Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Waste Reduction
• Product Circularity
• Responsible Sourcing
• Workforce Diversity & Inclusion
• Employee Well-being
• Community Engagement
• Ethics & Integrity
• Data Security and Privacy

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 25 percent by 2025 (achieved)
• Reduced water intensity by 30 percent by 2025 (achieved)
• Reduced energy consumption by 11 percent at Dal-Tile North America's Sales Service Centers and distribution facilities
• Reduced carbon emissions of U.S. fleet by 2 percent between 2020 and 2021
• 41 Mohawk facilities achieved Zero Waste to Landfill (ZLF) certification
• Global Ceramic segment saved 23,698 tons of raw material (2.6% of total consumption) through advanced technologies

Social Achievements

• Launched enterprise-wide Human Rights Policy
• Conducted a global employee engagement survey with 76% participation rate
• Implemented 108 localized action plans to improve employee engagement based on survey results
• Launched LeadHer initiative to mentor and develop women leaders at Dal-Tile
• Increased internship program participation and full-time employment of graduates
• Expanded partnerships with local communities and non-profit organizations

Governance Achievements

• Maintained clear, accessible, and consistent ethics, compliance, and ESG-related policies
• Facilitated anti-corruption training in 10 languages with high completion rates
• Maintained 24-hour anonymous third-party hotlines for reporting concerns
• Delivered anti-harassment training
• No material data breaches for three consecutive years

Climate Goals & Targets

Environmental Challenges

• Balancing the sustainability needs of diverse customers with varying priorities
• Managing the complexity of the global supply chain and ensuring responsible sourcing
• Addressing economic uncertainty impacting housing markets and consumer spending
• Meeting the aggressive timeline for net-zero carbon emissions by 2040 (Mohawk Group)

Mitigation Strategies

• Developing a holistic sustainability strategy with consistent goals across business units
• Implementing a Supplier Code of Conduct and conducting supplier assessments
• Focusing on innovation and adapting to evolving conditions
• Investing in energy efficiency and renewable energy sources
• Expanding data reporting and governance processes to focus more resources on environmental and social initiatives

Supply Chain Management

Supplier Audits: 100% of new suppliers screened using environmental and social criteria

Responsible Procurement

• Supplier Code of Conduct
• Modern Slavery Policy (Godfrey Hirst)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts, soaring natural gas prices

Opportunities

• Development of energy-efficient products, renewable energy investments

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB, TCFD, EU Taxonomy framework

Certifications: Climate Active (Godfrey Hirst), GREENGUARD, GREENGUARD Gold, FSC, PEFC, Declare, Red List-free

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

ESG strategy aligned with these goals through various initiatives

Sustainable Products & Innovation

• EverStrand and EnviroStrand carpet fibers; ReCover backing technology; Color Pulse fibers; SmartStrand carpet; Red List-free products

Awards & Recognition

• Numerous awards listed on page 12 of the report

Environmental Metrics

ESG Focus Areas

• Climate change
• Water stewardship
• Waste reduction
• Circular economy
• Product circularity
• Diversity and Inclusion
• Employee well-being
• Occupational safety
• Supply chain ethics
• Responsible sourcing
• Corporate governance

Environmental Achievements

• Reduced carbon footprint by 17% from 2018 to 2022.
• Recovered and reused 84% of all process wastewater in US and Mexico-based facilities.
• Prevented over 125 million gallons of wastewater from entering local municipal water treatment facilities.
• Over 99% of tile collections contain recycled or reclaimed materials.
• Reduced total energy consumption by 11% at all sales service centers and distribution facilities since 2018.
• Nine manufacturing facilities achieved Mohawk’s Internal Zero Landfill Certification.

Social Achievements

• Launched presidential "IGNITE Awards" to recognize employee excellence.
• Launched Dal-Tile LeadHer program for women's leadership development.
• All Dal-Tile, LLC North American plants became Declare certified.
• Reduced recordable incident rate by 20% below baseline.
• 45% of U.S. workforce is comprised of Black, Indigenous and other People of Color.
• 25% of leadership positions are held by women.

Governance Achievements

• Increased diversity on the Board of Directors.
• Implemented a formal Board of Directors Selection Policy.
• Strengthened privacy policy and cybersecurity defenses.

Climate Goals & Targets

Environmental Challenges

• Data gathering challenges for Scope 3 GHG emissions due to decentralized structure, global reach, and diverse product offerings.
• Differing customer expectations, government regulations, and culturally based environmental priorities across regions.
• Constrained labor markets and attracting/retaining talent.
• Balancing global and local needs in ESG initiatives.
• Managing modern slavery risks, particularly in the Australian flooring business.
• Ensuring ethical sourcing of PVC for LVT products.

Mitigation Strategies

• Established People and Planet Councils to share best practices and further ESG objectives.
• Engaged a third-party expert to collect Scope 3 emissions data.
• Developed tailored strategies and initiatives aligned with local contexts.
• Implemented robust reporting systems and controls for ESG.
• Strengthened Supplier Code of Conduct to include alignment with Mohawk’s Environmental Policy.
• Conducting detailed supply chain mapping and audits for high-risk PVC and LVT suppliers.
• Implementing ethical sourcing training programs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Alignment with Mohawk’s Environmental Policy
• Assessments to verify adherence to Code of Conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather patterns impacting supply chains and facilities

Transition Risks

• Changes in regulation, market shifts

Opportunities

• Development of energy-efficient products
• Investment in renewable energy production

Reporting Standards

Frameworks Used: GRI Universal Standards, SASB, TCFD

Certifications: ISO 50001, ISO 45001, Declare, Climate Active (Godfrey Hirst Australia and New Zealand), GREENGUARD, GREENGUARD Gold, NSF/ANSI 51, PEFC, FSC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 6: Clean Water and Sanitation
• Goal 13: Climate Action

The company's ESG strategy aligns with these goals through initiatives related to workforce development, sustainable product design, water conservation, and emissions reduction.

Sustainable Products & Innovation

• EverStrand and EnviroStrand carpet fiber
• UltraWood flooring
• SmartStrand carpet fiber
• ReCover backing
• PureTech flooring
• EcoFlex ONE carpet tile
• Continuum process

Awards & Recognition

• Training Apex Award (16 consecutive years)
• Artribune Best Company Award 2022
• Top Employer certifications
• Cradle to Cradle Material Health Certificate
• Floor Covering Weekly GreenStep Awards
• Green Good Design Award
• Green Builder Media awards
• Chattanooga Times Free-Press award
• United Way award
• Latin American Association award
• Georgia Association of Manufacturers award
• Best of NeoCon Awards
• Forbes’ Best Large Employers
• Forbes’ Best Employers for Veterans
• Susan G. Komen Promise Award
• eTextile Communications' award
• USA Today America’s Climate Leaders

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Water Stewardship
• Biodiversity
• Workforce Diversity & Inclusion
• Workplace Safety
• Community Investment
• Supply Chain Ethics
• Governance

Environmental Achievements

• Reduced embodied carbon footprint of EcoFlex™ ONE backing system by 22.7%
• Reduced Scope 1, 2, and biogenic emissions by 36% over 2010 baseline
• Reduced total water withdrawal intensity by 42% over 2010 baseline
• Reduced waste-to-landfill intensity by 58% over 2010 baseline
• 99%+ of wood purchased for products was FSC/PEFC certified
• Recovered 44.9 million pounds of end-of-life products

Social Achievements

• Donated $1 million to Susan G. Komen for breast cancer research
• Partnership with ArtLifting provides platform for artists facing challenges
• Celebrated Earth Day with engaging activities across facilities
• 22% of U.S. spend was with diverse suppliers

Governance Achievements

• Completed a Double Materiality Assessment
• Implemented an enterprise-wide ESG Data Platform
• Conducted a climate risk assessment
• Maintained strong governance practices and oversight through ESG Executive Council

Climate Goals & Targets

Environmental Challenges

• Evolving ESG regulations (e.g., SEC, EU CSRD)
• Complexity of global operations and supply chain
• Climate-related risks (e.g., energy cost and availability)
• Air pollution beyond GHG emissions

Mitigation Strategies

• Preparation for new regulations
• ESG Executive Council for improved communication and decision-making
• Natural gas price management strategies
• Renewable energy investments and energy efficiency improvements
• Planned reporting on air pollution IROs in 2026

Supply Chain Management

Supplier Audits: Ongoing assessments, stakeholder consultations, and data-driven analysis

Responsible Procurement

• Supplier Code of Conduct
• Environmental Policy
• Human Rights Policy
• Conflict Minerals Policy
• Uyghur Forced Labor Protection Act compliance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding

Transition Risks

• Regulatory changes
• Market shifts
• Increased cost and lack of availability of energy

Opportunities

• Waste and product circularity
• Renewable energy investments

Reporting Standards

Frameworks Used: GRI, CDP, SASB, TCFD

Certifications: ISO 14001, ISO 45001, Climate Active (Godfrey Hirst Australia & New Zealand), Living Product Challenge (EcoFlex™)

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• EcoFlex™ carpet tiles
• PureTech™ PVC-free resilient flooring
• PETPremier™ carpet
• SmartStrand® carpet
• RevWood® laminate flooring
• ColorPulse™ yarn technology

Awards & Recognition

• USA Today America’s Climate Leaders
• Training Magazine Apex Award
• Newsweek America’s Greatest Workplaces for Diversity
• Newsweek America’s Greatest Workplaces for Women
• City of Hope Spirit of Life Award
• GreenStep Award
• Campus Forward Award
• College and Career Academy Business Partner of the Year
• Best of Surfaces Product Award
• Best of Surfaces Style and Design Award
• Interior Design Best of Year
• Best of NeoCon Gold
• IIDA/HD Expo Product Design Awards
• Floor Covering Weekly Pinnacle Sustainability Award
• Susan G Komen Promise Award
• Metropolis Planet Positive Award
• Interior Design of Canada Innovation Award
• Floor Covering Weekly Promotion Sustainability Honoree
• NYCxDesign Award
• Better Futures Award
• Best New Product