owens Corning, growth is essential. Growth that fails to consider potential negative impacts on our planet and its people, though, is simply irresponsible. Owens Corning recognizes our obligation to ensure sustainability throughout our operations, so the products we offer help create a more sustainable world. And our customers and end users can take comfort in knowing these products were manufactured in ways that minimize their footprint and maximize their handprint.
Owens Corning continues to achieve sustainable growth by fulfilling our customers’ need for quality products that help them meet their own goals. As a financially responsible company with sustainability at our core, we’re striving to lead the way as the world transitions to a smarter understanding of growth.
Photo submitted by: Jennifer Payne | Memphis, Tennessee, U.S. Rose bush petals collecting rain.
As a company with sustainability at our core, we aim to align our company’s growth with sustainable trends and positive global impact.
Our sustainable growth efforts align with the following UN SDGs: Sustainability Materiality Definition: As a company with sustainability at our core, we aim to align our company’s growth with sustainable trends and positive global impact. We achieve sustainable growth through serving our customers, fulfilling their need for quality, sustainable product. We are working to support the global transition to a sustainable economy by being a financially successful company with sustainability at its core.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Sustainable Growth | 115 2030 GOALS FOR SUSTAINABLE GROWTH
By 2030: Design our products for recycling or reuse to optimize the impact of our products over their entire life cycle from raw materials to disposal.
In 2020, we achieved $7.1 billion in sales, which exceeded our expectations given the COVID-19 pandemic. Through our successes in the past year, we remain well-positioned to advance our overall product handprint aspirations for contributing to a circular economy model, ensuring collaboration throughout our supply chain, and delivering product innovation and stewardship in the years to come.
At Owens Corning, we are committed ■ Partnering and collaborating with STRATEGY to developing products and systems builders, contractors, architects, that address trends in energy efficiency, and homeowners to understand AND APPROACH product safety and sustainability, their needs and help them leverage Expanding our renewable energy, durable leading-edge building science to opportunities while infrastructure, and labor productivity adapt to better building products never losing sight of and efficiency. We serve global markets and systems. with a wide range of products designed our responsibilities ■ Using science and technology to to meet customers’ needs while develop innovative building products to the planet — that’s offering sustainability benefits without and systems to improve durability sustainable growth. compromising performance. and deliver energy efficiency and Driving sustainable growth begins building comfort. with a thorough understanding of ■ Sharing our building science our key sustainability indicators and expertise to educate the industry implementing them in ways that and advocate for building code meet the needs of stakeholders. This improvements and market-driven includes the following indicators: green building standards. ■ Achieving operational sustainability ■ Collaborating with customers and by reducing our environmental across our supply chain to develop footprint in ways that are in line with innovative, more sustainable global stakeholders’ expectations. composite materials and solutions ■ Charting a clear course of action that perform as well or better than to drive product and supply chain traditional materials. sustainability through enhanced Photo submitted by: ■ Working closely with local Joshua Lyle | Memphis, Tennessee, U.S. engagement and by enabling government agencies to Cave on the Ozarks Trail, Missouri. product life cycle transparency. demonstrate the sustainability ■ Ensuring community impact benefits of composite materials in through local community initiatives, infrastructure projects. which is a key aspect of honoring ■ Continuing to make our our social responsibilities. employees’ safety, health, and wellness a top priority.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Sustainable Growth | 116 Advanced Manufacturing and expansion of zero-energy code policies use of its products. Owens Corning Productivity in places like California would call for is also a member of the European increased R-value per inch, and this Insulation Manufacturers Association Productivity is all about maximizing could further drive the market toward (EURIMA), which represents the interests output while minimizing input Thermafiber® insulation and its energy- of all major mineral wool producers — decreasing all forms of waste saving capabilities. throughout Europe. throughout our processes. Our advanced manufacturing team looks We also engage with policy makers, with Owens Corning employees hold for ways to use all resources as our government affairs team overseeing leadership positions in the Asphalt efficiently as possible. In addition, we our interactions and ensuring that our Roofing Manufacturers Association focus on capital efficiency to achieve a activities are aligned with our climate (ARMA), which represents both better return on our investment overall. policy. We regularly review language manufacturers and the companies and activities with both the external that supply their raw materials. ARMA We apply advanced process controls affairs and sustainability departments is dedicated to the advancement of to increase predictability in our and conduct legal reviews of all the asphalt roofing industry through manufacturing processes, which external communications including the collective expertise of its member leads to better products and helps letters, testimony, and activities with companies, and the organization is also us use materials more effectively, outside advocates or NGOs. Owens a resource for building and code officials, reducing cost and our footprint. As Corning’s political advocacy objectives as well as regulatory agencies and allied an additional benefit of our increased are to support initiatives that align with trade groups. Our employees serve on efficiency, our operations are more the company’s core values, namely the Asphalt Recycling Task Force, the stable overall. This has the potential to advocating for energy efficiency Asphalt Institute Roofing Technical contribute to safety within our facilities, measures, and for contemporary building Committee, and the Asphalt Institute as employees are less likely to be in code development and adoption. Foundation Research Committee. unplanned or unexpected situations. All told, improving productivity through Partnerships with Industry Through their work, we are helping drive advanced manufacturing enables Organizations multiple sustainable approaches within growth that aligns with our aspiration the roofing industry. Our collaborations with the to be a net-positive company. organizations active in our industry The American Composites Promotion and Advocacy provide us with invaluable insights as Manufacturers Association (ACMA) we seek to improve our sustainability provides education, advocacy, and Owens Corning’s advocacy objectives capabilities, and they offer opportunities representation for its member include support for initiatives that align to collectively advocate for our industry, companies and associated markets, with our core values, especially as they which in turn promotes growth. Owens working to promote growth within relate to energy efficiency measures Corning employees work with trade the composites industry. ACMA is and contemporary building code associations and research institutions, committed to driving industry innovation, development and adoption. Our efforts as well as the organizations that providing members with a range of to promote our products take many set codes and specifications for the educational tools and certification forms, including education campaigns, buildings and products that use our programs. We are active members of code advocacy, attention to legislation materials. Our experts often participate these associations, and over the years and regulation related to wildfires, work as board and committee members our employees have served on boards with the insurance industry, and more. in these organizations, providing and various committees. As an example, over the past few leadership that incorporates our strong For a full list of the organizations we years, attention has turned to the sustainability standards. work with, see Appendix D. codes and standards that apply to the The North American Insulation fire performance of products and wall Manufacturers Association (NAIMA) systems. In response to wildfires on is made up of companies that the west coast of the U.S., as well as manufacture fiberglass, rock wool, fires in the U.K., Europe, and the Middle and slag wool insulation. Its members East, we expect to see municipalities produce the majority of the insulation and possibly even state governments products used in the United States, adopt code requirements that drive Canada, and Mexico. NAIMA is primarily the market toward non-combustible focused on promoting energy efficiency materials such as Thermafiber® and the preservation of the environment, mineral wool insulation. In addition, as well as the safe production and
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Sustainable Growth | 117 Certified Energy Experts
Owens Corning’s Certified Energy Expert® (CEE) program was launched in 2012. To become a Certified Energy Expert, contractors must complete Owens Corning training on thermal performance, moisture prevention, air filtration, ventilation, and energy efficiency audits. CEE members have an advanced understanding of building science and have steadily grown sales of Owens Corning insulation. The expertise CEE members offer their customers makes them trusted partners throughout the building process, helping facilitate the construction of more sustainable buildings.
Owens Corning supports the contractors with local marketing materials that promote both the Owens Corning brand and the contractor’s — a visible sign of the Photo submitted by: importance of this collaboration. We have Heather Kessler | Granville, Ohio, U.S. also extended our limited lifetime warranty Granville S&T grounds. to include our CEEs’ workmanship in addition to our products, and in 2020, program engagement rose to 87%. This means that 87% of the members worked Supporting Our Customers’ with Owens Corning on at least one project Sustainability Efforts during the year.
There are currently 113 insulation Measuring and disclosing the sustainability impacts of our products not contractors in this elite group. To remain only advances our sustainability goals — it also helps our customers in the CEE program, the contractors must advance theirs. Our sustainability and product stewardship teams work maintain an above-market sales growth closely with product development and customer support teams to answer and Owens Corning market share of more questions, test products, and drive transparency. than 60%. Members of the program operate with different business models and install We also help customers improve and promote the sustainability of their different types of insulation, including new products by providing life cycle inventory data for our products. As our construction and renovation of single-family customers use these products to manufacture their finished goods, they homes and light commercial buildings such have access to information that can help them develop more precise as multifamily units. LCAs and EPDs. Read more about this work in the Product Innovation & Stewardship chapter.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Sustainable Growth | 118 In 2020, Owens Corning issued a This year, we began a two-year project SUSTAINABLE GROWTH report on this inaugural green bond with NRCan in Quebec to demonstrate that provides this information for and educate the building construction INITIATIVES our investors and shareholders. We industry on building affordable net The actions we’re taking reported the allocation of $88.3 million zero-ready homes in a large-scale now are helping ensure to renewable energy, $199.3 million to setting. We are also working with a better future for our energy efficiency, and $193.2 million to NRCan on the prefabricated exterior business, our people, and eco-efficient and/or circular economy energy retrofit (PEER) group project, adapted products. which develops insulation systems and our world. technologies for deep energy retrofits Net Zero Energy-Ready Buildings to get existing buildings in Canada up Last year, as part of our Sustainability Our products also play an important to net zero-ready performance. Materiality Assessment, Owens role in the development of net zero The Building Science Solution Center Corning changed the scope of our energy (NZE) buildings. An NZE Material Topic related to growth building is one that produces the same Owens Corning’s experts continually strategy and prosperity to emphasize amount of energy as it consumes. research and deploy building science the importance of sustainable growth. Buildings can be designed to be ultra- to serve architects, buildings, As we look at various initiatives that are efficient, making them NZE-ready. occupants, and the environment. tied to that goal, it’s clear that we have Then, when combined with the use of The Owens Corning Building Science made tremendous progress to ensure renewable energy, they can achieve Solution Center is a 24/7 portal that sustainability remains an integral net-zero energy status. connecting architects to emerging part of our success. research, best practices, and thought While we have not set a specific leadership across a spectrum of Owens Corning Inaugural Green Bond target for NZE buildings as part of building disciplines. our 2030 goals, we work closely with In August 2019, Owens Corning organizations and contractors who In addition to delivering expertise announced its first green bond, the first are driving progress in this area. For related to sustainability, the Building offered by an industrial company in the example, we partner with Natural Science Research Center offers United States. The $450 million bond is Resources Canada (NRCan) on several practical insights into the diverse payable over ten years at a coupon rate demonstration projects to help the challenges architects experience of 3.95%. In conjunction with the bond, building construction industry move and provides access to certification the company committed to spending toward net zero-ready performance, documentation to meet green building $445 million on eligible green projects. which will be mandated for all new program requirements. The portal’s Green bonds represent a small but buildings in 2030 as part of the Pan- resources include content drawing fast-growing segment of the overall Canadian Framework on Clean Growth on more than 40 years of experience bond market as investors increasingly and Climate Change. pioneering perimeter fire containment value corporate sustainability and responsibility. A green bond is a fixed income debt instrument with Photo submitted by: characteristics similar to a traditional Frank O’Brien-Bernini | Granville, Ohio, U.S. bond, but with a green bond, the Green bond recognition award. issuer promises to use the proceeds to finance or refinance new or existing sustainable projects.
The Green Bond Principles are voluntary guidelines established in 2014 and overseen by the International Capital Markets Association. Along with committing to use funds specifically for eligible projects, the issuer pledges to report on how it spends the allocated funds and the progress it makes on the initiatives outlined in connection with the bond.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Sustainable Growth | 119 assemblies, as well as information Sustainable Growth During allows them to earn rewards for their designed to help architects predict COVID-19 purchases. And we’ve developed a moisture and thermal performance range of digital marketing strategies across a range of climates using The pandemic has clearly changed that guide the homeowner through WUFI® analysis. the world in incalculable ways, and it’s the entire purchasing journey, from forced companies everywhere to adapt pre-shopping to purchase and on to Building science is promoted within and develop new ways to maintain advocacy for our products. the company through an internal team operations. This year has seen Owens that engages architects, engineers, Internally, our digital assets have Corning make excellent gains, due in and builders. Through lunch-and- also been of benefit in maintaining part to the digital tools we’ve had in learns, webinars, in-person and virtual our standing during the pandemic. place for years. seminars, workshops, and trade shows, As travel restrictions were put into our team helps drive the use of Owens Our market-facing digital initiatives place, coupled with Owens Corning’s Corning’s energy-saving products have enabled us to interface with overall emphasis on safety, we worked in more green building applications, distributors, contractors, and to put more tools in the hands of maximizing their performance homeowners — all while maintaining our employees and subject matter and helping them achieve green social distancing. An online portal experts. This new approach to remote certifications such as LEED® and provides distributors with digital assets, support has created efficiencies in our GREENGUARD®. swatches, and automatic invoicing. workflow, and we expect it to have a Our OC ConnectTM platform gives long-reaching impact as we emerge It’s crucial that we focus on successfully contractors access to information and from the pandemic. engaging high-impact architects, engineers, and construction customers around builders — this can have a ripple effect on sustainable revenue as they In February, our Insulation Product spread practices and specifications that DRIVEN BY DATA, Research & Development team had bring awareness of Owens Corning® EVEN IN A PANDEMIC begun conducting research in the products to a broader network. For field, testing a new material with three example, if a major architectural firm customers in the Pacific Northwest. Normally, this is a simple process; the begins to specify an Owens Corning® customer agrees to let us conduct a field study with their installers. insulation product, that approach may This time, though, the new material had just arrived when the COVID-19 be shared with satellite locations as shutdowns began, preventing the team from returning to the field to complete well, and the impact of the engagement the study. This meant that the team had move quickly to find flexible, novel will be magnified. approaches to collecting data. Their solution: They asked the customers to Metrics tracking customers’ building collect the field data on our behalf, and thanks to our strong relationship with the science engagement include customers, they agreed. monitoring the number of people The Owens Corning team developed facilitator guides and explained how to reached and events held. In 2019, conduct the research and record the data. “The customers took 30-60 minutes Owens Corning held over 100 building out of their own work for training, and a day or more to collect the data, upload science engagement events and videos, and send us their thoughts, which is pretty amazing,” said Misty Flantroy, reached several thousand architects, product research and development program leader. engineers, and builders. While COVID-19 hindered our ability to As the customers discovered first-hand the power of field research, they conduct a similar level of outreach became enthusiastic partners. They became invested in the process as they in 2020, we are confident that our saw how data from our customers inform the improvements we make. numbers will return to these levels Enlisting the customers’ help in this research also led to some unexpected post-pandemic. insights for our team. In addition to supplying the data we specifically wanted, they gave us some in an area that we hadn’t thought about. The team realized that there are some “moments of truth” for the customer – when they judge our product – that they had not previously focused on and which might be areas of opportunity.
Overall, our customers’ help with field research was mutually beneficial and strengthened our relationship. We got the data we needed, and they saw how their input affects our product development. As Misty said, “The COVID-19 situation forced us to think about what we’re doing in a different way, and it reinforced the benefits of customer-centric development.”
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Sustainable Growth | 120 The Voice of the Customer SPEAKING OF When it comes to sustainable growth, it stands to reason that we must provide our customers with what they’re looking for. As more builders and customers seek sustainable solutions, Owens Corning SUSTAINABILITY seeks opportunities that can positively impact both our business and the planet as a whole. Our sales and marketing teams are listening to our customers every day, helping us understand how Bob Harlan, we can apply our expertise to meet Director of Commercial customer needs and drive growth through & Sales Operations, sustainable products and solutions. Building Insulation. “More and more, the sales team is challenged to provide documentation on many different attributes of our products. I see a lot of requests for new types of information, both in terms of product certifications and the nature of chemistry in our products. The whole life cycle analysis is really becoming a much more common discussion when it comes to commercial buildings.”
Casey Ingle, Director of Marketing Innovation and Customer Experience, Composites. “Data and regular Allison Kulwicki, customer interactions Marketing Insights Manager, are really rooted in two Roofing. things: Provide a more “When we’re innovating recyclable material, and a new product, we’re always soliciting our then either increase customers’ feedback, including understanding the service life of their their need for sustainable features and benefits. products or, when the The insights we get from the market always service life has expired, help shape our approach to our products, and make them more when it comes to sustainability, a collaborative recyclable. Across the composites approach is essential.” industry we’re haunted by the graveyards of wind blades and boat hulls, and I think now the race will be won through sustainability. We’ve reached a point where everyone wants to make things that not only perform better, but actually do a better job for the world around us.”
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Sustainable Growth | 121 Other Owens Corning® fiberglass control and energy conservation, SUSTAINABLE insulation products provide energy- and it contains a minimum of 70% GROWTH saving thermal protection for HVAC, recycled content. mechanical, industrial, residential, PAROC® stone wool insulation PERFORMANCE and commercial applications. offers very low thermal Our people and our products ■ FOAMGLAS® Cellular Glass. conductivity, and it maintains its ® performance and dimensions make the world a better FOAMGLAS cellular glass is a high-performance insulation, over the life of the building. In place — here are some addition, for each metric ton of CO offering water and fire resistance, 2 inspiring examples. high compressive strength, and generated in the manufacturing long-lasting thermal protection in process, nearly 200 metric tons of CO are saved over a 50-year Energy-Saving commercial and industrial systems. 2 Products Post-industrial recycled glass is period, thanks to its excellent diverted from landfills and used to thermal insulation properties. The products Owens Corning minimize energy consumption and ® TM manufactures are engineered to help Our PAROC Natura line of optimize manufacturing efficiency. users achieve their own sustainability stone wool insulation uses goals while improving the quality ■ Extruded Polystyrene (XPS) low-carbon melting technology, of life for the people who use them. Insulation. Our FOAMULAR® green electricity, recycled waste Our insulation products improve the extruded polystyrene (XPS) materials, and new technologies safety and energy efficiency in homes, insulation, a rigid board, is to reduce the amount of virgin raw skyscrapers, and factories around used on exterior and interior material used and offer a product with very low CO emissions. the world. Our shingles and roofing walls, foundations, roofs, and 2 provide durable solutions that protect infrastructure for thermal insulation, The remaining emissions are compensated by reducing CO structures from the elements. And and is uniquely suited for wet 2 through our fiberglass reinforcements, conditions. In addition, the product emissions through the purchase used in composite materials, we help has a proven history of removal, of offsets in a Verified Emissions make tens of thousands of products salvage, and reuse. The XPS Reduction Scheme. This certified lighter, stronger, and more durable. insulation produced in our facilities carbon-neutral product offers in North America and Mexico is fire-safe, moisture-proof, durable Across all three of our businesses, we made with at least 20% recycled insulation for the building industry. offer an extensive portfolio of products content. ■ that can help our customers save Cool Roof Shingles. Our wide color energy and avoid emissions. In 2020, ■ FOAMULAR® NGX™. The proprietary range of “cool roof” shingles uses a 62% of our revenue came from this blowing agent in this new line of highly reflective granule technology category of products, which includes: extruded polystyrene (XPS) foam that bounces back the sun’s rays, helping keep roofs cooler to reduce ■ Fiberglass Insulation. Fiberglass products delivers a 90% reduction air conditioning energy levels. insulation is the most widely used in global warming potential (GWP) compared to the blowing agent We offer shingles that meet EPA type of insulation in the United ® ® ENERGY STAR requirements States, Canada, and Mexico today, used to make legacy FOAMULAR for solar reflectance of 0.25, the and Owens Corning’s iconic PINK® insulation and is optimized to fraction of solar energy reflected insulation is available in a variety of demonstrate a greater than 80% by the roof. product lines to serve this market. reduction in embodied carbon. A typical pound of insulation saves It offers these benefits without 12 times as much energy in its first any decrease in performance for year in place as the energy used to customers. produce it. That means the energy ■ Mineral Wool Insulation. Our mineral consumed during manufacturing wool insulation is used in commercial is saved during the first four to and residential buildings and can five weeks of product use. The also deliver fire containment with insulation continues to save that its high-temperature durability. In amount of energy every month particular, Thermafiber® mineral wool throughout the life of the home or resists fire and temperatures up to building in which it is installed. 1,200˚ F while also providing sound
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Sustainable Growth | 122 ■ Composites. Glass-reinforced Sustainable Composite rebar is also beneficial composites can be light, insulating, Infrastructure in situations where concrete is and resistant to corrosion, impact, manufactured using salt water, as and heat. They are used to replace ■ Products from Our Coated it resists corrosion. By using salt steel, aluminum, wood, and Wovens Business. These include water, manufacturers are able to other materials. Fiberglass as a geosynthetic membranes to preserve the amount of quality reinforcement provides for lighter provide superior solutions for water fresh water available for human weight while delivering comparable management, agriculture, and consumption. or better strength than other the protection of high value raw ■ Composite Utility Poles and materials such as steel. Lighter materials. Our roofing underlayment Cross-Arms. We are working with weight means more fuel efficiency contains a minimum of 20% several pole customers globally to in all forms of transportation. One recycled content. develop utility transmission and area where we are contributing communication poles. These glass ■ Corrosion-Resistant Rebar. The to lighter vehicles is in the fiber reinforced plastic (GFRP) American Society of Structural development of battery covers poles offer reliability and resilience Engineers estimates that one for electric vehicles, which adds in high-load situations such as ice in nine bridges in the U.S. is another layer of sustainability to storms and high winds. They last structurally deficient. In many our efforts. longer than wooden poles, and they cases, bridge failure is caused With increasingly higher-strength resist fire, wind, and other potential by corrosion of the steel rebar technology, composites have also damage. And unlike chemically used in the supports and surface, provided more efficiency and greater treated wood poles, which can and many states are looking at economy for wind energy turbines leach chemicals into the soil, GFRP significant infrastructure projects using longer, lighter, and more composite materials are considered to repair or replace these bridges. productive blades, including those inert, minimizing adverse impact These projects are often disruptive, designed for lower wind speeds and to the environment where they are costly, and wasteful. emerging off-shore installations. installed. In addition, composite In this context, longer-lasting poles weigh up to 75% less than For some applications, glass bridges are better for the wooden poles, making them lighter fiber composites also have been environment — and for the people to transport and safer to install. shown to have less impact on the who use and maintain them. environment through comparison Owens Corning’s fiberglass rebar ■ Composite Railway Sleepers. of the life cycle assessment of offers a sustainable solution. The Another company is leveraging the specific parts made from steel advantages of Owens Corning’s polymers from recycled car seats and aluminum. Material use, fiberglass rebar over traditional to build railway sleepers (also called durability, weight, and/or reduced steel rebar are numerous — it lasts railroad ties or crossties). Owens maintenance are often key drivers. twice as long, it’s four times lighter, Corning is providing them with and it resists corrosion. We’ve glass fiber, which adds strength worked with the U.S. Department and support for this product, which of Transportation and several state in turn ensures that the railway agencies on specific bridge projects sleepers will deliver longer life than to demonstrate the benefits. traditional wood.
The color PINK is a registered trademark of Owens Corning. © 2021 Owens Corning. All Rights Reserved.
Photo: Fiberglass rebar.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Sustainable Growth | 123 In many ways, sustainable growth is GOING informed by our commitment to the other facets of our product handprint FORWARD aspirations. As we innovate, contribute to the circular economy, and promote involvement throughout our value chain, we are helping ensure that our definition of success is tied to the sustainability standards we have set for ourselves.
More and more, our customers are demanding sustainable solutions. This is strengthening the connection between our sustainability, marketing, and sales organizations, as our cross-functional, customer-facing teams work to understand and meet these needs. With our aspiration to offer the most recognized and preferred products for sustainability, we are committed to collaborating with customers and others in the supply chain. We are innovating with our net-positive approach in mind, working to ensure that our growth as a company is good for people and the planet.
We believe that our progress will yield sustainable growth for the company, our customers, our suppliers and our investors. We want to be part of building a sustainable future, and we want to continue to be a vibrant company that can help make the world a better place.
Photo submitted by: Jamie McClellan | Toledo, Ohio, U.S. Monarch butterfly caterpillars on a milkweed plant.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Sustainable Growth | 124 SUPPLY CHAIN SUSTAINABILITY
In this chapter: 2030 GOALS STRATEGY & APPROACH INITIATIVES PERFORMANCE GOING FORWARD
At the heart of Owens Corning’s sustainability efforts, there is one vision — our people and our products making the world a better place. We expect that this shared vision also extends throughout our vast network of suppliers, as we rely on their collaboration to help make the world a better place.
Our work with suppliers extends across all three of our key sustainability pillars. Suppliers help us increase our product handprint by facilitating product stewardship and products that are safe and environmentally responsible throughout their life cycle. We also expect our suppliers to make efforts to reduce their greenhouse gas emissions, which helps us reduce our environmental footprint. And because our Supplier Code of Conduct has explicit statements regarding the protection of human rights, we rely on our network of suppliers to assist us in the expansion of our social handprint.
Photo submitted by: Micki Vanderpool | Rockford, Illinois, U.S. Eucalyptus plants.
We expect our suppliers to adhere to the same principles that guide us on our sustainability journey.
Our supply chain sustainability efforts Sustainability Materiality Definition: align with the following UN SDGs: We strive to hold our suppliers to the same high standards we hold ourselves. We see our suppliers as a key contributor to our overall sustainability vision and seek to ensure all our suppliers fully comply with all applicable legislation, regulations, and legal requirements on human rights, labor, the environment, anti-corruption, and trade and customs.
The data in this chapter marked with a + sign were independently assured to a moderate level by SCS Global Services. For more information on the assurance process see About the Report, and for our verification statement please see Appendix F.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Supply Chain Sustainability | 125 Over the next decade, we will collaborate with our suppliers to increase transparency 2030 GOALS around the raw materials used in our products. Through these partnerships, we will also FOR SUPPLY CHAIN reduce greenhouse gas emissions related to our purchased materials and services. By 2030, we will have cut these emissions by 30%.+ In addition, 100% of our global SUSTAINABILITY sourcing team will be trained and recertified annual on sustainability.+
As we look ahead to 2030, we will also anticipate 100% compliance with our Supplier Code of Conduct among our suppliers, and we will continue to prioritize supply chain partners that share our commitment to sustainability in all its forms.
Reduce absolute Scope 3 greenhouse gas by collaborating 100% of our global sourcing team will be trained and with our suppliers to cut these emissions by 30%.+ recertified annually on sustainability.+
2020 3,436,945 2020 2019 3,784,557 12% improvement 100% 3,883,945 from base year. of team trained or recertified.
2018 2030 GOAL BASE YEAR 30% REDUCTION A tool has been implemented across global sourcing The reduction in Scope 3 emissions is due to a decrease in and will be used in category strategies going forward. downstream transportation and a slight, but not insignificant, Traning was conducted either in-person or online with decline in business travel and employee commuting due to 100% of global sourcing members.+ the COVID-19 pandemic.
Our global manufacturing facilities 2020 Supplier Base by Country STRATEGY perform processes that convert raw material inputs into finished products COUNTRY % OF TOTAL AND APPROACH (or, in the case of composites, finished United States 34% Through all our policies input materials to be used by another China 9% business). With operations in 33 and procedures, we have India 8% countries, we manage inbound and very stringent standards France 5% for our suppliers. outbound freight transport via truck, ship, and rail. Most of our supply spend Canada 5% goes toward material suppliers, with Sweden 5% Owens Corning uses a variety of raw the next greatest amount going to materials, including minerals, chemicals, Finland 5% transportation companies. In addition, energy, and packaging to manufacture Mexico 4% we work with distributors and service our range of products, including: suppliers for capital goods, machinery, Brazil 4% ■ Fibrous insulation (fiberglass, and myriad technical, consultative, and South Korea 4% FOAMGLAS®, and mineral management services. Italy 2% wool) and extruded Our total base of suppliers consists of Netherlands 2% polystyrene foam insulation. more than 22,000 organizations with an Belgium 2% ■ Roofing products (shingles approximately $5.4 billion spend, with Russia 2% 1,311 suppliers comprising 73% of that and underlayment), United Kingdom 2% InterWrap®, and asphalt. spend. We have active management processes in place to evaluate, segment, Lithuania 1% ■ Composite glass fibers and engage with all top-spend suppliers. Spain 1% for reinforced polymer We determine appropriate action items Germany 1% products, or other forms related to each supplier based on the Japan 1% used for veils, liners, and supplier’s specific profile, as described other input products. in the Management of Suppliers and Singapore 1% Risk section later in this chapter. Other 2%
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Supply Chain Sustainability | 126 Selecting Suppliers Our Supplier Code of Conduct states ■ Establish goals and monitor the that suppliers are expected to: reduction of their environmental We use a range of policies and ■ Fully comply with all applicable footprint. procedures to inform the decisions legislation, regulations, and legal we make, both in selecting and ■ Have employment standards and requirements related to human retaining the companies with whom practices that include fostering rights, environmental concerns, anti- we do business. In doing so, we can diversity, providing suitable working corruption, and trade and customs. easily determine those companies conditions and compensation, and whose priorities most closely align ■ Provide effective management forbidding forced and child labor. with our own. systems for EHS (environment, This code is explicitly consistent with health, and safety) and product our human rights policy and includes, Supplier Code of Conduct stewardship programs. for example, expectations related to Owens Corning is a signatory to human trafficking and the sourcing of ■ Provide products that are safe and the United Nations Global Compact conflict minerals. environmentally sound during their (UNGC) and a member of the Dow use and disposal. In all areas, Owens Corning expects Jones Sustainability Index (DJSI). suppliers to comply with country- The supplier standards defined ■ Have programs to reduce the specific or local legislation, the in our Supplier Code of Conduct environmental impact of their international norms explicitly are consistent with the principles products, including the reduction of referenced in the code, or Owens established by these two entities. discharges into natural surroundings Corning specific standards, whichever and other sources of pollution. standard sets the highest expectations. Owens Corning has a human rights policy in accordance with the UNGC, and the expectations on human rights are outlined above and the expectations are outlined in our Human Rights & Ethics chapter.
Photo submitted by: Lori Strohmaier | Toledo, Ohio, U.S. World Headquarters in Toledo during winter.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Supply Chain Sustainability | 127 Local Sourcing Each requestor is also responsible for each year. The new process also the completion of a cybersecurity form, implements a stricter vendor approval Supplier selection depends on many which identifies whether the supplier process through the global sourcing considerations, including costs, quality will have access to any Owens Corning national leadership team. performance, delivery performance, databases or technology. If they will, innovation, financial viability, and the Owens Corning cybersecurity group In 2019, Owens Corning partnered conformance to the social, safety, and investigates, and they must approve with ISN, a global leader in contractor environmental standards found in our the supplier before a vendor number management, to implement a Supplier Code of Conduct. Supplier will be assigned. comprehensive validation process to location is also a consideration. When ensure Owens Corning is only working a supplier is nearby, engagement and Companies that are considered key with contractors that are committed transportation of materials can be more suppliers in the manufacture of product to working safely. All contractors efficient, which in turn leads to greater — including raw materials, capital, and performing work considered medium sustainability across the supply chain. facilities — may be subject to either a or high-risk are required to provide While we do not have a specific policy in self-assessment, an on-site survey, or specific documentation, such as place for local procurement, we define both. Through these surveys, we can insurance certificates, OSHA records, “local” to be within a 250-mile radius of assess their overall business practices, and copies of their EHS programs any of our facilities, and we track this facilities, safety and sustainability appropriate for the type of work they information for U.S. facilities. practices, and risk mitigation processes. perform. This information is evaluated Suppliers are provided the Owens and graded by ISN according to criteria In 2020, 33% of Owens Corning’s Corning Supplier Code of Conduct established by Owens Corning, and all purchases were made locally for and it is referenced at several points: contractors must have an approved significant locations within our during the request for proposal, contract grade prior to performing work on an operations. Some products, such as creation, on-site evaluation, and self- Owens Corning site. cullet (recycled glass), are sourced near evaluation. In line with the Supplier plant locations as a matter of course. Code of Conduct, in 2020, 100% of Acquisitions and Many of our facilities have rail delivery new suppliers were evaluated for these Supply Chain Sustainability capability, which falls outside the 250- issues as well as environmental and mile radius for local procurement, but Bolt-on acquisitions are part of Owens social criteria (e.g., human rights and Corning’s strategy for growth. With still provides cost and environmental labor practices). benefits compared with truck transport. acquisitions come new suppliers, We may also review the financial health many of which are significant and Supplier Validation Process of potential and current suppliers to many of which are based outside the and New Supplier Selection assure their ability to support Owens U.S. Whenever we consider acquiring another company, we exercise due All suppliers must be assigned a Corning. We conduct these reviews diligence to evaluate supply chain vendor number before they are entered using the following resources: risk. It is important that the target in our supplier database. During the ■ Dunn & Bradstreet Credit Reports. company’s current suppliers are high- assignment process, each vendor is ■ quality, capable, safe, and able to meet screened for any global or governmental Lexis Nexis. our standards. sanctions using the Refinitiv World- ■ Market Research Reports. Check system, a database established Soon after a transaction is completed, by Thomson Reuters to assess, ■ Reference USA. we engage with each acquired manage, and remediate potential These resources assist us in business to set expectations and risks associated with individuals and researching those companies that are implement a consistent structure for organizations. Information is collated new or current suppliers to Owens supplier relationships. We provide from an extensive network of reputable Corning. We also have a process in extensive training to ensure that sources, including: which we work with our treasury team the acquired business understands ■ Over 530 regulatory, law enforcement, to reach out to those suppliers that are our Supplier Code of Conduct and sanction, and watch lists. not publicly held. This provides us with how to administer it. In addition, our a financial risk score, assisting us in our commodity leaders spend time getting ■ Local and international selection decision. to know the acquired company’s key government records. suppliers, explaining the Supplier Code In 2020, a new vendor requisition of Conduct, following up on issues of ■ Country-specific data sources. process was created and concern, and, if necessary, identifying ■ International adverse electronic and implemented globally. The new alternative potential suppliers. physical media searches. process limits the number of Owens Corning employees who can ■ English and foreign-language create vendors. It also requires that data sources. requestors receive training necessary to hold licenses to the system, and ■ Relevant industry sources. plans exist to recertify license holders
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Supply Chain Sustainability | 128 Management of Suppliers and Risk Supplier Segmentation
Owens Corning seeks to develop a complete understanding of every company in our supply chain, including the various ways these companies could affect our operations. To achieve this, our global sourcing team uses our Segmentation Tool to assess and classify all our primary suppliers (those whose spending is $400,000 or more). The tool uses five questions related to risk and five related to impact, each weighted based on its importance to Owens Corning, to compile an overall score that places a supplier in one of our classification categories.
The assessment we have developed reflects our emphasis on risk mitigation, our need to address single and sole source suppliers, and our need to develop strategies in each commodity category. Each supplier is assigned scores based on two categories. Photo submitted by: Sarah Hill | Newark, Ohio, U.S. ■ Risk. The risk score captures potential for instability in our ability to purchase Running product at the Newark plant. a given product or material. Higher risk may be the result of one or more of the following reasons: • There is only one supplier for this material or product. • There would be significant cost associated with switching suppliers. • The supplier is subject to greater instability or disruptions. • The supplier may not have publicly stated sustainability or safety measures. ■ Impact. The impact score reflects the ways that a supplier’s situation can affect Owens Corning’s bottom line. High-impact suppliers are generally those who: • Offer innovative products. • Offer significant cost and/or productivity savings. • Deliver a competitive advantage for us. • Serve as a necessary part of Owens Corning’s business operations. Once the scores have been assigned, the suppliers are placed into one of four categories, and from there we are able to establish action plans to ensure that our relationship with each supplier is optimized to increase their overall impact and mitigate our risk.
The classification is also used to identify relationship owners, action items, and supplier, commodity and/or business strategies. The Segmentation Tool has been updated and improved over the years, with the latest update taking place in 2019 to address Owens Corning’s evolving focus on risk mitigation, single and sole source suppliers, and strategy development in each commodity category.
We have segmented the top 1,311 suppliers based on their impact and risk. In 2020, approximately 14% of our segmented suppliers were identified as critical suppliers (high risk/high impact), and approximately 13% were identified as bottleneck suppliers (high risk/low impact). Both segments are key focus areas in our supply chain responsibility efforts.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Supply Chain Sustainability | 129 Supplier segments categories and their specific action plans are outlined in the following chart:
Characteristics of Different Supplier Segments and Action Plans
Collaborative Supplier Critical Supplier Low Risk/High Impact High Risk/High Impact Relationship Owner: Commodity leader, with multiple levels Relationship Owner: Sourcing/business leaders, with of involvement — including executive. multiple levels of involvement — including executive. These are highly significant for Owens Corning, and they While critical suppliers present risk or are subject to often represent a high portion of our overall spend and/or disruption, as outlined above, they also offer high impact high-volume bulk purchasing. They often offer low-complexity to our operations, due to high spend, innovative or key items, and Owens Corning has purchasing power in these product or services offerings, products, cost savings, a transactions. There are often multiple available suppliers that competitive advantage, or a long-term relationship with can be transferred at a reasonable cost. Owens Corning.
COLLABORATIVE SUPPLIER ACTION PLAN CRITICAL SUPPLIER ACTION PLAN ■ Ensure contract/supply agreement. ■ Ensure contract/supply agreement.
■ Document and confirm contingency plan. ■ Complete risk assessment, then document and confirm contingency plan with upper management. ■ Administer annual supplier performance management ■ Create communication plan with upper management. ■ Search for partnership in R&D and retain long-term relationship. ■ Administer biannual supplier performance management. ■ Search for partnership in R&D and form long-term relationship.
TRANSACTIONAL SUPPLIER ACTION PLAN BOTTLENECK SUPPLIER ACTION PLAN ■ Leverage competition. ■ Restrict future business until risk is mitigated. ■ Outsource. ■ Ensure contract. ■ Automate. ■ Complete risk assessment, then document and confirm ■ Consolidate spend/reduce vendors/increase impact contingency plan. ■ Leave supplier in “non-critical” category. ■ Administer biannual supplier performance management. ■ Prepare exit plan/dual source.
Transactional Supplier Bottleneck Supplier Low Risk/Low Impact High Risk/High Impact Relationship Owner: Relationship managed by local sourcing. Relationship Owner: Commodity leader. Transactional suppliers represent a low impact on our In addition to the risk factors stated above, bottleneck operations and/or cash, and they offer standard items and suppliers deliver lower levels of profitability and are low multiple available suppliers can be transfered at reasonable or medium spend. The products they supply may also be cost. Most of these suppliers are financially strong and stable, technically complex and/or may represent a limited source without disruptions to supply. or a niche market. IMPACT
RISK
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Supply Chain Sustainability | 130 Identifying and Mitigating Risk membership with ISN, and the cost commodity sites such as Beroe, as well to the contractor is based on their as resources related to chemical, oil, Owens Corning has several methods number of employees. and more. Each sourcing professional is to identify risk in our supply base, trained in gathering category and market including segmentation, the risk In our plants, we have a process to intelligence, using tools such as SWOT, mitigation tool, supplier performance record and track non-conforming PEST analysis, Porters, and more. measurement, category strategies, material from suppliers. Suspect or on-site or self-evaluations, and rejected material is segregated, which Risk Mitigation/Contingency Planning sustainability evaluations. In addition, drives further investigation by the Our new, detailed risk mitigation tool risk can be introduced by our suppliers supplier into any material that may is required for all Collaborative and through non-conforming material or be in stock or en route. We also use Critical suppliers, along with all single work while on-site at our facilities. an 8D process, an industry-standard and sole source suppliers. The tool Our contractor management standard corrective action that requires the consists of the following sections: requires that all contract employees supplier to respond with a detailed working at Owens Corning sites meet description of the problem, an ■ Risk identification. certain standards before proceeding immediate containment plan, short- ■ Risk assessment. with any work. Each contractor that term action, a root cause analysis, performs medium- and high-risk work long-term corrective action, an ■ Maturity assessment. activity must submit appropriate implementation plan, a prevention plan, ■ documentation and achieve an and an implementation evaluation. We Risk scorecarding and acceptable grade by our external use this tool for any corrective action segmentation. partner, ISN, prior to being awarded that is requested from our suppliers. ■ Prioritization. any jobs. Examples of documentation We utilize various subscriptions and include; a Certificate of Insurance, ■ Documented contingency planning, memberships to assist in our risk copies of specific safety programs, where required. assessment of suppliers, market, OSHA forms, and questionnaires Areas of risk assessed for suppliers and competitive landscape while about their EHS and sustainability include human risk, complex risk, making sourcing decisions. We have programs. Owens Corning and information and legal risk, quality risk, memberships with Procurement the individual contractor pay for reputational risk, and operational risk. Leaders, Gartner, MAPI, and specific
Complex Risk Information and Legal Risk
2. Customer- 5. Intellectual 1. Intracompany 3. Compliance 4. Contractual 6. Data Access 7. Data Storing Supplier Property
8. Customer 30. Transactional Data
29. Turnover 9. Quality Quality Risk Human Risk
28. Forcasting & 10. Facility Planning Continuity Important note: These risks exist at many different altitudes, such as across the entire company, across the 11. Facility 27. Pricing procurement function, for certain suppliers for certian Safety regions, and more. 12. Supplier 26. Sub-Tier Company risks from different altitudes can be challenging, but is necessary to have a holistic Reputation perspective on risk. 25. Logistics & 13. Health & Inventory Safety
24. Concentration 14. Ethics & Dependence
15. Corruption, 23. Discretionary Bribery, & Fraud
20. Supplier 19. Supplier 22. Market 21. Geopolitical 18. Diversity 17. Environment 16. Brand Financial Mistreatment
Operational Risk Reputational Risk
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Supply Chain Sustainability | 131 The tool takes each identified risk Supplier Evaluation indirect, and energy. Each section has through a series of scoring matrices, questions and ratings that are created Owens Corning sourcing and supply with the final chart being a risk and weighted specific to that category. chain professionals evaluate existing tolerance chart showing “impact” and The supplier performance scorecard and potential suppliers using either “likelihood” of the risk. This then drives provides feedback to the supplier on-site evaluations or supplier self- the documented contingency and and drives improvement in several assessments. testing process for the highest priority areas, each of which are a weighted risks. Contingency plans can be ■ On-site evaluations are specific to percentage of the total. These areas completed on a supplier, category or the kind of supplier (e.g., chemicals, are as follow: minerals, cullet, packaging) and business basis and can take different ■ Cost/Value. shapes. They can be a documented focus on the highest risks for each plan for backup transportation, raw category. ■ Quality. material, temporary employment, ■ Self-assessments are in-depth ■ EHS. or a request for production data to documents asking about business ensure that a supplier’s process is ■ Delivery/Support. practices, investments, quality consistently running good material. management systems, and more. ■ The risk mitigation tool was used Flexibility and ease of doing with all category strategies in 2020 Both evaluations include questions business. to create contingency plans and about the Owens Corning Supplier The EHS questions ask if the supplier identify highest risk areas — a required Code of Conduct, which includes complies with the Supplier Code of component in the semi-annual a range of social criteria, including Conduct, and if the supplier has an category reviews. discrimination, child labor, forced environmental and safety policy. If the labor, human trafficking, the right to supplier’s scores are unacceptable, it is Reducing Risk from collective bargaining, and the right the category leader’s responsibility to Single-Source Suppliers to freedom of association, as well as resolve the issue using a documented safety and environmental policies. This While raw materials usually come corrective action plan, and then process also evaluates the suppliers’ from more than one supplier, Owens continue to monitor the situation treatment of contracted labor, women, Corning has some single-source until the corrections have been made and children. supplier relationships that provide and subsequent scorecards show improvement. If improvement is not unique, value-added product and Throughout 2020, we continued our made, other types of resolution will service capabilities. Such companies annual process of evaluating and be considered, including business fall into the Critical supplier category assessing existing and new suppliers restriction or exit planning. in our supplier segmentation tool, and through on-site evaluations and self- they are subject to close monitoring, assessments. In total, we conducted Supplier Sustainability Assessment engagement, and collaboration with 33 on-site evaluations and self- the sourcing team. assessments in 2020. Another tool used in assessing supplier risk is our Supplier Our sourcing team maintains a regular Supplier Performance Sustainability Assessment. Our survey schedule of safety, environmental, is mapped to ESG risk categories, and sustainability, and quality audits of Any supplier that is categorized as specific topic areas within the survey single-source suppliers. In addition, a Collaborative or Critical supplier include code of conduct, both Owens we work with these companies to is required to complete our supplier Corning and supplier, sustainability address any gaps in their risk analysis performance scorecard and risk policies and goals, environmental and contingency plans. Owens Corning mitigation process, which is a detailed management system, health and meets with leaders of single-source worksheet that includes a risk tolerance safety policies and goals, labor policies companies to review and update all sheet and prioritized contingency action and practices, and raw material. pertinent information. plans. Additionally, any single-source or sole-source suppler must also go We have been sending annual through the risk mitigation process, supplier sustainability assessments to regardless of their classification. suppliers, regardless of classification, since 2014. Beginning in 2019, we The Supplier Performance shifted our focus to key suppliers and measurement process is focused on sent the assessment only to those those suppliers that have a risk score suppliers classified as Collaborative, of 2.0 and above on the segmentation Critical, or Bottleneck. Each supplier tool. The tool is separated into four is asked if they can comply with sections: raw material, transportation, the Supplier Code of Conduct; if
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Supply Chain Sustainability | 132 they are unable to comply, they are Areas of Human Rights Concern asked to provide the reason and As part of our overall commitment to supply chain sustainability, Owens Corning offer supporting documentation of is taking steps to manage known risks that may exist among our suppliers. Our their own code of conduct. More goal is to mitigate these risks wherever possible through proactive measures and than 96% of suppliers say they are consistent monitoring. able and willing to comply with all aspects of our Supplier Code of Sand Mining Conflict Minerals Conduct.+ When training buyers or professionals responsible for making Owens Corning requires sand as part of Conflict minerals are those materials decisions regarding the selection our manufacturing operations; as such, that are mined in areas where of suppliers or the awarding of we have a vested interest in ensuring a conflict is occurring, and which are business, the information gained from sustainable responsible supply chain for then sold in order to perpetuate the the sustainability survey is always this essential material. We continue to fighting there. Owens Corning does stressed as an important element in monitor our silica sand mining supplier not tolerate the use of raw materials the final decision. for environmental and human rights that directly or indirectly contribute conduct, as this industry has been to armed conflict or human rights As part of our due diligence, Owens identified as a risk due to increased abuses in any of its products. Corning also uses these assessments sand consumption around the world. to identify and gauge impacts and We follow the U.S. Securities and risks as they relate to our suppliers’ In 2020, our silica sand consumption Exchange Commission guidelines commitment to human rights. was approximately 703,500 metric in disclosing any use of conflict Suppliers are asked whether they have tons, with nearly 64% coming from minerals and in conducting reasonable policies in place regarding human North America. Glass production country-of-origin inquiries as required trafficking, forced labor, child labor, and requires a high grade of silica, which by those guidelines. We also follow anti-discrimination. In addition, we ask generally comes from mines and the Organisation for Economic Co- suppliers whether they employ migrant quarries rather than riverbeds or Operation and Development (OECD) workers in their operations. shorelines. Our global commodity Due Diligence Guidance for Responsible leaders regularly reach out to suppliers Supply Chains of Minerals from Conflict- Corrective Actions in Asia, India, North America, Latin Affected and High-Risk Areas. Owens Corning uses an industry- America, and Europe, and they have Suppliers are expected to have a policy standard process when corrective confirmed that our silica is sourced in place to address the responsible actions need to be taken with our from legal mines and quarries, without procurement of minerals. They are also suppliers. This process includes human rights violations. We are expected to train appropriate personnel the following: confident in the integrity and continuity on this policy, implement a risk ■ of our silica supply base. In addition, Short-term action and assessment (supply chain mapping) of our commitment to glass recycling can containment plan. all conflict mineral sources, and develop help reduce our reliance on sand in the an appropriate risk mitigation strategy ■ Root cause analysis. production of fiberglass insulation. for suppliers identified as “high-risk” in ■ Identification and verification of the supply chain mapping exercise. long-term corrective actions. Owens Corning encourages the supplier ■ Implementation of long-term to verify the due diligence practices corrective action. of their suppliers regarding conflict minerals. They are also urged to join ■ Final verification and sign-off by or build partnerships with industry stakeholders. organizations that implement due We typically deliver our written diligence in the mineral supply chain. request for corrective action during supplier assessments and upon We work to ensure receipt of non-conforming material. that our silica is In addition, we may ask suppliers sourced from legal to provide additional inspection mines and quarries, data with a shipment, showing without human rights actual measurements for critical violations or negative characteristics, as well as sign- environmental impact. offs from management at supplier locations.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Supply Chain Sustainability | 133 suppliers, such as evaluations, with all aspects of our Supplier Code SUPPLY CHAIN sustainability surveys, segmentation, of Conduct.+ Those that could not say and risk mitigation plans. Housing that they comply are listed as high-risk, SUSTAINABILITY all processes in one location helps and follow-up management is in place. category leaders complete supplier INITIATIVES Owens Corning also surveys suppliers performance reports, supplier about their policies and goals related to We expect suppliers to segmentation, and more. adhere to our sustainability sustainability and safety. Of the survey standards — reducing our Supplier Sustainability Survey respondents, we found that 91% of suppliers have organizational goals We contacted 1,283 suppliers from environmental footprint and policies for safety, and 80% have around the world to take our 2020 and increasing our social organizational goals and policies related supplier survey, and 302 did so — a and product handprints. to sustainability. Many of the companies response rate of approximately 24%. report on their goals and policies Owens Corning has sought to Of the suppliers that responded, more internally and externally, and some establish clear expectations for our than 96% are able and willing to comply publish their data at least annually. suppliers where sustainability issues are concerned, and we expect full compliance with our Supplier Code of Conduct.
OC Sourcing Way
The OC Sourcing Way was written to standardize the process of creating 96% 91% of respondent suppliers have strategies in global sourcing. of respondent suppliers are able and willing to comply with organizational goals and policies We are continuing to train new all aspects of our Supplier for safety. employees in global sourcing and work Code of Conduct.+ to make improvements to the process to meet the needs of our organization. Each category leader is responsible for establishing category strategies based upon the output of the segmentation tool, business objectives, market forecast, and more. The strategies 80% 82% may focus on creating dual sources, of respondent suppliers have of respondent suppliers have risk mitigation, innovation, or cost organizational goals and policies in place regarding labor savings initiatives for the business. policies related to sustainability. practices and human rights. In our continuing efforts to reduce risk and bring top value in our supply chain, we have recently implemented Additional results from the survey on Owens Corning uses the survey data to Global Sourcing Bi-Annual Category other key ESG topics include: accomplish the following: Reviews. The purpose is to review each ■ 82% of respondent suppliers have ■ Learn how companies perform, global strategy in its entirety with the policies in place regarding labor including areas where they are Sourcing Leadership team. Keeping practices and human rights. strong and where additional with the OC Sourcing Way, the agenda support may be required. includes the category profile, industry ■ 61% of respondent suppliers have analysis, supplier segmentation, policies in place that prohibit forced ■ Highlight areas that need additional supplier performance measurement, labor or child labor attention and follow-up. For risk mitigation/contingency plan, value example, questions that a company ■ 21% of respondent suppliers’ creation, and strategy plan and success does not answer are treated as a operations are covered by a measures. This review includes most negative response, which triggers certified ISO 14001 or EMAS collaborative and critical suppliers. direct follow-up. environmental management The OC Sourcing Way intranet site system. ■ Identify best practices and houses a wide range of information, leading companies that should be providing global sourcing members considered for an Owens Corning with the latest information on shared supplier award.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Supply Chain Sustainability | 134 GAINING INSIGHTS INTO SUSTAINABILITY SUPPLIER RISK
Owens Corning’s partnerships with universities provide students with valuable real-world experience. At the same time, we’re able to learn from them as they help us discover ways we can improve our performance.
We use the quantitative and qualitative methods discussed throughout this chapter to evaluate risk throughout our supplier base. We have partnered with the Fisher College of Business at The Ohio State University to gain insights into the management of our supply chain. Using this research, we can identify potential gaps and Citi® Sustainable Supply Chain Finance Program areas of improvement in our risk management strategies, especially Owens Corning is currently ranked number one on the 100 Best Corporate as they relate to sustainability. Citizens list. Number two on the list is Citi®, and we are proud to partner with them in the Sustainable Supply Chain Finance Program to help us achieve Through our partnership, we will ask our supply chain sustainability goals. Suppliers that meet our target to reduce students to determine best practices absolute GHG emissions are eligible for financing that helps them improve their for our quantitative and qualitative cash flow and the accuracy of their financial forecasting. methods, as well as compare our sustainability supplier risk efforts The Sustainable Supply Chain Finance Program is one more example of Owens with those of other companies, Corning collaborating with stakeholders everywhere to make great strides including their performance with toward our sustainability goals. human rights issues such as human Supplier Awards trafficking, slavery, and labor rights. Each year, Owens Corning celebrates our global suppliers with an annual two- This project will provide us with a day series of events that includes a business meeting and a fundraiser for the greater understanding of how we Owens Corning Foundation. Usually, the event brings hundreds of suppliers to evaluate risk, interpret the results Toledo for networking, planning, and fun and allows Owens Corning to award of those evaluations, and take our top suppliers for their partnership. This year, the event and awards were necessary actions. In doing so, we held virtually over a period of two days. Suppliers were invited to presentations can improve the ways we measure that included business updates by our corporate leaders and open panel sustainability supplier risk and further discussions. During the business meeting, suppliers learned about Owens our overall sustainability goals. Corning’s sustainability goals over the next ten years, including our inclusion and diversity goals, and how these pertained to our suppliers.
There were dozens of nominations for the awards and ten finalists, and sustainability performance was a factor in determining winners. Four suppliers won the final award for Supplier of the Year.
Photo submitted by: Jill Ries | Granville, Ohio, U.S. Ryan Armstrong and Nardine Abadeer with a building test stack.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Supply Chain Sustainability | 135 SPEAKING OF SUSTAINABILITY
Brad Parkhurst Currently a global energy sourcing team leader, Brad Parkhurst has worn many hats in his 20-plus years with Owens Corning. Having worked in sales, transportation operations, and transportation sourcing over the year, Brad has an in-depth knowledge of our company and its place of leadership within our industry. As an expert in sourcing renewable energy — a key component in supply chain sustainability — Brad also has great things to say about where Owens Corning is heading as a company.
On where we’re coming from and where On the potential for sustainability leadership we’re heading within the business sector I’ve seen a lot more a lot more focus on the 2030 The commercial and industrial space will be pivotal in sustainability goals to get to 100% renewable electricity. changing the overall electricity grid through the participation When I started, we had just signed the two wind deals that are and the pressure of that. And with our support financially, they currently in place in the United States. I think that was a good will they will be able to help move forward faster than if it was leadership position that we took in terms of being one of the just solely up to regulators or government entities to drive the first industrials to move into that space. But now we’ve taken change. But our drive and our interest in meeting the 100% even a larger leadership position and the goal to get to 100% renewable electricity along with our peers, will help drive that renewable electricity. The other shift that I’ve seen, that’s that overall change in the grid, which is necessary to reduce hand in hand with 100% renewable electricity, is a big drive the carbon that’s produced through electricity generation. to reduce the carbon that’s embodied in our product. So, not only do we source electricity, natural gas and oxygen, but we On the shared commitment of the Owens also source carbon, whether that’s in the form of allowances, Corning team which are required by certain government entities, especially The overall interest from the employee base has me in Europe, or carbon credits, which can be used to offset the confident we’ll achieve our 100% renewable energy carbon in a product. goal. Every day I get asked questions by different people throughout our enterprise about how we’re going to achieve these goals. And mostly it’s from interest and the drive to help the environment out. I just see that engagement. It continues to grow the curiosity of our employees, and it continues to drive the company forward in terms of these Brad Parkhurst aggressive sustainability goals we have. Global Energy Sourcing Leader, Insulation Europe, Toledo, Ohio, U.S.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Supply Chain Sustainability | 136 SUPPLY CHAIN Scope 3 Emissions Recognizing the variety of activities both upstream and downstream of our operations, SUSTAINABILITY we follow multiple approaches to determine the amount of GHG emissions generated PERFORMANCE throughout our value chain. In 2020, our Scope 3 emissions totaled 3,436,945 metric tons of CO2e. More information about emissions across our value chain can be found Our work with of page 311 in Appendix C. suppliers is helping 2020 Scope 3 GHG Emissions us achieve our sustainability goals — Purchased goods and services 53% and make the world a Capital goods 3% better place. Fuel-and-energy-related activities (not included in Scope 1 or 2) 11% Upstream transportation and distribution 5% Business travel <1% Employee commuting <1% Downstream transportation and distribution 10% Processing of sold products 12% End of life treatment of sold products 6%
Transportation Sustainability see the possibility for advancement Purchased Goods and Services in the coming years. By 2030, we Although our strategies to reduce To determine the impact from anticipate that electric vehicles will be a Scope 3 emissions in transportation purchased goods and services, we use considerably more prevalent part of our remain challenging, we are also insight gained from our manufacturer- transportation strategy. committed to achieving our goals on specific product life cycle assessments this front. In 2012, we initiated a plan In the meantime, Owens Corning (LCAs). Annual production data are to convert shipping lanes from diesel- continues to focus on reducing the combined with life cycle modules that powered equipment to natural gas- number of shipments made each day. represent raw material, and that is used powered equipment and convert truck ■ We are working to reduce the to calculate the GHG emissions for lanes to intermodal transportation. We number of stock transfer orders, in manufacture of products across our established a goal to convert 12% of which finished goods are moved portfolio. The category of purchased North American transportation lines from one warehouse location to goods and services is interpreted from diesel to natural gas by 2020, another. Stock transfer orders lead as the cradle-to-supplier-gate global but the reduced cost of diesel fuel has to double handling and a greater warming potential impact of the caused efforts to stall as the ROI on number of touches overall. In representative raw material inputs ® equipment conversion has not been addition, this increases the number used to manufacture Owens Corning favorable for carriers. In addition, of miles a product travels before products. The data used to model economic growth and market demand arriving at a customer location. these impacts come from Owens over the past several years made it Corning’s manufacturer-specific difficult for Owens Corning to make the ■ We are maximizing the amount product LCA studies. conversion from truck to intermodal of product on each shipment and, equipment. Finally, the capacity of wherever possible, collaborating intermodal equipment in our heaviest with our partners to haul heavier conversion lanes has been below our loads on specific roads as allowed level of demand. by special permit. We are also working to reduce the weight of We remain optimistic about the certain products (shingles, for prospect of a shift toward electric example), without sacrificing fleets in transportation. Currently, product quality. In doing so, we can the demand for electric vehicles fit more pallets on a truck, thus outpaces the supply, but we expect to further increasing our efficiency.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Supply Chain Sustainability | 137 Capital Goods Upstream Transportation and Distribution The category of capital goods Due to the COVID-19 represents the GHG emissions Transportation is a significant source pandemic, both business generated from our assets, of GHG emissions when sourcing raw travel and employee which include manufacturing and materials for product manufacturing commuting were construction equipment as well as as well as in the distribution of finished dramatically curtailed land. We determine the representative goods. Using data from our sourcing through most of 2020. Our industry sector associated with each and logistic analysts, we determine ability to pivot to remote asset class’s economic activity. GHG the annual costs associated with each work was facilitated by emissions are calculated using the major transportation mode. After our ongoing efforts. In annual expenses incurred within the determining the GHG emissions per the years leading up asset class and the GHG emissions unit of economic activity within the to 2020, we adopted generated per unit of economic activity unique industry sector representing remote desktop sharing within its industry sector. each transportation mode, we can and increased our video estimate the GHG emissions generated conferencing capacities. Determination of Scope 3 emissions from the upstream and downstream Our calculations for 2020 associated with capital goods was transportation of materials. were adjusted to account performed using an EIO-LCA-based for the sites where the method and was calculated using Primary data were collected internally majority of our employees the EIO-LCA online tool developed by from Owens Corning logistic analysts were able to telework. Carnegie Mellon University. Primary for total spend associated with the data were collected internally on total inbound transportation of all purchased Reductions here had an spend for capital expenditure. materials. We categorized spend data impact on our Scope 3 and calculated the total spend for each emissions, and the extent Fuel- and Energy-Related Activities of the three transportation modes to which they will remain a In fuel- and energy-related activities, (truck, water, and passenger ground). factor in 2021 remains to we aim to quantify the GHG emissions be seen. Business Travel that occur both upstream and downstream of electricity generation. Rental car mileage and commercial Upstream emissions, which are cradle- air travel miles and emissions were to-generation in scope, include those received from our travel vendor. For from activities required to generate employee vehicle reimbursement electricity such as the extraction, related to business mileage, Owens processing, and transportation of fuels. Corning used an extract of miles from Downstream emissions, which are our travel system and determined generation-to-consumption, include emissions based on a standard those produced from additional emission rate provided by the U.S. EPA electricity generation that is needed to Greenhouse Gas Emissions from a compensate for line losses that occur Typical Passenger Vehicle guide. during transmission and distribution. Employee Commuting In our calculation for Scope 3 GHG Owens Corning used a simplified emissions for fuel- and energy-related version of the Scope 3 GHG Protocol’s activities, upstream impacts were average-data method to calculate determined using life cycle impact employee commuting emissions. We assessment factors, calculated using used the U.S. EPA’s guide to determine geographic-specific unit processes for an estimate of grams of CO per mile, high-voltage production from Ecoinvent 2 and we used the average number v3.6 and combined with emission rate of days worked per year to estimate data from U.S. EPA’s eGRID for U.S. employee commuting. We believe this facilities, and IEA for non-U.S. facilities. estimate is overstated because our For U.S. facilities, data for downstream calculations did not take into account transmission and distribution line telecommuting, public transportation, losses were calculated using eGRID. carpooling, business travel days that For non-U.S. facilities, we used IEA would be accounted for separately, or datasets for the calculation. other methods of commuting.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Supply Chain Sustainability | 138 Downstream Transportation End-of-Life (EoL) Treatment Customers and Distribution of Sold Products About 40% of GHG emissions in the Primary data for the annual total While we have continued to develop world today come from buildings, spend associated with the outbound innovative options for recycling asphalt so they are an essential target for distribution and transportation roofing shingles and GFRP materials, reducing emissions. Given that the of finished goods were collected insulation products are more likely building and construction industry internally from Owens Corning to be sent to landfill. Scope 3 EoL represents one of our main customers, logistic analysts. Transportation emissions were determined for Owens we qualitatively and quantatively spend data were allocated entirely to Corning insulation manufacturing monitor the GHG emissions from truck transportation as the mode of operations related to fiberglass and buildings in relation to their energy distribution for a more conservative XPS insulation. We determine the efficiency. Our commitment to approximation. Total transportation impact of this category by calculating sustainability includes energy-saving spend was used as the indicator of the GHG emissions generated when all products such as insulation and economic activity and used as the the glass wool and XPS foam produced air-sealing products. We estimate input in the EIO-LCA online tool. by our North American facilities for that the insulation we produced in 2020 is sent to landfill. North American in 2020 reduced Processing of Sold Products GHG emissions for homeowners by EoL emission factors were determined Many of our products, including approximately 8.7 million metric tons from cradle-to-grave EPDs, and the asphalt roofing shingles and insulation a year and 520 million metric tons over LCAs upon which they are based, on products, do not require additional a 60-year building life. A typical pound Owens Corning fiberglass insulation processing or energy sources to of fiberglass insulation saves 12 times and XPS insulation. The third- perform their function. Additional as much energy in its first year of use party verified LCAs were internally downstream processing, however, is as the energy used to produce it. That conducted for these products in 2017 common with intermediate products — means the energy consumed during and 2018, respectively. These factors reinforcement glass fiber, for example, manufacturing is saved during the first were used in conjunction with 2020 is often used in reinforced plastic four to five weeks of product use. production volumes for these two composites. To determine the GHG insulation materials to determine Our glass fiber composites contribute emissions from this category, we the Scope 3 emissions when the to light-weighting of vehicles for better correlate the revenue generated from production volume quantities are fuel efficiency, better efficiency of wind our Composites business to the GHG disposed as waste to landfill. turbines, and lower embodied energy emissions of industry sectors that than competing materials over the represent our glass-fiber reinforced life of the part. We collaborate with plastic (GFRP) customers. We customers to conduct LCAs for their calculate Scope 3 emissions for these products as well. products using the EIO-LCA online tool.
Photo submitted by: Felicia Feng | Yantai, China FOAMGLAS® ready to be shipped.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Supply Chain Sustainability | 139 Reducing our Scope 3 emissions GOING is an essential component of our sustainability goals. Achieving these FORWARD goals will require a tremendous amount of collaboration among all our stakeholders and transparency all along our value chain. In addition, our commitment to safeguarding human rights requires us to demand the same level of dedication from the companies with which we conduct business.
Incentives like the Sustainable Supply Chain Finance Program can go a long way toward empowering suppliers to join us on our sustainability journey. At the same time, we have a range of action plans through which we can assess risk, gauge supplier performance, and reinforce our expectations regarding compliance with our Supplier Code of Conduct.
Our global leadership gives us the ability to advocate for our values and encourage other companies to join us on our sustainability journey. One way we will do that is through the Owens Corning Diverse Supplier Program, through which we will create opportunities for businesses owned by minorities, women, persons with disabilities, service-disabled veterans, HUBZone-certified businesses, and LGBTQ individuals. By developing these relationships, we can establish mutually profitable business partnerships while fostering a culture of inclusiveness.
Through efforts such as these — as well as our long- standing supply chain initiatives — we will be able to do more to achieve our sustainability goals and help our suppliers achieve their own goals. With a range of tools at our disposal, including our Supplier Code of Conduct, we can help ensure that the companies we work with share our values and commitments.
Photo submitted by: Joshua Lyle | Memphis, Tennessee, U.S. Kentucky Lake, Kentucky, U.S.
2020 Owens Corning Sustainability Report | Expanding Our Product Handprint | Supply Chain Sustainability | 140 REDUCING OUR ENVIRONMENTAL FOOTPRINT
Our efforts to reduce our environmental footprint include the following elements: ■ Efficiency & Sourcing Renewable Energy. Discover how our efforts to break away from fossil fuels — and use less energy in general — are central to achieving our From small sustainability goals. fixes throughout our facilities to ■ Combating Climate Change. groundbreaking Owens Corning recognizes the devastating impact climate strategies that change is having on our planet — learn what we’re doing to lessen our negative prevent it by reducing greenhouse gas emissions. impact, we seek ■ Air Quality Management. to create a smaller Greenhouse gases are only one part of our commitment to footprint across cleaner air. See how we’re working to reduce a wide range all our operations of emissions. around the world. ■ Responsible Water Sourcing & Consumption. Owens Corning requires high-quality water in our processes — and we know other people do as well. See how we’re working to protect this increasingly precious resource. ■ Waste Management. From reducing waste in our processes to increasing our recycling, learn how we’re taking steps to become a zero waste- to-landfill company. ■ Protecting Biodiversity. Photo submitted by: We share the world with countless species, all living in a delicate Olivia Kasle | Toledo, Ohio, U.S. White Mountains, New Hampshire, U.S. balance. Discover the steps we’re taking to protect them.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | 141 ENERGY EFFICIENCY & SOURCING RENEWABLE ENERGY
In this chapter: 2030 GOALS STRATEGY & APPROACH INITIATIVES PERFORMANCE GOING FORWARD
The issues associated with fossil fuels are well- documented — they’re a non-renewable energy source, and their use releases CO2 and an array of pollutants into the air. As a society, we have long recognized the need to convert to renewable electricity, and this transition requires ongoing dedication, effort, and ingenuity.
Our progress here will impact many of our sustainability efforts. We are committed to reducing our impact on air and water quality, thereby promoting a cleaner and healthier environment. In addition, reducing the greenhouse gases associated with the burning of fossil fuels is essential to combating climate change.
Photo submitted by: Brianne Bass | Rockford, Illinois, U.S. Hoover Dam, Nevada, U.S. We’ve made great strides in reducing our dependence on fossil fuels. By improving efficiency and sourcing more renewable energy, we can do even more.
Our efforts to achieve energy efficiency and source Sustainability Materiality Definition: We are determined to continue decreasing our renewable energy align with these UN SDGs: dependence on fossil fuels, both by improving efficiency in our operations, and by meeting more of our energy demands through renewable sources.
The energy data in this chapter were independently assured to a high level by SCS Global Services. For more information on the assurance process see About the Report, and for our verification statement please see Appendix F.
For the data in this section, baseline adjustments were made following the World Resources Institute (WRI) protocols. Read more on page 288 in About the Report.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Energy Efficiency| 142 STRATEGY 2030 GOALS AND APPROACH FOR ENERGY EFFICIENCY & Our holistic approach to energy SOURCING RENEWABLE ENERGY management encompasses every facet of our operations. By 2030: We will be sourcing 100% renewable electricity. To meet our 2030 goals for responsible Purchasing electricity only from renewable sources is a key part use and sourcing of energy, we’re relying of our effort to halve our greenhouse gas emissions. Reducing on our entire workforce at all levels, as well energy use overall through energy efficiency improvements in our as innovations in our product development processes is another important strategy. and manufacturing. Our strategies involve developing innovative, energy-saving 2030 Renewable Electricity Goal Progress products and implementing programs designed to reduce our energy usage and shift toward renewable energy sources. 51% 2020 Tracking and Monitoring Our Performance
Owens Corning has robust systems in place to track and monitor our performance 50% 2030 GOAL against key energy-related indicators. Each 2019 100% RENEWABLE month, our plants report performance on 48% our goals and targets, which helps us stay 2018 current on data and spot variations that BASE YEAR may require corrective action. Renewable electricity as percentage of purchased electricity. At each of our plants, a designated energy leader oversees the implementation of Increase in green certifications in our EU facilities, as well energy management activities and helps as an overall reduction in renewable and non-renewable identify areas for improvement. In addition, electricity usage in several of our businesses globally. Owens Corning has energy managers who conduct assessments, facilitate Over our goal cycle, we will work to reduce energy use from Kaizen and Total Productive Maintenance renewable and non-renewable electricity as well as other forms activities, develop projects, and provide of non-renewable energy, including but not limited to natural gas, technical support. Several plants with fuel oil, gasoline, diesel, propane, and LPG, by 20% from 2018. medium and high energy usage also have energy teams that meet monthly. 2030 Energy Efficiency Goal Progress
improvement 11% from base year 4%
2018 2019 2020 2030 GOAL BASE YEAR 20% REDUCTION
The reduction percentage is a result of a decrease in energy use within renewable and non-renewable energy sources across our portfolio.
These two approaches, along with fuel switching and other low- or no-carbon fuels and technologies, will put us on the path to eventually eliminating our use of fossil fuels.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Energy Efficiency| 143 Outreach and Accountability
Owens Corning ensures accountability and encourages further progress toward our sustainability goals. ■ We believe that rewarding our employees for their dedication to sustainability is essential, and we recognize Photo submitted by: Micki Vanderpool | Rockford, Illinois, U.S. plant energy teams with companywide performance Rainbow over Clear Lake, Fremont, Indiana, U.S. awards. In addition, sustainability goals are a factor in incentive compensation for our management team. For example, we incentivize our composites energy teams with cash rewards and recognition.
■ Owens Corning partners with over 200 like-minded organizations in the U.S. Department of Energy’s Better Plants Program, which provides our energy leaders with tools, training and technical assistance. This year, we expanded our commitment to this program by entering the Better Plants Challenge. See page 146 for details.
■ We use a number of external platforms, including our website and this sustainability report, to publicly disclose our environmental performance. We also invite comments and feedback from all our stakeholders. Power Purchase Agreements
To expand our renewable energy platform, we have entered long-term power purchase agreements (PPAs), which support the development of large renewable energy projects. The PPAs signed in 2015 enabled wind capacity in Texas and Oklahoma, with the potential to generate 1.1 million megawatt hours (MWh) of electricity each year. We have diligently pursued contracts with renewable energy developers, including wind developers, to supply our renewable energy needs and support the growth of wind power.
For every MWh of electricity generated, we receive one renewable energy credit (REC), which we then apply to the manufacturing of our products. While it’s possible for a company to reduce its footprint simply by purchasing RECs, Owens Corning believes that, at this time, we should also be directly responsible for bringing more renewable electricity into the grid through power purchase agreements.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Energy Efficiency| 144 In 2020, approximately 51% of our Protection Agency to provide expert ENERGY EFFICIENCY electricity across our portfolio globally advice and technical assistance & SOURCING came from renewable sources, such to companies and organizations as wind, hydro, solar, and geothermal. seeking to increase their renewable INITIATIVES This metric is defined as the renewable electricity use. To qualify for energy sourced from the grid and the participation, partners must meet From everyday actions to energy enabled by our PPAs, including annual electricity use standards and major investments, Owens on-site generation. The following are meet a minimum percentage of their Corning is taking important highlights of our on-site and off-site annual electricity use in the U.S. with steps toward some very renewable programs in 2020: green power. As members of the Green ambitious goals. ■ Our facility in L’Ardoise, France, Power Partnership, Owens Corning sourced 100% renewable electricity receives access to a range of tools We use the energy baseline guidelines through the Compagnie Nationale and resources, as well as valuable established by the U.S. Department du Rhône’s (CNR) Caderousse assistance as we seek to achieve our of Energy’s Better Plants Program hydroelectric project, which harnesses 2030 renewable electricity target. to ensure that our metrics factor in energy from the Rhône River. Composites Energy Efficiency the total energy needed to generate, ■ Competition transmit, and distribute electricity In Toledo, Ohio, U.S., a from the power generation source 2.4-megawatt solar array provided Each year, our Composites business to the end user — also referred to as approximately 21% of the power for sponsors a contest that encourages primary energy. our world headquarters. our energy teams around the world to ■ take an active role in increasing their Renewable Energy Initiatives in 2020 The 2.7-megawatt solar panels installed at our insulation plant in energy efficiency. The contest, which Shifting toward renewable energy is Delmar, New York, U.S., provided is managed by the energy efficiency key to our carbon reduction goals. To approximately 9% of its required program manager, evaluates initiatives make this shift, we evaluate renewable electricity. based on the following criteria: energy opportunities globally and ■ Implementation of low- or no-cost ■ Our Tessenderlo, Belgium, location invest in on-site renewable programs. improvement projects. We also collaborate with external sourced approximately 14% of its ■ partners; through our sourcing electricity from wind turbines on- Energy intensity metric organization, we look at renewable site and off-site. improvement year over year. energy procurement options available ■ At our plant in Fairburn, Georgia, ■ Project listing for the coming year. through our utility providers. U.S., a one-megawatt solar ■ Engagement in an energy program installation saved an estimated Within the United States, and communications. 1,507 metric tons of CO e. approximately 59% of our electricity 2 ■ Implementation of electrical came from renewable sources: wind ■ Owens Corning PPAs are expected reliability actions. (56%), hydro (2%), and solar (1%). This to produce 1.1 million MWh percentage includes renewable energy annually, from capacity of 250 ■ Waste reduction improvement year sourced from the grid as well as megawatts of renewable electricity. over year. energy enabled by our PPAs. In fact, of This includes 125 megawatts of In addition, teams are scored for making our total U.S. electricity consumption, wind energy in Texas and another at least one formal presentation for 54% is directly attributable to our 125 megawatts in Oklahoma. renewable energy programs. the internal energy network, holding In 2020, we also initiated a project to an energy Kaizen or assessment, Owens Corning’s install a solar farm of 854 solar panels implementing capital projects, sharing commitment to energy at our IPP (isotactic polypropylene) best practices across the network, efficiency extends to our Roofing Components plant in India. communicating internally and externally, own workplace — our This project will generate 5% of the and completing over 24 hours of energy world headquarters in plant’s total required power, meeting training. Teams also receive points for Toledo, Ohio, U.S., earned ENERGY local government regulations. The participating in site energy meetings, STAR® recognition from the U.S. project was completed in January 2021, Kaizen events at another facility, and Environmental Protection Agency for following delays due to the pandemic. global energy network conference calls. 2020. Owens Corning also participates Winning teams are given cash awards Green Power Partnership in the ENERGY STAR Industrial as well as recognition. Plant program, which helps U.S. Owens Corning joined the Green manufacturers improve their facilities’ Power Partnership in 2020, which was energy performance while sharing best established by the U.S. Environmental practices with their peers.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Energy Efficiency| 145 The Better Plants Challenge Given the amount of energy OPTIMIZING CHILLERS needed to melt and refine In addition to glass, it stands to reason using energy FOR ENERGY SAVINGS that Owens Corning would baseline seek out ways to increase our energy efficiency wherever possible. In guidelines 2020, we took a close look at the chilled water systems in three of our set by U.S. Department of Energy’s plants: Amarillo, Texas, U.S.; Jackson, Tennessee, U.S.; and Taloja, India. Better Plants Program, Owens Corning As we examined our operations in those places, we’ve found several moved from a Partner in the program opportunities that will help us operate more efficiently going forward. to a Challenge Partner in 2020. In the Challenge level, companies make Working with a vendor, we performed on-site energy assessments long-term commitments to energy at these three facilities, and used the insights gained from them to conservation. implement four optimization algorithms on our chillers. Based on process requirements and outdoor air temperature, the algorithms will We have committed to achieving a 12% continuously adjust equipment sequences and key temperature setpoints. improvement in our energy efficiency in This will help ensure ideal system efficiency while maintaining cooling our U.S. operations by 2025 (compared requirements at the lowest total kilowatts per ton. to 2018), and we will openly share our energy performance data and energy Through these efforts, we expect to see cumulative energy savings of over efficiency strategies. 9.4 million kWh by the end of 2021.
Energy Conservation and Savings
Since 2006, Owens Corning has implemented over 1,200 energy-use efficiency and reduction projects in our facilities around the world. The result has been a reduction in estimated usage by more than 1.42 million MWh. These projects include lighting retrofits, compressed air optimization, cooling tower upgrades, pump optimizations, solar hot water tanks, fuel switching, process optimizations, and biomass conversions. In 2020, we implemented 31 projects, generating annual energy savings of over 43,000 MWh and reducing greenhouse gas emissions by nearly 15,000 MT per year.
2020 Energy Conservation Projects
MT CO e MWh ANNUAL INVESTMENT NUMBER OF 2 PAYBACK PROJECT DESCRIPTION OF ACTIVITY SAVINGS SAVINGS SAVINGS REQUIRED PROJECTS PERIOD LIFETIME PER YEAR PER YEAR (USD) (USD) Efficient lighting projects 4 1,392 2,739 $151,171 $353,980 1-3 years 16-20 years
Compressed air efficiency projects 3 696 1,358 $139,715 $233,602 1-3 years 11-20 years Energy efficiency projects of various types including pump Varies by 5 843 1,653 $112,045 $157,497 1-3 years upgrades, motor upgrades, and project other infrastructure Projects impacting our processes, resulting in energy efficiency and operational improvements, Varies by 15 9,872 32,405 $938,014 $1,599,288 1-3 years including new metering systems, project right-sizing systems, and system automation and optimization Process heat and heat recovery 2 1,984 4,583 $170,205 $224,997 1-3 years 11-20 years projects HVAC efficiency projects 2 173 396 $40,129 $71,020 1-3 years 11-20 years
TOTAL 31 14,961 43,135 $1,551,279 $2,640,384
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Energy Efficiency| 146 SPEAKING OF SUSTAINABILITY
Brad Casemier In his 37 years at Owens Corning, Brad Casemier has made his name as a staunch advocate for the conservation of energy and water. As the maintenance capital engineering leader at the Kansas City, Kansas, U.S., plant (where he has worked for the past 19 years), Brad has led a number of initiatives that have gone a long way toward helping Owens Corning reduce our environmental footprint. Given his experience, he recognizes the need to keep long-term sustainability goals in mind. Brad shares his insights here.
On focusing on long-term goals while I encourage people to call their shift leader, shift mechanic, addressing day-to-day issues or electrician and take care of an issue right away. You don’t need my permission to fix an energy issue. It’s kind of like If we don’t have energy goals or water goals or general what we’ve done with safety. Everybody can deal with a safety sustainability goals, we’re going to be focused on the day- issue, not just salaried employees or maintenance leadership. to-day issues and not necessarily looking at the long-term I think empowering people to deal with an energy or waste focus. Owens Corning is a very energy-intensive company. situation is a big deal. We have huge furnaces, lots of compressed air usage, and big facilities that we heat. So, there’s a large amount of On the value sustainability brings to the energy and the potential for waste is huge if you’re not paying community attention. A great thing that Owens Corning has done is we’ve devoted a certain amount of capital every year to energy and We’re interviewing a lot of Kansas City people now as sustainability. A lot of us have gotten the low-hanging fruit in we’re expanding our plant and our operations, and one of our plants and made huge improvements that way. So now the things that they are excited about is our work in glass it’s going to take more resources and more attention to take recycling. All the glass in the Kansas City area right now us to the next level. But I still think just with making people gets ground up and brought here and we make insulation aware and getting people focused and interested in saving out of it. And it’s interesting to me that so many people we’re energy — keeping that in the forefront — in the plants and in interviewing — mechanics, electricians, maintenance leaders corporate, we’ll be able to hit those goals. — have gone on our website and are excited by sustainability and the things we’re doing. That’s really cool, and the more On the role all employees can play we can do about that, the more we can advertise that, the better off we’ll be. By far my favorite thing to do is focus on energy and water savings. I do get distracted with my normal job, but I’m always looking for energy-saving projects here in our plant and getting people involved and enthused about it. One Brad Casemier thing about that awareness, you also need to have action. Maintenance Leader, Insulation - ISB Division, Kansas City, Kansas, U.S.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Energy Efficiency| 147 ENERGY EFFICIENCY & SOURCING PERFORMANCE Our commitment to reducing energy use and sourcing intelligently runs deep — and it shows in our results.
Energy Consumption
In 2020, Owens Corning decreased its overall consumption of direct energy — including the fuel usage in operation — by 8% from 2019. We reduced consumption of indirect energy, which includes the use of electricity, steam, and district heating, by 5%.
Direct Energy (MWh) Indirect Energy (MWh)
2010 6,706,322 3,135,099 9,841,421
2011 7,181,629 3,319,631 10,501,260
2012 6,870,257 3,274,574 10,144,831
2013 7,080,924 3,395,868 10,476,792
2014 6,890,453 3,370,436 10,260,888
2015 6,696,091 3,310,172 10,006,263
2016 6,729,336 3,304,238 10,033,574
2017 7,034,161 3,413,333 10,447,494
2018 7,163,526 3,558,983 10,722,509
2019 6,977,699 3,301,311 10,279,010
2020 6,419,626 3,130,768 9,550,394
Energy usage is correlated to production.
Photo submitted by: Josh Strake | Granville, Ohio, U.S. Zaleski State Forest, Ohio, U.S.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Energy Efficiency| 148 Energy Intensity
Weighted-average intensity measurement refers to energy used relative to a given economic output (in this case, metric tons of product produced). Overall, our reduction can be attributed to the conservation measures we have taken to significantly reduce energy consumption and improve plant efficiency. The inclusion of our wind PPA in our calculation improves the percentage of renewable energy we use, which has a lower factor when we calculate primary energy. In addition, we reduced the weighted- average intensity of our consumed energy by 21% from the 2010 baseline. We reduced our primary energy weighted-average intensity 29% from 2010, surpassing our long-term goal of reducing by 20% by 2020.
2020 Goal Primary Energy Footprint Consumed Energy Primary Energy Weighted- Consumed Energy Weighted- ― 2020 Goal Average Intensity Percentage Average Intensity Percentage 12 120
10 100 INTENSITY PERCENTAGE
8 80
6 60
(IN MILLIONS) (IN 4 40 MEGAWATT HOURS MEGAWATT
2 20
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Consumed Energy (MWh 9.8 10.5 10.1 10.5 10.3 10.0 10.0 10.4 10.7 10.3 9.6 in millions) Primary Energy Weighted-Average 5.24 5.25 5.07 4.94 4.80 4.57 4.42 3.93 3.89 3.76 3.72 Intensity (MWh/MT of product produced) Primary Energy Weighted-Average 100 100 97 94 92 87 84 75 74 72 71 Intensity Percentage Consumed Energy Weighted-Average 3.44 3.46 3.29 3.17 3.07 2.93 2.89 2.77 2.83 2.78 2.73 Intensity (MWh/MT of product produced) Consumed Energy Weighted-Average 100 101 96 92 89 85 84 81 82 81 79 Intensity Percentage
Indirect Energy — Electricity 2010 Indirect Energy — Electricity 2020 Indirect Energy — Electricity
In 2020, approximately 51% of our electricity came from renewable sources, which represents an excellent step toward our 2030 goal. Non-Renewable Non-Renewable Electricity 82% Electricity 49% Renewable Renewable Electricity 18% Electricity 51%
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Energy Efficiency| 149 As we work toward our 2030 GOING energy goals, we are moving away from using an intensity FORWARD metric to measure primary energy. Improvements we make to our energy intensity will be coupled with initiatives that facilitate our switch to 100% renewable electricity. In other words, we are not only working to use less energy, but we are also working to change the kind of energy we’re using.
For example, some of our glass melters are powered by natural gas or coke. Continuing to invest in technology to convert these machines to electric power will be a component in our ongoing renewable energy strategies. Meanwhile, sourcing 100% renewable electricity by 2030 will be a step toward using 100% renewable energy, and this will be essential as we seek to achieve our science-based target of a 50% absolute reduction in our Scope 1 and Scope 2 greenhouse gas emissions within the same time frame.
Photo submitted by: Micki Vanderpool | Rockford, Illinois, U.S. Multnomah Falls Columbia River Gorge, Corbett, Oregon, U.S.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Energy Efficiency| 150 COMBATING CLIMATE CHANGE
In this chapter: 2030 GOALS STRATEGY & APPROACH INITIATIVES PERFORMANCE GOING FORWARD
The science regarding climate change There are three categories of greenhouse We’ve implemented a wide range of is compelling: Temperatures around gas emissions: initiatives to reduce our Scope 1 and the world are rising to dangerous ■ Scope 1. All direct emissions from Scope 2 emissions, and more plans levels, and human activity — especially our own manufacturing or operations. are in the works. In addition, we are the burning of fossil fuels — is harming continuing to collaborate with our the health of our planet. Reversing ■ Scope 2. Indirect emissions from suppliers to reduce Scope 3 emissions. this trend is crucial, and it requires a generation of purchased energy. concerted effort at every level, from ■ Scope 3. Other indirect emissions, individuals to corporations. Owens * HCFC emissions are optionally included in Scope such as those from our supply chain. 1 emissions, in addition to the Kyoto gases, and Corning recognizes this, and we take are outlined in the Appendix. our role in the fight against climate change seriously.
We follow the World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD) GHG protocol to account for Scope 1, 2, and 3 emissions.*
Our Scope 1 and Scope 2 Science-Based Target for greenhouse gas emissions aligns with stringent Photo submitted by: Frank O’Brien-Bernini | Granville, Ohio, U.S. standards set by the IPCC, designed to limit Remains of the Ohio canals. temperature increases to 1.5° C.
Our efforts to combat climate change align with the following UN SDGs: Sustainability Materiality Definition: Owens Corning understands the importance of climate action, and we take our role in the fight against climate change seriously. We have embraced a Science-Based Target for Greenhouse Gas Emissions in line with the most stringent standard, designed to limit global warming to 1.5 degrees Celsius. We also have a target to reduce our Scope 3 emissions, representing emissions from our supply chain.
The scope 1 and scope 2 data in this chapter were independently assured to a high level by SCS Global Services. For more information on the assurance process see About the Report, and for our verification statement please see Appendix F.
For the data in this section, baseline adjustments were made following the World Resources Institute (WRI) protocols. Read more on page 288 in About the Report.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Combating Climate Change | 151 2030 GOAL FOR COMBATING CLIMATE CHANGE
By 2030: 50% reduction in absolute Scope 1 and Scope 2 greenhouse gas emissions from 2018 baseline.
improvement Absolute greenhouse 14% from base year gas emissions (metric tons of CO2e) 3,337,667 CO2e 3,685,345 3,876,970 STRATEGY AND APPROACH The fight against climate 2018 2019 2020 2030 GOAL BASE YEAR 50% REDUCTION change is a fight for our very survival as a planet, Owens Corning has reduced absolute GHG emissions by 14% from the and we are proud to be a 2018 base year, in part due to efforts related to our renewable energy strategy as well as energy efficiency and process improvements. part of it.
° Until recently, In February 2020, Owens Corning issued its most 1.5 CELSIUS: our goals for recent Climate Change Statement, which reaffirms A GREATER DEGREE the reduction our stance that human activity is having a real of greenhouse and dramatic impact on our global climate. In the OF SUSTAINABILITY gases were statement, we acknowledge the need to reduce designed to limit energy use, water use, and greenhouse gas emissions global warming to less than 2° C above pre-industrial as part of our efforts to combat climate change. levels, consistent with our commitment to the Paris We also recognize the widespread support these Agreement of 2015. Then in 2018, the Intergovernmental scientific findings have received from businesses and Panel on Climate Change (IPCC) issued a follow-up governments around the world. report that tightened the standard for acceptable GHG Our sustainability leadership team collaborates with emissions. To avoid the worst impacts of climate internal and external stakeholders to identify project change, the panel now urges that temperature increases opportunities, create large-scale footprint reduction should be held below 1.5° C. programs, and enable supplier initiatives. Through this That half of a degree doesn’t sound like a lot, but engagement, we advance our efforts to reduce GHG according to the Science-Based Targets Initiative emissions, helping ensure a sustainable business website, this change in standards could mean 11 million model that benefits all our stakeholders. fewer people will be exposed to extreme heat, 61 million We use a software application from Schneider Electric, fewer people will experience drought, and 10 million EcoStruxure™ Resource Advisor, to track environmental fewer people will suffer as a result of rising sea levels. data at the plant level. The data are normalized on a Our 2030 goal to reduce absolute GHG emissions for unit of production basis to evaluate variations and Scope 1 and Scope 2 by 50% has been approved by the potential areas of risk. If risks are identified, mitigation Science-Based Target Initiative as meeting the stricter plans are developed. The plant-level environmental standard, in line with the 1.5° C limit. data are then aggregated by business unit and at the corporate level. Footprint files are provided to every plant, business unit, and corporate organization, so they can make comparisons and track against their goals.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Combating Climate Change | 152 Our roadmap for emission reductions as regions that do not currently have Building Alliance (EEBA). Owens is based on the following short-term prices or trading schemes put prices on Corning employees also participate and long-term strategies: carbon. We bracket this analysis, with on committees and working groups $10/metric ton on the low end and a high in these organizations. Short-term strategies of $100/metric ton. ■ ■ Continue converting the blowing Policymakers. We support agent used in manufacturing our As an example, we have used the internal regulations aimed at the elimination XPS foam products to reduce GHG carbon price to estimate the theoretical of GHG emissions, and we engage emissions. or potential cost savings associated with extensively with policymakers to our 2020 goal for GHG emissions, which that end. Our government affairs ■ Collaborate with our suppliers to would reduce our weighted-average team coordinates these efforts and reduce Scope 3 emissions. intensity by 50%. Here’s how it works: ensures that activities are aligned Long-term strategies ■ Estimate the difference in metric with our climate change policy. Our corporate affairs and sustainability ■ Consider additional renewable tons of CO2e from year-end 2019 and departments regularly review energy opportunities on a global year-end 2020. proposed communications and basis, including longer-term ■ Multiply that amount by activities. agreements. $100/metric tons. ■ Non-governmental organizations ■ Switch to 100% renewable ■ The result is the high-end estimate of (NGOs). We conduct legal reviews electricity and improve energy cost savings of emissions reduction if of all external communications, efficiency by 20% by 2030. a carbon tax were implemented. including letters, testimonies, and ■ Drive innovation within our By using the range of emissions reduction activities with outside advocates research and development costs above ($10 to $100/metric ton), or NGOs. Owens Corning actively portfolio to enable conversion we can evaluate more options as we partners with organizations that from fuel to carbon neutral and formulate plans to reach our GHG drive forward-thinking programs renewable energy to power our reduction goals. on a range of topics, including processes. advanced standards for energy We have also been able to quantify our efficiency and the durability ■ Ensure systematic knowledge current total risk in the event of an efficient, of buildings. This includes our sharing across our network of economy-wide carbon tax, and we can see membership in the Carbon facilities. how dramatically we have reduced that Leadership Forum, which speaks Understanding the Cost of Emissions risk since 2007, our peak GHG emissions to our increased commitment to year. This also allows us to value our future addressing embodied carbon in Like many companies around the forecasted emissions reductions as we building products and promoting world, Owens Corning has established work toward our 2030 goals. whole-building life cycle an internal price for carbon emissions. assessment and impact reduction. Doing so helps us make smart Partnering to Address Climate Change decisions about our GHG reduction As part of our work to combat climate initiatives, as it enables us to frame change and advance sustainability, we challenges and opportunities in increasingly engage with external parties monetary terms, which are often more with which we can leverage our expertise broadly understood than the concept and our products. These partnerships of tons of emissions. include the following: In implementing an internal carbon ■ Trade groups. By partnering with price, we consider Scope 1, 2, and trade organizations, we can expand 3 emissions — the total impact of our reach to consumers and industry our operations and our supply chain. professionals, which helps promote We have both internal and externally energy efficiency and renewable energy published reduction goals, which are practices. For a list of the trade groups aligned to drive strategy and action. we engage with, see Appendix D. We do not have an internal carbon tax or carbon charge allocated to our We participate at the board level businesses. in many strategically relevant organizations, such as the Residential Quantifying these theoretical or Energy Services Network (RESNET), potential added costs provides insight Building Performance Institute (BPI), as we plan scenarios and make National Association of Home Builders business decisions. This is beneficial (NAHB), and Energy & Environmental
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Combating Climate Change | 153 CLIMATE CHANGE Power Purchase Agreements To segregate market-based and INITIATIVES location-based emissions, our Our all-encompassing calculations are based on the latest approach listed in the World Resources approach to combating Institute (WRI) and the World Business climate change can be Council for Sustainable Development’s Through our PPAs, seen at every level of (WBCSD) GHG Protocol Corporate Owens Corning retired our business. Accounting and Reporting Standard 1,023,632 renewable and GHG Protocol Scope 2 Guidance energy credits (RECs) for segregation. for a total of 437,325 Given its importance in our metric tons of avoided sustainability efforts, we include climate In support of our efforts to reduce CO2e in 2020. change in our risk register, which our GHG emissions, Owens Corning enables our business units and risk has expanded its renewable energy committee to facilitate strategic and portfolio. The following are a few operational planning processes as we of our renewable energy initiatives. Each REC represents a megawatt hour mitigate potential sustainability issues. For more information about our of energy from renewable sources. commitment to renewable energy, We also include energy in our risk Owens Corning applies our RECs to the please see the Energy Efficiency & register, as accelerating improvements production of a portfolio of insulation Sourcing Renewable Energy chapter. to energy efficiency and reducing products, as well as shingles produced ■ our overall energy use are central In 2020, we sourced 278,400 MWh at one of our facilities. These products to our sustainability goals, and of electricity through guarantees have been certified in accordance effectively transitioning to renewable of origin for renewable electricity with SCS Global Services’ certification energy sources will significantly across 10 of our European sites, protocol as made with 100% wind- reduce our GHG emissions. We seek which translated to 61,487 metric powered electricity, and they provide a tons of avoided CO e. opportunities to expand our portfolio 2 range of benefits for greener buildings. of renewable energy sources and we ■ We power our Gastonia, North More information about these products have designated a cross-functional Carolina, U.S., facility with 100% can be found in the Product Innovation team of internal and external subject nuclear electricity, which generates & Stewardship chapter of this report. matter experts to evaluate all potential no electric GHG emissions. opportunities, including both on-site renewable programs and larger off-site ■ The PPAs Owens Corning signed installations. This work is described in 2015 enabled new wind capacity in detail in the Energy Efficiency & in Texas and Oklahoma. Both wind Sourcing Renewable Energy chapter. farms came online in late 2016 and have the potential to generate Green Power Partnership 1.1 million megawatt hours of In 2020, Owens Corning joined the U.S. electricity per year. Environmental Protection Agency’s Green Power Partnership, a program designed to help organizations procure electricity generated from renewable sources. In entering into this partnership, we are also demonstrating our ongoing commitment to green power solutions which ultimately help to reduce our GHG emissions.
Photo submitted by: Brad Mentzer | Rockford, Illinois, U.S. Sunset in Fort Myers Beach, Florida, U.S.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Combating Climate Change | 154 SPEAKING OF SUSTAINABILITY
Žydrūnė Kukenienė Having been with the Paroc facility in Vilnius, Lithuania, for 24 years, Zydrune Kukeniene’s first work in sustainability came in 2008, when she was responsible for calculating
direct CO2 emissions. These efforts inspired her to learn more about the importance of combating climate change and led her to discover books such as Al Gore’s An Inconvenient Truth. Now that Paroc is part of Owens Corning, Zydrune continues her work as a senior environmental specialist. Here, she shares her insights with us as we work to achieve our 2030 sustainability goals.
On the need for our industry to reduce On three priorities for reducing GHG greenhouse gases We need to think globally, because impact of greenhouse I think greenhouse gas reduction is important, especially for gases is not a local problem. Every industry in every country the building materials industry, because our industry has a should take care about the greenhouse gases if we want to big impact — we have a lot of energy-consuming processes. reduce its global impact. It’s very important that everybody in At the same time, we understand the market’s need to have this company, every department, every function is included a sustainable product with lower carbon footprint. I think that into achieving greenhouse reduction goals. The second, in every company that wants to exist in the future should care my opinion, is a reduction of energy consumption, because about sustainability, and reducing greenhouse gases is one of energy production creates most of the greenhouse gases. the most important areas where this can happen. And of course, the third thing, in my opinion, is we should
not forget about links between emissions and the CO2 On the importance of gathering data that is absorbed by trees. We reduce what we can, and we can also increase our green areas, plant a tree, and get a My daily tasks help me with deeply understanding the better relationship between emitted and absorbed CO or reasons of sources of greenhouse emissions, because I 2 greenhouse gases. need to calculate direct emissions and also know a lot of about indirect emissions. When you know exact information, it’s easy to understand why, how much, and so on. And when you have this information, you can see the areas where you can improve. At the same time, when we have ongoing programs or projects, I see how much they impacted Žydrūnė Kukenienė greenhouse emissions in the numbers. Environmental Manager, Insulation Europe, Vilnius, Lithuania. Photo taken was taken on her daily walk with her son, in front of her house.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Combating Climate Change | 155 Owens Corning has calculated weighted-average intensity, which measures our CLIMATE CHANGE performance relative to an economic output such as revenue or production, to track progress toward our 2020 goal, using 2010 data as a baseline. The goal encompasses PERFORMANCE Scopes 1 and 2, as well as Scope 3 business travel. We raised our 2020 GHG reduction We have good reason goal in 2015 — from 20% to 50% — after achieving a 34% reduction in the weighted- to be proud of our average intensity of our emissions in 2014. achievements — and In 2020, we achieved a 53% reduction in weighted-average intensity from our base year of we’re continuing to build 2010, surpassing our revised target. We have been able to achieve significant reductions on them every day. over this timeframe, thanks to energy efficiency efforts throughout our operations and formulation improvements in the blowing agent used in our XPS foam insulation.
Emissions Performance Across Owens In 2020, we used the 2020 V2 eGRID Progress toward our GHG emissions Corning Operations factors to measure emissions from goals is made possible through several electricity for U.S. locations, the AIB key programs, including the following: Most of our Scope 1 emissions are European Residual Mix Factors for ■ attributable to the blowing agent used Implementation of energy-efficiency EU locations, and the latest IPCC/ in our XPS foam production process, as initiatives across our enterprise. IEA factors for other international well as fossil fuel combustion across locations. It should be noted that for ■ Evaluation of combined heat the company. This is why innovations approximately 42% of our facilities, and power. like our new FOAMULAR® NGXTM are we calculate emissions using critical to our strategy. It should also be ■ Heat recovery. supplier/utility emissions factors, noted that changes in production output which means we can make these ■ Expansion of renewable sources to could cause increases or decreases in calculations more accurately than replace grid energy. our emissions, given the shifts in the through standard regional estimates. use of raw materials and energy. ■ In these cases, suppliers provide Blowing agent conversion. Electricity from utility providers is the information about the specific power We are committed to achieving our major source of our market-based sources used. These calculations may goals by making significant changes to Scope 2 emissions. We use monthly reflect the sources that make up the our operations and driving change in invoices to capture end-to-end grid supply after renewable energy has the electricity grid. We do not purchase consumption at an enterprise level. been sold to specific users, meaning carbon offsets as a strategy to reduce As required through the GHG Protocol that other users are charged for the our manufacturing footprint, as we Scope 2 Guidance, we calculate our residual mix of sources. prefer Scope 1 and 2 direct actions to GHG emissions by tracking: accomplish these goals. ■ Energy attribute certificates (including renewable energy credits). ■ Contracts. 30% ■ Supplier/utility emission factors. ABSOLUTE REDUCTION IN SCOPE 1 EMISSIONS FROM 2010 TO 2020 ■ Residual mix (where appropriate).
CO e 35% 2 ABSOLUTE REDUCTION IN SCOPE 1 AND MARKET-BASED SCOPE 2 EMISSIONS SINCE 2010 47% ABSOLUTE REDUCTION IN MARKET-BASED SCOPE 2 EMISSIONS FROM 2010 TO 2020
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Combating Climate Change | 156 We do however, on occasion, purchase For detailed examples of our 2020 offsets to achieve customer-inspired emission reduction projects, please ABSOLUTE GHG EMISSIONS: embodied carbon reductions beyond see our response to question C7.9 in 2020 COMPARED TO 2010 what is possible via our direct Owens Corning’s CDP Climate Change (METRIC TONS OF CO2e) reductions – for example, to attain 2021 Report, which will be published carbon neutral certified products. In later this year. these cases, like for our new PAROC® TM Discussion of our Scope 3 goal and Natura product, we select offsets progress can be found in the Supply 3,502,317 1,641,442 from projects that are within the 2010 SCOPE 1 2010 SCOPE 2* Chain Sustainability chapter. countries we operate or that align with our business strategies. Per our verified SBT goal, we are committed to our continued reduction in our GHG Owens Corning has emissions globally. made CDP’s Climate A List five years in a row. 2,465,499 872,168 Further details on renewable energy 2020 SCOPE 1 2020 SCOPE 2 and other emissions reduction The award recognizes our company for initiatives, including green buildings our corporate sustainability leadership, and energy-efficient products, have including our actions to cut carbon *Scope 2 is market-based. been discussed in our Energy Efficiency emissions and reduce climate risks. & Sourcing Renewable Energy chapter.
2020 Goal Greenhouse Gases for Our Corporate Goal
Greenhouse Gas Emissions Weighted-Average Intensity Percentage Original 2020 Goal ― 2020 Goal (revised)
6 120 e 2
5 100 INTENSITY PERCENTAGE
4 80
3 60 (IN MILLIONS) (IN 2 40 ABSOLUTE METRIC TONS C0 TONS METRIC ABSOLUTE 1 20
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (BASELINE)
Absolute Metric Tons 5,156,054 4,970,095 4,715,252 4,642,113 4,571,446 4,391,175 4,408,483 3,925,993 3,890,678 3,699,276 3,341,037
Weighted-Average 100 86 80 72 71 68 69 56 52 51 47 Intensity Percentage Weighted-Average Intensity (MT/MT of 2.1491 1.8527 1.7210 1.5487 1.5316 1.4619 1.4735 1.2034 1.1234 1.0939 1.0131 product produced)
Note: The 2020 goal encompasses Scopes 1, 2, and Scope 3 business travel.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Combating Climate Change | 157 In the past, Owens Corning has set GOING goals for emissions reduction using weighted-average intensity targets FORWARD as a way to smooth out variations caused by market cycles. For our new long-term goal, we will track progress in reducing absolute emissions in line with our science-based targets.
Our efforts to combat climate change encompass all our operations, including Scopes 1, 2, and 3 emissions. Doing so will require a great deal of collaboration, both internally among our departments and externally throughout our entire value chain. It’s a tremendously ambitious undertaking, but we recognize that the need to combat climate change has never been more urgent. We will never lose sight of the fact that lives are in the balance, and the decisions we make today will have long-lasting ramifications.
Photo submitted by: Frank O’Brien-Bernini | Granville, Ohio, U.S. Living interior wall at LM Wind Power in the Netherlands.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Combating Climate Change | 158 AIR QUALITY MANAGEMENT
In this chapter: 2030 GOALS STRATEGY & APPROACH INITIATIVES PERFORMANCE GOING FORWARD
As a manufacturer, Owens Corning recognizes the role we must play in ensuring that the air we all breathe is as clean as possible. In addition to greenhouse gas emissions highlighted in the previous chapter, we have strategies in place to reduce a range of air emissions, and in doing so we are working to reduce our negative impact on air quality in the areas where we operate.
Photos submitted by: Olivia Kasle | Toledo, Ohio, U.S. By improving our processes, we are working to Chimney Rock in Lake Lure, North Carolina, U.S. reduce emissions — and help people breathe easier.
Our air quality management efforts align with the following UN SDGs: Sustainability Materiality Definition: As a manufacturer, we have the opportunity to improve our processes and in doing so reduce our impact on air quality in areas where we operate. The emissions data in the chapter were independently assured to a moderate level by SCS Global Services. For more information on the assurance process see About the Report, and for our verification statement please see Appendix F. For the data in this section, baseline adjustments were made following the World Resources Institute (WRI) protocols. Read more on page 288 in About the Report.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Air Quality Management | 159 2030 GOALS FOR AIR QUALITY MANAGEMENT
By 2030: Reduce the aggregate intensity of our emissions of volatile organic compounds (VOCs) and fine particulate matter (PM2.5) by 50%.
Although both VOCs and fine For 2030, we have also set separate STRATEGY particulate matter are local issues that goals for reduction of the following receive attention around the world, types of emissions: AND APPROACH regulations have not always kept Volatile organic compounds (VOCs) At Owens Corning, pace with the threat these emissions are certain carbon compounds the reduction of air pose. Therefore, our approach to air that evaporate into the air at room quality management goes beyond emissions will be temperature. They are found in compliance. By setting goals that primarily the result manufacturing processes and are used push innovation and development in in many types of products, including of innovation, both both our products and our processes, building materials. in our products and we believe we can lead the way and our processes. exceed air quality standards in all the Fine particulate matter (PM2.5) refers places we potentially impact, reducing to tiny, inhalable particles that can be our environmental footprint while released during chemical reactions enhancing product performance. and mechanical processes, including those that occur in the manufacturing Our emissions footprint reduction process. The number denotes the size goals for 2020 included both of the particulate matter, in this case greenhouse gas and other emissions. 2.5 microns. For comparison, a grain of Our commitment to reducing sand is about 90 microns. greenhouse gas emissions, and our progress in doing so, is outlined in the To ensure consistency of testing for air previous chapter, Combating Climate and PM2.5 emissions, we have experts Change. who oversee testing at our facilities, and then review and verify the results and findings. In addition, our experts Photo submitted by: partner with our business units and Juha Nurminen | Helsinki, Finland plants to ensure that we understand Near the Owens Corning Paroc plant in Parainen, Finland. the impact of potential changes to our processes and plan accordingly for future events.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Air Quality Management | 160 AIR QUALITY MANAGEMENT INITIATIVES Throughout our operations, we’re looking at ways to reduce emissions and ensure cleaner air for everyone.
Photo submitted by: As part of Owens Corning’s commitment to exceeding regulatory Julie Childers | Granville, Ohio, U.S. compliance, our sustainability initiatives push innovation and In flight to North Carolina, U.S. development to ensure reduced emissions throughout our operations.
To address the growing need for cleaner air, Owens Corning has established a range of initiatives designed to reduce particulates, stemming from earlier innovations made in the development of our EcoTouch® insulation product. By shifting to a starch-based, formaldehyde-free binder, we significantly reduced the emission of VOCs and PM2.5 since 2010. As we work on the next generation of binder for our insulation process, we expect to make similarly dramatic reductions.
With our 2030 goal to guide us, we will be considering particulates and VOCs in the development of new innovations. We are also investigating redesigning or reengineering processes, as well as further enhancing the controls we have in place.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Air Quality Management | 161 SPEAKING OF SUSTAINABILITY
Christy Darst Prior to joining Owens Corning full-time as an environmental technical leader in our Insulation business, Christy Darst worked with us as a contractor. She was so impressed with our people, our products, and our commitment to sustainability that she actively sought out an opportunity within our company. Over the last five years, Christy has offered her expertise as we have worked to quantify our air emissions so that we can have a true sense of our overall footprint — and how we can reduce it.
On why our air quality aspirations are important pollution out of the gate to begin with? There are ways to do that, and I think we’ve really started on that journey, and It’s critical for Owens Corning to have air quality goals for that’s where we’re going to see a lot of impact and make a big several reasons. First and foremost, I think it’s for broader difference long-term. economic and social justice. We’re a good corporate citizen. Our products help make the world a better place. Insulation On the mindset that will help us achieve our helps reduce energy usage and greenhouse gases. But the aspirations flip side of that is that in the manufacturing process, there are environmental impacts. We do have air emissions. I think that air emissions seem hard for people to wrap We have particulate emissions. We have volatile organic their minds around. But at the end of the day, it’s all about compound emissions. And we don’t want the good work taking steps. It’s not going to be one big solution for us. It’s that we’re doing to be counterbalanced by that. We really going to be a series of small solutions. And we’re constantly want to do the right thing and to be able to reduce that working at how we can improve everything we do, including footprint, so we’re a good neighbor to the people who live our environmental footprint. And little by little, that’s how near our plants and to the communities where we all live. we make progress. The important thing is that we’re talking about it. We’ve challenged ourselves. We’re starting to make it On how we can achieve our air quality goals part of the way we work and that’s how you change things — when it becomes part of your standard work and part of the Primarily, we need to challenge ourselves. Thankfully, Owens vocabulary that you use every day. That’s when the change is Corning is chocked full of incredibly talented people, and we here to stay. need to harness their talents to innovate. I think the biggest way we’re going to move forward on air emissions is not so much on the back end of it with pollution control devices, Christy Darst although that certainly helps. It’s going to be on the innovation Environmental Technical Leader, Insulation, Granville, Ohio, U.S. side: How can we design so that we don’t generate as much Photo taken outside Saint Basil’s Cathedral in Red Square, Moscow, Russia.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Air Quality Management | 162 AIR QUALITY MANAGEMENT PERFORMANCE We have made great progress in reducing air emissions across our operations, but there is still much work to be done.
One of our 2020 goals included the reduction of toxic air emissions weighted-average intensity by 75% compared to our 2010 baseline. In 2020, we achieved a 44% absolute reduction in toxic air emissions and a 56% reduction in toxic air weighted-average intensity. Another 2020 goal was to achieve a 15% reduction in the weighted-average intensity of fine particulate emissions (PM2.5). By the end of 2020, we had reduced our weighted-average intensity of PM2.5 by 39% from the 2010 baseline. This progress will serve as a platform upon which we can build our accomplishments toward our 2030 goals. Photo submitted by: Daniel Senic | Portland, Oregon, U.S. Poor air quality in Portland due to wildfires. Toxic Air Emissions Given that we met our original 2020 goal for toxic air emissions (TAE) early in the goal cycle, we announced a new goal for TAE reduction in 2016: a 75% reduction in TAE weighted-average intensity by 2020 from the 2010 baseline. In the current reporting cycle, we achieved a 44% absolute reduction in TAE and a 56% reduction in toxic air weighted-average intensity. Recent acquisitions and changes in product mixes late in the goal cycle contributed to not meeting this second goal.
2020 Goal Toxic Air Emissions Footprint Toxic Air Emissions Weighted-Average Intensity Percentage Original 2020 Goal 2020 Goal (revised) 1400 140
1200 120 INTENSITY PERCENTAGE 1000 100
800 80
600 60
400 40 ABSOLUTE TONS ABSOLUTE METRIC
200 20
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Absolute Metric Tons 1,245 898 815 819 759 746 730 797 720 732 703 Weighted-Average 100 68 58 54 49 48 48 48 41 46 44 Intensity Percentage Weighted-Average Intensity (MT/MT of 0.0009 0.0006 0.0005 0.0005 0.0005 0.0004 0.0004 0.0004 0.0004 0.0004 0.0004 product produced)
Owens Corning defines toxic air emissions to include the following: hexavalent chromium, formaldehyde, manganese, polycyclic aromatic compounds, and ammonia.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Air Quality Management | 163 Fine Particulate Matter (PM2.5)
In 2010, we committed to a 15% weighted-average intensity reduction goal for fine particulate matter, PM2.5, by 2020. As mentioned above, our weighted-average intensity percentage reflects a 39% reduction from the 2010 baseline. Much of our progress to date has been driven by the conversion of our residential EcoTouch® insulation. This conversion indicates that the key to further gains will involve capturing the synergies between our product innovations and efficiency improvements to reduce environmental impact.
2020 Goal Fine Particulate Matter (PM2.5) Footprint
Fine Particulate Matter (PM2.5) Weighted-Average Intensity Percentage ― 2020 Goal
3000 120
2500 100 INTENSITY PERCENTAGE
2000 80
1500 60
ABSOLUTE TONS ABSOLUTE METRIC 1000 40
500 20
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Absolute Metric Tons 2,391 2,515 2,569 2,529 2,617 2,461 2,351 2,462 2,295 2,164 2,032 Weighted-Average 100 99 103 94 98 90 80 77 69 66 61 Intensity Percentage Weighted-Average Intensity (MT/MT of 0.0013 0.0013 0.0013 0.0012 0.0012 0.0011 0.0010 0.0010 0.0009 0.0008 0.0008 product produced)
This improvement of 11% is 2030 TARGETS improvement attributable to to equipment operations 11% from base year & PERFORMANCE and maintenance optimization. 0.000000288 50% aggregate intensity reduction in PM 0.000000302 PM 2.5 Emissions Intensity 2.5 emissions (metric tons normalized by 0.000000323 revenue) from 2018 baseline.
2018 2019 2020 2030 GOAL BASE YEAR 50% REDUCTION
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Air Quality Management | 164 NOx & SOx Emissions
As part of our broader sustainability framework, we manage, track, and report against NOx and SOx air emissions requirements. In 2020, we saw a 50% absolute reduction in NOx and a 44% absolute reduction in SOx from 2010 baseline metrics.
The way we measure and control NOx and SOx varies by location and local regulatory requirements. A significant source of these emissions is combustion, and we use combustion-related emissions factors to calculate our footprint where it’s practical. We also perform stack testing in some facilities to directly measure emissions factors, depending on equipment and processes.
We follow industry best practices to control emissions from combustion processes. In addition to routinely inspecting boilers and other types of burners and keeping them tuned, we work to ensure optimal fuel mixtures.
NOx Emissions Footprint NOx Emissions Weighted-Average Intensity Percentage
4000 120
3500 105 INTENSITY PERCENTAGE 3000 90 2500 75 2000 60 1500 45 1000 30 ABSOLUTE TONS ABSOLUTE METRIC 500 15
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Absolute Metric Tons 3,489 3,209 2,554 2,506 2,413 2,481 1,904 2,033 1,881 1,767 1,747 Weighted-Average 100 78 59 47 46 51 31 32 28 28 30 Intensity Percentage Weighted-Average Intensity (MT/MT of 0.0018 0.0014 0.0010 0.0008 0.0008 0.0009 0.0005 0.0006 0.0005 0.0005 0.0005 product produced)
SOx Emissions Footprint SOx Emissions Weighted-Average Intensity Percentage
3500 105 INTENSITY PERCENTAGE 3000 90
2500 75
2000 60
1500 45
1000 30 ABSOLUTE TONS ABSOLUTE METRIC 500 15
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Absolute Metric Tons 3,146 3,032 2,611 3,050 2,738 2,645 2,306 2,381 2,142 1,831 1,764
Weighted-Average 100 88 71 87 73 68 55 54 47 38 39 Intensity Percentage Weighted-Average Intensity (MT/MT of 0.0010 0.0009 0.0007 0.0009 0.0007 0.0007 0.0005 0.0005 0.0005 0.0004 0.0004 product produced)
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Air Quality Management | 165 VOC Emissions
As with NOx and SOx, from 2010 to 2020 we continued to manage, track, and report against VOC air emissions requirements. In 2020, we saw an 11% absolute reduction and a 17% weighted-average intensity reduction in VOC from 2010 baseline metrics.
VOC Emissions Footprint VOC Emissions Weighted-Average Intensity Percentage
3000 120
2500 100 INTENSITY PERCENTAGE
2000 80
1500 60
1000 40 ABSOLUTE TONS ABSOLUTE METRIC 500 20
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Absolute Metric Tons 2,289 2,619 2,236 2,547 2,420 2,246 2,253 2,369 2,338 2,228 2,041
Weighted-Average 100 102 102 108 103 94 95 88 91 85 83 Intensity Percentage Weighted-Average Intensity (MT/MT of 0.0007 0.0007 0.0007 0.0007 0.0007 0.0006 0.0007 0.0006 0.0006 0.0006 0.0006 product produced)
2030 TARGETS & PERFORMANCE 12% from base year 50% aggregate intensity reduction in 0.000000289 VOC emissions (metric tons normalized 0.000000311 0.000000329 VOC Emissions Intensity by revenue) from 2018 baseline.
2018 2019 2020 2030 GOAL BASE YEAR 50% REDUCTION
This improvement of 12% is attributable to equipment upgrades and improved efficiencies.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Air Quality Management | 166 By creating separate goals based GOING on science for volatile organic compounds and fine particulate FORWARD matter — in addition to our GHG emissions goals — Owens Corning is demonstrating our commitment to cleaner air. Most importantly, we are doing our part to preserve the health and safety of people everywhere.
As Owens Corning works to cut the intensity of our emissions of volatile organic compounds and fine particulate matter in half throughout our operations, we will rely on the ingenuity and dedication of our people. While the targets we have set are ambitious, we believe that our ability to develop innovative new products and more efficient processes will help us achieve them.
Photo submitted by: Julie Childers | Granville, Ohio, U.S. In flight to North Carolina, U.S.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Air Quality Management | 167 RESPONSIBLE WATER SOURCING & CONSUMPTION
In this chapter: 2030 GOALS STRATEGY & APPROACH INITIATIVES PERFORMANCE GOING FORWARD
Water is one of the most abundant substances on Earth, yet the high-quality water that sustains life is an increasingly precious resource. So, when Owens Corning sources the water we require for many of our manufacturing processes, we recognize the need to do so wisely, in a way that lessens our impact on water supplies everywhere.
We operate in different regions across the world, some of which are in areas of higher water stress than others. Through reuse, recycling, and efficiency, we strive to consume less water in our operations. We also work to understand where our water use is most impactful, so we can set informed targets for water reduction. We are committed to using water responsibly across all our operations, and it’s central to our sustainability efforts.
Photos submitted by: The scarcity of high-quality water is a very real Olivia Kasle | Toledo, Ohio, U.S. concern, and it will only grow more serious as Higgins Lake, Michigan, U.S. climate change continues to have an impact around the world.
Our efforts to source and consume water Sustainability Materiality Definition: responsibly align with these UN SDGs: We are committed to using water in an intelligent, sustainable way across the company. We operate in a number of different regions across the world, some of which are in areas of higher water stress than others. Through reuse, recycling, and efficiency, we strive to consume less water in our operations. We also must understand where our water use is most impactful, to set informed targets for water reduction. The water data in this chapter were independently assured to a moderate level by SCS Global Services. For more information on the assurance process see About the Report, and for our verification statement please see Appendix F. For the data in this section, baseline adjustments were made following the World Resources Institute (WRI) protocols. Read more on page 234 in About the Report.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Responsible Water | 168 2030 GOALS FOR RESPONSIBLE WATER SOURCING & CONSUMPTION
By 2030, we aim to cut in half the amount we take from local water supplies in places where water is limited in quantity or quality. In addition, we intend to ensure that our other facilities remain at the same water intensity as our base year of 2018, or lower when aggregated.
Owens Corning relies on high-quality In addition to working to reduce our STRATEGY water for many of our manufacturing water consumption throughout our processes. We also recognize that operations, Owens Corning is increasing AND APPROACH increased scarcity and rising costs our reliance on recirculated and recycled As high-quality water impact the people and communities water, which are defined as follows: grows increasingly in the areas where we operate, and ■ Recirculated water refers to pose risks for our operations. That’s scarce, Owens Corning water that is used in a closed-loop why we’re working to minimize our is committed to system in the production of prime water consumption and eliminate the product. This water only exits sourcing and using potential for contamination from the the recirculating system when it water wisely. production, use, and disposal of our evaporates or when the recirculating products. To achieve our objectives, we system is flushed or cleaned. use the following strategies: ■ Recycled water refers to water that ■ Increasing water efficiency. is used in the production of prime ■ Using a sustainability mapping tool product and is then pulled out of a during the development of new and specific production process area, significantly modified products. mechanically and/or chemically Beginning in 2021, we are using the treated, then returned to the same Ecodesign Strategy Wheel in this process or used in a different area process. See page 106 for details. (either production-related or non- production-related). ■ Performing life cycle assessments (LCAs) on our core products. At the site level, we track water withdrawal, water use, water discharge, ■ Conducting product stewardship and recycled and recirculated water reviews of our products. monthly. Most of our withdrawal data come from invoices and meter readings, and are supplemented by calculations based on process knowledge and production levels. All sites are expected to follow our detailed water governance Photo submitted by: Shyamsundar Tiwari | Silvassa, India documentation to ensure standardization Water resevoir in Malegaon, Nashik, India and accuracy.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Responsible Water | 169 We have taken steps to increase Owens Corning WRI describes as a strong proxy for all the recycling and reuse of water at has been a aspects of water risk to a business’s our plants. In several Composites partner of the operations. As this metric takes into manufacturing facilities, process water Department account the supply and demand stress is recycled and used for cooling towers of Energy’s Better Plants Program. In of regional water withdrawal, it provides and landscaping purposes. Since additional to making commitments a more complete understanding of 2010, we have considerably increased to improve energy efficiency, we have water-stressed areas. our water recirculation and recycled also signed up for the Better Plants water percentages in our insulation Challenge Level and have included Using this approach, Owens Corning facilities where processes support waste and water commitments over undertook our ninth annual water risk using recirculated water. As a result, the next ten years. We have pledged to assessment — our third year using we have seen a significant decrease in improve our water withdrawal intensity baseline water stress as our metric. water withdrawal, despite increasing by 15% in our U.S. operations by 2030. We used the findings of this analysis production in these facilities. in conjunction with our sites’ 2020 We consider stakeholder engagement water intake and discharge statistics. Our management strategy enables critical to mitigating any future This assessment informs the us to employ proactive measures conflicts, and we work to establish development of water management that optimize and reduce water positive relationships with the plans to optimize water efficiency at consumption, which decreases communities where we operate. facilities in water-stressed regions intake, treatment, and discharge We proactively engage with local with high water demand. costs. For example, we have worked stakeholders during new builds, and on to significantly increase water an as-needed basis. Our baseline water stress analysis recirculation and recycling at our identified that 25 of our sites that were plants, which reduces the amount Water Risk Assessments active in 2020 were in areas classified of fresh water we must purchase. by WRI as having high or extremely Water-related risks and availability of In doing so, we have helped reduce high baseline water stress. Our supply vary across our geographies, our environmental footprint in the facilities at these 25 sites accounted processes, and product lines. To communities where we operate, while for 23% of our overall water withdrawal minimize the effect of water risk at also benefiting the company financially. in 2020 as well as 27% of our overall our locations, we perform regular Meanwhile, water efficiency programs water discharge in 2020. risk assessments using the World such as leak detection, meter Resources Institute (WRI) Aqueduct Owens Corning is striving to be more installation, and water mapping have Water Risk Atlas. We conduct life cycle conscious of our potential to impact (and lowered operating costs and further assessments (LCAs) to identify the be impacted by) the water conditions reduced our dependence on local or amount of water embodied in each of in our locations around the world. In regional water sources. our products, and we routinely evaluate support of this heightened awareness, We also provide training to create each site’s environmental footprint, we are using context-based targets, employee and stakeholder awareness as well as any changes in processes, addressing both our needs for water and of better water use practices. products, regulatory statuses, or prices. the needs of the communities where we Partnering with stakeholders at all In addition, the results of the annual operate, as we measure progress toward levels — including local levels — helps supplier survey are provided to us, our 2030 goal. including information about whether us continually optimize water usage Read more about our water risk suppliers are setting goals to reduce and reduce consumption and waste. assessments, including an updated water usage. For example, we entered into a supply chain risk assessment, in our partnership with the city of Portland, Since 2018, Owens Corning has CDP Water 2021 Report, which will Oregon, U.S., in 2008, in which we measured its water risk using WRI’s be published later this year on our would maintain bioswales that they baseline water stress metric, which sustainability website. installed on the grounds of our facility there. These bioswales concentrate and direct stormwater runoff while removing debris and pollution. In addition, they create habitats for wildlife and prevent puddles that Our conservation and efficiency efforts have saved attract mosquitos. an estimated 18.2 million cubic meters of water since 2010, and more than $16.3 million in water- related costs.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Responsible Water | 170 Water-Stressed Areas and Context-Based Targets
Owens Corning leverages the World Resource Institute (WRI) Aqueduct Water Risk Atlas to screen our sites for extremely high and high baseline water supply stress, 2030 and 2040 projections for water supply stress changes, and frequency of drought, as well as upstream water quality and other metrics. We combine the tool with internal knowledge in our facilities located in water-stressed areas.
The WRI Aqueduct Water Risk Atlas provides us with a framework to develop our targets and measure our progress. Looking at the 13 indicators they have established, we asked the following questions: ■ Which of these indicators could have a direct impact on our ability to withdraw water? Photo submitted by: Frank O’Brien-Bernini | Granville, Ohio, U.S. ■ Kayaking at Kiser Lake State Park, Ohio (left). Which of these indicators could our water withdrawal directly impact? Kayaking under a railroad overpass on Dillon Lake in Ohio (right). ■ For which of these indicators would decreasing our water withdrawal by 50% directly matter? Based on those questions, we selected seven indicators that have the highest relevance to our operations. The following three indicators are significantly relevant and are emphasized in our internal evaluation and scoring of our facilities. ■ Baseline Water Stress. This indicator compares the water withdrawn to the water available in a given sub-basin. Each sub-basin is part of a larger basin that drains into an ocean or lake at a single point. Because water demand is usually local, the WRI Aqueduct Water Risk Atlas measures water withdrawal at the sub-basin level, and the tool’s main selection criterion is the average distance from supply to destination. This indicator also measures competition among users.
■ Baseline Water Depletion. Although similar to baseline water stress, which considers total withdrawals, baseline water depletion is calculated based only on the amount of water consumption. In alignment with WRI Aqueduct Water Risk Atlas definitions, we define consumption as water that does not return to the basin. We measure our consumption to track the ways our water withdrawal impacts local water supply and decreases water availability for downstream users.
■ Drought Risk. In addition to measuring the probability that drought will occur, this indicator considers the magnitude of the impact based on the exposure and vulnerability of the affected population and assets.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Responsible Water | 171 We also consider the following indicators to be relevant to Our contextual targets are based on a score for each our operations: facility, which is derived through calculations based on ■ Interannual Variability. The variations in available water these indicators. A site is included on our list of high water- supply from year to year. stress areas if: ■ The facility has a high-risk score in the three ■ Seasonal Variability. The average variability within significantly relevant indicators. a year, including both renewable surface and groundwater supplies. ■ A facility has a high total score based on all seven indicators. ■ Unimproved/No Drinking Water. Areas where people have less access to safe drinking water. This This approach allows for a multifaceted evaluation of our measurement does not evaluate the availability of water water use and impacts. or the actual quality of the water; it only measures the The 29 sites currently on our list are the baseline for our proportion of the population without access to treated 2030 goals, but we also have a watch list for all sites where drinking water. there is a water risk that could change over time. Each year, ■ Peak RepRisk. A third-party index that quantifies we will evaluate all sites according to these indicators, and business risk exposure to ESG issues in a given country. context-based targets will be added as needed to address extremely high or high water-stress areas.
SITES FOR 2030 CONTEXTUAL TARGETS
2 8 9 4 6
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Responsible Water | 172 WATER SOURCING & CONSUMPTION INITIATIVES With a focus on improved efficiency and water reuse and recirculation, we are making exciting improvements to our processes and systems.
To achieve our water-related goals, In addition, we continually track water In several of our sites we have plant-level efforts and community intensity across all our facilities and implemented a chiller plant engagement are critical. That’s why monitor our progress. A considerable control system which has not only we’ve undertaken a wide range of portion of the reductions we’ve made proven highly effective for energy water-saving initiatives at many of since 2010 can be attributed to our conservation, but has also led our facilities. low-cost or no-cost efficiency efforts to significant water savings. By and undertaking more significant integrating a system that treats the We are able to determine cradle-to- capital investment projects. water, enabling it to be reused, we grave impacts on water consumption are able to save millions of gallons of for all our products that have LCAs. Water Conservation Efforts Across water per year per plant. Systems have With this information, we can identify Our Sites already been installed in Taloja, India, products with high impacts and In spring 2020, our plant in Gastonia, as well as Jackson, Tennessee, and prioritize projects that address them. North Carolina, U.S., began work to Amarillo, Texas, in the U.S. Plans are Increasing grassroots engagement increase recirculation within their in place to incorporate this technology is also essential to improving water whitewater system. By incorporating into our Starr, South Carolina, U.S., efficiency. Site-level efforts such as the recirculation loop into the site’s plant as well. leak detection and repair, identification operations, we have seen considerable Currently, a Composites site in of unnecessary water usage, and improvements in water usage, as well Mexico — one of our largest users of opportunities for increased water as a general increase in the stability of water — is testing new water recycling reuse are key components of our the system as it runs. As a result, there technologies. Our long-term strategy water conservation programs. We is less need for cleaning, chemicals are is to use these systems and process also recognize the need to continually used more efficiently, and less water improvements as models for future assess our operations for additional is wasted in our operations. This is installations across our operations. reuse and recycling opportunities at the part of an overall initiative to improve corporate level. process water efficiency throughout our Nonwovens business. Photo submitted by: Karen Bonner | Toledo, Ohio, U.S. Maumee Bay State Park, Toledo, Ohio, U.S.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Responsible Water | 173 SPEAKING OF SUSTAINABILITY Vicky Liu As an environmental manager at our facility in Shanghai, China, Vicky Liu has been involved in a wide range of sustainability projects, including an on-site waste water treatment renovation project that is expected to be operational in 2021. Vicky has experience in many facets of sustainable manufacturing and environmental compliance, and the expertise and passion she brings to water conservation serves as a guide for our employees around the world.
On the importance of having sustainability to do the water recycling. Based on our analysis, the new goals, including water sourcing and system will use recycled water instead of tap water, which will consumption save us a lot in water costs. The system performance will be improved due to high-quality water changing on a daily basis, Firstly, it fits our company’s goal of making the world and the facility’s service life will also be expanded. a better place and leaving a clean world to our next generation. Owens Corning has tried hard to employ On how our employees can help achieve our sustainable development, and the water goal is one way to achieve clean production. Secondly, it’s good to maintain sustainability goals our company image. The Chinese government has put Firstly, never stop exploring. We need every employee to forth a lot of effort to lower carbon emissions, and this year get involved in reducing water consumption and increasing they also put forward a plan for carbon neutrality, which water recycling. Because our workers are familiar with the means we could lower carbon emission by planting trees, production, it can be easier for them to find water-saving energy recycling, etc. Being a forerunner in a high energy- opportunities. Secondly, it’s important to set up a data map consuming industry, Owens Corning is devoted to clean of water consuming, recycling, and discharging to control production, to show our determination and through our every point of water flow. I’m very happy to be involved in water goals. these beneficial water conservation projects, and I’m very willing to share our experience. We may have different On the importance of support throughout the government regulations, but we have mutual sustainability organization goals, so let’s learn and share practices together. I’m impressed by our leadership. I was assigned to a new glass fiber production line expansion from the Vicky Liu environmental aspect. At the beginning of the project, Senior Environmental Lead, Insulation Asia Pacific, Shanghai, China. leaders visited China and shared ways to combine water Photo taken at Yuntai Mountain in Henan province. treatment between two lines, which gave us confidence
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Responsible Water | 174 WATER SOURCING & 2030 TARGETS CONSUMPTION & PERFORMANCE PERFORMANCE With an emphasis on conservation and efficiency, our 50% aggregate intensity reduction of water withdrawal in high ingenuity and dedication are water-stress sites from 2018 baseline. delivering impressive benefits. High Water-Stress Sites improvement 10% from base year Water Withdrawl Intensity (cubic meters normalized Using 2010 as our base year, we set a goal by revenue) to achieve a 35% reduction in our weighted- 0.00265 average water intensity by 2020. As we 0.00290 reached the end of this target year, our 0.00294 usage was 43% below the weighted-average intensity baseline, surpassing our goal.
We source water for our operations from municipal water supplies, on-site wells, 2018 2019 2020 2030 GOAL BASE YEAR 50% Reduction stormwater, off-site bodies of water, and third parties. This year, we withdrew 9,930,169 cubic meters of water, a 20% absolute reduction compared with 2010. From 2019 to 2020, our absolute water withdrawal decreased by 10%, while our Remain flat or reduce aggregate water withdrawal intensity at all water withdrawal intensity decreased remaining sites from 2018 baseline. by about 5%. Approximately 70% of the water we used in 2020 was taken from All Other Sites Water municipal water supplies. improvement 12% from base year Withdrawal Intensity In 2020, Owens Corning recycled 4%, or (cubic meters normalized 355,029 cubic meters, of the water we by revenue) 0.00112 withdrew. We recirculated 155,466,943 cubic meters, or 1,566% of water 0.00123 0.00128 withdrawn. Insulation facilities, excluding Owens Corning Paroc and several FOAMGLAS® insulation sites, currently calculate recycled or recirculated water.
Using our 2010 water efficiency rate and 2019 2020 2030 GOAL 2020 production levels, we estimate that 2018 BASE YEAR we have saved over 18.2 million cubic meters of water since 2010. Using our estimated average cost of water, this has Compared to 2018, continued water use efficiencies and fixture upgrades saved us over $16.3 million. and repairs led to a 10% reduction in intensity at our high water-stress sites, and a 12% reduction in intensity at our remaining sites.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Responsible Water | 175 Impact on Local Water Bodies 2020 Water Withdrawal by Source
We evaluate all our facilities to determine their proximity to sites listed as ecologically sensitive or significantly important to maintaining biodiversity. Aquatic evaluations are also completed at the corporate level to determine if any of our facilities are located near rare, threatened, or endangered species, sensitive habitats, or the International Union for Municipal Water 72% Conservation of Nature’s (IUCN) Red List species. Well Water 21% Water withdrawals from our facilities do not exceed volume Surface Water 4% thresholds and do not extract from Ramsar Wetlands sites Third-Party Supplier 2% or other highly sensitive water resources (based on our Stormwater <1% knowledge of suppliers and sources).
Owens Corning is not impacting any special protected bodies of water and related habitats, as defined at the country level by the UN World Heritage Sites, UN Biosphere Sites, or Ramsar Wetlands. This determination is based on an evaluation conducted annually by Owens Corning, which continues to demonstrate our manufacturing sites’ lack of proximity to these special sites or species.
2020 Goal Water Withdrawal Footprint Water Withdrawal Weighted-Average Intensity Percentage ― 2020 Goal
15 150
135
12 120 INTENSITY PERCENTAGE
105
9 90
75 (IN MILLIONS) (IN 6 60
ABSOLUTE CUBIC METERS CUBIC ABSOLUTE 45
3 30
15
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Absolute Cubic Meters 12,372,377 12,226,751 11,092,576 11,386,560 11,015,225 10,699,651 11,117,421 11,255,488 11,238,573 11,081,243 9,930,169
Weighted-Average Intensity 100 92 77 73 73 67 62 58 59 60 57 Percentage
Weighted-Average Intensity 5.51 5.07 4.23 4.03 4.03 3.67 3.43 3.21 3.24 3.32 3.14 (M3/MT of product produced)
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Responsible Water | 176 Discharge Compliance Owens Corning has made CDP’s Water A List for the second year in a row. Owens Corning facilities comply with national, state, and local regulations and permits regarding water withdrawal This award recognizes our transparency and wastewater discharge. We have deployed advanced regarding water use and management. water treatment systems at our top three water-discharging This program facilitates informed decision-making to facilities to ensure that the quality of the water they achieve water resilience, better governance of water discharge meets or exceeds permit requirements. issues, incentivizing long-term water management planning, and the development of standard water Our businesses and segments use water in different regions metrics and performance benchmarks for better water with different regulations, and in different processes. quality and quantity. Because of this, our approach is tailored to the site level. In applicable sites, we actively monitor relevant effluent data — including Chemical Oxygen Demand (COD), Biochemical Oxygen Demand (BOD), and Total Suspended Solids (TSS) — and we collaborate with external organizations to verify our discharge information. Where it is necessary to meet discharge requirements, we pretreat or treat our wastewater 2020 Water Discharge by Destination prior to discharge accordingly. Most of our sites are charged for their water discharge, and all our sites are expected to comply with local regulations for their water discharge.
In 2020, we discharged a total of 5,690,720 cubic meters, which represents a 19% improvement from 2010. This includes discharges to publicly owned treatment works (POTW), surface POTW 77% water, off-site shipment, and other destinations. Surface Water 23% Regarding environments that are around our facilities, Discharge (other) <1% discharges are controlled through permits and required Off-Site Shipment <1% monitoring. Moreover, several of our facilities have achieved a zero-discharge level (other than water discharged for irrigation). Unauthorized discharges and runoff must be reported to our environmental and legal departments, and corrective action must be taken. Employees are subject to disciplinary action for knowingly failing to comply with legally required environmental reporting.
Photo submitted by: Michele Mazza | Trophy Club, Texas, U.S. Cattail marsh wetlands in Beaumont, Texas, U.S.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Responsible Water | 177 As we work to source and GOING consume water responsibly — and meet our 2030 sustainability goals FORWARD — we will be focusing on context- based targets, meaning they address our needs and the needs of the communities where we operate.
This shift to context-based targets marks a refinement in our approach. Since all our production processes require water, our operations depend on local water supplies, including surface water and groundwater. In addition to baseline water stress, our 2030 targets will evaluate regional water consumption, drought risk, year-to-year and seasonal variability, availability of drinking water, and reputational risk.
As we implement our new evaluation methodology, we will also be closely monitoring the impact that climate change will have on water supplies in every region where we operate. In doing so, we will have a greater understanding of what’s needed to responsibly source and consume water — and achieve our 2030 goals.
Photo submitted by: Olivia Kasle | Toledo, Ohio, U.S. Higgins Lake, Michigan, U.S.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Responsible Water | 178 WASTE MANAGEMENT
In this chapter: 2030 GOALS STRATEGY & APPROACH INITIATIVES PERFORMANCE GOING FORWARD
Waste management is at the core of many of Owens Corning’s sustainability efforts, especially as they relate to expanding our products’ handprints. By reducing the amount of waste that we send to landfills, we can close the loop on our transition to a circular economy model.
In addition, with waste-reduction goals embedded in our product innovation and stewardship principles, we focus on redesigning processes to avoid the creation of waste — and repurposing it wherever possible. It’s all part of our work to redefine waste as we continuously look for beneficial uses for the byproducts of our manufacturing to create quality, sustainable products.
Photos submitted by: Our waste management goals challenge us Brianne Bass | Rockford, Illinois, U.S. Fall outside the Rockford plant. to rethink the way we design and develop both our products and processes.
Our waste management efforts align Sustainability Materiality Definition: Our ambition is to mitigate the waste that we produce by redesigning with the following UN SDGs: the process to avoid its creation, and repurposing it whenever possible. We are committed to redefining waste, continuously looking for beneficial uses for our byproducts and other waste materials.
The waste data in this chapter were independently assured to a moderate level by SCS Global Services. For more information on the assurance process see About the Report, and for our verification statement please see Appendix F.
For the data in this section, baseline adjustments were made following the World Resources Institute (WRI) protocols. Read more on page 288 in About the Report.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Waste Managment | 179 2030 GOALS FOR WASTE MANAGEMENT
By 2030, we will send zero waste to landfill. We have an ambitious two-part plan to achieve this. ■ By improving efficiency and process design, we will achieve a 50% intensity reduction of waste generated.
■ We will repurpose or recycle 100% of the remaining waste, and whenever possible, we will recycle waste back into our own processes. Our commitment to the U.S. Department of Energy’s Better Plants Challenge to have zero waste-to-landfill at our U.S. sites by 2030 aligns with our companywide goal for waste management.
By taking part in this initiative, Owens Corning is not only demonstrating our long-term dedication to sustainable waste management, but also committing to sharing our performance data and strategies over the next ten years.
We look for ways to reduce all forms on the recycling of glass fiber. Owens STRATEGY of waste – liquid, solid, hazardous, Corning is one of the largest users of nonhazardous, and more – during the recycled glass, using approximately 1.3 AND APPROACH complete life cycle of our products. billion pounds of recycled glass annually. Reducing waste creates As we conduct life cycle assessments We also support glass recycling by a smaller environmental for our products, we consider the collaborating with strategic partners to footprint, which is waste impact of the product. With this increase the recycling of glass containers essential to expanding understanding, we can work to make and factory waste. our products as sustainable as possible. our product handprint. As we find solutions to recycle and reuse Using fewer raw source materials and waste within our processes, we hope to increasing our capabilities for reuse and uncover ways that we can support our recycling are key among our strategies customers by expanding our take-back for minimizing waste and reducing our programs. Along with that, considering reliance on landfills. During the initial waste during the design phase and design phase and through continuous throughout a product’s life cycle means improvement efforts, we seek to considering end-of-life issues from the increase the percentage of recycled beginning. You can read more about these content in our products and packaging efforts in the Circular Economy chapter. materials. Recycled glass reduces demand for raw materials, which is why we focus research and development
We’re one of the world’s largest users of recycled glass — more than 1.3 billion pounds each year. Photo submitted by: Amanda Meehan | Toledo, Ohio, U.S. Oak Openings Metropark, Toledo, Ohio, U.S.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Waste Managment | 180 Internal Processes and Accountability
Our environmental management system (EMS) ensures that we meet all regulatory requirements related to waste, in adherence to Photos submitted by: our Environmental, Health, Safety, and Product Stewardship Policy. Amanda Meehan | Toledo, Ohio, U.S. Through the EMS and periodic assessments of the efficacy of our waste Bearded irises. management program and recycling opportunities at our sites, we are able to implement additional reduction and diversion strategies that help us comply with and even exceed internal and external standards, guidelines, and laws, as well as make progress toward our sustainability goals. In addition, our product stewardship review process includes a focus on preventing waste throughout the life cycles of our products.
While leadership and reporting for waste reduction efforts roll up to the enterprise level, many of the initiatives happen in our manufacturing facilities. Our global waste-to-landfill (WTL) leader is responsible for driving WTL reductions and fostering relationships with internal and external stakeholders across all businesses. Our Composites business also has its own WTL leader who prioritizes and tracks waste reduction efforts specific to composite materials. Periodic reviews are used to assess progress and take necessary corrective actions.
Waste Management Performance Measurement
As we have worked to achieve our 2020 goal to reduce the amount of waste sent to landfill and increase the amount of diverted waste, we have used weighted-average intensity to measure our performance. Owens Corning continues to evaluate and improve upon the methods and mechanisms to track waste streams that are ultimately recycled, reused, or landfilled. When waste management or recycler invoices are available, we use them in our data reporting; otherwise, we rely on on-site weight scales. In the absence of scales, we use calculated estimates to determine the weights of our shipments. We depend on the final disposition of each material to assess our performance.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Waste Managment | 181 WASTE MANAGEMENT INITIATIVES
Between our WTL efforts and designated resources across our businesses, we are well-equipped to understand our waste data and develop solutions to reduce waste. Within this network, we regularly share ideas, best practices, and recycling outlets across our plants, businesses, and R&D.
Through our initiatives, we are working to produce less waste in general and prevent more of the waste we do produce from going to the landfill. This benefits both the environment and our business. By generating less waste, Owens Corning reduces manufacturing costs, including costs associated with transportation and disposal, raw materials, energy, time, and labor.
The following are among the notable waste management initiatives conducted at Owens Corning in 2020:
Apeldoorn, Netherlands. The Parainen, Finland. The mineral wool In 2020, we diverted 21.3% of sludge Composites plant is working to reduce plant is currently conducting trials to from the landfill, up from 13% in landfill by shredding waste glass, return wet waste to the electric melting 2010. Our facility in Taloja, India, is which is then milled into a powder. furnace. In addition, a plasma melting investigating use of sludge from the This powder could then be used as feasibility study is ongoing. wastewater treatment process for input material in new or existing veil use in cement. Our Yuhang, China, Wabash, Indiana, U.S. Our plant sends formulations. Reducing the amount plant is focused on reducing sludge by byproduct to 10X Engineered Materials, of production waste that goes to improving binder application efficiency which owns and operates a recycling landfill not only shrinks the ecological and reducing moisture content through facility designed specifically to process footprint, but it also creates value by dewatering. The sludge recycling our plant’s dragline shot, a specific reducing costs. program at our plant in Besana, Italy, process-waste stream, into abrasive has continued to increase volume. Hässleholm, Sweden. Our mineral blast media. Although the pandemic Our Kimchon, South Korea, facility is wool plant has made significant slowed the company’s plan to ramp up recycling all of their sludge through improvements over the years, its operations in 2020, 10X has a goal two outlets, and they stopped increasing WTL diversion more of recycling at a rate of over 25,000 sending sludge to landfill in 2018. than 22% since 2010 while reducing tons per year. WTL by 55% in the same timeframe. Repurposing Shingles for Paving. Briquette Production. At several of Most of the plant’s waste is now Owens Corning roofing plants across our mineral wool sites in Europe, Asia, recycled internally or externally, or it is the U.S. are working with recycling and the U.S., scrap rockwool and incinerated with energy recovery. companies to repurpose shingle other byproducts are being converted scrap to use in paving. While not all The plant also is recycling some of into briquettes, which can be reused state departments of transportation its scrap rock wool and tap melt into as input material for our furnace. permit shingle scrap to be used in briquettes, and they have started Although most of the briquettes are pavement, Owens Corning is working to recycle scrap rock wool from being manufactured by third-party to find recyclers for many of our site’s the Hällekis, Sweden, plant into its companies, our facility in Guangde, byproducts. In one instance, an area briquettes as well. The briquettes are China, built a brick workshop in 2019. landfill is using a third-party company to recycled or remelted into the production Briquettes made there are fed back cut shingles into small pieces, which are process. Additionally, the plant uses slag into the cupola; as a result, that facility then used as road base on the landfill from a local steel company as recycled sends none of its waste to landfills. property. As new roads are created, content in its briquettes. Reducing Sludge from Wastewater shingle scrap is dug up and reused. Yuhang, China. Our glass fiber facility Treatment. In recent years, we have has installed a system to recycle a had notable initiatives reducing waste byproduct of the manufacturing process related and wastewater process back into the furnace. The plant treatment sludge and increasing has completed three phases of the recycling of fly ash and shot, which we trial, and in phase four, they will work to continue to work at expanding. automate the process and optimize the milling and particle sizing steps.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Waste Managment | 182 SPEAKING OF SUSTAINABILITY
Didier Blanc Living near the natural beauty of the French Alps, Didier Blanc has long been aware of the need to preserve the environment. As a sourcing and supply chain leader at our Chambéry facility, he’s able to help Owens Corning do our part to create a better world for future generations. Having been with Owens Corning for over 30 years, Didier has a wealth of expertise to offer in our sustainability efforts, and he shares his insights here.
On the challenges of recycling at that if we mix the fibers with rocks extracted from quarries, Owens Corning it is possible to grind the fibers and obtain a very interesting material to stabilize roads. These applications allow Owens Our facility produces roughly 7,000 to 10,000 tons of Corning to significantly reduce the amount of landfilled glass waste every year. We cannot remain inactive and not think waste and probably go from waste status to co-product status. about how to recycle this waste. There are many studies and applications for the recycling of soda lime glass, the On Owens Corning’s commitment to sustainability glass used to produce bottles, but there’s not much about borosilicate glass, like we use in our Advantex® products. Important industrial groups often give the image of polluters, The subject is quite easy to tackle, but not easy to solve. but companies like Owens Corning have the resources to come Composite materials are used in a wide range of applications in to find solutions. It is difficult for a plant to work alone on such as automotive, aerospace, and the renewable energy recycling, so we need to find partnerships across the company industry. But they have not been properly recycled due and across the industry. We are fortunate to work in a group to their inherent heterogeneity, particularly for thermoset that has ambitious sustainability goals and is committed to polymer composites that cannot be remelted for other uses. succeed. I’m optimistic. In the last year, whether in Europe or in other regions, Owens Corning has launched many studies. On discovering cost-effective ways to We have made a lot of progress, and now we have some recycle fiberglass interesting results. And I think in the next two years we should significantly reduce our waste to landfill. Fiberglass is an inert material that can enter into various processing methods to be recycled, like crushing — reducing material to small pieces of powder or to be reused in other products. The great difficulty we’ve had is to grind Didier Blanc the fiberglass in a homogeneous way without using too Sourcing & Supply Chain Leader, Chambéry, France. expensive equipment. During a recent study, we showed Photo taken in front of Mont Blanc in the Alps.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Waste Managment | 183 Our 2020 goal to reduce our waste-to-landfill (WTL) intensity by 70% from a 2010 WASTE MANAGEMENT baseline has been one of our biggest sustainability challenges. Although our diverted waste was 65% of the total waste in 2020, we are currently at a 27% reduction in WTL PERFORMANCE intensity compared to the 2010 baseline. Many of our facilities have made progress in reducing waste, and there is much to be proud of in our efforts companywide; however, we know we must continue focusing on this challenge. As we continue our work, finding internal and external opportunities to reduce waste throughout our operations, we are inspired by our 2030 goal of zero WTL. 2020 Goal Waste-to-Landfill Footprint ■ Waste-to-Landfill Weighted-Average Intensity Percentage 2020 Goal
400 120
350 105
300 90 INTENSITY PERCENTAGE
250 75
200 60
150 45
(IN THOUSANDS) (IN 100 30
ABSOLUTE TONS ABSOLUTE METRIC 50 15
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Absolute Metric Tons 313,882 279,998 323,097 324,064 305,438 301,146 326,638 385,661 373,193 323,874 280,487
Weighted-Average 100 83 101 103 92 93 97 96 94 82 73 Intensity Percentage
Weighted-Average Intensity (MT/MT of 0.1051 0.0876 0.1067 0.1082 0.0964 0.0973 0.1020 0.1006 0.0989 0.0866 0.0772 product produced)
2030 TARGETS After reducing waste intensity by 50% repurpose or recycle & PERFORMANCE 100% of remaining waste/byproducts from 2018 baseline. 50% intensity reduction of waste/byproducts generated from 2018 baseline. Percentage of Waste Repurposed or Recycled Intensity of Waste/Byproducts Generated (metric tons normalized by revenue) 2020 8% 44% improvement from base year 0.0000716 13% 2019 improvement 41% 0.0000765 from base year 0.0000823 36%
2018 2019 2020 2030 GOAL 2018 2030 GOAL BASE YEAR 50% REDUCTION BASE YEAR 100% REPURPOSED OR RECYCLED This 13% improvement reflects 80,251 MT less waste/ byproduct generated than in 2018, due in part to increased Finding additional outlets and end-use applications for our focus on waste generation and operational efficiency byproducts contributed to this 8% improvement. improvements across the business.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Waste Managment | 184 Excellence in Waste Diversion At our Science RECYCLING & Technology Owens Corning uses an internal rating system to honor and recognize Center in those facilities that have demonstrated a commitment to waste DISPOSABLE Granville, management. The rating system is focused on diversion from landfill Ohio, U.S., compared to total waste generated. GLOVES: we estimate In 2020, 41 plants achieved greater than 80% landfill diversion. A PERFECT FIT that each lab FOR OWENS employee uses an average of PLATINUM LEVEL GOLD LEVEL SILVER LEVEL CORNING three to four 100% WASTE DIVERSION >98% WASTE DIVERSION >80% WASTE DIVERSION pairs of gloves each day. That adds up to a great deal of ■ ■ ■ Asan, South Korea Chambéry Science Chambéry, France waste, which is especially relevant as the & Technology, ■ Changzhou, China ■ Edmonton, Canada COVID-19 pandemic has led to significant France increases in the use of disposable PPE. ■ Dapada, India ■ Guangzhou, China ■ Gresham, Oregon, To help mitigate this issue, the Granville Science & Technology Center is participating ■ Guangde, China U.S. ■ Hällekis, Sweden in Kimberly-Clark’s RightCycle program, ■ Parainen Science ■ Qingdao Novia, ■ Hässleholm, which recycles single-use gloves. & Technology, China Sweden The RightCycle Program came to the Finland ■ Tessenderlo, ■ Jaiobei, China attention of asphalt associate scientist ■ Ridgeview, South Belgium Robb Camm in 2018. The program diverts ■ Kearny, New Carolina, U.S. previously hard-to-recycle nitrile gloves, ■ Trzemeszno, Jersey, U.S. safety eyewear, and apparel items from the ■ Sayli, India Poland ■ Medina, Ohio, U.S. waste stream and turns them into plastic ■ Shanghai, China ■ Valleyfield, Canada pellets. These are then used to create durable ■ Monterrey Foam, consumer goods such as shelving, totes, ■ ■ Springfield, Yantai, China Mexico and lawn and garden furniture. The program Tennessee, U.S. also provides work for disadvantaged people ■ Yuhang Glass ■ Mount Vernon, and people with disabilities, who process the ■ Vilnius, Lithuania Reinforcement Ohio, U.S. Solutions, China items for recycling. ■ Yuhang Glass ■ Nanjing, China All Kimberly-Clark nitrile and latex gloves Wool, China ■ Parainen, Finland used in non-hazardous applications are eligible for the program. Robb started ■ Portland Asphalt, collecting gloves in the asphalt lab, and he Oregon, U.S. has led the effort to expand the program. ■ Portland Roofing, Currently, 11 labs in Granville, from across all Oregon, U.S. businesses, have started collecting gloves. In 2020, 185 pounds of disposable gloves ■ Rockford, Illinois, from Granville labs were kept out of landfills. U.S. “There’s some initial set-up work to join the ■ Santa Clara, program and make sure only Kimberly-Clark California, U.S. gloves are being collected,” according to Julia Faeth, asphalt coating technology leader, ■ Skövde, Sweden “but we are hoping that more labs and more ■ Tallmadge, Ohio, locations will be able to participate in this U.S. program.” RightCycle is currently available in the U.S., Canada, and some other areas ■ Taloja, India around the world. Kimberly-Clark is working ■ Tianjin Glass, on pilots in Mexico and Asia Pacific and is China exploring possibilities in Europe.
■ Tiffin, Ohio, U.S. Owens Corning received a Greenovation Award from Kimberly-Clark for participating ■ Toronto, Canada in the program and our efforts to expand the program across the company.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Waste Managment | 185 Total Waste Generation and Disposal
Owens Corning separates waste into hazardous and non-hazardous categories. The majority of waste generated in our facilities is either recycled or sent to landfill. Depending on the type of waste, we also use such methods as commercial composting, incineration with energy recovery, and returning waste to the supplier.
In 2020, we generated 796,422 metric tons of total waste, compared to 866,788 metric tons in 2019. The overwhelming majority, 792,387 metric tons, was non-hazardous waste.
2020 Non-Hazardous Waste by 2020 Hazardous Waste by Disposal Disposal Method (Metric Tons) Method (Metric Tons)
Waste-to-Landfill 277,978 Waste-to-Landfill 2,138 Recycled Internally (on-site) 236,915 Recycled Internally (on-site) 824 Recycled Externally (off-site) 189,529 Incinerated with Energy Recovery 350 Recycled Internally with External Processing 53,685 Recycled Externally (off-site) 292 Recultivation 29,948 Controlled Confinement* 201 Incinerated with Energy Recovery 3,117 Incinerated without Energy Recovery 172 Treated and Recycled 491 Treated and Recycled 57 Incinerated without Energy Recovery 434 Controlled Confinement* 171 Cross-Plant Recycle 93 Composting 24 Return to Supplier 3 *Owens Corning considers Controlled Confinement as Waste-to-Landfill for reporting purposes.
Waste Diversion Waste Diversion for 2020
Our overall waste diversion rate for Recycled Internally (on-site) 46% 2020 was 65%, compared to 63% in 2019 and 57% in 2010. Recycled Externally (off-site) 37% Recycled Internally with External Processing 10% Recultivation 6% Incinerated with Energy Recovery 1% Treated and Recycled <1% Cross-Plant Recycle <1% Composting <1% Return to Supplier <1%
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Waste Managment | 186 ABSOLUTE ZERO: Hazardous Waste Owens Corning facilities generate small GRESHAM PLANT ACHIEVES amounts of hazardous waste during production and maintenance operations. This typically WASTE-TO-LANDFILL GOAL includes spent cleaning solvents, paint-related One great example of our waste management work comes from wastes, and spent laboratory chemicals. our FOAMULAR® plant in Gresham, Oregon, U.S., which announced There are also some business-specific in August that it had achieved zero waste-to-landfill. Here’s how they hazardous wastes. For example, Owens got there. Corning’s Roofing business uses flammable ink In 2018, Gresham generated over 70,000 pounds of miscellaneous to mark shingle wrappers, so any unused ink or waste within the plant. In 2019, employees reduced that to a little ink conditioner contributes a small amount to over 50,000 pounds. While that’s impressive, the team knew reaching the total hazardous waste disposed. the goal of zero waste-to-landfill would take hard work, education, Each location has an appropriate hazardous dedication, and collaboration with local recyclers and vendors. waste management system to ensure the proper Gresham Waste Management by the Numbers and safe disposal of waste. ■ Cardboard and Paper: 22,000 pounds per year. In 2020, we generated 4,036 metric tons of ■ Metal: 10,000 pounds per year. hazardous waste, which is only 0.5% of the total waste generated. This is a reduction from ■ Wood: 43,000 pounds per year. 6,186 metric tons of hazardous waste in 2019. A total of 2,340 metric tons of hazardous waste ■ Waste Strap: 15,000 pounds per year. was sent to landfill. Our business units have ■ Liquid and Aerosol: 40 55-gallon drums per year. established a mechanism to track the intensity and amount of hazardous waste generated. The Materials that cannot be recovered in a cost-effective manner increases in hazardous waste over the years are are recycled through a local vendor for a high-BTU energy from correlated with the furnace rebuild cycles for waste (EfW) program, which generates up to 13.1 megawatts of our glass manufacturing locations. We continue renewable power. By committing to process 27 tons (2019 total) to seek ways to reduce all waste, including of post-recycled waste at an EfW facility instead of sending it to a hazardous waste. landfill, the Gresham plant will: ■ During the reporting period, no hazardous Avoid the creation of 27 tons of CO2-equivalent greenhouse gases. wastes, as classified under the terms of the Basel convention, were imported, exported, ■ Generate 14,850 kWh of renewable electricity — enough to transported, treated, or shipped internationally power 15 homes for a month. for disposal. ■ Reduce the need for 7 tons of coal, or 1,134 gallons of fuel oil.
■ Recover 1,350 pounds of metals for recycling. Recycling efforts also extend to the employee level. Recyclables from the break room and office areas are kept separate and recycled. Meanwhile, the plant also has a program for less commonly recycled items such as fluorescent light bulbs, alkaline batteries, lithium batteries, and ballasts.
Through the Hose to Habitat program, the Oregon Zoo uses donated materials as enrichment items for the animals, providing them with new ways to interact with their environment and providing them with stimuli that improve their well-being.
Gresham’s successes provide a template that can be applied across all Owens Corning facilities, indicating how we can advance toward our 2030 goals and beyond toward the circular economy model.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Waste Managment | 187 Waste management remains a GOING focus area for Owens Corning, despite the challenges we have FORWARD faced, and we are committed to becoming a zero waste-to-landfill company by 2030. Doing so will require a great deal of ingenuity and collaboration throughout the company and with external partners. We are working to find solutions at all levels of our organization, from engineers developing and modifying products to employees reducing waste in our operations and facilities.
Reducing our environmental footprint by sending less waste to landfills around the world supports our work to improve our product handprint. When our products are made in zero-waste facilities, we can boost the positive sustainability impact of those products. Reducing the amount of waste produced overall, then recycling the remainder, is increasingly vital in these efforts.
Glass waste from our manufacturing process is our largest category of waste, and our biggest challenge. And while non-manufacturing waste is a significantly smaller part of our overall footprint, our efforts there are indicative of our companywide determination to seek solutions wherever possible. This is particularly urgent as landfill space, especially outside the U.S., becomes increasingly scarce.
Looking ahead to our 2030 goals, it is clear that we cannot simply rely on third-party recyclers. While their services are highly beneficial, these outlets may change their specifications, go out of business, or become unavailable to us for other reasons. We recognize that as we advance the strategies that will help us accomplish our objectives, it is incumbent upon us to collaborate internally and externally with stakeholders around the world, and through those initiatives we can become a zero waste-to-landfill company.
Photo submitted by: Amanda Meehan | Toledo, Ohio, U.S. Fall evening.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Waste Managment | 188 PROTECTING BIODIVERSITY
In this chapter: 2030 GOALS STRATEGY & APPROACH INITIATIVES PERFORMANCE GOING FORWARD
Our planet is a delicate ecosystem, home to countless species, and each of those species helps maintain the crucial balance that sustains life. This is called biodiversity, and as a manufacturing company, we must be aware of the impact our operations — and those of our supply chain — can have on the biodiversity that surrounds us.
The need to protect biodiversity has never been greater. According to the United Nations, approximately 1,000,000 animal and plant species are currently threatened with extinction — many of them could potentially disappear within decades if action is not taken.
Owens Corning has begun the process of deepening our understanding of the biodiversity that exists in the areas where we maintain a presence. Through this work, we will be better equipped to discover how we can preserve and enhance biodiversity and the natural habitats that surround our operations around the world.
Photos submitted by: Julie Childers | Granville, Ohio, U.S. Venice Beach, California, U.S. at sunset (top). Great blue heron on the Alabama shore (bottom). We’re working to develop biodiversity goals based on an understanding of the full impact of our operations and supply chain.
Our efforts to protect biodiversity align with the following UN SDGs: Sustainability Materiality Definition: Biodiversity describes the variety of life that keep nature’s ecosystem in balance. Owens Corning is committed to preserving and enhancing biodiversity and the natural habitats that surround our operations around the world. We seek to understand and manage the biodiversity impact of all our own operations, as well as gain insights into the impacts of our supply chain on biodiversity.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Protecting Biodiversity | 189 2030 GOALS FOR PROTECTING BIODIVERSITY
We will develop biodiversity goals based on an understanding of the full impact of our operations and supply chain on biodiversity by 2025.
In 2015, Owens Corning first issued our Biodiversity Statement. In that statement, we made a pledge to: ■ Integrate biodiversity assessments into current and proposed activities.
■ Work with governmental agencies at each of our operating locations to obtain appropriate clearances and information to operate, and if necessary, take appropriate measures to protect the environment, including sensitive ecosystems.
■ Encourage and support facilities to participate in local initiatives that protect and restore biodiversity.
■ Publicly report on biodiversity impacts and activities in a timely, consistent, and transparent manner.
■ Understand and positively influence our supply chain’s impact on biodiversity. Using these principles as our guide, we commit to setting a science-based biodiversity goal by 2025. In addition, these principles serve as a template as we work to more fully understand our impacts to preserve biodiversity.
As we work to preserve the These include: STRATEGY ecosystems that surround us, we are ■ United Nations Educational, Scientific AND APPROACH guided by a wide range of internal and Cultural Organization (UNESCO) and external policies, from regulatory World Heritage Sites and Biosphere We’re starting with a obligations to our own sustainability Reserves. rigorous set of standards, standards. We strive to go beyond then we’re working to compliance requirements through our ■ Sites designated by the Ramsar exceed them using data- biodiversity initiatives. Convention of Wetlands. driven insight. We also actively encourage all ■ Sites designated by the Alliance stakeholders to consider environmental for Zero Extinction, an organization impacts, including the protection of dedicated to conserving the world’s natural resources, as part of all capital most threatened species. project planning and internal approval. ■ Key Biodiversity Areas, referencing To assess the risks our sites may pose the 2016 IUCN Global Standard for biodiversity, we start by comparing report. a location against lists of the most ■ Natura 2000 sites, as applicable to protected and highly valued sites for Europe. biodiversity. Photo submitted by: Prathamesh Kulkarni | ■ Nationally listed nature and wildlife Gadhinglaj, Kolhapur, India reserves. Hands encircling a seedling.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Protecting Biodiversity | 190 When we expand our operations through the acquisition of new businesses and associated real estate, part of our due diligence includes the evaluation of land and adjoining property to identify environmental impairment and protected habitat and species. This ensures we can take restorative and protective measures as needed.
To achieve optimal results, we must have authoritative global biodiversity information. To act in the most effective and responsible manner, we have refined our strategy through the implementation of data-driven tools, including the Integrated Biodiversity Assessment Tool, adopted this year.
BIODIVERSITY INITIATIVES
Meeting our goals will require a united effort across all our operations — and a dedication to preserving our planet’s delicate balance.
Integrated Biodiversity Assessment Tool
In 2020, we began using the Integrated Biodiversity Assessment Tool (IBAT), a web-based mapping and reporting instrument developed and maintained by the IBAT Alliance (BirdLife International, Conservation International, IUCN, and UN Environment World Conservation Monitoring Centre). It is designed to help users make informed, data-driven decisions in their biodiversity policies and practices. Photo submitted by: Michele Mazza | Trophy Club, Texas, U.S. IBAT provides us with access to the following global Grasshoppers, Beaumont Botanical Garden, biodiversity datasets: Beaumont, Texas, U.S. (top). Passion butterfly (bottom). ■ IUCN Red List of Threatened Species.
■ World Database on Protected Areas.
■ World Database of Key Biodiversity Areas. Through IBAT, we are able to upload site coordinates and receive information about a facility’s proximity to nationally and regionally protected sites and key bird and biodiversity areas, as well as the extent to which there are endangered or threatened species in the vicinity.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Protecting Biodiversity | 191 Wildlife Habitat Council Through our due diligence processes, improve the sustainability of our Owens Corning identifies new products, we need to thoroughly The Wildlife Habitat Council (WHC) is biodiversity exposures, and we engage understand and be able to influence an organization dedicated to promoting in campaigns to raise awareness and or manage everything that contributes and certifying habitat conservation activities around these sites, as well to the footprint of each product. As and management on corporate lands. as their respective biodiversity-related part of our plans for biodiversity, we Through our work with the WHC over impacts. While we are confident that will expect our suppliers to meet the years, we have developed site-level these sites do not have direct impact on environmental performance standards, biodiversity initiatives according to best the biodiversity of the protected areas, protect local habitats, and maintain an practices. Their guidance has proven we strive to ensure that our impacts overall commitment to sustainability. invaluable as we have initiated a range are well-understood and managed. of projects and maintained native Environmental Impacts of In 2020, we performed a thorough habitats at a number of Owens Corning Our Quarries reassessment for biodiversity pressures sites, including the restoration of prairie and exposures using the IBAT tool. Our quarries extract industrial rock lands and the installation of bird boxes, from the earth. In contrast to many bat boxes, and pollinator gardens. Mining, Quarries, and Their Impacts traditional mining operations, all rock In addition, we have held a series of on Biodiversity sourced from our quarries is used activities and programs over the years, Through our ownership of Owens in some capacity. In fact, we ensure designed to engage employees and Corning Paroc and the rights to that there are solutions in place for all call attention to the nature projects and nine mining concessions in Finland, materials extracted from the quarries. features at our locations. Owens Corning now owns sources of ■ Fine granules that are not directly Following the recertification process in direct mineral extractions and source relevant to stone wool production 2020, which includes assessments of industrial minerals. Following our are either sold into the glass our grounds and biodiversity programs, acquisition of these quarries in 2018, industry, used in construction, or our world headquarters in Toledo, Owens Corning has implemented our compacted into briquettes, which Ohio, U.S., was awarded WHC Gold own internal auditing standards on the can then be used as inputs for Certification. Our Science & Technology sites, seeking to protect local habitats stone wool production. Center in Granville, Ohio, will apply for and gauge any potential environmental recertification in 2021. impact. As with our other initiatives, our ■ Usable stone is sent to our approach has sought to extend beyond manufacturing sites to create stone Protected and Key Biodiversity Areas simple compliance. To this end, the wool. management systems at each active To evaluate and report on the ■ Rock that is not suitable for stone quarry are third-party verified to ISO biodiversity risks of our locations, wool, known as “country rock,” is 14001 (2015) and ISO 9001 (2015), Owens Corning assesses exposure used to provide infrastructure for ensuring systems are in place that to protected and highly valued areas the quarry, to shore up sediment ingrate consideration of biodiversity within five miles of each site. Owens embankments, and as aggregate and other environmental impacts with Corning has processes for measuring material for building projects. our locations’ proximity to protected operations. In addition to managing stone waste, and important areas for biodiversity, We recognize that our own operations we manage our quarries’ soil and which were strengthened in 2019 are only a part of the impact that water impacts. Topsoil moved in the through the use of new robust physical our business has on biodiversity. In development of a quarry is kept on-site. screening tools. This includes many addition to the quarries we currently Most of that topsoil becomes part of Owens Corning Paroc sites, which are operate, we continue to purchase the landscape again, as grass and trees located within five miles of protected materials extracted by other grow in. Some of the topsoil is also areas listed by Natura 2000, whose companies as part of our global supply used as filler in quarry infrastructure. network covers 18% of the EU’s chain. To assess and continuously terrestrial area.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Protecting Biodiversity | 192 Science-Based Targets for Nature
In 2020, Owens Corning joined the Science Based Target Network (SBTN), which is part of the Global Commons Alliance. The SBTN is a network of international environmental non- profit organizations, agencies, and mission-driven entities. Their goal is to empower individuals, companies, and governments to become stewards of the environment using science-based targets — measurable, actionable, and time-bound objectives based on the best available science. Expanding upon the successes of the Science Based Targets initiative (SBTi), which helps companies set climate change targets, BAT BOXES the SBTN aims to develop methods and tools that build on companies’ existing PROVIDE SHELTER biodiversity efforts, which fosters an IN GRANVILLE atmosphere where momentum toward our collective goals can build.
Despite their somewhat frightening reputation, bats play an By entering into this partnership, we important role in preserving balance within their ecosystems. In will be well-positioned to align our addition to consuming a wide variety of insects, bats also disperse efforts with a wide range of nature- seeds and pollinate plants throughout the regions where they live. related sustainability goals that Unfortunately, many bat species around the world are in trouble, as have been established by the United deforestation and disease are causing their populations to dwindle. Nations and incorporated into broader frameworks by the SBTN. These goals Central Ohio, where our Granville Science & Technology Center address a range of global concerns, is located, is home to a number of threatened or endangered bat including ecosystems, extinction species, including the Indiana bat, the northern long-eared bat, the risks, land degradation, climate eastern small-footed bat, and the little brown bat. In 2020, we took change, and sustainable development. action to help preserve them by installing two bat boxes around our In addition, we can help drive facility. The bat boxes were constructed by a local Boy Scout troop sustainable development throughout with ties to Granville employee Dave Burd. They built one standard the private sector by contributing to bat box and one rocket box, which uses a more intricate design to the development of target-setting attract small families of bats from a wide range of species. methodologies. In preparation for the installation of these bat boxes, Owens Corning consulted with the Ohio Department of Natural Resources (ODNR). We led ODNR representatives on a walking tour of the site, which includes hundreds of acres of forests, prairie land, and bodies of water, and they helped us find the ideal locations for these new bat habitats. In addition, the ODNR guided us in the best practices for treating the boxes to allow for different heat levels within the box, as well as positioning the boxes to ensure they receive the ideal amount of sunlight throughout the day.
Projects like this represent the many ways Owens Corning is working to protect the species with which we coexist — and help ensure a future for the ecosystems upon which we all rely.
Photo submitted by: Matthew Schofield | Granville, Ohio, U.S. Bat boxes installed at the Granville Science & Technology Center.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Protecting Biodiversity | 193 SPEAKING OF SUSTAINABILITY
Megan Moore An environmental, health, and safety leader at our facility in Guelph, Canada, Megan Moore has had a passion for the natural world dating back to her childhood growing up visiting her family’s tree farm. She also has a master’s degree in environmental sustainability from Western University in London, Ontario, Canada. In her three years with Owens Corning, she has taken the lead on several key biodiversity initiatives. With her considerable expertise, she offers her perspectives on integrating biodiversity protections into corporate sustainability efforts.
On top priorities in biodiversity initiatives leader to support those initiatives and programs. Owens Corning has always had a passion for the environment. We’ve In my opinion, we need to focus on creating a local team or modified our inputs, like making our glass formulas better for having a champion at a facility to look at the environment the planet; and our outputs, like reducing emissions, waste- around our facilities, our manufacturing plants, our sales to-landfill and more. Now we’ve expanded into creating a goal offices, even our houses and see what species are out there, for the biodiversity crisis. It’s very important to me and other what kind of land we have, and how can we be a steward employees across the globe with Owens Corning. We want to of that land and species to create a positive habitat for do everything we can to support and restore vulnerable species them. By having our facilities and homes in areas where the near our facilities and our offices. We want to track and develop animal habitats are supposed to be, we’ve already taken a metrics, targets and goals to positively impact them. bit away, so let’s do our best to positively impact the area that we have around us. It provides an opportunity for On her hopes for protecting biodiversity at employee engagement and connecting with our community Owens Corning organizations. I hope that as Owens Corning is learning more about On growing our sustainability focus to include biodiversity, that employees across the globe will continue to biodiversity grow their passion and understanding of biodiversity to take action. If it’s planting a pollinator garden, planting trees, or Owens Corning has a positive attitude towards the monitoring water quality, anything that employees can do to environment, and I think that comes through our leadership. positively impact the environment where we work and live and We have a whole sustainability team with six directors, play, I fully support. I’m looking forward to the journey ahead. several leaders, and support staff in our world headquarters and in Granville, and I’ve been engaged as a facility EHS
Megan Moore Environmental, Health, and Safety Leader, Composites, Guelph, Ontario, Canada. Photo taken planting trees at the Guelph Composites Plant for World Environment Day.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Protecting Biodiversity | 194 BIODIVERSITY Integrated Biodiversity Assessment Tool Findings With the implementation of the Integrated Biodiversity Assessment Tool, we PERFORMANCE are gaining new levels of understanding, and we are able to act with greater The measures we’ve transparency. IBAT provides us with greater awareness of our proximity to areas taken this year to with high biodiversity value. address biodiversity By expanding our search to include Key Biodiversity Areas, we see where the concerns will guide us as potential for adverse impact exists if left unchecked, which in turn gives us cause we meet our 2030 goals. to explore further. As our understanding grows, we are committed to developing management plans for any identified impacts in 2021.
STATUS OF KEY BIODIVERSITY BIODIVERSITY DETAIL ON TYPE OF KBA MANAGEMENT AREA (KBA) TRIGGERS PROXIMITY PLAN
Endangered and Asan Bay (including Important Asan, Vulnerable Species, Asan-ho lake and Biodiversity Area Within 1 km Step 2: Planning South Korea migratory birds/ Sapgyo-ho lake) (IBA) congregations
Fort Smith, Threatened Bird Important Arkansas, Fort Chaffee Species Population Within 1 km Step 2: Planning Biodiversity Area U.S. (IBA status A1)
Anhui Chinese Endangered Guangde, Alliance for Zero Within the AZE Alligator National Species, Endemic Step 2: Prioritizing China Extinction Area boundaries Nature Reserve Species
Zavidovo Reserve, including Vulnerable Species, Izoplit, Important Lotoshinski, Klinski migratory birds/ Within 1 km Step 2: Planning Russia Biodiversity Area and Diatlovo fish congregations ponds
Qingdao-Rizhao Jiaobei, Important Endangered and Within the IBA coastal wetland and Step 2: Prioritizing China Biodiversity Area Vulnerable Species boundaries islands
Qingdao-Rizhao Qingdao, Important Endangered and Within the IBA coastal wetland and Step 2: Prioritizing China Biodiversity Area Vulnerable Species boundaries islands
Important area for species San Vicente, Mountains of Important characteristic of Within the IBA Step 2: Prioritizing Spain Barcelona Biodiversity Area the Mediterranean region region, and cliff- nesting species
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Protecting Biodiversity | 195 Biodiversity Management Plan
COVID-19 3. AND BIODIVERSITY Mitigation Actions While COVID-19 might not seem to be related to environmental concerns, the two are actually closely tied. As we look at the delicate interplay between 2. human beings and the natural world Adverse Impact that surrounds us, we understand that Assessment biodiversity — the variety of life that keeps nature’s ecosystem in balance — has a direct impact on the way viruses develop. The greater the biodiversity within an ecosystem, the more difficult it is for
Level advances over time / with demonstrated need 1. a pathogen to spread. Conversely, the Physical Proximity to Biodiversity rise of deforestation and destruction Areas Assessment of natural habitats makes it easier for something like a coronavirus to develop and pass between animals and people. The spread of COVID-19 should be an opportunity to reconsider our relationship Our management plan starts with a complete location screening for all with the natural world, as individuals, sites followed by impact assessments for sites with proximity to areas. as a company, and as a society. Owens Once assessments are complete, we can develop mitigation strategies Corning’s commitment to protecting as needed. biodiversity predates the global pandemic, The sites listed in the chart on page 195 have completed Step 1 of the but its onset has further driven home the biodiversity management plan, in which we determine our sites’ proximity urgency of our efforts. to a KBA. Sites that are determined to be within the KBA’s boundaries are prioritized to assess potential adverse impact, and plans are being Intergovernmental Science-Policy Platform on established to assess the remaining sites. Biodiversity and Ecosystem Services (IPBES), Workshop Report on Biodiversity and Pandemics https://ipbes.net/pandemics Journal: Biological Conservation, Impacts of the coronavirus pandemic on biodiversity conservation Photos submitted by: https://www.ncbi.nlm.nih.gov/pmc/articles/ Joshua Lyle | Memphis, Tennessee, U.S. PMC7139249/ Kentucky Lake, Kentucky, U.S.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Protecting Biodiversity | 196 Our commitment to protecting GOING biodiversity will not only inform our internal operations, but it will shape our FORWARD expectations as we collaborate with companies across our supply chain. Protecting biodiversity involves reducing the air emissions that can impact the surrounding environment, sourcing virgin raw materials less frequently, taking less from the environment during the manufacturing process, and limiting the impact we have on the plants and wildlife in our area. To help us realize these goals, we recognize the need to seek out suppliers and partners who share our commitment.
By participating in the SBTN, we will be able to act with the knowledge that our biodiversity goals are aligned with global needs. As we share best practices toward achieving science-based targets, our participation helps us advance our overall objectives and further reinforces our leadership in sustainability efforts worldwide.
In addition, with the integration of IBAT technology, we will continue our data-driven approach. With the information we gain from this valuable resource, we are confident that we will be able to make decisions going forward that deliver optimal results for both our operations and the many species with whom we share the world.
Photo submitted by: Cindie Mills | Toledo, Ohio, U.S. House wren in July.
2020 Owens Corning Sustainability Report | Reducing Our Environmental Footprint | Protecting Biodiversity | 197 EXPANDING OUR SOCIAL HANDPRINT
Our efforts to expand our social handprint include the following elements: ■ Community Engagement. Discover what we mean when we say our people and our products make a material difference in the lives of our Creating a better communities. world means ensuring a ■ Living Safely. better quality of Owens Corning believes all accidents are preventable life for people and the only acceptable number is zero. Learn what we’re everywhere — from doing to keep our people safer — at work and at home. our employees to ■ Health & Wellness. their families to We want people to be healthier because they work at the people in the Owens Corning. Check out the ways we’re helping to communities where ensure the well-being of our employees and their families. we do business. ■ Employee Experience. See how we’re helping our employees grow as people and as professionals, with programs that benefit our people from recruitment to retirement. ■ Inclusion & Diversity. Learn how we’re working to create an environment where people are valued and appreciated — not despite their differences, but because of their differences. ■ Human Rights & Ethics. Photo submitted by: Owens Corning believes it is a privilege to work with Dinal Thakkar | Silvassa, India people all over the world. See the steps we’re taking to Owens Corning Interschool Sports Meet 2020, before COVID-19 restrictions. ensure they are treated with dignity and integrity.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | 198 COMMUNITY ENGAGEMENT
In this chapter: 2030 GOALS STRATEGY & APPROACH INITIATIVES PERFORMANCE GOING FORWARD
At Owens Corning, our people and products make the world a better place — and we put that belief into practice through our many community outreach initiatives. You see our commitment to this guiding principle in the cities where we work, in the neighborhoods where we live, and wherever we have the potential to make a positive impact.
Our outreach reflects our priorities: safe and efficient housing, basic health and wellness, and educational opportunity. We also look for projects that empower our employees to take an active role in their communities. It’s a collective approach to creating a world that’s in keeping with our overarching sustainability goals, as we strive to make a material difference for people everywhere.
Photos submitted by: Yana Danilova | Gous-Khroustalny, Russia Even in the face of a global pandemic, the Gathering rubbish during an ecological people at Owens Corning worked to give back volunteering event in Meshchyora National Park, near the plant. to communities.
Our community engagement efforts align with the Sustainability Materiality Definition: following UN SDGs: Owens Corning strives to contribute to thriving communities, where we work, where we live, and where we have the potential to make a positive impact. The social data in this chapter marked with a + sign were independently assured to a moderate level by SCS Global Services. The social data in this chapter marked with a ^ sign were independently assured to a high level by SCS Global Services. For more information on the assurance process see About the Report, and for our verification statement please see Appendix F.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Community Engagement | 199 2030 GOALS FOR COMMUNITY ENGAGEMENT
By 2030: 100% of our employees are actively engaged in their communities.+
When our facilities engage with their communities, our employee volunteers get to see the difference each individual can make. Some of our facilities conduct multiple community outreach events each year, and we have expanded our global reach through a wide range of initiatives. Through surveys, our employees tell us that working for a company that supports volunteerism is very important to them, and we have seen that their participation in Owens Corning- sponsored outreach strengthens their pride in the company.
As part of our aspirations for 100% employee community engagement through company-sponsored outreach, we are continuing our efforts to engage facilities in community projects. By 2022, we intend to see 100% facility engagement, which will serve as a foundation for our broader 2030 goal.
Our community initiatives are ■ Educational Opportunity (Quality STRATEGY structured around three key priorities, Education — SDG #4). By which are aligned with specific U.N. encouraging learning around the AND APPROACH Sustainable Development Goals (SDGs) world, we believe we can nurture By leveraging our that relate to our global communities. the next generation of leaders and business expertise, ■ Safe & Efficient Housing further our goals far into the future. our financial (Sustainable Cities and Whenever possible, Owens Corning resources, and the Communities — SDG #11). As combines our philanthropic activity capabilities of our a producer of residential and with volunteerism among our incredible people, commercial building materials, we employees, encouraging them to be are well-positioned to help those fully engaged with their communities. we can maximize the who are unable to obtain shelter In addition, we are able to extend our positive impact we through traditional means. contributions through our vast network have around the world. of contractors, whose track record of ■ Basic Health & Wellness (Good Health excellence offers an added advantage and Well-being — SDG #3 / Clean as we seek to advance our efforts. Water and Sanitation — SDG #6). We seek to extend our culture of wellness Photos submitted by: beyond the workplace and into the Dinal Thakkar | Silvassa, India Owens Corning Interschool Sports Meet communities where we serve. 2020, before COVID-19 restrictions.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Community Engagement | 200 The year 2020 brought significant The Owens Corning to the vice president of corporate impact and changes to our strategy Foundation affairs with additional oversight from and approach. The global pandemic the Owens Corning Foundation board. refocused giving efforts, as many of The Owens Corning Foundation is In addition to regular contact with the our normal housing and educational a 501(c)(3) nonprofit organization chief executive officer, the director of pursuits were temporarily suspended. In established in 1978 to enhance lives community affairs reports each year response to the pandemic, the Owens through charitable contributions. The to the full executive committee or a Corning Foundation directed nearly foundation supports Owens Corning’s member of the executive committee to $2 million to support hospitals, food stakeholder communities throughout ensure alignment and support of the pantries and other basic needs in our the U.S. and across the globe through approach to corporate citizenship and global communities. In the meantime, strategic partnerships. Additionally, philanthropy. Each year, the program quarantines and social distancing the foundation engages employees is benchmarked against Giving in ceased nearly all volunteer activity. through multiple programs designed to encourage volunteerism and giving. Numbers, a survey from the Committee By mid-summer, the deaths of George Encouraging Corporate Philanthropy Floyd, Breonna Taylor, and Ahmaud Under the umbrella of the corporate (CECP) on corporate giving and Arbery led many corporate foundations affairs department, we manage our employee engagement at the world’s to increase their support for racial corporate citizenship program. The largest companies. Budgets and equality. Owens Corning’s long- president of the Owens Corning programs are then planned accordingly, standing commitment to corporate Foundation also serves as the with a constant focus on meeting our responsibility leads us to consider director of community affairs and goal of 100% facility engagement by our impact in the wider world, and the is responsible for developing and 2022. Going forward, this process will urgent need to address social issues implementing our companywide also inform our plans to engage 100% around us has strengthened our corporate citizenship strategy. The of employees by 2030. resolve. Owens Corning’s ongoing work director of community affairs reports in this area is described in the Inclusion & Diversity chapter.
CORPORATE AFFAIRS OWENS CORNING’S DEPARTMENT COMMUNITY ENGAGEMENT STRUCTURE
Owens Corning Foundation Board
Vice President of Corporate Affairs
Suzanne Harnett CORPORATE CITIZENSHIP PROGRAM
Director of Community Affairs/ President of the Owens Corning Foundation
Don Rettig
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Community Engagement | 201 Engaging with Our Communities
Our approach to corporate citizenship of our staff, the company usually finds Photo submitted by: begins as we gain an understanding of a way to support them. This year, Michele Mazza | Trophy Club, Texas, U.S. Jim Close, Lisa Bultman, Dan Cochran, and the specific needs of the communities the pandemic has changed the way Michele Mazza present a blanket made where we serve, and we look for ways we engage employees, but we have at Owens Corning’s 2020 Sustainability our employees can get involved. In still seen many instances where our Summit Community Service activity. Photo taken before COVID-19 restrictions. addition, we use a range of metrics to people have taken an active role in gauge our real impact around the world. their communities, which can be seen throughout this chapter. Assessing Local Community Needs. The Owens Corning Foundation Measuring Our Impact. To ensure that provides financial support through our work is both business-relevant strategic partnerships with nonprofit and meaningful to local communities, organizations that align with our we regularly gauge the impact of corporate citizenship strategy and key our corporate citizenship program business drivers. In many instances, we and verify its alignment with our key develop these partnerships to address business drivers. We do this using findings we have gathered from several key metrics, including: community needs assessments, which ■ Facility engagement in community help us identify needs, look for synergy service projects. with our operations, and determine opportunities for volunteering. Our ■ The number of volunteer hours partnerships frequently include and other evidence of employee financial contributions from the Owens engagement. Corning Foundation, product donations, ■ Completion of contractor-related and employee volunteerism. We also projects. provide support through our employee matching-gift programs. ■ The number of Habitat for Humanity builds in each Engaging Our Employees. We community. choose projects to support based on two criteria — their fit with our three ■ The number of homes that have areas of focus and whether there been reshingled or insulated are volunteer opportunities for our through product donations or other employees. We also vet the charities work with strategic partners. that approach us; if the criteria are met and there is interest on the part
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Community Engagement | 202 Key Charitable The Gary Sinise Foundation Additional Contributions Partners In recent years, we have expanded Beyond these key partnerships, we Habitat for Humanity International our partnership with the Gary Sinise offer our financial support, products, Foundation. Founded by actor and volunteers to benefit communities Our collaboration with Habitat for and philanthropist Gary Sinise, the where we work and live. Our Humanity International supports the organization supports U.S. defenders, contributions help in the following areas: building and improvement of homes in first responders, veterans, and ■ Owens Corning communities across Building and rehabilitation of safe, their loved ones. Our partnership efficient housing. the U.S. and internationally. The directly supports the R.I.S.E. company donates building materials (Restoring Independence, Supporting ■ Neighborhood revitalization and employees volunteer their time, Empowerment) program, which builds projects. providing safe and energy-efficient specially adapted homes for severely ■ Construction and support of housing for those in need. Our work wounded U.S. military members and shelters and community centers. with this organization has resulted in their families. building, insulating, or roofing homes ■ Disaster relief. in partnership with more than 2,000 We donate insulation and roofing families around the world. In 2019, products for homes built through the ■ Racial equality. program and work with contractors Owens Corning’s collaboration with Owens Corning also collaborates who volunteer in the construction of Habitat for Humanity International with World Vision, an organization those homes. Our commitment to helped them complete 28 home builds serving children, families, and their supporting safe, efficient housing for or renovations in the U.S., Canada, communities, on projects in which our people in need makes R.I.S.E. a perfect Singapore, and China. donated products make a difference fit for Owens Corning. The men and to individuals whose homes need This year, the pandemic led Habitat for women in our manufacturing plants significant repairs. Through all our Humanity to severely restrict volunteer are often moved and proud to see how 2020 efforts, Owens Corning donated activity, which prohibited nearly all the products they create can make a enough material to reroof 402 homes Owens Corning projects. However, the profound difference in people’s lives. and insulate 76 homes. Owens Corning Foundation provided And for many of our U.S. employees financial support, contributing $225,000 who have family members in the Like many companies, we are frequently in 2020, the final installment of a three- armed services, working with the approached with requests from year commitment. Owens Corning’s in- nation’s veterans is deeply meaningful. charitable organizations. A substantial kind donations to Habitat for Humanity number of requests for one-time For example, in 2020, Owens Corning International exceeded $500,000 in gifts come from the Toledo, Ohio, supplied the roofing and insulation for that same timeframe. These gifts U.S. area, the location of our world a new home for U.S. Air Force (Retired) include insulation and roofing products headquarters. As the sole Fortune to support Habitat for Humanity’s Tech Sgt Matthew Slaydon and his 500® company in the city, we believe it affordable housing efforts. Our wife. Matt was severely injured in Iraq, is important to maintain a significant employees look forward to resuming losing an arm and incurring blindness presence; therefore, we often sign on their volunteer work when possible. in his left eye. Amcat Construction, as a corporate sponsor at events and an Owens Corning Platinum Preferred fundraisers throughout the region. We United Way Worldwide Contractor, donated the labor to install often donate used office furniture and the roof for the couple’s specially As with Habitat for Humanity, much building materials to local charities, and adapted smart home in Colorado, U.S. of our collaboration with United we also allow them to use our facilities Way Worldwide is typically based A recent event for our Certified Energy for events. These donations are all on volunteer opportunities, and that Experts served as a fundraiser for the provided directly from Owens Corning was curtailed in 2020. Our ongoing Gary Sinise Foundation, raising over rather than through the Foundation. collaboration with United Way $80,000 to help with the construction Worldwide has made it possible for of a home for U.S. Army Captain Greg us to address the most basic needs in Galeazzi, who lost both his legs and villages near Owens Corning facilities, part of his right arm in Afghanistan. in ways that benefit those communities Greg is currently finishing his residency for years. We continue to seek at Harvard Medical School, and his opportunities to help communities in smart home facilitates his day-to-day India, China, Mexico, and other sites activities immensely. around the world.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Community Engagement | 203 COMMUNITY ENGAGEMENT INITIATIVES Through our financial support and the help of our people, the Owens Corning Foundation is driving change around the world.
Programming Assistance from the Owens Corning Foundation
North America
Nationwide, U.S. supplies, 60 teacher kits, and 1,000 studying architecture, construction hygiene kits to students and teachers management, or other majors in the Roof Deployment Project. Since 2016, at Chase STEMM Academy and Pickett building sciences field. Owens Corning has partnered with our Academy, another Toledo-area school Platinum Preferred roofing contractors Mexico supported by Owens Corning. in the Roof Deployment Project. Through IBIAS School for the Hearing Impaired this program, contractors are given the In February 2020, Chase STEMM (Tlaxcala). Phase 2 of this project’s opportunity to volunteer their services to Academy students visited our world construction was completed in 2020, a veteran in need, while Owens Corning headquarters as part of the goIT thanks in part to the Owens Corning donates the roofing materials. To date, program, presented in collaboration Foundation’s partnership with the 242 veterans have benefited from the with Tata Consultancy Services (TCS). Mexican Red Cross. During phase 2, program, thanks to our 600+ Platinum The students worked together to create the Foundation provided assistance Preferred contractors. In 2020, we apps that could have a positive impact that went to equipment and décor worked to create a network of charitable on their community. partners, who have expanded access for the school. More than 25 Owens into markets where there is need, making Local Initiatives Social Corporation Corning employees were involved in it possible for more of our contractors to (LISC). The Owens Corning Foundation this initiative. entered into a partnership with LISC participate in the program and helping Home-School Perpetuo Socorro in 2020, committing $1 million in a more veterans. In 2020, we exceeded our (Mexico City) and Social Orientation multi-year commitment to create goal for the program, and 70 veterans for Young Girls Association homeownership opportunities for received new roofs, and an 11% increase (Monterrey). The Owens Corning team families of color in Toledo. Through compared with 2019. in Mexico and their partners raised this program, Owens Corning and over $2,200 USD worth of school Toledo, Ohio, U.S. LISC are working to close the racial supplies, toys and personal protection wealth gap in the areas surrounding Chase STEMM Academy. Owens equipment to protect people from our world headquarters. This program Corning has supported the Chase COVID-19. For several years, the Owens is described in greater detail in our STEMM Academy for 18 years. One Corning Foundation has supported Inclusion & Diversity chapter. hundred percent of the students the Home-School, which provides at Chase come from low-income Bowling Green State University. housing and education for young girls families, and many of their parents The Owens Corning Foundation taken from homes filled with domestic work two jobs, leaving them little time directed a gift of $1 million to support violence. The Foundation continued to to help their children with schoolwork. underrepresented students in the provide financial support to the school By volunteering as mentors, our School of the Built Environment in 2020, funding doctors, teachers, employees are making a difference within BGSU’s College of Technology, drivers, and basic needs. that both the children and parents truly Architecture, and Applied Engineering. appreciate. Each year, our company The gift, to be disbursed over the Photo submitted by: Martha Aragon | Tlaxcala, Mexico also collaborates with the United Way to next five years, will create the Owens Tlaxcala, Mexico, plant leader and the IBAIS School provide 700 backpacks filled with school Corning Scholars Program for students for the deaf community.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Community Engagement | 204 Europe Asia Pacific
Chambéry, France Suzhou, China
La Cantine Savoyarde. Our support Owens Corning helped support a for this organization, which provides primary school here, providing children meals for people in need, primarily the with computer equipment and internet homeless and refugees making their access, as well as training for teachers. way from Italy, has been a mainstay To build on this 2019 outreach, the of our charitable giving in Chambéry, Foundation funded this school, serving meals there since 2017. along with four others, this year. Although the facility was closed to the Our charitable partner in the area is public for months due to COVID-19, NetSpring Green IT, which collects and they continued to serve meals there refurbishes obsolete computers from on a limited basis until their reopening universities for use in migrant schools. in June. In addition to volunteering In addition to financial support from as we are able, the Owens Corning the Owens Corning Foundation, our Foundation also provided funding for Shanghai office’s finance team made the installation of two new cold storage blankets for children at the school rooms in July. which were disinfected and delivered Vilnius, Lithuania — along with greeting cards for the Photos submitted by: students — by NetSpring Green IT. Vijay Kamble | Taloja, India COVID-19 relief efforts. Last year, Kits distributed to needy families. several Owens Corning Paroc plants Mumbai, India began engaging in community Our community efforts in India are outreach through a local food bank. based on a thorough study that United This year, we expanded our support Way Mumbai conducted on villages’ for this community through Owens most urgent needs. The report pointed Corning Foundation funding for two specifically to health, education, and healthcare facilities battling COVID-19. access to safe drinking water. To help address their needs, Owens Corning has set up sanitation and clean water stations, benefiting migrant children attending schools located around our plants. For girls reaching puberty, the addition of bathroom facilities goes beyond basic sanitation needs — it makes it possible for them to The Owens Corning Foundation has remain in school. By continuing their donated about $2 million in 2020 education, they have greater chances supporting pandemic relief — to hospitals, for independence and success as food banks and other organizations in over adults. Much of this work was paused 70 communities around the globe. in 2020 as funding was directed to COVID-19 related support, to help address the impact of the pandemic in these communities.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Community Engagement | 205 Owens Corning Foundation COVID-19 Contributions
Since the onset of the COVID-19 ■ Mt. Vernon, Ohio, U.S.: The Knox ■ Vilnius, Lithuania: Laikykitės, Medikai, pandemic, the Owens Corning County Foundation, for food and for medical supplies and PPE. Foundation has distributed more shelter for families impacted by ■ Vilnius, Lithuania: Vilnius University than $1.95 million in aid to charity COVID-19. Hospital Santaros Klinikos, to fund partners around the world. A portion ■ Newark, Ohio, U.S.: The Licking services. of this funding was used for the OC County Food Pantry, for expenses Cares Fund, which is managed by an Owens Corning made significant related to COVID-19. independent nonprofit. contributions to communities in ■ Ridgeview, South Carolina, U.S.: India in response to the COVID-19 These are just some of the Harvest Hope Food Bank and the pandemic. In addition to donations to organizations around the world One SC Fund, benefiting those local hospitals, we donated food and that we’ve supported in these impacted by business closures and clothing to the families of migrant unprecedented times. unemployment due to COVID-19. construction workers who were ■ Amarillo, Texas, U.S.: Snack Pak stranded in cities away from home due 4 Kids and United Way Amarillo & ■ Rio Claro, Brazil: Santa Casa de to transportation shutdowns and other Canyon. Misericórdia, to provide ICU beds to restrictions. this charity hospital. ■ Atlanta, Georgia, U.S.: The Giving The advanced manufacturing team Kitchen, which provides emergency ■ Rockford, Illinois, U.S.: Rock River at our Science & Technology Center assistance to food service workers Valley Pantry and Rockford Rescue in Granville, Ohio, U.S., worked throughout the region. Mission, to help with COVID-19 with area service agencies and 3D relief throughout the community. printing companies to produce and ■ Brussels, Belgium: The St. Luc distribute face shields. This personal Foundation, which supports the St. ■ Santa Clara, California, U.S.: Second protective equipment was donated to Luc University Hospital. Harvest Food Bank and The Health a nearby children’s hospital, as well as Trust, both of which work to prevent ■ emergency medical service teams and Dorval, Quebec, Canada: Santropol food insecurity. Roulant, a Meals-on-Wheels local physician’s offices. program. ■ Sedalia, Missouri, U.S.: United Way of Pettis County and the Pettis ■ Fairburn, Georgia, U.S.: East Atlanta County Health Center. Kids Club, to help provide services to young people throughout the ■ Trzemeszno, Poland: Szpital region. Pomnik Chrztu Polski, to fund services at this charity hospital. ■ Gous-Khroustalny, Russia: The Health Department of the Vladimir ■ Valleyfield, Quebec, Canada: Café Region, which will also benefit des Deux Pains and Moisson Gous-Khroustalny City Hospital. Sud-Ouest, two organizations that provide food assistance to people ■ Irving, Texas, U.S.: The North Texas in need. Food Bank, to provide meal kits to area families. Photos submitted by: ■ Joplin, Missouri, U.S.: An Enhancing Marie-Dominique Gabillard | Chambéry, France The Chambéry Composites Europe team Lives grant for the Joplin Family provided presents for people in need. YMCA, providing emergency child care services.
■ Klášterec, Czech Republic: Nemocnice Kadaň, to fund services at this charity hospital.
■ Liversedge, U.K.: A cancer research hospital whose annual fundraiser was canceled due to COVID-19.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Community Engagement | 206 Immediate COVID-19 A COLLABORATION This year, Owens Corning partnered Assistance for Employees with one of our customers to provide TO COMBAT 15 reclining beds to public hospitals The OC Cares Fund was created a in Rio Claro, Brazil. Our participation few years ago to help employees COVID-19 IN in this endeavor helped fulfill all three who are facing financial hardship pillars in our sustainability approach immediately after a natural disaster BRAZIL — we expanded our social handprint or an unforeseen personal hardship. through philanthropy, increased our product handprint by contributing Funding for this program comes to the circular economy, and reduced our environmental footprint by primarily from individual donations diverting tons of waste from the landfill. from employees and support from Owens Corning. This fund is usually This endeavor began after Rio Claro Plant Leader Gustavo Sirio met with used to help an employee who has João Teixeira Júnior, the town’s mayor. The two discussed COVID-19’s suffered a catastrophic event such as devastating impact on the region and the need for a new hospital to care a tornado or a fire, and there has often for those who have been stricken by the virus. High demand, however, was been a waiting period while the fund’s making beds extremely hard to purchase. Gustavo was moved to act, and administrators performed the due he asked Bruno Varandas, the plant’s sales manager, to locate a customer diligence needed to demonstrate need. who could help. They realized Cogumelo would be an ideal fit.
In the face of the COVID-19 pandemic, For more than 40 years, Cogumelo has manufactured fiberglass ladders the fund established an Immediate for the construction and petroleum industries, using a process known Response Program, which expedited as pultrusion. As the COVID-19 pandemic has severely diminished those the disbursement of assistance to industries’ demand for new product, Cogumelo was able to redirect their Owens Corning employees in China. production in an innovative new direction. The hospital beds Cogumelo Full-time employees at our sites in manufactured are much lighter than tubular steel or stainless steel beds. China can apply to receive immediate Also, they are 40% to 50% more cost-effective and offer greater durability. financial assistance, which can be Owens Corning provided Cogumelo with seven tons of material that used to acquire PPE, avoid public would have otherwise gone to the landfill. The plant’s supply chain, quality transportation, or cover other expenses assurance, and customer technical support organization teams worked to related to COVID-19. Nearly $400,000 segregate material that would be suitable for the project. USD was given to employees in China, with recipients usually receiving $250 In doing so, the plant took yet another step toward its longer-term waste USD. As the pandemic expanded management goals. “The fact that we were able to deliver 15 beds, which globally, employees elsewhere who had will be used to save lives in our community, instead of sending 7 tons of contracted the virus were supported material to the landfill was very rewarding,” said Gustavo. “I’m proud to be through this program. a part.” In mid-September, the mayor of Rio Claro presented a formal letter of thanks to the plant team, and Owens Corning has already agreed to work with Cogumelo to make more beds if the need arises.
Photos submitted by: Rubens Cardoso | Rio Claro, Brazil Pictured with the donated beds are (from left) Gustavo Sírio, Heleny de Freitas, and Rubens Cardoso, Rio Claro EHS leader.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Community Engagement | 207 SPEAKING OF SUSTAINABILITY
Jonathan Hernandez works in finance for our Insulation business in Mexico. In the four years he’s been with the company, he’s been continually inspired by Owens Corning’s commitment to helping the community near the plant in Mexico City. In a city that large, making connections is crucial, and Jonathan has demonstrated true leadership as he encourages the people at his site to engage with their community.
On the rewards of community engagement On his hope for the future of community It’s satisfying to inspire others, especially when we are engagement at Owens Corning located in front of one of the main universities in Mexico, I’m pleased with the new generations, how they engage very which is preparing future engineers that may work with easily. For instance, three years ago we had a devastating Owens Corning in the future. New generations are very earthquake in Mexico, and the younger members of my team engaged with their community, and they want to work at a organized by themselves. They created this collection of company that is also engaged with the community. When tools and other items, and they contributed their time and they see our outreach, it says to them that Owens Corning money. They created a group inside Owens Corning Mexico is helping. So we create this new idea about Owens Corning that organized the delivery of this help to one of the most and show people how important it is that Owens Corning is affected communities two hundred kilometers away. It’s located in their community. been very surprising how new generations automatically have this desire to help and engage — not because they want On the people he serves a rating in their performance review. They help because they We work with an orphanage near our plant that is dedicated want to do it. And it all helps create an inspirational company to girls between three and 13 years old. We also work with within our surroundings. an area women’s home. They are very vulnerable. They don’t receive much help from the government or other organizations. When you help groups like these, spend time with them, and talk to them, you start to understand them, and you see that they have a lot to contribute. When you listen to their stories, you become more humble, more Jonathan Hernandez sensitive to their situations. I think it has changed my way of Business Finance Leader, BMLA, Insulation, Mexico City, Mexico. defining what is important in life and what is not. Photo taken in Torres del Paine, Patagonia, Chile.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Community Engagement | 208 COMMUNITY ENGAGEMENT 2030 TARGET PERFORMANCE & PERFORMANCE Even in the face of a global pandemic, our employees still found ways to extend Our target is to see 100% of our employees are actively Owens Corning’s social handprint. engaged in their communities.
Number of Volunteer Experiences* As the discussion of our global initiatives in 2020 demonstrates, the pandemic dramatically shaped 10000 our company-sponsored community outreach, and limited the ways our employees could individually participate. In 2020, Owens Corning employees volunteered 3,247 times, down 61.3% from 2019. They devoted 15,690 hours of volunteer time, a 8,401 decrease of 49.6% from the 31,152 hours in 2019. The work is valued at $27.20 per hour, totaling 8000 + $426,768. Our facility engagement was 89%, which 7,132 includes volunteerism and financial support.+
The decrease in volunteer hours in 2020 is directly related to restrictions related to COVID-19. Social distancing requirements prevented our employees 6000 from gathering to participate in home builds, meal kit packing, and other events at previous years’ levels. Even so, we are confident that our people’s commitment to making the world a better place will ensure a return to earlier volunteerism levels once restrictions have been lifted. 4000 Even with the reduction in volunteer hours, our people have still looked for opportunities where 3,247 safe social distancing could still be maintained. The dedication employees have shown is still a driving force in our financial support. In 2020, 6% of our donations were charitable contributions 2000 ($349,237) and 94% ($5,564,320) were community investments.^ Cash contributions totaled $5,010,007, as well as $906,601 in in-kind giving, including $883,898 in product donations, projects/ partnerships, or similar contributions.^
All our giving is accomplished with a management 0 overhead of only $378,661, which includes salaries 2018 2019 2020 and fringes, computer equipment, phone equipment, travel, and other miscellaneous expenses.^ * While our ability to track and measure employee volunteerism improves every year, we are currently only able to track the number of volunteer experiences and not individual volunteers. This number serves as an informative reference as we expand our reach to all global facilities.
The significant drop in volunteer experiences between 2019 and 2020 was due to COVID-19 restrictions. We anticipate that volunteering will return to previous levels as these restrictions are lifted.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Community Engagement | 209 Since 1993, Owens Corning has recognized an VOLUNTEER employee, a retiree, and a team of employees OF THE YEAR every year whose exemplary volunteer efforts have had a great impact on the organizations they AWARDS serve. To honor these volunteers’ involvement and commitment, the Owens Corning Foundation directs a $10,000 donation to an approved charity of their choice. In 2020, the following volunteers have been recognized: VOLUNTEER TEAM OF THE YEAR Granville, Ohio, U.S. — Will Smith, Jason Woodall, and Marcee Richardson. EMPLOYEE VOLUNTEER OF THE YEAR For many foster children and youth, Malissa Moran, Newark Insulation Plant uncertainty is unfortunately a way of life. Having often experienced terrible For young women age 18 to 25 who tragedy already, they are exceptionally have aged out of foster care, or who vulnerable to early pregnancy, have been victims of human trafficking, addiction, and incarceration as they RETIREE VOLUNTEER Kingdom Pillars has provided a path get older. The Granville team has been OF THE YEAR forward and a place they can rely on working to provide a better future for Beverly Mellars-Craney for shelter, food, mentorship, and a these special young people; for years, family environment. And as they have they’ve volunteered with Fostering After losing her mother to lung cancer, set about to establish their Strong Further, a nonprofit organization that Beverly dedicated herself to raising Towers facility, which will provide these supports foster care in Licking County awareness — and funding — to combat women with a safe place to stay as and central Ohio. this disease. She began by volunteering they learn life skills, receive counseling, for the LUNGevity Foundation’s Breathe and start new lives, Kingdom Pillars Will is one of the founders of Fostering Deep Dupage Walk & Rally in Naperville, has come to rely on Malissa Moran. Further, and Marcee has been active Illinois, U.S., and soon began work with since 2016. Both have been active in the a committee of volunteers that raised According to Kingdom Pillars organization’s Grant a Wish program, over $100,000 for lung cancer research cofounder Darcey McCampbell, which provides financial support for and support services. Malissa has been instrumental in experiences and items that benefit the getting Strong Towers up and running. children’s physical, mental, and social Over time, Beverly sought to expand “She was vital in bringing together a health, from fees for sports and other the reach of LUNGevity, and began team of 20 Owens Corning employees extracurricular activities to tutoring a similar event in her hometown of and their families to volunteer in the to specialized car seats. Marcee has Newark, Ohio, U.S. Since 2012, Breathe demolition of a 6,300-square foot also planned a six-week series of Deep Newark has not only spotlighted space, which will be used to house Independent Living Classes to help the LUNGevity Foundation’s work in these young women,” she says. young people gain vital life skills that the area, but it has also raised over In addition to her work with Kingdom will benefit them as they age out of $250,000 for the cause. In addition, Pillars, Malissa has also been active foster care. Jason is a certified foster she educates others on the support in Fostering Further, where she parent and has been active in promoting services LUNGevity offers for lung participated in stuffing 110 backpacks and improving all areas of local foster cancer patients/survivors and their with school supplies for care since 2017. He’s helped Fostering caregivers, and she hosts events and children in the foster Further raise awareness and promote fundraisers each November, which is care system. For many the needs of children in foster care and Lung Cancer Awareness Month. years, she has also been the families providing homes for these “I could not say enough kind things involved in fundraising young people. about Beverly,” says the LUNGevity for Pelotonia, an agency As Valerie Smith, Executive Director of Foundation’s Heather Domabyl, “She that funds cancer Fostering Further, says, “Marcee, Will, lives to make sure that those in her research at and Jason have dedicated many hours community have the support that they The Ohio State to making sure these kids have skills and need, the access and materials to University. memories that can never be taken away make informed decisions about their Malissa has from them — even if they go back home.” health, and that they do not go through what her family went through alone.” directed $10,000 The Volunteer Team of the Year has to Kingdom Pillars. directed $10,000 to Fostering Further. Beverly has directed $10,000 to LUNGevity.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Community Engagement | 210 COMMUNITY IMPACT BY THE NUMBERS+
>$5MILLION CASH CONTRIBUTIONS TO NONPROFIT ORGANIZATIONS FROM OWENS CORNING AND THE OWENS CORNING FOUNDATION
>$2.3MILLION 89% FUNDING COMMITTED IN 2020 WORLDWIDE OPERATIONS TO WORK FOR RACIAL EQUITY IN 2020 ENGAGED IN COMMUNITIES THROUGH VOLUNTEERISM AND/OR COVID-19 RELIEF
>$333,000 >$883,000 RELIEF DIRECTED TO VALUE OF PRODUCT COMMUNITIES IN NEED DONATIONS TO NONPROFIT THROUGH OUR EMPLOYEE ORGANIZATIONS ASSISTANCE FUND
SINCE 2016 242 151 >16,800 new roofs provided to home builds or renovations in the children provided with access veterans in need through the U.S., Canada, and China through to computers Roof Deployment Project Habitat for Humanity International
3,035 1,046,461 48,113 individuals provided with meals packed and served globally hygiene or supply kits packed access to clean water by Owens Corning volunteers
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Community Engagement | 211 Our employees tell us that volunteering GOING is very important to them — something we have seen firsthand over the years. FORWARD While the COVID-19 pandemic surely hindered our ability to facilitate volunteerism at previous years’ levels, we anticipate that once restrictions have been eased, employees will be eager to return to community engagement activities.
We have begun new partnerships to help address issues of racial inequality and provide increased opportunities for members of our communities. This includes pipeline programs supporting educational opportunities for young people that prepare them for the workforce and expose them to corporate career options. In the coming years, this will be a growing focus for our community outreach efforts.
In addition, we anticipate that we will have an even greater ability to have a positive impact in our communities, as Owens Corning’s leadership recently made the decision to increase the amount of funding available to the Owens Corning Foundation in the coming years. Given this level of commitment, which we see throughout our entire organization, we expect Owens Corning to demonstrate tremendous resilience as we emerge from these uncertain times together.
All told, we are well-positioned to build on our 2030 goals toward an even more impactful aspiration: We envision 100% of our employees actively engaged in their communities through company-sponsored outreach. We will continue our efforts to engage 100% of our facilities in community projects by 2022, as a foundation for our broader goal.
Photo submitted by: Ann Malak | Toledo, Ohio, U.S. Christopher Mansfield (left) and Jesse Bailey (right) from our world headquarters at Owens Corning’s 17th full house build with with Maumee Valley Habitat for Humanity.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Community Engagement | 212 LIVING SAFELY
In this chapter: 2030 GOALS STRATEGY & APPROACH INITIATIVES PERFORMANCE GOING FORWARD
Perhaps more than any other time in recent memory, safety is on everyone’s mind. Owens Corning places safety at the center of everything we do. In fact, Living Safely is one of our primary company values, and because it’s one more way we can help create a better world for our employees and their families, we have included it among our sustainability efforts.
We believe that all accidents, both on the job and at home, are preventable, and no number of injuries is acceptable. That’s why we continuously seek to identify hazards, then develop and engineer solutions to help people avoid them. We call our approach to safety the March to Zero, and it’s making a real difference in the lives of our people.
Photos submitted by: Vijay Kamble | Taloja, India We aspire to eliminate all injuries and occupational Taloja plant employees - Material movement with a forklift (top left), employee working on illnesses among employees, contractors, and the plant floor (top right), and daily huddle visitors — at work and at home. with COVID-19 precautions.
Our safety efforts align with the following UN SDGs: Sustainability Materiality Definition: As a company, we are committed to promoting safety for all. We believe that all accidents are preventable, at work and at home. The social data in this chapter marked with a + sign were independently assured to a moderate level by SCS Global Services. For more information on the assurance process see About the Report, and for our verification statement please see Appendix F.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Living Safely | 213 2030 GOALS FOR LIVING SAFELY
By 2030, we aspire to achieve the following goals: ■ Make it impossible for injuries and illnesses to occur. Ideally, we will do this by designing equipment and processes to eliminate risk. When an engineering solution isn’t possible, we will continue to evaluate and implement strong rules and policies and ensure use of appropriate protective equipment to keep people from hazards.
■ In new or newly acquired sites, achieve a level of safety at least equivalent to the rest of Owens Corning within one year.
■ Emphasize the elimination of risks that could lead to the most serious injuries, rather than concentrating on the most frequent ones. We aspire to eliminate all employee, contractor and visitor injuries and occupational illnesses at work and at home. While Owens Corning has a long-standing commitment to safety, we recognize there is still work to do as we keep our eye on our 2030 goals.
In our quest to bring the number of In addition to these strategies, our STRATEGY accidents and injuries at our facilities approach to safety includes the following AND APPROACH to zero, we have several strategies principles, also detailed below: in place designed to mitigate their ■ Emphasis on the prevention of Across all our occurrence. These include the serious injuries and fatalities (SIF). operations, we are following, which are detailed below: ■ Access to non-occupational health united in our efforts to ■ Occupational health and safety services. keep our people safe. management. Our Environmental, Health, Safety, and Our strategies will ■ Environmental, health, and safety be invaluable on our Product Stewardship Policy describes (EHS) committees. our commitment to the highest march to zero injuries. ■ Hazard recognition and control standards regarding our products and (HRC) programs. processes, and the well-being of our employees and communities. Any entity ■ Application of Total Productive doing business with Owens Corning Maintenance (TPM) principles to is expected to follow the principles safety initiatives. contained in this policy, and when considering an acquisition, Owens Corning evaluates the health and safety practices of the target’s operations prior Photo submitted by: to purchase as part of our due diligence. Hannah Thurauf | Gastonia, North Carolina, US Tony Cedillo on the stairs.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Living Safely | 214 Safety at Non-Owens Corning Sites Occupational Health & Safety Our collective bargaining agreements Management contain all these provisions at the When employees are assigned to work local level, as well as procedures Our ambitious safety goal requires at facilities not controlled by Owens for resolving issues affecting a safe participation from every individual Corning, these employees assess the workplace. risk of their tasks and in the general affiliated with Owens Corning — work environment. If the level of risk is employees, contractors, and visitors Owens Corning identifies and avoids not acceptable, they will discontinue alike – in our manufacturing facilities, hazards through qualitative and their activities until risk-mitigating offices, warehouses, laboratories, and quantitative surveys and a corrective/ actions are completed by the owner other properties. Employees influence preventive action process. Our of the facility. If necessary, our EHS health and safety processes and approach to health and safety uses personnel visit these facilities to assist protocols by providing input through several tools, including job hazard with risk assessment and help develop safety teams and committees, all- analysis and risk assessments, risk mitigation strategies in partnership plant communication meetings, crew structure hazard assessments, with the site owners. By empowering meetings, shift huddles, training teams product hazard analysis, failure mode our staff to take action for their own and sessions, and subject-specific and effects analysis, permitting safety, Owens Corning ensures that our safety teams or committees. In processes, pre-job hazard analysis, employees are safe no matter where addition, we employ safety tagging, a and Stop-Think-Act-Review (STAR) they are, and they can model good TPM-driven practice. Cards, in addition to other engineering safety practices for others. processes and controls.
Hazard Recognition and Control (HRC)
SAFETY Spotting hazards is a learned skill, and the HRC program teaches TAGGING employees to break the human tendency to overlook familiar objects ■ Equipment is inspected and situations, which can cause people to miss risks. Through the program, and audited. employees learn specific techniques to identify hazards, quantify risks, and develop effective ways to minimize or eliminate them.
■ Tags are placed where safety issues are spotted, making them immediately apparent.
To date, approximately 2,000 employees globally have achieved ■ Open tags can be tracked HRC certification, to completion, ensuring including 180 in 2020. that issues are resolved.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Living Safely | 215 Total Productive Maintenance (TPM)
TPM is the management system team, so the safety perspective is built Owens Corning uses to improve into each of the pillars. We are building manufacturing productivity. It is EHS into the phase-gate approval also a mindset that empowers all process using TPM Early Management, employees to proactively address to standardize the way safety is issues that could cause losses. TPM incorporated into new projects. works hand in hand with advanced manufacturing and process excellence As employees in the plants perform to deliver world-class manufacturing their daily work, for example, they are performance in support of Owens constantly monitoring the equipment Corning’s growth strategy. See page 83 and the environment for indications for more information. that maintenance or other intervention is needed. With TPM, all employees TPM also strengthens our safety are accountable for watching for culture across the company. In fact, we developing hazards. This improves have now assigned a senior EHS leader efficiency in our operations as well as to each enterprise-wide TPM pillar safety for our people.
Last year, our plant in Gous- TPM IN Khroustalny organized a new ACTION maintenance workshop. While a great deal of new equipment was installed, AROUND some older equipment remained, including a vise and some drilling OUR SITES machines. Although no incidents were recorded, the team there recognized the potential for safety risks. They employed the TPM principles of planned maintenance and autonomous maintenance to make improvements to the equipment, mitigating the safety risks and creating a safer, more effective workspace for our employees. A deep cleaning and paint job made the area more visually appealing as well.
Our plant in Guangzhou has used TPM to address a wide range of potential safety issues. They have begun using freight elevators to lower facing rolls, footpaths throughout the plant have been redirected to avoid forklifts, and guarding has been installed at facing unwinding machines. In addition, projection signage on floors throughout the site now provides conspicuous warnings for workers.
Photo submitted by: Merry Qu | Qingdao, Novia, China Employees standing in line for daily COVID-19 screening (top). TPM coaching meeting (bottom).
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Living Safely | 216 Preventing Serious Injuries Owens Corning learns from incidents and is & Fatalities (SIF) ADVANCING continuously evaluating the implementation of our efforts to reduce the risk of SIF within our Like many other companies around FROM THE operations, especially associated with non-routine the world, Owens Corning is thinking “CRITICAL SIX” tasks and maintenance activities by employees differently about the best ways to prevent and contractors. serious injuries and fatalities (SIF). In TO SIF For years, our Critical Six program was the core of the past, it was believed that serious our safety initiatives, designed to reduce the risks within our operations. injuries and fatalities were caused by the same issues as more common and In 2018, we began the work of building on these strategies, expanding and minor injuries. Newer studies — and our adding to them to address our evolving approach to safety. We began rolling out own experience — demonstrate that the standards that support our focus on SIF incidents, and in 2020 we added to our factors that contribute to SIF events are list of new and revised standards and best practices. The work to refresh our often very different. standards helps ensure that they align with current global regulatory standards. We’ve also taken what we’ve learned from the original standards and clarified We now track incidents with high areas where there was confusion or where standards were not accomplishing potential for SIF as a separate what we had originally intended. In addition, we’ve updated language to include category, which helps us focus on less emerging technologies. common but potentially more severe hazards. Identifying and eliminating the Our SIF standards now include: precursors for these incidents is the ■ Lock/Tag/Try. ■ best way to reduce all injuries. Warehouse Safety (originally part of PIV). ■ Electrical Safety (originally This focus on severity also requires part of Lock/Tag/Try). ■ us to work to eliminate precursors to Working from Heights. SIF even when no injury has occurred. ■ Confined Space. ■ Automobile Safety. When a near miss occurs, we must ask ourselves, “What if?” As safety incidents ■ Machine Guarding. ■ Hot Work Safety — both injuries and near-misses — are (a new standard). ■ Powered Industrial reported and we conduct proactive risk Vehicles (PIV). assessments, we evaluate them based on how severe the injuries were or might These changes came about because of our constant reappraisal of what is have been. The most serious will get working best in our internal safety efforts as well as industrywide best practices. immediate attention. Further refinements are already planned as we make our way to 2030.
Photo submitted by: Jan-Christian Stenroos | Parainen, Finland Safety lock box at the Owens Corning Paroc When a near miss incident Parainen, Finland plant. occurs at an Owens Corning site, we ask ourselves, “What if?” This helps us understand the potential consequences of every risk we uncover.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Living Safely | 217 EHS Committees Incident Reporting and Investigations
Our safety goal can only be met Our policy states that employees are expected to insist on quality and effective safety through the active engagement of our training before starting any job or task. As a result, employees are also expected employees in promoting safety and to stop and report unsafe behavior or any work procedure that puts themselves or identifying and reducing the risk of others at risk. injury. Because tasks vary at different When an incident does occur, our procedure is as follows: plants, facilities have established a variety of EHS initiatives, and all employees and management are encouraged to take part in them. A safety incident The incident is The incident The incident is occurs. reported to plant is recorded classified Initiatives include the following: according to (Near miss, first aid, leaders and the in our central EHS team. database. its severity (or ■ Oversight safety committees. or injury) potential severity). ■ Behavior-based safety observation teams.
■ Hazard recognition teams. ■ Serious Injury and Fatality (SIF) Owens Corning Investigates prevention initiatives.
■ Human performance improvement teams.
■ Green teams (environmental).
■ Employee wellness teams. We record: All reports are Representative safety teams at ■ The nature of the incident included in our database each plant communicate employee ■ What caused it for further review and ■ concerns, then review and roll Actions taken analysis. out plant safety programs. The safety team is responsible for communicating plant leadership Sharing Lessons responses to safety concerns and programs brought through the A cross-business team of EHS leaders time reviewing SIF-potential incidents. safety committee. The team is also meets each week to review incident SIF or SIF-potential cases are reviewed responsible for sharing best practices reports and discuss the lessons each week by a cross-business team at their plant, and they share these that were learned. Through our SIF of EHS leaders who take the learnings findings among other facilities by tracking and analysis, we’ve come to from those incidents back to their submitting best practices to the understand that many of our most respective businesses to share the enterprise safety website. frequent safety incidents are business- learning and implement corrective specific, while SIF-potential incidents actions to prevent similar occurrences. are not. For example, employees in our At the local level, incidents are reviewed Composites plants handle glass fiber during each shift’s daily meeting. These directly, so safety incidents involving meetings, which are a regular part glass fiber are likely to be more of our operations, are an opportunity frequent than in our Roofing business, for the team to share and discuss where employees do not handle glass topics ranging from plant production fiber as often. Meanwhile, the potential metrics to participation in health and for SIF incidents exists across all our wellness activities. The incoming businesses. workers are briefed on current working With this in mind, each business’s conditions, including safety concerns safety team reviews high-frequency or investigations that are in progress, incidents separately, allowing the and they have the opportunity to ask cross-business team to spend more questions and provide suggestions.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Living Safely | 218 Risk Assessment & Controls Risk identification is an ongoing process Detailed Risk Assessment that includes the following steps: for Health & Safety Owens Corning completes a detailed ■ Complete a detailed risk Owens Corning has systems in place risk assessment of high-risk conditions assessment of each task prior to within a facility, as well as prior to to ensure that potential occupational starting it. exposure to hazards is recognized, starting each task. We have developed understood, and effectively mitigated ■ Complete a detailed risk a risk assessment calculator tool throughout our global operations. assessment of high-risk conditions that helps users assess the risk as within the facility. well as the controls. The calculator This is achieved through our generates a risk score based on comprehensive and rigorous focus on ■ Conduct a root cause investigation the complex relationships between exposure control, as well as a traditional if an incident does occur. severity and the hierarchy of controls. approach to employee health screening Although traditional risk assessment ■ Develop corrective actions to where appropriate. As a result, there are calculations multiply frequency by prevent recurrence of incidents. no worker groups with a high incidence severity, we are exploring a new scoring of occupational disease. ■ Share learning across the site and system that removes frequency from between sites, as appropriate. our calculations. This is in keeping with We also work to understand and control our commitment to SIF prevention, as exposure to hazards that might cause Risk assessments are conducted in we believe incorporating frequency can injury. Safety procedures are in place new facilities or on new operations provide misleading results in which a for specific hazards, including handling within existing facilities to predict and minor but common hazard might be chemicals or hazardous substances. address potential health and safety scored higher than a rare, serious one. issues. We are working diligently to In 2020, Owens Corning developed prevent new hazards from entering our After identifying a risk, assessors take a global EHS standard for hazard facilities while also understanding and the following steps: communication and chemical addressing the risks at new facilities. management, which employees can 1. The potential severity of the risk is view on our internal website’s hazard rated as SIF, significant, or minor. communication page. 2. Each control type is rated (passive We’ve conducted virtual Risks are ranked based on the engineering, active engineering, health and safety following: warning, administrative, and assessments, despite the PPE) according to the assessor’s ■ Frequency of exposure. COVID-19 pandemic. We’ve confidence in the control’s also begun to expand our ■ Potential severity of an injury. effectiveness. remote capabilities and ■ Likelihood of an incident. build out the skill sets of our 3. Each selection is weighted and people at their local facilities. scored, generating a score for the ■ Level of controls in place. We expect to continue controls and a severity score as This risk ranking system is used to leveraging these skills once well as a total risk score. prioritize projects, identify resource the pandemic is over. requirements, and allocate working 4. Based on the points, the risk is capital across the company. This categorized as low, acceptable, system is also used to measure unacceptable, or dangerous. risk reduction at all levels — plant, If the risk is categorized as business unit, and corporate. unacceptable or dangerous, a This enables us to hold leaders mitigation plan is required. When accountable for reduction targets incidents do occur, an investigation into and to obtain the most risk reduction the root causes is conducted. benefits for the resources allocated.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Living Safely | 219 Photo submitted by: Rupak Karmakar | Silvassa, India (From left to right) Alok Ojha, Tribhuvan Prasad, Dharmendra Singh & Rakesh Mishra.
an incident occurs. Based on what we learn, we regularly review and update the status of management systems the metrics and scoring system. during scheduled audits. After Developing and Sharing Action Plans assessments are completed, we Through data mining, exposure obtain a published report. All items reconstruction, statistical analysis, Each site develops action plans identified for improvement in the corrective action tracking, and more, to eliminate or reduce its top report are incorporated into the facility we can use incident reporting to risks. Internal teams conduct site improvement plan. Critical items generate insights and support the work assessments that contribute to are called out and directed to the we do regarding safety standards. the enterprise risk management vice presidents of sustainability and For example, the data reflected that assessments that are completed for operations for review, and to senior machines represent significant risk the audit committee and the board EHS leaders for further action. potential to our employees, which of directors. Business unit managers in turn led us to conduct full risk regularly discuss work-related risks. Using Data to assessments of machine guards These discussions are then shared Improve Safety at every location globally. Similarly, among our EHS teams, the executive incidents involving powered industrial management team, and the board Access to data is one essential vehicles, such as forklifts, are the of directors on a quarterly basis, element in our March to Zero. largest category of near-misses with resulting in additional action plans for Historical data, current data, and key SIF potential, distinct from recordable the entire organization. performance indicators all give our injuries. This has led to a focus on safety teams the insights they need These quarterly formal business- finding innovative ways to improve to track performance, identify trends, unit reviews of our safety model are safety related to these vehicles. and tap into real-time metrics that help then used to develop a continuous ensure prompt action. In 2020, we Predictive Analytics improvement program. Our regional continued our work to develop safety leaders conduct periodic plant Our goal is to use the data model dashboards and broaden the use of inspections as well as provide support we’ve built to identify key factors and our database to track remediation and growth opportunities to each of predict the risk of incidents based on efforts, although progress was slower their plants. In some cases, regional historical data. We have taken several than expected due to resources being leaders collaborate across divisions steps regarding leading indicators and redirected to COVID-19 management. to help eliminate hazards. Owens are looking forward to incorporating Corning also operates a corporate Insights from Data additional initiatives toward that goal. EHS assessment department, which As an example, we have been using thoroughly reviews EHS processes at In addition to the number of injuries, predictive analytics to develop a every site at least once every three to the data allow us to track other mathematical model that can identify four years. valuable information such as SIF near- miss frequency rate and the number the relationship between factories When required by our customers, of days employees are out of work due and the risk of injuries. Being able to we also obtain third-party safety to injury, offering a continually updated help predict incidents can help plants certifications, such as OHSAS picture of our safety. The monthly mitigate their risks, which can serve as 18001/ISO 45001, which cover data collection and analysis give local an important step in reaching our goal approximately 23% of our sites. Our leadership visibility into the changing of zero injuries within our facilities. global safety and environmental level of risk and the opportunity to organization verifies and documents intervene and reduce that risk before
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Living Safely | 220 COVID-19 clearly had a major impact on our SAFETY safety initiatives in 2020. As we implemented INITIATIVES policies and procedures to confront the The actions we have taken issues presented by COVID-19, we saw to prevent the spread of This year has made the need that our long-standing culture of safety COVID-19 are part of a for safety even more clear. helped our workforce adapt quickly to new larger framework of crisis We’ve expanded our safety protocols, without detriment to our overall management — it’s part of efforts without losing sight safety progress. Because of this, we could our overall commitment to continue to expand our SIF program as well of everyday concerns. remaining proactive and as managing our routine safety initiatives. vigilant, and we believe With the arrival of COVID-19, new strategies it will serve us well in the needed to be implemented, and concerted post-pandemic world. efforts needed to be applied to ensure companywide compliance.
In December 2019, Owens Corning finalized and approved a revised crisis management plan, CRISIS designed to provide a comprehensive framework for responding to a broad scope of crises. The MANAGEMENT new plan, which was implemented in early 2020, before the start of the COVID-19 pandemic, offers a simple, fit-for-purpose process that’s easy to understand and follow and aligns to our natural business structure and culture.
The revised crisis management plan addresses three primary types of crisis.
■ Emerging Issues. Situations ■ Business Interruptions. Incidents ■ Emergencies. Incidents that that may threaten the company’s that disrupt manufacturing or other threaten human life, safety, health, reputation or its organizational, legal, processes essential to the mission property, or the environment. or financial stability. These include: of the company. These include: These include: • Environmental or regulatory • Critical utility outages. • Workplace violence. concerns. • IT system failures and • Natural disasters. • Product liability. disruptions. • Terrorism. • Leadership or management • Labor action or strikes. • Chemical/environmental spills issues. or hazards. • Trade restrictions. • Kidnapping and ransom. • Social issues. • Fire and explosion. • Protests and demonstrations. • Widespread disease outbreak. • Theft or loss of intellectual As the last bullet point above illustrates, property. it was fortuitous that the company • Loss or breach of data privacy. established a more robust crisis management plan just before the global pandemic began to impact our employees and operations. The structure we have in place now has made it possible for us to react to COVID-19 in a way that we believe has positioned us to weather this crisis and keep our people safe.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Living Safely | 221 THE COVID-19 MANAGEMENT TEAM Preparation. Protection. Prevention.
In January 2020, Owens Corning’s executive committee met to activate the newly developed Crisis Management Team. At that meeting, they discussed reports of a new strain of coronavirus that had infected dozens of people in Asia. As the months went on, the Crisis Management Team established a special COVID-19 Management Team (CMT) to address what was shaping up to be a serious threat to people’s health and well-being the world over.
The CMT has worked to offer guidance and develop policies for sites and employees, to protect the safety and well-being of our employees while maintaining business continuity. With oversight and direction from the executive committee, the CMT has developed resources to guide leaders throughout the company as the pandemic has evolved.
Our commitment to a safe work environment has led to a range of protocols that apply to our employees, contractors, and visitors. ■ Social Distancing. In our facilities, we’ve created protocols and adjusted our workflows and physical environments to enable employees to stay at least six feet apart. When this is not possible, PPE is required.
■ PPE Usage. We have developed guidelines for use of masks, following standards set by the World Health Organization, the Centers for Disease Control, and other national bodies. Enhanced protocols are in place for higher-risk sites.
■ Visitor Restrictions. Visitors are not permitted unless deemed essential by the site leader. When they are permitted, they are subject to a health screening and are denied entry if they are exhibiting signs of illness or have had contact with a confirmed case in the past 14 days.
■ Enhanced Cleaning. Following guidelines for cleaning products set by the Environmental Protection Agency, we have established robust cleaning procedures as well as what PPE should be worn during cleaning. In addition, the insight we gained from our employees through our COVID-19 survey led us to provide options for employees that had a positive impact on people’s health and safety. We established mask-free break spaces in our plants, which give individual employees a place to briefly cool off and get some water while maintaining appropriate social distancing protocols. Survey feedback from employees also led to adjustments to our return-to-office approach. As we continue to monitor the pandemic (and of course, hope for it to end), we will evaluate and adjust our policies and guidance as needed to protect our employees.
Photo: The CMT Team, from left to right: Jim Gibb, Lynn O’Brien, Chris Spegele (top) Stacy Litka, Geoff Walter, Kristine Raad (second row) Brian Linder, Todd Romain, Suzanne Harnett (third row) Paul Townley, Suzann Trevisan, Kate Lucius (bottom) Not pictured: Frank O’Brien-Bernini, Umberto Rigamonti
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Living Safely | 222 Personal Protective A SOURCE Beginning in the earliest days of the COVID-19 Equipment pandemic, Owens Corning’s safety and FOR SECURITY sourcing teams have had their problem- To reduce the risk of injury across solving skills put to the test. To help keep our the organization, personal protective Owens Corning and PPE employees safe and mitigate disruptions in equipment (PPE) is provided to our operations, they have been called on to all applicable workers, and PPE track down much-needed personal protective equipment (PPE) — and they have requirements are clearly posted risen to the challenge all along. in work areas. Visitors to our sites attend safety briefings and must The Toledo-based safety team began accumulating PPE in January, just as wear appropriate PPE as they tour news of the virus was making its way into the public consciousness in the U.S. A our facilities. We continuously apply temporary distribution center was established at the corporate office in Toledo, lessons learned from individual and supplies were shipped wherever they were needed. The first recipients were incidents to reduce the risk of repeat in China, who also received masks and hand sanitizer from Korea. occurrences, and we update PPE As the virus spread around the world, the need for PPE grew. Now it was China requirements or equipment as needed. who was being asked to return the favor and ship PPE to Korea, the U.S., and In addition, we work closely with Europe. According to Lucy Song, sourcing leader for Owens Corning Asia-Pacific, trusted vendors, safety suppliers, and “We feel honored to act as a sourcing hub at this difficult moment, to protect other third parties, which provide us our fellow colleagues’ safety and health, and to support the company’s business with PPE, training support, information continuity.” on best practices, and a platform for advancing operational safety globally. Due to tighter restrictions on exports and reduced routes for cargo, a detailed process had to be put into place. This included confirming equipment As PPE shortages became major requirements, screening suppliers, reviewing export regulations, and confirming news stories, employees at our world delivery services, such as FedEx or UPS. To speed delivery, team members have headquarters and our sourcing team taken masks directly to airports from the producer’s site or the Yuhang plant for began accumulating PPE materials customs declaration. such as masks as quickly as possible — even venturing out to big box home Owens Corning sites periodically complete a survey detailing their current improvement retailers. Their ingenuity in supply and submit requests for additional supplies. Safety and sourcing leaders purchasing PPE enabled us to avoid site from all regions meet regularly to review those needs and coordinate efforts to closures and maintain productivity to fulfill the requests. With all this in place, we can take some comfort in knowing, the best of our abilities. even as we continue to face this pandemic, we can rely on the resourcefulness, ingenuity, and collaboration of our safety and sourcing teams around the world. Emergency Preparedness Procedures More information about our companywide response to the pandemic can be found in the Health & Wellness chapter, and our contributions of PPE and The emergency response standard funding can be found in our Community Engagement chapter. applies to all facilities and worksites where Owens Corning has management control. (Owens Corning has management control at all facilities or other properties where it owns 50% or In addition, our emergency response Each Owens Corning facility has an more of the stock.) An emergency is standard requires that each Emergency Response Team (ERT) defined as a serious, unexpected, and location conduct an assessment who are prepared for and can respond often dangerous event that poses an to identify potential emergencies to a local emergency, such as a immediate risk to health, life, property, that are reasonably foreseeable or natural disaster or an interruption of or environment, and which requires credible for their location, taking into business operations. Specific employee a coordinated and rapid response. consideration a list of emergency assignments are required for different Emergencies are typically handled at the scenarios such as fire and explosions, scenarios, and each site’s plan must local level. If any of our employees are weather emergencies and natural include training employees to ensure a assigned to a site where we do not have disasters, spills, violence, utility safe and orderly evacuation, as well as management control, a safety review, failures, and more. That assessment procedures to be followed by employees including emergency procedures, is is documented and used to evaluate who remain to conduct critical plant conducted by Owens Corning. As with internal and external emergency operations before they evacuate. Drills, all safety matters, our employees are response capabilities. It is to be inspection and testing protocols ensure instructed to report if they feel their reviewed annually or as operational that the emergency response plan and work environment isn’t safe. or organizational changes occur or equipment are adequate. following an incident.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Living Safely | 223 Each site also has a specific Safety Training ■ Human performance improvement. Emergency Response Plan (ERP) that ■ Incident investigation. addresses all emergency scenarios Safety training begins with Owens identified as reasonably foreseeable or Corning new-hire orientation; in We typically offer EHS training sessions credible. At minimum, each site’s ERP fact, we recognized in 2020 that too on topics such as these at our science must address the following emergency many injuries were occurring among and technology center in Granville, scenarios: individuals who were either new to Ohio, and at other facilities worldwide, Owens Corning or new to their position. although this has not been possible ■ Medical emergencies. As a result, we improved our mentoring during the pandemic. The pandemic has ■ Environmental spill/release. process to reduce those injuries. Safety accelerated our efforts to expand the training then continues throughout an knowledge of local trainers, in addition ■ Fire/explosion. employee’s tenure, with activities such to exploring ways of conducting ■ Bomb threats. as daily safety huddles, scheduled effective training remotely. monthly sessions, and annual refresher ■ Suspicious packages/devices. courses. A formal safety mentoring Translation of Safety Materials into Local Languages. Significant health and In 2020, we developed new emergency program has been implemented in 80% safety procedures are provided in local lockdown guidelines, which provide of our Roofing plants, leading to deeper languages to ensure all employees have Owens Corning plants with information understanding of safety protocols for access to information that can prevent needed in the event of an active both mentors and mentees. For major injuries and potentially save lives. assailant on the premises, workplace programs, training is designed and violence, or unrest — anything that deployed by corporate-level safety Contractor Safety Handbook. In threatens employees in the workplace leadership with support and input from addition to ensuring safety among our and would require an immediate plant and other relevant personnel. employees, we are equally committed shutdown of the plant while keeping Safety leaders also work with business to the safety of contractors working the people on-site safe. partners to provide specialized training, with our company. All contractors such as driver safety for our sales team receive a Contractor Safety Handbook, Emergency Alerts and personal protective equipment and it is their duty to ensure they are (PPE) support for our facilities. Owens Corning uses an emergency aware of and up to date with EHS laws alert system to notify designated All employees receive regularly as well as Owens Corning policies groups of a significant emergency conducted EHS training on employee and expectations. Owens Corning affecting any of our locations globally. health and safety standards. We also provides training to guarantee If an emergency results in significant develop an annual training matrix, and that contractors understand that their injury or operational disruption or our facilities use a common web- commitment to working safely must becomes a crisis, a facility leadership based platform with standard training be unconditional. In 2020, we finished representative must activate the modules through our global corporate translating this handbook, which was emergency notification procedure intranet. Those are supplemented by updated in 2019, from English into all 17 as soon as practical. Examples of site-specific education. This system of Owens Corning’s standard languages. triggering events include: serious injury is fully integrated with our talent Workplace Violence Training. In or fatality, kidnapping or disappearance management structure and provides 2020, we completed the update to our of an employee, incident with the ability to customize learning plans workplace violence training, and we significant impact to operations (e.g., for individuals. began the process of introducing it to natural disaster, fire/explosion, utilities our employees. Of course, the COVID-19 failure, environmental release), incident Global EHS professionals involved in pandemic made a traditional rollout with news media involved, workplace our safety programs receive advanced difficult, as it complicated our ability violence involving weapon or resulting safety training. Our EHS Skill Building to establish clearly defined deadlines, in injury requiring off-site emergency events are one-hour sessions that allow but the training was introduced to medical attention, site/plant evacuation our EHS leaders to gain additional, salaried employees around the world for cause, incident response requiring practical, state-of-the-art knowledge — throughout the Americas, and with a emergency services, local strike or on specific topics. We host periodic new emphasis on Europe and Asia- labor unrest impacting Owens Corning, meetings with our EHS leaders to review Pacific. Delivering the training to our or a bomb threat. strategies, share best practices, and provide technical training. primary employees provided additional In 2020, we began piloting a new COVID 19-related challenges, as this protocol to provide mass notifications In-depth training on diverse topics typically involves bringing employees in the event of emergencies, or to notify includes: together in one room to deliver the employees of measures they should ■ Proper fall-protection strategies. necessary information. We expect to take to protect themselves. have a virtual version of this training in ■ Ergonomics. place in 2021.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Living Safely | 224 PowerLift Training Video. In 2020, must attend and provide appropriate Through the program, over 30,000 Owens Corning made this video safety training for their employees. We individual safety programs have been training program available to introduce conduct behavior-based observations, reviewed, and in 2020, 2,862 insurance employees to a better way of lifting walkthrough inspections, and audits to certificates were reviewed. This heavy objects, one they can use ensure that contractors maintain the work helps us understand gaps and to protect their backs at work and health and safety of our workplace. standardize how we manage risk when at home. There are two translated working with our contractors. It ensures We also have consistent processes versions of the video (in English and that all contractors performing work for prequalifying and measuring Spanish) and six subtitled versions with moderate or high SIF potential contractor performance associated (Chinese, Dutch, French, Polish, at Owens Corning sites in the U.S. with large-scale projects within our Portuguese, and Russian). The video and Canada have been verified to our facilities, and for contractors we can be viewed by individuals or standards through an external party. directly manage. In 2018, however, we presented in a group training setting. identified gaps and inconsistencies in Cellphone Policy. Owens Corning SIF Policies our contractor processes for smaller is concerned with the safety of its projects or ongoing maintenance of employees, regardless of where they With our increasing emphasis on SIF our facilities, and a cross-functional work or which activity they perform. prevention, we have been evaluating team met to assess various methods The ubiquity of cell phones has created and updating our corporate safety for prequalifying all contractors a safety issue, and countless studies standards. that perform work (other than low- have shown the extent to which cell Machine Guarding Implementation. risk activities) at our sites. The phone users are distracted. Whether our Because of the nature of our operations, group proposed a new Contractor employees are busy in production work employees must work with and Management Standard that establishes areas, taking the stairs in our facilities, around industrial equipment. Based on the minimum requirements to or walking or driving in parking lots, we incident reporting and investigations, prequalify, select, orient, monitor, and have very specific rules about the use of we recognize that machines represent evaluate contractors who perform cell phones. higher risk work at Owens Corning significant risk potential. Worker We instituted a ban on the use of cell sites globally. exposure to machines was a primary phones to conduct company business factor in 44% of our 2020 recordable Owens Corning worked with ISN, a while driving, and at all times when incidents that had SIF potential. global leader in supplier and contractor driving in our sites’ parking lots, as far In 2020, we continued our efforts to management, to enhance and back as 2012. Signs about cell phone conduct full machine-guarding risk streamline the process of verifying use are posted at strategic locations so assessments at every location globally. that contractors met Owens Corning’s that employees are reminded that these Our first phase of implementation standards and would be compliant are safety rules, not mere suggestions, included locations representing different once the new criteria were instituted. and that every individual is responsible regions, businesses, and facility size, ISNetworld, ISN’s system, facilitated for ensuring we are successful in our which helped us gain insight about the establishing and managing contractor efforts toward zero injuries. process and streamline deployment. qualification requirements. As we identified improvement The new Contractor Management Photo submitted by: opportunities, we created and shared Standard, initially deployed in the U.S. Claudia Cantu | Houston, Texas, USA corrective actions. and Canada in October 2019, has (From left to right) Jesus Gonzalez, Linda Celaya, and Malcom Harris. While COVID-19 has hindered our begun to be introduced globally in 2020, ability to move forward at the rate extending into Europe. The software to we would have liked, our work here is support the program in Europe is being leading to improvements throughout completed this year, and we expect it to our operations. In addition, we now be implemented in 2021. have several employees across our operations who have become certified as machine safety experts, making them better equipped to assess machine guarding, which will lead to further benefits in the future.
Contractor Management. Since contractors who work with Owens Corning are held to the same standards as the company’s employees, they
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Living Safely | 225 SPEAKING OF SUSTAINABILITY
Flavio Striseo Throughout his career, Flavio Striseo has made ensuring an accident-free environment a priority. As a plant leader at our facility in Besana, Italy, Flavio feels real accountability when it comesto keeping his fellow employees safe. He recognizes the importance of having the right processes and equipment in place, and then inspiring people to adhere to safe practices. Flavio’s insights here demonstrate that commitment, and they’re right in line with the principles that drive Owens Corning on our March to Zero incidents.
On understanding the human component in a On the importance of the March to Zero safe work environment accidents
Keeping people focused on safety is not easy. I heard once In my plant, we had a record period of four years with zero during a town hall that to evolve, human beings need to find injuries. But we’ve also had a year with one injury, then new challenges and overcome barriers, so human evolution another year with zero, and so on. When we talk with my does not happen through safe behavior. Making a safe leadership team, we discuss that between one and zero, environment means really changing this perspective that’s there is a huge difference. If you divide one by zero, it’s inside us, so what you have to do in the plant is engage infinite — it’s a big step. And what makes the difference is people to be as rational as possible. Leadership presence rationality. You need to really take into account all the risk in the field — training people to make evaluations correctly, and try to eliminate those risks one by one. But another understand the machine very well, and use TPM is the important thing is human behavior. That is the part that functional part that really drives safe behavior. Not following makes a substantial difference, because good knowledge our human nature, but following more a rational path during of people leads to increased training, risk evaluation, the work. So, in two words: stop and think. awareness, and communication. These are the big topics we need to reinforce and push, because it helps our people do On Owens Corning’s dedication to safety their job in the best way possible. The reason I think Owens Corning is a special company is that safety is not only a priority, but it’s really a value, and this is much bigger than a priority. We really care about people, and I think that this pandemic really highlighted that health is very important for us. We also consider safety a personal responsibility of each one of us, especially as a Flavio Striseo leader. And this is a really long-term vision that we help our Plant Leader, Composites, Besana, Italy. business, and I think this makes Owens Corning different. Photo taken with daughter.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Living Safely | 226 Partnerships in Safety work when the COVID-19 lockdowns OSHA RCS standard globally, began to ease. including banned housekeeping Owens Corning is fully engaged with practices (per OSHA) and In addition, we are active with our industry partners to help influence application of RCS Exposure the American Society of Safety safety and regulatory standards, which Control Plans (ECP) and ECP Professionals, the Voluntary Protection has a global impact and reinforces our controls. position as a leader in safety. Through Programs Participants’ Association our active involvement and leadership (VPPPA), and other organizations that ■ Industrial noise (potential for in trade associations’ industrial hygiene promote safety solutions. noise-induced hearing loss). Owens Corning’s hearing conservation or safety committees, we provide our Occupational Health industry with occupational-exposure efforts are managed continuously monitoring data to aid in evaluating the Owens Corning has developed and under site-specific programs, potential impacts of regulatory activity deployed global safety standards ensuring all locations align with and framing trade association input and controls that integrate with our global standard to protect to developing standards. For decades, our global occupational health and employees from the potentially Owens Corning has been conducting industrial hygiene process. We work to damaging effects of noise exposure regular industrial hygiene monitoring understand, control, and eliminate — and comply with applicable noise to assess and quantify the risks our whenever possible — the potential for requirements. This includes employees may be exposed to and exposure to work-related hazards that eliminating noise exposure where ensure that exposure is controlled to pose a risk to employee health. necessary and requiring use of safe levels. effective hearing protection. Our Exposure potentials are assessed and industrial hygiene process includes We also participate in the Industrial evaluated against established exposure noise exposure assessments at Hygiene/Occupational Health limits to ensure risk is quantified our sites every other year, including committees that exist independently and understood. This understanding employee exposure assessment as part of both the Asphalt Roofing drives efforts in mitigating, reducing, (noise dosimetry) and Area Sound Manufacturers Association (ARMA) and eliminating these risks. Where Level Surveys (SLSs). and the North American Insulation exposure can be feasibly eliminated Contractors do not have access to Manufacturers Association (NAIMA). through substitution and engineering any of our non-occupational employee We are one of the leading contributors controls, those actions are health benefit programs, including of data to those associations. The implemented. Where substitution and voluntary health promotion services aggregate data is used in trade engineering controls are infeasible, and programs offered to employees to association efforts to represent or while such controls are yet to be address major personal health risks, Owens Corning and our industry in deployed, interim controls (lower on as these services and programs are rule-making and, through published the hierarchy of control) are used to considered a benefit. Occupational articles, serve as a source of ensure employees are protected. These health is different, however. Anyone, information to the industry customer often include some combination of including contractors, who work base and the scientific community. administrative controls and personal at our facilities are protected from The committees help set up protocols protective equipment. occupational injuries via adherence to for data collection and maintain data The following are the primary and most the same Owens Corning employee sets that our customers, contractors, broadly applicable hazards associated safety practices (prevention of injuries) and installers rely on in their everyday with our manufacturing operations and protection from occupational operations. that could pose a risk of ill health, illnesses via Owens Corning’s The Campbell Institute and examples of controls we have employee exposure control procedures deployed: that safeguard against biological, Owens Corning has been an active ■ chemical, and physical hazards. member of the National Safety Council Heat stress (potential for heat- (NSC) since 1943, and we are a related illnesses). Ambient cooling, In 2020, there were no recordable charter member of the NSC’s Center where feasible, is coupled with injuries related to ill health among for Excellence, the Campbell Institute. seasonal focus in heat-stress Owens Corning employees or our Many representatives of our company prevention, hydration, PPE, and supervised contractors or temporary serve on steering teams, working early mitigation. employees.+ groups, and advisory committees. This ■ Use of materials that contain year, Owens Corning was a member respirable crystalline silica, RCS of the NSC’s Safer Task Force, which (potential for silicosis). Owens focused on providing guidance to help Corning has applied the recent businesses safely return people to
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Living Safely | 227 Access to Non-Occupational incentives, and rewards. Our goal is for employees’ health and well-being Health Services all employees to benefit from putting throughout the COVID-19 pandemic. a stronger focus on their everyday To support the health and well-being Read more about this in the Health physical, emotional, financial, and of our employees and their families, & Wellness chapter. For quantitative mental well-being — resulting in we go beyond occupational health. occupational health and safety improved health, productivity, and Our Healthy Living program combines performance metrics for full-time happiness. This year, the company coaching, interactive health risk employees and contractors, please see worked hard to promote the company- assessments and biometric screenings, Appendix B. provided resources available to support
In new or newly acquired sites, SAFETY 2030 TARGET achieve a level of safety at least & PERFORMANCE equivalent to the rest of Owens PERFORMANCE Corning within one year.+ While the only acceptable number of workplace The sites we acquired in 2018 met this target last year. There were no accidents is zero, we are sites acquired in 2019. proud of the progress we’ve made.
Our recordable incident rate 2020 Recordable Injuries by Type+ (number of injuries X 200,000 / total labor hours) in 2020 was 0.62.+ This is 79% below the industry average, Arms/Hands 41% as reported by the U.S. Bureau of Labor Statistics for 2019 (the most Back/Shoulders 16% recent data available). In addition, 54% of our global facilities were Head/Face/Eyes 19% injury-free in 2020. The severity of our incidents, measured by our lost-time injury frequency rate (lost Legs/Feet 21% workday cases x 1,000,000/total labor hours) was 1.38.+ Multiple/Other 3%
We are working to reduce our most ■ Glass-in-hand. A team ■ Slips, trips, and falls. Our insulation frequently occurring injury categories, has been working to business is conducting risk including the following: identify factors that assessments of all walking surfaces ■ Hand injuries. Our hand safety contribute to glass- and platforms at all facilities, and improvement team is charged in-hand, which is one they are sharing their findings with determining best practices of our most common broadly, allowing to reduce the risk of injuries, and implement preventive sites to mitigate hand injuries, which practices. We employed the the risk before are often related to the principles of TPM to implement incidents occur. use of hand tools. a 10-step quality control plan to reduce glass-in-hand injuries. We also worked with our supplier to make improvements to the protective gloves we use. Through these efforts, we have been able to significantly reduce glass-in-hand injuries at our Composites sites.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Living Safely | 228 As our safety data from 2020 GOING demonstrates, there is more to do, and our 2030 goal of zero injuries keeps the FORWARD challenge in front of us. It remains our aspiration to eliminate all employee, contractor, and visitor injuries and occupational illnesses at work and at home.
That focus on addressing safety at home is an essential component of our safety plans over the next ten years. In the face of this global pandemic, we have already seen this begin to come to fruition. Our facilities in Gous-Khroustalny, Russia, and Taloja, India, have created COVID-19 kits that employees can share with their families.
We will also leverage new technologies to help keep our employees safe and SIF-proof our operations. In addition to new machine-guarding technologies, we are also looking into wearable technology, 3D cameras, and more in our quest to make injuries and illnesses impossible.
Owens Corning is committed to protecting workers and their families, and while we are already considered one of the safest industrial companies in the world, there is always work to do. We are proud of every success, and grateful for every safety milestone we have reached on the journey. When one of our sites has a record number of injury-free months (or years), it reminds us that our aspiration is possible — and inspires us further.
Photo submitted by: Claudia Cantu | Houston, Texas, USA Devarion Scott monitoring the fiber glass.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Living Safely | 229 HEALTH & WELLNESS
In this chapter: 2030 GOALS STRATEGY & APPROACH INITIATIVES PERFORMANCE GOING FORWARD
Ultimately, sustainability is about ensuring the well-being of living things, providing breathable air, clean water, and balanced ecosystems. It makes sense, then, that promoting healthy lifestyles for our employees and their families is a major part of our sustainability journey.
Owens Corning is striving to end lifestyle-induced disease among our employees and promote mental, physical, and financial well-being. Our approach encompasses all aspects of health, and it’s backed by a range of life-changing resources, so employees benefit during — and beyond — their time working for the company.
Photos submitted by: Micki Vanderpool | Rockford, Illinois, U.S. Blue Lagoon in Iceland (top left), sunset on We’re working to ensure that our employees are Seven Mile Beach in Grand Cayman (top healthier because they work for Owens Corning. right), Butchart Gardens in Victoria, British Columbia, Canada (bottom).
Our health & wellness efforts align with the following UN SDG: Sustainability Materiality Definition: We promote a healthy and tobacco-free lifestyle for all our employees and their families. We are committed to ending lifestyle-induced disease in our employees, and promoting mental, physical, and financial well-being.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Health & Wellness | 230 2030 GOALS FOR HEALTH & WELLNESS
By 2030: We aspire to eliminate all lifestyle-induced disease and enable the best possible quality of life — where people flourish and are healthier because they work for Owens Corning.
While complying with privacy laws and local expectations, we will use accessible data, as well as health and behavioral science, to define metrics that will guide our strategies and tactics to achieve our goals. We will be guided by the frameworks established by the U.S. Healthy People 2030 and WHO Global Action Plan, which are based on indicators that measure both health risks and the burden of disease around the world.
In our quest to establish a culture as well as employee voluntary wellness STRATEGY of care within our organization, we data, helps us better understand the recognize the need to address the risks health risks faced by our employees AND APPROACH that can jeopardize a person’s overall and offer services that will make them We are committed to well-being. Our internal programs are healthier. Individual, identifiable personal providing all-encompassing designed to help employees reduce health information is not available for wellness support that the critical risk factors that lead to review or analysis. All data used for delivers meaningful results the most common lifestyle-related health trend analysis is de-identified and disease. Those risk factors, and the obtained in the aggregate to safeguard for our employees. diseases they cause, form the basis for employee privacy. our metrics. For example, we intend to We also recognize the need to establish reduce tobacco use, increase cancer metrics that represent the health and screening rates, and help employees well-being of our employees in a way improve their physical health in general. that’s meaningful across our global Additionally, we are committed to workforce. Changes in our workforce creating a caring culture, with attention demographics over time add complexity to mental and emotional health, and as we track progress toward our goal. to providing education and tools Employee privacy expectations, as well to help our employees confidently as cultural differences and sensitivities manage their financial lives today while regarding health and well-being, impact preparing for the future — and the the availability of comprehensive unexpected. aggregate health data. However, as a Owens Corning makes wellness U.S.-based company with a historical program design decisions based focus on employee wellness, we have on aggregate data obtained from built a solid foundation for developing Photo submitted by: participation in employee voluntary metrics that drive our understanding, Merry Qu | Qingdao, Novia, China Staff being tested for COVID-19 at our wellness programs. Analysis of claims based on the aggregate data from our Novia facility. data from U.S. employee health plans, U.S. employees.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Health & Wellness | 231 As we work to measure the impact ■ In the U.S., we track the percentage global workforce has access to of our wellness programs, we are of employees who receive those same tools. encouraged by data that reflects a annual age-appropriate cancer In addition to the tools and resources clear connection between participation screenings, go to preventive health we offer, we have seen our company in these programs and improved health appointments, and participate in policies and health coverage decisions risk factors; understanding the cause biometric screenings, which is drive health outcomes among our and effect is part of our ongoing work. an important component of our employees. For example, we have healthy living initiative. For example: seen that our tobacco-free facility ■ policy has encouraged employees ■ Key biometric measures, such as The early analysis of this aggregate data helps us connect participation to stop smoking. Coverage policies blood pressure and body mass that remove barriers to preventive index, are correlated with overall in our wellness programs to improved health measures. health have also proven beneficial, health, and we support biometric which is why health screenings and screenings to help employees ■ Knowing which programs make a routine exams are fully covered by our “know their numbers” as a critical difference for our employees in the insurance plans, and in some cases, element of wellness education. U.S. helps us ensure that our entire they are offered on-site at our facilities.
The Six Pillars
Our healthy living initiative is rooted in the following pillars, each of which address specific aspects of health and wellness.
1. Know Your Numbers our insulation manufacturing facility ■ Traditional counseling services for in Newark. The collaboration with issues such as stress management, We will enable all Owens Corning ProMedica allows employees to easily depression, grief, or addiction. employees and their families to obtain access care providers, establish a their age-appropriate preventive ■ Work/life integration challenges, primary care physician, and schedule health screenings and immunizations including child and elder care, home appropriate age-related services. annually and understand the health repair, or adoption. consequences related to their personal 2. Healthy Mind ■ Financial and legal advice, such biometric health numbers. We aspire to help all Owens Corning as college funding, creating To help our employees achieve employees enjoy meaningful work wills and trusts, and credit score optimal health, biometric screenings and life experiences in an environment management. are available to all employees and that supports and inspires them. It’s In addition to counseling sessions, their covered dependents at no cost everybody’s responsibility, especially our our EAP team has worked with our through on-site events in the U.S. and leaders’, to foster that supportive and Inclusion and Diversity team and our several global locations, with their inspiring workplace. mental health care provider, Beacon, personal physician using preventive Balancing the demands of a fulfilling to create the Healthy Mind Toolkit. care benefits, and through LabCorp career and personal life can be This toolkit is designed to encourage in their local community. These challenging. To help our employees employees to help themselves, their screenings help employees and their be better at work and at home, we colleagues, and their loved ones families learn if they are at their age- offer broad comprehensive counseling assess and address their mental and appropriate health targets, understand through the Employee Assistance emotional concerns. the health consequences related to Program (EAP). The EAP helps our their personal biometric numbers, With so many people feeling isolated, people and their families cope with and discover actions they can take helpless, and uncertain in the face challenges that could affect their as needed. We also offer a wide array of the COVID-19 pandemic, the need health, their relationships, or their of free, age-based preventive care for these mental health resources effectiveness and safety on the screenings to employees and covered is tremendous. At the start of each job. Services are confidential, and family members. In partnership with month, all Owens Corning employees counseling sessions are free of charge healthcare provider ProMedica, we receive an email containing the for up to six visits. provide on-site care at several Ohio, information for that month’s topic. U.S., locations, including our world They can be conducted face-to-face or This includes a registration link for the headquarters in Toledo, our Science through telephone sessions, and they Beacon webinar, ways to engage with & Technology Center in Granville, and cover a range of topics, including: the material, and a flyer with in-depth education, tools, and resources.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Health & Wellness | 232 3. Physical Activity 4. Nutrition 5. Tobacco-Free
We will enable all Owens Corning We aspire to help all Owens Corning We aspire to be a company that helps employees and their families in being employees and their families eliminate our employees and their families lead active and acting to counter the key health risks that result from poor tobacco-free lives. negative health consequences of low nutritional education and unhealthy Owens Corning offers many resources physical activity and lack of movement food choices. to help our employees become on and off the job. Unhealthy food choices can lead to tobacco-free, including on-site group We educate our employees about serious health risks. Owens Corning coaching, small group discussions, the benefits of physical activity and aims to help employees and their nicotine replacement therapy, and give them access to tools, resources, families eliminate those risks by medication. We are approaching our and incentives that promote daily providing nutritional education. Many goal of being 100% tobacco-free. As of movement. Several facilities have an of our U.S. locations now offer fresh the end of 2020, 99% of our employees on-site fitness center, offer physical fruit and vegetables to all employees work in tobacco-free facilities. training and sponsor fitness challenges free of charge, and many locations 6. Financial Health such as run/walks. In addition, have changed out vending machines employees earn points for steps for open kiosk markets that provide We will help our employees confidently recorded through our Healthy Living fresh, healthy meals and snacks. With manage their financial lives today, while mobile platform. more people working from home preparing for the future and dealing with during the pandemic, Owens Corning the unexpected. helped employees continue to eat well by occasionally providing healthy We seek to raise awareness of cooking tips on the company’s intranet. company financial benefits available to our employees. This includes planning In 2020, our facility in Gous- tools and resources such as financial Khroustalny, Russia, fully renovated its and legal counseling through Beacon canteen. Not only does the new design Health Options, retirement counseling facilitate socially distanced meals, but through Fidelity Investments, and the team there also updated its menu the implementation of site visits and to include more fruits, vegetables, and online tools with banking partners in other healthy dietary choices. our plant communities.
remained accountable throughout his result of these resources, combined weight loss journey. with the sacrifices he made.
He was able to lose over 70 pounds “I could not have achieved this much with a combined loss of 115 pounds success without the help of others. It is between him and his wife. His overall everything,” he said. “Imperfect people health has improved as well as how he need other people to tell them when sleeps. they’re doing great and also to motivate them when things are lacking.” “I was on a CPAP machine and I wasn’t able to sleep prior to using the When asked what advice he would A HEALTHY LIVING machine for more than an hour at a share with others, Jeremy said, “Stop time,” Jeremy said. “Now, I can sleep and breathe. It’s daunting, especially SUCCESS STORY 7-8 hours without waking up at all.” when you have a massive amount of weight to lose. This takes time. You Last year, Jeremy Hervey, an employee Accountability proved essential to his didn’t put the weight on overnight and at our Newark, Ohio, U.S., plant, and weight loss. After he had lost an initial you’re not going to lose it overnight. If his wife started a weight loss program 35 pounds, he gained 10 pounds back you take small steps forward (literally together. They began to review the due to poor habits. Jeremy then made and figuratively), eventually, things items on the Weight Watchers® app it a point to meet regularly with our come together. Thoughts become and figure out how the points system nutritionist and trainer to talk through actions, actions become behavior, worked. In addition, he worked with our the successes and struggles and get behavior becomes results.” nutritionist and our trainer, both on-site insight on how to do better. In the next at the Newark plant, to ensure that he five months, he lost 50 pounds as a
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Health & Wellness | 233 Reporting Healthy Tier 3: Disease-Related Metrics track In addition to tracking steps, movement, weight, and eating habits, Living Metrics actual disease and illness statistics in the aggregate within our program the platform also lets employees track We report our Healthy Living critical population. their heart rate and sleep through metrics across three tiers: two different tools that send the Relevant lifestyle-related morbidities information directly to the platform. Action-Based, Health Risk, and include: Not only do the tools track the amount Disease-Related. ■ Diabetes. and quality of sleep, they also record the type of sleep pattern, such as rapid Tier 1: Action- ■ Atherosclerotic coronary vascular eye movement (REM). This information Based Metrics disease (ASCVD). act as leading helps individuals monitor the effect of indicators for ■ High blood pressure. health-habit choices. tracking program success. ■ Certain cancers. The Healthy Living platform makes Our key Tier 1 metrics include: it easier for employees to take part Tier 3 program metrics are longer-term, in many of our health and wellness ■ Percentage of employees enrolled and their success will be measured initiatives. It also provides us with in the Healthy Living mobile over years. If Tier 1 and Tier 2 metrics opportunities to offer a range platform. are successful, health science gives of incentives for enrollment and us confidence that Tier 3 metrics will ■ Percentage of employees engaged participation, including cash and other improve well into the future. or highly engaged. rewards based on employees’ daily Our health programs are designed to activities. When users record their ■ Percentage of employees help employees understand how the steps or track healthy eating habits, completing their annual health three tiers address the health issues for example, they receive points, risk assessments and biometric that can impact their lives and the lives which can be redeemed for rewards. screenings. of their families. Our goal is to have Employees who track their steps can programs that change behaviors and also participate in a walking challenge ■ Heart-age survey completion. bring sustained benefits to employees’ and be eligible for weekly prizes. ■ Average number of steps taken at lives inside and outside Owens each facility per employee every Corning. week. Since 2018, we have Tier 2: Health Risk Metrics look maintained a high-level at health risk factors and primary dashboard to centralize preventive our data management and keep measures such as aggregated Tier 1 Activity-Based immunizations and and Tier 2 Health Risk metrics. This age-appropriate dashboard is updated weekly and screening tests. is available to all Owens Corning Our key Tier 2 employees, while aggregated Tier 3 metrics include: data is available to a limited group of health professionals. ■ Percentage of employees with appropriate BMI indices. Healthy Living Platform ■ Percentage of employees with Our Healthy Living digital platform normal blood pressure and has refined our approach and helped cholesterol. our employees improve their healthy ■ Percentage of employees receiving habits. Through a website and a mobile appropriate cancer screenings for app, the platform links thousands of age and gender. employees to our wellness resources, facilitating a culture of well-being as ■ Percentage of employees individuals track their progress and receiving their key, age-appropriate receive daily reminders about their immunizations. fitness goals.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Health & Wellness | 234 One of the more popular financial Our Healthy Living program started launched in 2019 to integrate TPM incentives lets employees on U.S. health in the U.S., and we have increased into their healthy living program. plans make contributions directly into our international engagement in Latin That site and our facility in Portland, their health savings accounts. Through America, Europe, and Asia Pacific. All Oregon, U.S., are using TPM these incentives, we have also visibly three regions are creating regionally techniques to determine the best tied our Healthy Living platform to our appropriate, fit-for-purpose systems opportunities to make gains in healthy employee benefits program. parallel to those we have in the U.S. to living, then building strategies using drive achievement in the six pillars. methodologies such as Focused Our goal is to create a platform Improvement and Daily Management. that addresses all six pillars of Integrating TPM into This year, the Jackson team has healthy living. To further reinforce built a program that incorporates key our commitment to the sixth pillar Healthy Living elements of their strategy deployment — promoting financial health — we Since 2012, our facilities have been plan within their local TPM process. have added a tab to the platform’s implementing Total Productive They have seen excellent results and dashboard that enables users to track Maintenance (TPM), a management are well-positioned to see continuous contribution levels to their health system designed to improve improvement — see page 238 for more savings accounts and 401(k) accounts. manufacturing productivity by information about their success. encouraging employees to share the responsibilities for preventing injuries, To help employees consider healthy defects, and losses. Over the past living as part of their TPM initiatives, it few years, Owens Corning has been is helpful to compare health to safety, incorporating the principles of TPM into injuries, and first aid incidents, which METHODOLOGIES our healthy living initiatives. are a common focus of TPM. TO PREVENT Our plant in Jackson, Tennessee, Although health pillars are important U.S., was part of a pilot program that to people individually, we can drive COVID-19 continuous improvement by making them central to discussion within the plant. We have worked to expand Throughout the organization, we 5. Sustain. Continued teamwork this approach to other plants and have used the familiar 5S framework, and discipline in the following other regions around the world when which often serves as a foundation standards help keep our possible throughout 2020. for Total Productive Maintenance, to environment clean and safe. help prevent the spread of COVID-19 at home and at work. To help Simple, direct communication can people quickly understand, adopt, help these standards become part and internalize standards, Owens of our routine, helping us build new Corning demonstrated how 5S can habits that help us stay healthy as help employees create and improve well as safe. standards that are easy to learn, In addition to adhering to our teach, and follow. companywide policies, our 1. Sort. Sorting and discarding plant in Tlaxcala, Mexico, has anything you don’t need reduces worked to stop the spread of chances for the virus to spread. COVID-19 using a master plan based in A3 methodology, a 2. Set in Order. Keeping spaces process commonly used in lean organized at work and at home manufacturing. Through these limits unnecessary contact with efforts, the plant established a set surfaces and objects. of protocols, then used the EHS pillar, wellness policies, and internal 3. Shine. Maintaining clean communications processes to environments is a shared share information and maintain an responsibility. action plan.
4. Standardize. Consistent Photo submitted by: protocols and clear, simple Martha Aragon | Tlaxcala, Mexico communication helps everyone Owens Corning Tlaxacala employees receiving temperature checks prior to universal company understand how to stay safe. mask mandate (top). Sanitizing our facility (bottom).
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Health & Wellness | 235 HEALTH & WELLNESS COVID-19 and Corning established protocols to Owens Corning maintain and monitor our employees’ INITIATIVES health throughout the pandemic. We Clearly, the COVID-19 pandemic was initiated daily health screens to make This year, our people’s the most pressing health issue of the certain that all sick employees remained health has taken on even year. It affected virtually every aspect of at home and isolated from healthy greater significance. Our Owens Corning’s operations, requiring employees to prevent the spread of the us to move quickly to develop strategies virus. These screenings not only help work is rooted in our deep that protected the health and safety of commitment to people’s ensure that employees receive prompt our employees while ensuring minimal attention when needed, but they also well-being. disruption to our operations. provide Owens Corning with the data As part of the overall restructuring of required to efficiently allocate resources, our Crisis Management Plan, Owens guidance, and support where they can be of the greatest benefit.
HEALTH SCREENING
■ All Owens Corning sites conduct health screenings prior to an individual’s entry, with a full electronic process implemented in U.S. and Canada sites. ■ Daily temperature screenings are employed at sites globally to help identify individuals who may be sick with COVID-19. ■ An Owens Corning representative will quickly contact employees who fail a screening to offer support.
CASE TRACKING
■ A robust contact tracing process has been established to quarantine affected employees for 14 days who have been in close contact with someone who has a confirmed case of COVID-19. ■ Our response is coordinated with local health authorities, and the confidentiality of employees is protected. ■ A dashboard has been developed to track key metrics so that areas with high case rates and virus transmission can be identified quickly and targeted for additional infection control procedures.
WORK FROM HOME
■ All employees who are able to work from home are strongly encouraged to do so, working with their supervisors to determine when or if they need to be in the office.
RETURN TO THE WORKPLACE
■ Return-to-work strategies have been developed that reflect the best scientific evidence from global public health institutions. Typically, an employee can return to the workplace after an episode of COVID-19 when 10 days have elapsed from the onset of their symptoms, as long as their symptoms are improving, and they have been fever-free for 24 hours.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Health & Wellness | 236 PPE for the U.S. West Coast Physical Health
In the U.S., the need for personal With pandemic restrictions in place, protective equipment (PPE) went our on-site fitness centers were unable beyond the COVID-19 pandemic, as to operate for most of 2020. However, wildfires ravaged across California, our ProMedica partners helped create Oregon, and Washington, burning options to support exercise, including over eight million acres and spreading small outdoor classes during the smoke throughout the atmosphere. summer when feasible with social With poor air quality posing health distancing requirements, and online risks for people on the West Coast, guided courses in yoga, strength- Owens Corning worked to protect all training, and more. As restrictions performed extensive virtual training our workers in affected areas — those were lifted, ProMedica implemented with the international groups. This working in our facilities and those COVID-19 protocols that made limited training includes the principles of TPM, working from home. In September, use of the fitness center facilities and we have the support of regional Owens Corning sent safety respirators available, with continuous assessment TPM leaders, who are helping to drive to our plants on the West Coast, to adjust access as needed as the this work. and Owens Corning-branded cloth situation changes. We have also masks were overnighted to individuals developed protocols that will allow Our sites in different countries and working in their home offices us to determine when other, non- regions adopt their own healthy living throughout the region. ProMedica fitness centers across our goals and aspirations, so activities operations can be safely opened and and focus areas are aligned with our Healthy Food and Drink Vending utilized. employees’ needs and realities. We In 2020, the Healthy Living Nutrition created teams that include leaders Champion Network Aspiration Team led an initiative to from global business and corporate implement a new canteen service in Owens Corning’s Champion Network function groups, as well as regional all our North American facilities that consists of individuals at our facilities leadership councils, to direct the will offer unique and healthy options who work to ensure that our Healthy execution of our global wellness for food and beverage vending. The Living platform is locally driven with strategy in each region. service, Canteen One, previously served broad corporate support. Wellness Wellness champions have had the 21 locations, and will now provide champions are always looking for most impact when they have the unique service models throughout ways to engage employees about their support of leadership, and that the region to accommodate sites health and increase participation in our engagement has been a core part regardless of size and employee programs. These champions are also of our overall approach to health preferences. Under the expanded able to encourage more individuals to and wellness. Materials to support national contract, Canteen One will join the champion network, expanding activities planned for each pillar are provide education and resources to our influence at more locations. available to champion teams so they help communicate to our employees We have invested significantly in can successfully engage employees about the importance of nutrition in training local wellness teams and and teams. our daily lives. They will also work Healthy Living champions to help with each facility to set realistic goals support our programs. In 2020, we and work with a local distributor who Photo submitted by: trained 36 new wellness champions, will listen to the needs and wants of Merry Qu | Qingdao, Novia, China primarily in the U.S. We also worked Novia plant canteen being sterilized prior to employees. The new vending and with our regional wellness leads to our global COVID-19 protocols. express market services will provide establish a network of 35 international expanded access to healthy choices champions. With the pandemic, we’ve for our employees.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Health & Wellness | 237 Flu Shots E & F training covers topics associated with healthy lifestyle HEALTHY LIVING While COVID-19 was at the forefront decisions related to sleep and of people’s health concerns this fatigue, the basics of fatigue-risk AWARDS year, we still needed to contend with management within plants, and the influenza outbreaks that crop accessing resources to reduce 2020 marks the second year of our up each autumn and winter. Owens safety risks associated with fatigue. Healthy Living Awards, in which Corning posted articles to our intranet The training was developed using our Wellness Leadership Council explaining the difference between significant input from managers measures employees’ commitment COVID-19 and influenza, comparing and focus groups, making the to a range of health and wellness the symptoms and prognoses for each training unique to Owens Corning. criteria throughout the previous illness. In addition, we stressed the In February 2020, we began a year. To be eligible, sites must importance of flu shots as a way to pilot test and learn program at our offer programs in the six pillars of help prevent the spread of the disease, facility in Irving, Texas, U.S. wellness and track metrics related and we reminded employees that to employee activities, risks, and most Owens Corning sites around the The in-person test and learn disease rates. In addition, they world offered flu vaccines. Given the program was suspended must demonstrate a culture of differences in healthcare distribution in due to COVID-19 restrictions. well-being, where employees and different countries around the world, flu However, work has continued leadership are actively promoting shot campaigns were organized locally with development of dashboards healthier lifestyles both in both their throughout our regions. for site leadership to identify workplaces and their communities. work hour trends and early Fatigue Risk Management identification of potential fatigue- This year, the plant in Jackson, Tennessee, U.S., won the first place Beginning in 2018, Owens Corning related issues. Plans moving Healthy Living Award. The plant began work on strategies to forward include measuring the was specifically cited for their improve supervisors’ and managers’ efficacy of the training using efforts in employee recognition awareness of and responsiveness to a sample of managers from and community support. A walking fatigue-related problems, with plans participating plants. By raising path was created at the plant, and to implement a test and learn project awareness of the risk associated guest speakers were brought in in 2020. Through this training, we with worker fatigue, we can to share insights. In addition, they also seek to create a work climate help ensure a safer, healthier implemented new technology that supports health management environment for our employees. to improve communication with of energy, sleep, and focus at work. employees and spouses. As a result, To achieve this, we developed an employees contributed more to their innovative leadership training, Energy Photo submitted by: 401(k) and more people participated & Focus (E & F), and a new Owens Harry Allen | Jackson, Tennessee, U.S. The Jackson team with the Healthy Living Award, in the health risk assessment and Corning standard for fatigue risk from left to right, Sherica Buntyn, Regina Camper, biometric screenings. management. Darrell Schuerenberg, and Harry Allen. In recognition of the award, the Owens Corning Foundation made contributions to the charities of each team’s choice. The Jackson plant chose the St. Jude Children’s Research Hospital, who received $10,000. Second-place honors went to the team at our plant in Houston, Texas, U.S., and their charity, the Houston Food Bank, received $5,000. The team in Ridgeview, South Carolina, U.S., who are consistent leaders in integrating health and wellness into their workplace, earned third-place. The Owens Corning Foundation donated to the Gary Sinise Foundation on their behalf.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Health & Wellness | 238 SPEAKING OF SUSTAINABILITY Jared Shively Fitness has always been a big part of Jared Shively’s lifestyle — all his life, he’s enjoyed the outdoors and worked to stayactive. As a plant leader in Columbus, Ohio, U.S., Jared spearheaded a range of health and wellness initiatives throughout the facility. Now, at our plant in Newark, Ohio, he’s working to create a similar environment there — one where people are healthier because they work for Owens Corning. Jared shares his approach here.
On incorporating principles of Total Productive On promoting health and wellness during the Maintenance (TPM) pandemic Like TPM, Owens Corning has wellness pillars. At Columbus, Probably the most important healthy habit we had was to we set up owners for each pillar, similar to TPM. Each owner keep wellness alive through the pandemic. Some of the was responsible for their pillar, setting up meetings and things I know that Newark and other teams have done is to driving results. We assigned the owners to pillars that they try to lead through the pandemic, continue to communicate were individually passionate about. For example, the owner that wellness is important, especially the Healthy Minds of our nutrition pillar was an employee who won the Lighten pillar, with being stuck inside and not be able to go out to Up challenge for the site by changing his eating habits. restaurants or games and that sort of stuff. We’ve put a lot That’s how we really got to our results. of emphasis on EAP and all the different things you can do to relieve stress, because that can really be heightened during On the importance of transparency and these times. communication Similar to TPM’s DMS (Daily Management System) boards, On meeting our 2030 goals we had DMS boards for wellness. We listed out where If we want to achieve our 2030 healthy living goals, I think we were on biometric screening completion, Virgin Pulse that we need to focus on the pillars that are already set out enrollments, Virgin Pulse engagement. We talked about in front of us. They are truly making a difference in people’s it — if our numbers were bad, we talked with employees lives. We just have to get people involved and understanding about how to fix that. Also, we set up biometrics screenings what each of those pillars are and making improvements in on site, and instead of having employees come after work, each of those areas. And if we reach our goal numbers on we found a way to rotate and relieve on breaks, to allow each one of those, I believe that we will meet our overall goal those employees to go in and get their biometrics done. We of healthy living. gave them every opportunity that we could to make sure that the employees were able to do it without going on their own time. We got a biometrics completion of ninety-some percent, and we made sure we told them it was important. Jared Shively We brought a nurse on site to review their biometrics and Plant Leader – Pipe, Technical Insulation, Newark, Ohio, U.S. talk about their numbers. Photo taken taken while hiking in Banff National Park in Alberta, Canada.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Health & Wellness | 239 HEALTH & WELLNESS We continue to track our employees’ metrics, and we’re heartened by the results our employees are achieving. PERFORMANCE
Metrics Dashboard
Our metrics dashboards track our facilities’ success and provide up-to-date information on programs, offering transparency about our healthy living efforts. In addition to the pillars and wellness teams, we implement policies that help drive better health.
2020 GOAL 2019 TOTALS 2020 TOTALS
Platform enrollment 80% 75% 78%
Platform engagement — earning >12,000 points 60% 48% 41% (average of available quarterly data)
Health risk assessment 60% 54% 53% questionnaire completion
Biometrics screening 60% 52% 38% completion
Average steps per day for employees who are enrolled 7,000 4,044 3,623 on the platform
Average steps per day for employees who are enrolled 9,000 8,311 8,083 and tracking (average of available weekly data)
Employees reporting they are tobacco-free (2020-2021 88% 84% 87% open enrollment data)
With aggregate data from both our in 2019 to 41% this year, which we several months we were unable to offer insurance carrier and the platform attribute in large part to the effects on-site biometric screenings. When we in the U.S., we’re able to see the of the pandemic, since on-site events were able to hold some events later connection between participation and often drive platform use. Due to in the year, people were enthusiastic health improvements. We are pleased measures taken to ensure the safety about participating, giving us hope that with the increase in enrollment in the of our employees, including furloughs, engagement will grow significantly once Healthy Living platform from 75% in working from home, distancing, and pandemic restrictions are fully lifted. 2019 to 78% in 2020. Engagement visitor protocol, some of our customary with the platform dropped from 48% competitions were suspended, and for
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Health & Wellness | 240 Our aggregated data found a high In addition, employees, wellness teams, Health Outreach into correlation between participating U.S. and site leaders were invited to submit Our Communities employees and reduction in disease a video promoting physical activity In addition to promoting health and risks among our employees. After for mind and body. This enabled all wellness among our employees, we looking at five years of data, we see employees – even those working also look for opportunities to raise that more points earned through the at plants not using the Virgin Pulse awareness in the communities where Healthy Living platform correlates platform – to join the challenge. The we serve. For example, our plant in strongly with a lower risk. From video that received the most “likes” Gous-Khroustalny recently partnered the study, we made the following on our intranet earned the winning with the Ministry of Russian Education conclusions, which will continue to team the opportunity to donate to an to promote healthy lifestyles among guide us as we develop new initiatives approved charity through the Owens area students. In September 2020, and maintain existing ones: Corning Foundation, which reinforced employees spoke to students at a ■ Employer support for healthy the connection between healthy living and the well-being of our communities. local college, offering tips on ways habits makes a difference. Our to prevent COVID-19 and other viral analyses show that higher levels of The Tlaxcala, Mexico, team posted the infections. They also provided kits participation in the Healthy Living winning video. Through the Mexican containing hygiene products and program are quantitatively linked Red Cross, the team’s donation will literature related to COVID-19, and to better health among Owens be awarded to the IBAIS school for they shared information about Owens Corning employees. the hearing-impaired community in Corning and our products. ■ Better biometrics correlate strongly Apizaco, Tlaxcala, and put toward acquiring and delivering storage water Building Health Certification with better (lower) health risk for Headquarters scores. tanks for disadvantaged and remote households in the communities of In addition to serving as a long-time ■ Higher participant points (top 20% Tlaxcala. centerpiece of the downtown Toledo of participants) correlate strongly Opioid Prescriptions area, our world headquarters (WHQ) with better (lower) sample health is an impressive demonstration of our risk scores. In response to the U.S. opioid crisis, commitment to sustainability, health, ■ Higher points-based participation Owens Corning’s policy limits short- and wellness. This year, our efforts measures (top 20% of participants) acting opioid prescriptions to a three- were recognized with certification from ® are strongly related to smaller day supply. Any pills dispensed beyond Fitwel , the building health certification increases in risk score, BMI, and the three-day limit must be authorized. system operated by the Center for blood glucose over time. This policy decision was informed by Active Design. a report from the Centers for Disease To receive this certification all aspects Healthy Competition for Control and Prevention that addiction of our building’s design are considered, Healthy Habits rates to a prescribed opioid can double after four to five days of continued use. from air quality to bottle-filling stations Our annual Lighten Up! challenge to open, visible stairwells. The 2019 began in February 2020, but the onset We observed the following in 2020: enhancements in the building, such as of COVID-19 prevented people from ■ A 12.3% drop in opioid pills opening up the line of sight in the office weighing in. Employees were still dispensed from 2019. Since the areas to improve access to natural encouraged to commit to a healthy three-day limit was implemented, light, and new adjustable-height desks, diet, monitor their blood pressure and the number of pills dispensed has earned points toward certification. cholesterol, and track their food choices dropped by 40.6%. More points came from long-standing daily. We look forward to resuming this features like pedestrian walkways and challenge when restrictions are lifted. ■ There was a 16.4% drop in pills our on-site café. dispensed on prescriptions longer Because COVID-19 hindered our ability than three days compared to 2019 The WHQ is the only building in to offer in-person fitness challenges, — a 35.1% reduction since the limit northwest Ohio to receive this Owens Corning presented the was implemented. certification, and one of only a few Healthy Living Adventures in Africa in the state. Walking Challenge. From October 5 ■ In 2020, the number of prescribers to November 1, 405 teams of Owens asking for authorization beyond Corning employees recorded their the three-day initial limit has held steps. Between them, the teams steady at 5.8%. logged over 446 million steps — the equivalent of 223,222 miles. The winning teams in each region were awarded Virgin Pulse points.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Health & Wellness | 241 Our Healthy Living strategy will be essential as we strive GOING to reach our 2030 goals and help our employees achieve and maintain their optimal health and wellness. We FORWARD are expanding our efforts to include the development of a global measurement and reporting process that can be used to track employees’ health and data around the world.
Identifying champions in each region around the world — individuals who can lead and support employees in health and wellness goals — is essential to establishing a global strategy for promoting health and wellness. Doing so will require us to accommodate the substantial differences that exist around the world in terms of employee attitudes, cultures, resources, turnover, health education opportunities, local business priorities, and leadership support. Our Healthy Living Leadership Council (HLLC) has developed a strategy to achieve the objective of generating better program momentum, improving impact, and enhancing the well-being of our entire global workforce.
To ensure that Owens Corning addresses the differences within our global operations, we will continue to advance objectives that enable us to manage our global Healthy Living program, including: ■ Securing the support and engagement of senior and local leadership.
■ Developing a robust, well-supported local champion team for proper program deployment.
■ Collecting data through the Healthy Living Six Critical Pillars tool.
■ Fostering collaboration with each business division to initiate one or more annual test-and-learn projects that are of interest to both the regions and the corporate HLLC.
■ Collaborating with at least one plant in each region on a pilot program designed to incorporate local wellness planning deployment into the TPM DMS (Daily Management System).
■ Translating Healthy Living educational material into local languages. Over the next ten years, we will expand our Healthy Living programs based on health and behavioral science informed by the data available to us. We will continue to provide resources and encourage activities that support the six pillars of our Healthy Living platform. Helping employees live healthier lives is part of how we care for them as individuals. We also hope they will take the encouragement they receive at work into their home life, where their example can help families and friends live healthier lives around the world.
Photo submitted by: Eugenija Meskenaite-Sadzeviciene | Lithuania Father and daughter, Liepāja Seaside Park and Blue Flag Beach, Latvia.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Health & Wellness | 242 EMPLOYEE EXPERIENCE
In this chapter: 2030 GOALS STRATEGY & APPROACH THE OWENS CORNING EMPLOYEE EXPERIENCE SUMMARY OF COMPENSATION AND BENEFITS GOING FORWARD
Because ensuring an excellent quality of life is an essential part of our sustainability journey, Owens Corning seeks to foster an environment of learning and growth in a caring, supportive culture. We believe that when we continuously improve the lives of our people, our company continuously improves as well. To that end, we are dedicated to providing a safe, healthy workplace and a meaningful, engaging employee experience.
Sustainability is essential to our operations, and we rely on our employees to bring our commitment to fruition. We do that by attracting top talent and creating an environment where they feel valued throughout their time at Owens Corning, from recruitment to retirement. By helping employees feel more engaged with their work and their teams, we can help them feel more engaged with the world, and in the process, they can help us fulfill our sustainability ambitions.
Photos submitted by: Brianne Bass | Rockford, Illinois, U.S. Posing with a baby elk at the Grand Canyon, U.S.
Our employee experience efforts align with the following UN SDGs: Sustainability Materiality Definition: We believe our employees should grow as people and as professionals while working at Owens Corning. We seek to attract the best people and provide every employee with the opportunity to develop and reach their full potential, in a work environment full of both challenge and optimism. The social data in this chapter marked with a + sign were independently assured to a moderate level by SCS Global Services. The social data in this chapter marked with a ^ sign were independently assured to a high level by SCS Global Services. For more information on the assurance process see About the Report, and for our verification statement please see Appendix F.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Employee Experience | 243 2030 GOALS THE EMPLOYEE EXPERIENCE
By 2030: In conjunction with our inclusion and diversity goals, we will make continuous improvements in recruiting, retention, training and development, mentorship and sponsorship, professional growth, and employee engagement.
To that end, we have established a number of specific targets. ■ 100% retention of high-potential talent between annual talent reviews.+
■ Internal fill rate of 75%-85% for leadership roles.+
■ Two “ready now” internal succession candidates for key leadership roles.+
■ Greater than 35% female representation and 22% racially diverse minority representation among successors for identified key roles.+
■ >95% of staff indicating they are frequently putting all their effort into several factors, including individual their work.^ and company performance. We ■ 90% staff and 85% primary workers response rate to our two global align our hiring strategy with local enterprise surveys.^ labor markets, especially as we grow outside the U.S. Other programs, such as flexible work arrangements, are designed to help employees maintain a healthy work/life integration. To foster a culture that optimizes STRATEGY every employee’s experience, we have Inclusive Recruitment established the following priorities: AND APPROACH We are working to reduce barriers to ■ Strategic Talent Mindset. We will talent acquisition and develop a more We attract and employ seek to balance the needs of our the best people, then inclusive workforce by appealing to company with the needs of our diverse audiences. In our efforts to cultivate their growth in employees. We can achieve this build the broadest possible talent pool, an inclusive environment through the creation of our Human we have established many significant that is full of challenge, Resources strategy and roadmap, innovations, including the following: and by enabling growth through connection, and optimism. ■ strategic resource allocation. The introduction of mobile-friendly applications. ■ Organizational Effectiveness. ■ We will foster an engaging work The removal of gendered language environment and operationalize from job descriptions. business strategy through impactful ■ The elimination of educational organizational development. requirements where they are not ■ Change and Inclusive Culture. We necessary. can collectively influence a culture ■ Strategic appeals to diverse that values diversity by developing populations by developing inclusive leadership capabilities, relationships with specific stewarding equitable human universities and professional resources practices, and facilitating organizations. organizational change. ■ Investigations into ways to In addition, we are committed to encourage diversity in recruiting Photo submitted by: providing employees with competitive Teresa Flores | Toledo, Ohio, U.S. and to reduce turnover within our TM TM compensation and benefits, as well The Pink Panther at the PINKBAR launch manufacturing operations. party, World Headquarters in Toledo. as additional incentives based on
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Employee Experience | 244 It’s hard to These arrangements are temporary Talent Acquisition and Retention. COVID-19 overstate the or permanent depending on the Due to the uncertainties surrounding impact that employee’s needs. The employee and the global pandemic, our ability to & THE the COVID-19 manager work together to develop the recruit talent was inhibited greatly as EMPLOYEE pandemic has most appropriate schedule, authorize we needed to fully understand the had on every the agreement, and ensure work is long-term implications of COVID-19 EXPERIENCE aspect of our completed on time and objectives and its effect on the economy. Where lives, and work life at Owens Corning are met. With stay-at-home orders retention issues are concerned, we also is no exception. We responded to the in place around the world, Owens realize that some individuals’ decisions health needs of our employees by Corning worked even more diligently might be based on factors beyond our providing additional, temporary benefits to be cognizant of the needs of our control as a company. Overall turnover in conjunction with our standard employees. Options for reduced decreased slightly from 17% in 2019 benefits. Our full-time employees in the hours and temporary furloughs were to 15.5% in 2020. Turnover among our U.S. and Canada received an extra 80 made available, allowing individuals primary employees was 17% in 2020, hours of sick pay, as well as 80 hours to choose to reduce their work while turnover among staff employees of what we refer to as COVID-19 pay schedule to manage COVID-19-related was 11%.+ or quarantine pay, which was primarily responsibilities at home. offered to people who had potentially contracted COVID-19 or were waiting Virtual Work Experiences and Listening to Employees for test results. Benefits. With many employees around the world needing to work As the pandemic evolved, we Flexible Work Arrangements. We from home, Owens Corning quickly conducted surveys and focus groups have long seen providing flexible work adapted to the need for greater virtual with employees in each region, to arrangements as a key part of enabling capabilities. Business travel was understand what support would be our people to achieve work/life severely curtailed, and meetings and most useful to them. Many employees balance. As stay-at-home orders have training sessions took place online. Our responded with appreciation for the caused so many people to also serve on-site health clinics were closed, and company’s efforts to proactively as de facto homeschoolers, caregivers, in-person health and wellness events manage the situation through and more — all while meeting our such as biometric screenings were increased flexibility about when shared objectives as Owens Corning canceled. and where their work needed to be employees — the need for flexibility done. This feedback reinforced the has seldom been greater. The work In addition to promoting online work importance of letting employees and arrangements we have offered in the experiences for employees whenever their direct leaders work together to past include the following: feasible, we also looked for ways to decide how to make the best use of support our employees’ health and ■ that flexibility. Part-time. Fewer hours than a full- wellness through virtual tools. We time schedule. heavily promoted our long-standing ■ Job sharing. A special form of part- employee assistance program time work where two employees (EAP), and we are also working to share the responsibility of one full- communicate the value of telemedicine time role. solutions for our employees, especially as it relates to antibody testing. For ■ Flexplace. In which an employee employees who may require some works a full-time schedule but works emotional support during these trying off-site for a portion of the time. times, our mental health provider, Beacon, also offers virtual counseling ■ Flextime. In which an employee where people can talk with counselors works a full-time schedule in the about stress, grief, relationships, work/ office but start and end times life balance, and more. Psychiatric fluctuate. This occurs within services are also available to the guidelines determined by address mental health concerns and management and ensures the medication needs. More information employee works within core hours about these programs is in the Health every day. & Wellness chapter. ■ Compressed work schedule. In which an employee performs a full- time job in fewer days than a typical work week.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Employee Experience | 245 We intend to elevate the employee These initiatives fall under the THE OWENS CORNING experience while also cultivating the following categories: future leaders of our company. The ■ Recruiting and retaining top talent. EMPLOYEE EXPERIENCE resources we have established have ■ We want to create also been aligned to more closely meet Employee engagement. the needs of our business, supporting ■ Succession planning. extraordinary experiences enterprise growth and sustainability. and help our employees ■ Employee learning and As we seek to create an environment in flourish, from recruitment to development. retirement. which every employee feels valued and has the opportunity to develop to their To meet our 2030 Employee fullest potential, we have established Experience goals, we have a wide several initiatives designed to ensure range of initiatives in place, which are an enhanced experience for everyone. detailed on the next page.
Photo submitted by: Teresa Flores | Toledo, Ohio, U.S. Harlem Dance Theater performing at the World Headquarters in Toledo, prior to COVID-19-19 restrictions.
2030 TARGETS & PERFORMANCE
Retention
100% retention of high-potential talent between annual talent reviews.+
We want to ensure that our top talent remains proud members of the Owens Corning team. According to the Society for Human Resource Managers (SHRM), 100% is the top quartile for outstanding companies, which makes it a suitable goal for Owens Corning.
Percentage of High-Potential Talent Who Stay
2018 BASELINE 2019 2020
96% 98% 97%
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Employee Experience | 246 Recruiting and mobile options around the world, Diversity in Our Workforce Retention Initiatives which further increases accessibility for users. With this technology, we can Almost 47% of U.S. hires were from Our recruitment approach begins with communicate a consistent Owens minority groups in 2020, a slight + breaking down the barriers that might Corning culture around the world. At the increase over 2019. keep qualified people from joining us, same time, though, we can customize then giving our team members every our materials to match the nuances opportunity to flourish as they remain of each region we serve. For example, with us at Owens Corning. It’s part of our externally facing career webpages our holistic approach to sustainability, as are designed to match the needs of the it helps improve the quality of people’s region and celebrate the uniqueness of lives around the world and fosters an our various audiences. 7% environment where people can see their INCREASE values reflected in the company’s work. Diversity in Our Workforce. By The following initiatives are central to our employing people with varied approach to recruiting and retaining the backgrounds, experiences, and best talent. perspectives, we are able to deliver more for our customers. That’s why we 40% 46% 47% Internships. Our award-winning believe our workforce should represent internship program has not only the full spectrum of humanity. provided college students with valuable work experience, but it has also been We are working to increase gender 2018 2019 2020 an essential part of our strategies equality in the workplace, which for recruiting new talent. While this strengthens our business. We have year’s COVID-19 restrictions have also established a set of guidelines made it impossible to implement our designed to help transgender and gender traditional internship programming, we non-conforming employees transition have been able to provide a range of in the workplace. In addition, diverse virtual internship experiences. In these leadership is an essential part of the instances, students have learned more overall employee experience as it helps diverse colleagues envision their own Inclusive Leader training, which about our business, and in the process, empowers leaders around the world we have been able to keep Owens career paths. Please see the Inclusion & Diversity chapter for more about these to be inclusive recruiters, is now in its Corning top of mind as these young second year, and we have continued to people begin to enter the workforce, initiatives, as well as our approach and progress in this area. expand its implementation throughout possibly recruiting them through one of our organization. We have also trained our Early Career programs, which are Master Assessor Training. Owens a group of employees to serve as outlined below. Corning has continued to invest in the Inclusion & Diversity champions in Technology Investment and Branding skills of our recruiters and leaders by our campus recruiting efforts. This for Recruitment. With our global increasing participation in our Master program is described in the Inclusion & presence, Owens Corning recognizes Assessor training and certification. Diversity chapter. Through the Master Assessor program, that we must balance the varied needs of Early Career Programs. Our long- communities around the world with our recruiters are trained to evaluate potential employees based on a full range commitment to inclusivity is own unified global approach. To address inherently linked to maintaining a this, we have now fully implemented scope of capabilities that go beyond job history alone. sustainable pipeline of diverse talent. technology that standardizes our Through our Early Career programs, we recruiting activity under one platform. We believe all Owens Corning can foster new talent — often directly Today, anyone who applies for a position employees have a role to play in from university. These new hires are a at Owens Corning — anywhere in the recruitment as they represent the constant source of invigoration for our world — uses the same technology. employment brand in their everyday team, as their diverse approaches and We are now able to share metrics and lives. Therefore, in addition to the backgrounds provide us with exciting accountabilities across all regions in a investment we place in our talent new perspectives. In addition, Early way that had not been possible before. acquisition professionals, we seek Career programs enable us to establish In addition, we can now offer the same to improve the recruiting capabilities long-term plans for a diverse pipeline of our staff around the world. Our of future leaders.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Employee Experience | 247 High-Performing People. Owens Corning is dedicated to promoting an exceptional environment where 2030 TARGETS our top talent comes together in a & PERFORMANCE commitment to excellence. We believe that happens through clear objectives, As of 2020, we have retained 87%+ of Early Career Development effective performance management, Program participants after one year, and 64%+ of participants after and a structure that includes five years. This surpasses benchmark retention rates obtained from talent review, succession planning, the National Association of Colleges and Employers (NACE), whose development, and compensation. We 2019 data (the most recent available) indicates 71% retention after view performance management as one year and 50% after five years.+ a consistent and ongoing dialogue between employees and leaders regarding staff members’ overall performance.
We are continuing to evaluate the way we track and develop our top Celebrating Employee Milestones. Owens Corning employs 19,000 individuals, talent to ensure that our programs many of whom have been with the company for most of their careers. As of are effective. As we explore the December 31, 2020, nearly 3,600 employees had served 20 years or more with retention patterns among this group, Owens Corning, with the longest term being 59 years. We continuously work we have determined that there toward providing a positive employee experience where talented people have are opportunities to make them great opportunities to grow their careers — and we believe the years of service more effective. We are establishing that so many of our employees have dedicated to our company are a testament programs and work streams to to our success. The pandemic caused us to postpone the annual service award address this and expect to begin ceremonies held at facilities around the world; in many instances, we hope to implementing new initiatives soon. celebrate 2020 milestones along with 2021.
Average Workforce Tenure by Region (in Years)
12 13 YEARS YEARS
7 YEARS 7 YEARS
ALL NUMBER OF EMPLOYEES REGION PRIMARY STAFF EMPLOYEES SERVING OVER 2O YEARS Asia Pacific 7 7 10 357
Europe 12 12 13 1,014 Latin America 7 7 8 133 North America 13 13 12 2,094
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Employee Experience | 248 Employee Engagement 2030 TARGETS Initiatives
& PERFORMANCE Leadership Surveys. As we strive to Employee Engagement create a workplace where employees feel happy and engaged at work, we >95% of staff indicating that they are frequently putting all their effort have established a set of metrics to into their work.^ guide us. For example, for the past several years we have asked salaried 2017 2018* 2019 2020 employees to take part in a leadership Employee Engagement (% of actively engaged survey. One of the items in this survey 97% 97% 97% 98% employees) aims to measure the extent to which % of total salaried employees responding 87% 89% 89% 89% employees are actively contributing to their work by asking the question, *2018 is the baseline year for our 2030 goals. “I frequently feel like I am putting all my effort into my work.” We have transitioned to conducting this survey We measure engagement by combining the percentage of people who every two years to minimize survey respond Agree or Strongly Agree on our annual employee engagement fatigue and allow leaders time to work survey. This is a common practice among the engagement surveys on development areas identified in against which we set our benchmarks. the individual reports. In addition, we reworked the survey considerably for 2020, with questions that challenge 2018 2019 2020 2030 GOAL leaders to demonstrate continued improvement, creating a new benchmark. 97% 97% 98% >95% New Benchmark for Engagement. A question regarding discretionary effort is useful for comparing with external 98% responded Agree or Strongly Agree; this figure places us high above the benchmarks, and it will continue to be SHRM average of 69% who respond similarly. part of our survey and reporting. The new version of the survey will help us understand the emotional connection 90% staff and 85% of primary workers response rate to our two global employees have to the company, their enterprise surveys.^ leaders, and their work, which will help Every other year, our staff is asked to complete a Leadership Capabilities for provide a more holistic and nuanced Growth survey, and our primary population is asked to complete an Operation measure of employee engagement. Excellence survey. This additional metric is in keeping with our inclusion and diversity goals
Percentage of Staff Percentage of Primary Workers 2030 Goals 2030 and approach, and it will help us guide STAFF GOAL our leaders’ growth. For 2020, 88% 100 90% Response of responses from staff to the new benchmark questions are classified as 80 2030 engaged or fully engaged.^ PRIMARY GOAL 60 85% Response
40 89% 80% 89% 80% 89% 80%
20
2018 2019 2020 (BASELINE) Our survey response rate is already well above the 30-40% average response rates for internal employee surveys, and our goal is to increase it even further over the next ten years.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Employee Experience | 249 Succession Initiatives 2030 TARGETS
To maintain a truly inclusive environment, all & PERFORMANCE employees must feel that they not only belong, but they also have paths for advancement. We pay close attention to the development of Succession Planning employees from minority groups, providing the Internal fill rate of 75%-85% for leadership roles.+ We aspire to have kinds of opportunities and projects that enable a mid-level, director, and vice president-level roles filled by current Owens diverse workforce to thrive. In addition, we look Corning employees, either through a promotion or as a lateral move, as at how many employees are part of our career a percentage of all internal fills and external hires for these roles. As we succession plan and how we can prepare our build our diverse talent pipeline, promoting from within strengthens our people for even greater opportunities. inclusive environment as employees see diversity among our leaders. Each year, we implement a three-phase strategy to anticipate staffing needs and develop Percentage Of Leadership Roles Filled From Within succession plans:
1. Strategy Planning. In the third quarter, 2018 BASE YEAR 2030 GOAL business leaders from across the company 73% STAFF 75-85% come together to discuss our company’s within range goals and how we will reach them. This 2019 in-depth look at the company allows our 84% STAFF human resources department to anticipate staffing needs. 2020 87% STAFF 2. Operational Planning. In this phase, we closely examine the company’s budgets, 0% 100% schedules, and needs. This enables our human resources department and company leaders to anticipate specific talent needs and cultivate the pipeline for upcoming positions. Ensure two “ready now” internal succession candidates for key leadership roles.+ We calculate this by taking the number of unique 3. Talent Planning. The final phase looks at candidates who are ready for promotion into the key leadership role our strengths as well as the gaps in the divided by the number of succession roles in that business unit. talent pipeline, including succession at the Although strong candidates may be on multiple succession lists, officer level. Critical discussions center on each individual is counted only once within that business unit. development and business growth. As we proceed through the evaluation process, we Succession Pipeline Readiness ask ourselves the following questions: 2.5 ■ What capabilities are required in the future that we do not have today? 2030 GOAL ■ Is it possible to grow these capabilities 2.0 internally? 2.0
■ Are there any retention concerns? 1.5 ■ What is the existing talent pipeline? 2.2 2.2 2.1 ■ What key development needs should our learning and development efforts 1.0 address? As part of this process, we evaluate our employees’ overall readiness for future roles and 0.5 experiences. At the same time, we develop plans for our employees’ growth, ensuring that the next steps are in place for their career development. 0.0 2018 2019 2020 BASELINE
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Employee Experience | 250 Learning & Development 2030 TARGETS Initiatives
& PERFORMANCE The investments we make in every employee benefits both the individual and the company. Our learning and development opportunities extend throughout our employees’ time at Owens Corning, from early career development and mid- career advancement to executive-level cohort learning. We seek to deliver these experiences by aligning them with our business strategy, and we pursue them Diversity in Succession+ through the following initiatives. Greater than 35% representation of females and 22% representation of racially diverse Aspiration and Goal Alignment. We Strategy and Commercial Skills. In minorities as successors for our strive to support employees’ goals addition to providing our employees identified key roles. and align them with opportunities with tangible skills, we also endeavor inside Owens Corning. This includes to advance their ability to think critically mentoring, performance management, and strategically. Employees hone Female Percentage of Successor Pool participation in town halls, and OC these skills through workshops and One, an annual global leadership projects focused on customer-inspired meeting with approximately 150 of the growth, product management, human- company’s top leaders. centered design, organizational design, and strategy execution. 25% 26% 28% >35% Building a Stronger Connection 2030 GOAL with People. A critical part of our We also work to make sure our leaders development is learning how to lead understand the fundamentals of our 2018 2019 2020 BASELINE and work with a diverse group of products. For example, the leadership colleagues. Through programs such team in Chambéry, France, improved as the OC Leadership program, the their strategy and commercial skills in Leading at the Next Level program, August 2020 when they took part in an Basadur Problem Solving training, in-house virtual training in glass fusion. Coaching for Impact, and Leading Pink Team members learned more about RDM Percentage of Successor Pool (previously called People Leadership glass manufacturing, as well as the raw Fundamentals), we offer valuable materials that make up glass and their opportunities for advancement. properties. The leaders took part in this training because they recognize the We have also begun to integrate new 16% 14% 18% need to fully understand our products >22% curricula into our leadership training. 2030 GOAL and how they’re made; in fact, so much We have invested in a new program, was gained from the training that a Coaching for Growth, an accessible, 2018 2019 2020 second session was scheduled for BASELINE scalable, and modular approach that later in the year. will be of great benefit over the coming years. We believe the programming Operational Skills. Our global training we have in place will help our leaders and development is rooted in Total establish trust, build relationships, and Productive Maintenance (TPM) cultivate compassion and empathy for methodology, designed to guide the Our goals about female and RDM employees’ unique situations. capture and transfer of knowledge representation in leadership are covered and provide employees across our in the Inclusion & Diversity chapter. manufacturing facilities with the skills they need for success. Our programming includes one-point lessons, 3D diagramming, hands- on test-and-learn, and one-on-one coaching and mentoring. You can read more in the TPM section of this report.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Employee Experience | 251 Assignments. We provide We evaluate the effectiveness of much Developing Strong Leaders. The opportunities for employees to sharpen of our training using the Kirkpatrick same biannual survey that we use to their leadership skills by putting them model, which measures the extent measure employee engagement is also to use in real-world situations, leading to which participants benefit from a development tool for our leaders. It groups, projects, and assignments. learning opportunities. The model asks employees to provide feedback Other possibilities may include gauges effectiveness on four tiers: about their direct leaders on behaviors becoming an affinity group leader, ■ Reaction. Did the participants enjoy that relate to our internal leadership working on special projects, and the training? capability model. Over the past few rotational assignments. years, leaders have been working ■ Learning. Did the participants gain hard to close their personal capability We track the progress of many of new knowledge? gaps, and it was evident that new our formal learning and development challenges were needed. Consequently, activities across the company ■ Behavior. Will the participants we significantly revised the 2020 staff through data recorded in our learning apply the learning to their everyday survey to reveal new development management system (LMS). Each experience? opportunities for our leaders. facility reports participation in formal ■ Results. What impact has the learning programs such as classes, training had on performance e-learning courses, and structured on- metrics? the-job activities. Performance Reviews. Annual Among our 2020 goals, we included performance reviews are used a key performance indicator in which as an opportunity for managers an average of 20 hours of training is and employees to discuss both provided for our primary workforce, as performance and career development well as 10 hours for our non-primary goals. These are supplemented by (salaried) workforce. For 2020, we quarterly feedback conversations recorded an average of 17 hours and as well as ongoing coaching and 9 hours, respectively, in our learning mentoring. management system (LMS).+ Data + include any training that was recorded Review and Appraisal Percentages in our LMS for the year, primarily for the formal learning programs 2017 2018 2019 2020 conducted across the company. Male 99.9% 99% 99.8% 99.5% The pandemic led to many changes in our training programs, and some Female 100% 99% 99.6% 99.6% were paused while we worked to create virtual training alternatives, temporarily reducing the availability Of the 1% of staff employees who did of these courses. Most of the learning not receive reviews, most were either and development activities that take on leave during the year, recently place in Owens Corning are considered promoted to a staff role, or hired after informal learning, such as coaching, November 1, 2020. Employees are mentoring, social groups, projects, not required to have a review until assignments, and suggested reading, after three months of employment. and these are not captured in the LMS.
Photo submitted by: Merry Qu | Qingdao, Novia, China Training at the Novia plant (top). Novia half-year review meeting (bottom).
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Employee Experience | 252 SPEAKING OF SUSTAINABILITY
Rob Martin Starting a new job is always an adjustment, even in ideal circumstances. For Rob Martin, though, that adjustment was compounded by the fact that he joined Owens Corning in the midst of a global pandemic. Rob started as a communications lead supporting our finance and legal departments in June 2020, and he offers his perspectives on Owens Corning and his own onboarding experience.
On the interview experience during the pandemic really focuses on developing talent internally. Everyone is challenged to look for opportunities to improve themselves Everyone had to adjust to new challenges, and that includes within their role, but also look for opportunities to advance how you interview and hire someone. Through my entire their career in other roles within the company. interview process, I never met the individuals who I would come to work with in person. All of it was through the On the importance of Owens Corning’s social magic and wonder of technology. Luckily, that didn’t put a responsibility damper on the experience at all; actually, I think it showed a level of ingenuity in that we could still get to know each Of note to me especially was the commitment to inclusion other and collaborate and get a sense of how we might and diversity across the company. Especially in this time, it’s be able to work together from hundreds and hundreds important that words are backed up with action, and it was of miles away from each other. Everyone throughout the very clear to me early on that Owens Corning was putting entire process was extremely welcoming. They checked tangible action behind the words. We’re putting dollars behind in on me periodically to see how I was doing outside of the commitments that we’re making, and we’re putting work, personally and emotionally. So that was the earliest volunteer hours behind the organizations that we support. indication that I was joining a team of people who would We’ve had so much social unrest and social injustice in the actually care about me. country, and I think it was really brought into the spotlight this year. It’s important to see companies who were committed to On the potential for growth within social justice and equality across its workforce even before Owens Corning these unfortunate events. To see a company that is really committed just makes you feel that extra bit of pride in who This was an exciting opportunity for me. I wake up every you work with and who you work for. day just as excited as the day I said yes to the job offer. And I know there’s a ton of growth potential in this role and within this company. It’s been very clear that Owens Corning Rob Martin Communications Lead, Legal and Finance, WHQ, Toledo, Ohio, U.S. Hiking in Oahu, Hawaii, U.S.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Employee Experience | 253 Equal Remuneration objectives. Most staff employees SUMMARY OF are eligible to receive additional cash Equal remuneration is a key element incentives through the Corporate COMPENSATION of a truly diverse and inclusive Incentive Plan (CIP) based on the environment, as we are dedicated company’s year-end results and their AND BENEFITS to ensuring equal treatment for all individual performance. The corporate employees. Our understanding of We believe employee component is determined through EBIT pay equity, and the ideal means of compensation should targets and a consolidated corporate measuring this concept, continue to be performance-driven, target, while the individual component evolve as we grow as a company. is based on each employee’s annual market-competitive, Owens Corning has conducted equal performance. and fair. pay reviews every other year for the last decade. These reviews include Long-Term Incentives Through base and variable pay, a robust statistical analysis of pay Our long-term incentives give Owens we seek to reward both individual equity across all our U.S. salaried (and Corning an opportunity to further our and collective contributions to our most of our global salaried) workforce. sustainability goals while investing in our business’s success. Base salaries are Consistent with the company’s employees’ future, providing opportunities determined by the following factors: commitment to “equal pay for equal to build wealth, and recognizing ■ Job responsibility. work,” where this review indicates pay extraordinary performance. These long gaps that cannot be explained through ■ Benchmarking data on market term incentive targets and awards experience, performance, job level and competitiveness. are reliant on strong and sustained related factors, they are remediated operational performance and making ■ Individual competencies. through pay increases. Further, Owens progress on many of our sustainability Corning does not solicit applicant goals, including reductions in emissions ■ Job performance. pay data, to avoid inheriting any pay and waste, the promotion of occupational The design, application, and bias of prior employers. In 2019, we health and safety, and employee administration of our global began a partnership with a third-party engagement and retention. compensation programs adhere to group, Mercer, to help us look at the a consistent philosophy, one that issues surrounding pay equity in a way We offer these incentives to a ensures equitable treatment for that better reflects the current best in very select group of non-senior employees, regardless of gender, age, class practices. In addition to biannual management employees at the director or ethnicity. external reviews, we conduct routine level and below. They consist of internal compensation assessments. restricted shares or restricted stock Compensation at Owens Corning is units, depending on country. designed to be performance-driven, Variable Incentive Plan fair, and competitive within the local In addition to base pay, most primary labor market. Base pay rates are Full-Time Employee employees are eligible to participate determined by job responsibility level Benefits at Select Sites in Owens Corning’s Variable Incentive and are targeted at the market median Plan (VIP) at the plant level, which In addition to providing fair (the 50th percentile of comparable is dependent on individual and plant compensation for our employees, companies with whom Owens Corning results. Through this compensation Owens Corning offers an array of competes for talent). Base pay rates program, above-average total cash benefits designed to attract and retain are reviewed and updated annually, compensation is provided when a workforce that is committed to based on the job performed and the a location performs well, leading excellence. Benefits are made available local market wages for similar skills, to to a competitive structure overall. to regular, full-time employees and some ensure we are providing fair wages. Employees’ compensation is part-time employees working at least Our compensation team has proportionate to their role’s impact and 24 hours per week. These benefits vary performed a thorough analysis of the contributions the individual makes by country, business unit, and work our U.S. population and all minimum to the company, which ensures fairness. location. Not all benefits are available wage increases that are current and at all locations. These benefits include Corporate Incentive Plan approved, but not yet enacted. We are retirement savings plans, insurance, currently compensating our people Owens Corning’s compensation educational benefits, job security at or above all established minimum philosophy is to use all elements of initiatives for redeployment, and more. wage requirements. For Owens compensation effectively, aligning The benefits highlighted here pertain to Corning, minimum wages are generally employees with the goals of the our U.S. workforce. A more complete list not relevant, as most entry-level Owens company and its businesses and can be found in Appendix D. Corning positions require a higher level encouraging our employees to meet of skills or knowledge than jobs at and exceed desired performance which the minimum wage would apply.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Employee Experience | 254 Recently, we have begun providing several new benefits at many of our sites. These benefits go beyond standard health insurance and other perquisites, as they better reflect the needs of our diverse workforce. By offering these new or enhanced benefits, we can state even more definitively that we are committed to creating an inclusive work environment that truly values the priorities of our staff. OUR ADOPTION Benefits to Assist in Building a BENEFITS MAKE Family. Our current health plan provides coverage for the diagnosis STARTING A and treatment of infertility as a medical condition. We expanded FAMILY EASIER fertility enhancement coverage in 2020 to include a lifetime medical benefit of up to $15,000 and a $5,000 When Luis Sifuentes and his husband Justin married in 2016, they knew annual prescription benefit, as well they wanted to start a family. In fact, Owens Corning’s adoption benefits as comprehensive and advanced were a big reason Luis chose to join the human resources team at our treatments within IRS guidelines for Irving, Texas, U.S., plant. “We were grateful Owens Corning had a benefit to Aetna self-insured medical plans. offset the costs of adoption. A lot of companies don’t,” Luis said. He and Justin began their adoption research right around the time Luis was hired For U.S. and Canadian employees who in June 2019. are looking to adopt a child under 18 years of age, we now offer expanded What the couple didn’t know was that on January 1, 2020, the benefit benefits that can be put toward the would expand from $5,000 in a lifetime to $10,000 per event, with a expenses related to adoption, including lifetime cap of $20,000. This added benefit proved to be exceptionally legal fees. That benefit has been helpful to Luis and Justin, as their adoption process was about to become expanded in 2020 to $10,000 per event, a whirlwind of activity. with a lifetime limit of $20,000. While Luis and Justin were told that it could take 18 months to be selected In addition, the benefit will now as parents — instead it took two days for a birth mother to choose them. include coverage for expenses The very next day, they were told that their baby, a newborn girl named related to surrogacy as well as egg Amelia, had a congenital heart defect and would soon require surgery. and sperm donation and freezing. “That was the hardest week of my life,” Luis said. “As a parent, you worry These expansions allow us to assist about any health scare. But we had one of the best pediatric cardiologists employees in building a family, however in the country. We were amazed at how resilient Amelia was.” that may look for them. Amelia has continued to thrive and gain weight. At nine months, Luis Scholarships. Employees who have reported, “she can go from one side of the room to another in a matter of worked at Owens Corning for at least seconds. She’s exploring everything right now. She’s great. You can’t tell one year are eligible to apply for the what she went through.” Owens Corning Employee Scholarship for a higher education degree. In addition to the increase in benefits from Owens Corning, Luis and Recipients are selected based on Justin are also thankful for the additional support they’ve received from manager recommendations, statement their coworkers and management. His Irving team threw him a baby of career goals, demonstrated shower, and the company worked with Luis to accommodate him with the leadership, and past academic rotations that are part of his job. According to Luis, “the Irving employees performance. were so accepting and supportive of us as we started this adventure.”
To promote our goal of access to education and academic excellence, Photo submitted by: Luis Sifuentes | Irving, Texas, U.S. the Dependent Employee Scholarship Luis with his husband, Justin, and was established as an enduring gift daughter, Amelia. for dependents of Owens Corning employees, helping those who
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Employee Experience | 255 Relocation Assistance. New hires and employees transferring from one site to another may be eligible for Labor Relations. Owens Corning relocation assistance. This may include prides itself on being a good corporate reimbursement for home sale, transition citizen and respecting the rights of our demonstrate scholastic aptitude expenses, lease cancellation, final employees. This includes the rights to and financial need reach their moving expenses, and/or tax assistance. fullest potential. In 2020, $199,208 exercise freedom of association and in scholarships was awarded to Transition Assistance Programs. collective bargaining. In addition, we Owens Corning employees and their Our goal is to help employees through seek to partner with suppliers who dependents. every level of their career. For example, share this philosophy. Owens Corning seeks to help employees Approximately 63% of Owens Corning In addition, full-time employees seeking prepare for retirement with on-site primary employees are covered by to participate in a graduate program planning workshops. Owens Corning has collective bargaining agreements.+ while continuing their employment studied its retirement program to ensure This includes relationships with with Owens Corning may be eligible for it fully supports employees throughout unions, work councils, and employee education reimbursement. this transition. associations around the world. Healthy Living. The Healthy Living To that end, Owens Corning maintains The specific language and scope of wellness program provides employees a program through which employees our labor agreements vary from site and their covered adult dependents nearing retirement are given the to site. All are structured to recognize with resources to better manage their opportunity to work part-time while still the importance both Owens Corning health. Programs include coaching to receiving full-time benefits. Both Owens and our workers place on health and encourage a healthier lifestyle, support Corning and individual employees safety as a guiding principle and core for expectant mothers, and annual have benefited from this program, as value. In all our facilities, employees health assessments and screening transitions are made easier overall are trained to understand, appreciate, opportunities. For some programs, and employees can retire confidently, and mitigate risk in the interest of rewards for participation are also knowing their legacy will be preserved. provided. More about our Healthy their own safety and health, the safety Living program is included in the Health For employees who leave the company and health of those around them, & Wellness chapter of this report. due to job eliminations, and who will and of the organization overall. Other be pursuing careers elsewhere, Owens elements that are in these agreements, Life and Disability Protection. Full- Corning partners with a third-party in addition to employee health and time employees receive $50,000 of organization to offer a variety of career safety, include working conditions, basic life insurance coverage. For transition programs. Individuals benefit discrimination or harassment, training, staff employees who have a qualifying from a personalized approach to career and career management. disability, our short-term disability plan transition with flexible access, state- replaces 100% of pay for 30 working of-the-art technology, and connections days (or six weeks), and 60% of pay for to critical resources. Career transition the remainder of the disability (up to 18 assistance is not available for employees Photo submitted by: months). Long-term disability benefits Jan-Christian Stenroos | Parainen, Finland who are terminated for cause. Supervisor Kristian Lindström, OHS-Manager Eero of 60% of eligible pay begin after 18 Rantala and Production Worker Mika Suotonen months for qualifying disabilities. having a talk during work.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Employee Experience | 256 Notice Periods for Operations Changes
The company uses a variety of methods to ensure that workers are informed of operations changes. These include our global intranet site, email communications, and leadership meetings with team members. Photos submitted by: Claudia Cantu | Houston, Texas, U.S. Owens Corning provides at least the minimum notice required, Linda Gomez (right), and Devarion Scott and Brian which varies by local legislation and collective bargaining Shepard, working safely at the Houston plant. agreements in the regions where we operate. In many jurisdictions, our union and self-represented employees enjoy similar notice periods because of strong employee relations and labor practices, as well as applicable regulations.
U.S. Leave of Absence Policies
In the United States, Owens Corning grants up to 12 weeks of leave as specified by the Family and Medical Leave Act (FMLA). An additional, unpaid leave of absence for personal reasons may be granted when approved by the appropriate management. Maximum leave for personal reasons is 60 days, unless approved by the business unit or process area vice president of human resources. Personal reasons may include education, family issues, and more. Additionally, U.S. salaried employees are allowed up to four weeks of bereavement leave in the event of the death of a spouse or a child under the age of 18. For other immediate family members (siblings, parents, grandparents, and children over the age of 18), five days of paid time off is provided.
For U.S. salaried employees, Owens Corning provides six weeks of short-term disability leave for the birth of a child, and eight weeks if the delivery occurs via C-section. Upon completion of the short- term disability benefit, birth parents are provided an additional two weeks of paid time off. Non-birth parents receive two weeks of paid time off after the birth of the child, as do employees who have adopted a child.
Our policies for routine leave, such as sick leave, personal days, and standard paid time off, vary by region, according to local customs, regulations, and laws. In the U.S., the amount of annual standard paid time off granted to salaried employees is determined by an employee’s length of professional experience.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Employee Experience | 257 As Owens Corning looks forward to GOING 2030, we recognize that the progress we have made serves as a platform upon FORWARD which we can build. The success we have seen in creating an inclusive and engaging workplace gives us a new vantage point where we can still improve, and continuous improvement is very much our goal.
Owens Corning intends to improve upon our analytics capabilities in the coming years, so that we can more accurately measure our performance against existing benchmarks. By more effectively leveraging analytics technologies, we will be better equipped to scale our learning and development initiatives, so that all salaried employees will have equitable access to the opportunities for growth that exist within Owens Corning.
In addition, Owens Corning will work to improve cultural competence throughout our entire global leadership structure, so that our leaders are able to work and interact with people from different backgrounds in a way that facilitates deeper understanding and better communication.
We anticipate that the employee experience of the future will be different from the pre-COVID-19 era. Our leaders are deeply engaged in exploring what we are learning about increased workplace flexibility, empowering our employees, and what the company needs to do to adapt to evolving employee expectations. To offer an exceptional employee experience, with support for professional and personal development, we will — like many companies — need to consider policies, technologies, and mindsets that support employees’ individual needs.
Photo submitted by: Claudia Cantu | Houston, Texas, U.S. Edwin Luke sweeping up.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Employee Experience | 258 INCLUSION & DIVERSITY
In this chapter: 2030 GOALS STRATEGY & APPROACH INITIATIVES PERFORMANCE GOING FORWARD
This year has been truly historic. One reason for that is all around the world, individuals and companies have given greater voice to the idea that inclusion and diversity are essential to our society. Owens Corning has long been committed to fostering an inclusive workplace, one where employees feel valued, understood, and inspired to bring their whole selves to work.
We seek to ensure that each person we work with has an opportunity to thrive in a fair, healthy, and high-performing environment, one that represents people from various racial, ethnic, gender, religious, language, socioeconomic, family and cultural backgrounds, as well as people with different lifestyles, experience, and interests. In doing so, we are fulfilling Owens Corning’s overall sustainability efforts, which are designed to improve the lives of everyone with whom we interact.
Photo submitted by: Amanda Meehan | Toledo, Ohio, U.S. LeTort Stream, Carlisle, Pennsylvania, U.S.
Our inclusion and diversity efforts align with the following UN SDGs: Sustainability Materiality Definition: We aim to foster an inclusive and diverse environment, one which represents a range of people with various racial, ethnic, gender, religious, language, socioeconomic, and cultural backgrounds and various lifestyles, experience and interests, engaged and working together to create a fair, healthy, and high-performing organization. Inclusion enables employees to feel valued, understood and inspired to bring their whole selves to work. The social data in this chapter marked with a + sign were independently assured to a moderate level by SCS Global Services. For more information on the assurance process see About the Report, and for our verification statement please see Appendix F.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Inclusion & Diversity | 259 2030 GOALS FOR INCLUSION & DIVERSITY
We seek to attract and develop the industry’s best talent — rich in diversity and highly capable. Once they’ve joined us, we want to remove barriers and empower all employees to unlock their full potential. When we succeed, we open new pools of talent, which leads to workforce and leadership teams that are connected to and reflective of the communities in which we live, work, and serve.
Our inclusion and diversity aspirations drive our goals here, as well as the targets we have set for the Owens Corning employee experience. The way we hire, support, develop, reward, and engage employees is linked to our culture of appreciation that recognizes STRATEGY the unique value of everyone on the team. We strive to consistently take actions that advance inclusion and AND APPROACH diversity both in our workplace and beyond. Inclusion and diversity are essential Our 2030 targets for inclusion and diversity work to our business philosophy, starting in conjunction with our targets for the employee with our leadership and extending experience, which are described in detail in that throughout our operations. chapter. ■ 35% of global mid-level leader, director, and At Owens Corning, the decision to place inclusion before vice president roles are filled by women.+ This diversity was a conscious one. That’s because an inclusive is an increase from our current internal goals, environment — one that embraces diversity, recognizes the reflecting our determination to continue improving value of diverse teams, and facilitates contributions from female representation in our senior leadership and people of different backgrounds and varied points of view leadership succession strength. — enables diversity to flourish. Employees who feel valued, understood, and inspired can bring their authentic selves to ■ 22% of our U.S. mid-level leader, director, and work every day, which benefits the company as a whole. vice president roles are filled by racially diverse minorities.+ Like our goal for female representation, Research continues to bear out the importance of fostering this target is an increase from our prior goals. This an inclusive and diverse workforce. Well managed diverse voluntarily disclosed data is only available for our teams make better decisions faster and outperform less U.S. workforce. diverse teams. Inclusive leadership releases their power and potential, and leads to innovative solutions. An inclusive ■ 100% of our people leaders, from first level environment is a critical foundation for Owens Corning, as leaders through mid-level leaders, directors, high-performing, highly engaged teams join together to help and vice presidents have attended our internal us implement our strategies and live our values. inclusive leadership training by the end of 2021.+ Our definition of diversity is broad, capturing many dimensions of human experience. It goes beyond physical differences to include an individual’s values, as well as the cognitive, relational, occupational, and societal distinctions that shape that individual’s perspective and how they experience the world around them. By recognizing and valuing all aspects of diversity, we strengthen our ability to understand and appreciate all people.
Photo submitted by: Ann Malak | Toledo, Ohio, U.S. Rhett Staples and colleagues from our world headquarters at Owens Corning’s 17th full house build with the Maumee Valley Habitat for Humanity.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Inclusion & Diversity | 260 Inclusion and leader, in addition to group members. Connections These affinity groups help us embrace Diversity Council Goal: To enrich the our differences, drive awareness, and lives of our employees Our Inclusion and Diversity Council, build internal and external connections. which was launched in 2019, includes by partnering with senior leaders from all our businesses, Our affinity groups have always those in career corporate functions, and regions. been robust, and they continue to transition, while fostering personal and They share a passion for creating an drive inspiration and energy through professional growth and promoting environment that reaps the rewards their activities. community involvement to attract and retain top talent. of capable, diverse, and highly In addition to helping support our engaged teams. diverse colleagues, the affinity groups In May 2020, the Connections affinity The council’s goals include: benefit all colleagues and help Owens group presented the fifth annual Toledo Corning build a more inclusive and Tomorrow panel, in which four local ■ Enhancing the employee emotionally intelligent culture. By leaders from the Toledo, Ohio, U.S., experience. focusing on creating diverse and region shared their views on the city ■ Establishing sustainable diversity inclusive teams and building a sense of and how their organization interacts and creating a culture that provides community through our affinity groups, with the community. we are strengthening our commitments value for employees, customers, Interfaith Exchange shareholders, and communities. to our business, our customers, our shareholders, and each other. Goal: To provide a path ■ Ensuring that our strategy of for employees to share In 2020, Owens Corning sponsored the inclusion and diversity supports their beliefs among following affinity groups: the business strategy and each other in a way company values. African American that allows each distinct voice to be ■ Gathering resources to enable Resource Group included, appreciated, and valued. (AARG) strategy success. The latest addition to our circle ■ Measuring success. Goal: To advance of Affinity Groups led a series of excellence through Courageous Conversations centered With our global workforce, we know attracting, acclimating, retaining, around the role of faith in employees’ that cultural expectations and diversity and accelerating career growth, thus lives, both at work and at home. goals vary across different regions. enhancing Owens Corning’s business Discussions of Faith gave individuals We have established regional inclusion performance while leveraging the an opportunity to connect with others and diversity councils to lead local strength of a diverse workforce. and discuss how they have embraced programs and focus areas that their faith or fallen away, and how faith Throughout February 2020, the AARG support our overall commitment to this has helped them cope with challenges. important aspect of well-being. hosted a series of events celebrating Black History Month, including a Mosaic program titled Bringing Diversity Home, Affinity Groups Goal: To enlighten our in which local educators showcased employees on cultural We believe everyone at Owens how schools are fostering diverse, differences, foster Corning shares the responsibility inclusive environments and offered diverse solutions, and for contributing to an inclusive and suggestions on ways to bring diversity enhance our business relationships all diverse workplace. In addition to discussions home to loved ones. In around the world, strengthening our training and programming throughout May 2020, following the killings of company’s growth agenda. the year, we support our increasingly Ahmaud Arbery and George Floyd, the diverse workforce through our six AARG hosted a virtual session for AARG In September 2020, Mosaic hosted a affinity groups, in which employees members where people could share virtual conversation in conjunction with around the world organize events that their thoughts and feelings in an open Interfaith Exchange. The discussion explore inclusion and diversity issues. environment. Thereafter and throughout touched on a wide range of topics, Participants are encouraged to speak the summer, AARG and the I&D Council including belief structures, cultural their minds, ask questions, and listen hosted numerous sessions on race and intelligence, systemic thinking, to others. Each group consists of an allyship for the entire organization. unconscious bias, and more. executive sponsor, a leader, and a co-
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Inclusion & Diversity | 261 OUTreach 21 DAYS TO Goal: To achieve a work environment that STRONGER CONNECTIONS is inclusive and safe, where people feel They say it takes 21 days for people to form new habits or they can be fully engaged to create change their perspectives. Owens Corning helped celebrate and problem-solve to their maximum Pride Month in June by joining with companies and individuals potential and can be confident in a around the world in the #21DaysAllyChallenge, an event work environment where they will be presented by Pride Circle, an inclusion and diversity consulting fairly evaluated. organization based in India. Over the course of 21 mini- OUTreach offered two presentations challenges, participants gained a deeper understanding in conjunction with Toledo Pride 2020, of LGBTQ+ issues — and in the process, built a stronger which became a virtual event due to community of allies. COVID-19. The group hosted a virtual Participants were presented with 21 challenges to complete happy hour, as well as a Courageous between June 1 and June 30. Many of these involved Conversation where members recognizing and neutralizing biases and stereotypes about discussed what Pride means to them. LGBTQ+ individuals, and points were awarded for each Outreach also regularly meets with the challenge completed. For example, people could earn points Total Rewards team to share, advise, by watching a short film about LGBTQ+ issues, supporting an and make recommendations on policy LGBTQ+ entrepreneur, learning more about intersectionality, and process modifications, most or educating themselves about SOGIESC (Sexual Orientation, recently around company support for Gender Identity and Expression, and Sex Characteristics). The transitioning employees. final challenge on Day 21 was to pledge to be an active, visible, and passionate ally. Women’s Inclusion Network (WIN) For Christina Taylor, inclusion and diversity lead, the challenges proved to be quite impactful. “The coming out stories I read Goal: To attract, made me laugh and made me cry,” she said. “The maps retain, and develop showing LGBTQ+ rights across the globe were also extremely outstanding women eye opening.” through professional development, personal development, and 12,750 people representing 58 countries and 108 organizations community involvement. participated in the #21DaysAllyChallenge. This includes many Owens Corning employees, and we are proud to say that at the This year’s annual kickoff took end of Pride Month on June 30, the company was ranked #10 place in February, with the theme on the event’s leaderboard. WINtelligence: Build Your Strategic + Business + Financial Acumen, featuring guest speaker Amy McLaughlin, business director and general manager at 3M. In August, the WIN group in Granville, Ohio, U.S., offered a virtual presentation addressing the “Confidence Gap” and its potential impact on women in the workplace.
Photo submitted by: Lauren Hornberger | Toledo, Ohio, U.S. Breanna Straka, Erin Fussell, Lauren Hornberger, and Abby Donnell (left to right) participated in the Maumee Valley Habitat for Humanity Women’s Build.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Inclusion & Diversity | 262 In the face of protests and INCLUSION CLOSING THE RACIAL demonstrations around the WEALTH GAP: world, companies everywhere & DIVERSITY have taken steps to address INITIATIVES OUR PARTNERSHIP racial inequality. Owens Corning is no exception, and we have Empowering people to WITH LISC specifically looked for ways to bring their authentic selves bring about real change in Toledo, to work requires a great Ohio, U.S., home to our world headquarters. This has led us to enter into deal of communication — a partnership with Local Initiatives Support Corporation (LISC) Toledo, a community development financial institution. Through a $1 million, multi- and listening. Here’s how year commitment from the Owens Corning Foundation, we are working to we do it. close the racial wealth gap by creating homeownership opportunities for families of color in Toledo, who are statistically more likely to be long-term renters than white families. Courageous Conversations Our commitment also supports Core City Rehabilitation projects, in which What began in 2018 as a Day of LISC collaborates with neighborhood partners to identify, acquire and Understanding has transformed into renovate homes throughout the downtown Toledo area. The homes are a companywide series of Courageous then sold to owner-occupants, which helps increase property values and Conversations throughout the year, stability in these communities. In addition, our commitment will fund efforts providing opportunities for people to grow the capacity of small minority- and woman-owned contracting to come together and engage in an businesses, as well as invest in civic and community engagement projects. open dialogue, understand what makes us all different, discover ways “Owens Corning believes that racial equity can be achieved through to appreciate those differences, coordinated and effective public, private, and nonprofit partnerships,” said and recognize that diversity can Leah Maguire, vice president of inclusion and diversity at Owens Corning. be a powerful force in making the “This partnership advances that belief as well as our longstanding effort to company stronger. This initiative provide safe, efficient housing in all our communities.” reinforces Owens Corning’s Our decision to partner with LISC stems from their focus on building commitment to providing an inclusive communities across the U.S. In Toledo, LISC has taken a environment where all our people feel comprehensive approach to community development, investing nearly $200 welcomed, respected, and valued for million since 1989 to fuel economic opportunity and build stronger healthier the entirety of who they are and their neighborhoods. This partnership demonstrates our clear commitment to unique contributions to making the making inclusion and diversity priorities everywhere we have a presence, world a better place. and we will continue to look for opportunities where we can expand our While the first several Courageous potential through strategic and effective partnerships. Conversations took place in person at various sites, the pandemic forced us to hold them online beginning in the spring. Topics have included the impact of COVID-19 on people’s Impact in Our Community CEO, Brian Chambers, acted quickly lives and well-being, ways to be an to call together the CEOs from other In the spring of 2020, the killings of ally in the struggle for racial equality, companies, asking a simple but Ahmaud Arbery, Breonna Taylor, and discussions of faith inside and profound question: How can we work George Floyd galvanized a critical outside the workplace, and mental together to solve these challenges in conversation in the United States about health issues. While there was our community? racial and social injustice. At Owens initially some concern about the Corning, these events sharpened Through conversations in summer of effectiveness of a virtual approach, our existing focus on inclusion and 2020, this group created the Toledo these Courageous Conversations diversity, and they have reminded us Equity and Inclusion Council, with have proven to be consistently that change is needed in our company the mission of eradicating structural popular — often, more than 100 and our communities. racism by addressing policies and people will join the conversation and practices that perpetuate racial and discuss topics that are frequently As one of the largest companies ethnic (or social) inequities within seen as highly sensitive. headquartered in Northwest Ohio and systems and institutions impacting the only Fortune 500 company in the greater Toledo. The group’s work is city of Toledo, Owens Corning has an providing both the leadership and a important presence in the area. Our framework for meaningful change.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Inclusion & Diversity | 263 At the same time, Owens Corning has expanded our own activities within the area of racial equality and social justice, with four focus areas: housing, sustainable communities, workforce development, and education. We’re continuing our longstanding community engagement efforts, which are described in that chapter. In Toledo, we’ve formed new partnerships to help us make a difference in the community we call home. Photo submitted by: In addition to our work with Linda Latour | Quebec, Canada LISC (described on the previous page), and the Owens Corning a California-based tech company making and undermine unconscious Foundation’s $1 million gift to that focuses on connecting people bias. In addition, our affinity groups Bowling Green State University from marginalized communities routinely reach out to their contacts, to support underrepresented and systemic poverty to skills and including alumni organizations, students (described in the resources necessary to access professional organizations, fraternities Community Engagment chapter), opportunity in the tech industry. and sororities, and more. we have joined with ProMedica, a large healthcare provider in These efforts in our “hometown” of Inclusion & Diversity Training and Northwest Ohio, and Maumee Toledo are only part of our community Development Valley Habitat for Humanity in engagement work. See the Community Because last year’s Inclusive Leader a partnership to fund critical Engagement chapter for examples workshops were well-received and home repairs in distressed of how we are taking action in our extremely resonant with our senior neighborhoods. communities around the world. leadership team, we recognized the Beyond housing and education, Inclusion & Diversity Recruiting opportunity to extend the training the Owens Corning Foundation Champions beyond our top-level leaders. In 2020, has made two $1 million we initiated our Train the Trainer We recognize that diversity increases commitments related to sessions, which seek to train every the performance of our teams — and sustainable communities and people-leader in the organization that attracting a broader talent pool workforce development. globally, from senior executives to requires us to think creatively. Finding first-line plant supervisors. The first supports the completion new and creative ways to bring more of Toledo Area Metroparks’ diversity into our talent selection Owens Corning partnered with Korn Glass City Riverwalk. This new process is critical to building high- Ferry, an organizational consulting amenity, running along the performing teams. In 2020, Owens firm, to train the people who would banks of the Maumee River Corning launched the Inclusion go on to train other leaders in the in our downtown, will provide and Diversity Recruiting Champion Americas, Asia, and Europe. We had high-quality greenspace for Program, a partnership between Talent planned to kick off this initiative in the our entire community. The new Acquisition, the I&D function, and middle of March — right at the time Riverwalk will link to six different affinity groups. The Champions are that our U.S. business offices were neighborhoods across the city, a cohort of affinity group members closed due to the pandemic. It took connecting them in new ways and passionate about diversity recruiting. time for us to rework the training so providing greater equity, access, that it could work in a virtual format. Participants in this program assist in and experiences for all residents Later in the year, we had a platform the selection of internal and external in Toledo. in place, one that could train up to 40 candidates for both early career and people at a time, using whiteboards, experience roles throughout our The second investment of $1 polls, and breakout rooms that North American facilities. Recruiting million will support workforce replicate small-group table talk. Even champions are full-time employees development at “The Jeff,” a with the delays, we expect to have the who are active in one or more of our new innovation hub located in training completed by the end of 2021. our downtown. The Jeff will be affinity groups. They join the interview operated by Bitwise Industries, teams to drive inclusive decision-
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Inclusion & Diversity | 264 Virtual Inclusive Leadership Workshop This year, our inclusive leadership training took the form of a Virtual Inclusive Leadership Workshop (VILW). The VILW program goes beyond creating awareness of biases, equipping participants with actionable ways to both interrupt bias and create an environment where differences are appreciated, and people are included.
One way we work to foster this culture is by making a distinction between equality and equity — two concepts that might seem similar, but which actually have very different impacts.
Equality means each individual or group of people is given the same resources or opportunities. While the intent of equality is admirable, it only goes part of the way toward fostering a culture of inclusion and diversity. Equity goes further, recognizing that individuals have different needs and providing people with the resources that best meet those needs.
Photo: The difference between equality and equity, as discussed at this year’s Virtual Inclusive Leadership Workshop. Image ©2017 Robert Wood Johnson Foundation.
Our training is grounded in our broad understanding of inclusion and diversity.
Dimensions of Diversity. Although physical differences are easily recognized, they represent only a single dimension of the complex factors that shape Gender Transition for individuals. The other dimensions of diversity include Owens Corning Employees relational, occupational, and societal experience, as well Owens Corning does not discriminate on the basis of as values and cognitive style and ability. Understanding gender identity or expression. In order to provide people others through the lens of these interrelated and often with the respect, trust, and connection they deserve, we subtle dimensions strengthens our ability to relate to have created a set of guidelines designed to help our each other, which is the basis for inclusion. transgender and gender non-conforming employees during their transition. By establishing a set of best Inclusion Scale. Through the training we also provide practices for transitioning employees, their co-workers, opportunities to role-play and evaluate how our managers, and human resources professionals, we reactions to differences can affect our interactions. seek to help our people live authentic lives everywhere, Our understanding of inclusion is mapped to a scale including in the workplace. that expresses an individual’s comfort with differences: repulsion, avoidance, tolerance, acceptance, and Through these guidelines, individuals who are planning appreciation. To build the culture of appreciation to transition can develop personal strategies to create we aspire to, we must understand how our behavior a support group, develop timelines, and determine toward others impacts their ability to succeed and a communication plan wherein the employees can do their best work. By providing an opportunity for present themselves on their own terms. Our guidelines employees to use simulated examples, the training also encourage all employees to participate in a culture provides increased self-awareness that can help them that appreciates others’ differences and empowers change their actions in future experiences. people to treat one another with fairness and dignity. This includes helping employees address one another We expect that as our leaders and employees with preferred proper names and pronouns. Through participate in this training and deepen their these efforts, Owens Corning seeks to ensure that our understanding of these components, our people will social handprint truly extends to all our people. increasingly feel that they are appreciated for their differences, their contributions are valued, and they are able to bring their whole selves to work.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Inclusion & Diversity | 265 SPEAKING OF SUSTAINABILITY
Houston Young Owens Corning continues to increase our commitment to inclusion and diversity, and that shows in the people we have leading our initiatives. One of those people is Houston Young, who has been instrumental in our community outreach efforts, as well as supplier diversity and inclusive recruiting. Houston’s passion for this work helps Owens Corning expand our social handprint in very meaningful ways.
On the importance of setting goals for inclusion On the importance of inclusive and diversity recruitment practices When you think of goals in general, they set the true north We’re pleased to see great talent coming in. On the and tie into your mission and your purpose as a company. recruiting front we’re making sure we not only have a diverse We want to win with our employees, our customers, our slate, but that we also have a diverse interview slate on the communities, and our investors. Setting the marks that other side of the table, because not only are we shopping you’re trying to achieve is not just the right thing to do, but for talent, but that talent is also shopping us. When people it’s a business imperative. When you think about growth, can look across the table and they see people that look like when you think about innovation, having inclusion and them, it gives them an indication of the culture we have, and diversity goals in place helps you get there. And I always they can identify how they can connect with our mission and say if the voice isn’t present, the voice isn’t heard. And so, vision and us as people. we want to make sure we have those voices all across the On the benefits of Courageous Conversations spectrum and all across the top line, bottom line, and out in our community. Everyone leaned into those conversations and found out we had a commonality of vulnerability. Sharing who we are and On Owens Corning’s commitment the experiences that we have was liberating, and it caused to social justice us to show empathy. To be able to be in the perspective Being a person of color and seeing the George Floyd killing of what it’s like to be a person of color or white or female and the impact COVID-19 had on my community really or LGBTQ+. Having those conversations gives you a voice, unveiled a lot of the disparities that, quite frankly, I didn’t and it makes you feel that you are part of a team. It helps to even know the degree. I’m so proud of Owens Corning and bring engagement in the employee, and it helps us drive high our top leadership for really looking at a lot of the huge performing teams, which is what we’re after. disparities, whether in the wealth gaps in education, in health and well-being, in housing. And we’re working with our communities to determine where we can narrow those gaps, Houston Young and where we can remove those barriers. Community Outreach Leader, Inclusion & Diversity, Human Resources, Toledo, Ohio, U.S. Houston with his wife, Monique, in Vancouver, British Columbia, Canada.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Inclusion & Diversity | 266 INCLUSION & DIVERSITY 2030 TARGETS PERFORMANCE & PERFORMANCE
We’re working to recruit a broad 22% of our U.S. mid-level leaders, director, and vice president spectrum of people — and help roles are filled by racially diverse minorities.+ them be their authentic selves at work every day. 2030 GOAL RDM percentage of leaders 22% A diverse workforce provides us with the different experiences and unique perspectives needed to deliver better results for our customers. That’s 2018 (BASE YEAR) 13% why we work to increase gender equality in the workforce and expand diversity in our leadership. 2019 14% In addition, greater diversity helps colleagues from all walks of life envision their own career paths. 2020 14% Racially Diverse Minorities
As part of our 2030 goals, we have set a target Our target of 22% is an increase from our prior goals. that 22% of our U.S. leadership roles are filled by This voluntarily disclosed data is only available for our U.S. workforce. racially diverse minorities. In 2020, our minority representation for these roles was 14%, while Our goals about female and RDM representation in our succession overall approximately 47% of U.S. hires were people pipeline are covered in the Employee Experience chapter. from minority groups.+
In our Employee Experience chapter, we discuss our commitment to having the same diversity in our pool of succession candidates for leadership roles. sourced locally are internal transfers, assigned to international locations as expatriates for the opportunity to expand their skills and Local Hiring grow as global leaders. We believe these select opportunities lead to increased cultural and business intelligence. As an organization with operations across multiple geographies, we believe it is important to focus on local hiring. In doing so, we can optimize costs and Percentage of Senior Leadership Hired from Local Communities efficiency, as well as support economic growth in the areas where we operate. LOCAL NON-LOCAL TOTAL As of the end of 2020, 21 of 23 members of France 1 0 1 our operating committee (comprising general Italy 1 0 1 managers and key business leaders) live in or United States 19 0 19 are citizens of the local country where they are Belgium 0 1 1 assigned. The two senior leaders who were not China 0 1 1 TOTAL 21 2 23
2020 Workforce Composition by Region+
Asia Pacific 22% Europe 23% Latin America 11% North America 44%
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Inclusion & Diversity | 267 2030 TARGETS Women in Leadership Several years ago, we formalized our commitment & PERFORMANCE to putting women in leadership roles by establishing a target for female representation of 25% in all 35% of our global mid-level, director, and leadership levels. We reached this target in 2019 and vice president roles are filled by females.+ continue our efforts to maintain this percentage. 2030 GOAL Female percentage of leaders 35% We are also working to improve women’s representation across our business, especially in operations, manufacturing, and our commercial sales organizations, 2018 (BASEYEAR) 24% which have long been customarily male domains. We are 2019 25% undertaking pilot programs to help us understand what we can do differently so women can thrive in their work. 2020 25% One program, being implemented in our Composites business with an eye toward expanding into our other This target is an increase from our prior goals, reflecting our businesses, engages women in discussions through determination to continue improving female representation in scripted questions designed to gather insights into their our senior leadership and leadership succession strength. experiences at work. Our goals about female and RDM representation in our succession pipeline are covered in the Employee Experience chapter.
Percentage of Women in Roles Across the Company+ Percentage of Women in Middle and Upper Management+ All Levels Mid-level leader, Director, and VP 19% 22% Share of the workforce Women in top management 35 who are women. positions (maximum two 33.6% levels away from the CEO or 33.1% 33.3% comparable position; as % of 32.4% top management workforce).
26% 26% 30 Women in management Women in junior positions (as % of total management positions management workforce). (as % of total junior management workforce).
25.4% 24.8% 25 28% 23% 23.8% Women in Women in STEM related management positions positions (as % of total 22.8% in revenue-generating STEM positions). functions (as % of all managers).
20 30% 2017 2018 2019 2020 Women in board director roles (as % of total board of directors).
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Inclusion & Diversity | 268 Inclusive Leadership Training
By the end of 2021, all leaders of people, from first- 2030 TARGETS level leaders through mid-level leaders, directors, and vice presidents, will have attended our internal & PERFORMANCE Inclusive Leadership Training. Our 2030 target is 100% of people leaders are trained on Inclusive Leadership.+ to maintain training at that level for all new hires or promotions into those roles. 2030 GOAL Percentage of People Leaders 100%
2018 2019 2020 BASEYEAR 24% 56%
Given all the changes we’ve seen GOING in 2020, we have reason to believe that the next ten years will be a FORWARD time of even greater reckoning regarding issues of inclusion and diversity. Owens Corning welcomes these conversations as we seek to gain the insights necessary to provide the best possible workplace for all our employees around the world.
As our work this year shows, we can amplify our impact by forging partnerships based on a shared commitment to inclusion and diversity. Our efforts to accelerate positive change in the community are an expansion of our ongoing work inside the company.
Looking ahead, we will redouble our commitments to inclusion and diversity: attracting and retaining a wide spectrum of employees, and maintaining an environment where people feel they truly belong. We seek to maintain a culture where these ideas are ingrained in everything we do, so that we can see continued improvement in the years to come.
Photo submitted by: Ann Malak | Toledo, Ohio, U.S. Hassan Touray at Owens Corning’s 17th full house build with the Maumee Valley Habitat for Humanity.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Inclusion & Diversity | 269 HUMAN RIGHTS & ETHICS
In this chapter: 2030 GOALS STRATEGY & APPROACH HUMAN RIGHTS & ETHICS POLICIES OWENS CORNING’S ETHICS POLICIES INITIATIVES PERFORMANCE GOING FORWARD
For Owens Corning, safeguarding human rights and behaving ethically are essential components of our sustainability journey. We know that the privilege of working with people all over the world comes with the responsibility to treat everyone with respect and ensure that their fundamental rights are upheld.
As a global leader in our industry, Owens Corning must set an example around the world regarding human rights and ethics. In addition to the policies we have in place to provide accountability in our own operations, our 2030 goals are designed to encourage our entire supply chain to join us in these aspirations.
Photos submitted by: Brianne Bass | Rockford, Illinois, U.S. Outside the Rockford plant in autumn..
Our human rights & ethics efforts align with the following UN SDGs: Sustainability Materiality Definition: Owens Corning has the privilege of working with people all over the world. We believe that this privilege comes with the responsibility to treat all people with dignity and respect and to protect their fundamental rights. We are committed to being a leader in setting and upholding the highest standards for safeguarding human rights.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Human Rights & Ethics | 270 2030 GOALS FOR HUMAN RIGHTS & ETHICS
By 2030: 100% of our suppliers meet our Supplier Code of Conduct requirements, with special attention to human rights issues such as safety and forced labor.+
Protecting human rights is part of an overall dedication to ethical behavior at both the individual and the corporate levels. Ethical business practices are central to our approach, and we expect every employee to adhere to our principles. The high value Owens Corning places on integrity is reflected in every aspect of our business, from the quality of the products we make, to our sustainable manufacturing processes, to the overall sense of ethics that define our interactions with business partners and other stakeholders. Our 2030 goal formalizes our long-standing expectation and priority.
Our approach to human rights and As part of our comprehensive STRATEGY ethics is rooted in the following corporate ethics and compliance AND APPROACH documents : program, we have specific policies that ■ The Ten Principles of the United apply to our chief executive, senior We believe in the dignity Nations Global Compact (UNGC). financial officers, and members of and value of every the board of directors. Other business individual, and our ■ The Universal Declaration of conduct policies apply to all employees human rights and ethics Human Rights. on specific compliance topics. In addition to the Code of Conduct, ■ The UN Guiding Principles. policies help ensure the policies that guide us in all our accountability throughout ■ The International Labor interactions can be found in these our organization. Organization’s (ILO) Declaration on documents: Fundamental Principles and Rights ■ Ethics Policy for Chief Executive at Work. and Senior Financial Officers. Together, they represent the ■ Supplier Code of Conduct. foundation upon which we have constructed the Owens Corning Code ■ Directors’ Code of Conduct. of Conduct, which establishes the ■ ethical foundation for all company Equal Opportunity. policies, procedures and guidelines. ■ Non-Harassment. The Code of Conduct includes 10 guiding principles for ethical business ■ Human Rights Policy. conduct, and this code applies to ■ Data Privacy Policy. every person at Owens Corning. By holding all our people to these high standards, we demonstrate the value Photo submitted by: Sarah Hill | Newark, Ohio, U.S. of ethical business conduct, as well as Newark plant employees masked and our respect for our stakeholders and ready to work. our company.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Human Rights & Ethics | 271 Our approach to human rights and ethics is intentionally broad and 10 GUIDING PRINCIPLES inclusive. We respect the rights of people within and outside our FOR ETHICAL BUSINESS CONDUCT organization, and we work diligently to protect them. This includes all full-time employees, part-time employees, contractors, and temporary staff of Owens Corning, the entities we own, the entities in 1. Value human 2. Act with 3. Treat others 4. Compete 5. Honor trade which we hold a majority interest health integrity. respectfully. vigorously restrictions. (including joint ventures), the and our but lawfully. facilities we manage, our franchises, environment. and branded operations.
Moreover, we work with our suppliers, customers, and other business partners to uphold our human rights principles. We expect them to adopt similar policies within their businesses and extend the same protections to their various 6. Create a 7. Keep 8. Respect and 9. Ensure that 10. Properly use stakeholders. We use our Business no-conflicts accurate preserve commitments company Code of Conduct and Supplier Code culture. records. confidential are properly electronic of Conduct to review and evaluate information. made. systems. our locations and acquisitions and guide our interactions with suppliers and other external groups.
As a global company, it is important to unduly burdensome conditions HUMAN RIGHTS that Owens Corning’s human rights such as, but not limited to, the policies cover a broad spectrum of surrender of government-issued & ETHICS POLICIES concerns. These policies are overseen identification, passports, or work Our commitment to by our director of compliance, who permits, or any other limitations human rights is reflected is responsible for ensuring they are inhibiting the employee’s free will in the policies we have followed by all our employees. with respect to work. established. They serve as We use the following definitions in ■ Convict Labor. Any labor performed a guide throughout all our our policies: by a legally convicted person on or operations. outside prison grounds. ■ Child Labor. Work or service extracted from anyone under Our definitions of slave labor and the age of 16, the minimum age bonded labor are reflective of the for employment, or the age for United Nations Human Rights Office’s completing education in that Supplementary Convention on the country, whichever is highest. Abolition of Slavery, the Slave Trade, and Institutions Similar to Slavery ■ Forced Labor. Any work or service under Articles 1 and 7. not voluntarily performed and extracted from an individual under the menace of penalty or subject
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Human Rights & Ethics | 272 Owens Corning’s Organization (ILO) Minimum Age countries where we do business. Convention No. 138 on vocational Human Rights Policy We collect, process, and transfer or technical education and light personal data responsibly and in Our Human Rights Policy is part of an work. Issues regarding forced accordance with the principles and overarching framework that guides or child labor raised through the obligations set forth in our data our actions as we strive to be a solid business code of conduct helpline privacy policy, unless doing so corporate citizen. We are committed to are reviewed by internal audit and conflicts with stricter requirements of enforcing compliance in the following legal compliance. an applicable local law. areas: ■ Indigenous Peoples’/Traditional/ ■ Safety, Health, Environmental, ■ Non-Discrimination and Equal Land Rights. We subscribe to the and Product Stewardship. We are Opportunity. We provide principles of ILO Convention No. 169 committed to providing safe, secure employment and advancement on Indigenous and Tribal Peoples working conditions and workplaces opportunities to all individuals wherever our operations may impact that promote health and well-being. based on merit, qualifications, and the human rights of indigenous Through environmentally sound abilities. We do not discriminate peoples. This question is part of business practices, we work toward in employment and advancement our due diligence when considering continuous improvement in our EHS opportunities, and we do not tolerate new acquisitions. There have been performance. To ensure that our acts of discrimination. no issues involving the rights of products perform as claimed and indigenous people. are safe and environmentally sound ■ Forced Labor/Child Labor. We to make, use, and dispose of, we do not employ child labor in ■ Freedom of Association/Collective conduct a through review of any new our operations. We also will not Bargaining. We do not restrict or significantly modified product or knowingly engage with a supplier worker’s rights to exercise freedom of manufacturing process. or distributor or enter into a joint association or collective bargaining venture with an organization that in any of our operations. Independent ■ Workplace Security. We are does, directly or indirectly. Similarly, trade unions represent 63% of our dedicated to maintaining a workplace we do not use forced, slave, convict, employees, who are also covered by free from violence, harassment, or bonded labor in our operations, collective bargaining agreements. intimidation, and other unsafe or and we will not work with a supplier disruptive conditions. Harassment To support employees’ rights to or distributor or undertake a joint is defined as any conduct that exercise freedom of association venture with an organization that threatens, intimidates, or coerces and collective bargaining, we had in employs forced labor or people another person. Regardless of excess of 25 formal consultations trafficked into employment. Where whether it is committed by a (and many informal consultations) applicable, migrant workers will co-worker, a manager, or even a or negotiations with trade unions have the same entitlements as local non-employee, harassment will as of the end of 2020. These employees. never be tolerated at Owens Corning. talks have covered organizational Employees at all our worldwide We follow the U.S. Securities and changes, including restructuring and locations and at all levels have the Exchange Commission guidelines outsourcing. We also extend these responsibility to avoid any act or in disclosing any use of conflict principles to our suppliers, as outlined actions that suggest harassment in minerals and in conducting in our Supplier Code of Conduct. the workplace or in a work setting. reasonable country-of-origin ■ This includes interactions with inquiries as required by those Employment Standards, contractors, vendors, consultants, guidelines. We also do not tolerate Compensation, and Working customers, and other non-employees, the use of raw materials that directly Conditions. We provide employees such as visitors, who are involved or indirectly contribute to armed with compensation, benefits, with Owens Corning. conflict or human rights abuses and working-hour schedules in compliance with all applicable laws in any of our products. We follow ■ Communities. We seek to engage in and collective agreements. We the OECD Due Diligence Guidance proactive, meaningful dialogue with support mechanisms for employee for Responsible Supply Chains of stakeholders on human rights issues grievances and resolution of disputes Minerals from Conflict-Affected and related to our business. We also that protect employees’ privacy, allow High-Risk Areas. encourage employee involvement for anonymous reporting, and protect with community organizations and Owens Corning supports the employees against retaliation. foundations. participation in legitimate workplace ■ apprenticeship programs, as long Privacy. For the safety of our as they comply with all applicable employees and stakeholders, we laws and are consistent with Articles comply fully with all applicable data 6 and 7 of the International Labour privacy laws as regulated by the
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Human Rights & Ethics | 273 Human Rights Accountability Model Human We have a model in place that ensures Resources accountability and thorough execution of Community Legal our human rights policy. Each element of Relations the policy is assigned to and managed by specific corporate functions within Owens Corning.
This cross-functional approach allows for Operations Security a more strategic, integrated focus that Leadership implements the “beyond compliance” HUMAN RIGHTS spirit of our human rights policy. In addition, our ownership model allows ACCOUNTABILITY for training, continuous improvement processes, and annual reporting. Environment, Health, and Real Estate Safety Implementing Our Human Rights Framework
We support our human rights Sustainability Information commitments through our Technology comprehensive compliance framework, which includes our human rights policy and a range of supporting policies and documents. These include the Corning, our Supplier Code of Conduct employees and are available in 16 following: holds them accountable to applicable languages via our internal network. laws and principles of ethical business. We also expect all our facilities to ■ Owens Corning Code of Conduct The code is explicitly consistent with display materials that highlight our ■ Supplier Code of Conduct our human rights policy and includes, human rights policies. In the case of for example, expectations related to acquisitions, the integration team will ■ Statement on Slavery and Human human trafficking and the sourcing distribute physical copies of the Code Trafficking of conflict minerals. Our sourcing and of Conduct and Business Conduct ■ Equal Opportunity Policy supply chain leaders are responsible Policies to the new plant staff, as they for managing human rights issues do not have immediate access to ■ Non-Harassment Policy among our suppliers. They use Owens Corning online systems. our Supplier Code of Conduct as a ■ Environmental, Health, Safety, and To ensure compliance, internal training reference to select suppliers, measure Product Stewardship Policy is essential. All staff employees are their performance, train them, and enrolled in the Code of Conduct training ■ Data Privacy Policy assess risks. course at hire and annually thereafter, Training Employees on Human Rights are required to certify their compliance, and are given an opportunity to Upholding High Standards for Training is one of the core tenets of disclose nonconformance. Special Suppliers Owens Corning’s compliance program. attention is given to personnel in key One hundred percent of our staff Owens Corning wants to partner with groups such as sales, environmental, employees are trained on and provide businesses that share our commitment safety, and security teams. In addition, written acknowledgement of the Code to human rights. We expect our managers are expected to lead of Conduct and anti-corruption and suppliers, customers, and other by example and ensure that these anti-bribery policy. businesses around the world to uphold policies are incorporated into the way the principles in our human rights policy. Our Code of Conduct and Business employees interact each day with We also expect them to adopt similar Conduct Policies are extensions of customers, colleagues, suppliers, and policies in their business practices our corporate values, which is why the public. This year, our 5,565 staff and within their own relationships with we expect 100% compliance, without employees, which make up about subcontractors and others. exception. To support compliance, 29% of our employees worldwide, collectively received 3,150 hours of For all entities that directly provide the Code of Conduct and Business human rights training. goods and/or services to Owens Conduct Policies are provided to all
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Human Rights & Ethics | 274 Equal Opportunity and Non-Discrimination
Owens Corning strives to foster an inclusive and diverse culture in which all employees feel valued and appreciated. We believe this culture of appreciation helps people engage at their best, knowing they have an equal opportunity to grow and succeed based on their performance, regardless of individual differences. We invest equally in our employees and ensure our corporate culture allows or in a work setting. Throughout all employees to share their unique 2019 and into 2020, 95% of U.S. perspectives and experiences, learn primary employees were trained on from one another, and contribute to non-harassment. Travel restrictions Owens Corning’s global workplace. due to the COVID-19 pandemic To provide equal employment and prevented us from delivering training advancement opportunities to all to 100% of U.S. primary employees, individuals, employment decisions are but we will continue our work in Photos submitted by: based solely on merit, qualifications, this area as restrictions are lifted. Amanda Meehan | Toledo, Ohio, U.S. and abilities. Accordingly, it is Owens This includes contractors, vendors, Hellebore in bloom in bloom (left), fall leaves (right). Corning’s policy to provide employment consultants, customers, and other opportunities without regard to race, non-employees, such as visitors, who color, religion, national origin, age, have reason to be engaged in business disability, veteran or military status, with Owens Corning. Our company and a vote among the members to pregnancy status, gender, gender actively investigates any allegation of accept a two-year contract. In 2020, we identity, sexual orientation, genetic harassment, evaluates the conduct and had four labor concerns across Owens information, or any other characteristic the context of the alleged behavior, and Corning’s U.S. operations that required protected by applicable law. takes appropriate action. the use of an arbitrator to reach a final disposition (i.e., grievance withdrawn, In 2020, the business conduct council In 2020, the business conduct granted, or settled). council reviewed and investigated reviewed and investigated 22 reports of three reported equal opportunity harassment. Actions for correction and In the unfortunate circumstance concerns. Actions for correction and improvements were taken as applicable. that one of the above mechanisms improvements were taken as applicable. of resolution is unsuccessful, an Industrial Relations employee may choose to proceed Non-Harassment Policies Owens Corning makes use of a variety with legal action or file a complaint It is Owens Corning’s intent that all of formal and informal processes to with a local agency. These are employees will work in an environment address and resolve labor practices at handled through Owens Corning’s free from harassment on any basis each facility. All labor practice concerns legal department following the same including, but not limited to, race, color, raised by employees are resolved, guidelines of investigation, remediation, sex, age, national origin, veteran or typically through a peer review or and non-retaliation policies. military status, pregnancy status, sexual grievance process at the local level. orientation, gender identity, cultural Occasionally, local grievances require affiliation, religion, genetic information, additional input at the divisional or physical or mental disability, personal corporate level, and if still not resolved, characteristics or circumstances, or are definitively decided by a neutral any other characteristic protected by arbitrator. Although the company does applicable law. not compile the number of grievances or complaints filed by employees/ Employees at all locations worldwide unions at each plant each year, it is and at all levels of our company have not unusual for each facility to resolve the responsibility to avoid any act or dozens of such labor concerns each actions, implied or explicit, that may year. In 2020, a brief strike at our suggest any form of harassment of Guelph, Ontario, plant was resolved any other person within the workplace after negotiation with union leadership
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Human Rights & Ethics | 275 participate in any transaction or Full and Accurate Public Disclosures OWENS CORNING’S business arrangement, or otherwise It is Owens Corning’s policy to act in a manner that creates make full, fair, accurate, timely, and ETHICS POLICIES or appears to create a conflict understandable disclosures in all Building and maintaining trust of interest with the company, reports and documents the company through ethical behavior is the unless the senior officer makes files with, submits to, or furnishes full disclosure of the facts and cornerstone of good corporate to the U.S. Securities and Exchange circumstances to, and obtains citizenship. Commission (SEC) and in all our other the prior written approval of, public communications. Our public the governance and nominating The ethics policies outlined here disclosures are in compliance with all committee of Owens Corning’s demonstrate how we have established applicable laws, rules, and regulations. a solid foundation upon which we are board of directors. Conflicts of building our culture of integrity with our interest requirements also apply to Open Reporting Process and Internal stakeholders around the world. members of our board of directors. Investigations
Senior Officer Policies Remuneration Policies Owens Corning works to ensure that Owens Corning continually monitors all employees know and understand all Not only must senior officers the evolution of compensation best applicable laws and company policies, comply with applicable laws and practices. We review the relationship including our code of conduct. When other requirements, but they must between company performance and the need arises for employees to report proactively engage in and promote compensation and use it to set goals suspected misconduct, including honest and ethical conduct. This and targets. These individual goals and harassment, discrimination, and includes, for example, the ethical targets are designed to ensure that other ethical issues, we offer an open handling of actual or apparent conflicts Owens Corning meets its financial and process through which employees can of interest between personal and sustainability goals while operating as voice their critical concerns. professional relationships. These are an ethical company. specific corporate policies that apply to All employees are encouraged to our senior officers: Decisions related to corporate report suspicions of violations of law or policy, and they are expected ■ Ethics Policy for Senior Financial governance compensation are to cooperate in the investigation of Officers. Our ethics policy for senior based on the core philosophy that wrongdoing per our Code of Conduct. officers sets forth policies to guide compensation must align with and They can do so without fear of the performance of their duties as enhance long-term, sustainable retaliation, which is strictly prohibited CEO, CFO, and corporate controller. growth for our stockholders. Eighty- by Owens Corning as a way to protect These officers are held to legal five percent of our CEO’s and 74% of whistleblowers or individuals who raise and ethical standards even beyond our other NEOs’ target compensation concerns. No hardship, loss of benefits, those of our other employees. is variable, contingent, and directly linked to individual and company nor penalty may be imposed on an ■ Reporting on Violations. Senior performance. Generally, company employee as punishment for filing a officers are required to report performance is measured based good-faith complaint of suspected any suspected legal and ethical on financial goals, and individual misconduct, responding to a complaint violations to legal operations or performance is measured based on of suspected misconduct, appearing corporate audit services or to any objectives related to environment as a witness in the investigation of a member of our business conduct and safety, financial objectives, talent complaint, serving as an investigator, or council (BCC), a global team management, reputational risks, otherwise cooperating in a workplace accountable for the management compliance and risk management, investigation. Retaliation or attempted and oversight of the company’s and other factors appropriate for the retaliation is a violation of company internal investigations protocol individual role. policy, and anyone who engages in and escalation of concerns, where retaliation may be subject to discipline, appropriate. A detailed discussion on executive up to and including termination. This compensation, including ways we expectation is reinforced with senior We also maintain a confidential apply internal and external financial business and HR leadership during a reporting system for receiving success metrics, can be found in our quarterly compliance review. advice and concerns from our 2021 Proxy Statement. This statement employees, described in more detail also includes details on potential Employees are encouraged to report later in this section. termination payments and recoupment their concerns to any manager, of compensation (clawback) paid to member of human resources or legal ■ Conflicts of Interest. No senior named executive officers. Our CEO operations, or any member of our BCC officer shall make any investment, pay ratio is reported on page 50 of our (business conduct council). Employees accept any position or benefits, 2021 Proxy Statement. may also submit their
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Human Rights & Ethics | 276 concerns (anonymously, if desired) company. The majority of reported to our BCC through a confidential concerns reviewed were employee- helpline (1-800-461-9330) or web related matters, with a smaller number portal, which are operated by a third- of business integrity reports. Fewer than party service provider. Employees can 15% of the reports resulted in a finding also report their concerns to the BCC of substantiated policy violations. using a designated email address or a Even if reports were not substantiated, We take all reports dedicated postal mail box. many of them presented opportunities seriously — they Owens Corning takes all reports of for improvements in management offer opportunities misconduct seriously. Any concern systems. Identified trends led to for improvements brought to the company’s attention is enterprise-level changes, including in our management thoroughly reviewed and investigated policy updates, targeted training, and systems, including by the BCC. We make every effort improved communication. Because policy updates, targeted to ensure that investigations are no concerns reported in 2020 were training and improved consistent, comprehensive, and critical, no concerns went through our communication. confidential to the greatest extent escalation process, nor was the board possible. If a report is substantiated, of directors called upon to respond. the company will respond as it deems appropriate or necessary consistent with laws, internal procedures, and best practices, and we will act swiftly JOINING THE FIGHT years ago at an event sponsored by to correct the problem and deter one of the company’s carriers. The future occurrences. Depending on AGAINST HUMAN TAT mobile exhibit featured videos the circumstances, this may include and other educational resources training and/or disciplinary action up to TRAFFICKING calling attention to the human trafficking problem. and including termination. Individuals Human trafficking is a devastating suspected of being in violation of social problem. Thousands of “Our clients are dealing with truck the law may also be subject to civil people, often children and young drivers every day,” Amy said. “A lot or criminal prosecution. Significant adults, are traded into forced labor of human trafficking is done by breaches of our Business Conduct or sexual exploitation every year. commercial vehicle. Truckers can be Policies on the part of certain senior The issue is particularly a problem trained on what to do when they see executives are escalated to the audit in Toledo, home to our world something wrong. We have over 300 committee of the board of directors. headquarters. Because Toledo is carriers contracted, and we can push The audit committee would lead an at the intersection of two major information out to them and help get investigation into any such reports, and interstate highways, the area has the message out.” they are disclosed as applicable by law. become a hub for human trafficking. Amy brought the idea of sponsoring Internal investigations are reviewed To help address this human rights Truckers Against Trafficking to Millie for trends and opportunities at least violation, Owens Corning recently Milliken, environmental lead, who quarterly and further discussed with offered financial support to Truckers saw it as an opportunity to further senior business leaders. The audit Against Trafficking and is promoting the Owens Corning human rights committee receives a periodic report its efforts with suppliers. TAT initiatives. “It aligns well with our along with an update of the compliance engages the U.S. trucking industry sustainability efforts,” Millie said. program in general, including any to help rescue victims. It does so “We talk a lot about our supply chain breach of applicable law. Compliance through training and information and our expectations for them with operations will report significant materials for people throughout regard to forced labor and human highlights from the open reporting the transportation industry. The rights. This ties into the rest of our process to all employees annually, organization also places posters sustainability story.” which may include the number of at highway rest areas and other In addition to our financial support, reported concerns received, the spots, and it provides truckers with we are also sending email notices to number of substantiated concerns, the information cards so they can report our carriers, offering ways they can percentage of anonymous reports, and suspected trafficking. the number of employees who were help. Through these efforts, we are terminated for such concerns. Transportation sourcing leader helping to call attention to the problem Amy Mielke first became aware of of human trafficking — and protecting In 2020, there were no substantiated Truckers Against Trafficking a couple young people across the country. reports that had an actual or potential material financial impact on the
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Human Rights & Ethics | 277 Anti-Corruption In 2020, our anti-corruption efforts Anti-Competitive Behavior resulted in the following outcomes: Owens Corning uses many safeguards In general, Owens Corning discourages ■ to avoid corruption related to our 100% of the members of our board employee contact with competitors. business — including corruption on of directors received communication Employees who do have contact with a the part of any of our employees, on our anti-corruption policies, competitor must report that contact to members of our board of directors, procedures and compliance efforts. the legal department, even if business and business partners including third ■ 100% of our employees received is not discussed. parties and independent agents. communication on our anti- ■ Before a scheduled meeting or This policy is overseen by our audit corruption policies and procedures, call with a competitor, the legal committee. Our anti-corruption and 100% of staff employees, which department must review the policies align with applicable anti- is approximately 29% (5,565) of all purpose of the meeting, the written corruption laws, including but not employees, completed training. agenda, a list of participants, and limited to the U.S. Foreign Corrupt any documents or information that ■ 100% of our suppliers received Practices Act of 1977 (FCPA), the UK will be shared. Bribery Act, and the OECD Convention our Supplier Code of Conduct, on Combating Bribery. which includes anti-corruption ■ After any contact with a competitor, expectations. scheduled or unscheduled, Specific controls exist within the employees must file a report with ■ 100% of Owens Corning’s business Owens Corning treasury policies the legal department. and procedures to review vendors was assessed for corruption Owens Corning has established and assess appropriateness before risks, per an annual assessment controls related to contact with payments are processed. These cycle. Significant risks identified potential competitors. These controls controls are reviewed regularly by and assessed include customers, may be reviewed as part of a periodic internal audit based on audit scoping. independent third parties (including audit process. The company has In addition, sensitive transactions, facilitation payments), direct created a mobile-friendly web app to including gifts, travel, and entertainment, and indirect interactions with make reporting these interactions easy. are reviewed using business analytics government officials (including gifts tools, as well as by our third-party and entertainment), anti-money After extensive review, we have found business partner, to ensure compliance laundering, politically exposed no record of any fair competition with Owens Corning policies. persons, and bribery. breaches in our company’s history. Additionally, internal audit performs an ■ Owens Corning received no We have also had no legal actions annual review of travel and expenses fines, penalties, or settlements for anti-competitive behavior or (T&E) to assess policy compliance, in relation to corruption in 2020. monopoly practices. sensitive transactions, and potential Furthermore, no employees were misuse or abuse. disciplined or dismissed due to noncompliance with anti-corruption policies in 2020. There were no Photo submitted by: confirmed incidents of corruption, Rupak Karmakar | Silvassa, India termination of contracts with Quality huddle at our Silvassa plant. business partners, or public legal cases against Owens Corning or its employees related to corruption.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Human Rights & Ethics | 278 HUMAN RIGHTS & ETHICS INITIATIVES
We treat others with fairness and respect, and we are working to strengthen our policies, verify compliance, and address gaps wherever they exist.
Throughout 2020, we have continued our work in human rights and ethics. Actions we have taken to review and assess human rights risks and impact in our operations include the following:
EHS Assessments. We have Forced or Compulsory Labor. We have Human Rights Assessments. We continued to implement our revised identified country locations where conduct annual human rights environmental, health, and safety risk of forced or compulsory labor assessments via a survey for our key (EHS) audit processes, which include is prevalent according to U.S. State suppliers, which comprise 73% of on-the-ground visual observations for Department and EIRIS data. Leveraging our spending this year. In 2020, 302 elements of our human rights policy. our supplier segmentation tool, we suppliers were assessed for impacts mapped both our top segmented on society and labor practices. None In our last EHS audits, conducted suppliers and our own locations to of these suppliers were found to have in 2019, we proactively assessed identify the number of locations in potential of actual significant negative 17 sites for human rights risks, and higher-risk countries. This information impacts on society, human rights, labor we conducted visual observations provides a basis for continued practices, or the environment. at an additional 11 sites. Our audits monitoring for compliance, both in included sites representing all three In considering human rights issues, evaluating supplier risk and within our Owens Corning business units, as we have identified women, LGBTQ+, own operations. well as production facilities in North and minority populations as vulnerable America, Europe, and Asia Pacific. No cases of forced, compulsory, or groups. We have created affinity All 17 sites assessed had some child labor were identified or reported groups within Owens Corning to type of mitigation plan in safety and in 2020, nor were human rights risks address the specific risks and needs of health. In 2020, only three audits discovered that required remediation. these populations. were performed, travel restrictions Due to the nature of the mineral mining Our human rights policy has become related to the COVID-19 pandemic industry, we have canvassed our part of our due diligence for potential dramatically hindered our efforts. suppliers in that industry to inquire acquisitions, which are a key element about forced labor issues. No risk We are planning to resume EHS of our growth strategy. This process issues have come to light. This remains assessments in 2021. The process will involves reviewing labor and human a question on annual surveys. be modified from our past approach, rights policies and practices and based on role changes and travel assessing risks, including evaluating restrictions. any potential impacts on vulnerable populations such as tribal lands and Findings are categorized by risk, indigenous people. and high-risk findings are tracked to completion in a corporate findings repository. All risk findings are required to be closed. There were no issues identified through the human rights Photo submitted by: audits in 2019 and 2020. Jan-Christian Stenroos | Parainen, Finland Tom Tuomivirta & Christina Järvinen talking, Owens Corning Paroc Parainen, Finland plant.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Human Rights & Ethics | 279 The United Nations General UNITED IN Assembly celebrates its 75th THE BUSINESS anniversary this year, in a time of almost unprecedented This year, our 5,565 staff OF A BETTER uncertainty. As we are all employees — about 29% of facing a global pandemic, the our employees worldwide WORLD impacts of climate change, and — collectively received worldwide efforts to come to 3,150 hours of human terms with inequality and human rights, the UN has reached rights training. out to businesses and public institutions around the world to make a unified statement in support for peace, justice, and strong institutions. Owens Corning is proud to answer the call.
This summer, Owens Corning CEO Brian Chambers signed Facility Security on to the UN’s Statement from Business Leaders for a Renewed Global Cooperation. As long-time members of Our approach to facility security has evolved over time, the UN Global Compact, we have made a commitment to shifting from a focus on property to a focus on people. implement universal sustainability principles and take steps We now ask how we can make our facilities safe for to support UN goals. Through this initiative, the UN seeks to people, so they can do their best work. learn from the collective experiences of its signatories and contribute to a more equitable and sustainable world. The In 2019, we operationalized this focus by implementing statement includes the declarations seen below. revised security standards for all our facilities. The robust standards now provide a common statement In the spirit of renewed global cooperation, we commit to: of work for all security providers, as well as required ■ Demonstrate ethical leadership and good governance training programs on appropriate behavior and use of through values-based strategies, policies, operations and force. We also developed new guidelines for helping relationships when engaging with all stakeholders. people leaders recognize and respond to potential workplace violence situations and behaviors of ■ Invest in addressing systemic inequalities and injustices concern. Updated workplace violence training was through inclusive, participatory and representative developed and translated into ten languages and was decision-making at all levels of our business. developed, translated into ten languages, and rolled out to global sites in 2020. Over 95% of all global people ■ Partner with the UN, government, and civil society to leaders and salaried staff have completed the general strengthen access to justice, ensure accountability and training course. transparency, provide legal certainty, promote equality and respect human rights. For sites where we employ third-party security services, we have established a set of standards related to our In making that commitment, we also call on governments to: human rights priorities. Human rights training is required, ■ Protect human rights, ensure peace and security, and including training in the appropriate use of force. We uphold the rule of law so that businesses, individuals, and expect guard services to observe and report — never to societies can flourish. place themselves in harm’s way or jeopardize the safety of others. ■ Create an enabling environment to serve the interests of people and planet, prosperity and purpose, through 38% of security personnel, including those employed by strengthened international cooperation and national third-party organizations, have received formal human legal frameworks. rights training. New security standards were developed for North American contract security providers in 2020, ■ Enhance multilateralism and global governance to requiring security personnel to be trained on human combat corruption, build resilience and achieve the SDGs. rights compliance. Owens Corning recognizes the real impact that businesses can have in creating a freer and more just world. By signing Corporate Political Advocacy this statement, we are demonstrating our belief that a Owens Corning incurs lobbying expenses directly coordinated effort on the part of institutions everywhere is through an internal registered lobbyist and three essential to advancing the goals of the UN’s Global Compact. lobbying consultants, as well as indirectly through trade associations who lobby on their members companies’ behalf.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Human Rights & Ethics | 280 In 2020, direct and indirect lobbying and WilmerHale. The company spent Owens Corning Better expenses for the company totaled $1,694,501 with these three groups, Government Fund $599,150. Lobbying-related expenses which includes membership fees and Owens Corning employees have the are a subset of the company’s overall contributions to trade associations. option to make political contributions advocacy-related expenditures, which Owens Corning’s political advocacy through our Owens Corning Better also includes membership fees for objectives are to support initiatives Government Fund. The fund is a industry associations. In 2020, the which align with the company’s voluntary, nonprofit, unincorporated company’s overall advocacy-related core values, namely advocating for committee operating as a separate, expense was $2,958,065. energy efficiency measures, and segregated fund of Owens Corning. In 2020, the five largest lobbying-related for contemporary building code The purpose of the fund is to provide expenses totaled to $503,408, with the development and adoption. In the past our employees and shareholders following organizations: year, we expanded our efforts to include with an opportunity to take part in the ■ WilmerHale. issues related to our social handprint, American political process. The fund working in conjunction with the National provides a convenient way for these ■ Squire Patton Boggs. Association of Manufacturers and the stakeholders to join a program of Business Roundtable to advocate for political giving so that they may have a ■ Mehlman Castagnetti. affordable housing and other social united and constructive voice for better ■ North American Insulation justice concerns. In 2020, Energy government. The fund prohibits direct Manufacturers Association Efficiency accounted for around or indirect contributions from Owens (NAIMA). $225,000 worth of related expense, Corning or any other corporation or and Building Codes accounted for political action committee. ■ Extruded Polystyrene Foam around $125,000, with some overlap of In 2020, the Owens Corning Better Association (XPSA). spending between these areas. Government Fund distributed a total In 2020 our three largest trade Owens Corning does not permit the of $68,500 in contributions. A full list association or lobbyist expenditures use of corporate funds to support any of recipients can be found in Appendix were for NAIMA, the Asphalt Roofing political candidate, political organization, D. Additional information on the Better Manufacturers Association (ARMA), or campaign. Government Fund’s contributions can be found at www.fec.gov.
Political Advocacy and Trade Expenditures*
TYPE OF CONTRIBUTION 2017 2018 2019 2020 Lobbying, interest representation, or similar $357,172 $544,003 $450,499 $599,150 Local, regional, or national political campaigns / organizations / - - - - candidates Trade associations or tax-exempt groups (e.g., think tanks) $2,995,843 $2,456,429 $2,747,138 $2,358,915 Other (e.g., spending related to ballot measures or referendums) - - - - TOTAL (USD) $3,353,015 $3,000,432 $3,197,637 $2,958,065
*Values for 2017-2019 are slightly different from prior submissions due to revised consideration of which expenses should qualify for inclusion. In the interest of robustness and inclusiveness, we expanded the approach this year to apply to more groups, hence values are slightly larger.
2030 Target: 100% of our suppliers meet our Supplier Code of HUMAN RIGHTS & ETHICS Conduct requirements, with special attention to human rights PERFORMANCE issues such as safety and forced labor.+ 2030 Each year, we conduct survey assessments of our Percentage of Suppliers GOAL key suppliers, which make up 73% of our spending. They are asked to report their own policies regarding a range of topics, including human rights and ethics. Among suppliers who responded to our 2020 survey, 96% reported that they meet the standards set by our Supplier Code of Conduct. 2019: 95% 2020: 96% 100%
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Human Rights & Ethics | 281 SPEAKING OF SUSTAINABILITY
Albert Damsi In just over a year at Owens Corning, Albert Damsi has gained a unique perspective on the intersections between our business efforts and our work in sustainability. As a senior auditor in our internal audit department, Albert has been working to integrate human rights assessments into our standard audit process. Here, Albert discusses Owens Corning’s leadership in this area — and why it’s so important.
On the value of safeguarding human rights On Owens Corning’s dedication to expanding our Looking at how businesses have evolved over time indicates social handprint that human rights really is a business issue. Just over a I would say that as an employee on the newer side, the century ago, human rights standards were very different environment and culture at Owens Corning shows that we from what they are today, and work environments were truly do care about our employees and stakeholders. So that often unsafe depending on the job. With that being said, is very evident to me, and I noticed it immediately. I think it’s changing social values, new stakeholder expectations and great that Owens Corning is interested in this area — it really business involvement in communities are some aspects makes me proud to be part of Owens Corning. Knowing that that contribute to evolving human rights standards over our leaders are interested in looking at human rights and time. Human rights has been a business issue and I believe ensuring that Owens Corning is up to standards gives me a will continue to be a business issue in the future. good indication that Owens Corning is the right place to be. On the importance of committing ourselves to sustainability From a high level, sustainability’s role in the company is exactly that: the sustainability of the company over long periods of time. It really focuses on adaptation because adaptation is the only thing that is constant for companies. If a company is not adapting, then ultimately, they’re falling behind. Sustainability focuses on how we’re meeting expectations for internal stakeholders, external stakeholders and so forth. So ultimately, sustainability ensures, in a sense, the viability of the company over time.
Albert Damsi Senior Auditor, Internal Audit Department, Toledo, Ohio, U.S. Hiking in Hocking Hills State Park, Ohio.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Human Rights & Ethics | 282 Beginning in 2021, in addition to GOING their standard audit process, our internal audit team will conduct visual FORWARD inspections covering forced labor, child labor, unsafe working conditions, and other human rights issues in their on-site assessments. This expansion is part of our commitment to ensuring that our workplaces reflect the highest human rights standards as well as best practices for health and safety for everyone at our sites, including employees, contractors, and visitors.
Good corporate citizenship requires us to not only adhere to regulations, but also to go beyond compliance — and raise the bar on integrity. As we move toward our 2030 goals, we will work to reinforce the culture we have been working to establish, one where we act responsibly and responsively in all our operations.
In fostering this culture, we will continue to build the strategic partnerships and connections that will strengthen our ability to behave ethically and safeguard human rights. This will include collaboration with our entire supply chains, placing an emphasis on those suppliers who share our commitment to these guiding principles.
Photo submitted by: Rupak Karmakar | Silvassa, India Silvassa, India plant.
2020 Owens Corning Sustainability Report | Expanding Social Handprint | Human Rights & Ethics | 283 APPENDICES A. About the Report
B. Workforce Data
C. Environmental Data
D. General Disclosures
E. UN Global Compact Communication on Progress
F. Assurance Statements
G. TCFD Climate Risk
H. TCFD Index
I. SASB Index
J. GRI Index
K. Photographer Contributions
Photo submitted by: Lori Strohmaier | Toledo, Ohio, U.S. The walking paths outside of Owens Corning world headquarters and the Anthony Wayne Bridge.
2020 Owens Corning Sustainability Report | Appendices | 284 The Owens Corning Sustainability and other stakeholders’ requests, Report represents an opportunity including the Sustainability Accounting to communicate the full scope of Standards Board (SASB) and the our sustainability efforts to our Task Force on Climate-related stakeholders. Through this report, we Financial Disclosures (TCFD). This are able to demonstrate the many ways approach enables us to provide an we strive to be a net-positive company, integrated, comprehensive view of our with people and products that make commitments, progress, and activities the world a better place. related to sustainability and social responsibility. ABOUT THE This year, our 15th annual sustainability report reflects the reporting period We focus on creating robust from January 1, 2020, to December 31, business and reporting strategies REPORT 2020, and was published in April 2021. that effectively align with the needs Our previous report was published in and priorities of our company and April 2020. our stakeholders. We do this by investing substantial time and effort This is our fourth report prepared into understanding, prioritizing, and in accordance with the Global addressing material topics — and Reporting Initiative (GRI) Standards: reporting on them accurately and Comprehensive option. This is transparently. As such, our materiality the more extensive option for GRI matrix was carefully developed to reporting, requiring additional consider different stakeholder needs disclosures on our strategy, ethics as well as our involvement with the and integrity, and governance. We impacts of material topics. To remain do so because we firmly believe abreast of the changing business that transparency is an essential context, stakeholder requirements, component of any sustainability effort. and emerging trends, we regularly In addition, this report is designed review our list of material topics and to address disclosures and material their relative priority, then we update issues related to CDP (formerly them when appropriate. A discussion the Carbon Disclosure Project), the Photo submitted by: of our material topics, our materiality Dow Jones Sustainability Index Teresa Flores | Toledo, Ohio, U.S. grids, and a discussion of our ongoing Owens Corning world headquarters at night. (DJSI), United Nations Sustainable stakeholder engagement can be found Development Goals (SDGs), United in the Our Approach section. Nations Communication on Progress,
2020 Owens Corning Sustainability Report | Appendices | 285 For this report, the content and In summary, the boundaries of all SCOPE boundaries of material topics were impacts cover our entire global developed and determined based operations, including Asia Pacific, AND BOUNDARIES on their impacts — economic, Europe, and the Americas. Internal environmental, and/or social. We are boundaries include all plants and reporting on ways that we have caused offices owned or leased by Owens or contributed to impacts on our Corning. The external boundary material topics, as well as the ways our includes supplier locations, activities, products, and services are communities, and customer locations directly linked to these topics through where Owens Corning does business. our business relationships, including There were no significant changes in relationships with entities that we do scope in 2020. There have also been no not control and might not have the material restatements of information in leverage needed to effect change in this report. their impacts.
Key External Initiatives Adopted by the Company
STAKEHOLDER REQUIRED BY LAW/ INITIATIVE ADOPTION DATE WHERE APPLIED DEVELOPMENT VOLUNTARY
Multi-stakeholder UN Global Compact 2010 Companywide approach to Voluntary development
Supplier Code of UN Environmental Programme 2010 Companywide Voluntary Conduct
Supplier Code of Universal Declaration of Human Rights 2014 Companywide Voluntary Conduct
Supplier Code of International Labour Organization 2010 Companywide Voluntary Conduct
Supplementary Convention of the Abolition of Supplier Code of Slavery, the Slave Trade, and Institutions and 2010 Companywide Voluntary Conduct Practices Similar to Slavery
Protocol to Prevent, Suppress, and Punish Trafficking in Persons Especially Women and Supplier Code of Children, supplementing the United Nations 2010 Companywide Voluntary Conduct Convention against Transnational Organized Crime
Multi-stakeholder UN Sustainable Development Goals 2016 Companywide approach to Voluntary development All EMS systems are in alignment Multi-stakeholder Varies based on with ISO ISO 14000, ISO 50001, & ISO 45001/OHSAS 18001 approach to Voluntary site standards. Select development sites worldwide are certified. Select sites Multi-stakeholder ISO 9001 Varies by site worldwide are approach to Voluntary certified. development Multi-stakeholder Science Based Targets Initiative 2016 Companywide approach to Voluntary development Multi-stakeholder Science Based Targets Network 2020 Companywide approach to Voluntary development
2020 Owens Corning Sustainability Report | Appendices | 286 Since 2010, Owens Corning has been a and the processes used to develop, PRECAUTIONARY signatory to the United Nations Global produce, and manage them. Owens APPROACH AND Compact (UNGC), a strategic, voluntary Corning is confident that these efforts policy initiative for businesses are consistent with the expectations ALIGNMENT WITH committed to aligning their operations of the precautionary approach. with 10 universally accepted principles More information is available in our OTHER UN INITIATIVES in the areas of human rights, labor, Environmental, Health, Safety, and environment, and anti-corruption. Product Stewardship Policy, found at Owens Corning is aligned with the www.owenscorning.com/sustainability. UNGC’s Advanced level of reporting. As demonstrated throughout the Through this agreement, business, as report, we align our activities with a primary driver of globalization, can the UN’s 17 SDGs. In addition, Owens help ensure that markets, commerce, Corning publicly states our support for technology, and finance advance in the UN Universal Declaration of Human ways that benefit economies and Rights. The 30 articles that make up societies everywhere. the Universal Declaration represent a Principle 7 of the UNGC states watershed moment in the history of that, “businesses should support international human rights. As one of a precautionary approach to the primary driving forces behind the environmental challenges.” The UNGC, the Universal Declaration, which precautionary principle or approach was established in 1948, is as relevant was originally introduced in the 1992 and impactful as ever. Rio Declaration of Environment and Owens Corning is committed — in both Development. Principle 15 of the Rio belief and action — to the 10 principles Declaration explains that, “where there of the Global Compact and the 30 are threats of serious or irreversible articles of the Universal Declaration damage, lack of full scientific certainty of Human Rights. This commitment shall not be used as a reason for extends beyond making our products postponing cost-effective measures to and operations more sustainable. It prevent environmental degradation.” involves the broader objectives of The precautionary approach calls upon sustainability, balancing economic us to diligently assess and manage growth with social progress and environmental, health, and safety risks, environmental stewardship. In short, so we can take appropriate action we believe that what is good for people to prevent harm. We ensure that our and good for our planet is also good products and technology comply for Owens Corning. Our Human Rights Photo submitted by: Teresa Flores | Toledo, Ohio, U.S. with or exceed all applicable laws, Policy was updated and expanded Toledo skyline. regulations, and approval standards to in December 2016 and informs our protect the environment and human Supplier Code of Conduct, all in life and health. In addition, our product accordance with the principles of the stewardship programs are designed UNGC and the Universal Declaration of to ensure the integrity of our products Human Rights.
2020 Owens Corning Sustainability Report | Appendices | 287 Environmental Methodology Schneider Electric, invoices are REPORTING reviewed for missing data, potential For the organizational and overlaps or collisions with existing geographical boundaries of the METHODOLOGY data, and whether the data should be inventory, we have used owned and tracked by a third party. Once posted, Owens Corning follows the World leased facilities globally under Owens the invoice data are reviewed in the Resources Institute (WRI) Corporate Corning’s operational control. context of the surrounding account Accounting and Reporting standard to verify data entry, charge accuracy, for defining and accounting our The physical infrastructure, activities, and the overall trend in cost and baseline structure. In 2020, we had and/or technologies of the inventory consumption. Invoices with suspect over 100 facilities, which are included are understood as: data are elevated for further review and in the scope and boundary of our ■ Offices. resolution, also by the third party. reporting. The data for divested ■ Distribution centers. facilities are excluded from our Data that are put into our system go company environmental footprint; ■ Warehouses. through two variance tests. The first however, the data for closures are is to check if the currently entered ■ included in our reporting. Manufacturing facilities. value is >2 standard deviations over the average value entered (the period We review all structural changes ■ Fleet vehicles. for the average is 12 months prior such as mergers, acquisitions, and ■ Corporate jet. to the current month and 12 months divestments on an annual basis, after the current month). The second in keeping with WRI’s guideline ■ Employee travel. variance test is to check that the unit for baseline adjustments. Per the Emissions resulting from explosives, of measure is consistently used month stated protocol, the data of mergers fire extinguishers, refrigerants, and over month. or acquisitions greater than 10% welding gases have been excluded as are reviewed for accuracy and de minimis. In addition to the measures associated integrity and then integrated into with invoice- and user-provided data, our reporting inventory from base The GHG sources identified are our third-party partner provides 24 year to current year. This process of purchased electricity, heat, steam, hours per month of support for data updating the baseline is completed cooling, natural gas, diesel, jet fuel, management and quality assurance for both the numerator (aspect) and gasoline, propane, CO2, coke, fuel oils, of global data. The purpose of this denominator (sales or production) of kerosene, LPG, blowing agents, and ongoing quality assurance/quality our calculations. This approach was emissions from the processing of control is to identify anomalies when implemented to ensure a meaningful asphalt, dolomite, limestone, and soda reviewing long-term trending and and consistent comparison of ash. analyses in a further effort to ensure emissions over time, including for the data accuracy and integrity. All greenhouse gases declared in current year. the Kyoto Protocol (CO2, CH4, N2O, These boundaries are applicable to all
Please note that the numbers have HFCs, PFCs, NF3) are included in GRI Standards topics, including: been rounded. Some totals have been the evaluation. HCFC emissions ■ General disclosures. affected as a result. are optionally included in Scope 1 emissions, in addition to the Kyoto ■ Management approach. Defining Workers gases, and are outlined in the Appendix. ■ Economic. For purposes of this report, Owens Verification of Data Corning defines “workers” as our ■ Environmental. employees globally across all facilities Invoices are entered electronically into ■ in which we operate. In the Living our system and subjected to several Social. Safely chapter, we also report on audits to check both the completeness contractors over whom we have direct and the validity of the data. Before data supervision, as well as those for our are made available in our EcoStruxure™ large capital projects. Resource Advisor system from
2020 Owens Corning Sustainability Report | Appendices | 288 To enhance the reliability of our EXTERNAL recorded data, Owens Corning ASSURANCE works to ensure transparency in disclosure on all matrices, KPIs, and mechanisms of assurance. As we move forward, we will externally assure additional topics, prioritizing based on availability of data and importance to stakeholders, as observed through our materiality assessment.
SCS performed the assurance of the Owens Corning’s 2020 Sustainability Report against the AA1000 Assurance Standard (AA1000AS V3). In addition, SCS evaluated the report against the Global Reporting Initiative’s (GRI) Standards. Specific performance data were assessed using internationally recognized standards, which included, but are not limited to, the following: ■ World Resources Institute’s (WRI) Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition), March 2004, along with Scope 2 and Scope 3 Guidance.
■ ISO 14064-3:2006 Specification with guidance for the validation and verification of GHG assertions. To view the assurance statement, please see Appendix F.
For additional information on the economic and social metrics verified through SCS Global Services, see our Verification Statements document.
Questions About the Report
Any questions regarding our reporting process or this report can be directed to our chief sustainability officer: Mr. Frank O’Brien-Bernini Vice President and Chief Sustainability Officer Phone: 1.419.248.8000
Email: [email protected]
Photo submitted by: Olivia Kasle | Toledo, Ohio, U.S. Blossom tree outside of home.
2020 Owens Corning Sustainability Report | Appendices | 289 WORK FORCE DATA EMPLOYEE DATA Appendix B
+ The social data in this chapter marked with a + sign were independently assured to a moderate level by SCS Global Services. For more information or to see the verification statement, please go to page 339 in the About the Report section.
2020 Global Workforce Composition (Gender and Age)+
AGE GROUPS POSITION FEMALE MALE TOTAL
Number of employees in Manager 27 52 79 the age group <30 years Officer 0 0 0 by gender within employee Primary 302 2,587 2,889 categories Staff 214 251 465 TOTAL <30 AGE GROUP 543 2,890 3,433
Number of employees in Manager 320 873 1193 the age group 30-50 years Officer 10 20 30 by gender within employee Primary 1,078 6,201 7,279 categories Staff 831 1,353 2,184 TOTAL 30-50 AGE GROUP 2,239 8,447 10,686
Number of employees in Manager 108 401 509 the age group >50 years Officer 6 19 25 by gender within employee Primary 352 2,793 3,145 categories Staff 358 722 1,080 TOTAL 50+ AGE GROUP 824 3,935 4,759 GRAND TOTAL 3,606 15,272 18,878
2020 U.S. Workforce Composition (Minority Groups)+
POSITION FEMALE MALE TOTAL Manager 29 103 132 Number of employees in Officer 1 5 6 minority groups by gender within employee categories Primary 285 1,771 2,056 Staff 107 214 321 TOTAL 422 2,093 2,515
2020 Minority Representation of U.S. Sites+
PERCENTAGE CONSIDERED TO BE A MEMBER OF A MINORITY Workforce 33% Management 16%
Percentage of 2020 U.S. Hires (Staff and Primary) Who Were from Minority Groups+
ALL US HIRES 2020 MINORITY HIRES PERCENTAGE OF MINORITY HIRES 933 435 47%
2020 Owens Corning Sustainability Report | Appendices | 290 WORK FORCE DATA EMPLOYEE DATA Appendix B
2020 Ethnic Background of Non-Contingent U.S. Employees+
ETHNIC BACKGROUND FEMALE MALE TOTAL White 1,162 4,042 5,204 Black 257 990 1,247 Hispanic 104 872 976 Asian 40 155 195 Two or More Races 11 48 59 American Indian/Alaskan 8 22 30 Native Hawaiian/Other Pacific Islander 2 6 8 Not Specified 1 5 6 TOTAL 1,585 6,140 7,725
Number of Global Employees by Employment Contract (by Gender and Region)+
FEMALE MALE REGION TOTAL REGULAR TEMPORARY REGULAR TEMPORARY Asia Pacific 793 0 3,298 0 4,091 Europe 732 2 3,689 4 4,427 Latin America 384 0 1,670 0 2,054 North America 1,695 0 6,611 0 8,306 TOTAL 3,604 2 15,268 4 18,878
Number of Global Employees by Employment Type (by Gender)+
FEMALE MALE TOTAL Full Time 3,538 15,223 18,761 Part Time 68 49 117 TOTAL 3,606 15,272 18,878
Employee Training by Gender+
HOURS SUM COUNT HOURS AVERAGE TOTALS CATEGORY FEMALE MALE FEMALE MALE FEMALE MALE HOURS COUNT HRS AVG Officer 73 271 16 38 5 7 344 54 6 Manager 4,311 13,479 452 1,315 10 10 17,790 1,767 10 Staff 11,903 20,314 1,372 2,290 9 9 32,217 3,662 9 Primary 13,279 62,038 710 3,816 19 16 75,317 4,526 17 TOTAL 29,566 96,102 2,550 7,459 12 13 125,668 10,009 13
2020 Average amount in USD spent per FTE on training and development+ $370
2020 Owens Corning Sustainability Report | Appendices | 291 WORK FORCE DATA EMPLOYEE DATA Appendix B
2020 Global Workforce Composition (Gender and Country)+
COUNTRY FEMALE MALE TOTAL Austria 1 3 4 Belarus 2 3 5 Belgium 78 388 466 Brazil 47 504 551 Canada 110 471 581 Chile 16 29 45 China 677 1,297 1,974 Czech Republic 48 217 265 Denmark 1 7 8 Estonia 2 8 10 Finland 60 206 266 France 110 552 662 Germany 29 71 100 Hong Kong 1 1 2 India 87 1,659 1,746 Italy 20 285 305 Japan 3 16 19 Korea, Republic of 16 290 306 Latvia 4 5 9 Lithuania 54 212 266 Mexico 321 1,137 1,458 Netherlands 11 163 174 Norway 0 9 9 Poland 88 667 755 Russian Federation 121 385 506 Singapore 9 35 44 Slovakia 0 2 2 Spain 28 47 75 Sweden 65 343 408 Switzerland 4 13 17 United Arab Emirates 0 1 1 United Kingdom 8 106 114 United States 1,585 6,140 7,725 TOTAL 3,606 15,272 18,878
2020 Owens Corning Sustainability Report | Appendices | 292 WORK FORCE DATA EMPLOYEE DATA Appendix B
Number of Employees Joining the Organization in 2020*+
2017 2018 2019 2020 2020 RATE Total Employees 4,291 4,236 2,563 2,436 13% BY AGE GROUP <30 Years 1,707 2,256 1,248 1,174 34% 30 to 50 Years 2,012 1,743 1,123 1,095 10% >50 Years 572 237 192 167 4% BY GENDER Male 3,351 3,378 2,010 1,927 13% Female 940 858 553 509 14% BY REGION Asia Pacific 738 1,422 502 758 19% Europe 968 549 458 319 7% Latin America 576 614 438 391 19% North America 2,009 1,651 1,165 968 12% OTHER METRICS % of Open Positions Filled by Internal Candidates 64 56 46 39 Average Hiring Cost/FTE in USD 4,871 4,576 4,963 5,079
*The New Hire rate is not an internal Owens Corning metric. It is calculated based on GRI Standard requirements.
Number of Employees Leaving Employment in 2020+
2019 2020 2020 RATE Total Employees 3,298 2,908 16% BY AGE GROUP <30 Years 1,039 812 25% 30 to 50 Years 1,568 1,417 13% >50 Years 691 679 14% BY GENDER Male 2,623 2,298 15% Female 675 610 17% BY REGION Asia Pacific 806 636 16% Europe 499 405 9% Latin America 572 480 24% North America 1,421 1,387 17%
Total Employee Turnover Rate+
2017 2018 2019 2020 Total Employee Turnover Rate 17% 17% 17% 16% Voluntary Employee Turnover Rate 12% 12% 11% 9%
2020 Owens Corning Sustainability Report | Appendices | 293 WORK FORCE DATA SAFETY DATA Appendix B
ACRONYM DEFINITION FORMULA LWIR Lost Work Day Injury Rate Lost Work Day Cases X 200,000 / Total Labor Hours LTIFR Lost Time Injuries Frequency Rate Lost Work Day Cases X 1,000,000 / Total Labor Hours RIR Recordable Incidence Rate Number of Injuries X 200,000 / Total Labor Hours OIFR Occupational Illness Frequency Rate Number of Illnesses X 1,000,000 / Total Labor Hours TRIFR Total Recordable Injury Frequency Rate Number of Injuries X 1,000,000 / Total Labor Hours LWD Lost Work Day Rate Lost Work Days X 200,000 / Total Labor Hours
Occupational Illness Frequency Rate (OIFR) - Employees+
DEPARTMENT NAME METRIC 2017 2018 2019 2020 Total Labor Hours 39,269,681 45,596,924 45,900,250 42,105,796 Occupational Illness Count 0 3 0 0 Rate 0.00 0.07 0.00 0.00
Occupational Illness by Region+
REGION METRIC 2017 2018 2019 2020 Total Labor Hours 22,952,029 23,736,659 22,925,718 20,590,689 Female (count) 0 1 0 0 North America Female (rate) 0.00 0.04 0.00 0.00 Male (count) 0 2 0 0 Male (rate) 0.00 0.08 0.00 0.00
There were no occupational illness in South America, Europe, or Asia Pacific in the last four years.
2020 Owens Corning Sustainability Report | Appendices | 294 WORK FORCE DATA SAFETY DATA Appendix B
Recordable Injuries+
REGION Metric 2017 2018 2019 2020
Total Labor Hours 11,486,549 12,566,888 13,089,577 12,290,369
Female (count) 3 0 1 0
Female (rate) 0.05 0.00 0.02 0.00
Asia Pacific Male (count) 13 14 7 10
Male (rate) 0.23 0.22 0.11 0.16
Not Specified (count) 2 1 1 0
Not Specified (rate) 0.03 0.02 0.02 0.00
Asia Pacific Total (count) 18 15 9 10
Asia Pacific RIR 0.31 0.24 0.14 0.16
Total Labor Hours 3,567,925 8,069,125 8,575,120 8,073,712
Female (count) 2 0 2 0
Female (rate) 0.11 0.00 0.05 0.00
Europe Male (count) 12 16 18 16
Male (rate) 0.67 0.40 0.42 0.40
Not Specified (count) 1 0 0 0
Not Specified (rate) 0.06 0.00 0.00 0.00
Europe Total (count) 15 16 20 16
Europe RIR 0.84 0.40 0.47 0.40
Total Labor Hours 22,952,029 23,736,659 22,925,718 20,590,689
Female (count) 7 21 19 14
Female (rate) 0.06 0.18 0.17 0.14
North America Male (count) 51 71 103 91
Male (rate) 0.44 0.60 0.90 0.88
Not Specified (count) 5 0 0 0
Not Specified (rate) 0.04 0.00 0.00 0.00
North America Total (count) 63 92 122 105
North Americs RIR 0.55 0.78 1.06 1.02
Total Labor Hours 1,263,178 1,224,252 1,309,836 1,151,026
Female (count) 0 0 0 0
South America Female (rate) 0.00 0.00 0.00 0.00
Male (count) 1 0 0 0
Male (rate) 0.16 0.00 0.00 0.00
South America Total (count) 1 0 0 0
South America RIR 0.16 0.00 0.00 0.00
GRAND TOTAL RECORDABLE INJURIES 97 123 151 131
RECORDABLE INCIDENT RATE (RIR) 0.49 0.54 0.66 0.62
TOTAL RECORDABLE INJURIES FREQUENCY RATE (TRIFR) 2.47 2.70 3.29 3.11
2020 Owens Corning Sustainability Report | Appendices | 295 WORK FORCE DATA SAFETY DATA Appendix B
Injury by Type+
ASIA PACIFIC 2017 2018 2019 2020 NORTH AMERICA 2017 2018 2019 2020 FEMALE FEMALE Arms/Hands 3 0 0 0 Arms/Hands 2 9 6 4 Legs/Feet 0 0 0 0 Back/Shoulders 2 7 3 3 TOTAL 3 0 0 0 Head/Face/Eyes 0 3 4 2 MALE Legs/Feet 2 1 4 4 Arms/Hands 8 8 3 6 Multiple/Other 1 1 0 1 Back/Shoulders 2 0 0 1 TOTAL 7 21 17 14 Head/Face/Eyes 1 1 0 1 MALE Legs/Feet 1 3 2 2 Arms/Hands 25 37 43 33 Multiple/Other 0 0 0 0 Back/Shoulders 7 15 22 17 TOTAL 12 12 5 10 Head/Face/Eyes 10 9 13 20 UNSPECIFIED Legs/Feet 9 4 18 18 Arms/Hands 3 2 3 0 Multiple/Other 1 2 5 3 Legs/Feet 0 0 1 0 TOTAL 52 67 101 91 Multiple/Other 0 1 0 0 UNSPECIFIED TOTAL 3 3 4 0 Arms/Hands 2 4 2 0 ASIA PACIFIC TOTAL 18 15 9 10 Back/Shoulders 1 0 0 0 Head/Face/Eyes 1 0 0 0 EUROPE 2017 2018 2019 2020 Legs/Feet 0 0 2 0 FEMALE TOTAL 4 4 4 0 Arms/Hands 0 0 1 0 NORTH AMERICA 63 92 122 105 Legs/Feet 2 0 0 0 TOTAL TOTAL 2 0 1 0 MALE SOUTH AMERICA 2017 2018 2019 2020 Arms/Hands 3 12 8 11 MALE Back/Shoulders 1 0 1 0 Arms/Hands 1 0 0 0 Head/Face/Eyes 1 1 0 2 Multiple/Other 0 0 0 0 Legs/Feet 4 2 4 3 TOTAL 1 0 0 0 SOUTH AMERICA Multiple/Other 2 0 0 0 1 0 0 0 TOTAL TOTAL 11 15 13 16 UNSPECIFIED
Arms/Hands 1 0 2 0 REGION 2017 2018 2019 2020 Back/Shoulders 0 0 1 0 Asia Pacific 18 15 9 10 Head/Face/Eyes 0 0 2 0 Europe 15 16 20 16 Legs/Feet 1 1 1 0 North America 63 92 122 105 TOTAL 2 1 6 0 South America 1 0 0 0 EUROPE TOTAL 15 16 20 16 GRAND TOTAL 97 123 151 131
2020 Owens Corning Sustainability Report | Appendices | 296 WORK FORCE DATA SAFETY DATA Appendix B
Employee Lost-Time Injury Frequency Rate (LTIFR)+
REGION METRIC 2017 2018 2019 2020 Total Labor Hours 11,486,549 12,566,888 13,089,577 12,290,369 Female (count) 3 0 1 0 Female (rate) 0.05 0.00 0.02 0.00 Asia Pacific Male (count) 9 8 2 7 Male (rate) 0.16 0.13 0.03 0.11 Not Specified (count) 0 1 0 0 Not Specified (rate) 0.00 0.02 0.00 0.00 Asia Pacific Total (count) 12 9 3 7 Asia Pacific LWIR 0.21 0.14 0.05 0.11 Asia Pacific LTIFR 1.04 0.72 0.23 0.57 Total Labor Hours 3,567,925 8,069,125 8,575,120 8,073,712 Female (count) 1 0 1 0 Female (rate) 0.06 0.00 0.02 0.00 Europe Male (count) 11 12 14 12 Male (rate) 0.62 0.30 0.33 0.30 Not Specified (count) 2 0 0 0 Not Specified (rate) 0.11 0.00 0.00 0.00 Europe Total (count) 14 12 15 12 Europe LWIR 0.78 0.30 0.35 0.30 Europe LTIFR 3.92 1.49 1.75 1.49 Total Labor Hours 22,952,029 23,736,659 22,925,718 20,590,689 Female (count) 3 8 9 6 Female (rate) 0.03 0.07 0.08 0.06 North America Male (count) 24 31 54 33 Male (rate) 0.21 0.26 0.47 0.32 Not Specified (count) 1 0 0 0 Not Specified (rate) 0.01 0.00 0.00 0.00 North America Total (count) 28 39 63 39 North America LWIR 0.24 0.33 0.55 0.38 North America LTIFR 1.22 1.64 2.75 1.89 Total Labor Hours 1,263,178 1,224,252 1,309,836 1,151,026 South America Male (count) 0 0 0 0 Male (rate) 0.00 0.00 0.00 0.00 South America Total (Count) 0 0 0 0 South America LWIR 0.00 0.00 0.00 0.00 South America LTIFR 0.00 0.00 0.00 0.00 GRAND TOTAL 54 60 81 58
Lost-Time Injuries Frequency Rate (LTIFR) - Employees 2017 2018 2019 2020 TOTAL LABOR HOURS 39,269,681 45,596,924 45,900,250 42,105,796 LTIFR 1.38 1.32 1.76 1.38
2020 Owens Corning Sustainability Report | Appendices | 297 WORK FORCE DATA SAFETY DATA Appendix B
Lost Work Day Rate (LWD)+
REGION METRIC 2017 2018 2019 2020 Total Labor Hours 11,486,549 12,566,888 13,089,577 12,290,369 Female (Lost Work Days 100 0 77 0 Count) Female (LWD Rate) 1.74 0.00 1.18 0.00 Male (Lost Work Days Asia Pacific 604 624 48 490 Count) Male (LWD Rate) 10.52 9.93 0.73 7.97 Unspecified (Lost Work 0 32 0 0 Days Count) Unspecified (LWD Rate) 0.00 0.51 0.00 0.00 Asia Pacific Total Work Days Lost 704 656 125 490 Asia LWD Rate 12.26 10.44 1.91 7.97 Total Labor Hours 3,567,925 8,069,125 8,575,120 8,073,712 Female (Lost Work Days 42 0 4 0 Count) Female (LWD Rate) 2.35 0.00 0.09 0.00 Male (Lost Work Days Europe 305 578 629 693 Count) Male (LWD Rate) 17.10 14.33 14.67 17.17 Unspecified (Lost Work 31 0 0 0 Days Count) Unspecified (LWD Rate) 1.74 0.00 0.00 0.00 Europe Total Work Days Lost 378 578 633 693 Europe LWD Rate 21.19 14.33 14.76 17.17 Total Labor Hours 22,952,029 23,736,659 22,925,718 20,590,689 Female (Lost Work Days 1199 1242 1254 757 Count) Female (LWD Rate) 10.45 10.46 10.94 7.35 Male (Lost Work Days North America 2592 5055 5822 3403 Count) Male (LWD Rate) 22.59 42.59 50.79 33.05 Unspecified (Lost Work 1 0 0 0 Days Count) Unspecified (LWD Rate) 0.01 0.00 0.00 0.00 North America Total Work Days Lost 3,792 6,297 7,076 4,160 North America LWD Rate 33.04 53.06 61.73 40.41 Total Labor Hours 1,263,178 1,224,252 1,309,836 1,151,026 Female (Lost Work Days 0 0 0 0 Count) South America Female (LWD Rate) 0.00 0.00 0.00 0.00 Male (Lost Work Days 0 0 0 0 Count) Male (LWD Rate) 0.00 0.00 0.00 0.00 South America Total Work Days Lost 0 0 0 0 South America LWD Rate 0.00 0.00 0.00 0.00 GRAND TOTAL - TOTAL WORK DAYS LOST 4,874 7,531 7,834 5,343 TOTAL LWD RATE 24.82 33.03 34.13 25.38
2020 Owens Corning Sustainability Report | Appendices | 298 WORK FORCE DATA SAFETY DATA Appendix B
Contractor Safety Statistics+
BUSINESS METRIC 2017 2018 2019 2020 Recordables 0 1 0 0 Total Labor Hours 140,399 191,203 245,896 93,664 Number LWD Cases 0 1 0 0 Building Materials Asia Pacific LWIR 0 1.05 0 0 RIR 0 1.05 0 0 Fatalities 0 0 0 0 Recordables 1 3 0 0 Total Labor Hours 1,348,648 3,855,821 208,622 203,206 Number LWD Cases 0 1 0 0 Composites LWIR 0 0.05 0 0 RIR 0.15 0.16 0 0 Fatalities 1 0 0 0 Recordables 7 3 2 1 Total Labor Hours 400,628 408,086 353,232 235,705 Number LWD Cases 3 1 0 0 Insulation LWIR 1.50 0.49 0 0 RIR 3.49 1.47 1.13 0.85 Fatalities 0 0 0 0 Recordables 1 1 1 0 Total Labor Hours 127,557 150,216 135,407 98,119 Number LWD Cases 0 1 0 0 Roofing LWIR 0 1.33 0 0 RIR 1.57 1.33 1.48 0 Fatalities 1 1 0 0 Recordables 9 8 3 1 Total Labor Hours 2,017,232 4,605,326 943,157 630,694 Number LWD Cases 3 4 0 0 TOTAL LWIR 0.30 0.17 0 0 RIR 0.89 0.35 0.64 0.32 Fatalities 2 1 0 0
Contractor Lost-Time Injury Frequency Rate (LTIFR)+
2017 2018 2019 2020 Contractor Labor Hours 2,017,232 4,605,326 943,157 630,694 Lost Work Day Cases 3 4 0 0 LTIFR Contractors 1.49 0.87 0 0 Data Coverage: % of total contractors 100 100 100 100
2020 Owens Corning Sustainability Report | Appendices | 299 WORK FORCE DATA SAFETY DATA Appendix B
2020 Serious Injuries and Fatalities (SIF)+
SIF NEAR MISS - REGION METRIC 2019 2020
Total Labor Hours 13,089,577 12,290,369
Asia Pacific SIF Near Miss Count 10 2
SIF Near Miss Rate 0.15 0.03
Total Labor Hours 8,575,120 8,073,712
Europe SIF Near Miss Count 21 17
SIF Near Miss Rate 0.49 0.42
Total Labor Hours 22,925,718 20,590,689
North America SIF Near Miss Count 120 43
SIF Near Miss Rate 1.05 0.42
Total Labor Hours 1,309,836 1,151,026
South America SIF Near Miss Count 6 0
SIF Near Miss Rate 0.92 0.00
TOTAL SIF NEAR MISSES 157 62
TOTAL SIF NEAR MISS RATE 0.68 0.68 0.29
SIF RECORDABLE - REGION METRIC 2019 2020
Total Labor Hours 13,089,577 12,290,369
Asia Pacific SIF Recordable Count 1 1
SIF Recordable Rate 0.02 0.02
Total Labor Hours 8,575,120 8,073,712
Europe SIF Recordable Count 3 2
SIF Recordable Rate 0.07 0.05
Total Labor Hours 22,925,718 20,590,689
North America SIF Recordable Count 16 13
SIF Recordable Rate 0.14 0.13
Total Labor Hours 1,309,836 1,151,026
South America SIF Recordable Count 0 0
SIF Recordable Rate 0.00 0.00
TOTAL SIF RECORDABLES 20 16
TOTAL SIF RECORDABLE RATE 0.09 0.09 0.08
2020 Owens Corning Sustainability Report | Appendices | 300 WORK FORCE DATA SAFETY DATA Appendix B
Employee Fatalities+
REGION METRIC 2017 2018 2019 2020
Total Labor Hours 11,486,549 12,566,888 13,089,577 12,290,369
Female (count) Fatalities 0 0 0 0 Asia Pacific Male (count) Fatalities 0 0 0 0
TOTAL FATALITIES 0 0 0 0
Total Labor Hours 3,567,925 8,069,125 8,575,120 8,073,712
Female (count) Fatalities 0 0 0 0 Europe Male (count) Fatalities 0 0 0 0
TOTAL FATALITIES 0 0 0 0
Total Labor Hours 22,952,029 23,736,659 22,925,718 20,590,689
Female (count) Fatalities 0 0 0 0 North America Male (count) Fatalities 0 0 1 0
TOTAL FATALITIES 0 0 1 0
Total Labor Hours 1,263,178 1,224,252 1,309,836 1,151,026
Female (count) Fatalities 0 0 0 0 South America Male (count) Fatalities 0 0 0 0
TOTAL FATALITIES 0 0 0 0
GRAND TOTAL FATALITIES 0 0 1 0
2020 Owens Corning Sustainability Report | Appendices | 301 ENVIRONMENTAL DATA ENERGY DATA Appendix C
Energy
The energy and Scope 1 and Scope 2 emissions data in this appendix were independently assured to a high level by SCS Global Services. Other data were independently assured to a moderate level by SCS Global Services. For more information or to see the verification statement, please go to page 339.
For the data in this section, baseline adjustments were made following the World Resources Institute (WRI) protocols. Read more in About the Report.
Intensity is normalized based on metric tons (MT) of product produced. Indirect energy includes electricity, heat, steam, cooling.
Direct Energy by Fuel Type
8
7
6
5
4 (IN MILLIONS) MEGAWATT HOURS MEGAWATT 3
2
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Gasoline & Diesel 13,051 13,035 24,902 24,161 26,461 18,851 23,611 22,086 25,209 21,373 15,921 Jet Fuel (Jet A or A-1) 14,306 14,169 12,600 15,097 12,262 13,058 15,084 14,094 12,503 11,197 10,415 Propane & LPG 138,160 130,899 123,547 126,952 130,964 125,643 149,344 174,157 169,146 139,320 131,586
Coke 586,633 632,005 601,093 610,201 619,436 601,281 617,210 699,013 751,173 752,827 723,899
Fuel oil 1, 2, 6 436,091 308,621 209,705 171,377 145,440 127,758 120,750 115,028 37,542 3,398 3,267
Natural gas 5,518,081 6,082,901 5,898,410 6,133,137 5,955,889 5,809,499 5,803,336 6,009,782 6,167,954 6,049,583 5,534,539
TOTAL 6,706,322 7,181,629 6,870,257 7,080,924 6,890,453 6,696,091 6,729,336 7,034,161 7,163,526 6,977,699 6,419,626
2020 Owens Corning Sustainability Report | Appendices | 302 ENVIRONMENTAL DATA ENERGY DATA Appendix C
Indirect Energy by Source
4
3
2 (IN MILLIONS)
MEGAWATT HOURS MEGAWATT 1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Electricity 3,125,529 3,311,751 3,266,848 3,386,785 3,361,247 3,297,512 3,292,208 3,400,399 3,543,709 3,286,435 3,115,708
Steam, Heat, Cooling 9,570 7,880 7,726 9,083 9,188 12,660 12,030 12,934 15,274 14,876 15,060
TOTAL 3,135,099 3,319,631 3,274,574 3,395,868 3,370,436 3,310,172 3,304,238 3,413,333 3,558,983 3,301,311 3,130,768
Electricity Consumption by Source (in Megawatt Hours)
Renewable-Source Electricity Non-Renewable Sourced Electricity
2010 556,318 2,569,212 3,125,529
2011 589,828 2,721,923 3,311,751
2012 574,326 2,692,522 3,266,848
2013 552,383 2,834,403 3,386,785
2014 592,087 2,769,160 3,361,247
2015 620,467 2,677,045 3,297,512
2016 746,897 2,545,311 3,292,208
2017 1,534,195 1,866,204 3,400,399
2018 1,683,939 1,859,771 3,543,709
2019 1,631,884 1,654,551 3,286,435
2020 1,602,711 1,512,997 3,115,708
2020 Owens Corning Sustainability Report | Appendices | 303 ENVIRONMENTAL DATA ENERGY DATA Appendix C
Energy Portfolio (in Megawatt Hours)
DIRECT ENERGY
Non-Renewable
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Asia Pacific 1,060,331 1,167,878 1,157,284 1,091,351 966,148 887,804 869,532 855,292 796,553 862,410 690,564
Canada 327,987 331,034 295,064 293,527 304,189 301,733 260,718 245,423 258,068 221,086 223,066
Europe 1,914,496 1,973,538 1,740,282 1,793,620 1,757,723 1,761,432 1,764,053 1,839,655 1,903,793 1,823,377 1,708,077
Latin America 379,848 402,572 459,263 564,233 517,270 527,571 578,238 564,676 586,399 538,709 519,204
United States 3,023,659 3,306,607 3,218,365 3,338,193 3,345,123 3,217,550 3,256,795 3,529,115 3,618,712 3,532,118 3,278,716
Renewable
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
All Regions 0 0 0 0 0 0 0 0 0 0 0
INDIRECT ENERGY
Non-Renewable
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Asia Pacific 338,717 397,173 406,649 414,337 377,600 377,214 324,717 355,963 347,797 376,763 332,621
Canada 97,660 101,100 90,269 228,344 93,549 97,667 47,019 71,923 158,657 123,526 21,589
Europe 472,831 502,314 443,246 487,076 504,962 490,560 503,396 396,368 446,077 357,535 372,936
Latin America 95,353 112,237 125,748 217,972 157,635 154,990 172,111 182,303 184,388 161,638 143,723
United States 1,574,221 1,616,979 1,634,335 1,495,757 1,644,603 1,569,273 1,510,097 872,581 738,125 649,964 657,188
Renewable
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Asia Pacific 46,766 57,976 59,503 58,714 53,938 51,667 103,479 74,118 77,794 89,305 82,571
Canada 159,339 166,314 147,281 17,439 154,555 159,352 176,881 141,970 66,558 54,982 166,690
Europe 160,181 169,796 165,457 168,576 146,863 143,278 178,646 307,915 273,245 347,162 318,079
Latin America 81,276 88,789 87,779 25,916 75,467 92,474 94,953 86,574 90,106 88,960 79,252
United States 108,756 106,953 114,307 281,738 161,264 173,697 192,938 923,617 1,176,235 1,051,475 956,120
Overall Energy Usage
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Non-Renewable 9,285,103 9,911,432 9,570,505 9,924,410 9,668,801 9,385,795 9,286,677 8,913,299 9,038,571 8,647,126 7,947,683
Renewable 556,318 589,828 574,326 552,383 592,087 620,467 746,897 1,534,195 1,683,939 1,631,884 1,602,711
TOTAL ENERGY USAGE PERCENT ENERGY FROM 5.7% 5.6% 5.7% 5.3% 5.8% 6.2% 7.4% 14.7% 15.7% 15.9% 16.8% RENEWABLE SOURCES
2020 Owens Corning Sustainability Report | Appendices | 304 ENVIRONMENTAL DATA ENERGY DATA Appendix C
Renewable and Non-Renewable Electricity Consumption by Region (in Megawatt Hours)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Renewable
Asia Pacific 46,766 57,976 59,503 58,714 53,938 51,667 103,479 74,118 77,794 89,305 82,571
Canada 159,339 166,314 147,281 17,439 154,555 159,352 176,881 141,970 66,558 54,982 166,690
Europe 160,181 169,796 165,457 168,576 146,863 143,278 178,646 307,915 273,245 347,162 318,079 Latin 81,276 88,789 87,779 25,916 75,467 92,474 94,953 86,574 90,106 88,960 79,252 America United 108,756 106,953 114,307 281,738 161,264 173,697 192,938 923,617 1,176,235 1,051,475 956,120 States Non-Renewable
Asia Pacific 338,717 397,173 406,649 414,337 377,600 377,214 324,717 355,275 346,702 375,587 331,496
Canada 97,660 101,100 90,269 228,344 93,549 97,667 47,019 71,923 158,657 123,526 21,589
Europe 463,261 494,434 435,520 477,993 495,774 477,900 491,366 384,123 431,899 343,836 359,001 Latin 95,353 112,237 125,748 217,972 157,635 154,990 172,111 182,303 184,388 161,638 143,723 America United 1,574,221 1,616,979 1,634,335 1,495,757 1,644,603 1,569,273 1,510,097 872,581 738,125 649,964 657,188 States
2020 Direct and Indirect Energy Summary by Region (in Megawatt Hours)
REGION RENEWABLE NON-RENEWABLE TOTAL BY REGION
Asia Pacific 82,571 1,023,185 1,105,756
Canada 166,690 244,654 411,344
Europe 318,079 2,081,013 2,399,092
Latin America 79,252 662,928 742,179
United States 956,120 3,935,904 4,892,024
TOTAL 1,602,711 7,947,683 9,550,394
2020 Normalized Electric Power
2020 MWh NORMALIZED AMOUNT
3,115,708 0.4133
2020 Owens Corning Sustainability Report | Appendices | 305 ENVIRONMENTAL DATA ENERGY DATA Appendix C
Global Electricity Mix Market-Based Global Electricity Mix Location-Based
100 100 Renewable 22% Renewable
80 51% 80
60 60 Non-Renewable 78%
40 40 Non-Renewable 49%
20 20
CATEGORY SOURCE U.S. NON-U.S. GLOBAL CATEGORY SOURCE U.S. NON-U.S. GLOBAL Hydro 2% 27% 14% Hydro 4% 13% 8% Wind 56% 13% 35% Wind 6% 5% 5% Solar 1% 2% 1% Solar 1% 7% 4% Renewable Biomass 1% 1% 1% Renewable Biomass 1% 6% 4% Geothermal <1% <1% <1% Geothermal <1% 0% <1% Other Other 0% <1% <1% 0% 1% <1% Renewable Renewable Coal 12% 27% 19% Coal 29% 27% 28% Oil <1% 1% 1% Oil <1% 1% 1% Gas 15% 17% 16% Gas 36% 17% 27%
Non- Other Fossil <1% 1% 1% Non- Other Fossil <1% 5% 3% Renewable Nuclear 14% 10% 12% Renewable Nuclear 21% 17% 19% Other Other Unknown/ Unknown/ <1% 0% <1% <1% 0% <1% Purchased Purchased Fuel Fuel TOTAL 100% 100% 100% TOTAL 100% 100% 100%
2020 Owens Corning Sustainability Report | Appendices | 306 ENVIRONMENTAL DATA ENERGY DATA Appendix C
2020 Total Energy Consumed in Our Value Chain (in Megawatt Hours)
CATEGORY COMPOSITES INSULATION ROOFING TOTAL Coal 1,473,934 2,346,278 1,398,121 5,218,333 Natural Gas 1,598,864 1,746,609 2,184,841 5,530,314 Petrol 682,372 1,181,810 1,911,001 3,775,184 Bio/Waste 253,634 431,647 468,427 1,153,708 Non-fossil Electricity 566,906 524,596 559,290 1,650,793 TOTAL ENERGY 4,575,710 6,230,941 6,521,680 17,328,331
Energy consumption outside of the organization is determined using an EIO-LCA based method. The calculation is performed using the EIO-LCA online tool developed by Carnegie Mellon University. It is based on the respective NAICS manufacturing industry sectors associated with Owens Corning’s three major business operations. Net sales figures in the 2020 Owens Corning Annual Report on Form 10-K were used as indicators of, and inputs for, economic activity in each of the three respective sectors. The reported value is reflective of only Scope 3 upstream use for each of our three businesses.
Energy Disclosures Based on SASB Definitions and Metrics
DISCLOSURE REQUEST VALUE Total Energy Consumed in gigajoules (GJ) 34,381,419 Percentage of energy consumed that was supplied from grid electricity 33% Percentage of energy consumed that was from alternative sources 0% Percentage of energy consumed that is renewable energy* 14%
*Excluding renewable electricity from residual grid mix data
2020 Estimated Savings from Energy Investments by Region
ESTIMATED ANNUAL ANNUAL MONETARY LOCATION INVESTMENT REQUIRED (USD) SAVINGS (METRIC TONS CO2e) SAVINGS (USD) North America 7,060 $472,367 $1,393,246 Outside North America 7,901 $1,078,912 $1,247,138 TOTAL 14,961 $1,551,279 $2,640,384
2020 Owens Corning Sustainability Report | Appendices | 307 ENVIRONMENTAL DATA ENERGY DATA Appendix C
Primary Energy Accounting Methodology
CALENDAR TYPE LOCATIONS SOURCE YEAR Primary Energy All facilities All Years US EPA Better Plants: Primary Energy Accounting Methodology; revised 2/2015
Electricity Canada 2020 Statistics Canada Electric Power Annual Generation Data (w/ 2018 data)
Electricity EU Countries 2020 Association of Issuing Bodies (AIB): European Residual Mixes (w/ 2019 data)
Electricity ROW* 2020 International Energy Agency (IEA): Month Electricity Statistics Data (w/ 2019 data)
Electricity Singapore 2020 Singapore Government Energy Market Authority (w/ 2019 Q1 data)
Electricity US 2020 US EPA eGRID 2020v2 (w/2018 data)
Electricity Canada 2019 Statistics Canada Electric Power Annual Generation Data (w/ 2018 data)
Electricity EU Countries 2019 Association of Issuing Bodies (AIB): European Residual Mixes (w/ 2018 data)
Electricity ROW* 2019 International Energy Agency (IEA): Month Electricity Statistics Data (w/ 2018 data)
Electricity Singapore 2019 Singapore Government Energy Market Authority (w/ 2018 data)
Electricity US 2019 US EPA eGRID 2018 (w/2016 data)
Electricity Canada 2018 Statistics Canada Electric Power Annual Generation Data (w/ 2017 data)
Electricity EU Countries 2018 Association of Issuing Bodies (AIB): European Residual Mixes (w/ 2017 data)
Electricity ROW* 2018 International Energy Agency (IEA): Month Electricity Statistics Data (w/ 2017 data)
Electricity Singapore 2018 Singapore Government Energy Market Authority (w/ 2017 data)
Electricity US 2018 US EPA eGRID 2018 (w/2016 data)
Electricity Non-US 2017 International Energy Agency (IEA): CO2 Emissions from Fuel Combustion 2017-Year 2015 Electricity US 2017 US EPA eGRID 2018 (w/2016 data)
Electricity Non-US 2016 International Energy Agency (IEA): CO2 Emissions from Fuel Combustion 2016-Year 2014 Electricity US 2016 US EPA eGRID 2017 (w/2014 data)
Electricity Non-US 2015 International Energy Agency (IEA) CO2 Emissions from Fuel Combustion 2015-Year 2013 Electricity US 2015 US EPA eGRID 2015 (w/2012 data)
Electricity Non-US 2014 International Energy Agency (IEA) CO2 Emissions from Fuel Combustion 2011- Year 2009 Electricity US 2014 US EPA eGRID 2014 v1.0 (w/2010 data)
Electricity Non-US 2013 International Energy Agency (IEA) CO2 Emissions from Fuel Combustion 2011- Year 2009 Electricity US 2013 US EPA eGRID 2014 v1.0 (w/2010 data)
Electricity Non-US 2012 International Energy Agency (IEA) CO2 Emissions from Fuel Combustion 2011- Year 2009 Electricity US 2012 US EPA eGRID 2012 v1.0 (w/2009 data)
Electricity Non-US 2011 International Energy Agency (IEA) CO2 Emissions from Fuel Combustion 2011- Year 2009 Electricity US 2011 US EPA eGRID 2010 V1.0 (w/2007 Data)
Electricity Non-US 2010 International Energy Agency (IEA) CO2 Emissions from Fuel Combustion 2011- Year 2009 Electricity US 2010 US EPA eGRID 2007 V1.1 (w/2005 data)
Leased Facilities Warehouse 2019-2020 Energy Star Portfolio Manager - U.S. Energy Use Intensity by Property Type; publication 8/2018
Leased Facilities Office/Other 2019-2020 Energy Star Portfolio Manager - U.S. Energy Use Intensity by Property Type; publication 8/2018 Energy Star Portfolio Manager - Energy Star Score for Warehouses in the United States; Leased Facilities Warehouse 2010-2018 publication 7/13 Leased Facilities Office/Other 2010-2018 Energy Star Portfolio Manager - Energy Use in Office Buildings; publication 10/2012
*ROW: Countries besides the US, Canada, Singapore, and the EU 2020 Owens Corning Sustainability Report | Appendices | 308 ENVIRONMENTAL DATA EMISSIONS DATA Appendix C
HCFC emissions are optionally included in Scope 1 emissions, in addition to the Kyoto gases, and the associated emissions are outlined in the table Ozone-Depleting Substances.
Direct and Indirect Emissions (Metric Tons CO2e) Scope 1 and 2 Emissions Using Market-Based method. Direct (Scope 1) Indirect (Scope 2)
2010 3,502,317 1,641,442 5,143,760
2011 3,282,693 1,675,967 4,958,660
2012 3,082,142 1,622,327 4,704,469
2013 2,968,974 1,662,960 4,631,935
2014 2,909,782 1,652,206 4,561,988
2015 2,818,110 1,562,207 4,380,317
2016 2,852,202 1,544,434 4,396,636
2017 2,800,503 1,112,746 3,913,249
2018 2,909,347 967,623 3,876,970
2019 2,768,166 917,179 3,685,345
2020 2,465,499 872,168 3,337,667
Direct and Indirect Emissions (Metric Tons CO2e) Scope 1 and 2 Emissions Using Location-Based Method. Direct (Scope 1) Indirect (Scope 2)
2010 3,502,317 1,641,442 5,143,760
2011 3,282,693 1,675,967 4,958,660
2012 3,082,142 1,622,327 4,704,469
2013 2,968,974 1,662,960 4,631,935
2014 2,909,782 1,652,206 4,561,988
2015 2,818,110 1,574,696 4,392,806
2016 2,852,202 1,566,146 4,418,348
2017 2,800,503 1,483,334 4,283,837
2018 2,909,347 1,529,889 4,439,235
2019 2,768,166 1,437,669 4,205,835
2020 2,465,499 1,304,693 3,770,193
2020 Owens Corning Sustainability Report | Appendices | 309 ENVIRONMENTAL DATA EMISSIONS DATA Appendix C
Scope 1 Emissions Breakdown
4
3 e 2
2 (IN MILLIONS) METRIC TONS C0 TONS METRIC
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Foam Blowing Agent 1,963,762 1,651,670 1,524,274 1,354,752 1,349,009 1,309,542 1,328,645 1,205,779 1,283,946 1,187,221 1,015,063 Emissions Fossil Fuel 1,332,630 1,415,321 1,347,985 1,385,226 1,351,147 1,310,060 1,318,845 1,386,040 1,411,213 1,374,258 1,268,550 Combustion Process Emissions 199,109 208,934 203,644 222,072 203,472 192,127 197,692 202,215 208,032 200,616 176,971 Leased Corporate 3,255 3,240 3,102 3,165 3,102 3,133 3,268 2,967 3,048 3,286 2,327 Fleet Leased Corporate 3,562 3,528 3,138 3,759 3,052 3,248 3,753 3,503 3,107 2,785 2,587 Aircraft TOTAL 3,502,317 3,282,693 3,082,142 2,968,974 2,909,782 2,818,110 2,852,202 2,800,503 2,909,347 2,768,166 2,465,499
2020 Owens Corning Sustainability Report | Appendices | 310 ENVIRONMENTAL DATA EMISSIONS DATA Appendix C
Scope 1 Total Direct GHG Emissions - Market-Based (Metric Tons CO2e)
2017 2018 2019 2020 Total Direct GHG Emissions (Scope 1) 2,800,503 2,909,347 2,768,166 2,465,499 Data Coverage (% of units of production) 100 100 100 100
Scope 2 Total Indirect GHG Emissions - Market-Based (Metric Tons CO2e)
2017 2018 2019 2020 Total Indirect GHG Emissions (Scope 2) 1,112,746 967,623 917,179 872,168 Data Coverage (% of units of production) 100 100 100 100
Scope 3 Total GHG Emissions (Metric Tons CO2e)
CATEGORIES 2017 2018 2019 2020 Purchased goods and services 2,102,814 1,936,670 1,943,019 1,823,130 Capital goods 112,407 136,868 150,012 106,623 Fuel-and-energy-related activities (not included in 393,519 416,521 436,358 369,114 Scope 1 or 2) Upstream transportation and distribution 187,355 182,499 188,157 168,143 Business travel 12,744 13,708 13,931 3,370 Employee commuting 44,808 26,220 25,027 23,635 Downstream transportation and distribution 475,329 530,245 400,730 349,951 Processing of sold products 450,684 438,746 436,358 396,960 End-of-life treatment of sold products 159,589 202,469 190,965 196,019 TOTAL 3,939,247 3,883,945 3,784,557 3,436,945
2020 Owens Corning Sustainability Report | Appendices | 311 ENVIRONMENTAL DATA EMISSIONS DATA Appendix C
2020 Normalized Indirect Emissions - Market-Based
METRIC TONS CO2e NORMALIZED AMOUNT Indirect Emissions 872,168 0.11570
2020 Normalized Methane Emissions - Market-Based
METRIC TONS CO2e NORMALIZED AMOUNT Methane Emissions 1,658 0.00022
2020 Methane Emissions - Market-Based (Metric Tons)
NORTH AMERICA OUTSIDE NORTH AMERICA TOTAL Methane Emissions 560 1,098 1,658
2020 Direct CO2 Emissions - Market-Based (Metric Tons)
NORTH AMERICA OUTSIDE NORTH AMERICA TOTAL
Direct CO2 Emissions 722,542 724,972 1,447,514 Normalized Emissions 0.1920
2020 Indirect CO2 Emissions - Market-Based (Metric Tons)
NORTH AMERICA OUTSIDE NORTH AMERICA TOTAL
Indirect CO2 Emissions 327,118 543,261 870,379 Normalized Emissions 0.1155
2020 Direct GHG Emissions - Market-Based (Metric Tons CO2e)
NORTH AMERICA OUTSIDE NORTH AMERICA TOTAL Direct GHG Emissions 1,476,561 988,938 2,465,499 Normalized Emissions 0.3271
2020 Indirect GHG Emissions - Market-Based (Metric Tons CO2e)
NORTH AMERICA OUTSIDE NORTH AMERICA TOTAL Indirect GHG Emissions 327,264 544,904 872,168 Normalized Emissions 0.1157
2020 Owens Corning Sustainability Report | Appendices | 312 ENVIRONMENTAL DATA EMISSIONS DATA Appendix C
Ozone-Depleting Substances - HCFCs (Absolute Metric Tons CO2e) In 2020, our absolute emissions were 79% lower than the 2010 baseline due to a formulation change in XPS foam plants in North America.
2010 1,078,371
2011 827,652
2012 667,776
2013 598,152
2014 679,344
2015 556,689
2016 589,678
2017 251,022
2018 390,892
2019 284,444
2020 228,937
Owens Corning optionally chooses to report our HCFC emissions within our Scope 1 for transparency.
2020 NOx, SOx, and VOC Emissions Normalized Intensity
WEIGHTED-AVERAGE INTENSITY IN METRIC TONS (PER UNIT OF PRODUCT PRODUCED) NOx 0.00052 SOx 0.00039 VOC 0.00057
Particulate Matter 10 Micrometers or Less in Diameter (PM10)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Absolute Metric Tons 2,757 2,898 3,038 3,070 3,204 2,975 2,946 3,207 2,864 2,742 2,573
2020 Owens Corning Sustainability Report | Appendices | 313 ENVIRONMENTAL DATA EMISSIONS DATA Appendix C
GHG Emissions Source
CALENDAR TYPE LOCATIONS SOURCE YEAR Natural Gas All locations 2010-2012 US EPA MRR: Final Rule (40 CFR 98) - Industrial Sector 2009 Natural Gas All locations 2013-2020 US EPA MRR: Final Rule (40 CFR 98) - Industrial Sector 2013 Distillate fuel oil No 1 All locations 2010-2012 US EPA MRR: Final Rule (40 CFR 98) - Industrial Sector 2009 Distillate fuel oil No 1 All locations 2013-2020 US EPA MRR: Final Rule (40 CFR 98) - Industrial Sector 2013 Distillate fuel oil No 2 All locations 2010-2012 US EPA MRR: Final Rule (40 CFR 98) - Industrial Sector 2009 Distillate fuel oil No 2 All locations 2013-2020 US EPA MRR: Final Rule (40 CFR 98) - Industrial Sector 2013 Distillate fuel oil No 6 All locations 2010-2012 US EPA MRR: Final Rule (40 CFR 98) - Industrial Sector 2009 Distillate fuel oil No 6 All locations 2013-2020 US EPA MRR: Final Rule (40 CFR 98) - Industrial Sector 2013 Propane All locations 2010-2012 US EPA MRR: Final Rule (40 CFR 98) - Industrial Sector 2009 Propane All locations 2013-2020 US EPA MRR: Final Rule (40 CFR 98) - Industrial Sector 2013 The Climate Registry: 2012 Gen. Reporting Protocol v1.1-USA Coke All locations 2010-2012 Industrial Coke All locations 2013 The Climate Registry: 2013 Gen. Reporting Protocol - USA Industrial The Climate Registry: 2014 Gen. Reporting Protocol v2.0-USA Coke All locations 2014 Industrial Coke All locations 2015-2016 The Climate Registry: 2015 Gen. Reporting Protocol - USA Industrial Coke All locations 2017 The Climate Registry: 2016 Gen. Reporting Protocol - USA Industrial Coke All locations 2018 The Climate Registry: 2018 Gen. Reporting Protocol - USA Industrial Coke All locations 2019 The Climate Registry: 2019 Gen. Reporting Protocol - USA Industrial Coke All locations 2020 The Climate Registry: 2020 Gen. Reporting Protocol - USA Industrial Diesel/Gas Oil All locations 2010-2012 US EPA MRR: Final Rule (40 CFR 98) - Industrial Sector 2009 Diesel/Gas Oil All locations 2013-2020 US EPA MRR: Final Rule (40 CFR 98) - Industrial Sector 2013 Motor Gas All locations 2010-2012 US EPA MRR: Final Rule (40 CFR 98) - Industrial Sector 2009 Motor Gas All locations 2013-2020 US EPA MRR: Final Rule (40 CFR 98) - Industrial Sector 2013 Liquified Petroleum Gas All locations 2010-2012 US EPA MRR: Final Rule (40 CFR 98) - Industrial Sector 2009 (LPG) Liquified Petroleum Gas All locations 2013-2020 US EPA MRR: Final Rule (40 CFR 98) - Industrial Sector 2013 (LPG) The Climate Registry: 2012 Gen. Reporting Protocol v1.1 - USA Liquified Natural Gas (LNG) All locations 2010-2012 Transport The Climate Registry: 2013 Gen. Reporting Protocol - USA Liquified Natural Gas (LNG) All locations 2013 Transport The Climate Registry: 2014 Gen. Reporting Protocol v2.0 - USA Liquified Natural Gas (LNG) All locations 2014 Transport The Climate Registry: 2015 Gen. Reporting Protocol - USA Liquified Natural Gas (LNG) All locations 2015-2016 Transport The Climate Registry: 2016 Gen. Reporting Protocol - USA Liquified Natural Gas (LNG) All locations 2017 Transport The Climate Registry: 2018 Gen. Reporting Protocol - USA Liquified Natural Gas (LNG) All locations 2018 Transport The Climate Registry: 2019 Gen. Reporting Protocol - USA Liquified Natural Gas (LNG) All locations 2019 Transport The Climate Registry: 2020 Gen. Reporting Protocol - USA Liquified Natural Gas (LNG) All locations 2020 Transport
2020 Owens Corning Sustainability Report | Appendices | 314 ENVIRONMENTAL DATA EMISSIONS DATA Appendix C
CALENDAR TYPE LOCATIONS SOURCE YEAR Kerosene All locations 2010-2012 US EPA MRR: Final Rule (40 CFR 98) - Industrial Sector 2009 Kerosene All locations 2013-2020 US EPA MRR: Final Rule (40 CFR 98) - Industrial Sector 2013 The Climate Registry: 2012 Gen. Reporting Protocol v1.1 - USA Jet Fuel All locations 2010-2012 Transport The Climate Registry: 2013 Gen. Reporting Protocol - USA Jet Fuel All locations 2013 Transport The Climate Registry: 2014 Gen. Reporting Protocol v2.0 - USA Jet Fuel All locations 2014 Transport The Climate Registry: 2015 Gen. Reporting Protocol - USA Jet Fuel All locations 2015-2016 Transport The Climate Registry: 2016 Gen. Reporting Protocol - USA Jet Fuel All locations 2017 Transport The Climate Registry: 2018 Gen. Reporting Protocol - USA Jet Fuel All locations 2018 Transport The Climate Registry: 2019 Gen. Reporting Protocol - USA Jet Fuel All locations 2019 Transport The Climate Registry: 2019 Gen. Reporting Protocol - USA Jet Fuel All locations 2020 Transport Limestone All locations All Years IPCC Mineral Industry Emissions Chapter 2 V3 publication 2006 Dolomite All locations All Years IPCC Mineral Industry Emissions Chapter 2 V3 publication 2006 Soda Ash All locations All Years IPCC Mineral Industry Emissions Chapter 2 V3 publication 2006 Steam Purchased All locations All Years US EPA MRR: Final Rule (40 CFR 98) - Industrial Sector 2013 District Heating All locations All Years US EPA MRR: Final Rule (40 CFR 98) - Industrial Sector 2013 Blowing Agents All locations 2010-2014 US EPA Class II Ozone-depleting Substances Blowing Agents All locations 2015-2016 IPCC Fourth Assessment Report: Climate Change 2007 Blowing Agents All locations 2017-2020 IPCC Fifth Assessment Report (AR): Climate Change 2008 Electricity - Market - Utility Select 2015-2020 Provided factors vary by energy supplier by site and year Emission Factors Locations Electricity - Market Residual Association of Issuing Bodies (AIB): European Residual Mix 2019 EU Countries 2020 Mix v1.0 International Energy Agency (IEA): CO Emissions from Fuel Electricity - National Sources ROW* 2020 2 Combustion 2020-Year 2018 Electricity - Regional US 2020 US EPA eGRID 2020 v2 (w/2018 data) Sources Electricity - Market Residual EU Countries 2019 Association of Issuing Bodies (AIB): European Residual Mixes 2018 Mix International Energy Agency (IEA): CO Emissions from Fuel Electricity - National Sources ROW* 2019 2 Combustion 2019-Year 2017 Electricity - Regional US 2019 US EPA eGRID 2018 (w/2016 data) Sources Electricity - Market Residual EU Countries 2018 Association of Issuing Bodies (AIB): European Residual Mixes 2018 Mix International Energy Agency (IEA): CO Emissions from Fuel Electricity - National Sources ROW* 2018 2 Combustion 2018-Year 2016 Electricity - Regional Sources US 2018 US EPA eGRID 2018 (w/2016 data)
2020 Owens Corning Sustainability Report | Appendices | 315 ENVIRONMENTAL DATA EMISSIONS DATA Appendix C
CALENDAR TYPE LOCATIONS SOURCE YEAR Electricity - Market Residual EU Countries 2016-2017 Association of Issuing Bodies (AIB): European Residual Mixes 2015 Mix International Energy Agency (IEA): CO Emissions from Fuel Electricity - National Sources ROW* 2017 2 Combustion 2017-Year 2015 Electricity - Regional US 2017 US EPA eGRID 2018 (w/2016 data) Sources International Energy Agency (IEA): CO Emissions from Fuel Electricity - National Sources ROW* 2016 2 Combustion 2016-Year 2014 Electricity - Regional US 2016 US EPA eGRID 2017 (w/2014 data) Sources International Energy Agency (IEA) CO Emissions from Fuel Electricity Non-US 2015 2 Combustion 2015-Year 2013 Electricity US 2015 US EPA eGRID 2015 (w/2012 data) International Energy Agency (IEA) CO Emissions from Fuel Electricity Non-US 2014 2 Combustion 2011- Year 2009 Electricity US 2014 US EPA eGRID 2014 v1.0 (w/2010 data) International Energy Agency (IEA) CO Emissions from Fuel Electricity Non-US 2013 2 Combustion 2011- Year 2009 Electricity US 2013 US EPA eGRID 2014 v1.0 (w/2010 data) International Energy Agency (IEA) CO Emissions from Fuel Electricity Non-US 2012 2 Combustion 2011- Year 2009 Electricity US 2012 US EPA eGRID 2012 v1.0 (w/2009 data) International Energy Agency (IEA) CO Emissions from Fuel Electricity Non-US 2011 2 Combustion 2011- Year 2009 Electricity US 2011 US EPA eGRID 2010 V1.0 (w/2007 Data) International Energy Agency (IEA) CO Emissions from Fuel Electricity Non-US 2010 2 Combustion 2011- Year 2009 Electricity US 2010 US EPA eGRID 2007 V1.1 (w/2005 data) Energy Star Portfolio Manager - U.S. Energy Use Intensity by Leased Facilities Warehouse 2019-2020 Property Type; publication 8/2018 Energy Star Portfolio Manager - U.S. Energy Use Intensity by Leased Facilities Office/Other 2019-2020 Property Type; publication 8/2018 Energy Star Portfolio Manager - Energy Star Score for Warehouses Leased Facilities Warehouse 2010-2018 in the United States; publication 7/13 Energy Star Portfolio Manager - Energy Use in Office Buildings; Leased Facilities Office/Other 2010-2018 publication 10/2012
*ROW includes EU countries when using the location-based approach. Residual mix data from AIB is used in market-based emissions calculations only.
2020 Owens Corning Sustainability Report | Appendices | 316 ENVIRONMENTAL DATA WATER DATA Appendix C
Water Consumption (Cubic Meters)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Withdrawal 12,372,377 12,226,751 11,092,576 11,386,560 11,015,225 10,699,651 11,117,421 11,255,488 11,238,573 11,081,243 9,930,169
Discharge 6,988,379 7,507,205 7,173,341 6,630,754 6,271,439 6,322,827 6,050,439 6,250,494 6,121,950 6,319,427 5,690,720
Consumption 5,383,997 4,719,546 3,919,235 4,755,805 4,743,786 4,376,823 5,066,982 5,004,994 5,116,623 4,761,816 4,239,449
Water Withdrawal by Source
15
12
9
(IN MILLIONS) 6 ABSOLUTE CUBIC METERS CUBIC ABSOLUTE 3
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Municipal Water 7,567,267 7,883,194 7,428,288 6,926,226 6,663,365 7,011,276 7,600,711 7,693,299 7,650,914 7,915,896 7,123,960
Well Water 3,928,905 3,548,417 3,190,997 3,739,955 3,690,970 3,019,845 2,908,810 2,929,118 2,989,856 2,534,398 2,107,673
Surface Water 683,952 610,065 282,378 540,108 473,906 415,491 371,160 394,299 367,753 397,720 420,713 Third-Party Supplier 150,624 177,054 160,490 162,195 174,118 184,422 182,684 179,600 182,998 181,658 233,394 Water Stormwater 41,629 8,020 30,423 9,232 12,866 68,617 54,056 59,172 47,052 51,571 44,428
Withdrawal (Other) 0 0 0 8,844 0 0 0 0 0 0 0
TOTAL 12,372,377 12,226,751 11,092,576 11,386,560 11,015,225 10,699,651 11,117,421 11,255,488 11,238,573 11,081,243 9,930,169
Water Withdrawal by Business (Cubic Meters)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Composites 7,210,777 7,430,514 6,307,546 6,653,848 6,413,486 5,988,869 5,848,557 5,936,821 5,882,491 6,103,639 5,240,861
Insulation 3,854,618 3,450,646 3,512,777 3,520,122 3,572,306 3,674,169 3,965,620 4,049,597 4,077,152 3,669,632 3,462,960
Roofing 1,196,666 1,253,221 1,169,635 1,121,491 934,131 954,772 1,195,944 1,168,342 1,159,886 1,194,618 1,116,441
Corporate 110,316 92,370 102,619 91,098 95,302 81,841 107,300 100,729 119,045 113,354 109,907
TOTAL 12,372,377 12,226,751 11,092,576 11,386,560 11,015,225 10,699,651 11,117,421 11,255,488 11,238,573 11,081,243 9,930,169
2020 Owens Corning Sustainability Report | Appendices | 317 ENVIRONMENTAL DATA WATER DATA Appendix C
Water Discharge by Destination
8
7
6
5
4 (IN MILLIONS) 3
ABSOLUTE CUBIC METERS CUBIC ABSOLUTE 2
1
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 POTW 5,120,892 5,329,312 5,307,364 4,343,602 4,460,476 4,721,411 4,725,859 4,860,637 4,574,228 4,822,245 4,355,415 Surface Water 1,070,987 1,648,268 1,270,627 1,866,199 1,593,322 1,549,976 1,273,544 1,353,208 1,504,890 1,470,674 1,311,137 Discharge (other) 727,887 484,899 468,303 284,613 111,183 50,502 46,022 35,677 38,072 20,951 20,238 Off-Site Shipment 68,613 44,726 127,048 136,340 106,458 939 5,014 971 4,759 5,556 3,930 TOTAL 6,988,379 7,507,205 7,173,341 6,630,754 6,271,439 6,322,827 6,050,439 6,250,494 6,121,950 6,319,427 5,690,720
Water Discharge by Location (Cubic Meters)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
North America 2,975,910 3,064,384 3,645,420 2,724,882 2,621,354 2,531,549 2,927,569 3,091,050 2,943,447 3,046,078 2,740,747
Outside North 4,012,469 4,442,821 3,527,921 3,905,873 3,650,085 3,791,278 3,122,870 3,159,444 3,178,503 3,273,349 2,949,972 America TOTAL 6,988,379 7,507,205 7,173,341 6,630,754 6,271,439 6,322,827 6,050,439 6,250,494 6,121,950 6,319,427 5,690,720
Estimated Water Savings by Business (2010-2020) Average Discharge Quality by Effluent Type
CUBIC METERS USD WATER QUALITY 2020 Composites 10,080,348 $9,051,924 Effluent - BOD 95.57 Insulation 5,873,606 $5,274,365 Effluent - COD 568.04 Roofing 2,243,371 $2,014,497 Effluent - TSS 151.49 TOTAL 18,197,325 $16,340,785 In average milligrams of effluent per liter of water.
2020 Owens Corning Sustainability Report | Appendices | 318 ENVIRONMENTAL DATA WATER DATA Appendix C
2020 WRI Extremely High/High Baseline Water Stress in Accordance with GRI and CDP
WITHDRAWAL BY SOURCE WITHDRAWAL (IN CUBIC METERS) Municipal Water 1,471,671 Well Water 679,083 Surface Water 44,784 Third-Party Supplier Water 69,120 Stormwater 0 Withdrawal (Other) 0 TOTAL 2,264,658
2020 WRI Extremely High/High Baseline Water Stress in Accordance with GRI and CDP
DISCHARGE BY DESTINATION DISCHARGE (IN CUBIC METERS) POTW 913,143 Surface Water 612,979 Off-Site Shipment 0 Discharge (other) 0 TOTAL 1,526,122
50% Intensity Reduction Water Withdrawal High Water Stress Sites
WATER WITHDRAWAL INTENSITY 2018 2019 2020 HIGHWATER STRESS SITES
Absolute Cubic Meters 3,812,627 3,933,077 3,516,019
Intensity percentage 100 99 90
Intensity Water Withdrawal (m3) - 0.00294 0.00290 0.00265 Normalized by revenue*
WATER WITHDRAWAL INTENSITY 2018 2019 2020 ALL REMAINING SITES
Absolute Cubic Meters 7,425,946 7,148,166 6,414,149
Intensity percentage 100 96 88
Intensity Water Withdrawal (m3) - 0.00128 0.00123 0.00112 Normalized by revenue*
*The figures for intensity shown in these two charts have been normalized by revenue.
2020 Owens Corning Sustainability Report | Appendices | 319 ENVIRONMENTAL DATA WASTE DATA Appendix C
Non-Hazardous Waste by Disposal Method (Metric Tons)
1000
800
600 (IN THOUSANDS)
400 ABSOLUTE TONS ABSOLUTE METRIC
200
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Waste-to-Landfill 310,685 277,422 320,408 321,091 302,631 299,445 324,535 383,054 370,514 322,189 277,978
Recycled 195,140 200,021 222,681 219,341 275,193 247,847 291,737 261,559 315,349 275,068 236,915 Internally (on-site) Recycled 201,057 223,506 211,163 190,830 192,460 186,061 194,051 204,855 197,575 200,719 189,529 Externally (off-site) Recycled Internally with 0 0 9,347 8,869 8,450 11,208 11,049 12,554 18,182 42,204 53,685 External Processing
Recultivation 8,338 9,961 10,187 9,958 14,892 10,932 16,748 17,688 7,841 13,836 29,948
Incinerated with 364 547 1,445 1,300 3,041 1,661 2,806 2,740 4,531 4,284 3,117 Energy Recovery Treated and 228 154 155 207 231 306 347 380 3 752 491 Recycled Incinerated without Energy 523 644 841 693 24 42 228 7 725 186 434 Recovery Controlled 0 0 0 0 0 0 0 1,200 549 200 171 Confinement* Cross-Plant 0 0 0 0 60 0 0 733 1,116 1,089 93 Recycle
Composting 8,422 8,733 8,480 8,440 7,130 8,738 7,619 1,916 72 73 24
Return to Supplier 464 759 47 141 22 12 1 4 14 2 3
TOTAL 725,220 721,747 784,753 760,870 804,134 766,250 849,123 886,691 916,470 860,602 792,387
*Owens Corning considers Controlled Confinement as Waste-to-Landfill for reporting purposes.
2020 Owens Corning Sustainability Report | Appendices | 320 ENVIRONMENTAL DATA WASTE DATA Appendix C
Non-Hazardous Waste by Business (Metric Tons)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Corporate 1,336 1,306 1,349 1,955 1,712 1,718 1,395 1,773 1,231 2,206 1,024 Composites 231,322 200,043 201,895 206,523 193,425 197,082 211,206 216,084 210,117 188,801 158,037 Insulation 419,564 442,037 499,311 476,433 534,155 501,235 562,747 573,438 615,507 580,774 541,400 Roofing 72,997 78,361 82,198 75,959 74,843 66,215 73,775 95,396 89,616 88,820 91,926 TOTAL 725,220 721,747 784,753 760,870 804,134 766,250 849,123 886,691 916,470 860,602 792,387
Hazardous Waste Intensity
2010 BASELINE 0.00061
2011 0.00050
2012 0.00073
2013 0.00096
2014 0.00195
2015 0.00058
2016 0.00065
2017 0.00054
2018 0.00057
2019 0.00081
2020 0.00054
Diverted vs. Not Diverted Waste (Metric Tons) Diverted Not Diverted
2010 414,681 314,635 729,317 BASELINE
2011 444,644 280,782 725,426
2012 465,683 324,185 789,867
2013 442,140 325,459 767,598
2014 510,521 305,956 816,477
2015 467,996 301,957 769,953
2016 526,136 327,698 853,834
2017 504,472 386,561 891,032
2018 546,425 374,339 920,765
2019 542,520 324,268 866,788
2020 515,328 281,094 796,422
2020 Owens Corning Sustainability Report | Appendices | 321 ENVIRONMENTAL DATA WASTE DATA Appendix C
Hazardous Waste by Disposal Method (Metric Tons)
15000
12000
9000
6000 ABSOLUTE TONS ABSOLUTE METRIC
3000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Waste-to-Landfill 3,198 2,576 2,689 2,973 2,807 1,701 2,103 1,255 1,875 1,308 2,138 Recycled 231 215 1,302 1,919 5,695 657 826 1,130 961 835 824 Internally (on-site) Incinerated with 247 364 223 688 262 69 215 28 39 2,916 350 Energy Recovery Recycled 181 371 638 430 3,063 479 714 807 652 508 292 Externally (off-site) Controlled 0 0 0 0 0 0 0 151 255 177 201 Confinement* Incinerated without Energy 230 140 247 702 494 769 832 892 422 208 172 Recovery Treated and 10 12 15 16 22 27 23 77 91 235 57 Recycled TOTAL 4,097 3,679 5,114 6,729 12,343 3,702 4,711 4,341 4,295 6,186 4,036
*Owens Corning considers Controlled Confinement as Waste-to-Landfill for reporting purposes.
In 2020, 61% of our total waste generated was recycled. This includes the categories Recycled Internally (on-site), Recycled Externally (off-site), Recycled Internally with External Processing, Treated and Recycled, and Cross-Plant Recycle for both hazardous and non-hazardous waste.
Hazardous Waste by Business (Metric Tons)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Corporate 5 13 24 21 14 19 16 33 24 20 16 Composites 2,240 2,446 2,235 3,578 5,317 1,639 1,867 1,945 1,769 1,136 906 Insulation 1,783 1,151 2,429 2,920 6,864 1,856 2,539 2,205 2,481 5,002 3,062 Roofing 69 70 427 210 148 188 290 158 21 29 52 TOTAL 4,097 3,679 5,114 6,729 12,343 3,702 4,711 4,341 4,295 6,186 4,036
2020 Owens Corning Sustainability Report | Appendices | 322 GENERAL DISCLOSURES LIST OF EMPLOYEE BENEFITS Appendix D
Owens Corning offers a wide range of competitive benefit offerings, allowing our employees to choose what best fits their individual needs. Benefits are made available to regular, full-time employees and some part-time employees working at least 24 hours per week. These benefits vary by country, business unit, and work location. Not all benefits are available at all locations. These benefits include:
Retirement savings plans On-site fitness facilities (available at some locations)
Medical coverage Adoption assistance
Maternity and/or paternity leave 401(k) financial education
Employee Assistance Program 401(k) match
Flexible work-schemes and work-sharing Paid and unpaid leaves of absences
Bonus/Incentive pay On-site recreation facilities (available at some locations)
Recall rights for laid-off employees Bereavement leave
Job security initiatives for redeployment, including Mentoring programs retraining, relocation, work-sharing, and outplacement Employee recognition programs services Matching gift program Insurance Workforce training, skills, and leadership development • Healthcare employee programs • Healthcare family Wellness credits and access to health improvement • Healthcare domestic partner programs
• Dental Life insurance
• Vision Business travel accident protection
• Short-term disability Employee stock purchase program
• Long-term disability Paid vacation and holidays
Education benefits Tuition reimbursement (other than career training)
• Employee Gym facilities (available at some locations)
• Family Preventive healthcare programs
Relocation assistance Paid maternity leave (for workers in certain countries)
Work/Life support program Retirement healthcare benefits (for retirees prior to 1/1/2006) Wellness/Fitness program
2020 Owens Corning Sustainability Report | Appendices | 323 GENERAL DISCLOSURES POLITICAL ADVOCACY Appendix D
Better Government Fund 2020 Recipients 2020 Senate and House Distributions
Party Republicans
Republicans 59% Democrats 41% MEMBER STATE BUDGET ACTUAL Gardner CO $5,000 $5,000 Graham SC $2,500 $2,500 Perdue GA $1,500 $1,500 Scott SC $2,500 $2,500 Balderson OH $2,500 $3,000 Gonzalez OH $3,000 $1,000 Joyce OH $2,000 $2,000 Latta OH $4,000 $4,000 Category Walorski IN $2,500 $2,500 Senate 24% House 37%
Committees 29% State Races 10% Democrats
MEMBER STATE BUDGET ACTUAL Shaheen NH $5,000 $5,000 Kaptur OH $5,000 $5,000 Ryan OH $1,000 $1,000 Tonko NY $2,500 $2,500 Veasey TX $3,000 $3,000 Welch VT $1,500 $1,500
2020 Party Committee and State Distributions
National Party Committees State and Local Expenditures
NAME PARTY BUDGET ACTUAL NAME PARTY BUDGET ACTUAL NRSC R $5,000 $5,000 Governor Mike R $0 $5,000 DSCC D $5,000 $5,000 DeWine NRCC R $5,000 $5,000 (Ohio) Lucas DCCC D $5,000 $5,000 County R $1,500 $1,500 Republican Party (Ohio)
2020 Owens Corning Sustainability Report | Appendices | 324 GENERAL DISCLOSURES KEY PARTNERSHIPS Appendix D
Our Partnerships and Collaborations with Organizations/Governing Bodies
POSITION IN PARTICIPATES PROVIDES SUBSTANTIVE VIEWS MEMBER GOVERNANCE IN PROJECTS/ FUNDS BEYOND ROUTINE RELATIONSHIP ONLY BODIES COMMITTEES MEMBERSHIP AS STRATEGIC
COMMUNITIES
Association of Corporate Citizenship ✔ ✔ ✔ Professionals
ConnecToledo ✔ ✔ ✔
Gary Sinise Foundation ✔ ✔ ✔
Habitat for Humanity India ✔ ✔ ✔
Habitat for Humanity International ✔ ✔ ✔
Habitat for Humanity Singapore ✔ ✔
King Baudouin Foundation ✔ ✔ ✔ ✔
Local Habitat for Humanity Affiliates ✔ ✔ ✔ ✔
Local Initiatives Support Corporation ✔ ✔ ✔
Marathon Classic (LPGA charitable ✔ ✔ ✔ tournament)
Mexican Red Cross ✔ ✔ ✔
Mumbai Mobile Creche (MMC) ✔ ✔ ✔ ✔
Regional Growth Partnership – Northwest ✔ ✔ ✔ Ohio (RGP)
Toledo Metropark Foundation ✔ ✔ ✔ ✔
Truckers Against Trafficking ✔
United Way International/Worldwide ✔ ✔ ✔
United Way Local Affiliates ✔ ✔
United Way Mumbai ✔ ✔ ✔
World Vision ✔ ✔ ✔
GOVERNMENT
DOE's Better Plants Program ✔ ✔
Energy Star ✔ ✔
EPA's Green Power Partnership ✔ ✔
National Institute for Standards and ✔ ✔ ✔ Technology
Voluntary Protection Programs Participants' ✔ ✔ Association (VPPPA)
NON-GOVERNMENT ORGANIZATIONS
Alliance to Save Energy ✔
American Center for Life Cycle Assessment ✔ ✔ ✔ (ACLCA)
American Society for Quality (ASQ) ✔
American Society of Safety Professionals (ASSP) ✔ ✔
ASTM International ✔ ✔ ✔ ✔
Building Performance Institute (BPI) ✔ ✔ ✔ ✔
2020 Owens Corning Sustainability Report | Appendices | 325 GENERAL DISCLOSURES KEY PARTNERSHIPS Appendix D
POSITION IN PARTICIPATES PROVIDES SUBSTANTIVE VIEWS MEMBER GOVERNANCE IN PROJECTS/ FUNDS BEYOND ROUTINE RELATIONSHIP ONLY BODIES COMMITTEES MEMBERSHIP AS STRATEGIC
NON-GOVERNMENT ORGANIZATIONS
Business Roundtable (BR) ✔ ✔ ✔
Campbell Institute ✔ ✔ ✔ ✔
Carbon Leadership Forum ✔ ✔ ✔ ✔
Council of Tall Buildings and Urban Habitats ✔ ✔
Factory Mutual (FM) ✔ ✔
Fire Safe North America ✔ ✔ ✔
Gartner Research & Advisory Company ✔
Glass Recycling Coalition ✔ ✔
Health Product Declaration Collaborative ✔ ✔ ✔ (HPDC)
India Green Building Council (IGBC) ✔ ✔
International Firestop Council (IFC) ✔ ✔ ✔ ✔ ✔
International Living Future Institute (ILFI) ✔ ✔ ✔ ✔
National Fire Protection Agency (NFPA) ✔ ✔ ✔
National Safety Council (NSC) ✔ ✔
Natural Resources Defense Council (NRDC) ✔
Ohio Business Roundtable (OBRT) ✔
Powering Ohio ✔ ✔ ✔
Procurement Leaders ✔
Residential Energy Services Network ✔ ✔ (RESNET)
Science-Based Targets Initiative (SBTI) ✔
Sustainability and Health Initiative for ✔ ✔ ✔ NetPositive Enterprise (SHINE)
U.S. Green Building Council (USGBC) ✔ ✔
Underwriters Laboratory (UL) ✔ ✔
United Nations Global Compact (UNGC) ✔ ✔ ✔ ✔
INDUSTRY ASSOCIATIONS
Air Barrier Association of America (ABAA) ✔ ✔ ✔
Air Duct Council (ADC) ✔
American Association of State Highway ✔ Transportation Officials
American Chemistry Council-Modern Building ✔ ✔ Coalition
American Composites Manufacturing ✔ ✔ ✔ Association (ACMA)
American Concrete Institute (ACI) ✔ ✔ ✔
American Institute of Architects (AIA) ✔ ✔ ✔
American Society of Civil Engineers (ASCE) ✔
2020 Owens Corning Sustainability Report | Appendices | 326 GENERAL DISCLOSURES KEY PARTNERSHIPS Appendix D
POSITION IN PARTICIPATES PROVIDES SUBSTANTIVE VIEWS MEMBER GOVERNANCE IN PROJECTS/ FUNDS BEYOND ROUTINE RELATIONSHIP ONLY BODIES COMMITTEES MEMBERSHIP AS STRATEGIC
INDUSTRY ASSOCIATIONS
American Society of Heating, Refrigerating and ✔ ✔ ✔ Air-Conditioning Engineers (ASHRAE)
Asphalt Institute (AI) ✔ ✔ ✔ ✔
Asphalt Interlayer Association (AIA) ✔
Asphalt Roofing Manufacturers Association ✔ ✔ ✔ (ARMA)
Association of Modified Asphalt Producers ✔ ✔ (AMAP)
Association of National Advertisers (ANA) ✔ ✔ ✔
ASTM International ✔ ✔ ✔ ✔
ASTM International D35 Committee on ✔ ✔ ✔ Geosynthetics
Center for the Integration of Composites into ✔ ✔ ✔ Infrastructure (CICI)
Concrete Preservation Institute (CPI) ✔
Construction Specifiers Institute (CSI) ✔ ✔ ✔ ✔ ✔
Eastern States Insulation Contractors ✔ ✔ ✔ Association (ESICA)
Electric Power Research Institute ✔
Energy and Environmental Building Alliance ✔ ✔ (EEBA)
Energy Efficiency Business Coalition (EEBC) ✔ ✔ ✔
Engineered Wood Technology Association ✔ (EWTA)
Extruded Polystyrene Foam Association ✔ ✔ ✔ ✔ ✔ (XPSA)
Fabricated Geomembrane Institute (FGI) ✔ ✔ ✔
Firestop Contractors International Association ✔ ✔ ✔ ✔ (FCIA)
Geosynthetic Research Institute (GRI) ✔ ✔ ✔
Geosynthetics Institute (GSI) ✔ ✔
Geosynthetics Material Association (GMA) ✔ ✔ ✔ ✔
Heating, Air-Conditioning & Refrigeration ✔ ✔ Distributors International (HARDI)
Home Innovation Research Labs ✔ ✔
HVACR Manufacturer's Association (HMA) ✔
Innovation Research Interchange (IRI) ✔
Institute for Advanced Composites ✔ ✔ Manufacturing Innovation (IACMI)
Insulation Contactors of America Association ✔ ✔ ✔ (ICAA)
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POSITION IN PARTICIPATES PROVIDES SUBSTANTIVE VIEWS MEMBER GOVERNANCE IN PROJECTS/ FUNDS BEYOND ROUTINE RELATIONSHIP ONLY BODIES COMMITTEES MEMBERSHIP AS STRATEGIC INDUSTRY ASSOCIATIONS
International Air-Conditioning, Heating, ✔ Refrigeration (AHR) International Association of Geosynthetic ✔ ✔ ✔ Installers (IAGI)
International Geosynthetics Society (IGS) ✔ ✔ ✔
International Institute for FRP's in Construction ✔ ✔ ✔ (IIFC)
International Institute of Ammonia ✔ Refrigeration (IIAR)
International Institute of Building Enclosure ✔ ✔ ✔ Consultants (IIBEC)
Manufacturers Alliance for Productivity & ✔ Innovation (MAPI)
National Association of Corrosion Engineers ✔ (NACE)
National Association of Home Builders (NAHB) ✔ ✔ ✔ ✔ ✔
National Association of Manufacturers (NAM) ✔ ✔ ✔ ✔ ✔
National Association of State Energy Officials ✔ (NASEO)
National Insulation Association (NIA) ✔ ✔ ✔
National Renewable Energy Laboratories ✔
National Road Research Alliance (NRRA) ✔
National Roofing Contractors Association ✔ (NRCA)
North America Insulation Manufacturers ✔ ✔ ✔ ✔ ✔ Association (NAIMA)
North American Modern Building Alliance ✔ (NAMBA)
North American Passive House Network ✔ ✔ (NAPHN)
North American Wholesale Lumber ✔ Association (NAWLA)
Northwest Energy Efficiency Alliance (NEEA) ✔ ✔
Ohio Manufacturers Association (OMA) ✔
Passive House California (PHCA) ✔ ✔
Passive House Institute US (PHIUS) ✔ ✔
Polyisocyanurate Insulation Manufacturers ✔ ✔ ✔ Association (PIMA)
Precast/Prestressed Concrete Institute (PCI) ✔ ✔ ✔
Sheet Metal and Air Conditioning Contractors ✔ ✔ National Association (SMACNA)
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POSITION IN PARTICIPATES PROVIDES SUBSTANTIVE VIEWS MEMBER GOVERNANCE IN PROJECTS/ FUNDS BEYOND ROUTINE RELATIONSHIP ONLY BODIES COMMITTEES MEMBERSHIP AS STRATEGIC INDUSTRY ASSOCIATIONS
Single Ply Roofing Industry (SPRI) ✔ ✔
Southwest Energy Efficiency Project (SWEEP) ✔ ✔ ✔
Southwest Insulation Contractors Association ✔ ✔ ✔ (SWICA)
Spiral Duct Manufacturers Association (SPIDA) ✔
Tilt-Up Concrete Association (TCA) ✔ ✔
Truckload Carriers Association (TCA) ✔ ✔
Water Environment Federation’s Technical ✔ Exhibition and Conference (WEFTEC)
Western Insulation Contractors Association ✔ (WICA)
Women in HVACR ✔
EDUCATION
Bowling Green State University ✔ ✔ ✔
Ohio State University – Fisher School of ✔ ✔ Business
University of Michigan – Ross ✔ ✔ School of Business
CHINA
China Academy of Building Research ✔
China Building Waterproof Association, Single ✔ ✔ Ply Roofing Branch (SPR)
China Building Energy Efficiency Association ✔
China Building Material Federation ✔ ✔
China Federation of Logistics & Purchasing ✔ Cold Chain Logistics
China Metal Building Association ✔
China Metallurgical Study Institute ✔
China Ministry of Construction, Standardization ✔ Department
China Plastics Processing Industry Association ✔ (CPPIA)
China Thermal Insulation Material Academy ✔
China XPS Committee ✔
Fire Protection Association, 7th Branch ✔
2020 Owens Corning Sustainability Report | Appendices | 329 GENERAL DISCLOSURES KEY PARTNERSHIPS Appendix D
POSITION IN PARTICIPATES PROVIDES SUBSTANTIVE VIEWS MEMBER GOVERNANCE IN PROJECTS/ FUNDS BEYOND ROUTINE RELATIONSHIP ONLY BODIES COMMITTEES MEMBERSHIP AS STRATEGIC CHINA
Jiangsu Building Energy Efficiency Association ✔
Nanjing Fiberglas Research & Design Institute ✔ ✔ Co., Ltd.
Shanghai Building Material Industry ✔ Association
Si Chuan Fire Research Institute (SCFRI) ✔
EUROPE
Estonia - ESTISOL, EETL, EKVU, EIEL, EKT ✔ ✔
EURIMA (European Insulation Manufacturers ✔ ✔ ✔ ✔ Association)
Bureau de la Normalisation del Prefabricado ✔ ✔ ✔ ✔ de Hormigón
EURIMA, European Insulation Manufacturers ✔ ✔ ✔ Association, Health & Safety Committee
European Committee for Standardization ✔ ✔ ✔ ✔
Federation Institute du Beton ✔ ✔
Finland - Building Information Foundation RTS ✔
Finland - Confederation of Finnish ✔ ✔ ✔ Construction Industries RT
Finland - Finnisol ✔ ✔ ✔
Finland - RTT Association of Insulation ✔ ✔ ✔ Producers
Fire Safe Europe ✔ ✔ ✔ ✔ ✔
France - Association Française de Génie Civil ✔
France - Association Française de ✔ ✔ Normalisation
French Association of Civil Engineers ✔ ✔ ✔
Germany - Fachvereinigung Faserbeton e.V. ✔
Germany - GGM and others ✔
Institut Bauwen und Umwelt ✔ ✔
International Federation for Structural ✔ ✔ Concrete
International Standard Organisation ✔ ✔ ✔
Italy - Associazione Italiana Sottofondi, Massetti e Pavimentazioni e Rivestimenti ✔ Continui
Latvia - LATIZOL ✔ ✔
Lithuania - Mineral Wool Producers Association, Lithuanian Technical Insulation ✔ ✔ ✔ ✔ Contractors Association, Lithuanian Builders Association, Baltic Investors Forum
2020 Owens Corning Sustainability Report | Appendices | 330 GENERAL DISCLOSURES KEY PARTNERSHIPS Appendix D
POSITION IN PARTICIPATES PROVIDES SUBSTANTIVE VIEWS MEMBER GOVERNANCE IN PROJECTS/ FUNDS BEYOND ROUTINE RELATIONSHIP ONLY BODIES COMMITTEES MEMBERSHIP AS STRATEGIC EUROPE
Natureplus ✔ ✔
Pan European Product Certification Scheme ✔ ✔ ✔ ✔
Russia - Rosizol, ANIFAS ✔ ✔ ✔ ✔ ✔
Spain - Asociación Nacional de la Industria ✔ ✔
Spain - Spanish Association of Structural ✔ Engineering
Sweden - Swedisol, SIS Swedish Standards ✔ ✔ ✔ Institute
The International Glassfibre Reinforced ✔ ✔ ✔ Concrete Association
The International Union of Laboratories and Experts in Construction Materials, Systems ✔ ✔ and Structures
Union Belge Agrément Technique de la ✔ ✔ ✔ ✔ Construction
Vereniging Glas Industrie ✔ ✔ ✔
BRAZIL / LATIN AMERICA
Bradesco Pension Fund Administration ✔ ✔
Composites Materials Latin American ✔ ✔ ✔ Association
Glass Industry Federal Union ✔
Human Resources Association ✔ ✔
National Glass Industry Association ✔ ✔
State of São Paulo Industry Association ✔ ✔
CANADA
Architectural Institute of British Columbia ✔ ✔ ✔
British Columbia Building Envelope Council ✔ ✔ ✔
Canadian Association of Consulting Energy ✔ ✔ ✔ Advisors
Canadian Green Building Council ✔ ✔ ✔
Canadian Home Builders Association ✔ ✔ ✔ ✔
Canadian Plastics Industry Association ✔ ✔ ✔ ✔
Canadian Roofing Contractors Association ✔ ✔ ✔
Construction Specifications Canada ✔ ✔ ✔
Ecohabitation ✔ ✔ ✔
EnerQuality ✔ ✔ ✔ ✔
Metal Cladding Contractors Association ✔ ✔ ✔ (Quebec)
National Resource Council Canada (NRC) ✔ ✔ ✔
National Resources Canada ✔ ✔ ✔
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POSITION IN PARTICIPATES PROVIDES SUBSTANTIVE VIEWS MEMBER GOVERNANCE IN PROJECTS/ FUNDS BEYOND ROUTINE RELATIONSHIP ONLY BODIES COMMITTEES MEMBERSHIP AS STRATEGIC CANADA
North American Insulation Manufacturers ✔ ✔ ✔ ✔ ✔ Association
Ontario Building Envelope Council ✔ ✔ ✔
Ontario Home Builders Association ✔ ✔ ✔
Passive House Institute Canada ✔ ✔ ✔
Quebec Association of Metal Cladding ✔ ✔ ✔ Contractors
Quebec Building Envelope Council ✔ ✔ ✔ ✔
Quebec Construction Association ✔ ✔ ✔
Quebec Home Builders Association ✔ ✔ ✔
Quebec Insulation Association ✔ ✔ ✔
Royal Architecture Institute of Canada ✔ ✔ ✔
Underwriters Laboratories of Canada ✔ ✔ ✔ ✔
Certifications
ENERGY STAR® Toledo, Ohio, U.S. (World Headquarters) Wildlife Habitat Council Toledo, Ohio, U.S. (World Headquarters); Granville, Ohio, U.S. ISO 50001 Chambéry, France; Klášterec, Czech Republic; Tessenderlo, Belgium
2020 Owens Corning Sustainability Report | Appendices | 332 UN GLOBAL COMPACT COMMUNICATION ON PROGRESS Appendix E
OWENS CORNING WORLD HEADQUARTERS ONE OWENS CORNING PARKWAY TOLEDO, OHIO 43659 419.248.8000
April 01, 2021
H.E. António Guterres Secretary-General United Nations New York, NY 10017
Dear Mr. Secretary General:
It has been 10 years since Owens Corning joined the United Nations Global Compact, and we remain deeply committed to the 10 principles that make up this historic initiative. The attached report demonstrates that commitment, as well as our holistic approach to sustainability. In addition to minimizing the impact of our products and operations, we have also established broad objectives aimed at achieving economic growth while making futher progress in social equity and environmental stewardship. We believe our approach is in the best interest of our company and our stakeholders, and it creates long-term value for our shareholders. This work resonates deeply with the sense of purpose shared by our employees around the world: Our people and our products make the world a better place.
To make our shared vision a reality, we are continuously striving to advance the same principles articulated in the Global Compact, which are incorporated into our sustainability strategy and drive our company values, and which in turn guide the way we interact with our customers, suppliers, investors, and colleagues, as well as the communities in which we live and work. Through the lens of that strategy, Owens Corning has reviewed the United Nations Sustainable Development Goals and identified several that are material to our business, and on which we believe we have direct impact through our core business competencies. We also identified those where we can have either direct or indirect influence. For those aligned with our material issues, active programs and reporting are already underway. This work is included in our report.
Many of Owens Corning’s sustainability efforts have been recognized by organizations that evaluate our progress against high standards and industry benchmarks. For example, for the eighth consecutive year, S&P Global rated Owens Corning one of the world’s most sustainable companies — within 1 percent of the top score globally.
In 2020, Owens Corning was also named to the Dow Jones Sustainability World Index for the eleventh straight year, and we were ranked as the Building Product Industry leader for the eighth consecutive year. For the fourth year in a row, Owens Corning led the building products sector in all three DJSI dimensions: economic, environmental, and social. Additionally, Owens Corning earned placement on the Dow Jones Sustainability North America Index for a third year. The North America Index tracks the sustainability leaders in the largest U.S. and Canadian companies in the S&P Global Broad Market Index.
In addition to recognition from Dow Jones RobecoSAM, Owens Corning was also recognized in 2020 for its corporate leadership, including the fact that we were named Best Corporate Citizen for the second consecutive year, and we once again received recognition from the Ethisphere Institute as one of the world’s most ethical companies. The company also earned a position on CDP’s Climate A List and CDP’s Water Security A List.
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The progress we have made on our sustainability journey serves as a baseline for our next steps. We are currently working on an ambitious slate of 2030 sustainability goals, which will require us to innovate and collaborate among all stakeholders as we work to make a difference in the world. In one key example, we have set a target to reduce greenhouse gas emissions to the levels needed to limit global warming to 1.5° Celsius — a target that has been approved by the Science Based Targets Initiative. In addition, we are implementing contextual water use targets based on the WRI Aqueduct Indicators that address the risks to water supply in high water-stress areas.
Of course, the COVID-19 pandemic has shaped everything about this past year, and it required us to react quickly to ensure that we could work toward our sustainability goals in ways that safeguard the health and safety of our employees. Around the world, our people demonstrated incredible resilience, with our senior executives and COVID-19 Management Team taking active measures to help us maintain operations — including progress on our sustainability goals — to the best of our abilities.
The full story of our 2030 sustainability goals — and our ongoing efforts to achieve them — can be found in the attached 2020 Sustainability Report. In addition, the report includes details about our progress and current efforts in areas related to the 10 principles of the Global Compact. An index highlighting the relevant sections in the report is also included.
We are proud of everything we have achieved in pursuit of our sustainability goals, even as we acknowledge that every accomplishment represents an opportunity upon which to build. It is in this spirit that I, on behalf of everyone at Owens Corning, reaffirm our commitment to the Global Compact and our dedication to conducting business responsibly throughout the world.
Brian Chambers Chairman and Chief Executive Officer Owens Corning
2020 Owens Corning Sustainability Report | Appendices | 334 UN GLOBAL COMPACT COMMUNICATION ON PROGRESS INDEX Appendix E
Principle 1 Businesses should support and respect the protection of internationally proclaimed human rights.
2020 REPORT SECTION PAGE NUMBER COMMENTS
About Owens Corning 9 Corporate Equality Index
Human Rights & Ethics 273 Human Rights Policy
Compliance 78 Code of Conduct
Principle 2 Businesses should ensure that they are not complicit in human rights abuses.
2020 REPORT SECTION PAGE NUMBER COMMENTS
About Owens Corning 9 Corporate Equality Index
Human Rights & Ethics 273 Human Rights Policy
Compliance 78 Code of Conduct
Principle 3 Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.
2020 REPORT SECTION PAGE NUMBER COMMENTS
Employee Experience 256 Labor Relations
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Principle 4 Businesses should support the elimination of all forms of forced and compulsory labor.
2020 REPORT SECTION PAGE NUMBER COMMENTS
Human Rights & Ethics 272-273 Forced Labor/Child Labor
Human Rights & Ethics 279 Human Rights & Ethics Initiatives
Principle 5 Businesses should support the effective abolition of child labor.
2020 REPORT SECTION PAGE NUMBER COMMENTS
Human Rights & Ethics 272-273 Forced Labor/Child Labor
Human Rights & Ethics 279 Human Rights & Ethics Initiatives
Principle 6 Businesses should support the elimination of discrimination in respect of employment and occupation.
2020 REPORT SECTION PAGE NUMBER COMMENTS
Inclusion & Diversity 259-269
Employee Experience 254-257 Summary of Compensation & Benefits
Compliance 78 Code of Conduct
Human Rights & Ethics 275 Equal Opportunity and Non-Discrimination
Principle 7 Businesses should support a precautionary approach to environmental challenges.
2020 REPORT SECTION PAGE NUMBER COMMENTS
About the Report 287 Precautionary Approach
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Principle 8 Businesses should undertake initiatives to promote greater environmental responsibility.
2020 REPORT SECTION PAGE NUMBER COMMENTS
Product Innovation & Stewardship 101-114
Product Innovation & Stewardship 109 Material and Environmental Transparency
Circular Economy 92 2030 Goals for The Circular Economy
Sustainable Growth 119 Sustainable Growth Initiatives
Combating Climate Change 154 Power Purchase Agreements
Combating Climate Change 153 Partnering to Address Climate Change
Compliance 79 Environmental Compliance
Principle 9 Businesses should encourage the development and diffusion of environmentally friendly technologies.
2020 REPORT SECTION PAGE NUMBER COMMENTS
Product Innovation & Stewardship 112-113 Products That Make a Material Difference
Energy Efficiency & Sourcing Renewable 146 Energy Conservation and Savings Energy Energy Efficiency & Sourcing Renewable 145 Renewable Energy Initiatives in 2020 Energy
Sustainable Growth 122 Energy-Saving Products
Combating Climate Change 152-153 Strategy and Approach
Principle 10 Businesses should work against corruption in all its forms, including extortion and bribery.
2020 REPORT SECTION PAGE NUMBER COMMENTS
Human Rights & Ethics 271-272 Strategy and Approach
Human Rights & Ethics 278 Anti-corruption
United Nations Sustainable Development Goals discussed in our report in the Executive Summary section on pages XX-XX.
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ADVANCED LEVEL COMMUNICATION ON PAGE THEME CHAPTER PROGRESS CRITERIA NUMBER Criterion 1: The COP describes mainstreaming into TCFD Climate Risk 343 Implementing the Ten corporate functions and business units Principles into Strategies & Supply Chain 127 Operations Criterion 2: The COP describes value chain implementation Human Rights & Ethics 271-283 Criterion 3: The COP describes robust commitments, Supply Chain 127, 135 strategies or policies in the area of human rights Human Rights & Ethics 271-283 Robust Human Rights Criterion 4: The COP describes effective management Human Rights & Ethics 271-283 Management Policies & systems to integrate the human rights principle Procedures Criterion 5: The COP describes effective monitoring and evaluation mechanisms of human rights Human Rights & Ethics 271-283 integration Criterion 6: The COP describes robust commitments, Employee Experience 256 strategies or policies in the area of labour Human Rights & Ethics 273 Supply Chain 132 Criterion 7: The COP describes effective management Employee Experience 256 Robust Labour Management systems to integrate the labour principles Human Rights & Ethics 273 Policies & Procedures Supply Chain 132 Criterion 8: The COP describes effective monitoring Living Safely 215 and evaluation mechanisms of labour principles integration Employee Experience 256 Human Rights & Ethics 273 Our Aspirations 13 15-18, Summary & Highlights 25, 28-31 Criterion 9: The COP describes robust commitments, strategies or policies in the area of environmental Materiality 40-44 stewardship Compliance 77 Supply Chain 127 Combating Climate Change 152-153 Robust Environmental Board Leadership 57 Management Policies & Procedures Criterion 10: The COP describes effective Compliance 77, 79, 81 management systems to integrate the environmental Product Innovation & 101-114 principles Stewardship Human Rights & Ethics 276-277 Board Leadership 57 Criterion 11: The COP describes effective monitoring Compliance 77, 79 and evaluation mechanisms for environmental 127-128, stewardship Supply Chain 132-135
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ADVANCED LEVEL COMMUNICATION ON PAGE THEME CHAPTER PROGRESS CRITERIA NUMBER Criterion 12: The COP describes robust Supply Chain 127 commitments, strategies or policies in the area of anti-corruption Human Rights & Ethics 278 127-128, Criterion 13: The COP describes effective Supply Chain Robust Anti-Corruption 132-135 management systems to integrate the anti- Management Policies & corruption principle Procedures Human Rights & Ethics 278 127-128, Criterion 14: The COP describes effective monitoring Supply Chain 132-135 and evaluation mechanisms for the integration of anticorruption Human Rights & Ethics 278
UN Sustainable Development Goals 45-53 Criterion 15: The COP describes core business Alignment contributions to UN goals and issues UN Global Compact Communication on 333-338 Progress Criterion 16: The COP describes strategic social Community Engagement 199-212 investments and philanthropy UN Sustainable Development Goals 45-53 Taking Action in Support Alignment of Broader UN Goals and Criterion 17: The COP describes advocacy and public Issues policy engagement UN Global Compact Communication on 333-338 Progress
Combating Climate Change 152-153
UN Global Compact Criterion 18: The COP describes partnerships and Communication on 333-338 collective action Progress Appendix D General Disclosures - Key 325-332 Partnerships Message from Our CEO and 4-5 CSO
Criterion 19: The COP describes CEO commitment Board Leadership 57 and leadership UN Global Compact Communication on 333-334 Progress Corporate Sustainability Governance and Leadership Board Leadership 54, 57 Criterion 20: The COP describes board adoption and oversight 271, 276- Human Rights & Ethics 278
Materiality 40-44 Criterion 21: The COP describes stakeholder engagement Human Rights & Ethics 276-277
2020 Owens Corning Sustainability Report | Appendices | 339 ASSURANCE STATEMENT Appendix F
Independent Assurance Statement
To Owens Corning’s Stakeholders Owens Corning’s 2020 Sustainability Report (Report) has been prepared by the management of Owens Corning who are solely responsible for its content. SCS Global Services (SCS) conducted a moderate level of assurance on Owens Corning’s reporting in adherence to AccountAbility’s Principles of Inclusivity, Materiality, Responsiveness, and Impact. In addition, SCS conducted assurance on key performance criteria provided in the Report.
Scope
The scope of Owens Corning’s 2020 Sustainability Report and this assurance engagement includes all of Owens Corning’s sites and activities under their operational control globally. A Type 2 assurance engagement was performed on Owens Corning’s performance against AccountAbility’s AA1000 Principles (2018) to a moderate level. Energy use, Scope 1 and 2 greenhouse gas emissions, Scope 3 greenhouse gas emission categories 1, 3, 6, 7 and 12, employee engagement (% responding and % actively engaged), and types and amounts of philanthropic contributions have all been assured to a high level. All other data within the Report, including but not limited to, performance data and progress towards 2020 and 2030 goals shall be considered assured to at least a moderate level for 2020.
Standards
SCS performed the assurance of the Owens Corning’s 2020 Sustainability Report against the AA1000 Assurance Standard (AA1000AS, 2020). In addition, SCS evaluated the Report’s adherence to Global Reporting Initiative’s (GRI) Standards. Specific performance data were assessed utilizing internationally recognized standards which include, but are not limited to the following: . World Resources Institute’s Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition), March 2004 along with Scope 2 and Scope 3 Guidance . ISO 14064-3:2006 Specification with guidance for the validation and verification of GHG assertions.
Assurance Team and Methodology Our team was comprised of Tina Sentner, Dr. Gerard Mansell, Vincent Katharua, Keith Killpack, Nicole Munoz and Neil Mendenhall with qualifications available online and upon request.
SCS’ Assurance Team undertook the following activities in order to render our opinion: . Reviewed management systems and governance documents developed as a part of Owens Corning’s sustainability management system, which includes their identification of material topics, stakeholder engagement, mechanisms for stakeholder responsiveness and evaluation of impact. . Reviewed and analyzed material performance data collected at the corporate and site-level to identify any material misstatements or calculation errors. . Conducted interviews with management and data requests for information from a sample of Owens Corning’s sites; and
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. Reviewed the Sustainability Report for material misstatements and its alignment to the requirements of the Global Reporting Initiative (GRI) Standards.
Limitations Excluded from the scope of our work is any verification of information discussed in “Speaking of Sustainability” interviews with staff within Owens Corning’s Sustainability Report. This moderate assurance engagement relies on a risk-based sample of sustainability data and the associated limitations that this process entails. This independent statement should not be relied upon to detect all errors,
omissions or misstatements that may exist within the Report..
Conclusions Based on the methodology and activities performed within the scope of this assessment, nothing has come to our attention that is materially misstated. Specified key performance indicators have been found to be accurate based on our assurance procedures which are in line with AA1000 AS (2020) and AccountAbility’s Principles (2018). This conclusion reduces the risk of error but does not reduce the risk to zero. A summary of our specific conclusions and evidence follows:
Inclusivity: In 2020 Owens Corning continues to effectively identify and include key stakeholders in the development of their material aspects and defining sustainability priorities. They have effectively implemented strategies to be inclusive of both internal and external stakeholders based on guidance from AA1000 SES, 2015.
Materiality: Assurance of materiality was largely based on the methods described in Owens Corning 2019 Materiality Whitepaper that SCS independently assured in 2019. Updates for 2020 include assurance of supporting documentation and secondary sources of information. Owens Corning continues to adapt their assessment of material topics on a regional basis and obtain current regional and industry trends though the analysis of information collected through their partnership with Datamaran. 2030 goals are in line with Owens Corning’s material issues and the AA1000 Principle of Materiality.
Responsiveness: SCS reviewed mechanisms in place for capturing information from stakeholders and responding to their feedback and concerns. These mechanisms include the annual publication of this Sustainability Report along with continual responsiveness to internal and external stakeholders through in-person, telephonic, and electronic means. Stakeholder assistance and responsiveness to grievances in violation of their Business Code of Conduct has been confirmed. Competent staff or third parties have been assigned to respond to stakeholder needs and elevate serious matters to management.
Impact: Evidence shows that Owens Corning has effectively evaluated their climate impact and set their 2030 GHG emissions goals using methodology based on the Science Based Targets Initiative. Water use targets were set in 2019 and were based on SCS-assured baseline water use data. Social impacts are monitored through continual engagement and regular outreach to internal and external stakeholders.
Review of Owens Corning’s management systems, governance documents, data collection methods, and KPI calculations have found no material errors. Owens Corning’s reporting of 2020 Scope 3 greenhouse gas emissions, water use, waste, air pollution, VOCs, social performance indicators, and 2020 progress towards 2020 and 2030 sustainability goals were assured at a moderate-level and no material errors or misstatements were identified in the final draft chapters of the report. Owens Corning’s 2020 reported
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Scope 1, 2, and scope 3 categories 1, 3, 6, 7 and 12 GHG emissions, energy use, employee engagement (% responding and % actively engaged), and types and amounts of philanthropic contributions was assured at a high-level and this data can be considered reliable. In addition, Owens Corning’s Report was found to conform with GRI Standards.
Observations & Recommendations SCS found that HCFC emissions were included in 2020 Scope 1 emissions. These emissions are not covered by the Kyoto Protocol GHG emissions and the WRI Greenhouse Gas Protocol states that these emissions should be reported as “Optional Emissions” outside of Scope 1 reporting. It is therefore noted that the Scope 1 emissions reported herein include current and historical HCFC emissions back to the base year instead of being reported separately as “Optional Emissions” under WRI requirements. No material findings remained at the conclusion of the 2020-2021 assurance engagement.
Independence SCS Global Services is an independent and internationally accredited conformance assessment body. All members of the assurance team were internally reviewed to ensure they were free from conflicts of interest. SCS is not financially dependent on Owens Corning in any way beyond the pre-payment of our work under the scope of this engagement and a limited number of independent assessments and product certifications it performs for Owens Corning annually.
Declaration
______Neil Mendenhall Associate Certified Sustainability Assurance Practitioner (ACSAP) SCS Global Services Emeryville, California – March 2021
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Sustainability is central to Owens safety metrics and activities, and climate-related issues throughout the Corning’s operations, from the our long-term sustainability goals. In company. In addition to the business- products we make to our actions within addition, major acquisitions, capital level reviews, Owens Corning’s the communities where we operate. projects, and innovation are all sustainability and reporting analytics Our 2030 sustainability goals include reviewed by the board. In each of these team monitors the company’s climate- reducing greenhouse gas emissions, areas, the impact on our CSR strategy related issues from a data perspective. increasing the energy efficiency of is considered through our risk register Environmental metrics and data are our operations, and sourcing 100% review and product stewardship review monitored using Schneider Electric’s renewable electricity. processes. Resource Advisor system. Data is input into the system where it can be Climate change risks and opportunities The audit committee of the board is reviewed and analyzed. are fundamentally driven by three responsible for all risk management factors: regulations, physical climate policies, including climate-related Furthermore, climate-related issues factors, and other climate-related risks. These risk management policies are addressed through our risk variations. We monitor the physical include current regulations, potential management process and included risks of climate change, as well as regulation changes, acute and chronic in our risk registers, which are transition risks such as changing physical risks, and other climate-related developed by the business and legal environmental regulations, new issues. At audit committee meetings, departments and from the plant level technologies, and changes in the climate-related issues are scheduled up. Our risk committee is responsible marketplace, all of which may impact as agenda items at least annually, and for overseeing and monitoring our risk our operations or our planning. additionally as needed. assessment and mitigation actions. In 2020, safety and environmental In addition, we are committed to Our board and committees also have concerns, including climate-related managing the market and reputational risk oversight related to impacts from concerns, were added to the core risk risks that arise from the impacts of environment, health, and safety (EHS), register, which increases the extent climate change. This informs our including climate change and the to which sustainability issues are goals and our approach to reducing mitigation plans the company has in embedded into the enterprise-wide risk greenhouse gas emissions, as both our place. As an example of the board’s process. The risk committee reports products and our processes can help involvement in our sustainability and directly to the chief financial officer and us combat climate change. climate-related processes, in 2019, the general counsel. board endorsed and provided guidance GOVERNANCE in the development and setting of all our 2030 Sustainability Goals. STRATEGY Our environmental and social Identification of Climate-Related sustainability journey is fundamental to Management Assessment and Risks and Opportunities Owens Corning, and everyone affiliated Management of Climate-Related with the company has a role to play. Risks and Opportunities Risk horizons are defined as follows: That includes our board of directors Owens Corning’s chief sustainability ■ Short-term (1-3 years) and our top-level management. officer (CSO) and the sustainability ■ Medium-term (3-6 years) Board Oversight of Climate Related team are responsible for monitoring Risks and Opportunities and reporting our performance. The ■ Long-term (over 6 years) CSO presents our progress toward our Owens Corning has recognized Owens Corning’s sustainability 2020 and 2030 sustainability goals to numerous risks specifically related to progress is monitored by the CEO and the board of directors annually. climate change, and we have strategies the complete board of directors. The in place to mitigate them. These risks board was part of the corporate social In addition, the CSO presents quarterly include the following: responsibility (CSR) strategies that set to the operating committee on our them; they oversee our performance sustainability progress, including Risk: Increased Severity and as we work toward our goals, and they issues, risks, and opportunities. This Frequency of Extreme Weather Events approve annual financial incentives committee consists of Owens Corning for high-level employees, including business leaders and vice presidents. Many of Owens Corning’s business those tied to sustainability goals. activities involve substantial Our enterprise environmental and The board reviews our sustainability investments in manufacturing facilities operations sustainability director program at least annually, and they and many products are produced at reports to the CSO and works directly receive periodic updates on relevant a limited number of locations. These with the environmental leaders of environmental impacts, health and facilities could be materially damaged each of our businesses to monitor all by natural disasters such as floods,
2020 Owens Corning Sustainability Report | Appendices | 343 TCFD CLIMATE RISK Appendix G tornadoes, hurricanes, earthquakes, strategic location evaluation, as well as Expansions to the EU ETS, or similar or by sabotage. We have experienced processes such as strategic sourcing trading schemes being set up in other flooding at plants in New Jersey, Texas, and supply chain planning. nations, could impact Owens Corning and India. Events like these could by reducing our carbon allowance, Risk: Increased Cost of Raw Materials incur uninsured losses and liabilities, which could in turn increase our as well as disruptions in production Owens Corning is at short-term risk operating costs in those countries. capacity. In addition, natural disasters of significant impact to our reported Facilities under the EU ETS continue pose a significant threat to the safety financial results due to volatile energy to improve their energy and GHG of our employees, contractors, and costs or supply disruptions. We operate efficiency. However, allowances are customers. in environments where regulations decreasing year on year by a flat rate are in place to affect the flow of We engage with our third-party loss without consideration of production energy supply, which can impact our prevention engineering firm to equip increase, which explains the emissions performance (e.g., China). To mitigate our locations to have minimal losses being higher than allowances. In most this risk, we have a commodities risk and best survive weather-related cases, the difference is compensated management committee that oversees incidents. As climate change occurs, by surplus allowances from previous financial risk related to our energy these risks could become more likely, years. supply pricing. We deploy location- making insuring these risks less specific energy sourcing strategies With the further reductions in feasible. and have an ongoing review of energy allowances through Phase 4 of the For example, one Owens Corning markets. We monitor and assess European Union ETS, for example, we facility experienced a catastrophic energy storage and distributed energy forecast that our allowances will be flood resulting from a named storm generation technology advancements. depleted after 2020, which will require approximately 10 years ago. The As part of a larger total productive us to begin purchasing credits for the impact of this storm meant the maintenance initiative, we ensure first time. Phase 4 is imminent and company had to rebuild much of the energy transmission reliability for applies to the period 2021-2030. Our site’s systems to bring it back online. key manufacturing processes. One course of action in managing these The company was faced with the example of this is battery storage at risks involves: interaction with the task of building back in a resilient way one of our insulation plants to mitigate commission in charge of defining that mitigates risk, and we did so by volatile energy costs. the new allocation rules (in reviewing purchasing insurance and rebuilding the rules under EU ETS Phase IV, Risk: Enhanced Emissions-Reporting the electrical systems so that they we determined that the Continuous Obligations were elevated, helping protect them Filament Glass Fiber sector qualifies to against potential future floods. As a Many of Owens Corning’s products continue receiving free allowances until result, this site was able to come back are made with heavy manufacturing 2030); actively pursuing R&D initiatives online and is now more resilient, having processes. While we continuously involving a change in material responded to the physical risk with strive to exceed regulatory composition or in manufacturing appropriate mitigation measures. requirements, our factories do produce processes to enable emissions pollutants and carbon emissions. reductions; and implementation of Continuing to purchase flood insurance energy and GHG reduction projects. for this facility has become more Owens Corning is subject to or has challenging, and the insurance capacity chosen to voluntary participate in In 2020, 12 of our plants were available for purchase was recently Emissions Trading Schemes (ETS) impacted by the EU ETS: Composites reduced. Combined with a potential around the world, such as the EU plants in L’Ardoise, Chambéry, Besana, increase in likelihood of this risk due Emissions Trading System, the and Apeldoorn, and Insulation plants to the impact of climate change, this Canadian Federal Output-Based Pricing in Tessenderlo, Klášterec, Hällekis, situation is even more important to System, the Quebec Cap-and-Trade Hässleholm, Skövde, Parainen, Vilnius, mitigate appropriately. Other natural system, the Beijing Pilot Emissions and Trzemeszno. The production of disasters could also impact Owens Trading Scheme, and South Korea’s both composite glass and insulation Corning locations in a similar manner. Emissions Trading Scheme, as well creates GHG and other air emissions. as other similar schemes limiting This represents a long-term risk for A primary method of managing this emissions. In 2020, 24% of our Scope Owens Corning, which we mitigate risk is for Owens Corning to initiate 1 emissions fell under emissions- in several ways. In addition to the projects that reduce emissions across limiting regulations. purchase of insurance, we engage all our global facilities. In 2020, we in loss prevention engineering, and implemented 31 projects, generating
2020 Owens Corning Sustainability Report | Appendices | 344 TCFD CLIMATE RISK Appendix G energy savings of over 43,000 MWh The opportunities surrounding Owens who are building in a wide variety of and reducing nearly 15,000 MT of GHG Corning mineral wool products provide climates, regions, and communities. emissions per year. One change we an example. In response to fires Opportunity: Roofing Products from implemented to manage emission- throughout Europe and the Middle Extreme Weather limiting risk in the EU ETS is the East, including the 2017 Grenfell Tower 2019 rebuilding of a furnace in our fire in the UK, attention has turned to Demand for products in our roofing Trzemeszno, Poland, location, in which the codes and standards that apply to business is generally driven by both a fuel-fired furnace was transitioned fire performance of products and wall residential repair and remodeling to an Electric Arc Furnace (EAF). As systems in those regions. This focus is activity, as well as new residential the EU ETS expands, Owens Corning’s emerging in the US as well: New York construction. As climate change leads European locations must continue to City is considering revising its code to to an increase in the frequency and improve efficiency for energy and GHG. limit the use of combustible materials severity of storms around the world, As part of our response to this risk, in exterior assemblies of commercial Owens Corning may see an increased we constructed a new energy-efficient buildings, especially tall structures. demand for our roofing products due production line at our Trzemeszno Combined with strong energy codes to storm-related roof damage. All location. We expect to reduce our CO2 calling for exterior insulating sheathing, our architectural laminate shingles emissions by 75-80% with this line, this new building and fire code are designed to protect against high compared to a traditional coke-fired requirement is likely to drive the market winds seen in these conditions. furnace line. As a result, the new line’s towards non-combustible mineral wool Our TruDefinition® Duration FLEX®, EAF will reduce carbon intensity by insulation board, like Owens Corning TruDefinition® Duration® STORM®, ® roughly 10% for all Owens Corning Thermafiber products. and TruDefinition® WeatherGuard® HP Paroc insulation in Europe. The new shingles all meet the industry’s highest We see a similar scenario arising in EAF is the third stone wool electric classification for impact resistance, California for single-family homes. To furnace for Owens Corning in Europe and they are preferred products in meet the zero-energy code, builders and the second on the Owens Corning many hail-prone regions. With elevated often choose continuous insulation site in Poland. As we plan for the storm activity, our entire shingle on the exterior of walls, and combined growth of the EU ETS as a long-term product line could see increased with the urban wildland interface risk, we are managing this risk with revenues. code, we expect to see the use of financial planning and operations combustible expanded polystyrene changes like the electrification of Owens Corning has a strong network (EPS) diminish in favor of non- furnaces. of facilities throughout the United combustible insulative sheathings States. Through sophisticated supply ® Owens Corning has also identified such as Owens Corning Thermafiber chain planning, production from each a number of opportunities with the mineral wool. The market penetration of these locations can be redirected potential to have a substantive financial of non-combustible mineral wool to serve a storm damage market. The or strategic impact on our business. insulation may be faster in tall way we are enabling this opportunity commercial buildings. can be seen in the following example Opportunity: Manufacturing of case: After Hurricane Katrina led to Energy-Saving Products Specific to our mineral wool products, surge ordering of replacement shingles there are presently two identified As building codes and regulations to repair the huge number of damaged example opportunities related to regarding energy efficiency and roofs, Owens Corning determined that stricter codes: the growth attributable combating climate change grow more to effectively respond to surge ordering, to non-combustibility, and the aggressive, the use of Owens Corning’s shingles from different plants within development of codes that call for insulation and other energy-saving the same region needed their coloring increased R-value per inch, which products and systems can be expected to be completely interchangeable, so would grow the potential comparative to grow. We can also expect to see if shingles from two or more different market for mineral wool. increases in the use of our glass-fiber plants end up on the same roof, they reinforcements as the transportation To realize this opportunity, Owens will match color as intended. This industry establishes more stringent Corning’s government affairs led the company to develop “regional energy efficiency regulations, which organization actively engages with shingles,” which dramatically improve would help drive the use of lighter, NGOs, state and federal agencies, our ability to get shingles to weather- stronger materials. Demand for and legislative bodies to increase impacted areas from multiple plants. A products in our roofing business is climate, energy conservation, and fire regional shingle is a shingle produced generally driven by both residential and life safety requirements. In 2020, at different manufacturing facilities, repair, remodeling activity, and by new we continued to partner with builders tested and proven to be color-matched residential construction. throughout the U.S. and Canada to allow mixing between all or some of
2020 Owens Corning Sustainability Report | Appendices | 345 TCFD CLIMATE RISK Appendix G the producing manufacturing facilities structures. They also help 5. PAROC® Natura™ insulation. This in a specific region. With state-of-the- architects design buildings with line of stone wool insulation uses art technology and stringent testing reduced life cycle impacts, in low-carbon melting technology, requirements, Owens Corning Roofing keeping with the recognized goals green electricity, recycled waste is able to provide more efficient service of the Architecture 2030 Challenge materials, and new technologies during storm surge demand, more and U.S. Green Building Council’s to reduce the amount of virgin raw flexibility for multiple locations, and LEED® certification. material used and offer a product easy inventory management. We with very low CO emissions. 2. Our expanded offering of “cool 2 developed and rolled out the regional The remaining emissions are roof” shingles. Using a highly shingle approach for our roofing compensated by reducing CO reflective granule technology that 2 locations, and as a result, our regional emissions through the purchase reflects the sun’s rays, Owens shingle gives us the flexibility to have of offsets in a Verified Emissions Corning’s Cool Roof Collection™ a competitive advantage in storm Reduction Scheme. The new shingles help reduce energy reaction time, as shingle demand can product line, which is certified as use by keeping roofs cooler be met from multiple sites, should carbon-neutral by a third-party, throughout the year and reducing severe weather lead to a surge in offers fire-safe, and durable air conditioning energy levels. demand. insulation. Some of our Cool Roof Collection™ Opportunity: Products That Meet shingles meet ENERGY STAR® As part of our overall commitment Increased Demand for Sustainability requirements for solar reflectance. to sustainability, Owens Corning In February 2020, we extended has embedded building science People around the world are our Cool Roof Collection with the professionals into the business. We growing increasingly aware of the launch of six new colors in the understand the impacts of our products impact human activity is having TruDefinition® Duration® COOL and aim to innovate solutions that on the environment. As a result, Plus line, plus two additional provide positive impacts on the building Owens Corning’s products have the colors added to our Oakridge line. envelope. Our sustainability organization potential to become more important These shingles meet or exceed and sales force actively and broadly to consumers and to builders who the minimum 20 Solar Reflective promote our company’s stand for market energy efficient structures. Index requirements for the Green sustainability and train professionals Our products, specifically insulation, Building Standards Code of Los on how to achieve maximum are significant to the reduction of Angeles County, California, U.S. environmental benefits using our GHG from buildings. Because of this, products. The company is a significant Owens Corning stands to benefit from 3. WindStrand®. This innovative user of recycled content, and we strive our reputation as a company that material allows wind blade to reduce the energy usage and GHG promotes sustainability, as consumers manufacturers to use 30% fewer emissions from producing our products concerned with climate change and the layers of material in the molds while tracking avoided emissions from environment are likely to prefer Owens for the blades while delivering the product usage. Corning products over those of our same quality and performance competitors. as standard fabrics. That, in turn, Owens Corning’s experts continually represents a 50% savings in research and deploy building science to Examples of products which could labor and production time for the serve architects, buildings, occupants, see increased demand from climate- blades. and the environment. The Owens conscious customers include: Corning Building Science Solution 4. FOAMULAR® NGX™ insulation. A 1. “Made with 100% Wind-Powered Center is a 24/7 portal connecting new line of extruded polystyrene Electricity and Reduced Embodied architects to emerging research, best (XPS) foam products, FOAMULAR® Carbon” Certification products. practices, and thought leadership NGX™ (Next Generation Extruded) We currently have 13 products across a spectrum of building features a proprietary blowing that have received a third-party disciplines. agent in that delivers a 90% wind electricity certification. These reduction in global warming Owens Corning uses the following certified insulation products alert potential (GWP) compared to processes to determine the potential commercial architects, specifiers, legacy FOAMULAR® insulation, financial impact on Owens Corning’s builders, and homeowners to and is optimized to demonstrate operations lower-carbon product options a greater than 80% reduction in as they seek to build greener Owens Corning has established three embodied carbon. levels to gauge the impact of the risks we monitor. The lowest level risks
2020 Owens Corning Sustainability Report | Appendices | 346 TCFD CLIMATE RISK Appendix G are those where the company can is a measure of probability of to continuously fuel Owens Corning absorb the financial impact, and the occurrence. For example, a risk business pipelines with technology- reputational impact is relatively non- located toward the upper left of based opportunities that enable existent. The next level is moderate the risk map would be indicative of growth or mitigate threats. Our tech financial impact, with a potential to risk that is high in financial impact scouting team is integrated with each be known by the public or to damage but low in probability. Additional business unit, systematically finding our reputation. The highest level prioritization is provided by color- and assessing business opportunities is significant financial impact and coding: risks in green indicate that that match our needs and strategy, and or reputational damage, with the the level of exposure is acceptable, effectively sourcing the most suitable potential to be catastrophic to the yellow indicates mitigation technologies and partners. Any new organization. All three levels of risks plans are actively in place, and products developed must go through have been determined important to red indicates that improved risk our stringent product stewardship monitor, but those in the moderate and mitigation is needed. process, and each product is evaluated significant levels are defined as having for its net sustainability gains or losses. 2. Align around key mitigation substantive financial impact. Recycling, in the context of the circular programs. Based on the risk economy, will be a key focus of the assessment register outputs, Owens Corning’s risk committee tech scouting team. meets with functional and business the risk committee identifies the leaders throughout the organization to various mitigation actions to be Some case studies of how we have discuss identified risks and manage taken and a planned approach is followed our processes for managing corresponding action plans. Risks taken towards implementing them climate-related risks and opportunities are considered by the committee through the businesses. include: for all ranges of time horizon, and ■ 3. Review risk register with the Case: Transitional Risk. Broad in all aspects of the value chain. At executive committee. All risk and gradual tightening of federal the asset level, our business units assessment results and outputs and state government limits on (BUs) create business-specific risk are reviewed by the executive emissions could disrupt our use registers which are used in their committee, and feedback received of specific raw materials, which in Strategic and Operational Planning is incorporated in the action turn would disrupt our production processes. In creating these registers, register and reflected in the capacity for products using those the BUs identify internal and external mitigation planning. materials. One specific Owens factors that could pose threats and Corning example would be the opportunities to their business. 4. Meet semi-annually. The risk banning of certain blowing agents They evaluate the potential impact committee meets semi-annually used in our XPS foam plants in and likelihood, and then establish to review emerging risks and North America and Asia. If that management plans to mitigate each their potential impact to Owens were to occur, we would be required risk. Risks are then either retained (risk Corning. In addition, they review to make certain capital investments exposure is accepted without further the existing risk aspects, add any at our plants to use alternative mitigation), reduced/transferred (risk new risks being identified from blowing agents. Because we believe exposure is reduced, transferred, or internal or external sources, and the likelihood of this identified consequences are reduced) or avoided update any risks which are no risk is high in the long term, we (risk exposure eliminated entirely; for longer considered applicable to the have completed development and example, by ceasing a business). businesses. The risk committee certification of new foam blowing also reviews the mitigation actions The risk committee considers agent blends. The lower global and outputs for the annual cycle. significant risk to the corporation. warming potential (GWP) in these blends could be used with our They have a process where they do the 5. Provide yearly update to the existing equipment. In addition, following: board of directors. we have begun capital upgrades 1. Review the Owens Corning We have a variety of processes for needed to run our lines with these Risk Register substantiated identifying and managing opportunities lower GWP blowing agent blends. by business and functional within the business, marketing, R&D, As a result, we are now prepared to reviews. The risks are prioritized and across the company, including manage this risk, and are already based on their placement on the climate-related opportunities. As an doing so in some cases, with the register. The Y-axis is a measure example, tech scouting is a business 2021 release of FOAMULAR NGX® of financial impact and the X-axis strategy aligned with our corporate for Canada and certain U.S. states. innovation team, and it is designed
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■ Case: Physical Risk. We have a earlier, because the effects of Canadian regulations will require plant in Tennessee located in a climate change are felt in the the phasing out of certain blowing high earthquake and tornado zone. increased frequency and severity agents beginning in 2021. This plant is important, as it helps of storms, Owens Corning may In addition, we developed PAROC® supply raw material to another see an increased demand for our Natura™ insulation, a new product Owens Corning business as well roofing products due to storm- line of carbon-neutral stone as outside companies. Therefore, related roof damage. Evaluation of wool insulation that uses low- we needed to find a way to manage climate-related physical risks and carbon melting technology, green the physical risk to this plant. To do opportunities have driven changes electricity, recycled waste materials, so, we developed a management and expansion in production and new technologies to minimize plan to mitigate losses in the event and marketing of specific the amount of CO emitted during of a natural catastrophe. The plan Owens Corning products, like 2 the manufacturing process. involves loss prevention, supply WeatherGuard® and Duration FLEX® chain, and our commercial teams, shingles, which are rated against These innovations have had a as well as having the appropriate high winds and storm activity, as moderate impact on our revenues amount of insurance, planning to well as helped drive the creation as we deliver new market leading convert other facilities to make of new products like our Cool Roof products in the near term, and similar product, making updates Collection™ Shingles with reflective products like these, that can help to the facility to help it withstand properties. our customers save energy and natural disasters, and having Impact of Climate-Related Risks and avoid emissions, accounted for 62% appropriate contractual obligations Opportunities on Our Strategies of our revenue in 2020. with outside customers to supply ■ Supply Chain. We believe a prorated amount of materials in The climate-related risks and transportation of materials and the event of a disaster. This plan is opportunities outlined above have led engagement with a supplier can reviewed and updated annually as Owens Corning to develop a range of be done more efficiently if the circumstances change. As a result, strategies that have had a major impact supplier is nearby — it enhances this plant is managing physical on the way we conduct our business. sustainability across the supply risks posed to it, which helps us These include the following: chain and minimizes the impact operate more effectively. ■ Products and Services. As detailed of storms and natural disasters. above, we have developed a variety ■ Case: Transitional Opportunity. Our production of regional shingles of products that address potential Owens Corning actively lobbies represents an important area where risks and opportunities. Our Cool the U.S. Department of Energy we have addressed supply chain- Roof Collection™ shingles and and other legislative bodies related risks that have impacted our Sustaina® nonwoven glass fiber through its governmental affairs business. fabric, for example, anticipate organization for increased energy Our 2030 long-term sustainability potential increased regulation conservation requirements. Risk goals demonstrate another related to energy efficiency and and opportunities evaluation by the way climate-related risks and emissions standards. Some Cool businesses determined that more opportunities have influenced Roof shingles meet ENERGY aggressive building codes can help our strategy in the value chain. STAR® requirements for solar drive the use of Owens Corning’s A Sustainability Materiality reflectance. Sustaina’s bio-based products, to save customers energy Assessment yielded responsible binder system delivers high tensile and reduce GHG emissions. We sourcing as a material topic, along strength performance without estimate that aside from the benefit with combating climate change, formaldehyde. to consumers, Owens Corning and we are working up and down could see a considerable amount of We have also developed a new the value chain to develop . These ® new business attributable to code product, FOAMULAR NGX™. two areas combine to inform a goal changes. to comply with climate-related in which we intend to reduce Scope regulation and reduce emissions 3 emissions by 2030, based on a ■ Case: Physical Opportunity. from blowing agents. Its new 2018 base year. Demand for products in our roofing blowing agent reduces its GWP as business is generally driven by well as Scope 1 emissions. The With the Citi® Sustainable Supply residential repair, remodeling product also addresses a short- Chain Finance Program, suppliers activity, and new residential term climate transition risk, as that meet our target to reduce construction. As discussed absolute GHG emissions are eligible for financing that helps
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them improve their cash flow and the power purchase agreements ■ Direct Costs. Owens Corning the accuracy of their financial came online and are now providing incorporates the impact of the forecasting. The program is renewable energy into the grid, identified risks into its direct an example of Owens Corning impacting emissions and renewable operating costs for financial collaborating with stakeholders to energy in 2020. Owens Corning planning models based on a meet our sustainability goals. continues to look for opportunities number of factors including ■ Investment in R&D. Going beyond to expand our renewable portfolio, the likelihood, timeframe, and the products mentioned above, reviewing several on-site and off- magnitude of the financial impact Owens Corning is currently site programs. of the risk or opportunity. For investing substantially in In addition to growing our example, in the event of reduced further R&D in response to the renewable electricity portfolio, in production capacity due to climate- many climate-related risks and support of our goal of sourcing related increases in storm activity opportunities that we have defined. 100% renewable electricity by and severity, Owens Corning would potentially see increased The risk management process has 2030, we are also changing our (Direct) Operating Costs with had a moderate impact on how operations strategy in response substantial magnitude of impact in funds are invested in R&D, as the to climate risks and opportunities the affected regions. The increase risk management process often through the electrification of assets. would be due to cleanup costs, as leads to mitigation needs and The electric arc furnace (EAF) in well as alternate transportation identified business opportunities. Trzemeszno, Poland, discussed costs, increased maintenance, For example, the investment in earlier is a good example. increased sourcing costs due R&D for WindStrand®, described Owens Corning has also developed to supply chain strain, and likely above, was driven in part by climate strategies to address potential climate- increased production costs as change-related risk and opportunity related impacts on our financial the repaired line is brought back evaluations. planning. These include the following: up to production. This estimated Another significant example of ■ Revenues. Owens Corning has impact would be included in the climate-related R&D with near-term incorporated climate risks and financial planning process in implications is the development of opportunities into our financial various scenarios and analyses. the newly announced FOAMULAR® planning process. Our new product When a hurricane damaged our NGX™, a foam insulation with a developments are factored into our Kearny roofing plant, we had a significantly lower GWP, developed forecasting, as previous climate- good example to use to adjust to comply with the existing Canadian related products, like EcoTouch® our planning estimates for future regulation described above. PINK® Insulation, were when they potential severe weather events and FOAMULAR® NGX™ is positioned to were being developed. Currently their impact on operating costs. be immediately available in Canada low-carbon products, which were ■ Indirect Costs. Indirect costs such and all U.S. states affected by the introduced in 2017 and made up as insurance have been influenced anticipated regulation, managing the 25% of 2020 revenues, have also by climate-related risks, such as transition risk. been included in future revenue extreme weather events and their projections at a forecasted ■ Operations. Identified climate increased likelihood. A recent rate of growth. These risks and related risks and opportunities example involves one Owens opportunities have a moderate have had a significant impact Corning facility that experienced a impact on revenues in the financial for Owens Corning. In 2015 we catastrophic flood approximately planning process. We also monitor made major investments in 10 years ago. In the years since products that avoid emissions in renewable energy. We signed the flood, continuing to purchase the value chain, such as fiberglass power purchase agreements for flood insurance for this facility has products, ENERGY STAR® shingles, renewable electricity totaling 250 become more challenging, and and several composites products. megawatts. We also installed recently the insurance capacity These products accounted for 62% a solar array at our corporate available for purchase was reduced. of revenues in 2020. In addition, headquarters, satisfying about 20% This indirect cost not only became we have identified long-term of the building’s energy needs and more difficult to purchase, the opportunities like the growth in offsetting the equivalent amount available protection capacity was non-flammable insulation products of GHG emitted from the building’s altered entirely due to the increased in the long-term due to stricter code commuters. In Q4 of 2016, the likelihood of climate-related adoption in North America, which is two wind farms associated with weather events like flooding. This discussed in detail above.
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example influences indirect cost owner? As sustainability guides products and consider them financial planning in any Owens our operations, we want to be on the long-term horizon. The Corning site with similar natural confident that we can improve the identified opportunities regarding disaster risk. environmental, health, and safety more aggressive building codes, (EHS) performance, employee increased demand for building ■ Capital Expenditures. Capital experience, customer experience, materials due to changes in expenditures are influenced by and community impact of the weather patterns and storm activity, climate risks and opportunities. One companies that join us. We ask and improved demand for existing example is a regulatory transition whether we can bring a new products due to our reputation risk regarding our blowing agent perspective on safety and health, for sustainable products were blend, which is expected to be as well as whether we can improve all factors in our acquisitions to phased out as a component of energy efficiency and lower waste expand our product line. These climate/environmental regulation. in operations. opportunities continue to be In the planning process a few involved in our financial planning Owens Corning has purchased years ago, we included the new process as we continue to evaluate several companies in the last three equipment required to use a foam and analyze additional acquisition years. The acquired businesses blowing agent with a lower GWP, targets. as the need for blowing agent successfully expand the capabilities changes was identified in our and global reach of our three Climate-related risks and opportunities risk and opportunities analyses. business segments (Composites, are integrated into our current decision FOAMULAR® NGX™ is the first such Insulation, and Roofing). Improving making and strategy formulation. This product with lower GWP blowing EHS performance and enhancing includes planning assumptions and agent, announced in mid-2020 and the employee experience objectives around climate change made available beginning January are critical elements in our mitigation, adaptation, or opportunities, 2021 to coincide with regulations acquisition integration process. including the following: in Canada and certain U.S. states. The identified climate change- ■ R&D. Owens Corning is investing Our response to identified climate- related opportunities, including substantially in further R&D in related risks and opportunities such more aggressive building codes, response to the many climate- as these has had a substantial increased building materials related risks and opportunities that impact on our financial planning of demand due to potentially we have defined. In addition to our capital allocation. increased storm activity and FOAMULAR® NGX™ insulation, severity, and improved demand this includes Cool Roof Collection™ ■ Acquisitions & Divestments. for existing products due to our shingles and WindStrand® glass Identified climate risks and reputation for sustainable products fiber roving, as described above. opportunities have had a moderate were all factors in our acquisitions impact on our financial planning for ■ Future Activities. Climate risks to expand our product line. These acquisitions and divestments. Over influence our investments in many opportunities continue to be the last several years acquisitions ways. One example is a regulatory involved in our financial planning have been an important part of transition risk related to our blowing process as we continue to evaluate our growth strategy. We look for agent blend, which led to our and analyze additional acquisition acquisition opportunities with investment in the development of targets for the medium and long businesses that meet specific a foam blowing agent with lower term. criteria. They must: global warming potential. The ■ Assets & Liabilities. Climate risks • Provide stable and attractive product using this new blowing and opportunities have had a ® margins and strong synergies. agent, FOAMULAR NGX™, is moderate impact on our financial described above. • Address our target growth planning for assets and liabilities, Identified climate risks have areas. primarily through our acquisitions. had a moderate impact on our Owens Corning has purchased restructuring activities. The • Meet our strategic objectives. several companies in the last three acquisitions Owens Corning has We evaluate our acquisition to four years, including Guangde made in recent years, including candidates through multiple lenses, SKD, Pittsburgh Corning, and Paroc. Guangde SKD, Pittsburgh Corning, including sustainability, and we We view these companies as an and Paroc, were made in part due to ask a critical question: Will this important element in the expansion their ability to add to our portfolio of business be better with us as its of our portfolio of energy-saving
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energy-saving products. These new Our adjustments to planning Among our customers, severe assets will be beneficial to us as we estimates in the aftermath of weather conditions could slow or limit meet the challenges presented by Hurricane Sandy is another residential or commercial construction transition risks, as well as address example. Increases in costs related activity, which in turn could adversely climate-related opportunities, such to cleanup, strain on the supply affect demand for our products. as more stringent building codes chain, and production were factored Within our own operations, extreme and increased demand for building into our planning, and Owens weather can lead to disruptions in our products in the aftermath of more Corning was able to include future manufacturing capacities, as damages extreme weather patterns. potential severe weather events and to our facilities may occur. In addition, ■ Planning Around Legacy Assets. their impact on operating costs. as weather-based disruptions become more common, we anticipate potential We have established a range Resilience of Owens Corning Strategy difficulties in obtaining affordable of strategies to reduce carbon- in Climate-Related Scenarios intensive, energy-intensive, and insurance. Owens Corning has developed resilient water-intensive activities throughout In consultation with experts in the field, strategies related to different climate- our operations, including major Owens Corning began work with The related scenarios, including Science- investments in renewable energy. Ohio State University in 2020 to expand Based Targets. The initiatives described above, our efforts to assess the resilience such as the solar array at our world Our actions to reduce GHG emissions of our strategies against a range of headquarters, power purchase have always been informed by the climate-related scenarios and time agreements, wind farms, and latest science-based methodologies. In horizons. These scenarios will focus on electric arc furnace, all demonstrate recent years, our GHG reduction goal risks and opportunities globally and at our commitment to meeting our was designed to limit global warming the business level. Science-Based Targets and overall to less than 2° C above pre-industrial 2030 sustainability goals. level, consistent with our commitment RISK MANAGEMENT ■ Capital Planning and Allocation. to the Paris Agreement of 2015. Enterprise risk management GHG emissions, energy, and water Given the more in-depth understanding governance at Owens Corning starts use are also considered as we of the physical risks associated with with the risk committee, advances allocate resources to initiatives climate change gained in recent years, to the executive committee, and is throughout our operations. As Owens Corning has set targets aligned finalized with a review by the audit we develop new products (e.g., with the latest findings from the committee of the board. FOAMULAR® NGX™, WindStrand®, Intergovernmental Panel on Climate Cool Roof Collection™ shingles), we The risk committee is responsible for Change (IPCC). To avoid the worst employ our product stewardship overseeing and monitoring our risk impacts of climate change, the IPCC principles to ensure that assessment and mitigation actions. urges that temperature rise should sustainability is taken into account The risk committee is not a board be held below 1.5° C. As we seek throughout the entire process. committee; instead, it is a cross- to reduce our Scope 1 and Scope 2 functional corporate committee that ■ Flexibility in Positioning/ greenhouse gas emissions by 50% includes members across many areas Repositioning Capital. As we over the next ten years, we will use of expertise. It is also structurally seek to address emerging climate- this metric — representing the latest in independent of our business lines. This related risks and opportunities, climate science — as our guide. internal mechanism identifies risks and we recognize the need to adapt Owens Corning has assessed all the mitigation strategies, and it provides our operations accordingly. The potential risks associated with climate key updates to executive officers and example of regional shingles, change, giving us a full understanding the audit committee. discussed in detail above, of the many ways climate-related demonstrates our ability to act with In 2020, safety and environmental risks can impact operations across flexibility to adjust to the needs of concerns were added to the core risk our entire value chain. As weather the marketplace through ingenuity register (see below), which increases conditions shift, severe storms can in production and supply chain the extent to which sustainability have a significant impact on the planning. issues are embedded into the markets for residential and commercial enterprise-wide risk process. construction, repair and improvement, as well as a material adverse impact on our results of operations.
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The risk committee reports directly to Between annual reviews, the registers the chief financial officer and general are reviewed by the business METRICS & TARGETS counsel. In support of these efforts, stakeholders, and the risk committee Owens Corning set aggressive 2030 the independent corporate audit meets quarterly to discuss any GHG emissions goals using the function systematically addresses risk applicable updates. Should any Absolute Emissions Contraction throughout the organization. Audit material updates be made, these Method from the Science Based results are reviewed with the audit are then reviewed with the executive Targets initiative (SBTi). Our approved committee of the board of directors, committee and audit committee of the targets are to reduce absolute Scope which has primary responsibility for board as well. 1 and 2 GHG emissions 50% from assisting the board’s oversight of risk. 2018 levels by 2030 and to reduce The audit committee’s responsibilities Risk Registers absolute Scope 3 GHG emissions 30% include: Owens Corning’s business units use within the same timeframe. We ran the ■ Discussion of guidelines and risk maps to proactively analyze risks model, using both the 1.5° C scenario policies that govern the process and create business-specific risk and 2.0° C scenario, and our Scope 1 by which senior management and registers. The risk committee then and Scope 2 target was determined relevant departments access and uses these individual risk registers to to be in line with 1.5° C trajectory. In manage the company’s exposure create a corporate-level risk register, 2019, we received confirmation from to risk. which enables business units and the the SBTi that our Scope 1, 2, and 3 risk committee to facilitate strategic ■ Annual review of, and periodic greenhouse gas goals are approved. and operational planning processes updates on, identification of Owens We have established additional 2030 while mitigating sustainability risks. Corning’s key risks, major financial targets and initiatives to enable us to meet these aggressive targets, such exposures, and related mitigation Risks are prioritized based on their as our 2030 goal for 100% renewable plans. placement in the risk register. The energy, which are in place to help us Y-axis (“Value”) represents the ■ Oversight of our management of sharply reduce emissions from our potential financial impact, while the the key risks and major financial processes and products. For example, X-axis (“Likelihood”) represents the exposures that fall within the audit our 2030 renewable electricity goal probability of occurrence. Color coding committee’s specific purview. will require Owens Corning to pursue (for emphasis) and different shapes additional large renewable energy ■ Assurance that the board and (for trending information) offer a fuller projects in several regions outside its committees oversee our understanding of the potential risks. North America. We continue to management’s key risks and major To identify new risks — and update review potential projects domestically financial exposures within their risks no longer considered important and internationally. We plan to also respective purviews. — the risk committee regularly continue to expand our portfolio of ■ Periodic evaluation of the reviews results and outputs of risk low-carbon products certified as being effectiveness of the above- assessments. In the past, this was made with wind energy. referenced process of oversight done at least twice per year, but Owens Corning chose 2030 as our in 2020 the risk committee began Three board committees — target year for our third set of 10- meeting four times per year. In doing compensation, finance, and year goals. We evaluated 2017 and so, the risk committee is now even governance and nominating — all 2018 as potential base years, but better equipped to implement a robust review and evaluate risks associated we chose 2018 because it more mitigation plan across businesses with their respective areas. Each board accurately reflects the nature of our as well as corporate functions. Our committee reports on its respective business today after further acquisition enterprise risk management (ERM) risk management activities to the integration. board, and the board then considers process is updated and reviewed such reports. annually by the board’s executive and Monetary rewards for the CEO and the audit committees to ensure it remains corporate executive team are based relevant and proactive. on performance toward their individual goals, which can include sustainability goals. This is part of our executive performance objectives, which affect
2020 Owens Corning Sustainability Report | Appendices | 352 TCFD CLIMATE RISK Appendix G variable incentives for executives Addressing Emerging Climate-Related within the science & technology Risks and Opportunities organization, each business unit, as Our commitment to sustainability well as our corporate sustainability starts with our passion for developing function. This includes individuals such energy-saving products, such as as our CEO & chairman of the board, insulation and durable products that our chief sustainability officer, the significantly reduce energy use and presidents of each of our three main associated emissions. A significant businesses (Insulation, Composites, portion of global greenhouse and Roofing & Asphalt) as well as other gas emissions come from the executives, such as the VP of roofing & combustion of fossil fuels; therefore, asphalt operations, the VP of advanced energy savings, or avoided energy manufacturing, the VP of composites consumption, are directly tied to science & technology, and the VP a quantifiable amount of avoided of insulation and roofing science & emissions. More information about technology. our sustainable product portfolio and In implementing an internal carbon approach is included in the Expanding price, we consider Scope 1, 2, and 3 Our Product Handprint section of this emissions and have both internal and report. externally published reduction goals. We use our aligned and committed reduction goals to drive strategy and action, although we do not have an internal carbon tax or carbon charge allocated to our businesses. For use in internal decision making and risk analysis, we place an economic value on carbon emissions to help frame the challenges and opportunities in monetary terms, which are more broadly understood than simply tons of emissions. This includes considering the impact on our operations and our supply chain. Quantifying these (theoretical or potential) added costs, in the event that a price is put on carbon in regions around the world where a current price or trading scheme is not in place, provides additional insight into our scenario planning and business decisions. We bracket this analysis, on the low end at $10/metric ton and a high of $60/ metric ton.
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Governance Disclose the organization’s governance around climate-related risks and opportunities.
DISCLOSURE CHAPTER PAGE ADDITIONAL INFORMATION Describe the board’s oversight of climate-related risks and Board Leadership 57 Management Oversight of Sustainability opportunities. Risk Management 62 Describe management’s role in assessing and managing climate- Board Leadership 57 Management Oversight of Sustainability related risks and opportunities. Risk Management 62-67 Combating Climate Change 151-153 Strategy and Approach
Strategy Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning where such information is material.
DISCLOSURE CHAPTER PAGE ADDITIONAL INFORMATION Describe the climate-related risks and opportunities the organization Risk Management 65-68 Summary of Key Risks has identified over the short, medium, and long term. Combating Climate Change 151-153 Strategy and Approach Appendix G - TCFD Climate Risk 343-353 Describe the impact of climate- related risks and opportunities Risk Management 62-68 on the organization’s businesses, strategy, and financial planning. Appendix G - TCFD Climate Risk 343-353 Describe the resilience of the organization’s strategy, taking into consideration different climate- Message from Our CEO and CSO 4-5 related scenarios, including a 2°C or lower scenario. Combating Climate Change 151-153 Appendix G - TCFD Climate Risk 343-353
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Risk Management Disclose how the organization identifies, assesses and manages climate-related risks.
DISCLOSURE CHAPTER PAGE ADDITIONAL INFORMATION Describe the organization’s processes for identifying and Risk Management 62-68 assessing climate-related risks. Appendix G - TCFD Climate Risk 343-353 Describe the organization’s processes for managing climate- Risk Management 62-68 Management Oversight of Sustainability related risks. Appendix G - TCFD Climate Risk 343-353 Describe how processes for identifying, assessing and managing climate-related risks are Risk Management 62-68 integrated into the organization’s overall risk management. Appendix G - TCFD Climate Risk 343-353
Metrics & Targets Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.
DISCLOSURE CHAPTER PAGE ADDITIONAL INFORMATION Owens Corning discloses GHG, energy, Disclose the metrics used by the water, waste, and air quality metrics in organization to assess climate- Reducing Environmental Footprint their respective chapters in the Reducing related risks and opportunities 141-197 Section Environmental Footprint section of the in line with its strategy and risk report. We also discuss other metrics in management process. our TCFD Climate Risk section. Appendix G - TCFD Climate Risk 343-353 Appendix C - Environmental Data 309-316 Appendix G - TCFD Climate Risk 343-353 Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse Combating Climate Change 151-158 Scope 1&2 gas emissions and the related risks. Supply Chain Sustainability 137-139 Scope 3 Appendix C - Environmental Data 309-316 Detailed emissions data Owens Corning discloses GHG, energy, Describe the targets used by the water, waste, and air quality targets in organization to manage climate- Reducing Environmental Footprint their respective chapters in the Reducing 141-197 related risks and opportunities and Section Environmental Footprint section of the performance against targets. report, along with 2020 performance against those targets.
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DISCLOSURE PAGE TOPIC ACCOUNT METRIC CHAPTER NUMBER NUMBER Greenhouse Gas EM-CM-110a.1 Gross global Scope 1 emissions Combating Climate Change 156-157 Emissions Percentage of gross global Scope 1 GHG Greenhouse Gas Appendix G - TCFD Climate EM-CM-110a.1 emissions that are covered under an 344 Emissions Risk emissions-limiting regulation or program Description of long-term and short-term strategy or plan to manage Scope 1 Greenhouse Gas EM-CM-110a.2 emissions, emissions reduction targets, Combating Climate Change 151-158 Emissions and an analysis of performance against those targets Air emissions of the following pollutants:
(1) NOx (excluding N2O), (2) SOx, (3) particulate matter (PM10), (4) dioxins/ EM-CM-120a.1 Air Quality Air Quality Management 159-167 furans, (5) volatile organic compounds (VOCs), (6) polycyclic aromatic hydrocarbons (PAHs), and (7) heavy metals (1) Total energy consumed, (2) percentage Appendix C - Environmental EM-CM-130a.1 Energy Management grid electricity, (3) percentage alternative, 307 Data (4) percentage renewable (1) Total fresh water withdrawn, (2) percentage recycled, (3) percentage in Responsible Water Sourcing EM-CM-140a.1 Water Management 170, 175 regions with High or Extremely High & Consumption Baseline Water Stress Amount of waste generated, percentage EM-CM-150a.1 Waste Management Waste Management 184-187 hazardous, percentage recycled Description of environmental EM-CM-160a.1 Biodiversity Impacts management policies and practices for Protecting Biodiversity 189-197 active sites Terrestrial acreage disturbed, percentage EM-CM-160a.2 Biodiversity Impacts Protecting Biodiversity 189-197 of impacted area restored (1) Total Recordable Injury Rate (TRIR) Workforce Health & and (2) Near Miss Frequency Rate for 295, 299- EM-CM-320a.1 Appendix B - Workforce Data Safety (a) full-time employees and (b) contract 300 employees Workforce Health & EM-CM-320a.2 Number of reported cases of silicosis Living Safely 227 Safety Percentage of products that qualify for Product Innovation & EM-CM-410a.1 Product Innovation credits in sustainable building design and 101-114 Stewardship construction certifications Total addressable market and share of market for products that reduce energy, EM-CM-410a.2 Product Innovation Sustainable Growth 122-123 water, and/or material impacts during usage and/or production Total amount of monetary losses as a Pricing Integrity & result of legal proceedings associated EM-CM-520a.1 Human Rights & Ethics 278 Transparency with cartel activities, price fixing, and anti- trust activities
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GRI 102: General Disclosures
DISCLOSURE PAGE SDG TARGET DESCRIPTION 2020 TEXT LOCATION NUMBER NUMBER LINKAGE 102-1 Name of the organization About Owens Corning 6 Activities, brands, products, 102-2 About Owens Corning 6-8 and services 102-3 Location of headquarters About Owens Corning 6 102-4 Location of operations About Owens Corning 6-8 102-5 Ownership and legal form About Owens Corning 6 102-6 Markets served About Owens Corning 6-8 102-7 Scale of the organization About Owens Corning 6 Information on employees #8 Decent Work and 102-8* Appendix B - Workforce Data 290-293 and other workers Economic Growth 102-9 Supply chain Supply Chain Sustainability 125-140 Significant changes to the Supply Chain Sustainability, About the 102-10 organization and its supply 128, 286 Report chain Precautionary Principle or 102-11 About the Report 287 approach 102-12 External initiatives About the Report 286 102-13 Membership of associations Appendix D - General Disclosures 325-332 Statement from senior 102-14 Message from Our CEO and CSO 4-5 decision-maker Key impacts, risks, and 102-15 Risk Management 65-68 opportunities 78, Values, principles, standards, #16 Peace, Justice 102-16 Compliance, Human Rights and Ethics 271-273, and norms of behavior and Strong Institutions 275-278 Mechanisms for advice and #16 Peace, Justice 102-17 Human Rights and Ethics 276-278 concerns about ethics and Strong Institutions 102-18 Governance structure Board Leadership 54-59 102-19 Delegating authority Board Leadership 57 Executive-level responsibility 102-20 for economic, environmental Board Leadership 57 and social topics Consulting stakeholders on Sustainability Materiality Assessment, #16 Peace, Justice 102-21 economic, environmental, 40-44, 57 Board Leadership and Strong Institutions and social topics Composition of the highest #5 Gender Equality 102-22 governance body and its Board Leadership 54-60 #16 Peace, Justice committees and Strong Institutions
*See page 288 in About the Report for Owens Corning’s definition of worker
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DISCLOSURE PAGE SDG TARGET DESCRIPTION 2020 TEXT LOCATION NUMBER NUMBER LINKAGE Chair of the highest #16 Peace, Justice 102-23 Board Leadership 54-55 governance body and Strong Institutions #5 Gender Equality Nominating and selecting 102-24 Board Leadership 56 #16 Peace, Justice the highest governance body and Strong Institutions #16 Peace, Justice 102-25 Conflicts of interest Board Leadership 59 and Strong Institutions Role of highest governance 102-26 body in setting purpose, Board Leadership 54-57 values, and strategy Collective knowledge of 102-27 Board Leadership 56, 58 #4 Quality Education highest governance body Evaluating the highest 102-28 governance body’s Board Leadership 58 performance Identifying and managing #16 Peace, Justice 102-29 economic, environmental, Board Leadership, Risk Management 57, 61-69 and Strong Institutions and social impacts Effectiveness of risk 102-30 Risk Management 61-69 management processes Review of economic, 102-31 environmental, and social Risk Management 61-69 topics Highest governance 102-32 body’s role in sustainability Board Leadership 57 reporting Communicating critical 58-59, 102-33 Board Leadership, Human Rights & Ethics concerns 276-277 Nature and total number of 102-34 Human Rights & Ethics 276-277 critical concerns 102-35 Remuneration policies Board Leadership 59 Process for determining 102-36 Board Leadership, 2021 Proxy Statement 59 remuneration Stakeholders’ involvement in #16 Peace, Justice 102-37 Board Leadership, 2021 Proxy Statement 59 remuneration and Strong Institutions Annual total compensation 102-38 Board Leadership, 2021 Proxy Statement 59 ratio 102-40 List of stakeholder groups Sustainability Materiality Assessment 40-44 Collective bargaining Living Safely, Employee Experience, Human 215, 256, #8 Decent Work and 102-41 agreements Rights & Ethics 273 Economic Growth Identifying and selecting 102-42 Sustainability Materiality Assessment 40-44 stakeholders
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DISCLOSURE PAGE SDG TARGET DESCRIPTION 2020 TEXT LOCATION NUMBER NUMBER LINKAGE Approach to stakeholder 102-43 Sustainability Materiality Assessment 40-44 engagement Key topics and concerns 102-44 Sustainability Materiality Assessment 40-44 raised Entities included in the 102-45 consolidated financial Form 10-K — statements Defining report content and 102-46 About the Report 286 topic boundaries 102-47 List of material topics Sustainability Materiality Assessment 40-44 102-48 Restatements of information About the Report 286 102-49 Changes in reporting About the Report 285-286
102-50 Reporting period About the Report 285 102-51 Date of most recent report About the Report 285 102-52 Reporting cycle About the Report 285 Contact point for questions 102-53 About the Report 289 regarding the report Claims of reporting in 102-54 accordance with the GRI About the Report 285 Standards 102-55 GRI content index GRI Index 357-367 Reference to the External About the Report; Appendix F - Assurance 289, 339- 102-56 Assurance Report Statements 342
Management Approach
DISCLOSURE PAGE SDG TARGET DESCRIPTION 2020 TEXT LOCATION NUMBER NUMBER LINKAGE Explanation of the material 103-1 See report sections for each material topic - topic and its boundary The management approach 103-2 See report sections for each material topic - and its components Evaluation of the 103-3 See report sections for each material topic - management approach
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Economic
DISCLOSURE PAGE SDG TARGET DESCRIPTION 2020 TEXT LOCATION NUMBER NUMBER LINKAGE #2 Zero Hunger #5 Gender Equality #7 Affordable and Clean Energy Direct economic value 201-1 Sustainable Growth 115-124 #8 Decent Work and generated and distributed Economic Growth #9 Industry, Innovation, and Infrastructure Financial implications and Risk Management, 65-68, 201-2 other risks and opportunities Sustainable Growth, 122-123, #13 Climate Action due to climate change Combating Climate Change, 151-158 Defined benefit plan 201-3 obligations and other Risk Management 67 retirement plans Financial assistance 201-4 Sustainable Growth 89 received from government #1 No Poverty Ratios of standard entry level #5 Gender Equality 202-1 wage by gender compared to Employee Experience 254-257 #8 Decent Work and local minimum wage Economic Growth Proportion of senior #8 Decent Work and 202-2 management hired from the Inclusion & Diversity 267 Economic Growth local community #2 Zero Hunger #7 Affordable and Clean Energy #9 Industry, Infrastructure investments Innovation, and 203-1 Community Engagement 199-212 and services supported Infrastructure #11 Sustainabile Cities and Communities #1 No Poverty #2 Zero Hunger #3 Good Health and Well-Being Significant indirect economic #8 Decent Work and 203-2 Community Engagement 199-212 impacts Economic Growth #10 Reduced Inequalities #17 Partnerships for the Goals #12 Responsible Proportion of spending on 204-1 Supply Chain Sustainability 128 Consumption and local suppliers Production
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DISCLOSURE PAGE SDG TARGET DESCRIPTION 2020 TEXT LOCATION NUMBER NUMBER LINKAGE Operations assessed for #16 Peace, Justice 205-1 Human Rights & Ethics 278 risks related to corruption and Strong Institutions Communication and training #16 Peace, Justice 205-2 about anti-corruption Human Rights & Ethics 274, 278 and Strong Institutions policies and procedures Confirmed incidents of #16 Peace, Justice 205-3 Human Rights & Ethics 278 corruption and actions taken and Strong Institutions Legal actions for anti- competitive behavior, #16 Peace, Justice 206-1 Human Rights & Ethics 278 anti-trust, and monopoly and Strong Institutions practices
Environmental
DISCLOSURE PAGE SDG TARGET DESCRIPTION 2020 TEXT LOCATION NUMBER NUMBER LINKAGE #8 Decent Work and Economic Growth Materials used by weight or 301-1 Product Innovation & Stewardship 108 #12 Responsible volume Consumption and Production #8 Decent Work and Economic Growth Recycled input materials 301-2 Product Innovation & Stewardship 108 #12 Responsible used Consumption and Production #8 Decent Work and Economic Growth Reclaimed products and 301-3 Product Innovation & Stewardship 108-109 #12 Responsible their packaging materials Consumption and Production #7 Affordable and Clean Energy #8 Decent Work and Energy consumption within Energy Efficiency & Sourcing Renewable 142-150, Economic Growth 302-1 the organization Energy, Appendix C - Environmental Data 302-308 #12 Responsible Consumption and Production #13 Climate Action #7 Affordable and Clean Energy #8 Decent Work and Energy consumption outside Economic Growth 302-2 Appendix C - Environmental Data 307 of the organization #12 Responsible Consumption and Production #13 Climate Action
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DISCLOSURE PAGE SDG TARGET DESCRIPTION 2020 TEXT LOCATION NUMBER NUMBER LINKAGE #7 Affordable and Clean Energy #8 Decent Work and Energy Efficiency & Sourcing Renewable Economic Growth 302-3 Energy intensity 149 Energy #12 Responsible Consumption and Production #13 Climate Action #8 Decent Work and Economic Growth Reduction of energy Energy Efficiency & Sourcing Renewable 146, 148- #12 Responsible 302-4 consumption Energy, Energy Projects 149 Consumption and Production #13 Climate Action #7 Affordable and Clean Energy #8 Decent Work and Reductions in energy Economic Growth 302-5 requirements of products Sustainable Growth 122-123 #12 Responsible and services Consumption and Production #13 Climate Action Interactions with water as a Responsible Water Sourcing & #6 Clean Water and 303-1 168-178 shared resource Consumption Sanitation Management of water Responsible Water Sourcing & #6 Clean Water and 303-2 176-177 discharge-related impacts Consumption Sanitation Responsible Water Sourcing & #6 Clean Water and 303-3 Water withdrawal Consumption; Appendix C - Environmental 175-176 Sanitation Data Responsible Water Sourcing & 177 #6 Clean Water and 303-4 Water discharge Consumption; Appendix C - Environmental Sanitation Data Responsible Water Sourcing & 175-176 #6 Clean Water and 303-5 Water consumption Consumption; Appendix C - Environmental Sanitation Data Operational sites owned, leased, managed in, or #14 Life Below Water adjacent to, protected 304-1 Protecting Biodiversity 189-197 #15 Life on Land areas and areas of high biodiversity value outside protected areas #6 Clean Water and Significant impacts of Sanitation 304-2 activities, products, and Protecting Biodiversity 189-197 #14 Life Below Water services on biodiversity #15 Life on Land #6 Clean Water and Habitats protected or Sanitation 304-3 Protecting Biodiversity 189-197 restored #14 Life Below Water #15 Life on Land
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DISCLOSURE PAGE SDG TARGET DESCRIPTION 2020 TEXT LOCATION NUMBER NUMBER LINKAGE IUCN Red List species and national conservation list #14 Life Below Water 304-4 Protecting Biodiversity 189-197 species with habitats in #15 Life on Land areas affected by operations #3 Good Health and Well-Being #12 Responsible Direct (Scope 1) GHG Combating Climate Change, Appendix C - 156-157, Consumption and 305-1 emissions Environmental Data 309-316 Production #13 Climate Action #14 Life Below Water #15 Life on Land #3 Good Health and Well-Being #12 Responsible Energy indirect (Scope 2) Combating Climate Change, Appendix C - 156-157, Consumption and 305-2 GHG emissions Environmental Data 309-316 Production #13 Climate Action #14 Life Below Water #15 Life on Land #3 Good Health and Well-Being #12 Responsible Other indirect (Scope 3) GHG Supply Chain Sustainability, Appendix C - 137-139, Consumption and 305-3 emissions Environmental Data 311 Production #13 Climate Action #14 Life Below Water #15 Life on Land #3 Good Health and Well-Being #12 Responsible Combating Climate Change, Appendix C - 156-157, Consumption and 305-4 GHG emissions intensity Environmental Data 312 Production #13 Climate Action #14 Life Below Water #15 Life on Land #3 Good Health and Well-Being #12 Responsible Consumption and 305-5 Reduction of GHG emissions Combating Climate Change 151-158 Production #13 Climate Action #14 Life Below Water #15 Life on Land #3 Good Health and Well-Being Emissions of ozone- #12 Responsible 305-6 Appendix C - Environmental Data 313 depleting substances (ODS) Consumption and Production #13 Climate Action
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DISCLOSURE PAGE SDG TARGET DESCRIPTION 2020 TEXT LOCATION NUMBER NUMBER LINKAGE #12 Responsible Consumption and Nitrogen oxides (NOx), sulfur Production 305-7 oxides (SOx), and other Air Quality Management 159-167 #13 Climate Action significant air emissions #14 Life Below Water #15 Life on Land #3 Good Health and Well-Being #6 Clean Water and Responsible Water Sourcing & Water discharge by quality 177, 318- Sanitation 306-1 Consumption, Appendix C - Environmental and destination 319 #12 Responsible Data Consumption and Production #14 Life Below Water #3 Good Health and Well-Being #6 Clean Water and Waste by type and disposal Waste Management, Appendix C - 186-187, 306-2 Sanitation method Environmental Data 320-322 #12 Responsible Consumption and Production #3 Good Health and Well-Being #6 Clean Water and Sanitation 306-3 Significant spills Compliance 81 #12 Responsible Consumption and Production #14 Life Below Water #15 Life on Land #3 Good Health and Well-Being Transport of hazardous 306-4 Waste Management 187 #12 Responsible waste Consumption and Production #6 Clean Water and Sanitation Water bodies affected by Responsible Water Sourcing & #12 Responsible 306-5 water discharges and/or 176-177 Consumption Consumption and runoff Production #15 Life on Land Noncompliance with #16 Peace, Justice 307-1 environmental laws and Compliance 76-82 and Strong Institutions regulations New suppliers that 127-128, 308-1 were screened using Supply Chain Sustainability 134 environmental criteria Negative environmental #12 Responsible 308-2 impacts in the supply chain Supply Chain Sustainability 129-133 Consumption and and actions taken Production
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Social
DISCLOSURE PAGE SDG TARGET DESCRIPTION 2020 TEXT LOCATION NUMBER NUMBER LINKAGE #5 Gender Equality New employee hires and 401-1 Appendix B - Workforce Data 293 #8 Decent Work and employee turnover Economic Growth Benefits provided to full- time employees that are not #8 Decent Work and 401-2 Appendix D - General Disclosures 323 provided to temporary or Economic Growth part-time employees #5 Gender Equality 401-3 Parental leave Employee Experience 257 #8 Decent Work and Economic Growth Minimum notice periods #8 Decent Work and 402-1 regarding operational Employee Experience 257 Economic Growth changes #3 Good Health and Occupational health and Well-being 403-1 Living Safely 213-229 safety management system #8 Decent Work and Economic Growth #3 Good Health and Hazard identification, risk Well-being 403-2 assessment, and incident Living Safely 213-225 #8 Decent Work and investigation Economic Growth #3 Good Health and Well-being 403-3 Occupational health services Living Safely 227 #8 Decent Work and Economic Growth Worker participation, #3 Good Health and consultation, and Well-being 403-4* communication on Living Safely 213-225 #8 Decent Work and occupational health and Economic Growth safety #3 Good Health and Description: Worker training Well-being 403-5* on occupational health and Living Safely 213-225 #8 Decent Work and safety Economic Growth #3 Good Health and 227-228, Well-being 403-6* Promotion of worker health Living Safely; Health & Wellness 230-242 #8 Decent Work and Economic Growth Prevention and mitigation of occupational health and 215, 224- #8 Decent Work and 403-7 Living Safely safety impacts directly linked 225, 227 Economic Growth by business relationships Workers covered by an #8 Decent Work and 403-8* occupational health and Living Safely 213-229 Economic Growth safety management system 228, 294- #8 Decent Work and 403-9 Work-related injuries Living Safely; Appendix B - Workforce Data 301 Economic Growth
2020 Owens Corning Sustainability Report | Appendices | 365 GRI INDEX Appendix J
DISCLOSURE PAGE SDG TARGET DESCRIPTION 2020 TEXT LOCATION NUMBER NUMBER LINKAGE 227-228, #3 Good Health and 403-10 Work-related ill health Living Safely; Appendix B - Workforce Data 294 Well-being #4 Quality Education Average hours of training per Employee Experience, Appendix B - #5 Gender Equality 404-1 252, 291 year per employee Workforce Data #8 Decent Work and Economic Growth Programs for upgrading 251-252, #8 Decent Work and 404-2 employee skills and transition Employee Experience 256 Economic Growth assistance programs Percentage of employees #5 Gender Equality receiving regular 404-3 Employee Experience 252 #8 Decent Work and performance and career Economic Growth development reviews 54-55, #5 Gender Equality Diversity of governance Board Leadership, Inclusion & Diversity, 405-1 244, 247, #8 Decent Work and bodies and employees Appendix B - Workforce Data 290-292 Economic Growth #5 Gender Equality Ratio of basic salary and #8 Decent Work and 405-2 remuneration of women to Employee Experience 254 Economic Growth men #10 Reduced Inequalities #5 Gender Equality #8 Decent Work and Economic Growth Incidents of discrimination 406-1 Human Rights & Ethics 275 #10 Reduced and corrective actions taken Inequalities #16 Peace, Justice and Strong Institutions Operations and suppliers in which the right to freedom Employee Experience, Living Safely, 132, 215, #8 Decent Work and 407-1 of association and collective Human Rights & Ethics 256, 273 Economic Growth bargaining may be at risk #8 Decent Work and Operations and suppliers at UN Sustainable Development Goals 68, 127, Economic Growth 408-1 significant risk for incidents Alignment, Risk Management, Supply Chain 132-133, #16 Peace, Justice of child labor Sustainability, Human Rights & Ethics 273, 279 and Strong Institutions Operations and suppliers at 133-134, UN Sustainable Development Goals significant risk for incidents 272-273, #8 Decent Work and 409-1 Alignment, Risk Management, Supply Chain of forced or compulsory 277, 279, Economic Growth Sustainability, Human Rights & Ethics labor 281 Security personnel trained #16 Peace, Justice 410-1 in human rights policies or Human Rights & Ethics 280 and Strong Institutions procedures Incidents of violations 411-1 involving rights of indigenous Human Rights & Ethics 273 #2 Zero Hunger peoples Operations that have been subject to human 412-1 Human Rights & Ethics 279, 283 rights reviews or impact assessments
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DISCLOSURE PAGE SDG TARGET DESCRIPTION 2020 TEXT LOCATION NUMBER NUMBER LINKAGE Employee training on human 412-2 Human Rights & Ethics 274, 280 rights policies or procedures Significant investment agreements and contracts 126-128, Supply Chain Sustainability, Human Rights 412-3 that include human rights 132-134, & Ethics clauses or that underwent 274 human rights screening Operations with local 200-202, community engagement, 413-1 Community Engagement 204-207, impact assessments, and 209-211 development programs Operations with significant actual and potential #1 No Poverty 413-2 Community Engagement 199-212 negative impacts on local #2 Zero Hunger communities #5 Gender Equality #8 Decent Work and New suppliers that were 127-128, 414-1 Supply Chain Sustainability Economic Growth screened using social criteria 134 #16 Peace, Justice and Strong Institutions #5 Gender Equality Negative social impacts in #8 Decent Work and 414-2 the supply chain and actions Supply Chain Sustainability 131-133 Economic Growth taken #16 Peace, Justice and Strong Institutions Human Rights & Ethics, Appendix D - 280-281, #16 Peace, Justice 415-1 Political contributions General Disclosures 324 and Strong Institutions Assessment of the health and safety impacts of 416-1 Product Innovation & Stewardship 109-110 product and service categories Incidents of non-compliance concerning the health and #16 Peace, Justice 416-2 Product Innovation & Stewardship 110 safety impacts of products and Strong Institutions and services Incidents of non-compliance concerning product and #16 Peace, Justice 417-1 Product Innovation & Stewardship 110 service information and and Strong Institutions labeling Incidents of non-compliance 417-3 concerning marketing Product Innovation & Stewardship 110 communications Substantiated complaints concerning breaches of #16 Peace, Justice 418-1 Compliance 80 customer privacy and losses and Strong Institutions of customer data Non-compliance with laws 77-81, #16 Peace, Justice 419-1 and regulations in the social Compliance, Human Rights & Ethics 275-278 and Strong Institutions and economic area
2020 Owens Corning Sustainability Report | Appendices | 367 To create this sustainability report, we rely on the photographic talents of many employees around the world. We’d particularly PHOTOGRAPHER like to thank the employees at nine locations who volunteered to go on assignment. Their photographs of their workplaces and CONTRIBUTIONS teammates help show Owens Corning’s people in action.
Linda Celaya Hanna Thurauf Claudia Cantu Sarah Hill Gastonia - Composites Plant Houston - Roofing and Newark - Insulation Plant Gastonia, Components Plant Newark, Ohio, U.S. North Carolina, U.S. Houston, Texas, U.S.
Merry Qu Rupak Karmakar Vijay Kamble Dong Zijian Sayli - Roofing Plant Sandeep Tika Novia - Roofing Plant Silvassa, India Taloja Plant - Composites Plant Qingdao, Novia, China Taloja, India
John Teng Heather Kessler Jan-Christian Stenroos Felicia Feng Jill Ries Paroc - Insulation Plant Yantai - Insulation Plant Granville - Science & Technology Center Parainen, Finland Yantai, China Granville, Ohio, U.S.
OWENS would also like to thank the individuals who submitted photos as part of our annual photo contest. Their work, which captures the beauty of the natural world and helps bring our report to life, are featured through out the report. CORNING We thank everyone who generously provided photos this year.
2020 Owens Corning Sustainability Report | Appendices | 368 Owens Corning One Owens Corning Parkway Toledo, OH 43659 +1 419 248 8000
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Back cover Photo submitted by: Olivia Kasle | Toledo, Ohio, U.S. New England aster. Cover Photos submitted by: Jill Ries | Granville, Ohio, U.S. Olivia Kasle | Toledo, Ohio, U.S. Julia Faeth performing a creep test (top left). Higgins Lake, Michigan (bottom left). Michele Mazza | Trophy Club, Texas, U.S. Sarah Hill | Newark, Ohio, U.S. Wind farm (top middle). Fiberglass quality check (bottom middle). Dinal Thakkar | Silvassa, India Ann Malak | Toledo, Ohio, USA Owens Corning Interschool Sports Meet Owens Corning employees during a Habitat for 2020, before COVID-19 restrictions (top right). Humanity event (bottom right).