Armstrong World Industries, Inc.
Climate Impact & Sustainability Data (2021, 2022, 2023)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Healthy and Circular Products
- Healthy Planet
- Thriving People and Communities
Environmental Achievements
- Reduced Scope 1 and Scope 2 emissions by 5% from 2019 baseline
- Received validation of 2030 GHG reduction targets as science-based from SBTi
- Diverted 212 million square feet of ceiling tile materials from landfill through Ceilings Recycling Program (as of May 2022)
- Initiated partnership with Irving Consumer Products to divert over 3,500 tons of fiber waste annually from landfill
- 80% of mineral fiber and fiberglass products meet Sustain classification (as of end of 2021)
- 8% of electricity from renewable energy
Social Achievements
- Increased learning and development opportunities
- Introduced a new Wellness Committee
- Enhanced medical coverage by offering TelaDoc
- Initiated a fair wage analysis (to be completed in 2023)
- Increased community investments by 53% from 2020 levels
- Relaunched employee donation matching program
Governance Achievements
- Enhanced management of ESG issues within Armstrong
- Nominating, Governance and Social Responsibility Committee oversees sustainability program
- Expanded compliance council to include all business segments and senior leaders
- Periodic director education programming on climate and sustainability matters
Climate Goals & Targets
- Reduce carbon footprint of products by 50% (2030)
- Reduce water intensity of products by 20% (2030)
- Recycle, reuse, or repurpose 50% of products (2030)
- Reduce absolute waste from operations by 50% (2030)
- Source 100% renewable energy (2030)
- 100% of products free of chemicals of concern (2030)
- 100% of products with verified transparency (2030)
Environmental Challenges
- Supply chain disruptions due to the COVID-19 pandemic and conflict in Ukraine
- Record levels of inflation, volatile energy and input prices
- Shortage of labor in the construction sector
- Material shortages and construction project delays
- Rising costs of doing business
- Accelerated impacts of climate change
- Changing expectations from customers and governments regarding sustainability and transparency
Mitigation Strategies
- Improving data collection and seeking opportunities to enhance efficiencies
- Investing in renewable energy through RECs and investigating PPAs
- Strengthening processes for identifying chemicals of concern in supply chains
- Collaborating with suppliers to remove LBC Red List chemicals
- Formalizing and standardizing on-site supplier audit processes
- Implementing a comprehensive climate change scenario risk analysis within the TCFD framework (starting in 2023)
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct (including environmental compliance, human rights, and labor standards)
- Material transparency requirements in product specification documents
- Collaboration with suppliers to improve documentation and verification processes
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Increased high-heat days
Transition Risks
- Increased costs for energy, raw materials, and transportation
- Added operational complexity
- Market scrutiny of ESG action
Opportunities
- Increased demand for construction materials
- Increased demand for weather-resistant products
- Competitive advantage due to successful management of energy, raw materials, and transportation
- Development of energy-efficient products
Reporting Standards
Frameworks Used: GRI Standards (Core option), SASB (Construction Materials), TCFD, UNGC
Certifications: UL GreenGuard, WELL Health-Safety Rating
UN Sustainable Development Goals
- 3
- 5
- 6
- 7
- 9
- 10
- 11
- 12
- 13
- 15
- 16
- 17
See UN Sustainable Development Goals section of report
Sustainable Products & Innovation
- SUSTAIN® product line
- StrataClean IQ™ air filtration system
- FeltWorks® Blades Ebbs & Flows ceiling products
- Optima® PB standard ceiling panels
- AcoustiBuilt® ceilings
- VidaShield UV24™ air purification systems
Awards & Recognition
- Architects' Newspaper Best of Products Award
- Architectural Products Product Innovation Award
- Manufacturer Visionary Award
- Architectural Record Top Products
- Association of the Wall and Ceiling Industry Excellence in Construction Innovation Award
- Grainger Supplier of the Year Award
- Metropolis Planet Positive Award
- Newsweek One of America’s Most Trusted Companies
- RippleMatch Campus Forward Award
- Spaces4Learning New Product Award
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Healthy and Circular Products
- Healthy Planet
- Thriving People and Communities
Environmental Achievements
- Reduced market-based Scope 1 and 2 GHG emissions by 12% compared with a 2019 baseline.
- Increased use of renewable electricity to 13% of total usage.
- Diverted over 1.2 million tons of virgin raw material from landfills since 1999 through the Ceilings Recycling Program.
- Developed an energy-saving system for data centers delivering energy savings of up to 40 cents per square foot each year.
Social Achievements
- Launched AWI Inspire platform to support inclusive culture and sustainability.
- Increased the number of charities supported by employees through employee choice matching program by more than 100% from 2021 levels.
- Achieved a 9% reduction in OSHA reported accidents compared with a 2019 baseline.
Governance Achievements
- Board undergoes regular training programs on climate change, sustainability and ESG matters.
- Regular review of corporate policies to ensure compliance with current laws.
- All employees receive Code of Business Conduct training.
Climate Goals & Targets
- 100% of our products are free from chemicals of concern by 2030.
- 100% of our products have verified transparency by 2030.
- 50% of our products have a viable path to be recycled, reused or repurposed by 2030.
- Reduce the carbon footprint of our products by 50% compared with a 2019 baseline by 2030.
- Reduce the water intensity of our products by 20% compared with a 2019 baseline by 2030.
- Achieve 100% renewable electricity by 2030.
- Reduce absolute waste from our operations by 50% compared with a 2019 baseline by 2030.
Environmental Challenges
- Reducing the carbon footprint of products.
- Reducing water intensity of products.
- Achieving 100% renewable electricity.
- Managing waste from operations.
- Ensuring diverse and inclusive workforce.
Mitigation Strategies
- Improving operational efficiency and product design.
- Upgrading to more efficient manufacturing equipment.
- Exploring renewable electricity options.
- Enhancing the Ceilings Recycling Program.
- Implementing sustainable practices in the supply chain.
- Investing in employee training and development programs.
- Implementing DEI initiatives.
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct
Climate-Related Risks & Opportunities
Physical Risks
- Heat-related illnesses
- Natural disasters
Opportunities
- Development of energy-efficient products
Reporting Standards
Frameworks Used: GRI Standards, Core option, SASB Construction Materials standards, TCFD, UN Global Compact
Certifications: UL GREENGUARD Certification
Third-party Assurance: Limited external assurance on 2019 and 2022 Scope 1 and 2 GHG emissions
UN Sustainable Development Goals
- 3
- 5
- 6
- 7
- 9
- 10
- 11
- 12
- 13
- 15
- 16
See UN SDG Goal section in report.
Sustainable Products & Innovation
- SUSTAIN® portfolio
- Energy-saving system for data centers
Awards & Recognition
- Named one of America’s Most Responsible Companies by Newsweek magazine.
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Healthy and Circular Products
- Healthy Planet
- Thriving People and Communities
Environmental Achievements
- Decreased market-based Scope 2 GHG emissions by 21% compared with a 2019 baseline.
- Launched Ultima® Templok® ceiling panels, the first product in a portfolio of energy-saving ceiling solutions.
- Increased partnerships to source waste fiber, diverting 4,500 tons of dry fiber from landfills.
- Expanded Johnstown facility with a new wastewater treatment facility that returns clean water to the local community.
Social Achievements
- Strengthened safety culture resulting in significant improvements in key safety metrics (21% reduction YOY in OSHA recordable injuries).
- Launched Building Better Together initiative, engaging over 100 building industry stakeholders.
- Added two new Employee Resource Groups and completed a company-wide employee engagement survey.
- Received recognition as one of America’s Most Responsible Companies by Newsweek for the second consecutive year, and was named one of America’s Best Companies to Work For by U.S. News & World Report as well as one of America’s Best Workplaces for Diversity by Newsweek.
Governance Achievements
- Continued updates through Communication on Progress in 2022 and 2023 (UN Global Compact).
- Validated 30% reduction target in absolute Scope 1 and 2 GHG emissions by the Science Based Targets initiative.
Climate Goals & Targets
- Reduce water intensity of products by 20% by 2030
- Achieve 30% reduction in absolute Scope 1 and 2 GHG emissions by 2030
- Source 100% renewable electricity by 2030
- Reduce absolute waste from operations by 50% by 2030
- Have 50% of products with a viable path to be recycled, reused or repurposed by 2030
Environmental Challenges
- Climate change impacts (droughts, fires, rising sea levels)
- Growing global waste problem
- Complex evolving sustainability goals
- Ergonomic issues in the workplace
Mitigation Strategies
- Developing detailed road maps for sustainability targets
- Upgrading to more efficient manufacturing equipment
- Exploring renewable electricity options
- Strengthening recycling programs
- Collaborating with innovative partners for sustainable supply chains
- Ergonomics Campaign resulting in a 71% drop in ergonomic-related injuries.
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather
- Heat-related illnesses
Opportunities
- Development of energy-efficient products
Reporting Standards
Frameworks Used: GRI Standards, Core option, SASB, Construction Materials standards, TCFD, UN Global Compact
Third-party Assurance: Limited external assurance on 2019, 2022 and 2023 Scope 1 and 2 greenhouse gas (GHG) emissions
UN Sustainable Development Goals
- 3
- 5
- 6
- 7
- 9
- 10
- 11
- 12
- 13
- 15
- 16
- 17
See UN SDG section of report for details.
Sustainable Products & Innovation
- Ultima® Templok® ceiling panels
- SUSTAIN® product line
Awards & Recognition
- America’s Most Responsible Companies by Newsweek
- America’s Best Companies to Work For by U.S. News & World Report
- America’s Best Workplaces for Diversity by Newsweek