Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Sustainable Development

Environmental Achievements

• Reduced drinking water consumption by 2% (after accounting for Tandus consolidation)
• Reduced energy consumption by close to 6%
• Reduced waste discharged by close to 17%
• Collected 17,400 metric tons of clean and used flooring waste worldwide
• Launched ReUse/ReStart and Floore (for Tandus) recycling programs
• Obtained Cradle to Cradle® certifications for wood, linoleum, and rubber products
• Launched phthalate-free vinyl products in North America (2010), Sweden (2011), and planned for Europe (2014)
• Achieved VOC emissions levels ten to 100 times lower than European standards for vinyl and linoleum products manufactured in Europe

Social Achievements

• Reduced accident rate at production sites from 12.8 to 2.5 per million hours worked (2008-2013)
• Implemented World Class Manufacturing (WCM) program to improve worker safety and customer satisfaction

Governance Achievements

• Implemented antitrust law compliance program (2011)
• Launched specific action plan to fight corruption (2012)

Climate Goals & Targets

Environmental Challenges

• Economic cycles impacting commercial and residential renovation markets
• Fluctuations in raw material (PVC, plasticizers, wood) and energy prices
• International nature of business and economic/political risks in various countries (especially CIS)
• Strong competition in the flooring industry
• Dependence on certain suppliers for essential raw materials
• Risks related to product quality and obtaining certifications
• Foreign exchange risk due to revenue in multiple currencies
• Interest rate risk due to significant floating-rate debt
• Liquidity risk related to debt repayment schedule and covenants
• Legal risks including intellectual property protection and legal proceedings
• Tax risk due to international operations and varying tax laws
• Industrial risks including compliance with environmental and safety regulations, industrial accidents, and exposure to toxic substances
• Asbestos exposure lawsuits in the United States

Mitigation Strategies

• Diversification of markets, products, and customer base
• Development of preferred supplier relationships and flexible production processes
• Price adjustments to reflect raw material cost increases
• Production facilities located close to markets to reduce transportation costs and customs duties
• Short-term hedges for certain currencies
• Testing and approval processes for new products and components
• Specific insurance to cover risks
• Hedging policy to limit interest rate impact
• Available credit lines to cover liquidity needs
• Compliance procedures for antitrust laws and corruption prevention
• Insurance and risk management programs
• World Class Manufacturing (WCM) program to improve productivity and reduce costs
• Turnaround plans for underperforming business segments
• Internal reorganization and cost reduction initiatives

Supply Chain Management

Responsible Procurement

• Long-term relationships with suppliers; centralized purchasing for key raw materials; supplier diversification; collaboration on technical issues and innovations

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: Cradle to Cradle®

Third-party Assurance: KPMG and Praxor Audit

Sustainable Products & Innovation

• iQ Natural homogenous vinyl (75% natural and renewable materials)
• Phthalate-free plasticizers
• Cool Play artificial turf (reduced temperature)

Awards & Recognition

• Green Good Design Award (2009)
• Cradle to Cradle® certifications
• BFM Green Business Award (2011)
• A.T. Kearney’s Best Innovator prize (2013)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• 76% of materials assessed based on Cradle to Cradle® principles.
• Implemented closed water loops at production sites.
• Used sawdust to generate energy at wooden flooring factories.
• Collected 13,500 tonnes of flooring for recycling.

Social Achievements

• 82% employee participation in feedback survey, outperforming industry benchmark.
• Trained over 1,000 managers on team management and feedback.
• Launched Tarkett Inside, a collaborative intranet platform.
• 3,700 people trained through Tarkett Academies (29% increase from 2013).

Governance Achievements

• Continued deployment of worldwide compliance program (ethics, anti-corruption).
• Completed risk-mapping exercise and implemented action plans.
• Regular internal audits performed.

Climate Goals & Targets

Environmental Challenges

• Unpredictable political and economic crisis in Ukraine and Russia.
• Devaluation of the rouble in Q4 2014.
• Ramp-up costs linked to new VCT line in Florence (Alabama).

Mitigation Strategies

• Rapid reaction in terms of cost structure and pricing in Russia.
• Focus on selling prices and production capacity optimization in Russia.
• Cash and cost discipline and restructuring actions throughout the Group.

Supply Chain Management

Responsible Procurement

• Requiring main raw materials suppliers to respect UN Global Compact principles.
• Evaluating major suppliers on CSR criteria (environment and security).
• Partnerships with FSC and PEFC certified wood suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, Cradle to Cradle®

Certifications: ISO 9001, ISO 14001, OHSAS 18001, Cradle to Cradle Certified CM (various levels for different products)

Sustainable Products & Innovation

• Linoleum range (linseed oil, pine resin, cork)
• Ethos® carpet tiles (recycled PVB)
• CoolPlay artificial turf (cork composite)
• Thin Lines carpet (recycled Econyl® fiber)

Awards & Recognition

• BFM Green Business Award (2011)
• Trophy for Strategic Development (2012)
• Sustainable Innovation Award (2013)
• Sustainable Development Woman prize (2014)
• Luxembourg Green Business Award (2014)

Environmental Metrics

ESG Focus Areas

• Circular Economy
• Sustainability
• Indoor Air Quality
• Employee Well-being
• Safety

Environmental Achievements

• Used 55,000 tons of recycled materials in manufacturing (5% of purchase volume), a 47% increase from 2010.
• 57% of manufacturing sites implemented closed-loop water circuits.
• 58% of plants reduced industrial waste going to landfill.
• 67% of materials used did not contribute to resource scarcity.
• 92% of flooring products had low VOC emissions.
• Achieved Cradle to Cradle® Gold level certification for Desso product line and Veneto Essenza linoleum.

Social Achievements

• 58% of employees participated in a training program.
• 97% of customers rated their satisfaction as good, very good, or excellent.
• Launched FloorInMotion Care, a smart flooring service that detects falls.
• More than 200 Tandus Centiva employees participated in Community Service Day.

Governance Achievements

• Followed the Afep/Medef code of governance.
• Implemented a formal compliance program.
• Established Audit and Nominations and Compensation Committees.

Climate Goals & Targets

Environmental Challenges

• Challenging economic environment in Russia and emerging markets.
• Relocating a VCT line in North America caused initial performance issues.
• Public investment slowdown in healthcare and education in Latin America.

Mitigation Strategies

• Actively managed selling prices and costs in the CIS region.
• Improved operational efficiency and profitability after completing the VCT line relocation.
• Focused on new modular vinyl LVT products in Latin America and expanded into residential and commercial markets.

Supply Chain Management

Responsible Procurement

• Partnership with FSC™ and PEFC™ certified wood suppliers
• Promoting the Ten Principles of the UN Global Compact among suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, Cradle to Cradle Certified™

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISO 50001 (in Europe for sites with >250 employees)

Sustainable Products & Innovation

• FloorInMotion
• Desso carpet tiles with EcoBase™ backing
• Veneto Essenza linoleum
• Phthalate-free vinyl flooring

Awards & Recognition

• Company in transition prize at the 2015 Circular Economy Trophy awards
• Awards for FloorInMotion at Batiactu Construction & Innovation Trophy and Healthcare Summit
• IMP3rove Award for Innovation Management

Environmental Metrics

ESG Focus Areas

• Circular Economy
• Climate Change
• Indoor Air Quality
• Community Support
• Responsible Sourcing

Environmental Achievements

• Reduced greenhouse gas emissions by 9% in 2017 versus 2010 (per square meter of manufactured product)
• More than 28% of energy consumed comes from renewable sources
• Seven production sites use 100% renewable electricity
• 96% of raw materials assessed for health and environmental impact (Cradle to Cradle® criteria), aiming for 100% by 2020
• 96% of flooring products have low VOC emissions, aiming for 100% by 2020
• 100% of vinyl production sites in Europe, North America, and China use non-phthalate technology (except recycled content for certain products)

Social Achievements

• 1,400 employees involved in 140 charitable initiatives through the "Tarkett Cares" program
• Partnerships with suppliers for responsible sourcing of wood (FSC® and PEFC™ certified)

Governance Achievements

• Third-party audited CSR report
• Adoption of the 10 principles of the UN Global Compact since 2011
• Member of the Ellen MacArthur Foundation's "Circular Economy 100" initiative
• Member of the Alliance of CEO Climate Leaders since COP 21 in 2015

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Partnerships with suppliers for responsible sourcing of wood (FSC® and PEFC™ certified)
• Use of recycled materials (e.g., discarded fishing nets, medicine blister packaging, post-used mobile cards)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs), Cradle to Cradle®

Certifications: FSC®, PEFC™

Third-party Assurance: Third-party audited

UN Sustainable Development Goals

• Not disclosed

Inspired by the UN Sustainable Development Goals

Sustainable Products & Innovation

• Desso EcoBase® carpet tiles
• Desso carpet tiles made from recycled fishing nets
• Vinyl flooring made from recycled materials
• Tandus ethos® carpet backing made from recycled PVB
• Pentagonals rubber tile
• Tailored Twist Collection modular carpet
• Originale linoleum collection
• iQ One polymer-based flooring

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Circular Economy
• Climate Change
• Safety
• Internal Mobility
• Human Capital

Environmental Achievements

• Reduced Scope 1 & 2 GHG emissions intensity by 15.3% compared to 2010
• Increased share of renewable energy to 28% of total energy use
• Used more than 126,000 tons of recycled materials (12% of raw materials in volume)
• Collected more than 105,000 tons of flooring (post-installation and post-consumer) from 2010 to 2019 through the ReStart® program

Social Achievements

• Launched ‘Embrace sustainability practices in workplace’ program in Tarkett Eastern Europe
• Recycling program at Tarkett North America headquarters
• Trained 8,229 people through Tarkett Academy
• Implemented a new compliance training program focusing on fair competition and anti-corruption

Governance Achievements

• Implemented a new organization for innovation program management
• Developed and rolled-out an Anticorruption Code of Conduct
• Implemented a Compliance Hotline and Ethics Hotline whistleblowing systems

Climate Goals & Targets

Environmental Challenges

• Raw material price volatility
• Circular economy regulatory and market requirements
• Climate change (more stringent GHG regulations, development of renewable energies, carbon pricing)
• Chemical substance acceptance (evolving health and environmental standards)
• Flooring market changes (expectations for greater transparency, new products and services, increased stakeholder involvement)

Mitigation Strategies

• Implementation of closed-loop water systems
• Materials selection as part of New Product Development Process (NPDP)
• Maximize recycled content in products
• Energy efficiency projects
• Increasing the share of recycled raw materials
• Developing post-installation and post-consumer flooring take-back and recycling (ReStart® program)
• Systematic materials assessment based on C2C criteria
• Use of phthalate-free plasticizer technology
• Transparent product information (MHS, EPDs)

Supply Chain Management

Supplier Audits: 176 suppliers assessed in 2019

Responsible Procurement

• Responsible sourcing program
• Supplier Code of Conduct
• UN Global Compact commitment
• FSC® and PEFC certifications for wood suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Site damage and disruption (natural disasters)

Transition Risks

• Climate change (more stringent GHG regulations, development of renewable energies, carbon pricing)

Opportunities

• Transition to a circular economy
• Increased use of recycled materials
• Development of renewable energy sources

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact, Cradle to Cradle® principles, TCFD, CDP

Certifications: ISO 14001, ISO 50001, OHSAS 18001/ISO 45001, SA 8000, FSC®, PEFC

Third-party Assurance: KPMG S.A.

UN Sustainable Development Goals

• SDG 3
• SDG 8
• SDG 11
• SDG 12
• SDG 13
• SDG 15
• SDG 17

Tarkett contributes to several UN SDGs through its 'Doing Good. Together.' approach.

Sustainable Products & Innovation

• iQ Surface vinyl flooring
• AirMaster carpet tiles
• EcoBase carpet backing
• iD Revolution resilient modular tiles
• ethos® Modular with Omnicoat Technology™

Awards & Recognition

• Willmott Dixon’s Mandated supplier award (Tarkett UK)
• Supplier “A” regarding Environment/Sustainability (Tarkett Brazil)
• FX Award for floor coverings (iD Revolution)
• Prize for the Environment (iD Revolution)
• Re|focus Sustainability Innovation Award (ethos® Modular)

Environmental Metrics

ESG Focus Areas

• Circular Economy
• Carbon Footprint Reduction
• Eco-design
• Sustainable Materials

Environmental Achievements

• Reduced greenhouse gas emissions by 27% between 2010 and 2020 (exceeding initial 20% target)
• 13% of raw materials (127,000 tonnes) were recycled in 2020
• Avoided 253,000 tons of CO2e along the value chain through recycled material use
• Eight production sites using 100% renewable electricity

Social Achievements

• Partnered with Gecina and IKEA on carpet and vinyl recycling projects
• Recycled close to 70 tons of cushioned carpet tile from Moscone Convention Center

Governance Achievements

• CSR report fully audited by KPMG

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Cradle to Cradle® principles

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• iQ Natural flooring

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Diversity & Inclusion
• Safety
• Supplier Responsibility
• Community Engagement

Environmental Achievements

• Reduced Scope 1 & 2 GHG emissions by 27% vs 2019
• Increased renewable energy share to 38% of total energy consumption
• Used 147,000 tons of recycled materials (15% of raw materials by volume)
• Collected ~112,000 tons of flooring through ReStart® program since 2010
• Reduced water consumption by 56% vs 2010

Social Achievements

• Launched Tarkett Cares community initiative
• Trained 44,000 professionals/students since 2012
• 63% of open management positions filled internally
• Improved Recordable Lost Time Accident Frequency Rate to 2.56

Governance Achievements

• Established a new CSR committee within the Supervisory Board
• Integrated ESG objectives into executive compensation

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Raw material price volatility
• Limited supplier choice for certain raw materials
• Evolving health and environmental regulations
• Growing stakeholder expectations for transparency and circularity
• Difficulties in collecting and recycling post-use flooring
• Technical challenges in recycling certain materials

Mitigation Strategies

• Improved cost base and pursued initiatives to reduce production costs
• Increased sales prices to offset higher costs
• Developed alternative sourcing strategies
• Implemented eco-design according to Cradle to Cradle® principles
• Increased transparency through Material Health Statements (MHS®) and Environmental Product Declarations (EPDs)
• Developed ReStart® take-back and recycling program
• Collaborated with suppliers and other stakeholders to promote circular economy
• Developed in-house recycling solutions for homogeneous vinyl flooring

Supply Chain Management

Supplier Audits: 273 supplier CSR assessments conducted

Responsible Procurement

• Responsible Sourcing Code of Conduct
• Third-party CSR assessments
• Integration of social and environmental requirements into supplier contracts

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory changes
• Technological challenges
• Market shifts
• Reputational risks

Opportunities

• Reduced operating costs through efficiency improvements
• Increased revenue from low-carbon products
• Secure raw material sourcing

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact, TCFD, CDP

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 9001, Cradle to Cradle Certified, EuCertPlast, ISCC Plus

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 8 (Decent Work and Economic Growth)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 15 (Life on Land)
• SDG 17 (Partnerships for the Goals)

Tarkett's initiatives contribute to these goals through its focus on healthy products, employee well-being, circular economy, climate action, resource conservation, and stakeholder collaboration.

Sustainable Products & Innovation

• iQ Natural homogeneous vinyl flooring
• iD Revolution resilient modular tiles
• AirMaster® carpet tiles
• FieldTurf SURETEC™ program

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Diversity & Inclusion
• Safety
• Human Rights
• Responsible Sourcing

Environmental Achievements

• Reduced Scope 1 & 2 GHG emissions by 41% vs 2019
• Reduced Scope 3 GHG emissions by 13% vs 2019
• Increased recycled materials in production to 17% (+2% vs 2021)
• 43% of total energy consumption from renewable energies
• 69% of plants equipped with closed-loop water systems, resulting in 59% water savings vs 2010
• 13 plants sending no waste to landfill

Social Achievements

• Share of women in management reached 27%, progressing towards 2025 target of 30%
• 54% of open management positions filled by internal candidates
• 45% of employees trained in the last year
• Recordable Lost Time Accident Frequency Rate of 3.36 (aiming for 1.0 by 2025)
• 800 community initiatives supported through Tarkett Cares, with employee volunteering of 3,500 days and over €1.1 million in product donations (2017-2022)

Governance Achievements

• Established a CSR Committee within the Supervisory Board
• Executive compensation linked to ESG objectives (GHG emissions reduction and circular economy)
• Implementation of a robust CSR reporting process audited by a third-party organization
• Adherence to international standards (GRI, TCFD, CDP, UNGC)

Climate Goals & Targets

Environmental Challenges

• Raw material price volatility
• Supplier dependency
• Evolving health and environmental regulations
• Flooring market changes
• Climate change impacts (transition and physical risks)
• Deployment of the transition to a circular economy
• Pandemic risks
• Supply chain disruptions due to the war in Ukraine

Mitigation Strategies

• Materials selection and maximization of recycled content
• Supplier portfolio diversification and use of local suppliers
• Systematic materials assessment based on Cradle to Cradle® criteria
• Transparent product information (MHS, EPDs)
• GHG emission reduction targets (Scope 1, 2, and 3) aligned with the Paris Agreement
• Development of a circular economy approach (design, collection, recycling)
• World Class Manufacturing (WCM) program for safety and environmental management
• Responsible sourcing program with supplier code of conduct and third-party assessments
• Tarkett Cares community initiatives
• Development of alternative sourcing strategies

Supply Chain Management

Supplier Audits: 80% of requested suppliers completed a third-party CSR assessment (in spend)

Responsible Procurement

• Responsible Sourcing Program
• Supplier Code of Conduct
• Third-party CSR assessments
• Integration of social and environmental requirements in supplier contracts

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Regulatory changes
• Market shifts
• Raw material price volatility
• Technology changes
• Reputational risks

Opportunities

• Reduced operating costs through efficiency improvements
• Increased revenue from low-carbon products
• Secure raw material sourcing
• Meeting growing customer demand for responsible products

Reporting Standards

Frameworks Used: GRI Standards, TCFD, CDP, UNGC

Certifications: ISO 14001, ISO 45001, ISO 50001, Cradle to Cradle Certified®, ISCC Plus

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 15
• SDG 16
• SDG 17

Tarkett contributes to these SDGs through its Tarkett Human-Conscious Design® approach, focusing on circular economy, eco-design, responsible production, collaboration, community support, diversity and inclusion, talent development, and transparent business practices.

Sustainable Products & Innovation

• iQ Natural homogeneous vinyl flooring
• Desso AirMaster carpet tiles
• Tarkett Lino collection
• FieldTurf PureField Ultra
• ProMax HydroFlex infill

Awards & Recognition

• CDP Climate Change disclosure score: A-
• EcoVadis Sustainability rating: 74/100 – gold medal
• FRAME Award for Tarkett Lino Originale
• UK’s Sports and Play Construction Association “Product Category” award for FieldTurf SuReTec™

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Safety
• Diversity & Inclusion
• Talent Management

Environmental Achievements

• Reduced Scope 1 & 2 GHG emissions by 47% vs 2019
• Reduced Scope 3 value chain emissions by 14% vs 2019
• Increased share of recycled raw materials to 18% (+1% vs 2022)
• 44% of total energy consumption from renewable energies
• 13 plants send no waste to landfill

Social Achievements

• Launched Green Building Cards in EMEA
• 89% participation in biannual Employee Feedback Survey
• 29% of manager positions held by women (progressing towards 30% target)
• 65% of open management positions filled by internal candidates
• Trained 700 employees on sustainability manifesto

Governance Achievements

• Established CSR & Innovation Committee
• Executive Compensation Linked To ESG: Yes (Specific targets for GHG emissions reduction and circular economy included in LTIP criteria)

Climate Goals & Targets

Environmental Challenges

• Not all customers willing to pay a price premium for lower carbon solutions
• Competition from imported products with higher environmental footprint
• Need for better regulation to encourage material return at end-of-use

Mitigation Strategies

• Pushing for transformation and encouraging partners to do the same
• Developing alternative sourcing strategies
• Advocating for better regulation

Supply Chain Management

Supplier Audits: 90% of requested high-risk suppliers completed third-party CSR assessment

Responsible Procurement

• Responsible sourcing program
• Supplier Code of Conduct
• Third-party CSR assessments
• Integration of social and environmental requirements in supplier contracts

Climate-Related Risks & Opportunities

Transition Risks

• Current and emerging regulation
• Technology
• Market changes
• Reputation

Opportunities

• Reduce indirect operating costs
• Increase revenues from increased demand for low-carbon products
• Limit raw material costs and secure sourcing

Reporting Standards

Frameworks Used: GRI, TCFD, CDP, UNGC

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 9001, Cradle to Cradle Certified, EuCertPlast, ISCC Plus

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 15
• SDG 16
• SDG 17

Tarkett contributes to these SDGs through its Tarkett Human-Conscious Design® approach

Sustainable Products & Innovation

• iD Evolution (non-PVC collection)
• Eco Shell rubber flooring
• PureFill, PureSelect, PureGeo, PureGrain infills
• Safetred Serenity vinyl safety floors
• Elegance and Essence Rigid 55 vinyl collections
• ICONIK vinyl roll collection
• iD Latitude LVT collection
• DESSO Fuse Landscape carpet tile collection
• Inspired Nature carpet collection
• FieldTurf ProMax HydroFlex infill
• Omnisport X3LT flooring

Awards & Recognition

• Europe’s Climate Leaders (Financial Times and Statista)
• CDP Climate Change disclosure score: A-
• EcoVadis Sustainability rating: 77/100 – gold medal
• 2023 Red Dot Award for Product Design (Lino Originale collection)
• Green Good Design® awards (Inspired Nature and LinoFloor xf2 & LinoWall xf2 collections)
• Brazil Compliance Award (First Prize for Excellence in Safety and Health Compliance)