Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor Standards
• Environment
• Anti-corruption

Environmental Achievements

• Launched a recycling scheme for used stone wool in Denmark.
• Defined a goal for improving energy efficiency and CO2 at factories: 15% reduction in energy consumption and CO2 emission per tonne of produced ROCKWOOL product in 2015 compared to 2009.
• Announced goals for increased CO2 efficiency (details in Sustainability Report 2012).

Social Achievements

• Introduced a new whistleblower policy.
• Introduced a new framework for working, 'the ROCKWOOL Way'.
• Implemented a new audit procedure for suppliers.
• Continued to improve workplace safety with a goal to reduce accident frequency to a maximum of two accidents per one million working hours by 2017.

Governance Achievements

• New Group HR Senior Vice President joined Group Management, reflecting increased focus on human resources development and value-based management.
• Reviewed and updated the Code of Conduct for Suppliers to include stronger emphasis on human rights and other CSR areas, including stronger control with suppliers’ sub-suppliers (to be implemented in 2013).
• Extended the use of the Code of Conduct for Suppliers to include suppliers under contracts with local ROCKWOOL affiliates (to be implemented in 2013).

Climate Goals & Targets

Environmental Challenges

• Increased number of suppliers and larger expenditure under corporate contracts requiring enhanced oversight.

Mitigation Strategies

• Adjusted standard contract template to cover more CSR-related areas.
• Established formal cooperation between Group Sourcing and Procurement and Group Audit, introducing an auditing program (further implementation in 2013).

Supply Chain Management

Responsible Procurement

• Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Universal Declaration of Human Rights, ICC Business Charter for Sustainable Development

Certifications: ISO 14001 (at several production sites)

Sustainable Products & Innovation

• Insulation materials

Environmental Metrics

ESG Focus Areas

• Environment
• Supply chain management and human rights
• People

Environmental Achievements

• Reduced energy consumption by 6.8% and CO2 emissions by 7.7% in 2013 (2014 figures to be published later)
• Recycled three times more waste materials from other industries than deposited
• Implemented ISO 50001 energy management system in five factories

Social Achievements

• Increased gender diversity in management teams by 1 percentage point
• Reduced frequency of accidents in production staff to 3.5 per million working hours
• Successfully integrated Chicago Metallic, maintaining high employee engagement

Governance Achievements

• Renewed procurement policy to engage with suppliers on social and ethical topics
• Intensified e-learning training on business ethics for all management personnel
• Established a new data recovery center to reduce IT system downtime

Climate Goals & Targets

Environmental Challenges

• Disappointing performance in European markets
• Slower, more costly ramp-up of the new US factory
• Negative currency effects, especially the fall in value of the Russian rouble
• Challenging competitive environment in China
• Economic instability in Russia

Mitigation Strategies

• Investments in re-engineering European production
• Focus on getting the Mississippi factory up to optimal performance
• Revised China strategy to focus on gradual market penetration
• Monitoring political climate in volatile countries
• Developing new highly energy efficient process technologies

Supply Chain Management

Supplier Audits: 75% of key suppliers signed the Code of Conduct (2014)

Responsible Procurement

• Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Circular economy
• Resource efficiency
• Safety, health and wellbeing
• Responsible business
• Climate change
• Energy efficiency
• Water efficiency
• Waste reduction
• Fire safety
• Noise reduction
• Sustainable food production
• Human rights
• Supply chain management
• Governance

Environmental Achievements

• Reduced production waste sent to landfill by 3%
• Reduced water consumption within factories by 1.7%
• Reduced CO2 emissions from factories (no specific quantification provided)

Social Achievements

• Zero fatalities in 2016
• Increased number of countries with product waste reclaiming services by 3%
• 94% of suppliers with annual spend over EUR 100,000 signed the Code of Conduct (up from 76% in 2015)

Governance Achievements

• Established a Group sustainability function and steering committee
• Updated investment processes to align with sustainability goals
• Board of Directors increased focus on sustainability, with the Audit Committee now monitoring sustainability performance

Climate Goals & Targets

Environmental Challenges

• Negative trend in water efficiency
• Challenges in achieving significant step-change improvements in energy efficiency
• Transportation distances making waste take-back economically unsustainable in some markets
• Lack of waste separation methods at demolition and construction sites
• Weight-based recycling targets in the EU not prioritizing lightweight waste like stone wool

Mitigation Strategies

• Initiated a global water mapping of factories and a water scarcity assessment
• Implementing water efficiency improvements at several factories
• Group-wide energy efficiency workshop to share best practices
• Developing and implementing energy efficiency improvements at several factories
• Preparing action plans to install recycling equipment at several factories
• Developing existing reclaimed waste scheme in France
• Establishing internal closed-loop stone wool recycling systems in Malaysia, Thailand, and Czech Republic

Supply Chain Management

Supplier Audits: 121 supplier evaluations in 2016

Responsible Procurement

• Group Procurement Policy requiring suppliers with annual spend over EUR 100,000 to sign the Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001 and/or OHSAS 18001 (in 17 of 28 factories)

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 8: Decent Work and Economic Growth
• Goal 17: Partnerships for the Goals

ROCKWOOL contributes to these SDGs through its products and operations, aiming for a net positive impact on society and the environment.

Sustainable Products & Innovation

• BiosPHera prototype house
• GroSens Multisensor ® and e-GroTM for Precision Growing
• Rockpanel® Woods
• Lapinus products for water management
• BIOROCK off-grid sanitation system
• Acoustic ULTRATHIN

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Circular Economy
• Fire Resilience
• Safety, Health and Wellbeing
• Water Efficiency and Management
• Public and Private Sector Collaboration

Environmental Achievements

• Reduced CO2 emission intensity within factories by 3.8% compared to 2015 baseline.
• Reduced waste to landfill by 4.1% compared to 2015 baseline.
• Reclaimed 120,000 tonnes of stone wool waste.

Social Achievements

• Increased gender diversity in management teams to 18% (from 15% in 2016).
• Launched a new Code of Conduct.
• High employee engagement with 87% of white-collar and 77% of blue-collar employees completing the survey.

Governance Achievements

• Implemented a new Code of Conduct.
• Investigated 12 integrity cases, with 8 leading to corrective action.
• Updated Compensation & Benefits and Recruitment policies.

Climate Goals & Targets

Environmental Challenges

• Water consumption intensity remained above the 2015 baseline.
• Slight increase in Lost Time Injury (LTI) frequency rate.

Mitigation Strategies

• Intensifying efforts to improve water efficiency.
• Continuing to strive for improved safety in all aspects of work.

Supply Chain Management

Supplier Audits: 6 suppliers selected for external sustainability audits in 2017.

Responsible Procurement

• Supplier Code of Conduct
• New supplier due diligence process

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, OHSAS 18001, ISO 50001

UN Sustainable Development Goals

• SDG 3
• SDG 6
• SDG 7
• SDG 11
• SDG 13

ROCKWOOL’s approach to sustainability is closely aligned with the SDGs. The report highlights contributions to several goals through product impacts and operational improvements.

Sustainable Products & Innovation

• Rockzero wall system
• Rockflow water management system

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Fire Safety
• Safety, Health and Wellbeing
• Water Efficiency
• Job Creation
• Anti-corruption
• Environmental Management
• Human Rights
• Supply Chain Management
• Responsible Tax

Environmental Achievements

• Reduced production waste going to landfill by 17 percent since 2015.
• Reduced carbon intensity by four percent since 2015.
• Improved water efficiency by five percent in 2019, leading to a seven percent accumulated saving compared with the 2015 baseline.
• Increased stone wool collected and recycled through ROCKWOOL recycling service to 159,000 tons in 2019.

Social Achievements

• Reduced Lost Time Incident (LTI) rate by 17 percent in 2019.
• Improved learning conditions for 445,000 students globally through acoustic solutions.
• Developed a new SDG impact metric to measure ROCKWOOL Group’s global and local impact on SDG 8: Decent work and economic growth.

Governance Achievements

• Became the first company in Denmark to host quarterly calls with investment analysts focused solely on ESG management and performance.
• Implemented a new policy on the use of agents focusing on compliance with the U.S. Foreign Corrupt Practices Act and the UK Bribery Act.
• Increased to 65 percent of contracted suppliers having been assessed for acceptance of the ROCKWOOL Supplier Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• A fatal accident during construction of a new factory in Romania.
• Maintaining production in Denmark while meeting ambitious CO2 reduction targets.

Mitigation Strategies

• Increased supervision of subcontractors by direct personnel from ROCKWOOL.
• Investing in deep decarbonisation and local jobs, including innovative fuel-flexible melting technologies and biogas conversion.

Supply Chain Management

Supplier Audits: 65% of contracted suppliers assessed for acceptance of the ROCKWOOL Supplier Code of Conduct.

Responsible Procurement

• ROCKWOOL Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Biogas conversion

Reporting Standards

Frameworks Used: GRI, UN SDGs, TCFD

Certifications: ISO 14001, ISO 45001, ISO 50001

UN Sustainable Development Goals

• 2
• 3
• 6
• 7
• 8
• 9
• 12
• 13

Products and processes contribute to these goals through energy savings, water efficiency, job creation, circularity, and reduced emissions.

Sustainable Products & Innovation

• Rockflow product line for urban storm water management
• Lighter cavity wall insulation slab with same thermal efficiency

Awards & Recognition

• Business Climate Prize (ZERO Conference, Norway)
• GreenTech Innovation Concept Award (Netherlands)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Sustainability
• Governance

Environmental Achievements

• Numerous case studies showcasing developments exceeding Code for Sustainable Homes Level 4 standards and aiming for AECB Silver Standard (70% CO2 reduction compared to UK average), including significant carbon reductions through on-site and off-site renewable energy sources.
• One Brighton development achieving 1/3 the average UK home carbon emissions from heating, hot water, and electricity.

Social Achievements

• Extensive community consultation in The Meadows development, resulting in a successful regeneration project.
• One Brighton incorporating social rent and shared home ownership units, along with Eco-studio apartments for the intermediate market.
• Graylingwell Park incorporating extensive community facilities and placemaking elements promoting healthy living.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• National policy inconsistencies and uncertainty regarding local authority powers to raise sustainability standards for new homes.
• Economic viability concerns regarding higher sustainability standards.
• Performance gap between design predictions and actual in-use performance of buildings.

Mitigation Strategies

• Recommendations for baseline sustainability requirements for all new homes, providing consistency and a clear trajectory for future improvements.
• Emphasis on cost-effective energy efficiency measures to achieve carbon reductions.
• Proposal for in-use testing and reporting to address the performance gap and encourage transparency.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Overheating

Transition Risks

• Not disclosed

Opportunities

• Cost savings from energy efficiency measures
• Increased market demand for sustainable homes

Reporting Standards

Frameworks Used: AECB Silver Standard, Code for Sustainable Homes, BREEAM, One Planet Living, Ecohomes

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Super-high levels of insulation
• Whole-house heat recovery
• Low carbon concrete
• Clay blocks fired at low temperatures
• Modular construction (ilke Homes)

Awards & Recognition

• Sustainable Development of the Year (The Meadows)
• Residential Development of the Year (The Meadows)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Water Management
• Biodiversity
• Human Rights
• Safety
• Diversity & Inclusion
• Responsible Sourcing
• Business Ethics
• Community Engagement

Environmental Achievements

• Met intermediate 2022 sustainability goal - energy efficiency in owned offices (39% improvement)
• Reduced water intensity in production by 14% compared to 2015 baseline
• Reduced landfill waste by 51% compared to 2015 baseline
• Expanded Rockcycle recycling services to 19 countries
• Reduced average global carbon intensity of manufacturing by 17% compared to 2015 baseline
• Reduced absolute Scope 1 and 2 GHG emissions by 4% compared to 2019 baseline
• 100% of ROCKWOOL’s products classified as SDG positive by Trucost

Social Achievements

• Reduced Lost Time Incident (LTI) rate by 24%
• Achieved Board gender diversity goal
• Scored 89 out of 100 points on the Gender Equality Index in France
• Improved employee satisfaction and motivation scores in annual engagement survey
• Provided emergency shelter and support to those affected by the war in Ukraine

Governance Achievements

• Strengthened Code of Conduct
• Revised Group policy on the use of donations and non-commercial sponsorships
• Strengthened human rights commitments
• Revised Supplier Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Workplace fatality at Polish factory
• Need to further reduce Scope 3 emissions
• Need to increase the number of countries with Rockcycle services
• Need to further improve water efficiency
• Need to further reduce landfill waste

Mitigation Strategies

• Detailed investigation and implementation of accident prevention measures
• Transitioning from coal and coke to less carbon-intensive fuels
• Exploring green hydrogen as a fuel source
• Continuous process optimization and technological innovation
• Strengthening collaboration with waste logistics partners
• Implementing a new safety strategy

Supply Chain Management

Supplier Audits: Approximately 74% of on-boarded suppliers have signed the Supplier Code of Conduct.

Responsible Procurement

• Supplier Code of Conduct
• Sustainable sourcing practices
• Pilot of supplier ESG monitoring software

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, UN Global Compact, TCFD, EU Taxonomy

Certifications: ISO 14001, ISO 45001, ISO 50001, EUCEB, Cradle to Cradle Certified

Third-party Assurance: PricewaterhouseCoopers

UN Sustainable Development Goals

• SDG 2
• SDG 3
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 14
• SDG 17

The report details how ROCKWOOL's products and operations contribute to these goals.

Sustainable Products & Innovation

• Stone wool insulation
• Grodan growing media
• Rockfon acoustic solutions
• Rockpanel cladding

Awards & Recognition

• Corporate Knights Global 100 Index (16th overall, 1st in Building Products)
• CDP Leadership level rating
• MSCI AA rating
• ISS ESG Prime rating

Environmental Metrics

ESG Focus Areas

• Climate change mitigation and adaptation
• Circular economy
• Health and safety
• Diversity, Equity and Inclusion
• Responsible business practices
• Water stewardship
• Biodiversity

Environmental Achievements

• Reduced water use intensity by 16% compared to 2015 baseline.
• Reduced LTI rate by 14%.
• Expanded Rockcycle® recycling service to 21 countries.
• Completed conversion from coal to natural gas at a German production line.
• Received Board approval for the electrification of four production lines.
• Reduced landfill waste by 53% compared to 2015 baseline.

Social Achievements

• Achieved 27% female representation in middle and executive management.
• Achieved 33% female representation on the Board of Directors.
• Rolled out an internal sustainability campaign engaging employees in 25 countries.
• ROCKWOOL India received the Great Place to Work award for two consecutive years.
• Zero fatalities and two serious accidents in 2023.

Governance Achievements

• Updated Supplier Code of Conduct to address material sustainability topics.
• Piloted a cloud-based sustainability risk management tool for supplier monitoring.
• Conducted a comprehensive double materiality assessment.
• Introduced a formal DEI policy.
• Conducted ROCKWOOL Code of Conduct trainings for approx. 150 managers in Asia.

Climate Goals & Targets

Environmental Challenges

• Long waiting times to connect to the power grid for electrification projects.
• Lower market activity impacting the amount of stone wool recycled.

Mitigation Strategies

• Advocating for streamlined permitting processes for green infrastructure.
• Expanding Rockcycle® to additional countries to increase recycling volume in coming years.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Sustainability risk management tool

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs), EU Non-Financial Reporting Directive, EU Taxonomy

Certifications: ISO 14001, ISO 45001, ISO 50001, EUCEB

Third-party Assurance: PricewaterhouseCoopers

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 9 (Industry, innovation and infrastructure)
• SDG 11 (Sustainable cities and communities)
• SDG 12 (Responsible consumption and production)
• SDG 13 (Climate action)
• SDG 6 (Clean water and sanitation)
• SDG 2 (Zero hunger)
• SDG 3 (Good health and well-being)
• SDG 8 (Decent work and economic growth)

The report details how ROCKWOOL's products and initiatives contribute to these goals.

Sustainable Products & Innovation

• Rockflow underground rainwater management system
• Compostable foil for Grodan products

Awards & Recognition

• ROCKWOOL Denmark SailGP Team won the Impact League trophy.
• ROCKWOOL Canada factory won ‘Large Business of the Year’ award.